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| | | | | 67 | | | |
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| | | | | 68 | | |
Costs
|
| |
Actual
2017 Expenses |
| |
Actual
2018 Expenses |
| |
Projected
2019 Expenses |
| |
Projected
2020 Expenses |
| ||||||||||||
Accounting and related professional services
|
| | | | 632,000 | | | | | | 674,000 | | | | | | 716,000 | | | | | | 723,000 | | |
Legal | | | | | 532,000 | | | | | | 174,000 | | | | | | 278,000 | | | | | | 281,000 | | |
Nasdaq Stock Market fees
|
| | | | 55,000 | | | | | | 55,000 | | | | | | 55,000 | | | | | | 55,000 | | |
Directors fees
|
| | | | 310,000 | | | | | | 310,000 | | | | | | 310,000 | | | | | | 310,000 | | |
Proxy and annual report printing, mailing, transfer agent
fees, public relations, stockholder communications, insurance and other miscellaneous costs |
| | | | 260,000 | | | | | | 293,000 | | | | | | 349,000 | | | | | | 352,000 | | |
Total | | | | | 1,789,000 | | | | | | 1,506,000 | | | | | | 1,708,000 | | | | | | 1,721,000 | | |
|
Hypothetical Scenario
|
| |
Result
|
|
| Mr. Williams is a registered stockholder who holds 7,000 shares of our common stock of record in his name at the effective time of the Transaction. Mr. Williams holds no other shares. | | | Mr. Williams will receive cash in the amount of $8,050, without interest, for the 7,000 shares of common stock held prior to the Reverse Stock Split. | |
| Ms. Walker holds 500 shares of our common stock in a brokerage account at the effective time of the Transaction. Ms. Walker holds no other shares. | | | We intend to treat stockholders holding common stock in “street name” in the same manner as stockholders whose shares are registered in their own names, and will ask banks, brokers and nominees holding these shares to effect the Transaction for their beneficial holders. Assuming that they do so, Ms. Walker will receive cash in the amount of $575, without interest, for the 500 shares of common stock held prior to the Reverse Stock | |
|
Hypothetical Scenario
|
| |
Result
|
|
| | | | Split. If the bank, broker or nominee holding Ms. Walker’s shares have different procedures, or do not provide us with sufficient information on Ms. Walker’s holdings, then Ms. Walker may or may not receive cash for her shares depending on the number of shares held by the bank, broker or other nominee, which is the actual record holder of her shares. | |
| Mr. Jackson holds 6,000 shares of our common stock of record in his name and 3,000 shares in a brokerage account at the effective time of the Transaction. Mr. Jackson holds no other shares. | | | Each of Mr. Jackson’s holdings will be treated separately. Accordingly, assuming the brokerage firm with whom Mr. Jackson holds his shares in “street name” effects the Transaction for its beneficial holders, Mr. Jackson will receive cash in the amount of $10,350, without interest, for the 9,000 shares of common stock held prior to the Reverse Stock Split. | |
| Ms. Davis holds 8,000 shares of our common stock in her name and 8,000 shares in a brokerage account at the effective time of the Transaction. | | | Ms. Davis will continue to hold 8,000 shares of common stock in her own name and 8,000 shares in a brokerage account after the Transaction. | |
| Mr. Martinez holds 4,000 shares of common stock in one brokerage account and 4,000 shares in another brokerage account at the effective time of the Transaction. | | | Each of Mr. Martinez’ holdings will be treated separately. Assuming each of the brokerage firms with whom Mr. Martinez holds his shares in “street name” effect the Transaction for their beneficial holders, Mr. Martinez will receive cash in the amount of $9,200, without interest, for the 8,000 shares of common stock held prior to the Reverse Stock Split. | |
| Ms. Taylor holds 4,000 shares in one record holder account and 4,000 shares in another identical record holder account at the effective time of the Transaction. | | | Ms. Taylor will continue to hold 8,000 shares of common stock after the Reverse Stock Split. | |
