10-Q 1 tnlx-20230930.htm FORM 10-Q Form 10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

FORM 10-Q

 

[X]       QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023

 

Commission file number 1-2257

 

TRANS-LUX CORPORATION

(Exact name of registrant as specified in its charter)

 

Delaware

 

13-1394750

(State or other jurisdiction of

 

(I.R.S. Employer

 incorporation or organization)

 

Identification No.)

 

 

 

254 West 31st Street, 12th Floor, New York, New York

 

10001

(Address of principal executive offices)

 

(Zip code)

 

 

 

 

(800) 243-5544

 

(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     X      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 file such files).  Yes     X      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 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      X   

Emerging growth company ___

Smaller reporting company      X   

 

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     X                                 

 

Indicate the number of shares outstanding of each of the issuer’s classes of Common Stock, as of the latest practicable date.

 

Date  

 

Class

 

Shares Outstanding

11/8/23

 

Common Stock - $0.001 Par Value

 

13,496,276

  


 

TRANS-LUX CORPORATION AND SUBSIDIARIES

 

Table of Contents

 

 

 

Page No.

Part I - Financial Information (unaudited)

 

 

 

 

Item 1.

Condensed Consolidated Balance Sheets – September 30, 2023 and December 31, 2022 (see Note 1)

1

 

 

 

 

Condensed Consolidated Statements of Operations –  Three and Nine Months Ended September 30, 2023 and 2022

2

 

 

 

 

Condensed Consolidated Statements of Comprehensive Loss (Income) –  Three and Nine Months Ended September 30, 2023 and 2022

2

 

 

 

 

Condensed Consolidated Statements of Changes in Stockholders’ Deficit – Three and Nine Months Ended September 30, 2023 and 2022

3

 

 

 

 

Condensed Consolidated Statements of Cash Flows –  Nine Months Ended September 30, 2023 and 2022

4

 

 

 

 

Notes to Condensed Consolidated Financial Statements

5

 

 

 

         Item 2.

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

19

 

 

 

        Item 3.

Quantitative and Qualitative Disclosures about Market Risk

25

 

 

 

         Item 4.

Controls and Procedures

25

 

 

 

Part II - Other Information

 

 

 

 

          Item 1.

Legal Proceedings

26

 

 

 

          Item 1A.

Risk Factors

26

 

 

 

         Item 2.

Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities

26

 

 

 

          Item 3.

Defaults upon Senior Securities

27

 

 

 

          Item 4.

Mine Safety Disclosures

27

 

 

 

         Item 5.

Other Information

27

 

 

 

          Item 6.

Exhibits

27

 

 

 

Signatures

 

28

 

 

 

Exhibits

 

 

 


Table of Contents

 

Part I - Financial Information (unaudited)

 

Item 1.

 TRANS-LUX CORPORATION AND SUBSIDIARIES 

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)

 

 

In thousands, except share data 

September 30

2023

 

December 31

2022

 

ASSETS

 

 

 

 

 

Current assets:

         

Cash and cash equivalents

$

6

 

$

48

Receivables, net

 

2,443

   

2,832

Inventories

 

3,006

 

 

2,722

Prepaids and other assets

 

411

   

1,071

Total current assets

 

5,866

 

 

6,673

Long-term assets:

         

Rental equipment, net

 

139

 

 

225

Property, plant and equipment, net

 

1,800

   

1,715

Right of use assets

 

2,046

 

 

765

Restricted cash

 

200

   

-

Other assets

 

34

 

 

34

Total long-term assets

 

4,219

 

 

2,739

TOTAL ASSETS

$

10,085

 

$

9,412

LIABILITIES AND STOCKHOLDERS' DEFICIT

         

Current liabilities:

 

 

 

 

 

Accounts payable

$

8,206

 

$

6,339

Accrued liabilities

 

4,885

 

 

4,279

Current portion of long-term debt

 

3,768

   

3,768

Current lease liabilities

 

471

 

 

393

Customer deposits

 

1,084

   

1,183

Total current liabilities

 

18,414

 

 

15,962

Long-term liabilities:

         

Long-term debt, less current portion

 

500

 

 

500

Long-term lease liabilities

 

1,600

   

412

Deferred pension liability and other

 

2,421

 

 

2,862

Total long-term liabilities

 

4,521

 

 

3,774

Total liabilities

 

22,935

 

 

19,736

Stockholders' deficit:

         

Preferred Stock

  -     -

Preferred Stock Series A - $20 stated value -  416,500 shares authorized;

   shares issued and outstanding: 0 in 2023 and 2022

 

 

-

 

 

 

-

 

 

 

Preferred Stock Series B - $200 stated value -  51,000 shares authorized;

   shares issued and outstanding: 0 in 2023 and 2022

 

-

   

-

     

Common Stock - $0.001 par value -  30,000,000 shares authorized;

   shares issued: 13,524,116 in 2023 and 13,474,116 in 2022

   shares outstanding: 13,496,276 in 2023 and 13,446,276 in 2022

 

 

 

13

 

 

 

 

13

 

 

 

 

 

 

Additional paid-in-capital

 

41,508

   

41,444

Accumulated deficit

 

(45,239)

 

 

(42,652)

Accumulated other comprehensive loss

 

(6,069)

   

(6,066)

Treasury stock - at cost - 27,840 common shares in 2023 and 2022

 

(3,063)

 

 

(3,063)

Total stockholders' deficit

 

(12,850)

 

 

(10,324)

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT

$

10,085

 

$

9,412

 

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


1


Table of Contents

 

TRANS-LUX CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

 

3 Months Ended

September 30

 

9 Months Ended

September 30

In thousands, except per share data

2023

2022

2023

2022

Revenues:

 

 

 

 

 

 

 

 

 

 

 

Digital product sales

$

3,933

$

4,510

$

10,821

$

14,763

Digital product lease and maintenance

 

209

 

 

279

 

