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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported):
November 10, 2022
INTERLINK ELECTRONICS, INC.
(Exact Name of Registrant as Specified in Charter)
Nevada 001-37659 77-0056625
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
1 Jenner
,
Suite 200
Irvine 92618
,
California
(Address of Principal Executive Offices) (Zip Code)
(
805
)
484-8855
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Name of each exchange
Symbol(s) on which registered
Common Stock, $0.001 par value LINK The NASDAQ Stock Market LLC
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of
the following provisions (
see
General Instruction A.2. below):
.. Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
.. Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
.. Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
.. Pre-commencement communications pursuant to Rule 13e-4(c)) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as
defined in Rule 405 of the Securities Act of 1933 ((s)230.405 of this chapter)
or Rule 12b-2 of the Securities Exchange Act of 1934 ((s)240.12b-2 of this
chapter).
Emerging growth company
..
If an emerging growth company, indicate by check mark if the registrant has
elected not to use the extended transition period for complying with any new
or revised financial accounting standards provided pursuant to Section 13(a)
of the Exchange Act.
..
Item 2.02. Results of Operations and Financial Condition.
On November 10, 2022, Interlink Electronics, Inc.announced its financial
results for the quarter ended September 30, 2022. A copy of the press release
is being furnished as Exhibit 99.1to this Current Report on Form 8-K.
The information in this Item 2.02 of Current Report on Form 8-K andExhibit
99.1 attached hereto is intended to be furnished and shall not be deemed
"filed" for purposes of Section 18 of theSecurities Exchange Act of 1934 (the
"Exchange Act") or otherwise subject to the liabilities of that section, nor
shall itbe deemed incorporated by reference in any filing under the Securities
Act of 1933 or the Exchange Act, except as expressly set forthby specific
reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
The following exhibits are filed as partof this Current Report on Form 8-K:
Exhibit
Number Description
99.1 Press Release Issued by Interlink Electronics, Inc. dated November 10, 2022.
104 Cover Page Interactive Data File for this Current Report on Form 8-K (formatted as Inline XBRL and contained in Exhibit 101)
2
SIGNATURES
Pursuant to the requirements of the SecuritiesExchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: November 10, 2022 INTERLINK ELECTRONICS, INC.
By: /s/ Ryan J. Hoffman
Ryan J. Hoffman
Chief Financial Officer
3
Exhibit 99.1
Interlink ElectronicsReports Third Quarter 2022 Results
November 10, 2022 6:00 AM PDT
IRVINE, CA - (Business Wire) - Interlink Electronics, Inc.(NASDAQ: LINK), an
industry-leading trusted advisor and technology partner in the advancing world
of human-machine interface (HMI) andforce-sensing technologies, today
announced its financial results for the three and nine months ended September
30, 2022. The followingtable sets forth the consolidated financial highlights.
Consolidated Financial Highlights
(Amounts in thousands, except per share data and percentages)
Three months ended Nine months ended
September 30, September 30,
Consolidated 2022 2021 $ % 2022 2021 $ %
Financial Results
Revenue $ 1,851 $ 2,223 $ (372 ) (16.7 )% $ 5,882 $ 5,855 $ 27 0.5 %
Gross $ 872 $ 1,292 $ (420 ) (32.5 )% $ 3,065 $ 3,293 $ (228 ) (6.9 )%
profit
Gross 47.1 % 58.1 % 52.1 % 56.2 %
margin
Income (loss) $ (190 ) $ 259 $ (449 ) $ (323 ) $ 332 $ (695 )
from operations
Net $ 6 $ 223 $ (217 ) $ 260 $ 243 $ 17
income
Net income (loss) applicable $ (94 ) $ 223 $ (317 ) $ (40 ) $ 243 $ (283 )
to common stockholders
Earnings (loss) per $ (0.01 ) $ 0.03 $ (0.04 ) $ (0.01 ) $ 0.04 $ (0.05 )
common share - diluted
. Revenue in the third quarter of 2022 decreased 17% from the same quarter last
year, with lower shipments of our custom products tocustomers in the industrial
and consumer markets and lower shipments of our standard products, offset by
higher shipments to customersin the medical market. This decline was partly
due to an industrial market customer's request to delay shipment on
approximately$0.1 million of product to a future quarter. Revenue for the 2022
year-to-date period increased 1% from last year, driven by higherdemand of our
custom products in the industrial and medical markets, offset by lower orders
from our consumer market customers, in particularthe loss of a consumer market
customer program that had contributed revenue of approximately $1.3 million
in the nine months endedSeptember 30, 2021. The increase in shipments to our
medical market customers reflects the easing of pandemic restrictions that
previouslydelayed installations of our products in hospitals and medical
offices. Fluctuations in shipments of our products to our industrial andconsumer
market customers are due to variability in timing of order fulfillment
resulting from changes in demand levels on correspondingproducts and programs.
. Gross margin decreased to 47.1% in the current quarter from
58.1% in the year-ago quarter, and to 52.1% for the current
year-to-dateperiod from 56.2% in the prior year-to-date period. The
decreases in gross margin were primarily due to higher materials
and componentscosts on certain orders (as impacted by the global
chip shortage, which we expect will impact our gross margins
through 2023), fluctuationsin production efficiencies in our
manufacturing operations, and changes in customer and product mix.
