☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Oklahoma | 73-1351610 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Carrollton, Texas 75007 | ||
(Address of principal executive office) | ||
(918) 251-9121 | ||
(Registrant's telephone number, including area code) |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | Yes | ||||
Indicate by check mark whether the registrant has submitted electronically | Yes | ||||
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, | |||||
Large accelerated filer Non-accelerated filer | |||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | |||||
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). | Yes ☐ No ☒ | ||||
Page | ||||||||
September 30, 2022 and December 31, | ||||||||
Three and Nine Months Ended | ||||||||
Three and Nine Months Ended September 30, 2022 and 2021 | ||||||||
Controls and | ||||||||
Item | ||||||||
December 31, 2017 | September 30, 2017 | September 30, 2022 | December 31, 2021 | ||||||||||||||||
Assets | Assets | ||||||||||||||||||
Current assets: | Current assets: | ||||||||||||||||||
Cash and cash equivalents | $ | 414,891 | $ | 3,972,723 | Cash and cash equivalents | $ | 4,923 | $ | 1,837 | ||||||||||
Accounts receivable, net of allowance for doubtful accounts of $150,000 | 5,299,536 | 5,567,005 | |||||||||||||||||
Income tax receivable | 244,510 | 247,186 | |||||||||||||||||
Inventories, net of allowance for excess and obsolete | |||||||||||||||||||
inventory of $3,100,389 and $2,939,289, respectively | 22,406,750 | 22,333,820 | |||||||||||||||||
Prepaid expenses | 233,627 | 298,152 | |||||||||||||||||
Restricted cash | Restricted cash | 1,785 | 581 | ||||||||||||||||
Accounts receivable, net of allowances of $250, respectively | Accounts receivable, net of allowances of $250, respectively | 2,403 | 6,469 | ||||||||||||||||
Unbilled revenue | Unbilled revenue | 2,578 | 2,219 | ||||||||||||||||
Inventories, net of allowances of $3,831 and $3,567, respectively | Inventories, net of allowances of $3,831 and $3,567, respectively | 8,665 | 5,653 | ||||||||||||||||
Prepaid expenses and other assets | Prepaid expenses and other assets | 1,648 | 1,371 | ||||||||||||||||
Total current assets | 28,599,314 | 32,418,886 | Total current assets | 22,002 | 18,130 | ||||||||||||||
Property and equipment, at cost: | Property and equipment, at cost: | ||||||||||||||||||
Land and buildings | 7,211,190 | 7,218,678 | |||||||||||||||||
Machinery and equipment | 3,961,764 | 3,995,668 | Machinery and equipment | 5,131 | 5,354 | ||||||||||||||
Leasehold improvements | 200,617 | 202,017 | Leasehold improvements | 899 | 821 | ||||||||||||||
Total property and equipment, at cost | 11,373,571 | 11,416,363 | Total property and equipment, at cost | 6,030 | 6,175 | ||||||||||||||
Less: Accumulated depreciation | (5,467,393 | ) | (5,395,791 | ) | Less: Accumulated depreciation | (2,828) | (2,558) | ||||||||||||
Net property and equipment | 5,906,178 | 6,020,572 | Net property and equipment | 3,202 | 3,617 | ||||||||||||||
Right-of-use lease assets | Right-of-use lease assets | 1,776 | 2,466 | ||||||||||||||||
Investment in and loans to equity method investee | 140,045 | 98,704 | |||||||||||||||||
Intangibles, net of accumulated amortization | 8,234,176 | 8,547,487 | Intangibles, net of accumulated amortization | 788 | 1,027 | ||||||||||||||
