Minnesota
|
(State or other jurisdiction of incorporation or organization
|
(001-32632)
|
41-1719250
|
|
Commission File No.
|
(I.R.S. Employer Identification No.)
|
5420 Feltl Road
|
||
Minnetonka, Minnesota
|
55343
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Registrant’s telephone number, including area code
|
(952) 426-6140 |
o
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
o
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
o
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Item 2.02.
|
Results of Operations and Financial Condition
|
Item 9.01.
|
Financial Statements and Exhibits
|
UROPLASTY, INC. | |||
By
|
/s/ BRETT REYNOLDS
|
||
Brett Reynolds, Senior Vice President and
|
|||
Chief Financial Officer
|
Three Months Ended
September 30,
|
Six Months Ended
September 30,
|
|||||||||||||||
2014
|
2013
|
2014
|
2013
|
|||||||||||||
Net sales
|
$
|
6,454,630
|
$
|
5,976,875
|
$
|
12,839,259
|
$
|
11,817,716
|
||||||||
Cost of goods sold
|
753,225
|
741,842
|
1,544,536
|
1,489,889
|
||||||||||||
Gross profit
|
5,701,405
|
5,235,033
|
11,294,723
|
10,327,827
|
||||||||||||
Operating expenses
|
||||||||||||||||
General and administrative
|
1,288,297
|
2,390,610
|
2,865,665
|
3,971,373
|
||||||||||||
Research and development
|
651,035
|
428,763
|
1,560,479
|
908,423
|
||||||||||||
Selling and marketing
|
4,818,704
|
4,323,084
|
10,091,325
|
8,950,493
|
||||||||||||
Amortization
|
8,226
|
7,826
|
16,552
|
14,474
|
||||||||||||
6,766,262
|
7,150,283
|
14,534,021
|
13,844,763
|
|||||||||||||
Operating loss
|
(1,064,857
|
)
|
(1,915,250
|
)
|
(3,239,298
|
)
|
(3,516,936
|
)
|
||||||||
Other income (expense)
|
||||||||||||||||
Interest income
|
1,833
|
5,476
|
4,845
|
14,740
|
||||||||||||
Foreign currency exchange gain (loss)
|
(2,190
|
)
|
(1,339
|
)
|
(1,279
|
)
|
(4,034
|
)
|
||||||||
(357
|
)
|
4,137
|
3,566
|
10,706
|
||||||||||||
Loss before income taxes
|
(1,065,214
|
)
|
(1,911,113
|
)
|
(3,235,732
|
)
|
(3,506,230
|
)
|
||||||||
Income tax expense
|
15,032
|
16,367
|
34,847
|
30,542
|
||||||||||||
Net loss
|
$
|
(1,080,246
|
)
|
$
|
(1,927,480
|
)
|
$
|
(3,270,579
|
)
|
(3,536,772
|
)
|
|||||
Basic and diluted net loss per common share
|
$
|
(0.05
|
)
|
$
|
(0.09
|
)
|
$
|
(0.15
|
)
|
$
|
(0.17
|
)
|
||||
Weighted average common shares outstanding:
|
||||||||||||||||
Basic and diluted
|
21,617,675
|
21,076,570
|
21,693,989
|
20,921,693
|
September 30, 2014
|
March 31, 2014
|
|||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
9,540,168
|
$
|
8,681,609
|
||||
Short-term investments
|
-
|
3,451,086
|
||||||
Accounts receivable, net
|
2,663,403
|
2,875,275
|
||||||
Inventories
|
526,367
|
517,217
|
||||||
Other
|
518,135
|
507,299
|
||||||
Total current assets
|
13,248,073
|
16,032,486
|
||||||
Property, plant, and equipment, net
|
952,910
|
997,609
|
||||||
Intangible assets, net
|
103,428
|
119,980
|
||||||
Prepaid pension assets
|
-
|
855
|
||||||
Deferred tax assets
|
136,406
|
150,116
|
||||||
Total assets
|
$
|
14,440,817
|
$
|
17,301,046
|
||||
Liabilities and Shareholders’ Equity
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
