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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Arotech Corporation | NASDAQ:ARTX | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 2.995 | 2.99 | 3.00 | 0 | 01:00:00 |
OMB APPROVAL
|
OMB Number: 3235-0070
Expires: October 31, 2021
Estimated average burden
hours per response 190.42
|
FORM 10-Q
|
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED
March 31, 2019
.
|
Delaware
|
|
95-4302784
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
1229 Oak Valley Drive, Ann Arbor, Michigan
|
|
48108
|
(Address of principal executive offices)
|
|
(Zip Code)
|
800 281-0356
|
(Registrant’s telephone number, including area code)
|
______________________________________________________________________________________
|
(Former name, former address and former fiscal year, if changed since last report)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, $0.01 par value
|
ARTX
|
The Nasdaq Stock Market LLC
|
Large accelerated filer:
¨
|
Accelerated filer:
x
|
Non-accelerated filer:
¨
(Do not check if a smaller reporting company)
|
Smaller reporting company:
x
|
Emerging growth company:
¨
|
|
Potential persons who are to respond to the collection of information contained in this form are not
required to respond unless the form displays a currently valid OMB control number.
|
Item
|
|
Page
|
PART I - FINANCIAL INFORMATION
|
|
|
|
||
|
||
|
||
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||
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||
|
||
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||
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||
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PART II - OTHER INFORMATION
|
|
|
|
||
|
|
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
|
(Unaudited)
|
|
|
||||
ASSETS
|
|
|
|
||||
CURRENT ASSETS:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
4,523,949
|
|
|
$
|
4,222,246
|
|
Restricted collateral deposits
|
229,830
|
|
|
222,712
|
|
||
Trade receivables, net
|
11,801,182
|
|
|
16,259,809
|
|
||
Contract assets
|
22,319,968
|
|
|
17,867,896
|
|
||
Other accounts receivable and prepaid expenses
|
6,548,213
|
|
|
5,989,263
|
|
||
Inventories, net
|
9,452,464
|
|
|
9,912,748
|
|
||
Total current assets
|
54,875,606
|
|
|
54,474,674
|
|
||
LONG TERM ASSETS:
|
|
|
|
||||
Contractual and Israeli statutory severance pay fund
|
3,637,590
|
|
|
3,427,705
|
|
||
Other long term receivables
|
541,139
|
|
|
543,205
|
|
||
Property and equipment, net
|
8,931,136
|
|
|
8,914,247
|
|
||
Right of use asset
|
6,035,660
|
|
|
—
|
|
||
Other intangible assets, net
|
4,841,152
|
|
|
4,465,778
|
|
||
Goodwill
|
46,138,036
|
|
|
46,138,036
|
|
||
Total long term assets
|
70,124,713
|
|
|
63,488,971
|
|
||
Total assets
|
$
|
125,000,319
|
|
|
$
|
117,963,645
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
CURRENT LIABILITIES:
|
|
|
|
||||
Trade payables
|
$
|
6,360,287
|
|
|
$
|
6,442,919
|
|
Other accounts payable and accrued expenses
|
4,689,993
|
|
|
6,498,045
|
|
||
Current portion of lease obligations
|
622,065
|
|
|
