2022 Q4 Form 10-Q Financial Statement

#000118518522001331 Filed on November 21, 2022

View on sec.gov

Income Statement

Concept 2022 Q4 2022 Q3 2021 Q3
Revenue $10.42M $10.63M $8.045M
YoY Change 46.13% 32.12% 162.92%
Cost Of Revenue $5.810M $4.270M $2.421M
YoY Change 42.6% 76.37% 30.85%
Gross Profit $4.610M $6.360M $5.625M
YoY Change 50.84% 13.08% 364.85%
Gross Profit Margin 44.24% 59.83% 69.91%
Selling, General & Admin $7.420M $5.680M $6.877M
YoY Change -24.96% -17.41% 468.38%
% of Gross Profit 160.95% 89.31% 122.27%
Research & Development $980.0K $1.442M $1.043M
YoY Change -28.21% 38.21% 334.75%
% of Gross Profit 21.26% 22.67% 18.55%
Depreciation & Amortization $16.20M $35.22K $464.5K
YoY Change 3625.94% -92.42% 4545.5%
% of Gross Profit 351.41% 0.55% 8.26%
Operating Expenses $24.43M $9.423M $8.378M
YoY Change 109.01% 12.47% 477.82%
Operating Profit -$19.82M -$3.063M -$2.754M
YoY Change 129.6% 11.23% 1047.36%
Interest Expense -$3.800M $907.0K -$4.740K
YoY Change 97.62% -19234.22% -98.03%
% of Operating Profit
Other Income/Expense, Net $420.0K $0.00 -$37.50K
YoY Change 54.75% -100.0% 275.0%
Pretax Income -$23.21M -$15.14M -$2.796M
YoY Change 125.7% 441.35% 470.59%
Income Tax -$50.00K $34.79K $3.254M
% Of Pretax Income
Net Earnings -$23.16M -$15.17M -$6.050M
YoY Change 229.22% 150.76% 1134.64%
Net Earnings / Revenue -222.26% -142.72% -75.19%
Basic Earnings Per Share
Diluted Earnings Per Share -$4.63 -$3.22 -$143.8K
COMMON SHARES
Basic Shares Outstanding 49.65M shares 44.84M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2022 Q4 2022 Q3 2021 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $14.00M $11.00M $29.71M
YoY Change -84.37% -62.97%
Cash & Equivalents $13.96M $11.02M $29.71M
Short-Term Investments
Other Short-Term Assets $7.427M $855.1K $261.0K
YoY Change 908.77% 227.69% 44.98%
Inventory $302.0K $273.7K $177.8K
Prepaid Expenses
Receivables $1.156M $790.1K $3.019M
Other Receivables $7.400M $22.20M $19.42M
Total Short-Term Assets $59.22M $68.38M $52.58M
YoY Change -48.81% 30.05% 507.19%
LONG-TERM ASSETS
Property, Plant & Equipment $1.696M $1.702M $2.299M
YoY Change 1.24% -25.97% 994.88%
Goodwill $26.75M $26.63M
YoY Change 342.34%
Intangibles $6.739M $22.39M
YoY Change -11.09%
Long-Term Investments $1.500M $1.500M
YoY Change
Other Assets $196.9K $186.0K $198.0K
YoY Change 3.27% -6.02% 119.94%
Total Long-Term Assets $38.44M $54.02M $16.54M
YoY Change 126.35% 226.6% 5413.04%
TOTAL ASSETS
Total Short-Term Assets $59.22M $68.38M $52.58M
Total Long-Term Assets $38.44M $54.02M $16.54M
Total Assets $97.66M $122.4M $69.12M
YoY Change -26.39% 77.08% 671.45%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $30.50M $22.70M $7.436M
YoY Change 419.69% 205.27% -44.3%
Accrued Expenses $2.300M $600.0K $375.5K
YoY Change 33.61% 59.79% 212.91%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $12.87K $276.2K
YoY Change -95.34% -62.17%
Long-Term Debt Due $0.00 $12.87K $0.00
YoY Change -100.0%
Total Short-Term Liabilities $36.74M $27.27M $11.67M
YoY Change 36.94% 133.66% -19.89%
LONG-TERM LIABILITIES
Long-Term Debt $61.73M $637.0K $645.1K
YoY Change 9399.09% -1.26%
Other Long-Term Liabilities $1.100M $1.100M $294.5K
YoY Change 6.19% 273.53% 145.41%
Total Long-Term Liabilities $61.73M $637.0K $939.6K
YoY Change 9399.09% -32.2% 683.02%
TOTAL LIABILITIES
Total Short-Term Liabilities $36.74M $27.27M $11.67M
Total Long-Term Liabilities $61.73M $637.0K $939.6K
Total Liabilities $99.58M $87.70M $12.61M
YoY Change 14.24% 595.37% -14.15%
SHAREHOLDERS EQUITY
Retained Earnings -$99.77M -$64.25M -$35.21M
YoY Change 161.33% 82.47%
Common Stock $49.02K $48.16K
YoY Change 14.45%
Preferred Stock
YoY Change
Treasury Stock (at cost) $0.00 $0.00 $2.680M
YoY Change -100.0% -100.0%
Treasury Stock Shares 0.000 shares
Shareholders Equity -$1.923M $34.71M $56.51M
YoY Change
Total Liabilities & Shareholders Equity $97.66M $122.4M $69.12M
YoY Change -26.39% 77.08% 671.45%

