Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
A |
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(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered | ||
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer |
☐ | Smaller reporting company | ||||
Emerging growth company |
May 31, 2021 |
February 28, 2021 |
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(unaudited) |
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Assets |
||||||||
Current assets |
||||||||
Cash and cash equivalents |
$ |
$ | ||||||
Accounts receivable, less allowance for doubtful accounts of $ |
||||||||
Inventories, net |
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Contract assets |
||||||||
Prepaid expenses and other current assets |
||||||||
Total current assets |
||||||||
Property, plant, and equipment |
||||||||
Buildings |
||||||||
Construction in progress |
— |
|||||||
Machinery and equipment |
||||||||
Accumulated depreciation |
( |
) |
( |
) | ||||
Net property, plant, and equipment |
||||||||
Right of use assets under operating leases |
||||||||
Intangible assets, net |
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Other noncurrent assets |
||||||||
Total assets |
$ |
$ | ||||||
May 31, 2021 |
February 28, 2021 |
|||||||
(unaudited) |
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Liabilities and Shareholders’ Equity |
||||||||
Current liabilities |
||||||||
Accounts payable |
$ |
$ | ||||||
Accrued liabilities |
||||||||
Customer deposits |
||||||||
Note payable |
||||||||
Current maturities of financing lease obligations |
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Current operating lease liabilities |
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Total current liabilities |
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PPP related loans, noncurrent |
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Finance lease obligations less current maturities |
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Long-term operating lease liabilities |
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Total liabilities |
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Shareholders’ Equity |
||||||||
Preferred stock, |
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Common stock, |
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Additional paid-in capital |
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Retained earnings |
||||||||
Treasury stock, shares at cost; |
( |
) |
( |
) | ||||
Total shareholders’ equity |
||||||||
Total liabilities and shareholders’ equity |
$ |
$ | ||||||
Three Months Ended May 31, |
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2021 |
2020 |
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Net sales |
$ |
$ |
||||||
Cost of goods sold |
||||||||
Gross profit |
||||||||
Operating expenses |
||||||||
Selling and delivery |
||||||||
General and administrative |
||||||||
Operating loss |
( |
) |
( |
) | ||||
Other income (expense) |
||||||||
Interest (expense) income, net |
( |
) |
( |
) | ||||
Investment (loss) gains, net |
— |
( |
) | |||||
Other, net |
||||||||
Loss before income taxes |
( |
) |
( |
) | ||||
Income tax expense |
||||||||
Net loss |
$ |
( |
) |
$ |
( |
) | ||
Net loss per share: |
||||||||
Net loss per share-basic |
$ |
( |
) |
$ |
( |
) | ||
Net loss per share-diluted |
$ |
( |
) |
$ |
( |
) | ||
Basic weighted average shares outstanding |
||||||||
Diluted weighted average shares outstanding |
||||||||
Common Shares* |
Share Amount |
Additional Paid-in Capital |
Retained Earnings |
Treasury Stock |
Total Shareholders’ Equity |
|||||||||||||||||||
Balance, February 28, 2021 |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
Net loss |
— |
— |
— |
( |
) |
— |
( |
) | ||||||||||||||||
Balance, May 31, 2021 (unaudited) |
$ |
$ |
$ |
$ |
( |
) |
$ |
|||||||||||||||||
Common Shares* |
Share Amount |
Additional Paid-in Capital |
Retained Earnings |
Treasury Stock |
Total Shareholders’ Equity |
|||||||||||||||||||
Balance, February 29, 2020 |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
Net loss |
— | — | — | ( |
) | — | ( |
) | ||||||||||||||||
Balance, May 31, 2020 (unaudited) |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
* | Common Shares are shown net of Treasury Shares |
Three Months Ended May 31, |
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2021 |
2020 |
|||||||
Operating Activities |
||||||||
Net loss |
$ |
( |
) |
$ | ( |
) | ||
Adjustments to reconcile net loss to net |
||||||||
cash provided by (used in) operating activities: |
||||||||
Depreciation expense |
||||||||
Amortization of intangible assets |
||||||||
Provision for doubtful accounts |
( |
) |
( |
) | ||||
Provision for inventory reserve |
||||||||
Realized/unrealized loss on investments |
— |
|||||||
Other |
||||||||
Changes in working capital items: |
||||||||
Accounts receivable |
||||||||
Inventories |
||||||||
Prepaid expenses and other assets |
( |
) |
( |
) | ||||
Contract assets |
( |
) | ||||||
Customer deposits |
( |
) |
( |
) | ||||
Accounts payable and accrued liabilities |
( |
) |
( |
) | ||||
Net cash provided by (used in) operating activities |
( |
) | ||||||
Investing Activities |
||||||||
