x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
For the quarterly period ended | |
OR | |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE EXCHANGE ACT OF 1934. |
Large accelerated filer o | Accelerated filer o | |
Non-accelerated filer o | Smaller reporting company x |
December 31, | September 30, | March 31, | September 30, | |||||||||||||
2011 (Unaudited) | 2011 | 2012 (Unaudited) | 2011 | |||||||||||||
Assets | ||||||||||||||||
Current Assets | ||||||||||||||||
Cash and cash equivalents | $ | 84,845 | $ | 25,185 | $ | 16,286 | $ | 25,185 | ||||||||
Accounts receivable, net | 2,482,676 | 850,087 | 774,411 | 850,087 | ||||||||||||
Inventories | 517,625 | 799,205 | 563,739 | 799,205 | ||||||||||||
Income taxes receivable | - | 2,120 | - | 2,120 | ||||||||||||
Deferred income taxes | 552,000 | 625,000 | 326,000 | 625,000 | ||||||||||||
Prepaid expenses and other | 101,637 | 424,726 | 49,572 | 424,726 | ||||||||||||
Assets held for sale | 58,910 | 930,338 | 448,910 | 1,320,338 | ||||||||||||
Total current assets | 3,797,693 | 3,656,661 | 2,178,918 | 4,046,661 | ||||||||||||
Property, plant and equipment, net | 8,830,021 | 8,971,158 | 8,301,401 | 8,581,158 | ||||||||||||
Other assets | 736 | 1,479 | 141 | 1,479 | ||||||||||||
Total assets | $ | 12,628,450 | $ | 12,629,298 | $ | 10,480,460 | $ | 12,629,298 | ||||||||
Liabilities and Stockholders' Equity | ||||||||||||||||
Current Liabilities: | ||||||||||||||||
Disbursements in excess of bank balances | $ | 56,548 | $ | 108,757 | $ | 69,651 | $ | 108,757 | ||||||||
Accounts payable | 2,093,558 | 1,818,906 | 1,206,555 | 1,818,906 | ||||||||||||
Accrued expenses | 1,666,831 | 1,251,966 | 990,281 | 1,251,966 | ||||||||||||
Bank line of credit | 647,040 | 3,643,600 | 930,400 | 3,643,600 | ||||||||||||
Current portion of notes payable | 283,012 | 441,718 | ||||||||||||||
Current Portion of Notes Payable | 287,367 | 441,718 | ||||||||||||||
Total current liabilities | 4,746,989 | 7,264,947 | 3,484,284 | 7,264,947 | ||||||||||||
Long-Term Liabilities: | ||||||||||||||||
Notes payable, less current portion | 1,860,112 | 2,033,545 | 1,783,729 | 2,033,545 | ||||||||||||
Deferred income taxes | 1,034,000 | 124,000 | 824,000 | 124,000 | ||||||||||||
Total long term liabilities | 2,894,112 | 2,157,545 | 2,607,729 | 2,157,545 | ||||||||||||
Total liabilities | 7,641,101 | 9,422,492 | 6,091,983 | 9,422,492 | ||||||||||||
Stockholders' Equity: | ||||||||||||||||
Common stock, $.0001 par value; 100,000,000 shares authorized; 7,090,662 shares issued and outstanding, respectively | 709 | 709 | 709 | 709 | ||||||||||||
Additional paid-in capital | 12,636,252 | 12,518,814 | 12,636,252 | 12,518,814 | ||||||||||||
Accumulated deficit | (7,649,612 | ) | (9,312,717 | ) | (8,248,484 | ) | (9,312,717 | ) | ||||||||
Total stockholders' equity | 4,987,349 | 3,206,806 | 4,388,477 | 3,206,806 | ||||||||||||
Total liabilities and stockholders' equity | $ | 12,628,450 | $ | 12,629,298 | $ | 10,480,460 | $ | 12,629,298 |
For the three months ended March 31, | ||||||||
2012 (Unaudited) | 2011 (Unaudited) | |||||||
Revenue | $ | 1,956,444 | $ | 660,220 | ||||
Cost of goods sold | 1,808,890 | 702,331 | ||||||
Inventory adjustments | - | 48,092 | ||||||
Gross profit (loss) | 147,554 | (90,203 | ) | |||||
Selling, general, and administrative expenses | 724,259 | 240,404 | ||||||
Loss from operations | (576,705 | ) | (330,607 | ) | ||||
Other income (expense) | ||||||||
Gain on sale of assets | 21,528 | - | ||||||
Miscellaneous | - | (6,980 | ) | |||||
Interest expense, net | (44,878 | ) | (17,018 | ) | ||||
Total other expense, net | (23,350 | ) | (23,998 | ) | ||||
Loss from continuing operations before income tax benefit | (600,055 | ) | (354,605 | ) | ||||
Income tax benefit | - | 123,623 | ||||||
Net loss from continuing operations | (600,055 | ) | (230,982 | ) | ||||
Net income (loss) from discontinued operations, net of tax | 1,185 | (1,120,729 | ) | |||||
Net Loss | $ | (598,870 | ) | $ | (1,351,711 | ) | ||
Weighted average shares of common stock: | ||||||||
Basic | 7,090,662 | 6,990,662 | ||||||
Diluted | 7,090,662 | 6,990,662 | ||||||
Loss per basic and diluted share: | ||||||||
Continuing Operations | $ | (0.08 | ) | $ | (0.03 | ) | ||
