56 unchanged sentences
Throughout 2020 and 2021 the theatres reopened as soon as local restrictions and the status of the COVID-19 pandemic would allow.
−Removed: As of September 30, 2022, a large majority of domestic and international theatres were open.
+Added: As of December 31, 2022, a large majority of domestic and international theatres were open.
The industry’s recovery to historical levels of new film content, both in terms of the number of new films and box office performance, is still underway, as the industry also continues to adjust to evolving theatrical release windows, competition from streaming and other delivery platforms, supply chain delays, inflationary pressures, labor shortages, wage rate pressures and other economic factors.
29 unchanged sentences
Fluctuations in Revenues and Earnings .
−Removed: Both the sales cycle and the contract fulfillment cycle is dependent on a number of factors from our customers that are not in our control.
−Removed: Accordingly, backlog, the recognition of backlog into revenue and related earnings may fluctuate from quarter to quarter depending on our customers’ particular requirements, which can sometimes change between the initial signing of a contract to its ultimate fulfillment.
+Added: Both the sales cycle and the contract fulfillment cycle are dependent on a number of factors from our customers that are not in our control.
+Added: Accordingly, backlog, the conversion of backlog into revenue and related earnings may fluctuate from quarter to quarter depending on our customers’ particular requirements, which can sometimes change between the initial signing of a contract and its ultimate fulfillment.
The principal factors that have affected or could affect our net sales from period to period are:
23 unchanged sentences
Results of Operations
−Removed: Three months ended September 30, 2022 compared to the three months ended September 30, 2021
−Removed: Three Months Ended September 30,
−Removed: Net sales increased 68.5% to $5.852 million for the three months ended September 30, 2022 from $3.474 million for the three months ended September 30, 2021 primarily due to an increase in projector sales related to a technological upgrade cycle and the inclusion in 2022 of the new QSC product line.
−Removed: Three Months Ended September 30,
−Removed: Gross profit increased 115.9% to $1.559 million for the three months ended September 30, 2022 from $0.722 million for the three months ended September 30, 2021.
−Removed: As a percentage of total revenues, gross profit increased to 26.6% from 20.8% due to product mix and an increase in post COVID-19 inventory reserve of $20,000 in 2021.
+Added: Three months ended December 31, 2022 compared to the three months ended December 31, 2021
+Added: Three Months Ended December 31,
+Added: Net sales increased 41.6% to $4.843 million for the three months ended December 31, 2022 from $3.419 million for the three months ended December 31, 2021 primarily due to the recovery from the impact of COVID-19 on the exhibition industry.
+Added: Three Months Ended December 31,
+Added: Gross profit increased 46.4% to $1.312 million for the three months ended December 31, 2022 from $.896 million for the three months ended December 31, 2021.
+Added: As a percentage of total revenues, gross profit increase by 85 basis points to 27.09%.
+Added: This increase is consistent with our expectations based on our selling product mix.
Research and Development
−Removed: Three Months Ended September 30,
+Added: Three Months Ended December 31,
+Added: The decrease in research and development expense was primarily the result of the timing of activity.
+Added: We expect research and development expense to increase as a percentage of sales in the future as we continue to increase product development on our green product line, SaaS (software as a service) products, LED screen support systems, Caddy products, and others as our business expands into new areas.
+Added: Selling, General and Administrative Expense
+Added: Three Months Ended December 31,
+Added: The decrease in selling, general and administrative expense was due primarily to stock compensation expense in the 2021 period, which wasn’t an expense in the 2022 period.
+Added: Other (Income) Expense
+Added: Three Months Ended December 31,
+Added: The change in other (income) expense was primarily due to realized and unrealized gains on marketable securities.
+Added: Net Income (Loss)
+Added: Three Months Ended December 31,
+Added: Net income was $46 for the three months ended December 31, 2022 compared to a net loss of $(.644) million for the three months ended December 31, 2021.
+Added: The improvement was the result of better operating results due to higher sales and gross profit, as well as gains on marketable securities.
+Added: Six months ended December 31, 2022 compared to six months ended December 31, 2021
+Added: Six Months Ended December 31,
+Added: Net revenues increased 55.1% to $10.695 million for the six months ended December 31, 2022 from $6.893 million for the six months ended December 31, 2021 primarily due to the recovery from the impact of COVID-19 on the exhibition industry.
+Added: Six Months Ended December 31,
+Added: Gross profit increased 77.4% to $2.871 million for the six months ended December 31, 2022 from $1.618 million for the six months ended December 31, 2021.
+Added: As a percentage of total revenues, gross profit improved to 26.8% for the six months ended December 31, 2022 from 23.5% for the six months ended December 31, 2021.
