2024 Q2 Form 10-Q Financial Statement

#000147793224002987 Filed on May 15, 2024

View on sec.gov

Income Statement

Concept 2024 Q2 2024 Q1 2023 Q1
Revenue $29.46M $28.05M $38.86M
YoY Change -22.83% -27.82% -1.94%
Cost Of Revenue $19.86M $19.28M $25.64M
YoY Change -18.99% -24.8% 2.1%
Gross Profit $9.595M $8.767M $13.22M
YoY Change -29.72% -33.66% -8.94%
Gross Profit Margin 32.57% 31.25% 34.01%
Selling, General & Admin $10.20M $10.01M $11.71M
YoY Change -13.19% -14.52% -4.28%
% of Gross Profit 106.34% 114.13% 88.57%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $74.00K $77.00K $98.00K
YoY Change -22.92% -21.43% 4.26%
% of Gross Profit 0.77% 0.88% 0.74%
Operating Expenses $10.20M $10.01M $11.71M
YoY Change -13.19% -14.52% -4.28%
Operating Profit -$21.90M -$2.035M $694.0K
YoY Change -2119.93% -393.23% -41.04%
Interest Expense $115.0K $67.00K $22.00K
YoY Change 187.5% 204.55% -122.45%
% of Operating Profit 3.17%
Other Income/Expense, Net
YoY Change
Pretax Income -$21.83M -$1.923M $716.0K
YoY Change -2042.35% -368.58% -33.64%
Income Tax -$2.546M -$915.0K $58.00K
% Of Pretax Income 8.1%
Net Earnings -$19.29M -$1.008M $658.0K
YoY Change -344.87% -253.19% -39.47%
Net Earnings / Revenue -65.47% -3.59% 1.69%
Basic Earnings Per Share -$0.18 $0.01
Diluted Earnings Per Share -$0.18 -$0.01 $0.01
COMMON SHARES
Basic Shares Outstanding 108.8M shares 108.8M shares 114.5M shares
Diluted Shares Outstanding 108.8M shares 115.2K shares

Balance Sheet

Concept 2024 Q2 2024 Q1 2023 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $19.60M $21.20M $20.10M
YoY Change -5.46% 5.48% 41.79%
Cash & Equivalents $19.60M $21.20M $20.10M
Short-Term Investments
Other Short-Term Assets $1.252M $1.395M $757.0K
YoY Change 76.59% 84.28% -7.34%
Inventory
Prepaid Expenses
Receivables $14.63M $14.22M $20.43M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $35.48M $36.81M $41.29M
YoY Change -14.27% -10.84% 14.08%
LONG-TERM ASSETS
Property, Plant & Equipment $661.0K $715.0K $1.025M
YoY Change -30.35% -30.24% -3.3%
Goodwill $46.01M $61.29M $61.29M
YoY Change -24.94% 0.0% 0.0%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $391.0K $409.0K $679.0K
YoY Change -38.81% -39.76% -18.29%
Total Long-Term Assets $61.41M $80.20M $76.82M
YoY Change -25.4% 4.4% -3.28%
TOTAL ASSETS
Total Short-Term Assets $35.48M $36.81M $41.29M
Total Long-Term Assets $61.41M $80.20M $76.82M
Total Assets $96.88M $117.0M $118.1M
YoY Change -21.68% -0.93% 2.15%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.366M $2.534M $3.373M
YoY Change -17.3% -24.87% 98.76%
Accrued Expenses $5.097M $5.667M $7.041M
YoY Change -21.4% -19.51% -5.3%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $100.0K $115.0K $187.0K
YoY Change -38.65% -38.5%
Total Short-Term Liabilities $8.611M $9.373M $11.36M
YoY Change -14.61% -17.48% -14.4%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $170.0K $274.0K
YoY Change -100.0% -37.96%
Other Long-Term Liabilities $135.0K $165.0K $451.0K
YoY Change -66.42% -63.41% -17.85%
Total Long-Term Liabilities $135.0K $165.0K $451.0K
YoY Change -66.42% -63.41% -87.22%
TOTAL LIABILITIES
Total Short-Term Liabilities $8.611M $9.373M $11.36M
Total Long-Term Liabilities $135.0K $165.0K $451.0K
Total Liabilities $10.55M $11.54M $15.29M
YoY Change -20.72% -24.55% -8.96%
SHAREHOLDERS EQUITY
Retained Earnings -$23.48M -$4.193M -$9.736M
YoY Change 1162.31% -56.93% -24.48%
Common Stock $113.4M $113.2M $112.6M
YoY Change 0.57% 0.6% 0.75%
Preferred Stock
YoY Change
Treasury Stock (at cost) $3.559M
YoY Change
Treasury Stock Shares
Shareholders Equity $86.34M $105.5M $102.8M
YoY Change
Total Liabilities & Shareholders Equity $96.88M $117.0M $118.1M
YoY Change -21.68% -0.93% 2.15%

