ADDvantage Technologies Group, Inc. (NASDAQ: AEY) (“ADDvantage
Technologies” or the “Company”) today reported its financial
results for the three- and 12-month periods ended September 30,
2019.
Fiscal 2019 Full-Year Financial and
Business Highlights
- Sales of $55.1 million, up 101% (excluding Cable Segment
results in 2018)
- Results include $1.8 million in inventory-related and
acquisition integration charges
- Excluding these charges, the Company achieved its second
consecutive quarter of positive Adjusted EBITDA
- Loss from continuing operations narrowed $1.8 million to $4.0
million
- Exceptional growth in revenue and EBITDA of Nave
Communications
- Completed the move into a new, larger and more efficient
facility for Triton Datacom
- Acquired and integrated Fulton Technologies, enabling entry
into the wireless communications services business, which is poised
for significant growth with the advent of 5G technology
- Completed divestiture of Cable TV business and related real
estate assets for $14.2 million
- Appointed John Shelnutt to Board of Directors as an independent
director
“The second half of our fiscal year demonstrated
the progress we have made in positioning all the segments of our
business for sustainable growth and positive EBITDA contribution,”
said Joe Hart, President and CEO. “As we move into the historically
slower portion of our fiscal year impacted by winter weather,
customer budget cycles and the holiday season, we are focused on
streamlining our processes and developing a strong backlog of work
for the calendar year. Accordingly, we expect continued
year-over-year improvement throughout fiscal 2020.”
“Our Wireless segment achieved positive EBITDA
contribution, excluding corporate expenses, more rapidly than
expected,” continued Mr. Hart. “In just our first nine months of
operating this segment, Fulton was able to achieve revenue of $22.9
million as we continue to integrate and ramp up the operation,
demonstrating Fulton’s growth potential. As part of the
acquisition, we were able to hire and retain the majority of
Fulton’s existing employee base, and we continue to successfully
recruit strong industry talent throughout the business to help us
implement operational improvements with a focus on improving our
quality and project margins. We are seeing increased opportunities
in the industry as wireless carriers prepare for the roll out of 5G
and the required densification of their networks. In addition,
ongoing consolidation in the wireless industry is expected to
create incremental opportunities as networks are rationalized and a
new carrier potentially expands their network to gain market
share.”
“Simultaneously, our Telecommunications segment
is operating at a more efficient level, also contributing positive
EBITDA before the impact of the inventory charges and the
allocation of corporate overhead,” added Mr. Hart. “We continue to
see efficiencies from the operational restructuring put in place
earlier this fiscal year, which has enabled us to focus our core
team on sales, procurement and recycling opportunities. We are also
ramping up our repair activities to take advantage of our new
capabilities as we further expand our business lines. We have
recently added new employees to our Nave and Triton Datacom teams
with strong experience in online marketing and sales across both
enterprises. The new facility for our Triton Datacom business has
enabled us to significantly streamline and improve our processes
including inventory management, shipping and receiving and the
refurbishment operations. The added space will allow us to develop
the internal systems necessary to expand our refurbishment
capabilities and new equipment sales by adding additional product
lines and manufacturers. This transition bolsters our confidence
that Triton is poised to expand, capture additional market share
and develop new customers.”
Financial Results for the Three Months
ended September 30, 2019
Sales increased 182% to $17.9 million for the
three months ended September 30, 2019 compared with $6.3 million
for the three months ended September 30, 2018. The increase in
sales was driven by an increase in revenue in both the Wireless and
Telco segments.
Revenues for the Wireless segment were $10.0
million for the three months ended September 30, 2019, as a result
of the acquisition of Fulton Technologies, which closed on January
4, 2019. The Company did not report any revenues for the Wireless
segment for the three months ended September 30, 2018.
Sales for the Telco segment increased $1.6
million, or 25%, to $7.9 million for the three months ended
September 30, 2019 from $6.3 million for the same period last year.
