2014 Q4 Form 10-Q Financial Statement

#000114420414067718 Filed on November 13, 2014

View on sec.gov

Income Statement

Concept 2014 Q4 2014 Q3 2013 Q4
Revenue $8.411M $6.213M $13.07M
YoY Change -35.63% -39.63% 52.7%
Cost Of Revenue $5.910M $4.051M $11.03M
YoY Change -46.42% -49.88% 79.93%
Gross Profit $2.500M $2.162M $2.030M
YoY Change 23.15% -2.17% -16.12%
Gross Profit Margin 29.72% 34.8% 15.54%
Selling, General & Admin $2.510M $2.326M $2.390M
YoY Change 5.02% -24.16% -4.4%
% of Gross Profit 100.4% 107.59% 117.73%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $20.00K $71.00K $170.0K
YoY Change -88.24% -11.25% 142.86%
% of Gross Profit 0.8% 3.28% 8.37%
Operating Expenses $2.620M $2.455M $2.750M
YoY Change -4.73% -22.31% 7.0%
Operating Profit -$120.0K -$293.0K -$720.0K
YoY Change -83.33% -69.16% 380.0%
Interest Expense -$70.00K $73.00K -$70.00K
YoY Change 0.0% -214.06% 250.0%
% of Operating Profit
Other Income/Expense, Net $0.00 $0.00 $0.00
YoY Change -100.0%
Pretax Income -$190.0K -$366.0K -$790.0K
YoY Change -75.95% -64.08% 364.71%
Income Tax $50.00K $0.00 $0.00
% Of Pretax Income
Net Earnings -$170.0K -$366.0K -$788.0K
YoY Change -78.43% -64.08% 357.63%
Net Earnings / Revenue -2.02% -5.89% -6.03%
Basic Earnings Per Share
Diluted Earnings Per Share -$0.02 -$0.02 -$0.06
COMMON SHARES
Basic Shares Outstanding 15.20M shares 15.08M shares 14.57M shares
Diluted Shares Outstanding 15.08M shares

Balance Sheet

Concept 2014 Q4 2014 Q3 2013 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.380M $910.0K $3.290M
YoY Change -58.05% 54.24% -41.35%
Cash & Equivalents $1.378M $907.0K $3.291M
Short-Term Investments
Other Short-Term Assets $1.280M $1.560M $1.500M
YoY Change -14.67% -10.34% 20.97%
Inventory $154.0K $161.0K $217.0K
Prepaid Expenses
Receivables $3.950M $5.930M $8.410M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $6.768M $8.552M $13.41M
YoY Change -49.53% -39.3% -6.71%
LONG-TERM ASSETS
Property, Plant & Equipment $670.0K $604.0K $437.0K
YoY Change 53.32% 54.06% 59.81%
Goodwill $1.907M $1.907M $1.907M
YoY Change 0.0% 0.02% 7.81%
Intangibles $979.0K $1.013M $1.116M
YoY Change -12.28% -14.38% 1760.0%
Long-Term Investments
YoY Change
Other Assets $91.00K $83.00K $154.0K
YoY Change -40.91% -50.54% 695.54%
Total Long-Term Assets $3.647M $3.607M $3.614M
YoY Change 0.91% -1.17% 70.34%
TOTAL ASSETS
Total Short-Term Assets $6.768M $8.552M $13.41M
Total Long-Term Assets $3.647M $3.607M $3.614M
Total Assets $10.42M $12.16M $17.03M
YoY Change -38.83% -31.45% 3.2%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $5.550M $4.650M $7.590M
YoY Change -26.88% -33.29% 204.82%
Accrued Expenses $961.0K $1.636M
YoY Change -41.26% -29.86%
Deferred Revenue
YoY Change
Short-Term Debt $1.170M $2.770M $3.000M
YoY Change -61.0% -7.67%
Long-Term Debt Due $149.0K -$157.8K -$137.0K
YoY Change -208.76% 18.68% -72.6%
Total Short-Term Liabilities $8.876M $10.53M $13.04M
YoY Change -31.95% -19.41% 40.52%
LONG-TERM LIABILITIES
Long-Term Debt $575.0K $575.0K $723.0K
YoY Change -20.47% -21.54% -63.06%
Other Long-Term Liabilities $18.00K $2.000K $9.000K
YoY Change 100.0% -79.16% -82.9%
Total Long-Term Liabilities $593.0K $577.0K $732.0K
YoY Change -18.99% -22.28% -63.58%
TOTAL LIABILITIES
Total Short-Term Liabilities $8.876M $10.53M $13.04M
Total Long-Term Liabilities $593.0K $577.0K $732.0K
Total Liabilities $9.469M $11.11M $13.78M
YoY Change -31.26% -19.57% 21.99%
SHAREHOLDERS EQUITY
Retained Earnings -$65.20M -$62.39M
YoY Change 4.49% 4.69%
Common Stock $2.000K $2.000K $2.000K
YoY Change 0.0% 30.04% 32.54%
Preferred Stock
YoY Change
Treasury Stock (at cost) $1.512M $1.512M $1.512M
YoY Change 0.0% 0.02% 0.57%
Treasury Stock Shares 644.0 shares 895.0K shares 823.0K shares
Shareholders Equity $946.0K $1.052M $3.250M
YoY Change
Total Liabilities & Shareholders Equity $10.42M $12.16M $17.03M
YoY Change -38.83% -31.45% 3.2%

