2016 Q1 Form 10-Q Financial Statement

#000114420416101433 Filed on May 13, 2016

View on sec.gov

Income Statement

Concept 2016 Q1 2015 Q4 2015 Q1
Revenue $5.943M $5.210M $4.742M
YoY Change 25.33% -14.03% -15.02%
Cost Of Revenue $3.735M $4.750M $3.362M
YoY Change 11.09% 24.35% -11.99%
Gross Profit $2.208M $470.0K $1.380M
YoY Change 60.0% -79.02% -21.46%
Gross Profit Margin 37.15% 9.02% 29.1%
Selling, General & Admin $1.715M $1.750M $1.899M
YoY Change -9.69% -14.22% -6.45%
% of Gross Profit 77.67% 372.34% 137.61%
Research & Development $693.0K $730.0K $804.0K
YoY Change -13.81% -6.41% -4.29%
% of Gross Profit 31.39% 155.32% 58.26%
Depreciation & Amortization $120.0K $310.0K $121.0K
YoY Change -0.83% -8.82% 10.0%
% of Gross Profit 5.43% 65.96% 8.77%
Operating Expenses $2.408M $2.480M $2.703M
YoY Change -10.91% -12.37% -5.82%
Operating Profit -$200.0K -$2.010M -$1.323M
YoY Change -84.88% 240.68% 18.87%
Interest Expense $88.00K -$80.00K $0.00
YoY Change 33.33% -100.0%
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income -$288.0K -$2.090M -$1.415M
YoY Change -79.65% 226.56% 21.88%
Income Tax $0.00 $50.00K $0.00
% Of Pretax Income
Net Earnings -$288.0K -$2.140M -$1.415M
YoY Change -79.65% 219.4% 21.88%
Net Earnings / Revenue -4.85% -41.07% -29.84%
Basic Earnings Per Share
Diluted Earnings Per Share -$0.04 -$0.32 -$0.23
COMMON SHARES
Basic Shares Outstanding 6.765M shares 6.555M shares 6.263M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2016 Q1 2015 Q4 2015 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $510.0K $10.00K $90.00K
YoY Change 466.67% -95.65% -18.18%
Cash & Equivalents $513.0K $9.000K $94.00K
Short-Term Investments
Other Short-Term Assets $440.0K $280.0K $930.0K
YoY Change -52.69% -56.92% -10.58%
Inventory $5.574M $5.595M $9.310M
Prepaid Expenses
Receivables $3.151M $2.432M $2.360M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $9.676M $8.313M $12.69M
YoY Change -23.75% -33.84% 3.53%
LONG-TERM ASSETS
Property, Plant & Equipment $3.503M $3.621M $3.930M
YoY Change -10.87% -7.7% 8.29%
Goodwill $493.0K $493.0K
YoY Change 0.0%
Intangibles $361.0K $458.0K
YoY Change -28.99%
Long-Term Investments
YoY Change
Other Assets $117.0K $117.0K $2.050M
YoY Change -94.29% 317.86% 1266.67%
Total Long-Term Assets $7.523M $7.917M $8.870M
YoY Change -15.19% -8.78% -4.14%
TOTAL ASSETS
Total Short-Term Assets $9.676M $8.313M $12.69M
Total Long-Term Assets $7.523M $7.917M $8.870M
Total Assets $17.20M $16.23M $21.56M
YoY Change -20.23% -23.6% 0.23%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.999M $1.387M $2.370M
YoY Change -15.65% 2.66% 69.65%
Accrued Expenses $1.030M $960.0K $1.170M
YoY Change -11.97% 10.34% 56.0%
Deferred Revenue
YoY Change
Short-Term Debt $2.850M $2.660M $1.700M
YoY Change 67.65% 109.45% 36.0%
Long-Term Debt Due $3.548M $3.604M $3.800M
YoY Change -6.63% 1160.14% -5.0%
Total Short-Term Liabilities $9.612M $8.622M $9.060M
YoY Change 6.09% 126.66% 22.09%
LONG-TERM LIABILITIES
Long-Term Debt $3.000K $10.00K $30.00K
YoY Change -90.0% -99.72% -67.74%
Other Long-Term Liabilities $0.00 $0.00
YoY Change
Total Long-Term Liabilities $3.000K $10.00K $30.00K
YoY Change -90.0% -99.72% -67.74%
TOTAL LIABILITIES
Total Short-Term Liabilities $9.612M $8.622M $9.060M
Total Long-Term Liabilities $3.000K $10.00K $30.00K
Total Liabilities $9.615M $8.632M $9.180M
YoY Change 4.74% 16.48% 22.17%
SHAREHOLDERS EQUITY
Retained Earnings -$12.49M -$12.20M -$5.511M
YoY Change 126.57% 197.8% 26.54%
Common Stock $26.41M $26.37M $26.50M
YoY Change -0.32% -0.28% 0.9%
Preferred Stock
YoY Change
Treasury Stock (at cost) $5.634M $5.634M $7.255M
YoY Change -22.34% -22.34% -0.73%
Treasury Stock Shares 1.699M shares 1.699M shares 2.202M shares
Shareholders Equity $7.126M $7.369M $12.38M
YoY Change
Total Liabilities & Shareholders Equity $17.20M $16.23M $21.56M
YoY Change -20.23% -23.6% 0.23%