670,832
|
$
|
904,879
|
||||
Current portion – deferred rent
|
-
|
2,917
|
||||||
Income tax payable
|
28,017
|
21,922
|
||||||
Accrued liabilities:
|
||||||||
Compensation
|
2,105,483
|
1,999,966
|
||||||
Other
|
472,771
|
479,373
|
||||||
Total current liabilities
|
3,277,103
|
3,409,057
|
||||||
Deferred rent – less current portion
|
26,238
|
171
|
||||||
Accrued pension liability
|
588,733
|
678,118
|
||||||
Total liabilities
|
3,892,074
|
4,087,346
|
||||||
Total shareholders’ equity
|
10,548,743
|
13,213,700
|
||||||
Total liabilities and shareholders’ equity
|
$
|
14,440,817
|
$
|
17,301,046
|
Six Months Ended
|
||||||||
September 30,
|
||||||||
2014
|
2013
|
|||||||
Cash flows from operating activities:
|
||||||||
Net loss
|
$
|
(3,270,579
|
)
|
$
|
(3,536,772
|
)
|
||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
Depreciation and amortization
|
139,252
|
179,123
|
||||||
Loss (gain) on disposal of equipment
|
834
|
(5,000
|
)
|
|||||
Amortization of premium on marketable securities
|
311
|
6,070
|
||||||
Share-based compensation expense
|
660,891
|
920,729
|
||||||
Deferred income tax expense
|
1,973
|
4,979
|
||||||
Deferred rent
|
23,150
|
(18,526
|
)
|
|||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable, net
|
155,498
|
197,216
|
||||||
Inventories
|
(10,822
|
)
|
97,787
|
|||||
Other current assets
|
(18,093
|
)
|
127,104
|
|||||
Accounts payable
|
(230,103
|
)
|
51,232
|
|||||
Accrued compensation
|
113,132
|
(51,129
|
)
|
|||||
Accrued liabilities
|
(5,669
|
)
|
(78,619
|
)
|
||||
Accrued pension liability
|
(35,524
|
)
|
(137,089
|
)
|
||||
Net cash used in operating activities
|
(2,475,749
|
)
|
(2,242,895
|
)
|
||||
Cash flows from investing activities:
|
||||||||
Proceeds from maturity of available-for-sale instruments
|
3,450,000
|
2,000,000
|
||||||
Proceeds from held-to-maturity instruments
|
-
|
3,940,000
|
||||||
Purchases of property, plant and equipment
|
(128,041
|
)
|
(208,768
|
)
|
||||
Proceeds from sale of property, plant and equipment
|
1,552
|
6,773
|
||||||
Payments for intangible assets
|
-
|
(41,300
|
)
|
|||||
Net cash provided by investing activities
|
3,323,511
|
5,696,705
|
||||||
Cash flows from financing activities:
|
||||||||
Proceeds from exercise of stock options
|
67,850
|
69,360
|
||||||
Net cash provided by financing activities
|
67,850
|
69,360
|
||||||
Effect of exchange rates on cash and cash equivalents
|
(57,053
|
)
|
34,724
|
|||||
Net increase in cash and cash equivalents
|
858,559
|
3,557,894
|
||||||
Cash and cash equivalents at beginning of period
|
8,681,609
|
3,533,864
|
||||||
Cash and cash equivalents at end of period
|
$
|
9,540,168
|
$
|
7,091,758
|
||||
Supplemental disclosure of cash flow information:
|
||||||||
Cash paid during the period for income tax
|
$
|
42,715
|
$
|
25,334
|
Expense Adjustments
|
||||||||||||||||||||
GAAP
|
Share-based Compensation
|
Depreciation
|
Amortization
|
Non-GAAP
|
||||||||||||||||
Three Months Ended September 30, 2014
|
||||||||||||||||||||
Gross Profit
|
$
|
5,701,000
|
$
|
11,000
|
$
|
4,000
|
$
|
-
|
$
|
5,716,000
|