Goodwill | 5,970,244 | 5,970,244 | Goodwill | 58 | 58 | ||||||||||||||
Deferred income taxes | 1,308,000 | 1,653,000 | |||||||||||||||||
Other assets | 135,462 | 138,712 | Other assets | 124 | 128 | ||||||||||||||
Total assets | $ | 50,293,419 | $ | 54,847,605 | Total assets | $ | 27,950 | $ | 25,426 |
Liabilities and Shareholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | 9,025 | $ | 6,812 | |||||||
Accrued expenses | 1,771 | 1,184 | |||||||||
Deferred revenue | 287 | 207 | |||||||||
Bank line of credit | — | 2,050 | |||||||||
Right-of-use lease obligations, current | 1,235 | 1,177 | |||||||||
Finance lease obligations, current | 573 | 652 | |||||||||
Other current liabilities | 567 | 706 | |||||||||
Total current liabilities | 13,458 | 12,788 | |||||||||
Right-of-use lease obligations, long-term | 905 | 1,839 | |||||||||
Finance lease obligations, long-term | 1,117 | 1,484 | |||||||||
Total liabilities | 15,480 | 16,111 | |||||||||
Shareholders’ equity: | |||||||||||
Common stock, $0.01 par value; 30,000,000 shares authorized; 14,043,642 and 13,041,127 shares issued and outstanding, respectively | 140 | 130 | |||||||||
Paid in capital | 2,516 | 335 | |||||||||
Retained earnings | 9,814 | 8,850 | |||||||||
Total shareholders’ equity | 12,470 | 9,315 | |||||||||
Total liabilities and shareholders’ equity | $ | 27,950 | $ | 25,426 |
December 31, 2017 | September 30, 2017 | |||||||
Liabilities and Shareholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 3,478,894 | $ | 3,392,725 | ||||
Accrued expenses | 1,163,451 | 1,406,722 | ||||||
Notes payable – current portion | 1,519,492 | 4,189,605 | ||||||
Other current liabilities | 643,746 | 664,325 | ||||||
Total current liabilities | 6,805,583 | 9,653,377 | ||||||
Notes payable, less current portion | 1,708,622 | 2,094,246 | ||||||
Other liabilities | 775,465 | 1,401,799 | ||||||
Total liabilities | 9,289,670 | 13,149,422 | ||||||
Shareholders’ equity: | ||||||||
Common stock, $.01 par value; 30,000,000 shares authorized; 10,726,653 shares issued; and 10,225,995 shares outstanding | 107,267 | 107,267 | ||||||
Paid in capital | (4,734,138 | ) | (4,746,466 | ) | ||||
Retained earnings | 46,630,634 | 47,337,396 | ||||||
Total shareholders’ equity before treasury stock | 42,003,763 | 42,698,197 | ||||||
Less: Treasury stock, 500,658 shares, at cost | (1,000,014 | ) | (1,000,014 | ) | ||||
Total shareholders’ equity | 41,003,749 | 41,698,183 | ||||||
Total liabilities and shareholders’ equity | $ | 50,293,419 | $ | 54,847,605 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||
Sales | $ | 25,926 | $ | 19,727 | $ | 77,474 | $ | 49,411 | |||||||||||||||||||||||||||
Cost of sales | 17,383 | 14,679 | 55,026 | 36,913 | |||||||||||||||||||||||||||||||
Gross profit | 8,543 | 5,048 | 22,448 | 12,498 | |||||||||||||||||||||||||||||||
Operating expenses | 2,303 | 2,607 | 7,600 | 7,282 | |||||||||||||||||||||||||||||||
Selling, general and administrative expenses | 4,464 | 4,357 | 12,459 | 11,675 | |||||||||||||||||||||||||||||||
Depreciation and amortization expense | 295 | 329 | 925 | 947 | |||||||||||||||||||||||||||||||
Gain on disposal of assets | 311 | 10 | 309 | 23 | |||||||||||||||||||||||||||||||
Income (loss) from operations | 1,792 | (2,235) | 1,773 | (7,383) | |||||||||||||||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||||||||||||||
