Microphase Corp

CIK:0001574969|SEC Filings

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Revenues	$ 1,065,661	$ 1,952,817	$ 3,582,458	$ 7,002,891
Cost of Sales	800,989	1,374,194	2,629,156	4,136,725
Gross Profit	264,672	578,623	953,302	2,866,166
Selling, General and Administrative Expenses (including non-cash stock related charges of $83,852 and $140,000 for the three months ended and $615,602 and $475,400 for the nine months ended March 31, 2017 and 2016. For the three and nine months ended March 31, 2017, SG&A included a one-time expense of $430,000 of previously Deferred Offering Costs)	1,129,174	825,650	2,925,143	2,596,430
Engineering and Research expenses	173,399	258,410	572,380	725,874
Other Income (Expense)	2,687	(106,857)	(420,513)	(110,625)
Interest (Expense and Credit costs) net	(122,654)	(98,832)	(352,025)	(216,290)
Net Income (Loss) before Income Taxes	(1,157,868)	(711,126)	(3,316,759)	(783,053)
Income Taxes	0	(5,750)	(1,050)	(46,117)
Net Income (Loss)	$ (1,157,868)	$ (716,876)	$ (3,317,809)	$ (829,170)
Basic Net income (loss) per share: (in dollars per share)	$ (0.48)	$ (0.13)	$ (1.48)	$ (0.16)
Diluted Net income (loss) per share: (in dollars per share)	$ (0.48)	$ (0.13)	$ (1.48)	$ (0.16)
Weighted Average Number of Shares Outstanding:
Basic (in shares)	2,428,152	1,898,680	2,242,459	1,710,981
Diluted (in shares)	2,428,152	1,898,680	2,242,459	1,710,981

Condensed Consolidated Statements of Cash Flows - USD ($)	9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash Flow Provided by (Used In) Operating Activities:
Net Loss	$ (3,317,809)	$ (829,170)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Dynamac Contract Revision Fee	450,000	0
Depreciation and amortization	65,617	70,154
Non-cash charges relating to issuance of common stock for services	615,602	475,400
Amortization of debt discount	11,750	0
Loss on Settlement of Liabilities	0	107,375
Gain on sale of asset	(5,000)	0
Deferred Offering Cost charges	430,000
Changes in assets and liabilities:
Accounts receivable	752,777	210,711
Inventories	169,290	78,571
Other assets	424,802	(17,047)
Deferred Rent	23,455	0
Accounts payable	238,850	141,270
Accrued Expenses	(23,452)	96,788
Customer deposits & deferred revenue	(44,600)	18,300
Due to/from related parties	0	(5,250)
Net cash provided by (Used in) operating activities	(208,718)	347,102
Cash Flow Used in Investing Activities:
Purchase of intangible assets	0	(459,027)
Deposits on Purchase	(1,000,000)	0
Sale of fixed asset	5,000	0
Purchase of fixed assets	0	(47,202)
Net Cash used in investing activities	(995,000)	(506,229)
Cash Flow Provided by (Used in) Financing Activities:
Proceeds from issuance of common stock	585,000	0
(Payments) Proceeds from revolving credit facility (net)	(571,624)	163,604
Proceeds from short term notes, net of placement fees of $70,500	634,500	0
Proceeds from Overdraft Facility& Other Notes	53,900	0
Payments of equity lines of credit	(7,530)	(27,579)
Payments of long-term debt	(13,528)	(11,329)
Proceeds from DECD loan	300,000	0
Payments of capital lease obligations	0	(10,695)
Advances from related parties	165,000	25,000
Payments to Related Parties	0	(27,320)
Payments of extended term arrangement	(5,501)	(5,978)
Net cash provided by financing activities	1,140,217	105,703
Net decrease in cash	(63,501)	(53,424)
CASH, beginning of period	81,224	127,093
CASH, end of period	$ 17,723	$ 73,669

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2017	Jun. 30, 2016
CURRENT ASSETS
Cash	$ 17,723	$ 81,224
Accounts receivable, net of allowance of $5,000 December 31, 2016 and June 30, 2016	339,705	1,092,482
Inventory	702,724	872,014
Due from related parties	33,295	33,295
Prepaid and other current assets	160,690	63,742
TOTAL CURRENT ASSETS	1,254,137	2,142,757
Property and equipment, net	104,996	158,979
OTHER ASSETS
Cash - restricted	100,000	100,000
Intangible assets	97,111	2,629,170
Marketable securities	676,000	200,000
Deposits on Purchase	1,000,000	0
Deferred offering costs	0	260,000
Other assets-lease deposit	43,479	43,479
TOTAL OTHER ASSETS	1,916,590	3,232,649
TOTAL ASSETS	3,275,723	5,534,385
CURRENT LIABILITIES
Credit Facility - Revolving Loan	902,505	1,474,129
Accounts payable	792,183	553,331
Accrued expenses	1,253,650	1,134,729
Deferred Revenue & Customer Deposits	73,200	117,800
Notes Payable - Related Parties, current portion	393,282	137,150
Other current obligations	725,856	0
Asset Acquisition Note Payable-current portion	0	975,345
Equity Lines of Credit-current portion	38,376	38,132
Other termed debts - current portion	13,714	13,714
TOTAL CURRENT LIABILITIES	4,192,766	4,444,330
Other termed debts, net of current portion	317,946	26,975
Notes Payable - Related Parties, net of current portion	180,394	257,857
Asset Acquisition Note Payable	0	1,045,080
Equity Lines of Credit, net of current portion	273,387	281,161
Deferred Lease Obligation	104,644	81,189
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' DEFICIT
6% cumulative preferred stock, $100 par value, 200,000 shares authorized, designated as series A Convertible Preferred, 15,382 shares issued and outstanding on December 31, 2016 (unaudited) and June 30, 2016, respectively	1,538,200	1,538,200
Common stock, $0.0001 par value, 20,000,000 shares authorized and, 2,436,485 and 2,067,040 shares issued and outstanding at March 31, 2017 (unaudited) and June 30, 2016, respectively	244	207
Additional Paid In Capital	13,449,602	11,799,037
Accumulated Other Comprehensive Income	476,000	0
Accumulated Deficit	(17,257,460)	(13,939,651)
TOTAL STOCKHOLDERS' DEFICIT	(1,793,414)	(602,207)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 3,275,723	$ 5,534,385