—
|
|
||
Current portion of long term debt
|
2,235,089
|
|
|
2,204,653
|
|
||
Short term bank credit
|
9,703,764
|
|
|
5,500,416
|
|
||
Contract liabilities
|
6,750,785
|
|
|
7,054,779
|
|
||
Total current liabilities
|
30,361,983
|
|
|
27,700,812
|
|
||
LONG TERM LIABILITIES:
|
|
|
|
||||
Contractual and accrued Israeli statutory severance pay
|
4,465,209
|
|
|
4,125,675
|
|
||
Long term portion of lease obligations
|
5,714,132
|
|
|
—
|
|
||
Long term portion of debt
|
6,006,573
|
|
|
6,360,569
|
|
||
Deferred income tax liability
|
2,970,978
|
|
|
2,863,098
|
|
||
Other long term liabilities
|
46,800
|
|
|
137,774
|
|
||
Total long-term liabilities
|
19,203,692
|
|
|
13,487,116
|
|
||
Total liabilities
|
49,565,675
|
|
|
41,187,928
|
|
||
STOCKHOLDERS’ EQUITY:
|
|
|
|
||||
Share capital –
|
|
|
|
||||
Common stock – $0.01 par value each;
Authorized: 50,000,000 shares as of March 31, 2019 and December 31, 2018; Issued and outstanding: 26,617,460 shares and 26,486,152 shares as of March 31, 2019 and December 31, 2018, respectively |
266,175
|
|
|
264,862
|
|
||
Preferred shares – $0.01 par value each;
Authorized: 1,000,000 shares as of March 31, 2019 and December 31, 2018; No shares issued or outstanding as of March 31, 2019 and December 31, 2018 |
—
|
|
|
—
|
|
||
Additional paid-in capital
|
251,572,736
|
|
|
251,551,001
|
|
||
Accumulated deficit
|
(177,905,070
|
)
|
|
(176,498,057
|
)
|
||
Notes receivable from stockholders
|
(908,054
|
)
|
|
(908,054
|
)
|
||
Accumulated other comprehensive income
|
2,408,857
|
|
|
2,365,965
|
|
||
Total stockholders’ equity
|
75,434,644
|
|
|
76,775,717
|
|
||
Total liabilities and stockholders’ equity
|
$
|
125,000,319
|
|
|
$
|
117,963,645
|
|
|
Three months ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
Revenues
|
$
|
20,778,639
|
|
|
$
|
27,248,509
|
|
|
|
|
|
||||
Cost of revenues
|
14,959,111
|
|
|
19,537,081
|
|
||
Research and development expenses
|
1,074,064
|
|
|
1,036,702
|
|
||
Selling and marketing expenses
|
2,152,557
|
|
|
1,878,073
|
|
||
General and administrative expenses
|
3,170,391
|
|
|
3,225,934
|
|
||
Amortization of intangible assets
|
370,203
|
|
|
514,911
|
|
||
Total operating costs and expenses
|
21,726,326
|
|
|
26,192,701
|
|
||
|
|
|
|
||||
Operating income (loss)
|
(947,687
|
)
|
|
1,055,808
|
|
||
|
|
|
|
||||
Other income (expense), net
|
(14
|
)
|
|
3
|
|
||
Financial expense, net
|
(298,431
|
)
|
|
(213,108
|
)
|
||
Total other expense
|
(298,445
|
)
|
|
(213,105
|
)
|
||
Income (loss) before income tax expense
|
(1,246,132
|
)
|
|
842,703
|
|
||
|
|
|
|
||||
Income tax expense
|
160,881
|
|
|
247,114
|
|
||
Net income (loss)
|
(1,407,013
|
)
|
|
595,589
|
|
||
|
|
|
|
||||
Other comprehensive income (loss), net of income tax:
|
|
|
|
||||
Foreign currency translation adjustment
|
42,892
|
|
|
(24,260
|
)
|
||
Comprehensive income (loss)
|
$
|
(1,364,121
|
)
|
|
$
|
571,329
|
|
|
|
|
|
||||
Income (loss) per share of common stock:
|
|
|
|
||||
Basic net income (loss) per share
|
$
|
(0.05
|
)
|
|
$
|
0.02
|
|
Diluted net income (loss) per share
|
$
|
(0.05
|
