2024 Q2 - Quarterly Report

UNITEDSTATES SECURITIESANDEXCHANGECOMMISSION Washington,D.C.20549 Form10-Q oQUARTERLYREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934 ForthequarterlyperiodendedApril30,2024 ☐TRANSITIONREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACTOF1934 Commissionfilenumber:000-13301 RFINDUSTRIES,LTD. (Exactnameofregistrantasspecifiedinitscharter) Nevada88-0168936 (Stateorotherjurisdictionofincorporationororganization)(I.R.S.EmployerIdentificationNo.) 16868ViaDelCampoCourt,Suite200 SanDiego,California92127 (Addressofprincipalexecutiveoffices)(ZipCode) (858)549-6340 (Registrant’stelephonenumber,includingareacode) SecuritiesregisteredpursuanttoSection12(b)oftheAct: TitleofeachclassTradingSymbol(s)NameofeachexchangeonwhichregisteredCommonStock,$0.01parvaluepershareRFILNASDAQGlobalMarket Indicatebycheckmarkwhethertheregistrant(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtofilesuchreports),and(2)hasbeensubjecttosuchfilingrequirementsforthepast90days.Yes☒No☐ IndicatebycheckmarkwhethertheregistranthassubmittedeveryInteractiveDataFilerequiredtobesubmittedpursuanttoRule405ofRegulationS-T(§232.405ofthischapter)duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtosubmitsuchfiles.)Yes☒No☐ Indicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfiler,asmallerreportingcompany,oranemerginggrowthcompany.Seethedefinitionsof“largeacceleratedfiler,”“acceleratedfiler,”“smallerreportingcompany”and“emerginggrowthcompany”inRule12b-2oftheExchangeAct. Largeacceleratedfiler☐Acceleratedfiler☐ Non-acceleratedfiler☒Smallerreportingcompany☒ Emerginggrowthcompany☐ Ifanemerginggrowthcompany,indicatebycheckmarkiftheregistranthaselectednottousetheextendedtransitionperiodforcomplyingwithanyneworrevisedfinancialaccountingstandardsprovidedpursuanttoSection13(a)oftheExchangeAct.☐ Indicatebycheckmarkwhethertheregistrantisashellcompany(asdefinedinRule12b-2oftheExchangeAct):Yes☐ No☒ Thenumberofsharesoftheissuer’sCommonStock,parvalue$0.01pershare,outstandingasofJune13,2024was10,495,548. 1 PartI.FINANCIALINFORMATION Item1:FinancialStatements RFINDUSTRIES,LTD.ANDSUBSIDIARIES CONDENSEDCONSOLIDATEDBALANCESHEETS (Inthousands,exceptshareandpershareamounts) April30,2024 October31,2023 (Unaudited) (Note1) ASSETSCURRENTASSETSCashandcashequivalents$1,400 $4,897 Tradeaccountsreceivable,netofallowanceforcreditlossesof$146and$244,respectively10,552 10,277 Inventories16,379 18,730 Othercurrentassets1,894 2,136 TOTALCURRENTASSETS30,225 36,040 Propertyandequipment: Equipmentandtooling4,817 4,796 Furnitureandofficeequipment5,922 5,631 10,739 10,427 Lessaccumulateddepreciation5,925 5,503 Totalpropertyandequipment,net4,814 4,924 Operatingleaseright-of-useassets,net14,999 15,689 Goodwill8,085 8,085 Amortizableintangibleassets,net12,751 13,595 Non-amortizableintangibleassets1,174 1,174 Deferredtaxassets- 2,494 Otherassets775 277 TOTALASSETS$72,823 $82,278 2 Item1:FinancialStatements(continued) RFINDUSTRIES,LTD.ANDSUBSIDIARIES CONDENSEDCONSOLIDATEDBALANCESHEETS (Inthousands,exceptshareandpershareamounts) April30,2024 October31,2023 (Unaudited) (Note1) LIABILITIESANDSTOCKHOLDERS'EQUITYCURRENTLIABILITIESAccountspayable$3,156 $3,201 Accruedexpenses4,218 4,572 Lineofcredit10,460 1,000 CurrentportionofTermLoan- 2,424 Currentportionofoperatingleaseliabilities1,424 1,314 TOTALCURRENTLIABILITIES19,258 12,511 Operatingleaseliabilities18,774 19,284 Deferredtaxliabilities182 - TermLoan,netofdebtissuancecost- 10,721 TOTALLIABILITIES38,214 42,516 COMMITMENTSANDCONTINGENCIESSTOCKHOLDERS’EQUITYCommonstock-authorized20,000,000sharesof$0.01parvalue;10,495,548and10,343,223sharesissuedandoutstandingatApril30,2024andOctober31,2023,respectively105 104 Additionalpaid-incapital26,589 26,087 Retainedearnings7,915 13,571 TOTALSTOCKHOLDERS'EQUITY34,609 39,762 TOTALLIABILITIESANDSTOCKHOLDERS'EQUITY$72,823 $82,278 SeeNotestoUnauditedCondensedConsolidatedFinancialStatements. 3 Item1:FinancialStatements(continued) RFINDUSTRIES,LTD.ANDSUBSIDIARIESCONDENSEDCONSOLIDATEDSTATEMENTSOFOPERATIONS (UNAUDITED) (Inthousands,exceptshareandpershareamounts) ThreeMonthsEndedApril30, SixMonthsEndedApril30, 2024 2023 2024 2023 Netsales $16,110 $22,298 $29,568 $40,642 Costofsales 11,286 16,178 21,441 29,435 Grossprofit 4,824 6,120 8,127 11,207 Operatingexpenses: Engineering 637 882 1,405 1,845 Sellingandgeneral 4,602 4,749 9,221 10,042 Totaloperatingexpenses 5,239 5,631 10,626 11,887 Operating(loss)income (415) 489 (2,499) (680) Otherexpense (230) (72) (339) (225) (Loss)incomebeforebenefitforincometaxes (645) 417 (2,838) (905) Provision(benefit)forincometaxes 3,649 (164) 2,818 (324) Consolidatednet(loss)income $(4,294) $581 $(5,656) $(581) (Loss)earningspershare: Basic $(0.41) $0.06 $(0.54) $(0.06) Diluted $(0.41) $0.06 $(0.54) $(0.06) Weightedaveragesharesoutstanding: Basic 10,495,548 10,290,911 10,452,597