Gain on extinguishment of debt | — | 2,955 | — | 2,955 | |||||||||||||||||||||||||||||||
Interest income | — | 20 | — | 87 | |||||||||||||||||||||||||||||||
Other expense, net | (273) | (49) | (675) | (91) | |||||||||||||||||||||||||||||||
Interest expense | (36) | (82) | (134) | (170) | |||||||||||||||||||||||||||||||
Other income (expense), net | (309) | 2,844 | (809) | 2,781 | |||||||||||||||||||||||||||||||
Income (loss) before income taxes | 1,483 | 609 | 964 | (4,602) | |||||||||||||||||||||||||||||||
Benefit for income taxes | — | (30) | — | (53) | |||||||||||||||||||||||||||||||
Net income (loss) | $ | 1,483 | $ | 639 | $ | 964 | $ | (4,549) | |||||||||||||||||||||||||||
Income (loss) per share: | |||||||||||||||||||||||||||||||||||
Basic and diluted | $ | 0.11 | $ | 0.05 | $ | 0.07 | $ | (0.36) | |||||||||||||||||||||||||||
Shares used in per share calculation: | |||||||||||||||||||||||||||||||||||
Basic and diluted | 13,638,162 | 12,543,727 | 13,302,410 | 12,485,719 | |||||||||||||||||||||||||||||||
Three Months Ended December 31, | ||||||||
2017 | 2016 | |||||||
Sales | $ | 12,284,765 | $ | 12,095,826 | ||||
Cost of sales | 8,903,610 | 8,072,197 | ||||||
Gross profit | 3,381,155 | 4,023,629 | ||||||
Operating, selling, general and administrative expenses | 3,646,823 | 3,596,824 | ||||||
Income (loss) from operations | (265,668 | ) | 426,805 | |||||
Interest expense | 96,094 | 96,644 | ||||||
Income (loss) before income taxes | (361,762 | ) | 330,161 | |||||
Provision for income taxes | 345,000 | 113,000 | ||||||
Net income (loss) | $ | (706,762 | ) | $ | 217,161 | |||
Earnings (loss) per share: | ||||||||
Basic | $ | (0.07 | ) | $ | 0.02 | |||
Diluted | $ | (0.07 | ) | $ | 0.02 | |||
Shares used in per share calculation: | ||||||||
Basic | 10,225,995 | 10,134,235 | ||||||
Diluted | 10,225,995 | 10,134,559 |
Common Stock | Paid-in Capital | Retained Earnings | |||||||||||||||||||||||||||||||||
Shares | Amount | Total | |||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | 13,041,127 | $ | 130 | $ | 335 | $ | 8,850 | $ | 9,315 | ||||||||||||||||||||||||||
Net loss | — | — | — | (1,394) | (1,394) | ||||||||||||||||||||||||||||||
Common stock issuance | 143,985 | 2 | 166 | — | 168 | ||||||||||||||||||||||||||||||
Restricted stock issuance | 4,000 | — | — | — | — | ||||||||||||||||||||||||||||||
Amortization of stock-based compensation | — | — | 247 | — | 247 | ||||||||||||||||||||||||||||||
Balance, March 31, 2022 | 13,189,112 | $ | 132 | $ | 748 | $ | 7,456 | $ | 8,336 | ||||||||||||||||||||||||||
Net income | — | — | — | 875 | 875 | ||||||||||||||||||||||||||||||
Common stock issuance | 30,745 | — | 38 | — | 38 | ||||||||||||||||||||||||||||||
Restricted stock forfeitures | (51,666) | (1) | 1 | — | — | ||||||||||||||||||||||||||||||
Amortization of stock-based compensation | — | — | 103 | — | 103 | ||||||||||||||||||||||||||||||
Balance, June 30, 2022 | 13,168,191 | $ | 132 | $ | 890 | $ | 8,331 | $ | 9,353 | ||||||||||||||||||||||||||
Net income | 1,483 | 1,483 | |||||||||||||||||||||||||||||||||
Common stock issuance | 717,451 | 7 | 1,414 | — | 1,421 | ||||||||||||||||||||||||||||||
Stock option exercise | 50,000 | 1 | 63 | — | 64 | ||||||||||||||||||||||||||||||
Restricted stock issuance, net of forfeitures | 108,000 | 1 | (1) | — | — | ||||||||||||||||||||||||||||||