Cashflow Statement

Concept 2014 Q4 2014 Q3 2013 Q4
OPERATING ACTIVITIES
Net Income -$170.0K -$366.0K -$788.0K
YoY Change -78.43% -64.08% 357.63%
Depreciation, Depletion And Amortization $20.00K $71.00K $170.0K
YoY Change -88.24% -11.25% 142.86%
Cash From Operating Activities $2.240M $860.0K $2.840M
YoY Change -21.13% -131.39% 647.37%
INVESTING ACTIVITIES
Capital Expenditures -$150.0K -$90.00K -$120.0K
YoY Change 25.0% -43.75% 1100.0%
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00 $0.00
YoY Change -100.0%
Cash From Investing Activities -$150.0K -$90.00K -$120.0K
YoY Change 25.0% -83.02%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -1.630M -1.250M -20.00K
YoY Change 8050.0% -260.26% -85.71%
NET CHANGE
Cash From Operating Activities 2.240M 860.0K 2.840M
Cash From Investing Activities -150.0K -90.00K -120.0K
Cash From Financing Activities -1.630M -1.250M -20.00K
Net Change In Cash 460.0K -480.0K 2.700M
YoY Change -82.96% -80.72% 1025.0%
FREE CASH FLOW
Cash From Operating Activities $2.240M $860.0K $2.840M
Capital Expenditures -$150.0K -$90.00K -$120.0K
Free Cash Flow $2.390M $950.0K $2.960M
YoY Change -19.26% -136.82% 658.97%

