2022 Q3 Form 10-Q Financial Statement

#000182600024000071 Filed on December 19, 2024

View on sec.gov

Income Statement

Concept 2022 Q3 2022 Q2
Revenue $8.839M $9.830M
YoY Change -21.08% 9.22%
Cost Of Revenue $6.805M $13.08M
YoY Change -38.99% 58.7%
Gross Profit $2.034M -$3.250M
YoY Change 4227.66% -528.76%
Gross Profit Margin 23.01% -33.06%
Selling, General & Admin $22.11M $29.17M
YoY Change 1.55% 93.81%
% of Gross Profit 1086.77%
Research & Development $10.99M $16.71M
YoY Change -6.84% 139.09%
% of Gross Profit 540.36%
Depreciation & Amortization $1.386M $1.381M
YoY Change 68.0% 100.44%
% of Gross Profit 68.14%
Operating Expenses $34.48M $47.26M
YoY Change 0.26% 107.94%
Operating Profit -$32.45M -$50.51M
YoY Change -5.53% 130.03%
Interest Expense -$702.0K -$1.263M
YoY Change -344.6% -92.42%
% of Operating Profit
Other Income/Expense, Net -$2.351M -$1.093M
YoY Change -1287.37% -93.96%
Pretax Income -$34.80M -$51.60M
YoY Change 1.9% 28.8%
Income Tax $10.00K $20.00K
% Of Pretax Income
Net Earnings -$34.81M -$51.62M
YoY Change 1.66% 28.81%
Net Earnings / Revenue -393.81% -525.09%
Basic Earnings Per Share -$0.24 -$0.36
Diluted Earnings Per Share -$0.24 -$0.36
COMMON SHARES
Basic Shares Outstanding 144.6M shares 143.6M shares
Diluted Shares Outstanding 144.6M shares 143.3M shares

Balance Sheet

Concept 2022 Q3 2022 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $249.1M $255.5M
YoY Change -24.15% -45.86%
Cash & Equivalents $112.3M $80.60M
Short-Term Investments $136.8M $174.9M
Other Short-Term Assets
YoY Change
Inventory $33.10M $28.69M
Prepaid Expenses
Receivables $7.608M $12.59M
Other Receivables
Total Short-Term Assets $302.8M $311.5M
YoY Change -17.54% -37.23%
LONG-TERM ASSETS
Property, Plant & Equipment $7.665M $2.947M
YoY Change 363.7% 154.71%
Goodwill
YoY Change
Intangibles $153.0K $688.0K
YoY Change
Long-Term Investments
YoY Change
Other Assets $2.756M $2.933M
YoY Change 89.81% 158.64%
Total Long-Term Assets $37.94M $61.08M
YoY Change -68.46% 391.19%
TOTAL ASSETS
Total Short-Term Assets $302.8M $311.5M
Total Long-Term Assets $37.94M $61.08M
Total Assets $340.7M $372.6M
YoY Change -30.11% -26.75%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $6.253M $8.096M
YoY Change 5.18% 84.13%
Accrued Expenses $27.14M $29.37M
YoY Change 125.01% 165.31%
Deferred Revenue $10.44M $9.919M
YoY Change 129.97% 169.1%
Short-Term Debt
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $45.74M $48.76M
YoY Change 81.0% 140.74%
LONG-TERM LIABILITIES
Long-Term Debt
YoY Change
Other Long-Term Liabilities $228.0K $141.0K
YoY Change -59.21% -74.78%
Total Long-Term Liabilities $228.0K $141.0K
YoY Change -59.21% -74.78%
TOTAL LIABILITIES
Total Short-Term Liabilities $45.74M $48.76M
Total Long-Term Liabilities $228.0K $141.0K
Total Liabilities $77.62M $80.53M
YoY Change 24.69% 42.88%
SHAREHOLDERS EQUITY
Retained Earnings -$464.5M -$429.7M
YoY Change 69.16% 78.77%
Common Stock $16.00K $16.00K
YoY Change -23.81% 6.67%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $263.1M $292.0M
YoY Change
Total Liabilities & Shareholders Equity $340.7M $372.6M
YoY Change -30.11% -26.75%