)
|
|
$
|
0.02
|
|
Weighted average number of shares used in computing basic net income (loss) per share
|
26,387,285
|
|
|
26,447,090
|
|
||
Weighted average number of shares used in computing diluted net income (loss) per share
|
26,387,285
|
|
|
26,447,090
|
|
|
Three months ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
||||
Net income (loss)
|
$
|
(1,407,013
|
)
|
|
$
|
595,589
|
|
Adjustments required to reconcile net income (loss) to net cash (used in) provided by operating activities:
|
|
|
|
||||
Depreciation
|
493,117
|
|
|
481,491
|
|
||
Amortization of intangible assets
|
370,203
|
|
|
514,911
|
|
||
Stock based compensation
|
135,969
|
|
|
108,495
|
|
||
Deferred tax provision
|
107,880
|
|
|
227,313
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Trade receivables
|
4,458,627
|
|
|
4,907,024
|
|
||
Contract assets
|
(4,452,072
|
)
|
|
(2,513,952
|
)
|
||
Other accounts receivable and prepaid expenses
|
(256,347
|
)
|
|
546,999
|
|
||
Inventories
|
460,927
|
|
|
(324,646
|
)
|
||
Severance pay, net
|
145,123
|
|
|
32,042
|
|
||
Trade payables
|
(82,634
|
)
|
|
(292,733
|
)
|
||
Other accounts payable and accrued expenses
|
(1,896,369
|
)
|
|
(1,489,424
|
)
|
||
Contract liabilities
|
(303,994
|
)
|
|
(278,267
|
)
|
||
Net cash (used in) provided by operating activities
|
$
|
(2,226,583
|
)
|
|
$
|
2,514,842
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
||||
Purchases of property and equipment
|
$
|
(510,006
|
)
|
|
$
|
(330,820
|
)
|
Additions to capitalized software
|
(745,577
|
)
|
|
—
|
|
||
Net cash used in investing activities
|
$
|
(1,255,583
|
)
|
|
$
|
(330,820
|
)
|
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
||||
Proceeds from long term debt
|
220,264
|
|
|
—
|
|
||
Repayment of long term debt
|
(543,824
|
)
|
|
(563,591
|
)
|
||
Other financing activities
|
(112,921
|
)
|
|
(54,155
|
)
|
||
Change in short term bank credit
|
4,203,348
|
|
|
1,131,418
|
|
||
Net cash provided by financing activities
|
$
|
3,766,867
|
|
|
$
|
513,672
|
|
INCREASE IN CASH, RESTRICTED CASH, AND CASH EQUIVALENTS
|
$
|
284,701
|
|
|
$
|
2,697,694
|
|
CASH DIFFERENCES DUE TO EXCHANGE RATE DIFFERENCES
|
$
|
24,120
|
|
|
$
|
33,831
|
|
CASH, RESTRICTED CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD
|
$
|
4,444,958
|
|
|
$
|
5,488,754
|
|
CASH, RESTRICTED CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
|
$
|
4,753,779
|
|
|
$
|
8,220,279
|
|
SUPPLEMENTARY CASH FLOW INFORMATION:
|
|
|
|
||||
Interest paid during the period
|
$
|
201,078
|
|
|
$
|
220,607
|
|
Taxes paid on income during the period
|
$
|
2,468
|
|
|
$
|
300
|
|
|
Common stock
|
|
Additional
paid-in capital |
|
Accumulated deficit
|
|
Notes
receivable from stockholders |
|
Accumulated
other comprehensive income |
|
Total
stockholders’ equity |
|||||||||||||||
|
Shares
|
|
Amount
|
|
|
|
|
|
||||||||||||||||||
Balance as of January 1, 2019
|
26,486,152
|
|
|
$
|
264,862
|
|
|
$
|
251,551,001
|
|
|
$
|
(176,498,057
|
)
|
|
$
|
(908,054
|
)
|
|
$
|
2,365,965
|
|
|
$
|
76,775,717
|
|
Stock based compensation
|
—
|
|
|
—
|
|
|
135,969
