Price | 2.99 | EPS | -0 | |
Shares | 16 | P/E | -25 | |
MCap | 49 | P/FCF | 126 | |
Net Debt | -1 | EBIT | -1 | |
TEV | 48 | TEV/EBIT | -36 | TTM 2019-09-30, in MM, except price, ratios |
10-Q | 2020-09-30 | Filed 2020-11-12 |
10-Q | 2020-06-30 | Filed 2020-08-06 |
10-Q | 2020-03-31 | Filed 2020-05-15 |
10-K | 2019-12-31 | Filed 2020-03-26 |
10-Q | 2019-09-30 | Filed 2019-11-07 |
10-Q | 2019-06-30 | Filed 2019-08-08 |
10-Q | 2019-03-31 | Filed 2019-05-09 |
10-K | 2018-12-31 | Filed 2019-03-21 |
10-Q | 2018-09-30 | Filed 2018-11-08 |
10-Q | 2018-06-30 | Filed 2018-08-08 |
10-Q | 2018-03-31 | Filed 2018-05-08 |
10-K | 2017-12-31 | Filed 2018-03-21 |
8-K | 2020-11-12 | Earnings, Exhibits |
8-K | 2020-08-06 | Earnings, Exhibits |
8-K | 2020-06-24 | |
8-K | 2020-06-03 | |
8-K | 2020-06-03 | |
8-K | 2020-05-14 | |
8-K | 2020-05-11 | |
8-K | 2020-04-24 | |
8-K | 2020-04-20 | |
8-K | 2020-04-05 | |
8-K | 2020-03-26 | |
8-K | 2020-02-15 | |
8-K | 2020-02-15 | |
8-K | 2019-12-23 | |
8-K | 2019-11-07 | |
8-K | 2019-11-04 | |
8-K | 2019-08-26 | |
8-K | 2019-08-08 | |
8-K | 2019-08-02 | |
8-K | 2019-07-01 | |
8-K | 2019-06-26 | |
8-K | 2019-05-15 | |
8-K | 2019-05-09 | |
8-K | 2019-03-20 | |
8-K | 2019-02-13 | |
8-K | 2019-01-31 | |
8-K | 2019-01-02 | |
8-K | 2018-11-08 | |
8-K | 2018-10-31 | |
8-K | 2018-08-31 | |
8-K | 2018-08-22 | |
8-K | 2018-08-08 | |
8-K | 2018-07-30 | |
8-K | 2018-06-26 | |
8-K | 2018-05-22 | |
8-K | 2018-05-08 | |
8-K | 2018-04-11 | |
8-K | 2018-03-21 | |
8-K | 2018-03-07 | |
8-K | 2018-02-02 | |
8-K | 2018-02-01 |
Part 1 - Financial Information |
Item 1. Financial Statements. |
Note 1 - The Company and Basis of Presentation |
Note 2 - Significant Accounting Policies |
Note 3 - Accounts Receivable |
Note 4 - Inventories |
Note 5 - Long - Lived Intangile Assets |
Note 6 - Accrued Expenses and Other Liabilities |
Note 7 - Debt |
Note 8 - Stockholders' Equity |
Note 9 - Commitments and Contingencies |
Note 10 - Related Party Transactions |
Note 11 - Net Loss per Share |
Note 12 - Revenue, Segment and Geographic Information |
Note 13 - Subsequent Events |
Item 3. Quantitative and Qualitative Disclosures About Market Risk. |
Item 4. Controls and Procedures |
Part II - Other Information |
Item 1. Legal Proceedings. |
Item 1A. Risk Factors. |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. |
Item 3. Defaults Upon Senior Securities. |
Item 4. Mine Safety Disclosures. |
Item 5. Other Information. |
Item 6. Exhibits. |
EX-31.1 | oss-ex311_9.htm |
EX-31.2 | oss-ex312_6.htm |
EX-32.1 | oss-ex321_8.htm |
EX-32.2 | oss-ex322_7.htm |
Balance Sheet | Income Statement | Cash Flow |
---|---|---|
Assets, Equity
|
Rev, G Profit, Net Income
|
Ops, Inv, Fin
|
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: 001-38371
One Stop Systems, Inc.
