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2023-08-10
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
8-K
CURRENTREPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest EventReported):
August 10, 2023
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.)
15707 Rockfield Blvd
,
Suite 105
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 August 10, 2023,Interlink Electronics, Inc. announced its financial results
for the quarter ended June 30, 2023. A copy of the press release isbeing
furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information in this Item 2.02 of Current Reporton Form 8-K and Exhibit
99.1 attached hereto is intended to be furnished and shall not be deemed
"filed" for purposes of Section18 of the Securities Exchange Act of 1934 (the
"Exchange Act") or otherwise subject to the liabilities of that section,
norshall it be deemed incorporated by reference in any filing under the
Securities Act of 1933 or the Exchange Act, except as expressly setforth by
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 August 10, 2023.
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: August 10, 2023 INTERLINK ELECTRONICS, INC.
By: /s/ Ryan J. Hoffman
Ryan J. Hoffman
Chief Financial Officer
3
Exhibit 99.1
Interlink Electronics Reports Second Quarter2023 Results
Net income rose 240% from year ago quarteron acquisitions and organic growth
August 10, 2023 6:00 AM PDT
IRVINE, CA - (Business Wire) - Interlink Electronics, Inc.(NASDAQ: LINK), a
world-leading provider of sensors and printed electronic solutions that
support a wide range of applications, includingHuman-Machine Interface ("HMI")
devices and IoT solutions, today announced its financial results for the
three- and six-monthperiods ended June 30, 2023.
Revenue for the quarter was approximately $4.05 million, up 98% fromthe prior
year period due to revenues from the gas-sensor and membrane keypads
operations acquired in December 2022 and March 2023, inaddition to increased
sales of the company's traditional force-sensor products. This in turn drove a
116% increase in the Company'sgross profit to approximately $2.06 million and
a 240% increase in net income to $381,000.
The following table sets forth the consolidated financial highlights.
Consolidated Financial Highlights
(Amounts in thousands except per share data and percentages)
Three Months Six Months
Ended June 30, Ended June 30,
Consolidated 2023 2022 $ % 2023 2022 $ %
Financial Results
Revenue $ 4,049 $ 2,040 $ 2,009 98.5 % $ 7,327 $ 4,031 $ 3,296 81.8 %
Gross $ 2,061 $ 952 $ 1,109 116.5 % $ 3,648 $ 2,193 $ 1,455 66.3 %
profit
Gross 50.9 % 46.7 % 49.8 % 54.4 %
margin
Income (loss) $ 406 $ (151 ) $ 557 $ 233 $ (133 ) $ 366
from operations
Net $ 381 $ 112 $ 269 $ 190 $ 254 $ (64 )
income
Net income (loss) applicable $ 281 $ 12 $ 269 $ (10 ) $ 54 $ (64 )
to common stockholders
Earnings (loss) per $ 0.04 $ 0.00 $ 0.04 $ 0.00 $ 0.01 $ (0.01 )
common share - diluted
. Revenue nearly doubled to $4.05 million in the second quarter of 2023 comparedto the prior year period,
and increased 82% to $7.33 million for the six-month period. This was due primarily to the inclusion of
revenuesfrom our Gas and Environmental Sensors division (the SPEC Sensors/KWJ Engineering electrochemical
gas sensor businesses that were acquiredin December 2022) and, for the three-month period, from the
Calman Technology Limited membrane keypad and printed electronics operationsacquired in March 2023. The
increase was also attributable to an exceptional quarter the Company experienced in its force-sensor
resistorbusiness due to an increase in shipments to our medical market customers, reflecting the easing
of pandemic restrictions that previouslydelayed installations of their products in hospitals settings.
. Gross profit for the quarter more than doubled to $2.06 million compared to the year ago
quarter due mostly to our increased revenuesand also to an increase in gross margin
percentage to 51% from 47%. For the six-month period, gross profit was $3.65 million, up 66%
fromthe prior year period due primarily to the effect of higher revenues, offset in part
by a decline in gross margin percentage from 54%to 50%. The increase in gross margin
percentage for the three-month period was due to lower materials and components costs on
certainorders and favorable changes in product and customer mix, reversing the trend from
the previous quarter that led to the decline for thesix-month period ended June 30, 2023.
