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).
−Removed: We have established a Global Product Development and Materials Science Center in our Camarillo footprint.
+Added: 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), where we have established a Global Product Development and Materials Science Center.
This facility has a state-of-the-art printed electronics development laboratory as well as materials science lab.
20 unchanged sentences
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)
7 unchanged sentences
Other income (expense), net
−Removed: Income before income taxes
+Added: Income (loss) before income taxes
Income tax expense (benefit)
−Removed: Comparison of Three Months Ended June 30, 2022 and 2021
+Added: Net income (loss)
+Added: Comparison of Three Months Ended September 30, 2022 and 2021
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)
6 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, 2022 compared to the three months ended June 30, 2021 in the industrial and medical markets, and were down in the consumer markets and for our standard products.
−Removed: 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.
−Removed: The increase in revenue from our medical market customers is due to a continued increase in orders from and shipments to our largest medical customer, whose purchasing volume has increased as COVID-19 restrictions on their hospital installations have begun to subside.
−Removed: The decrease in revenue from our consumer market customers is primarily due to a design change by one of our largest consumer products customers.
−Removed: During 2022, we also sold products in the automotive market for the first time since 2018, as we are again pursuing a program with an automotive manufacturer.
+Added: Revenues were up in the three months ended September 30, 2022 compared to the three months ended September 30, 2021 in the medical market, and were down in the industrial and consumer markets and for our standard products.
+Added: The increase in revenue from our medical market customers is due to a continued increase in orders from and shipments to our largest medical customer, whose purchasing volume has increased based on increases in installations at their hospital and medical center customer locations.
+Added: The decrease in revenue from our industrial market customers was due to decreased purchasing volume by these customers for use in their ongoing product lines resulting from changes in demand by their customers.
+Added: The decrease in revenue from our consumer market customers is primarily due to a design change by one of our largest consumer products customers, offset by shipments of our custom sensors to a new customer in this market.
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, sales volume, and fluctuations in our cost of revenues, which are comprised of material costs, direct and indirect production labor costs, warehousing and logistics costs, facilities costs, and other costs related to production activities.
−Removed: Gross profit and gross margin percentage during the three months ended June 30, 2022 were down compared to the three months ended June 30, 2021 due primarily to higher materials and components costs on certain orders, and an increase in production labor costs due to higher production levels and expanded labor hours.
−Removed: Three months ended June 30,
+Added: Gross profit and gross margin percentage during the three months ended September 30, 2022 were down compared to the three months ended September 30, 2021 due primarily to higher materials and components costs on certain orders, and unfavorable changes in product 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 in order to develop our HMI solutions, as well as design development aimed at addressing our customers’ unique design challenges.
−Removed: Engineering and R&D costs for the three months ended June 30, 2022 were up compared to the three months ended June 30, 2021 due to increased engineering employee headcount and increased prototyping and product-development activities that coincide with supporting new and expanded customer programs and new products.
−Removed: Three months ended June 30,
+Added: Engineering and R&D costs for the three months ended September 30, 2022 were up compared to the three months ended September 30, 2021 due to increased engineering employee headcount and increased prototyping and product-development activities, and also due to inclusion in the 2021 period of receipt of a $129 thousand research incentive grant from the Singapore government that reduced expenses in the prior year period.
+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 costs for the three months ended June 30, 2022 were substantially unchanged compared to the three months ended June 30, 2021.
−Removed: Three months ended June 30,
+Added: Selling, general and administrative costs for the three months ended September 30, 2022 were down compared to the three months ended September 30, 2021 due to lower sales and marketing employee headcount, and lower legal and other professional fees.
+Added: Three months ended September 30,
(in thousands, except percentages)
Other income (expense), net
−Removed: Other income (expense), net consists of non-operating income and expenses, such as gains and losses on marketable securities, foreign currency transaction gains and losses, interest income and expense, and other non-operating items.
−Removed: Other income (expense), net for the three months ended June 30, 2022 was comprised of $225 thousand of unrealized gains on marketable securities, and $117 thousand of foreign currency transaction gains, while other income (expense), net for the three months ended June 30, 2021 was comprised of $18 thousand of foreign currency transaction losses, and $11 thousand of other non-operating expenses.
−Removed: Three months ended June 30,
+Added: Other income (expense), net consists of non-operating income and expenses, such as gains and losses on marketable securities, foreign currency transaction gains and losses, interest income and expense, and other non-operating income and expenses.
+Added: Other income (expense), net for the three months ended September 30, 2022 was comprised of $181 thousand of gains on marketable securities, $24 thousand of foreign currency transaction gains, and $2 thousand of other non-operating income, while other income (expense), net for the three months ended September 30, 2021 was comprised of $6 thousand of foreign currency transaction losses.
+Added: Three months ended September 30,
(in thousands, except percentages)
2 unchanged sentences
Our effective tax rate is directly affected by the relative proportions of earnings and losses in the jurisdictions in which we operate, including our current limitation on realizing tax benefits on domestic losses due to the valuation allowance on our domestic net operating loss carryforward.