Amortization of stock-based compensation | — | — | 150 | — | 150 | ||||||||||||||||||||||||||||||
Balance, September 30, 2022 | 14,043,642 | $ | 140 | $ | 2,516 | $ | 9,814 | $ | 12,470 | ||||||||||||||||||||||||||
Common Stock | Paid-in Capital | Retained Earnings | |||||||||||||||||||||||||||||||||
Shares | Amount | Total | |||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | 12,366,593 | $ | 124 | $ | (1,379) | $ | 15,429 | $ | 14,174 | ||||||||||||||||||||||||||
Net loss | — | — | — | (3,064) | (3,064) | ||||||||||||||||||||||||||||||
Common stock issuance | 7,779 | — | 21 | — | 21 | ||||||||||||||||||||||||||||||
Restricted stock issuance, net of forfeitures | (10,000) | (1) | — | — | (1) | ||||||||||||||||||||||||||||||
Stock option exercise | 49,000 | — | 89 | — | 89 | ||||||||||||||||||||||||||||||
Amortization of stock-based compensation | — | — | 246 | — | 246 | ||||||||||||||||||||||||||||||
Balance, March 31, 2021 | 12,413,372 | $ | 124 | $ | (1,023) | $ | 12,364 | $ | 11,466 | ||||||||||||||||||||||||||
Net loss | — | — | — | (2,124) | (2,124) | ||||||||||||||||||||||||||||||
Restricted stock issuance | 98,000 | 1 | (1) | — | — | ||||||||||||||||||||||||||||||
Amortization of stock-based compensation | — | — | 279 | — | 279 | ||||||||||||||||||||||||||||||
Balance, June 30, 2021 | 12,511,372 | $ | 125 | $ | (745) | $ | 10,240 | $ | 9,620 | ||||||||||||||||||||||||||
Net income | — | — | — | 639 | 639 | ||||||||||||||||||||||||||||||
Stock option exercise | — | 1 | (1) | — | — | ||||||||||||||||||||||||||||||
Restricted stock issuance | 98,857 | 1 | (1) | — | — | ||||||||||||||||||||||||||||||
Amortization of stock-based compensation | — | — | 169 | — | 169 | ||||||||||||||||||||||||||||||
Balance, September 30, 2021 | 12,610,229 | $ | 126 | $ | (578) | $ | 10,879 | $ | 10,427 |
Nine Months Ended September 30, | |||||||||||
2022 | 2021 | ||||||||||
Operating Activities: | |||||||||||
Net income (loss) | $ | 964 | $ | (4,549) | |||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
Depreciation | 686 | 709 | |||||||||
Amortization | 239 | 238 | |||||||||
Non cash amortization of right-of-use asset and liability | (187) | (236) | |||||||||
Provision for excess and obsolete inventories | 265 | 422 | |||||||||
Charge for lower of cost or net realizable value inventories | — | 105 | |||||||||
Stock based compensation expense | 500 | 694 | |||||||||
Gain from disposal of property and equipment | (212) | (13) | |||||||||
Gain on extinguishment of debt | — | (2,955) | |||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable | 4,066 | (2,203) | |||||||||
Unbilled revenue | (359) | (1,337) | |||||||||
Income tax receivable/payable | — | 1,249 | |||||||||
Inventories | (3,276) | (249) | |||||||||
Prepaid expenses and other assets | (273) | (384) | |||||||||
Accounts payable | 2,213 | 3,516 | |||||||||
Accrued expenses and other liabilities | 448 | 1,148 | |||||||||
Deferred revenue | 80 | 42 | |||||||||
Net cash provided by (used in) operating activities | 5,154 | (3,803) | |||||||||
Investing Activities: | |||||||||||
Proceeds from promissory note receivable | — | 2,270 | |||||||||
Purchases of property and equipment | (209) | (226) | |||||||||
Disposals of property and equipment | 423 | 18 | |||||||||
Net cash provided by investing activities | 214 | 2,062 | |||||||||