Capital expenditures |
( |
) |
( |
) | ||||
Purchases of investments |
— |
( |
) | |||||
Proceeds from sale of investments |
— |
|||||||
Net cash used in investing activities |
( |
) |
( |
) | ||||
Financing Activities |
||||||||
Repayments of notes payable to officers and directors |
— |
( |
) | |||||
Repayments of long-term debt |
( |
) |
— | |||||
Repayments on lease financing |
( |
) |
— | |||||
Proceeds from PPP related loans |
— |
|||||||
Marginal float borrowings |
— |
|||||||
Net cash (used in) provided by financing activities |
( |
) |
||||||
Net change in cash and cash equivalents |
||||||||
Cash and cash equivalents, beginning of year |
||||||||
Cash and cash equivalents, end of period |
$ |
$ | ||||||
May 31, 2021 |
February 28, 2021 |
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Working capital |
$ |
$ | ||||||
Liquid assets |
$ |
$ |
May 31, 2021 |
February 28, 2021 |
|||||||
Raw materials |
$ |
$ |
||||||
Work-in-process |
||||||||
Finished goods |
||||||||
Reserves for obsolescence |
( |
) |
( |
) | ||||
$ |
$ |
|||||||
May 31, 2021 |
||||
Assets |
|
|
| |
|
|
|||
Operating lease right-of-use |
$ | |||
|
|
|||
Liabilities |
|
|
| |
|
|
|||
Current portion of operating lease liabilities |
$ | |||
Noncurrent portion of operating lease liabilities |
||||
|
|
|||
Total operating lease liabilities |
$ | |||
|
|
May 31, 2021 |
||||
Weighted average remaining lease term |
||||
Weighted average discount rate |
% | |||
|
|
FY2022 |
$ | |||
FY2023 |
||||
FY2024 |
||||
FY2025 |
||||
|
|
|||
Total operating lease payments |
||||
Less imputed interest |
( |
) | ||
|
|
|||
Total operating lease liabilities |
$ | |||
|
|
FY2022 |
$ | |||
FY2023 |
||||
|
|
|||
Total |
$ | |||
|
|
May 31, 2021 |
||||
Financing lease right-of-use |
$ | |||
|
|
|||
Current portion of financing lease liabilities |
$ | |||
Noncurrent portion of financing lease liabilities |
||||
|
|
|||
Total financing lease liabilities |
$ | |||
|
|
Fiscal Year |
Amount |
|||
2022 |
$ | |||
2023 |
||||
2024 |
||||
Total finance lease payments |
$ | |
||
Less imputed interest |
( |
) | ||
Total finance lease liabilities |
$ | |||
Three Months Ended May 31, |
||||||||
2021 |
2020 |
|||||||
Cash paid for: |
||||||||
Interest |
$ | $ | — | |||||
Non-cash activity: |
||||||||
Note receivable paid directly to officer |
$ | — | $ | |||||
Note payable to officer |
$ | — | $ | |||||
Imputed interest expense |
$ | — | $ | |||||
Imputed interest income |
$ | — | $ | |||||
Net Loss |
Weighted Average Common Shares Outstanding |
Loss Per Share |
||||||||||
Three months ended May 31, 2021 |
||||||||||||
Basic |
$ | ( |
) | $ | ( |
) | ||||||
Effect of dilution: |
||||||||||||
Options |
||||||||||||
Diluted |
$ | ( |
) | $ | ( |
) | ||||||
Three months ended May 31, 2020 |
||||||||||||
Basic |
$ | ( |
) | $ | ( |
) | ||||||
Effect of dilution: |
||||||||||||
Options |
||||||||||||
Diluted |
$ | ( |
) | $ | ( |
) | ||||||
• | Simulation and Training Products |
• | Cyber Secure Products – |
• | Data Display CRTs– |
• | Other Computer Products – |
May 31, 2021 |
February 28, 2021 |
|||||||
Working capital |
$ |
2,942 |
$ | 3,601 | ||||
Liquid assets |
$ |
842 |
$ | 293 |
Three Months Ended May 31 |
||||||||||||||||
2021 |
2020 |
|||||||||||||||
Net Sales |
Amount |
% |
Amount |
% |
||||||||||||
Simulation and Training (VDC Display Systems) |
1,011 |
54.4 |
% |
1,801 |
48.6 |
% | ||||||||||
Data Display CRT (Lexel and Data Display) |
232 |
12.5 |
762 |
20.6 |
||||||||||||
Cyber Secure Products (AYON Cyber Security) |
204 |
11.0 |
865 |
23.3 |
||||||||||||
Other Computer Products (Unicomp) |
410 |
22.1 |
277 |
7.5 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total net sales |
1,857 |
100.0 |
% |
3,705 |
100.0 |
% | ||||||||||
Costs and expenses |
||||||||||||||||
Cost of goods sold |
1,490 |
80.2 |
% |
2,727 |
73.6 |
% | ||||||||||
Selling and delivery |
158 |
8.5 |
206 |
5.6 |
||||||||||||
General and administrative |
993 |
53.5 |
997 |
26.9 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
2,641 |
142.2 |
% |
3,930 |
106.1 |
% |
Operating loss |
(784 |
) |
(42.2 |
)% |
(225 |
) |
(6.1 |
)% | ||||||||
Interest (expense) income, net |
(10 |
) |
(0.5 |
)% |
(15 |
) |
(0.4 |
)% | ||||||||
Investment (loss) gains, net |
— |
— |
(10 |
) |
(0.3 |
) | ||||||||||
Other income, net |
49 |
2.6 |
242 |
6.6 |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Loss before income taxes |
(745 |
) |
(40.1 |
)% |
(8 |
) |
(0.2 |
)% | ||||||||
Income tax expense |
— |
— |
— |
— |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net loss |
(745 |
) |
(40.1 |
)% |
(8 |
) |
(0.2 |
)% | ||||||||
|
|
|
|
|
|
|
|
May 31, 2021 |
February 28, 2021 |
|||||||
Working capital |
$ |
2,942 |
$ | 3,601 | ||||
Liquid assets |
$ |
842 |
$ | 293 |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Item 3. | Defaults upon Senior Securities |
Item 4. | Submission of Matters to a Vote of Security Holders |
Item 5. | Other information |
Item 6. | Exhibits |
VIDEO DISPLAY CORPORATION | ||||||
July 12, 2021 |
By: | /s/ Ronald D. Ordway | ||||
Ronald D. Ordway | ||||||
Chief Executive Officer | ||||||
July 12, 2021 |
By: | /s/ Gregory L. Osborn | ||||
Gregory L. Osborn | ||||||
Chief Financial Officer |