(Exact Name of Registrant as Specified in its Charter)
Delaware | 33-0885351 |
( State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
2235 Enterprise Street #110
Escondido, California 92029
(Address of principal executive offices including Zip Code
(760) 745-9883
(Registrant’s telephone number, including area code)
(Former Name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading symbol | Name of exchange on which registered |
Common Stock, $0.0001 par value per share | OSS | The Nasdaq Capital Market |
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 ☒ 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, smaller reporting company, or an emerging growth company. See the 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 ☒
As of October 31, 2020, the registrant had 16,620,908 shares of common stock (par value $0.0001) outstanding.
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| Page |
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Item 1. |
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| 3 | |
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| 3 | |
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| 4 | |
|
| Unaudited Consolidated Statements of Comprehensive Income (Loss) |
| 5 |
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| 6 | |
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| 8 | |
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| 10 | |
Item 2. |
| Management’s Discussion and Analysis of Financial Condition and Results of Operations |
| 27 |
Item 3. |
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| 41 | |
Item 4. |
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| 41 | |
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Item 1. |
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| 42 | |
Item 1A. |
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| 42 | |
Item 2. |
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| 44 | |
Item 3. |
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| 44 | |
Item 4. |
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| 44 | |
Item 5. |
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| 44 | |
Item 6. |
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| 45 | |
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| 47 |
2
PART 1 – FINANCIAL INFORMATION
ONE STOP SYSTEMS, INC. (OSS)
UNAUDITED CONSOLIDATED BALANCE SHEETS
|
| September 30, |
|
| December 31, |
| ||
|
| 2020 |
|
| 2019 |
| ||
ASSETS |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
| $ | 5,519,829 |
|
| $ | 5,185,321 |
|
Accounts receivable, net |
|
| 9,744,171 |
|
|
| 11,667,157 |
|
Inventories, net |
|
| 9,999,680 |
|
|
| 7,369,356 |
|
Prepaid expenses and other current assets |
|
| 720,070 |
|
|
| 453,938 |
|
Total current assets |
|
| 25,983,750 |
|
|
| 24,675,772 |
|
Property and equipment, net |
|
| 3,567,582 |
|
|
| 3,568,564 |
|
Deposits and other |
|
| 81,711 |
|
|
| 47,146 |
|
Deferred tax assets, net |
|
| 3,939,546 |
|
|
| 3,019,823 |
|
Goodwill |
|
| 7,120,510 |
|
|
| 7,120,510 |
|
Intangible assets, net |
|
| 826,157 |
|
|
| 1,346,192 |
|
|
| $ | 41,519,256 |
|
| $ | 39,778,007 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
Accounts payable |
| $ | 3,680,192 |
|
| $ | 4,115,977 |
|
Accrued expenses and other liabilities |
|
| 3,758,109 |
|
|
| 4,607,432 |
|
Current portion of notes payable, net of debt discount of $3,802 and $7,019, respectively (Note 7) |
|
| 1,433,200 |
|
|
| 1,377,751 |
|
Current portion of related-party notes payable, net of debt discount of $12,491 and $23,060, respectively (Note 7) |
|
| 345,586 |
|
|
| 561,441 |
|
Senior secured convertible note, net of discounts of $337,247 (Note 7) |
|
| 1,299,117 |
|
|
| - |
|
Total current liabilities |
|
| 10,516,204 |
|
|
| 10,662,601 |
|
