LGL Group Inc: Form 10-Q for the period ended Jun 30, 2024
Filed with the SEC on Aug 13, 2024 and accepted by EDGAR at Aug 13, 2024, 20:18 ET.
Management's discussion and analysis
As filed, 27,089 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
The following discussion and analysis of the Company's financial condition and results of operations should be read in conjunction with the accompanying unaudited Condensed Consolidated Financial Statements, the notes thereto and the other unaudited financial data included in this Quarterly Report on Form 10-Q. The following discussion should also be read in conjunction with the audited consolidated financial statements and the notes thereto, and "Management's Discussion and Analysis of Financial Condition and Results of Operations" included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023 as filed with the SEC on April 1, 2024. The terms "LGL," "LGL Group," "we," "our," "us," or the "Company" refer to The LGL Group, Inc. and its consolidated subsidiaries and unless otherwise defined herein, capitalized terms used herein shall have the same meanings as set forth in our condensed consolidated financial statements and the notes thereto.
Unless otherwise stated, all dollar amounts are in thousands.
In addition to historical data, this discussion contains forward-looking statements about our business, operations and financial performance based on current expectations that involve risks, uncertainties and assumptions. Actual results may differ materially from those discussed in the forward-looking statements as a result of various factors. See the Cautionary Statement Concerning Forward-Looking Statements included in this Quarterly Report on Form 10-Q.
Overview
The Company is a holding company engaged in services, merchant investment, and manufacturing business activities. The Company, through its manufacturing business subsidiary, is engaged in the designing, manufacturing, and marketing of high-performance Frequency and Time Reference Standards that form the basis for timing and synchronization in various applications. The Company's primary markets are communications, networking, aerospace, defense, instrumentation, and industrial markets.
The accompanying unaudited condensed consolidated financial statements include the accounts of The LGL Group, Inc., its majority-owned subsidiaries, and variable interest entities (“VIE”) of which we are the primary beneficiary.
We provide our products and services through our Electronic Instruments and Merchant Investment businesses. Activities not related to our business segments, such as our corporate operations and corporate-level assets and financial obligations, are included in Corporate.
Electronic Instruments Business
We operate our manufacturing business currently through our subsidiary, Precise Time and Frequency, LLC ("PTF"), a globally positioned producer of industrial Electronic Instruments and commercial products and services. Founded in 2002, PTF operates from our design and manufacturing facility in Wakefield, Massachusetts.
Merchant Investment Business
The LGL investment business is comprised of various investment vehicles in which LGL is either shareholder, partner, or has general partner interests, and through which LGL invests its capital. The Company seeks to invest available cash and cash equivalents in liquid investments with a view to enhancing returns as we continue to assess further acquisitions of, or investments in, operating businesses broadly. LGL core strengths include identifying and acquiring undervalued assets and businesses, often through the purchase of securities, increasing value through management, financial or other operational changes, and managing complex legal, regulatory or financial issues, which may include technical, engineering, environmental, zoning, permitting and licensing issues among others.
As of June 30, 2024, LGL Group had investments (classified within Cash and cash equivalents and Marketable securities) with a fair value of approximately $41.1 million, of which $24.1 million was held within the Merchant Investment business. The Company accounts for its Marketable securities under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 321, Investments - Equity Securities ("ASC 321") and as such, its Marketable securities are reported at fair value on its Consolidated Balance Sheets.
Market Conditions and Search Process
During the first half of 2024, mergers and acquisitions continued to be impacted by macroeconomic conditions such as higher borrowing costs, inflationary pressures, increased regulatory scrutiny, and political uncertainty. The initial public offering ("IPO") market has been relatively weak with continued pressure on private equity sponsors to monetize their portfolio companies, which has improved the pace and quality of deal flow to our team.
Our search process leverages our professional networks and relationships, participation in industry events and conferences, monitoring of industry trends and news, and interactions with our shareholders, investment banks, and other intermediaries. We continue to seek small- to mid-sized opportunities with strong cash flow generating capacity that trade at reasonable multiples with competitive products or services and with defensible market positions or intellectual property.
Trends and Uncertainties
We are not aware of any material trends or uncertainties, other than global macroeconomic conditions affecting our industry generally that may reasonably be expected to have a material impact, favorable or unfavorable, on our revenues or income other than those listed below and those listed in Item 1A, Risk Factors, of our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on April 1, 2024.
