Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Sep. 15, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | Smith-Midland Corporation | |
Entity Central Index Key | 0000924719 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Jun. 30, 2023 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2023 | |
Entity Common Stock Shares Outstanding | 5,256,413 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Entity File Number | 1-13752 | |
Entity Incorporation State Country Code | DE | |
Entity Tax Identification Number | 54-1727060 | |
Entity Address Address Line 1 | 5119 Catlett Road | |
Entity Address Address Line 2 | P.O. Box 300 | |
Entity Address City Or Town | Midland | |
Entity Address State Or Province | VA | |
Entity Address Postal Zip Code | 22728 | |
City Area Code | 540 | |
Local Phone Number | 439-3266 | |
Security 12b Title | Common Stock, $0.01 par value per share | |
Trading Symbol | SMID | |
Security Exchange Name | NASDAQ |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash | $ 4,727 | $ 6,726 |
Accounts receivable, net | ||
Trade - billed (less allowance for credit losses of approximately $912 and $781, respectively), including contract retentions | 16,554 | 16,223 |
Trade - unbilled | 653 | 990 |
Inventories, net | ||
Raw materials | 2,396 | 1,776 |
Finished goods | 2,356 | 2,042 |
Prepaid expenses | 1,212 | 706 |
Refundable income taxes | 577 | 477 |
Total current assets | 28,475 | 28,940 |
Property and equipment, net | 26,886 | 25,124 |
Other assets | 356 | 249 |
Total assets | 55,717 | 54,313 |
Current liabilities | ||
Accounts payable - trade | 5,684 | 5,816 |
Accrued expenses and other liabilities | 874 | 799 |
Deferred revenue, current | 1,991 | 2,243 |
Accrued compensation | 792 | 788 |
Accrued income taxes | 0 | 146 |
Operating lease liabilities, current | 51 | 77 |
Current maturities of notes payable | 629 | 618 |
Customer deposits | 2,985 | 737 |
Total current liabilities | 13,006 | 11,224 |
Deferred revenue, non-currecnt | 2,633 | 2,174 |
Operating lease liabilities non-current | 24 | 45 |
Notes payable - less current maturities | 5,412 | 5,730 |
Deferred tax liability | 2,181 | 2,085 |
Total liabilities | 23,256 | 21,258 |
Stockholders' equity | ||
Preferred stock, $.01 par value; authorized 1,000,000 shares, none issued and outstanding | 0 | 0 |
Common stock, $.01 par value; authorized 8,000,000 shares; 5,345,189 and 5,345,189 issued and 5,256,413 and 5,256,413 outstanding, respectively | 53 | 53 |
Additional paid-in capital | 7,611 | 7,440 |
Treasury stock, at cost, 40,920 shares | (102) | (102) |
Retained earnings | 24,899 | 25,664 |
Total stockholders' equity | 32,461 | 33,055 |
Total liabilities and stockholders' equity | $ 55,717 | $ 54,313 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Allowance For Doubtful Accounts | $ 912 | $ 781 |
Stockholders' Equity | ||
Preferred Stock, Par Value | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 1,000,000 | 1,000,000 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Stock, Par Value | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 8,000,000 | 8,000,000 |
Common Stock, Shares Issued | 5,345,189 | 5,345,189 |
Common Stock, Shares Outstanding | 5,256,413 | 5,256,413 |
Treasury Shares | 40,920 | 40,920 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue | ||||
Product sales | $ 10,702 | $ 6,788 | $ 18,944 | $ 12,638 |
Barrier rentals | 700 | 1,962 | 1,819 | 3,447 |
Royalty income | 594 | 771 | 1,005 | 1,198 |
Shipping and installation revenue | 2,702 | 3,732 | 5,772 | 6,405 |
Total revenue | 14,698 | 13,253 | 27,540 | 23,688 |
Cost of goods sold | 12,912 | 10,023 | 23,588 | 18,810 |
Gross profit | 1,786 | 3,230 | 3,952 | 4,878 |
Operating expenses | ||||
General and administrative expenses | 1,884 | 1,409 | 3,233 | 2,568 |
Selling expenses | 883 | 725 | 1,645 | 1,388 |
Total operating expenses | 2,767 | 2,134 | 4,878 | 3,956 |
Operating income (loss) | (981) | 1,096 | (926) | 922 |
Other income (expense) | ||||
Interest expense | (64) | (71) | (128) | (118) |
Interest income | 5 | 3 | 10 | 6 |
Gain on sale of assets | 116 | 27 | 199 | 65 |
Other income | 32 | 162 | 57 | 183 |
Total other income (expense) | 89 | 121 | 138 | 136 |
Income (loss) before income tax expense (benefit) | (892) | 1,217 | (788) | 1,058 |
Income tax expense (benefit) | (110) | 307 | (87) | 267 |
Net income (loss) | $ (782) | $ 910 | $ (701) | $ 791 |
Basic and diluted earnings (loss) per common share | $ (0.15) | $ 0.17 | $ (0.13) | $ 0.15 |
Weighted average number of common shares outstanding: | ||||
Basic | 5,256 | 5,230 | 5,256 | 5,230 |
Diluted | 5,256 | 5,266 | 5,256 | 5,262 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock |
Balance, shares at Dec. 31, 2021 | 5,353,095 | 40,920 | |||
Balance, amount at Dec. 31, 2021 | $ 31,750 | $ 53 | $ 6,935 | $ 24,864 | $ (102) |
Stock-Based Compensation Expense | 126 | 0 | 126 | 0 | 0 |
Net income (loss) | (119) | $ 0 | 0 | (119) | $ 0 |
Balance, shares at Mar. 31, 2022 | 5,353,095 | 40,920 | |||
Balance, amount at Mar. 31, 2022 | 31,757 | $ 53 | 7,061 | 24,745 | $ (102) |
Stock-Based Compensation Expense | 126 | 0 | 126 | 0 | 0 |
Net income (loss) | 910 | $ 0 | 0 | 910 | $ 0 |
Balance, shares at Jun. 30, 2022 | 5,353,095 | 40,920 | |||
Balance, amount at Jun. 30, 2022 | 32,793 | $ 53 | 7,187 | 25,655 | $ (102) |
Balance, shares at Dec. 31, 2022 | 5,345,189 | 40,920 | |||
Balance, amount at Dec. 31, 2022 | 33,055 | $ 53 | 7,440 | 25,664 | $ (102) |
Stock-Based Compensation Expense | 85 | 0 | 85 | 0 | 0 |
Net income (loss) | 80 | 0 | 0 | 80 | 0 |
Adoption of ASU 2016-13 | (63) | $ 0 | 0 | (63) | $ 0 |
Balance, shares at Mar. 31, 2023 | 5,345,189 | 40,920 | |||
Balance, amount at Mar. 31, 2023 | 33,157 | $ 53 | 7,525 | 25,681 | $ (102) |
Stock-Based Compensation Expense | 86 | 0 | 86 | 0 | 0 |
Net income (loss) | (782) | $ 0 | 0 | (782) | $ 0 |
Balance, shares at Jun. 30, 2023 | 5,345,189 | 40,920 | |||
Balance, amount at Jun. 30, 2023 | $ 32,461 | $ 53 | $ 7,611 | $ 24,899 | $ (102) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (701) | $ 791 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 1,176 | 1,400 |
(Gain) loss on sale of assets | (199) | (65) |
Allowance for credit losses | 67 | 45 |
Stock-based compensation expense | 171 | 253 |
Deferred taxes | 96 | 0 |
(Increase) decrease in | ||
Accounts receivable - billed | (462) | (2,700) |
Accounts receivable - unbilled | 337 | (121) |
Inventories, net | (934) | (686) |
