2017 Q2 Form 10-Q Financial Statement

#000114420417027059 Filed on May 15, 2017

View on sec.gov

Income Statement

Concept 2017 Q2 2017 Q1 2016 Q4
Revenue $6.160M $5.973M $5.450M
YoY Change 8.41% 0.5% 4.61%
Cost Of Revenue $4.040M $3.572M $3.680M
YoY Change 26.05% -4.36% -22.53%
Gross Profit $2.130M $2.401M $1.770M
YoY Change -14.01% 8.74% 276.6%
Gross Profit Margin 34.58% 40.2% 32.48%
Selling, General & Admin $1.620M $1.607M $1.420M
YoY Change 4.65% -6.3% -18.86%
% of Gross Profit 76.06% 66.93% 80.23%
Research & Development $644.0K $628.0K $640.0K
YoY Change -7.2% -9.38% -12.33%
% of Gross Profit 30.23% 26.16% 36.16%
Depreciation & Amortization $170.0K $86.00K $220.0K
YoY Change -34.62% -28.33% -29.03%
% of Gross Profit 7.98% 3.58% 12.43%
Operating Expenses $2.263M $2.235M $2.060M
YoY Change 0.94% -7.18% -16.94%
Operating Profit -$138.0K $166.0K -$290.0K
YoY Change -158.72% -183.0% -85.57%
Interest Expense $93.00K $280.0K -$20.00K
YoY Change -203.33% 218.18% -75.0%
% of Operating Profit 168.67%
Other Income/Expense, Net
YoY Change
Pretax Income -$231.0K -$256.0K -$310.0K
YoY Change -416.44% -11.11% -85.17%
Income Tax $0.00 $0.00 $30.00K
% Of Pretax Income
Net Earnings -$231.0K -$256.0K -$340.0K
YoY Change -416.44% -11.11% -84.11%
Net Earnings / Revenue -3.75% -4.29% -6.24%
Basic Earnings Per Share
Diluted Earnings Per Share -$0.03 -$0.03 -$0.04
COMMON SHARES
Basic Shares Outstanding 8.122M shares 8.122M shares 8.098M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2017 Q2 2017 Q1 2016 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $360.0K $540.0K $470.0K
YoY Change 16.13% 5.88% 4600.0%
Cash & Equivalents $361.0K $468.0K
Short-Term Investments
Other Short-Term Assets $260.0K $440.0K $280.0K
YoY Change -16.13% 0.0% 0.0%
Inventory $5.305M $5.100M $5.064M
Prepaid Expenses
Receivables $2.344M $2.350M $2.273M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $8.274M $8.431M $8.080M
YoY Change -3.11% -12.87% -2.8%
LONG-TERM ASSETS
Property, Plant & Equipment $3.160M $3.211M $3.279M
YoY Change -6.78% -8.34% -9.44%
Goodwill $493.0K $493.0K $493.0K
YoY Change 0.0% 0.0%
Intangibles $117.0K
YoY Change -74.45%
Long-Term Investments
YoY Change
Other Assets $380.0K $416.0K $428.0K
YoY Change -67.8% 255.56% 265.81%
Total Long-Term Assets $6.440M $6.667M $6.920M
YoY Change -8.28% -11.38% -12.59%
TOTAL ASSETS
Total Short-Term Assets $8.274M $8.431M $8.080M
Total Long-Term Assets $6.440M $6.667M $6.920M
Total Assets $14.71M $15.10M $15.00M
YoY Change -5.44% -12.22% -7.58%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.240M $1.350M $1.390M
YoY Change 42.53% -32.47% 0.22%
Accrued Expenses $720.0K $720.0K $600.0K
YoY Change -5.26% -30.1% -37.5%
Deferred Revenue
YoY Change
Short-Term Debt $1.970M $2.050M $2.120M
YoY Change -11.66% -28.07% -20.3%
Long-Term Debt Due $246.0K $246.0K $228.0K
YoY Change -92.95% -93.07% -93.67%
Total Short-Term Liabilities $4.176M $4.357M $4.616M
YoY Change -45.12% -54.67% -46.46%
LONG-TERM LIABILITIES
Long-Term Debt $3.211M $3.273M $3.335M
YoY Change 817.43% 109000.0% 33250.0%
Other Long-Term Liabilities $0.00
YoY Change
Total Long-Term Liabilities $3.211M $3.273M $3.335M
YoY Change 817.43% 109000.0% 33250.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $4.176M $4.357M $4.616M
Total Long-Term Liabilities $3.211M $3.273M $3.335M
Total Liabilities $8.113M $8.339M $8.466M
YoY Change 0.41% -13.27% -1.92%
SHAREHOLDERS EQUITY
Retained Earnings -$17.67M -$17.44M -$17.18M
YoY Change 39.64% 40.83%
Common Stock $26.69M $26.62M $26.14M
YoY Change 0.78% -0.87%
Preferred Stock
YoY Change
Treasury Stock (at cost) $1.149M $1.149M $1.149M
YoY Change -79.61% -79.61%
Treasury Stock Shares 342.0 shares 342.0K shares 342.0 shares
Shareholders Equity $6.601M $6.759M $6.534M
YoY Change
Total Liabilities & Shareholders Equity $14.71M $15.10M $15.00M
YoY Change -5.44% -12.22% -7.58%