Cashflow Statement

Concept 2022 Q3 2022 Q2
OPERATING ACTIVITIES
Net Income -$34.81M -$51.62M
YoY Change 1.66% 28.81%
Depreciation, Depletion And Amortization $1.386M $1.381M
YoY Change 68.0% 100.44%
Cash From Operating Activities
YoY Change
INVESTING ACTIVITIES
Capital Expenditures
YoY Change
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities
YoY Change
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities
YoY Change
NET CHANGE
Cash From Operating Activities
Cash From Investing Activities
Cash From Financing Activities
Net Change In Cash
YoY Change
FREE CASH FLOW
Cash From Operating Activities
Capital Expenditures
Free Cash Flow
YoY Change

Facts In Submission

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us-gaap Business Combination Consideration Transferred Liabilities Incurred
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46000 usd
CY2022Q3 us-gaap Asset Impairment Charges
AssetImpairmentCharges
500000 usd
CY2021Q3 us-gaap Asset Impairment Charges
AssetImpairmentCharges
0 usd
us-gaap Asset Impairment Charges
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us-gaap Use Of Estimates
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<div style="margin-bottom:9pt;margin-top:12pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Use of Estimates</span></div><div style="margin-bottom:9pt;margin-top:9pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of consolidated financial statements in accordance 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 consolidated financial statements and the reported amounts of income and expense during the reporting period. Estimates are used when accounting for revenue recognition, allowance for doubtful accounts, allowance for hardware returns, estimates of excess and obsolete inventory, stock-based compensation, warrants, impairment of fixed assets, investment in trading securities and capitalized internally-developed software. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, and makes adjustments when facts and circumstances dictate. These estimates are based on information available as of the date of the consolidated financial statements; actual results could differ from those estimates.</span></div><div style="margin-bottom:9pt;margin-top:9pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company’s significant accounting policies for its Condensed Consolidated Financial Statements as of September 30, 2022 are summarized below.</span></div>
CY2021Q4 us-gaap Allowance For Doubtful Accounts Receivable
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us-gaap Provision For Doubtful Accounts
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CY2022Q3 us-gaap Allowance For Doubtful Accounts Receivable
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CY2022Q3 us-gaap Intangible Assets Gross Excluding Goodwill
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CY2021Q4 us-gaap Intangible Assets Gross Excluding Goodwill
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CY2022Q3 us-gaap Finite Lived Intangible Assets Accumulated Amortization
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CY2021Q4 us-gaap Finite Lived Intangible Assets Accumulated Amortization
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CY2021Q4 us-gaap Intangible Assets Net Excluding Goodwill
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us-gaap Adjustment For Amortization
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us-gaap Adjustment For Amortization
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lat Revenue From Contracts With Customers Sales Returns Reserve For Sales Returns
RevenueFromContractsWithCustomersSalesReturnsReserveForSalesReturns
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CY2021Q3 lat Revenue From Contracts With Customers Sales Returns Reserve For Sales Returns
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300000 usd
lat Revenue From Contracts With Customers Sales Returns Reserve For Sales Returns
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100000 usd
CY2022Q3 us-gaap Capitalized Contract Cost Amortization Period
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CY2021Q4 us-gaap Contract With Customer Liability
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CY2022Q3 us-gaap Revenue Remaining Performance Obligation
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P12M
CY2022Q3 us-gaap Revenue Remaining Performance Obligation
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10400000 usd
CY2022Q3 us-gaap Revenue Remaining Performance Obligation
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31200000 usd
CY2022Q3 us-gaap Advertising Expense
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400000 usd
us-gaap Advertising Expense
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2400000 usd
CY2021Q3 us-gaap Advertising Expense
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200000 usd
us-gaap Advertising Expense
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500000 usd
CY2022Q3 us-gaap Impairment Of Long Lived Assets Held For Use
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0 usd
us-gaap Impairment Of Long Lived Assets Held For Use
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400000 usd
us-gaap Concentration Risk Credit Risk
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<div style="margin-top:9pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and trade accounts receivable. The Company primarily invests its excess cash in low-risk, highly liquid money market funds with major financial institutions as well as marketable securities (see Note 4. </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Investments</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">).</span></div><div style="margin-bottom:9pt;margin-top:9pt;text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Significant customers are those that represent more than 10% of the Company’s total revenue or gross accounts receivable balance at each balance sheet date. As of September 30, 2022, the Company had one customer that accounted for $2.5 million, or 22%, of gross accounts receivable. As of December 31, 2021, the Company had one customer that accounted for $2.7 million, or 19%, of gross accounts receivable. For the three months ended September 30, 2022, the Company had one customer that accounted for $1.4 million, or 16%, of total revenue. For the nine months ended September 30, 2022, the Company had one customer that accounted for $8.0 million, or 25%, of total revenue. For the three months ended September 30, 2021, the Company had one customer that accounted for $1.8 million, or 27%, of total revenue. For the nine months ended September 30, 2021, the Company had two customers that accounted for $5.1 million, or 28%, of total revenue.</span></div>