Inflation and Changing Interest Rates
Inflation in the United States decreased from 6.5% as of December 31, 2022 to 3.4% as of December 31, 2023, which is still above the U.S. Federal Reserve's long-term target of 2.0%. Through the date of filing of this Quarterly Report on Form 10-Q, inflation has further decreased to 3.0%. Although inflation is expected to continue to decrease in 2024, the continued higher inflationary conditions may have an adverse impact on our Manufacturing cost of sales and Engineering, selling and administrative expenses, as these costs could increase at a rate higher than our revenue. As a result, we have increased the prices we charge our customers.
The U.S. Federal Reserve raised the federal funds rate a total of four times throughout 2023, resulting in a range from 5.25% to 5.50% as of December 31, 2023. Through the date of filing of this Quarterly Report on Form 10-Q, the Federal Reserve has maintained the federal funds rate in the same range as of December 31, 2023. It is expected that the U.S. Federal Reserve will continue to hold the federal funds rate steady or start to decrease it during 2024 to, among other things, control inflation; however, the timing of any such decrease remains unclear. If interest rates start to decline, the returns generated by our investments in U.S. Treasuries could be adversely impacted.
Results of Operations - Consolidated
Three months ended June 30, 2024 compared to three months ended June 30, 2023
The following table presents our Condensed Statements of Operations for the periods indicated:
(in thousands)
| Revenues: | Three Months Ended June 30, 2024 | 2023 | $ Change | % Change |
|---|---|---|---|---|
| Net sales | $531 | $403 | $128 | 31.8% |
| Net investment income | 538 | 275 | 263 | 95.6% |
| Net (losses) gains | (1) | 43 | (44) | -102.3% |
| Total revenues | 1,068 | 721 | 347 | 48.1% |
| Expenses: | ||||
| Manufacturing cost of sales | 214 | 208 | 6 | 2.9% |
| Engineering, selling and administrative | 617 | 645 | (28) | -4.3% |
| Total expenses | 831 | 853 | (22) | -2.6% |
| Income (loss) from continuing operations before income taxes | 237 | (132) | 369 | -279.5% |
| Income tax expense (benefit) | 76 | (2) | 78 | -3900.0% |
| Net income (loss) from continuing operations | 161 | (130) | 291 | -223.8% |
| Income (loss) from discontinued operations, net of tax | — | — | — | n/m |
| Net income (loss) | 161 | (130) | 291 | -223.8% |
| Less: Net income attributable to non-controlling interests | 24 | — | 24 | n/m |
| Net income (loss) attributable to LGL Group common stockholders | $137 | $(130) | $267 | -205.4% |
Total Revenues
Total revenues increased $347, or 48.1%, from $721 for the three months ended June 30, 2023 to $1,068 for the three months ended June 30, 2024. The following items contributed to the overall increase:
- a $128, or 31.8%, increase in Net sales from $403 for the three months ended June 30, 2023 to $531 for the three months ended June 30, 2024 primarily due to higher product shipments during Q2 2024; and
- a $263, or 95.6%, increase in Net investment income from $275 for the three months ended June 30, 2023 to $538 for the three months ended June 30, 2024 primarily due to investments in higher yielding United States Treasury money market funds.
Total Expenses
Total expenses decreased $22, or 2.6%, from $853 for the three months ended June 30, 2023 to $831 for the three months ended June 30, 2024. The decrease was primarily due to a $28, or 4.3%, decrease in Engineering, selling and administrative from $645 for the three months ended June 30, 2023 to $617 for the three months ended June 30, 2024 driven by lower accounting and other professional fees.
Gross Margin
Gross margin (Net sales less Manufacturing cost of sales as a percentage of Net sales) increased 1,130 basis points from 48.4% for the three months ended June 30, 2023 to 59.7% for the three months ended June 30, 2024 reflecting increased sales of higher margin products.
Income Tax Expense
Income tax expense (benefit) increased $78, or 3900.0%, from ($2) for the three months ended June 30, 2023 to $76 for the three months ended June 30, 2024 primarily due to the increase in Income from continuing operations.
Net Income Attributable to Non-Controlling Interests
Net income attributable to non-controlling interests increased $24 from $0 for the three months ended June 30, 2023 to $24 for the three months ended June 30, 2024 primarily due to the consolidation of LGL Systems in June 2023, which has minority shareholders.
