CVD Equipment Corp Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>CVD Equipment Corp filed its Q1 2024 10-Q, detailing financial positions and customer concentration risks.</b>

AI Summary

CVD EQUIPMENT CORP (CVV) filed a Quarterly Report (10-Q) with the SEC on May 13, 2024. CVD Equipment Corp filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. The company is incorporated in New York and operates in the Special Industry Machinery sector. Key financial statement items like Common Stock, Additional Paid-In Capital, and Retained Earnings are reported for various periods. Customer concentration risk is noted, with data on receivables and sales revenue related to one, two, and three customers.

Why It Matters

For investors and stakeholders tracking CVD EQUIPMENT CORP, this filing contains several important signals. This 10-Q filing provides investors with the latest quarterly financial performance and position of CVD Equipment Corp. Understanding customer concentration is crucial for assessing revenue stability and potential risks for CVD Equipment Corp.

Risk Assessment

Risk Level: medium — CVD EQUIPMENT CORP shows moderate risk based on this filing. The company's financial health and future performance may be significantly impacted by customer concentration, as indicated by specific data on receivables and sales revenue tied to a small number of customers.

Analyst Insight

Investors should closely monitor CVD Equipment Corp's customer acquisition and retention strategies, as well as any changes in revenue concentration.

Key Numbers

• 2024-03-31 — Period End Date (CONFORMED PERIOD OF REPORT)
• 2024-05-13 — Filing Date (FILED AS OF DATE)
• 0000766792 — Central Index Key (COMPANY DATA)
• 3559 — SIC Code (STANDARD INDUSTRIAL CLASSIFICATION)

Key Players & Entities

• CVD EQUIPMENT CORP (company) — FILER
• 2024-03-31 (date) — CONFORMED PERIOD OF REPORT
• 2024-05-13 (date) — FILED AS OF DATE
• 0000766792 (company) — CENTRAL INDEX KEY
• 3559 (industry_code) — STANDARD INDUSTRIAL CLASSIFICATION
• NY (state) — STATE OF INCORPORATION
• 11722 (zip_code) — BUSINESS ADDRESS ZIP
• 6319817081 (phone) — BUSINESS PHONE

FAQ

Risk Factors

• Customer Concentration Risk [high — financial]: The company faces significant customer concentration risk, with a substantial portion of its accounts receivable and sales revenue attributable to a small number of customers.

Industry Context

CVD Equipment Corp operates in the Special Industry Machinery sector, which involves the manufacturing of specialized machinery for various industrial applications.

Regulatory Implications

The filing is a Form 10-Q, a quarterly report required by the U.S. Securities and Exchange Commission (SEC) for publicly traded companies.

What Investors Should Do

1. Analyze the detailed breakdown of customer concentration risk for CVD Equipment Corp.
2. Review the balance sheet and income statement data for Q1 2024 compared to prior periods.
3. Assess the company's operational segments and any disclosed revenue trends within them.

Key Dates

• 2024-03-31: Quarter End Date — End of the reporting period for the 10-Q filing.
• 2024-05-13: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial filing analyzed for the specified period, so direct comparison to a prior filing is not available within this data.

Key Financial Figures

• $0.01 — ate: 6,824,511 shares of Common Stock, $0.01 par value at May 10, 2024. CVD EQUIPM

Filing Documents

• form10-q.htm (10-Q) — 829KB
• ex31-1.htm (EX-31.1) — 18KB
• ex31-2.htm (EX-31.2) — 19KB
• ex32-1.htm (EX-32.1) — 5KB
• ex32-2.htm (EX-32.2) — 6KB
• 0001493152-24-018873.txt (&nbsp;) — 4128KB
• cvv-20240331.xsd (EX-101.SCH) — 28KB
• cvv-20240331_cal.xml (EX-101.CAL) — 43KB
• cvv-20240331_def.xml (EX-101.DEF) — 86KB
• cvv-20240331_lab.xml (EX-101.LAB) — 233KB
• cvv-20240331_pre.xml (EX-101.PRE) — 182KB
• form10-q_htm.xml (XML) — 684KB

