What changed in this filing

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Item 1. Financial Statements

2020-11-09 compared with 2005-07-19 · 223 added, 191 removed, 12 unchanged (97% of the section changed)

Financial Statements

MEDICAL PRODUCTS, INC.

UTAH MEDICAL PRODUCTS, INC.

AND SUBSIDIARIES

CONDENSED BALANCE SHEETS AS OF

31, 2005 AND DECEMBER 31, 2004

available-for-sale

receivable - net

current assets

CONSOLIDATED CONDENSED BALANCE SHEETS AS OF

SEPTEMBER 30, 2020 AND DECEMBER 31, 2019

(in thousands)

SEPTEMBER 30, 2020

DECEMBER 31, 2019

Current assets:

and equipment - net

intangible assets

intangible assets - accumulated amortization

intangible assets - net

AND STOCKHOLDERS' EQUITY

Cash & investments

Accounts & other receivables, net

Other current assets

Total current assets

Property and equipment, net

Operating lease – right of use assets, net

Other intangible assets

Other intangible assets - accumulated amortization

Other intangible assets, net

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Stockholders'

stock - $.01 par value;

Accounts payable

Accrued expenses

Total current liabilities

Deferred tax liability – Femcare IIA

Other long term liabilities

Operating lease liability

Deferred income taxes

Total liabilities

Stockholders' equity:

Preferred stock - $ 0.01 par value;

authorized - 5,000 shares;

no shares issued or outstanding

stock - $.01 par value;

Common stock - $ 0.01 par value;

authorized - 50,000 shares;

issued - March 31, 2005, 4,070 shares December

31, 2004, 4,105 shares

other comprehensive income

stockholders' equity

notes to consolidated condensed financial

MEDICAL PRODUCTS, INC.

issued - September 30, 2020, 3,640 shares and December 31, 2019, 3,722 shares

Accumulated other comprehensive income (loss)

Additional paid-in capital

Retained earnings

Total stockholders' equity

Total liabilities and stockholders' equity

see notes to consolidated condensed financial statements

UTAH MEDICAL PRODUCTS, INC.

AND SUBSIDIARIES

CONDENSED STATEMENTS OF INCOME FOR THE

MONTHS ENDED MARCH 31, 2005 AND MARCH 31, 2004

thousands, except per share amounts)

general and administrative

& development

from Operations

Before Income Tax Expense

EARNINGS PER SHARE

OUTSTANDING - BASIC

OUTSTANDING - DILUTED

notes to consolidated condensed financial

MEDICAL PRODUCTS, INC.

CONSOLIDATED CONDENSED STATEMENTS OF INCOME FOR THE

THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2020 AND SEPTEMBER 30, 2019

(in thousands, except per share amounts - unaudited)

Three Months Ended

Nine Months Ended

September 30, 2020

September 30, 2019

September 30, 2020

September 30, 2019

Cost of goods sold

Operating expense

Selling, general and administrative

Research & development

Total operating expenses

Operating income

Other income (expense)

Income before provision for income taxes

Provision for income taxes

Earnings per common share (basic)

Earnings per common share (diluted)

Shares outstanding - basic

Shares outstanding - diluted

Other comprehensive income (loss):

Foreign currency translation net of taxes of $ 0 in all periods

Total comprehensive income

see notes to consolidated condensed financial statements

UTAH MEDICAL PRODUCTS, INC.

AND SUBSIDIARIES

CONDENSED STATEMENTS OF CASH FLOWS

THE THREE MONTHS ENDED MARCH 31, 2005 AND MARCH 31, 2004

thousands - unaudited)

FLOWS FROM OPERATING ACTIVITIES:

to reconcile net income to net cash provided by operating

and amortization

on investments

for losses on accounts receivable

benefit attributable to exercise of stock options

in operating assets and liabilities:

receivable - trade

interest and other receivables

expenses and other current assets

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2020 AND SEPTEMBER 30, 2019

(in thousands - unaudited)

Nine Months Ended

September 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

Adjustments to reconcile net income to net

cash provided by operating activities

FLOWS FROM INVESTING ACTIVITIES:

expenditures for:

and equipment

of investments

from sale of investments

cash used in investing activities

FLOWS FROM FINANCING ACTIVITIES:

from issuance of common stock - options

stock purchased and retired

cash used in financing activities

of exchange rate changes on cash

INCREASE (DECREASE) IN CASH

AT BEGINNING OF PERIOD

AT END OF PERIOD

DISCLOSURE OF CASH FLOW INFORMATION:

paid during the period for income taxes

paid during the period for interest

notes to consolidated condensed financial

MEDICAL PRODUCTS, INC.

TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

unaudited financial statements have been prepared in accordance with the

instructions to form 10-Q and do not include all of the information and note

disclosures required by accounting principles generally accepted in the United

These statements should be read in conjunction with the financial

statements and notes included in the Utah Medical Products, Inc.

Company") annual report on form 10-K for the year ended December 31, 2004.

the opinion of management, the accompanying financial statements include all

adjustments (consisting only of normal recurring adjustments) necessary to

summarize fairly the Company's financial position and results of operations.

(2) Inventories

at March 31, 2005 and December 31, 2004 (in thousands) consisted of the

Work-in-process

(3) Stock-Based

Compensation.

At March 31, 2005 the Company had stock-based employee

compensation plans, which authorized the grant of stock options to eligible

employees and directors.

The Company accounts for those plans under the

recognition and measurement principles of APB Opinion No.

25, Accounting for

Stock Issued to Employees, and related Interpretations, and has adopted the

disclosure-only provisions of SFAS No.

123, “Accounting for Stock-Based

Compensation.” Accordingly, no compensation cost has been recognized in the

financial statements, as all options granted under those plans had an exercise

price equal to or greater than the market value of the underlying common stock

on the date of grant.

Had compensation cost for the Company’s stock option plans

been determined based on the fair value at the grant date consistent with the

provisions of SFAS No.

123, the Company’s net earnings and earnings per share

would have been reduced to the pro forma amounts indicated below (in thousands,

except per share amounts):

Income as reported

stock-based employee compensation expense determined under fair value

based method for all awards, net of related tax effects

income pro forma

- as reported

Provision for (recovery of) losses on accounts receivable

Amortization of Right-of-Use Assets

(Gain) loss on disposal of assets

Deferred income taxes

Stock-based compensation expense

Tax benefit attributable to exercise of stock options

Changes in operating assets and liabilities:

Accounts receivable and other receivables

Prepaid expenses and other current assets

Accounts payable

Accrued expenses

Total adjustments

Net cash provided by operating activities

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital expenditures for:

Property and equipment

Intangible assets

Net cash used in investing activities

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from issuance of common stock - options

Common stock purchased and retired

Payment of dividends

Net cash used in financing activities

Effect of exchange rate changes on cash

Net decrease in cash and cash equivalents

Cash at beginning of period

Cash at end of period

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

Cash paid during the period for income taxes

Cash paid during the period for interest

see notes to consolidated condensed financial statements

UTAH MEDICAL PRODUCTS, INC.

CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY FOR THE

THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2020 AND SEPTEMBER 30, 2019

(In thousands - unaudited)

Comprehensive

Comprehensive income (in thousands) for the three months ending March

31, 2005 was $1,616, net of taxes.

The components used to calculate

comprehensive income were foreign currency translation adjustments of ($209),

and unrealized holding losses of ($144).

The Company accrues provisions for estimated costs that are likely

be incurred for product warranties and uncollectible accounts.

The amount of

provision is adjusted, as required, to reflect historical experience.

following table summarizes changes to UTMD’s warranty reserve during 1Q 2005 (in

Balance, January 1, 2005

in Warranty Reserve during 1Q 2005:

reductions for warranty repairs

changes for warranties issued during reporting period

changes in reserve related to preexisting warranties

Balance, March 31, 2005

(6) Investments.

