2024 Q2 Form 10-K Financial Statement

#000155837024009139 Filed on June 13, 2024

View on sec.gov

Income Statement

Concept 2024 Q2 2024 Q1 2024
Revenue $4.671M $5.152M $21.77M
YoY Change -16.4% -4.26% -26.69%
Cost Of Revenue $2.510M $2.494M $9.942M
YoY Change -0.32% 5.05% -17.22%
Gross Profit $2.161M $2.658M $11.82M
YoY Change -29.59% -11.61% -33.13%
Gross Profit Margin 46.26% 51.59% 54.32%
Selling, General & Admin $2.604M $2.354M $10.57M
YoY Change -13.32% 25.75% 6.31%
% of Gross Profit 120.5% 88.56% 89.36%
Research & Development $4.214M $4.818M $21.69M
YoY Change -19.02% -3.77% -7.9%
% of Gross Profit 195.0% 181.26% 183.45%
Depreciation & Amortization $192.0K $209.0K $927.0K
YoY Change -30.43% -17.06% -8.67%
% of Gross Profit 8.88% 7.86% 7.84%
Operating Expenses $6.818M $7.172M $32.25M
YoY Change -16.93% 4.26% -3.68%
Operating Profit -$4.657M -$4.514M -$20.43M
YoY Change -9.38% 16.58% 29.25%
Interest Expense $55.00K -$10.00K $414.0K
YoY Change -31.25% -109.9% 104.95%
% of Operating Profit
Other Income/Expense, Net -$33.00K $118.0K -$127.0K
YoY Change -47.62% 19.81%
Pretax Income $1.135M -$4.406M -$20.02M
YoY Change -122.44% 16.84% 28.27%
Income Tax $57.00K -$85.00K $70.00K
% Of Pretax Income 5.02%
Net Earnings $1.078M -$4.321M -$20.09M
YoY Change -121.1% 9.06% 25.72%
Net Earnings / Revenue 23.08% -83.87% -92.29%
Basic Earnings Per Share $0.04 -$0.80
Diluted Earnings Per Share $0.04 -$0.17 -$0.80
COMMON SHARES
Basic Shares Outstanding 25.45M 25.30M 25.14M
Diluted Shares Outstanding 25.69M 25.14M

Balance Sheet

Concept 2024 Q2 2024 Q1 2024
SHORT-TERM ASSETS
Cash & Short-Term Investments $21.77M $14.43M $14.43M
YoY Change -21.53% -52.81% -52.81%
Cash & Equivalents $21.77M $14.43M $14.43M
Short-Term Investments
Other Short-Term Assets $2.143M $7.368M $7.368M
YoY Change -89.16% 421.07% 421.07%
Inventory $4.467M $4.977M $4.977M
Prepaid Expenses
Receivables $2.718M $3.118M $3.118M
Other Receivables $0.00 $215.0K $215.0K
Total Short-Term Assets $31.09M $30.11M $30.11M
YoY Change -44.99% -28.1% -28.1%
LONG-TERM ASSETS
Property, Plant & Equipment $11.55M $1.148M $2.701M
YoY Change 60.06% -84.53% -63.61%
Goodwill $8.000M $8.000M
YoY Change 0.0% 0.0%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $9.687M $122.0K $122.0K
YoY Change 7775.61% -98.85% -98.85%
Total Long-Term Assets $21.23M $12.36M $12.36M
YoY Change -31.35% -31.35%
TOTAL ASSETS
Total Short-Term Assets $31.09M $30.11M $30.11M
Total Long-Term Assets $21.23M $12.36M $12.36M
Total Assets $52.33M $42.46M $42.46M
YoY Change -7.43% -29.08% -29.08%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $653.0K $668.0K $668.0K
YoY Change -13.28% -58.79% -58.79%
Accrued Expenses $3.241M $4.130M $4.687M
YoY Change -35.54% -20.09% -10.49%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $5.422M $5.365M $5.365M
YoY Change -13.26% -25.51% -25.51%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $8.903M $1.115M $1.115M
YoY Change 425.87% -14.36% -14.36%
Total Long-Term Liabilities $8.903M $1.115M $1.115M
YoY Change 425.87% -14.36% -14.36%
TOTAL LIABILITIES
Total Short-Term Liabilities $5.422M $5.365M $5.365M
Total Long-Term Liabilities $8.903M $1.115M $1.115M
Total Liabilities $14.33M $6.494M $6.494M
YoY Change 80.32% -23.64% -23.64%
SHAREHOLDERS EQUITY
Retained Earnings -$23.49M -$24.57M
YoY Change 144.95% 448.47%
Common Stock $25.00K $25.00K
YoY Change 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $38.00M $35.97M $35.97M
YoY Change
Total Liabilities & Shareholders Equity $52.33M $42.46M $42.46M
YoY Change -7.43% -29.08% -29.08%