| Mr. Young and Ms. Young each hold 8,000 shares in separate, individual record holder accounts, but also hold 1,000 shares of common stock jointly in another record holder account. | | | Shares held in joint accounts will not be added to shares held individually in determining whether a stockholder will be a Cashed Out Stockholder or a Continuing Stockholder. Accordingly, Mr. Young and Ms. Young will each continue to own 8,000 shares of common stock after the Transaction in their separate accounts, but will receive $1,150, without interest, for the shares held in their joint account. | |
| | |
Fiscal Year Ended September 30
|
| |||||||||||||||||||||||||||
($ in thousands)
|
| |
2019
|
| |
2020
|
| |
2021
|
| |
2022
|
| |
2023
|
| |||||||||||||||
Sales
|
| | | $ | 42,754 | | | | | $ | 43,169 | | | | | $ | 43,841 | | | | | $ | 44,718 | | | | | $ | 45,612 | | |
EBITDA
|
| | | | 2,586 | | | | | | 2,525 | | | | | | 2,454 | | | | | | 2,523 | | | | | | 2,548 | | |
Net Income
|
| | | | 717 | | | | | | 758 | | | | | | 712 | | | | | | 761 | | | | | | 780 | | |
Capital Expenditures
|
| | | $ | 1,400 | | | | | $ | 1,400 | | | | | $ | 1,400 | | | | | $ | 1,400 | | | | | $ | 1,400 | | |
|
Cash and equivalents (as of December 31, 2018):
|
| |
$1.2 million
|
|
|
Debt, excluding $0.5 million consolidated Xcede note (as of December 31, 2018):
|
| |
$3.0 million
|
|
|
Adjusted TTM EBITDA, excluding amounts attributable to Xcede (as of December 31, 2018):
|
| |
$2.3 million
|
|
|
Shares outstanding (as of April 17, 2019):
|
| |
17,541,300
|
|
| | |
Low
|
| |
1st
Quartile |
| |
Volume
Weighted Average Price |
| |
3rd
Quartile |
| |
High
|
| |||||||||||||||
52-Week Dynasil Stock Price History
|
| | | $ | 0.72 | | | | | $ | 1.02 | | | | | $ | 1.13 | | | | | $ | 1.35 | | | | | $ | 1.60 | | |
6-Month Dynasil Stock Price History
|
| | | $ | 0.72 | | | | | $ | 0.96 | | | | | $ | 0.97 | | | | | $ | 1.08 | | | | | $ | 1.22 | | |
3-Month Dynasil Stock Price History
|
| | | $ | 0.91 | | | | | $ | 1.00 | | | | | $ | 1.05 | | | | | $ | 1.10 | | | | | $ | 1.22 | | |
1-Month Dynasil Stock Price History
|
| | | $ | 1.02 | | | | | $ | 1.09 | | | | | $ | 1.11 | | | | | $ | 1.16 | | | | | $ | 1.22 | | |
1-Week Dynasil Stock Price History
|
| | | $ | 1.07 | | | | | $ | 1.07 | | | | | $ | 1.10 | | | | | $ | 1.09 | | | | | $ | 1.12 | | |
Company
|
| |
Market
Capitalization ($MM) |
| |
Enterprise
Value ($MM) |
| |
EBITDA
($MM) |
| |
EBITDA
Margin |
| |
EV/EBITDA
|
| |||||||||||||||
Amphenol Corporation (NYSE:APH)
|
| | | | 29,849.3 | | | | | | 32,649.9 | | | | | | 2,028.6 | | | | | | 24% | | | | | | 16.1x | | |
Applied Optoelectronics, Inc. (NasdaqGM:AAOI)
|
| | | | 244.0 | | | | | | 276.9 | | | | | | 18.9 | | | | | | 7% | | | | | | 14.6x | | |
AVX Corporation (NYSE:AVX)
|
| | | | 2,714.3 | | | | | | 1,901.1 | | | | | | 406.5 | | | | | | 23% | | | | | | 4.7x | | |
Belden Inc. (NYSE:BDC)
|
| | | | 2,298.7 | | | | | | 3,479.7 | | | | | | 448.2 | | | | | | 17% | | | | | | 7.8x | | |
Coherent, Inc. (NasdaqGS:COHR)
|
| | | | 3,491.8 | | | | | | 3,189.2 | | | | | | 381.1 | | | | | | 22% | | | | | | 8.4x | | |
Corning Incorporated (NYSE:GLW)
|
| | | | 25,266.4 | | | | | | 32,234.4 | | | | | | 3,108.0 | | | | | | 27% | | | | | | 10.4x | | |
FLIR Systems, Inc. (NasdaqGS:FLIR)
|
| | | | 7,186.1 | | | | | | 7,671.1 | | | | | | 422.1 | | | | | | 24% | | | | | | 18.2x | | |
II-VI Incorporated (NasdaqGS:IIVI)
|
| | | | 2,362.7 | | | | | | 2,650.1 | | | | | | 240.5 | | | | | | 18% | | | | | | 11.0x | | |
Intermolecular, Inc. (NasdaqGS:IMI)
|
| | | | 54.7 | | | | | | 24.3 | | | | | | 0.8 | | | | | | 2% | | | | | | 31.6x | | |
LightPath Technologies, Inc. (NasdaqCM:LPTH)
|
| | | | 39.8 | | | | | | 43.1 | | | | | | 3.4 | | | | | | 10% | | | | | | 12.6x | | |
Luna Innovations Incorporated (NasdaqCM:LUNA)
|
| | | | 124.3 | | | | | | 82.6 | | | | | | 2.7 | | | | | | 6% | | | | | | 30.6x | | |
Materion Corporation (NYSE:MTRN)
|
| | | | 1,181.0 | | | | | | 1,128.5 | | | | | | 59.3 | | | | | | 5% | | | | | | 19.0x | | |
Mistras Group, Inc. (NYSE:MG)
|