Investments, classified as available-for-sale consist of the following (in

available-for-sale

holding gains

holding (losses)

at fair value

unrealized holding gain on investment securities available-for-sale and reported

as a separate component of accumulated other comprehensive income are as follows

Stockholders'

Balance at June 30, 2020

Shares issued upon exercise of employee

stock options for cash

Stock option compensation expense

Common stock purchased and retired

Foreign currency translation adjustment

Common stock dividends

Balance at September 30, 2020

Balance at December 31, 2019

Shares issued upon exercise of employee

stock options for cash

Stock option compensation expense

Common stock purchased and retired

Foreign currency translation adjustment

Common stock dividends

Balance at September 30, 2020

Balance at June 30, 2019

Shares issued upon exercise of employee

stock options for cash

Stock option compensation expense

Common stock purchased and retired

Foreign currency translation adjustment

Common stock dividends

Balance at September 30, 2019

Balance at December 31, 2018

Shares issued upon exercise of employee

stock options for cash

Stock option compensation expense

Common stock purchased and retired

Foreign currency translation adjustment

Common stock dividends

Balance at September 30, 2019

see notes to consolidated condensed financial statements

UTAH MEDICAL PRODUCTS, INC.

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

(1) The unaudited financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and note disclosures required by accounting principles generally accepted in the United States.

These statements should be read in conjunction with the financial statements and notes included in the Utah Medical Products, Inc.

("UTMD"

or "the Company") annual report on Form 10-K for the year ended December 31, 2019.

In the opinion of management, the accompanying financial statements include all adjustments (consisting only of normal recurring adjustments) necessary to summarize fairly the Company's financial position and results of operations.

Currency amounts are in thousands except per-share amounts and where noted.

(2) Recent Accounting Standards.

The Company has determined that other recently issued accounting standards will either have no material impact on its consolidated financial position, results of operations or cash flows, or will not apply to its operations.

(3) Inventories at September 30, 2020, and December 31, 2019, consisted of the following:

September 30, 2020

December 31, 2019

Finished goods

Work-in-process

Raw materials

(4) Stock-Based Compensation.

At September 30, 2020, the Company has stock-based employee compensation plans which authorize the grant of stock options to eligible employees and directors.

The Company accounts for stock compensation under FASB Accounting Standards Codification (“ASC”) 718, Compensation - Stock Compensation .

This statement requires the Company to recognize compensation cost based on the grant date fair value of options granted to employees and directors.

In the quarters ended September 30, 2020, and 2019, the Company recognized $ 49 and $ 29 , respectively, in stock based compensation cost.

In the nine months ended September 30, 2020, and 2019, the Company recognized $ 121 and $ 85 , respectively, in stock based compensation cost.

(5) Warranty Reserve.

The Company’s published warranty is:

“UTMD warrants its products to conform in all material respects to all published product specifications in effect on the date of shipment, and to be free from defects in material and workmanship for a period of thirty (30) days for supplies, or twenty-four (24) months for equipment, from date of shipment.

During the warranty period UTMD shall, at its option, replace any products shown to UTMD's reasonable satisfaction to be defective at no expense to the Purchaser or refund the purchase price.”

UTMD maintains a warranty reserve to provide for estimated costs which are likely to occur.

The amount of this reserve is adjusted, as required, to reflect its actual experience.

Based on its analysis of historical warranty claims and its estimate that existing warranty obligations were immaterial, no warranty reserve was made at December 31, 2019, or September 30, 2020.

(6) Global 3Q 2020 revenues (USD) by product category:

Gynecology/Electrosurgery/Urology

Blood Pressure Monitoring and Accessories

Global 9M 2020 revenues (USD) by product category:

Gynecology/Electrosurgery/Urology

Blood Pressure Monitoring and Accessories

UTMD has operating leases for a portion of its parking lot at its Midvale facility and an automobile at its Ireland facility.

The remaining lease term on the parking lot is 11 years and on the automobile it is 16 months.

There are no options to extend or terminate the leases.

UTMD has no other leases yet to commence.

As neither lease contains implicit rates, UTMD’s incremental borrowing rate, based on information available at adoption date, was used to determine the present value of the leases.