Notes payable, net of current portion and debt discount of $0 and $2,047, respectively (Note 7) |
|
| - |
|
|
| 149,301 |
|
Related-party notes payable, net of current portion and debt discount of $0 and $6,726 , respectively (Note 7) |
|
| - |
|
|
| 199,943 |
|
Senior secured convertible note, net of discounts of $51,707 (Note 7) |
|
| 902,839 |
|
|
| - |
|
Paycheck protection plan note payable (Note 7) |
|
| 1,499,360 |
|
|
| - |
|
Total liabilities |
|
| 12,918,403 |
|
|
| 11,011,845 |
|
Commitments and contingencies (Note 9) |
|
|
|
|
|
|
|
|
Stockholders’ equity |
|
|
|
|
|
|
|
|
Common stock, $.0001 par value; 50,000,000 shares authorized; 16,620,908 and 16,121,747 shares issued and outstanding, respectively |
|
| 1,662 |
|
|
| 1,612 |
|
Additional paid-in capital |
|
| 30,480,405 |
|
|
| 30,537,015 |
|
Noncontrolling interest |
|
| - |
|
|
| 500 |
|
Accumulated other comprehensive income (loss) |
|
| 124,382 |
|
|
| (17,773 | ) |
Accumulated deficit |
|
| (2,005,596 | ) |
|
| (1,755,192 | ) |
Total stockholders’ equity |
|
| 28,600,853 |
|
|
| 28,766,162 |
|
|
| $ | 41,519,256 |
|
| $ | 39,778,007 |
|
See accompanying notes to consolidated financial statements
3
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
|
| For the Three Months Ended September 30, |
|
| For the Nine Months Ended September 30, |
| ||||||||||
|
| 2020 |
|
| 2019 |
|
| 2020 |
|
| 2019 |
| ||||
Revenue |
| $ | 12,976,058 |
|
| $ | 14,938,964 |
|
| $ | 37,961,023 |
|
| $ | 39,883,099 |
|
Cost of revenue |
|
| 8,074,445 |
|
|
| 9,909,045 |
|
|
| 26,338,527 |
|
|
| 27,028,399 |
|
Gross profit |
|
| 4,901,613 |
|
|
| 5,029,919 |
|
|
| 11,622,496 |
|
|
| 12,854,700 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General and administrative |
|
| 1,817,499 |
|
|
| 2,190,003 |
|
|
| 6,208,922 |
|
|
| 6,468,021 |
|
Impairment of goodwill |
|
| - |
|
|
| - |
|
|
| - |
|
|
| 1,697,394 |
|
Marketing and selling |
|
| 1,103,384 |
|
|
| 1,383,965 |
|
|
| 3,137,833 |
|
|
| 3,758,901 |
|
Research and development |
|
| 1,001,288 |
|
|
| 1,036,394 |
|
|
| 3,213,339 |
|
|
| 3,523,515 |
|
Total operating expenses |
|
| 3,922,171 |
|
|
| 4,610,362 |
|
|
| 12,560,094 |
|
|
| 15,447,831 |
|
Income (loss) from operations |
|
| 979,442 |
|
|
| 419,557 |
|
|
| (937,598 | ) |
|
| (2,593,131 | ) |
Other income (expense), net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
| 143,931 |
|
|
| 10,149 |
|
|
| 267,911 |
|
|
| 23,424 |
|
Interest expense |
|
| (174,205 | ) |
|
| (52,182 | ) |
|
| (393,175 | ) |
|
| (111,463 | ) |
Other income (expense), net |
|
| (33,625 | ) |
|
| 116,326 |
|
|
| (38,598 | ) |
|
| 91,819 |
|
Total other income (expense), net |
|
| (63,899 | ) |
|
| 74,293 |
|
|
| (163,862 | ) |
|
| 3,780 |
|
Income (loss) before income taxes |
|
| 915,543 |
|
|
| 493,850 |
|
|
| (1,101,460 | ) |
|
| (2,589,351 | ) |
Provision (benefit) for income taxes |
|
| 57,753 |
|
|
| (51,051 | ) |
|
| (851,056 | ) |
|
| (594,890 | ) |
Net income (loss) attributable to common stockholders |
| $ | 857,790 |
|
| $ | 544,901 |
|
| $ | (250,404 | ) |
| $ | (1,994,461 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| $ | 0.05 |
|
| $ | 0.03 |
|
| $ | (0.02 | ) |
| $ | (0.13 | ) |
Diluted |
| $ | 0.05 |
|
| $ | 0.03 |
|
| $ | (0.02 | ) |
| $ | (0.13 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
| 16,585,773 |
|
|
| 15,777,158 |
|
|
| 16,469,457 |
|
|
| 14,825,351 |
|
Diluted |
|
| 17,018,614 |
|
|
| 16,390,206 |
|
|
| 16,469,457 |
|
|
| 14,825,351 |
|
See accompanying notes to consolidated financial statements
4
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
|
| For the Three Months Ended September 30, |
|
| For the Nine Months Ended September 30, |
| ||||||||||
|
| 2020 |
|
| 2019 |
|
| 2020 |
|
| 2019 |
| ||||
Net income (loss) attributable to common stockholders |
| $ | 857,790 |
|
| $ | 544,901 |
|
| $ | (250,404 | ) |