−Removed: Based on the expected mix of domestic and foreign earnings, we anticipate our effective tax rate to remain similar to the U.S.
−Removed: statutory rate of 21% primarily due to a significant portion of our earnings originating in the higher rate China jurisdiction (25%), offset by lower rate jurisdictions in Singapore (17%) and Hong Kong (16.5%).
+Added: Based on the expected mix of domestic and foreign earnings and losses, we anticipate our effective tax rate to remain higher than the U.S.
+Added: statutory rate of 21% primarily due to a significant portion of our consolidating earnings being recorded in the jurisdictions of China (25%), Singapore (17%), and Hong Kong (16.5%), while our domestic losses do not benefit the rate due to the valuation allowance.
State income taxes also have an impact in the U.S.
−Removed: In December 2021, the Company’s income tax provision included a valuation allowance against domestic deferred tax assets due to recent history of U.S.
−Removed: taxable losses.
Discrete tax events may cause our effective rate to fluctuate on a quarterly basis.
5 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, 2022 and 2021
+Added: Comparison of Nine Months Ended September 30, 2022 and 2021
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, 2022 compared to the six months ended June 30, 2021 in the industrial and medical markets and for our standard products, and were down in the consumer markets.
+Added: Revenues were up in the nine months ended September 30, 2022 compared to the nine months ended September 30, 2021 in the industrial and medical markets, and were down in the consumer markets and for our standard products.
The increase in revenue from our industrial market customers was due to increased purchasing volume by and shipments to these customers.
The increase in revenue from our medical market customers is due to a continued increase in shipments to our largest medical customer, whose purchasing volume has increased as COVID-19 restrictions have begun to subside.
−Removed: The decrease in revenue from our consumer market customers is primarily due to a design change by one of our largest consumer products customers.
+Added: The decrease in revenue from our consumer market customers is primarily due to a design change by one of our largest consumer products customers, offset by shipments of our custom sensors to a new customer in this market.
During 2022, we also sold products in the automotive market for the first time since 2018, as we are again pursuing a program with an automotive manufacturer.
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)
−Removed: Gross profit during the six months ended June 30, 2022 was up compared to the six months ended June 30, 2021 due to an increase in revenue, while gross margin percentage was down in the corresponding period due primarily to higher materials and components costs on certain orders, and an increase in production labor costs due to higher production levels and expanded labor hours.
−Removed: Six months ended June 30,
+Added: Gross profit and gross margin percentage during the nine months ended September 30, 2022 were down compared to the nine months ended September 30, 2021 due primarily to higher materials and components costs on certain orders, higher freight and tariff costs on certain transactions, unfavorable changes in product and customer mix, and changes in production efficiencies in our manufacturing operations.
+Added: Nine months ended September 30,
(in thousands, except percentages)
Engineering, research and development
−Removed: Engineering and R&D costs for the six months ended June 30, 2022 were up compared to the three months ended June 30, 2021 due to increased engineering employee headcount and increased prototyping and product-development activities that coincide with supporting new and expanded customer programs and new products.
−Removed: Six months ended June 30,
+Added: Engineering and R&D costs for the nine months ended September 30, 2022 were up compared to the nine months ended September 30, 2021 due to increased engineering employee headcount and increased costs on prototyping and development activities, and also due to inclusion in the 2021 period of receipt of a $129 thousand research incentive grant from the Singapore government that reduced expenses in the prior year.
+Added: Nine months ended September 30,
(in thousands, except percentages)
Selling, general and administrative
−Removed: Selling, general and administrative costs for the six months ended June 30, 2022 were up compared to the six months ended June 30, 2021 due to increased costs of professional services, as well as prior year having included a $186 thousand benefit from forgiveness of the PPP loan.
−Removed: Six months ended June 30,
+Added: Selling, general and administrative costs for the nine months ended September 30, 2022 were up slightly compared to the nine months ended September 30, 2021.
+Added: The prior year period included a $186 thousand benefit from forgiveness of the PPP loan.
+Added: When comparing selling, general and administrative costs for the periods exclusive of that benefit, costs for the nine month period in the current year were lower than in the prior year due to lower sales and marketing employee headcount, and lower legal and other professional fees.
+Added: Nine months ended September 30,
(in thousands, except percentages)
Other income (expense), net
−Removed: Other income (expense), net consists of non-operating income and expenses, such as gains and losses on marketable securities, foreign currency transaction gains and losses, interest income and expense, and other non-operating items.
−Removed: Other income (expense), net for the six months ended June 30, 2022 was comprised of $381 thousand of unrealized gains on marketable securities, $115 thousand of foreign currency transaction gains, and $1 thousand of other non-operating expenses, while other income (expense), net for the six months ended June 30, 2021 was comprised of $8 thousand of foreign currency transaction losses, and $11 thousand of other non-operating expenses.
