R F Industries Ltd. Files 10-Q for Period Ending January 31, 2024

TL;DR

<b>R F Industries Ltd. filed its 10-Q for Q1 2024, detailing financial data and business operations.</b>

AI Summary

R F INDUSTRIES LTD (RFIL) filed a Quarterly Report (10-Q) with the SEC on March 18, 2024. The filing covers the quarterly period from November 1, 2023, to January 31, 2024. R F Industries Ltd. is incorporated in Nevada and operates in the Electronic Connectors industry. The company's principal business address is in San Diego, California. The filing includes data related to various financial instruments and intangible assets. Previous company name was Celltronics Inc., with a name change in 1991.

Why It Matters

For investors and stakeholders tracking R F INDUSTRIES LTD, this filing contains several important signals. This 10-Q provides investors with an update on the company's financial health and operational status for the most recent quarter. Understanding the details within this filing is crucial for assessing the company's performance and future prospects in the electronic connectors market.

Risk Assessment

Risk Level: low — R F INDUSTRIES LTD shows low risk based on this filing. The filing is a standard 10-Q, providing routine financial disclosures without immediate red flags.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-Q to understand R F Industries Ltd.'s current financial position and operational landscape.

Key Numbers

• 2024-01-31 — Report Period End Date (Conformed Period of Report)
• 2024-03-18 — Filing Date (Filed as of Date)
• 19910204 — Date of Name Change (Former Company Name Change)
• 3678 — SIC Code (Standard Industrial Classification)

Key Players & Entities

• R F INDUSTRIES LTD (company) — Filer name
• 0000740664 (company) — Central Index Key
• NV (company) — State of Incorporation
• ELECTRONIC CONNECTORS (company) — Standard Industrial Classification
• 16868 VIA DEL CAMPO COURT, SUITE 200 (company) — Business Address Street 1
• SAN DIEGO (company) — Business Address City
• CA (company) — Business Address State
• 92127 (company) — Business Address Zip

FAQ

Industry Context

R F Industries Ltd. operates within the Electronic Connectors industry, a sector focused on manufacturing components used in electronic devices.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to submit regular financial disclosures.

What Investors Should Do

1. Analyze the company's balance sheet and income statement for the period ending January 31, 2024.
2. Examine any disclosed debt facilities or credit arrangements.
3. Review the intangible assets section for details on patents, trademarks, and customer relationships.

Year-Over-Year Comparison

This is the initial 10-Q filing for the period ending January 31, 2024, and no prior period comparison data is available within this specific document excerpt.

Key Financial Figures

• $0.01 — nge on which registered Common Stock, $0.01 par value per share RFIL NASDAQ Glo

Filing Documents

• rfil20240131_10q.htm (10-Q) — 759KB
• ex_640347.htm (EX-10.3) — 944KB
• ex_637037.htm (EX-31.1) — 8KB
• ex_637036.htm (EX-31.2) — 8KB
• ex_637035.htm (EX-32.1) — 5KB
• ex_637034.htm (EX-32.2) — 5KB
• 0001437749-24-008290.txt (&nbsp;) — 6052KB
• rfil-20240131.xsd (EX-101.SCH) — 52KB
• rfil-20240131_def.xml (EX-101.DEF) — 365KB
• rfil-20240131_lab.xml (EX-101.LAB) — 300KB
• rfil-20240131_pre.xml (EX-101.PRE) — 393KB
• rfil-20240131_cal.xml (EX-101.CAL) — 39KB
• rfil20240131_10q_htm.xml (XML) — 698KB

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION

: Financial Statements

Item 1: Financial Statements RF INDUSTRIES, LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) January 31, October 31, 2024 2023 (Unaudited) (Note 1) ASSETS CURRENT ASSETS Cash and cash equivalents $ 4,488 $ 4,897 Trade accounts receivable, net of allowance for credit losses of $ 265 and $ 244 , respectively 8,307 10,277 Inventories 17,971 18,730 Other current assets 2,139 2,136 TOTAL CURRENT ASSETS 32,905 36,040 Property and equipment: Equipment and tooling 4,811 4,796 Furniture and office equipment 5,759 5,631 10,570 10,427 Less accumulated depreciation 5,714 5,503 Total property and equipment, net 4,856 4,924 Operating lease right-of-use assets, net 15,315 15,689 Goodwill 8,085 8,085 Amortizable intangible assets, net 13,173 13,595 Non-amortizable intangible assets 1,174 1,174 Deferred tax assets 3,344 2,494 Other assets 277 277 TOTAL ASSETS $ 79,129 $ 82,278 2

: Financial Statements (continued)

