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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 2/21/20 MOVING iMAGE TECHNOLOGIES INC. S-1/A 11:4.5M Toppan Merrill/FA |
Document/Exhibit Description Pages Size 1: S-1/A Pre-Effective Amendment to Registration Statement HTML 1.03M (General Form) 2: EX-3.1 Articles of Incorporation/Organization or Bylaws HTML 16K 3: EX-3.2 Articles of Incorporation/Organization or Bylaws HTML 96K 4: EX-4.1 Instrument Defining the Rights of Security Holders HTML 10K 5: EX-4.3 Instrument Defining the Rights of Security Holders HTML 30K 6: EX-5.1 Opinion of Counsel re: Legality HTML 21K 10: EX-10.10 Material Contract HTML 18K 7: EX-10.2 Material Contract HTML 39K 8: EX-10.8 Material Contract HTML 254K 9: EX-10.9 Material Contract HTML 100K 11: EX-23.1 Consent of Experts or Counsel HTML 8K
tv535014-s1a - block - 18.569124s |
|
Delaware
(State or jurisdiction of incorporation or organization) |
| |
3861
(Primary Standard Industrial Classification Code Number) |
| |
20-0232845
(I.R.S. Employer Identification No.) |
|
|
Thomas J. Poletti, Esq.
Katherine J. Blair, Esq. Manatt, Phelps & Phillips, LLP 695 Town Center Drive, 14th Floor Costa Mesa, California 92626 (714) 371-2501 |
| |
Ralph V. De Martino, Esq.
Cavas S. Pavri, Esq. Schiff Hardin LLP 901 K Street, NW, Suite 700 Washington, DC 20001 (202) 724-6848 |
|
| Large accelerated filer ☐ | | | Accelerated filer ☐ | |
| Non-accelerated filer ☒ | | | Smaller reporting company ☒ | |
| | | | Emerging growth company ☒ | |
Title of each class of securities to be registered
|
| |
Proposed Maximum
Aggregate Offering Price(1)(2) |
| |
Amount of
Registration Fee(3) |
| ||||||
Common Stock, par value $0.0001 per share(4)
|
| | | $ | 11,902,500 | | | | | $ | 1,544.95 | | |
Underwriters’ Warrants
|
| | | $ | — | | | | | $ | — | | |
Common Stock issuable upon exercise of Underwriters’ Warrants(4)(5)
|
| | | $ | 743,907 | | | | | $ | 96.56 | | |
Total
|
| | | $ | 12,646,407 | | | | | $ | 1,641.51* | | |
| | |
Per Share
|
| |
Without
Over-allotment option |
| |
With
Over-allotment option |
| |||||||||
Public Offering Price
|
| | | $ | | | | | $ | | | | | $ | | | |||
Underwriting discounts and commissions paid(1)
|
| | | $ | | | | | | $ | | | | | $ | | | ||
Proceeds, before expenses, to us
|
| | | $ | | | | | | $ | | | | | $ | | | |
| Westpark Capital, Inc. | | |
Boustead Securities, LLC
|
|
| | |
Page
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| | | | F-1 | | |
| | |
As of December 31,
|
| |||||||||
| | | | |
2019
|
| |||||||
| | |
(in thousands)
|
| |||||||||
| | | | $ | 10,000 | | | | | $ | 11,000 | | |
| | |
Six Months Ended
December 31, |
| |
Year Ended
June 30, |
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| | | | |
2018
|
| |
2018
|
| |
2019
|
| |||||||||||||
| | |
(in thousands, except share and per share data)
|
| |||||||||||||||||||||
Statement of Operations Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net sales
|
| | | $ | 10,402 | | | | | $ | 8,958 | | | | | $ | 25,335 | | | | | $ | 20,269 | | |
Cost of sales
|
| | | | 7,609 | | | | | | 6,589 | | | | | | 20,013 | | | | | | 15,032 | | |
Gross profit
|
| | | | 2,793 | | | | | | 2,369 | | | | | | 5,322 | | | | | | 5,237 | | |
Expenses:
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Research and development
|
| | | | 141 | | | | | | 184 | | | | | | 425 | | | | | | 318 | | |
Selling, general and administrative
|
| | | | 2,520 | | | | | | 2,358 | | | | | | 4,338 | | | | | | 4,958 | | |
Other expense (income), net
|
| | | | 95 | | | | | | (4) | | | | | | (18) | | | | | | (4) | | |
Total expenses
|
| | | | 2,756 | | | | | | 2,538 | | | | | | 4,745 | | | | | | 5,272 | | |
Net income (loss)
|
| | | $ | 37 | | | | | $ | (169) | | | | | $ | 577 | | | | | $ | (35) | | |
Pro Forma C Corporation Information (Unaudited)
|
| | | | | ||||||||||||||||||||
| | | | | | ||||||||||||||||||||
Historical net income (loss) before income taxes
|
| | | $ | 37 | | | | | $ | (169) | | | | | $ | 577 | | | | | $ | (35) | | |
Pro forma provision (benefit) for income taxes
|
| | | | 10 | | | | | | (47) | | | | | | 162 | | | | | | (10) | | |
Pro forma net income (loss)
|
| | | $ | 27 | | | | | $ | (122) | | | | | $ | 415 | | | | | $ | (25) | | |
Pro forma net income (loss) per common share basic(1)(2)
|
| | | $ | .01 | | | | | $ | (.03) | | | | | $ | .08 | | | | | $ | (.01) | | |
Pro forma shares outstanding basic(2)
|
| | | | 4,923,654 | | | | | | 4,923,654 | | | | | | 4,923,654 | | | | | | 4,923,654 | | |
Pro forma net income (loss) per common share diluted(1)(2)
|
| | | $ | .01 | | | | | $ | (.03) | | | | | $ | .08 | | | | | $ | (.01) | | |
Pro forma shares outstanding diluted(2)
|
| | | | 5,000,000 | | | | | | 5,000,000 | | | | | | 5,000,000 | | | | | | 5,000,000 | | |
| | |
As of December 31, 2019
|
| ||||||||||||
l
|
| |
Actual(1)(3)
|
| |
As Adjusted(4)
|
| | ||||||||
| | |
(in thousands)
|
| ||||||||||||
Balance Sheet Data: | | | | | | | | | | | | | | | ||
Cash
|
| | | $ | 824 | | | | | $ | 8,774 | | | | ||
Working capital
|
| | | | (732) | | | | | | 7,218 | | | | ||
Total assets
|
| | | | 6,355 | | | | | | 13,958 | | | | ||
Total stockholders’ equity
|
| | | | (49) | | | | | | 7,554 | | | |
| | |
As of December 31, 2019(1)(2)
|
| |||||||||||||||
| | |
Actual
|
| |
Pro Forma
|
| |
Pro Forma
As Adjusted |
| |||||||||
| | |
(in thousands, except share and per share data)
|
| |||||||||||||||
Cash and cash equivalents
|
| | | $ | 824 | | | | | $ | 824 | | | | | $ | 8,774 | | |
Stockholders’/members’ equity: | | | | | | | | | | | | | | | | | | | |
Preferred stock, $0.0001 par value; no shares authorized, issued or outstanding, actual; 10,000,0000 authorized, no shares issued or outstanding actual, pro forma and pro forma as adjusted
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
Common stock, $0.0001 par value; no shares authorized, no shares issued and outstanding, actual; 100,000,000 shares authorized, 4,923,654 shares issued and outstanding, pro forma; 100,000,000 shares authorized, 7,223,654 shares issued and outstanding, pro forma as adjusted
|
| | | | — | | | | | | 5 | | | | | | 7 | | |
Members’ equity (deficit)
|
| | | | (11,660) | | | | | | — | | | | | | — | | |
Additional paid-in capital
|
| | | | — | | | | | | (11,665) | | | | | | (4,064) | | |
Accumulated earnings
|
| | | | 11,611 | | | | | | 11,611 | | | | | | 11,611 | | |
Total stockholders’/members’ equity (deficit)
|
| | | | (49) | | | | | | (49) | | | | | | 7,554 | | |