Six months ended June 30, 2024 compared to six months ended June 30, 2023
The following table presents our Condensed Statements of Operations for the periods indicated:
(in thousands)
| Revenues: | Six Months Ended June 30, 2024 | 2023 | $ Change | % Change |
|---|---|---|---|---|
| Net sales | $923 | $844 | $79 | 9.4% |
| Net investment income | 1,037 | 473 | 564 | 119.2% |
| Net (losses) gains | (4) | 388 | (392) | -101.0% |
| Total revenues | 1,956 | 1,705 | 251 | 14.7% |
| Expenses: | ||||
| Manufacturing cost of sales | 418 | 400 | 18 | 4.5% |
| Engineering, selling and administrative | 1,222 | 1,187 | 35 | 2.9% |
| Total expenses | 1,640 | 1,587 | 53 | 3.3% |
| Income from continuing operations before income taxes | 316 | 118 | 198 | 167.8% |
| Income tax expense | 112 | 63 | 49 | 77.8% |
| Net income (loss) from continuing operations | 204 | 55 | 149 | 270.9% |
| Income (loss) from discontinued operations, net of tax | — | (28) | 28 | -100.0% |
| Net income | 204 | 27 | 177 | 655.6% |
| Less: Net income attributable to non-controlling interests | 46 | — | 46 | n/m |
| Net income attributable to LGL Group common stockholders | $158 | $27 | $131 | 485.2% |
Total Revenues
Total revenues increased $251, or 14.7%, from $1,705 for the six months ended June 30, 2023 to $1,956 for the six months ended June 30, 2024. The following items contributed to the overall increase:
- a $79, or 9.4%, increase in Net sales from $844 for the six months ended June 30, 2023 to $923 for the six months ended June 30, 2024 primarily due to operational efficiencies and higher product shipments; and
- a $564, or 119.2%, increase in Net investment income from $473 for the six months ended June 30, 2023 to $1,037 for the six months ended June 30, 2024 primarily due to investments in higher yielding United States Treasury money market funds.
The increase was partially offset by a $392, or 101.0%, decrease in Net gains (losses) from $388 for the six months ended June 30, 2023 to ($4) for the six months ended June 30, 2024 primarily due to lower mark-to-market movements of Marketable securities and no sales of Marketable securities.
Total Expenses
Total expenses increased $53, or 3.3%, from $1,587 for the six months ended June 30, 2023 to $1,640 for the six months ended June 30, 2024. The increase was primarily due to a $35, or 2.9%, increase in Engineering, selling and administrative from $1,187 for the six months ended June 30, 2023 to $1,222 for the six months ended June 30, 2024 driven by higher wages and benefits.
Gross Margin
Gross margin (Net sales less Manufacturing cost of sales as a percentage of Net sales) increased 210 basis points from 52.6% for the six months ended June 30, 2023 to 54.7% for the six months ended June 30, 2024 reflecting increased sales of higher margin products.
Income Tax Expense
Income tax expense increased $49, or 77.8%, from $63 for the six months ended June 30, 2023 to $112 for the six months ended June 30, 2024 primarily due to the increase in Income from continuing operations.
Net Income Attributable to Non-Controlling Interests
Net income attributable to non-controlling interests increased $46 from $0 for the six months ended June 30, 2023 to $46 for the six months ended June 30, 2024 primarily due to the consolidation of LGL Systems in June 2023, which has minority shareholders.
Backlog
As of June 30, 2024, our order backlog was $737, an increase of $594, or 415.4%, from $143 as of December 31, 2023 and an increase of $413, or 127.5%, from $324 as of June 30, 2023. The backlog of unfilled orders includes amounts based on signed contracts likely to be fulfilled largely in the next 12 months but usually will ship within the next 90 days. Order backlog is adjusted quarterly to reflect project cancellations, deferrals, and revised project scope and cost, if any.
Results of Operations - Operating Segments
Electronic Instruments
Three months ended June 30, 2024 compared to three months ended June 30, 2023
The following table presents income from continuing operations of our Electronic Instruments segment for the periods indicated:
(in thousands)
| Revenues: | Three Months Ended June 30, 2024 | 2023 | $ Change | % Change |
|---|---|---|---|---|
| Net sales | $531 | $403 | $128 | 31.8% |
| Total revenues | 531 | 403 | 128 | 31.8% |
| Expenses: | ||||
| Manufacturing cost of sales | 214 | 208 | 6 | 2.9% |
| Engineering, selling and administrative | 243 | 173 | 70 | 40.5% |
| Total expenses | 457 | 381 | 76 | 19.9% |
| Income from continuing operations before income taxes | $74 | $22 | $52 | 236.4% |
Income from Continuing Operations Before Income Taxes
Income from continuing operations before income taxes increased $52, or 236.4%, from $22 for the three months ended June 30, 2023 to $74 for the three months ended June 30, 2024. The increase was primarily due to a $128, or 31.8%, increase in Net sales reflecting higher product shipments during Q2 2024 and higher backlog as of March 31, 2024 partially offset by a $70, or 40.5%, increase in Engineering, selling and administrative driven by higher wages and benefits.