| $ | (1,994,461 | ) |
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency translation adjustment |
|
| 130,280 |
|
|
| (68,316 | ) |
|
| 142,155 |
|
|
| (66,382 | ) |
Total other comprehensive income (loss) |
|
| 130,280 |
|
|
| (68,316 | ) |
|
| 142,155 |
|
|
| (66,382 | ) |
Comprehensive income (loss) |
| $ | 988,070 |
|
| $ | 476,585 |
|
| $ | (108,249 | ) |
| $ | (2,060,843 | ) |
See accompanying notes to consolidated financial statements
5
UNAUDITED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
For The Three and Nine Months Ended September 30, 2020
|
| Common Stock |
|
|
|
|
|
|
|
|
|
| Accumulated Other |
|
|
|
|
|
| Total |
| |||||||
|
| Shares |
|
| Amount |
|
| Additional Paid-in-Capital |
|
| Noncontrolling Interest |
|
| Comprehensive income (loss) |
|
| Accumulated Deficit |
|
| Stockholders' Equity |
| |||||||
Balance, January 1, 2020 |
|
| 16,121,747 |
|
| $ | 1,612 |
|
| $ | 30,537,015 |
|
| $ | 500 |
|
| $ | (17,773 | ) |
| $ | (1,755,192 | ) |
| $ | 28,766,162 |
|
Stock-based compensation |
|
| - |
|
|
| - |
|
|
| 293,139 |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 293,139 |
|
Exercise of stock options |
|
| 376,870 |
|
|
| 37 |
|
|
| 64,430 |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 64,467 |
|
Return of capital upon dissolution of SkyScale |
|
| - |
|
|
| - |
|
|
| - |
|
|
| (500 | ) |
|
| - |
|
|
| - |
|
|
| (500 | ) |
Taxes paid on net issuance of employee stock options |
|
| - |
|
|
| - |
|
|
| (670,599 | ) |
|
| - |
|
|
| - |
|
|
| - |
|
|
| (670,599 | ) |
Currency translation adjustment |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 11,875 |
|
|
| - |
|
|
| 11,875 |
|
Net loss |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| (1,108,194 | ) |
|
| (1,108,194 | ) |
Balance, June 30, 2020 |
|
| 16,498,617 |
|
| $ | 1,649 |
|
| $ | 30,223,985 |
|
| $ | - |
|
| $ | (5,898 | ) |
| $ | (2,863,386 | ) |
| $ | 27,356,350 |
|
Stock-based compensation |
|
| - |
|
|
| - |
|
|
| 210,280 |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 210,280 |
|
Exercise of stock options and warrants |
|
| 122,291 |
|
|
| 13 |
|
|
| 59,987 |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 60,000 |
|
Taxes paid on net issuance of employee stock options |
|
| - |
|
|
| - |
|
|
| (13,847 | ) |
|
| - |
|
|
| - |
|
|
| - |
|
|
| (13,847 | ) |
Currency translation adjustment |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 130,280 |
|
|
| - |
|
|
| 130,280 |
|
Net income |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 857,790 |
|
|
| 857,790 |
|
Balance, September 30, 2020 |
|
| 16,620,908 |
|
| $ | 1,662 |
|
| $ | 30,480,405 |
|
| $ | - |
|
| $ | 124,382 |
|
| $ | (2,005,596 | ) |
| $ | 28,600,853 |
|
See accompanying notes to consolidated financial statements
6
UNAUDITED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
For The Three and Nine Months Ended September 30, 2019
|
| Common Stock |
|
|
|
|
|
|
|
|
|
| Accumulated Other |
|
|
|
|
|
| Total |
| |||||||
|
| Shares |
|
| Amount |
|
| Additional Paid-in-Capital |
|
| Noncontrolling Interest |
|
| Comprehensive Income (loss) |
|
| Accumulated Deficit |
|
| Stockholders' Equity |
| |||||||
Balance, January 1, 2019 |
|
| 14,216,328 |
|
| $ | 1,422 |
|
| $ | 27,424,113 |
|
| $ | 500 |
|
| $ | 1,142 |
|
| $ | (854,855 | ) |
| $ | 26,572,322 |
|
Stock-based compensation |
|
| - |
|
|
| - |
|
|
| 325,283 |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 325,283 |
|
Exercise of stock options, RSU's and Warrants |
|
| 281,319 |
|
|
| 28 |
|
|
| 21,121 |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 21,149 |
|
Relative fair value of warrants issued with notes payable and notes payable to related parties |
|
| - |
|
|
| - |
|
|
| 60,158 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 60,158 |
|
Taxes paid on net issuance of employee stock options |