| | | | 393.6 | | | | | | 671.8 | | | | | | 59.3 | | | | | | 8% | | | | | | 11.3x | | |
OSI Systems, Inc. (NasdaqGS:OSIS)
|
| | | | 1,846.9 | | | | | | 2,120.4 | | | | | | 158.6 | | | | | | 14% | | | | | | 13.4x | | |
Perceptron, Inc. (NasdaqGM:PRCP)
|
| | | | 71.2 | | | | | | 63.2 | | | | | | 7.5 | | | | | | 9% | | | | | | 8.4x | | |
Raytheon Company (NYSE:RTN)
|
| | | | 49,352.5 | | | | | | 53,399.5 | | | | | | 3,936.0 | | | | | | 14% | | | | | | 13.6x | | |
Rogers Corporation (NYSE:ROG)
|
| | | | 3,539.1 | | | | | | 3,600.5 | | | | | | 168.0 | | | | | | 19% | | | | | | 21.4x | | |
The LGL Group, Inc. (AMEX:LGL)
|
| | | | 35.3 | | | | | | 16.0 | | | | | | 1.9 | | | | | | 8% | | | | | | 8.3x | | |
Veeco Instruments Inc. (NasdaqGS:VECO)
|
| | | | 578.8 | | | | | | 605.7 | | | | | | 20.9 | | | | | | 4% | | | | | | 29.0x | | |
Vishay Intertechnology, Inc. (NYSE:VSH)
|
| | | | 2,821.4 | | | | | | 2,553.9 | | | | | | 631.6 | | | | | | 21% | | | | | | 4.0x | | |
Low
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 4.0x | | |
1st Quartile
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 8.4x | | |
Median
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 13.0x | | |
Mean
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 14.7x | | |
3rd Quartile
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 18.4x | | |
High
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | 31.6x | | |
Dynasil (NasdaqCM:DYSL)
|
| | | | 18.8 | | | | | | 20.6 | | | | | | 2.3 | | | | | | 6% | | | | | | 9.1x | | |
Public Company Multiples
|
| |
Low
|
| |
1st
Quartile |
| |
Median
|
| |
Mean
|
| |
3rd
Quartile |
| |
High
|
| ||||||||||||||||||
EV/TTM EBITDA
|
| | | | 4.0x | | | | | | 8.4x | | | | | | 13.0x | | | | | | 14.7x | | | | | | 18.4x | | | | | | 31.6x | | |
Implied Dynasil Equity Value per Share
|
| | | $ | 0.43 | | | | | $ | 1.00 | | | | | $ | 1.59 | | | | | $ | 1.82 | | | | | $ | 2.30 | | | | | $ | 4.03 | | |
Target
|
| |
Acquirer
|
| |
Announcement
Date |
| |
Status
|
| |
Percent
Sought |
| |
Transaction
Value ($MM) |
| |
Implied
Enterprise Value ($MM) |
| |
EBITDA
($MM) |
| |
EV/EBITDA
|
| ||||||||||||
CoAdna Holdings, Inc.
|
| |
II-VI Incorporated
|
| |
3/26/2018
|
| |
Closed
|
| |
100.0%
|
| | | | 44.9 | | | | | | 44.9 | | | | | | 1.7 | | | | | | 26.4x | | |
Anaren, Inc.
|
| |
TTM Technologies, Inc.
|
| |
12/4/2017
|
| |
Closed
|
| |
100.0%
|
| | | | 940.7 | | | | | | 940.7 | | | | | | 43.4 | | | | | | 21.7x | | |
ISP Optics Corp.
|
| |
LightPath Technologies, Inc.
|
| |
8/8/2016
|
| |
Closed
|
| |
100.0%
|
| | | | 18.0 | | | | | | 18.0 | | | | | | 3.1 | | | | | | 5.8x | | |
Rofin-Sinar Technologies
Inc. |
| |
Coherent, Inc.
|
| |
3/16/2016
|
| |
Closed
|
| |
100.0%
|
| | | | 782.5 | | | | | | 782.5 | | | | | | 73.3 | | | | | | 10.7x | | |
API Technologies Corp.
|
| | J.F. Lehman & Company, Inc. |
| |
2/29/2016
|
| |
Closed
|
| |
100.0%
|
| | | | 306.7 | | | | | | 306.7 | | | | | | 20.2 | | | | | | 15.2x | | |
Newport Corp.
|
| |
MKS Instruments, Inc.
|
| |
2/23/2016
|
| |
Closed
|
| |
100.0%
|
| | | | 1,003.4 | | | | | | 1,003.4 | | | | | | 77.2 | | | | | | 13.0x | | |
Low
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 5.8x | | |
1st Quartile
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 11.3x | | |
Median
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 14.1x | | |
Mean
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 15.5x | | |
3rd Quartile
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 20.1x | | |
High
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 26.4x | | |
Transaction Multiples
|
| |
Low
|
| |
1st
Quartile |
| |
Median
|
| |
Mean
|
| |
3rd
Quartile |
| |
High
|
| ||||||||||||||||||
EV/TTM EBITDA
|
| | | | 5.8x | | | | | | 11.3x | | | | | | 14.1x | | | | | | 15.5x | | | | | | 20.1x | | | | | | 26.4x | | |
Implied Dynasil Equity Value per Share
|
| | | $ | 0.66 | | | | | $ | 1.37 | | | | | $ | 1.74 | | | | | $ | 1.92 | | | | | $ | 2.52 | | | | | $ | 3.36 | | |
Premia Paid Statistics
|
| |
Low
|
| |
1st
Quartile |
| |
Median
|
| |
Mean
|
| |
3rd
Quartile |
| |
High
|
| ||||||||||||||||||
1-Day Prior
|
