Bloomia Holdings, Inc 10-Q for FY2023 Q3

Bloomia Holdings, Inc. (TULP)

10-Q 2023-05-11 For: 2023-03-31

Added on April 11, 2026

About this 10-Q

Bloomia Holdings, Inc filed this 10-Q on May 11, 2023, covering the quarter ended March 31, 2023 (FY2023 Q3).

Headline figures

Quarter ended March 31, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $12.83M; up 108.7% from $6.15M a year earlier
Net income: $1.65M; up 2558.1% from net income of $62K a year earlier
Diluted EPS: $0.91; up 2933.3% from $0.03 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →

Minnesota		41-1656308
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

Title of each class		Trading Symbol		Name of each exchange on which registered
Common Stock, $0.01 par value		ISIG		The Nasdaq Stock Market LLC

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated Filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

		Page
PART I.	FINANCIAL INFORMATION	3

Item 1.	Financial Statements	3

	Condensed Balance Sheets – March 31, 2023 (unaudited) and December 31, 2022	3

	Condensed Statements of Operations – Three months ended March 31, 2023 and 2022 (unaudited)	4

	Condensed Statements of Shareholders’ Equity – Three months ended March 31, 2023 and 2022 (unaudited)	5

	Condensed Statements of Cash Flows – Three months ended March 31, 2023 and 2022 (unaudited)	6

	Notes to Financial Statements – (unaudited)	7

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	12

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	17

Item 4.	Controls and Procedures	17

PART II.	OTHER INFORMATION	18

Item 1.	Legal Proceedings	18

Item 1A.	Risk Factors	18

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	19

Item 3.	Defaults upon Senior Securities	19

Item 4.	Mine Safety Disclosures	19

Item 5.	Other Information	19

Item 6.	Exhibits	20

Insignia Systems, Inc.
CONDENSED BALANCE SHEETS

	March 31,
	2023			December 31,
	(Unaudited)			2022
ASSETS
Current Assets:
Cash and cash equivalents	$	10,595,000		$	14,439,000
Restricted cash		85,000			85,000
Accounts receivable, net		9,307,000			5,557,000
Inventories		24,000			29,000
Income tax receivable		26,000			28,000
Prepaid production costs		1,390,000			535,000
Other prepaid expense		309,000			80,000
Total Current Assets		21,736,000			20,753,000

Other Assets:
Property and equipment, net		64,000			71,000
Operating lease right-of-use assets		131,000			144,000

Total Assets	$	21,931,000		$	20,968,000

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable		2,214,000			2,653,000
Accrued liabilities:
Compensation		602,000			962,000
Sales tax		921,000			717,000
Other		624,000			611,000
Current portion of operating lease liabilities		3,000			4,000
Deferred revenue		2,301,000			2,427,000
Total Current Liabilities		6,665,000			7,374,000

Long-Term Liabilities:
Accrued income taxes		54,000			53,000
Operating lease liabilities		133,000			140,000
Total Long-Term Liabilities		187,000			193,000

Commitments and Contingencies		—			—

Shareholders' Equity:
Common stock, par value $.01:
Authorized shares - 5,714,000
Issued and outstanding shares - 1,798,000 at March 31, 2023 and 1,797,000 December 31, 2022		18,000			18,000
Additional paid-in capital		16,488,000			16,458,000
Accumulated deficit		(1,427,000	)		(3,075,000	)
Total Shareholders' Equity		15,079,000			13,401,000

Total Liabilities and Shareholders' Equity	$	21,931,000		$	20,968,000

See accompanying notes to the condensed financial statements.

Insignia Systems, Inc.
CONDENSED STATEMENTS OF OPERATIONS
(Unaudited)

Three Months Ended March 31	2023		2022
Net services revenues	$	12,831,000	$	6,148,000

Cost of services		9,911,000		4,868,000
Gross Profit		2,920,000		1,280,000

Operating Expenses:
Selling		364,000		342,000
Marketing		296,000		259,000
General and administrative		721,000		606,000
Total Operating Expenses		1,381,000		1,207,000
Operating Income		1,539,000		73,000

Other Income (Expense)
Other income (expense)		112,000		(3,000	)
Total Other Income (Expense)		112,000		(3,000	)
Income Before Taxes		1,651,000		70,000

Income tax expense		3,000		8,000
Net Income	$	1,648,000	$	62,000

Net income per share:
Basic	$	0.92	$	0.03
Diluted	$	0.91	$	0.03

Shares used in calculation of net income per share:
Basic		1,798,000		1,786,000
Diluted		1,802,000		1,794,000

See accompanying notes to the condensed financial statements.