Cashflow Statement

Concept 2017 Q2 2017 Q1 2016 Q4
OPERATING ACTIVITIES
Net Income -$231.0K -$256.0K -$340.0K
YoY Change -416.44% -11.11% -84.11%
Depreciation, Depletion And Amortization $170.0K $86.00K $220.0K
YoY Change -34.62% -28.33% -29.03%
Cash From Operating Activities -$20.00K $240.0K $10.00K
YoY Change -104.08% -1300.0% -102.27%
INVESTING ACTIVITIES
Capital Expenditures $30.00K $18.00K -$30.00K
YoY Change 800.0%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$30.00K -$40.00K $30.00K
YoY Change 300.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net $44.00K
YoY Change -30.16%
Cash From Financing Activities -130.0K -120.0K 210.0K
YoY Change -81.16% -122.64% 31.25%
NET CHANGE
Cash From Operating Activities -20.00K 240.0K 10.00K
Cash From Investing Activities -30.00K -40.00K 30.00K
Cash From Financing Activities -130.0K -120.0K 210.0K
Net Change In Cash -180.0K 80.00K 250.0K
YoY Change -10.0% -84.0% -189.29%
FREE CASH FLOW
Cash From Operating Activities -$20.00K $240.0K $10.00K
Capital Expenditures $30.00K $18.00K -$30.00K
Free Cash Flow -$50.00K $222.0K $40.00K
YoY Change -110.2% -1109.09% -109.09%

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CY2017Q1 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;MARGIN: 0in 0in 0pt"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt"> <i><font style="FONT-SIZE: 10pt"> (a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Use of Estimates</font></i></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0in 0in 0pt"> <font style="FONT-SIZE: 10pt"></font>&#160;</div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0in 0in 0pt"> <font style="FONT-SIZE: 10pt">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. The Company&#8217;s significant estimates include stock compensation and reserves related to accounts receivable, inventory and deferred tax assets. Actual results could differ from those estimates.</font></div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
CY2017Q1 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;TEXT-INDENT: 0.5in; MARGIN: 0in 0in 0pt" align="justify"></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><i><font style="FONT-SIZE: 10pt"> (b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Derivative Financial Instruments</font></i></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">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.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">The Black-Scholes Model (which approximates 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 (See Note 6). 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.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">Conversion options are recorded as a discount to the host instrument and are amortized as interest expense over the life of the underlying instrument.</font></div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
CY2016Q4 us-gaap Inventory Gross
InventoryGross
10004000 USD
CY2016Q4 bdr Inventory Value Before Reserves
InventoryValueBeforeReserves
4940000 USD
CY2017Q1 bdr Percentage Of Fifo Inventory Non Current For Finished Goods
PercentageOfFifoInventoryNonCurrentForFinishedGoods
0.68 pure
CY2017Q1 us-gaap Derivative Liabilities
DerivativeLiabilities
402000 USD
CY2017Q1 us-gaap Interest Expense Debt
InterestExpenseDebt
177000 USD
CY2016Q1 us-gaap Interest Expense Debt
InterestExpenseDebt
6000 USD

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