Prepaid expenses and other assets | (625) | 61 |
Refundable income taxes | (100) | 177 |
Increase (decrease) in | ||
Accounts payable - trade | (132) | 1,661 |
Accrued expenses and other liabilities | 75 | 364 |
Deferred revenue | 207 | (55) |
Accrued compensation | 4 | (265) |
Accrued income taxes | (146) | (1,912) |
Deferred buy-back lease obligation | 0 | (1,617) |
Customer deposits | 2,248 | (16) |
Net cash provided by (used in) operating activities | 1,082 | (2,685) |
Cash flows from investing activities: | ||
Purchases of property and equipment | (2,974) | (1,962) |
Deferred buy-back asset | 0 | 988 |
Proceeds from the sale of property and equipment | 199 | 65 |
Net cash provided by (used in) investing activities | (2,775) | (909) |
Cash flows from financing activities: | ||
Proceeds from long-term borrowings | 0 | 2,805 |
Repayments of long-term borrowings | (306) | (278) |
Net cash provided by (used in) financing activities | (306) | 2,527 |
Net increase (decrease) in cash | (1,999) | (1,067) |
Beginning of period | 6,726 | 13,492 |
End of period | 4,727 | 12,425 |
Supplemental Cash Flow Information: | ||
Cash payments for interest | 128 | 118 |
Cash payments for income taxes | 65 | 2,179 |
Capital expenditures included in accounts payable | $ 2,244 | $ 2,014 |
INTERIM FINANCIAL REPORTING
INTERIM FINANCIAL REPORTING | 6 Months Ended |
Jun. 30, 2023 | |
INTERIM FINANCIAL REPORTING | |
INTERIM FINANCIAL REPORTING | 1. INTERIM FINANCIAL REPORTING Basis of Presentation The accompanying unaudited condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information, and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, we have condensed or omitted certain information and footnote disclosures that are included in our annual consolidated financial statements. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements, summary of significant accounting policies, and the related notes included in our Annual Report on Form 10-K for the year ended December 31, 2022. The condensed consolidated December 31, 2022 balance sheet was derived from the audited financial statements included in the Form 10-K. Dollar amounts in the footnotes are stated in thousands, except for per share data. In the opinion of management, these condensed consolidated financial statements reflect all adjustments (which consist of normal, recurring adjustments) necessary for a fair presentation of the financial position and results of operations and cash flows for the periods presented. The results disclosed in the condensed consolidated statements of income are not necessarily indicative of the results to be expected in any future periods. Recently Issued Accounting Pronouncement The FASB issued ASU No. 2016-13, “ Measurement of Credit Losses on Financial Instruments Revenue Recognition Product Sales - Over Time Under Topic 606, the Company recognizes revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for goods or services provided. Revenue associated with contracts with customers for customized products is recognized over time as the Company's performance creates or enhances customer-controlled assets or creates or enhances an asset with no alternative use, which the Company has an enforceable right to receive compensation as defined under the contract for performance completed. To determine the amount of revenue to recognize over time, the Company recognizes revenue over the contract terms based on the output method. The Company applied the "as invoiced" practical expedient as the amount of consideration the Company has the right to invoice corresponds directly with the value of the Company's performance to date. As the output method is driven by units produced, the Company recognizes revenues based on the value transferred to the customer relative to the remaining value to be transferred. The Company also matches the costs associated with the units produced. If a contract is projected to result in a loss, the entire contract loss is recognized in the period when the loss was first determined and the amount of the loss is updated in subsequent reporting periods. Revenue recognition also includes an amount related to a contract asset or contract liability. If the recognized revenue is greater than the amount billed to the customer, a contract asset is recorded in accounts receivable trade - unbilled. Conversely, if the amount billed to the customer is greater than the recognized revenue, a contract liability is recorded in customer deposits. Changes in the job performance, job conditions, and final contract settlements are factors that influence management’s assessment of total contract value and therefore, profit and revenue recognition. A portion of the work the Company performs requires financial assurances in the form of performance and payment bonds or letters of credit at the time of execution of the contract. Some contracts include retention provisions of up to 10%, which are generally withheld from each progress payment as retainage until the contract work has been completed and approved. Product Sales - Point in Time For certain product sales that do not meet the over time criteria, under Topic 606 the Company recognizes revenue when the product has been shipped to the destination in accordance with the terms outlined in the contract where a present obligation to pay exists and the customers have gained control of the product. Accounts Receivable and Contract Balances The timing of when we bill our customers is generally dependent upon advance billing terms, milestone billings based on the completion of certain phases of the work, or when services are provided or products are shipped. Projects with performance obligations recognized over time that have costs and estimated earnings recognized to date in excess of cumulative billings are reported on our Condensed Consolidated Balance Sheets as "Accounts receivable trade - unbilled" (contract assets). Projects with performance obligations recognized over time that have cumulative billings in excess of costs and estimated earnings recognized to date, are reported on our Condensed Consolidated Balance Sheets as "Customer deposits" (contract liabilities). Any uncollected billed amounts for our performance obligations recognized over time, including contract retentions, are recorded within “Accounts receivable trade – billed”. On June 30, 2023, and December 31, 2022, accounts receivable included contract retentions of approximately $972 and $932, respectively, which