What changed in this filing

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Item 1. Financial Statements

2022-11-14 compared with 2022-08-12 · 71 added, 36 removed, 266 unchanged (29% of the section changed)

3 unchanged sentences

(in thousands, except share data)

September 30,

CURRENT ASSETS:

Cash and cash equivalents

Trade accounts receivable, net of allowance for

doubtful accounts of $ 83 and $ 89 , respectively

Trade accounts receivable, net of allowance for doubtful accounts of $ 98 and $ 89 , respectively

Other current assets

18 unchanged sentences

Authorized, 30,000,000 shares

Issued and outstanding, 8,814,279 shares as of June 30,

Issued and outstanding, 8,816,381 shares as of September 30,

2022 and 8,621,007 shares as of December 31, 2021

8 unchanged sentences

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Cost of goods sold

21 unchanged sentences

Three Months Ended

Six Months Ended

September 30,

Nine Months Ended

September 30,

Net income (loss)

8 unchanged sentences

Stockholders'

Income (Loss)

Balance at December 31, 2020

5 unchanged sentences

Balance at March 31, 2021

Repurchased shares

Stock awards issued, net of tax withholding

4 unchanged sentences

Balance at June 30, 2021

Repurchased shares

Stock awards issued, net of tax withholding

Issuance of stock through:

Share-based compensation

Net income (loss)

Other comprehensive income (loss)

Balance at September 30, 2021

Balance at December 31, 2021

11 unchanged sentences

Balance at June 30, 2022

Stock awards issued, net of tax withholding

Issuance of stock through:

Share-based compensation

Net income (loss)

Other comprehensive income (loss)

Balance at September 30, 2022

See notes to consolidated financial statements

2 unchanged sentences

(in thousands)

For the Six Months Ended

For the Nine Months Ended

September 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

17 unchanged sentences

CASH FLOWS FROM FINANCING ACTIVITIES:

Net proceeds from issuance of common stock, less payments

for shares withheld to cover tax

Net proceeds from issuance of common stock, less payments for shares withheld to cover tax

Cash provided by (used in) financing activities

12 unchanged sentences

Our manufacturing operations are currently located in Redmond, Washington, United States and Shanghai, China.

We prepared the financial statements as of June 30, 2022 and June 30, 2021 according to the rules and regulations of the Securities and Exchange Commission (“SEC”).

We prepared the financial statements as of September 30, 2022 and September 30, 2021 according to the rules and regulations of the Securities and Exchange Commission ("SEC").

These statements are unaudited but, in the opinion of management, include all adjustments (consisting of normal recurring adjustments and accruals) necessary to present fairly the results for the periods presented.

1 unchanged sentence

We have condensed or omitted certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America according to such SEC rules and regulations.

Operating results for the six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022.

Operating results for the nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022.

Significant Accounting Policies

35 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

Net sales by type

September 30,

(in thousands)

1 unchanged sentence

Share-Based Compensation

All stock-based compensation awards are measured based on estimated fair values on the date of grant and recognized as compensation expense on the straight-line method.

All stock-based compensation awards are measured based on estimated fair values on the date of grant and recognized as compensation expense on the straight-line single-option method.

Our share-based compensation is reduced for estimated forfeitures at the time of grant and revised as necessary in subsequent periods if actual forfeitures differ from those estimates.

4 unchanged sentences

Recently Adopted Accounting Pronouncements

For the six months ended June 30, 2022, there were no recently issued accounting pronouncements that had, or are expected to have, a material impact to Data I/O Corporation’s consolidated financial statements.

For the nine months ended September 30, 2022, there were no recently issued accounting pronouncements that had, or are expected to have, a material impact to Data I/O Corporation’s consolidated financial statements.

NOTE 2 – INVENTORIES

Inventories consisted of the following components:

September 30,

(in thousands)

3 unchanged sentences

Property and equipment consisted of the following components:

September 30,

(in thousands)

5 unchanged sentences

Other accrued liabilities consisted of the following components:

September 30,

(in thousands)

3 unchanged sentences

Other accrued liabilities

The changes in our product warranty liability for the six months ending June 30, 2022 are as follows:

The changes in our product warranty liability for the nine months ending September 30, 2022 are as follows:

September 30,

(in thousands)

5 unchanged sentences

Our leasing arrangements are primarily for facility leases we use to conduct our operations.

The following table presents our future lease payments for long-term operating leases as of June 30, 2022:

The following table presents our future lease payments for long-term operating leases as of September 30, 2022:

Lease Commitments

3 unchanged sentences

Total operating lease liabilities

Cash paid for operating lease liabilities for the three and six months ended June 30, 2022 were $ 410,000 and $ 199,000 , respectively.

