QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware |
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(State or other jurisdiction of incorporation or organization) |
(IRS Employer Identification No.) |
Title of Each Class |
Trading Symbol(s) |
Name of Exchange on which registered | ||
Large accelerated filer |
☐ |
Accelerated Filer |
☒ | |||
Non-accelerated Filer |
☐ |
Smaller Reporting Company |
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Emerging Growth Company |
Class |
Outstanding at July 31, 2020 | |
Common stock, $.10 par value |
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Class B stock, $.10 par value |
Index |
Page |
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Part I. |
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Item 1. |
Financial Statements |
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4 |
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5 |
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6 |
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7 |
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8 |
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Item 2. |
14 |
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Item 3. |
20 |
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Item 4. |
20 |
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Part II. |
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Item 1. |
21 |
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Item 1A. |
21 |
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Item 6. |
21 |
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22 |
June 30, 2020 |
September 30, 2019 |
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(Unaudited) |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
$ | |
$ | |
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Marketable securities at fair value (cost $ |
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Accounts receivable, less allowance for doubtful accounts of $ |
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Costs and estimated earnings in excess of billings |
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Inventories, net |
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Prepaid expenses and other current assets |
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Total Current Assets |
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Property and equipment, net |
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Other assets |
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Total Assets |
$ | |
$ | |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current Liabilities: |
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Accounts payable |
$ | |
$ | |
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Customer deposits |
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Accrued expenses and other current liabilities |
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Total Current Liabilities |
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Deferred and other income taxes |
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Total Liabilities |
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Commitments and contingencies |
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Shareholders’ equity: |
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Preferred stock, par value $ per share; |
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Common stock, par value $ per share; |
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Class B Stock, par value $ per share; |
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Capital in excess of par value |
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Retained earnings |
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Total Shareholders’ Equity |
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Total Liabilities and Shareholders’ Equity |
$ | |
$ | |
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For the Quarters Ended June 30, |
For the Nine Months Ended June 30, |
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2020 |
2019 |
2020 |
2019 |
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Net revenue |
$ | |
$ | |
$ | |
$ | |
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Costs and expenses: |
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Production costs |
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Product engineering and development |
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Selling, general and administrative |
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Operating income |
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Other income (expense), net: |
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Interest and dividend income, net of fees |
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Net realized and unrealized gains (losses) on marketable securities |
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( |
) | |
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Other |
( |
) | |
( |
) | |
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Income before income tax expense |
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Income tax expense |
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Net income |
$ | |
$ | |
$ | |
$ | |
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Basic Income per Common Share: |
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Net income per share |
$ | |
$ | |
$ | |
$ | |
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Diluted Income per Common Share: |
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Net income per share |
$ | |
$ | |
$ | |
$ | |
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Common Stock |
Class B Stock |
Capital in Excess of |
Retained Earnings |
Total Shareholders’ Equity |
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Shares |
Amount |
Shares |
Amount |
Par Value | ||||||||||||||||||||||||
September 30, 2019 |
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$ | |
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$ | |
$ | |
$ | |
$ | |
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Net income |
— |
— |
— |
— |
— |
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Stock-based compensation |
— |
— |
— |
— |
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— |
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December 31, 2019 |
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Net loss |
— |
— |
— |
— |
— |
( |
) | ( |
) | |||||||||||||||||||
Stock-based compensation |
— |
— |
— |
— |
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— |
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March 31, 2020 |
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Net income |
— |
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— |
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Stock-based compensation |
— |
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— |
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Stock options exercised |
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June 30, 2020 |
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$ | |
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$ | |
$ | |
$ | |
$ | |
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Common Stock |
Class B Stock |
Capital in Excess of |
Retained Earnings |
Total Shareholders’ Equity |
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Shares |
Amount |
Shares |
Amount |
Par Value | ||||||||||||||||||||||||
September 30, 2018 |
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$ | |
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$ | |
$ | |
$ | |
$ | |
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Net income |
— |
— |
— |
— |
— |
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Stock-based compensation |
— |
— |
— |
— |
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— |
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December 31, 2018 |
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Net income |
— |
— |
— |
— |
— |
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Stock-based compensation |
— |
— |
— |
— |
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— |
