WAVEDANCER, INC. Files 2023 10-K Report
Ticker: AIFF · Form: 10-K · Filed: Mar 20, 2024 · CIK: 803578
Sentiment: neutral
Topics: 10-K, Financials, Revenue, Net Income, Assets
TL;DR
<b>Wavedancer, Inc. reported a net income of $432,620 on revenue of $484,461 for FY2023.</b>
AI Summary
WAVEDANCER, INC. (AIFF) filed a Annual Report (10-K) with the SEC on March 20, 2024. Wavedancer, Inc. reported total revenue of $484,461 for the fiscal year ended December 31, 2023. The company's net income for the fiscal year 2023 was $432,620. Earnings per share (EPS) for fiscal year 2023 stood at $0.001. Total assets for Wavedancer, Inc. amounted to $2,180,485 as of December 31, 2023. Total debt for the company was $167,305 as of December 31, 2023.
Why It Matters
For investors and stakeholders tracking WAVEDANCER, INC., this filing contains several important signals. The filing details the company's financial performance and position as of year-end 2023, providing investors with key metrics. This 10-K report outlines Wavedancer's business operations, risk factors, and management's discussion, crucial for understanding its future prospects.
Risk Assessment
Risk Level: medium — WAVEDANCER, INC. shows moderate risk based on this filing. The company's financial performance shows a significant increase in net income but a modest increase in revenue, indicating potential challenges in revenue growth or cost management.
Analyst Insight
Investors should closely examine the revenue growth drivers and cost structure detailed in the 10-K to assess the sustainability of the reported net income.
Revenue Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| SoftwareSalesMember | 484,461 |
Key Numbers
- 484,461 — Total Revenue (Fiscal year ended December 31, 2023)
- 432,620 — Net Income (Fiscal year ended December 31, 2023)
- 0.001 — EPS (Fiscal year ended December 31, 2023)
- 2,180,485 — Total Assets (As of December 31, 2023)
- 167,305 — Total Debt (As of December 31, 2023)
- 3,000,000 — Authorized Shares (As of December 31, 2023)
- 40.8 — Percentage of Authorized Shares Outstanding (As of December 31, 2023)
Key Players & Entities
- WAVEDANCER, INC. (company) — Filer name
- 20231231 (date) — Conformed period of report
- 20240320 (date) — Filed as of date
- 7372 (industry_code) — Standard Industrial Classification
- DE (state) — State of incorporation
- VA (state) — Business address state
- 7033833000 (phone) — Business phone
- INFORMATION ANALYSIS INC (company) — Former company name
FAQ
When did WAVEDANCER, INC. file this 10-K?
WAVEDANCER, INC. filed this Annual Report (10-K) with the SEC on March 20, 2024.
What is a 10-K filing?
A 10-K is a comprehensive annual financial report required by the SEC, covering audited financials, business operations, risk factors, and management discussion. This particular 10-K was filed by WAVEDANCER, INC. (AIFF).
Where can I read the original 10-K filing from WAVEDANCER, INC.?
You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by WAVEDANCER, INC..
What are the key takeaways from WAVEDANCER, INC.'s 10-K?
WAVEDANCER, INC. filed this 10-K on March 20, 2024. Key takeaways: Wavedancer, Inc. reported total revenue of $484,461 for the fiscal year ended December 31, 2023.. The company's net income for the fiscal year 2023 was $432,620.. Earnings per share (EPS) for fiscal year 2023 stood at $0.001..
Is WAVEDANCER, INC. a risky investment based on this filing?
Based on this 10-K, WAVEDANCER, INC. presents a moderate-risk profile. The company's financial performance shows a significant increase in net income but a modest increase in revenue, indicating potential challenges in revenue growth or cost management.
What should investors do after reading WAVEDANCER, INC.'s 10-K?
Investors should closely examine the revenue growth drivers and cost structure detailed in the 10-K to assess the sustainability of the reported net income. The overall sentiment from this filing is neutral.
Risk Factors
- Going Concern [high — financial]: The company's ability to continue as a going concern is dependent on its ability to generate sufficient cash flows from operations and potentially secure additional financing.
- Competition [medium — market]: The market for the company's products and services is highly competitive, and failure to compete effectively could adversely affect its business.
- Dependence on Key Personnel [medium — operational]: The company's success may depend on the continued service of its key management and technical personnel.
Filing Stats: 4,391 words · 18 min read · ~15 pages · Grade level 14.3 · Accepted 2024-03-20 13:20:03
Key Financial Figures
- $0.001 — ich registered Common Stock, par value $0.001 per share WAVD The Nasdaq Stock Mar
- $400,000 — equity interest in GMDC in exchange for $400,000 in cash, and recognized a gain on sale
- $64,525 — cash, and recognized a gain on sale of $64,525. As of December 31, 2023 the Company ha
- $0.8 million — ill require the Company raising between $0.8 million and $1.1 million of additional capital,
- $1.1 million — ompany raising between $0.8 million and $1.1 million of additional capital, as discussed mor
Filing Documents
- wavd20231231_10k.htm (10-K) — 1476KB
- ex_614456.htm (EX-21.1) — 2KB
- ex_614457.htm (EX-23.1) — 5KB
- ex_614458.htm (EX-31.1) — 12KB
- ex_614459.htm (EX-31.2) — 12KB
- ex_614460.htm (EX-32.1) — 5KB
- wavd20231231_10kimg001.jpg (GRAPHIC) — 3KB
- 0001437749-24-008626.txt ( ) — 8073KB
- wavd-20231231.xsd (EX-101.SCH) — 83KB
- wavd-20231231_cal.xml (EX-101.CAL) — 72KB
- wavd-20231231_def.xml (EX-101.DEF) — 538KB
- wavd-20231231_lab.xml (EX-101.LAB) — 479KB
- wavd-20231231_pre.xml (EX-101.PRE) — 584KB
- wavd20231231_10k_htm.xml (XML) — 1223KB
Business
Business 6 Item 1A.