Discontinued Operations | $ | 0.00 | $ | (0.16 | ) | |||
$ | (0.08 | ) | $ | (0.19 | ) |
For the six months ended March 31, | ||||||||
2012 (Unaudited) | 2011 (Unaudited) | |||||||
Revenue | $ | 2,528,247 | $ | 1,353,269 | ||||
Cost of goods sold | 2,301,881 | 1,359,995 | ||||||
Gross profit (loss) | 226,366 | (54,818 | ) | |||||
Selling, general, and administrative expenses | 837,392 | 424,196 | ||||||
Loss from operations | (611,026 | ) | (479,014 | ) | ||||
Other income (expense) | ||||||||
Gain on sale of assets | 21,528 | - | ||||||
Miscellaneous | - | (6,980 | ) | |||||
Interest expense, net | (55,838 | ) | (31,830 | ) | ||||
Total other expense, net | (34,310 | ) | (65,126 | ) | ||||
�� | ||||||||
Loss from continuing operations before income tax benefit | (645,336 | ) | (544,140 | ) | ||||
Income tax benefit | - | 184,423 | ||||||
Net loss from continuing operations | (645,336 | ) | (359,717.18 | ) | ||||
Net income (loss) from discontinued operations, net of tax | 1,709,571 | (1,301,073 | ) | |||||
Net Income (Loss) | $ | 1,064,235 | $ | (1,660,790 | ) | |||
Weighted average shares of common stock: | ||||||||
Basic | 7,090,662 | 7,518,567 | ||||||
Diluted | 7,090,662 | 7,518,567 | ||||||
Loss per basic and diluted share: | ||||||||
Continuing Operations | $ | (0.09 | ) | $ | (0.05 | ) | ||
Discontinued Operations | $ | 0.24 | $ | (0.17 | ) | |||
$ | 0.15 | $ | (0.22 | ) |
Six months ending March 31, | Six months ending March 31, | |||||||
2012 (Unaudited) | 2011 (Unaudited) | |||||||
Cash Flows from Operating Activities: | ||||||||
Net income (loss) | $ | 1,064,235 | $ | (1,660,790 | ) | |||
Adjustments to reconcile net loss to net cash provided by (used for) operating activities: | ||||||||
Depreciation | 297,052 | 361,025 | ||||||
Bad debt reserve | (6,454 | ) | 60,000 | |||||
Share-based compensation | 117,438 | 90,736 | ||||||
(Gain) loss on sale of assets | (2,233,506 | ) | - | |||||
Deferred income taxes | 999,000 | (820,000 | ) | |||||
Change in: | ||||||||
Accounts receivable, net | 82,130 | 1,500,055 | ||||||
Inventories | 192,494 | 1,090,158 | ||||||
Income tax receivable | 40,240 | 12,999 | ||||||
Prepaid expenses and other | 375,154 | (81,125) | ||||||
Other assets | 1,338 | 119,888 | ||||||
Accounts payable | (612,350 | ) | 1,055,537 | |||||
Accrued expenses | (299,806 | ) | 112,316 | |||||
Net cash provided by (used for) operating activities | 16,695 | 1,963,340 | ||||||
Cash Flows from Investing Activities: | ||||||||
Proceeds from sale of property, plant and equipment | 97,902 | 5,338 | ||||||
Purchase of property, plant and equipment | 25,000 | 78,664 | ||||||
Net cash used for investing activities | 122,902 | 73,326 | ||||||
Cash Flows from Financing Activities: | ||||||||
Change in disbursements in excess of bank balances | (39,106 | ) | (148,315 | ) | ||||
Payments on bank notes payable | (380,003 | ) | (451,113 | ) | ||||
Bank line of credit, net | 280,343 | (1,171,695 | ) | |||||
Net cash used for financing activities | (138,766 | ) | (1,771,123 | ) | ||||
Net increase (decrease) in cash and cash equivalents | (8,899 | ) | 118,891 | |||||
Cash and cash equivalents, beginning of period | 25,185 | 28,939 | ||||||
Cash and cash equivalents, end of period | $ | 16,286 | $ | 147.830 |
Six months ending March 31, | Six months ending March 31, | |||||||
2012 (Unaudited) | 2011 (Unaudited) | |||||||
Supplemental disclosures of cash flow information: | ||||||||
Cash paid during the period for: | ||||||||
Interest | $ | 121,534 | $ | 174,786 | ||||
Income tax refunds (payments), net | $ | (300 | ) | $ | 1,430 | |||
Supplemental schedule of non-cash investing and financing: | ||||||||
Treasury stock purchased included in accrued expense | $ | - | $ | 128,744 | ||||
Non cash sale of ATV Accessories segment so proceeds applied directly to outstanding debt | $ | 3,017,707 | $ | - | ||||
Disposal of fixed assets | - | $ | 56,131 |
For the three months ended December 31, | ||||||||
2011 (Unaudited) | 2010 (Unaudited) | |||||||
Revenue | $ | 571,803 | $ | 693,049 | ||||
Cost of goods sold | 492,991 | 657,664 | ||||||
Gross profit | 78,812 | 35,385 | ||||||
Selling, general, and administrative expenses | 113,133 | 183,792 | ||||||
Loss from operations | (34,321 | ) | (148,407 | ) | ||||
