What changed in this filing

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Item 1. Financial Statements

2024-11-14 compared with 2024-08-14 · 56 added, 62 removed, 329 unchanged (26% of the section changed)

3 unchanged sentences

(Dollars in thousands, except par value)

June 30, 2024

September 30, 2024

December 31, 2023

34 unchanged sentences

(Dollars in thousands, except per share amounts)

Three months ended June 30,

Six months ended June 30,

Three months ended September 30,

Nine months ended September 30,

Cost of goods sold

Gross profit/(loss)

Operating expenses:

4 unchanged sentences

Operating loss

Interest expense

Interest income (expense)

Other income, net

13 unchanged sentences

(Dollars in thousands, except per share amounts)

Six months ended June 30,

Nine months ended September 30,

Cash flows from operating activities:

34 unchanged sentences

The following is a summary of supplemental cash flow activities:

Six months ended June 30,

Nine months ended September 30,

Cash paid for income taxes

14 unchanged sentences

Certain information and footnote disclosures that are usually included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been either condensed or omitted in accordance with SEC rules and regulations.

The accompanying condensed consolidated financial statements contain all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of our financial position as of June 30, 2024 and December 31, 2023 , the results of operations for the three and six months ended June 30, 2024 and 2023 , and the cash flows for the six months ended June 30, 2024 and 2023 .

The results of operations for the three and six months ended June 30, 2024 and 2023 are not necessarily indicative of the results for a full-year period.

The accompanying condensed consolidated financial statements contain all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of our financial position as of September 30, 2024 and December 31, 2023 , the results of operations for the three and nine months ended September 30, 2024 and 2023 , and the cash flows for the nine months ended September 30, 2024 and 2023 .

The results of operations for the three and nine months ended September 30, 2024 and 2023 are not necessarily indicative of the results for a full-year period.

These interim unaudited condensed consolidated financial statements should be read in conjunction with the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC.

1 unchanged sentence

The significant accounting policies were described in Note 1 to the audited consolidated financial statements included in the Company’s annual report on Form 10-K for the year ended December 31, 2023 .

There have been no changes to these policies during the quarter ended June 30, 2024 that are of significance or potential significance to the Company.

There have been no changes to these policies during the quarter ended September 30, 2024 that are of significance or potential significance to the Company.

Recent accounting pronouncements:

15 unchanged sentences

(Dollars in thousands, except per share amounts)

As of June 30, 2024 , our cash and cash equivalents were approximately $ 2,450 compared to $ 17,835 as of December 31, 2023 .

Our working capital was $ 21,707 as of June 30, 2024 .

Net cash used in operating activities was $ 2,722 for the six months ended June 30, 2024 , a decrease of $ 55,642 compared to $ 52,920 of cash provided by operating activities for the six months ended June 30, 2023 .

The decrease in cash is mainly due to payment of dividends $ 14,490 in April 2024 and $ 28,979 in May 2023.These conditions raise substantial doubt about continuing as a going

concern , but substantial doubt is alleviated because t he Company believes, although there can be no assurance, that the current cash position and effective management of working capital, will provide the liquidity needed to meet our operating needs through at least August 14, 2025 .

As of September 30, 2024 , our cash and cash equivalents were approximately $ 1,685 compared to $ 17,835 as of December 31, 2023 .

Our working capital was $ 19,712 as of September 30, 2024 .

Net cash used in operating activities was $ 4,575 for the nine months ended September 30, 2024 , a decrease of $ 55,718 compared to $ 51,143 of cash provided by operating activities for the nine months ended September 30, 2023 .

The decrease in cash is mainly due to payment of dividends $ 14,496 in April 2024 and $ 28,979 in May 2023.

These conditions raise substantial doubt about continuing as a going concern.

T he Company believes, although there can be no assurance, that the current cash position and effective management of working capital, will provide the liquidity needed to meet our operating needs through at least November 14, 2025 .

