Content analysis
?Positive | ||
Negative | ||
Uncertain | ||
Constraining | ||
Legalese | ||
Litigous | ||
Readability |
H.S. sophomore Good
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New words:
Academy, advisor, Aerospike, agreed, Aircraft, American, ARPU, artificial, ATMI, Bachelor, BIXOLON, built, career, clarify, Clawback, clicking, closer, Collaborative, collaboratively, confidentiality, confirmed, consumption, coordination, counsel, country, CrunchTime, database, departure, disaggregation, dispute, EDS, Education, ERM, fastest, frequently, Gate, Golden, graduate, hedge, highlighted, holder, Hyperion, inflow, insignificant, instrumentation, intelligence, interrogate, learning, lingering, Lockheed, London, mandatory, marine, Martin, MBA, member, Naval, newest, Nomination, Omega, outflow, pause, pendency, perpetual, phishing, PHP, plc, Pratt, pressure, proceeding, prompt, pursuit, Raytheon, regular, regularly, repeat, repeated, resolution, RTX, Ruby, saleable, science, screening, semiconductor, Sikorsky, slightly, speed, stability, Steering, struggle, tabletop, temporarily, tenure, threat, timetable, unconditional, undelivered, undergraduate, unfamiliar, University, UTC, viii, warn, written, Yard
Removed:
accelerate, achievement, adjust, administration, Aid, announced, back, bankruptcy, Berkshire, breakdown, cabinetry, care, carried, carry, cessation, closely, collected, color, competed, Continuation, COSO, decided, decision, declined, deducting, desktop, deterioration, doubtful, drilling, enabled, encountering, estimation, Euro, exact, execution, exit, exited, experiencing, exploration, field, float, forgiven, format, formation, furloughed, gas, gradual, handheld, hole, Imaging, integrate, integration, log, low, modification, mortgage, Neuralog, onset, operated, Operationally, Paycheck, payroll, plot, Pound, PPP, preventive, priority, quick, refund, refurbished, relate, relief, relinquished, remediated, remediation, reopen, responsive, restore, reviewed, saving, SBA, seismic, shareholder, shift, site, Sterling, stream, supplement, sustain, TD, thereon, top, transition, unamortized, unaware, unchanged, underwriting, underwritten, unprecedented, unsuccessful, utilization, utilized, warrant
Financial report summary
?Risks
- We have a history of net losses, we anticipate making further investments in product development and we may not be able to achieve, maintain or increase profitability in future periods.
- Our operating results and financial condition may fluctuate.
- We purchase component parts and consumable products from third party and sole source suppliers, and any interference with this supply chain may impact our ability to manufacture and sell our products.
- Catastrophic events, political unrest or a downturn in economic conditions may disrupt our business.
- Our food service technology business depends substantially on our customers renewing their subscriptions with the Company. Any decline in our customer renewals could harm our food service technology business, results of operations and financial condition.
- Because we rely in part on revenue from subscription contracts and recognize revenue from subscription contracts over the term of the relevant subscription period, downturns or upturns in sales are not immediately reflected in full in our results of operations.
- Our calculation of recurring revenue and average revenue per user (“ARPU”) may differ from how other SaaS-based companies calculate such metrics; our definitions include sales of our consumable labels, which generally fluctuate from period to period.
- Overestimates or underestimates in our manufacturing forecasts could cause us to hold insufficient or excess inventory or result in delays in the manufacturing and delivery of our products, which could interfere with our ability to retain orders or provide services to our customers.
- We depend on key personnel, the loss of whom could have a material adverse impact on our business.
- Our ability to recruit, retain, and develop qualified personnel is critical to our success and growth.
- If we fail to offer high quality support, our business and reputation could suffer.
- We experience elements of seasonal fluctuations in the food service technology and POS markets which could cause our stock price to fluctuate.
- Our revenue and profitability depend on our ability to continue to develop or license, on a timely basis, new products and technologies which are free from hardware or software anomalies and cannot be fraudulently manipulated, and customer acceptance of such products.