Financing Activities: | |||||||||||
Payments on bank line of credit | (2,050) | (750) | |||||||||
Payments on financing lease obligations | (719) | (398) | |||||||||
Payments on notes payable | — | 55 | |||||||||
Proceeds from sale of common stock | 1,627 | 21 | |||||||||
Proceeds from stock options exercised | 64 | 89 | |||||||||
Net cash used in financing activities | (1,078) | (983) | |||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | 4,290 | (2,724) | |||||||||
Cash, cash equivalents and restricted cash at beginning of period | 2,418 | 5,666 | |||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 6,708 | $ | 2,942 |
Three Months Ended December 31, | ||||||||
2017 | 2016 | |||||||
Operating Activities | ||||||||
Net income (loss) | $ | (706,762 | ) | $ | 217,161 | |||
Adjustments to reconcile net income (loss) to net cash | ||||||||
provided by (used in) operating activities: | ||||||||
Depreciation | 98,143 | 103,787 | ||||||
Amortization | 313,311 | 311,986 | ||||||
Provision for excess and obsolete inventories | 161,100 | 166,620 | ||||||
Charge for lower of cost or net realizable value for inventories | 11,528 | 33,447 | ||||||
Gain on disposal of property and equipment | (6,862 | ) | – | |||||
Deferred income tax provision (benefit) | 345,000 | (4,000 | ) | |||||
Share based compensation expense | 38,578 | 41,884 | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | 267,469 | 195,077 | ||||||
Income tax receivable\payable | 2,676 | 119,346 | ||||||
Inventories | (245,558 | ) | 650,191 | |||||
Prepaid expenses | 38,275 | 29,060 | ||||||
Other assets | 3,250 | (424 | ) | |||||
Accounts payable | 86,169 | 179,651 | ||||||
Accrued expenses | (243,271 | ) | (278,607 | ) | ||||
Other liabilities | 20,087 | 26,092 | ||||||
Net cash provided by operating activities | 183,133 | 1,791,271 | ||||||
Investing Activities | ||||||||
Acquisition of net operating assets | – | (6,643,540 | ) | |||||
Guaranteed payments for acquisition of business | (667,000 | ) | – | |||||
Loan repayment from (investment in and loans to) equity method investee | (41,341 | ) | 970,500 | |||||
Purchases of property and equipment | – | (69,833 | ) | |||||
Disposals of property and equipment | 23,113 | – | ||||||
Net cash used in investing activities | (685,228 | ) | (5,742,873 | ) | ||||
Financing Activities | ||||||||
Proceeds from notes payable | – | 4,000,000 | ||||||
Debt issuance costs | – | (15,394 | ) | |||||
Payments on notes payable | (3,055,737 | ) | (437,793 | ) | ||||
Net cash provided by (used in) financing activities | (3,055,737 | ) | 3,546,813 | |||||
Net decrease in cash and cash equivalents | (3,557,832 | ) | (404,789 | ) | ||||
Cash and cash equivalents at beginning of period | 3,972,723 | 4,508,126 | ||||||
Cash and cash equivalents at end of period | $ | 414,891 | $ | 4,103,337 | ||||
Supplemental cash flow information: | ||||||||
Cash paid for interest | $ | 118,292 | $ | 63,161 | ||||
Supplemental noncash investing activities: | ||||||||
Deferred guaranteed payments for acquisition of business | $ | – | $ | (1,897,372 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Wireless services sales | $ | 7,898 | $ | 6,992 | $ | 22,907 | $ | 15,462 | |||||||||||||||
Telco equipment | 18,028 | 12,272 | 54,363 | 33,287 | |||||||||||||||||||
Telco repair | — | 13 | 12 | 21 | |||||||||||||||||||
