ARRHYTHMIA RESEARCH TECHNOLOGY INC /DE/

CIK:0000819689|SEC Filings

Consolidated Statements of Operations - USD ($)	12 Months Ended
Consolidated Statements of Operations - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Consolidated Statements of Operations [Abstract]
Net sales	$ 17,499,364	$ 19,564,981
Cost of sales	15,737,469	17,241,289
Gross profit	1,761,895	2,323,692
Selling and marketing	636,167	730,863
General and administrative	2,760,787	2,243,595
Research and development	80,357	106,814
Total operating expenses	3,477,311	3,081,272
Net income (loss) from operations	(1,715,416)	(757,580)
Other income (expense):
Interest expense	(431,544)	(391,437)
Other income (expense), net	5,826	52,878
Total other expense, net	(425,718)	(338,559)
Net income (loss) before income tax provision (benefit)	(2,141,134)	(1,096,139)
Income tax provision (benefit)		2,168
Net income (loss)	$ (2,141,134)	$ (1,098,307)
Earnings (loss) per share - basic and diluted	$ (0.74)	$ (0.39)
Weighted average common shares outstanding - basic and diluted	2,883,861	2,850,397

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net loss	$ (2,141,134)	$ (1,098,307)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Gain on sale of assets	(7,602)	(8,360)
Depreciation and amortization	1,463,443	1,504,037
Impairment of intangibles	0
Non-cash interest expense	94,392	62,120
Change in allowance for doubtful accounts	831	0
Share-based compensation expense	219,257	131,918
Changes in operating assets and liabilities:
Accounts receivable	172,719	269,444
Inventories	1,258,015	(348,121)
Prepaid expenses and other current and non-current assets	131,026	44,389
Accounts payable	(371,833)	(343,038)
Accrued expenses and other current liabilities	(83,367)	157,376
Contract liabilities	(555,329)	134,345
Net cash provided by operating activities	180,419	505,803
Cash flows from investing activities:
Purchases of property, plant and equipment	(169,131)	(801,884)
Proceeds from sale of property, plant and equipment	32,602	8,360
Proceeds from sale of assets held for sale	663,334	0
Cash paid for patents and trademarks	0	(2,661)
Net cash provided by (used in) investing activities	526,805	(796,185)
Cash flows from financing activities:
Payments on revolving line of credit, net	(751,293)	146,545
Payments on term notes payable	(457,143)	(419,047)
Payments of debt issuance costs	0	(42,389)
Proceeds from subordinated debt	500,000
(Payments on) subordinated debt		(350,000)
Net cash provided by (used in) financing activities	(708,436)	(664,891)
Net change in cash and cash equivalents	(1,212)	(955,273)
Cash and cash equivalents, beginning of period	1,715	956,988
Cash and cash equivalents, end of period	503	1,715
Supplemental Cash Flow Information
Cash paid for interest	353,343	313,425
Non-cash activities:
Issuance of common stock warrants in connection with subordinated notes payable	35,818
Issuance of treasury stock for directors' fees	110,541	75,750
Adjustment to accumulated deficit for change in accounting principle (ASC 606)	$ 0	$ (13,991)

Consolidated Balance Sheets - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 503	$ 1,715
Trade accounts receivable, net of allowance for doubtful accounts of $39,169 at December 31, 2019 and $40,000 at December 31, 2018	2,152,254	2,325,804
Inventories	2,468,648	3,685,059
Assets held for sale, net	0	688,750
Prepaid expenses and other current assets	257,859	389,390
Total current assets	4,879,264	7,090,718
Property, plant and equipment, net	3,801,916	5,131,773
Intangible assets, net	47,509	53,155
Other assets	5,645	5,140
Total assets	8,734,334	12,280,786
Current liabilities:
Revolving line of credit	1,274,299	2,025,592
Term notes payable, current portion, net	3,557,458	389,420
Accounts payable	841,068	1,200,298
Accrued expenses and other current liabilities	383,836	459,108
Contract liabilities, current portion	5,472	560,802
Total current liabilities	6,062,133	4,635,220
Long-term liabilities:
Term notes payable, non-current portion, net	0	3,557,458
Subordinated promissory notes, net	470,152	0
Total long-term liabilities	470,152	3,557,458
Total liabilities	6,532,285	8,192,678
Commitments and Contingencies
Shareholders' equity:
Preferred stock, $0.001 par value; 2,000,000 shares authorized, none issued	0	0
Common stock, $0.01 par value; 10,000,000 shares authorized; 3,926,491 issued, 2,906,609 outstanding at December 31, 2019 and 3,926,491 issued, 2,861,008 outstanding at December 31, 2018	39,265	39,265
Additional paid-in-capital	11,735,457	11,604,817
Treasury stock at cost, 1,019,882 shares at December 31, 2019 and 1,065,483 shares at December 31, 2018	(2,783,055)	(2,907,490)
Accumulated deficit	(6,789,618)	(4,648,484)
Total shareholders’ equity	2,202,049	4,088,108
Total liabilities and shareholders’ equity	$ 8,734,334	$ 12,280,786