| | | | (12)% | | | | | | 17% | | | | | | 34% | | | | | | 43% | | | | | | 56% | | | | | | 251% | | |
1-Week Prior
|
| | | | (18)% | | | | | | 18% | | | | | | 34% | | | | | | 43% | | | | | | 56% | | | | | | 251% | | |
30-Days Prior
|
| | | | (17)% | | | | | | 19% | | | | | | 34% | | | | | | 44% | | | | | | 60% | | | | | | 198% | | |
Implied Dynasil Equity Value per Share
|
| |
Dynasil
Closing Price |
| |
Low
|
| |
1st
Quartile |
| |
Median
|
| |
Mean
|
| |
3rd
Quartile |
| |
High
|
| |||||||||||||||||||||
1-Day Prior (vs. April 30, 2019)
|
| | | $ | 1.07 | | | | | $ | 0.94 | | | | | $ | 1.26 | | | | | $ | 1.43 | | | | | $ | 1.53 | | | | | $ | 1.67 | | | | | $ | 3.76 | | |
1-Week Prior (vs. April 23, 2019)
|
| | | $ | 1.11 | | | | | $ | 0.91 | | | | | $ | 1.31 | | | | | $ | 1.49 | | | | | $ | 1.59 | | | | | $ | 1.73 | | | | | $ | 3.90 | | |
30-Days Prior (vs. March 29, 2019)
|
| | | $ | 1.02 | | | | | $ | 0.85 | | | | | $ | 1.21 | | | | | $ | 1.36 | | | | | $ | 1.47 | | | | | $ | 1.63 | | | | | $ | 3.04 | | |
| | |
Terminal EV/EBITDA Multiple
|
| |||||||||||||||||||||
WACC
|
| |
8.0x
|
| |
9.0x
|
| |
10.0x
|
| |
11.0x
|
| ||||||||||||
12.0%
|
| | | $ | 0.80 | | | | | $ | 0.90 | | | | | $ | 1.00 | | | | | $ | 1.10 | | |
13.0%
|
| | | $ | 0.78 | | | | | $ | 0.87 | | | | | $ | 0.97 | | | | | $ | 1.06 | | |
14.0%
|
| | | $ | 0.75 | | | | | $ | 0.84 | | | | | $ | 0.94 | | | | | $ | 1.03 | | |
| | |
Terminal EV/EBITDA Multiple
|
| |||||||||||||||||||||
Equity IRR
|
| |
8.0x
|
| |
9.0x
|
| |
10.0x
|
| |
11.0x
|
| ||||||||||||
16.0%
|
| | | $ | 1.02 | | | | | $ | 1.13 | | | | | $ | 1.24 | | | | | $ | 1.35 | | |
17.0%
|
| | | $ | 0.99 | | | | | $ | 1.10 | | | | | $ | 1.21 | | | | | $ | 1.31 | | |
18.0%
|
| | | $ | 0.97 | | | | | $ | 1.07 | | | | | $ | 1.17 | | | | | $ | 1.27 | | |
| | |
High
|
| |
Low
|
| ||||||
Fiscal Year Ended September 30, 2019 | | | | | | | | | | | | | |
First quarter
|
| | | $ | 1.30 | | | | | $ | 0.72 | | |
Second quarter
|
| | | $ | 1.15 | | | | | $ | 0.83 | | |
Third quarter (through May 13, 2019)
|
| | | $ | 1.22 | | | | | $ | 1.00 | | |
Fiscal Year Ended September 30, 2018 | | | | | | | | | | | | | |
First quarter
|
| | | $ | 2.06 | | | | | $ | 1.13 | | |
Second quarter
|
| | | $ | 1.42 | | | | | $ | 1.13 | | |
Third quarter
|
| | | $ | 1.54 | | | | | $ | 1.20 | | |
Fourth quarter
|
| | | $ | 1.60 | | | | | $ | 1.28 | | |
Fiscal Year Ended September 30, 2017 | | | | | | | | | | | | | |
First quarter
|
| | | $ | 1.43 | | | | | $ | 0.89 | | |
Second quarter
|
| | | $ | 1.50 | | | | | $ | 1.12 | | |
Third quarter
|
| | | $ | 1.48 | | | | | $ | 1.09 | | |
Fourth quarter
|
| | | $ | 1.35 | | | | | $ | 1.13 | | |
Name
|
| |
Age
|
| |
Position
|
| |
Date of Initial
Appointment |
|
Mr. Craig Dunham | | |
63
|
| | Director | | |
October 2004
|
|
Mr. Lawrence Fox | | |
75
|
| | Director | | |
February 2011
|
|
Dr. William Hagan | | |
68
|
| | Lead Director | | |
July 2012
|
|
Mr. David Kronfeld | | |
71
|
| | Director | | |
February 2010
|
|
Mr. Thomas Leonard | | |
64
|
| | Director | | |
February 2016
|
|
Mr. Alan Levine | | |
75
|
| | Director | | |
May 2013
|
|
Mr. Peter Sulick | | |
68
|
| |
Chairman, Chief Executive Officer & President
|
| |
June 2008
|
|
Mr. Robert Bowdring | | |
61
|
| | Chief Financial Officer | | |
February 2016
|
|
Name
|
| |
Number of
Shares Beneficially Owned(1) |
| |
Percentage
of Class |
| ||||||
Peter Sulick(5)
|
| | | | 3,358,730 | | | | | | 19.15% | | |
Craig Dunham(2)
|
| | | | 2,057,172 | | | | | | 11.73% | | |
The Gerald Entine 1988 Family Trust, 6747 Diversity Road, Middleton,
WI 53562(5) |
| | | | 1,396,325 | | | | | | 7.96% | | |
Lawrence Fox(3)(5)
|
| | | | 278,552 | | | | | | 1.59% | | |
David Kronfeld
|
| | | | 312,465 | | | | | | 1.78% | | |
Thomas Leonard
|
| | | | 219,070 | | | | | | 1.25% | | |
William Hagan(4)(5)
|
| | | | 183,771 | | | | | | * | | |
Alan Levine
|
| | | | 150,938 | | | | | | * | | |
Robert Bowdring
|
| | | | 67,558 | | | | | | * | | |
All Directors and Executive Officers as a group (8 persons)(1)
|
| | | | 6,628,256 | | | | | | 37.79% | | |
| | |
