VTSI 8-K
VirTra, Inc (VTSI)
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, 2020
VIRTRA, INC.
(Exact name of Registrant as Specified in Its Charter)
| Nevada | 001-38420 | 93-1207631 | ||
| (State or Other Jurisdiction | (Commission | (IRS Employer | ||
| of Incorporation) | File Number) | Identification No.) |
| 7970 S. Kyrene Rd. | ||
| Tempe, AZ | 85284 | |
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant’s Telephone Number, Including Area Code: (480) 968-1488
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
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:
| [ ] | 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)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
| Common Stock, $0.0001 par value | VTSI | NASDAQ Capital Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company [X]
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, 2020, VirTra, Inc. issued a press release announcing its financial results for the three and nine months ended September 30, 2020. A copy of this press release is attached hereto as Exhibit 99.1 and incorporated herein by reference. The information contained in the website is not a part of this Current Report on Form 8-K.
The information under this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of such section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits.
| Exhibit No. | Description | |
| 99.1 | Press release of VirTra, Inc. dated November 10, 2020. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| VIRTRA, INC. | ||
| Date: November 10, 2020 | By: | /s/ Robert D. Ferris |
| Name: | Robert D. Ferris | |
| Title: | Chief Executive Officer | |
Exhibit 99.1
VirTra Reports Third Quarter and Nine Month 2020 Financial Results
Sales Momentum Drives $6.4 Million in Revenue, EPS of $0.11, and Record $14.4 Million Backlog
TEMPE, Ariz. — November 10, 2020 — VirTra, Inc. (NASDAQ: VTSI) (“VirTra”), a global provider of training simulators for the law enforcement, military, educational and commercial markets, reported results for the third quarter and nine months ended September 30, 2020. The financial statements are available on VirTra’s website and here.
Third Quarter 2020 and Recent Highlights:
| ● | Awarded $1.9 million IDIQ (indefinite delivery/indefinite quantity) contract to develop training content in support of the Air Force Research Laboratory’s Airman Decision Making and Interface Research (ADMIRE) program as a result of recent partnership with Infoscitex (IST) | |
| ● | Received $1.5 million order from the U.S. Department of Homeland Security’s Federal Law Enforcement Training Centers (FLETC), which will result in VirTra’s simulators being installed at all four of FLETC’s training centers by December 2020 | |
| ● | Received $863,000 order from U.S. Customs and Border Protection (CBP) for simulation training products and services, including new, drop-in recoil kits | |
| ● | Appointed military simulation training expert, John Givens, to the Company’s board of directors to fill the vacancy left by Mitchell Saltz’s passing | |
| ● | Backlog increased to a record $14.4 million as of September 30, 2020 |
Third Quarter and Nine Month 2020 Financial Highlights:
| All figures in millions, except per share data | Q3 2020 | Q3 2019 | % Δ | YTD 2020 | YTD 2019 | % Δ | ||||||||||||||||||
| Total Revenue | $ | 6.4 | $ | 6.7 | -4 | % | $ | 12.5 | $ | 12.8 | -2 | % | ||||||||||||
| Gross Profit | $ | 4.0 | $ | 3.8 | 6 | % | $ | 7.1 | $ | 7.1 | 1 | % | ||||||||||||
| Gross Margin | 61.9 | % | 55.9 | % | 11 | % | 57.0 | % | 55.2 | % | 3 | % | ||||||||||||
| Net Income/Loss | $ | 0.9 | $ | 0.9 | -7 | % | $ | (0.1 | ) | $ | (0.0 | ) | N/A | |||||||||||
| Diluted EPS | $ | 0.11 | $ | 0.12 | -8 | % | $ | (0.02 | ) | $ | (0.00 | ) | N/A | |||||||||||
Management Commentary
“Despite our sales and installation teams facing the inherent challenges of a pandemic, our talented staff adapted to changing circumstances to produce financial results for the third quarter that were essentially in-line with our near record performance last year and new sales that exceeded last year’s performance,” said Bob Ferris, chairman and chief executive officer of VirTra. “Financially, the quarter was highlighted by revenue of $6.4 million, net income of $0.9 million, which drove EPS of $0.11 and adjusted EBITDA of $1.6 million, and perhaps most impressive, a record backlog of $14.4 million. Operationally, we built upon our relationship with FLETC, a national leader in law enforcement training, and we expanded our footprint in the military market with the $1.9 million contract we received through our partnership with IST on the ADMIRE program for the benefit of the Department of Defense.
