2019 Q3 Form 10-Q Financial Statement

#000162828019009970 Filed on August 05, 2019

View on sec.gov

Income Statement

Concept 2019 Q3 2019 Q2 2018 Q3
Revenue $54.18M $38.70M $32.49M
YoY Change 66.77% 7.11% 6.91%
Cost Of Revenue $44.10M $28.78M $24.60M
YoY Change 79.27% 3.54% 6.96%
Gross Profit $10.10M $9.923M $7.885M
YoY Change 28.09% 19.01% 8.71%
Gross Profit Margin 18.64% 25.64% 24.27%
Selling, General & Admin $4.700M $6.100M $4.500M
YoY Change 4.44% 19.61% -4.26%
% of Gross Profit 46.53% 61.47% 57.07%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $1.920M $914.0K $590.0K
YoY Change 225.42% 55.44% 28.26%
% of Gross Profit 19.01% 9.21% 7.48%
Operating Expenses $6.700M $7.000M $5.100M
YoY Change 31.37% 22.81% -1.92%
Operating Profit $3.394M $1.690M $2.819M
YoY Change 20.4% -35.35% 31.18%
Interest Expense -$1.200M $297.0K -$300.0K
YoY Change 300.0% 54.69% -50.0%
% of Operating Profit -35.36% 17.57% -10.64%
Other Income/Expense, Net -$1.190M -$562.0K -$315.0K
YoY Change 277.78% 114.5% -7.35%
Pretax Income $2.204M $1.128M $2.504M
YoY Change -11.98% -52.04% 38.42%
Income Tax $639.0K $325.0K $747.0K
% Of Pretax Income 28.99% 28.81% 29.83%
Net Earnings $1.565M $803.0K $1.757M
YoY Change -10.93% -50.25% 68.94%
Net Earnings / Revenue 2.89% 2.07% 5.41%
Basic Earnings Per Share $0.13 $0.07 $0.15
Diluted Earnings Per Share $0.12 $0.06 $0.14
COMMON SHARES
Basic Shares Outstanding 12.04M shares 12.04M shares 11.90M shares
Diluted Shares Outstanding 13.08M shares

Balance Sheet

Concept 2019 Q3 2019 Q2 2018 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.800M $6.000M $6.400M
YoY Change -71.88% -9.09% 30.61%
Cash & Equivalents $1.790M $6.005M $6.355M
Short-Term Investments
Other Short-Term Assets $1.831M $2.715M $760.0K
YoY Change 140.92% 217.17% 27.09%
Inventory
Prepaid Expenses
Receivables $23.23M $24.02M $10.28M
Other Receivables $301.0K $874.0K $319.0K
Total Short-Term Assets $26.85M $32.74M $17.40M
YoY Change 54.34% 64.82% -0.25%
LONG-TERM ASSETS
Property, Plant & Equipment $5.343M $5.674M $1.566M
YoY Change 241.19% 248.1% 12.58%
Goodwill $52.76M $51.78M $25.99M
YoY Change 103.0% 99.23% 0.0%
Intangibles $41.21M $41.16M $13.37M
YoY Change 208.33% 198.12% -11.65%
Long-Term Investments
YoY Change
Other Assets $3.100M $3.700M $4.200M
YoY Change -26.19% -26.0% -57.14%
Total Long-Term Assets $102.4M $102.3M $45.15M
YoY Change 126.84% 120.23% -13.65%
TOTAL ASSETS
Total Short-Term Assets $26.85M $32.74M $17.40M
Total Long-Term Assets $102.4M $102.3M $45.15M
Total Assets $129.3M $135.0M $62.54M
YoY Change 106.68% 103.63% -10.3%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $10.05M $9.290M $3.393M
YoY Change 196.32% 138.82% -34.81%
Accrued Expenses $19.40M $18.10M $5.000M
YoY Change 288.0% 262.0% 35.14%
Deferred Revenue $92.00K $135.0K $0.00
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00 $787.0K $0.00
YoY Change -78.14% -100.0%
Total Short-Term Liabilities $29.49M $28.17M $15.93M
YoY Change 85.06% 47.16% -25.69%
LONG-TERM LIABILITIES
Long-Term Debt $53.63M $62.84M $6.958M
YoY Change 670.75% 561.52% -53.92%
Other Long-Term Liabilities $573.0K $194.0K $232.0K
YoY Change 146.98% -98.0% -98.13%
Total Long-Term Liabilities $54.20M $63.04M $7.190M
YoY Change 653.85% 549.41% -42.14%
TOTAL LIABILITIES
Total Short-Term Liabilities $29.49M $28.17M $15.93M
Total Long-Term Liabilities $54.20M $63.04M $7.190M
Total Liabilities $83.69M $91.21M $23.12M
YoY Change 261.92% 216.16% -31.73%
SHAREHOLDERS EQUITY
Retained Earnings -$39.56M -$41.12M -$44.88M
YoY Change -11.86% -11.83% -4.19%
Common Stock $85.13M $84.93M $84.30M
YoY Change 0.98% 0.99% 1.93%
Preferred Stock
YoY Change
Treasury Stock (at cost) $0.00
YoY Change
Treasury Stock Shares 0.000 shares
Shareholders Equity $45.57M $43.81M $39.42M
YoY Change
Total Liabilities & Shareholders Equity $129.3M $135.0M $62.54M
YoY Change 106.68% 103.63% -10.3%