+Added: The Company has made several strategic inventory purchases, including the QSC purchase, which has allowed the Company to achieve increased gross margin on sales in the 2022 period.
+Added: Additionally, in the 2022 period the Company had increased sales of used and refurbished equipment, which resulted in higher gross margins.
+Added: Research and Development
+Added: Six Months Ended December 31,
The increase in research and development expense was primarily associated with increased activity in the 2022 period.
1 unchanged sentence
Selling, General and Administrative Expense
−Removed: Three Months Ended September 30,
−Removed: The increase in selling, general and administrative expense was due primarily to an increase in payroll and other ofther compensation expense in the 2022 period.
+Added: Six Months Ended December 31,
+Added: The increase in selling, general and administrative expense was due primarily to increases in payroll and compensation expense as the Company has increased headcount.
Other (Income) Expense
−Removed: Three Months Ended September 30,
−Removed: The change in other (income) expense was primarily due to an unrealized loss on marketable securities, offset by a reduction in interest income.
−Removed: Three Months Ended September 30,
−Removed: Net loss was $95,000 for the three months ended September 30, 2022 compared to a net loss of $0.577 million for the three months ended September 30, 2021.
−Removed: This decrease in net loss was driven by an increase in revenue and gross profit percentage, offset by an increase in selling, general and operating expenses.
+Added: Six Months Ended December 31,
+Added: The change in other (income) expense is predominantly the result of dividend and interest income on marketable securities.
+Added: Six Months Ended December 31,
+Added: Net loss was $(49,000) for the six months ended December 31, 2022 compared to a net loss of $(1.221) million for the six months ended December 31, 2021.
+Added: This improvement is predominantly the result of higher sales and gross profit.
Liquidity and Capital Resources
2 unchanged sentences
On July 7, 2021, the Company completed an initial public offering resulting in net proceeds of approximately $12.360 million.
−Removed: Cash balance at September 30, 2022 was approximately $2.294 million, as compared to $2.340 million at June 30, 2022.
−Removed: Investments in marketable securities at September 30, 2022 was $4.549 million compared to $4.688 at June 30, 2022.
+Added: Cash balance at December 31, 2022 was approximately $1.575 million, as compared to $2.430 million at June 30, 2022.
+Added: Investments in marketable securities was $4.740 million at December 31, 2022, as compared to $4.688 million at June 30, 2022.
Cash Flows from Operating Activities
−Removed: Net cash used by operating activities was $20,000 for the three months ended September 30, 2022, primarily due to net loss of $95,000 offset by non-cash expenses of $187,000 and net negative changes in working capital items of $111,000.
−Removed: The net change in working capital was primarily due to an increase in accounts payable of $1.597 million and a decrease in customer deposits of $1.312 million.
−Removed: Net cash used in operating activities was $0.769 million for the three months ended September 30, 2021, due to our net loss of $0.577 million and net changes in working capital items of $0.192 million.
+Added: Net cash used by operating activities was $705,000 for the six months ended December 31, 2022, primarily due to a net loss of $49,000 combined with negative net changes in working capital items of $690,000.
+Added: The net change in working capital was primarily due to increases in inventory and decreases in customer deposits, offset by decreases in accounts receivable and prepaid expenses.
+Added: The Net cash used by operating activities was $2.845 million for the six months ended December 31, 2021, primarily due to a net loss of $1.221 million and combined net changes in working capital items of $1.763 million.
+Added: The net change in working capital was primarily due to an increase in inventory of $1.964 million and payments of accounts payable and accrued expenses, offset by an increase in customer deposits.
Cash Flows from Investing Activities
−Removed: Net cash used in investing activities was $26,000 for the three months ended September 30, 2022 primarily due to the net investments in marketable securities.
−Removed: There was no cash provided by or used in investing activities for the three months ended September 30, 2021.
+Added: Net cash used in investing activities was $60,000 for the six months ended December 31, 2022, predominantly the result of net investment activity related to marketable securities.
+Added: Net cash used in investing activities was $2,000 for the six months ended December 31, 2021 for the purchase of equipment.
Cash Flows from Financing Activities
−Removed: There was no cash provided by or used in financing activities for the three months ended September 30, 2022.
−Removed: Net cash provided by financing activities was $10.529 million for the three months ended September 30, 2021, predominately the result of $12.360 million received from the IPO, offset by payments on the line of credit and notes payable.
+Added: There was no cash provided by or used in financing activities for the six months ended December 31, 2022.
+Added: Net cash provided by financing activities was $10.529 million for the six months ended December 31, 2021.
+Added: The increase relates to $12.360 million of IPO net proceeds offset by net repayments of $1.831 million of debt
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
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.