are considered contract assets. Our billed and unbilled revenue may be exposed to potential credit risk if our customers should encounter financial difficulties, and we maintain an allowance for estimated expected credit losses. A considerable amount of judgment is required when determining expected credit losses. Estimates of such expected losses are recorded based on historical losses experienced by the Company, current macro- and micro-economic conditions, and expected macro- and micro-economic conditions. Additionally, additional reserves are accumulated when we believe a specific customer may not be able to meet its financial obligations due to deterioration in financial condition or credit rating. Factors relevant to our assessment include our prior collection history with our customers, the related aging of past due balances, projections of credit losses based on historical trends or past events, and forecasts of future economic conditions. On June 30, 2023, and December 31, 2022, the allowance was $912 and $781, respectively. The change in the allowance for the six months ended June 30, 2023 was as follows: Balance at December 31, 2022 $ 781 Cumulative Effect of Adoption of ASU 2016-13 64 Provision for Expected Credit Losses 67 Balance at June 30, 2023 $ 912 Sale to Customer with a Buy-Back Agreement The Company entered into a buy-back agreement with one specific customer. Under this agreement, the Company guaranteed to buy-back barrier at a predetermined price at the end of the long-term project, subject to the condition of the product. Although the Company received payment in full when the product was produced, we were required to account for these transactions as operating leases. The amount of sale proceeds equal to the buy-back obligation was deferred until the buy-back was executed. The remaining sale proceeds were deferred in the same account and recognized on a straight-line basis over the usage period, such usage period commencing on delivery to the job-site and ending at the time the buy-back was executed. The Company capitalized the cost of the product on the Condensed Consolidated Balance Sheet, and depreciated the value, less residual value, to cost of leasing revenue in "Cost of goods sold" over the estimated useful life of the asset. The deferred revenue and deferred costs related to the buy-back agreement were fully amortized as of December 31, 2022 and, therefore, the accounting as described has no impact on the six month period ended June 30, 2023. Pursuant to an amendment entered into by the Company with the customer on April 13, 2022, the Company agreed to purchase barrier back in the amount equal to the buy-back guarantee. Accordingly, the Company settled any remaining deferred balances, in excess of the buy-back payment, to leasing revenue, and reclassified the net book value of the purchased product to "Property and equipment, net". The revenue was recognized in accordance with Topic 842, Leases Barrier Rentals - Lease Income Leasing fees are paid by customers at the beginning of the lease agreement and are recorded as deferred revenue. The deferred revenue is then recognized each month as lease income for the duration of the lease, in accordance with Topic 842, Leases Royalty Income The Company licenses certain products to other precast companies to produce the Company's products to engineering specifications under the licensing agreements. The agreements are typically for five-year terms and require royalty payments from 4% to 6% of total sales of licensed products, which are paid every month. The revenues from licensing agreements are recognized in the month earned, in accordance with Topic 606-10-55-65. Shipping and Installation Shipping and installation revenues are recognized as a distinct performance obligation in the period the shipping and installation services are provided to the customer, in accordance with Topic 606. Disaggregation of Revenue In the following table, revenue is disaggregated by primary sources of revenue: Revenue by Type Three Months Ended June 30, Six Months Ended June 30, 2023 2022 $ Change % Change 2023 2022 $ Change % Change Soundwall Sales $ 1,678 $ 430 $ 1,248 290 % $ 2,724 $ 1,794 $ 930 52 % Architectural Panel Sales 320 1,347 (1,027 ) (76 )% 729 2,253 (1,524 ) (68 )% SlenderWall Sales 1,487 51 1,436 2816 % 2,767 1,007 1,760 175 % Miscellaneous Wall Sales 2,933 637 2,296 360 % 4,138 988 3,150 319 % Barrier Sales 1,824 2,338 (514 ) (22 )% 4,583 3,252 1,331 41 % Easi-Set Building Sales 1,442 948 494 52 % 2,450 1,563 887 57 % Utility Sales 622 666 (44 ) (7 )% 896 1,132 (236 ) (21 )% Miscellaneous Sales 396 371 25 7 % 657 649 8 1 % Total Product Sales 10,702 6,788 3,914 58 % 18,944 12,638 6,306 50 % Barrier Rentals 700 1,962 (1,262 ) (64 )% 1,819 3,447 (1,628 ) (47 )% Royalty Income 594 771 (177 ) (23 )% 1,005 1,198 (193 ) (16 )% Shipping and Installation Revenue 2,702 3,732 (1,030 ) (28 )% 5,772 6,405 (633 ) (10 )% Total Service Revenue 3,996 6,465 (2,469 ) (38 )% 8,596 11,050 (2,454 ) (22 )% Total Revenue $ 14,698 $ 13,253 $ 1,445 11 % $ 27,540 $ 23,688 $ 3,852 16 % The revenue items: soundwall sales, architectural panel sales, SlenderWall sales, miscellaneous wall sales, miscellaneous sales, barrier rentals, and royalty income are recognized as revenue over time. The revenue items: barrier sales, Easi-Set and Easi-Span building sales, utility sales, and shipping and installation revenue are recognized as revenue at a point in time. Warranties Smith-Midland products are typically sold pursuant to an implicit warranty as to merchantability only. Warranty claims are reviewed and resolved on a case-by-case method. Although the Company does incur costs for warranty claims, historically such amounts are minimal. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Fair Value of Financial Instruments The carrying value for each of the Company’s financial instruments, including cash equivalents, accounts receivable, accounts payable, and accrued expenses, are carried at cost which approximates fair value because of the short-term nature of those instruments and are categorized as Level 1 within the GAAP fair value hierarchy. The estimated fair value of the long-term debt approximates carrying value based on current rates offered to the Company for debt of similar maturities and is categorized as Level 2 liabilities within the GAAP fair value hierarchy. Concentration of Risk Historically, various customers have comprised greater than 10% of revenue during a given quarter or year. These customers are typically not the same quarter to quarter or year to year. In the event a customer were to go out of business during a project, it is likely that the owner of the project would assign a new contractor to the job, and the Company would complete its scope of work. Therefore, the Company believes that it does not have a short-term vulnerability of severe impact to operations. The Company has determined that no customer, if lost, would result in a near term severe impact to the Company’s operations. No customer represented greater than 10% of the Company’s consolidated net accounts receivable position, as of either June 30, 2023 or December 31, 2022. For the three month period ended June 30, 2023, the Company derived approximately 12% and 15% of its revenue from two separate customers. No customer derived more than 10% of the Company’s revenue for the three month period ended June 30, 2022. For the six month period ended June 30, 2023, the Company derived approximately 17% of its revenue from one customer, and derived 13% from a different customer for the six month period ended June 30, 2022. Segment Reporting Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision-maker, or decision-making group, in deciding how to allocate resources and assess performance. The Company currently operates in one operating and reportable business segment for financial reporting purposes. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 6 Months Ended |
Jun. 30, 2023 | |
EARNINGS (LOSS) PER SHARE | |
EARNINGS (LOSS) PER SHARE | 2. EARNINGS (LOSS) PER SHARE Earnings (loss) per share are calculated as follows (in thousands, except earnings per share): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Basic earnings (loss) per common share Net income (loss) $ (782 ) $ 910 $ (701 ) $ 791 Weighted average shares outstanding 5,256 5,230 5,256 5,230 Basic earnings (loss) per common share $ (0.15 ) $ 0.17 $ (0.13 ) $ 0.15 Diluted earnings (loss) per common share Net income (loss) $ (782 ) $ 910 $ (701 ) $ 791 Weighted average shares outstanding 5,256 5,230 5,256 5,230 Dilutive effect of restricted stock — 36 — 32 Total weighted average shares outstanding 5,256 5,266 5,256 5,262 Diluted earnings (loss) per common share $ (0.15 ) $ 0.17 $ (0.13 ) $ 0.15 There was no restricted stock excluded from the diluted earnings per share calculation for the three and six month periods ended June 30, 2023 and June 30, 2022. |
NOTES PAYABLE
NOTES PAYABLE | 6 Months Ended |
Jun. 30, 2023 | |
NOTES PAYABLE | |
NOTES PAYABLE | 3. NOTES PAYABLE The Company has a mortgage note payable to Summit Community Bank (the “Bank”) for the construction of its North Carolina facility. The note carries a ten-year term at a fixed interest rate of 3.64% annually per the Promissory Note Rate Conversion Agreement, with monthly payments of $22, and is secured by all of the assets of Smith-Carolina and a guarantee by the Company. The loan matures on October 10, 2029. The balance of the note payable on June 30, 2023 was $1,504. On March 27, 2020, the Company completed the refinancing of existing loans with a note payable to the Bank for $2,701. A portion of the funds, $678, was secured for improvements to an existing five-acre parcel for additional storage at the Midland, Virginia plant. The loan is collateralized by a first lien position on the Virginia property, building, and assets. The interest rate per the Promissory Note is fixed at 3.99% per annum, with principal and interest payments payable monthly over 120 months for $27. The loan matures on March 27, 2030. The balance of the note payable on June 30, 2023 was $1,940. On February 10, 2022, the Company completed the financing for its prior acquisition of certain real property in Midland, Virginia totaling approximately 29.8 acres with a note payable to the Bank for $2,805. The loan is collateralized by a first lien position on the related real property. The interest rate is fixed at 4.09% per annum, with principal and interest payments payable monthly over 180 months for $21. The loan matures on February 10, 2037. The balance of the note payable on June 30, 2023 was $2,620. The Company additionally has two smaller installment loans with annual interest rates of 2.90% and 3.99%, maturing in 2025, with balances totaling $40. Under the loan covenants with the Bank, the Company is limited to annual capital expenditures of $5,000 and must maintain tangible net worth of $10,000. The Company is in compliance with all covenants pursuant to the loan agreements as of June 30, 2023. In addition to the notes payable discussed above, the Company has a $5,000 line of credit with the Bank with no balance outstanding as of June 30, 2023. The line of credit is evidenced by a commercial revolving promissory note, which carries a variable interest rate of prime, with a floor of 3.50%, and matures on October 1, 2023. The loan is collateralized by a first lien position on the Company's accounts receivable and inventory and a second lien position on all other business assets. Key provisions of the line of credit require the Company (i) to obtain bank approval for capital expenditures in excess of $5,000 during the term of the loan and (ii) to obtain bank approval prior to its funding of any acquisition. On October 1, 2022, the Company received a Commitment Letter from the Bank to provide a guidance line of credit specifically to purchase business equipment in an amount up to $1,500. The commitment provides for the purchase of equipment for which a note payable will be executed with a term not to exceed five years with an interest rate at the Wall Street Journal prime rate plus 0.50% with a floor of 3.50% per annum. The loan is collateralized by a first lien position on all equipment purchased under the line. The commitment for the guidance line of credit matures on October 1, 2023. As of June 30, 2023, the Company had not purchased any equipment pursuant to the $1,500 commitment. |
STOCK COMPENSATION
STOCK COMPENSATION | 6 Months Ended |
Jun. 30, 2023 | |
STOCK COMPENSATION | |