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CY2022Q1 us-gaap Operating Lease Liability
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CY2022Q3 us-gaap Available For Sale Securities Debt Securities
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CY2021Q4 us-gaap Available For Sale Debt Securities Amortized Cost Basis
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CY2021Q4 us-gaap Available For Sale Debt Securities Accumulated Gross Unrealized Loss Before Tax
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CY2021Q4 us-gaap Available For Sale Securities Debt Securities
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CY2021Q4 us-gaap Available For Sale Debt Securities Accumulated Gross Unrealized Loss Before Tax
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us-gaap Debt Securities Trading Realized Gain Loss
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CY2021Q4 us-gaap Inventory Raw Materials
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CY2021Q4 us-gaap Inventory Valuation Reserves
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CY2022Q3 lat Capitalized Computer Software Construction In Progress
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CY2021Q4 lat Capitalized Computer Software Construction In Progress
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CY2021Q4 us-gaap Capitalized Computer Software Net
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us-gaap Capitalized Computer Software Additions
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CY2021Q3 us-gaap Capitalized Computer Software Additions
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us-gaap Capitalized Computer Software Additions
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us-gaap Capitalized Computer Software Amortization1
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us-gaap Capitalized Computer Software Amortization1
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us-gaap Capitalized Computer Software Impairments1
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us-gaap Capitalized Computer Software Impairments1
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2092000 usd
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1701000 usd
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CY2022Q3 us-gaap Loss Contingency Accrual At Carrying Value
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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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us-gaap Earnings Per Share Basic
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us-gaap Earnings Per Share Diluted
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us-gaap Earnings Per Share Basic
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CY2021 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
12960843 shares
CY2022Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
0.71
us-gaap Sharebased Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Outstanding Options Weighted Average Remaining Contractual Term2
SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeOutstandingOptionsWeightedAverageRemainingContractualTerm2
P6Y
CY2022Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue
4469718 usd
CY2022Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
11903049 shares
CY2022Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
0.65
us-gaap Sharebased Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Exercisable Options Weighted Average Remaining Contractual Term2
SharebasedCompensationSharesAuthorizedUnderStockOptionPlansExercisePriceRangeExercisableOptionsWeightedAverageRemainingContractualTerm2
P5Y
CY2022Q3 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Intrinsic Value1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1
4456563 usd
CY2021 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageGrantDateFairValue
1.60
CY2022Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
0 shares
CY2022Q3 us-gaap Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Stock Options
EmployeeServiceShareBasedCompensationNonvestedAwardsTotalCompensationCostNotYetRecognizedStockOptions
700000 usd
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsVestedInPeriod
400000 shares
CY2021Q2 lat Share Based Compensation Arrangement By Share Based Payment Award Options Cancellation Percentage
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsCancellationPercentage
0.25
CY2021Q2 lat Share Based Compensation Arrangement By Share Based Payment Award Options Consideration Per Share Upon Cancellation
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsConsiderationPerShareUponCancellation
10.00
CY2021Q2 lat Share Based Compensation Arrangement By Share Based Payment Award Options Canceled In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsCanceledInPeriod
300000 shares
CY2021Q2 lat Sale Of Stock Consideration Received On Transaction Used To Fund Cash Election
SaleOfStockConsiderationReceivedOnTransactionUsedToFundCashElection
2600000 usd
CY2021Q2 lat Sale Of Stock Number Of Shares Issued In Transaction Used To Fund Cash Election
SaleOfStockNumberOfSharesIssuedInTransactionUsedToFundCashElection
300000 shares
CY2022Q3 ecd Rule10b51 Arr Adopted Flag
Rule10b51ArrAdoptedFlag
false
CY2022Q3 ecd Non Rule10b51 Arr Adopted Flag
NonRule10b51ArrAdoptedFlag
false
CY2022Q3 ecd Non Rule10b51 Arr Trmntd Flag
NonRule10b51ArrTrmntdFlag
false
CY2022Q3 ecd Rule10b51 Arr Trmntd Flag
Rule10b51ArrTrmntdFlag
false

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