Total capitalization
|
| | | $ | (49) | | | | | $ | (49) | | | | | $ | 7,554 | | |
|
Assumed initial public offering price per share
|
| | | | | | | | | $ | 4.25 | | |
|
Pro forma net tangible book value as of December 31, 2019
|
| | | $ | (.36) | | | | | | | | |
|
Increase attributable to new investors in this offering
|
| | | $ | 1.22 | | | | | | | | |
|
Adjusted pro forma net tangible book value after this offering
|
| | | $ | .86 | | | | | | | | |
|
Dilution in pro forma net tangible book value to new investors in this offering
|
| | | | | | | | | $ | 3.39 | | |
| | |
Shares
Acquired |
| |
Total
Consideration |
| |
Average
Price Per Share |
| |||||||||||||||||||||
| | |
Number
|
| |
Percent
|
| |
Amount
|
| |
Percent
|
| ||||||||||||||||||
Existing stockholders
|
| | | | 4,923,654 | | | | | | 68.2% | | | | | $ | 223,529 | | | | | | 2.2% | | | | | $ | 0.05 | | |
New investors in this offering
|
| | | | 2,300,000 | | | | | | 31.8% | | | | | | 9,775,000 | | | | | | 97.8% | | | | | $ | 4.25 | | |
Total
|
| | | | 7,223,654 | | | | | | 100.0% | | | | | $ | 9,998,529 | | | | | | 100.0% | | | | | | | | |
| | |
Six Months ended
December 31, |
| |
Year Ended
June 30, |
| ||||||||||||||||||
| | | | |
2018
|
| |
2018
|
| |
2019
|
| |||||||||||||
| | | | | (Unaudited) | | | | | | (Unaudited) | | | | | | | | | | | | | | |
Net sales
|
| | | $ | 10,402 | | | | | $ | 8,958 | | | | | $ | 25,335 | | | | | $ | 20,269 | | |
Cost of sales
|
| | | | 7,609 | | | | | | 6,589 | | | | | | 20,013 | | | | | | 15,032 | | |
Gross profit
|
| | | | 2,793 | | | | | | 2,369 | | | | | | 5,322 | | | | | | 5,237 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Research and development
|
| | | | 141 | | | | | | 184 | | | | | | 425 | | | | | | 318 | | |
Selling and marketing
|
| | | | 1,361 | | | | | | 1,212 | | | | | | 2,290 | | | | | | 2,455 | | |
General and administrative
|
| | | | 1,159 | | | | | | 1,146 | | | | | | 2,048 | | | | | | 2,503 | | |
Total expenses
|
| | | | 2,661 | | | | | | 2,542 | | | | | | 4,763 | | | | | | 5,276 | | |
Operating income (loss)
|
| | | | 132 | | | | | | (173) | | | | | | 559 | | | | | | (39) | | |
Other expense (income) | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense
|
| | | | 95 | | | | | | — | | | | | | 1 | | | | | | — | | |
Interest and other income
|
| | | | — | | | | | | (4) | | | | | | (19) | | | | | | (4) | | |
Total other expense (income)
|
| | | | 95 | | | | | | (4) | | | | | | (18) | | | | | | (4) | | |
Net income (loss)
|
| | | $ | 37 | | | | | $ | (169) | | | | | $ | 577 | | | | | $ | (35) | | |
| | | | |
June 30,
|
| |||||||||||||
| | |
(Unaudited)
|
| |
2018
|
| |
2019
|
| |||||||||
ASSETS | | | | | |||||||||||||||
Current Assets: | | | | | | | | | | | | | | | | | | | |
Cash
|
| | | $ | 824 | | | | | $ | 597 | | | | | $ | 582 | | |
Accounts receivable, net
|
| | | | 1,456 | | | | | | 2,181 | | | | | | 2,128 | | |
Inventories, net
|
| | | | 1,934 | | | | | | 2,199 | | | | | | 1,683 | | |
Prepaid expenses and other
|
| | | | 200 | | | | | | 73 | | | | | | 99 | | |
Due from related party
|
| | | | — | | | | | | 267 | | | | | | — | | |
Total Current Assets
|
| | | | 4,414 | | | | | | 5,317 | | | | | | 4,492 | | |
Long-Term Assets: | | | | | | | | | | | | | | | | | | | |
Property, plant and equipment, net
|
| | | | 213 | | | | | | 45 | | | | | | 32 | | |
Intangibles, net
|
| | | | 1,078 | | | | | | — | | | | | | — | | |
Goodwill
|
| | | | 287 | | | | | | — | | | | | | — | | |
Other assets
|
| | | | 363 | | | | | | 17 | | | | | | 188 | | |
Total Long-Term Assets
|
| | | | 1,941 | | | | | | 62 | | | | | | 220 | | |
Total Assets
|
| | | $ | 6,355 | | | | | $ | 5,379 | | | | | $ | 4,712 | | |
LIABILITIES AND MEMBERS’ EQUITY (DEFICIT) | | | | | | | | | | | | | | | | | | | |
Current Liabilities: | | | | | | | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 2,990 | | | | | $ | 3,682 | | | | | $ | 2,926 | | |
Accrued liabilities
|
| | | | 460 | | | | | | 687 | | | | | | 793 | | |
Customer deposits
|
| | | | 647 | | | | | | 840 | | | | | | 1,011 | | |
Line of credit
|
| | | | 900 | | | | | | — | | | | | | — | | |
Current portion – notes payable
|
| | | | 90 | | | | | | — | | | | | | — | | |
Unearned warranty revenue
|
| | | | 59 | | | | | | 44 | | | | | | 68 | | |
Total Current Liabilities
|
| | | | 5,146 | | | | | | 5,253 | | | | | | 4,798 | | |
Long-Term Liabilities: | | | | | | | | | | | | | | | | | | | |
Notes payable, less current portion
|
| | | | 1,243 | | | | | | — | | | | | | — | | |
Deferred rent
|
| | | | 15 | | | | | | — | | | | | | — | | |
Total Long-Term Liabilities
|
| | | | 1,258 | | | | | | — | | | | | | — | | |
Members’ Equity (Deficit)
|
| | | | (49) | | | | | | 126 | | | | | | (86) | | |
Total Liabilities and Members’ Equity (Deficit)
|
| | | $ | 6,355 | | | | | $ | 5,379 | | | | | $ | 4,712 | | |
(in thousands, except share data and per share data)
|
| |
12/31/2019
Historical MiT(1) |
| | | |
12/31/2019
Historical NLM |
| |
Spin-co
Adjustments |
| |
Proforma
Adjustments (2) |
| |
Pro Forma
Combined |
| |||||||||||||||||||
Consolidated Statement of Operations Data:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Revenue
|
| | | $ | 10,402 | | | | | $ | 158 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 10,560 | | |
Cost of sales
|
| | | | 7,609 | | | | | | 106 | | | | | | — | | | | | | — | | | | | | 9 | | | | | | 7,724 | | |
Gross profit
|
| | | | 2,793 | | | | | | 52 | | | | | | — | | | | | | — | | | | | | (9) | | | | | | 2,836 | | |
Operating expenses: | | | | | | | | ||||||||||||||||||||||||||||||
Selling, general and administrative
|
| | | | 2,661 | | | | | | 46 | | | | | | 93 | | | | | | (93) | | | | | | 8 | | | | | | 2,715 | | |
Total operating expenses
|
| | | | 2,661 | | | | | | 46 | | | | | | 93 | | | | | | (93) | | | | | | 8 | | | | | | 2,715 | | |
Other (income) expense: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest and other expense
|
| | | | 95 | | | | | | — | | | | | | — | | | | | | — | | | | | | 8 | | | | | | 103 | | |
Interest and other (income)
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Total other (income) expense
|
| | | | 95 | | | | | | — | | | | | | — | | | | | | — | | | | | | 8 | | | | | | 103 | | |
Net income (loss)
|
| | | $ | 37 | | | | | $ | 6 | | | | | $ | (93) | | | | | $ | 93 | | | | | $ | (25) | | | | | $ | 18 | | |
(in thousands, except share data and per share
data) |
| |
NLM
Holding Consolidated(*) |
| |
Spin-co
Adjustments(A) |
| |
NLM
Merger Sub |
| |