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
135,969
|
|
||||||
Restricted stock issued
|
24,000
|
|
|
240
|
|
|
(240
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Restricted stock units vested, net of taxes
|
112,775
|
|
|
1,128
|
|
|
(114,049
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(112,921
|
)
|
||||||
Restricted stock forfeitures
|
(5,467
|
)
|
|
(55
|
)
|
|
55
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Foreign currency translation adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42,892
|
|
|
42,892
|
|
||||||
Net Loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,407,013
|
)
|
|
—
|
|
|
—
|
|
|
(1,407,013
|
)
|
||||||
Balance as of March 31, 2019
|
26,617,460
|
|
|
$
|
266,175
|
|
|
$
|
251,572,736
|
|
|
$
|
(177,905,070
|
)
|
|
$
|
(908,054
|
)
|
|
$
|
2,408,857
|
|
|
$
|
75,434,644
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance as of January 1, 2018
|
26,395,048
|
|
|
$
|
263,951
|
|
|
$
|
250,826,873
|
|
|
$
|
(181,568,757
|
)
|
|
$
|
(908,054
|
)
|
|
$
|
2,479,205
|
|
|
$
|
71,093,218
|
|
Stock based compensation
|
—
|
|
|
—
|
|
|
108,495
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
108,495
|
|
||||||
Restricted stock issued
|
41,000
|
|
|
410
|
|
|
(410
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Restricted stock units vested, net of taxes
|
49,747
|
|
|
497
|
|
|
(54,652
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(54,155
|
)
|
||||||
Restricted stock forfeitures
|
(33,333
|
)
|
|
(333
|
)
|
|
333
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Foreign currency translation adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24,260
|
)
|
|
(24,260
|
)
|
||||||
Net Income
|
—
|
|
|
—
|
|
|
—
|
|
|
595,589
|
|
|
—
|
|
|
—
|
|
|
595,589
|
|
||||||
Balance as of March 31, 2018
|
26,452,462
|
|
|
$
|
264,525
|
|
|
$
|
250,880,639
|
|
|
$
|
(180,973,168
|
)
|
|
$
|
(908,054
|
)
|
|
$
|
2,454,945
|
|
|
$
|
71,718,887
|
|
Three months ended March 31,
|
|
2019
|
||
Operating lease cost
|
|
$
|
280,246
|
|
|
|
|
||
Finance lease cost:
|
|
|
||
Amortization of right-of-use assets
|
|
$
|
3,166
|
|
Interest on lease liabilities
|
|
728
|
|
|
Total finance lease costs
|
|
$
|
3,894
|
|
|
|
|
||
Three months ended March 31,
|
|
2019
|
||
Supplemental Cash Flows Information
|
|
|
||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
||
Operating cash flows from operating leases
|
|
$
|
103,004
|
|
Operating cash flows from finance leases
|
|
728
|
|
|
Financing cash flows from finance leases
|
|
2,939
|
|
|
|
|
|
||
Right-of-use assets obtained in exchange for lease obligations:
|
|
|
||
Operating leases
|
|
$
|
2,785,444
|
|
Finance leases
|
|
31,386
|
|
|
|
|
|
||
Weighted Average Remaining Lease Term
|
|
|
||
Operating leases
|
|
11 years
|
|
|
Finance leases
|
|
4 years
|
|
|
|
|
|
||
Weighted Average Discount Rate
|
|
|
||
Operating leases
|
|
7.47
|
%
|
|
Finance leases
|
|
6.86
|
%
|
Year Ending December 31,
|
|
Operating Leases
|
|
Finance Leases
|
||||
2019 (excluding the three months ended March 31, 2019)
|
|
$
|
826,215
|
|
|
$
|
10,998
|
|
2020
