UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10 - Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934.
For the quarterly period ended June 30, 2004.
005-79915
(Commission File Number)
InfoSonics Corporation
(Exact name of registrant as specified in its charter)
|
Maryland |
|
33-0599368 |
|
(State or other jurisdiction of |
|
(IRS Employer Identification Number) |
5880 Pacific Center Blvd
San Diego, CA 92121
(Address of principal executive offices including zip code)
(858) 373-1600
(Registrant’s telephone number, including area code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act 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
As of August 12, 2004, the Registrant had 5,212,000 shares outstanding of its $.001 par value common stock.
InfoSonics Corporation
Quarterly Report on FORM 10-Q For The Period Ended
Table of Contents
2
InfoSonics Corporation and subsidiaries
|
|
|
June 30, |
|
December 31, |
|
||
|
|
|
(unaudited) |
|
(as restated *) |
|
||
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Current assets |
|
|
|
|
|
||
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Cash and cash equivalents |
|
$ |
9,513,961 |
|
$ |
446,033 |
|
|
Trade accounts receivable, net of allowance for doubtful accounts of $255,895 (unaudited), and $359,990 and charge-backs of $388,962 (unaudited) and $549,006 |
|
6,793,386 |
|
9,371,490 |
|
||
|
Inventory, net of reserves of $112,467 (unaudited), and $78,480 |
|
2,840,279 |
|
1,694,420 |
|
||
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Prepaid expenses |
|
1,710,790 |
|
202,363 |
|
||
|
Deferred tax assets |
|
515,650 |
|
515,650 |
|
||
|
|
|
|
|
|
|
||
|
Total current assets |
|
21,374,066 |
|
12,229,956 |
|
||
|
|
|
|
|
|
|
||
|
Property and equipment, net |
|
237,645 |
|
90,579 |
|
||
|
Goodwill |
|
181,994 |
|
181,994 |
|
||
|
Deferred offering costs |
|
— |
|
162,913 |
|
||
|
Other assets |
|
86,272 |
|
32,775 |
|
||
|
|
|
|
|
|
|
||
|
Total assets |
|
$ |
21,879,977 |
|
$ |
12,698,217 |
|
* Refer to Note 3, Restatement of Consolidated Financial Statements.
See accompanying notes.
3
InfoSonics Corporation and Subsidiaries
Consolidated Balance Sheets
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
June 30, |
|
December 31, |
|
||
|
|
|
(unaudited) |
|
(as restated *) |
|
||
|
Current liabilities |
|
|
|
|
|
||
|
Line of credit |
|
$ |
3,644,617 |
|
$ |
5,536,432 |
|
|
Book Overdraft |
|
— |
|
867,555 |
|
||
|
Accounts payable |
|
4,601,202 |
|
2,671,359 |
|
||
|
Accrued expenses |
|
336,861 |
|
264,747 |
|
||
|
Income taxes payable |
|
440,832 |
|
930,610 |
|
||
|
Current portion of notes payable – related parties |
|
30,000 |
|
30,000 |
|
||
|
|
|
|
|
|
|
||
|
Total current liabilities |
|
9,053,512 |
|
10,300,703 |
|
||
|
|
|
|
|
|
|
||
|
Total liabilities |
|
9,053,512 |
|
10,300,703 |
|
||
|
|
|
|
|
|
|
||
|
Stockholders’ equity |
|
|
|
|
|
||
|
Preferred stock, $0.001 par value |
|
— |
|
— |
|
||
|
Common stock, $0.001 par value 40,000,000 shares |
|
5,212 |
|
3,200 |
|
||
|
Additional paid-in capital |
|
10,529,652 |
|
528,263 |
|
||
|
Retained earnings |
|
2,291,601 |
|
1,866,051 |
|
||
|
|
|
|
|
|
|
||
|
Total stockholders’ equity |
|
12,826,465 |
|
2,397,514 |
|
||
|
|
|
|
|
|
|
||
|
Total liabilities and stockholders’ equity |
|
$ |
21,879,977 |
|
$ |
12,698,217 |
|
* Refer to Note 3, Restatement of Consolidated Financial Statements.
See accompanying notes.
4
InfoSonics Corporation and Subsidiaries
Consolidated Statements of Income
|
|
|
For the Three Months Ended |
|
For the Six Months Ended |
|
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|
|
|
2004 |
|
2003 |
|
2004 |
|
2003 |
|
||||
|
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net sales |
|
$ |
18,413,700 |
|
$ |
10,459,063 |
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