ARC WIRELESS SOLUTIONS INC

CIK:0000826326|SEC Filings

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Apr. 01, 2018	Mar. 31, 2019	Apr. 01, 2018
Consolidated Statements of Operations
Sales	$ 19,856	$ 21,046	$ 61,328	$ 57,559
Cost of sales	20,086	19,365	56,958	54,984
Gross profit (deficit)	(230)	1,681	4,370	2,575
Selling, general and administrative	2,909	3,062	9,388	9,734
Loss from operations	(3,139)	(1,381)	(5,018)	(7,159)
Other income (expense), net	103	(104)	193	24
Interest expense, net	(936)	(857)	(2,765)	(2,744)
Loss before income taxes	(3,972)	(2,342)	(7,590)	(9,879)
Income tax benefit	796	13	728	207
Net loss from continuing operations	(3,176)	(2,329)	(6,862)	(9,672)
Loss on sale of subsidiaries and loss from discontinued operations, net of tax	(3,005)	(787)	(4,559)	(1,321)
Net loss	$ (6,181)	$ (3,116)	$ (11,421)	$ (10,993)
Net loss per common share, basic and diluted:
Continuing operations (in dollars per share)	$ (0.14)	$ (0.12)	$ (0.29)	$ (0.51)
Discontinued operations (in dollars per share)	(0.12)	(0.04)	(0.20)	(0.07)
ARC Group Worldwide, Inc. (in dollars per share)	$ (0.26)	$ (0.16)	$ (0.49)	$ (0.58)
Weighted average common shares outstanding:
Basic and diluted (in shares)	23,366,267	20,051,710	23,355,074	18,832,365

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2019	Apr. 01, 2018
Cash flows from operating activities:
Net loss	$ (11,421)	$ (10,993)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	7,707	7,630
Share-based compensation expense	229	484
Loss on sale of asset	62	170
Loss on sale of subsidiaries	2,126	109
Bad debt expense and other	75	12
Changes in operating assets and liabilities:
Accounts receivable	(172)	(469)
Inventory	(2,560)	1,247
Prepaid expenses and other assets	1,677	124
Accounts payable	2,857	3,148
Accrued expenses and other liabilities	(766)	(1,758)
Deferred revenue	(563)	(35)
Net cash used in operating activities	(749)	(331)
Cash flows from investing activities:
Purchases of property and equipment	(1,174)	(4,432)
Proceeds from sale of subsidiary		3,000
Net cash (used in) provided by investing activities	(1,174)	(1,432)
Cash flows from financing activities:
Proceeds from debt issuance	56,276	74,956
Repayments of long-term debt and capital lease obligations	(54,308)	(83,772)
Proceeds from rights offering, net		9,783
Issuance of common stock under employee stock purchase plan and exercise of stock options	29	210
Net cash provided by financing activities	1,997	1,177
Effect of exchange rates on cash	(217)	461
Net decrease in cash	(143)	(125)
Cash, Beginning of period	365	593
Cash, End of period	222	468
Supplemental disclosures of cash flow information:
Cash paid for interest	1,874	2,079
Cash paid for income taxes, net of refunds	$ 24	$ 52

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2019	Jun. 30, 2018
Current assets:
Cash	$ 222	$ 365
Accounts receivable, net	11,243	11,103
Inventories, net	14,664	12,102
Prepaid expenses and other current assets	1,578	2,781
Current assets of discontinued operations		547
Total current assets	27,707	26,898
Property and equipment, net	35,069	36,879
Goodwill	6,412	6,412
Intangible assets, net	13,738	16,270
Other	264	347
Long-term assets of discontinued operations		3,127
Total assets	83,190	89,933
Current liabilities:
Accounts payable	13,770	11,345
Accrued expenses and other current liabilities	2,486	2,000
Deferred revenue	262	825
Bank borrowings, current portion of long-term debt and unamortized financing costs	1,604	1,721
Capital lease obligations, current portion	1,176	456
Accrued escrow obligations, current portion	595	943
Current liabilities of discontinued operations		1,422
Total current liabilities	19,893	18,712
Long-term debt, net of current portion and unamortized financing costs	41,015	37,013
Capital lease obligations, net of current portion	1,363	617
Other long-term liabilities	27	965
Long-term liabilities of discontinued operations		462
Total liabilities	62,298	57,769
Commitments and contingencies (Note 11)
Stockholders' Equity:
Preferred stock, $0.001 par value, 2,000,000 shares authorized, no shares issued and outstanding
Common stock, $0.0005 par value, 250,000,000 shares authorized; 23,385,657 shares issued and 23,377,256 shares issued and outstanding at March 31, 2019, and 23,324,316 shares issued and 23,315,915 shares issued and outstanding at June 30, 2018	12	12
Treasury stock, at cost; 8,401 shares at March 31, 2019 and June 30, 2018	(94)	(94)
Additional paid-in capital	42,087	41,829
Accumulated deficit	(21,047)	(9,627)
Accumulated other comprehensive income (loss)	(66)	44
Total stockholders' equity	20,892	32,164
Total liabilities and stockholders' equity	$ 83,190	$ 89,933