Cashflow Statement

Concept 2016 Q1 2015 Q4 2015 Q1
OPERATING ACTIVITIES
Net Income -$288.0K -$2.140M -$1.415M
YoY Change -79.65% 219.4% 21.88%
Depreciation, Depletion And Amortization $120.0K $310.0K $121.0K
YoY Change -0.83% -8.82% 10.0%
Cash From Operating Activities -$20.00K -$440.0K -$360.0K
YoY Change -94.44% -59.63% -192.31%
INVESTING ACTIVITIES
Capital Expenditures $2.000K $0.00 $132.0K
YoY Change -98.48% -100.0% 355.17%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$10.00K $0.00 -$130.0K
YoY Change -92.31% -100.0% -45.83%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net $63.00K $69.00K
YoY Change -8.7% -1.43%
Cash From Financing Activities 530.0K 160.0K 360.0K
YoY Change 47.22% -36.0% -460.0%
NET CHANGE
Cash From Operating Activities -20.00K -440.0K -360.0K
Cash From Investing Activities -10.00K 0.000 -130.0K
Cash From Financing Activities 530.0K 160.0K 360.0K
Net Change In Cash 500.0K -280.0K -130.0K
YoY Change -484.62% -76.47% -360.0%
FREE CASH FLOW
Cash From Operating Activities -$20.00K -$440.0K -$360.0K
Capital Expenditures $2.000K $0.00 $132.0K
Free Cash Flow -$22.00K -$440.0K -$492.0K
YoY Change -95.53% -69.44% -236.29%