Six months ended June 30, 2024 compared to six months ended June 30, 2023
The following table presents income from continuing operations of our Electronic Instruments segment for the periods indicated:
(in thousands)
| Revenues: | Six Months Ended June 30, 2024 | 2023 | $ Change | % Change |
|---|---|---|---|---|
| Net sales | $923 | $844 | $79 | 9.4% |
| Total revenues | 923 | 844 | 79 | 9.4% |
| Expenses: | ||||
| Manufacturing cost of sales | 418 | 400 | 18 | 4.5% |
| Engineering, selling and administrative | 429 | 350 | 79 | 22.6% |
| Total expenses | 847 | 750 | 97 | 12.9% |
| Income from continuing operations before income taxes | $76 | $94 | $(18) | -19.1% |
Income from Continuing Operations Before Income Taxes
Income from continuing operations before income taxes decreased $18, or 19.1%, from $94 for the six months ended June 30, 2023 to $76 for the six months ended June 30, 2024. The decrease was primarily due to:
- a $18, or 4.5%, increase in Manufacturing cost of sales driven by the growth in Net sales; and
- a $79, or 22.6%, increase in Engineering, selling and administrative driven by higher wages and benefits.
The decrease was partially offset by a $79, or 9.4%, increase in Net sales driven by operational efficiencies and higher product shipments.
Merchant Investment
Three months ended June 30, 2024 compared to three months ended June 30, 2023
The following table presents income from continuing operations of our Merchant Investment segment for the periods indicated:
(in thousands)
| Revenues: | Three Months Ended June 30, 2024 | 2023 | $ Change | % Change |
|---|---|---|---|---|
| Net investment income | $315 | $— | $315 | n/m |
| Total revenues | 315 | — | 315 | n/m |
| Expenses: | ||||
| Engineering, selling and administrative | 78 | — | 78 | n/m |
| Total expenses | 78 | — | 78 | n/m |
| Income from continuing operations before income taxes | $237 | $— | $237 | n/m |
Income from Continuing Operations Before Income Taxes
Income from continuing operations before income taxes increased $237 from $0 for the three months ended June 30, 2023 to $237 for the three months ended June 30, 2024 due to the commencement of operations of Lynch Capital International, LLC in June 2023.
Six months ended June 30, 2024 compared to six months ended June 30, 2023
The following table presents income from continuing operations of our Merchant Investment segment for the periods indicated:
(in thousands)
| Revenues: | Six Months Ended June 30, 2024 | 2023 | $ Change | % Change |
|---|---|---|---|---|
| Net investment income | $604 | $— | $604 | n/m |
| Total revenues | 604 | — | 604 | n/m |
| Expenses: | ||||
| Engineering, selling and administrative | 127 | — | 127 | n/m |
| Total expenses | 127 | — | 127 | n/m |
| Income from continuing operations before income taxes | $477 | $— | $477 | n/m |
Income from Continuing Operations Before Income Taxes
Income from continuing operations before income taxes increased $477 from $0 for the six months ended June 30, 2023 to $477 for the six months ended June 30, 2024 due to the commencement of operations of Lynch Capital International, LLC in June 2023.
Corporate
Three months ended June 30, 2024 compared to three months ended June 30, 2023
The following table presents income from continuing operations of our Corporate segment for the periods indicated:
(in thousands)
| Revenues: | Three Months Ended June 30, 2024 | 2023 | $ Change | % Change |
|---|---|---|---|---|
| Net investment income | $223 | $275 | $(52) | -18.9% |
| Net (losses) gains | (1) | 43 | (44) | -102.3% |
| Total revenues | 222 | 318 | (96) | -30.2% |
| Expenses: | ||||
| Engineering, selling and administrative | 296 | 472 | (176) | -37.3% |
| Total expenses | 296 | 472 | (176) | -37.3% |
| Loss from continuing operations before income taxes | $(74) | $(154) | $80 | -51.9% |
Loss from Continuing Operations Before Income Taxes
Loss from continuing operations before income taxes decreased $80, or 51.9%, from $154 for the three months ended June 30, 2023 to $74 for the three months ended June 30, 2024. The decrease was primarily due to a $176, or 37.3%, decrease in Engineering, selling and administrative related to lower accounting and other professional service fees as well as other administrative and corporate expenses.