“In 2019, we surged in the latter part of the year to deliver our 14th consecutive year of topline growth. While challenges to installations persist, the financial results of this quarter coupled with our increasing backlog demonstrate that, despite the unprecedented COVID-19 related headwinds, VirTra continues to effectively sell and service the essential needs of our customers. We are cautiously optimistic that, should the macro environment in the fourth quarter be similar to what it was in the third, we will deliver strong results for the rest of 2020.”
Third Quarter 2020 Financial Results
Total revenue decreased 4% to $6.4 million from $6.7 million in the third quarter of 2019. The decrease in total revenue was due to reduced equipment installations due to COVID-19 travel restrictions.
Gross profit increased 6% to $4.0 million (61.9% of total revenue) from $3.8 million (55.9% of total revenue) in the third quarter of 2019. The increase in gross profit was primarily due to reduced direct material costs and travel costs resulting from reduced sales.
Operating expense was $2.7 million compared to $2.5 million in the third quarter of 2019. The increase in operating expense was mainly due to a $266,000 impairment in the investment in That’s Eatertainment Corp. (“TEC”) which was recorded as operating expense.
Operating income was $1.2 million compared to $1.2 million in the third quarter of 2019.
Net income totaled $868,000, or $0.11 per diluted share, compared to net income of $937,000, or $0.12 per diluted share, in the third quarter of 2019.
Adjusted EBITDA was $1.6 million compared to $1.4 in the third quarter of 2019.
Financial Results for the Nine Months Ended September 30, 2020
Total revenue was $12.5 million compared to $12.8 million in the first nine months of 2019. The change in total revenue was due to reduced equipment installations due to COVID-19 travel restrictions.
Gross profit was $7.1 million (57.0% of total revenue) compared to $7.1 million (55.2% of total revenue) in the first nine months of 2019. The slight increase in gross profit was primarily due to sales volume and product mix, which tends to remain fairly consistent as a percentage of total revenue when compared annually.
Operating expense was $7.3 million compared to $7.2 million in the first nine months of 2019. The increase in net operating expense was primarily due to a $406,000 impairment in the investment of TEC, which was recorded as operating expense and was offset by reduced selling, general, and administrative costs from COVID-19 restrictions on travel and tradeshows.
Loss from operations was $115,000 compared to a loss from operations of $94,000 in the first nine months of 2019.
Net loss totaled $123,000, or $(0.02) per diluted share, compared to net loss of $10,000, or $(0.00) per diluted share in the comparable period a year ago.
Adjusted EBITDA was $615,000 compared to adjusted EBITDA of $339,000 in the first nine months of 2019.
At September 30, 2020, backlog totaled approximately $14.4 million, a $3.1 million increase compared to backlog of $11.3 million as of September 30, 2019. Accounts receivable and unbilled revenues totaled approximately $6.2 million as of September 30, 2020, compared to $5.9 million at December 31, 2019, an increase of $325,000. Cash and cash equivalents totaled $4.1 million at September 30, 2020 compared to cash and cash equivalents and certificates of deposit of $3.3 million at December 31, 2019, an increase of $0.8 million.
Conference Call
VirTra management will hold a conference call today (November 10, 2020) at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results. VirTra’s chairman and CEO, Bob Ferris, and CFO, Judy Henry, will host the call, followed by a question and answer period.
U.S. dial-in number: 844-602-0380
International number: 862-298-0970
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact VirTra’s IR team at 949-574-3860.
The conference call will be broadcast live and available for replay here and via the investor relations section of the company’s website.
A replay of the conference call will be available after 7:30 p.m. Eastern time on the same day through November 24, 2020.
Toll-free replay number: 877-481-4010
International replay number: 919-882-2331
Replay ID: 38151
About VirTra
VirTra (NASDAQ: VTSI) is a global provider of judgmental use of force training simulators, firearms training simulators and driving simulators for the law enforcement, military, educational and commercial markets. The company’s patented technologies, software, and scenarios provide intense training for de-escalation, judgmental use-of-force, marksmanship and related training that mimics real-world situations. VirTra’s mission is to save and improve lives worldwide through practical and highly effective virtual reality and simulator technology. Learn more about the company at www.VirTra.com.
