UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
|
(Mark One) |
||||
|
ý |
|
QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15 (d) OF THE |
||
|
|
||||
|
For the quarterly period ended November 30, 2003 |
||||
|
|
||||
|
o |
|
TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15 (d) OF THE |
||
|
|
||||
|
For the transition period from to |
||||
|
|
||||
|
Commission file number 0-14843 |
||||
|
|
||||
|
DPAC TECHNOLOGIES CORP. |
||||
|
(Exact Name of Registrant as Specified in Its Charter) |
||||
|
|
|
|
||
|
CALIFORNIA |
|
33-0033759 |
||
|
(State or other Jurisdiction of |
|
(IRS Employer |
||
|
|
|
|
||
|
7321 LINCOLN WAY |
||||
|
GARDEN GROVE, CALIFORNIA 92841 |
||||
|
(Address of Principal Executive Offices) (Zip) |
||||
|
|
|
|
||
|
(714) 898-0007 |
||||
|
(Registrant’s Telephone Number, Including Area Code) |
||||
|
|
|
|
||
|
Not Applicable |
||||
|
(Former Name, Former Address and Former Fiscal Year |
||||
Indicate by Check Mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
|
YES ý |
|
NO o |
Indicate by Check Mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act.)
|
YES o |
|
NO ý |
APPLICABLE ONLY TO CORPORATE ISSUERS:
The number of shares of common stock, no par value, outstanding as of November 30, 2003 was 21,177,289.
PART I - FINANCIAL INFORMATION
ITEM 1. Financial Statements
DPAC Technologies Corp.
Condensed Balance Sheets
(Unaudited)
|
|
|
November 30, |
|
February 28, |
|
||
|
|
|
|
|
|
|
||
|
ASSETS |
|
|
|
|
|
||
|
CURRENT ASSETS: |
|
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
5,669,411 |
|
$ |
8,197,144 |
|
|
Accounts receivable, net |
|
1,331,554 |
|
2,599,732 |
|
||
|
Inventories, net |
|
816,035 |
|
980,592 |
|
||
|
Prepaid expenses and other current assets |
|
396,667 |
|
569,331 |
|
||
|
Deferred income taxes |
|
— |
|
209,776 |
|
||
|
Total current assets |
|
8,213,667 |
|
12,556,575 |
|
||
|
|
|
|
|
|
|
||
|
PROPERTY, net |
|
3,294,941 |
|
3,863,118 |
|
||
|
DEFERRED INCOME TAXES |
|
— |
|
4,554,208 |
|
||
|
GOODWILL |
|
4,528,721 |
|
4,528,721 |
|
||
|
OTHER ASSETS |
|
581,250 |
|
250,183 |
|
||
|
|
|
|
|
|
|
||
|
TOTAL |
|
$ |
16,618,579 |
|
$ |
25,752,805 |
|
|
|
|
|
|
|
|
||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
||
|
CURRENT LIABILITIES: |
|
|
|
|
|
||
|
Current portion of capital lease obligations |
|
$ |
175,422 |
|
$ |
286,236 |
|
|
Accounts payable |
|
1,169,815 |
|
1,043,913 |
|
||
|
Accrued compensation |
|
374,049 |
|
492,630 |
|
||
|
Other accrued liabilities |
|
383,316 |
|
433,781 |
|
||
|
Total current liabilities |
|
2,102,602 |
|
2,256,560 |
|
||
|
|
|
|
|
|
|
||
|
CAPITAL LEASE OBLIGATIONS, less current portion |
|
295,004 |
|
98,829 |
|
||
|
|
|
|
|
|
|
||
|
COMMITMENTS AND CONTINGENCIES (Note 9) |
|
|
|
|
|
||
|
|
|
|
|
|
|
||
|
STOCKHOLDERS’ EQUITY: |
|
|
|
|
|
||
|
Common stock |
|
25,194,678 |
|
24,929,987 |
|
||
|
Additional paid-in capital |
|
2,701,701 |
|
2,701,701 |
|
||
|
Accumulated deficit |
|
(13,675,406 |
) |
(4,234,272 |
) |
||
|
Net stockholders’ equity |
|
14,220,973 |
|
23,397,416 |
|
||
|
|
|
|
|
|
|
||
|
TOTAL |
|
$ |
16,618,579 |
|
$ |
25,752,805 |
|
See accompanying notes to condensed financial statements.
2
DPAC Technologies Corp.
Condensed Statements of Operations
( Unaudited )
|
|
|
For the quarter ended: |
|
For the nine months ended: |
|
||||||||
|
|
|
November 30, |
|
November 30, |
|
November 30, |
|
November 30, |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
NET SALES |
|
$ |
4,363,459 |
|
$ |
5,420,672 |
|
$ |
13,926,554 |
|
$ |
28,240,412 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
COST OF SALES |
|
4,502,896 |
|
3,963,255 |
|
12,503,754 |
|
21,038,640 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
GROSS PROFIT (LOSS) |
|
(139,437 |
) |
1,457,417 |
|
1,422,800 |
|
7,201,772 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
COSTS AND EXPENSES: |
|
|
|
|
|
|
|
|
|
||||
|
Selling, general and administrative |
|
1,285,612 |
|
1,350,370 |
|
3,850,236 |
|
4,603,073 |
|
||||
|
Research and development |
|
743,990 |
|
464,631 |
|
2,269,429 |
|
1,368,815 |
|
||||
|
Reversal of reserve for litigation |
|
(750,000 |
) |
— |
|
— |
|
— |
|
||||
|
Total costs and expenses |
|
1,279,602 |
|
1,815,001 |
|
6,119,665 |
|
5,971,888 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
INCOME (LOSS) FROM OPERATIONS |
|
(1,419,039 |
) |
(357,584 |
) |
(4,696,865 |
) |
1,229,884 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
|
||||
|
Interest income |
|
15,853 |
|
25,996 |
|
46,346 |
|
94,750 |
|
||||
|
Interest expense |
|
(10,136 |
) |
(17,854 |
) |
(26,631 |
) |
(61,546 |
) |
||||
|
Total other income |
|
5,717 |
|
8,142 |
|
19,715 |
|
33,204 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
INCOME (LOSS) BEFORE INCOME TAXES |
|
(1,413,322 |
) |
(349,442 |
) |
(4,677,150 |
) |
1,263,088 |
|
||||
|
|
|
||||||||||||