2019 Q2 Form 10-Q Financial Statement

#000143774919011785 Filed on June 11, 2019

View on sec.gov

Income Statement

Concept 2019 Q2 2018 Q2
Revenue $18.96M $26.89M
YoY Change -29.49% 69.67%
Cost Of Revenue $13.65M $17.93M
YoY Change -23.89% 76.07%
Gross Profit $5.309M $8.956M
YoY Change -40.72% 58.15%
Gross Profit Margin 28.01% 33.31%
Selling, General & Admin $5.777M $7.401M
YoY Change -21.94% 25.47%
% of Gross Profit 108.81% 82.63%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $430.0K $450.0K
YoY Change -4.44% 50.0%
% of Gross Profit 8.1% 5.02%
Operating Expenses $5.777M $7.401M
YoY Change -21.94% 25.47%
Operating Profit -$475.5K $1.558M
YoY Change -130.51% -655.47%
Interest Expense $129.3K $152.5K
YoY Change -15.2% 29.04%
% of Operating Profit 9.79%
Other Income/Expense, Net -$136.7K -$151.6K
YoY Change -9.8% -407.82%
Pretax Income -$612.2K $1.407M
YoY Change -143.52% -708.19%
Income Tax $5.240K $15.71K
% Of Pretax Income 1.12%
Net Earnings -$617.4K $1.391M
YoY Change -144.39% -681.75%
Net Earnings / Revenue -3.26% 5.17%
Basic Earnings Per Share
Diluted Earnings Per Share -$84.70K $181.0K
COMMON SHARES
Basic Shares Outstanding 7.461M
Diluted Shares Outstanding

Balance Sheet

Concept 2019 Q2 2018 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $310.0K $280.0K
YoY Change 10.71% -65.0%
Cash & Equivalents $310.7K $278.4K
Short-Term Investments
Other Short-Term Assets $430.0K $580.0K
YoY Change -25.86% 3.57%
Inventory $20.24M $18.76M
Prepaid Expenses
Receivables $11.72M $20.68M
Other Receivables $50.00K $20.00K
Total Short-Term Assets $32.75M $40.32M
YoY Change -18.77% 41.82%
LONG-TERM ASSETS
Property, Plant & Equipment $10.78M $11.90M
YoY Change -9.44% -5.54%
Goodwill
YoY Change
Intangibles $664.6K $619.4K
YoY Change 7.29% 5.73%
Long-Term Investments
YoY Change
Other Assets $93.45K $96.97K
YoY Change -3.64% -73.74%
Total Long-Term Assets $11.59M $12.69M
YoY Change -8.66% -6.43%
TOTAL ASSETS
Total Short-Term Assets $32.75M $40.32M
Total Long-Term Assets $11.59M $12.69M
Total Assets $44.34M $53.01M
YoY Change -16.35% 26.25%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $8.230M $9.890M
YoY Change -16.78% 118.32%
Accrued Expenses $1.670M $2.500M
YoY Change -33.2% 85.19%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $1.680M
YoY Change -100.0%
Long-Term Debt Due $265.5K $255.8K
YoY Change 3.82% 1.81%
Total Short-Term Liabilities $10.19M $14.38M
YoY Change -29.13% 133.57%
LONG-TERM LIABILITIES
Long-Term Debt $6.025M $6.290M
YoY Change -4.22% -3.91%
Other Long-Term Liabilities $69.37K $128.5K
YoY Change -46.02% -17.07%
Total Long-Term Liabilities $6.094M $6.419M
YoY Change -5.06% -4.21%
TOTAL LIABILITIES
Total Short-Term Liabilities $10.19M $14.38M
Total Long-Term Liabilities $6.094M $6.419M
Total Liabilities $21.44M $27.80M
YoY Change -22.89% 56.55%
SHAREHOLDERS EQUITY
Retained Earnings $9.128M $12.91M
YoY Change -29.29% 0.74%
Common Stock $13.78M $12.30M
YoY Change 12.01% 7.73%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $22.90M $25.21M
YoY Change
Total Liabilities & Shareholders Equity $44.34M $53.01M
YoY Change -16.35% 26.25%

