32 unchanged sentences
This broader portfolio of technologies will allow us to use our expertise in integrating multiple sensing technologies for applications in the rapidly growing Internet-of-Things (“IoT”).
−Removed: Interlink serves our world-wide customer base from our corporate headquarters in Irvine, California (Orange County area) and from our facility in Camarillo, California (Ventura County).
+Added: Interlink serves our world-wide customer base from our corporate headquarters in Irvine, California (Orange County) and from our facility in Camarillo, California (Ventura County).
We have established a Global Product Development and Materials Science Center in our Camarillo footprint.
3 unchanged sentences
We also maintain a small embedded software and IoT application development center in Singapore.
−Removed: We manufacture all our products in our printed electronics manufacturing facility in Shenzhen, China, which has been in operation since 2006.
+Added: We manufacture all our products in our printed electronics manufacturing facility in Shenzhen, China.
In addition, we maintain a global distribution and logistics center in Hong Kong, a technical sales office in Japan, and several manufacturer representatives and distributors in strategic locations in our key markets, all of which allows us to support our global customer base.
13 unchanged sentences
Results of Operations
−Removed: The following table sets forth certain unaudited condensed consolidated statements of income data for the periods indicated.
+Added: The following table sets forth certain unaudited condensed consolidated statements of operations data for the periods indicated.
The percentages in the table are based on net revenues.
−Removed: Three months ended June 30,
−Removed: Six months ended June 30,
+Added: Three months ended September 30,
+Added: Nine months ended September 30,
(in thousands, except percentages)
9 unchanged sentences
Income tax expense (benefit)
−Removed: Net income (loss)
−Removed: Comparison of Three Months Ended June 30, 2021 and 2020
+Added: Comparison of Three Months Ended September 30, 2021 and 2020
Revenue, net by the markets we serve is as follows:
−Removed: Three months ended June 30,
+Added: Three months ended September 30,
(in thousands, except percentages)
7 unchanged sentences
We currently have products with life-cycles that have exceeded twenty years and are ongoing.
−Removed: Revenues were up in the three months ended June 30, 2021 compared to the three months ended June 30, 2020 in the medical and consumer markets, and for our standard products.
+Added: Revenues were up in the three months ended September 30, 2021 compared to the three months ended September 30, 2020 in the industrial and medical markets, and for our standard products.
+Added: The increase in revenue from our industrial market customers was due to increased purchasing volume by these customers for use in their ongoing product lines resulting from changes in demand by their customers.
The increase in revenue from our medical market customers was due to an increase in purchasing levels by these customers in the current year as compared to the pandemic-impacted levels in the prior year.
−Removed: The increase in revenue from our consumer market customers was due to an increase in purchasing levels on corresponding products and programs.
−Removed: The decrease in revenue from our industrial market customers was due to timing of purchasing volume by these customers for use in their ongoing product lines resulting from changes in demand by their customers.
The cyclical purchasing pattern of some of our larger customers affects our revenues on a quarterly basis.
1 unchanged sentence
In all markets, the timing of orders from our customers is not always predictable and can be concentrated in varying periods during the year to coincide with their project and building plans.
−Removed: Three months ended June 30,
+Added: Three months ended September 30,
(in thousands, except percentages)
Our gross profit and gross margin percentage are impacted by various factors including product mix, customer mix, volume, material costs, manufacturing efficiencies, facilities costs, compensation costs and provisions for excess and obsolete inventories.
−Removed: The increase in gross profit for the three months ended June 30, 2021 as compared with the prior year was due to the increase in revenues, while gross margin percentage was impacted by changes in product mix and customer mix, and an increase in production costs.
−Removed: Three months ended June 30,
+Added: The increase in gross profit for the three months ended September 30, 2021 as compared with the prior year was due to the increase in revenues, while gross margin percentage was positively impacted by changes in product mix and customer mix.
+Added: Three months ended September 30,
(in thousands, except percentages)
2 unchanged sentences
Our R&D team focuses both on internal design development, as well as design development aimed at addressing customer design challenges, in order to develop our HMI solutions.
−Removed: Our engineering and R&D costs were down for the three months ended June 30, 2021 when compared with the prior year because we reduced costs and headcount at our Singapore R&D center as part of the transfer of the lab to Camarillo, California.