Insignia Systems, Inc.
CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY
(Unaudited)
					Additional
	Common Stock				Paid-In		Accumulated
	Shares		Amount		Capital		Deficit			Total
Balance at December 31, 2022		1,797,000	$	18,000	$	16,458,000	$	(3,075,000	)	$	13,401,000
Issuance of common stock, net		1,000		—		8,000		—			8,000
Value of stock-based compensation		—		—		22,000		—			22,000
Net income		—		—		—		1,648,000			1,648,000
Balance at March 31, 2023		1,798,000	$	18,000	$	16,488,000	$	(1,427,000	)	$	15,079,000

Insignia Systems, Inc.
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)

Three Months Ended March 31	2023			2022
Operating Activities:
Net income	$	1,648,000		$	62,000
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization		14,000			16,000
Changes in allowance for doubtful accounts		20,000			(12,000	)
Stock-based compensation expense		22,000			30,000
Changes in operating assets and liabilities:
Accounts receivable		(3,770,000	)		(2,206,000	)
Inventories		5,000			(12,000	)
Income tax receivable		2,000			(1,000	)
Prepaid expenses and other		(1,084,000	)		606,000
Accounts payable		(440,000	)		(654,000	)
Accrued liabilities		(138,000	)		(774,000	)
Accured income taxes		1,000			10,000
Deferred revenue		(126,000	)		(445,000	)
Net cash used in operating activities		(3,846,000	)		(3,380,000	)

Investing Activities:
Purchases of property and equipment		(6,000	)		(18,000	)
Net cash used in investing activities		(6,000	)		(18,000	)

Financing Activities:
Proceeds from issuance of common stock		8,000			28,000
Net cash provided by financing activities		8,000			28,000

Decrease in cash and cash equivalents and restricted cash		(3,844,000	)		(3,370,000	)

Cash and cash equivalents and restricted cash at beginning of period		14,524,000			3,851,000
Cash and cash equivalents and restricted cash at end of period	$	10,680,000		$	481,000

Non-cash financing activity:
Purchase of property and equiment included in accounts payable	$	-		$	5,000

See accompanying notes to the condensed financial statements.

	March 31,		December 31,
	2023		2022
Cash and cash equivalents	$	10,595,000	$	14,439,000
Restricted cash		85,000		85,000
Total cash, cash equivalents and restricted cash	$	10,680,000	$	14,524,000

Three months ended March 31	2023		2022
Denominator for basic net income per share - weighted average shares		1,798,000		1,786,000
Effect of dilutive securities:
Stock options, restricted stock and restricted stock units		4,000		8,000
Denominator for diluted net income per share - weighted average shares		1,802,000		1,794,000

Balance at December 31, 2022	$	2,427,000
Reclassification of beginning deferred revenue to revenue, as a result of performance obligations satisfied		(2,062,000	)
Cash received in advance and not recognized as revenue		1,936,000
Balance at March 31, 2023	$	2,301,000

	Three months ended March 31, 2023
	Corporate				Operating
	Headquarters		Warehouse		Leases
Operating lease cost	$	10,000	$	4,000	$	14,000
Variable lease cost		5,000		4,000		9,000
Total	$	15,000	$	8,000	$	23,000

	Three months ended March 31, 2022
	Corporate				Operating
	Headquarters		Warehouse		Leases
Operating lease cost	$	17,000	$	4,000	$	21,000
Variable lease cost		10,000		3,000		13,000
Total	$	27,000	$	7,000	$	34,000

2023		-
2024		52,000
2025		53,000
2026		55,000
Total lease payments	$	160,000
Less: Interest		24,000
Present value of lease liabilities	$	136,000

Three months ended March 31,	2023			2022
Federal statutory rate		21.0	%		21.0	%
Stock-based awards		(2.5	)		(0.7	)
State taxes		3.6			3.5
Impact of uncertain tax positions		0.1			11.7
Valuation allowance		(22.6	)		(24.8	)
Other		0.6			0.7