−Removed: Six months ended June 30,
+Added: Other income (expense), net consists of non-operating income and expenses, such as gains and losses on marketable securities, foreign currency transaction gains and losses, interest income and expense, and other non-operating income and expenses.
+Added: Other income (expense), net for the nine months ended September 30, 2022 was comprised of $562 thousand of gains on marketable securities, $139 thousand of foreign currency transaction gains, and $3 thousand of other non-operating income, while other income (expense), net for
+Added: the nine months ended September 30, 2021 was comprised of $15 thousand of foreign currency transaction losses, and $10 thousand of other non-operating expenses.
+Added: Nine months ended September 30,
(in thousands, except percentages)
4 unchanged sentences
Cash requirements for working capital and capital expenditures have been funded from cash balances on hand, cash generated from operations, and sales of equity securities.
−Removed: As of June 30, 2022, we had cash and cash equivalents of $4.4 million, working capital of $12.0 million and no indebtedness.
+Added: As of September 30, 2022, we had cash and cash equivalents of $3.9 million, working capital of $12.0 million and no indebtedness.
Cash and cash equivalents consist of cash and money market funds.
14 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)
−Removed: Net cash provided by operating activities
+Added: Net cash provided by (used in) operating activities
Net cash (used in) investing activities
Net cash (used in) financing activities
−Removed: Net Cash Provided By Operating Activities
−Removed: For the six months ended June 30, 2022, the $28 thousand of cash provided by operating activities was attributable to net income of $254 thousand, adjusted for non-cash charges of $126 thousand, unrealized gains on marketable securities of $381 thousand, and cash provided by changes in operating assets and liabilities of $29 thousand.
−Removed: Accounts receivable decreased from $1.1 million at December 31, 2021 to $719 thousand at June 30, 2022 due to higher collections the first half of 2022 compared to the fourth quarter of 2021.
+Added: Net Cash Provided By (Used In) Operating Activities
+Added: For the nine months ended September 30, 2022, the $385 thousand of cash used in operating activities was attributable to net income of $260 thousand, adjusted for non-cash charges of $201 thousand, unrealized and realized gains on marketable securities of $562 thousand, and cash used in changes in operating assets and liabilities of $284 thousand.
+Added: Accounts receivable decreased from $1.1 million at December 31, 2021 to $958 thousand at September 30, 2022 due to improved collections and days-sales-outstanding for the third quarter of 2022 compared to the fourth quarter of 2021.
Many of our customers pay promptly and accounts receivable is generally related to the most recent shipments.
−Removed: Inventories increased from $814 thousand at December 31, 2021 to $1.0 million at June 30, 2022.
+Added: Inventories increased from $814 thousand at December 31, 2021 to $1.1 million at September 30, 2022.
Inventory balances fluctuate depending on the timing of materials purchases and product shipments.
−Removed: Prepaid expenses and other current assets increased from $391 thousand at December 31, 2021 to $475 thousand at June 30, 2022.
+Added: Prepaid expenses and other current assets increased from $391 thousand at December 31, 2021 to $453 thousand at September 30, 2022.
The balance of our prepaid expenses and other assets fluctuates with the timing of payments of insurance premiums, advances, and estimated income taxes.
−Removed: Accounts payable and accrued liabilities decreased from $845 thousand at December 31, 2021 to $660 thousand at June 30, 2022, primarily due to the timing of payment for purchases of materials, compensation accruals, and other outside services.
−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 $164 thousand, non-cash gain on forgiveness of PPP loan of $186 thousand, and cash provided by changes in operating assets and liabilities of $236 thousand.
+Added: Accounts payable and accrued liabilities decreased from $845 thousand at December 31, 2021 to $692 thousand at September 30, 2022, primarily due to the timing of payment for purchases of materials, compensation accruals, and other outside services.
+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 $229 thousand, non-cash gain on forgiveness of PPP loan of $186 thousand, and cash provided by changes in operating assets and liabilities of $353 thousand.
Net Cash Used In Investing Activities
−Removed: Net cash used in investing activities of $6.0 million for the six months ended June 30, 2022 consisted of purchases of $6.0 million of marketable securities and $9 thousand of property, plant, and equipment.
−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.
+Added: Net cash used in investing activities of $6.0 million for the nine months ended September 30, 2022 consisted of purchases of $6.0 million of marketable securities (net of sales) and $9 thousand of property, plant, and equipment.
+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.
Net Used In Financing Activities
−Removed: Net cash used in financing activities of $200 thousand for the six months ended June 30, 2022 consisted of payment of dividends on our Series A Convertible Preferred Stock.
−Removed: There was no cash provided by or used in financing activities during the six months ended June 30, 2021.
+Added: Net cash used in financing activities of $300 thousand for the nine months ended September 30, 2022 consisted of payment of dividends on our Series A Convertible Preferred Stock.
+Added: There was no cash provided by or used in financing activities during the nine months ended September 30, 2021.
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.