About the Presentation of Adjusted EBITDA
Adjusted earnings before interest, income taxes, depreciation and amortization and before other non-operating costs and income (“Adjusted EBITDA”) is a non-GAAP financial measure. Adjusted EBITDA also includes non-cash stock option expense and other than temporary impairment loss on investments. Other companies may calculate Adjusted EBITDA differently. VirTra calculates its Adjusted EBITDA to eliminate the impact of certain items it does not consider to be indicative of its performance and its ongoing operations. Adjusted EBITDA is presented herein because management believes the presentation of Adjusted EBITDA provides useful information to VirTra’s investors regarding VirTra’s financial condition and results of operations and because Adjusted EBITDA is frequently used by securities analysts, investors and other interested parties in the evaluation of companies in VirTra’s industry, several of which present a form of Adjusted EBITDA when reporting their results. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of VirTra’s results as reported under accounting principles generally accepted in the United States of America (“GAAP”). Adjusted EBITDA should not be considered as an alternative for net income, cash flows from operating activities and other consolidated income or cash flows statement data prepared in accordance with GAAP or as a measure of profitability or liquidity. A reconciliation of net income to Adjusted EBITDA is provided in the following tables:
Reconciliation of net income (loss) to adjusted EBITDA
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
| September 30, | September 30, | Increase | % | September 30, | September 30, | Increase | % | |||||||||||||||||||||||||
| 2020 | 2019 | (Decrease) | Change | 2020 | 2019 | (Decrease) | Change | |||||||||||||||||||||||||
| Net Income (Loss) | $ | 868,084 | $ | 937,107 | $ | (69,023 | ) | -7 | % | $ | (122,586 | ) | $ | (9,526 | ) | $ | (113,060 | ) | 1187 | % | ||||||||||||
| Adjustments: | ||||||||||||||||||||||||||||||||
| Provision for income taxes | 354,941 | 347,787 | 7,154 | 2 | % | 40,467 | 23,539 | 16,928 | 72 | % | ||||||||||||||||||||||
| Depreciation and amortization | 95,259 | 77,259 | 18,000 | 23 | % | 274,866 | 222,471 | 52,395 | 24 | % | ||||||||||||||||||||||
| EBITDA | $ | 1,318,284 | $ | 1,362,153 | $ | (43,869 | ) | -3 | % | $ | 192,747 | $ | 236,484 | $ | (43,737 | ) | -18 | % | ||||||||||||||
| Impairment loss on That’s Eatertainment, related party | 266,000 | - | 266,000 | 100 | % | 406,000 | - | 406,000 | 100 | % | ||||||||||||||||||||||
| Reserve for note receivable | 9,461 | - | 9,461 | 100 | % | 220,997 | 102,473 | 118,524 | 116 | % | ||||||||||||||||||||||
| Adjusted EBITDA | $ | 1,593,745 | $ | 1,362,153 | $ | 231,592 | 17 | % | $ | 819,744 | $ | 338,957 | $ | 480,787 | 142 | % | ||||||||||||||||
Forward-Looking Statements
The information in this discussion contains forward-looking statements and information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. The words “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “will,” “should,” “could,” “predicts,” “potential,” “continue,” “would” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in the forward-looking statements that we make. The forward-looking statements are applicable only as of the date on which they are made, and we do not assume any obligation to update any forward-looking statements. All forward-looking statements in this document are made based on our current expectations, forecasts, estimates and assumptions, and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. In evaluating these statements, you should specifically consider various factors, uncertainties and risks that could affect our future results or operations. These factors, uncertainties and risks may cause our actual results to differ materially from any forward-looking statement set forth in the reports we file with or furnish to the Securities and Exchange Commission (the “SEC”). You should carefully consider these risk and uncertainties described and other information contained in the reports we file with or furnish to the SEC before making any investment decision with respect to our securities. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.
Investor Relations Contact:
Matt Glover or Charlie Schumacher
949-574-3860
VirTra, Inc.
