Company Quick10K Filing
Mosys
Price2.44 EPS-1
Shares2 P/E-3
MCap5 P/FCF-24
Net Debt-6 EBIT-2
TEV-1 TEV/EBIT0
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-09-30 Filed 2020-11-10
10-Q 2020-06-30 Filed 2020-08-12
10-Q 2020-03-31 Filed 2020-05-08
10-K 2019-12-31 Filed 2020-03-17
10-Q 2019-09-30 Filed 2019-11-13
10-Q 2019-06-30 Filed 2019-08-13
10-Q 2019-03-31 Filed 2019-05-15
10-K 2018-12-31 Filed 2019-03-12
10-Q 2018-09-30 Filed 2018-11-06
10-Q 2018-06-30 Filed 2018-08-08
S-1 2018-05-24 Public Filing
10-Q 2018-03-31 Filed 2018-05-11
S-1 2018-01-04 Public Filing
10-K 2017-12-31 Filed 2018-03-12
10-Q 2017-09-30 Filed 2017-11-14
10-Q 2017-06-30 Filed 2017-08-10
10-Q 2017-03-31 Filed 2017-05-12
10-K 2016-12-31 Filed 2017-03-30
10-Q 2016-09-30 Filed 2016-11-09
10-Q 2016-06-30 Filed 2016-08-09
10-Q 2016-03-31 Filed 2016-05-10
10-K 2015-12-31 Filed 2016-03-15
10-Q 2015-09-30 Filed 2015-11-06
10-Q 2015-06-30 Filed 2015-08-07
10-Q 2015-03-31 Filed 2015-05-11
10-K 2014-12-31 Filed 2015-03-13
10-Q 2014-09-30 Filed 2014-11-07
10-Q 2014-06-30 Filed 2014-08-08
10-Q 2014-03-31 Filed 2014-05-12
10-K 2013-12-31 Filed 2014-03-14
10-Q 2013-09-30 Filed 2013-11-08
10-Q 2013-06-30 Filed 2013-08-08
10-Q 2013-03-31 Filed 2013-05-03
10-K 2012-12-31 Filed 2013-03-12
10-Q 2012-09-30 Filed 2012-11-07
10-Q 2012-06-30 Filed 2012-08-09
10-Q 2012-03-31 Filed 2012-05-09
10-K 2011-12-31 Filed 2012-03-15
10-Q 2011-09-30 Filed 2011-11-09
10-Q 2011-06-30 Filed 2011-08-08
10-Q 2011-03-31 Filed 2011-05-10
10-K 2010-12-31 Filed 2011-03-15
10-Q 2010-09-30 Filed 2010-11-03
10-Q 2010-06-30 Filed 2010-08-13
10-Q 2010-03-31 Filed 2010-05-12
10-K 2009-12-31 Filed 2010-03-26
8-K 2020-11-06
8-K 2020-08-06
8-K 2020-07-15
8-K 2020-06-25
8-K 2020-05-13
8-K 2020-05-07
8-K 2020-05-05
8-K 2020-04-17
8-K 2020-02-20
8-K 2019-11-06
8-K 2019-08-27
8-K 2019-08-23
8-K 2019-08-06
8-K 2019-05-24
8-K 2019-05-09
8-K 2019-04-15
8-K 2019-02-20
8-K 2018-12-28
8-K 2018-11-06
8-K 2018-10-12
8-K 2018-10-02
8-K 2018-09-21
8-K 2018-09-14
8-K 2018-09-13
8-K 2018-08-13
8-K 2018-08-13
8-K 2018-07-25
8-K 2018-05-10
8-K 2018-02-26

MOSY 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements
Note 1. The Company and Summary of Significant Accounting Policies
Note 2: Fair Value of Financial Instruments
Note 3. Balance Sheet Detail
Note 4. Commitments and Contingencies
Note 5. Business Segments, Concentration of Credit Risk and Significant Customers
Note 6. Income Tax Provision
Note 7. Stock - Based Compensation
Note 8: Stockholders' Equity
Note 9. Notes Payable
Note 10. Leases
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 6. Exhibits
EX-31.1 mosy-ex311_7.htm
EX-31.2 mosy-ex312_6.htm
EX-32.1 mosy-ex321_8.htm

Mosys Earnings 2020-09-30

Balance SheetIncome StatementCash Flow
907254361802012201420172020
Assets, Equity
4.63.11.60.1-1.4-2.92012201420172020
Rev, G Profit, Net Income
30186-6-18-302012201420172020
Ops, Inv, Fin

10-Q 1 mosy-10q_20200930.htm 10-Q mosy-10q_20200930.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

(Mark one)

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020

 

OR

 

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from                to              

 

Commission file number 000-32929

 

MOSYS, INC.

