2017 Q4 Form 10-Q Financial Statement

#000146310117000110 Filed on November 08, 2017

View on sec.gov

Income Statement

Concept 2017 Q4 2017 Q3 2016 Q4
Revenue $79.67M $77.04M $90.60M
YoY Change -12.06% -13.13% 38.05%
Cost Of Revenue $60.69M $60.58M $74.37M
YoY Change -18.4% -16.8% 48.95%
Gross Profit $18.99M $16.46M $16.23M
YoY Change 16.97% 3.67% 3.4%
Gross Profit Margin 23.83% 21.37% 17.92%
Selling, General & Admin $10.92M $10.89M $13.89M
YoY Change -21.35% -38.54% -24.22%
% of Gross Profit 57.52% 66.18% 85.55%
Research & Development $8.208M $7.397M $11.38M
YoY Change -27.86% -43.83% -9.3%
% of Gross Profit 43.23% 44.94% 70.09%
Depreciation & Amortization $2.200M $2.200M $2.600M
YoY Change -15.38% -15.38% -7.14%
% of Gross Profit 11.59% 13.36% 16.02%
Operating Expenses $21.12M $22.36M $26.33M
YoY Change -19.77% -33.47% -14.72%
Operating Profit -$2.133M -$5.901M -$10.09M
YoY Change -78.86% -66.72% -33.48%
Interest Expense -$2.000M $1.760M -$1.200M
YoY Change 66.67% 42.63% 500.0%
% of Operating Profit
Other Income/Expense, Net -$1.755M -$1.137M -$2.345M
YoY Change -25.16% 29.06% -3822.22%
Pretax Income -$3.888M -$7.038M -$12.44M
YoY Change -68.74% -62.19% -17.68%
Income Tax -$948.0K -$184.0K $751.0K
% Of Pretax Income
Net Earnings -$2.940M -$6.854M -$13.19M
YoY Change -77.71% -63.46% -16.44%
Net Earnings / Revenue -3.69% -8.9% -14.56%
Basic Earnings Per Share
Diluted Earnings Per Share -$33.80K -$81.27K -$212.9K
COMMON SHARES
Basic Shares Outstanding 85.53M shares 84.58M shares 61.91M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2017 Q4 2017 Q3 2016 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $29.10M $28.90M $17.80M
YoY Change 63.48% 19.92% -37.54%
Cash & Equivalents $29.14M $28.88M $17.76M
Short-Term Investments
Other Short-Term Assets $10.00M $13.30M $7.100M
YoY Change 40.85% 84.72% 10.94%
Inventory $26.00M $25.32M $31.96M
Prepaid Expenses
Receivables $65.35M $68.87M $61.02M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $130.4M $136.3M $117.9M
YoY Change 10.68% 4.95% -3.21%
LONG-TERM ASSETS
Property, Plant & Equipment $26.48M $28.19M $31.44M
YoY Change -15.77% -13.13% -2.11%
Goodwill $3.664M $3.664M $3.664M
YoY Change 0.0% -2.16% -2.16%
Intangibles $515.0K $591.0K $945.0K
YoY Change -45.5% -64.59% -57.43%
Long-Term Investments
YoY Change
Other Assets $8.039M $8.318M $9.663M
YoY Change -16.81% -4.16% 70.21%
Total Long-Term Assets $38.70M $40.76M $45.71M
YoY Change -15.34% -12.42% 4.46%
TOTAL ASSETS
Total Short-Term Assets $130.4M $136.3M $117.9M
Total Long-Term Assets $38.70M $40.76M $45.71M
Total Assets $169.1M $177.1M $163.6M
YoY Change 3.41% 0.37% -1.18%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $28.75M $34.62M $31.70M
YoY Change -9.3% 6.36% 23.96%
Accrued Expenses $22.45M $24.15M $22.94M
YoY Change -2.14% -9.43% 18.89%
Deferred Revenue $15.69M
YoY Change
Short-Term Debt $0.00 $0.00 $10.10M
YoY Change -100.0% -100.0% -40.59%
Long-Term Debt Due $17.43M $10.55M $3.032M
YoY Change 474.84% 781.54%
Total Short-Term Liabilities $91.74M $85.49M $82.77M
YoY Change 10.84% -0.09% 13.62%
LONG-TERM LIABILITIES
Long-Term Debt $32.32M $37.06M $20.77M
YoY Change 55.63% 62.48%
Other Long-Term Liabilities $1.880M $2.808M $2.025M
YoY Change -7.16% 16.61% -23.32%
Total Long-Term Liabilities $34.20M $39.87M $22.79M
YoY Change 50.05% 58.1% 763.04%
TOTAL LIABILITIES
Total Short-Term Liabilities $91.74M $85.49M $82.77M
Total Long-Term Liabilities $34.20M $39.87M $22.79M
Total Liabilities $178.3M $184.9M $162.3M
YoY Change 9.86% 11.24% 30.78%
SHAREHOLDERS EQUITY
Retained Earnings -$295.7M -$292.8M -$250.5M
YoY Change 18.04% 23.36% 36.85%
Common Stock $1.000K $1.000K $1.000K
YoY Change 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$9.126M -$7.802M $1.300M
YoY Change
Total Liabilities & Shareholders Equity $169.1M $177.1M $163.6M
YoY Change 3.41% 0.37% -1.18%