Historical
MiT |
| |
Further
Pro Forma Adjustments |
| |
Ref
|
| |
Pro Forma
Combined |
| ||||||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash
|
| | | $ | 10 | | | | | $ | (10) | | | | | $ | — | | | | | $ | 824 | | | | | $ | — | | | | | | | | $ | 824 | | |
Accounts receivable
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1,456 | | | | | | — | | | | | | | | | 1,456 | | |
Inventory
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1,934 | | | | | | — | | | | | | | | | 1,934 | | |
Prepaid and other
|
| | | | — | | | | | | — | | | | | | — | | | | | | 200 | | | | | | — | | | | | | | | | 200 | | |
Due from related party
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | | | | — | | |
| | | | | 10 | | | | | | (10) | | | | | | — | | | | | | 4,414 | | | | | | — | | | | | | | | | 4,414 | | |
Intangibles, net
|
| | | | — | | | | | | — | | | | | | — | | | | | | 1,078 | | | | | | — | | | | | | | | | 1,078 | | |
Goodwill
|
| | | | — | | | | | | — | | | | | | — | | | | | | 287 | | | | | | — | | | | | | | | | 287 | | |
Property and equipment, net
|
| | | | — | | | | | | — | | | | | | — | | | | | | 213 | | | | | | — | | | | | | | | | 213 | | |
Deposits and other
|
| | | | — | | | | | | — | | | | | | — | | | | | | 363 | | | | | | — | | | | | | | | | 363 | | |
Total | | | | $ | 10 | | | | | $ | (10) | | | | | $ | — | | | | | $ | 6,355 | | | | | $ | — | | | | | | | | $ | 6,355 | | |
|
(in thousands, except share data and per share
data) |
| |
NLM
Holding Consolidated(*) |
| |
Spin-co
Adjustments(A) |
| |
NLM
Merger Sub |
| |
Historical
MiT |
| |
Further
Pro Forma Adjustments |
| |
Ref
|
| |
Pro Forma
Combined |
| |||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 41 | | | | | $ | (41) | | | | | $ | — | | | | | $ | 2,990 | | | | | | | | | | | | | | | | | $ | 2,990 | | |
Accrued expenses
|
| | | | 90 | | | | | | (90) | | | | | | | | | | | | 460 | | | | | | | | | | | | | | | | | | 460 | | |
Customer deposits
|
| | | | | | | | | | | | | | | | | | | | | | 647 | | | | | | | | | | | | | | | | | | 647 | | |
Line of credit
|
| | | | | | | | | | | | | | | | | | | | | | 900 | | | | | | | | | | | | | | | | | | 900 | | |
Current portion – notes payable
|
| | | | 262 | | | | | | (262) | | | | | | | | | | | | 90 | | | | | | | | | | | | | | | | | | 90 | | |
Deferred revenue
|
| | | | | | | | | | | | | | | | | | | | | | 59 | | | | | | | | | | | | | | | | | | 59 | | |
| | | | | 393 | | | | | | (393) | | | | | | — | | | | | | 5,146 | | | | | | — | | | | | | | | | | | | 5,146 | | |
Deferred rent
|
| | | | | | | | | | | | | | | | | | | | | | 15 | | | | | | | | | | | | | | | | | | 15 | | |
Notes payable, less current portion
|
| | | | | | | | | | | | | | | | | | | | | | 1,243 | | | | | | | | | | | | | | | | | | 1,243 | | |
Members’/Shareholders’ equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common Stock/APIC
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | (11,660) | | | | | | i | | | | | | (11,660) | | |
Members’ equity
|
| | | | | | | | | | | | | | | | | | | | | | (11,660) | | | | | | 11,660 | | | | | | i | | | | | | — | | |
Retained Earnings (accumulated deficit)
|
| | | | (1,784) | | | | | | 1,784 | | | | | | | | | | | | 11,611 | | | | | | | | | | | | i | | | | | | 11,611 | | |
Common stock
|
| | | | 10 | | | | | | | | | | | | 10 | | | | | | | | | | | | (10) | | | | | | i | | | | | | — | | |
Additional paid-in capital
|
| | | | 1,391 | | | | | | (1,401) | | | | | | (10) | | | | | | | | | | | | 10 | | | | | | i | | | | | | — | | |
| | | | | (383) | | | | | | 383 | | | | | | — | | | | | | (49) | | | | | | — | | | | | | | | | | | | (49) | | |
Total | | | | $ | 10 | | | | | $ | (10) | | | | | $ | — | | | | | $ | 6,355 | | | | | $ | — | | | | | | | | | | | $ | 6,355 | | |
|
(in thousands, except share data and per share data)
|
| |
6/30/2019
Historical MiT |
| |
6/30/2019
Historical Caddy |
| |
6/30/2019
Historical NLM |
| |
Spin-co
Adjustments |
| |
Proforma
Adjustments (*) |
| |
Pro Forma
Combined |
| ||||||||||||||||||
Consolidated Statement of Operations Data: | | | | | | | | ||||||||||||||||||||||||||||||
Revenue
|
| | | $ | 20,269 | | | | | $ | 1,877 | | | | | $ | 9 | | | | | $ | (9) | | | | | $ | — | | | | | $ | 22,146 | | |
Cost of sales
|
| | | | 15,032 | | | | | | 1,240 | | | | | | 10 | | | | | | (10) | | | | | | 120 | | | | | | 16,392 | | |
Gross profit
|
| | | | 5,237 | | | | | | 637 | | | | | | (1) | | | | | | 1 | | | | | | 120 | | | | | | 5,754 | | |
Operating expenses: | | | | | | | | ||||||||||||||||||||||||||||||
Selling, general and administrative
|
| | | | 5,276 | | | | | | 651 | | | | | | 1,106 | | | | | | (1,106) | | | | | | 84 | | | | | | 6,011 | | |
Total operating expenses
|
| | | | 5,276 | | | | | | 651 | | | | | | 1,106 | | | | | | (1,106) | | | | | | 84 | | | | | | 6,011 | | |
Other (income) expense: | | | | | | | | ||||||||||||||||||||||||||||||
Interest and other expense
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 115 | | | | | | 115 | | |
Other expense (income)
|
| | | | (4) | | | | | | 26 | | | | | | — | | | | | | — | | | | | | — | | | | | | 22 | | |
Total other (income) expense
|
| | | | (4) | | | | | | 26 | | | | | | — | | | | | | — | | | | | | 115 | | | | | | 137 | | |
Income (loss) before income taxes
|
| | | | (35) | | | | | | (40) | | | | | | (1,107) | | | | | | 1,107 | | | | | | (319) | | | | | | (394) | | |
Provision for income taxes
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Net Loss
|
| | | $ | (35) | | | | | $ | (40) | | | | | $ | (1,107) | | | | | $ | 1,107 | | | | | $ | (319) | | | | | $ | (394) | | |
Net loss per share, basic(a)
|
| | | $ | (.01) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (.08) | | |
Common shares used in net loss per share, basic(a)
|
| | | | 4,923,654 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 4,923,654 | | |
Net loss per share, diluted(a)
|
| | | $ | (.01) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | (.08) | | |
Common shares used in net loss per share, diluted(a)
|
| | | | 5,000,000 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 5,000,000 | | |
|
Six Months Ended December 31,
|
| |||||||||
| | |
2018
|
| |||||||
|
(in 000’s)
|
| |||||||||
|
Actual
|
| |
Pro Forma
|
| |
Actual
|
| |
Pro Forma
|
|
|
$10,402
|
| |
$10,560
|
| |
$8,958
|
| |
$9,833
|
|
|
Six Months Ended December 31,
|
| |||||||||
| | |
2018
|
| |||||||
|
(in 000’s)
|
| |||||||||
|
Actual
|
| |
Pro Forma
|
| |
Actual
|
| |
Pro Forma
|
|
|
$2,793
|
| |
$2,836
|
| |
$2,369
|
| |