The increase in sales resulted from an increase in equipment sales
of $0.6 million and an increase in recycling revenue of $1.0
million. The increase in Telco equipment sales was due to increased
sales at Nave Communications of $0.2 million and Triton Datacom of
$0.4 million. The increase in recycling revenue was due primarily
to increased volume of recycling shipments at Nave
Communications.
Gross profit increased $0.3 million, or 24%, to
$1.8 million compared with $1.4 million for the prior year three
months period due to an increase in the Wireless segment of $1.0
million, partially offset by a decrease in the Telco segment of
$0.6 million. The decrease in the Telco segment gross profit was
impacted by an increase in obsolescence expense of $0.5 million and
an increase in lower of cost or net realizable value expense of
$0.6 million.
Operating, selling, general and administrative
expenses increased 33% to $3.4 million compared with $2.6 million
for the three months ended September 30, 2018. The increase in
expenses was due to an increase in the Wireless segment of $1.2
million, partially offset by a decrease in the Telco segment $0.4
million.
Other income of $0.1 million for the three
months ended September 30, 2019 compares to other expense of $0.1
million for the year ago period. The 2019 period includes interest
income of $0.1 million related to the promissory note resulting
from the sale of the Cable TV business and payments received under
a loan to the former YKTG Solutions partners of $0.1 million, which
was partially offset by other expense of $0.1 million related to
factoring of the Company’s accounts receivable in the Wireless
segment and interest expense. Other expense in the three-month
period ended September 30, 2018 consisted solely of interest
expense.
The Company recorded a benefit for income taxes
of zero for the three months ended September 30, 2019, compared
with a provision of $1.7 million for the three months ended
September 30, 2018. The tax provision in 2018 was due primarily to
the establishment of a valuation allowance.
Loss from continuing operations for the three
months ended September 30, 2019, was $1.5 million, or $0.15 per
diluted share, compared with a loss from continuing operations of
$3.8 million, or $0.37 per diluted share, for the same period of
2018.
Adjusted EBITDA for the three months ended
September 30, 2019 was a loss of $1.2 million compared with a loss
of $0.7 million for the same period ended September 30, 2018.
The Telco segment includes an inventory obsolescence charge
of $0.6 million and $0.1 million for the three months ended
September 30, 2019 and 2018, respectively. In addition, the
Telco segment includes a lower of cost or net realizable value
charge of $0.7 million and $26 thousand for the three months ended
September 30, 2019 and 2018, respectively. For the three
months ended September 30, 2018, the Company recorded a $0.9
million restructuring charge, which was excluded from the Adjusted
EBITDA calculation.
Results for the 12 months ended
September 30, 2019
Sales increased 101% to $55.1 million for the 12
months ended September 30, 2019 compared with $27.5 million for the
12 months ended September 30, 2018. The increase in sales was
driven by an increase in sales in the Wireless segment of $22.9
million and an increase in sales in the Telco segment of $4.7
million.
Revenues for the Wireless segment were $22.9
million for the 12 months ended September 30, 2019, as a result of
the acquisition of Fulton Technologies. The Company did not report
any revenues for the Wireless segment for fiscal year 2018.
Sales for the Telco segment increased $4.7
million, or 17%, to $32.2 million for the 12 months ended September
30, 2019 from $27.5 million for the same period last year. The
increase in sales resulted from an increase in equipment sales of
$3.8 million and an increase in recycling revenue of $0.9 million.
The increase in Telco equipment sales was due to increased sales at
Nave Communications and Triton Datacom of $1.9 million each. The
increase in recycling revenue was due primarily to increased volume
of recycling shipments.
Gross profit increased $1.7 million, or 23%, to
$9.1 million for the 12 months ended September 30, 2019 due to an
increase in gross profit in the Wireless segment of $2.0 million,
which was partially offset by a decrease in gross profit in the
Telco segment of $0.3 million. The decrease in the Telco segment
gross profit was impacted by an increase in obsolescence expense of
$0.5 million and an increase in lower of cost or net realizable
value expense of $0.5 million.
