GUNTHER INTL : Inc.jet Holding, Inc. Announces Second Quarter End Financial Results

inc.jet Holding, Inc

Condensed Consolidated Financial Statements

(Unaudited)

Interim Periods Ended June 30, 2022 and 2021

inc.jet Holding, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(dollar amounts in thousands, except share and per share data)

		June 30, 2022		December 31, 2021
Assets
Current Assets:
Cash	$	2,088	$	2,255
Accounts receivable, less allowance of $31 in 2022 and 2021		1,473			1,866
Receivable from sale of Mail Inserting segment		858			858
Inventories		2,541			2,122
Other current assets		111			153
Total current assets		7,071			7,254
Equipment and leasehold improvements		1,258			1,258
Accumulated depreciation and amortization		(433)			(369)
		825			889
Patents, net of amortization		33			36
Deferred income taxes		1,811			1,943
Lease - right-of-use		234			273
		2,078			2,252
Total Assets	$	9,974	$	10,395
Liabilities and Stockholders' Equity:
Current Liabilities:
Accounts payable	$	1,305	$	1,674
Accrued expenses		324			444
Accrued warranty		468			443
Lease payable		76			76
Total current liabilities		2,173			2,637
Long Term Liabilities:
Notes payable due to Gunther Partners LLC - a related party		1,000			1,000
Leases payable, less current portion		158			197
Total long term liabilities		1,158			1,197
Total liabilities		3,331			3,834
Stockholders' Equity:
Preferred stock, $.001 par value: 500,000 shares authorized; none issued		-			-
Common stock, $.001 par value: 32,000,000 shares authorized; 19,243,110 and 18,710,549
shares issued and outstanding at December 31, 2021 and June 30, 2022, respectively		19			19
Additional paid-in capital		19,499			19,804
Accumulated deficit		(12,875)			(13,262)
Total Stockholders' Equity		6,643			6,561
Total Liabilities and Stockholders' Equity	$	9,974	$	10,395

See accompanying notes.

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inc.jet Holding, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(dollar amounts in thousands, except share and per share data)

		Three Months Ended June 30,			Six Months Ended June 30,
		2022			2021			2022			2021
Sales:
Systems	$	1,315	$	1,760	$	2,928	$	3,077
Supplies		2,917			2,589			5,481			5,160
Total sales		4,232			4,349			8,409			8,237
Cost of sales:
Systems		837			914			1,717			1,687
Supplies		2,091			1,853			3,927			3,698
Total cost of sales		2,928			2,767			5,644			5,385
Gross profit		1,304			1,582			2,765			2,852
Operating expenses:
Selling and administrative		640			701			1,251			1,331
Research and development		408			314			989			567
Total operating expenses		1,048			1,015			2,240			1,898
Operating income		256			567			525			954
Interest expense, net		5			1			6			1
Income before income taxes		251			566			519			953
Income tax expense		64			137			132			234
Net income	$	187		$	429		$	387		$	719
Basic and diluted net income per share	$	0.01	$	0.02	$	0.02	$	0.04
Weighted-average number of common shares outstanding:
Basic		18,710,549			19,767,435			18,710,549			19,767,435
Diluted		18,968,614			19,945,547			19,448,813			19,916,968

See accompanying notes.

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inc.jet Holding, Inc.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

(Unaudited) (Dollars in thousands)

																				Additional
		Common Stock			Treasury Stock					Paid-in		Accumulated
		Shares				Amount			Shares					Amount					Capital				Deficit				Total
Balance, December 31, 2020	19,767,435					20				-					-					20,060					(15,045)				5,035
Net income	-					-				-					-					-					290					290
Balance, March 31, 2021	19,767,435					20				-					-					20,060					(14,755)				5,325
Stock-based compensation expense	-					-														3					-					3
Net income	-					-				-					-					-					430					430
Balance, June 30, 2021	19,767,435					20				-					-					20,063					(14,325)				5,758
Stock-based compensation expense	-					-				-					-					28					-					28
Net income	-					-				-					-					-					453					453
Repurchase of stock	(524,325)				(1)			-					-					(314)				-					(315)
Balance, September 30, 2021	19,243,110				$	19				-		$	-		$	19,777			$	(13,872)			$	5,924
Stock-based compensation expense	-					-				-					-					27					-					27
Net income	-					-				-					-					-					610					610
Balance, December 31, 2021	19,243,110				$	19				-	$	-	$	19,804		$	(13,262)			$	6,561
Stock-based compensation expense	-					-				-					-					7					-					7
Net income	-					-				-					-					-					200					200
Repurchase of stock	(175,000)				-				-					-					(105)				-					(105)
Balance, March 31, 2022	19,068,110				$	19				-		$	-		$	19,706			$	(13,062)			$	6,663
Stock-based compensation expense	-					-				-					-					7					-					7
Net income	-					-				-					-					-					187					187
Repurchase of stock	(357,561)				-				-					-					(214)				-					(214)
Balance, June 30, 2022	18,710,549				$	19				-		$	-		$	19,499			$	(12,875)			$	6,643

See accompanying notes.

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inc.jet Holding, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(dollar amounts in thousands)

		Six Months Ended June 30,
		2022			2021
Continuing operating activities:
Net income	$	387	$	719
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization		67			42
Deferred income taxes		132			234
Repurchase of stock					-
Stock-based compensation		14			4
Changes in operating assets and liabilities:
Accounts receivable		393			(90)
Inventories		(419)			(128)
Prepaid expenses and other assets		81			68
Accounts payable		(369)			5
Accrued expenses		(134)			(71)
Net cash (used in) provided by operating activities		152			784
Investing activities:
Purchase of equipment, software, and leasehold improvements		-			(200)
Repurcahse of stock		(319)			-
Net cash used in investing activities		(319)			(200)
Change in cash		(167)			584
Cash, beginning of period		2,255			771
Cash, end of period	$	2,088	$	1,355

See accompanying notes.

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