|
|
1,106,944
|
|
|
14,664
|
|
||
2021
|
|
891,346
|
|
|
14,664
|
|
||
2022
|
|
805,432
|
|
|
12,276
|
|
||
2023
|
|
697,277
|
|
|
7,500
|
|
||
Thereafter
|
|
5,555,117
|
|
|
—
|
|
||
Total future minimum lease payments
|
|
9,882,331
|
|
|
60,102
|
|
||
Less imputed interest
|
|
(3,546,134
|
)
|
|
(8,128
|
)
|
||
Total:
|
|
$
|
6,336,197
|
|
|
$
|
51,974
|
|
Operating Leases as of March 31,
|
|
2019
|
||
Right of use asset
|
|
$
|
6,035,660
|
|
|
|
|
||
Current portion of lease obligations
|
|
622,065
|
|
|
Long term portion of lease obligations
|
|
5,714,132
|
|
|
Total operating lease obligations
|
|
6,336,197
|
|
|
|
|
|
||
Financing Leases as of March 31,
|
|
2019
|
||
Property and Equipment, at cost
|
|
56,933
|
|
|
Accumulated depreciation
|
|
(5,295
|
)
|
|
Property and Equipment, net
|
|
51,638
|
|
|
|
|
|
||
Other accounts payable and accrued expenses
|
|
11,445
|
|
|
Other long term liabilities
|
|
40,529
|
|
|
Total financing lease liabilities
|
|
$
|
51,974
|
|
•
|
Identification of the contract, or contracts, with a customer
|
•
|
Identification of the performance obligations within the contract
|
•
|
Determination of the transaction price
|
•
|
Allocation of the transaction price to the performance obligations within the contract
|
•
|
Recognition of revenue when, or as the performance obligation has been satisfied
|
|
Three months ended March 31,
|
||||||||||||||
|
2019
|
|
2018
|
||||||||||||
|
Training and Simulation Division
|
|
Power Systems Division
|
|
Training and Simulation Division
|
|
Power Systems Division
|
||||||||
Net income (loss)
|
$
|
146,278
|
|
|
$
|
(30,419
|
)
|
|
$
|
71,440
|
|
|
$
|
(119,778
|
)
|
|
Three months ended March 31,
|
||||||
|
2019
|
|
2018
|
||||
Product Revenue
|
|
|
|
||||
Air Warfare Simulation
|
$
|
3,499,202
|
|
|
$
|
5,032,659
|
|
Vehicle Simulation
|
7,080,941
|
|
|
5,463,998
|
|
||
Use-of-Force
|
2,457,177
|
|
|
3,260,049
|
|
||
Service Revenue
|
|
|
|
||||
Warranty
|
952,295
|
|
|
801,158
|
|
||
Total Training and Simulation Division
|
$
|
13,989,615
|
|
|
$
|
14,557,864
|
|
|
|
|
|
||||
|
|
|
|
||||
Contract Manufacturing
|
$
|
3,217,992
|
|
|
$
|
4,164,324
|
|
Power Distribution and Generation
|
250,700
|
|
|
3,275,380
|
|
||
Batteries
|
2,382,475
|
|
|
4,146,112
|
|
||
Engineering Services and Other
|
937,857
|
|
|
1,104,829
|
|
||
Total Power Division
|
$
|
6,789,024
|
|
|
$
|
12,690,645
|
|
|
Three months ended March 31,
|
||||
Type of Revenue
|
2019
|
|
2018
|
||
Sale of products
|
92.1
|
%
|
|
96.4
|
%
|
Maintenance and support agreements
|
4.6
|
%
|
|
2.9
|
%
|
Long term research and development contracts
|
3.3
|
%
|
|
0.7
|
%
|
Total
|
100
|
%
|
|
100
|
%
|
|
Training and
Simulation
Division
|
|
Power Systems
Division
|
||||
Three months ended March 31, 2019
|
|
|
|
||||
Fixed Price
|
$
|
10,971,102
|
|
|
$
|
6,169,657
|
|
Cost Reimbursement (Cost Plus)
|
1,349,345
|
|
|
431,050
|
|
||
Time and Materials
|
1,669,168
|
|
|
188,317
|
|
||
Total
|
$
|
13,989,615
|
|
|
$
|
6,789,024
|
|
Three months ended March 31, 2018
|
|
|
|
||||
Fixed Price
|
$
|
12,209,969
|
|
|
$
|