Fiscal Year Ended
September 30 |
| |
Six Months Ended
March 31 |
| ||||||||||||||||||
| | |
2018
|
| |
2017
|
| |
2019
|
| |
2018
|
| ||||||||||||
| | | | | | | | | | | | | | |
(unaudited)
|
| |||||||||
Consolidated Statements of Operations and Comprehensive Income (Loss):
|
| | | | | | | | | | | | | | | | | | | | | | | | |
Net revenue
|
| | | $ | 40,681,000 | | | | | $ | 37,284,000 | | | | | $ | 21,560,000 | | | | | $ | 19,443,000 | | |
Cost of revenue
|
| | | | 25,445,000 | | | | | | 23,386,000 | | | | | | 13,510,000 | | | | | | 11,958,000 | | |
Gross profit
|
| | | | 15,236,000 | | | | | | 13,898,000 | | | | | | 8,050,000 | | | | | | 7,485,000 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Sales and marketing
|
| | | | 1,336,000 | | | | | | 1,152,000 | | | | | | 875,000 | | | | | | 667,000 | | |
Research and development
|
| | | | 823,000 | | | | | | 903,000 | | | | | | 324,000 | | | | | | 524,000 | | |
General and administrative
|
| | | | 12,733,000 | | | | | | 12,365,000 | | | | | | 6,652,000 | | | | | | 6,418,000 | | |
(Gain) loss on sale of assets
|
| | | | — | | | | | | 60,000 | | | | | | — | | | | | | — | | |
Impairment of long-lived assets
|
| | | | 182,000 | | | | | | — | | | | | | — | | | | | | — | | |
Total operating expenses
|
| | | | 15,074,000 | | | | | | 14,480,000 | | | | | | 7,851,000 | | | | | | 7,609,000 | | |
Income (loss) from operations
|
| | | | 162,000 | | | | | | (582,000) | | | | | | 199,000 | | | | | | (124,000) | | |
Interest expense, net
|
| | | | 180,000 | | | | | | 212,000 | | | | | | 88,000 | | | | | | 88,000 | | |
Income (loss) before taxes
|
| | | | (18,000) | | | | | | (794,000) | | | | | | 111,000 | | | | | | (212,000) | | |
Income tax (benefit)
|
| | | | (1,608,000) | | | | | | (2,741,000) | | | | | | 141,000 | | | | | | (595,000) | | |
Net income (loss)
|
| | | | 1,590,000 | | | | | | 1,947,000 | | | | | | (30,000) | | | | | | 383,000 | | |
Less: Net income (loss) attributable to noncontrolling interest
|
| | | | (170,000) | | | | | | (246,000) | | | | | | (13,000) | | | | | | (108,000) | | |
Net income (loss) attributable to common stockholders
|
| | | $ | 1,760,000 | | | | | $ | 2,193,000 | | | | | $ | (17,000) | | | | | $ | 491,000 | | |
Net income (loss)
|
| | | $ | 1,590,000 | | | | | $ | 1,947,000 | | | | | | (30,000) | | | | | | 383,000 | | |
Other comprehensive income (loss): | | | | | | | | | | | | | | | | | | | | | | | | | |
Foreign currency translation
|
| | | | (161,000) | | | | | | 160,000 | | | | | | 4,000 | | | | | | 257,000 | | |
Total comprehensive income (loss)
|
| | | | 1,429,000 | | | | | | 2,107,000 | | | | | | (26,000) | | | | | | 640,000 | | |
Less: comprehensive income (loss) attributable to noncontrolling interest
|
| | | | (170,000) | | | | | | (246,000) | | | | | | (13,000) | | | | | | (108,000) | | |
Total comprehensive income (loss) attributable to common stockholders
|
| | | $ | 1,599,000 | | | | | $ | 2,353,000 | | | | | $ | (13,000) | | | | | $ | 748,000 | | |
Basic net income (loss) per common share
|
| | | $ | 0.10 | | | | | $ | 0.13 | | | | | $ | (0.00) | | | | | $ | 0.03 | | |
Diluted net income (loss) per common share
|
| | | $ | 0.10 | | | | | $ | 0.13 | | | | | $ | (0.00) | | | | | $ | 0.03 | | |
Weighted average shares outstanding | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 17,161,825 | | | | | | 16,909,412 | | | | | | 17,379,113 | | | | | | 17,090,530 | | |
Diluted
|
| | | | 17,171,523 | | | | | | 16,911,504 | | | | | | 17,379,113 | | | | | | 17,090,530 | | |
| | |
As of
September 30, 2018 |
| |
As of
March 31, 2019 |
| ||||||
| | | | | | | | |
(unaudited)
|
| |||
Consolidated Balance Sheet: | | | | | | | | | | | | | |
ASSETS
|
| | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 2,327,000 | | | | | $ | 350,000 | | |
Accounts receivable, net of allowances of $262,000 and $200,000 at September 30, 2018 and 2017, respectively
|
| | | | 4,069,000 | | | | | | 3,950,000 | | |
Costs in excess of billings and unbilled receivables
|
| | | | 1,215,000 | | | | | | 2,572,000 | | |
Inventories, net of reserves
|
