Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.24.4
Consolidated Statements of Cash Flows - USD ($)
 3 Months Ended 6 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2023
Sep. 30, 2022
Sep. 30, 2021
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Mar. 31, 2024
Mar. 31, 2023
Mar. 31, 2022
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2022
Cash flows from operating activities:                        
Net loss $ (2,188,000) [1],[2] $ (2,260,000) [1],[3] $ (4,363,000) [1],[3] $ (3,084,000) [1],[2],[3],[4] $ (4,056,000) [1],[3] $ (9,742,000) [1],[3] $ (6,089,000) [1],[2],[3],[4] $ (5,543,000) [1],[3] $ (13,635,000) [1],[3] $ (8,333,000) $ (7,743,000) [5],[6],[7] $ (16,473,000) [5],[6]
Adjustments to reconcile net loss to net cash used in operating activities:                        
Depreciation 261,000 172,000 123,000 523,000 371,000 259,000 787,000 647,000 412,000 1,045,000 899,000 575,000
Stock-based compensation 276,000 95,000 200,000 670,000 304,000 449,000 1,233,000 539,000 601,000 1,571,000 798,000 711,000
Amortization of debt issuance costs 81,000 229,000   134,000 368,000   161,000 445,000   230,000 482,000
Non-cash lease expense 146,000 117,000 106,000 296,000 236,000 214,000 448,000 370,000 324,000 606,000 512,000 438,000
Inventory write downs 113,000 [1] 43,000 [1] 110,000 [1] 233,000 [1] 88,000 [1] 351,000 [1] 358,000 [1] 191,000 [1] 482,000 [1] 490,000 690,000 [5] 665,000 [5]
Changes in operating assets and liabilities:                        
Accounts receivable (2,040,000) [2] (2,987,000) 1,586,000 (3,926,000) [2] (1,898,000) [2] 913,000 (1,668,000) [2] (1,272,000) [2] (3,411,000) (973,000) (191,000) [7] (2,512,000)
Inventories (546,000) [1] (2,538,000) [1],[3] (3,210,000) [1],[3] 371,000 [1],[3] (3,097,000) [1],[3] (8,886,000) [1],[3] (1,562,000) [1],[3] (4,610,000) [1],[3] (10,224,000) [1],[3] (1,309,000) (2,408,000) [5],[6] (5,550,000) [5],[6]
Other assets (215,000) (229,000) (567,000) (65,000) (17,000) (408,000) 11,000 11,000 (118,000) (163,000) (170,000) (549,000)
Accounts payable 330,000 6,860,000 2,123,000 489,000 [2],[3],[4] 6,192,000 [2] 2,064,000 1,522,000 [2],[3],[4] 4,210,000 [2] 6,186,000 1,523,000 3,227,000 [6],[7] (530,000)
Accrued expenses 601,000 9,000 (675,000) 169,000 [4] 89,000 (350,000) 719,000 [4] 395,000 (441,000) 745,000 972,000 (374,000)
Accrued interest 100,000 1,000 1,000 128,000 1,000 134,000 2,000 124,000 (32,000) 139,000
Office leases payable (152,000) (120,000) (104,000) (312,000) (244,000) (211,000) (476,000) (379,000) (322,000) (644,000) 1,000 (1,000)
Deferred revenue 205,000 184,000 103,000 179,000 (82,000) 116,000 212,000 (163,000) 289,000 354,000 (518,000) (436,000)
Customer deposits (65,000) (165,000) 151,000 150,000 (146,000) (171,000) (64,000) (40,000) 519,000 (64,000) (93,000) 4,000
Net cash used in operating activities (3,093,000) (589,000) (4,416,000) (4,045,000) (1,892,000) (15,401,000) (4,274,000) (5,197,000) (19,338,000) (4,798,000) (3,574,000) (23,893,000)
Cash flows from investing activities:                        
Purchases of equipment (181,000) (352,000) (238,000) (338,000) (344,000) (530,000) (588,000) (753,000) (644,000) (853,000) (1,032,000) (797,000)
Proceeds from sale of fixed assets       8,000     8,000   8,000
Net cash used in investing activities (181,000) (352,000) (238,000) (338,000) (336,000) (530,000) (588,000) (745,000) (644,000) (853,000) (1,024,000) (797,000)
Cash flows from financing activities:                        
Proceeds from the issuance of common stock in registered direct offering, net of offering costs     14,076,000     13,971,000     13,971,000 13,971,000
Proceeds from the issuance of common stock in public offering, net of offering costs   1,602,000   1,602,000   697,000 1,602,000 1,556,000 1,602,000
Proceeds from stock option exercises and employee stock purchase plan exercises         110,000     141,000
Proceeds from revolving line of credit 18,055,000 12,900,000 35,868,000 30,550,000 3,500,000 52,820,000 48,800,000 3,500,000 67,209,000 63,400,000 8,450,000
Payment of revolving line of credit (15,981,000) (12,138,000)   (32,205,000) (28,628,000)   (49,087,000) (43,198,000)   (63,287,000) (58,377,000) (3,561,000)