$2,598
|
|
|
Six Months Ended December 31,
|
| |||||||||
| | |
2018
|
| |||||||
|
(in 000’s)
|
| |||||||||
|
Actual
|
| |
Pro Forma
|
| |
Actual
|
| |
Pro Forma
|
|
|
$141
|
| |
$141
|
| |
$184
|
| |
$184
|
|
|
Six Months Ended December 31,
|
| |||||||||
| | |
2018
|
| |||||||
|
(in 000’s)
|
| |||||||||
|
Actual
|
| |
Pro Forma
|
| |
Actual
|
| |
Pro Forma
|
|
|
$2,520
|
| |
$2,574
|
| |
$2,358
|
| |
$2,803
|
|
|
Six Months Ended December 31,
|
| |||||||||
| | |
2018
|
| |||||||
|
(in 000’s)
|
| |||||||||
|
Actual
|
| |
Pro Forma
|
| |
Actual
|
| |
Pro Forma
|
|
|
$95
|
| |
$103
|
| |
$(4)
|
| |
$89
|
|
|
Six Months Ended December 31,
|
| |||||||||
| | |
2018
|
| |||||||
|
(in 000’s)
|
| |||||||||
|
Actual
|
| |
Pro Forma
|
| |
Actual
|
| |
Pro Forma
|
|
|
$37
|
| |
$18
|
| |
$(169)
|
| |
$(478)
|
|
|
Year Ended June 30,
|
| |||||||||
| | |
2018
|
| |||||||
|
(in 000’s)
|
| |||||||||
|
Actual
|
| |
Pro Forma
|
| |
Actual
|
| |
Pro Forma
|
|
|
$20,269
|
| |
$22,146
|
| |
$25,335
|
| |
$27,382
|
|
|
Year Ended June 30,
|
| |||||||||
| | |
2018
|
| |||||||
|
(in 000’s)
|
| |||||||||
|
Actual
|
| |
Pro Forma
|
| |
Actual
|
| |
Pro Forma
|
|
|
$5,237
|
| |
$5,754
|
| |
$5,322
|
| |
$6,187
|
|
|
Year Ended June 30,
|
| |||||||||
| | |
2018
|
| |||||||
|
(in 000’s)
|
| |||||||||
|
Actual
|
| |
Pro Forma
|
| |
Actual
|
| |
Pro Forma
|
|
|
$318
|
| |
$318
|
| |
$425
|
| |
$425
|
|
|
Year Ended June 30,
|
| |||||||||
| | |
2018
|
| |||||||
|
(in 000’s)
|
| |||||||||
|
Actual
|
| |
Pro Forma
|
| |
Actual
|
| |
Pro Forma
|
|
|
$4,958
|
| |
$5,693
|
| |
$4,338
|
| |
$5,163
|
|
|
Year Ended June 30,
|
| |||||||||
| | |
2018
|
| |||||||
|
(in 000’s)
|
| |||||||||
|
Actual
|
| |
Pro Forma
|
| |
Actual
|
| |
Pro Forma
|
|
|
$4
|
| |
$(137)
|
| |
$18
|
| |
$32
|
|
|
Year Ended June 30,
|
| |||||||||
| | |
2018
|
| |||||||
|
(in 000’s)
|
| |||||||||
|
Actual
|
| |
Pro Forma
|
| |
Actual
|
| |
Pro Forma
|
|
|
$(35)
|
| |
$(394)
|
| |
$577
|
| |
$631
|
|
Operating leases
|
| |
(in 000’s)
Total Payments |
| |||
2020
|
| | | $ | 268 | | |
2021
|
| | | | 276 | | |
2022
|
| | | | 285 | | |
2023
|
| | | | 293 | | |
2024
|
| | | | 175 | | |
Total future lease payments
|
| | | $ | 1,297 | | |
Name
|
| |
Age
|
| |
Title
|
|
Executive Officers and Directors:
|
| | | | | | |
Glenn Sherman, PhD | | | 75 | | | President and Chief Executive Officer | |
Phil Rafnson | | | 72 | | | Chairman of the Board | |
Jose Delgado | | | 55 | | | Executive Vice President, Sales and Marketing | |
Bevan Wright | | | 50 | | | Executive Vice President, Operations | |
Michael Sherman | | | 56 | | | Interim Chief Financial Officer(1) | |
Key Personnel: | | | | | | | |
Jerry Van de Rydt | | | 65 | | | Senior Vice President, FF& E Sales | |
David Richards | | | 62 | | | Senior Vice President, Engineering | |
Thomas Lipiec | | | 55 | | | Senior Vice President, Sales and Customer Service | |
Frank Tees | | | 45 | | | Vice President, Technical Sales & Support | |
Director Nominees | | | | | | | |
Katherine D. Crothall, Ph.D. | | | 70 | | | Director Nominee | |
John C. Stiska | | | 77 | | | Director Nominee | |
Scott Anderson | | | 65 | | | Director Nominee | |
Name and Principal Position
|
| |
Fiscal
Year |
| |
Salary(1)
|
| |
Bonus
|
| |
Option
Awards |
| |
All Other
Compensation |
| |
Total
|
| ||||||||||||||||||
Glenn Sherman
President and Chief Executive Officer |
| | | | 2019 | | | | | $ | 120,750 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 120,750 | | |
| | | 2018 | | | | | $ | 118,760 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 118,760 | | | ||
Jose Delgado
Executive Vice President, Sales and Marketing |
| | | | 2019 | | | | | $ | 220,500 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 220,500 | | |
| | | 2018 | | | | | $ | 201,577 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 201,577 | | | ||
Bevan Wright
Executive Vice President, Operations |
| | | | 2019 | | | | | $ | 220,500 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 220,500 | | |
| | | 2018 | | | | | $ | 216,865 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 216,865 | | | ||
Michael Sherman
Interim Chief Financial Officer(1) |
| | | | 2019 | | | | | $ | 208,000 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 208,000 | | |
| | | 2018 | | | | | $ | 88,000 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | 88,000 | | |
| | |
Shares Beneficially
Owned Before this Offering |
| |
Shares Beneficially
Owned after this Offering |
| ||||||||||||||||||
Name of Beneficial Owner
|
| |
Number
|
| |
Percentage
|
| |
Number
|
| |
Percentage
|
| ||||||||||||
Named Executive Officers and directors: | | | | | | | | | | | | | | | | | | | | | | | | | |
Phil Rafnson(1)
|
| | | | 2,005,567 | | | | | | 40.7% | | | | | | 2,005,567 | | | | | | 27.8% | | |
Bevan Wright
|
| | | | 582,570 | | | | | | 11.8% | | | | | | 582,570 | | | | | | 8.1% | | |
Jose Delgado
|
| | | | 504,556 | | | | | | 10.2% | | | | | | 504,556 | | | | | | 7.0% | | |
Glenn Sherman, PhD
|
| | | | 267,855 | | | | | | 5.4% | | | | | | 267,855 | | | | | | 3.7% | | |
Michael Sherman
|
| | | | 0 | | | | | | * | | | | | | 0 | | | | | | * | | |
| | |
Shares Beneficially
Owned Before this Offering |
| |
Shares Beneficially
Owned After this Offering |
| ||||||||||||||||||
Name of Beneficial Owner
|
| |
Number
|
| |
Percentage
|
| |
Number
|
| |
Percentage
|
| ||||||||||||
Director Nominees: | | | | | | | | | | | | | | | | | | | | | | | | | |
Katherine D. Crothall, Ph.D.(2)
|
| | | | 0 | | | | | | * | | | | | | | | | | | | * | | |
John C. Stiska(2)
|
| | | | 0 | | | | | | * | | | | | | | | | | | | * | | |
Scott Anderson(2)
|
| | | | 0 | | | | | | * | | | | | | | | | | | | * | | |
All executive officers, directors and director nominees as a
group (10 persons) |
| | | | 3,360,548 | | | | | | 68.3% | | | | | | 3,360,548 | | | | | | 46.5% | | |
5% Stockholders: | | | | | | | | | | | | | | | | | | | | | | | | | |
David Richards
|
| | | | 319,006 | | | | | | 6.5% | | | | | | 319,006 | | | | | | 4.4% | | |
Jerry Van de Rydt
|
| | | | 278,712 | | | | | | 5.7% | | | | | | 278,712 | | | | | | 3.9% | | |
Date
|
| |
Number of Shares
|
| |||
On the date of this Prospectus
|
| | | | 632,478 | | |
Between 90 and 180 days after the date of this Prospectus
|
| | | | 0 | | |
At various times beginning more than 180 days after the date of this Prospectus
|
| | | | 4,291,176 | | |
Underwriters
|
| |
Number of Shares
|
| |||
Westpark Capital, Inc.
|
| |
|
| |||
Boustead Securities, LLC.