Condensed Balance Sheets
| September 30, 2020 | December 31, 2019 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 4,097,484 | $ | 1,415,091 | ||||
| Certificates of deposit | - | 1,915,000 | ||||||
| Accounts receivable, net | 2,523,131 | 2,307,972 | ||||||
| Interest receivable | - | 7,340 | ||||||
| Inventory, net | 3,441,764 | 1,949,414 | ||||||
| Unbilled revenue | 3,689,442 | 3,579,942 | ||||||
| Prepaid expenses and other current assets | 461,612 | 353,975 | ||||||
| Total current assets | 14,213,433 | 11,528,734 | ||||||
| Long-term assets: | ||||||||
| Property and equipment, net | 1,089,385 | 1,028,198 | ||||||
| Operating lease right-of-use asset, net | 1,169,876 | 1,390,873 | ||||||
| Intangible assets, net | 266,843 | 217,930 | ||||||
| That’s Eatertainment note receivable, long term, net, related party | 285,288 | 291,110 | ||||||
| Security deposits, long-term | 19,712 | 19,712 | ||||||
| Other assets, long-term | 332,990 | 351,236 | ||||||
| Deferred tax asset, net | 1,712,000 | 1,792,000 | ||||||
| Investment in That’s Eatertainment, related party | 434,000 | 840,000 | ||||||
| Total long-term assets | 5,310,094 | 5,931,059 | ||||||
| Total assets | $ | 19,523,527 | $ | 17,459,793 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 649,293 | $ | 621,127 | ||||
| Accrued compensation and related costs | 995,946 | 611,487 | ||||||
| Accrued expenses and other current liabilities | 557,891 | 334,751 | ||||||
| Note payable, current | 601,696 | - | ||||||
| Operating lease liability, short-term | 315,476 | 297,244 | ||||||
| Deferred revenue, short-term | 3,369,569 | 2,490,845 | ||||||
| Total current liabilities | 6,489,871 | 4,355,454 | ||||||
| Long-term liabilities: | ||||||||
| Deferred revenue, long-term | 1,321,857 | 1,748,257 | ||||||
| Note payable, long-term | 724,265 | - | ||||||
| Operating lease liability, long-term | 935,622 | 1,174,882 | ||||||
| Total long-term liabilities | 2,981,744 | 2,923,139 | ||||||
| Total liabilities | 9,471,615 | 7,278,593 | ||||||
| Commitments and contingencies (See Note 11) | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock $0.0001 par value; 2,500,000 authorized; no shares issued or outstanding | - | - | ||||||
| Common stock $0.0001 par value; 50,000,000 shares authorized; 7,767,530 shares issued and outstanding as of September 30, 2020 and 7,745,030 shares issued and outstanding as of December 31, 2019 | 778 | 775 | ||||||
| Class A common stock $0.0001 par value; 2,500,000 shares authorized; no shares issued or outstanding | - | - | ||||||
| Class B common stock $0.0001 par value; 7,500,000 shares authorized; no shares issued or outstanding | - | - | ||||||
| Additional paid-in capital | 13,887,975 | 13,894,680 | ||||||
| Accumulated deficit | (3,836,841 | ) | (3,714,255 | ) | ||||
| Total stockholders’ equity | 10,051,912 | 10,181,200 | ||||||
| Total liabilities and stockholders’ equity | $ | 19,523,527 | $ | 17,459,793 | ||||
See accompanying notes to unaudited condensed financial statements.
VirTra, Inc.
Condensed Statements of Operations
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | |||||||||||||
| Revenues: | ||||||||||||||||
| Net sales | $ | 6,395,356 | $ | 6,682,728 | $ | 12,472,106 | $ | 12,696,810 | ||||||||
| That’s Eatertainment royalties/licensing fees, related party | 16,005 | 28,561 | 45,247 | 100,993 | ||||||||||||
| Other royalties/licensing fees | 2,360 | 2,120 | 4,310 | 21,257 | ||||||||||||
| Total revenue | 6,413,721 | 6,713,409 | 12,521,663 | 12,819,060 | ||||||||||||
| Cost of sales | 2,446,455 | 2,957,865 | 5,381,403 | 5,748,001 | ||||||||||||
| Gross profit | 3,967,266 | 3,755,544 | 7,140,260 | 7,071,059 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| General and administrative | 2,250,348 | 2,127,422 | 6,050,798 | 6,074,213 | ||||||||||||
| Research and development | 497,645 | 381,654 | 1,204,011 | 1,090,960 | ||||||||||||
| Net operating expense | 2,747,993 | 2,509,076 | 7,254,809 | 7,165,173 | ||||||||||||
| Income (loss) from operations | 1,219,273 | 1,246,468 | (114,549 | ) | (94,114 | ) | ||||||||||
| Other income (expense): | ||||||||||||||||
| Other income | 7,067 | 38,426 | 45,359 | 114,158 | ||||||||||||
| Other expense | (3,315 | ) | - | (12,929 | ) | (6,031 | ) | |||||||||
| Net other income | 3,752 | 38,426 | 32,430 | 108,127 | ||||||||||||
| Income (loss) before provision for income taxes | 1,223,025 | 1,284,894 | (82,119 | ) | 14,013 | |||||||||||
| Provision for income taxes | 354,941 | 347,787 | 40,467 | 23,539 | ||||||||||||
| Net income (loss) | $ | 868,084 | $ | 937,107 | $ | (122,586 | ) | $ | (9,526 | ) | ||||||
| Net income (loss) per common share: | ||||||||||||||||
| Basic | $ | 0.11 | $ | 0.12 | $ | (0.02 | ) | $ | (0.00 | ) | ||||||
| Diluted | $ | 0.11 | $ | 0.12 | $ | (0.02 | ) | $ | (0.00 | ) | ||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 7,760,799 | 7,745,030 | 7,753,034 | 7,748,543 | ||||||||||||
| Diluted | 7,842,475 | 7,721,574 | 7,753,034 | 7,748,543 | ||||||||||||
See accompanying notes to unaudited condensed financial statements.
