1-10799
|
73-1351610
|
(Commission file Number)
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(IRS Employer Identification No.)
|
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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□
|
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 August 13, 2019 issued by the Company.
|
||
SIGNATURES
|
ADDVANTAGE TECHNOLOGIES GROUP, INC.
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||
Date: August 13, 2019
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||
By: /s/ Scott Francis
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||
Scott Francis
|
||
Vice-President & Chief Accounting Officer
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||
Exhibit Number
|
Description
|
99.1
|
Press Release dated August 13, 2019 issued by the Company.
|
For further information
|
KCSA Strategic Communications
|
Company Contact:
|
Elizabeth Barker
|
Scott Francis
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(212) 896-1203
|
(918) 251-9121
|
ebarker@kcsa.com
|
Three Months Ended June 30,
|
Nine Months Ended June 30,
|
|||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Sales
|
$
|
17,559,315
|
$
|
7,674,997
|
$
|
37,259,352
|
$
|
21,137,787
|
||||||||
Cost of sales
|
14,248,680
|
5,681,646
|
29,953,292
|
15,158,725
|
||||||||||||
Gross profit
|
3,310,635
|
1,993,351
|
7,306,060
|
5,979,062
|
||||||||||||
Operating, selling, general and administrative expenses
|
3,315,268
|
2,661,493
|
9,665,151
|
7,715,354
|
||||||||||||
Loss from operations
|
(4,633
|
)
|
(668,142
|
)
|
(2,359,091
|
)
|
(1,736,292
|
)
|
||||||||
Other income (expense):
|
||||||||||||||||
Income (loss) from equity method investment
|
20,005
|
‒
|
75,005
|
(258,558
|
)
|
|||||||||||
Other expense
|
(89,708
|
)
|
–
|
(132,967
|
)
|
–
|
||||||||||
Interest expense
|
(25,860
|
)
|
(39,571
|
)
|
(68,612
|
)
|
(171,017
|
)
|
||||||||
Total other expense, net
|
(95,563
|
)
|
(39,571
|
)
|
(126,574
|
)
|
(429,575
|
)
|
||||||||
Loss before income taxes
|
(100,196
|
)
|
(707,713
|
)
|
(2,485,665
|
)
|
(2,165,867
|
)
|
||||||||
Benefit for income taxes
|
(42,000
|
)
|
(359,000
|
)
|
(13,000
|
)
|
(169,000
|
)
|
||||||||
Loss from continuing operations
|
(58,196
|
)
|
(348,713
|
)
|
(2,472,665
|
)
|
(1,996,867
|
)
|
||||||||
Discontinued operations, net of tax
|
(1,426,969
|
)
|
(1,157,986
|
)
|
(1,267,344
|
)
|
(476,291
|
)
|
||||||||
Net loss
|
$
|
(1,485,165
|
)
|
$
|
(1,506,699
|
)
|
$
|
(3,740,009
|
)
|
$
|
(2,473,158
|
)
|
||||
Loss per share:
|
||||||||||||||||
Basic
|
||||||||||||||||
Continuing operations
|
$
|
(0.00
|
)
|
$
|
(0.03
|
)
|
$
|
(0.24
|
)
|
$
|
(0.19
|
)
|
||||
Discontinued operations
|
(0.14
|
)
|
(0.12
|
)
|
(0.12
|
)
|
(0.05
|
)
|
||||||||
Net loss
|
$
|
(0.14
|
)
|
$
|
(0.15
|
)
|
$
|
(0.36
|
)
|
$
|
(0.24
|
)
|
||||
Diluted
|
||||||||||||||||
Continuing operations
|
$
|
(0.00
|
)
|
$
|
(0.03
|
)
|
$
|
(0.24
|
)
|
$
|
(0.19
|
)
|
||||
Discontinued operations
|
(0.14
|
)
|
(0.12
|
)
|
(0.12
|
)
|
(0.05
|
)
|
||||||||
Net loss
|
$
|
(0.14
|
)
|
$
|
(0.15
|
)
|
$
|
(0.36
|
)
|
$
|
(0.24
|
)
|
||||
Shares used in per share calculation:
|
||||||||||||||||
Basic
|
10,361,292
|
10,306,145
|
10,361,292
|
10,261,617
|
||||||||||||
Diluted
|
10,361,292
|
10,306,145
|
10,361,292
|
10,261,617
|
Three Months Ended June 30, 2019
|
||||||||||||
Wireless
|
Telco
|
Total
|
||||||||||
Income (loss) from operations
|
$
|
(147,463
|
)
|
$
|
142,830
|
$
|
(4,633
|
)
|
||||
Stock compensation expense
|
12,166
|
34,436
|
46,602
|
|||||||||
Depreciation
|
80,076
|
29,615
|
109,691
|
|||||||||
Amortization
|
6,100
|
266,775
|
272,875
|
|||||||||
Adjusted EBITDA
|
$
|
(49,121
|
)
|
$
|
473,656
|
$
|
424,535
|
Three Months Ended June 30, 2018
|
||||||||||||
Wireless
|
Telco
|
Total
|
||||||||||
Loss from operations
|
$
|
‒
|
|
$
|
(668,142
|
) |
$
|
(668,142
|
)
|
|||
Stock compensation expense
|
‒
|
46,782
|
46,782
|
|||||||||
Depreciation
|
‒
|
32,583
|
32,583
|
|||||||||
Amortization
|
‒
|
313,311
|
313,311
|
|||||||||
Adjusted EBITDA
|
$
|
‒
|
|
$
|
(275,466
|
) |
$
|
(275,466
|
) |
Nine Months Ended June 30, 2019
|
||||||||||||
Wireless
|
Telco
|
Total
|
||||||||||
Loss from operations
|
$
|
(1,334,215
|
)
|
$
|
(1,024,876
|
)
|
$
|
(2,359,091
|
)
|
|||
Stock compensation expense
|
31,628
|
121,063
|
152,691
|
|||||||||
Depreciation
|
159,604
|
97,524
|
257,128
|
|||||||||
Amortization
|
12,200
|
800,325
|
812,525
|
|||||||||
Adjusted EBITDA (a)
|
$
|
(1,130,783
|
)
|
$
|
(5,964
|
)
|
$
|
(1,136,747
|
)
|
|||
(a)
|
The Wireless segment includes acquisition expenses of $0.2 million related to the acquisition of Fulton and Mill City.