Cashflow Statement

Concept 2024 Q2 2024 Q1 2024
OPERATING ACTIVITIES
Net Income $1.078M -$4.321M -$20.09M
YoY Change -121.1% 9.06% 25.72%
Depreciation, Depletion And Amortization $192.0K $209.0K $927.0K
YoY Change -30.43% -17.06% -8.67%
Cash From Operating Activities -$4.264M -$7.149M -$17.35M
YoY Change 14.29% 55.41% 3.0%
INVESTING ACTIVITIES
Capital Expenditures $32.00K $11.00K $645.0K
YoY Change -94.73% -81.03% 104.11%
Acquisitions
YoY Change
Other Investing Activities $11.34M $0.00 $3.405M
YoY Change 353.44% -51.36%
Cash From Investing Activities $11.30M -$11.00K $2.760M
YoY Change 497.15% -81.03% -58.71%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $153.0K
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 296.0K 14.00K 1.807M
YoY Change -79.9% 349.5%
NET CHANGE
Cash From Operating Activities -4.264M -7.149M -17.35M
Cash From Investing Activities 11.30M -11.00K 2.760M
Cash From Financing Activities 296.0K 14.00K 1.807M
Net Change In Cash 7.336M -7.146M -12.78M
YoY Change -2109.86% 53.41% 30.99%
FREE CASH FLOW
Cash From Operating Activities -$4.264M -$7.149M -$17.35M
Capital Expenditures $32.00K $11.00K $645.0K
Free Cash Flow -$4.296M -$7.160M -$18.00M
YoY Change -0.97% 53.71% 4.86%

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<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.37;text-indent:27pt;margin:0pt 0pt 12pt 0pt;"><span style="font-style:italic;font-weight:bold;">Use of estimates</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.37;text-indent:27pt;margin:0pt 0pt 12pt 0pt;">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 disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Significant estimates are inherent in the preparation of the consolidated financial statements and include obsolete and excess inventory and the valuation of contingent consideration. <span style="color:#212529;">The uncertainty created by the d</span>isruptions in the capital markets as a result of higher interest rates, worldwide inflationary pressures, the evolving conflict in the Middle East, the military conflict in Ukraine and the decline in the global economic environment<span style="color:#212529;">, has made such estimates more difficult and subjective. </span>Actual results could differ materially from those estimates.</p>
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<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.37;text-indent:27pt;margin:0pt 0pt 12pt 0pt;"><span style="font-style:italic;font-weight:bold;">Concentration of credit risk</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.37;text-indent:27pt;margin:0pt 0pt 12pt 0pt;">Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash, cash equivalents and short-term investments and accounts receivable. The Company places its cash primarily in checking, certificate of deposit, and money market accounts with reputable financial institutions, and by policy, limits the amount of credit exposure with any one financial institution or commercial issuer. The Company’s accounts receivables are derived primarily from revenue earned from customers located in the U.S. and Asia. The Company performs ongoing credit evaluations of its customers’ financial condition and, generally, requires no collateral from its customers. The Company maintains an allowance for credit losses based upon the expected collectability of accounts receivable. There were no write offs of accounts receivable in the years ended March 31, 2024, 2023 or 2022.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;line-height:1.37;text-indent:27pt;margin:0pt 0pt 12pt 0pt;">At March 31, 2024, three customers accounted for 46%, 18% and 14% of accounts receivable, and for the year then ended, two customers accounted for 51% and 14% of net revenues. At March 31, 2023, three customers accounted for 36%, 25% and 19% of accounts receivable, and for the year then ended, three customers accounted for 48%, 17% and 10%<span style="white-space:pre-wrap;"> of net revenues. For the year ended March 31, 2022, </span>four customers accounted for 38%, 17%, 16% and 11% of net revenues.</p>
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CY2024 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Remaining Contractual Term1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageRemainingContractualTerm1
P5Y7M9D
CY2024Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingWeightedAverageExercisePrice
5.27
CY2024Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Aggregate Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsVestedAndExpectedToVestOutstandingAggregateIntrinsicValue
1800794
CY2024Q1 us-gaap Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Number Of Outstanding Options
ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfOutstandingOptions
8968199
CY2024Q1 us-gaap Sharebased Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Outstanding Options Weighted Average Exercise Price Beginning Balance1
SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageExercisePriceBeginningBalance1
5.26
CY2024 us-gaap Sharebased Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Outstanding Options Weighted Average Remaining Contractual Term2
SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2
P5Y7M20D
CY2024Q1 us-gaap Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Number Of Exercisable Options
ShareBasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeNumberOfExercisableOptions
5886020
CY2024Q1 us-gaap Sharebased Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Exercisable Options Weighted Average Exercise Price1
SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageExercisePrice1
5.81
CY2024 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
2800000
CY2023 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
2500000
CY2022 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
3000000.0
CY2024 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
2838000
CY2023 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
2469000
CY2022 us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
2993000
CY2023 us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
EmployeeServiceShareBasedCompensationTaxBenefitFromCompensationExpense
0
CY2024 us-gaap Employee Service Share Based Compensation Tax Benefit From Compensation Expense
EmployeeServiceShareBasedCompensationTaxBenefitFromCompensationExpense
0
CY2023 us-gaap Deferred Tax Expense From Stock Options Exercised
DeferredTaxExpenseFromStockOptionsExercised
0
CY2024 us-gaap Deferred Tax Expense From Stock Options Exercised
DeferredTaxExpenseFromStockOptionsExercised
0
CY2024Q1 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Stock Options
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedStockOptions
4200000
CY2024 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Period For Recognition1
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedPeriodForRecognition1
P2Y2M4D
CY2024 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
2.13
CY2023 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
1.38
CY2022 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
2.29
CY2024 us-gaap Number Of Reportable Segments
NumberOfReportableSegments
1
CY2024 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
21765000
CY2023 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
29691000
CY2022 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
33384000
CY2024Q1 us-gaap Property Plant And Equipment And Finance Lease Right Of Use Asset After Accumulated Depreciation And Amortization
PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization
8330000
CY2023Q1 us-gaap Property Plant And Equipment And Finance Lease Right Of Use Asset After Accumulated Depreciation And Amortization
PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization
8107000
CY2024Q1 ecd Rule10b51 Arr Adopted Flag
Rule10b51ArrAdoptedFlag
false
CY2024Q1 ecd Rule10b51 Arr Trmntd Flag
Rule10b51ArrTrmntdFlag
false
CY2024Q1 ecd Non Rule10b51 Arr Adopted Flag
NonRule10b51ArrAdoptedFlag
false
CY2024Q1 ecd Non Rule10b51 Arr Trmntd Flag
NonRule10b51ArrTrmntdFlag
false

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