The decrease partially offset by:
- a $52, or 18.9%, decrease in Net investment income reflecting investments in higher yielding United States Treasury money market funds; and
- a $44, or 102.3%, decrease in Net (losses) gains driven by lower mark-to-market movements of Marketable securities and no sales of Marketable securities during the three months ended June 30, 2024.
Six months ended June 30, 2024 compared to six months ended June 30, 2023
The following table presents income from continuing operations of our Corporate segment for the periods indicated:
(in thousands)
| Revenues: | Six Months Ended June 30, 2024 | 2023 | $ Change | % Change |
|---|---|---|---|---|
| Net investment income | $433 | $473 | $(40) | -8.5% |
| Net (losses) gains | (4) | 388 | (392) | -101.0% |
| Total revenues | 429 | 861 | (432) | -50.2% |
| Expenses: | ||||
| Engineering, selling and administrative | 666 | 837 | (171) | -20.4% |
| Total expenses | 666 | 837 | (171) | -20.4% |
| (Loss) income from continuing operations before income taxes | $(237) | $24 | $(261) | -1087.5% |
(Loss) income from Continuing Operations Before Income Taxes
(Loss) income from continuing operations before income taxes decreased $261, or 1087.5%, from $24 for the six months ended June 30, 2023 to ($237) for the six months ended June 30, 2024. The decrease was primarily due to a $392, or 101.0%, decrease in Net (losses) gains as there were lower mark-to-market movements and sales of Marketable securities during the six months ended June 30, 2024.
The decrease was partially offset by a $171, or 20.4%, decrease in Engineering, selling and administrative reflecting lower accounting and other professional service fees as well as other administrative and corporate expenses.
Liquidity and Capital Resources
Overview
Liquidity refers to our ability to access sufficient sources of cash to meet the requirements of our operating, investing and financing activities.
Capital refers to our long-term financial resources available to support business operations and future growth.
Our ability to generate and maintain sufficient liquidity and capital depends on the profitability of the businesses, timing of cash flows, general economic conditions and access to the capital markets and the other sources of liquidity and capital described herein.
As of June 30, 2024 and December 31, 2023, Cash and cash equivalents were $41,074 and $40,711, respectively.
Cash Flow Activity
The following table presents the cash flow activity for the periods indicated:
(in thousands)
| As of June 30, 2024 | 2023 | |
|---|---|---|
| Cash and cash equivalents, beginning of period | $40,711 | $21,507 |
| Cash provided by (used in) operating activities | 363 | (9) |
| Cash provided by investing activities | — | 18,816 |
| Net change in cash and cash equivalents | 363 | 18,807 |
| Cash and cash equivalents, end of period | $41,074 | $40,314 |
Operating Activities
Cash provided by operating activities was $363 for the six months ended June 30, 2024 compared to cash used in operating activities of $9 for the six months ended June 30, 2023, an increase of $372, primarily due to the following:
- Net gains (losses) decreased $392 from $388 for the six months ended June 30, 2023 to ($4) for the six months ended June 30, 2024 as there were lower mark-to-market movements on Marketable securities and no sales of Marketable securities during the six months ended June 30, 2024.
The increase was partially offset by:
- Net change in operating assets and liabilities decreased $218 from $327 for the six months ended June 30, 2023 to $109 for the six months ended June 30, 2024.
Our working capital metrics and ratios were as follows:
(in thousands)
| June 30, 2024 | December 31, 2023 | |
|---|---|---|
| Current assets | $42,003 | $41,566 |
| Less: Current liabilities | 621 | 474 |
| Working capital | $41,382 | $41,092 |
| Current ratio | 67.6 | 87.7 |
Management continues to focus on efficiently managing working capital requirements to match operating activity levels and will seek to deploy the Company’s working capital where it will generate the greatest returns.
Investing Activities
Cash provided by investing activities was $0 for the six months ended June 30, 2024 compared to cash provided by investing activities of $18,816 for the six months ended June 30, 2023, a decrease of $18,816, primarily due to sales of IronNet, Inc. during the six months ended June 30, 2023.
Capital Resources
We believe that existing cash and cash equivalents, marketable securities and cash generated from operations will provide sufficient liquidity to meet our ongoing working capital and capital expenditure requirements for the next 12 months from the date of this filing and for the foreseeable future.
