CVD Equipment Corp. Files Q3 2024 10-Q

TL;DR

CVD Equipment Corp. 10-Q filed Nov 13, 2024 for Q3 ending Sep 30, 2024. Financials and operations detailed.

AI Summary

CVD Equipment Corp. filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the third quarter. Specific financial figures and operational highlights are presented within the report.

Why It Matters

This filing provides investors with the latest financial health and operational status of CVD Equipment Corp., crucial for understanding the company's trajectory and making informed investment decisions.

Risk Assessment

Risk Level: medium — The risk level is medium due to the nature of 10-Q filings which inherently contain forward-looking statements and financial performance data that can be volatile.

Key Players & Entities

• CVD EQUIPMENT CORP (company) — Filer of the 10-Q report
• 20240930 (date) — End of the reporting period
• 20241113 (date) — Filing date of the report

FAQ

Filing Documents

• form10-q.htm (10-Q) — 1207KB
• 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
• 0001493152-24-045104.txt ( ) — 5193KB
• cvv-20240930.xsd (EX-101.SCH) — 29KB
• cvv-20240930_cal.xml (EX-101.CAL) — 48KB
• cvv-20240930_def.xml (EX-101.DEF) — 99KB
• cvv-20240930_lab.xml (EX-101.LAB) — 246KB
• cvv-20240930_pre.xml (EX-101.PRE) — 198KB
• form10-q_htm.xml (XML) — 997KB

- Financial Information

Part I - Financial Information Item 1 – Condensed Consolidated Financial Statements (Unaudited) 3 Condensed Consolidated Balance Sheets at September 30, 2024 and December 31, 2023 3 Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2024 and 2023 4 Condensed Consolidated Statements of Changes in Stockholders' Equity for the three and nine months ended September 30, 2024 and 2023 5 Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 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

Management's Discussion and Analysis of Financial Condition and Results of Operations 21 Item 3 –

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 33 Item 4 –

Controls and Procedures

Controls and Procedures 33

- Other Information

Part II - Other Information Item 1 –

Legal Proceedings

Legal Proceedings 34 Item 1A -

Risk Factors

Risk Factors 34 Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds 34 Item 3 – Defaults Upon Senior Securities 34 Item 4 – Mine Safety Disclosures 34 Item 5 – Other Information 34 Item 6 – Exhibits 35

Signatures

Signatures 36 2 PART 1 – FINANCIAL INFORMATION Item 1 – Financial Statements CVD EQUIPMENT CORPORATION AND SUBSIDIARIES Condensed Consolidated Balance Sheets (in thousands, except share amounts) (Unaudited) September 30, 2024 December 31, 2023 ASSETS Current assets Cash and cash equivalents $ 10,005 $ 14,025 Accounts receivable, net of allowance for credit losses 5,124 1,906 Contract assets 1,348 1,604 Inventories 2,558 4,454 Other current assets 892 852 Total current assets 19,927 22,841 Property, plant and equipment, net 11,909 12,166 Other assets 10 18 Total assets $ 31,846 $ 35,025 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 1,393 $ 1,203 Accrued expenses 1,903 1,765 Current maturities of long-term debt 85 81 Contract liabilities 3,288 4,908 Deposit from purchaser of MesoScribe assets-Note 11 - 597 Total current liabilities 6,669 8,554 Long-term debt, net of current portion 203 268 Total liabilities 6,872 8,822 Stockholders' equity: Common stock - $ 0.01 par value – 20,000,000 shares authorized; issued and outstanding 6,881,838 at September 30, 2024 and 6,824,511 at December 31, 2023 69 68 Additional paid-in capital 29,495 28,695 Accumulated deficit ( 4,590 ) ( 2,560 ) Total stockholders' equity 24,974 26,203 Total liabilities and stockholders' equity $ 31,846 $ 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 2024 2023 Three months ended Nine months ended September 30, September 30, 2024 2023 2024 2023 Revenue $ 8,194 $ 6,234 $ 19,462 $ 19,998 Cost of revenue 6,359 4,636 15,158 14,579 Gross profit 1,835 1,598 4,304 5,419 Operating expenses Research

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 September 30, 2024, the Company had $ 10.0 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 CVD EQUIPMENT CORPORATION AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (Unaudited) NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition In accordance with FASB 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 equipment through contractual agreements. These system sales require the

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