−Removed: Three months ended June 30,
+Added: Our engineering and R&D costs were down for the three months ended September 30, 2021 when compared with the prior year because we reduced costs and headcount at our Singapore R&D center as part of the transfer of the lab to Camarillo, California, and also due to receipt of a research incentive grant from the Singapore government that reduced expenses for 2021.
+Added: Three months ended September 30,
(in thousands, except percentages)
1 unchanged sentence
Selling, general and administrative expenses consist primarily of compensation expenses, legal and other professional fees, facilities expenses and communication expenses.
−Removed: Selling, general and administrative expenses increased during the three months ended June 30, 2021 as compared with the prior year due to increases in sales, marketing, finance and administrative personnel, and an increase in costs associated with having relisted with Nasdaq during 2021.
−Removed: Three months ended June 30,
+Added: Selling, general and administrative expenses increased during the three months ended September 30, 2021 as compared with the prior year due to increases in sales, marketing, finance and administrative personnel, increase in legal and professional services costs, and an increase in costs associated with having relisted with Nasdaq during 2021.
+Added: Three months ended September 30,
(in thousands, except percentages)
Income tax expense (benefit)
−Removed: Income tax expense reflects statutory tax rates in the jurisdictions that we operate adjusted for normal book/tax differences.
−Removed: The tax expense for the three month periods ended June 30, 2021 and 2020 was a result of taxable income in the domestic and foreign jurisdictions in which we operate, including the effects of permanent taxable differences.
+Added: Income tax expense reflects statutory tax rates in the jurisdictions that we operate adjusted for book/tax differences.
+Added: The tax expense (benefit) for the three month periods ended September 30, 2021 and 2020 was a result of taxable income (losses) in the domestic and foreign jurisdictions in which we operate, including the effects of permanent taxable differences.
Our effective tax rate is directly affected by the relative proportions of income before taxes in the jurisdictions in which we operate.
6 unchanged sentences
could have significant effects, positive and negative, on our effective tax rate, and on our deferred tax assets and liabilities.
−Removed: Comparison of Six Months Ended June 30, 2021 and 2020
+Added: Comparison of Nine Months Ended September 30, 2021 and 2020
Revenue, net by the markets we serve is as follows:
−Removed: Six months ended June 30,
+Added: Nine months ended September 30,
(in thousands, except percentages)
−Removed: Revenues were up in the six months ended June 30, 2021 compared to the six months ended June 30, 2020 in the industrial and consumer markets, and were down in the medical markets and for our standard products.
+Added: Revenues were up in the nine months ended September 30, 2021 compared to the nine months ended September 30, 2020 in all of the markets we serve.
The increase in revenue from our industrial market customers was due to increased purchasing volume by these customers for use in their ongoing product lines resulting from changes in demand by their customers.
The increase in revenue from our consumer market customers was due to an increase in purchasing levels on corresponding products and programs.
−Removed: The decrease in revenue from our medical market customers was primarily due to a reduction of shipments to our largest medical customer, which was subject to delays in installing devices that use our products in hospitals due to COVID-19 restrictions.
−Removed: The decrease in revenue on our standard products was due to the cyclical purchasing pattern of some of our larger customers who took delivery of bulk quantities during 2020.
−Removed: In the normal cycle, some of our larger customers purchase in bulk quantities while consumption of these products can straddle several financial reporting periods.
+Added: The increase in revenue from our medical market customers was due to an increase in purchasing levels by these customers in the current year as compared to the pandemic-impacted levels in the prior year.
+Added: In the normal cycle, some of our larger customers purchase in bulk quantities while their consumption of these products can straddle several financial reporting periods.
In all markets, the timing of orders from our customers is not always predictable and can be concentrated in varying periods during the year to coincide with their project and building plans.
−Removed: Six months ended June 30,
+Added: Nine months ended September 30,
(in thousands, except percentages)
Our gross profit and gross margin percentage are impacted by various factors including product mix, customer mix, volume, material costs, manufacturing efficiencies, facilities costs, compensation costs and provisions for excess and obsolete inventories.
−Removed: The increase in gross profit for the six months ended June 30, 2021 as compared with the prior year was due to the increase in revenues, while gross margin percentage was impacted by changes in product mix and customer mix, and an increase in production costs.
−Removed: Six months ended June 30,
+Added: The increase in gross profit for the nine months ended September 30, 2021 as compared with the prior year was due to the increase in revenues, while gross margin percentage was relatively unchanged.