Other income (expense) | ||||||||
Interest expense, net | (10,960 | ) | (14,812 | ) | ||||
Total other expense, net | (10,960 | ) | (14,812 | ) | ||||
Loss from continuing operations before income tax benefit | (45,281 | ) | (163,219 | ) | ||||
Income tax benefit | - | 21,899 | ||||||
Net loss from continuing operations | (45,281 | ) | (141,320 | ) | ||||
Income (loss) from discontinued operations, net of tax | 1,708,386 | (167,760 | ) | |||||
Net income (loss) | $ | 1,663,105 | $ | (309,080 | ) | |||
Weighted average shares of common stock | ||||||||
Basic | 7,090,662 | 8,030,474 | ||||||
Diluted | 7,090,662 | 8,030,474 | ||||||
Loss per basic and diluted share: | ||||||||
Continuing Operations | (0.01 | ) | (0.01 | ) | ||||
Discontinued Operations | 0.24 | (0.02 | ) | |||||
$ | 0.23 | $ | (0.03 | ) |
For the three months ended December 31, | ||||||||
2011 (Unaudited) | 2010 (Unaudited) | |||||||
Cash Flows from Operating Activities from Continuing Operations: | ||||||||
Net loss from continuing operations | $ | (45,281 | ) | $ | (141,320 | ) | ||
Adjustments to reconcile net loss from continuing operations to net cash provided by operating activities: | ||||||||
Depreciation | 16,116 | 31,550 | ||||||
Bad debt reserve | - | 9,800 | ||||||
Share-based compensation | 10,569 | 7,431 | ||||||
Deferred income taxes | - | (21,899 | ) | |||||
Change in: | ||||||||
Accounts receivable, net | (46,326 | ) | 49,243 | |||||
Inventories | 281,580 | 220,662 | ||||||
Income tax receivable | (300 | ) | 2,569 | |||||
Prepaid expenses and other | - | 219,631 | ||||||
Other assets | 744 | 1,994 | ||||||
Accounts payable | 274,651 | 806,822 | ||||||
Accrued expenses | 365,283 | (67,922 | ) | |||||
Net cash provided by operating activities from continuing operations | 857,036 | 1,118,561 | ||||||
Cash Flows from Investing Activities: | ||||||||
Purchase of property, plant and equipment | - | (28,744 | ) | |||||
Net cash used for investing activities in continuing operations | - | (28,744 | ) | |||||
Cash Flows from Financing Activities: | ||||||||
Change in disbursements in excess of bank balances | (52,209 | ) | (265,502 | ) | ||||
Payments on bank notes payable | (332,139 | ) | (223,143 | ) | ||||
Bank line of credit, net | 21,146 | (506,002 | ) | |||||
Net cash used for financing activities from continuing operations | (363,202 | ) | (994,647 | ) | ||||
Cash flows from Discontinued Operations: | ||||||||
Cash provided by (used) for operating activities | (552,076 | ) | 7,344 | |||||
Cash provided by for investing activities | 117,902 | 2,368 | ||||||
Net cash (used for) provided by discontinued operations | (434,174 | ) | 9,712 | |||||
Net increase in cash and cash equivalents | 59,660 | 104,882 | ||||||
Cash and cash equivalents, beginning of period | 25,185 | 28,939 | ||||||
Cash and cash equivalents, end of period | $ | 84,845 | $ | 133,821 |
Three months ending December 31, | ||||||||
2011 (Unaudited) | 2010 (Unaudited) | |||||||
Supplemental disclosures of cash flow information: | ||||||||
Cash paid during the period for: | ||||||||
Interest | $ | 121,534 | $ | 93,922 | ||||
Income tax refunds (payments), net | $ | (300 | ) | $ | 1,430 | |||
Supplemental schedule of non-cash investing and financing: | ||||||||
Treasury stock purchased included in accrued expense | $ | - | $ | 128,744 | ||||
Non cash sale of ATV Accessories Segment as all proceeds applied directly to outstanding debt | $ | 3,017,707 | $ | - | ||||
$ | - | $ | - |
· | Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date |
· | Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset of liability |
· | Level 3 inputs are unobservable inputs for the asset or liability |
December 31, 2011 (Unaudited) | September 30, 2011 | |||||||
Raw Material | $ | 188,903 | $ | 382,452 | ||||
Work in Process | 98,244 | 77,961 | ||||||
Finished Goods | 380,478 | 488,792 | ||||||
Inventory Reserve | (150,000 | ) | (150,000 | ) | ||||
Total Inventories | $ | 517,625 | $ | 799,205 |
March 31, 2012 (Unaudited) | September 30, 2011 | |||||||
Raw Material | $ | 472,378 | $ | 382,452 | ||||
Work in Process | 112,305 | 77,961 | ||||||
Finished Goods | 129,056 | 488,792 | ||||||
Inventory Reserve | (150,000 | ) | (150,000 | ) | ||||
Total Inventories | $ | 563,739 | $ | 799,205 |
