2023 Q1 Form 10-K Financial Statement

#000143774923004648 Filed on February 27, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2022 Q4 2022
Revenue $53.03M $61.58M $222.8M
YoY Change 1.51% 13.19% 5.32%
Cost Of Revenue $43.79M $55.36M $189.2M
YoY Change 1.32% 19.53% 8.82%
Gross Profit $9.244M $6.225M $33.63M
YoY Change 2.43% -23.1% -10.84%
Gross Profit Margin 17.43% 10.11% 15.09%
Selling, General & Admin $14.88M $15.37M $56.38M
YoY Change 7.96% 23.02% 5.86%
% of Gross Profit 160.92% 246.83% 167.67%
Research & Development $8.536M $9.224M $36.24M
YoY Change -10.01% -0.07% -12.07%
% of Gross Profit 92.34% 148.18% 107.78%
Depreciation & Amortization $5.200M $5.504M $22.60M
YoY Change -13.33% -10.98% -8.87%
% of Gross Profit 56.25% 88.42% 67.21%
Operating Expenses $23.41M $24.59M $92.63M
YoY Change 0.63% 13.21% -1.96%
Operating Profit -$14.17M -$18.36M -$59.00M
YoY Change -0.51% 34.78% 3.93%
Interest Expense $2.137M -$1.852M $6.319M
YoY Change 52.53% 53.82% 12.44%
% of Operating Profit
Other Income/Expense, Net -$2.125M -$34.00K -$7.398M
YoY Change 16.57% -111.76% -383.88%
Pretax Income -$16.29M -$20.25M -$66.40M
YoY Change 1.43% 39.29% 22.59%
Income Tax $0.00 $1.000K $1.000K
% Of Pretax Income
Net Earnings -$16.29M -$20.25M -$66.40M
YoY Change 1.43% 39.28% 22.59%
Net Earnings / Revenue -30.72% -32.88% -29.8%
Basic Earnings Per Share -$0.56 -$2.38
Diluted Earnings Per Share -$0.56 -$0.71 -$2.38
COMMON SHARES
Basic Shares Outstanding 28.97M 28.52M 27.85M
Diluted Shares Outstanding 28.87M 27.85M

Balance Sheet

Concept 2023 Q1 2022 Q4 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $16.10M $35.59M $35.59M
YoY Change -49.65% 2.69% 2.69%
Cash & Equivalents $16.10M $24.69M $35.59M
Short-Term Investments
Other Short-Term Assets $17.36M $6.384M $6.384M
YoY Change 25.46% -40.97% -40.97%
Inventory $70.19M $79.68M $79.68M
Prepaid Expenses
Receivables $56.80M $61.18M $61.18M
Other Receivables $1.079M $339.0K $339.0K
Total Short-Term Assets $161.5M $183.2M $183.2M
YoY Change -16.41% -5.62% -5.62%
LONG-TERM ASSETS
Property, Plant & Equipment $207.2M $210.2M $215.8M
YoY Change -12.5% -13.52% -13.75%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $519.0K $386.0K $386.0K
YoY Change 21.26% -25.48% -93.94%
Total Long-Term Assets $222.0M $225.1M $225.1M
YoY Change -12.42% -13.55% -13.55%
TOTAL ASSETS
Total Short-Term Assets $161.5M $183.2M $183.2M
Total Long-Term Assets $222.0M $225.1M $225.1M
Total Assets $383.6M $408.3M $408.3M
YoY Change -14.15% -10.17% -10.17%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $38.42M $47.85M $47.85M
YoY Change -4.06% 39.08% 39.08%
Accrued Expenses $13.51M $17.22M $18.26M
YoY Change 2.02% 10.49% 10.99%
Deferred Revenue $200.0K $3.216M
YoY Change -52.72% 1549.23%
Short-Term Debt $19.20M $12.34M $12.34M
YoY Change 92.83% 50.49% 50.49%
Long-Term Debt Due $50.92M $57.07M $57.14M
YoY Change -2.51% 14.86% 14.95%
Total Short-Term Liabilities $205.6M $138.6M $138.6M
YoY Change 76.44% 27.19% 27.19%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $79.51M
YoY Change -100.0% -100.0% -5.06%
Other Long-Term Liabilities $5.307M $5.505M $5.505M
YoY Change -20.78% -23.42% -23.42%
Total Long-Term Liabilities $0.00 $0.00 $85.01M
YoY Change -100.0% -100.0% -6.51%
TOTAL LIABILITIES
Total Short-Term Liabilities $205.6M $138.6M $138.6M
Total Long-Term Liabilities $0.00 $0.00 $85.01M
Total Liabilities $210.9M $223.6M $223.6M
YoY Change 1.8% 11.86% 11.86%
SHAREHOLDERS EQUITY
Retained Earnings -$225.4M -$209.1M
YoY Change 41.98% 46.54%
Common Stock $29.00K $29.00K
YoY Change 7.41% 7.41%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $172.6M $184.7M $184.7M
YoY Change
Total Liabilities & Shareholders Equity $383.6M $408.3M $408.3M
YoY Change -14.15% -10.17% -10.17%