Cashflow Statement

Concept 2017 Q4 2017 Q3 2016 Q4
OPERATING ACTIVITIES
Net Income -$2.940M -$6.854M -$13.19M
YoY Change -77.71% -63.46% -16.44%
Depreciation, Depletion And Amortization $2.200M $2.200M $2.600M
YoY Change -15.38% -15.38% -7.14%
Cash From Operating Activities -$1.900M -$2.200M -$4.400M
YoY Change -56.82% -89.32% -154.32%
INVESTING ACTIVITIES
Capital Expenditures -$500.0K -$100.0K -$2.600M
YoY Change -80.77% -95.24% -7.14%
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00 $1.100M
YoY Change -100.0% 1000.0%
Cash From Investing Activities -$500.0K -$100.0K -$1.500M
YoY Change -66.67% -95.24% -46.43%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 2.600M 0.000 -200.0K
YoY Change -1400.0% -100.0% -128.57%
NET CHANGE
Cash From Operating Activities -1.900M -2.200M -4.400M
Cash From Investing Activities -500.0K -100.0K -1.500M
Cash From Financing Activities 2.600M 0.000 -200.0K
Net Change In Cash 200.0K -2.300M -6.100M
YoY Change -103.28% -114.56% -201.67%
FREE CASH FLOW
Cash From Operating Activities -$1.900M -$2.200M -$4.400M
Capital Expenditures -$500.0K -$100.0K -$2.600M
Free Cash Flow -$1.400M -$2.100M -$1.800M
YoY Change -22.22% -88.65% -116.51%