December 31, | September 30, | |||||||
2011 (Unaudited) | 2011 | |||||||
Note 2 to commercial lender payable in equal monthly installments of $33,449 including interest fixed at 6.125% until April 2011. Beginning April 2011, the interest is reset every 60 months to 0.50% over prime not to exceed 10.5% or be less than 5.5%. The note matures April 2018 and is secured by all Company assets. | $ | 2,083,124 | $ | 2,153,545 | ||||
Note 3 to commercial lender payable in equal monthly installments of $14,567 including interest at 6.125% until maturity of April 2013; secured by the specific equipment acquired. Note was paid in full during the three months ended December 31, 2011. | - | 261,718 | ||||||
Note - Spencer Area Jobs Trust due in full March 2014, forgivable in full if the Company maintans required job levels. | 60,000 | 60,000 | ||||||
Total | 2,143,124 | 2,475,263 | ||||||
Less current maturities | (283,012 | ) | (441,718 | ) | ||||
Net | $ | 1,860,112 | $ | 2,033,545 |
March 31, | September 30, | |||||||
2012 (Unaudited) | 2011 | |||||||
Note 2 to commercial lender payable in equal monthly installments of $33,449 including interest fixed at 6.125% until April 2011. Beginning April 2011, the interest is reset every 60 months to 0.50% over prime not to exceed 10.5% or be less than 5.5%. The note matures April 2018 and is secured by all Company assets. | $ | 2,011,096 | $ | 2,153,545 | ||||
Note 3 to commercial lender payable in equal monthly installments of $14,567 including interest at 6.125% until maturity of April 2013; secured by the specific equipment acquired. The Note was paid in full during the year ended September 30, 2011. | - | 261,718 | ||||||
Note - Spencer Area Jobs Trust due in full March 2014, forgivable in full if the Company meets certain employment covenants | 60,000 | 60,000 | ||||||
Total | 2,071,096 | 2,475,263 | ||||||
Less current maturities | (287,367 | ) | (441,718 | ) | ||||
Net | $ | 1,783,729 | $ | 2,033,545 |
For the three months ended | For the three months ended | For the three months ended | For the three months ended | |||||||||||||||||||||||||||||||||||||||||||||
December 31, 2011 (Unaudited) | December 31, 2010 | March 31, 2012 (Unaudited) | March 31, 2011 (Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||
Weighted | Weighted | Weighted | Weighted | |||||||||||||||||||||||||||||||||||||||||||||
Loss | Average Shares | Per share | Loss | Average Shares | Per share | Net Income (Loss) | Average Shares | Per share | Net Loss | Average Shares | Per share | |||||||||||||||||||||||||||||||||||||
(numerator) | (denominator) | amount | (numerator) | (denominator) | amount | (numerator) | (denominator) | amount | (numerator) | (denominator) | amount | |||||||||||||||||||||||||||||||||||||
Basic and Diluted EPS | ||||||||||||||||||||||||||||||||||||||||||||||||
Loss from continuing operations | $ | (45,281 | ) | 7,090,662 | $ | (0.01 | ) | $ | (141,320 | ) | 8,030,474 | $ | (0.01 | ) | $ | (600,055 | ) | 7,090,662 | $ | (0.08 | ) | $ | (230,982 | ) | 6,990,662 | $ | (0.03 | ) | ||||||||||||||||||||
Net income/loss from discontinued operations | $ | 1,708,386 | 7,090,662 | $ | 0.24 | $ | (167,760 | ) | 8,030,474 | $ | (0.02 | ) | ||||||||||||||||||||||||||||||||||||
Income (loss) from discontinued operations | $ | 1,185 | 7,090,662 | $ | 0.00 | $ | (1,120,729 | ) | 6,990,662 | $ | (0.16 | ) | ||||||||||||||||||||||||||||||||||||
For the six months ended | For the six months ended | |||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2012 (Unaudited) | March 31, 2011 (Unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||
Weighted | Weighted | |||||||||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) | Average Shares | Per share | Net Loss | Average Shares | Per share | |||||||||||||||||||||||||||||||||||||||||||
(numerator) | (denominator) | amount | (numerator) | (denominator) | amount | |||||||||||||||||||||||||||||||||||||||||||
Basic and Diluted EPS | ||||||||||||||||||||||||||||||||||||||||||||||||
Loss from continuing operations | $ | (645,336 | ) | 7,090,662 | $ | (0.09 | ) | $ | (359,717 | ) | 7,518,567 | $ | (0.05 | ) | ||||||||||||||||||||||||||||||||||
Income (loss) from discontinued operations | $ | 1,709,571 | 7,090,662 | $ | 0.24 | $ | (1,301,073 | ) | 7,518,567 | $ | (0.17 | ) |