12,072,168
|
|
Cost Reimbursement (Cost Plus)
|
1,338,951
|
|
|
388,749
|
|
||
Time and Materials
|
1,008,944
|
|
|
229,728
|
|
||
Total
|
$
|
14,557,864
|
|
|
$
|
12,690,645
|
|
|
Training and
Simulation
Division
|
|
Power Systems
Division
|
||||
Three months ended March 31, 2019
|
|
|
|
||||
U.S. Government
|
|
|
|
||||
Department of Defense (DoD)
|
$
|
4,893,803
|
|
|
$
|
441,033
|
|
Non-DoD
|
2,604,486
|
|
|
—
|
|
||
Foreign Military Sales (FMS)
|
642,269
|
|
|
—
|
|
||
Total U.S. Government
|
$
|
8,140,559
|
|
|
$
|
441,033
|
|
|
|
|
|
||||
U.S. Commercial
|
$
|
4,771,042
|
|
|
$
|
3,167,221
|
|
Non-U.S. Government
|
241,553
|
|
|
291,965
|
|
||
Non-U.S. Commercial
|
836,462
|
|
|
2,888,805
|
|
||
Total Revenue
|
$
|
13,989,615
|
|
|
$
|
6,789,024
|
|
Three months ended March 31, 2018
|
|
|
|
||||
U.S. Government
|
|
|
|
||||
Department of Defense (DoD)
|
$
|
3,432,193
|
|
|
$
|
512,212
|
|
Non-DoD
|
2,738,807
|
|
|
—
|
|
||
Foreign Military Sales (FMS)
|
584,781
|
|
|
—
|
|
||
Total U.S. Government
|
$
|
6,755,781
|
|
|
$
|
512,212
|
|
|
|
|
|
||||
U.S. Commercial
|
$
|
6,028,998
|
|
|
$
|
7,717,964
|
|
Non-U.S. Government
|
926,164
|
|
|
1,517,816
|
|
||
Non-U.S. Commercial
|
846,921
|
|
|
2,942,653
|
|
||
Total Revenue
|
$
|
14,557,864
|
|
|
$
|
12,690,645
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||
|
Training and Simulation Division
|
|
Power Systems Division
|
|
Total
|
|
Training and Simulation Division
|
|
Power Systems Division
|
|
Total
|
||||||||||||
Contract Assets - Current
|
$
|
14,251,984
|
|
|
$
|
8,067,984
|
|
|
$
|
22,319,968
|
|
|
$
|
10,358,679
|
|
|
$
|
7,509,217
|
|
|
$
|
17,867,896
|
|
Contract Liabilities - Current
|
(6,076,744
|
)
|
|
(674,041
|
)
|
|
(6,750,785
|
)
|
|
(6,697,522
|
)
|
|
(357,257
|
)
|
|
(7,054,779
|
)
|
||||||
Net Contract Assets and Liabilities:
|
$
|
8,175,240
|
|
|
$
|
7,393,943
|
|
|
$
|
15,569,183
|
|
|
$
|
3,661,157
|
|
|
$
|
7,151,960
|
|
|
$
|
10,813,117
|
|
|
March 31, 2019
|
|
December 31, 2018
|
||||
Raw and packaging materials
|
$
|
7,977,195
|
|
|
$
|
7,912,883
|
|
Work in progress
|
1,054,467
|
|
|
1,626,960
|
|
||
Finished products
|
420,802
|
|
|
372,905
|
|
||
Total:
|
$
|
9,452,464
|
|
|
$
|
9,912,748
|
|
|
Training and
Simulation Division |
|
Power Systems
Division |
|
Corporate
Expenses |
|
Total
Company |
||||||||
Three months ended March 31, 2019
|
|
|
|
|
|
|
|
||||||||
Revenues from outside customers
|
$
|
13,989,615
|
|
|
$
|
6,789,024
|
|
|
$
|
—
|
|
|
$
|
20,778,639
|
|
Depreciation and amortization(1)
|
(187,830
|
)
|
|
(675,490
|
)
|
|
—
|
|
|
(863,320
|
)
|
||||
Direct expenses(2)
|
(11,695,059
|
)
|
|
(8,261,927
|
)
|
|
(906,020
|
)
|
|
(20,863,006
|
)
|
||||
Segment operating income (loss)
|
$
|
2,106,726
|
|
|
$
|
(2,148,393
|
)
|
|
$
|
(906,020
|
)
|
|
$
|
(947,687
|
)
|
Financial expense
|
(43,007
|
)
|
|
(64,915
|
)
|
|
(190,523
|
)
|
|
(298,445
|
)
|
||||
Income tax expense
|
(50,000
|
)
|
|
—
|
|
|
(110,881
|
)
|
|
(160,881
|
)
|
||||
Net income (loss)
|
$
|
2,013,719
|
|
|
$
|
(2,213,308
|
)
|
|
$
|
(1,207,424
|
)
|
|
$
|
(1,407,013
|
)
|
