Net income includes a gain of over
$2.4 million on a passive
investment
IRVINE,
Calif., March 29, 2023 /PRNewswire/ -- Interlink
Electronics, Inc. (NASDAQ: LINK), a world-leading trusted
technology partner in the rapidly advancing world of human-machine
interface (HMI) devices, sensors, membrane switches and other
cutting-edge technologies, today announced its financial results
for the three months and year ended December
31, 2022. The following table sets forth the consolidated
financial highlights.
Consolidated Financial Highlights
(Amounts in
thousands, except per share data and percentages)
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Consolidated
Financial Results
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Three months ended
December 31,
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Year ended December
31,
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2022
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2021
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$ ∆
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% ∆
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2022
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2021
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$ ∆
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% ∆
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Revenue
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$
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1,611
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$
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1,623
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$
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(12)
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(0.7)
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%
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$
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7,493
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$
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7,478
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$
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15
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0.2
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%
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Gross profit
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$
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796
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$
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765
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$
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31
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4.1
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%
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$
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3,861
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$
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4,058
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$
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(197)
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(4.9)
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%
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Gross margin
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49.4
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%
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47.1
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%
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51.5
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%
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54.3
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%
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Loss from
operations
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$
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(345)
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$
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(411)
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$
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66
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$
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(668)
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$
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(79)
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$
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(589)
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Net income
(loss)
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$
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1,412
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$
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(977)
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$
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2,389
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$
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1,672
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$
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(734)
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$
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2,406
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Net income (loss)
applicable to
common stockholders
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$
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1,312
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$
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(1,025)
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$
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2,337
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$
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1,272
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$
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(782)
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$
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2,054
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Earnings (loss) per
common
share – diluted
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$
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0.20
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$
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(0.16)
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$
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0.36
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$
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0.19
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$
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(0.12)
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$
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0.31
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- Revenue in the fourth quarter of 2022 decreased 1% from the
same quarter last year and was approximately flat for 2022 as
compared to the prior year. Fluctuations in revenue result from
changes in the volume of shipments of our products to our
customers, which is impacted by customer demand according to their
corresponding products and programs.
- Gross margin increased to 49.4% in the current quarter from
47.1% in the year–ago quarter and decreased to 51.5% for the
current year from 54.3% in the prior year. The improvement in gross
margin in the current quarter was due to a lower provision for
excess and obsolete inventory as compared to the fourth quarter of
the prior year. The decline in gross margin for the current year
was due to higher materials and components costs on certain orders
and changes in customer and product mix.
- Income/loss from operations was a loss of $345 thousand
for the fourth quarter of 2022, compared with a loss of
$411 thousand in the fourth quarter of 2021. Income/loss from
operations was a loss of $668 thousand for 2022, compared with
a loss of $79 thousand in 2021.
Operating income/loss in 2022 was impacted by lower gross profit
and higher operating expenses due to additional employee headcount,
increased costs on prototyping and product development activities,
and increased professional services costs for initiatives such as
acquisition pursuits. Additionally, operating income/loss in 2021
benefited from a $129 thousand research incentive grant from
the Singapore government and a
$186 thousand benefit from forgiveness of the PPP loan the
Company received in 2020.
- The Company's net income of $1.4 million in the fourth quarter of 2022
and $1.7 million for the 2022
year included a realized non-operating gain of approximately
$2.4 million on an approximately
$6 million passive public equity
investment it made earlier in 2022, for a return of over 40%. The
Company did not own any marketable securities in the prior year
periods.
- Interlink ended the year with $10.1 million of cash and cash equivalents
after completing the acquisition of SPEC Sensors and KWJ
Engineering in December 2022 for
approximately $2.3 million.
Since year-end, Interlink completed the acquisition of Calman
Technology Limited with an initial closing payment of $4.4 million.
"We finished 2022 with the SPEC/KWJ acquisition and have now
completed the Calman Technology purchase, positioning us for
significant growth in the current fiscal year and beyond," said
Steven N. Bronson, Chairman,
President, and CEO of Interlink. "We will continue to make
investments in product development, sales and executive talent for
the remainder of 2023."
About Interlink Electronics, Inc.
Interlink Electronics is a world-leading trusted technology
partner in the rapidly advancing world of human-machine interface
(HMI) devices, sensors, membrane switches and other cutting-edge
technologies. In addition to standard product offerings, Interlink
utilizes its expertise in materials science, manufacturing,
firmware, and software to produce in-house system solutions for
custom applications. For 38 years, Interlink has led the printed
electronics industry to commercialize its patented Force Sensing
Resistor® technology. It has supplied some of the world's top
electronics manufacturers with intuitive sensor and interface
technologies. It also has a proven track record of supplying
technological solutions for mission-critical applications in a
diverse range of markets - including medical, automotive, consumer
electronics, telecommunications, and industrial control - providing
standard and custom-designed sensors that give engineers the
flexibility and functionality they seek in today's sophisticated
electronic devices.
Recent acquisitions have expanded the Company's portfolio of
products and services into new areas. SPEC Sensors and KWJ
Engineering, purchased in December
2022, offer industry-leading design and manufacture of
electrochemical gas-sensing technology for industry, community,
health and home, providing custom solutions, advanced sensors,
innovative products and unique services with uses in fields such as
carbon monoxide and ozone detection and air quality monitoring.
Calman Technology Limited, acquired in March
2023, brings over 25 years of experience in the design and
manufacture of membrane keypads, graphic overlays and label
product, with customers in fields such as medical devices and
defense technologies and operations across the UK and Europe.