Payment of finance leases (40,000)   (75,000) (22,000)   (110,000) (52,000)   (148,000) (87,000)
Net cash provided by financing activities 2,034,000 762,000 15,678,000 3,588,000 1,900,000 19,073,000 3,733,000 6,247,000 19,073,000 3,915,000 6,492,000 20,462,000
Net change in cash (1,240,000) (179,000) 11,024,000 (795,000) (328,000) 3,142,000 (1,129,000) 305,000 (909,000) (1,736,000) 1,894,000 (4,228,000)
Cash, beginning of period 2,379,000 485,000 4,713,000 2,379,000 485,000 4,713,000 2,379,000 485,000 4,713,000 2,379,000 485,000 4,713,000
Cash, end of period 1,139,000 306,000 15,737,000 1,584,000 157,000 7,855,000 1,250,000 790,000 3,804,000 643,000 2,379,000 485,000
Supplemental Disclosures of Non-Cash Investing and Financing Activities:                        
Initial right of use asset recognition   78,000     258,000     855,000   855,000
Common stock issued for vested RSUs 5,000 183,000 114,000 222,000 114,000 9,700 538,000 417,000 21,000
Warrants issued in connection with borrowing agreements, recorded as debt issuance cost     92,000     92,000     92,000 253,000
Supplemental cash flow information:                        
Interest paid $ 223,000 $ 99,000 $ 2,000 $ 605,000 $ 288,000 $ 33,000 $ 1,000,000 $ 524,000 $ 86,000 $ 1,409,000 $ 1,127,000 $ 151,000
[1] Inventories. The Company did not properly evaluate its calculation of its excess and obsolescence reserve on its finished goods and raw materials inventories, resulting in an overstatement of inventories and an understatement of cost of sales. In addition, certain inventory components were not properly recorded at the lower of cost or net realizable value, resulting in an overstatement of inventory and an understatement of cost of sales. Further, certain loaner service packs and consigned inventory were not reconciled timely, resulting in an overstatement of inventory and an understatement of cost of sales. Lastly, the Company also corrected the cash flow presentation related to inventory write downs on the statement of cash flows.
[2] Revenue recognition. The Company improperly recognized revenue during the three months ended September 30, 2023 related to performance obligations satisfied during three months ended June 30, 2023, resulting in an understatement of revenue in the three months ended June 30, 2023 and an overstatement of revenue in the three months ended September 30, 2023.
[3] Other. The Company had various clearing accounts that were not reconciled timely, resulting in an understatement of accounts payable, overstatement of inventories, and understatement of cost of sales.
[4] Product warranty liability. The Company did not include certain product warranty-related expenses within the proper period in its calculation of its product warranty reserve estimate, resulting in an understatement of accrued expenses and an understatement of cost of sales.
[5] Inventories. The Company did not properly evaluate its calculation of its excess and obsolescence reserve on its finished goods and raw materials inventories, resulting in an overstatement of inventories and an understatement of cost of sales. In addition, certain inventory components were not properly recorded at the lower of cost or net realizable value, resulting in an overstatement of inventory and an understatement of cost of sales. Further, certain loaner service packs and consigned inventory were not reconciled timely, resulting in an overstatement of inventory and an understatement of cost of sales. Lastly, the Company also corrected the cash flow presentation related to inventory write downs on the statement of cash flows.
[6] Other. The Company had various clearing accounts that were not reconciled in a timely manner, resulting in misstatements of accounts payable, inventories and cost of sales.
[7] Revenue. The Company did not properly recognize revenue in the periods which the related performance obligations were satisfied for a certain contract with a customer. Additionally, the Company improperly recorded accounts receivable from the same contract with a customer as a reduction to its accounts payable owed to the customer prior to the right of offset conditions under ASC 210-20 being met. As a result, revenues, accounts receivable, and accounts payable were misstated.