Cashflow Statement

Concept 2024 Q2 2024 Q1 2023 Q1
OPERATING ACTIVITIES
Net Income -$19.29M -$1.008M $658.0K
YoY Change -344.87% -253.19% -39.47%
Depreciation, Depletion And Amortization $74.00K $77.00K $98.00K
YoY Change -22.92% -21.43% 4.26%
Cash From Operating Activities -$1.540M $1.342M $1.765M
YoY Change -231.96% -23.97% -16.71%
INVESTING ACTIVITIES
Capital Expenditures $20.00K $12.00K $34.00K
YoY Change 0.0% -64.71% -147.89%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$20.00K -$12.00K -$34.00K
YoY Change 0.0% -64.71% -52.11%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -45.00K -40.00K -104.0K
YoY Change -91.35% -61.54%
NET CHANGE
Cash From Operating Activities -1.540M 1.342M 1.765M
Cash From Investing Activities -20.00K -12.00K -34.00K
Cash From Financing Activities -45.00K -40.00K -104.0K
Net Change In Cash -1.605M 1.290M 1.627M
YoY Change -355.98% -20.71% -20.56%
FREE CASH FLOW
Cash From Operating Activities -$1.540M $1.342M $1.765M
Capital Expenditures $20.00K $12.00K $34.00K
Free Cash Flow -$1.560M $1.330M $1.731M
YoY Change -236.01% -23.17% -20.96%