|
| | | | | | |
Total
|
| | | | 2,300,000 | | |
| | |
Per Share of
Common Stock |
| |
Total without Exercise of
Over-allotment option |
| ||||||
Public offering price
|
| | | $ | | | | | $ | | | ||
Underwriting discount(1)
|
| | | $ | | | | | $ | | | ||
Non-accountable expense allowance(2)
|
| | | $ | | | | | $ | | | ||
Net proceeds to us(3)
|
| | | $ | | | | | $ | | | |
| | | | | F-2 | | | |
| | | | | F-3 | | | |
| | | | | F-4 | | | |
| | | | | F-5 | | | |
| | | | | F-6 | | | |
| | | | | F-7 | | |
| | | | | | | | |
June 30,
|
| |||||||||
| | | | |
2019
|
| |
2018
|
| ||||||||||
| | |
(UNAUDITED)
|
| | | |||||||||||||
Assets | | | | | | | | | | | | | | | | | | | |
Current Assets: | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 824 | | | | | $ | 582 | | | | | $ | 597 | | |
Accounts receivable, net
|
| | | | 1,456 | | | | | | 2,128 | | | | | | 2,181 | | |
Inventories, net
|
| | | | 1,934 | | | | | | 1,683 | | | | | | 2,199 | | |
Prepaid expenses and other
|
| | | | 200 | | | | | | 99 | | | | | | 73 | | |
Due from related party
|
| | | | — | | | | | | — | | | | | | 267 | | |
Total CurrentAssets
|
| | | | 4,414 | | | | | | 4,492 | | | | | | 5,317 | | |
Long-Term Assets: | | | | | | | | | | | | | | | | | | | |
Property, plant and equipment, net
|
| | | | 213 | | | | | | 32 | | | | | | 45 | | |
Intangibles, net
|
| | | | 1,078 | | | | | | — | | | | | | — | | |
Goodwill
|
| | | | 287 | | | | | | — | | | | | | — | | |
Other assets
|
| | | | 363 | | | | | | 188 | | | | | | 17 | | |
Total Long-TermAssets
|
| | | | 1,941 | | | | | | 220 | | | | | | 62 | | |
Total Assets
|
| | | $ | 6,355 | | | | | $ | 4,712 | | | | | $ | 5,379 | | |
Liabilities And Members’ Equity (Deficit) | | | | | | | | | | | | | | | | | | | |
Current Liabilities: | | | | | | | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 2,990 | | | | | $ | 2,926 | | | | | $ | 3,682 | | |
Accrued expenses
|
| | | | 460 | | | | | | 793 | | | | | | 687 | | |
Customer deposits
|
| | | | 647 | | | | | | 1,011 | | | | | | 840 | | |
Line of credit
|
| | | | 900 | | | | | | — | | | | | | — | | |
Notes payable — current
|
| | | | 90 | | | | | | — | | | | | | — | | |
Unearned warranty revenue
|
| | | | 59 | | | | | | 68 | | | | | | 44 | | |
Total Current Liabilities
|
| | | | 5,146 | | | | | | 4,798 | | | | | | 5,253 | | |
Long-Term Liabilities: | | | | | | | | | | | | | | | | | | | |
Notes payable, net of current
|
| | | | 1,243 | | | | | | — | | | | | | — | | |
Deferred rent
|
| | | | 15 | | | | | | — | | | | | | — | | |
Total Long-Term Liabilities
|
| | | | 1,258 | | | | | | — | | | | | | — | | |
Members’ Equity (Deficit)
|
| | |
|
(49)
|
| | | |
|
(86)
|
| | | |
|
126
|
| |
Total Liabilities and Members’ Equity (Deficit)
|
| | | $ | 6,355 | | | | | $ | 4,712 | | | | | $ | 5,379 | | |
| | | | | | |
Year Ended
June 30, 2019 |
| |
Year Ended
June 30, 2018 |
| | ||||||||||||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| | | | | | | | | | | | | | ||||||||
Net sales
|
| | | $ | 10,402 | | | | | $ | 8,958 | | | | | $ | 20,269 | | | | | $ | 25,335 | | | | ||
Cost of goods sold
|
| | | | 7,609 | | | | | | 6,589 | | | | | | 15,032 | | | | | | 20,013 | | | | ||
Gross profit
|
| | | | 2,793 | | | | | | 2,369 | | | | | | 5,237 | | | | | | 5,322 | | | | ||
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Research and development
|
| | | | 141 | | | | | | 184 | | | | | | 318 | | | | | | 425 | | | | ||
Selling and marketing
|
| | | | 1,361 | | | | | | 1,212 | | | | | | 2,455 | | | | | | 2,290 | | | | ||
General and administrative
|
| | | | 1,159 | | | | | | 1,146 | | | | | | 2,503 | | | | | | 2,048 | | | | ||
Total operating expenses
|
| | | | 2,661 | | | | | | 2,542 | | | | | | 5,276 | | | | | | 4,763 | | | | ||
Operating income (loss)
|
| | | | 132 | | | | | | (173) | | | | | | (39) | | | | | | 559 | | | | ||
Other expenses (income) | | | | | | | | | | | | | | | | | | | | | | | | | | | ||
Interest and other income
|
| | | | — | | | | | | (4) | | | | | | (4) | | | | | | (19) | | | | | |
Interest expense
|
| | | | 95 | | | | | | — | | | | | | — | | | | | | 1 | | | | ||
Total other expense (income)
|
| | | | 95 | | | | | | (4) | | | | | | (4) | | | | | | (18) | | | | | |
Net Income (Loss)
|
| | | $ | 37 | | | | | $ | (169) | | | | | $ | (35) | | | | | $ | 577 | | | | ||
Pro Forma C Corporation Information
(Unaudited) — See Note 9 |
| | | | | | | | | | | | | | | | | | | | | | | | | | ||
Historical net income (loss) before income taxes
|
| | | $ | 37 | | | | | $ | (169) | | | | | $ | (35) | | | | | $ | 577 | | | | ||
Pro forma provision (benefit) for income taxes
|
| | | | 10 | | | | | | (47) | | | | | | (10) | | | | | | 162 | | | | | |
Pro forma net income (loss)
|
| | | $ | 27 | | | | | $ | (122) | | | | | $ | (25) | | | | | $ | 415 | | | | ||
Pro forma net income (loss) per common share basic
|
| | | $ | .01 | | | | | $ | (.03) | | | | | $ | (.01) | | | | | $ | .08 | | | | ||
Pro forma shares outstanding basic
|
| | | | 4,923,654 | | | | | | 4,923,654 | | | | | | 4,923,654 | | | | | | 4,923,654 | | | | ||
Pro forma net income (loss) per common share Diluted
|
| | | $ | .01 | | | | | $ | (.03) | | | | | $ | (.01) | | | | | $ | .08 | | | | ||
Pro forma shares outstanding diluted
|
| | | | 5,000,000 | | | | | | 5,000,000 | | | | | | 5,000,000 | | | | | | 5,000,000 | | | |
|
Balance June 30, 2017
|
| | | $ | 162 | | |
|
Distributions
|
| | | | (613) | | |
|
Net income
|
| | | | 577 | | |
|
Balance June 30, 2018
|
| | | | 126 | | |
|
Distributions
|
| | | | (177) | | |
|
Net loss
|
| | | | (35) | | |
|
Balance June 30, 2019
|
| | | | (86) | | |
|
Net income (Unaudited)
|
| | | | 37 | | |
|
Balance December 31, 2019 (Unaudited)
|
| | | $ | (49) | | |
| | | | | | |
Year Ended
June 30, 2019 |
| |
Year Ended
June 30, 2018 |
| ||||||||||||||
| | |
(Unaudited)
|
| |
(Unaudited)
|
| | | | | | | | |||||||||||
Cash flows from operating activities: | | | | | | | | | | | |||||||||||||||
Net income (loss)
|
| | | $ | 37 | | | | | $ | (169) | | | | | $ | (35) | | | | | $ | 577 | | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
|
| | | | | | | | | | |||||||||||||||
Change in fair value of Contingent Consideration
|
| | | | (150) | | | | | | — | | | | | | — | | | | | | — | | |
Provision for (reversal of) doubtful accounts
|
| | | | (74) | | | | | | — | | | | | | (105) | | | | | | 32 | | |
Depreciation expense
|
| | | | 60 | | | | | | 10 | | | | | | 17 | | | | | | 16 | | |
Amortization expense
|
| | | | 40 | | | | | | — | | | | | | — | | | | | | — | | |
Deferred rent
|
| | | | 15 | | | | | | — | | | | | | 7 | | | | | | (8) | | |
Changes in operating assets and liabilities, net of acquisitions:
|
| | | | | ||||||||||||||||||||
Accounts receivable
|
| | | | 985 | | | | | | 904 | | | | | | 158 | | | | | | (246) | | |
Inventories
|
| | | | (251) | | | | | | 586 | | | | | | 516 | | | | | | 63 | | |
Prepaid expenses and other
|
| | | | (276) | | | | | | (339) | | | | | | (198) | | | | | | (25) | | |
Accounts payable
|
| | | | (44) | | | | | | (1,297) | | | | | | (755) | | | | | | (182) | | |
Accrued expenses
|
| | | | (334) | | | | | | (164) | | | | | | 97 | | | | | | 67 | | |
Unearned warranty revenue
|
| | | | (9) | | | | | | — | | | | | | 24 | | | | | | (39) | | |
Customer deposits
|
| | | | (364) | | | | | | 658 | | | | | | 172 | | | | | | 408 | | |