Balance Sheet | ||||
Property, plant, equipment, net | $ | 143,913 | ||
Inventory | 702,905 | |||
Intangibles, net | 34,416 | |||
Total assets sold | 881,234 | |||
Proceeds from sale applied directly to outstanding debt | 3,017,707 | |||
Gain on sale | $ | 2,136,473 |
Property, plant, equipment, net | $ | 174,575 | ||
Inventory | 695,400 | |||
Intangibles, net | 3,754 | |||
Total assets sold | 873,729 | |||
Proceeds from sale and applied directly to outstanding debt | 3,017,707 | |||
Gain on sale | $ | 2,143,978 |
Inventory sold | $ | 10,419 | ||
Proceeds from sale | 25,000 | |||
Gain on sale | $ | 14,581 |
Inventory Sold | 10,419 | |||
Proceeds from sale | $ | 20,000 | ||
Gain on sale | $ | 9,581 |
For the three months ended December 31, 2011 (Unaudited) | ||||||||||||||||||||||||
For the three months ended March 31, 2012 (Unaudited) | ||||||||||||||||||||||||
ATV | Plazco | Perf-Form | Total | Plazco | Total | |||||||||||||||||||
Revenue | ||||||||||||||||||||||||
Sales- general | $ | 5,867,629 | $ | 63,558 | $ | 60 | $ | 5,931,247 | $ | 11,085 | $ | 11,085 | ||||||||||||
Discounts, returns & allowances | (387,777 | ) | (3,278 | ) | - | (391,055 | ) | - | - | |||||||||||||||
Freight income | 6,405 | - | - | 6,405 | - | - | ||||||||||||||||||
Total revenue | 5,486,257 | 60,280 | 60 | 5,546,597 | 11,085.00 | 11,085.00 | ||||||||||||||||||
Cost of goods sold | 3,606,302 | 35,387 | (156 | ) | 3,641,533 | 2,342 | 2,342 | |||||||||||||||||
Gross profit | $ | 1,879,955 | $ | 24,893 | $ | 216 | $ | 1,905,064 | $ | 8,743 | 8,743 | |||||||||||||
Selling, general, and administrative expenses | 1,277,209 | |||||||||||||||||||||||
Interest expense, net | 106,320 | |||||||||||||||||||||||
Gain on sale of segments and other assets | (2,221,851 | ) | ||||||||||||||||||||||
Income tax expense | 1,035,000 | |||||||||||||||||||||||
Net income from discontinued operations | $ | 1,708,386 | ||||||||||||||||||||||
0.907 | ||||||||||||||||||||||||
0.845710297 | ||||||||||||||||||||||||
For the three months ended December 31, 2010 (Unaudited) | ||||||||||||||||||||||||
ATV | Plazco | Perf-Form | Total | |||||||||||||||||||||
Revenue | ||||||||||||||||||||||||
Sales- general | 3,718,693 | 77,553 | 28,867 | 3,825,113 | ||||||||||||||||||||
Discounts, returns & allowances | (295,343 | ) | (4,098 | ) | (197 | ) | (299,638 | ) | ||||||||||||||||
Freight income | 18,238 | 391 | 153 | 18,782 | ||||||||||||||||||||
Total revenue | 3,441,588.00 | 73,846.00 | 28,823.00 | 3,544,257.00 | ||||||||||||||||||||
Cost of goods sold | 2,713,103 | 63,416 | 36,545 | 2,813,064 | ||||||||||||||||||||
Gross profit (loss) | 728,485 | 10,430 | (7,722 | ) | 731,193 | |||||||||||||||||||
Selling, general, and administrative expenses | Selling, general, and administrative expenses | 943,050 | 7,322 | |||||||||||||||||||||
Interest expense, net | 83,937 | 453 | ||||||||||||||||||||||
Loss on sale of assets | 23,142 | |||||||||||||||||||||||
Other income | (27,075 | ) | ||||||||||||||||||||||
Income tax benefit | (124,101 | ) | ||||||||||||||||||||||
Other (income) expense, net | (217 | ) | ||||||||||||||||||||||
- | ||||||||||||||||||||||||
Net loss from discontinued operations | $ | (167,760 | ) | |||||||||||||||||||||
Net income from discontinued operations | $ | 1,185 |
For the three months ended March 31, 2011 (Unaudited) | ||||||||||||||||
ATV Accessories | Plazco | Perf-Form | Total | |||||||||||||
Revenue | ||||||||||||||||
Sales- general | $ | 2,404,610 | $ | 104,414 | $ | 28,654 | $ | 2,537,678 | ||||||||
Discounts, returns & allowances | (236,675 | ) | (10,277 | ) | (2,820 | ) | (249,772 | ) | ||||||||
Freight income | 27,755 | 1,110 | 370 | 29,235 | ||||||||||||
Total revenue | 2,195,690.00 | 95,247.00 | 26,204.00 | 2,317,141.00 | ||||||||||||
Cost of goods sold | 1,846,497 | 86,443 | 45,913 | 1,978,853 | ||||||||||||
Inventory impairment adjustment | 432,826 | 148,000 | 75,134 | 655,960 | ||||||||||||
Gross profit (loss) | $ | (83,633 | ) | $ | (139,196 | ) | $ | (94,843 | ) | (317,672 | ) | |||||
Selling, general, and administrative expenses | 1,163,507 | |||||||||||||||
Intangible impairment | 110,186 | |||||||||||||||
Interest expense, net | 56,549 | |||||||||||||||