Facts In Submission

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us-gaap Proceeds From Issuance Of Shares Under Incentive And Share Based Compensation Plans Including Stock Options
ProceedsFromIssuanceOfSharesUnderIncentiveAndShareBasedCompensationPlansIncludingStockOptions
852000 USD
CY2017Q3 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-1137000 USD
us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-4208000 USD
CY2016Q3 us-gaap Operating Expenses
OperatingExpenses
33610000 USD
us-gaap Operating Expenses
OperatingExpenses
94382000 USD
CY2017Q3 us-gaap Operating Expenses
OperatingExpenses
22362000 USD
us-gaap Operating Expenses
OperatingExpenses
74300000 USD
CY2016Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
-17731000 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
-52607000 USD
CY2017Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
-5901000 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
-37246000 USD
CY2016Q4 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
9663000 USD
CY2017Q3 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
8318000 USD
CY2016Q3 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Arising During Period Net Of Tax
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossArisingDuringPeriodNetOfTax
54000 USD
us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Arising During Period Net Of Tax
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossArisingDuringPeriodNetOfTax
-44000 USD
CY2017Q3 us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Arising During Period Net Of Tax
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossArisingDuringPeriodNetOfTax
-296000 USD
us-gaap Other Comprehensive Income Foreign Currency Transaction And Translation Gain Loss Arising During Period Net Of Tax
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationGainLossArisingDuringPeriodNetOfTax
-173000 USD
CY2016Q4 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
2025000 USD
CY2017Q3 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
2808000 USD
CY2016Q3 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
353000 USD
us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
655000 USD
CY2017Q3 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
623000 USD
us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
1771000 USD
us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
401000 USD
us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
0 USD
us-gaap Payments Of Merger Related Costs Financing Activities
PaymentsOfMergerRelatedCostsFinancingActivities
29000 USD
us-gaap Payments Of Merger Related Costs Financing Activities
PaymentsOfMergerRelatedCostsFinancingActivities
0 USD
us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
678000 USD
us-gaap Payments To Acquire Intangible Assets
PaymentsToAcquireIntangibleAssets
0 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
9607000 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
3609000 USD
CY2016Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.00001
CY2017Q3 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.00001
CY2016Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
10000000 shares
CY2017Q3 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
10000000 shares
CY2016Q4 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2017Q3 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2016Q4 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2017Q3 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2016Q4 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2017Q3 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2016Q4 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
7121000 USD
CY2017Q3 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
13254000 USD
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
14593000 USD
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
26425000 USD
us-gaap Proceeds From Issuance Of Long Term Debt
ProceedsFromIssuanceOfLongTermDebt
24175000 USD
us-gaap Proceeds From Issuance Of Long Term Debt
ProceedsFromIssuanceOfLongTermDebt
24240000 USD
us-gaap Proceeds From Issuance Of Shares Under Incentive And Share Based Compensation Plans Including Stock Options
ProceedsFromIssuanceOfSharesUnderIncentiveAndShareBasedCompensationPlansIncludingStockOptions
174000 USD
CY2016Q3 us-gaap Product Warranty Accrual Classified Current
ProductWarrantyAccrualClassifiedCurrent
6761000 USD
CY2016Q4 us-gaap Product Warranty Accrual Classified Current
ProductWarrantyAccrualClassifiedCurrent
8596000 USD
CY2017Q3 us-gaap Product Warranty Accrual
ProductWarrantyAccrual
30400000 USD
CY2017Q3 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
7397000 USD
us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
24949000 USD
us-gaap Restructuring Charges
RestructuringCharges
12200000 USD
us-gaap Restructuring Costs And Asset Impairment Charges
RestructuringCostsAndAssetImpairmentCharges
1440000 USD
CY2017Q3 us-gaap Product Warranty Accrual
ProductWarrantyAccrual
30352000 USD
us-gaap Restructuring Costs And Asset Impairment Charges
RestructuringCostsAndAssetImpairmentCharges
1638000 USD
CY2016Q3 us-gaap Restructuring Settlement And Impairment Provisions
RestructuringSettlementAndImpairmentProvisions
2717000 USD
us-gaap Restructuring Settlement And Impairment Provisions
RestructuringSettlementAndImpairmentProvisions
2717000 USD
CY2017Q3 us-gaap Restructuring Settlement And Impairment Provisions
RestructuringSettlementAndImpairmentProvisions
4071000 USD
us-gaap Restructuring Settlement And Impairment Provisions
RestructuringSettlementAndImpairmentProvisions
14927000 USD
us-gaap Proceeds From Lines Of Credit
ProceedsFromLinesOfCredit
10000000 USD
us-gaap Proceeds From Lines Of Credit
ProceedsFromLinesOfCredit
0 USD
CY2015Q4 us-gaap Product Warranty Accrual
ProductWarrantyAccrual
30547000 USD
CY2016Q2 us-gaap Product Warranty Accrual
ProductWarrantyAccrual
30066000 USD
CY2016Q3 us-gaap Product Warranty Accrual
ProductWarrantyAccrual
30349000 USD
CY2016Q4 us-gaap Product Warranty Accrual
ProductWarrantyAccrual
31414000 USD