Operating, selling, general and administrative
expenses increased $2.8 million, or 27%, to $13.1 million for the
12 months ended September 30, 2019, up from $10.3 million for the
same period last year. This increase was primarily due to increased
expenses in the Wireless segment of $3.5 million, partially offset
by a decrease in Telco segment expenses of $0.7 million.
Other expense for the 12 months ended September
30, 2019 includes $0.2 million of expense related to the Wireless
segment accounts receivable programs, which was partially offset by
payments received under a loan to the former YKTG Solutions
partners of $0.1 million. This compares to a loss on the equity
investment of $0.3 million for the 12 months ended September 30,
2018 consisting primarily of a legal settlement with a
subcontractor on the YKTG Solutions wireless cell tower
decommissioning project and the associated legal expenses.
The benefit for income taxes from continuing
operations was $13,000 for the 12 months ended September 30, 2019,
compared to a provision for income taxes of $1.5 million for the 12
months ended September 30, 2018. The tax provision in 2018 was due
primarily to the establishment of a valuation allowance.
Inclusive of the $1.8 million in
inventory-related and acquisition integration charges described
above, loss from continuing operations for the 12 months ended
September 30, 2019, was $4.0 million, or $0.39 per diluted share,
compared with a loss from continuing operations of $5.8 million, or
$0.56 per diluted share, for the same period of 2018, which
includes a $0.9 million restructuring charge and $0.4 million of
inventory-related charges.
On May 29, 2019, at a special stockholders’
meeting, the Company’s stockholders voted in favor of selling the
Company’s Cable TV segment to Leveling 8, Inc. (“Leveling 8”), a
company controlled by David Chymiak. David Chymiak is a director
and substantial shareholder of the Company, and he was the Chief
Technology Officer and President of Tulsat LLC until the closing of
the sale on June 30, 2019. Therefore, the Company classified the
Cable TV segment as discontinued operations.
Loss from discontinued operations, net of tax,
was $1.3 million for the 12 months ended September 30, 2019
compared to a loss of $1.5 million for the same period last year.
This activity included the operations of the Cable TV segment prior
to the sale on June 30, 2019. The Company recognized a loss on the
sale of the Cable TV segment of $1.5 million for the year ended
September 30, 2019. The Cable TV segment recognized a goodwill
impairment charge of $1.2 million for the year ended September 30,
2018.
As a result of the sale of the Cable TV segment
to Leveling 8, Inc., which closed on June 30, 2019, and the sales
of three Cable TV segment facilities to David Chymiak LLC prior to
the sale of the Cable TV segment, the Company will receive total
proceeds of $14.2 million. These proceeds consist of $7.1 million
in cash received from the facility sales, a receivable of $0.7
million received in the fourth quarter of 2019 and a promissory
note of $6.4 million to be paid over five years. Subsequent to
September 30, 2019, the first installment of the promissory note
for principal and interest was paid by Leveling 8 to the
Company.
Adjusted EBITDA for the 12 months ended
September 30, 2019 was a loss of $2.3 million compared with a loss
of $1.3 million for the same period ended September 30, 2018. The
Wireless segment includes acquisition expenses of $0.2 million and
integration expenses of $0.3 million for the year ended September
30, 2019, related to the acquisition of Fulton Technologies,
Inc. The Telco segment includes an inventory obsolescence
charge of $0.7 million and $0.2 million for the years ended
September 30, 2019 and 2018, respectively. In addition, the
Telco segment includes a lower of cost or net realizable value
charge of $0.7 million and $0.2 million for the years ended
September 30, 2019 and 2018, respectively. For the twelve months
ended September 30, 2018, the Company recorded a $0.9 million
restructuring charge, which was excluded from the Adjusted EBITDA
calculation.
Balance sheet
Cash and cash equivalents were $1.2 million as
of September 30, 2019, compared with $3.1 million as of September
30, 2018. As of September 30, 2019, the Company had inventory of
$7.6 million, compared with $7.5 million as of September 30,
2018.