Telco recycle | — | 450 | 192 | 641 | |||||||||||||||||||
Total sales | $ | 25,926 | $ | 19,727 | $ | 77,474 | $ | 49,411 |
September 30, 2022 | December 31, 2021 | ||||||||||
New equipment | $ | 2,192 | $ | 1,396 | |||||||
Refurbished and used equipment | 10,304 | 7,824 | |||||||||
Allowance for excess and obsolete inventory | (3,831) | (3,567) | |||||||||
Total inventories, net | $ | 8,665 | $ | 5,653 |
December 31, 2017 | September 30, 2017 | |||||||
New: | ||||||||
Cable TV | $ | 13,667,532 | $ | 14,014,188 | ||||
Telco | 1,225,888 | 990,218 | ||||||
Refurbished and used: | ||||||||
Cable TV | 3,217,494 | 3,197,426 | ||||||
Telco | 7,396,225 | 7,071,277 | ||||||
Allowance for excess and obsolete inventory: | ||||||||
Cable TV | (2,450,000 | ) | (2,300,000 | ) | ||||
Telco | (650,389 | ) | (639,289 | ) | ||||
$ | 22,406,750 | $ | 22,333,820 |
September 30, 2022 | |||||||||||||||||||||||
Intangible assets: | Gross | Accumulated Amortization | Net | ||||||||||||||||||||
Customer relationships – 10 years | $ | 3,155 | $ | (2,886) | $ | 269 | |||||||||||||||||
Trade name – 10 years | 2,122 | (1,603) | 519 | ||||||||||||||||||||
Total intangible assets | $ | 5,277 | $ | (4,489) | $ | 788 |
December 31, 2021 | |||||||||||||||||||||||
Intangible assets: | Gross | Accumulated Amortization | Net | ||||||||||||||||||||
Customer relationships – 10 years | $ | 3,155 | $ | (2,807) | $ | 348 | |||||||||||||||||
Trade name – 10 years | 2,122 | (1,443) | 679 | ||||||||||||||||||||
Total intangible assets | $ | 5,277 | $ | (4,250) | $ | 1,027 |
December 31, 2017 | ||||||||||||
Gross | Accumulated Amortization | Net | ||||||||||
Intangible assets: | ||||||||||||
Customer relationships – 10 years | $ | 8,152,000 | $ | (2,102,491 | ) | $ | 6,049,509 | |||||
Technology – 7 years | 1,303,000 | (713,545 | ) | 589,455 | ||||||||
Trade name – 10 years | 2,119,000 | (595,455 | ) | 1,523,545 | ||||||||
Non-compete agreements – 3 years | 374,000 | (302,333 | ) | 71,667 | ||||||||
Total intangible assets | $ | 11,948,000 | $ | (3,713,824 | ) | $ | 8,234,176 |
September 30, 2017 | ||||||||||||
Gross | Accumulated Amortization | Net | ||||||||||
Intangible assets: | ||||||||||||
Customer relationships – 10 years | $ | 8,152,000 | $ | (1,898,691 | ) | $ | 6,253,309 | |||||
Technology – 7 years | 1,303,000 | (667,009 | ) | 635,991 | ||||||||
Trade name – 10 years | 2,119,000 | (542,480 | ) | 1,576,520 | ||||||||
Non-compete agreements – 3 years | 374,000 | (292,333 | ) | 81,667 | ||||||||
Total intangible assets | $ | 11,948,000 | $ | (3,400,513 | ) | $ | 8,547,487 | |||||
Three Months Ended December 31, | ||||||||
2017 | 2016 | |||||||
Net income (loss) attributable to common shareholders | $ | (706,762 | ) | $ | 217,161 | |||
Basic weighted average shares | 10,225,995 | 10,134,235 | ||||||
Effect of dilutive securities: | ||||||||
Stock options | – | 324 | ||||||
Diluted weighted average shares | 10,225,995 | 10,134,559 | ||||||
Earnings (loss) per common share: | ||||||||
Basic | $ | (0.07 | ) | $ | 0.02 | |||
Diluted | $ | (0.07 | ) | $ | 0.02 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net income (loss) attributable to common shareholders | $ | 1,483 | $ | 639 | $ | 964 | $ | (4,549) | |||||||||||||||
Basic and diluted weighted average shares | 13,638,162 | 12,543,727 | 13,302,410 | 12,485,719 | |||||||||||||||||||