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RepaymentsOfLinesOfCredit
229000 USD
us-gaap Repayments Of Lines Of Credit
RepaymentsOfLinesOfCredit
-3000000 USD
us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt"> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt"> <i><font style="FONT-SIZE: 10pt">Concentration of Credit Risk</font></i></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt"> <font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0in 0in 0pt"> <font style="FONT-SIZE: 10pt">We are currently economically dependent upon our relationship with a large US-based IT Original Equipment Manufacturer (OEM). If this relationship is unsuccessful or discontinues, our business and revenue may suffer. The loss of or a significant reduction in orders from this customer or the failure to provide adequate products or services to them could significantly reduce our revenue. We also periodically perform large construction projects which may comprise a significant portion of our revenues during the construction phase, and which may cause large fluctuations in our quarterly revenues.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt"> <font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0in 0in 0pt"> <font style="FONT-SIZE: 10pt"><font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> </font>The following customers accounted for a significant percentage of our revenues for the periods shown:</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt"> <font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt; TEXT-INDENT: 0in; WIDTH: 100%"> <table style="MARGIN: 0in 0in 0in 0.5in; WIDTH: 90%; BORDER-COLLAPSE: collapse; 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TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 700" width="1%"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="white-space:nowrap; BORDER-BOTTOM: #000000 1px solid; TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 700" width="11%" colspan="2"> <div style="CLEAR:both;CLEAR: both">2014</div> </td> <td style="TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 400" width="1%"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="white-space:nowrap; TEXT-ALIGN: center; FONT-STYLE: normal; FONT-FAMILY: times new roman; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; BORDER-TOP: #000000 1px solid; FONT-WEIGHT: 700" width="1%"> <div style="CLEAR:both;CLEAR: both">&#160;</div> </td> <td style="white-space:nowrap; 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BACKGROUND: #cceeff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="10%"> <div style="CLEAR:both;CLEAR: both">29</div> </td> <td style="TEXT-ALIGN: left; FONT-STYLE: normal; FONT-FAMILY: times new roman; BACKGROUND: #cceeff; COLOR: #000000; FONT-SIZE: 10pt; VERTICAL-ALIGN: bottom; FONT-WEIGHT: 400" width="1%"> <div style="CLEAR:both;CLEAR: both">%</div> </td> </tr> </table> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;CLEAR: both"> </div> </div> <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"></font> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt"> <font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0in 0in 0pt"> <font style="FONT-SIZE: 10pt">No other customers represented more than 10% of our revenues for any periods presented. Our US-based IT OEM customer represented <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 69</font>% and <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 27</font>% of our accounts receivable at September 30, 2014 and December 31, 2013, respectively. A US-based construction company represented <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">3</font>% and <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 41</font>% of our accounts receivable at September 30, 2014 and December 31, 2013, respectively. A US-based retailer company represented <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> 10</font>% and <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">8</font>% of our accounts receivable at September 30, 2014 and December 31, 2014, respectively. No other customer represented more than 10% of our accounts receivable at September 30, 2014 or at December 31, 2013.&#160;&#160;</font></div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
CY2014Q3 tssi Receivables Gross Current
ReceivablesGrossCurrent
5960000 USD
CY2013Q4 tssi Receivables Gross Current
ReceivablesGrossCurrent
8432000 USD
CY2014Q3 tssi Allowance For Doubtful Contract And Other Receivables
AllowanceForDoubtfulContractAndOtherReceivables
34000 USD
CY2013Q4 tssi Allowance For Doubtful Contract And Other Receivables
AllowanceForDoubtfulContractAndOtherReceivables
22000 USD
CY2014Q3 us-gaap Inventory Work In Process
InventoryWorkInProcess
36000 USD
CY2013Q4 us-gaap Inventory Work In Process
InventoryWorkInProcess
46000 USD
CY2014Q3 us-gaap Inventory Raw Materials And Supplies
InventoryRawMaterialsAndSupplies
127000 USD
CY2013Q4 us-gaap Inventory Raw Materials And Supplies
InventoryRawMaterialsAndSupplies
176000 USD
CY2014Q3 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
2000 USD
CY2013Q4 us-gaap Inventory Valuation Reserves
InventoryValuationReserves
5000 USD
CY2014Q3 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
35000 USD
us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
103000 USD
us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
84000 USD
CY2014Q3 us-gaap Line Of Credit Facility Maximum Borrowing Capacity
LineOfCreditFacilityMaximumBorrowingCapacity
6000000 USD
tssi Expenses Related To Line Of Credit
ExpensesRelatedToLineOfCredit
200000 USD
us-gaap Line Of Credit Facility Commitment Fee Amount
LineOfCreditFacilityCommitmentFeeAmount
30000 USD
CY2014Q3 us-gaap Long Term Debt
LongTermDebt
732843 USD
CY2013Q4 us-gaap Long Term Debt
LongTermDebt
859843 USD
CY2014Q3 us-gaap Long Term Debt Current
LongTermDebtCurrent
-157843 USD
CY2013Q4 us-gaap Long Term Debt Current
LongTermDebtCurrent
-137000 USD
CY2014Q3 us-gaap Long Term Debt Noncurrent
LongTermDebtNoncurrent
575000 USD
CY2013Q4 us-gaap Long Term Debt Noncurrent
LongTermDebtNoncurrent
722843 USD
CY2014Q3 us-gaap Debt Instrument Unamortized Discount
DebtInstrumentUnamortizedDiscount
42000 USD
CY2014Q3 us-gaap Debt Instrument Convertible Conversion Price1
DebtInstrumentConvertibleConversionPrice1
7.50
CY2014Q3 tssi Percentage Of Charge For Late Payment On Convertible Notes Payable
PercentageOfChargeForLatePaymentOnConvertibleNotesPayable
0.05 pure
CY2014Q3 us-gaap Amount Of Dilutive Securities Stock Options And Restrictive Stock Units
AmountOfDilutiveSecuritiesStockOptionsAndRestrictiveStockUnits
0 USD
CY2013Q3 us-gaap Amount Of Dilutive Securities Stock Options And Restrictive Stock Units
AmountOfDilutiveSecuritiesStockOptionsAndRestrictiveStockUnits
0 USD
us-gaap Amount Of Dilutive Securities Stock Options And Restrictive Stock Units
AmountOfDilutiveSecuritiesStockOptionsAndRestrictiveStockUnits
0 USD
us-gaap Amount Of Dilutive Securities Stock Options And Restrictive Stock Units
AmountOfDilutiveSecuritiesStockOptionsAndRestrictiveStockUnits
0 USD
CY2014Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
15075000 shares
CY2013Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
14411000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
14513000 shares
CY2014Q3 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
2307000 shares
CY2013Q3 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
2561000 shares
us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
2409000 shares
us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount
2561000 shares
CY2013Q3 us-gaap Lease And Rental Expense
LeaseAndRentalExpense
69000 USD
us-gaap Lease And Rental Expense
LeaseAndRentalExpense
208000 USD
us-gaap Debt Instrument Periodic Payment Interest
DebtInstrumentPeriodicPaymentInterest
24000 USD
us-gaap Debt Instrument Periodic Payment Principal
DebtInstrumentPeriodicPaymentPrincipal
175000 USD
CY2014Q3 us-gaap Long Term Debt Maturities Repayments Of Principal In Next Twelve Months
LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths
20000 USD
CY2014Q3 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Two
LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo
172843 USD
CY2014Q3 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Three
LongTermDebtMaturitiesRepaymentsOfPrincipalInYearThree
550000 USD
CY2014Q3 tssi Longterm Debt Maturities Repayments Of Principal Notes Payable Total
LongtermDebtMaturitiesRepaymentsOfPrincipalNotesPayableTotal
732843 USD
us-gaap Debt Instrument Payment Terms
DebtInstrumentPaymentTerms
the promissory note from July 1, 2015 to January 1, 2016. Under the amended payment schedule, the Company will make two quarterly principal payments of $25,000 on October 1, 2014 and January 1, 2015. Thereafter, the Company will make monthly principal payments of $25,000 to Mr. Gallagher for a seven month period beginning on February 1, 2015 and ending on July 1, 2015. The Company will also make an additional principal payment of $25,000 on or before October 1, 2015. The remaining outstanding balance is due on January 1, 2016.
CY2013Q3 us-gaap Amortization Of Intangible Assets
AmortizationOfIntangibleAssets
35000 USD

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