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 September 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 incorporation) |
|
(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 November 15, 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 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
Consolidated Balance Sheets as of September 30, 2004 (unaudited) and December 31, 2003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
Exhibit 31.1 |
|
|
|
|
|
|
|
Exhibit 32.1 |
|
|
2
InfoSonics Corporation and subsidiaries
|
ASSETS |
|
||||||||
|
|
|
|
|
|
|
||||
|
|
|
September 30, |
|
December 31, |
|
||||
|
|
|
2004 |
|
2003 |
|
||||
|
|
|
(unaudited) |
|
|
|
||||
|
Current assets |
|
|
|
|
|
||||
|
Cash and cash equivalents |
|
$ |
6,477,766 |
|
$ |
2,570 |
|
||
|
Trade accounts receivable, net of allowance for doubtful accounts of $258,011 (unaudited) and $359,990 |
|
6,333,053 |
|
8,633,284 |
|
||||
|
Inventory, net of reserves of $168,539 (unaudited), and $76,820 |
|
5,002,281 |
|
1,575,999 |
|
||||
|
Prepaid expenses |
|
1,547,363 |
|
188,513 |
|
||||
|
Net assets of discontinued operations |
|
545,778 |
|
1,559,207 |
|
||||
|
Deferred tax assets |
|
365,650 |
|
515,650 |
|
||||
|
|
|
|
|
|
|
||||
|
Total current assets |
|
20,271,891 |
|
12,475,223 |
|
||||
|
|
|
|
|
|
|
||||
|
Property and equipment, net |
|
176,282 |
|
37,312 |
|
||||
|
Deferred offering costs |
|
— |
|
162,913 |
|
||||
|
Other assets |
|
71,609 |
|
22,767 |
|
||||
|
|
|
|
|
|
|
||||
|
Total assets |
|
$ |
20,519,782 |
|
$ |
12,698,215 |
|
||
|
|
|
|
|
|
|
||||
See accompanying notes.
3
InfoSonics Corporation and Subsidiaries
Consolidated Balance Sheets
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
||||||||
|
|
|
|
|
|
|
||||
|
|
|
September 30, |
|
December 31, |
|
||||
|
|
|
2004 |
|
2003 |
|
||||
|
|
|
(unaudited) |
|
|
|
||||
|
Current liabilities |
|
|
|
|
|
||||
|
Line of credit |
|
$ |
4,031,227 |
|
$ |
5,236,432 |
|
||
|
Book Overdraft |
|
— |
|
867,555 |
|
||||
|
Accounts payable |
|
3,404,506 |
|
2,211,563 |
|
||||
|
Accrued expenses |
|
254,400 |
|
144,278 |
|
||||
|
Income taxes payable |
|
— |
|
821,982 |
|
||||
|
Notes payable - related party |
|
— |
|
30,000 |
|
||||
|
Net liabilities of discontinued operations |
|
463,185 |
|
988,905 |
|
||||
|
|
|
|
|
|
|
||||
|
Total current liabilities |
|
8,153,318 |
|
10,300,715 |
|
||||
|
|
|
|
|
|
|
||||
|
Total liabilities |
|
8,153,318 |
|
10,300,715 |
|
||||
|
|
|
|
|
|
|
||||
|
Shareholders’ equity |
|
|
|
|
|
||||
|
Preferred stock, $0.001 par value 10,000,000 shares authorized 0 and 0 shares issued and outstanding |
|
— |
|
— |
|
||||
|
Common stock, $0.001 par value 40,000,000 shares authorized 5,212,000 (unaudited) and 3,200,000 shares issued and outstanding |
|
5,212 |
|
3,200 |
|
||||
|
Additional paid-in capital |
|
10,529,652 |
|
528,263 |
|
||||
|
Retained earnings |
|
1,831,600 |
|
1,866,037 |
|
||||
|
|
|
|
|
|
|||||