 

656

 

 

993

Total revenues

 

4,142

 

 

4,789

 

11,477

 

 

15,756

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues:

Cost of digital product sales

 

3,698

 

 

4,364

 

 

10,118

 

 

13,122

Cost of digital product lease and maintenance

 

111

 

 

124

 

331

 

 

431

Total cost of revenues

 

3,809

 

 

4,488

 

 

10,449

 

 

13,553

Gross income

 

333

 

 

301

 

 

1,028

 

 

2,203

General and administrative expenses

 

(995)

 

 

(884)

 

(2,889)

 

 

(2,468)

Operating loss

 

(662)

 

 

(583)

 

 

(1,861)

 

 

(265)

Interest expense, net

(183)

(110)

(521)

(382)

Gain on foreign currency remeasurement

 

60

 

 

181

 

 

1

 

 

241

Gain on forgiveness of PPP loan

-

-

-

824

Pension (expense) benefit

 

(62)

 

 

53

 

 

(187)

 

 

158

(Loss) income before income taxes

(847)

 

 

(459)

(2,568)

 

 

576

Income tax expense

 

(7)

 

 

(7)

 

 

(19)

 

 

(19)

Net (loss) income

$

(854)

 

$

(466)

$

(2,587)

 

$

557

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

 

TRANS-LUX CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(unaudited)

 

3 Months Ended

September 30

9 Months Ended

September 30

 

 

In thousands

2023

2022

2023

2022

Net (loss) income

$

(854)

 

$

(466)

 

$

(2,587)

 

$

557

Other comprehensive (loss) income:

Unrealized foreign currency translation loss

 

(57)

 

 

(168)

 

 

(3)

 

 

(212)

Total other comprehensive loss, net of tax

 

(57)

 

 

(168)

 

(3)

 

 

(212)

Comprehensive (loss) income

$

(911)

 

$

(634)

 

$

(2,590)

 

$

345

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

 

2


 

TRANS-LUX CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT

(unaudited)

 

                                           

Accumulated

Other

Comprehensive

Loss

       

Total

Stock-

holders'

Deficit

 

Preferred Stock

           

Add'l

Paid-in

Capital

               
 

Series A

 

Series B

 

Common Stock

   

Accumulated

Deficit

   

Treasury

Stock

 

In thousands, except share data

Shares

 

Amt

 

Shares

 

Amt

 

Shares

 

Amt

 

 

 

 

 

For the 9 months ended September 30, 2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance January 1, 2023

-

 

$

-

 

-

 

$

-

 

13,474,116

 

$

13

 

$

41,444

 

$

(42,652)

 

$

(6,066)

 

$

(3,063)

 

$

(10,324)

Net loss

-

 

 

-

 

-

 

 

-

 

-

 

 

-

 

 

-

 

 

(2,587)

 

 

-

 

 

-

 

 

(2,587)

Stock issued to directors/officers

-

   

-

 

-

   

-

 

50,000

   

-

   

26

   

-

   

-

   

-

   

26

Issuance of options

-

 

 

-

 

-

 

 

-

 

-

 

 

-

 

 

38

 

 

-

 

 

-

 

 

-

 

 

38

Other comprehensive loss, net of tax:

                                                         

Unrealized foreign currency translation loss

-

 

 

-

 

-

 

 

-

 

-

 

 

-

 

 

-

 

 

-

 

 

(3)

 

 

-

 

 

(3)

Balance September 30, 2023

-

 

$

-

 

-

 

$

-

 

13,524,116

 

$

13

 

$

41,508

 

$

(45,239)

 

$

(6,069)

 

$

(3,063)

 

$

(12,850)

 

For the 3 months ended September 30, 2023

                                                         

Balance July 1, 2023

-

 

$

-

 

-

 

$

-

 

13,524,116

 

$

13

 

$

41,508

 

$

(44,385)

 

$

(6,012)

 

$

(3,063)

 

$

(11,939)

Net loss

-

   

-

 

-

   

-

 

-

   

-

   

-

   

(854)

   

-

   

-

   

(854)

Other comprehensive loss, net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized foreign currency translation loss

-

 

 

-

 

-

 

 

-

 

-

 

 

-

 

 

-

 

 

-

 

 

(57)

 

 

-

 

 

(57)

Balance September 30, 2023

-

 

$

-

 

-

 

$

-

 

13,524,116

 

$

13

 

$

41,508

 

$

(45,239)

 

$

(6,069)

 

$

(3,063)

 

$

(12,850)

 

For the 9 months ended September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance January 1, 2022

-

 

$

-

 

-

 

$

-

 

13,474,116

 

$

13

 

$

41,330

 

$

(42,975)

 

$

(6,253)

 

$

(3,063)

 

$

(10,948)

Net income

-

 

 

-

 

-

 

 

-

 

-

 

 

-

 

 

-

 

 

557

 

 

-

 

 

-

 

 

557

Issuance of options

-

   

-

 

-

   

-

 

-

   

-

   

76

   

-

   

-

   

-

   

76

Other comprehensive loss, net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized foreign currency translation loss

-

 

 

-

 

-

 

 

-

 

-

 

 

-

 

 

-

 

 

-

 

 

(212)

 

 

-

 

 

(212)

Balance September 30, 2022

-

 

$

-

 

-

 

$

-

 

13,474,116

 

$

13

 

$

41,406

 

$

(42,418)

 

$

(6,465)

 

$

(3,063)

 

$

(10,527)

 

For the 3 months ended September 30, 2022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance July 1, 2022

-

 

$

-

 

-

   

-

 

13,474,116

 

$

13

 

$

41,368

 

$

(41,952)

 

$

(6,297)

 

$

(3,063)

 

$

(9,931)

Net loss

-

 

 

-

 

-

 

 

-

 

-

 

 

-

 

 

-

 

 

(466)

 

 

-

 

 

-

 

 

(466)