|
Nine Months Ended June 30, 2018
|
||||||||||||
Wireless
|
Telco
|
Total
|
||||||||||
Loss from operations
|
$
|
‒
|
|
$
|
(1,736,292
|
)
|
$
|
(1,736,292
|
)
|
|||
Stock compensation expense
|
‒
|
122,142
|
122,142
|
|||||||||
Depreciation
|
‒
|
96,055
|
96,055
|
|||||||||
Amortization
|
‒
|
939,933
|
939,933
|
|||||||||
Adjusted EBITDA (a)
|
$
|
‒
|
|
$
|
(578,162
|
)
|
$
|
(578,162
|
)
|
|||
June 30,
2019
|
September 30,
2018
|
|||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
2,672,640
|
$
|
3,129,280
|
||||
Restricted cash
|
260,802
|
‒
|
||||||
Accounts receivable, net of allowance for doubtful accounts of
$150,000
|
5,481,478
|
2,578,998
|
||||||
Unbilled revenue
|
2,272,381
|
‒
|
||||||
Other receivable
|
753,199
|
‒
|
||||||
Promissory note – current
|
1,400,000
|
‒
|
||||||
Income tax receivable
|
174,290
|
178,766
|
||||||
Inventories, net of allowance for excess and obsolete
|
||||||||
inventory of $800,000 and $815,000, respectively
|
9,094,002
|
7,462,491
|
||||||
Prepaid expenses
|
793,992
|
253,405
|
||||||
Other current assets
|
171,695
|
‒
|
||||||
Current assets of discontinued operations
|
‒
|
16,925,526
|
||||||
Total current assets
|
23,074,479
|
30,528,466
|
||||||
Property and equipment, at cost:
|
||||||||
Machinery and equipment
|
2,419,740
|
1,084,024
|
||||||
Leasehold improvements
|
190,984
|
190,984
|
||||||
Total property and equipment, at cost
|
2,610,724
|
1,275,008
|
||||||
Less: Accumulated depreciation
|
(813,978
|
)
|
(773,312
|
)
|
||||
Net property and equipment
|
1,796,746
|
501,696
|
||||||
Promissory note – noncurrent
|
4,975,000
|
‒
|
||||||
Investment in and loans to equity method investee
|
‒
|
49,000
|
||||||
Intangibles, net of accumulated amortization
|
6,275,873
|
6,844,398
|
||||||
Goodwill
|
4,836,472
|
4,820,185
|
||||||
Other assets
|
210,854
|
125,903
|
||||||
Assets of discontinued operations
|
‒
|
1,524,972
|
||||||
Total assets
|
$
|
41,169,424
|
$
|
44,394,620
|
June 30,
2019
|
September 30,
2018
|
|||||||
Liabilities and Shareholders’ Equity
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
6,856,372
|
$
|
3,300,388
|
||||
Accrued expenses
|
1,644,337
|
711,936
|
||||||
Bank revolving line of credit
|
750,000
|
‒
|
||||||
Notes payable – current portion
|
‒
|
1,996,279
|
||||||
Other current liabilities
|
748,850
|
664,374
|
||||||
Current liabilities of discontinued operations
|
‒
|
2,392,780
|
||||||
Total current liabilities
|
9,999,559
|
9,065,757
|
||||||
Other liabilities
|
203,682
|
801,612
|
||||||
Total liabilities
|
10,203,241
|
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
|
(4,419,954
|
)
|
(4,598,343
|
)
|
||||
Retained earnings
|
36,277,531
|
40,017,540
|
||||||
Total shareholders’ equity before treasury stock
|
31,966,197
|
35,527,265
|
||||||
Less: Treasury stock, 500,658 shares, at cost
|
(1,000,014
|
)
|
(1,000,014
|
)
|
||||
Total shareholders’ equity
|
30,966,183
|
34,527,251
|
||||||
Total liabilities and shareholders’ equity
|
$
|
41,169,424
|
$
|
44,394,620
|