Cashflow Statement

Concept 2019 Q3 2019 Q2 2018 Q3
OPERATING ACTIVITIES
Net Income $1.565M $803.0K $1.757M
YoY Change -10.93% -50.25% 68.94%
Depreciation, Depletion And Amortization $1.920M $914.0K $590.0K
YoY Change 225.42% 55.44% 28.26%
Cash From Operating Activities $6.890M $4.370M $6.090M
YoY Change 13.14% 9.52% 292.9%
INVESTING ACTIVITIES
Capital Expenditures -$380.0K -$30.00K -$80.00K
YoY Change 375.0% -250.0% -70.37%
Acquisitions
YoY Change
Other Investing Activities -$560.0K -$66.52M $0.00
YoY Change
Cash From Investing Activities -$930.0K -$66.55M -$80.00K
YoY Change 1062.5% -332850.0% -70.37%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -10.17M 62.72M -6.240M
YoY Change 62.98% -6309.9% 556.84%
NET CHANGE
Cash From Operating Activities 6.890M 4.370M 6.090M
Cash From Investing Activities -930.0K -66.55M -80.00K
Cash From Financing Activities -10.17M 62.72M -6.240M
Net Change In Cash -4.210M 540.0K -230.0K
YoY Change 1730.43% -82.0% -169.7%
FREE CASH FLOW
Cash From Operating Activities $6.890M $4.370M $6.090M
Capital Expenditures -$380.0K -$30.00K -$80.00K
Free Cash Flow $7.270M $4.400M $6.170M
YoY Change 17.83% 10.83% 239.01%

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us-gaap Net Cash Provided By Used In Operating Activities
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us-gaap Increase Decrease In Other Current Assets
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CY2019Q2 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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us-gaap Interest Expense
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us-gaap Interest Expense
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619000 USD
us-gaap Interest Paid Net
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248000 USD
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66000 USD
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1595000 USD
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us-gaap Net Cash Provided By Used In Financing Activities
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us-gaap Net Cash Provided By Used In Financing Activities
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-571000 USD
us-gaap Net Cash Provided By Used In Investing Activities
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-262000 USD
us-gaap Nonoperating Income Expense
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-562000 USD
us-gaap Nonoperating Income Expense
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2614000 USD
us-gaap Operating Income Loss
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5964000 USD
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us-gaap Operating Income Loss
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1.12
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ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
5.25
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2217000 USD
CY2018Q3 us-gaap Other Assets
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89000 USD
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5674000 USD
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8000 USD
us-gaap Repayments Of Long Term Capital Lease Obligations
RepaymentsOfLongTermCapitalLeaseObligations
0 USD
us-gaap Repayments Of Long Term Debt
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5730000 USD
us-gaap Repayments Of Long Term Debt
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11646000 USD
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0 USD
us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
20000 USD
CY2019Q2 us-gaap Other Nonoperating Income Expense
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0 USD
us-gaap Other Nonoperating Income Expense
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us-gaap Payments To Acquire Productive Assets
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571000 USD
us-gaap Payments To Acquire Productive Assets
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us-gaap Proceeds From Issuance Of Long Term Debt
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0 USD
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RetainedEarningsAccumulatedDeficit
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CY2018Q2 us-gaap Revenue From Contract With Customer Including Assessed Tax
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us-gaap Revenue From Contract With Customer Including Assessed Tax
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CY2019Q2 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
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us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
106208000 USD
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
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CY2018Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue
6949000 USD
CY2019Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue
5755000 USD
CY2018Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
2134000 shares
us-gaap Stock Issued During Period Value Stock Options Exercised
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CY2019Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
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CY2018Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
4.31
CY2019Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
4.36
CY2018Q3 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares
799000 shares
CY2018Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableNumber
1335000 shares
CY2019Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestExercisableNumber
1300000 shares
us-gaap Stock Issued During Period Value Stock Options Exercised
StockIssuedDuringPeriodValueStockOptionsExercised
39000 USD
CY2019Q2 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Nonvested Number Of Shares
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsNonvestedNumberOfShares
834000 shares
CY2018 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2
P6Y3M18D
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Outstanding Weighted Average Remaining Contractual Term2
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us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
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us-gaap Stock Issued During Period Value Issued For Services
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us-gaap Stock Issued During Period Value Issued For Services
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591000 USD
us-gaap Stock Option Plan Expense
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us-gaap Stock Option Plan Expense
StockOptionPlanExpense
591000 USD
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StockholdersEquity
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CY2018Q2 us-gaap Stockholders Equity
StockholdersEquity
37455000 USD
CY2018Q3 us-gaap Stockholders Equity
StockholdersEquity
39418000 USD
CY2019Q1 us-gaap Stockholders Equity
StockholdersEquity
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StockholdersEquity
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0 USD
CY2018Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
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12872000 shares
CY2019Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
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13048000 shares
CY2018Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
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us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
11875000 shares
CY2019Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
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us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
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CY2019Q2 us-gaap Write Off Of Deferred Debt Issuance Cost
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200000 USD
us-gaap Write Off Of Deferred Debt Issuance Cost
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600000 USD
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Use of estimates</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and 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. Significant estimates include valuation of goodwill and intangible assets, valuation allowances established against accounts receivable and deferred tax assets,&#160;and measurement of loss development on workers&#8217; compensation claims. We evaluate these estimates and judgments on an ongoing basis and base our estimates on historical experience, current and expected future outcomes, third-party evaluations and various other assumptions that we believe are reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. We revise material accounting estimates if changes occur, such as more experience is acquired, additional information is obtained, or there is new information on which an estimate was or can be based. Actual results could differ from those estimates. In particular, a material reduction in the fair value of goodwill could have a material adverse effect on the Company&#8217;s financial position and results of operations. We account for the effect of a change in accounting estimate during the period in which the change occurs.</font></div></div>

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