The Company also believes that its strong portfolio of intellectual property and its solid brand equity in the market will enable it to raise additional capital if and when needed to meet its short and long-term financing needs;

3 unchanged sentences

The following table disaggregates the Company’s revenue into primary product groups:

Three months ended June 30,

Six months ended June 30,

Three months ended September 30,

Nine months ended September 30,

Audio conferencing

1 unchanged sentence

The following table disaggregates the Company’s revenue into major regions:

Three months ended June 30,

Six months ended June 30,

Three months ended September 30,

Nine months ended September 30,

North and South America

10 unchanged sentences

The following table sets forth the computation of basic and diluted loss per common share:

Three months ended June 30,

Six months ended June 30,

Three months ended September 30,

Nine months ended September 30,

Basic weighted average shares outstanding

Dilutive common stock equivalents using treasury stock method

Diluted weighted average shares outstanding

10 unchanged sentences

Dividend and interest income are recognized when earned.

The amortized cost, gross unrealized holding gains, gross unrealized holding losses, and fair value for available-for-sale securities by major security type and class of securities as of June 30, 2024 and December 31, 2023 were as follows:

The amortized cost, gross unrealized holding gains, gross unrealized holding losses, and fair value for available-for-sale securities by major security type and class of securities as of September 30, 2024 and December 31, 2023 were as follows:

Amortized cost

2 unchanged sentences

Estimated fair value

June 30, 2024

September 30, 2024

Available-for-sale securities:

US Treasury securities

Certificates of deposit

Corporate debt securities

Total available-for-sale securities

13 unchanged sentences

Due after one year through five years

Due after five years

Total available-for-sale securities

1 unchanged sentence

(Dollars in thousands, except per share amounts)

Debt securities in an unrealized loss position as of June 30, 2024 were not deemed impaired at acquisition and subsequent declines in fair value are not deemed attributed to declines in credit quality.

Debt securities in an unrealized loss position as of September 30, 2024 were not deemed impaired at acquisition and subsequent declines in fair value are not deemed attributed to declines in credit quality.

Management believes that it is more likely than not that the securities will receive a full recovery of par value, although there can be no assurance that such recovery will occur.

8 unchanged sentences

Gross unrealized holding losses

As of June 30, 2024

US Treasury securities

As of September 30, 2024

Certificates of Deposit

Corporate debt securities

Less than 12 months

11 unchanged sentences

Intangible Assets

Intangible assets as of June 30, 2024 and December 31, 2023 consisted of the following:

Intangible assets as of September 30, 2024 and December 31, 2023 consisted of the following:

Estimated useful lives (years)

June 30, 2024

September 30, 2024

December 31, 2023

4 unchanged sentences

Total intangible assets, net

The amortization of intangible assets for three and six months ended June 30, 2024 and 2023 was as follows:

Three months ended June 30,

Six months ended June 30,

The amortization of intangible assets for three and nine months ended September 30, 2024 and 2023 was as follows:

Three months ended September 30,

Nine months ended September 30,

Amortization of intangible assets

4 unchanged sentences

2024 (Remainder)

Inventories, net of reserves, as of June 30, 2024 and December 31, 2023 consisted of the following:

June 30, 2024

Inventories, net of reserves, as of September 30, 2024 and December 31, 2023 consisted of the following:

September 30, 2024

December 31, 2023

5 unchanged sentences

We expect to sell the above inventory, net of reserves, at or above the stated cost and believe that no loss will be incurred on its sale, although there can be no assurance of the timing or amount of any sales.

Net loss incurred on valuation of inventory at lower of cost or market value and write-off of obsolete inventory for three and six months ended June 30, 2024 and 2023 was as follows:

Three months ended June 30,

Six months ended June 30,

Net loss incurred on valuation of inventory at lower of cost or market value and write-off of obsolete inventory for three and nine months ended September 30, 2024 and 2023 was as follows:

Three months ended September 30,

Nine months ended September 30,

Net loss (gain) incurred on valuation of inventory at lower of cost or market value and write-off of obsolete inventory

Rent expense is recognized on a straight-line basis over the period of the lease taking into account future rent escalation and holiday periods.