| | | | 4,106,000 | | | | | | 4,525,000 | | |
Prepaid expenses and other current assets
|
| | | | 664,000 | | | | | | 847,000 | | |
Total current assets
|
| | | | 12,381,000 | | | | | | 12,244,000 | | |
Property, Plant and Equipment, net
|
| | | | 8,098,000 | | | | | | 8,020,000 | | |
Other Assets | | | | | | | | | | | | | |
Intangibles, net
|
| | | | 755,000 | | | | | | 701,000 | | |
Deferred tax asset, net
|
| | | | 4,333,000 | | | | | | 4,198,000 | | |
Goodwill
|
| | | | 5,900,000 | | | | | | 5,900,000 | | |
Security and other deposits
|
| | | | 65,000 | | | | | | 79,000 | | |
Total other assets
|
| | | | 11,053,000 | | | | | | 10,878,000 | | |
Total Assets
|
| | | $ | 31,532,000 | | | | | $ | 31,142,000 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
| | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | |
Equipment line of credit
|
| | | $ | — | | | | | $ | 484,000 | | |
Current portion of long-term debt
|
| | | | 1,246,000 | | | | | | 1,307,000 | | |
Capital lease obligations, current portion
|
| | | | 40,000 | | | | | | 33,000 | | |
Accounts payable
|
| | | | 2,355,000 | | | | | | 2,218,000 | | |
Deferred revenue
|
| | | | 253,000 | | | | | | 25,000 | | |
Accrued expenses and other liabilities
|
| | | | 2,803,000 | | | | | | 2,469,000 | | |
Total current liabilities
|
| | | | 6,697,000 | | | | | | 6,536,000 | | |
Long-term Liabilities | | | | | | | | | | | | | |
Long-term debt, net of current portion
|
| | | | 2,075,000 | | | | | | 1,660,000 | | |
Capital lease obligations, net of current portion
|
| | | | 52,000 | | | | | | 38,000 | | |
Deferred tax liability, net
|
| | | | 205,000 | | | | | | 205,000 | | |
Other long-term liabilities
|
| | | | 175,000 | | | | | | 180,000 | | |
Total long-term liabilities
|
| | | | 2,507,000 | | | | | | 2,083,000 | | |
Stockholders’ Equity | | | | | | | | | | | | | |
Common Stock, $0.0005 par value, 40,000,000 shares authorized, 18,152,074 and 17,893,763 shares issued, 17,341,914 and 17,083,603 shares outstanding at September 30, 2018 and 2017, respectively
|
| | | | 9,000 | | | | | | 9,000 | | |
Additional paid in capital
|
| | | | 21,865,000 | | | | | | 22,060,000 | | |
Accumulated other comprehensive income (loss)
|
| | | | (700,000 | | | | | | (696,000) | | |
Retained earnings (accumulated deficit)
|
| | | | 841,000 | | | | | | 862,000 | | |
Less 810,160 shares of treasury stock – at cost
|
| | | | (986,000 | | | | | | (986,000) | | |
Total Dynasil stockholders’ equity
|
| | | | 21,029,000 | | | | | | 21,249,000 | | |
Noncontrolling interest
|
| | | | 1,299,000 | | | | | | 1,274,000 | | |
Total stockholders’ equity
|
| | | | 22,328,000 | | | | | | 22,523,000 | | |
Total Liabilities and Stockholders’ Equity
|
| | | $ | 31,532,000 | | | | | $ | 31,142,000 | | |
|
| | |
As of March 31, 2019
|
| |||||||||||||||
| | |
2019
|
| |
Pro Forma
Adjustments |
| |
As Adjusted
|
| |||||||||
ASSETS
|
| | | | | | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | | 350,000 | | | | | | (215,000)(1) | | | | | | 135,000 | | |
Accounts receivable, net of allowances of $262,000 and $200,000 at September 30, 2018 and 2017, respectively
|
| | | | 3,950,000 | | | | | | | | | | | | 3,950,000 | | |
Contract Assets
|
| | | | 19,000 | | | | | | | | | | | | 19,000 | | |
Costs in excess of billings and unbilled receivables
|
| | | | 2,553,000 | | | | | | | | | | | | 2,553,000 | | |
Inventories, net of reserves
|
| | | | 4,525,000 | | | | | | | | | | | | 4,525,000 | | |
Prepaid expenses and other current assets
|
| | | | 847,000 | | | | | | | | | | | | 847,000 | | |
Total current assets
|
| | | | 12,244,000 | | | | | | (215,000) | | | | | | 12,029,000 | | |
Property, Plant and Equipment, net
|
| | | | 8,020,000 | | | | | | | | | | | | 8,020,000 | | |
Other Assets | | | | | | | | | | | | | | | | | | | |
Intangibles, net
|
| | | | 701,000 | | | | | | | | | | | | 701,000 | | |
Deferred tax asset, net
|
| | | | 4,198,000 | | | | | | | | | | | | 4,198,000 | | |
Goodwill
|
| | | | 5,900,000 | | | | | | | | | | | | 5,900,000 | | |
Long term contract assets
|
| | | | 26,000 | | | | | | | | | | | | 26,000 | | |