. Income/loss from operations was a loss of $190 thousand for the third quarter of 2022, compared with income
of $259 thousandin the third quarter of 2021. Income/loss from operations was a loss of $323 thousand for the
year-to-date period of the currentyear, compared with income of $332 thousand in the year-to-date period of
2021. Operating income/loss in both periods in 2022 wasimpacted by lower gross profit and higher engineering
expenses in the current year due to additional employee headcount and increasedcosts on prototyping and development
activities, and lower engineering expenses in the prior year due to receipt of an incentive researchgrant
from the Singapore government. The 2021 year-to-date period also reflects lower selling, general and administrative
expenses dueto inclusion of a $186 thousand benefit from forgiveness of the PPP loan obtained in 2020.
. The Company's net income of $6 thousand in the third quarter of 2022 and
$260 thousand in the 2022 year-to-date periodbenefited from gains on
marketable securities of $181 thousand and $562 thousand, respectively. The
Company did not own anymarketable securities in the prior year periods.
. Interlink ended the quarter with $3.9 million of cash and cash equivalents and $6.6 million of marketable securities.
"We have invested heavily in executive talent during fiscal 2022in order to
create the foundation from which Interlink can continue to grow," said Steven
N. Bronson, Chairman, President, and CEOof Interlink Electronics. "These
investments, while depressing short term earnings, help create an inflection
point for Interlinkin terms of growth and profitability which we believe will
increase the long-term earnings power of the company."
About Interlink Electronics, Inc.
Interlink Electronics is a world-leading trusted provider of HMI, sensor,and
IoT solutions. 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 35 years,
Interlink has led the printedelectronics industry in the commercialization of
its patented Force Sensing Resistor(R) technology and has supplied some of the
world'stop electronics manufacturers with intuitive sensor and interface
technologies like the VersaPad and the new VersaPad Plus, which boaststhe
largest active surface area of any resistive touchpad. It also has a proven
track record of supplying technological solutions formission-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
functionally theyseek in today's sophisticated electronic devices. Interlink
serves an international customer base from its headquarters in Irvine,California
, and world-class materials science lab and R&D center in Camarillo,
California. They are supported by strategic globallocations covering
manufacturing, distribution, and sales support. For more information, please
visit InterlinkElectronics.com.
Forward Looking Statements
This release contains forward-looking statements. Forward-lookingstatements
include, but are not limited to, the company's views on future financial
performance, and are generally identified byphrases such as "thinks,"
"anticipates," "believes," "estimates," "expects," "intends," "plans," and
similar words. Forward-looking statements are not guarantees of future
performance andare inherently subject to uncertainties and other factors which
could cause actual results to differ materially from the forward-lookingstatemen
t. 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 capitalrequirements. Other factors and uncertainties that
could affect the company's forward-looking statements include, among other
things,the following: 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; theeffect of outsourcing technology
development; changes in the ordering patterns of our customers; a decrease in
the quality and/or reliabilityof 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
ofinternational sales and operations including fluctuations in exchange rates;
compliance with regulatory requirements applicable to ourmanufacturing
operations; and customer concentrations. Additional factors that could cause
actual results to differ materially from thoseanticipated by our forward-looking
statements are under the captions "Risk Factors" and "Management's
Discussionand 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
INTERLINK ELECTRONICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
September 30, December 31,
2022 2021
(in thousands)
ASSETS
Current assets
Cash and cash equivalents $ 3,889 $ 10,777
Restricted cash - 5
Marketable securities 6,574 -
Accounts receivable, net 958 1,080
Inventories 1,057 814
Prepaid expenses and other current assets 453 391
Total current assets 12,931 13,067
Property, plant and equipment, net 196 338
Intangible assets, net 89 131
Right-of-use assets 197 163
Deferred tax assets 8 8
Other assets 39 72
Total assets $ 13,460 $ 13,779
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 358 $ 338
Accrued liabilities 334 507
Lease liabilities, current 144 138
Accrued income taxes 113 54
Total current liabilities 949 1,037
Long-term liabilities
Lease liabilities, long-term 60 37
Total long-term liabilities 60 37
Total liabilities 1,009 1,074
Stockholders' equity
Preferred stock 2 2
Common stock 7 7
Additional paid-in-capital 62,567 62,552
Accumulated other comprehensive income (loss) (133 ) 96
Accumulated deficit (49,992 ) (49,952 )
Total stockholders' equity 12,451 12,705
Total liabilities and stockholders' equity $ 13,460 $ 13,779
INTERLINK ELECTRONICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three months ended Nine months ended
September 30, September 30,
2022 2021 2022 2021
(in thousands, except
per share data)
Revenue, $ 1,851 $ 2,223 $ 5,882 $ 5,855
net
Cost of 979 931 2,817 2,562
revenue
Gross 872 1,292 3,065 3,293
profit
Operating
expenses:
Engineering, research 319 105 912 554
and development
Selling, general 743 928 2,476 2,407
and administrative
Total operating 1,062 1,033 3,388 2,961
expenses
Income (loss) (190 ) 259 (323 ) 332
from operations
Other income
(expense):
Other income 207 (6 ) 704 (25 )
(expense), net
Income before 17 253 381 307
income taxes
Income tax 11 30 121 64
expense
Net $ 6 $ 223 $ 260 $ 243
income
Net income applicable $ (94 ) $ 223 $ (40 ) $ 243
to common stockholders
Earnings per common share $ (0.01 ) $ 0.03 $ (0.01 ) $ 0.04
- basic and diluted
Weighted average common shares 6,603 6,602 6,603 6,601
outstanding - basic and diluted
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