(Exact name of registrant as specified in its charter)

 

Delaware

   

77-0291941

(State or other jurisdiction

 

(I.R.S. Employer

of Incorporation or organization)

 

Identification Number)

 

2309 Bering Drive

San Jose, California, 95131

(Address of principal executive office and zip code)

 

(408) 418-7500

(Registrant’s telephone number, including area code)

 

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading symbol(s)

 

Name of each exchange on which registered

 

Common Stock, par value $0.001 per share

MOSY

The NASDAQ Stock Market, LLC

 

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 filing requirements for the past 90 days.  YES   NO 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  YES   NO 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

 

Large accelerated filer 

 

Accelerated filer 

Non-accelerated filer 

 

Smaller reporting company 

Emerging growth company 

 

 

 

 

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 

 

The number of outstanding shares of the registrant’s common stock, par value $0.001 per share, was 3,553,184 as of November 5, 2020.

 

 


 

MOSYS, INC.

 

FORM 10-Q

September 30, 2020

 

TABLE OF CONTENTS

 

PART I —

FINANCIAL INFORMATION

3

 

 

 

Item 1.

Financial Statements (Unaudited):

3

 

 

 

 

Condensed Consolidated Balance Sheets as of September 30, 2020 and December 31, 2019

3

 

 

 

 

Condensed Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2020 and 2019

4

 

 

 

 

Condensed Consolidated Statements of Stockholders’ Equity for the three and nine months ended September 30, 2020 and 2019

5

 

 

 

 

Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2020 and 2019

6

 

 

 

 

Notes to Condensed Consolidated Financial Statements

7

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

18

 

 

 

Item 4.

Controls and Procedures

24

 

 

 

PART II —

OTHER INFORMATION

24

 

 

 

Item 1.

Legal Proceedings

24

 

 

 

Item 1A.

Risk Factors

24

 

 

 

Item 6.

Exhibits

26

 

 

 

 

Signatures

27

 

 

 

 

 


 

PART I—FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

MOSYS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except par value)

 

 

 

September 30,

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

 

(unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

6,921

 

 

$

6,053

 

Short-term investments

 

 

 

 

 

300

 

Accounts receivable

 

 

790

 

 

 

1,175

 

Inventories

 

 

713

 

 

 

968

 

Prepaid expenses and other

 

 

359

 

 

 

472

 

Total current assets

 

 

8,783

 

 

 

8,968

 

Property and equipment, net

 

 

86

 

 

 

197

 

Right-of-use lease asset, net

 

 

352

 

 

 

156

 

Other

 

 

17

 

 

 

78

 

Total assets

 

$

9,238

 

 

$

9,399

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

80

 

 

$

218

 

Deferred revenue

 

 

 

 

 

166

 

Short-term lease liability

 

 

201

 

 

 

166

 

PPP note payable, current

 

 

171

 

 

 

 

Accrued expenses and other

 

 

1,233

 

 

 

1,155

 

Total current liabilities

 

 

1,685

 

 

 

1,705

 

Convertible notes payable

 

 

3,092

 

 

 

2,858

 

PPP note payable

 

 

408

 

 

 

 

Long-term lease liability

 

 

152

 

 

 

 

Total liabilities

 

 

5,337

 

 

 

4,563

 

Commitments and contingencies (Note 4)

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

 

 

 

 

 

 

Preferred stock, $0.01 par value; 20,000 shares authorized; none issued and

   outstanding

 

 

 

 

 

 

Common stock, $0.001 par value; 120,000 shares authorized; 3,553 shares

   and 2,179 shares issued and outstanding at September 30, 2020 and

   December 31, 2019, respectively

 

 

3

 

 

 

2

 

Additional paid-in capital

 

 

245,488

 

 

 

243,281

 

Accumulated deficit

 

 

(241,590

)

 

 

(238,447

)

Total stockholders’ equity

 

 

3,901

 

 

 

4,836

 

Total liabilities and stockholders’ equity

 

$

9,238

 

 

$

9,399

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

3


 

MOSYS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

(In thousands, except per share data)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product

 

$

1,803

 

 

$

1,037

 

 

$

4,550

 

 

$

7,233

 

Royalty and other

 

 

168

 

 

 

169

 

 

 

649

 

 

 

559

 

Total net revenue

 

 

1,971

 

 

 

1,206

 

 

 

5,199

 

 

 

7,792

 

Cost of net revenue

 

 

677

 

 

 

407

 

 

 

1,811

 

 

 

2,989

 

Gross profit

 

 

1,294

 

 

 

799

 

 

 

