2013 Q2 Form 10-Q Financial Statement

#000119312513316994 Filed on August 02, 2013

View on sec.gov

Income Statement

Concept 2013 Q2 2012 Q2
Revenue $10.15M $9.224M
YoY Change 10.04% 36.59%
Cost Of Revenue $5.747M $5.574M
YoY Change 3.1% 36.82%
Gross Profit $4.403M $3.650M
YoY Change 20.63% 36.24%
Gross Profit Margin 43.38% 39.57%
Selling, General & Admin $7.954M $6.686M
YoY Change 18.97% 7.72%
% of Gross Profit 180.65% 183.18%
Research & Development $3.506M $1.712M
YoY Change 104.79% -14.14%
% of Gross Profit 79.63% 46.9%
Depreciation & Amortization $110.0K $190.0K
YoY Change -42.11% -24.0%
% of Gross Profit 2.5% 5.21%
Operating Expenses $11.51M $8.449M
YoY Change 36.24% 2.39%
Operating Profit -$7.108M -$4.799M
YoY Change 48.11% -13.89%
Interest Expense $107.0K $135.0K
YoY Change -20.74%
% of Operating Profit
Other Income/Expense, Net $438.0K $2.933M
YoY Change -85.07% -462.55%
Pretax Income -$6.670M -$1.866M
YoY Change 257.45% -70.76%
Income Tax $54.00K $41.00K
% Of Pretax Income
Net Earnings -$6.724M -$1.907M
YoY Change 252.6% -70.24%
Net Earnings / Revenue -66.25% -20.67%
Basic Earnings Per Share -$0.10 -$0.04
Diluted Earnings Per Share -$0.10 -$0.10
COMMON SHARES
Basic Shares Outstanding 69.73M shares 54.42M shares
Diluted Shares Outstanding 71.93M shares 55.24M shares

Balance Sheet

Concept 2013 Q2 2012 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $58.20M $26.70M
YoY Change 117.98% 50.0%
Cash & Equivalents $58.20M $26.67M
Short-Term Investments $0.00
Other Short-Term Assets $200.0K $1.000M
YoY Change -80.0% 11.11%
Inventory $12.76M $9.400M
Prepaid Expenses $739.0K
Receivables $5.868M $3.700M
Other Receivables $0.00 $0.00
Total Short-Term Assets $77.77M $40.80M
YoY Change 90.61% 23.64%
LONG-TERM ASSETS
Property, Plant & Equipment $1.641M $1.900M
YoY Change -13.63% -9.52%
Goodwill $1.316M
YoY Change
Intangibles $1.445M
YoY Change
Long-Term Investments
YoY Change
Other Assets $72.00K $400.0K
YoY Change -82.0% -50.0%
Total Long-Term Assets $4.778M $5.300M
YoY Change -9.85% -13.11%
TOTAL ASSETS
Total Short-Term Assets $77.77M $40.80M
Total Long-Term Assets $4.778M $5.300M
Total Assets $82.55M $46.10M
YoY Change 79.06% 17.9%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $5.035M $3.500M
YoY Change 43.86% -25.53%
Accrued Expenses $8.748M $6.600M
YoY Change 32.55% 24.53%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $2.200M $3.700M
YoY Change -40.54% 94.74%
Total Short-Term Liabilities $26.38M $22.70M
YoY Change 16.22% 2.71%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $3.700M
YoY Change -100.0% 68.18%
Other Long-Term Liabilities $1.145M $1.200M
YoY Change -4.58% -25.0%
Total Long-Term Liabilities $1.145M $4.900M
YoY Change -76.63% 28.95%
TOTAL LIABILITIES
Total Short-Term Liabilities $26.38M $22.70M
Total Long-Term Liabilities $1.145M $4.900M
Total Liabilities $27.60M $27.50M
YoY Change 0.37% 6.18%
SHAREHOLDERS EQUITY
Retained Earnings -$476.8M
YoY Change
Common Stock $70.00K
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $54.95M $18.50M
YoY Change
Total Liabilities & Shareholders Equity $82.55M $46.10M
YoY Change 79.06% 17.9%

Cashflow Statement

Concept 2013 Q2 2012 Q2
OPERATING ACTIVITIES
Net Income -$6.724M -$1.907M
YoY Change 252.6% -70.24%
Depreciation, Depletion And Amortization $110.0K $190.0K
YoY Change -42.11% -24.0%
Cash From Operating Activities -$5.690M -$5.390M
YoY Change 5.57% -9.87%
INVESTING ACTIVITIES
Capital Expenditures -$150.0K -$60.00K
YoY Change 150.0% 200.0%
Acquisitions
YoY Change
Other Investing Activities -$10.00K $90.00K
YoY Change -111.11% 125.0%
Cash From Investing Activities -$160.0K $30.00K
YoY Change -633.33% 50.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -5.110M 570.0K
YoY Change -996.49% -218.75%
NET CHANGE
Cash From Operating Activities -5.690M -5.390M
Cash From Investing Activities -160.0K 30.00K
Cash From Financing Activities -5.110M 570.0K
Net Change In Cash -10.96M -4.790M
YoY Change 128.81% -25.62%
FREE CASH FLOW
Cash From Operating Activities -$5.690M -$5.390M
Capital Expenditures -$150.0K -$60.00K
Free Cash Flow -$5.540M -$5.330M
YoY Change 3.94% -10.57%