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us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
423000 usd
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
1439000 usd
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
38000 usd
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
84000 usd
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-38000 usd
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-84000 usd
job Payments For Purchases Of Treasury Stock
PaymentsForPurchasesOfTreasuryStock
1575000 usd
job Payments For Purchases Of Treasury Stock
PaymentsForPurchasesOfTreasuryStock
0 usd
us-gaap Finance Lease Principal Payments
FinanceLeasePrincipalPayments
81000 usd
us-gaap Finance Lease Principal Payments
FinanceLeasePrincipalPayments
104000 usd
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
-1656000 usd
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
-104000 usd
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Excluding Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseExcludingExchangeRateEffect
-1271000 usd
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Excluding Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseExcludingExchangeRateEffect
1251000 usd
CY2023Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
22471000 usd
CY2022Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
18848000 usd
CY2024Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
21200000 usd
CY2023Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
20099000 usd
us-gaap Interest Paid Net
InterestPaidNet
62000 usd
us-gaap Interest Paid Net
InterestPaidNet
70000 usd
us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
102000 usd
us-gaap Income Taxes Paid Net
IncomeTaxesPaidNet
219000 usd
CY2024Q1 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
573000 usd
CY2023Q3 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
562000 usd
CY2023Q3 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
562000 usd
us-gaap Provision For Other Credit Losses
ProvisionForOtherCreditLosses
50000 usd
us-gaap Allowance For Doubtful Accounts Receivable Write Offs
AllowanceForDoubtfulAccountsReceivableWriteOffs
39000 usd
CY2024Q1 us-gaap Allowance For Doubtful Accounts Receivable
AllowanceForDoubtfulAccountsReceivable
573000 usd
CY2024Q1 job Allowance For Doubtful Account Liabilities For Expected Future Falloffs And Refunds
AllowanceForDoubtfulAccountLiabilitiesForExpectedFutureFalloffsAndRefunds
65000 usd
CY2023Q3 job Allowance For Doubtful Account Liabilities For Expected Future Falloffs And Refunds
AllowanceForDoubtfulAccountLiabilitiesForExpectedFutureFalloffsAndRefunds
118000 usd
CY2024Q1 job Allowance For Doubtful Account Fall Offs And Refunds
AllowanceForDoubtfulAccountFallOffsAndRefunds
-14000 usd
CY2023Q1 job Allowance For Doubtful Account Fall Offs And Refunds
AllowanceForDoubtfulAccountFallOffsAndRefunds
269000 usd
job Allowance For Doubtful Account Fall Offs And Refunds
AllowanceForDoubtfulAccountFallOffsAndRefunds
230000 usd
job Allowance For Doubtful Account Fall Offs And Refunds
AllowanceForDoubtfulAccountFallOffsAndRefunds
433000 usd
CY2023Q1 job Weighted Average Dilutive Incremental Number Of Shares
WeightedAverageDilutiveIncrementalNumberOfShares
735000 shares
job Weighted Average Dilutive Incremental Number Of Shares
WeightedAverageDilutiveIncrementalNumberOfShares
776000 shares
CY2024Q1 job Weighted Average Anti Dilutive Incremental Number Of Shares
WeightedAverageAntiDilutiveIncrementalNumberOfShares
4472000 shares
CY2023Q1 job Weighted Average Anti Dilutive Incremental Number Of Shares
WeightedAverageAntiDilutiveIncrementalNumberOfShares
3543000 shares
job Weighted Average Anti Dilutive Incremental Number Of Shares
WeightedAverageAntiDilutiveIncrementalNumberOfShares
4077000 shares
job Weighted Average Anti Dilutive Incremental Number Of Shares
WeightedAverageAntiDilutiveIncrementalNumberOfShares
3458000 shares
CY2024Q1 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
4332000 usd
CY2023Q3 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
4309000 usd
CY2024Q1 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
3617000 usd
CY2023Q3 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment
3463000 usd
CY2024Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
715000 usd
CY2023Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
846000 usd
CY2024Q1 us-gaap Finance Lease Liability Current
FinanceLeaseLiabilityCurrent
115000 usd
job Operating Lease Expires Description
OperatingLeaseExpiresDescription
office lease expires in 2026
CY2024Q1 us-gaap Operating Lease Expense
OperatingLeaseExpense
576000 usd
CY2023Q1 us-gaap Operating Lease Expense
OperatingLeaseExpense
554000 usd
us-gaap Operating Lease Expense
OperatingLeaseExpense
1106000 usd
us-gaap Operating Lease Expense