- Financial Information

Part I - Financial Information Item 1 – Condensed Consolidated Financial Statements (Unaudited) Condensed Consolidated Balance Sheets at March 31, 2024 and December 31, 2023 3 Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023 4 Condensed Consolidated Statements of Changes in Stockholders' Equity for the three months ended March 31, 2024 and 2023 5 Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 6 Notes to Condensed Consolidated Financial Statements 7 Item 2 – Management's Discussion and Analysis of Financial Condition and Results of Operations 20 Item 3 – Quantitative and Qualitative Disclosures About Market Risk 28 Item 4 – Controls and Procedures 28

- Other Information

Part II - Other Information Item 1 – Legal Proceedings 29 Item 1A- Risk Factors 29 Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds 29 Item 3 – Defaults Upon Senior Securities 29 Item 4 – Mine Safety Disclosures 29 Item 5 – Other Information 29 Item 6 – Exhibits 29

Signatures

Signatures 30 Exhibit Index 2 PART 1 – FINANCIAL INFORMATION Item 1 – Financial Statements CVD EQUIPMENT CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheets (in thousands, except share amounts) (Unaudited) March 31, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 11,893 $ 14,025 Accounts receivable, net of allowance for credit losses 2,971 1,906 Contract assets 2,689 1,604 Inventories 4,925 4,454 Other current assets 858 852 Total current assets 23,336 22,841 Property, plant and equipment, net 12,089 12,166 Other assets 18 18 Total assets $ 35,443 $ 35,025 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 1,798 $ 1,203 Accrued expenses 1,690 1,765 Current maturities of long-term debt 83 81 Deposit from purchaser of MesoScribe assets-Note 11 597 597 Contract liabilities 6,030 4,908 Total current liabilities 10,198 8,554 Long-term debt, net of current portion 247 268 Total liabilities 10,445 8,822 Contingencies – Note 12 - - Stockholders' equity: Common stock - $ 0.01 par value – 20,000,000 shares authorized; 6,824,511 issued and outstanding at March 31, 2024 and December 31, 2023 68 68 Additional paid-in capital 28,962 28,695 Accumulated deficit ( 4,032 ) ( 2,560 ) Total stockholders' equity 24,998 26,203 Total liabilities and stockholders' equity $ 35,443 $ 35,025 The accompanying notes are an integral part of these condensed consolidated financial statements 3 CVD EQUIPMENT CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Operations (in thousands, except per share and share amounts) (Unaudited) 2024 2023 Three Months Ended March 31, 2024 2023 Revenue $ 4,922 $ 8,695 Cost of revenue 4,063 6,261 Gross profit 859 2,434 Operating expenses: Research and development 746 602 Selling 419 419 General and administrative 1,317

financial statements should be read in conjunction with that report

financial statements should be read in conjunction with that report. All material intercompany balances and transactions have been eliminated in consolidation. Reclassifications Certain reclassifications have been made to the prior period condensed consolidated financial statements to conform to the current period presentation. These reclassifications had no effect on net loss. . Liquidity At March 31, 2024, the Company had $ 11.9 million in cash and cash equivalents. The Company anticipates that the existing cash and cash equivalents balance together with potential future income from operations, collections of existing accounts receivable, revenue from its existing backlog of products as of this filing date, the sale of inventory on hand, deposits and down payments against significant orders will be adequate to meet its working capital and capital equipment requirements, and its anticipated cash needs over the next 12 months from the date of issuance of these condensed consolidated financial statements.. 7 NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition In accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 606 - Revenue from Contracts with Customers ("ASC 606 " ), the Company records revenue in an amount that reflects the consideration to which the Company expects to be entitled in exchange for goods or services promised to its customers. Under ASC 606 , the Company follows a five-step model to: (1) identify the contract with the customer; (2) identify the performance obligations in the contract; (3) determine the transaction price for the contract; (4) allocate the transaction price to the performance obligations; and (5) recognize revenue using one of the following two methods: Over time The Company designs, manufactures and sells custom chemical vapor deposition, thermal process equipment and other equipment through contractual agreements. These system sales require

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