1-10799
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73-1351610
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(Commission file Number)
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(IRS Employer Identification No.)
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1221 E. Houston, Broken Arrow Oklahoma
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74012
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(Address of Principal Executive Offices)
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(Zip Code)
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□
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Written Communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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□
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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□
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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□
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Pre-commencement communications pursuant to Rule 13e-4© under the Exchange Act (17 CFR 240.13e-4(c))
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Exhibit 99.1
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Press Release dated May 14, 2019 issued by the Company.
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||
SIGNATURES
|
ADDVANTAGE TECHNOLOGIES GROUP, INC.
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||
Date: May 14, 2019
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||
By: /s/ Scott Francis
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||
Scott Francis
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||
Vice-President & Chief Accounting Officer
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||
Exhibit Number
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Description
|
99.1
|
Press Release dated May 14, 2019 issued by the Company.
|
For further information
|
KCSA Strategic Communications
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Company Contact:
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Elizabeth Barker
|
Scott Francis
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(212) 896-1203
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(918) 251-9121
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ebarker@kcsa.com
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Three Months Ended March 31,
|
Six Months Ended March 31,
|
|||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Sales
|
$
|
17,273,103
|
$
|
11,649,528
|
$
|
28,545,389
|
$
|
23,934,293
|
||||||||
Cost of sales
|
13,709,089
|
8,304,463
|
22,139,813
|
17,208,073
|
||||||||||||
Gross profit
|
3,564,014
|
3,345,065
|
6,405,576
|
6,726,220
|
||||||||||||
Operating, selling, general and administrative expenses
|
4,767,843
|
3,429,282
|
8,564,523
|
7,076,105
|
||||||||||||
Loss from operations
|
(1,203,829
|
)
|
(84,217
|
)
|
(2,158,947
|
)
|
(349,885
|
)
|
||||||||
Other income (expense):
|
||||||||||||||||
Income (loss) from equity method investment
|
55,000
|
(258,558
|
)
|
55,000
|
(258,558
|
)
|
||||||||||
Other expense
|
(43,259
|
)
|
‒
|
(43,259
|
)
|
‒
|
||||||||||
Interest expense
|
(19,775
|
)
|
(45,922
|
)
|
(44,638
|
)
|
(142,016
|
)
|
||||||||
Total other expense, net
|
(8,034
|
)
|
(304,480
|
)
|
(32,897
|
)
|
(400,574
|
)
|
||||||||
Loss before income taxes
|
(1,211,863
|
)
|
(388,697
|
)
|
(2,191,844
|
)
|
(750,459
|
)
|
||||||||
Provision (benefit) for income taxes
|
4,000
|
(129,000
|
)
|
63,000
|
216,000
|
|||||||||||
Net loss
|
$
|
(1,215,863
|
)
|
$
|
(259,697
|
)
|
$
|
(2,254,844
|
)
|
$
|
(966,459
|
)
|
||||
Loss per share:
|
||||||||||||||||
Basic
|
$
|
(0.12
|
)
|
$
|
(0.03
|
)
|
$
|
(0.22
|
)
|
$
|
(0.09
|
)
|
||||
Diluted
|
$
|
(0.12
|
)
|
$
|
(0.03
|
)
|
$
|
(0.22
|
)
|
$
|
(0.09
|
)
|
||||
Shares used in per share calculation:
|
||||||||||||||||
Basic
|
10,361,292
|
10,252,712
|
10,361,292
|
10,239,353
|
||||||||||||
Diluted
|
10,361,292
|
10,252,712
|
10,361,292
|
10,239,353
|
Three Months Ended March 31, 2019
|
||||||||||||||||
Wireless
|
Telco
|
Cable TV
|
Total
|
|||||||||||||
Income (loss) from operations
|
$
|
(1,114,326
|
)
|
$
|
25,977
|
$
|
(115,480
|
)
|
$
|
(1,203,829
|
)
|
|||||
Depreciation
|
84,333
|
30,253
|
19,723
|
134,309
|
||||||||||||
Amortization
|
6,100
|
266,775
|
‒
|
272,875
|
||||||||||||
Adjusted EBITDA (a)
|
$
|
(1,023,893
|
)
|
$
|
323,005
|
$
|
(95,757
|
)
|
$
|
(796,645
|
)
|
(a)
|
The Wireless segment includes acquisition expenses of $0.2 million related to the acquisition of Fulton and Mill City.