Segment assets(3)(4)
|
57,291,042
|
|
|
64,085,613
|
|
|
3,623,664
|
|
|
125,000,319
|
|
||||
Additions to long-lived assets
|
532,251
|
|
|
403,337
|
|
|
319,995
|
|
|
1,255,583
|
|
||||
Three months ended March 31, 2018
|
|
|
|
|
|
|
|
||||||||
Revenues from outside customers
|
$
|
14,557,864
|
|
|
$
|
12,690,645
|
|
|
$
|
—
|
|
|
$
|
27,248,509
|
|
Depreciation, amortization and impairment expenses(1)
|
(200,360
|
)
|
|
(796,042
|
)
|
|
—
|
|
|
(996,402
|
)
|
||||
Direct expenses(2)
|
(11,872,231
|
)
|
|
(12,273,712
|
)
|
|
(1,050,353
|
)
|
|
(25,196,296
|
)
|
||||
Segment operating income (loss)
|
$
|
2,485,273
|
|
|
$
|
(379,109
|
)
|
|
$
|
(1,050,353
|
)
|
|
$
|
1,055,811
|
|
Financial expense
|
(44,619
|
)
|
|
15,465
|
|
|
(183,954
|
)
|
|
(213,108
|
)
|
||||
Income tax expense
|
(19,801
|
)
|
|
—
|
|
|
(227,313
|
)
|
|
(247,114
|
)
|
||||
Net income (loss)
|
$
|
2,420,853
|
|
|
$
|
(363,644
|
)
|
|
$
|
(1,461,620
|
)
|
|
$
|
595,589
|
|
Segment assets(3)
|
51,690,905
|
|
|
60,995,921
|
|
|
3,119,613
|
|
|
115,806,439
|
|
||||
Additions to long-lived assets
|
121,588
|
|
|
209,232
|
|
|
—
|
|
|
330,820
|
|
(1)
|
Includes depreciation of property and equipment and amortization expenses of intangible assets.
|
(2)
|
Including,
inter alia
, sales and marketing, general and administrative.
|
(3)
|
Out of those amounts, goodwill in the Company’s Training and Simulation Division and Power Systems Division totaled
$24,435,641
and
$21,702,395
, respectively, as of
March 31, 2019
and
2018
.
|
(4)
|
Out of those amounts, right-of-use assets for the Company’s Training and Simulation Division and Power Systems Division totaled
$519,496
and
$5,516,164
, respectively, as of
March 31, 2019
.
|
|
Three months ended March 31,
|
||||
Type of Revenue
|
2019
|
|
2018
|
||
Sale of products
|
92.1
|
%
|
|
96.4
|
%
|
Maintenance and support agreements
|
4.6
|
%
|
|
2.9
|
%
|
Long term research and development contracts
|
3.3
|
%
|
|
0.7
|
%
|
Total
|
100
|
%
|
|
100
|
%
|
Exhibit Number
|
|
Description
|
|
10.1
|
|
Incorporated by Reference
|
|
10.2
|
|
Incorporated by Reference
|
|
31.1
|
|
Filed Herewith
|
|
31.2
|
|
Filed Herewith
|
|
32.1
|
|
Furnished with this Report
|
|
32.2
|
|
Furnished with this Report
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document
|
Filed Herewith
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
Filed Herewith
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
Filed Herewith
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
Filed Herewith
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
Filed Herewith
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
Filed Herewith
|
|
AROTECH CORPORATION
|
|||
|
|
|||
|
|
|||
|
By:
|
/s/ Dean M. Krutty
|
|
|
|
|
Name:
|
Dean M. Krutty
|
|
|
|
Title:
|
President and Chief Executive Officer
|
|
|
|
|
(Principal Executive Officer)
|
|
|
|
|
|
|
|
By:
|
/s/ Kelli L. Kellar
|
|
|
|
|
Name:
|
Kelli L. Kellar
|
|
|
|
Title:
|
Vice President – Finance and CFO
|
|
|
|
|
(Principal Financial Officer)
|
|
1 Year Arotech Chart |
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