+Added: Nine months ended September 30,
(in thousands, except percentages)
Engineering, research and development
−Removed: Our engineering and R&D costs were down for the six months ended June 30, 2021 when compared with the prior year because we reduced costs and headcount at our Singapore R&D center as part of the transfer of the lab to Camarillo, California.
−Removed: Six months ended June 30,
+Added: Our engineering and R&D costs were down for the nine months ended September 30, 2021 when compared with the prior year because we reduced costs and headcount at our Singapore R&D center as part of the transfer of the lab to Camarillo, California, and also due to receipt of a research incentive grant from the Singapore government that reduced expenses for 2021.
+Added: Nine months ended September 30,
(in thousands, except percentages)
Selling, general and administrative
−Removed: Selling, general and administrative expenses increased during the six months ended June 30, 2021 as compared with the prior year due to increases in sales, marketing, finance and administrative personnel, and an increase in legal costs and filing fees associated with having relisted with Nasdaq during 2021, offset by the $186 thousand gain/benefit recorded for forgiveness of the PPP loan in the first quarter of 2021.
−Removed: Six months ended June 30,
+Added: Selling, general and administrative expenses increased during the nine months ended September 30, 2021 as compared with the prior year due to increases in sales, marketing, finance and administrative personnel, and an increase in legal and professional services costs and filing fees associated with having relisted with Nasdaq during 2021, offset by the $186 thousand gain/benefit recorded for forgiveness of the Paycheck Protection Program (the “PPP”) loan in the first quarter of 2021.
+Added: Nine months ended September 30,
(in thousands, except percentages)
Income tax expense (benefit)
−Removed: Income tax expense (benefit) reflects statutory tax rates in the jurisdictions that we operate adjusted for normal book/tax differences.
−Removed: The tax expense (benefit) for the six month periods ended June 30, 2021 and 2020 was a result of taxable income (losses) in the domestic and foreign jurisdictions in which we operate, including the effects of permanent taxable differences.
+Added: Income tax expense (benefit) reflects statutory tax rates in the jurisdictions that we operate adjusted for book/tax differences.
+Added: The tax expense (benefit) for the nine month periods ended September 30, 2021 and 2020 was a result of taxable income (losses) in the domestic and foreign jurisdictions in which we operate, including the effects of permanent taxable differences.
Liquidity and Capital Resources
Cash requirements for working capital and capital expenditures have been funded from cash balances on hand and cash generated from operations.
−Removed: As of June 30, 2021, we had cash and cash equivalents of $6.250 million, working capital of $7.541 million, and no indebtedness.
+Added: As of September 30, 2021, we had cash and cash equivalents of $6.647 million, working capital of $7.867 million, and no indebtedness.
Cash and cash equivalents consist of cash and money market funds.
−Removed: We did not have any short-term or long-term investments as of June 30, 2021.
+Added: We did not have any short-term or long-term marketable investments as of September 30, 2021.
Of the $6.647 million of cash balances on hand, $2.565 million was held by foreign subsidiaries.
4 unchanged sentences
and our current plans do not demonstrate a need to repatriate cash to fund our U.S.
−Removed: During the second quarter of 2020, the Company received a loan from Silicon Valley Bank in the aggregate principal amount of $186 thousand pursuant to the Paycheck Protection Program (the “PPP”) under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”).
−Removed: The loan was evidenced by a promissory note, dated April 21, 2020, issued by us to the lender, which was scheduled to mature on April 20, 2022, and bore interest at a rate of 1.00% per annum.
−Removed: Proceeds from the loan were used to fund designated expenses, including certain payroll costs, group health care benefits and other permitted expenses, in accordance with the PPP.
−Removed: Under the terms of the PPP, up to the entire amount of principal and accrued interest was eligible to be forgiven to the extent loan proceeds are used for qualifying expenses as described in the CARES Act and applicable implementing guidance issued by the U.S.
−Removed: Small Business Administration under the PPP.
−Removed: The full amount of the loan principal and interest was forgiven in February 2021.
+Added: During the second quarter of 2020, the Company received a loan in the aggregate principal amount of $186 thousand pursuant to the PPP under the Coronavirus Aid, Relief, and Economic Security Act.
+Added: The full amount of the loan principal and interest was forgiven in the first quarter of 2021.