3,388

 

 

 

4,803

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

972

 

 

 

1,097

 

 

 

2,918

 

 

 

3,231

 

Selling, general and administrative

 

 

955

 

 

 

1,059

 

 

 

3,054

 

 

 

2,963

 

Impairment of goodwill

 

 

 

 

 

420

 

 

 

 

 

 

420

 

Total operating expenses

 

 

1,927

 

 

 

2,576

 

 

 

5,972

 

 

 

6,614

 

Loss from operations

 

 

(633

)

 

 

(1,777

)

 

 

(2,584

)

 

 

(1,811

)

Interest expense

 

 

(70

)

 

 

(54

)

 

 

(181

)

 

 

(164

)

Other income (expense), net

 

 

(4

)

 

 

30

 

 

 

14

 

 

 

81

 

Net loss

 

 

(707

)

 

 

(1,801

)

 

 

(2,751

)

 

 

(1,894

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deemed dividend for warrant exercise price adjustment

 

 

 

 

 

 

 

 

(392

)

 

 

 

Net loss attributable to common stockholders

 

$

(707

)

 

$

(1,801

)

 

$

(3,143

)

 

$

(1,894

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share attributable to common stockholders

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.20

)

 

$

(0.83

)

 

$

(1.03

)

 

$

(0.88

)

Shares used in computing net loss per share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

3,546

 

 

 

2,171

 

 

 

3,037

 

 

 

2,161

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income, net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(707

)

 

$

(1,801

)

 

$

(2,751

)

 

$

(1,894

)

Net unrealized gains on available-for-sale securities

 

 

 

 

 

 

 

 

 

 

 

1

 

Comprehensive loss

 

$

(707

)

 

$

(1,801

)

 

$

(2,751

)

 

$

(1,893

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

4


 

MOSYS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Paid-In

 

 

Comprehensive

 

 

Accumulated

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Income

 

 

Deficit

 

 

Total

 

Balance as of December 31, 2019

 

 

2,179

 

 

$

2

 

 

$

243,281

 

 

 

 

 

$

(238,447

)

 

$

4,836

 

Issuance of common stock for release of awards

 

 

20

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

(1

)

Exercise of pre-funded warrants

 

 

116

 

 

 

 

 

 

2

 

 

 

 

 

 

 

 

 

2

 

Stock-based compensation

 

 

 

 

 

 

 

 

68

 

 

 

 

 

 

 

 

 

68

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,405

)

 

 

(1,405

)

Balance as of March 31, 2020

 

 

2,315

 

 

 

2

 

 

 

243,350

 

 

 

 

 

 

(239,852

)

 

 

3,500

 

Issuance of common stock for release of awards

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sale of common stock, net of financing costs

 

 

1,218

 

 

 

1

 

 

 

1,618

 

 

 

 

 

 

 

 

 

1,619

 

Deemed dividend for warrant exercise price adjustment

 

 

 

 

 

 

 

 

392

 

 

 

 

 

 

(392

)

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

66

 

 

 

 

 

 

 

 

 

66

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(639

)

 

 

(639

)

Balance as of June 30, 2020

 

 

3,534

 

 

 

3

 

 

 

245,426

 

 

 

 

 

 

(240,883

)

 

 

4,546

 

Issuance of common stock for release of awards

 

 

19

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

(1

)

Stock-based compensation

 

 

 

 

 

 

 

 

63

 

 

 

 

 

 

 

 

 

63

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(707

)

 

 

(707

)

Balance as of September 30, 2020

 

 

3,553

 

 

$

3

 

 

$

245,488

 

 

$

 

 

$

(241,590

)

 

$

3,901

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

 

Paid-In

 

 

Comprehensive

 

 

Accumulated

 

 

 

 

 

 

 

Shares

 

 

Amount

 

 

Capital

 

 

Income

 

 

Deficit

 

 

Total

 

Balance as of December 31, 2018

 

 

2,148

 

 

$

2

 

 

$

243,022

 

 

 

 

 

$

(235,867

)

 

$

7,157

 

Issuance of common stock for release of awards

 

 

9

 

 

 

 

 

 

(1

)

 

 

 

 

 

 

 

 

(1

)

Stock-based compensation

 

 

 

 

 

 

 

 

(4

)

 

 

 

 

 

 

 

 

(4

)

Net income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10

 

 

 

10

 

Balance as of March 31, 2019

 

 

2,157

 

 

 

2

 

 

 

243,017

 

 

 

 

 

 

(235,857

)

 

 

7,162

 

Issuance of common stock for release of awards

 

 

5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

 

 

 

 

 

 

119

 

 

 

 

 

 

 

 

 

119

 