Cashflow Statement

Concept 2019 Q2 2018 Q2
OPERATING ACTIVITIES
Net Income -$617.4K $1.391M
YoY Change -144.39% -681.75%
Depreciation, Depletion And Amortization $430.0K $450.0K
YoY Change -4.44% 50.0%
Cash From Operating Activities $700.0K -$2.750M
YoY Change -125.45% 539.53%
INVESTING ACTIVITIES
Capital Expenditures -$160.0K -$160.0K
YoY Change 0.0% 23.08%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$160.0K -$160.0K
YoY Change 0.0% 23.08%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -660.0K 2.660M
YoY Change -124.81% 2116.67%
NET CHANGE
Cash From Operating Activities 700.0K -2.750M
Cash From Investing Activities -160.0K -160.0K
Cash From Financing Activities -660.0K 2.660M
Net Change In Cash -120.0K -250.0K
YoY Change -52.0% -43.18%
FREE CASH FLOW
Cash From Operating Activities $700.0K -$2.750M
Capital Expenditures -$160.0K -$160.0K
Free Cash Flow $860.0K -$2.590M
YoY Change -133.2% 763.33%

Facts In Submission

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CY2019Q2 us-gaap Allocated Share Based Compensation Expense
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36450 USD
us-gaap Allocated Share Based Compensation Expense
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CY2018Q2 us-gaap Allocated Share Based Compensation Expense
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us-gaap Allocated Share Based Compensation Expense
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CY2018Q2 us-gaap Product Warranty Accrual
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195000 USD
CY2019Q2 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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125893
CY2019Q2 us-gaap Inventory Finished Goods Net Of Reserves
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CY2018Q4 us-gaap Inventory Finished Goods Net Of Reserves
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CY2019Q2 us-gaap Inventory Work In Process Net Of Reserves
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CY2018Q4 us-gaap Inventory Work In Process Net Of Reserves
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CY2018Q4 us-gaap Inventory Raw Materials Net Of Reserves
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CY2019Q2 us-gaap Inventory Supplies Net Of Reserves
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CY2018Q4 us-gaap Inventory Supplies Net Of Reserves
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CY2019Q2 us-gaap Inventory Net
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CY2018Q4 us-gaap Inventory Net
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CY2019Q2 us-gaap Product Warranty Expense
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us-gaap Product Warranty Expense
ProductWarrantyExpense
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CY2018Q2 us-gaap Product Warranty Expense
ProductWarrantyExpense
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us-gaap Product Warranty Expense
ProductWarrantyExpense
134181 USD
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180000 USD
CY2017Q4 us-gaap Product Warranty Accrual
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180000 USD
us-gaap Product Warranty Accrual Warranties Issued
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153981 USD
us-gaap Product Warranty Accrual Warranties Issued
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179494 USD
us-gaap Product Warranty Accrual Payments
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176554 USD
us-gaap Product Warranty Accrual Payments
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119181 USD
us-gaap Product Warranty Accrual Preexisting Increase Decrease
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2573 USD
us-gaap Product Warranty Accrual Preexisting Increase Decrease
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-45313 USD
CY2019Q2 us-gaap Product Warranty Accrual
ProductWarrantyAccrual
160000 USD
CY2019Q2 us-gaap Net Income Loss
NetIncomeLoss
-617425 USD
us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
121039
CY2018Q2 us-gaap Net Income Loss
NetIncomeLoss
1390865 USD
us-gaap Net Income Loss
NetIncomeLoss
-3927445 USD
us-gaap Net Income Loss
NetIncomeLoss
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CY2019Q2 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
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7317516
CY2018Q2 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
7675129
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
7449864
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
7489843
CY2019Q2 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.08
CY2019Q2 us-gaap Long Term Debt
LongTermDebt
6290074 USD
CY2018Q4 us-gaap Long Term Debt
LongTermDebt
6419584 USD
CY2019Q2 us-gaap Long Term Debt Current
LongTermDebtCurrent
265541 USD
CY2018Q4 us-gaap Long Term Debt Current
LongTermDebtCurrent
260954 USD
CY2019Q2 us-gaap Long Term Debt Noncurrent
LongTermDebtNoncurrent
6024533 USD
CY2018Q4 us-gaap Long Term Debt Noncurrent
LongTermDebtNoncurrent
6158630 USD
CY2018Q2 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
0.18