Net cash provided by (used in) operating activities
|
| | | | (365) | | | | | | 189 | | | | | | (102) | | | | | | 663 | | |
Cash flows from investing activities | | | | | | ||||||||||||||||||||
Cash acquired in business combination
|
| | | | 128 | | | | | | — | | | | | | — | | | | | | — | | |
Due from related party
|
| | | | — | | | | | | 181 | | | | | | 167 | | | | | | (37) | | |
Purchases of property, plant and equipment
|
| | | | — | | | | | | (5) | | | | | | (3) | | | | | | (20) | | |
Net cash provided by (used in) investing activities
|
| | | | 128 | | | | | | 176 | | | | | | 164 | | | | | | (57) | | |
Cash flows from financing activities | | | | | | ||||||||||||||||||||
Payments on notes payable
|
| | | | (421) | | | | | | — | | | | | | — | | | | | | — | | |
Borrowing on line of credit
|
| | | | 900 | | | | | | — | | | | | | — | | | | | | — | | |
Member distributions
|
| | | | — | | | | | | — | | | | | | (77) | | | | | | (613) | | |
Net cash provided by (used in) financing activities
|
| | | | 479 | | | | | | — | | | | | | (77) | | | | | | (613) | | |
Net increase (decrease) in cash
|
| | | | 242 | | | | | | 365 | | | | | | (15) | | | | | | (7) | | |
Cash, beginning of the period
|
| | | | 582 | | | | | | 597 | | | | | | 597 | | | | | | 604 | | |
Cash, end of the period
|
| | | $ | 824 | | | | | $ | 962 | | | | | $ | 582 | | | | | $ | 597 | | |
Non-cash investing and financing activities: | | | | | | ||||||||||||||||||||
Distribution to member to settle related party receivable
|
| | | $ | — | | | | | $ | — | | | | | $ | 100 | | | | | $ | — | | |
Acquisition of certain Caddy net assets by issuing notes
payable |
| | | $ | 1,905 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Cash paid during the period: | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest
|
| | | $ | 95 | | | | | $ | — | | | | | $ | — | | | | | $ | 1 | | |
| | | | | | ||||||||||||||
| | | | |
2018
|
| |||||||||||||
| | |
(UNAUDITED)
|
| | | |||||||||||||
Product warranty liability beginning of period
|
| | | $ | 111 | | | | | $ | 118 | | | | | $ | 115 | | |
Accruals for warranties issued
|
| | | | 10 | | | | | | 105 | | | | | | 118 | | |
Settlements made
|
| | | | (25) | | | | | | (112) | | | | | | (115) | | |
Product warranty liability end of the period
|
| | | $ | 96 | | | | | $ | 111 | | | | | $ | 118 | | |
| | | | | | ||||||||
Leasehold improvements
|
| | | $ | 202 | | | | | $ | 202 | | |
Furniture and fixtures
|
| | | | 45 | | | | | | 45 | | |
Production equipment
|
| | | | 66 | | | | | | 66 | | |
Computer equipment
|
| | | | 39 | | | | | | 33 | | |
Other equipment
|
| | | | 114 | | | | | | 133 | | |
| | | | | 466 | | | | | | 479 | | |
Accumulated depreciation
|
| | | | 434 | | | | | | 434 | | |
Net property plant and equipment
|
| | | $ | 32 | | | | | $ | 45 | | |
| | |
Useful Lives
|
|
Leasehold improvements
|
| | 5 years | |
Furniture and fixtures
|
| | 5 years | |
Production equipment
|
| | 3 – 7 years | |
Computer equipment
|
| | 3 years | |
Other equipment
|
| | 3 – 7 years | |
| | | | | |
December 31, 2019
(UNAUDITED) |
| |||||||||||||||
| | |
Amortization
Period |
| |
Gross Asset
Cost |
| |
Accumulated
Amortization |
| |
Net Book
Value |
| |||||||||
Customer relations
|
| |
11 years
|
| | | $ | 970 | | | | | $ | 36 | | | | | $ | 934 | | |
Patents
|
| |
20 years
|
| | | | 70 | | | | | | 2 | | | | | | 68 | | |
Trademark
|
| |
20 years
|
| | | | 78 | | | | | | 2 | | | | | | 76 | | |
| | | | | | | $ | 1,118 | | | | | $ | 40 | | | | | $ | 1,078 | | |
|
| Goodwill – June 30, 2019 | | | |
$
|
—
|
| |
|
Caddy acquisition
|
| | | | 287 | | |
| Goodwill – December 31, 2019 | | | | | | | |
|
(UNAUDITED)
|
| | | $ | 287 | | |
|
2020 remaining
|
| | | $ | 40 | | |
|
2021
|
| | | | 80 | | |
|
2022
|
| | | | 80 | | |
|
2023
|
| | | | 80 | | |
|
2024
|
| | | | 80 | | |
|
2025 and beyond
|
| | | | 718 | | |
|
Total
|
| | | $ | 1,078 | | |
| | | | | | ||||||||
Employee compensation
|
| | | $ | 230 | | | | | $ | 229 | | |
Others
|
| | | | 563 | | | | | | 458 | | |
Total
|
| | | $ | 793 | | | | | $ | 687 | | |
| | |
December 31, 2019
(UNAUDITED) |
| |||
Promissory note
|
| | | $ | 1,140 | | |
Line of credit
|
| | | | 900 | | |
Indemnity promissory note
|
| | | | 193 | | |
Total debt obligations
|
| | | | 2,233 | | |
Less current portion
|
| | | | (990) | | |
Long-term debt less current portion
|
| | | $ | 1,243 | | |
Operating leases
|
| |
(in 000’s) Total Payments
|
| |||
2020
|
| | | $ | 268 | | |
2021
|
| | | | 276 | | |
2022
|
| | | | 285 | | |
2023
|
| | | | 293 | | |
2024
|
| | | | 175 | | |
Total future minimum lease payments
|
| | | $ | 1,297 | | |
| | |
Amount (in 000’s)
(UNAUDITED) |
| |||
Notes issued for the acquisition
|
| | | $ | 1,905 | | |
Liabilities assumed
|
| | | | 108 | | |
| | | | $ | 2,013 | | |
| | |
Amount
(UNAUDITED) (in 000’s) |
| |||
Preliminary purchase price allocation for the acquisition | | | |||||
Cash
|
| | | $ | 128 | | |
Accounts receivable and other assets
|
| | | | 239 | | |
Property plant and equipment, net
|
| | | | 241 | | |
Customer relationships
|
| | | | 970 | | |
Patents
|
| | | | 70 | | |
Trademark
|
| | | | 78 | | |
Total identifiable assets acquired
|
| | | | 1,726 | | |
Goodwill
|
| | | | 287 | | |
Net assets acquired
|
| | | $ | 2,013 | | |
| | |
December 31, 2019 (UNAUDITED)
|
| |||||||||||||||
| | |
Fair Value Hierarchy Category
|
| |||||||||||||||
(in thousands)
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |||||||||
Assets: | | | | | | | | | | | | | | | | | | | |
Total Assets
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
Liabilities: | | | | | | | | | | | | | | | | | | | |
Contingent consideration — business combinations
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
Total Liabilities
|
| | | $ | — | | | | | $ | — | | | | | $ | — | | |
(in thousands)
|
| | | ||||
Fair value measurement at beginning of period
|
| | | $ | — | | |
Contingent consideration liabilities recorded for business combinations, including measurement period adjustments
|
| | | | 150,000 | | |
Changes in fair values, recorded in operating expenses
|
| | | | (150,000) | | |
Payments of contingent consideration
|
| | | | — | | |
Fair value measurement at end of period
|
| | | $ | — | | |
| | | | | | ||||||||||||||
| | | | |
2017
|
| |||||||||||||
| | |
(UNAUDITED)
|
| | | |||||||||||||
ASSETS | | | | | |||||||||||||||
Current assets | | | | | |||||||||||||||
Cash
|
| | | $ | 99 | | | | | $ | 54 | | | | | $ | 16 | | |
Other assets
|
| | | | 90 | | | | | | 11 | | | | | | — | | |
Accounts receivable
|
| | | | 207 | | | | | | 133 | | | | | | 149 | | |
Total current assets
|
| | | | 396 | | | | | | 198 | | | | | | 165 | | |
Property, plant and equipment, net
|
| | | | 63 | | | | | | 106 | | | | | | 213 | | |
Total assets
|
| | | $ | 459 | | | | | $ | 304 | | | | | $ | 378 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | |||||||||||||||
Current liabilities | | | | | |||||||||||||||
Accounts payable
|
| | | $ | 106 | | | | | $ | 39 | | | | | $ | 12 | | |
Accrued expenses
|
| | | | 2 | | | | | | 11 | | | | | | 28 | | |
Line of credit
|
| | | | — | | | | | | — | | | | | | 50 | | |
Total current liabilities
|
| | | | 108 | | | | | | 50 | | | | | | 90 | | |
Related party note payable
|
| | | | — | | | | | | — | | | | | | 20 | | |