Cashflow Statement

Concept 2023 Q1 2022 Q4 2022
OPERATING ACTIVITIES
Net Income -$16.29M -$20.25M -$66.40M
YoY Change 1.43% 39.28% 22.59%
Depreciation, Depletion And Amortization $5.200M $5.504M $22.60M
YoY Change -13.33% -10.98% -8.87%
Cash From Operating Activities -$9.390M -$3.483M -$14.02M
YoY Change 160.62% 1234.48% 20.42%
INVESTING ACTIVITIES
Capital Expenditures $575.0K $868.0K $3.210M
YoY Change -43.74% -133.92% -59.78%
Acquisitions
YoY Change
Other Investing Activities -$95.00K $244.0K -$126.0K
YoY Change -211.76% -412.82% -94.02%
Cash From Investing Activities -$783.0K -$624.0K -$3.834M
YoY Change -25.5% -76.34% -63.64%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $1.238M
YoY Change -91.96%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities $1.088M 5.166M $10.75M
YoY Change -70.88% -205.71% -23.67%
NET CHANGE
Cash From Operating Activities -$9.390M -3.483M -$14.02M
Cash From Investing Activities -$783.0K -624.0K -$3.834M
Cash From Financing Activities $1.088M 5.166M $10.75M
Net Change In Cash -$8.639M 1.059M -$5.550M
YoY Change 740.37% -113.6% -38.18%
FREE CASH FLOW
Cash From Operating Activities -$9.390M -$3.483M -$14.02M
Capital Expenditures $575.0K $868.0K $3.210M
Free Cash Flow -$9.965M -$4.351M -$17.23M
YoY Change 115.46% -289.34% -12.19%

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13139 Jess Pirtle Blvd.
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Sugar Land
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77478
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Common Stock, Par value $0.001
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GRANT THORNTON LLP
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<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; text-indent: 0px;"><tbody><tr style="vertical-align: top;"><td style="width: 36pt;"> <p style="margin: 0pt; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: justify;"><span style="background-color:#ffffff;"><em style="font: inherit;">2.</em></span></p> </td><td> <p style="margin: 0pt; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: justify;"><i><span style="background-color:#ffffff;">Use of Estimates</span></i></p> </td></tr> </tbody></table> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;"><span style="background-color:#ffffff;">  </span></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-indent: 36pt;"><span style="background-color:#ffffff;">The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates in the consolidated financial statements and accompanying notes. Significant estimates and assumptions that impact these financial statements relate to, among other things, allowance for doubtful accounts, inventory reserve, product warranty costs, share-based compensation expense, estimated useful lives of property and equipment, and taxes.</span></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;"><span style="background-color:#ffffff;">  </span></p>
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CY2022 us-gaap Concentration Risk Credit Risk
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<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; text-indent: 0px;"><tbody><tr style="vertical-align: top;"><td style="width: 36pt;"> <p style="margin: 0pt; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: justify;"><span style="background-color:#ffffff;"><em style="font: inherit;">8.</em></span></p> </td><td> <p style="margin: 0pt; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; text-align: justify;"><i><span style="background-color:#ffffff;">Concentration of Credit Risk and Significant Customers</span></i></p> </td></tr> </tbody></table> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: justify;"><span style="background-color:#ffffff;">  </span></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-indent: 36pt;"><span style="background-color:#ffffff;">Financial instruments which potentially subject the Company to concentrations of credit risk include cash, cash equivalents and accounts receivable. The Company places all cash and cash equivalents with high-credit quality financial institutions.</span></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-indent: 36pt; text-align: justify;"><span style="background-color:#ffffff;">  </span></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-indent: 36pt;"><span style="background-color:#ffffff;">The Company performs ongoing credit valuations of its customers’ financial condition whenever deemed necessary and generally does <em style="font: inherit;">not</em> require deposits or collateral to support customer receivables. The historical amount of losses on uncollectible accounts has been within the Company’s estimates. The Company generates much of its revenue from a limited number of customers. In </span><em style="font: inherit;">2022,</em> <em style="font: inherit;">2021</em> and <em style="font: inherit;">2020</em><span style="background-color:#ffffff;">, its top <span style="-sec-ix-hidden:c93568392"><span style="-sec-ix-hidden:c93568393"><span style="-sec-ix-hidden:c93568394">five</span></span></span> customers represented 78.2%, 67%, and 73.3% of its revenue, respectively. In </span><em style="font: inherit;">2022</em><span style="background-color:#ffffff;">, ATX and Microsoft represented 47.3% and 18.4% of its revenue, respectively. In <em style="font: inherit;">2021,</em> ATX, Microsoft and Cisco represented 25.6%, 14.1% and 11.9% of its revenue, respectively. </span></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-indent: 36pt; text-align: justify;"> </p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-indent: 36pt;"><span style="background-color:#ffffff;">The <span style="-sec-ix-hidden:c93568406"><span style="-sec-ix-hidden:c93568407">five</span></span> largest receivable balances for customers represented an aggregate of 86.9% and 70.6% of total accounts receivable at </span><em style="font: inherit;"> December 31, 2022 </em>and <em style="font: inherit;">2021</em><span style="background-color:#ffffff;">, respectively. As of </span><em style="font: inherit;"> December 31, 2022</em><span style="background-color:#ffffff;">, ATX represented 64.9% of total accounts receivable. As of <em style="font: inherit;"> December 31, 2021, </em>ATX and Microsoft represented 41.7%, and 13.3% of total accounts receivable, respectively. <em style="font: inherit;">No</em> other customer represented greater than <em style="font: inherit;">ten</em> percent of revenue in <em style="font: inherit;">2022,</em> <em style="font: inherit;">2021</em> or <em style="font: inherit;">2020</em> had greater than <em style="font: inherit;">ten</em> percent of total accounts receivable at <em style="font: inherit;"> December 31, 2022 </em>or <em style="font: inherit;">2021.</em> </span></p> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt;"> </p>
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346000 usd
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263000 usd
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388000 usd
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20222000 usd
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CY2022 us-gaap Gains Losses On Extinguishment Of Debt
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454000 usd
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1000 usd
CY2022 aaoi Government Subsidy Income
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160000 usd
CY2021 aaoi Government Subsidy Income
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