Unrealized gain on available-for-sale investments

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

1

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(103

)

 

 

(103

)

Balance as of June 30, 2019

 

 

2,162

 

 

 

2

 

 

 

243,136

 

 

 

1

 

 

 

(235,960

)

 

 

7,179

 

Issuance of common stock for release of awards

 

 

16

 

 

 

 

 

 

(3

)

 

 

 

 

 

 

 

 

(3

)

Stock-based compensation

 

 

 

 

 

 

 

 

84

 

 

 

 

 

 

 

 

 

84

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,801

)

 

 

(1,801

)

Balance as of September 30, 2019

 

 

2,178

 

 

$

2

 

 

$

243,217

 

 

$

1

 

 

$

(237,761

)

 

$

5,459

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

5


 

MOSYS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

 

 

 

Nine Months Ended

 

 

 

September 30,

 

 

 

2020

 

 

2019

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net loss

 

$

(2,751

)

 

$

(1,894

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

121

 

 

 

148

 

Stock-based compensation

 

 

197

 

 

 

199

 

Impairment of goodwill

 

 

 

 

 

420

 

Accrued interest

 

 

181

 

 

 

164

 

Other

 

 

(5

)

 

 

(11

)

Changes in assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

385

 

 

 

729

 

Inventories

 

 

255

 

 

 

(67

)

Prepaid expenses and other assets

 

 

174

 

 

 

448

 

Accounts payable

 

 

(138

)

 

 

(105

)

Deferred revenue and other liabilities

 

 

(35

)

 

 

(257

)

Net cash used in operating activities

 

 

(1,616

)

 

 

(226

)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchases of property and equipment

 

 

(14

)

 

 

(62

)

Proceeds from maturities of short-term investments

 

 

300

 

 

 

925

 

Purchases of short-term investments

 

 

 

 

 

(1,567

)

Net cash provided by (used in) investing activities

 

 

286

 

 

 

(704

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Proceeds from PPP note

 

 

579

 

 

 

 

Proceeds from sale of common stock, net of financing costs

 

 

1,619

 

 

 

 

Net proceeds from exercise of pre-funded warrants

 

 

2

 

 

 

 

Taxes paid to net share settle equity awards

 

 

(2

)

 

 

(4

)

Net cash provided by (used in) financing activities

 

 

2,198

 

 

 

(4

)

Net increase (decrease) in cash and cash equivalents

 

 

868

 

 

 

(934

)

Cash and cash equivalents at beginning of period

 

 

6,053

 

 

 

7,104

 

Cash and cash equivalents at end of period

 

$

6,921

 

 

$

6,170

 

Supplemental disclosure:

 

 

 

 

 

 

 

 

Issuance of convertible notes in settlement of accrued interest

 

$

234

 

 

$

187

 

Fair value of warrant exercise price adjustment considered as deemed dividend

 

$

392

 

 

$

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

6


 

MOSYS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1. The Company and Summary of Significant Accounting Policies

MoSys, Inc. (the Company) was incorporated in California in September 1991 and reincorporated in September 2000 in Delaware. The Company’s strategy and primary business objective is to be an IP-rich fabless semiconductor company focused on the development and sale of integrated circuit (IC) and related software and firmware products.

The accompanying condensed consolidated financial statements of the Company have been prepared without audit.  

The condensed consolidated balance sheet as of December 31, 2019 has been derived from the audited consolidated financial statements at that date. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) have been condensed or omitted in accordance with these rules and regulations of the Securities and Exchange Commission (SEC). The information in this report should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in its most recent annual report on Form 10-K filed with the SEC.

In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments) necessary to summarize fairly the Company’s financial position, results of operations and cash flows for the interim periods presented. The operating results for the three and nine months ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 or for any other future period.

Basis of Presentation

The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation. The Company’s fiscal year ends on December 31 of each calendar year.

Risks and Uncertainties

The Company is subject to risks from, among other things, competition associated with the industry in general, other risks associated with financing, liquidity requirements, rapidly changing customer requirements, limited operating history and the volatility of public markets.

COVID-19

The global outbreak of the coronavirus disease 2019 (COVID-19) was declared a pandemic by the World Health Organization and a national emergency by the U.S. government in March 2020.  This has negatively affected the U.S. and global economy, disrupted global supply chains, significantly restricted travel and transportation, resulted in mandated closures and orders to “shelter-in-place” and created significant disruption of the financial markets. The full extent of the COVID-19 impact on the Company’s operational and financial performance will depend on future developments, including the duration and spread of the pandemic and related actions taken by U.S. and foreign government agencies to prevent disease spread, all of which are uncertain, out of the Company’s control, and cann