Interlink serves an international customer base from its
headquarters in Irvine,
California, its world-class materials science lab and
R&D center in Camarillo,
California and the SPEC-KWJ advanced engineering and
manufacturing facility in Silicon Valley. They are supported by
strategic global locations covering manufacturing, distribution,
and sales support. For more information, please visit
InterlinkElectronics.com.
Forward Looking Statements
This release contains "forward-looking statements" within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements can be
generally identified by phrases such as "thinks," "anticipates,"
"believes," "estimates," "expects," "intends," "plans," and similar
words. Forward-looking statements in this press include statements
about our acquisition program, our projected annual revenue run
rate, and the effects of the Calman acquisition, including
contributions to our products, manufacturing operations and the
markets we serve. Forward-looking statements are not guarantees of
future performance and are inherently subject to uncertainties and
other factors which could cause actual results to differ materially
from the forward-looking statement. These statements are based
upon, among other things, assumptions made by, and information
currently available to, management, including management's own
knowledge and assessment of the company's industry, R&D
initiatives, competition and capital requirements. Other factors
and uncertainties that could affect the company's forward-looking
statements include, among other things, the following: our ability
to integrate Calman's operations; our success in predicting new
markets and the acceptance of our new products; efficient
management of our infrastructure; the pace of technological
developments and industry standards evolution and their effect on
our target product and market choices; the effect of outsourcing
technology development; changes in the ordering patterns of our
customers; a decrease in the quality and/or reliability of our
products; protection of our proprietary intellectual property;
competition by alternative sophisticated as well as generic
products; continued availability of raw materials for our products
at competitive prices; disruptions in our manufacturing facilities;
risks of international sales and operations including fluctuations
in exchange rates; compliance with regulatory requirements
applicable to our manufacturing operations; and customer
concentrations. Additional factors that could cause actual results
to differ materially from those anticipated by our forward-looking
statements are under the captions "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" in our most recent Annual Report (Form 10-K) or
Quarterly Report (Form 10-Q) filed with the Securities and Exchange
Commission. Forward-looking statements are made as of the date of
this release, and we expressly disclaim any obligation to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
Contact:
Interlink Electronics, Inc.
IR@iefsr.com
Steven N. Bronson, CEO
805-623-4184
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INTERLINK
ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEETS (unaudited)
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December
31,
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December 31,
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2022
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2021
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(in thousands)
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ASSETS
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Current
assets
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Cash and cash
equivalents
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$
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10,091
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$
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10,777
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Restricted
cash
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—
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5
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Accounts receivable,
net
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1,178
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1,080
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Inventories
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2,112
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814
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Prepaid expenses and
other current assets
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321
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391
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Total current
assets
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13,702
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13,067
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Property, plant and
equipment, net
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184
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338
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Intangible assets,
net
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76
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131
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Goodwill
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650
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—
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Right-of-use
assets
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172
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163
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Deferred tax
assets
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134
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8
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Other assets
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65
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72
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Total
assets
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$
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14,983
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$
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13,779
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LIABILITIES AND
STOCKHOLDERS' EQUITY
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Current
liabilities
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Accounts
payable
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$
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273
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$
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338
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Accrued
liabilities
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568
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507
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Lease liabilities,
current
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131
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138
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Accrued income
taxes
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117
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54
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Total current
liabilities
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1,089
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1,037
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Long-term
liabilities
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Lease liabilities,
long-term
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46
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37
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Total long-term
liabilities
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46
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37
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Total
liabilities
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1,135
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1,074
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Stockholders'
equity
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Preferred
stock
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2
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2
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Common stock
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7
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7
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Additional
paid-in-capital
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62,617
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62,552
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Accumulated other
comprehensive income (loss)
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(98)
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96
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Accumulated
deficit
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(48,680)
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(49,952)
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Total stockholders'
equity
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13,848
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12,705
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Total liabilities and
stockholders' equity
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$
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14,983
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$
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13,779
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INTERLINK
ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS (unaudited)
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Three months ended December 31,
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Year ended December 31,
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2022
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2021
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2022
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2021
|
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|
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(in thousands, except per share
data)
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Revenue, net
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$
|
1,611
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$
|
1,623
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$
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7,493
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$
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7,478
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Cost of
revenue
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|
|
815
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|
|
858
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3,632
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|
|
3,420
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|
Gross profit
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|
796
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|
|
765
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3,861
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|
|
4,058
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|
Operating
expenses:
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|
|
|
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|
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|
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Engineering, research
and development
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452
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520
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1,220
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|
893
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|
Selling, general and
administrative
|
|
|
689
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656
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3,309
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|
|
3,244
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|
Total operating
expenses
|
|
|
1,141
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|
|
1,176
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|
|
4,529
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|
|
4,137
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|
Loss from
operations
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(345)
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(411)
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(668)
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(79)
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Other income
(expense):
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Other income
(expense), net
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1,907
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(25)
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2,611
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(50)
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Income (loss) before
income taxes
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1,562
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(436)
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|
1,943
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|
(129)
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Income tax
expense
|
|
|
150
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|
|
541
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|
|
271
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|
|
605
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Net income
(loss)
|
|
$
|
1,412
|
|
$
|
(977)
|
|
$
|
1,672
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|
$
|
(734)
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|
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|
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|
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Net income (loss)
applicable to common stockholders
|
|
$
|
1,312
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|
$
|
(1,025)
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$
|
1,272
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|
$
|
(782)
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Earnings (loss) per
common share – basic and diluted
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$
|
0.20
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|
$
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(0.16)
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$
|
0.19
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$
|
(0.12)
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Weighted average common
shares outstanding – basic and diluted
|
|
|
6,607
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|
|
6,602
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|
|
6,603
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|
|
6,601
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SOURCE Interlink Electronics