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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13757 N. Stemmons Freeway, Farmers Branch, Texas
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75234
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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 February 13, 2020 issued by the Company.
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||
SIGNATURES
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ADDVANTAGE TECHNOLOGIES GROUP, INC.
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||
Date: February 13, 2020
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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
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99.1
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Press Release dated February 13, 2020 issued by the Company.
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Three Months Ended December 31,
|
||||||||
2019 |
2018 |
|||||||
Sales
|
$
|
13,962,358
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$
|
6,810,097
|
||||
Cost of sales
|
10,370,376
|
5,086,708
|
||||||
Gross profit
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3,591,982
|
1,723,389
|
||||||
Operating expenses
|
1,887,726
|
492,823
|
||||||
Selling, general and administrative expenses
|
3,019,403
|
1,939,605
|
||||||
Depreciation and amortization expense
|
447,574
|
299,385
|
||||||
Loss from operations
|
(1,762,721
|
)
|
(1,008,424
|
)
|
||||
Other income (expense):
|
||||||||
Interest income
|
88,631
|
‒
|
||||||
Income from equity method investment
|
22,000
|
‒
|
||||||
Other income (expense)
|
(57,042
|
)
|
90
|
|||||
Interest expense
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(23,560
|
)
|
(22,977
|
)
|
||||
Total other income (expense), net
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30,029
|
(22,887
|
)
|
|||||
Loss before income taxes
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(1,732,692
|
)
|
(1,031,311
|
)
|
||||
Provision (benefit) for income taxes
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(15,000
|
)
|
172,000
|
|||||
Loss from continuing operations
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(1,717,692
|
)
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(1,203,311
|
)
|
||||
Income from discontinued operations, net of tax
|
‒
|
164,330
|
||||||
Net loss
|
$
|
(1,717,692
|
)
|
$
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(1,038,981
|
)
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||
Income (loss) per share:
|
||||||||
Basic
|
||||||||
Continuing operations
|
$
|
(0.17
|
)
|
$
|
(0.12
|
)
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||
Discontinued operations
|
‒
|
0.02
|
||||||
Net loss
|
$
|
(0.17
|
)
|
$
|
(0.10
|
)
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||
Diluted
|
||||||||
Continuing operations
|
$
|
(0.17
|
)
|
$
|
(0.12
|
)
|
||
Discontinued operations
|
‒
|
0.02
|
||||||
Net loss
|
$
|
(0.17
|
)
|
$
|
(0.10
|
)
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||
Shares used in per share calculation:
|
||||||||
Basic
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10,361,292
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10,361,292
|
||||||
Diluted
|
10,361,292
|
10,361,292
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Three Months Ended December 31, 2019
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Three Months Ended December 31, 2018
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|||||||||||||||||||||||
Wireless |
Telco |
Total |
Wireless |
Telco |
Total |
|||||||||||||||||||
Loss from operations |
$ |
(1,087,443 |
) | $ |
(675,278 |
) |
$ |
(1,762,721 | ) |
$ |
‒ | $ |
(1,008,424 | ) |
$ |
(1,008,424 | ) |
|||||||
Depreciation and amortization expense |
146,696 | 300,879 | 447,575 | ‒ | 299,385 | 299,385 | ||||||||||||||||||
Stock compensation expense
|
8,804
|
8,835
|
17,639
|
−
|
54,320
|
54,320
|
||||||||||||||||||
Adjusted EBITDA
|
$
|
(931,943
|
)
|
$
|
(365,564
|
)
|
$
|
(1,297,507
|
)
|
$ ‒
|
$
|
(654,719
|
)
|
$
|
(654,719
|
)
|
December 31, 2019
|
September 30, 2019
|
|||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
608,105
|
$
|
1,242,143
|
||||
Restricted cash
|
296,174
|
351,909
|
||||||
Accounts receivable, net of allowance for doubtful accounts of $150,000
|
4,777,580
|
4,826,716
|
||||||
Unbilled revenue
|
2,679,442
|
2,691,232
|
||||||
Promissory note – current
|
1,400,000
|
1,400,000
|
||||||
Income tax receivable
|
36,350
|
21,350
|
||||||
Inventories, net of allowance for excess and obsolete inventory of $1,275,000
|
8,161,656
|
7,625,573
|
||||||
Prepaid expenses
|
650,818
|
543,762
|
||||||
Other assets
|
77,103
|
262,462
|
||||||
Total current assets
|
18,687,228
|
18,965,147
|
||||||
Property and equipment, at cost:
|
||||||||
Machinery and equipment
|
2,575,220
|
2,475,545
|
||||||
Leasehold improvements
|
1,014,643
|
190,984
|
||||||
Total property and equipment, at cost
|
3,589,863
|
2,666,529
|
||||||
Less: Accumulated depreciation
|
(993,427
|
)
|
(835,424
|
)
|
||||
Net property and equipment
|
2,596,436
|
1,831,105
|
||||||
Right-of-use operating lease assets
|
4,261,166
|
‒
|
||||||
Promissory note – noncurrent
|
4,390,738
|
4,975,000
|
||||||
Intangibles, net of accumulated amortization
|
5,738,457
|
6,002,998
|
||||||
Goodwill
|
4,877,739
|
4,877,739
|
||||||
Other assets
|
205,100
|
176,355
|
||||||
Total assets
|
$
|
40,756,864
|
$
|
36,828,344
|
||||
Liabilities and Shareholders’ Equity
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
4,188,259
|
$
|
4,730,537
|
||||
Accrued expenses
|
1,478,122
|
1,617,911
|
||||||
Deferred revenue
|
290,977
|
97,478
|
||||||
Bank line of credit
|
1,700,000
|
‒
|
||||||
Operating lease obligations – current
|
1,086,871
|
|||||||
Financing lease obligations – current
|
316,417
|
‒
|
||||||
Other current liabilities
|
‒
|
757,867
|
||||||
Total current liabilities
|
9,060,646
|
7,203,793
|
||||||
Operating lease obligations
|
3,333,181
|
|||||||
Financing lease obligations
|
590,040
|
‒
|
||||||
Other liabilities
|
30,199
|
177,951
|
||||||
Total liabilities
|
13,014,066
|
7,381,744
|
||||||
Shareholders’ equity:
|
||||||||
Common stock, $.01 par value; 30,000,000 shares authorized; 10,861,950shares issued;
10,361,292shares outstanding
|
108,620
|
108,620
|
||||||
Paid in capital
|
(4,363,213
|
)
|
(4,377,103
|
)
|
||||
Retained earnings
|
32,997,405
|
34,715,097
|
||||||
Total shareholders’ equity before treasury stock
|
28,742,812
|
30,446,614
|
||||||
Less: Treasury stock, 500,658 shares, at cost
|
(1,000,014
|
)
|
(1,000,014
|
)
|
||||
Total shareholders’ equity
|
27,742,798
|
29,446,600
|
||||||
Total liabilities and shareholders’ equity
|
$
|
40,756,864
|
$
|
36,828,344
|