HAUPPAUGE DIGITAL INC

CIK:0000930803|SEC Filings

Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Income Statement [Abstract]
Net sales	$ 5,848,229	$ 10,435,935	$ 12,317,708	$ 22,366,313
Cost of sales	3,601,843	6,891,508	7,559,860	13,429,945
Gross profit	2,246,386	3,544,427	4,757,848	8,936,368
Selling, general and administrative expenses	2,124,910	3,019,693	4,192,608	5,893,467
Research and development expenses	697,552	789,911	1,389,334	1,496,838
(Loss) income from operations	(576,076)	(265,177)	(824,094)	1,546,063
Other expense:
Interest income	224	888	422	1,968
Foreign currency loss	(3,207)	(8,658)	(8,905)	(6,588)
Total other expense	(2,983)	(7,770)	(8,483)	(4,620)
(Loss) income before tax provision	(579,059)	(272,947)	(832,577)	1,541,443
Current tax expense	24,592	48,928	53,875	101,433
Deferred tax expense	36,433	211,517	136,842	683,316
Net (loss) income	$ (640,084)	$ (533,392)	$ (1,023,294)	$ 756,694
Net (loss) income per share:
Basic and diluted	$ (0.06)	$ (0.05)	$ (0.10)	$ 0.07

Consolidated Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cash Flows From Operating Activities:
Net (loss) income	$ (1,023,294)	$ 756,694
Adjustments to reconcile net (loss) income to net cash used in operating activities:
Depreciation and amortization	45,887	59,168
Amortization of intangible assets		377,418
Stock compensation expense	57,180	54,931
Deferred tax expense	136,842	683,316
Sales reserve, net		(174,749)
Inventory reserve	202,920	200,000
Other items	19,965	(8,165)
Changes in current assets and liabilities:
Accounts receivable and other non-trade receivables	(212,772)	(1,904,970)
Inventories	1,959,230	(1,177,010)
Prepaid expenses and other current assets	65,502	(62,303)
Accounts payable	(644,067)	335,538
Accrued expenses and other current liabilities	(636,300)	(1,086,545)
Total adjustments	994,387	(2,703,371)
Net cash used in operating activities	(28,907)	(1,946,677)
Cash Flows From Investing Activities:
Purchases of property, plant and equipment		(29,383)
Net cash used in investing activities		(29,383)
Effect of exchange rates on cash	6,846	12,266
Net decrease in cash and cash equivalents	(22,061)	(1,963,794)
Cash and cash equivalents, beginning of period	1,482,566	5,095,853
Cash and cash equivalents, end of period	1,460,505	3,132,059
Supplemental disclosures:
Income taxes paid	$ 44,441	$ 92,383

Consolidated Balance Sheets (USD $)	Mar. 31, 2014	Sep. 30, 2013
Assets:
Cash and cash equivalents	$ 1,460,505	$ 1,482,566
Trade receivables, net of allowances	2,318,382	2,180,276
Other non-trade receivables	381,698	278,497
Inventories	8,316,898	10,479,048
Deferred tax asset-current	538,369	453,659
Prepaid expenses and other current assets	1,094,013	1,155,054
Total current assets	14,109,865	16,029,100
Property, plant and equipment, net	98,371	144,596
Security deposits and other non-current assets	105,191	115,589
Deferred tax asset non-current	470,673	692,225
Total assets	14,784,100	16,981,510
Current Liabilities:
Accounts payable	3,122,100	3,758,876
Accrued expenses-fees	12,295,464	12,497,060
Accrued expenses	2,151,325	2,590,291
Income taxes payable	196,841	188,187
Total current liabilities	17,765,730	19,034,414
Stockholders' Deficit:
Common stock, $.01 par value; 25,000,000 shares authorized, 10,882,823 issued and 10,122,344 outstanding	108,828	108,828
Additional paid-in capital	18,485,691	18,428,511
Accumulated deficit	(14,515,640)	(13,492,346)
Accumulated other comprehensive loss	(4,654,961)	(4,692,349)
Treasury Stock, at cost, 760,479 shares	(2,405,548)	(2,405,548)
Total stockholders' deficit	(2,981,630)	(2,052,904)
Total liabilities and stockholders' deficit	$ 14,784,100	$ 16,981,510