OperatingLeaseExpense
1142000 usd
CY2024Q1 us-gaap Operating Lease Liability Current
OperatingLeaseLiabilityCurrent
1331000 usd
CY2024Q1 job Assessed Excess Fair Value Of Professional Services Reporting Unit
AssessedExcessFairValueOfProfessionalServicesReportingUnit
4000000.0 usd
CY2023Q3 job Assessed Excess Fair Value Of Professional Services Reporting Unit
AssessedExcessFairValueOfProfessionalServicesReportingUnit
20300000 usd
CY2024Q1 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
37399000 usd
CY2024Q1 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
-30432000 usd
CY2024Q1 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
6967000 usd
CY2023Q3 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
37399000 usd
CY2023Q3 us-gaap Finite Lived Intangible Assets Accumulated Amortization
FiniteLivedIntangibleAssetsAccumulatedAmortization
-28993000 usd
CY2023Q3 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
8406000 usd
CY2024Q1 us-gaap Finite Lived Intangible Assets Amortization Expense Next Twelve Months
FiniteLivedIntangibleAssetsAmortizationExpenseNextTwelveMonths
1440000 usd
CY2024Q1 us-gaap Finite Lived Intangible Assets Amortization Expense Year Two
FiniteLivedIntangibleAssetsAmortizationExpenseYearTwo
2741000 usd
CY2024Q1 us-gaap Finite Lived Intangible Assets Amortization Expense Year Three
FiniteLivedIntangibleAssetsAmortizationExpenseYearThree
1870000 usd
CY2024Q1 us-gaap Finite Lived Intangible Assets Amortization Expense Year Four
FiniteLivedIntangibleAssetsAmortizationExpenseYearFour
916000 usd
CY2024Q1 us-gaap Finite Lived Intangible Assets Net
FiniteLivedIntangibleAssetsNet
6967000 usd
CY2024Q1 job Range Of Estimated Useful Lives Of Intangible Assets
RangeOfEstimatedUsefulLivesOfIntangibleAssets
between five and ten years
job Senior Bank Loan Security And Guarantee Agreement Textblock
SeniorBankLoanSecurityAndGuaranteeAgreementTextblock
<p style="font-size:10pt;font-family:times new roman;margin:0px 0px 0px 0in"><strong>9. </strong><strong>Senior Bank Loan, Security and Guarantee Agreement</strong></p><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px 0px 0px 0in; text-align:justify;">The Company and its subsidiaries have a Loan, Security and Guaranty Agreement for a $20 million asset-based senior secured revolving credit facility (the “Facility”) with First Citizens Bank (“FCB”) (formerly CIT Bank, N.A.). The Facility is collateralized by 100% of the assets of the Company and its subsidiaries who are co-borrowers and/or guarantors. The Facility matures on the fifth anniversary of the closing date (May 14, 2026). </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px 0px 0px 0in; text-align:justify;">As of March 31, 2024, the Company had no outstanding borrowings and $8,165 available for borrowing under the terms of the Facility. The Company had $331 and $408 in unamortized debt issuance costs associated with the Facility as of March 31, 2024 and September 30, 2023, respectively. Of these costs, $153 was reflected in other current assets on the unaudited condensed consolidated balance sheets as of both March 31, 2024 and September 30, 2023 with the remainder being reflected in other long term assets. The amortization expense of these debt costs totaled $38 for the three-month periods and $76 for the six-month periods ended March 31, 2024 and 2023. The unused line fees incurred and included in interest expense totaled $25 for the three-month periods and $51 for the six-month periods ended March 31, 2024 and 2023.</p><p style="font-size:10pt;font-family:times new roman;margin:0px"> </p><p style="FONT-SIZE: 10pt; FONT-FAMILY: times new roman; MARGIN: 0px; text-align:justify;">On December 15, 2023, the Company and FCB entered into Amendment No. 2 to the Facility (“Amendment No. 2”), which provides for an increase in the Facility’s concentration limits for certain large clients at the discretion of FCB.</p>
job Restricted Common Stock Shares Granted Under Amendment Plan
RestrictedCommonStockSharesGrantedUnderAmendmentPlan
4052000 shares
us-gaap Restricted Stock Shares Issued Net Of Shares For Tax Withholdings
RestrictedStockSharesIssuedNetOfSharesForTaxWithholdings
4012000 shares
CY2024Q1 job Provision For Income Taxes
ProvisionForIncomeTaxes
-915000 usd
CY2023Q1 job Provision For Income Taxes
ProvisionForIncomeTaxes
58000 usd
job Provision For Income Taxes
ProvisionForIncomeTaxes
-915000 usd
job Provision For Income Taxes
ProvisionForIncomeTaxes
131000 usd
CY2024Q1 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.26 pure
CY2023Q1 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.08 pure
us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.26 pure
us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
0.09 pure

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