Item 1: Financial Statements (continued) RF INDUSTRIES, LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share and per share amounts) January 31, October 31, 2024 2023 (Unaudited) (Note 1) LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 2,466 $ 3,201 Accrued expenses 4,595 4,572 Line of credit 500 1,000 Current portion of Term Loan 2,424 2,424 Current portion of operating lease liabilities 1,338 1,314 TOTAL CURRENT LIABILITIES 11,323 12,511 Operating lease liabilities 19,034 19,284 Term Loan, net of debt issuance cost 10,117 10,721 TOTAL LIABILITIES 40,474 42,516 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS ' EQUITY Common stock - authorized 20,000,000 shares of $ 0.01 par value; 10,495,548 and 10,343,223 shares issued and outstanding at January 31, 2024 and October 31, 2023, respectively 105 104 Additional paid-in capital 26,341 26,087 Retained earnings 12,209 13,571 TOTAL STOCKHOLDERS' EQUITY 38,655 39,762 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 79,129 $ 82,278 See Notes to Unaudited Condensed Consolidated Financial Statements. 3

: Financial Statements (continued)

Item 1: Financial Statements (continued) RF INDUSTRIES, LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (In thousands, except share and per share amounts) Three Months Ended January 31, 2024 2023 Net sales $ 13,458 $ 18,343 Cost of sales 10,155 13,257 Gross profit 3,303 5,086 Operating expenses: Engineering 769 961 Selling and general 4,619 5,294 Total operating expenses 5,388 6,255 Operating loss ( 2,085 ) ( 1,169 ) Other expense ( 108 ) ( 153 ) Loss before benefit for income taxes ( 2,193 ) ( 1,322 ) Benefit from income taxes ( 831 ) ( 160 ) Consolidated net loss $ ( 1,362 ) $ ( 1,162 ) Loss earnings per share: Basic $ ( 0.13 ) $ ( 0.11 ) Diluted $ ( 0.13 ) $ ( 0.11 ) Weighted average shares outstanding: Basic 10,410,580 10,222,540 Diluted 10,410,580 10,222,540 See Notes to Unaudited Condensed Consolidated Financial Statements. 4

: Financial Statements (continued)

Item 1: Financial Statements (continued) RF INDUSTRIES, LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS ' EQUITY (UNAUDITED) (In thousands, except share amounts) For the Three Months Ended January 31, 2024 Additional Common Stock Paid-in Retained Shares Amount Capital Earnings Total Balance, November 1, 2023 10,343,223 $ 104 $ 26,087 $ 13,571 $ 39,762 Stock-based compensation expense - - 255 - 255 Issuance of restricted stock 152,325 1 ( 1 ) - - Consolidated net loss - - - (1,362 ) ( 1,362 ) Balance, January 31, 2024 10,495,548 $ 105 $ 26,341 $ 12,209 $ 38,655 For the Three Months Ended January 31, 2023 Additional Common Stock Paid-in Retained Shares Amount Capital Earnings Total Balance, November 1, 2022 10,193,287 $ 102 $ 25,118 $ 16,649 $ 41,869 Exercise of stock options 45,000 - 85 - 85 Stock-based compensation expense - - 212 - 212 Issuance of restricted stock 54,092 1 - - 1 Tax withholding related to vesting of restricted stock ( 1,312 ) - ( 7 ) - ( 7 ) Consolidated net loss - - - ( 1,162 ) ( 1,162 ) Balance, January 31, 2023 10,291,067 $ 103 $ 25,408 $ 15,487 $ 40,998 See Notes to Unaudited Condensed Consolidated Financial Statements. 5

: Financial Statements (continued)

Item 1: Financial Statements (continued) RF INDUSTRIES, LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (In thousands) Three Months Ended January 31, 2024 2023 OPERATING ACTIVITIES: Consolidated net loss $ ( 1,362 ) $ ( 1,162 ) Adjustments to reconcile consolidated net loss to net cash provided by operating activities: Bad debt expense 4 64 Depreciation and amortization 633 541 Stock-based compensation expense 255 212 Amortization of debt issuance cost 2 2 Tax payments related to shares cancelled for vested restricted stock awards - ( 7 ) Deferred income taxes ( 851 ) ( 136 ) Changes in operating assets and liabilities: Trade accounts receivable 1,967 843 Inventories 759 117 Other current assets ( 3 ) 2,665 Right-of-use assets 148 383 Accounts payable ( 734 ) ( 803 ) Accrued expenses 22 ( 3,246 ) Income taxes payable - 1,133 Other current liabilities - 283 Net cash provided by operating activities 840 889 INVESTING ACTIVITIES: Capital expenditures ( 143 ) ( 1,130 ) Net cash used in investing activities ( 143 ) ( 1,130 ) FINANCING ACTIVITIES: Proceeds from exercise of stock options - 85 Line of credit payments ( 500 ) - Term Loan payments ( 606 ) ( 606 ) Net cash used in financing activities ( 1,106 ) ( 521 ) Net decrease in cash and cash equivalents ( 409 ) ( 762 ) Cash and cash equivalents, beginning of period 4,897 4,532 Cash and cash equivalents, end of period $ 4,488 $ 3,770 Supplemental cash flow information – income taxes paid $ ( 12 ) $ - See Notes to Unaudited Condensed Consolidated Financial Statements. 6 RF INDUSTRIES, LTD. AND SUBSIDIARIES NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Note 1 – Unaudited interim condensed consolidated financial statements Our accompanying unaudited condensed consolidated financial statements

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