Stabilis Solutions, Inc. Files 10-Q for Q1 2024

TL;DR

<b>Stabilis Solutions filed its Q1 2024 10-Q, detailing equity investments and dilutive securities.</b>

AI Summary

Stabilis Solutions, Inc. (SLNG) filed a Quarterly Report (10-Q) with the SEC on May 7, 2024. Stabilis Solutions, Inc. reported its Q1 2024 results on May 7, 2024. The company's initial investment in BOMAY differed from its 40% equity share due to ASC 805 fair value accounting. A basis difference related to BOMAY is being accreted over nine years, with $97 thousand accreted in Q1 2024 and Q1 2023. Accumulated statutory reserves in equity method investments, specifically in BOMAY, totaled $2.7 million at March 31, 2024. Dilutive securities, including unvested RSUs and unexercised stock options, are calculated under the treasury stock method.

Why It Matters

For investors and stakeholders tracking Stabilis Solutions, Inc., this filing contains several important signals. The filing provides specific details on the accounting treatment of the company's investment in BOMAY, including accretion of basis differences. It clarifies the calculation of dilutive securities, which is important for understanding potential future share dilution and EPS.

Risk Assessment

Risk Level: low — Stabilis Solutions, Inc. shows low risk based on this filing. The filing is a standard 10-Q with no immediate red flags, indicating a low level of risk from this specific report.

Analyst Insight

Review the accretion schedule for the BOMAY investment and the treasury stock method calculations for dilutive securities to assess potential future impacts on earnings per share.

Key Numbers

• 97,000 — Accretion for BOMAY investment (Three months ended March 31, 2024 and 2023)
• 2,700,000 — Accumulated statutory reserves in BOMAY (As of March 31, 2024)
• 40 — Equity share in BOMAY (Company's ownership percentage)

Key Players & Entities

• Stabilis Solutions, Inc. (company) — Filer name
• BOMAY (company) — Equity investment
• ASC 805 (regulator) — Accounting standard applied to BOMAY investment
• PRC (company) — Regulations on foreign ownership enterprises
• 2024-03-31 (date) — Reporting period end date
• 2024-05-07 (date) — Filing date

FAQ

Risk Factors

• Basis Difference Accretion [medium — financial]: The company's investment in BOMAY involves a basis difference due to fair value accounting, which is being accreted over nine years.
• Statutory Reserves in Equity Investments [low — financial]: Accumulated statutory reserves in the BOMAY investment are restricted and not distributable as cash dividends.
• Dilutive Securities Calculation [low — financial]: Dilutive securities, including RSUs and stock options, are calculated using the treasury stock method, which can impact EPS.

Key Dates

• 2024-03-31: End of Fiscal Quarter — Reporting period for the 10-Q
• 2024-05-07: Filing Date — Date the 10-Q was submitted to the SEC

Glossary

ASC 805

Accounting Standards Codification Topic 805, Business Combinations (Relevant for understanding the fair value accounting applied to the BOMAY investment.)

Treasury Stock Method

A method used to calculate the dilutive effect of outstanding stock options and warrants on earnings per share. (Key to understanding how dilutive securities are accounted for and their potential impact on EPS.)

Filing Documents

• slng20240331_10q.htm (10-Q) — 732KB
• ex_642192.htm (EX-31.1) — 14KB
• ex_642193.htm (EX-31.2) — 14KB
• ex_642194.htm (EX-32.1) — 11KB
• logo01.jpg (GRAPHIC) — 3KB
• 0001437749-24-015119.txt (&nbsp;) — 4335KB
• slng-20240331.xsd (EX-101.SCH) — 45KB
• slng-20240331_cal.xml (EX-101.CAL) — 40KB
• slng-20240331_def.xml (EX-101.DEF) — 292KB
• slng-20240331_lab.xml (EX-101.LAB) — 249KB
• slng-20240331_pre.xml (EX-101.PRE) — 322KB
• slng20240331_10q_htm.xml (XML) — 532KB

Financial Information

Part I. Financial Information Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) Condensed Consolidated Balance Sheets 4 Condensed Consolidated Statements of Operations 5 Condensed Consolidated Statements of Comprehensive Income (Loss) 6 Condensed Consolidated Statements of Stockholders' Equity 7 Condensed Consolidated Statements of Cash Flows 8 Notes to Condensed Consolidated Financial Statements 9 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 16 Item 4.

Controls and Procedures

Controls and Procedures 20

Other Information

Part II. Other Information Item 1.

Legal Proceedings

Legal Proceedings 20 Item 1A.

Risk Factors

Risk Factors 20 Item 5. Other Information 20 Item 6. Exhibits 21

Signatures

Signatures 22 2 Table of Contents CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q ("this Report") includes statements that constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements represent intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks and uncertainties and other factors. These statements may relate to, but are not limited to, information or assumptions about us, our capital and other expenditures, dividends, financing plans, capital structure, cash flow, pending legal and regulatory proceedings and claims, including environmental matters, future economic performance, operating income, cost savings, and management's plans, strategies, goals and objectives for future operations and growth. These forward-looking statements generally are accompanied by words such as "intend," "anticipate," "believe," "estimate," "expect," "should," "seek," "project," "plan" or similar expressions. Any statement that is not a historical fact is a forward-looking statement. It should be understood that these forward-looking statements are necessary estimates reflecting the best judgment of senior management, not guarantees of future performance. Many of the factors that impact forward-looking statements are outside of our control and could cause actual results to differ materially from the results expressed or implied by those forward-looking statements. When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements as described in Part I. "Item 1A. Risk Factors" of the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission ("the SEC") on March 7, 2024, as well as the additional risk factors identified and described in Part II. "Item 1A. Risk Factors" of this Report. We undertake no obligation to update or revise any forward-looking st

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS. Stabilis Solutions, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited, in thousands, except share and per share data) March 31, December 31, 2024 2023 Assets Current assets: Cash and cash equivalents $ 8,286 $ 5,374 Accounts receivable, net 5,620 7,752 Inventories, net 137 169 Prepaid expenses and other current assets 1,442 1,677 Total current assets 15,485 14,972 Property, plant and equipment: Cost 111,435 110,646 Less accumulated depreciation ( 62,819 ) ( 61,167 ) Property, plant and equipment, net 48,616 49,479 Goodwill 4,314 4,314 Investments in foreign joint ventures 11,780 12,009 Right-of-use assets and other noncurrent assets 452 525 Total assets $ 80,647 $ 81,299 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 5,811 $ 5,707 Accrued liabilities 2,432 4,166 Current portion of long-term notes payable 1,657 1,682 Current portion of finance and operating lease obligations 112 164 Total current liabilities 10,012 11,719 Long-term notes payable, net of current portion and debt issuance costs 7,446 7,747 Long-term portion of finance and operating lease obligations — 21 Total liabilities 17,458 19,487 Commitments and contingencies (Note 9) Stockholders' Equity: Preferred stock; $ 0.001 par value, 1,000,000 shares authorized, no shares issued and outstanding at March 31, 2024 and December 31, 2023 — — Common stock; $ 0.001 par value, 37,500,000 shares authorized, 18,585,014 and 18,573,391 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively 19 19 Additional paid-in capital 102,431 102,057 Accumulated other comprehensive loss ( 484 ) ( 18 ) Accumulated deficit ( 38,777 ) ( 40,246 ) Total stockholders' equity 63,189 61,812 Total liabilities and stockholders' equity $ 80,647 $ 81,299 The accompanying notes are an integral part of the Condensed Consolidat

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View this 10-Q filing on SEC EDGAR