VirTra, Inc.
Condensed Statements of Cash Flows
(Unaudited)
| Nine Months Ended | ||||||||
| September 30, 2020 | September 30, 2019 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (122,586 | ) | $ | (9,526 | ) | ||
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||||||
| Depreciation and amortization | 274,866 | 434,405 | ||||||
| Right of use amortization | 220,997 | - | ||||||
| Reserve for note receivable | 16,738 | 102,473 | ||||||
| Deferred taxes | 80,000 | 17,000 | ||||||
| Impairment of investment in That’s Eatertainment, related party | 406,000 | - | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net | (215,159 | ) | (129,398 | ) | ||||
| That’s Eatertainment note receivable, net, related party | (10,916 | ) | - | |||||
| Trade note receivable, net | - | 652 | ||||||
| Interest receivable | 7,340 | 3,923 | ||||||
| Inventory, net | (1,492,350 | ) | (1,206,098 | ) | ||||
| Unbilled revenue | (109,500 | ) | (1,422,221 | ) | ||||
| Prepaid expenses and other current assets | (107,637 | ) | (120,642 | ) | ||||
| Other assets | 18,246 | (48,140 | ) | |||||
| Security deposits, long-term | - | 320,044 | ||||||
| Accounts payable and other accrued expenses | 635,765 | 799,915 | ||||||
| Payments on operating lease liability | (221,028 | ) | (178,909 | ) | ||||
| Deferred revenue | 452,324 | 1,719,878 | ||||||
| Net cash (used in) provided by operating activities | (166,900 | ) | 283,356 | |||||
| Cash flows from investing activities: | - | - | ||||||
| Purchase of certificates of deposit | - | (3,560,000 | ) | |||||
| Redemption of certificates of deposit | 1,915,000 | 5,135,000 | ||||||
| Purchase of intangible assets | (55,580 | ) | (160,000 | ) | ||||
| Purchase of property and equipment | (329,386 | ) | (489,518 | ) | ||||
| Proceeds from sale of property and equipment | - | 2,631 | ||||||
| Net cash provided by investing activities | 1,530,034 | 928,113 | ||||||
| Cash flows from financing activities: | ||||||||
| Repurchase of stock options | (26,667 | ) | (16,110 | ) | ||||
| N/P Payable -Profiles | - | (11,250 | ) | |||||
| Stock options exercised | 19,965 | 11,426 | ||||||
| Purchase of treasury stock | - | (318,204 | ) | |||||
| Note payable-PPP Loan | 1,325,961 | - | ||||||
| Net cash provided by (used in) financing activities | 1,319,259 | (334,138 | ) | |||||
| Net increase in cash | 2,682,393 | 877,331 | ||||||
| Cash, beginning of period | 1,415,091 | 2,500,381 | ||||||
| Cash, end of period | $ | 4,097,484 | $ | 3,377,712 | ||||
| Supplemental disclosure of cash flow information: | ||||||||
| Cash (refunded) paid: | ||||||||
| Taxes (refunded) paid | $ | (39,533 | ) | $ | 6,539 | |||
| Interest paid | 5,247 | - | ||||||
| Supplemental disclosure of non-cash investing and financing activities: | ||||||||
| Conversion of That’s Eatertainment note receivable to long term, related party | - | 292,138 | ||||||
See accompanying notes to unaudited condensed financial statements.