Basic and diluted income (loss) per common share | $ | 0.11 | $ | 0.05 | $ | 0.07 | $ | (0.36) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Stock options excluded | — | 50,000 | — | 50,000 | |||||||||||||||||||
Weighted average exercise price of stock options | $ | 1.28 | $ | 1.28 | |||||||||||||||||||
Average market price of common stock | $ | 2.45 | $ | 2.58 |
Three Months Ended December 31, | ||||||||
2017 | 2016 | |||||||
Stock options excluded | 700,000 | 520,000 | ||||||
Weighted average exercise price of | ||||||||
stock options | $ | 2.54 | $ | 2.83 | ||||
Average market price of common stock | $ | 1.46 | $ | 1.76 |
(in thousands) | Nine Months Ended September 30, | ||||||||||
2022 | 2021 | ||||||||||
Supplemental cash flow information: | |||||||||||
Cash paid for interest | $ | 134 | $ | 214 | |||||||
Supplemental noncash investing and financing activities: | |||||||||||
Assets acquired under financing leases | $ | 273 | $ | 1,589 | |||||||
Shares | Fair Value | ||||||||||
Non-vested at June 30, 2022 | 531,787 | $ | 1,228 | ||||||||
Granted | 108,000 | 146 | |||||||||
Vested | (107,190) | (269) | |||||||||
Forfeited | — | — | |||||||||
Non-vested at September 30, 2022 | 532,597 | $ | 1,105 |
Shares | Wtd. Avg. Ex. Price | |||||||
Outstanding at September 30, 2017 | 700,000 | $ | 2.54 | |||||
Granted | – | – | ||||||
Exercised | – | – | ||||||
Expired | – | – | ||||||
Forfeited | – | – | ||||||
Outstanding at December 31, 2017 | 700,000 | $ | 2.54 | |||||
Exercisable at December 31, 2017 | 526,667 | $ | 2.78 |
Three Months Ended | ||||
December 31, 2017 | ||||
Fiscal year 2016 grant | $ | 1,789 | ||
Fiscal year 2017 grant | $ | 10,539 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Sales | |||||||||||||||||||||||
Wireless | $ | 7,898 | $ | 6,992 | $ | 22,908 | $ | 15,462 | |||||||||||||||
Telco | 18,028 | 12,735 | 54,566 | 33,949 | |||||||||||||||||||
Total sales | $ | 25,926 | $ | 19,727 | $ | 77,474 | $ | 49,411 | |||||||||||||||
Gross profit | |||||||||||||||||||||||
Wireless | $ | 2,839 | $ | 1,908 | $ | 6,350 | $ | 4,668 | |||||||||||||||
Telco | 5,704 | 3,140 | 16,098 | 7,830 | |||||||||||||||||||
Total gross profit (loss) | $ | 8,543 | $ | 5,048 | $ | 22,448 | $ | 12,498 | |||||||||||||||
Income (loss) from operations | |||||||||||||||||||||||
Wireless | $ | (202) | $ | (2,105) | $ | (3,859) | $ | (5,759) | |||||||||||||||
Telco | 1,994 | (130) | 5,632 | (1,624) | |||||||||||||||||||
Total income (loss) from operations | $ | 1,792 | $ | (2,235) | $ | 1,773 | $ | (7,383) |
(in thousands) | September 30, 2022 | December 31, 2021 | |||||||||
Segment assets | |||||||||||
Wireless | $ | 7,655 | $ | 7,640 | |||||||
Telco | 14,340 | 14,545 | |||||||||
Non-allocated | 5,955 | 3,241 | |||||||||
Total assets | $ | 27,950 | $ | 25,426 |
Three Months Ended | ||||||||
December 31, 2017 | December 31, 2016 | |||||||
Sales | ||||||||
Cable TV | $ | 5,826,405 | $ | 6,574,824 | ||||
Telco | 6,458,540 | 5,539,977 | ||||||
Intersegment | (180 | ) | (18,975 | ) | ||||
Total sales | $ | 12,284,765 | $ | 12,095,826 | ||||
Gross profit | ||||||||
Cable TV | $ | 1,201,127 | $ | 2,400,342 | ||||
Telco | 2,180,028 | 1,623,287 | ||||||
Total gross profit | $ | 3,381,155 | $ | 4,023,629 | ||||
Operating income (loss) | ||||||||
Cable TV | $ | (188,500 | ) | $ | 908,982 | |||