|
|
|
|
|
|
|
|
|
| (112,879 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| (112,879 | ) |
Currency translation adjustment |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 1,934 |
|
|
| - |
|
|
| 1,934 |
|
Net loss |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| (2,539,363 | ) |
|
| (2,539,363 | ) |
Balance, June 30, 2019 |
|
| 14,497,647 |
|
| $ | 1,450 |
|
| $ | 27,717,796 |
|
| $ | 500 |
|
| $ | 3,076 |
|
| $ | (3,394,218 | ) |
| $ | 24,328,604 |
|
Stock-based compensation |
|
| - |
|
|
| - |
|
|
| 164,857 |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 164,857 |
|
Exercise of stock options, RSU's and Warrants |
|
| 48,981 |
|
|
| 5 |
|
|
| 7,995 |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 8,000 |
|
Taxes paid on net issuance of employee stock options |
|
| - |
|
|
| - |
|
|
| (19,138 | ) |
|
| - |
|
|
| - |
|
|
| - |
|
|
| (19,138 | ) |
Proceeds from issuance of stock, net of issuance costs of $212,566 |
|
| 1,554,832 |
|
|
| 155 |
|
|
| 2,487,993 |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 2,488,148 |
|
Currency translation adjustment |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| (122,220 | ) |
|
| - |
|
|
| (122,220 | ) |
Gain on forward contract |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 53,904 |
|
|
| - |
|
|
| 53,904 |
|
Net income |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 544,901 |
|
|
| 544,901 |
|
Balance, September 30, 2019 |
|
| 16,101,460 |
|
| $ | 1,610 |
|
| $ | 30,359,503 |
|
| $ | 500 |
|
| $ | (65,240 | ) |
| $ | (2,849,317 | ) |
| $ | 27,447,056 |
|
See accompanying notes to consolidated financial statements
7
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
| For the Nine Months Ended September 30, |
| |||||
|
| 2020 |
|
| 2019 |
| ||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net loss attributable to common stockholders |
| $ | (250,404 | ) |
| $ | (1,994,461 | ) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: |
|
|
|
|
|
|
|
|
Deferred benefit for income taxes |
|
| (910,959 | ) |
|
| (275,949 | ) |
Loss on foreign currency transactions |
|
| - |
|
|
| 18,647 |
|
Gain on disposal of property and equipment |
|
| (1,542 | ) |
|
| (89,168 | ) |
Provision for bad debt |
|
| 10,950 |
|
|
| 495 |
|
Impairment of goodwill |
|
| - |
|
|
| 1,697,394 |
|
Warranty reserves |
|
| (723 | ) |
|
| 3,982 |
|
Amortization of deferred gain |
|
| (53,838 | ) |
|
| (45,316 | ) |
Depreciation |
|
| 688,727 |
|
|
| 430,347 |
|
Amortization of intangibles |
|
| 520,035 |
|
|
| 809,540 |
|
Inventory reserves |
|
| 382,472 |
|
|
| 191,012 |
|
Amortization of debt discount |
|
| 249,882 |
|
|
| 13,786 |
|
Stock-based compensation expense |
|
| 503,419 |
|
|
| 490,140 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
| 1,971,324 |
|
|
| 1,220,504 |
|
Inventories |
|
| (2,872,108 | ) |
|
| (1,664,165 | ) |
Prepaid expenses and other current assets |
|
| (294,475 | ) |
|
| (106,598 | ) |
Accounts payable |
|
| (484,327 | ) |
|
| (60,607 | ) |
Accrued expenses and other liabilities |
|
| (843,823 | ) |
|
| (251,236 | ) |
Net cash (used in) provided by operating activities |
|
| (1,385,390 | ) |
|
| 388,347 |
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Purchases of property and equipment, including capitalization of labor costs for test equipment and ERP |
|
| (664,385 | ) |
|
| (2,061,762 | ) |
Proceeds from sales of property and equipment |
|
| 1,542 |
|
|
| 1,050 |
|
Net cash used in investing activities |
|
| (662,843 | ) |
|
| (2,060,712 | ) |
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Proceeds from issuance of stock and stock options exercised |
|
| 124,467 |
|
|
| 29,149 |
|
Payment of payroll taxes on net issuance of employee stock options |
|
| (684,446 | ) |
|
| (132,017 | ) |
Proceeds from issuance of common stock |
|
| - |
|