STOCK COMPENSATION | 4. STOCK COMPENSATION The fair value of restricted stock awards is estimated to be the market price of the Company's common stock at the close of the date of grant. Restricted stock activity during the six months ended June 30, 2023, is as follows: Performance- Based Service-Based Number of Shares Weighted Average Grant Date Fair Value per Share Non-vested, December 31, 2022 36,254 11,605 47,859 $ 12.70 Granted — — — — Vested — — — — Forfeited — — — — Non-vested, June 30, 2023 36,254 11,605 47,859 $ 12.70 The actual number of performance-based shares of common stock of the Company, if any, to be earned by the award recipients is determined over a three year performance measurement period based on measures that include Earnings Before Interest Taxes Depreciation and Amortization (“EBITDA”) margin, revenue growth, and free cash flow. The EBITDA margin and revenue growth performance targets have been set for each of the Minimum, Target, and Maximum levels. The actual performance amount received is determined by the Compensation Committee and may be adjusted for items determined to be unusual in nature or infrequent in occurrence. A smaller portion is also earned based on Board discretion and continued service. The stock compensation cost is recognized over the requisite performance/service period using the straight-line method and can be periodically adjusted for the probable number of shares to be awarded. Stock compensation expense for the three and six month periods ended June 30, 2023 was approximately $86 and $171, respectively, based upon the value at the date of grant. Stock compensation expense for the three and six month periods ended June 30, 2022 was approximately $126 and $253, respectively, based upon the value at the date of grant. There was $145 of unrecognized compensation cost related to the non-vested restricted stock as of June 30, 2023 to be recognized through 2023. |
COMMITMENTS
COMMITMENTS | 6 Months Ended |
Jun. 30, 2023 | |
COMMITMENTS | |
COMMITMENTS | 5. COMMITMENTS On April 13, 2022, the Company and its customer entered into an amendment to the buy-back agreement described in ‘Revenue Recognition-Sale to Customer with a Buy-Back Agreement’. Pursuant to the amendment, the Company agreed to purchase all of the barrier subject to the buy-back agreement, 210,000 linear feet, as well as approximately an additional 115,000 linear feet. The total estimated purchase price is $5,000, representing the barrier, associated loading, freight, and yarding. In accordance with ASC 842 Leases, a portion of the total $5,000 buy-back was previously recorded as a deferred buy-back obligation on the Consolidated Balance Sheets. The deferred buy-back lease asset and obligation were fully reduced as the Company picked up the original 210,000 linear feet throughout 2022. The Company continues to pick up remaining pieces of barrier in excess of the original deferred buy-back obligation and is capitalizing costs as incurred. |
INTERIM FINANCIAL REPORTING (Po
INTERIM FINANCIAL REPORTING (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
INTERIM FINANCIAL REPORTING | |
Basis Of Presentation | The accompanying unaudited condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information, and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, we have condensed or omitted certain information and footnote disclosures that are included in our annual consolidated financial statements. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements, summary of significant accounting policies, and the related notes included in our Annual Report on Form 10-K for the year ended December 31, 2022. The condensed consolidated December 31, 2022 balance sheet was derived from the audited financial statements included in the Form 10-K. Dollar amounts in the footnotes are stated in thousands, except for per share data. In the opinion of management, these condensed consolidated financial statements reflect all adjustments (which consist of normal, recurring adjustments) necessary for a fair presentation of the financial position and results of operations and cash flows for the periods presented. The results disclosed in the condensed consolidated statements of income are not necessarily indicative of the results to be expected in any future periods. |
Recently Issued Accounting Pronouncement | The FASB issued ASU No. 2016-13, “ Measurement of Credit Losses on Financial Instruments |
Revenue Recognition | Product Sales - Over Time Under Topic 606, the Company recognizes revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for goods or services provided. Revenue associated with contracts with customers for customized products is recognized over time as the Company's performance creates or enhances customer-controlled assets or creates or enhances an asset with no alternative use, which the Company has an enforceable right to receive compensation as defined under the contract for performance completed. To determine the amount of revenue to recognize over time, the Company recognizes revenue over the contract terms based on the output method. The Company applied the "as invoiced" practical expedient as the amount of consideration the Company has the right to invoice corresponds directly with the value of the Company's performance to date. As the output method is driven by units produced, the Company recognizes revenues based on the value transferred to the customer relative to the remaining value to be transferred. The Company also matches the costs associated with the units produced. If a contract is projected to result in a loss, the entire contract loss is recognized in the period when the loss was first determined and the amount of the loss is updated in subsequent reporting periods. Revenue recognition also includes an amount related to a contract asset or contract liability. If the recognized revenue is greater than the amount billed to the customer, a contract asset is recorded in accounts receivable trade - unbilled. Conversely, if the amount billed to the customer is greater than the recognized revenue, a contract liability is recorded in customer deposits. Changes in the job performance, job conditions, and final contract settlements are factors that influence management’s assessment of total contract value and therefore, profit and revenue recognition. A portion of the work the Company performs requires financial assurances in the form of performance and payment bonds or letters of credit at the time of execution of the contract. Some contracts include retention provisions of up to 10%, which are generally withheld from each progress payment as retainage until the contract work has been completed and approved. Product Sales - Point in Time For certain product sales that do not meet the over time criteria, under Topic 606 the Company recognizes revenue when the product has been shipped to the destination in accordance with the terms outlined in the contract where a present obligation to pay exists and the customers have gained control of the product. Accounts Receivable and Contract Balances The timing of when we bill our customers is generally dependent upon advance billing terms, milestone billings based on the completion of certain phases of the work, or when services are provided or products are shipped. Projects with performance obligations recognized over time that have costs and estimated earnings recognized to date in excess of cumulative billings are reported on our Condensed Consolidated Balance Sheets as "Accounts receivable trade - unbilled" (contract assets). Projects with performance obligations recognized over time that have cumulative billings in excess of costs and estimated earnings recognized to date, are reported on our Condensed Consolidated Balance Sheets as "Customer deposits" (contract liabilities). Any uncollected billed amounts for our performance obligations recognized over time, including contract retentions, are recorded within “Accounts receivable trade – billed”. On June 30, 2023, and December 31, 2022, accounts receivable included contract retentions of approximately $972 and $932, respectively, which are considered contract assets. Our billed and unbilled revenue may be exposed to potential credit risk if our customers should encounter financial difficulties, and we maintain an allowance for estimated expected credit losses. A considerable amount of judgment is required when determining expected credit losses. Estimates of such expected losses are recorded based on historical losses experienced by the Company, current macro- and micro-economic conditions, and expected macro- and micro-economic conditions. Additionally, additional reserves are accumulated when we believe a specific customer may not be able to meet its financial obligations due to deterioration in financial condition or credit rating. Factors relevant to our assessment include our prior collection history with our customers, the related aging of past due balances, projections of credit losses based on historical trends or past events, and forecasts of future economic conditions. On June 30, 2023, and December 31, 2022, the allowance was $912 and $781, respectively. The change in the allowance for the six months ended June 30, 2023 was as follows: Balance at December 31, 2022 $ 781 Cumulative Effect of Adoption of ASU 2016-13 64 Provision for Expected Credit Losses 67 Balance at June 30, 2023 $ 912 Sale to Customer with a Buy-Back Agreement The Company entered into a buy-back agreement with one specific customer. Under this agreement, the Company guaranteed to buy-back barrier at a predetermined price at the end of the long-term project, subject to the condition of the product. Although the Company received payment in full when the product was produced, we were required to account for these transactions as operating leases. The amount of sale proceeds equal to the buy-back obligation was deferred until the buy-back was executed. The remaining sale proceeds were deferred in the same account and recognized on a straight-line basis over the usage period, such usage period commencing on delivery to the job-site and ending at the time the buy-back was executed. The Company capitalized the cost of the product on the Condensed Consolidated Balance Sheet, and depreciated the value, less residual value, to cost of leasing revenue in "Cost of goods sold" over the estimated useful life of the asset. The deferred revenue and deferred costs related to the buy-back agreement were fully amortized as of December 31, 2022 and, therefore, the accounting as described has no impact on the six month period ended June 30, 2023. Pursuant to an amendment entered into by the Company with the customer on April 13, 2022, the Company agreed to purchase barrier back in the amount equal to the buy-back guarantee. Accordingly, the Company settled any remaining deferred balances, in excess of the buy-back payment, to leasing revenue, and reclassified the net book value of the purchased product to "Property and equipment, net". The revenue was recognized in accordance with Topic 842, Leases Barrier Rentals - Lease Income Leasing fees are paid by customers at the beginning of the lease agreement and are recorded as deferred revenue. The deferred revenue is then recognized each month as lease income for the duration of the lease, in accordance with Topic 842, Leases Royalty Income The Company licenses certain products to other precast companies to produce the Company's products to engineering specifications under the licensing agreements. The agreements are typically for five-year terms and require royalty payments from 4% to 6% of total sales of licensed products, which are paid every month. The revenues from licensing agreements are recognized in the month earned, in accordance with Topic 606-10-55-65. Shipping and Installation Shipping and installation revenues are recognized as a distinct performance obligation in the period the shipping and installation services are provided to the customer, in accordance with Topic 606. Disaggregation of Revenue In the following table, revenue is disaggregated by primary sources of revenue: Revenue by Type Three Months Ended June 30, Six Months Ended June 30, 2023 2022 $ Change % Change 2023 2022 $ Change % Change Soundwall Sales $ 1,678 $ 430 $ 1,248 290 % $ 2,724 $ 1,794 $ 930 52 % Architectural Panel Sales 320 1,347 (1,027 ) (76 )% 729 2,253 (1,524 ) (68 )% SlenderWall Sales 1,487 51 1,436 2816 % 2,767 1,007 1,760 175 % Miscellaneous Wall Sales 2,933 637 2,296 360 % 4,138 988 3,150 319 % Barrier Sales 1,824 2,338 (514 ) (22 )% 4,583 3,252 1,331 41 % Easi-Set Building Sales 1,442 948 494 52 % 2,450 1,563 887 57 % Utility Sales 622 666 (44 ) (7 )% 896 1,132 (236 ) (21 )% Miscellaneous Sales 396 371 25 7 % 657 649 8 1 % Total Product Sales 10,702 6,788 3,914 58 % 18,944 12,638 6,306 50 % Barrier Rentals 700 1,962 (1,262 ) (64 )% 1,819 3,447 (1,628 ) (47 )% Royalty Income 594 771 (177 ) (23 )% 1,005 1,198 (193 ) (16 )% Shipping and Installation Revenue 2,702 3,732 (1,030 ) (28 )% 5,772 6,405 (633 ) (10 )% Total Service Revenue 3,996 6,465 (2,469 ) (38 )% 8,596 11,050 (2,454 ) (22 )% Total Revenue $ 14,698 $ 13,253 $ 1,445 11 % $ 27,540 $ 23,688 $ 3,852 16 % The revenue items: soundwall sales, architectural panel sales, SlenderWall sales, miscellaneous wall sales, miscellaneous sales, barrier rentals, and royalty income are recognized as revenue over time. The revenue items: barrier sales, Easi-Set and Easi-Span building sales, utility sales, and shipping and installation revenue are recognized as revenue at a point in time. |