Telco | (77,168 | ) | (482,177 | ) | ||||
Total operating income (loss) | $ | (265,668 | ) | $ | 426,805 | |||
December 31, 2017 | September 30, 2017 | |||||||
Segment assets | ||||||||
Cable TV | $ | 23,806,802 | $ | 24,116,395 | ||||
Telco | 23,635,818 | 24,135,091 | ||||||
Non-allocated | 2,850,799 | 6,596,119 | ||||||
Total assets | $ | 50,293,419 | $ | 54,847,605 |
Three Months Ended December 31, 2017 | Three Months Ended December 31, 2016 | |||||||||||||||||||||||
Cable TV | Telco | Total | Cable TV | Telco | Total | |||||||||||||||||||
Income (loss) from operations | $ | (188,500 | ) | $ | (77,168 | ) | $ | (265,668 | ) | $ | 908,982 | $ | (482,177 | ) | $ | 426,805 | ||||||||
Depreciation | 66,948 | 31,195 | 98,143 | 73,245 | 30,542 | 103,787 | ||||||||||||||||||
Amortization | − | 313,311 | 313,311 | − | 311,986 | 311,986 | ||||||||||||||||||
Adjusted EBITDA (a) | $ | (121,552 | ) | $ | 267,338 | $ | 145,786 | $ | 982,227 | $ | (139,649 | ) | $ | 842,578 |
Three Months Ended September 30, 2022 | Three Months Ended September 30, 2021 | ||||||||||||||||||||||||||||||||||
Wireless | Telco | Total | Wireless | Telco | Total | ||||||||||||||||||||||||||||||
Income (loss) from operations | $ | (202) | $ | 1,994 | $ | 1,792 | $ | (2,105) | $ | (130) | $ | (2,235) | |||||||||||||||||||||||
Depreciation and amortization expense | 173 | 121 | 294 | 202 | 127 | 329 | |||||||||||||||||||||||||||||
Stock compensation expense | 78 | 72 | 150 | 132 | 36 | 168 | |||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 49 | $ | 2,187 | $ | 2,236 | $ | (1,771) | $ | 33 | $ | (1,738) | |||||||||||||||||||||||
Nine Months Ended September 30, 2022 | Nine Months Ended September 30, 2021 | ||||||||||||||||||||||||||||||||||
Wireless | Telco | Total | Wireless | Telco | Total | ||||||||||||||||||||||||||||||
Income (loss) from operations | $ | (3,859) | $ | 5,632 | $ | 1,773 | $ | (5,759) | $ | (1,624) | $ | (7,383) | |||||||||||||||||||||||
Depreciation and amortization expense | 561 | 364 | 925 | 563 | 384 | 947 | |||||||||||||||||||||||||||||
Stock compensation expense | 234 | 266 | 500 | 375 | 318 | 693 | |||||||||||||||||||||||||||||
Adjusted EBITDA | $ | (3,064) | $ | 6,262 | $ | 3,198 | $ | (4,821) | $ | (922) | $ | (5,743) |
Item 2. Unregistered Sales of Securities and Use of Proceeds. During the nine months ended September 30, 2022, the Company sold 892,181 shares of common stock under its registration statement on Form S-3 effective as of April 1, 2020 (333-236859). Gross proceeds from such sales during the nine months were $1.7 million and net proceeds were $1.6 million after the payment of $61 thousand in commissions to Northland Securities, Inc., the underwriter of the offering. Total gross proceeds to the Company from sales under such registration statement since its effective date are $5.5 million and total net proceeds to the Company are $5.3 million after the payment of $0.2 million in commissions to Northland. All sales have been made pursuant to the Prospectus Supplement filed with the Commission on April 24, 2020, under which the Company may sell up to $13.9 million in common stock. All net proceeds to the Company from such sales have been used in accordance with the “Use of Proceeds” section of such Prospectus Supplement. Item 6. Exhibits.
19 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
20 |