||||||||||
% of sales
|
88.3
|
%
|
88.6
|
%
|
||||||||||||||||
Operating Expenses
|
||||||||||||||||||||
General & administrative
|
1,288,000
|
(231,000
|
)
|
(36,000
|
)
|
-
|
1,021,000
|
|||||||||||||
Research and development
|
651,000
|
(11,000
|
)
|
(1,000
|
)
|
-
|
639,000
|
|||||||||||||
Selling and marketing
|
4,819,000
|
(84,000
|
)
|
(18,000
|
)
|
-
|
4,717,000
|
|||||||||||||
Amortization
|
8,000
|
-
|
-
|
(8,000
|
)
|
-
|
||||||||||||||
6,766,000
|
(326,000
|
)
|
(55,000
|
)
|
(8,000
|
)
|
6,377,000
|
|||||||||||||
Operating Loss
|
$
|
(1,065,000
|
)
|
$
|
337,000
|
$
|
59,000
|
$
|
8,000
|
$
|
(661,000
|
)
|
||||||||
Three Months Ended September 30, 2013
|
||||||||||||||||||||
Gross Profit
|
$
|
5,235,000
|
$
|
6,000
|
$
|
9,000
|
$
|
-
|
$
|
5,250,000
|
||||||||||
% of sales
|
87.6
|
%
|
87.8
|
%
|
||||||||||||||||
Operating Expenses
|
||||||||||||||||||||
General & administrative
|
2,390,000
|
(834,000
|
)
|
(53,000
|
)
|
-
|
1,503,000
|
|||||||||||||
Research and development
|
429,000
|
(11,000
|
)
|
(1,000
|
)
|
-
|
417,000
|
|||||||||||||
Selling and marketing
|
4,323,000
|
(54,000
|
)
|
(22,000
|
)
|
-
|
4,247,000
|
|||||||||||||
Amortization
|
8,000
|
-
|
-
|
(8,000
|
)
|
-
|
||||||||||||||
7,150,000
|
(899,000
|
)
|
(76,000
|
)
|
(8,000
|
)
|
6,167,000
|
|||||||||||||
Operating Loss
|
$
|
(1,915,000
|
)
|
$
|
905,000
|
$
|
85,000
|
$
|
8,000
|
$
|
(917,000
|
)
|
Expense Adjustments
|
||||||||||||||||||||
GAAP
|
Share-based Expense
|
Depreciation
|
Amortization
|
Non-GAAP
|
||||||||||||||||
Six Months Ended September 30, 2014
|
||||||||||||||||||||
Gross Profit
|
$
|
11,295,000
|
$
|
25,000
|
$
|
10,000
|
$
|
-
|
$
|
11,330,000
|
||||||||||
% of sales
|
88.0
|
%
|
88.2
|
%
|
||||||||||||||||
Operating Expenses
|
||||||||||||||||||||
General & administrative
|
2,866,000
|
(442,000
|
)
|
(74,000
|
)
|
-
|
2,350,000
|
|||||||||||||
Research and development
|
1,560,000
|
(30,000
|
)
|
(1,000
|
)
|
-
|
1,529,000
|
|||||||||||||
Selling and marketing
|
10,091,000
|
(164,000
|
)
|
(37,000
|
)
|
-
|
9,890,000
|
|||||||||||||
Amortization
|
17,000
|
-
|
-
|
(17,000
|
)
|
-
|
||||||||||||||
14,534,000
|
(636,000
|
)
|
(112,000
|
)
|
(17,000
|
)
|
13,769,000
|
|||||||||||||
Operating Loss
|
$
|
(3,239,000
|
)
|
$
|
661,000
|
$
|
122,000
|
$
|
17,000
|
$
|
(2,439,000
|
)
|
||||||||
Six Months Ended September 30, 2013
|
||||||||||||||||||||
Gross Profit
|
$
|
10,328,000
|
$
|
14,000
|
$
|
18,000
|
$
|
-
|
$
|
10,360,000
|
||||||||||
% of sales
|
87.4
|
%
|
87.7
|
%
|
||||||||||||||||
Operating Expenses
|
||||||||||||||||||||
General & administrative
|
3,971,000
|
(755,000
|
)
|
(103,000
|
)
|
-
|
3,113,000
|
|||||||||||||
Research and development
|
908,000
|
(25,000
|
)
|
(2,000
|
)
|
-
|
881,000
|
|||||||||||||
Selling and marketing
|
8,951,000
|
(127,000
|
)
|
(41,000
|
)
|
-
|
8,783,000
|
|||||||||||||
Amortization
|
15,000
|
-
|
-
|
(15,000
|
)
|
-
|
||||||||||||||
13,845,000
|
(907,000
|
)
|
(146,000
|
)
|
(15,000
|
)
|
12,777,000
|
|||||||||||||
Operating Loss
|
$
|
(3,517,000
|
)
|
$
|
921,000
|
$
|
164,000
|
$
|
15,000
|
$
|
(2,417,000
|
)
|