$AATC

IMAGE SENSING SYSTEMS INC

CIK:0000943034|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenue:
Total Revenue	$ 3,155	$ 3,272	$ 8,726	$ 10,039
Cost of revenue:
Total Cost of revenue	558	585	1,998	2,118
Gross profit	2,597	2,687	6,728	7,921
Operating expenses:
Selling, general and administrative	1,220	1,334	4,229	4,216
Research and development	581	644	1,535	1,681
Total Operating expenses	1,801	1,978	5,764	5,897
Income from operations	796	709	964	2,024
Other income	10	0	29	925
Investment income (loss)	8	0	(17)	0
Interest expense	(18)	0	(53)	0
Income from operations before income taxes	796	709	923	2,949
Income tax expense	152	96	187	453
Net income	$ 644	$ 613	$ 736	$ 2,496
Net income per share:
Basic (in dollars per share)	$ 0.12	$ 0.11	$ 0.14	$ 0.47
Diluted (in dollars per share)	$ 0.12	$ 0.11	$ 0.14	$ 0.47
Weighted average number of common shares outstanding:
Basic (in shares)	5,391	5,349	5,378	5,338
Diluted (in shares)	5,395	5,361	5,387	5,351
Product sales [Member]
Revenue:
Total Revenue	$ 548	$ 805	$ 2,914	$ 3,273
Cost of revenue:
Total Cost of revenue	453	480	1,683	1,823
Royalties [Member]
Revenue:
Total Revenue	2,607	2,467	5,812	6,766
Cost of revenue:
Total Cost of revenue	$ 105	$ 105	$ 315	$ 295

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Operating activities:
Net income	$ 736	$ 2,496
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Depreciation	119	112
Software amortization	602	579
Amortization of debt issuance costs	2	0
Stock-based compensation	329	164
Deferred income tax expense	147	486
Forgiveness income from PPP Loan (Note N)	0	(931)
Loss on disposal of assets	5	1
Realized loss on AFS investments	20	0
Realized loss on equity investments	53	0
Unrealized loss on equity investments	5	0
Noncash investment income	(5)	0
Changes in operating assets and liabilities:
Accounts receivable, net	(1,343)	(236)
Inventories	(1,039)	(715)
Prepaid expenses and other current assets	(19)	(87)
Accounts payable	852	(380)
Accrued expenses and other current liabilities	(175)	0
Net cash provided by for operating activities	289	1,489
Investing activities:
Capitalized software development costs	(534)	(178)
Purchases of property and equipment	(61)	(8)
Purchases of equity securities	(795)	0
Sale of equity securities	492	0
Purchases of debt securities	(3,521)	0
Sale of debt securities	1,456	0
Net cash used for investing activities	(2,963)	(186)
Financing activities:
Stock for tax withholding	(15)	(35)
Dividends paid	(1,941)	(1,288)
Proceeds from exercised options	32	8
Proceeds from PPP loan	0	0
Principal payments on long-term debt	(43)	0
Net cash used for financing activities	(1,967)	(1,315)
Effect of exchange rate changes on cash	(177)	(91)
Change in cash and cash equivalents	(4,818)	(103)
Cash and cash equivalents at beginning of period	8,229	8,605
Cash and cash equivalents at end of period	3,411	8,502
Non-Cash investing and financing activities:
Cash paid for interest	$ 53	$ 0

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands

Sep. 30, 2022

Dec. 31, 2021

Current assets:

Cash and cash equivalents

$ 3,411

$ 8,229

Accounts receivable, net of allowance for doubtful accounts of $11 and $18 respectively

3,712

2,369

Inventories

2,468

1,429

Investments in available-for-sale debt securities

422

Investments in equity securities

245

^[1]

Prepaid expenses and other current assets

374

355

Total current assets

10,632

12,382

Property and equipment:

Furniture and fixtures

135

136

Leasehold improvements

Equipment

988

994

Real property

2,059

Property and equipment, Gross

3,188

3,195

Accumulated depreciation

1,033

958

Property and equipment, Net

2,155

2,237

Operating lease assets, net

Intangible assets, net

2,798

2,866

Deferred income taxes

4,699

4,824

Long-term investments in available-for-sale debt securities

1,526

TOTAL ASSETS

21,815

22,367

Current liabilities:

Accounts payable

1,088

236

Deferred revenue

115

107

Warranty

109

128

Accrued compensation

132

Operating lease obligations

Current maturities of long-term debt

Other current liabilities

109

181

Total current liabilities

1,525

899

Commitments and Contingencies

Long-term debt

1,631

1,674

TOTAL LIABILITIES

3,156

2,573

Shareholders' equity:

Preferred stock, $0.01 par value; 5,000,000 shares authorized, none issued or outstanding

Common stock, $0.01 par value; 20,000,000 shares authorized, 5,406,237 and 5,378,857 issued and outstanding at September 30, 2022 and December 31, 2021, respectively

Additional paid-in capital

25,513

25,167

Accumulated other comprehensive loss

(564)

(288)

Accumulated deficit

(6,344)

(5,139)

Total shareholders' equity

18,659

19,794

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$ 21,815

$ 22,367

[1]	The fair value of the Company's equity investments are determined based on readily available market data and are classified as level 1 fair value measurements.