Other (income) expense, net | 23,191 | |||||||||||||||
Income tax benefit | (550,376 | ) | ||||||||||||||
Net loss from discontinued operations | $ | (1,120,729 | ) |
For the six months ended March 31, 2012 (Unaudited) | ||||||||||||||||
ATV Accessories | Plazco | Perf-Form | Total | |||||||||||||
Revenue | ||||||||||||||||
Sales- general | $ | 5,867,629 | $ | 74,643 | $ | 60 | $ | 5,942,332 | ||||||||
Discounts, returns & allowances | (387,777 | ) | (3,278 | ) | - | (391,055 | ) | |||||||||
Freight income | 6,405 | - | - | 6,405 | ||||||||||||
Total revenue | 5,486,257 | 71,365 | 60 | 5,557,682 | ||||||||||||
Cost of goods sold | 3,606,302 | 37,729 | (156 | ) | 3,643,875 | |||||||||||
Gross profit | $ | 1,879,955 | $ | 33,636 | $ | 216 | 1,913,807 | |||||||||
Selling, general, and administrative expenses | 1,284,531 | |||||||||||||||
Interest expense, net | 106,773 | |||||||||||||||
Other (income) expense, net (primarily, gain on sale of segment) | (2,222,068 | ) | ||||||||||||||
Income tax expense | 1,035,000 | |||||||||||||||
Net income from discontinued operations | $ | 1,709,571 |
For the six months ended March 31, 2011 (Unaudited) | ||||||||||||||||
ATV Accessories | Plazco | Perf-Form | Total | |||||||||||||
Revenue | ||||||||||||||||
Sales- general | $ | 6,123,303 | $ | 181,967 | $ | 57,521 | $ | 6,362,791 | ||||||||
Discounts, returns & allowances | (532,018 | ) | (14,375 | ) | (3,017 | ) | (549,410 | ) | ||||||||
Freight income | 45,993 | 1,501 | 523 | 48,017 | ||||||||||||
Total revenue | 5,637,278 | 169,093 | 55,027 | 5,861,398 | ||||||||||||
Cost of goods sold | 4,559,600 | 149,859 | 82,458 | 4,791,917 | ||||||||||||
Inventory impairment adjustment | 432,826 | 148,000 | 75,134 | 655,960 | ||||||||||||
Gross profit (loss) | $ | 644,852 | $ | (128,766 | ) | $ | (102,565 | ) | $ | 413,521 | ||||||
Selling, general, and administrative expenses | 2,106,557 | |||||||||||||||
Intangible impairment | 110,186 | |||||||||||||||
Interest expense, net | 140,485 | |||||||||||||||
Other (income) expense, net | 19,258 | |||||||||||||||
Income tax benefit | (661,892 | ) | ||||||||||||||
Net loss from discontinued operations | $ | (1,301,073 | ) |
December 31, | December 31, | |||||||
2011 | 2010 | |||||||
Change in tax allowance | 57,000 | - | ||||||
Deferred tax expense (benefit) | 984,000 | (146,000 | ) | |||||
Total tax expense (benefit) | $ | 1,035,000 | $ | (146,000 | ) | |||
December 31, | September 30, | |||||||
2011 | 2011 | |||||||
Deferred Tax Assets: | ||||||||
Capitalized fees | $ | 33,000 | $ | 33,000 | ||||
Accrued expenses | 205,000 | 227,000 | ||||||
Allowance for uncollectible accounts | 26,000 | 26,000 | ||||||
Charitable contributions | - | 15,000 | ||||||
NOL carryforward | 1,227,000 | 2,137,000 | ||||||
State NOL carryforward | 31,000 | 68,000 | ||||||
Business credit carryforward | 239,000 | 187,000 | ||||||
Total Deferred Assets | 1,761,000 | 2,693,000 | ||||||
Deferred Tax Liability: | ||||||||
Property and equipment | (1,992,000 | ) | (1,992,000 | ) | ||||
Less valuation allowance allowance | (251,000 | ) | (200,000 | ) | ||||
Net Deferred Tax Asset (Liability) | $ | (482,000 | ) | $ | 501,000 | |||
December 31, | September 30, | |||||||
2011 | 2010 | |||||||
Current Assets | $ | 552,000 | $ | 625,000 | ||||
Long-Term Liabilities | (1,034,000 | ) | (124,000 | ) | ||||
Net Deferred Tax Asset (Liability) | $ | (482,000 | ) | $ | 501,000 | |||
For the three months ended December 31, 2011 (Unaudited) | For the three months ended December 31, 2010 (Unaudited) | |||||||||||||||||||||||
Continuing Operations | Discontinued Operations | Total | Continuing Operations | Discontinued Operations | Total | |||||||||||||||||||
STATEMENT OF OPERATIONS | ||||||||||||||||||||||||
Sales | $ | 571,803 | $ | 5,546,597 | $ | 6,118,400 | $ | 693,049 | $ | 3,544,257 | $ | 4,237,306 | ||||||||||||
Cost of goods sold | 492,991 | 3,641,533 | 4,134,524 | 657,664 | 2,813,064 | 3,470,728 | ||||||||||||||||||
Gross profit | 78,812 | 1,905,064 | 1,983,876 | 35,385 | 731,193 | 766,578 | ||||||||||||||||||
Sales, general & admin | 113,133 | 1,277,209 | 1,390,342 | 183,792 | 943,050 | 1,126,842 | ||||||||||||||||||
Income (Loss) from operations | (34,321 | ) | 627,855 | 593,534 | (148,407 | ) | (211,857 | ) | (360,264 | ) | ||||||||||||||