Effective federal income tax rate		0.2	%		11.4	%

For the Three Months Ended March 31	2023			2022
Net sales		100.0	%		100.0	%
Cost of sales		77.2			79.2
Gross profit		22.8			20.8
Operating expenses:
Selling		2.8			5.6
Marketing		2.3			4.2
General and administrative		5.7			9.8
Total operating expenses		10.8			19.6
Operating income		12.0			1.2
Other income (expense)		0.9			(0.1	)
Income before taxes		12.9			1.1
Income tax expense		0.1			0.1
Net income		12.8	%		1.0	%

	March 31,			December 31,
	2023			2022
Property and Equipment:
Production tooling, machinery and equipment	$	14,000		$	27,000
Office furniture and fixtures		94,000			95,000
Computer equipment and software		580,000			771,000
Leasehold improvements		19,000			19,000
Construction in-progress		6,000			3,000
		713,000			915,000
Accumulated depreciation and amortization		(649,000	)		(844,000	)
Net Property and Equipment	$	64,000		$	71,000

Three months ended March 31	2023		2022
Timing of revenue recognition:
Services transferred over time	$	263,000	$	456,000
Services transferred at a point in time		12,568,000		5,692,000
Total	$	12,831,000	$	6,148,000

	·	allowance for doubtful accounts;
	·	sales taxes;
	·	income taxes; and
	·	stock-based compensation expense.

	·	disruptions in the debt or equity capital markets;
	·	competitive pressures in our Lending Platform’s loan;
	·	changes in interest rates that may increase our Lending Platform’s funding costs; and
	·	market or customer perception of our Lending Platform’s reputation.

	·	inadequate or failed internal processes, systems, cybersecurity program, or infrastructure;
	·	Our Lending Platform’s inability to successfully implement enhancements to any of these or migrate to new systems or infrastructure;
	·	failed execution, including based on human error;
	·	inadequate or failed internal controls or processes to detect or prevent fraud or other violations of law or regulations; or
	·	external events, including a disruption involving physical site access, cyber incidents, catastrophic events, natural disasters, terrorist activities, or disease pandemics.

Exhibit Number	Description	Method of Filing

3.1	Restated Articles of Incorporation (effective as of January 4, 2021)	Exhibit 3.1 to Current Report filed January 6, 2021

3.2	Composite Bylaws, as amended through December 5, 2015	Exhibit 3.2 to Annual Report on Form 10-K for the year ended December 31, 2015

10.1*	Retention Agreement with Adam D. May dated January 13, 2023	Exhibit 10.1 to Form 8-K filed January 19, 2023

10.2*	Retention Agreement with Zackery A. Weber dated January 13, 2023	Exhibit 10.2 to Form 8-K filed January 19, 2023

10.3*	Employment Agreement with Randy Uglem dated March 31, 2023	Filed Electronically

31.1	Certification of Principal Executive and Financial Officer	Filed Electronically

31.2	Certification of Principal Accounting Officer	Filed Electronically

32	Section 1350 Certification	Furnished Electronically

101	The following materials from Insignia Systems, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, formatted in inline XBRL (extensible Business Reporting Language): (i) Condensed Balance Sheets; (ii) Condensed Statements of Operations; (iii) Condensed Statements of Shareholders’ Equity; (iv) Condensed Statements of Cash Flows; and (v) Notes to Financial Statements.	Filed Electronically
104	Cover Page Interactive Data File (embedded within the inline XBRL Document)	Filed Electronically

	INSIGNIA SYSTEMS, INC.
	(Registrant)

Dated: May 11, 2023	/s/ Kristine A. Glancy
	Kristine A. Glancy
	President and Chief Executive Officer
	(on behalf of registrant and as principal financial officer)

Dated: May 11, 2023	/s/ Zackery A. Weber
	Zackery A. Weber
	Vice President of Finance
	(principal accounting officer)

	INSIGNIA SYSTEMS, INC.

Date: 3/31/2023	/s/ Kristine Glancy
	By: Kristine Glancy
	Its: President and Chief Executive Officer

	EMPLOYEE:

Date: 3/31/2023	/s/ Randy Uglem
	Randy Uglem

1.	I have reviewed this quarterly report on Form 10-Q of Insignia Systems, Inc.;

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.	The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant is made known to us by others within the registrant, particularly during the period in which this report is being prepared; and

	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; and

	c)	Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

	d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;

	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

Date: May 11, 2023	/s/ Kristine A. Glancy
	Kristine A. Glancy
	(principal executive officer and principal financial officer)

(1)	The accompanying Quarterly Report on Form 10-Q for the period ended March 31, 2023, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)	The information contained in the accompanying Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of the Company.