|
Three Months Ended March 31, 2018
|
||||||||||||||||
Wireless
|
Telco
|
Cable TV
|
Total
|
|||||||||||||
Income (loss) from operations
|
$
|
‒
|
$
|
(380,370
|
) |
$
|
296,153 |
$
|
(84,217
|
)
|
||||||
Depreciation
|
‒
|
32,549
|
66,660
|
99,209
|
||||||||||||
Amortization
|
‒
|
313,311
|
‒
|
313,311
|
||||||||||||
Adjusted EBITDA (a)
|
$
|
‒
|
$
|
(34,510
|
) |
$
|
362,813
|
$
|
328,303
|
Six Months Ended March 31, 2019
|
||||||||||||||||
Wireless
|
Telco
|
Cable TV
|
Total
|
|||||||||||||
Loss from operations
|
$
|
(1,114,326
|
)
|
$
|
(608,760
|
)
|
$
|
(435,861
|
)
|
$
|
(2,158,947
|
)
|
||||
Depreciation
|
84,333
|
61,949
|
99,744
|
246,026
|
||||||||||||
Amortization
|
6,100
|
533,550
|
‒
|
539,650
|
||||||||||||
Adjusted EBITDA (a)
|
$
|
(1,023,893
|
)
|
$
|
(13,261
|
)
|
$
|
(336,117
|
)
|
$
|
(1,373,271
|
)
|
||||
(a)
|
The Wireless segment includes acquisition expenses of $0.2 million related to the acquisition of Fulton and Mill City.
|
Six Months Ended March 31, 2018
|
||||||||||||||||
Wireless
|
Telco
|
Cable TV
|
Total
|
|||||||||||||
Income (loss) from operations
|
$
|
‒
|
$
|
(457,538
|
)
|
$
|
107,653
|
$
|
(349,885
|
)
|
||||||
Depreciation
|
‒
|
63,745
|
133,607
|
197,352
|
||||||||||||
Amortization
|
‒
|
626,622
|
‒
|
626,622
|
||||||||||||
Adjusted EBITDA (a)
|
$
|
‒
|
$
|
232,829
|
$
|
241,260
|
$
|
474,089
|
March 31,
2019
|
September 30,
2018
|
|||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
1,371,501
|
$
|
3,129,280
|
||||
Restricted cash
|
106,447
|
‒
|
||||||
Accounts receivable, net of allowance for doubtful accounts of
$150,000
|
6,727,126
|
4,400,868
|
||||||
Unbilled revenue
|
1,414,992
|
‒
|
||||||
Income tax receivable
|
108,746
|
178,766
|
||||||
Inventories, net of allowance for excess and obsolete
|
||||||||
inventory of $4,850,000 and $4,965,000, respectively
|
19,404,567
|
18,888,042
|
||||||
Prepaid expenses
|
772,621
|
264,757
|
||||||
Other current assets
|
258,209
|
‒
|
||||||
Assets held for sale
|
‒
|
3,666,753
|
||||||
Total current assets
|
30,164,209
|
30,528,466
|
||||||
Property and equipment, at cost
|
6,456,855
|
6,294,152
|
||||||
Less: Accumulated depreciation
|
(3,992,053
|
)
|
(4,276,024
|
)
|
||||
Net property and equipment
|
2,464,802
|
2,018,128
|
||||||
Investment in and loans to equity method investee
|
‒
|
49,000
|
||||||
Intangibles, net of accumulated amortization
|
6,548,748
|
6,844,398
|
||||||
Goodwill
|
4,836,472
|
4,820,185
|
||||||
Other assets
|
217,461
|
134,443
|
||||||
Total assets
|
$
|
44,231,692
|
$
|
44,394,620
|
||||
Liabilities and Shareholders’ Equity
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
6,612,708
|
$
|
4,657,188
|
||||
Accrued expenses
|
1,596,386
|
1,150,010
|
||||||
Notes payable – current portion
|
750,000
|
2,594,185
|
||||||
Deferred gain – current portion
|
194,152
|
‒
|
||||||
Other current liabilities
|
739,887
|
664,374
|
||||||
Total current liabilities
|
9,893,133
|
9,065,757
|
||||||
Deferred gain, less current portion
|
1,701,243
|
‒
|
||||||
Other liabilities
|
228,820
|
801,612
|
||||||
Total liabilities
|
11,823,196
|
9,867,369
|
||||||
Shareholders’ equity:
|
||||||||
Common stock, $.01 par value; 30,000,000 shares authorized;
10,861,950 and 10,806,803 shares issued, respectively;
10,361,292 and 10,306,145 shares outstanding, respectively
|
108,620
|
108,068
|
||||||
Paid in capital
|
(4,462,806
|
)
|
(4,598,343
|
)
|
||||
Retained earnings
|
37,762,696
|
40,017,540
|
||||||
Total shareholders’ equity before treasury stock
|
33,408,510
|
35,527,265
|
||||||
Less: Treasury stock, 500,658 shares, at cost
|
(1,000,014
|
)
|
(1,000,014
|
)
|
||||
Total shareholders’ equity
|
32,408,496
|
34,527,251
|
||||||
Total liabilities and shareholders’ equity
|
$
|
44,231,692
|
$
|
44,394,620
|