Facts In Submission

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dei Trading Symbol
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dei Entity Registrant Name
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dei Document Type
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10-Q
dei Document Period End Date
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dei Entity Central Index Key
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<div> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman" size="2"><b>Concentration of Credit Risk</b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 8%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents, short-term investments and accounts receivable.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 8%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">Pursuant to the Company&#x2019;s investment policy, substantially all of the Company&#x2019;s cash, cash equivalents and short-term investments are maintained at a major financial institution of high credit standing. The Company monitors the financial credit worthiness of the issuers of its investments and limits the concentration in individual securities and types of investments that exist within its investment portfolio. Generally, all of the Company&#x2019;s investments carry high credit quality ratings, which is in accordance with its investment policy. At June&#xA0;30, 2013, the Company does not believe there is significant financial risk from non-performance by the issuers of the Company&#x2019;s cash equivalents.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px; FONT-SIZE: 1px"> &#xA0;</p> <p style="MARGIN-TOP: 0px; TEXT-INDENT: 8%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">Concentrations of credit risk with respect to trade receivables exist. However, in connection with the Company&#x2019;s revolving line of credit, as discussed in Note 8 in the Notes to Condensed Consolidated Financial Statements, the Company purchased a credit insurance policy that mitigates some of its credit risk, as the policy will pay either the Company or its lender on eligible claims filed on its outstanding receivables. On a regular basis, including at the time of sale, the Company performs credit evaluations of its customers. Generally, the Company does not require collateral from its customers to secure accounts receivable. To the extent that the Company determines specific invoices or customer accounts may be uncollectible, the Company reserves against the accounts receivable on its condensed consolidated balance sheets and records a charge on its condensed consolidated statements of operations.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 8%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">The Company had four customers and three customers that accounted for more than 10% of the Company&#x2019;s outstanding trade receivables at both June&#xA0;30, 2013, and December&#xA0;31, 2012. These customers cumulatively represented approximately 64&#xA0;% and 59% of the Company&#x2019;s outstanding trade receivables, at June&#xA0;30, 2013, and December&#xA0;31, 2012, respectively. To date, the Company has not experienced collection difficulties from these customers.</font></p> </div>
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<div> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman" size="2"><b>Guarantee and Indemnification Arrangements</b></font></p> <p style="MARGIN-TOP: 6px; TEXT-INDENT: 8%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">The Company recognizes the fair value for guarantee and indemnification arrangements issued or modified by the Company after December&#xA0;31, 2002. In addition, the Company monitors the conditions that are subject to the guarantees and indemnifications in order to identify if a loss has occurred. If the Company determines it is probable that a loss has occurred, then any such estimable loss would be recognized under those guarantees and indemnifications. Some of the agreements that the Company is a party to contain provisions that indemnify the counter party from damages and costs resulting from claims that the Company&#x2019;s technology infringes the intellectual property rights of a third party or claims that the sale or use of the Company&#x2019;s products have caused personal injury or other damage or loss. The Company has not received any such requests for indemnification under these provisions and has not been required to make material payments pursuant to these provisions.</font></p> <p style="MARGIN-TOP: 12px; TEXT-INDENT: 8%; MARGIN-BOTTOM: 0px"> <font style="FONT-FAMILY: Times New Roman" size="2">The Company generally provides for a one-year warranty on certain of its INTERCEPT blood-safety products covering defects in materials and workmanship. The Company accrues costs associated with warranty obligations when claims become known and are estimable. During the year ended December&#xA0;31, 2012, the Company provided for warranty obligations related to replacement costs for certain of its products that the Company identified were defective or had the potential of being defective. In connection with the warranty obligations provided for in relation to certain of its products during the year ended December&#xA0;31, 2012, the Company filed a warranty claim against Fresenius, which Fresenius accepted. As a result, the Company recorded a current asset of $1.8 million on its consolidated balance sheets as of December&#xA0;31, 2012 representing the full amount of the warranty claim against Fresenius as Fresenius will supply the Company with replacement products or credit notes for those defective or potentially defective products. The Company also wrote-down the value of certain unsalable inventory of $1.7 million related to these products as an offsetting warranty claim against Fresenius as of December&#xA0;31, 2012. As of June&#xA0;30, 2013, the Company no longer has a warranty claim against Fresenius and all unsalable inventory has been returned to Fresenius. During the three months ended March&#xA0;31, 2013, the Company identified a separate production defect related to unsold inventory. The Company&#x2019;s third party manufacturer has taken responsibility for the cost of replacing such damaged goods, therefore, the Company has borne no costs associated with these defects. Prior to these incidents, there have been very few warranty costs incurred. As a result, the Company did not accrue for any potential future warranty costs at June&#xA0;30, 2013. In addition, the Company believes that the defective products and those that had the potential of being defective identified during the three months ended March&#xA0;31, 2013 and during the year ended December&#xA0;31, 2012 are isolated.</font></p> </div>
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