Earnings Conference Call
The Company will host a conference call today,
Tuesday, December 17, at 4:30 p.m. Eastern Time featuring remarks
by Joseph Hart, President and Chief Executive Officer, Kevin Brown,
Chief Financial Officer, Colby Empey, President of the Wireless
Services Division, Don Kinison, President of the Telecommunications
Division, and Scott Francis, Chief Accounting Officer. The
conference call will be available via webcast and can be accessed
through the Investor Relations section of ADDvantage's website,
www.addvantagetechnologies.com.
Please allow extra time prior to the call to
visit the site and download any necessary software to listen to the
Internet broadcast. The dial-in number for the conference call is
1-800-239-9838 (domestic) or 1-323-794-2551 (international). All
dial-in participants must use the following code to access the
call: 7965894. Please call at least five minutes before the
scheduled start time.
A replay of the call will be available through
December 31, 2019 at 1-844-512-2921 (domestic) or 1-412-317-6671
(international). Participants must use the following code to access
the replay of the call: 7965894. An online archive of the webcast
will be available on the Company's website for 30 days following
the call.
About ADDvantage Technologies Group,
Inc.
ADDvantage Technologies Group, Inc. (Nasdaq:
AEY) is a communications infrastructure services and equipment
provider operating a diversified group of companies through its
Wireless Infrastructure Services and Telecommunications segments.
Through its Wireless segment, Fulton Technologies provides turn-key
wireless infrastructure services including the installation,
modification and upgrading of equipment on communication towers and
small cell sites for wireless carriers, national integrators, tower
owners and major equipment manufacturers. Through its
Telecommunications segment, Nave Communications and Triton Datacom
sell equipment and hardware used to acquire, distribute, and
protect the communications signals carried on fiber optic, coaxial
cable and wireless distribution systems. The Telecommunications
segment also offers repair services focused on telecommunication
equipment and recycling surplus and related obsolete
telecommunications equipment.
ADDvantage operates through its subsidiaries,
Fulton Technologies, Nave Communications, and Triton Datacom. For
more information, please visit the corporate web site at
www.addvantagetechnologies.com.
Cautions Regarding Forward-Looking
Statements
The information in this announcement may include
forward-looking statements. All statements, other than statements
of historical facts, which address activities, events or
developments that the Company expects or anticipates will or may
occur in the future, are forward-looking statements. These
statements are subject to risks and uncertainties, which could
cause actual results and developments to differ materially from
these statements. A complete discussion of these risks and
uncertainties is contained in the Company’s reports and documents
filed from time to time with the Securities and Exchange
Commission.
Non-GAAP Financial Measures
Adjusted EBITDA is a supplemental, non-GAAP
financial measure. EBITDA is defined as earnings before interest
expense, income taxes, depreciation and amortization.
Adjusted EBITDA as presented also excludes restructuring expense,
stock compensation expense, other income, other expense, interest
income and income from equity method investment. Management
believes providing Adjusted EBITDA is presented below because this
metric is used by the financial community as a method of measuring
our financial performance and of evaluating the market value of
companies considered to be in similar businesses. Since Adjusted
EBITDA is not a measure of performance calculated in accordance
with GAAP, it should not be considered in isolation of, or as a
substitute for, net earnings as an indicator of operating
performance. Adjusted EBITDA, as calculated in the table below, may
not be comparable to similarly titled measures employed by other
companies. In addition, Adjusted EBITDA is not necessarily a
measure of our ability to fund our cash needs.
For further information:Hayden IRBrett Maas(646)
536-7331aey@haydenir.com
-- Tables follow –
|
|
ADDVANTAGE TECHNOLOGIES GROUP, INC. |
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS |
(UNAUDITED) |
|
|
|
Three Months Ended September 30, |
Twelve Months Ended September 30, |
|
|
|
2019 |
|
|
|
2018 |
|
|
|
2019 |
|
|
|
2018 |
|
Sales |
|
$ |
17,858,730 |
|
|
$ |
6,335,494 |
|
|
$ |
55,118,297 |
|
|
$ |
27,473,282 |
|
Cost of
sales |
|
|
16,072,268 |
|
|
|
4,897,341 |
|
|
|
46,025,775 |
|
|
|
20,056,067 |
|
Gross
profit |
|
|
1,786,462 |
|
|
|
1,438,153 |
|
|
|
9,092,522 |
|
|
|
7,417,215 |
|
Operating, selling, general and administrative expenses |
|
|
3,403,485 |
|
|
|
2,558,759 |
|
|
|
13,068,636 |
|
|
|
10,274,113 |
|
Restructuring charge |
|
|
‒ |
|
|
|
941,059 |
|
|
|
‒ |
|
|
|
941,059 |
|
Loss
from operations |
|
|
(1,617,023 |
) |
|
|
(2,061,665 |
) |
|
|
(3,976,114 |
) |
|
|
(3,797,957 |
) |
Other
income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
96,411 |
|
|
|
‒ |
|
|
|
96,411 |
|
|
|
‒ |
|
Income (loss) from equity method investee |
|
|
60,500 |
|
|
|
– |
|
|
|
135,505 |
|
|
|
(258,558 |
) |
Other expense |
|
|
(91,032 |
) |
|
|
‒ |
|
|
|
(223,999 |
) |
|
|
‒ |
|
Interest expense |
|
|
(11,290 |
) |
|
|
(39,164 |
) |
|
|
(79,902 |
) |
|
|
(210,182 |
) |
Total
other income (expense), net |
|
|
54,589 |
|
|
|
(39,164 |
) |
|
|
(71,985 |
) |
|
|
(468,740 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss
before income taxes |
|
|
(1,562,434 |
) |
|
|
(2,100,829 |
) |
|
|
(4,048,099 |
) |
|
|
(4,266,697 |
) |
Benefit
for income taxes |
|
|
‒ |
|
|
|
1,686,000 |
|
|
|
(13,000 |
) |
|
|
1,517,000 |
|
Loss
from continuing operations |
|
|
(1,562,434 |
) |
|
|
(3,786,829 |
) |
|
|
(4,035,099 |
) |
|
|
(5,783,697 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss
from discontinued operations, net of tax |
|
|
‒ |
|
|
|
(1,059,869 |
) |
|
|
(1,267,344 |
) |
|
|
(1,536,159 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss |
|
$ |
(1,562,434 |
) |
|
$ |
(4,846,698 |
) |
|
$ |
(5,302,443 |
) |
|
$ |
(7,319,856 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
(0.15 |
) |
|
$ |
(0.37 |
) |
|
$ |
(0.39 |
) |
|
$ |
(0.56 |
) |
Discontinued operations |
|
|
‒ |
|
|
|
(0.10 |
) |
|
|
(0.12 |
) |
|
|
(0.15 |
) |
Net loss |
|
$ |
(0.15 |
) |
|
$ |
(0.47 |
) |
|
$ |
(0.51 |
) |
|
$ |
(0.71 |
) |
Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations |
|
$ |
(0.15 |
) |
|
$ |
(0.37 |
) |
|
$ |
(0.39 |
) |
|
$ |
(0.56 |
) |
Discontinued operations |
|
|
‒ |
|
|
|
(0.10 |
) |
|
|
(0.12 |
) |
|
|
(0.15 |
) |
Net loss |
|
$ |
(0.15 |
) |
|
$ |
(0.47 |
) |
|
$ |
(0.51 |
) |
|
$ |
(0.71 |
) |
Shares
used in per share calculation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
10,361,292 |
|
|
|
10,306,145 |
|
|
|
10,361,292 |
|
|
|