The components of lease cost were as follows:

Three Months Ended September 30, 2020

Operating Lease Cost ( in thousands )

Right of Use Assets obtained in exchange for new operating lease Obligations

Other Information

Three Months Ended September 30, 2020

Weighted Average Remaining Lease Term - Operating Leases

Weighted Average Discount Rate – Operating Leases

Operating lease liabilities/ payments ( in thousands )

Operating lease payments, 2020

Operating lease payments, 2021

Operating lease payments, 2022

Operating lease payments, 2023

Operating lease payments, 2024

Reconciliation of operating lease liabilities/ payments to operating lease liabilities

( in thousands )

holding gains on available-for-sales investments

beginning of period

gain from securities included in beginning balance

unrealized holding gains, net of (losses), in equity

income taxes on unrealized holding gain

end of period

Available-for-sale

debt securities

less than 1 year

greater than 10 years

(7) Forward-Looking

This report contains certain forward-looking statements and

information relating to the Company that are based on the beliefs of management

as well as assumptions made by, and information currently available to,

When used in this document, the words

“anticipate,”“believe,”“should,”“project,”“estimate,”“expect,”“intend” and

similar expressions, as they relate to the Company or its management, are

intended to identify forward-looking statements.

Such statements reflect the

current view of the Company respecting future events and are subject to certain

risks, uncertainties, and assumptions, including the risks and uncertainties

noted throughout this document.

Although the Company has attempted to identify

important factors that could cause the actual results to differ materially,

there may be other factors that cause the forward statement not to come true

anticipated, believed, projected, expected, or intended.

Should one or more

these risks or uncertainties materialize, or should underlying assumptions

incorrect, actual results may differ materially from those described herein

anticipated, believed, projected, estimated, expected, or intended.

risk factors that may impact the Company’s revenues include the market

acceptance of competitive products, administrative practices of group purchasing

organizations;

obsolescence caused by new technologies, the possible

introduction by competitors of new products that claim to have many of the

advantages of UTMD’s products at lower prices, the timing and market acceptance

of UTMD’s own new product introductions, UTMD’s ability to efficiently and

responsively manufacture its products, including the possible effects of lack

performance of suppliers, success in gaining access to important global

distribution channels, budgetary constraints, the timing of regulatory approvals

for newly introduced products, regulatory intervention in current operations,

particularly including the August 9, 2004 lawsuit filed by the Justice

Department on behalf of the FDA against UTMD in the U.S.

District Court of

and third party reimbursement of health care costs of customers.

factors, in addition to the risks outlined in the previous paragraph that

impact the Company’s assets and liabilities, as well as cash flows, include:

risks inherent to companies manufacturing products used in healthcare, including

claims resulting from the improper use of devices and other product liability

defense of the Company’s intellectual property;

productive use of assets

in generating revenues, management of working capital, including inventory

levels required to meet delivery commitments at a minimum cost;

collection of accounts receivable.

risk factors that may affect non-operating income include:

the continuing

viability of the Company’s technology license agreements;

actual cash and

investment balances;

asset dispositions;

and acquisition activities that may

require external funding.

Total operating lease liabilities/ payments

Operating lease liabilities – current (included in Accrued Expenses)

Operating lease liabilities – long term

Present value adjustment

Maturities of lease liabilities were as follows:

( in thousands )

Maturities of lease liabilities were as follows:

( in thousands )

Year ending December 31,

(8) Distribution Agreement Purchase.

UTMD completed the purchase of exclusive U.S.

distribution rights for the Filshie Clip System from CooperSurgical, Inc.

(CSI) on February 1, 2019.

The $ 21,000 purchase price represented an identifiable intangible asset which is being straight-line amortized and recognized as part of G&A expenses over a remaining 3.08 year life as of September 30, 2020 of the prior CSI distribution agreement with Femcare.

(9) Earnings Per Share.

Basic earnings per share is calculated by dividing net income attributable to the common stockholders of the company by the weighted average number of common shares outstanding during the period.

Diluted earnings per share is calculated by assuming the exercise of stock options at the closing price of stock at the end of 3 rd quarter 2020.

The following table reconciles the numerator and the denominator used to calculate basic and diluted earnings per share:

( in thousands )

Three months ended

Nine months ended

September 30,

Weighted average shares, basic

Dilutive effect of stock options

Diluted shares

Earnings per share, basic

Earnings per share, diluted

(10) Subsequent Events.

UTMD has evaluated subsequent events through the date the financial statements were issued, and concluded there were no other events or transactions during this period that required recognition or disclosure in its financial statements.

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/A

Item 1. Financial Statements