Issuance of options

-

   

-

 

-

   

-

 

-

   

-

   

38

   

-

   

-

   

-

   

38

Other comprehensive loss, net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized foreign currency translation loss

-

 

 

-

 

-

 

 

-

 

-

 

 

-

 

 

-

 

 

-

 

 

(168)

 

 

-

 

 

(168)

Balance September 30, 2022

-

 

$

-

 

-

 

$

-

 

13,474,116

 

$

13

 

$

41,406

 

$

(42,418)

 

$

(6,465)

 

$

(3,063)

 

$

(10,527)

 

 

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

 

3


Table of Contents

 

TRANS-LUX CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

 

 

In thousands

9 Months Ended

September 30

2023

 

2022

Cash flows from operating activities

 

 

 

 

 

Net (loss) income

$

(2,587)

$

557

Adjustment to reconcile net (loss) income to net cash
    provided by (used in) operating activities:

 

 

 

 

 

Depreciation and amortization

278

328

Amortization of right of use assets

 

320

 

 

295

Gain on forgiveness of PPP loan

-

(824)

Amortization of deferred financing fees and debt discount

 

-

 

 

52

Loss on foreign currency remeasurement

(1)

(241)

Issuance of common stock for compensation

 

26

 

 

-

Amortization of stock options

38

76

Allowance for credit losses

 

(36)

 

 

-

Changes in operating assets and liabilities:

Accounts receivable

 

425

 

 

(1,019)

Inventories

(284)

(3,517)

Prepaids and other assets

 

660

 

 

247

Accounts payable

1,867

766

Accrued liabilities

 

606

 

 

600

Operating lease liabilities

(335)

(291)

Customer deposits

 

(99)

 

 

1,133

Deferred pension liability and other

 

(441)

(158)

Net cash provided by (used in) operating activities

 

437

 

 

(1,996)

Cash flows from investing activities

Purchases of property, plant and equipment

 

(277)

 

 

(18)

Net cash used in investing activities

 

(277)

 

 

(18)

Cash flows from financing activities

 

 

 

 

 

Proceeds from long-term debt

200

1,510

Payments of long-term debt

 

(200)

 

 

-

Net cash provided by financing activities

 

-

 

 

1,510

Effect of exchange rate changes

 

(2)

 

 

-

Net increase (decrease) in cash, cash equivalents and restricted cash

158

(504)

Cash, cash equivalents and restricted cash at beginning of year

 

48

 

 

524

Cash, cash equivalents and restricted cash at end of period

$

206

 

$

20

Supplemental disclosure of cash flow information:

 

 

 

 

 

Interest paid

$

23

$

-

Income taxes paid

 

10

 

 

10

Reconciliation of cash, cash equivalents and restricted cash to amounts
    reported in the Condensed Consolidated Balance Sheets at end of period:

Current assets

 

 

 

 

 

Cash and cash equivalents

$

6

$

20

Long-term assets

 

 

 

 

 

Restricted cash

 

200

-

Cash, cash equivalents and restricted cash at end of period

$

206

 

$

20

 

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

 

4


Table of Contents

 

TRANS-LUX CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2023

(unaudited)

 

 

Note 1 Basis of Presentation

 

As used in this report, “Trans-Lux,” the “Company,” “we,” “us,” and “our” refer to Trans-Lux Corporation and its subsidiaries.

 

Financial information included herein is unaudited, however, such information reflects all adjustments (of a normal and recurring nature), which are, in the opinion of management, necessary for the fair presentation of the Condensed Consolidated Financial Statements for the interim periods. The results for the interim periods are not necessarily indicative of the results to be expected for the full year.  The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (the “SEC”) and therefore do not include all information and footnote disclosures required under accounting principles generally accepted in the United States of America (“GAAP”).  The Condensed Consolidated Financial Statements included herein should be read in conjunction with the Consolidated Financial Statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.  The Condensed Consolidated Balance Sheet at December 31, 2022 is derived from the December 31, 2022 audited financial statements.

 

Critical Accounting Policies and Estimates

 

Accounting policies used in the preparation of our financial statements may involve the use of management judgments and estimates.  Certain of our accounting policies are considered critical as they are both important to the portrayal of our financial statements and require significant or complex judgments on the part of management.  Our judgments and estimates are based on experience and assumptions that we believe are reasonable under the circumstances.  Further, we evaluate our judgments and estimates from time to time as circumstances change.  Actual financial results based on judgments or estimates may vary under different assumptions or circumstances.  Our critical accounting policies are discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022, filed with the Securities and Exchange Commission on March 31, 2023.

 

Restricted cash:  The Company classifies cash as restricted when the cash is unavailable for withdrawal or usage for general operations.  Restrictions may include legally restricted deposits, contracts entered into with others, or the Company’s statements of intention with regard to particular deposits.  As of September 30, 2023, the Company had $200,000 of Restricted cash.  The Company had no Restricted cash as of December 31, 2022.

 

5


Table of Contents

 

The following new accounting pronouncements were adopted in 2023:

 

In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.”  ASU 2016-13 requires that entities use a new forward looking “expected loss” model that generally will result in the earlier recognition of allowance for credit losses.  The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount.  ASU No. 2016-13 is effective for annual reporting periods, including interim reporting periods within those periods, beginning after December 15, 2022.  The Company adopted the new guidance on January 1, 2023 and determined it did not have a material impact on its consolidated financial statements.

 

The following new accounting pronouncements, and related impacts on adoption, are being evaluated by the Company:

 

None.

 

Note 2 Liquidity and Going Concern

 

A fundamental principle of the preparation of financial statements in accordance with GAAP is the assumption that an entity will continue in existence as a going concern, which contemplates continuity of operations and the realization of assets and settlement of liabilities occurring in the ordinary course of business.  This principle is applicable to all entities except for entities in liquidation or entities for which liquidation appears imminent.  In accordance with this requirement, the Company has prepared its accompanying Condensed Consolidated Financial Statements assuming the Company will continue as a going concern.

 

The Company has incurred recurring operating losses and continues to have a working capital deficiency including being in default of several debt obligations.  The Company recorded a loss of $2.6 million in the nine months ended September 30, 2023, and had a working capital deficiency of $12.5 million as of September 30, 2023.  In addition, the Company’s obligations under the Loan Agreement mature on December 31, 2023.  As of December 31, 2022, the Company had a working capital deficiency of $9.3 million.  The Company is dependent on future operating performance in order to generate sufficient cash flows in order to continue to run its businesses.  Future operating performance is dependent on general economic conditions, as well as financial, competitive and other factors beyond our control, including the impact of the current economic environment, the spread of major epidemics (including coronavirus), increases in interest rates and other related uncertainties such as government-imposed travel restrictions, interruptions to supply chains, extended shut down of businesses and the impact of inflation.  In order to more effectively manage its cash resources, the Company has, from time to time, increased the timetable of its payment of some of its payables, which delayed certain product deliveries from our vendors, which in turn delayed certain deliveries to our customers.

 

If we are unable to (i) obtain additional liquidity for working capital, (ii) make the required minimum funding contributions to the defined benefit pension plan, (iii) make the required principal and interest payments on our outstanding 8¼% Limited convertible senior subordinated notes due 2012 (the “Notes”) and 9½% Subordinated debentures due 2012 (the “Debentures”), (iv) repay our obligations under our Loan Agreement (hereinafter defined) with Unilumin and/or (v) repay our obligations under our loan agreements with Carlisle, there would be a significant adverse impact on our financial position and operating results.  The Company continually evaluates the need and availability of long-term capital in order to meet its cash requirements and fund potential new opportunities.  Due to the above, there is substantial doubt as to whether we will have adequate liquidity, including access to the debt and equity capital markets, to continue as a going concern over the next 12 months from the date of issuance of this Form 10-Q.

 

6


Table of Contents

 

Note 3 Revenue Recognition

 

We recognize revenue in accordance with two different accounting standards: 1) Accounting Standards Codification (“ASC”) Topic 606 and 2) ASC Topic 842.  Under Topic 606, revenue from contracts with customers is measured based on the consideration specified in the contract with the customer, and excludes any sales incentives and amounts collected on behalf of third parties.  A performance obligation is a promise in a contract to transfer a distinct good or service to a customer, and is the unit of account under Topic 606.  Our contracts with customers generally do not include multiple performance obligations.  We recognize revenue when we satisfy a performance obligation by transferring control over a product or service to a customer.  The amount of revenue recognized reflects the consideration we expect to be entitled to in exchange for such products or services.  None of the Company’s contracts contained a significant financing component as of September 30, 2023.  Revenue from the Company’s digital product and maintenance service is recognized ratably over the lease term in accordance with ASC Topic 842.

 

Disaggregated Revenues

 

The following table represents a disaggregation of revenue from contracts with customers for the three and nine months ended September 30, 2023 and 2022, along with the reportable segment for each category:

 

 

Three months ended

Nine months ended

In thousands

September 30, 2023

September 30, 2022

September 30, 2023

September 30, 2022

Digital product sales:

 

 

 

 

 

 

 

 

 

 

 

Catalog and small customized products

$

3,933

$

4,510

$

10,821

$

14,763

Large customized products

 

-

 

 

-

 

 

-

 

 

-

Subtotal

 

3,933

 

 

4,510

 

 

10,821

 

 

14,763

Digital product lease and maintenance:

 

 

 

 

 

 

 

 

 

Operating leases

113

135

361

446

Maintenance agreements

 

96

 

 

144

 

 

295

 

 

547

Subtotal

 

209

 

 

279

 

 

656

 

 

993

Total

$

4,142

 

$

4,789

 

$

11,477

 

$

15,756

 

The Company has two primary revenue streams which are Digital product sales and Digital product lease and maintenance.

 

7


Table of Contents


Digital Product Sales

 

The Company recognizes net revenue on digital product sales to its distribution partners and to end users related to digital display solutions and fixed digit scoreboards.  For the Company’s catalog products, revenue is generally recognized when the customer obtains control of the Company’s product, which occurs at a point in time, and may be upon shipment or upon delivery based on the contractual shipping terms of a contract.  For the Company’s customized products, revenue is either recognized at a point in time or over time depending on the length of the contract.  For those customized product contracts that are smaller in size, revenue is generally recognized when the customer obtains control of the Company’s product, which occurs at a point in time, and may be upon shipment or upon delivery based on the contractual shipping terms of a contract.  For those customized product contracts that are larger in size, revenue is recognized over time based on incurred costs as compared to projected costs using the input method, as this best reflects the Company’s progress in transferring control of the customized product to the customer.  The Company may also contract with a customer to perform installation services of digital display products.  Similar to the larger customized products, the Company recognizes the revenue associated with installation services using the input method, whereby the basis is the total contract costs incurred to date compared to the total expected costs to be incurred.

 

Revenue on sales to distribution partners are recorded net of prompt-pay discounts, if offered, and other deductions.  To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing the most likely amount method to which the Company expects to be entitled.  In the case of prompt-pay discounts, there are only two possible outcomes: either the customer pays on-time or does not.  Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur.  Determination of whether to include estimated amounts in the transaction price are based largely on an assessment of the Company’s anticipated performance and all information (historical, current and forecasted) that is reasonably available.  The Company believes that the estimates it has established are reasonable based upon current facts and circumstances.  Applying different judgments to the same facts and circumstances could result in the estimated amounts to vary.  The Company offers an assurance-type warranty that the digital display products will conform to the published specifications.  Returns may only be made subject to this warranty and not for convenience.

 

Digital Product Lease and Maintenance

 

Digital product lease revenues represent revenues from leasing equipment that we own.  We do not generally provide an option for the lessee to purchase the rented equipment at the end of the lease and do not generate material revenue from sales of equipment under such options.  Our lease revenues do not include material amounts of variable payments.  Digital product maintenance revenues represent revenues from maintenance agreements for equipment that we do not own.  Lease and maintenance contracts generally run for periods of one month to 10 years.  A contract entered into by the Company with a customer may contain both lease and maintenance services (either or both services may be agreed upon based on the individual customer contract).  Maintenance services may consist of providing labor, parts and software maintenance as may be required to maintain the customer’s equipment in proper operating condition at the customer’s service location.  The Company concluded the lease and maintenance services represent a series of distinct services and the most representative method for measuring progress towards satisfying the performance obligation of these services is the input method.  Additionally, maintenance services require the Company to “stand ready” to provide support to the customer when and if needed.  As there is no discernable pattern of efforts other than evenly over the lease and maintenance terms, the Company will recognize revenue straight-line over the lease and maintenance terms of service.

 

8


Table of Contents

 

The Company has an enforceable right to payment for performance completed to date, as evidenced by the requirement that the customer pay upfront for each month of services. Lease and maintenance service amounts billed ahead of revenue recognition are recorded in deferred revenue and are included in accrued liabilities in the Condensed Consolidated Financial Statements.

 

Revenues from equipment lease and maintenance contracts are recognized during the term of the respective agreements.  At September 30, 2023, the future minimum lease payments due to the Company under operating leases that expire at varying dates through 2030 for its rental equipment and maintenance contracts, assuming no renewals of existing leases or any new leases, aggregating $1,281,000 are as follows:  $106,000 – remainder of 2023, $391,000 – 2024, $305,000 – 2025, $235,000 – 2026, $176,000 – 2027 and $68,000 thereafter.

 

Contract Balances with Customers

 

Contract assets primarily relate to rights to consideration for goods or services transferred to the customer when the right is conditional on something other than the passage of time.  The contract assets are transferred to the receivables when the rights become unconditional.  As of September 30, 2023 and December 31, 2022, the Company had no contract assets.  The contract liabilities primarily relate to the advance consideration received from customers for contracts prior to the transfer of control to the customer and therefore revenue is recognized on completion of delivery.  Contract liabilities are classified as deferred revenue by the Company and are included in customer deposits and accrued liabilities in the Condensed Consolidated Balance Sheets.

 

The following table presents the balances in the Company’s receivables and contract liabilities with customers:

 

In thousands

September 30, 2023

 

December 31, 2022

Gross receivables

$

2,588

 

$

3,123

Allowance for credit loss

145

 

 

291

Net receivables

2,443

 

 

2,832

Contract liabilities

1,147

 

 

1,229

 

9


Table of Contents


During the three and nine months ended September 30, 2023 and 2022, the Company recognized the following revenues as a result of changes in the contract asset and the contract liability balances in the respective periods:

 

 

Three months ended September 30

 

Nine months ended September 30

In thousands

2023

 

2022

 

2023

 

2022

Revenue recognized in the period from:

                     

Amounts included in the contract liability at the
    beginning of the period

$

382

 

$

335

 

$

1,128

 

$

1,895

Performance obligations satisfied in previous periods
  (for example, due to changes in transaction price)

 

-

 

 

-

 

 

-

 

 

-

 

Transaction Price Allocated to Future Performance Obligations

 

As of September 30, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations for digital product sales was $2.6 million and digital product lease and maintenance was $1.3 million.  

 

The Company expects to recognize revenue on approximately 78%, 15% and 7% of the remaining performance obligations over the next 12 months, 13 to 36 months and 37 or more months, respectively.

 

Costs to Obtain or Fulfill a Customer Contract

 

The Company capitalizes incremental costs of obtaining customer contracts.  Capitalized commissions are amortized based on the transfer of the products or services to which the assets relate.  Applying the practical expedient, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less.  These costs are included in General and administrative expenses.

 

The Company accounts for shipping and handling activities related to contracts with customers as costs to fulfill the promise to transfer the associated products.  When shipping and handling costs are incurred after a customer obtains control of the products, the Company also has elected to account for these as costs to fulfill the promise and not as a separate performance obligation.  Shipping and handling costs associated with the distribution of finished products to customers are recorded in costs of goods sold and are recognized when the related finished product is shipped to the customer.

 

Note 4 – Inventories

 

Inventories consist of the following:

 

In thousands

September 30

2023

December 31 

2022 

 

Raw materials

$

2,219

 

$

2,535

Work-in-progress

-

-

Finished goods

 

787

 

 

187

 

$

3,006

 

$

2,722

 

10


Table of Contents

 

Note 5 – Rental Equipment, net

 

Rental equipment consists of the following:

 

In thousands

 

September 30
2023

 

 

December 31
2022

Rental equipment

$

2,077

 

$

2,077

Less accumulated depreciation

1,938

 

 

1,852

Net rental equipment

$

139

 

$

225

 

Depreciation expense for rental equipment for the nine months ended September 30, 2023 and 2022 was $86,000 and $139,000, respectively.  Depreciation expense for rental equipment for the three months ended September 30, 2023 and 2022 was $29,000 and $46,000, respectively.

 

Note 6 – Property, Plant and Equipment, net

 

Property, plant and equipment consists of the following:

 

In thousands

 

September 30
2023

 

 

December 31
2022

Machinery, fixtures and equipment

$

3,133

 

$

2,856

Leaseholds and improvements

 

23

 

 

23

 

 

3,156

 

 

2,879

Less accumulated depreciation

 

1,356

 

 

1,164

Net property, plant and equipment

$

1,800

 

$

1,715

 

Machinery, fixtures and equipment having a net book value of $1.8 million and $1.7 million at September 30, 2023 and December 31, 2022, respectively, were pledged as collateral under various financing agreements.