10,272,749 |
|
Diluted |
|
|
10,361,292 |
|
|
|
10,306,145 |
|
|
|
10,361,292 |
|
|
|
10,272,749 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2019 |
|
Three Months Ended September 30, 2018 |
|
|
|
Wireless |
|
|
|
Telco |
|
|
|
Total |
|
|
|
Wireless |
|
|
Telco |
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
$ |
(179,066 |
) |
|
$ |
(1,437,957 |
) |
|
$ |
(1,617,023 |
) |
|
$ |
‒ |
|
$ |
(2,061,665 |
) |
|
$ |
(2,061,665 |
) |
Depreciation |
|
|
77,729 |
|
|
|
32,635 |
|
|
|
110,364 |
|
|
|
‒ |
|
|
34,078 |
|
|
|
34,078 |
|
Amortization |
|
|
6,100 |
|
|
|
266,775 |
|
|
|
272,875 |
|
|
|
− |
|
|
313,311 |
|
|
|
313,311 |
|
Restructuring charge |
|
|
‒ |
|
|
|
‒ |
|
|
|
‒ |
|
|
|
‒ |
|
|
941,059 |
|
|
|
941,059 |
|
Stock compensation
expense |
|
|
30,562 |
|
|
|
16,039 |
|
|
|
46,601 |
|
|
|
− |
|
|
33,032 |
|
|
|
33,032 |
|
Adjusted
EBITDA (a) |
|
$ |
(64,675 |
) |
|
$ |
(1,122,508 |
) |
|
$ |
(1,187,183 |
) |
|
$ |
‒ |
|
$ |
(740,185 |
) |
|
$ |
(740,185 |
) |
(a) The Telco segment includes an
inventory obsolescence charge of $0.6 million and $0.1 million for
the three months ended September 30, 2019 and 2018,
respectively. In addition, the Telco segment includes a lower
of cost or net realizable value charge of $0.7 million and $26
thousand for the three months ended September 30, 2019 and 2018,
respectively.
|
|
Year Ended September 30, 2019 |
|
Year Ended September 30, 2018 |
|
|
|
Wireless |
|
|
|
Telco |
|
|
|
Total |
|
|
|
Wireless |
|
|
Telco |
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss
from operations |
|
$ |
(1,513,280 |
) |
|
$ |
(2,462,834 |
) |
|
$ |
(3,976,114 |
) |
|
$ |
‒ |
|
$ |
(3,797,957 |
) |
|
$ |
(3,797,957 |
) |
Depreciation |
|
|
237,333 |
|
|
|
130,159 |
|
|
|
367,492 |
|
|
|
‒ |
|
|
136,761 |
|
|
|
136,761 |
|
Amortization |
|
|
18,300 |
|
|
|
1,067,100 |
|
|
|
1,085,400 |
|
|
|
− |
|
|
1,253,244 |
|
|
|
1,253,244 |
|
Restructuring charge |
|
|
‒ |
|
|
|
‒ |
|
|
|
‒ |
|
|
|
‒ |
|
|
941,059 |
|
|
|
941,059 |
|
Stock
compensation expense |
|
|
62,190 |
|
|
|
137,102 |
|
|
|
199,292 |
|
|
|
− |
|
|
155,174 |
|
|
|
155,174 |
|
Adjusted EBITDA (a)(b) |
|
$ |
(1,195,457 |
) |
|
$ |
(1,128,473 |
) |
|
$ |
(2,323,930 |
) |
|
$ |
‒ |
|
$ |
(1,311,719 |
) |
|
$ |
(1,311,719 |
) |
(a) The Wireless segment includes acquisition expenses of
$0.2 million and integration expenses of $0.3 million for the year
ended September 30, 2019, related to the acquisition of Fulton
Technologies, Inc.
(b) The Telco segment includes an inventory
obsolescence charge of $0.7 million and $0.2 million for the years
ended September 30, 2019 and 2018, respectively. In addition,
the Telco segment includes a lower of cost or net realizable value
charge of $0.7 million and $0.2 million for the years ended
September 30, 2019 and 2018, respectively.