Security and other deposits
|
| | | | 53,000 | | | | | | | | | | | | 53,000 | | |
Total other assets
|
| | | | 10,878,000 | | | | | | | | | | | | 10,878,000 | | |
Total Assets
|
| | | | 31,142,000 | | | | | | (215,000) | | | | | | 30,927,000 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
| | | | | | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | | | | | | | |
Equipment line of credit
|
| | | | 484,000 | | | | | | | | | | | | 484,000 | | |
Current portion of long-term debt
|
| | | | 1,307,000 | | | | | | 2,100,000(2) | | | | | | 3,407,000 | | |
Capital lease obligations, current portion
|
| | | | 33,000 | | | | | | | | | | | | 33,000 | | |
Accounts payable
|
| | | | 2,218,000 | | | | | | | | | | | | 2,218,000 | | |
Contract Liabilities
|
| | | | 25,000 | | | | | | | | | | | | 25,000 | | |
Accrued expenses and other liabilities
|
| | | | 2,469,000 | | | | | | | | | | | | 2,469,000 | | |
Total current liabilities
|
| | | | 6,536,000 | | | | | | 2,100,000 | | | | | | 8,636,000 | | |
Long-term Liabilities | | | | | | | | | | | | | | | | | | | |
Long-term debt, net of current portion
|
| | | | 1,660,000 | | | | | | | | | | | | 1,660,000 | | |
Capital lease obligations, net of current portion
|
| | | | 38,000 | | | | | | | | | | | | 38,000 | | |
Deferred tax liability, net
|
| | | | 205,000 | | | | | | | | | | | | 205,000 | | |
Other long-term liabilities
|
| | | | 180,000 | | | | | | | | | | | | 180,000 | | |
Total long-term liabilities
|
| | | | 2,083,000 | | | | | | | | | | | | 2,083,000 | | |
Stockholders’ Equity | | | | | | | | | | | | | | | | | | | |
Common Stock, $0.0005 par value, 40,000,000 shares authorized, 18,152,074 and 17,893,763 shares issued, 17,341,914 and 17,083,603 shares outstanding at September 30, 2018 and 2017, respectively
|
| | | | 9,000 | | | | | | | | | | | | 9,000 | | |
Additional paid in capital
|
| | | | 22,060,000 | | | | | | | | | | | | 22,060,000 | | |
Accumulated other comprehensive income (loss)
|
| | | | (696,000) | | | | | | | | | | | | (696,000) | | |
Retained earnings (accumulated deficit)
|
| | | | 862,000 | | | | | | (650,000)(3) | | | | | | 212,000 | | |
Less 810,160 shares of treasury stock – at cost
|
| | | | (986,000) | | | | | | (1,665,000)(2) | | | | | | (2,651,000) | | |
Total Dynasil stockholders’ equity
|
| | | | 21,249,000 | | | | | | (2,315,000) | | | | | | 18,934,000 | | |
Noncontrolling interest
|
| | | | 1,274,000 | | | | | | | | | | | | 1,274,000 | | |
Total stockholders’ equity
|
| | | | 22,523,000 | | | | | | | | | | | | 20,208,000 | | |
Total Liabilities and Stockholders’ Equity
|
| | | | 31,142,000 | | | | | | (215,000) | | | | | | 30,927,000 | | |
|
| | |
For the Six Months Ended
March 31, 2019 |
| |||||||||||||||
| | |
Historical
|
| |
Pro Forma
Adjustments |
| |
As Adjusted
|
| |||||||||
Net revenue
|
| | | | 21,560,000 | | | | | | | | | | | | 21,560,000 | | |
Cost of revenue
|
| | | | 13,510,000 | | | | | | | | | | | | 13,510,000 | | |
Gross profit
|
| | | | 8,050,000 | | | | | | | | | | | | 8,050,000 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | |
Sales and marketing
|
| | | | 875,000 | | | | | | | | | | | | 875,000 | | |
Research and development
|
| | | | 324,000 | | | | | | | | | | | | 324,000 | | |
General and administrative
|
| | | | 6,652,000 | | | | | | (453,000)(4) | | | | | | 6,199,000 | | |
(Gain) loss on sale of assets
|
| | | | | | | | | | | | | | | | | | |
Impairment of long-lived assets
|
| | | | | | | | | | | | | | | | | | |
Total operating expenses
|
| | | | 7,851,000 | | | | | | (453,000) | | | | | | 7,398,000 | | |
Income (loss) from operations
|
| | | | 199,000 | | | | | | 453,000 | | | | | | 652,000 | | |
Interest expense, net
|
| | | | 88,000 | | | | | | 58,000(5) | | | | | | 146,000 | | |
Income (loss) before taxes
|
| | | | 111,000 | | | | | | 395,000 | | | | | | 506,000 | | |
Income tax (benefit)
|
| | | | 141,000 | | | | | | 141,000(6) | | | | | | 282,000 | | |
Net income (loss)
|
| | | | (30,000) | | | | | | 254,000 | | | | | | 224,000 | | |
Less: Net income (loss) attributable to noncontrolling
interest |