 

Depreciation expense for property, plant and equipment for the nine months ended September 30, 2023 and 2022 was $192,000 and $189,000, respectively.  Depreciation expense for property, plant and equipment for the three months ended September 30, 2023 and 2022 was $67,000 and $63,000, respectively.

 

11


Table of Contents


Note 7 – Long-Term Debt

 

Long-term debt consists of the following:

 

In thousands

September 30
2023

December 31

2022

 

8¼% Limited convertible senior subordinated notes due 2012

$

302

 

$

302

9½% Subordinated debentures due 2012

220

220

Revolving credit line – related party

 

2,246

 

 

2,246

Term loans – related party

1,000

1,000

Term loans

 

500

 

 

500

Total debt

 

4,268

 

 

4,268

Less deferred financing costs and debt discount

 

-

 

 

-

Net debt

 

4,268

 

 

4,268

Less portion due within one year

 

3,768

 

 

3,768

Net long-term debt

$

500

 

$

500

 

On September 16, 2019, the Company entered into a loan agreement (the “Loan Agreement”) with MidCap, which was subsequently modified.  On July 30, 2021, MidCap assigned the loan to Unilumin.  On March 20, 2023, the Company and Unilumin entered into a modification agreement to the Loan Agreement effective December 31, 2022.  The Loan Agreement matures on December 31, 2023.  The Loan Agreement allows the Company to borrow up to an aggregate of $2.2 million at an interest rate of the Prime Rate as published in the Wall Street Journal plus 4.75% (13.25% at September 30, 2023) on a revolving credit loan based on accounts receivable, inventory and equipment for general working capital purposes.  As of September 30, 2023, the balance outstanding under the Loan Agreement was $2.2 million. The Loan Agreement is secured by substantially all of the Company’s assets.

 

The Company entered into a loan note (the “SBA Loan Note”) with the Small Business Administration of the United States of America (“SBA”) as lender (“SBA Lender”) under their Economic Injury Disaster Loan (“EIDL”) program, dated as of December 10, 2021.  Under the SBA Loan Note, the Company borrowed $500,000 from SBA Lender under the EIDL Program.  As of September 30, 2023, $500,000 was outstanding.  The loan matures on December 10, 2051 and carries an interest rate of 3.75%.  As of September 30, 2023 and December 31, 2022, the Company had accrued $34,000 and $20,000, respectively, of interest related to the SBA Loan Note, which is included in Accrued liabilities in the Consolidated Balance Sheets.

 

On April 23, 2020, the Company entered into a loan note (the “CARES Loan Note”) with Enterprise Bank and Trust (“CARES Lender”) as lender under the CARES Act of the SBA, dated as of April 20, 2020.  Under the CARES Loan Note, the Company borrowed $811,000 from CARES Lender under the Paycheck Protection Program (“PPP”) included in the SBA’s CARES Act.  The CARES Loan Note proceeds were forgivable as long as the Company uses the loan proceeds for eligible purposes including payroll costs, including salaries, commissions, and similar compensation, group health care benefits, and paid leave; rent; utilities; and maintains its payroll levels.  In January 2022, the loan was forgiven in full and the payments that had previously been paid were refunded.  Refund proceeds in the amount of $453,000 are included in proceeds from long-term debt in the accompanying condensed consolidated statements of Cash Flows for the nine months ended September 30, 2022.

 

12


Table of Contents

 

The Company has a $500,000 loan from Carlisle Investments Inc. (“Carlisle”) at a fixed interest rate of 12.00%, which matured on April 27, 2019 with a bullet payment of all principal due at such time.  Interest is payable monthly.  Carlisle had agreed to not demand payment on the loan through at least December 31, 2020, and has not made any such demands on principal or interest as of the date of this filing.  As of September 30, 2023, the entire amount was outstanding and is included in current portion of long-term debt in the Consolidated Balance Sheets.  As of September 30, 2023 and December 31, 2022, the Company had accrued $345,000 and $300,000, respectively, of interest related to this loan, which are included in accrued liabilities in the Condensed Consolidated Balance Sheets. Marco Elser, a director of the Company, exercises voting and dispositive power as investment manager of Carlisle.

 

The Company has an additional $500,000 loan from Carlisle at a fixed interest rate of 12.00%, which matured on December 10, 2017 with a bullet payment of all principal due at such time (the “Second Carlisle Agreement”).  Interest is payable monthly.  Carlisle had agreed to not demand payment on the loan through at least December 31, 2020, and has not made any such demands on principal or interest as of the date of this filing.  As of September 30, 2023, the entire amount was outstanding and is included in current portion of long-term debt Consolidated Balance Sheets.  As of September 30, 2023 and December 31, 2022, the Company had accrued $345,000 and $300,000, respectively, of interest related to this loan, which are included in accrued liabilities in the Condensed Consolidated Balance Sheets.  Under the Second Carlisle Agreement, the Company granted a security interest to Carlisle in accounts receivable, materials and intangibles relating to a certain purchase order for equipment issued in April 2017.

 

As of September 30, 2023 and December 31, 2022, the Company had outstanding $302,000 of Notes.  The Notes matured as of March 1, 2012 and are currently in default.  As of September 30, 2023 and December 31, 2022, the Company had accrued $351,000 and $332,000, respectively, of interest related to the Notes, which is included in Accrued liabilities in the Consolidated Balance Sheets.  The trustee, by notice to the Company, or the holders of 25% of the principal amount of the Notes outstanding, by notice to the Company and the trustee, may declare the outstanding principal plus interest due and payable immediately.

 

As of September 30, 2023 and December 31, 2022, the Company had outstanding $220,000 of Debentures.  The Debentures matured as of December 1, 2012 and are currently in default.  As of September 30, 2023 and December 31, 2022, the Company had accrued $289,000 and $273,000, respectively, of interest related to the Debentures, which is included in Accrued liabilities in the Consolidated Balance Sheets.  The trustee, by notice to the Company, or the holders of 25% of the principal amount of the Debentures outstanding, by notice to the Company and the trustee, may declare the outstanding principal plus interest due and payable immediately.

 

Note 8 Pension Plan

 

As of December 31, 2003, the benefit service under the pension plan had been frozen and, accordingly, there is no service cost.  As of April 30, 2009, the compensation increments had been frozen and, accordingly, no additional benefits are being accrued under the pension plan.

 

13


Table of Contents

 

The following table presents the components of net periodic pension cost for the three and nine months ended September 30, 2023 and 2022:

 

 

Three months ended
September 30

Nine months ended
September 30

In thousands

2023

2022

2023

2022

Interest cost

$

134

 

$

75

 

$

402

 

$

227

Expected return on plan assets

(145)

(200)

(436)

(600)

Amortization of net actuarial loss

 

73

 

 

72

 

 

221

 

 

215

Net periodic pension expense (benefit)

$

62

 

$

(53)

 

$

187

 

$

(158)

 

As of September 30, 2023, the Company had recorded a current pension liability of $629,000, which is included in accrued liabilities in the Condensed Consolidated Balance Sheets, and a long-term pension liability of $2.4 million, which is included in deferred pension liability and other in the Condensed Consolidated Balance Sheets.  As of December 31, 2022, all pension contributions were due more than one year from the reporting date, so the Company did not record a current pension liability, and the Company had recorded a long-term pension liability of $2.9 million.  There is not expected to be a minimum required contribution in 2023.

 

Note 9  Leases

 

The Company leases administrative and manufacturing facilities through operating lease agreements. The Company has no finance leases as of September 30, 2023.  Our leases include both lease (e.g., fixed payments including rent) and non-lease components (e.g., common area or other maintenance costs). The facility leases include one or more options to renew.  The exercise of lease renewal options is typically at our sole discretion, therefore, the renewals to extend the lease terms are not included in our right of use (“ROU”) assets or lease liabilities as they are not reasonably certain of exercise.  We regularly evaluate the renewal options and, when they are reasonably certain of exercise, we include the renewal period in our lease term.  In April 2023, the Company exercised its 5-year renewal option at its Hazelwood, MO facility.  In connection with the renewal, the Company remeasured its lease liability, which increased the ROU asset and lease liability by $1.6 million on the remeasurement date.

 

Operating leases result in the recognition of ROU assets and lease liabilities on the Condensed Consolidated Balance Sheets.  ROU assets represent our right to use the leased asset for the lease term and lease liabilities represent our obligation to make lease payments.  Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term.  As most of our leases do not provide an implicit rate, we use our estimated incremental borrowing rate at the commencement date to determine the present value of lease payments.  Most real estate leases include one or more options to renew, with renewal terms that can extend the lease term from 1 to 5 years or more.  Lease expense is recognized on a straight-line basis over the lease term.  Leases with an initial term of 12 months or less are not recorded on the Condensed Consolidated Balance Sheets.  The primary leases we enter into with initial terms of 12 months or less are for equipment.

 

14


Table of Contents


Supplemental information regarding leases:

 

September 30
2023

In thousands, unless otherwise noted

Balance Sheet:

 

 

ROU assets

$

2,046

Current lease liabilities – operating

 

471

Non-current lease liabilities - operating

1,600

Total lease liabilities

 

2,071

Weighted average remaining lease term (years)

4.2

Weighted average discount rate

 

10.4%

Future minimum lease payments:

Remainder of 2023

$

99

2024

545

2025

 

560

2026

577

2027

 

451

Thereafter

 

414

Total

 

2,646

Less: Imputed interest

 

575

Total lease liabilities

 

2,071

Less: Current lease liabilities

 

471

Long-term lease liabilities

$

1,600

 

Supplemental cash flow information regarding leases:

 

In thousands

For the three months ended

September 30, 2023

For the nine months ended

September 30, 2023

 

Operating cash flow information:

 

 

 

 

 

Cash paid for amounts included in the measurement of lease liabilities

$

124

$

372

Non-cash activity:

 

 

 

 

 

ROU assets obtained in exchange for lease liabilities

 

-

 

 

1,601

 

Total operating lease expense was $355,000 and $357,000 for the nine months ended September 30, 2023 and 2022, respectively.  Total operating lease expense was $118,000 and $118,000 for the three months ended September 30, 2023 and 2022, respectively.  There was no short-term lease expense for the nine months or three months ended September 30, 2023 and 2022.

 

15


Table of Contents


Note 10 – Stockholders’ Deficit and (Loss) Income Per Share

 

The following table presents the calculation of (loss) income per share for the three and nine months ended September 30, 2023 and 2022:

 

In thousands, except per share data

Three months ended September 30

 

Nine months ended September 30

2023

 

2022

 

2023

 

2022

Numerator:

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income, as reported

$

(854)

 

$

(466)

 

$

(2,587)

 

$

557

Denominator:

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding – 
   basic and diluted

 

13,496

 

 

13,446

 

 

 13,478

 

 

 13,446

(Loss) earnings per share – basic and diluted

$

(0.06)

 

$

(0.03)

 

$

(0.19)

 

$

0.04

 

Basic (loss) earnings per common share is computed by dividing net (loss) income attributable to common shares by the weighted average number of common shares outstanding for the period.  Diluted (loss) earnings per common share is computed by dividing net (loss) income attributable to common shares, by the weighted average number of common shares outstanding, adjusted for shares that would be assumed outstanding after warrants and stock options vested under the treasury stock method.

 

On March 28, 2022, the Company issued stock options to purchase 280,000 shares to executives and employees at an exercise price of $0.40 per share, which vested on March 28, 2023.  The options were valued at the grant date using the Black-Scholes model with the following inputs:  expiration date March 28, 2026; risk-free rate of return 2.55%; and volatility 108%.