|
|
ADDVANTAGE TECHNOLOGIES GROUP, INC. |
CONSOLIDATED CONDENSED BALANCE SHEETS |
(UNAUDITED) |
|
|
|
|
September 30, |
|
|
|
2019 |
|
|
|
2018 |
|
Assets |
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
1,242,143 |
|
|
$ |
3,129,280 |
|
Restricted cash |
|
|
351,909 |
|
|
|
‒ |
|
Accounts receivable, net of allowance for doubtful accounts
of $150,000 |
|
|
4,826,716 |
|
|
|
2,578,998 |
|
Unbilled revenue |
|
|
2,691,232 |
|
|
|
‒ |
|
Promissory note – current |
|
|
1,400,000 |
|
|
|
‒ |
|
Income tax receivable |
|
|
21,350 |
|
|
|
178,766 |
|
Inventories, net of allowance for excess and
obsolete inventory of $1,275,000 and $815,000,
respectively |
|
|
7,625,573 |
|
|
|
7,462,491 |
|
Prepaid expenses |
|
|
543,762 |
|
|
|
253,405 |
|
Other current assets |
|
|
262,462 |
|
|
|
‒ |
|
Current assets of discontinued operations |
|
|
‒ |
|
|
|
16,925,526 |
|
Total
current assets |
|
|
18,965,147 |
|
|
|
30,528,466 |
|
|
|
|
|
|
|
|
|
|
Property
and equipment, at cost: |
|
|
|
|
|
|
|
|
Machinery and equipment |
|
|
2,475,545 |
|
|
|
1,084,024 |
|
Leasehold improvements |
|
|
190,984 |
|
|
|
190,984 |
|
Total
property and equipment, at cost |
|
|
2,666,529 |
|
|
|
1,275,008 |
|
Less:
Accumulated depreciation |
|
|
(835,424 |
) |
|
|
(773,312 |
) |
Net
property and equipment |
|
|
1,831,105 |
|
|
|
501,696 |
|
|
|
|
|
|
|
|
|
|
Promissory note – noncurrent |
|
|
4,975,000 |
|
|
|
‒ |
|
Investment in and loans to equity method investee |
|
|
‒ |
|
|
|
49,000 |
|
Intangibles, net of accumulated amortization |
|
|
6,002,998 |
|
|
|
6,844,398 |
|
Goodwill |
|
|
4,877,739 |
|
|
|
4,820,185 |
|
Other
assets |
|
|
176,355 |
|
|
|
125,903 |
|
Assets
of discontinued operations |
|
|
‒ |
|
|
|
1,524,972 |
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
36,828,344 |
|
|
$ |
44,394,620 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
4,730,537 |
|
|
$ |
3,300,388 |
|
Accrued expenses |
|
|
1,617,911 |
|
|
|
711,936 |
|
Deferred revenue |
|
|
97,478 |
|
|
|
‒ |
|
Notes payable – current portion |
|
|
‒ |
|
|
|
1,996,279 |
|
Other current liabilities |
|
|
757,867 |
|
|
|
664,374 |
|
Current liabilities of discontinued operations |
|
|
‒ |
|
|
|
2,392,780 |
|
Total
current liabilities |
|
|
7,203,793 |
|
|
|
9,065,757 |
|
Other liabilities |
|
|
177,951 |
|
|
|
801,612 |
|
Total
liabilities |
|
|
7,381,744 |
|
|
|
9,867,369 |
|
|
|
|
|
|
|
|
|
|
Shareholders’ equity: |
|
|
|
|
|
|
|
|
Common stock, $.01 par value; 30,000,000 shares authorized; |
|
|
|
|
|
|
|
|
10,861,950 and 10,806,803 shares issued, respectively;10,361,292
and 10,306,145 shares outstanding, respectively |
|
|
108,620 |
|
|
|
108,068 |
|
Paid in capital |
|
|
(4,377,103 |
) |
|
|
(4,598,343 |
) |
Retained earnings |
|
|
34,715,097 |
|
|
|
40,017,540 |
|
Total shareholders’ equity before treasury stock |
|
|
30,446,614 |
|
|
|
35,527,265 |
|
Less: Treasury stock, 500,658 shares, at cost |
|
|
(1,000,014 |
) |
|
|
(1,000,014 |
) |
Total
shareholders’ equity |
|
|
29,446,600 |
|
|
|
34,527,251 |
|
|
|
|
|
|
|
|
|
|
Total
liabilities and shareholders’ equity |
|
$ |
36,828,344 |
|
|
$ |
44,394,620 |
|
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