The following table presents supplemental balance sheet information related to leases as of June 30, 2022:

Cash paid for operating lease liabilities for the three and nine months ended September 30, 2022 was $ 138,000 and $ 555,000 , respectively.

There were three new operating leases during the nine months ended September 30, 2022.

The following table presents supplemental balance sheet information related to leases:

September 30,

(in thousands)

2 unchanged sentences

Lease liability-long term (Operating lease liabilities)

At June 30, 2022, the weighted average remaining lease term is 3.42 years and the weighted average discount rate used is 5 %.

The components of our lease expense for the three and six months ended June 30, 2022 include operating lease costs of $ 213,000 and $ 434,000 , respectively, and short-term lease costs of $ 8,000 and $ 27,000 , respectively.

At September 30, 2022, the weighted average remaining lease term is 3.21 years and the weighted average discount rate used is 5 %.

The components of our lease expense for the three and nine months ended September 30, 2022 include operating lease costs of $ 209,000 and $ 642,000 , respectively, and short-term lease costs of $ 8,000 and $ 35,000 , respectively.

During the fourth quarter of 2021, we amended our lease agreement for the Redmond, Washington headquarters facility, extending the lease to January 31, 2026.

8 unchanged sentences

Most arrangements are cancelable without a significant penalty, and with short notice, typically less than 90 days.

At June 30, 2022, the purchase commitments and other obligations totaled $ 3 .0 million of which all but $ 540,000 are expected to be paid over the next twelve months.

At September 30, 2022, the purchase commitments and other obligations totaled $ 2.6 million of which all but $ 540,000 are expected to be paid over the next twelve months.

NOTE 7 – CONTINGENCIES

As of June 30, 2022, we were not a party to any legal proceedings or aware of any indemnification agreement claims, the adverse outcome of which in management’s opinion, individually or in the aggregate, would have a material adverse effect on our results of operations or financial position.

As of September 30, 2022, we were not a party to any legal proceedings or aware of any indemnification agreement claims, the adverse outcome of which in management’s opinion, individually or in the aggregate, would have a material adverse effect on our results of operations or financial position.

NOTE 8 – INCOME TAXES

Income tax benefit (expense) primarily relates to foreign and state taxes.

The first quarter of 2022 included dividend withholding taxes on a dividend repatriation.

Income tax benefit (expense) for the third quarter of both 2022 and 2021, primarily related to foreign and state taxes.

NOTE 9 – EARNINGS PER SHARE

4 unchanged sentences

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(in thousands except per share data)

14 unchanged sentences

Diluted earnings (loss) per share

Options to purchase 12,500 and 24,448 shares, respectively, were outstanding as of June 30, 2022 and 2021, but were excluded from the computation of diluted earnings per share for the periods then ended because the options were anti-dilutive.

Options to purchase 12,500 shares were outstanding as of both September 30, 2022 and 2021, but were excluded from the computation of diluted earnings per share for the periods then ended because the options were anti-dilutive.

NOTE 10 – SHARE-BASED COMPENSATION

1 unchanged sentence

For these awards we have recognized compensation expense using a straight-line amortization method reduced for estimated forfeitures.

The impact on our results of operations of recording share-based compensation, net of forfeitures, for the three and six months ended June 30, 2022 and 2021, respectively, were as follows:

The impact on our results of operations of recording share-based compensation, net of forfeitures, for the three and nine months ended September 30, 2022 and 2021, respectively, were as follows:

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

(in thousands)

3 unchanged sentences

Total share-based compensation

Equity awards granted during the three and six months ended June 30, 2022 and 2021 were as follows:

Three Months Ended

Six Months Ended

Restricted Stock Units

Stock Options

The weighted average number of shares outstanding used to compute earnings (loss) per share included the following:

Equity awards granted during the three and nine months ended September 30, 2022 and 2021 were as follows:

Three Months Ended

Six Months Ended

Nine Months Ended

September 30,

Restricted Stock Units

Stock Options

Non-employee directors Restricted Stock Units (“RSUs”) typically vest over the earlier of one year or the next annual meeting of shareholders and Non-Qualified stock options vest over three years and have a six-year exercise period.

Employee RSUs typically vest over four years and employee Non-Qualified stock options typically vest quarterly over 4 years and have a six-year exercise period.

The remaining unamortized expected future equity compensation expense and remaining amortization period associated with unvested option grants, restricted stock awards and restricted stock unit awards at June 30, 2022 are:

September 30,

Unamortized future equity compensation expense (in thousands)

1 unchanged sentence

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