- Cybersecurity and privacy breaches, cyber-attacks, or other disruptions could expose us to liability, affect our business, and damage our reputation.
- The inability to protect our intellectual property rights could harm our reputation, damage our business or interfere with our competitive position.
- Prosecuting or defending against intellectual property litigation could be time consuming and costly, and claims that we have infringed upon the intellectual property rights of others could impede our business and put us at a competitive disadvantage.
- We rely on an unrelated third party to develop, maintain and host certain portions of our food service technology software, and any disruption in the relationship with that third party, or any defects in the software provided by that third party, could have a material adverse effect on our reputation, business, financial condition and results of operations.
- We are currently dependent upon a manufacturer located in Thailand for the manufacturing and assembly of substantially all of our printers and terminals, and any further or future disruption in the businesses or operations of this manufacturer, such as those caused by the COVID-19 pandemic, political, social or economic instability, war, trade restrictions or tariffs, severe weather, changes in climate, additional public health crises and other events out of our control could materially adversely affect our business, financial condition and results of operations.
- We rely on distributors and resellers to sell our products and services.
- We currently rely on third party service providers to host our food service technology software and deliver certain services, and any interruptions or delays in services from these third parties could impair the delivery of our products and services, and our business, results of operations, and financial condition could be materially adversely affected.
- We compete in highly competitive markets, which are likely to become more competitive. Competitors may be able to respond more quickly to new or emerging technology and changes in customer requirements.
- Our food service technology market operates in an emerging and evolving industry, which makes it difficult to evaluate the future prospects of this market.
- We are dependent on sales to one large customer; the loss of this customer or reduction in orders from this customer could materially affect our sales.
- Our success may depend in part on our ability to identify and pursue the best long-term strategy for our business.
- In addition to maintaining offices in the UK, Macau and Thailand, we sell and ship a significant portion of our products internationally and rely on third parties that make up part of our global salesforce. The international nature of our operations may expose us to certain risks associated with doing business outside of the U.S., including risks posed by tariffs and changes in trade relations.
- If market conditions deteriorate or future results of operations are less than expected, a valuation allowance may be required for all or a portion of our deferred tax assets.
- Changes in tax rates or tax liabilities could affect results.
- The agreement governing our credit facility contains restrictions and limitations that could significantly affect our ability to operate our business, as well as significantly affect our liquidity.
- General economic conditions could have a material adverse effect on our business, operating results and financial condition.
- Our stock price may fluctuate significantly.
- Unfavorable analyst coverage or a reduction in analyst coverage of our common stock may adversely affect the price of our common stock.
- Our common stock is thinly traded, and investors may be unable to sell their shares at their desired prices, or at all, and sales of large blocks of shares may adversely affect the price of our common stock.
- If we raise additional capital in the future, existing stockholder ownership interest in the Company could be diluted or otherwise adversely impacted, and future sales of our common stock or other financing arrangements may cause our stock price to decline.
- We do not intend to pay dividends for the foreseeable future, so investors must rely on price appreciation to realize a gain on their investment.
- We cannot provide any assurance that current laws, or any laws enacted in the future, will not have a material adverse effect on our business.
- We take advantage of specified scaled disclosure requirements applicable to a “smaller reporting company” under Regulation S-K, and the information that we provide to stockholders may therefore be different than they might receive from other public companies. If some investors find our shares of common stock less attractive as a result of this scaled disclosure, there may be a less active trading market for our shares of common stock, which may increase the volatility of the market price of our common stock.
- Our Amended and Restated By-Laws designate certain Delaware courts as the sole and exclusive forum for certain types of actions and proceedings that may be initiated by our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or stockholders.
Management Discussion
- • Net sales were $72.6 million in the current year compared to $58.1 million in the prior year.
- • Operating income was $5.7 million in the current year compared to an operating loss of $7.7 million in the prior year.
- • Net income was $4.7 million, or $0.47 per diluted share in the current year, compared to a net loss of $5.9 million, or a $0.60 loss per share in the prior year.