Cashflow Statement

Concept 2022 Q4 2022 Q3 2021 Q3
OPERATING ACTIVITIES
Net Income -$23.16M -$15.17M -$6.050M
YoY Change 229.22% 150.76% 1134.64%
Depreciation, Depletion And Amortization $16.20M $35.22K $464.5K
YoY Change 3625.94% -92.42% 4545.5%
Cash From Operating Activities $150.0K -$14.54M $1.125M
YoY Change -101.14% -1392.44% -287.5%
INVESTING ACTIVITIES
Capital Expenditures $60.00K -$150.0K -$29.41K
YoY Change -198.3% 410.03%
Acquisitions
YoY Change
Other Investing Activities -$730.0K -$1.450M $0.00
YoY Change
Cash From Investing Activities -$790.0K -$1.300M -$29.41K
YoY Change 1194.23% 4320.27%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net -$1.535M
YoY Change 89.52%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -820.0K 0.000 -1.185M
YoY Change -101.12% -100.0% -6025.45%
NET CHANGE
Cash From Operating Activities 150.0K -14.54M 1.125M
Cash From Investing Activities -790.0K -1.300M -29.41K
Cash From Financing Activities -820.0K 0.000 -1.185M
Net Change In Cash -1.460M -15.84M -89.50K
YoY Change -102.44% 17598.32% -84.57%
FREE CASH FLOW
Cash From Operating Activities $150.0K -$14.54M $1.125M
Capital Expenditures $60.00K -$150.0K -$29.41K
Free Cash Flow $90.00K -$14.39M $1.154M
YoY Change -100.69% -1346.52% -292.4%