Warranties | Smith-Midland products are typically sold pursuant to an implicit warranty as to merchantability only. Warranty claims are reviewed and resolved on a case-by-case method. Although the Company does incur costs for warranty claims, historically such amounts are minimal. |
Use Of Estimates | The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Fair Value of Financial Instruments | The carrying value for each of the Company’s financial instruments, including cash equivalents, accounts receivable, accounts payable, and accrued expenses, are carried at cost which approximates fair value because of the short-term nature of those instruments and are categorized as Level 1 within the GAAP fair value hierarchy. The estimated fair value of the long-term debt approximates carrying value based on current rates offered to the Company for debt of similar maturities and is categorized as Level 2 liabilities within the GAAP fair value hierarchy. |
Concentration Of Risk | Historically, various customers have comprised greater than 10% of revenue during a given quarter or year. These customers are typically not the same quarter to quarter or year to year. In the event a customer were to go out of business during a project, it is likely that the owner of the project would assign a new contractor to the job, and the Company would complete its scope of work. Therefore, the Company believes that it does not have a short-term vulnerability of severe impact to operations. The Company has determined that no customer, if lost, would result in a near term severe impact to the Company’s operations. No customer represented greater than 10% of the Company’s consolidated net accounts receivable position, as of either June 30, 2023 or December 31, 2022. For the three month period ended June 30, 2023, the Company derived approximately 12% and 15% of its revenue from two separate customers. No customer derived more than 10% of the Company’s revenue for the three month period ended June 30, 2022. For the six month period ended June 30, 2023, the Company derived approximately 17% of its revenue from one customer, and derived 13% from a different customer for the six month period ended June 30, 2022. |
Segment Reporting | Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision-maker, or decision-making group, in deciding how to allocate resources and assess performance. The Company currently operates in one operating and reportable business segment for financial reporting purposes. |
INTERIM FINANCIAL REPORTING (Ta
INTERIM FINANCIAL REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
INTERIM FINANCIAL REPORTING | |
Schedule of Allowance | Balance at December 31, 2022 $ 781 Cumulative Effect of Adoption of ASU 2016-13 64 Provision for Expected Credit Losses 67 Balance at June 30, 2023 $ 912 |
Disaggregation Of Revenue | Revenue by Type Three Months Ended June 30, Six Months Ended June 30, 2023 2022 $ Change % Change 2023 2022 $ Change % Change Soundwall Sales $ 1,678 $ 430 $ 1,248 290 % $ 2,724 $ 1,794 $ 930 52 % Architectural Panel Sales 320 1,347 (1,027 ) (76 )% 729 2,253 (1,524 ) (68 )% SlenderWall Sales 1,487 51 1,436 2816 % 2,767 1,007 1,760 175 % Miscellaneous Wall Sales 2,933 637 2,296 360 % 4,138 988 3,150 319 % Barrier Sales 1,824 2,338 (514 ) (22 )% 4,583 3,252 1,331 41 % Easi-Set Building Sales 1,442 948 494 52 % 2,450 1,563 887 57 % Utility Sales 622 666 (44 ) (7 )% 896 1,132 (236 ) (21 )% Miscellaneous Sales 396 371 25 7 % 657 649 8 1 % Total Product Sales 10,702 6,788 3,914 58 % 18,944 12,638 6,306 50 % Barrier Rentals 700 1,962 (1,262 ) (64 )% 1,819 3,447 (1,628 ) (47 )% Royalty Income 594 771 (177 ) (23 )% 1,005 1,198 (193 ) (16 )% Shipping and Installation Revenue 2,702 3,732 (1,030 ) (28 )% 5,772 6,405 (633 ) (10 )% Total Service Revenue 3,996 6,465 (2,469 ) (38 )% 8,596 11,050 (2,454 ) (22 )% Total Revenue $ 14,698 $ 13,253 $ 1,445 11 % $ 27,540 $ 23,688 $ 3,852 16 % |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
EARNINGS (LOSS) PER SHARE | |
Schedule Of Earnings Per Share | Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Basic earnings (loss) per common share Net income (loss) $ (782 ) $ 910 $ (701 ) $ 791 Weighted average shares outstanding 5,256 5,230 5,256 5,230 Basic earnings (loss) per common share $ (0.15 ) $ 0.17 $ (0.13 ) $ 0.15 Diluted earnings (loss) per common share Net income (loss) $ (782 ) $ 910 $ (701 ) $ 791 Weighted average shares outstanding 5,256 5,230 5,256 5,230 Dilutive effect of restricted stock — 36 — 32 Total weighted average shares outstanding 5,256 5,266 5,256 5,262 Diluted earnings (loss) per common share $ (0.15 ) $ 0.17 $ (0.13 ) $ 0.15 |
STOCK COMPENSATION (Tables)
STOCK COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
STOCK COMPENSATION | |
Schedule Of Restricted Stock Award Activity | Performance- Based Service-Based Number of Shares Weighted Average Grant Date Fair Value per Share Non-vested, December 31, 2022 36,254 11,605 47,859 $ 12.70 Granted — — — — Vested — — — — Forfeited — — — — Non-vested, June 30, 2023 36,254 11,605 47,859 $ 12.70 |
INTERIM FINANCIAL REPORTING (De
INTERIM FINANCIAL REPORTING (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
INTERIM FINANCIAL REPORTING | |
Balance at December 31, 2022 | $ 781 |
Cumulative Effect of Adoption of ASU 2016-13 | 64 |
Current Provision for Expected Credit Losses | 67 |
Balance at June 30, 2023 | $ 912 |
INTERIM FINANCIAL REPORTING (_2
INTERIM FINANCIAL REPORTING (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Total revenues | $ 14,698 | $ 13,253 | $ 27,540 | $ 23,688 |
Change in revenue | $ 1,445 | $ 3,852 | ||
Change in revenue percent | 11% | 16% | ||
Product Sales | ||||
Total revenues | $ 10,702 | 6,788 | $ 18,944 | 12,638 |
Change in revenue | $ 3,914 | $ 6,306 | ||
Change in revenue percent | 58% | 50% | ||
Service Revenue [Member] | ||||
Total revenues | $ 3,996 | 6,465 | $ 8,596 | 11,050 |
Change in revenue | $ (2,469) | $ (2,454) | ||
Change in revenue percent | (38.00%) | (22.00%) | ||
Service Revenue [Member] | Royalty Income [Member] | ||||
Total revenues | $ 594 | 771 | $ 1,005 | 1,198 |