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March 31, 2019 |
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Net income |
— |
— |
— |
— |
— |
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Stock-based compensation |
— |
— |
— |
— |
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— |
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June 30, 2019 |
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$ | |
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$ | |
$ | |
$ | |
$ | |
* |
The balances as of September 30, 2018, December 31, 2018, March 31, 2019 and June 30, 2019, and the amounts for the quarter and nine months ended June 30, 2019, have been adjusted to reflect the change in inventory accounting method, as described in Note 3 to the Condensed Consolidated Financial Statements. |
For the Nine Months Ended June 30, |
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2020 |
2019 |
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Cash flows from operations: |
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Net income |
$ | |
$ | |
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Adjustments to reconcile net income to cash flows provided by operating activities: |
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Purchases of marketable securities |
( |
) | ( |
) | ||||
Proceeds from sale and maturity of marketable securities |
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Change in fair value of marketable securities |
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( |
) | |||||
Deferred income taxes |
( |
) | ( |
) | ||||
Depreciation and amortization |
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Provision for doubtful accounts |
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Stock-based compensation |
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Changes in assets and liabilities: |
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Accounts receivable |
( |
) | ( |
) | ||||
Costs and estimated earnings in excess of billings |
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( |
) | |||||
Inventories |
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( |
) | |||||
Prepaid expenses and other current assets |
( |
) | |
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Accounts payable |
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Customer deposits |
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( |
) | |||||
Accrued expenses and other current liabilities |
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Total adjustments |
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( |
) | |||||
Cash flows provided by operating activities |
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Cash flows used in investing activities: |
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Capital expenditures |
( |
) | ( |
) | ||||
Cash flows used in investing activities |
( |
) | ( |
) | ||||
Cash flows from financing activities: |
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Proceeds from stock option exercises |
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— |
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Cash flows provided by financing activities |
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— |
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Net increase (decrease) in cash |
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( |
) | |||||
Cash at: |
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Beginning of period |
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End of period |
$ | |
$ | |
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Fair Value Measurements |
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Level 1 |
Level 2 |
Level 3 |
Total |
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Equities |
$ |
$ |
— |
$ |
— |
$ |
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Mutual Funds |
— |
— |
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Exchange-Traded Funds |
— |
— |
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Corporate Bonds |
— |
— |
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Government Securities |
— |
— |
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Cash and Money Funds |
— |
— |
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$ |
$ |
$ |
$ |
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Fair Value Measurements |
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Level 1 |
Level 2 |
Level 3 |
Total |
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Equities |
$ | $ | — |
$ | — |
$ | ||||||||||
Mutual Funds |
— |
— |
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Exchange-Traded Funds |
— |
— |
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Corporate Bonds |
— |
— |
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Government Securities |
— |
— |
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Cash and Money Funds |
— |
— |
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$ | $ | $ | — |
$ | ||||||||||||
June 30, |
September 30, |
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Raw materials |
$ | $ | ||||||
Work in process |
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Finished goods |
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Used equipment |
— |
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$ | $ | |||||||
June 30, |
September 30, |
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Costs incurred on uncompleted contracts |
$ | $ | ||||||
Estimated earnings |
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Billings to date |
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Costs and estimated earnings in excess of billings |
$ | $ | ||||||
Quarter Ended June 30, |
Nine Months Ended |
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2020 |
2019 |
2020 |
2019 |
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Net Income |
$ | $ | $ | $ | ||||||||||||
Common Shares: |
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Weighted average common shares outstanding |
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Effect of dilutive stock options |
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Diluted shares outstanding |
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Basic: |
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Net earnings per share |
$ | $ | $ | $ | ||||||||||||
Diluted: |
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Net earnings per share |
$ | $ | $ | $ | ||||||||||||
Quarter Ended June 30, |
Nine Months Ended June 30, |
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2020 |
2019 |
2020 |
2019 |
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Equipment sales recognized over time |
$ |
$ |
$ |
$ |
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Equipment sales recognized at a point in time |
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Parts and component sales |
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Freight revenue |
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Other |
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Net revenue |
$ |
$ |
$ |
$ |
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Exhibit 31.1 | Certification of Chief Executive Officer Pursuant to Rule 13a – 14(a) of the Securities Exchange Act of 1934, as amended | |
Exhibit 31.2 | Certification of Chief Financial Officer Pursuant to Rule 13a – 14(a) of the Securities Exchange Act of 1934, as amended | |
Exhibit 32 | Certifications of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U. S. C. Section 1350 | |
Exhibit 101.1 | Interactive Data File | |
101.INS | XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |
101.SCH | XBRL Schema Document | |
101.CAL | XBRL Calculation Linkbase Document | |
101.DEF | XBRL Definition Linkbase Document | |
101.LAB | XBRL Label Linkbase Document | |
101.PRE | XBRL Presentation Linkbase Document | |
104 | The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020, formatted in Inline XBRL (included in Exhibit 101) |
GENCOR INDUSTRIES, INC. |
/s/ John E. Elliott |
John E. Elliott |
Chief Executive Officer |
August 7, 2020 |
/s/ Eric E. Mellen |
Eric E. Mellen |
Chief Financial Officer |
(Principal Financial and Accounting Officer) |
August 7, 2020 |