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CY2016Q1 us-gaap Use Of Estimates
UseOfEstimates
<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;WIDOWS: 1; TEXT-TRANSFORM: none; TEXT-INDENT: 0px; MARGIN: 0pt 0px; LETTER-SPACING: normal; FONT: 10pt 'Times New Roman', Times, serif; WHITE-SPACE: normal; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px; font-stretch: normal"> </div> <table style="WIDOWS: 1; TEXT-TRANSFORM: none; MARGIN-TOP: 0px; TEXT-INDENT: 0px; LETTER-SPACING: normal; FONT: 10pt 'Times New Roman', Times, serif; MARGIN-BOTTOM: 0px; WORD-SPACING: 0px; -webkit-text-stroke-width: 0px; font-stretch: normal" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="WIDTH: 0px"></td> <td style="TEXT-ALIGN: left; WIDTH: 0.5in"> <div><i>(a)</i></div> </td> <td style="TEXT-ALIGN: justify"> <div><i>Use of Estimates</i></div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;WIDOWS: 1; TEXT-TRANSFORM: none; TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; LETTER-SPACING: normal; FONT: 10pt 'Times New Roman', Times, serif; WHITE-SPACE: normal; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px; font-stretch: normal" align="justify">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;WIDOWS: 1; TEXT-TRANSFORM: none; TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; LETTER-SPACING: normal; FONT: 10pt 'Times New Roman', Times, serif; WHITE-SPACE: normal; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px; font-stretch: normal" align="justify">The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
CY2016Q1 us-gaap Derivatives Reporting Of Derivative Activity
DerivativesReportingOfDerivativeActivity
<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;WIDOWS: 1; TEXT-TRANSFORM: none; TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; LETTER-SPACING: normal; FONT: 10pt 'Times New Roman', Times, serif; WHITE-SPACE: normal; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px; font-stretch: normal" align="justify"></div> <table style="WIDOWS: 1; TEXT-TRANSFORM: none; MARGIN-TOP: 0px; TEXT-INDENT: 0px; LETTER-SPACING: normal; FONT: 10pt 'Times New Roman', Times, serif; MARGIN-BOTTOM: 0px; WORD-SPACING: 0px; -webkit-text-stroke-width: 0px; font-stretch: normal" cellspacing="0" cellpadding="0"> <tr style="TEXT-ALIGN: justify; VERTICAL-ALIGN: top"> <td style="WIDTH: 0px"></td> <td style="TEXT-ALIGN: left; WIDTH: 0.5in"> <div><i>(b)</i></div> </td> <td style="TEXT-ALIGN: justify"> <div><i>Derivative Financial Instruments</i></div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;WIDOWS: 1; TEXT-TRANSFORM: none; TEXT-INDENT: 0px; MARGIN: 0pt 0px; LETTER-SPACING: normal; FONT: 10pt 'Times New Roman', Times, serif; WHITE-SPACE: normal; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px; font-stretch: normal" align="justify"><i>&#160;</i></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;WIDOWS: 1; TEXT-TRANSFORM: none; TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; LETTER-SPACING: normal; FONT: 10pt 'Times New Roman', Times, serif; WHITE-SPACE: normal; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px; font-stretch: normal" align="justify">The Company evaluates its convertible instruments to determine if those contracts or embedded components of those contracts qualify as derivative financial instruments to be separately accounted for in accordance with Topic 815 of the Financial Accounting Standards Board (&#8220;<b>FASB</b>&#8221;) Accounting Standards Codification (<b>&#8220;ASC</b>&#8221;). The accounting treatment of derivative financial instruments requires that the Company record the embedded conversion option at its fair value as of the inception date of the agreement and at fair value as of each subsequent balance sheet date. Any change in fair value is recorded as non-operating, non-cash income or expense for each reporting period at each balance sheet date. The Company reassesses the classification of its derivative instruments at each balance sheet date. If the classification changes as a result of events during the period, the contract is reclassified as of the date of the event that caused the reclassification.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;WIDOWS: 1; TEXT-TRANSFORM: none; TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; LETTER-SPACING: normal; FONT: 10pt 'Times New Roman', Times, serif; WHITE-SPACE: normal; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px; font-stretch: normal" align="justify">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;WIDOWS: 1; TEXT-TRANSFORM: none; TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; LETTER-SPACING: normal; FONT: 10pt 'Times New Roman', Times, serif; WHITE-SPACE: normal; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px; font-stretch: normal" align="justify">The Binomial Lattice Model was used to estimate the fair value of the conversion options that is classified as a derivative liability on the condensed consolidated balance sheets. The model includes subjective input assumptions that can materially affect the fair value estimates. The expected volatility is estimated based on the most recent historical period of time equal to the weighted average life of the conversion options.</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;WIDOWS: 1; TEXT-TRANSFORM: none; TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; LETTER-SPACING: normal; FONT: 10pt 'Times New Roman', Times, serif; WHITE-SPACE: normal; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px; font-stretch: normal" align="justify">&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;WIDOWS: 1; TEXT-TRANSFORM: none; TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; LETTER-SPACING: normal; FONT: 10pt 'Times New Roman', Times, serif; WHITE-SPACE: normal; COLOR: rgb(0,0,0); WORD-SPACING: 0px; -webkit-text-stroke-width: 0px; font-stretch: normal" align="justify">Conversion options are recorded as a discount to the host instrument and are amortized as interest expense over the life of the underlying instrument.</div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
CY2016Q1 us-gaap Inventory Gross
InventoryGross
11220000 USD
CY2015Q4 us-gaap Inventory Gross
InventoryGross
11465000 USD
CY2016Q1 bdr Inventory Value Before Reserves
InventoryValueBeforeReserves
5646000 USD
CY2015Q4 bdr Inventory Value Before Reserves
InventoryValueBeforeReserves
5870000 USD
CY2016Q1 bdr Percentage Of Fifo Inventory Non Current For Finished Goods
PercentageOfFifoInventoryNonCurrentForFinishedGoods
0.72 pure
CY2015 bdr Percentage Of Fifo Inventory Non Current For Finished Goods
PercentageOfFifoInventoryNonCurrentForFinishedGoods
0.73 pure
CY2016Q1 us-gaap Inventory Related Text
InventoryRelatedText
Inventories are stated at the lower of cost, determined by the first-in, first-out (&#8220;FIFO&#8221;) method, or market
CY2016Q1 us-gaap Derivative Liabilities Current
DerivativeLiabilitiesCurrent
177000 USD
CY2015Q4 us-gaap Derivative Liabilities Current
DerivativeLiabilitiesCurrent
0 USD
CY2016Q1 us-gaap Convertible Subordinated Debt Noncurrent
ConvertibleSubordinatedDebtNoncurrent
329000 USD
CY2015Q4 us-gaap Convertible Subordinated Debt Noncurrent
ConvertibleSubordinatedDebtNoncurrent
100000 USD
CY2016Q1 us-gaap Proceeds From Related Party Debt
ProceedsFromRelatedPartyDebt
400000 USD
CY2015Q1 us-gaap Proceeds From Related Party Debt
ProceedsFromRelatedPartyDebt
0 USD

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