. Net income for the quarter was $381,000, up 240% from the $112,000recorded for
the prior year period as the increase in gross profit more than offset higher
selling, general and administrative expensesattributable to increased headcount
as a result of the SPEC/KWJ and Calman acquisitions and additional legal and
professional fees relatedto the acquisitions. For the six months, net income fell
from $254,000 to $190,000 on higher selling, general and administrative expensesand
research and development costs attributable to the Gas and Environmental Sensors
division, with the Calman acquisition only closinglate in the first quarter.
. Netincome applicable to common stockholders increased to $281,000 ($0.04
per share) for the quarter from $12,000 ($0 per share) in the prioryear
period, but declined to a loss of $10,000 ($0 per share) for the six
months from income of $54,000 ($0.01 per share) in the prioryear period.
. TheCompany ended the quarter with $5.1 million of cash and cash equivalents.
"This quarter is the first period in which we have included fullresults from
both the Gas and Environmental Sensors division and Calman, and these results
reinforce our belief in the significant growthpotential for those operations,"
said Steven N. Bronson, Chairman, President, and CEO of Interlink Electronics.
"At the sametime, we saw an exceptional quarter in our traditional
force-sensor resistor and human-machine interface markets, and we continue to
investin exploring new markets and acquisition opportunities."
About Interlink Electronics, Inc.
Interlink Electronics is a world-leading providerof sensors and printed
electronic solutions that support a wide range of applications, including
Human-Machine Interface ("HMI")devices and IoT solutions, utilizing our
expertise in materials science, manufacturing, firmware and software to
produce in-house systemsolutions for custom specifications. We have a proven
track record of supplying mission-critical technological solutions in diverse
marketsincluding medical devices, automotive, gas detection and environmental
quality monitoring, oil and gas and general industrial, and consumerelectronics,
providing standard and custom-designed sensors that provide the flexibility
and functionality needed for today's sophisticatedapplications.
The Company's products and solutions currentlyfocus on three main fields:
. For nearly 40 years, the Company has led theprinted electronics industry in
commercializing its patented Force Sensing Resistor(R) technology, which offers
pressure and positionsensing and rugged capabilities in a very wide range of
temperatures. Our piezoelectric film sensors offer strain, bend and vibrationsensing
and can be used on curved surfaces, while our advanced matrix sensor solutions
offer multiple touch capabilities. We supply someof the world's top electronics
manufacturers with intuitive sensor and interface technologies for use in
advanced applications such asmedical robotics and vehicle collision detection.
. Our Gas and Environmental Sensors division hasover 25 years of experience in
cutting-edge design and manufacture of electrochemical gas-sensing technology
for industry, community,health and home. We provide advanced sensor
solutions, precision sensing instruments, and custom engineering services for
detecting gasessuch as carbon monoxide, ozone, hydrogen, NOX gases and
ammonia, for transdermal alcohol detection and for air quality monitoring.
Ourinnovative printed sensor design enables high-sensitivity, low-power and
cost-effective solutions for broad adoption in the rapidly growingIOT market.
. Our Calman Technology subsidiary brings over25 years of experience in the design and manufacture of membrane keypads,
graphic overlays and industrial label products. We offer IP-rateddigital and hybrid printed devices featuring
integrated backlighting and shielding and printed electronics with advanced materials inkprinting. Calman has
customers in fields such as medical devices and defense technologies and gives the Company a base in Europe.
We serve our international customer base fromour corporate headquarters in
Irvine, California; our Global Product Development and Materials Science
Center and distribution and logisticscenter in Camarillo, California; our
advanced printed-electronics manufacturing facilities in Shenzhen, China, and
Irvine, Scotland; andour proprietary gas-sensor production and product
development facility in Newark, California.
For more information, please visit InterlinkElectronics.com.