Our Board has adhered to a practice of not paying cash dividends. This policy takes into account our long-term growth objectives, including our anticipated investments for organic growth, potential acquisitions and stockholders' desire for capital appreciation of their holdings. No cash dividends have been paid to the Company's stockholders since January 30, 1989, and none are expected to be paid for the foreseeable future.
Contractual Obligations
As of June 30, 2024, there have been no material changes in our contractual obligations from December 31, 2023, a description of which may be found in Part II, Item 7. Management Discussion and Analysis - Liquidity and Capital Resources - Contractual Obligations in the 2023 Annual Report.
Critical Accounting Estimates
Our accompanying Condensed Consolidated Financial Statements are prepared in conformity with U.S. GAAP, which requires management to make estimates and assumptions that affect the amounts reported in our financial statements and accompanying footnotes. These estimates are made and evaluated on an on-going basis using information that is currently available as well as various other assumptions believed to be reasonable under the circumstances. Actual results could differ from those estimates, perhaps in material adverse ways, and those estimates could be different under different assumptions or conditions. For a discussion of the Company’s critical accounting estimates, see Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2023.
Controls and procedures
As filed, 1,861 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports under the Securities Exchange Act of 1934, as amended (the "Exchange Act") is recorded, processed, summarized and reported within the time periods specified in the rules and forms, and that such information is accumulated and communicated to us, including our Principal Executive Officer and Principal Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
As required by Rules 13a-15(b) and 15d-15(b) of the Exchange Act, an evaluation as of June 30, 2024 was conducted under the supervision and with the participation of our management, including our Principal Executive Officer and Principal Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act). Based on this evaluation, our Principal Executive Officer and Principal Financial Officer concluded that our disclosure controls and procedures, as of June 30, 2024, were effective.
Changes in Internal Control Over Financial Reporting
There were no changes in the Company’s internal control over financial reporting during the quarter ended June 30, 2024 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
PART II
OTHER INFORMATION
Risk factors
As filed, 677 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
For a discussion of the Company's potential risks and uncertainties, refer to Part I, Item 1A. Risk Factors in the 2023 Annual Report and Trends and Uncertainties in Management's Discussion and Analysis of Financial Condition and Results of Operations in Part I, Item 2. of this Quarterly Report on Form 10-Q.
We are not aware of any material trends or uncertainties, other than national economic conditions affecting our industry generally, that may reasonably be expected to have a material impact, favorable or unfavorable, on our revenues or income other than those listed in Item 1A, Risk Factors, of our Annual Report on Form 10-K for the year ended December 31, 2023.
Figures reported in this filing
Standardized line items from the XBRL in this filing, for the period ended 2024-06-30. Comparative periods it repeats are left out.
| Line item | Period | Value | XBRL concept |
|---|---|---|---|
| Revenue | 3 months2024-04-01 to 2024-06-30 | $531.0k | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Revenue | 6 months2024-01-01 to 2024-06-30 | $923.0k | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Income tax | 3 months2024-04-01 to 2024-06-30 | $76.0k | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 6 months2024-01-01 to 2024-06-30 | $112.0k | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months2024-04-01 to 2024-06-30 | $137.0k | us-gaap:NetIncomeLoss |
| Net income | 6 months2024-01-01 to 2024-06-30 | $158.0k | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months2024-04-01 to 2024-06-30 | $0.02 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 6 months2024-01-01 to 2024-06-30 | $0.03 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months2024-04-01 to 2024-06-30 | $0.03 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 6 months2024-01-01 to 2024-06-30 | $0.03 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months2024-04-01 to 2024-06-30 | 5,482,543 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 6 months2024-01-01 to 2024-06-30 | 5,548,869 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 6 months2024-01-01 to 2024-06-30 | $363.0k | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Cash and equivalents | At period end2024-06-30 | $41.1m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | At period end2024-06-30 | $42.0m | us-gaap:AssetsCurrent |
| Total assets | At period end2024-06-30 | $42.2m | us-gaap:Assets |
| Current liabilities | At period end2024-06-30 | $621.0k | us-gaap:LiabilitiesCurrent |
| Total liabilities | At period end2024-06-30 | $1.3m | us-gaap:Liabilities |
| Shareholders' equity | At period end2024-06-30 | $38.9m | us-gaap:StockholdersEquity |
Source: SEC EDGAR, the filing index for accession 0001437749-24-026400. Last ingested by Listed: Oct 24, 2026, 14:53 ET. Listed shows no prices and gives no investment advice.