CY2017Q2 us-gaap Product Warranty Accrual
ProductWarrantyAccrual
31613000 USD
CY2017Q3 us-gaap Product Warranty Accrual Classified Current
ProductWarrantyAccrualClassifiedCurrent
7151000 USD
CY2016Q3 us-gaap Product Warranty Accrual Noncurrent
ProductWarrantyAccrualNoncurrent
23588000 USD
CY2016Q4 us-gaap Product Warranty Accrual Noncurrent
ProductWarrantyAccrualNoncurrent
22818000 USD
CY2017Q3 us-gaap Product Warranty Accrual Noncurrent
ProductWarrantyAccrualNoncurrent
23201000 USD
CY2016Q3 us-gaap Product Warranty Accrual Period Increase Decrease
ProductWarrantyAccrualPeriodIncreaseDecrease
406000 USD
us-gaap Product Warranty Accrual Period Increase Decrease
ProductWarrantyAccrualPeriodIncreaseDecrease
561000 USD
CY2017Q3 us-gaap Product Warranty Accrual Period Increase Decrease
ProductWarrantyAccrualPeriodIncreaseDecrease
-279000 USD
us-gaap Product Warranty Accrual Period Increase Decrease
ProductWarrantyAccrualPeriodIncreaseDecrease
401000 USD
CY2016Q3 us-gaap Product Warranty Accrual Preexisting Increase Decrease
ProductWarrantyAccrualPreexistingIncreaseDecrease
783000 USD
us-gaap Product Warranty Accrual Preexisting Increase Decrease
ProductWarrantyAccrualPreexistingIncreaseDecrease
1548000 USD
CY2017Q3 us-gaap Product Warranty Accrual Preexisting Increase Decrease
ProductWarrantyAccrualPreexistingIncreaseDecrease
-1046000 USD
us-gaap Product Warranty Accrual Preexisting Increase Decrease
ProductWarrantyAccrualPreexistingIncreaseDecrease
-826000 USD
CY2016Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
31440000 USD
CY2017Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
28191000 USD
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
3194000 USD
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
911000 USD
us-gaap Repayments Of Lines Of Credit
RepaymentsOfLinesOfCredit
14550000 USD
us-gaap Repayments Of Lines Of Credit
RepaymentsOfLinesOfCredit
10100000 USD
CY2016Q3 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
13169000 USD
us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
39326000 USD
CY2016Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-250535000 USD
CY2017Q3 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-292787000 USD
CY2016Q3 us-gaap Sales Revenue Net
SalesRevenueNet
88684000 USD
us-gaap Sales Revenue Net
SalesRevenueNet
231990000 USD
CY2017Q3 us-gaap Sales Revenue Net
SalesRevenueNet
77038000 USD
us-gaap Sales Revenue Net
SalesRevenueNet
206492000 USD
CY2016Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
8730000 shares
CY2017Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
8711000 shares
CY2016Q3 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
11016000 USD
us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
31218000 USD
CY2017Q3 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
5453000 USD
us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
18186000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
8239000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
5277000 USD
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures And Expirations In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod
4193000 shares
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures And Expirations In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice
7.02
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
4191000 shares
CY2017Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue
3100000 USD
CY2016Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
4.56
CY2017Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
1.74
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice
0.39
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
1.14
CY2016Q3 us-gaap Standard Product Warranty Accrual Payments
StandardProductWarrantyAccrualPayments
2561000 USD
us-gaap Standard Product Warranty Accrual Payments
StandardProductWarrantyAccrualPayments
6517000 USD
CY2017Q3 us-gaap Standard Product Warranty Accrual Payments
StandardProductWarrantyAccrualPayments
1494000 USD
us-gaap Standard Product Warranty Accrual Payments
StandardProductWarrantyAccrualPayments
5092000 USD
CY2016Q3 us-gaap Standard Product Warranty Accrual Warranties Issued
StandardProductWarrantyAccrualWarrantiesIssued
1194000 USD
us-gaap Standard Product Warranty Accrual Warranties Issued
StandardProductWarrantyAccrualWarrantiesIssued
2931000 USD
CY2017Q3 us-gaap Standard Product Warranty Accrual Warranties Issued
StandardProductWarrantyAccrualWarrantiesIssued
1009000 USD
us-gaap Standard Product Warranty Accrual Warranties Issued
StandardProductWarrantyAccrualWarrantiesIssued
2913000 USD
us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
17000 shares
CY2016Q4 us-gaap Stockholders Equity
StockholdersEquity
1300000 USD
CY2017Q3 us-gaap Stockholders Equity
StockholdersEquity
-7802000 USD
CY2016Q3 us-gaap Warrants Not Settleable In Cash Fair Value Disclosure
WarrantsNotSettleableInCashFairValueDisclosure
0 USD
CY2017Q3 us-gaap Warrants Not Settleable In Cash Fair Value Disclosure
WarrantsNotSettleableInCashFairValueDisclosure
1447000 USD
CY2016Q3 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
47278000 shares
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
46704000 shares
CY2017Q3 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
84862000 shares
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
81993000 shares
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:8px;font-size:10pt;"><font style="font-family:Arial;font-size:10pt;font-style:italic;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;padding-top:8px;text-indent:32px;font-size:10pt;"><font style="font-family:Arial;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, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Significant estimates and assumptions reflected in the financial statements include revenue recognition, inventory valuation and accrued warranty obligations. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ materially from management&#8217;s estimates using different assumptions or under different conditions.</font></div></div>

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