We believe that our existing cash and cash equivalents balance will be sufficient to maintain our current operations considering our current financial condition, obligations, and other expected cash flows.
6 unchanged sentences
Our cash flows from operating, investing and financing activities are summarized as follows:
−Removed: Six Months Ended
+Added: Nine Months Ended
+Added: September 30,
(in thousands)
3 unchanged sentences
Net Cash Provided By Operating Activities
−Removed: For the six months ended June 30, 2021, the $234 thousand of cash provided by operating activities was attributable to net income of $20 thousand, adjusted for non-cash charges of $290 thousand, non-cash gain on forgiveness of PPP loan of $186 thousand, and cash provided by changes in operating assets and liabilities of $110 thousand.
−Removed: For the six months ended June 30, 2020, the $130 thousand of cash provided by operating activities was attributable to net loss of $5 thousand, adjusted for non-cash charges of $269 thousand, and cash used in changes in operating assets and liabilities of $134 thousand.
−Removed: Accounts receivable increased slightly from $1,113 thousand at December 31, 2020 to $1,173 thousand at June 30, 2021 due to timing of shipments and payments during the second quarter of 2021 compared to the fourth quarter of 2020.
+Added: For the nine months ended September 30, 2021, the $639 thousand of cash provided by operating activities was attributable to net income of $243 thousand, adjusted for non-cash charges of $235 thousand, non-cash gain on forgiveness of PPP loan of $186 thousand, and cash provided by changes in operating assets and liabilities of $347 thousand.
+Added: For the nine months ended September 30, 2020, the $42 thousand of cash provided by operating activities was attributable to net income of $60 thousand, adjusted for non-cash charges of $253 thousand, and cash used in changes in operating assets and liabilities of $271 thousand.
+Added: Accounts receivable decreased slightly from $1,113 thousand at December 31, 2020 to $1,106 thousand at September 30, 2021 due to timing of shipments and payments during the third quarter of 2021 compared to the fourth quarter of 2020.
Many of our customers pay promptly and accounts receivable is generally related to the most recent shipments.
−Removed: Inventories increased slightly from $866 thousand at December 31, 2020 to $878 thousand at June 30, 2021.
+Added: Inventories decreased slightly from $866 thousand at December 31, 2020 to $807 thousand at September 30, 2021.
Inventory balances fluctuate depending on the timing of materials purchases and product shipments.
−Removed: Prepaid expenses and other current assets decreased from $392 thousand at December 31, 2020 to $168 thousand at June 30, 2021, and accounts payable and accrued liabilities increased from $578 thousand at December 31, 2020 to $674 thousand at June 30, 2021, primarily due to the timing of payment for purchases of materials and other services provided.
+Added: Prepaid expenses and other current assets decreased from $392 thousand at December 31, 2020 to $325 thousand at September 30, 2021, and accounts payable and accrued liabilities increased from $578 thousand at December 31, 2020 to $685 thousand at September 30, 2021, primarily due to the timing of payment for purchases of materials and other services provided.
Net Cash (Used In) Investing Activities
−Removed: Net cash used in investing activities of $142 thousand for the six months ended June 30, 2021 consisted of purchases of property, plant, and equipment, primarily related to completion of the Global Product Development and Materials Science Center in our Camarillo footprint.
−Removed: Net cash used in investing activities of $48 thousand for the six months ended June 30, 2020 consisted of legal costs related to securing patents on new products and processes developed thereunder.
+Added: Net cash used in investing activities of $142 thousand for the nine months ended September 30, 2021 consisted of purchases of property, plant, and equipment, primarily related to completion of the Global Product Development and Materials Science Center in our Camarillo footprint.
+Added: Net cash used in investing activities of $66 thousand for the nine months ended September 30, 2020 consisted of legal costs related to securing patents on new products and processes developed thereunder.
Net Cash Provided By Financing Activities
−Removed: There was no cash provided by or used in financing activities during the six months ended June 30, 2021.
−Removed: Net cash provided by financing activities for the six months ended June 30, 2020 was attributable to proceeds from the PPP loan.
+Added: There was no cash provided by or used in financing activities during the nine months ended September 30, 2021.
+Added: Net cash provided by financing activities for the nine months ended September 30, 2020 was attributable to proceeds from the PPP loan.
Off-Balance Sheet Arrangements
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.