Other income (expense) | (10,960 | ) | 2,115,531 | 2,104,571 | (14,812 | ) | (80,004 | ) | (94,816 | ) | ||||||||||||||
Net income (loss) pre tax | (45,281 | ) | 2,743,386 | 2,698,105 | (163,219 | ) | (291,861 | ) | (455,080 | ) | ||||||||||||||
Net income (loss) | $ | (45,281 | ) | $ | 1,708,386 | $ | 1,663,105 | $ | (102,419 | ) | $ | (167,760 | ) | $ | (309,080 | ) |
Three Months Ended March 31, | ||||||||||||||||
2012 (Unaudited) | 2011 (Unaudited) | |||||||||||||||
Revenue | $ | 1,956,444 | 100.00 | % | $ | 660,220 | 100.00 | % | ||||||||
Cost of goods sold | 1,808,890 | 92.46 | % | 702,331 | 106.38 | % | ||||||||||
Gross profit (loss) | 147,554 | 7.54 | % | (90,203 | ) | -13.66 | % | |||||||||
Selling, general, and administrative expenses | 724,259 | 37.02 | % | 240,404 | 36.41 | % | ||||||||||
Loss from operations | (576,705 | ) | -29.48 | % | (330,607 | ) | -50.08 | % | ||||||||
Other income (expense), net | (23,350 | ) | -1.19 | % | (23,998 | ) | -3.63 | % | ||||||||
Loss from continuing operations before income tax benefit | (600,055 | ) | -30.67 | % | (354,605 | ) | -53.71 | % | ||||||||
Income tax benefit | - | 0.00 | % | 123,623 | 18.72 | % | ||||||||||
Net loss from continuing operations | (600,055 | ) | -30.67 | % | (230,982 | ) | -34.99 | % | ||||||||
Net income (loss) from discontinued operations, net of tax | 1,185 | 0.06 | % | (1,120,729 | ) | -169.75 | % | |||||||||
Net Loss | $ | (598,870 | ) | -30.61 | % | $ | (1,351,711 | ) | -204.74 | % |
For the three months ended December 31, 2011 (Unaudited) | For the three months ended December 31, 2010 (Unaudited) | |||||||||||||||||||||||
Continuing Operations | Discontinued Operations | Total | Continuing Operations | Discontinued Operations | Total | |||||||||||||||||||
Total revenue by segment | ||||||||||||||||||||||||
CCAC ATV | $ | - | $ | 5,486,257 | $ | 5,486,257 | $ | - | $ | 3,441,588 | $ | 3,441,588 | ||||||||||||
Plazco | - | 60,280 | 60,280 | - | 73,846 | 73,846 | ||||||||||||||||||
Perf-Form | - | 60 | 60 | - | 28,823 | 28,823 | ||||||||||||||||||
Imdyne | 571,803 | - | 571,803 | 693,049 | - | 693,049 | ||||||||||||||||||
Total revenue by segment | $ | 571,803 | $ | 5,546,597 | $ | 6,118,400 | $ | 693,049 | $ | 3,544,257 | $ | 4,237,306 | ||||||||||||
Gross profit (loss) by segment | ||||||||||||||||||||||||
CCAC ATV | $ | - | $ | 1,879,955 | $ | 1,879,955 | $ | - | $ | 728,485 | $ | 728,485 | ||||||||||||
Plazco | - | 24,893 | 24,893 | - | 10,430 | 10,430 | ||||||||||||||||||
Perf-Form | - | 216 | 216 | - | (7,722 | ) | (7,722 | ) | ||||||||||||||||
Imdyne | 78,812 | - | 78,812 | 35,385 | - | 35,385 | ||||||||||||||||||
Gross profit | 78,812 | 1,905,064 | 1,983,876 | 35,385 | 731,193 | 766,578 | ||||||||||||||||||
Sales, general & admin | 113,133 | 1,277,209 | 1,390,342 | 183,792 | 943,050 | 1,126,842 | ||||||||||||||||||
Interest expense, net | 10,960 | 106,320 | 117,280 | 14,812 | 83,937 | 98,749 | ||||||||||||||||||
(Gain) loss on sale of assets | - | (2,221,851 | ) | (2,221,851 | ) | - | 23,142 | 23,142 | ||||||||||||||||
Other (inc)/exp, net | - | - | - | - | (27,075 | ) | (27,075 | ) | ||||||||||||||||
Income tax expense (benefit) | - | 1,035,000 | 1,035,000 | (21,899 | ) | (124,101 | ) | (146,000 | ) | |||||||||||||||
Net income (loss) | $ | (45,281 | ) | $ | 1,708,386 | $ | 1,663,105 | $ | (141,320 | ) | $ | (167,760 | ) | $ | (309,080 | ) |
Six Months Ended March 31, | ||||||||||||||||
2012 (Unaudited) | 2011 (Unaudited) | |||||||||||||||
Revenue | $ | 2,528,247 | 100.00 | % | $ | 1,353,269 | 100.00 | % | ||||||||
Cost of goods sold | 2,301,881 | 91.05 | % | 1,359,995 | 100.50 | % | ||||||||||
Gross profit (loss) | 226,366 | 8.95 | % | (6,726 | ) | -0.50 | % | |||||||||
Selling, general, and administrative expenses | 837,392 | 33.12 | % | 424,196 | 31.35 | % | ||||||||||
Loss from operations | (611,026 | ) | -24.17 | % | (430,922 | ) | -31.84 | % | ||||||||
Other income (expense), net | (34,310 | ) | -1.36 | % | (65,126 | ) | -4.81 | % | ||||||||
Loss from continuing operations before income tax benefit | (645,336 | ) | -25.53 | % | (496,048 | ) | -36.66 | % | ||||||||
Income tax benefit | - | 0.00 | % | 136,331 | 10.07 | % | ||||||||||