Change in revenue | $ (177) | $ (193) | ||
Change in revenue percent | (23.00%) | (16.00%) | ||
Service Revenue [Member] | Shipping and Installation Revenue [Member] | ||||
Total revenues | $ 2,702 | 3,732 | $ 5,772 | 6,405 |
Change in revenue | $ (1,030) | $ (633) | ||
Change in revenue percent | (28.00%) | (10.00%) | ||
Architectural Sales [Member] | Product Sales | ||||
Total revenues | $ 320 | 1,347 | $ 729 | 2,253 |
Change in revenue | $ (1,027) | $ (1,524) | ||
Change in revenue percent | (76.00%) | (68.00%) | ||
SlenderWall Sales [Member] | Product Sales | ||||
Total revenues | $ 1,487 | 51 | $ 2,767 | 1,007 |
Change in revenue | $ 1,436 | $ 1,760 | ||
Change in revenue percent | 2,816% | 175% | ||
Miscellaneous Wall Sales [Member] | Product Sales | ||||
Total revenues | $ 2,933 | 637 | $ 4,138 | 988 |
Change in revenue | $ 2,296 | $ 3,150 | ||
Change in revenue percent | 360% | 319% | ||
Barrier Sales [Member] | Product Sales | ||||
Total revenues | $ 1,824 | 2,338 | $ 4,583 | 3,252 |
Change in revenue | $ (514) | $ 1,331 | ||
Change in revenue percent | (22.00%) | 41% | ||
Easi-Set Building Sales [Member] | Product Sales | ||||
Total revenues | $ 1,442 | 948 | $ 2,450 | 1,563 |
Change in revenue | $ 494 | $ 887 | ||
Change in revenue percent | 52% | 57% | ||
Utility Sales [Member] | Product Sales | ||||
Total revenues | $ 622 | 666 | $ 896 | 1,132 |
Change in revenue | $ (44) | $ (236) | ||
Change in revenue percent | (7.00%) | (21.00%) | ||
Miscellaneous Sales [Member] | Product Sales | ||||
Total revenues | $ 396 | 371 | $ 657 | 649 |
Change in revenue | $ 25 | $ 8 | ||
Change in revenue percent | 7% | 1% | ||
Barrier Rental [Member] | Service Revenue [Member] | ||||
Total revenues | $ 700 | 1,962 | $ 1,819 | 3,447 |
Change in revenue | $ (1,262) | $ (1,628) | ||
Change in revenue percent | (64.00%) | (47.00%) | ||
Soundwall Sales [Member] | Product Sales | ||||
Total revenues | $ 1,678 | $ 430 | $ 2,724 | $ 1,794 |
Change in revenue | $ 1,248 | $ 930 | ||
Percent of change | (23.00%) | |||
Change in revenue percent | 290% | 52% |
INTERIM FINANCIAL REPORTING (_3
INTERIM FINANCIAL REPORTING (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | |
Accounts receivable | $ 972 | $ 972 | $ 932 | |
Revenue concentration of risk | 10% | |||
Description of Royalty Income | The agreements are typically for five-year terms and require royalty payments from 4% to 6% of total sales of licensed products, which are paid every month | |||
Allowances for doubtful accounts | $ 912 | $ 912 | $ 781 | |
Revenue percentage | 10% | |||
Cumulative Effect of Adoption of ASU 2016-13 [Member] | ||||
Decrease in retained earnings | $ 63 | |||
Two Separate Customers [Member] | ||||
Concentration of Risk | 12% | |||
Revenue concentration of risk | 13% | 17% | ||
Accounts Receivable [Member] | ||||
Concentration of Risk | 15% | 10% | 10% |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Basic earnings per share | ||||
Net income (loss) | $ (782) | $ 910 | $ (701) | $ 791 |
Weighted average shares outstanding | 5,256 | 5,230 | 5,256 | 5,230 |
Basic earnings (loss) per common share | $ (0.15) | $ 0.17 | $ (0.13) | $ 0.12 |
Diluted earnings per share | ||||
Net income (loss) | $ (782) | $ 910 | $ (701) | $ 791 |
Weighted average shares outstanding | 5,256 | 5,230 | 5,256 | 5,230 |
Dilutive effect of restricted stock | 36 | 32 | ||
Total weighted average shares outstanding | 5,256 | 5,266 | 5,256 | 5,262 |
Diluted earnings (loss) per common share | $ (0.15) | $ 0.17 | $ (0.13) | $ 0.15 |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Feb. 10, 2022 USD ($) | Mar. 27, 2020 USD ($) | Jun. 30, 2023 USD ($) integer | |
Number Of Installment | integer | 2 | ||
Line Of Credit | $ 5,000 | ||
Refinancing Of Existing Loans, Note Payable | $ 2,701 | ||
Funds For Improvement | $ 678 | ||
Mortgage Note Payable Fixed Interest Rate | 3.99% | ||
Principal And Interest On Loan Payments Payable Monthly | $ 27 | 21 | |
Loan Maturity Date | Mar. 27, 2030 | ||
Tangible Assets Net Worth | 10,000 | ||
Varying Loan Balance Amount | 40 | ||
Note Payable to Bank | $ 2,805 | ||
Note Payabe, Interest Rate, Percentage | 4.09% | ||
Balance of Note Payable | $ 2,620 | 1,940 | |
Bank To Pruchase Equipment | $ 5,000 | ||
Commitment for Purchase of Equipment for Note Payable Description | The commitment provides for the purchase of equipment for which a note payable will be executed with a term not to exceed five years with an interest rate at the Wall Street Journal prime rate plus 0.50% with a floor of 3.50% per annum | ||
Line Of Credit Maturity Date | Feb. 10, 2037 | Oct. 01, 2023 | |
Payment To Equipment | $ 1,500 | ||
Payment To Equipment | $ 1,500 | ||
Minimum [Member] | |||
Annual Interest Rates, Percentage | 2.90% | ||
Maximum [Member] | |||
Annual Interest Rates, Percentage | 3.99% | ||
Summit Community Bank 2 [Member] | |||
Mortgage Note Payable Fixed Interest Rate | 3.64% | ||
Loan Maturity Date | Oct. 10, 2029 | ||
Annual Capital Expenditures | $ 5,000 | ||
Balance of Note Payable | 1,504 | ||
Principal And Interest On Loan Payments Payable Monthly | $ 22 |
STOCK COMPENSATION (Details)
STOCK COMPENSATION (Details) | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Performance Shares [Member] | |
Non-vested, beginning of period | 36,254 |
Granted | 0 |
Vested | 0 |
Forfeited | 0 |
Non-vested, ending of period | 36,254 |
Number of Shares [Member] | |
Non-vested, beginning of period | 47,859 |
Granted | 0 |
Vested | 0 |
Forfeited | 0 |
Non-vested, ending of period | 47,859 |
Service Based [Member] | |
Non-vested, beginning of period | 11,605 |
Granted | 0 |
Vested | 0 |
Forfeited | 0 |
Non-vested, ending of period | 11,605 |
Weighted Average Grant Date Fair Value [Member] | |
Non-vested, beginning of period | $ / shares | $ 12.70 |
Granted | $ / shares | 0 |
Vested | $ / shares | 0 |
Forfeited | $ / shares | 0 |
Non-vested, ending of period | $ / shares | $ 12.70 |
STOCK COMPENSATION (Details Nar
STOCK COMPENSATION (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
STOCK COMPENSATION | ||||
Stock compensation expense | $ 86 | $ 126 | $ 171 | $ 253 |
Unrecognized Compensation Cost Related To Non-vested Restricted Stock | $ 145 | $ 145 |
COMMITMENTS (Details Narrative)
COMMITMENTS (Details Narrative) | Apr. 13, 2022 USD ($) |
COMMITMENTS | |
Buy-back agreement | $ 210,000 |
Additional linear feet | 115,000 |
Purchase Price | 5,000 |
Buy- Back | 5,000 |
Deferred buy-back lease asset | $ 210,000 |