Forward Looking Statements
This release contains "forward-looking statements" withinthe meaning of the
safe harbor provisions of the Private Securities Litigation Reform Act of
1995. Forward-looking statements can be generallyidentified by phrases such as
"thinks," "anticipates," "believes," "estimates," "expects," "intends,"
"plans," and similar words. Forward-looking statements in this press include
statements about our acquisitionprogram, our projected revenue and earnings
growth, and the effects of recent acquisitions, including contributions to our
products, manufacturingoperations and the markets we serve. Forward-looking
statements are not guarantees of future performance and are inherently subject
touncertainties and other factors which could cause actual results to differ
materially from the forward-looking statement. These statementsare based upon,
among other things, assumptions made by, and information currently available
to, management, including management'sown knowledge and assessment of the
company's industry, R&D initiatives, competition and capital requirements.
Other factorsand uncertainties that could affect the company's forward-looking
statements include, among other things, the following: our successin
predicting new markets and the acceptance of our new products; efficient
management of our infrastructure; the pace of technologicaldevelopments and
industry standards evolution and their effect on our target product and market
choices; the effect of outsourcing technologydevelopment; changes in the
ordering patterns of our customers; a decrease in the quality and/or
reliability of our products; protectionof our proprietary intellectual
property; competition by alternative sophisticated as well as generic
products; continued availabilityof raw materials for our products at
competitive prices; disruptions in our manufacturing facilities; risks of
international sales andoperations 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-lookingstatements are under the captions "Risk Factors" and
"Management's Discussion and Analysis of Financial Conditionand Results of
Operations" in our most recent Annual Report (Form 10-K) or Quarterly Report
(Form 10-Q) filed with the Securitiesand Exchange Commission. Forward-looking
statements are made as of the date of this release, and we expressly disclaim
any obligationto 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)
June 30, December 31,
2023 2022
(in thousands, except par value)
ASSETS
Current assets
Cash and cash equivalents $ 5,106 $ 10,091
Accounts receivable, net 2,147 1,178
Inventories 2,940 2,112
Prepaid expenses and other current assets 252 321
Total current assets 10,445 13,702
Property, plant and equipment, net 337 184
Intangible assets, net 324 76
Goodwill 4,545 650
Right-of-use assets 225 172
Deferred tax assets 129 134
Other assets 74 65
Total assets $ 16,079 $ 14,983
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 1,090 $ 273
Accrued liabilities 476 568
Lease liabilities, current 157 131
Accrued income taxes 423 117
Total current liabilities 2,146 1,089
Long-term liabilities
Lease liabilities, long term 77 46
Total long-term liabilities 77 46
Total liabilities 2,223 1,135
Stockholders' equity
Preferred stock ($5.0 million liquidation preference) 2 2
Common stock 7 7
Additional paid-in-capital 62,440 62,617
Accumulated other comprehensive income (loss) 97 (98 )
Accumulated deficit (48,690 ) (48,680 )
Total stockholders' equity 13,856 13,848
Total liabilities and stockholders' equity $ 16,079 $ 14,983
INTERLINK ELECTRONICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2023 2022 2023 2022
(in thousands, except per share data)
Revenue, net $ 4,049 $ 2,040 $ 7,327 $ 4,031
Cost of revenue 1,988 1,088 3,679 1,838
Gross profit 2,061 952 3,648 2,193
Operating expenses:
Engineering, research and development 650 330 1,177 593
Selling, general and administrative 1,005 773 2,238 1,733
Total operating expenses 1,655 1,103 3,415 2,326
Income (loss) from operations 406 (151 ) 233 (133 )
Other income (expense):
Other income (expense), net 64 342 128 497
Income before income taxes 470 191 361 364
Income tax expense 89 79 171 110
Net income $ 381 $ 112 $ 190 $ 254
Net income (loss) applicable to common stockholders $ 281 $ 12 $ (10 ) $ 54
Earnings (loss) per common share - basic and diluted $ 0.04 $ 0.00 $ 0.00 $ 0.01
Weighted average common shares outstanding - basic and diluted 6,600 6,602 6,610 6,602
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