Net income (loss) from continuing operations | (629,336 | ) | -24.89 | % | (359,717 | ) | -26.58 | % | ||||||||
Net Income (loss) from discontinued operations, net of tax | 1,709,591 | 70.03 | % | (1,301,073 | ) | -96.14 | % | |||||||||
Net income (loss) | $ | 1,064,235 | 42.09 | % | $ | (1,660,790 | ) | -122.72 | % |
Simonsen Ironworks Inc. | ||||||||||||||||||||||||
For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||
For the three months ended December 31, | June 30, | June 30, | ||||||||||||||||||||||
2011 | 2010 | 2012 (Unaudited) | 2011 (Unaudited) | 2012 (Unaudited) | 2011 Unaudited | |||||||||||||||||||
Imdyne | Imdyne | |||||||||||||||||||||||
Materials | 58.11 | % | 50.86 | % | 69.90 | % | 64.26 | % | 66.58 | % | 59.63 | % | ||||||||||||
Direct labor | 7.20 | % | 6.59 | % | 7.74 | % | 7.66 | % | 7.62 | % | 7.13 | % | ||||||||||||
Applied overhead | 17.79 | % | 19.55 | % | ||||||||||||||||||||
Mfg variance | -3.03 | % | 1.04 | % | -1.20 | % | 1.56 | % | ||||||||||||||||
Subcontract | 0.42 | % | 1.17 | % | 0.54 | % | 1.19 | % | 0.51 | % | 1.18 | % | ||||||||||||
Mfg variance | 5.09 | % | 3.99 | % | ||||||||||||||||||||
Unapplied overhead | -3.84 | % | 8.21 | % | ||||||||||||||||||||
Other | 1.46 | % | 4.52 | % | ||||||||||||||||||||
Total costs of goods sold | 86.22 | % | 94.89 | % | ||||||||||||||||||||
Royalty | 0.00 | % | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||||||||||
Burden | 1.50 | % | 9.24 | % | 1.27 | % | 15.21 | % | ||||||||||||||||
Mfg overhead | 15.81 | % | 22.99 | % | 16.26 | % | 15.79 | % | ||||||||||||||||
92.46 | % | 106.38 | % | 91.05 | % | 100.50 | % |
For the three months ended December 31, 2011 | ||||||||||||||||
ATV | Plazco | Perf-Form | Total Disc Ops | |||||||||||||
Materials | 50.88 | % | 12.43 | % | 4933.33 | % | 50.52 | % | ||||||||
Direct labor | 4.50 | % | 4.88 | % | 520.00 | % | 4.51 | % | ||||||||
Applied overhead | 12.47 | % | 24.30 | % | 1480.00 | % | 12.61 | % | ||||||||
Subcontract | 0.25 | % | 9.84 | % | 175.00 | % | 0.35 | % | ||||||||
Mfg variance | 0.31 | % | 8.00 | % | 0.00 | % | 0.40 | % | ||||||||
Unapplied overhead | -3.14 | % | -2.37 | % | -326.67 | % | -3.13 | % | ||||||||
Other | 0.45 | % | 1.62 | % | -7041.67 | % | 0.39 | % | ||||||||
Total costs of goods sold | 65.73 | % | 58.70 | % | -260.00 | % | 65.65 | % |
For the three months ended December 31, 2010 | ||||||||||||||||
ATV | Plazco | Perf-Form | Total Disc Ops | |||||||||||||
Materials | 49.73 | % | 25.68 | % | 35.14 | % | 49.11 | % | ||||||||
Direct labor | 4.66 | % | 6.70 | % | 18.59 | % | 4.82 | % | ||||||||
Applied overhead | 14.12 | % | 25.59 | % | 51.06 | % | 14.66 | % | ||||||||
Subcontract | 0.99 | % | 11.57 | % | 7.11 | % | 1.26 | % | ||||||||
Mfg variance | 0.43 | % | 7.53 | % | 3.03 | % | 0.60 | % | ||||||||
Unapplied overhead | 7.30 | % | 7.31 | % | 11.75 | % | 7.34 | % | ||||||||
Other | 1.60 | % | 1.49 | % | 0.11 | % | 1.59 | % | ||||||||
Total costs of goods sold | 78.83 | % | 85.88 | % | 126.79 | % | 79.37 | % |
· |
· |
· | Compliance costs increased approximately $200,000 due to costs related to restatements of prior period data as |
2011 (Unaudited) | 2010 (Unaudited) | |||||||
Net cash provided by operating activities of continuing operations | $ | 857,036 | $ | 1,118,561 | ||||
Net cash used for investing activities of continuing operations | - | (28,744 | ) | |||||
Net cash used for financing activities of continuing operations | (363,202 | ) | (994,647 | ) | ||||
Net cash provided by (used for) discontinued operations | (434,174 | ) | 9,712 | |||||
$ | 59,660 | $ | 104,882 |
2012 (Unaudited) | 2011 | |||||||
Net cash provided by (used for) operating activities of continuing operations | $ | 16,695 | $ | 1,840,799 | ||||
Net cash used for investing activities of continuing operations | 122,902 | (73,430 | ) | |||||
Net cash (used for) financing activities of continuing operations | (138,766 | ) | (1,771,123 | ) | ||||
$ | (8,899 | ) | $ | 104,882 |
By: | /s/ Robert Davis | ||||
Robert Davis | |||||
Chief Executive Officer |
Name and Signature | Title | Date | ||
/s/ Robert Davis | Chief Financial Officer, Chief Operating Officer, Chief Executive Officer, Treasurer, Secretary and Director | May | ||
Robert Davis | (principal executive, financial and accounting officer) | |||