Risk Factors
Risk Factors 9 Item 1B. Unresolved Staff Comments 20 Item 1C. Cybersecurity 20 Item 2.
Properties
Properties 20 Item 3.
Legal Proceedings
Legal Proceedings 20 Item 4. Mine Safety Disclosures 20 PART II 21 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 21 Item 6. [Reserved] 21 Item 7.
Management's Discussion and Analysis of Financial Condition and Results of Operations
Management's Discussion and Analysis of Financial Condition and Results of Operations 22 Item 7A.
Quantitative and Qualitative Disclosures About Market Risk
Quantitative and Qualitative Disclosures About Market Risk 26 Item 8.
Financial Statements and Supplementary Data
Financial Statements and Supplementary Data 26 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 26 Item 9A.
Controls and Procedures
Controls and Procedures 26 Item 9B. Other Information 27 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 27 PART III 28 Item 10. Directors, Executive Officers and Corporate Governance 28 Item 11.
Executive Compensation
Executive Compensation 33 Item 12.
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 36 Item 13. Certain Relationships and Related Transactions, and Director Independence 37 Item 14. Principal Accounting Fees and Services 37 PART IV 38 Item 15. Exhibits, Financial Statement Schedules 38 Item 16. Form 10-K Summary 38 INDEX TO CONSOLIDATED FINANCIAL STATEMENTS F-1
SIGNATURES
SIGNATURES 50 3 Table of Contents Cautionary Statement Regarding Forward-Looking Statement This Form 10-K contains forward-looking statements regarding our business, customer prospects, or other factors that may affect future earnings or financial results that are subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "could," "would," "expect," "plans," "anticipates," "believes," "estimates," "projects," "predicts," "intends," "potential" and similar expressions intended to identify forward-looking statements. These statements reflect our current views with respect to future events and represent our estimates and assumptions only as of the date of this report. Except as required by law, we assume no obligation to update any forward-looking statements after the date of this report. Additionally, these forward-looking statements are based on assumptions and are subject to risks and uncertainties which could cause actual results to vary materially from those expressed in the forward-looking statements. These risks include, among others, those detailed under the heading "Risk Factors Summary" and under the heading "Risk Factors" in Item 1A of this report. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Investors should read and understand the risk factors detailed in this report and in other filings with the Securities and Exchange Commission ("SEC"). 4 Table of Contents RISK FACTORS SUMMARY On November 15, 2023, we executed an Agreement and Plan of Merger with Firefly Neuroscience, Inc. ("Firefly"). Pursuant to this agreement, Firefly will merge with a subsidiary we have organized, and we will be selling our entire business which is conducted through our Tellenger subsidiary. The following Risk Factors only will be relevant to our business if the merger with Firefly
Business
Item 1. Business WaveDancer, Inc. ("WaveDancer" or the "Company") was originally founded as Information Analysis Incorporated in 1979 as a pioneering information technology consulting and systems engineering company, focused on helping government and commercial organizations move into the information age. In the early 2000s, the Company began specializing in modernization and business transformation to help organizations increase productivity, gain efficiencies, and improve their results through technological transformations. With our acquisition in 2021 of Tellenger, Inc. ("Tellenger"), an IT consulting and software development firm, we acquired competencies in web-based solutions, software development, and data analytics. In December 2021, we reorganized our professional services practice into Tellenger, and as a result, our professional services capabilities were consolidated under a single entity. Soon after the Company also converted from a Virginia corporation to a Delaware corporation. On March 17, 2023, the Company sold effectively 75.1% of the equity of its Gray Matters, Inc. subsidiary ("GMI" or "Gray Matters") to Gray Matters Data Corporation ("GMDC"). The Company's retained interest in GMI of 24.9% was initially accounted for as an equity method investment. Subsequent to the sale the Company discontinued consolidating GMI and the Company has reflected GMI as a discontinued operation in its consolidated statements of operations for all periods presented. Unless otherwise noted, all amounts and disclosures throughout this Item 1 relate to the Company's continuing operations. See Note 2 to the consolidated financial statements for further information about the sale transaction, the deconsolidation of GMI, and treatment of GMI as a discontinued operation. On August 9, 2023, the Company sold its remaining 24.9% interest in GMI to GMDC. On August 9, 2023, the Company sold its remaining equity interest in GMDC in exchange for $400,000 in cash, and recognized