Common stock – no par value, 1,000 shares outstanding at December 31, 2017 and 2018, and June 30, 2019
|
| | | | — | | | | | | — | | | | | | — | | |
Retained earnings
|
| | | | 351 | | | | | | 254 | | | | | | 268 | | |
Stockholders’ equity
|
| | | | 351 | | | | | | 254 | | | | | | 268 | | |
Total liabilities and stockholders’ equity
|
| | | $ | 459 | | | | | $ | 304 | | | | | $ | 378 | | |
| | | | | | |
Year Ended
December 31, 2018 |
| |
Year Ended
December 31, 2017 |
| ||||||||||||||
| | |
(UNAUDITED)
|
| |
(UNAUDITED)
|
| | | ||||||||||||||||
Net sales
|
| | | $ | 1,002 | | | | | $ | 1,017 | | | | | $ | 1,892 | | | | | $ | 2,259 | | |
Cost of goods sold
|
| | | | 654 | | | | | | 590 | | | | | | 1,176 | | | | | | 1,352 | | |
Gross profit
|
| | | | 348 | | | | | | 427 | | | | | | 716 | | | | | | 907 | | |
Operating expenses | | | | | | ||||||||||||||||||||
Selling, general and administrative
|
| | | | 254 | | | | | | 286 | | | | | | 683 | | | | | | 886 | | |
Total operating expenses
|
| | | | 254 | | | | | | 286 | | | | | | 683 | | | | | | 886 | | |
Operating profit
|
| | | | 94 | | | | | | 141 | | | | | | 33 | | | | | | 21 | | |
Other expense (income)
|
| | | | | ||||||||||||||||||||
Interest expense
|
| | | | — | | | | | | 1 | | | | | | 1 | | | | | | — | | |
Interest and other (income)
|
| | | | (3) | | | | | | (9) | | | | | | 20 | | | | | | (22) | | |
Total other expense (income)
|
| | | | (3) | | | | | | (8) | | | | | | 21 | | | | | | (22) | | |
Net income
|
| | | $ | 97 | | | | | $ | 149 | | | | | $ | 12 | | | | | $ | 43 | | |
|
Balance December 31, 2016
|
| | | $ | 258 | | |
|
Distributions
|
| | | | (33) | | |
|
Net income
|
| | | | 43 | | |
|
Balance December 31, 2017
|
| | | | 268 | | |
|
Distributions
|
| | | | (26) | | |
|
Net income
|
| | | | 12 | | |
|
Balance December 31, 2018
|
| | | | 254 | | |
|
Distributions (UNAUDITED)
|
| | | | — | | |
|
Net income (UNAUDITED)
|
| | | | 97 | | |
|
Balance June 30, 2019 (UNAUDITED)
|
| | | $ | 351 | | |
| | | | | | |
Year Ended
December 31, 2018 |
| |
Year Ended
December 31, 2017 |
| ||||||||||||||
| | |
(UNAUDITED)
|
| |
(UNAUDITED)
|
| | | ||||||||||||||||
Cash flows from operating activities | | | | | | ||||||||||||||||||||
Net income
|
| | | $ | 97 | | | | | $ | 149 | | | | | $ | 12 | | | | | $ | 43 | | |
Adjustments to reconcile net income to net cash provided by operating activities:
|
| | | | | ||||||||||||||||||||
Depreciation expense
|
| | | | 43 | | | | | | 75 | | | | | | 119 | | | | | | 146 | | |
Changes in operating assets and liabilities: | | | | | | ||||||||||||||||||||
Accounts receivable
|
| | | | (74) | | | | | | 10 | | | | | | 17 | | | | | | 49 | | |
Other assets
|
| | | | (79) | | | | | | — | | | | | | (11) | | | | | | — | | |
Accounts payable
|
| | | | 67 | | | | | | 65 | | | | | | 27 | | | | | | (42) | | |
Accrued expenses
|
| | | | (9) | | | | | | (27) | | | | | | (19) | | | | | | (13) | | |
Net cash provided by operating activities
|
| | | | 45 | | | | | | 272 | | | | | | 145 | | | | | | 183 | | |
Cash flows from investing activities | | | | | | ||||||||||||||||||||
Purchases of property, plant and equipment
|
| | | | — | | | | | | (11) | | | | | | (11) | | | | | | (87) | | |
Net cash used in investing activities
|
| | | | — | | | | | | (11) | | | | | | (11) | | | | | | (87) | | |
Cash flows from financing activities | | | | | | ||||||||||||||||||||
Due from related party
|
| | | | — | | | | | | — | | | | | | (20) | | | | | | — | | |
Payments of related party notes payable
|
| | | | — | | | | | | — | | | | | | — | | | | | | 8 | | |
Line of credit
|
| | | | — | | | | | | (50) | | | | | | (50) | | | | | | (55) | | |
Stockholder distributions
|
| | | | — | | | | | | (40) | | | | | | (26) | | | | | | (33) | | |
Net cash used in financing activities
|
| | | | — | | | | | | (90) | | | | | | (96) | | | | | | (80) | | |
Net increase in cash
|
| | | | 45 | | | | | | 171 | | | | | | 38 | | | | | | 16 | | |
Cash, beginning of the period
|
| | | | 54 | | | | | | 16 | | | | | | 16 | | | | | | — | | |
Cash, end of the period
|
| | | $ | 99 | | | | | $ | 187 | | | | | $ | 54 | | | | | $ | 16 | | |
Supplemental disclosure of cash flow information | | | | | | ||||||||||||||||||||
Cash paid during the year and for the period: | | | | | | ||||||||||||||||||||
Interest
|
| | | $ | — | | | | | $ | — | | | | | $ | 1 | | | | | $ | 6 | | |
| | | | ||||||||||
| | | | |
2017
|
| |||||||
Molds
|
| | | $ | 3,047 | | | | | $ | 3,034 | | |
Furniture and fixtures
|
| | | | 163 | | | | | | 163 | | |
Leasehold improvements
|
| | | | 82 | | | | | | 82 | | |
Computer equipment
|
| | | | 126 | | | | | | 126 | | |
Other equipment
|
| | | | 67 | | | | | | 67 | | |
| | | | | 3,485 | | | | | | 3,472 | | |
Accumulated depreciation
|
| | | | 3,379 | | | | | | 3,259 | | |
Net property and equipment
|
| | | $ | 106 | | | | | $ | 213 | | |
| | |
Useful Lives
|
|
Leasehold improvements | | | 5 years | |
Furniture and fixtures | | | 5 years | |
Molds | | | 3 years | |
Computer equipment | | | 3 years | |
Other equipment | | | 3 — 7 years | |
|
January 1, 2016 through July 31, 2017
|
| | | $ | 4,581 | | |
|
August 1, 2017 through November 15, 2018
|
| | | $ | 5,377 | | |
| | | | | | ||||||||
ASSETS
|
| | | | | | | | | | | | |
Current assets | | | | | | | | | | | | | |
Cash
|
| | | $ | 10 | | | | | $ | 202 | | |
Accounts receivable, net of allowance of $19 and $29, respectively
|
| | | | — | | | | | | — | | |
Prepaid expenses and other
|
| | | | — | | | | | | 2 | | |
Total assets
|
| | | $ | 10 | | | | | $ | 204 | | |
LIABILITIES AND SHAREHOLDERS’ DEFICIT | | | | | | | | | | | | | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 41 | | | | | $ | 23 | | |
Accrued expenses
|
| | | | 90 | | | | | | 160 | | |
Notes payable
|
| | | | 262 | | | | | | 38 | | |
Total current liabilities
|
| | | | 393 | | | | | | 221 | | |
Commitments and contingencies
|
| | | | | | | | | | | | |
Shareholders’ deficit
|
| | | | | | | | | | | | |
Preferred stock, 10,000,000 shares authorized; 0 shares issued and outstanding as of December 31, 2019 and 2018
|
| | | | — | | | | | | — | | |
Common stock; $.0001 par value; 100,000,000 shares authorized; 94,784,166,
issued and outstanding |
| | | | 10 | | | | | | 10 | | |
Additional paid-in capital
|
| | | | 1,391 | | | | | | 1,391 | | |
Accumulated deficit
|
| | | | (1,784) | | | | | | (1,418) | | |
Total shareholders’ deficit
|
| | | | (383) | | | | | | (17) | | |
Total liabilities and shareholders’ deficit
|
| | | $ | 10 | | | | | $ | 204 | | |
| | |
For the Years Ended
|
| |||||||||
| | | | | | ||||||||
Net sales
|
| | | $ | — | | | | | $ | 70 | | |
Cost of goods sold
|
| | | | — | | | | | | 111 | | |
Gross loss
|
| | | | — | | | | | | (41) | | |
Operating expenses
|
| | | | | | | | | | | | |
Selling and marketing
|
| | | | — | | | | | | 31 | | |
General and administrative
|
| | | | 366 | | | | | | 1,471 | | |
Total operating expenses
|
| | | | 366 | | | | | | 1,502 | | |
Operating loss
|
| | | | (366) | | | | | | (1,543) | | |
Other (income) expense, net | | | | ||||||||||
Interest and finance expense
|
| | | | — | | | | | | 489 | | |
Total other expense
|
| | | | — | | | | | | 489 | | |
Loss before income taxes
|
| | | | (366) | | | | | | (2,032) | | |
Provision for income taxes
|
| | | | — | | | | | | 3 | | |
Net loss