| | | | (13,000) | | | | | | | | | | | | (13,000) | | |
Net income (loss) attributable to common stockholders
|
| | | | (17,000) | | | | | | 254,000 | | | | | | 237,000 | | |
Net income (loss)
|
| | | | (30,000) | | | | | | 254,000 | | | | | | 224,000 | | |
Other comprehensive income (loss): | | | | | | | | | | | | | | | | | | | |
Foreign currency translation
|
| | | | 4,000 | | | | | | | | | | | | (4,000) | | |
Total comprehensive income (loss)
|
| | | | (34,000) | | | | | | 254,000 | | | | | | 220,000 | | |
Less: comprehensive income (loss) attributable to noncontrolling interest
|
| | | | (13,000) | | | | | | | | | | | | (13,000) | | |
Total comprehensive income (loss) attributable to common stockholders
|
| | | | (21,000) | | | | | | 254,000 | | | | | | 233,000 | | |
Basic net income (loss) per common share
|
| | | | (0) | | | | | | | | | | | | 0.01 | | |
Diluted net income (loss) per common share
|
| | | | (0) | | | | | | | | | | | | 0.01 | | |
Weighted average shares outstanding | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 17,379,113 | | | | | | (1,448,052)(7) | | | | | | 15,931,061 | | |
Diluted
|
| | | | 17,379,113 | | | | | | (1,448,052)(7) | | | | | | 15,931,061 | | |
| | |
Fiscal Year Ended
September 30, 2018 |
| |||||||||||||||
| | |
2018
|
| |
Pro Forma
Adjustments |
| |
As Adjusted
|
| |||||||||
Net revenue
|
| | | $ | 40,681,000 | | | | | | | | | | | $ | 40,681,000 | | |
Cost of revenue
|
| | | | 25,445,000 | | | | | | | | | | | | 25,445,000 | | |
Gross profit
|
| | | | 15,236,000 | | | | | | | | | | | | 15,236,000 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | |
Sales and marketing
|
| | | | 1,336,000 | | | | | | | | | | | | 1,336,000 | | |
Research and development
|
| | | | 823,000 | | | | | | | | | | | | 823,000 | | |
General and administrative
|
| | | | 12,733,000 | | | | | | (861,000)(8) | | | | | | 11,872,000 | | |
(Gain) loss on sale of assets
|
| | | | | | | | | | | | | | | | | | |
Impairment of long-lived assets
|
| | | | 182,000 | | | | | | | | | | | | 182,000 | | |
Total operating expenses
|
| | | | 15,074,000 | | | | | | (861,000) | | | | | | 14,213,000 | | |
Income (loss) from operations
|
| | | | 162,000 | | | | | | 861,000 | | | | | | 1,023,000 | | |
Interest expense, net
|
| | | | 180,000 | | | | | | 116,000(9) | | | | | | 296,000 | | |
Income (loss) before taxes
|
| | | | (18,000) | | | | | | 745,000 | | | | | | 727,000 | | |
Income tax (benefit)
|
| | | | (1,608,000) | | | | | | 194,000(6) | | | | | | (1,414,000) | | |
Net income (loss)
|
| | | | 1,590,000 | | | | | | 551,000 | | | | | | 2,141,000 | | |
Less: Net income (loss) attributable to noncontrolling interest
|
| | | | (170,000) | | | | | | | | | | | | (170,000) | | |
Net income (loss) attributable to common stockholders
|
| | | | 1,760,000 | | | | | | 551,000 | | | | | | 2,311,000 | | |
Net income (loss)
|
| | | | 1,590,000 | | | | | | 551,000 | | | | | | 2,141,000 | | |
Other comprehensive income (loss): | | | | | | | | | | | | | | | | | | | |
Foreign currency translation
|
| | | | (161,000) | | | | | | | | | | | | (161,000) | | |
Total comprehensive income (loss)
|
| | | | 1,429,000 | | | | | | 551,000 | | | | | | 1,980,000 | | |
Less: comprehensive income (loss) attributable to noncontrolling interest
|
| | | | (170,000) | | | | | | | | | | | | (170,000) | | |
Total comprehensive income (loss) attributable to common stockholders
|
| | | | 1,599,000 | | | | | | 551,000 | | | | | | 2,150,000 | | |
Basic net income (loss) per common share
|
| | | | 0.10 | | | | | | | | | | | | 0.14 | | |
Diluted net income (loss) per common share
|
| | | | 0.10 | | | | | | | | | | | | 0.14 | | |
Weighted average shares outstanding | | | | | | | | | | | | | | | | | | | |
Basic
|
| | | | 17,161,825 | | | | | | (1,448,000)(7) | | | | | | 15,713,825 | | |
Diluted
|
| | | | 17,171,523 | | | | | | (1,448,000)(7) | | | | | | 15,723,523 | | |
| For | | | Against | | | Abstain | |
| ☐ | | | ☐ | | | ☐ | |
| For | | | Against | | | Abstain | |
| ☐ | | | ☐ | | | ☐ | |
| For | | | Against | | | Abstain | |
| ☐ | | | ☐ | | | ☐ | |