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<p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><b><i>Use of Estimates</i></b></p><p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;"> </p><p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">The preparation of financial statements in conformity with the 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 revenues and expenses during the reporting period. Actual results could materially differ from those estimates.</p><p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;"> </p>
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rvyl Covid19 Update Textblock
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<table border="0" cellpadding="0" cellspacing="0" style="font-family:Times New Roman;font-size:10pt;width:100%;margin-left:auto;margin-right:auto;"> <tr> <td style="vertical-align:top;width:1.3%;"> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><b>3. </b></p> </td> <td style="vertical-align:top;width:20.1%;"> <p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;"><b>COVID-19 UPDATE</b></p> </td> </tr> </table><p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;"> </p><p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">In December 2019, a novel strain of coronavirus (“COVID-19”) was identified and the disease has since spread across the world. In March 2020, the World Health Organization declared COVID-19 a pandemic. The COVID-19 pandemic has negatively impacted the global economy, disrupted global supply chains, and created significant volatility and disruption in the financial and capital markets. The full extent to which the COVID-19 outbreak will impact the Company’s business, results of operations, financial condition and cash flows will depend on future developments that are highly uncertain and cannot be predicted, including new information that may emerge concerning COVID-19 and the actions to contain or treat its impact and the economic impact and the economic impact on local, regional, national and international markets. As the COVID-19 pandemic continues, the Company’s results of operations, financial condition and cash flows may be materially adversely affected, particularly if the pandemic persists for a significant period of time.</p><p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;"> </p><p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">On March 27, 2020<i>, </i>the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law. The Act includes provisions relating to refundable payroll tax credits, deferment of the employer portion of certain payroll taxes, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. These provisions are not expected to have a material effect on the Company’s unaudited consolidated financial statements.</p><p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;margin:0pt;"> </p><p style="font-family:Times New Roman;font-size:10pt;font-variant:normal;text-align:justify;margin:0pt;">On April 29, 2020, the Company entered into a loan agreement with Preferred Bank under Paycheck Protection Program administered by SBA in the amount of $272,713. Under this loan program, the loan may be forgiven if utilized for specific purpose specified under the CARES Act and PPP guideline. The loan bears interest of 1.00% per annum and matures on April 29, 2022. The loan was forgiven on November 8, 2021.</p>
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CY2022Q3 rvyl Debt Amendment Description
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On August 16, 2022, we and the Investor entered into a Restructuring Agreement (the “Restructuring Agreement”) that had the following major provisions:    a) the Investor agreed to forbear from requiring the repayment of the Note (to the extent such repayment obligation arises solely as a result of the occurrence of the maturity date and not with respect to any event of default or redemption right in the Note or pursuant to the First Indenture) during the period commencing on November 5, 2023 through, and including, November 5, 2024;     b) with respect to interest dates on and after October 3, 2022, subject to the satisfaction of certain equity conditions, unless the Company delivers a written notice to the Investor specifying that the interest due on such interest date shall be paid in cash, on the applicable interest date, the Company shall issue shares of its common stock, solely with respect to such applicable interest due on such interest date, at a conversion price equal to 95% of the lower of (i) the then in effect conversion price and (ii) the lowest volume weighted average price of our common stock during the five trading days immediately prior to such conversion;     c) the Company and the Investor agreed that, effective as of August 16, 2022, the Investor would convert $500,000 of principal (together with any accrued and unpaid interest thereon) of the Note into shares of the Company’s common stock at a conversion price equal to the lower of (i) the then in effect conversion price and (ii) the lowest volume weighted average price of our common stock during the five trading days immediately prior to such conversion. The Investor received 495,099 shares of common stock as a result of the conversion price equaling $1.02.     d) the Company and the Investor agreed that, with respect to each conversion after August 16, 2022, but not in excess of $4.5 million of principal (together with any accrued and unpaid interest thereon) of the Note, in the aggregate (excluding any interest converted in accordance with the Restructuring Agreement), on each applicable conversion date, the conversion price will equal the lesser of (i) $2.40 and (ii) 97.5% of the lower of (x) the then in effect conversion price and (y) the lowest volume weighted average price of our common stock during the five trading days immediately prior to such conversion; and     e) with respect to the Company’s proposed amendment of its Amended and Restated Articles of Incorporation and Amended and Restated By-laws with respect to and in connection with the Company’s proposed name change and increase in the number of authorized shares of the Company (the “Voting Proposal”), the Investor agreed to vote any shares of common stock held by it on the record date of the Voting Proposal in favor of the Voting Proposal.  
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CY2022Q3 us-gaap Debt Instrument Convertible Terms Of Conversion Feature
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Pursuant to the terms of the Restructuring Agreement, the investor can convert up to another $1,450,000 of the Note at a conversion price that is the lower of (i) $2.40 and (ii) 97.5% of the lower of (x) the then in effect conversion price and (y) the lowest volume weighted average price of our common stock during the five trading days immediately prior to such conversion.Thereafter, if the Company’s common stock closing price remains under $5.50 (prior to November 8, 2022) or $6.50 (on and after November 8, 2022), the investor can convert up to another $20,000,000 of the note at a conversion price that is the lower of (i) the then in effect conversion price and (ii) the greater of (x) the Note’s $1.67 floor price or (y) 98% of the market price on the conversion date. 
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3.53
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2.5
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5.37
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CY2022Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Outstanding Number
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369443 shares
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dei Amendment Flag
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dei Current Fiscal Year End Date
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dei Document Fiscal Period Focus
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Q3
dei Document Fiscal Year Focus
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2022
dei Entity Central Index Key
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