Rent expense for three and six months ended June 30, 2024 and 2023 was as follows:

Three months ended June 30,

Six months ended June 30,

Rent expense for three and nine months ended September 30, 2024 and 2023 was as follows:

Three months ended September 30,

Nine months ended September 30,

The Company occup ies a 1,350 square-foot facility in Gainesville, Florida under the terms of an operating lease expiring in F ebruary 2028 .

4 unchanged sentences

(Dollars in thousands, except per share amounts)

The Company occupies a 6,175 square-foot facility in Chennai, India under the terms of an operating lease expiring in August 2024.

The Company occupies a 6,175 square-foot facility in Chennai, India under the terms of an operating lease which expired in August 2024.

This facility support s the Company's administrative, marketing, customer support, and research and product development activities.

The lease is currently operating on a month-to-month basis.

The Company is planning to renew the lease.

1 unchanged sentence

Supplemental cash flow information related to leases was as follows:

Six months ended June 30,

Nine months ended September 30,

Cash paid for amounts included in the measurement of lease liabilities

3 unchanged sentences

Supplemental balance sheet information related to leases was as follows:

June 30, 2024

September 30, 2024

December 31, 2023

5 unchanged sentences

Weighted average discount rate for operating leases

The following represents maturities of operating lease liabilities as of June 30, 2024 :

The following represents maturities of operating lease liabilities as of September 30, 2024 :

Years ending December 31,

5 unchanged sentences

Shareholders' Equity

Three months ended June 30,

Six months ended June 30,

Three months ended September 30,

Nine months ended September 30,

Common stock and additional paid-in capital

29 unchanged sentences

The Company uses the Black-Scholes option pricing model to determine the fair value of share-based payments granted under the guidelines of ASC Topic 718 .

A summary of the stock option activity under the Company’s plans for the six months ended June 30, 2024 , is as follows:

A summary of the stock option activity under the Company’s plans for the nine months ended September 30, 2024 , is as follows:

Number of shares

3 unchanged sentences

Canceled or expired

Options outstanding at June 30, 2024

Options exercisable at end of June 30, 2024

As of June 30, 2024 , the total remaining unrecognized compensation cost related to non-vested stock options, net of forfeitures, was approximately $ 97 , which will be recognized over a weighted average period of 2.21 years.

Three months ended June 30,

Six months ended June 30,

Options outstanding at September 30, 2024

Options exercisable at end of September 30, 2024

As of September 30, 2024 , the total remaining unrecognized compensation cost related to non-vested stock options, net of forfeitures, was approximately $ 77 , which will be recognized over a weighted average period of 2.2 years.

Share based compensation expense has been recorded as follows:

Three months ended September 30,

Nine months ended September 30,

Cost of goods sold

6 unchanged sentences

The full domestic valuation allowance was recorded as management concluded that it is more likely than not that these deferred tax assets are not realizable due to the Company's recent pre-tax losses and other sources of negative evidence.

Provision for income taxes for the six months ended June 30, 2024 mostly represents income tax expense (benefit) recorded for jurisdictions outside the United States.

The Company had approximately $ 1,079 of uncertain tax positions as of June 30, 2024 .

Provision for income taxes for the nine months ended September 30, 2024 mostly represents income tax expense (benefit) recorded for jurisdictions outside the United States.

The Company had approximately $ 1,079 of uncertain tax positions as of September 30, 2024 .

Due to the inherent uncertainty of the underlying tax positions, it is not possible to forecast the payment of this liability for any particular year, therefore, it is reflected in other long-term liabilities.

12 unchanged sentences

The Company’s financial instruments are valued using observable inputs.

The following table sets forth the fair value of the financial instruments re-measured by the Company as of June 30, 2024 :

June 30, 2024

US Treasury securities

The following table sets forth the fair value of the financial instruments re-measured by the Company as of September 30, 2024 :

September 30, 2024

Certificates of deposit

Corporate debt securities

December 31, 2023

3 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements