2023 Q3 Form 10-Q Financial Statement

#000121390023086406 Filed on November 14, 2023

View on sec.gov

Income Statement

Concept 2023 Q3 2023 Q2 2022 Q3
Revenue $42.86M $32.63M $26.94M
YoY Change 59.09% -62.96%
Cost Of Revenue $35.98M $26.00M $22.15M
YoY Change 62.41% -65.23%
Gross Profit $6.888M $6.625M $4.792M
YoY Change 43.74% -50.21%
Gross Profit Margin 16.07% 20.3% 17.79%
Selling, General & Admin $7.800M $6.054M $6.007M
YoY Change 29.84% -57.65%
% of Gross Profit 113.23% 91.39% 125.35%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $29.12K $25.78K $6.556K
YoY Change 344.14% 173.67%
% of Gross Profit 0.42% 0.39% 0.14%
Operating Expenses $7.800M $6.054M $6.007M
YoY Change 29.84% -57.65%
Operating Profit -$911.3K $570.6K -$1.215M
YoY Change -24.99% -157.71%
Interest Expense $75.91K -$389.4K
YoY Change -715.94%
% of Operating Profit -68.25%
Other Income/Expense, Net -$43.20K -$46.71K
YoY Change -138.16%
Pretax Income -$878.6K $134.5K
YoY Change -116.75%
Income Tax $496.1K $175.3K
% Of Pretax Income 130.35%
Net Earnings -$1.375M -$40.83K -$2.002M
YoY Change -31.33% -97.82%
Net Earnings / Revenue -3.21% -0.13% -7.43%
Basic Earnings Per Share -$0.03 -$0.04
Diluted Earnings Per Share -$0.03 $0.00 -$0.04
COMMON SHARES
Basic Shares Outstanding 54.86M shares 53.11M shares 50.00M shares
Diluted Shares Outstanding 54.25M shares 50.00M shares

Balance Sheet

Concept 2023 Q3 2023 Q2 2022 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $34.88M $49.43M
YoY Change
Cash & Equivalents $25.69M $40.30M $76.10M
Short-Term Investments $9.193M $9.134M
Other Short-Term Assets $1.720M $3.379M
YoY Change
Inventory $5.609M $7.472M
Prepaid Expenses
Receivables $39.16M $24.53M
Other Receivables $244.9K $127.6K
Total Short-Term Assets $81.61M $84.81M
YoY Change -14.72%
LONG-TERM ASSETS
Property, Plant & Equipment $1.592M $1.088M
YoY Change 854.29%
Goodwill
YoY Change
Intangibles $255.7K $0.00
YoY Change
Long-Term Investments
YoY Change
Other Assets $6.793M $5.882M
YoY Change 357.42%
Total Long-Term Assets $6.793M $5.882M
YoY Change 357.42%
TOTAL ASSETS
Total Short-Term Assets $81.61M $84.81M
Total Long-Term Assets $6.793M $5.882M
Total Assets $88.41M $90.69M
YoY Change -9.97%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $50.68M $1.274M
YoY Change 338.63%
Accrued Expenses $17.31K $35.85K
YoY Change 3.66%
Deferred Revenue $1.290M $988.6K
YoY Change -40.88%
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $54.01M $55.96M
YoY Change -37.1%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change
Other Long-Term Liabilities $3.388M $3.356M
YoY Change
Total Long-Term Liabilities $3.388M $3.356M
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $54.01M $55.96M
Total Long-Term Liabilities $3.388M $3.356M
Total Liabilities $57.39M $59.32M
YoY Change -33.33%
SHAREHOLDERS EQUITY
Retained Earnings $4.473M $5.848M
YoY Change -51.05%
Common Stock $5.427K $5.422K
YoY Change 8.44%
Preferred Stock $7.426M
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $31.01M $31.37M $9.758M
YoY Change
Total Liabilities & Shareholders Equity $88.41M $90.69M
YoY Change -9.97%

Cashflow Statement

Concept 2023 Q3 2023 Q2 2022 Q3
OPERATING ACTIVITIES
Net Income -$1.375M -$40.83K -$2.002M
YoY Change -31.33% -97.82%
Depreciation, Depletion And Amortization $29.12K $25.78K $6.556K
YoY Change 344.14% 173.67%
Cash From Operating Activities -$12.88M -$9.833M $2.236M
YoY Change -676.08% -1383.96%
INVESTING ACTIVITIES
Capital Expenditures $533.1K $525.7K $324.7K
YoY Change 64.17% 608.78%
Acquisitions
YoY Change
Other Investing Activities $470.7K
YoY Change
Cash From Investing Activities -$788.8K -$55.00K -$324.7K
YoY Change 142.89% -25.85%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$945.5K 26.15M -$291.4K
YoY Change 224.52% -3864.01%
NET CHANGE
Cash From Operating Activities -$12.88M -9.833M $2.236M
Cash From Investing Activities -$788.8K -55.00K -$324.7K
Cash From Financing Activities -$945.5K 26.15M -$291.4K
Net Change In Cash -$14.61M 16.26M $1.620M
YoY Change -1002.28% -519747.28%
FREE CASH FLOW
Cash From Operating Activities -$12.88M -$9.833M $2.236M
Capital Expenditures $533.1K $525.7K $324.7K
Free Cash Flow -$13.41M -$10.36M $1.911M
YoY Change -801.87% -1597.64%

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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Use of estimates</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The preparation of the consolidated financial statements in conformity with U.S. GAAP requires the Company 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 include allowance for doubtful accounts, the useful lives of property and equipment, impairment of long-lived assets, and deferred cost. Actual results could differ from those estimates.</p>
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<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b><i>Customer Concentration</i></b></p><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For the three months ended September 30, 2022 and 2023, the Company’s major customers, who accounted for more than 10% of the Company’s consolidated revenue, were as follows:</p><table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="6" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Three months ended<br/> September 30,</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td style="text-align: center"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2022</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td> <td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">2023</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr> <tr style="vertical-align: bottom"> <td>Major Customers</td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td><td> </td> <td colspan="2" style="text-align: right"> </td><td> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 76%; text-align: left">Customer A</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">37</td><td style="width: 1%; text-align: left">%</td><td style="width: 1%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 9%; text-align: right">35</td><td style="width: 1%; text-align: left">%</td></tr> <tr style="vertical-align: bottom; "> <td style="text-align: left">Customer B</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"><span style="-sec-ix-hidden: hidden-fact-57; font-family: Times New Roman, Times, Serif; font-size: 10pt">                *</span></td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">16</td><td style="text-align: left">%</td></tr> </table><table cellpadding="0" cellspacing="0" style="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0pt; width: 100%"><tr style="vertical-align: top"> <td style="width: 0.25in; text-align: left">*</td><td>Represented less than 10% of consolidated revenue.</td> </tr></table>
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