|
| | | $ | (366) | | | | | $ | (2,035) | | |
Weighted average basic and diluted loss per share
|
| | | $ | (0.00) | | | | | $ | (0.04) | | |
Weighted average shares used in computation
|
| | | | 94,784 | | | | | | 48,571 | | |
| | |
Common Stock
|
| |
Additional
Paid-in Capital |
| |
Net Equity
(Deficit) Monster Digital |
| |
Accumulated
Deficit |
| |
Shareholders’
Equity (Deficit) |
| |||||||||||||||||||||
| | |
Shares
|
| |
Amount
|
| | | | | | | | | | | | | | | | | | | | | | | | | ||||||
Balance December 31, 2017
|
| | | | — | | | | | $ | — | | | | | $ | — | | | | | $ | (1,971) | | | | | $ | — | | | | | $ | (1,971) | | |
Issuance of common stock, net of issuance costs
|
| | | | 57,250,000 | | | | | | 6 | | | | | | 1,002 | | | | | | — | | | | | | — | | | | | | 1,008 | | |
Issuance of common stock for investment services rendered
|
| | | | 12,500,000 | | | | | | 1 | | | | | | 249 | | | | | | — | | | | | | — | | | | | | 250 | | |
Issuance of common stock for officers and employees
|
| | | | 6,400,000 | | | | | | 1 | | | | | | 127 | | | | | | — | | | | | | — | | | | | | 128 | | |
Liabilities transferred in connection
with spin-off |
| | | | — | | | | | | — | | | | | | — | | | | | | 1,000 | | | | | | — | | | | | | 1,000 | | |
Transfer from parent
|
| | | | — | | | | | | — | | | | | | — | | | | | | 275 | | | | | | — | | | | | | 275 | | |
Liabilities settled with issuance of common stock
|
| | | | — | | | | | | — | | | | | | — | | | | | | 94 | | | | | | — | | | | | | 94 | | |
Effect of spin-off from Monster Digital and conversion of notes payable
|
| | | | 18,634,166 | | | | | | 2 | | | | | | (249) | | | | | | 776 | | | | | | — | | | | | | 529 | | |
Beneficial conversion charge
|
| | | | — | | | | | | — | | | | | | — | | | | | | 443 | | | | | | — | | | | | | 443 | | |
Amortization of non-cash stock-based compensation
|
| | | | — | | | | | | — | | | | | | 262 | | | | | | — | | | | | | — | | | | | | 262 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | (617) | | | | | | (1,418) | | | | | | (2,035) | | |
| | | | 94,784,166 | | | | | | 10 | | | | | | 1,391 | | | | | | — | | | | | | (1,418) | | | | | | (17) | | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (366) | | | | | | (366) | | |
| | | | 94,784,166 | | | | | $ | 10 | | | | | $ | 1,391 | | | | | $ | — | | | | | $ | (1,784) | | | | | $ | (383) | | |
| | |
Years Ended
December 31, |
| |||||||||
| | | | |
2018
|
| |||||||
Cash flows from operating activities | | | | ||||||||||
Net loss
|
| | | $ | (366) | | | | | $ | (2,035) | | |
Adjustments to reconcile net loss to net cash used in operating activities:
|
| | | | | | | | | | | | |
Stock-based compensation
|
| | | | — | | | | | | 640 | | |
Beneficial conversion charge
|
| | | | — | | | | | | 443 | | |
Non-cash interest related to debt conversion
|
| | | | — | | | | | | 44 | | |
Provision for doubtful accounts
|
| | | | — | | | | | | 13 | | |
Changes in operating assets and liabilities:
|
| | | ||||||||||
Accounts receivable
|
| | | | — | | | | | | 77 | | |
Inventories
|
| | | | — | | | | | | 101 | | |
Prepaid expenses and other
|
| | | | 2 | | | | | | 59 | | |
Accounts payable
|
| | | | 18 | | | | | | (260) | | |
Accrued expenses
|
| | | | (70) | | | | | | (506) | | |
Customer refund
|
| | | | — | | | | | | (50) | | |
Due to related parties
|
| | | | — | | | | | | (33) | | |
Net cash used in operating activities
|
| | | | (416) | | | | | | (1,507) | | |
Cash flows from financing activities | | | | ||||||||||
Issuance of common stock, net of issuance cost
|
| | | | — | | | | | | 1,008 | | |
Proceeds from issuance of convertible notes
|
| | | | 224 | | | | | | — | | |
Transfer from parent
|
| | | | — | | | | | | 275 | | |
Net cash provided by financing activities
|
| | | | 224 | | | | | | 1,283 | | |
Net decrease in cash
|
| | | | (192) | | | | | | (224) | | |
Cash, beginning of the period
|
| | | | 202 | | | | | | 426 | | |
Cash, end of the period
|
| | | $ | 10 | | | | | $ | 202 | | |
Supplemental disclosure of cash flow information | | | | ||||||||||
Cash paid during the period for:
|
| | | | | | | | | | | | |
Interest
|
| | | $ | — | | | | | $ | — | | |
Income taxes
|
| | | $ | — | | | | | | 3 | | |
Non-cash investing and financing activities: | | | | ||||||||||
Liabilities settled with issuance of common stock
|
| | | $ | — | | | | | $ | 94 | | |
Liabilities transferred in connection with spin-off
|
| | | $ | — | | | | | | 1,000 | | |
Effect of spin-off from Monster Digital and conversion of notes payable
|
| | | $ | — | | | | | | 529 | | |
| | | | | | ||||||||
Reserve for charges against sales
|
| | | $ | 6 | | | | | $ | 30 | | |
Others
|
| | | | 84 | | | | | | 130 | | |
Total
|
| | | $ | 90 | | | | | $ | 160 | | |
| | |
Amount to be
Paid |
| |||
SEC registration fee
|
| | | $ | 1,642 | | |
FINRA filing fee
|
| | | | 2,463 | | |
NYSE listing fee
|
| | | | 50,000 | | |
Printing and mailing
|
| | | | 150,000 | | |
Legal fees and expenses
|
| | | | 500,000 | | |
Accounting fees and expenses
|
| | | | 200,000 | | |
Transfer agent and registrar fees and expenses
|
| | | | 25,000 | | |
Miscellaneous | | | | | 33,831 | | |
Total | | | | $ | 962,936 | | |
|
Name and Signature
|
| |
Title
|
| |
Date
|
|
|
|
| | President, Chief Executive Officer | | | February 21, 2020 | |
|
*
Phil Rafnson
|
| | Chairman of the Board | | | February 21, 2020 | |
|
*
Michael Sherman
|
| | Interim Chief Financial Officer and Principal Accounting Officer | | | February 21, 2020 | |
|
* By
|
| | Attorney-in-fact | | |
This ‘S-1/A’ Filing | Date | Other Filings | ||
---|---|---|---|---|
12/15/20 | None on these Dates | |||
6/30/20 | ||||
Filed on: | 2/21/20 | |||
2/19/20 | ||||
1/1/20 | ||||
12/31/19 | ||||
12/30/19 | ||||
12/15/19 | ||||
10/28/19 | ||||
10/24/19 | ||||
10/8/19 | ||||
7/31/19 | ||||
7/29/19 | ||||
7/28/19 | ||||
7/1/19 | ||||
6/30/19 | ||||
6/10/19 | ||||
2/1/19 | ||||
1/1/19 | ||||
12/31/18 | ||||
12/30/18 | ||||
11/15/18 | ||||
10/3/18 | ||||
9/18/18 | ||||
8/9/18 | ||||
8/1/18 | ||||
7/24/18 | ||||
7/1/18 | ||||
6/30/18 | ||||
6/1/18 | ||||
1/31/18 | ||||
1/29/18 | ||||
1/26/18 | ||||
1/1/18 | ||||
12/31/17 | ||||
9/27/17 | ||||
8/1/17 | ||||
7/31/17 | ||||
7/6/17 | ||||
6/30/17 | ||||
4/1/17 | ||||
3/31/17 | ||||
12/31/16 | ||||
10/10/16 | ||||
6/1/16 | ||||
1/1/16 | ||||
7/1/11 | ||||
4/28/09 | ||||
List all Filings |
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 9/27/23 MOVING iMAGE TECHNOLOGIES INC. 10-K 6/30/23 84:9.1M Toppan Merrill Bridge/FA 1/24/23 MOVING iMAGE TECHNOLOGIES INC. 8-K:5,7,9 1/19/23 13:233K Toppan Merrill/FA 9/28/22 MOVING iMAGE TECHNOLOGIES INC. 10-K 6/30/22 81:8M Toppan Merrill/FA 8/12/22 MOVING iMAGE TECHNOLOGIES INC. S-8 8/12/22 5:90K Toppan Merrill/FA 9/29/21 MOVING iMAGE TECHNOLOGIES INC. 10-K 6/30/21 6:789K Toppan Merrill/FA 8/20/21 MOVING iMAGE TECHNOLOGIES INC. S-8 8/20/21 3:87K Toppan Merrill/FA 7/07/21 MOVING iMAGE TECHNOLOGIES INC. S-1/A 7/06/21 2:93K Toppan Merrill/FA 5/21/21 MOVING iMAGE TECHNOLOGIES INC. S-1/A 2:3.5M Toppan Merrill/FA 4/20/21 MOVING iMAGE TECHNOLOGIES INC. S-1/A 2:3.5M Toppan Merrill/FA 1/29/21 MOVING iMAGE TECHNOLOGIES INC. S-1/A 2:3.5M Toppan Merrill/FA 10/19/20 MOVING iMAGE TECHNOLOGIES INC. S-1/A 7:3.6M Toppan Merrill/FA 10/01/20 MOVING iMAGE TECHNOLOGIES INC. S-1/A 9/30/20 8:3.5M Toppan Merrill/FA |