us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.53
us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
0.13
CY2019Q2 us-gaap Contract With Customer Liability
ContractWithCustomerLiability
175946 USD
CY2018Q4 us-gaap Contract With Customer Liability
ContractWithCustomerLiability
123979 USD
CY2019Q2 us-gaap Contract With Customer Refund Liability
ContractWithCustomerRefundLiability
128957 USD
CY2018Q4 us-gaap Contract With Customer Refund Liability
ContractWithCustomerRefundLiability
298577 USD
CY2019Q2 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
18957175 USD
CY2018Q2 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
26887689 USD
us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
35707843 USD
us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
44438729 USD
us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
DescriptionOfNewAccountingPronouncementsNotYetAdopted
<table border="0" cellpadding="0" cellspacing="0" style="width: 100%; text-indent: 0px;"> <tbody> <tr style="vertical-align: top;"> <td style="width: 27pt;"> <p style="margin: 0pt; text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><b>(<em style="font-weight: inherit; font-style: normal;">12</em>) </b></p> </td> <td> <p style="margin: 0pt; text-align: left; font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt;"><b>New Accounting Standards <em style="font-weight: inherit; font-style: normal;">Not</em> Yet Adopted</b></p> </td> </tr> </tbody> </table> <p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"> </p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:27pt;margin-right:0pt;margin-top:0pt;text-align:justify;">In <em style="font-weight: inherit; font-style: normal;"> February 2016, </em>the FASB issued Accounting Standards Update <em style="font-weight: inherit; font-style: normal;">2016</em>-<em style="font-weight: inherit; font-style: normal;">02,</em> <i>Leases</i>. The FASB has subsequently issued amendments to the initial guidance under ASU <em style="font-weight: inherit; font-style: normal;">2017</em>-<em style="font-weight: inherit; font-style: normal;">13,</em> ASU <em style="font-weight: inherit; font-style: normal;">2018</em>-<em style="font-weight: inherit; font-style: normal;">10,</em> ASU <em style="font-weight: inherit; font-style: normal;">2018</em>-<em style="font-weight: inherit; font-style: normal;">11,</em> ASU <em style="font-weight: inherit; font-style: normal;">2018</em>-<em style="font-weight: inherit; font-style: normal;">20</em> and ASU <em style="font-weight: inherit; font-style: normal;">2019</em>-<em style="font-weight: inherit; font-style: normal;">01</em> (collectively, “Topic <em style="font-weight: inherit; font-style: normal;">842”</em>). Topic <em style="font-weight: inherit; font-style: normal;">842</em> requires the recognition of a separate lease liability representing the required lease payments over the lease term and a separate lease asset representing the right to use the underlying asset during the same lease term. Additionally, Topic <em style="font-weight: inherit; font-style: normal;">842</em> provides clarification regarding the identification of certain components of contracts that would represent a lease as well as requires additional disclosures in the notes to the financial statements. Topic <em style="font-weight: inherit; font-style: normal;">842</em> is effective for fiscal years beginning after <em style="font-weight: inherit; font-style: normal;"> December 15, 2018, </em>including interim periods within that reporting period with early adoption permitted. The Company expects the adoption of this guidance <em style="font-weight: inherit; font-style: normal;"> may </em>result in an increase to its long-term assets and liabilities on its consolidated balance sheet depending on the resulting impact of any decision by the Company to renew, extend or replace its <em style="font-weight: inherit; font-style: normal;">two</em> existing real estate leases, as the current leases expire; however, the Company does <em style="font-weight: inherit; font-style: normal;">not</em> expect the adoption to have a material impact on its results of operations, financial position and liquidity and its related financial statement disclosures.</p> <p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"/> <p style="font-family: &quot;Times New Roman&quot;, Times, serif; font-size: 10pt; margin: 0pt; text-align: center;"/> <p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left"> </p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:27.35pt;margin-right:0pt;margin-top:0pt;text-align:justify;">In <em style="font-weight: inherit; font-style: normal;"> June 2018, </em>the FASB issued Accounting Standards Update <em style="font-weight: inherit; font-style: normal;">2018</em>-<em style="font-weight: inherit; font-style: normal;">07,</em> <i>Compensation – Stock Compensation (Topic <em style="font-weight: inherit; font-style: normal;">718</em>): Improvements to Nonemployee Share-Based Payment Accounting</i> (“ASU <em style="font-weight: inherit; font-style: normal;">2018</em>-<em style="font-weight: inherit; font-style: normal;">07”</em>). ASU <em style="font-weight: inherit; font-style: normal;">2018</em>-<em style="font-weight: inherit; font-style: normal;">07</em> expands the scope of Topic <em style="font-weight: inherit; font-style: normal;">718</em> to include share-based payment transactions for acquiring goods and services from nonemployees. ASU <em style="font-weight: inherit; font-style: normal;">2018</em>-<em style="font-weight: inherit; font-style: normal;">07</em> also clarifies that Topic <em style="font-weight: inherit; font-style: normal;">718</em> does <em style="font-weight: inherit; font-style: normal;">not</em> apply to share-based payments used to effectively provide (<em style="font-weight: inherit; font-style: normal;">1</em>) financing to the issuer or (<em style="font-weight: inherit; font-style: normal;">2</em>) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under <i>Revenue from Contracts with Customers</i> (Topic <em style="font-weight: inherit; font-style: normal;">606</em>). ASU <em style="font-weight: inherit; font-style: normal;">2018</em>-<em style="font-weight: inherit; font-style: normal;">07</em> is effective for fiscal years beginning after <em style="font-weight: inherit; font-style: normal;"> December 15, 2018, </em>including interim periods within that reporting period, with early adoption permitted. The adoption of ASU <em style="font-weight: inherit; font-style: normal;">2018</em>-<em style="font-weight: inherit; font-style: normal;">07</em> is <em style="font-weight: inherit; font-style: normal;">not</em> expected to have a material impact on the Company's results of operations, financial position or liquidity or its related financial statement disclosures.</p> <p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"> </p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:27.35pt;margin-right:0pt;margin-top:0pt;text-align:justify;">In <em style="font-weight: inherit; font-style: normal;"> June 2018, </em>the FASB issued Accounting Standards Update <em style="font-weight: inherit; font-style: normal;">2018</em>-<em style="font-weight: inherit; font-style: normal;">08,</em> <i>Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made</i> (“ASU <em style="font-weight: inherit; font-style: normal;">2018</em>-<em style="font-weight: inherit; font-style: normal;">08”</em>). ASU <em style="font-weight: inherit; font-style: normal;">2018</em>-<em style="font-weight: inherit; font-style: normal;">08</em> applies to entities that receive or make contributions, which primarily are <em style="font-weight: inherit; font-style: normal;">not</em>-for-profit entities but also affects business entities that make contributions. In the context of business entities that make contributions, the FASB clarified that a contribution is conditional if the arrangement includes both a barrier for the recipient to be entitled to the assets transferred and a right of return for the assets transferred (or a right of release of the business entity’s obligation to transfer assets). The recognition of contribution expense is deferred for conditional arrangements and is immediate for unconditional arrangements. ASU <em style="font-weight: inherit; font-style: normal;">2018</em>-<em style="font-weight: inherit; font-style: normal;">08</em> requires modified prospective transition to arrangements that have <em style="font-weight: inherit; font-style: normal;">not</em> been completed as of the effective date or that are entered into after the effective date, but full retrospective application to each period presented is permitted. ASU <em style="font-weight: inherit; font-style: normal;">2018</em>-<em style="font-weight: inherit; font-style: normal;">08</em> is effective for fiscal years beginning after <em style="font-weight: inherit; font-style: normal;"> December 15, 2018, </em>including interim periods within that reporting period, with early adoption permitted. The adoption of ASU <em style="font-weight: inherit; font-style: normal;">2018</em>-<em style="font-weight: inherit; font-style: normal;">08</em> is <em style="font-weight: inherit; font-style: normal;">not</em> expected to have a material impact on the Company's results of operations, financial position or liquidity or its related financial statement disclosures.</p> <p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"> </p> <p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin-bottom:0pt;margin-left:27.35pt;margin-right:0pt;margin-top:0pt;text-align:justify;">There are <em style="font-weight: inherit; font-style: normal;">no</em> other new accounting standards issued, but <em style="font-weight: inherit; font-style: normal;">not</em> yet adopted by the Company, which are expected to materially impact the Company’s financial position, operating results or financial statement disclosures.</p> <p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin-top: 0pt; margin-bottom: 0pt;"/> <p style="font-family: 'Times New Roman', Times, serif; font-size: 10pt; margin: 0pt; text-align: left"/>

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