 

As of September 30, 2023, the Company excluded the effects of the outstanding stock options to purchase 235,000 shares in the calculation of diluted loss per share since their inclusion would have been anti-dilutive.  As of September 30, 2023 and 2022, the Company had warrants to purchase 1.6 million shares of Common Stock outstanding, which were excluded from the calculation of diluted (loss) income per share because their exercise price was greater than the average stock price for the period and their inclusion would have been anti-dilutive.

 

A summary of the status of the Company’s stock options as of September 30, 2023 and the changes during the nine months then ended is presented below:

 

Number of Options

Weighted Average
Exercise Price

Weighted average
remaining contractual
 life (in years)

Average intrinsic value

Outstanding at December 31, 2022

 

280,000

 

$

0.40

 

3.3

 

$

0.19

Granted

-

-

Expired

 

45,000

 

$

0.40

 

 

 

$

0.19

Outstanding at September 30, 2023

 

235,000

$

0.40

2.5

$

0.19

Exercisable at the end of the period

 

235,000

 

$

0.40

 

2.5

 

$

0.19

 

Equity based compensation was $38,000 and $76,000 for the nine months ended September 30, 2023 and 2022, respectively.  There was no equity based compensation for the three months ended September 30, 2023.  Equity based compensation was $38,000 for the three months ended September 30, 2022.  There is no unrecognized equity based compensation cost related to unvested stock options as of September 30, 2023.

 

16


Table of Contents

 

Note 11 – Contingencies

 

The Company is subject to legal proceedings and claims which arise in the ordinary course of its business and/or which are covered by insurance.  The Company has accrued reserves individually and in the aggregate for such legal proceedings.  Should actual litigation results differ from the Company’s estimates, revisions to increase or decrease the accrued reserves may be required.  There are no open matters that the Company deems material.

 

Note 12 Related Party Transactions

 

The Company has the following related party transactions:

 

As of September 30, 2023, Unilumin USA (“Unilumin”) owns 51.8% of the Company’s Common Stock and beneficially owns 53.5% of the Company’s Common Stock.  Nicholas J. Fazio, Jie Feng and Yantao Yu, each directors of the Company, are each directors and/or officers of Unilumin.  Mr. Fazio and Mr. Yu are both executive officers of the Company, but had not yet been added to the Company’s payroll until January 2023 at annual rates of compensation of $125,000 and $26,000, respectively.  In 2022 and prior, they had been compensated solely by Unilumin, with no charge to the Company.  In 2023, they continue to receive some compensation directly from Unilumin.  The Company purchased $2.7 million and $5.9 million of product from Unilumin in the nine months ended September 30, 2023 and 2022, respectively, and purchased $1.7 million and $2.1 million of product from Unilumin in the three months ended September 30, 2023 and 2022, respectively.  The total amount payable by the Company to Unilumin, including accounts payable, accrued interest and long-term debt, was $9.6 million and $7.3 million as of September 30, 2023 and December 31, 2022, respectively.  The Company occupies space at no cost in a New York office that is leased by Unilumin.  In addition, Unilumin is currently the lender under the Loan Agreement described in Note 7 – Long-Term Debt.

 

Marco Elser, a director of the Company, exercises voting and dispositive power as investment manager of Carlisle.  The total amount payable by the Company to Carlisle, including accrued interest and long-term debt, was $1.7 million and $1.6 million as of September 30, 2023 and December 31, 2022, respectively.

 

Note 13 Business Segment Data

 

Operating segments are based on the Company’s business components for which separate financial information is available and are evaluated regularly by the Company’s chief operating decision makers in deciding how to allocate resources and in assessing performance of the business.

 

The Company evaluates segment performance and allocates resources based upon operating income (loss). The Company’s operations are managed in two reportable business segments: Digital product sales and Digital product lease and maintenance.  Both design and produce large-scale, multi-color, real-time digital displays.  Both operating segments are conducted on a global basis, primarily through operations in the United States.  The Company also has operations in Canada.  The Digital product sales segment sells equipment and the Digital product lease and maintenance segment leases and maintains equipment.  Corporate general and administrative items relate to costs that are not directly identifiable with a segment.  There are no intersegment sales.

 

17


Table of Contents

 

Foreign revenues represent less than 10% of the Company’s revenues in the nine months ended September 30, 2023 and 2022.  The Company’s foreign operation does not manufacture its own equipment; the domestic operation provides the equipment that the foreign operation leases or sells.  The foreign operation operates similarly to the domestic operation and has similar profit margins.  Foreign assets are immaterial.

 

Information about the Company’s operations in its two business segments for the three and nine months ended September 30, 2023 and 2022 is as follows:

 

 

Three months ended
September 30

 

Nine months ended
September 30

In thousands

2023

 

2022

 

2023

 

2022

Revenues:

 

 

 

 

 

 

 

 

 

 

 

Digital product sales

$

3,933

 

$

4,510

 

$

10,821

 

$

14,763

Digital product lease and maintenance

 

209

 

 

279

 

 

656

 

 

993

Total revenues

$

4,142

 

$

4,789

 

$

11,477

 

$

15,756

Operating (loss) income:

 

 

 

 

 

 

 

 

 

 

 

Digital product sales

$

(357)

 

$

(385)

 

$

(839)

 

$

375

Digital product lease and maintenance

 

98

 

 

148

 

 

330

 

 

538

Corporate general and administrative expenses

 

(403)

 

 

(346)

 

 

(1,352)

 

 

(1,178)

Total operating loss

 

(662)

 

 

(583)

 

 

(1,861)

 

 

(265)

Interest expense, net

 

(183)

   

(110)

   

(521)

   

(382)

Gain on foreign currency remeasurement

 

60

 

 

181

 

 

1

 

 

241

Gain on forgiveness of PPP loan

 

-

   

    -

   

 -

   

824

Pension (expense) benefit

 

(62)

 

 

53

 

 

(187)

 

 

158

(Loss) income before income taxes