LINK Interlink Electronics Inc

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

 

Date of Report (Date of Earliest Event Reported): November 9, 2023

 

INTERLINK ELECTRONICS, INC.

(Exact Name of Registrant as Specified in Charter)

 

Nevada	001-37659	77-0056625
(State or Other Jurisdiction	(Commission	(IRS Employer
of Incorporation)	File Number)	Identification No.)

 

	15707 Rockfield Blvd, Suite 105
	Irvine, California	92618
	(Address of Principal Executive Offices)	(Zip Code)

 

(805) 484-8855

(Registrant’s telephone number, including area code)

 

Not Applicable

(Former name or former address, if changed since last report)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock, $0.001 par value		LINK		The NASDAQ Stock Market LLC

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

¨

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨

Pre-commencement communications pursuant to Rule 13e-4(c)) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

Item 2.02.

Results of Operations and Financial Condition.

 

On November 9, 2023, Interlink Electronics, Inc. announced its financial results for the quarter ended September 30, 2023. A copy of the press release is being furnished as Exhibit 99.1 to this Current Report on Form 8-K.

 

The information in this Item 2.02 of Current Report on Form 8-K and Exhibit 99.1 attached hereto is intended to be furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such filing.

 

Item 9.01

Financial Statements and Exhibits.

 

	(d)	Exhibits
	The following exhibits are filed as part of this Current Report on Form 8-K:

 

	Exhibit Number		Description
	99.1		Press Release Issued by Interlink Electronics, Inc. dated November 9, 2023.
	104		Cover Page Interactive Data File for this Current Report on Form 8-K (formatted as Inline XBRL and contained in Exhibit 101)

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: November 13, 2023	INTERLINK ELECTRONICS, INC.
	By:	/s/ Ryan J. Hoffman
		Ryan J. Hoffman
		Chief Financial Officer

 

 

 

Exhibit 99.1

 

Interlink Electronics Reports Third Quarter 2023 Results

 

Revenue increased 66% from year-ago quarter on acquisitions and organic growth

 

November 9, 2023 6:00 AM PDT

 

IRVINE, CA – (Business Wire) – Interlink Electronics, Inc. (NASDAQ: LINK), a world-leading provider of sensors and printed electronic solutions that support a wide range of applications, including Human-Machine Interface (“HMI”) devices and IoT solutions, today announced its financial results for the three- and nine-month periods ended September 30, 2023.

 

Revenue for the quarter was $3.1 million, up 66% from the prior year period due to incremental revenue from the gas-sensor and membrane keypads operations acquired in December 2022 and March 2023. This in turn drove a 67% increase in the Company’s gross profit to $1.5 million. Revenue for the year-to-date period was $10.4 million, up 77% from the prior year due to increases in revenue from the gas-sensor operations, membrane keypads operations, and our traditional force-sensor products.

 

The following table sets forth the consolidated financial highlights.

 

Consolidated Financial Highlights

(Amounts in thousands except per share data and percentages)

 

		Three Months Ended September 30,																Nine Months Ended September 30,
Consolidated Financial Results		2023				2022				$ ∆				% ∆				2023				2022				$ ∆				% ∆
Revenue		$	3,075			$	1,851			$	1,224				66.1	%		$	10,402			$	5,882			$	4,520				76.8	%
Gross profit		$	1,459			$	872			$	587				67.3	%		$	5,107			$	3,065			$	2,042				66.6	%
Gross margin			47.4	%			47.1	%											49.1	%			52.1	%
Income (loss) from operations		$	(92	)		$	(190	)		$	98							$	141			$	(323	)		$	464
Net income (loss)		$	(125	)		$	6			$	(131	)						$	65			$	260			$	(195	)
Net income (loss) applicable to common stockholders		$	(225	)		$	(94	)		$	(131	)						$	(235	)		$	(40	)		$	(195	)
Earnings (loss) per common share – diluted		$	(0.03	)		$	(0.01	)		$	(0.02	)						$	(0.04	)		$	(0.01	)		$	(0.03	)

 

·

Revenue increased 66% to $3.1 million in the third quarter of 2023 compared to the prior-year period, and increased 77% to $10.4 million for the nine-month period. This was due primarily to the inclusion of revenues from our Gas and Environmental Sensors division (the SPEC Sensors/KWJ Engineering electrochemical gas sensor businesses that were acquired in December 2022) and from the Calman Technology Limited membrane keypad and printed electronics operations acquired in March 2023. The increase in revenue for the nine-month period was also due in part to an exceptional quarter ended June 30, 2023 in the Company’s force-sensor resistor business due to increased shipments to certain of our medical market customers.

 

·

Gross profit for the quarter increased 67% to $1.5 million compared to the year-ago quarter due to increased revenues, while gross margin percentage was flat at 47%. For the nine-month period ended September 30, 2023, gross profit was $5.1 million, up 67% from the prior-year period due to higher revenues, offset in part by a decline in gross margin percentage from 52% to 49%. The decline in gross margin percentage for the nine-month period was due to higher materials and components costs on certain orders and changes in product and customer mix.

 

·

Loss from operations for the third quarter narrowed to $92,000, an improvement from the $190,000 loss reported for the prior year period. For the nine months ended September 30, 2023, the Company reported operating income of $141,000, compared to an operating loss of $323,000 in the prior year period. These improvements are due to the increases in gross profit, which more than offset the higher operating expenses from the additions of the SPEC/KWJ and Calman operations.

 

 

·

Net income (loss) applicable to common stockholders was a loss of $225,000 for the quarter ($0.03 per share), compared to a loss of $94,000 ($0.01 per share) in the prior-year period, and was a loss of $235,000 ($0.04 per share) for the nine months ended September 30, 2023, compared to a loss of $40,000 ($0.01 per share) in the prior-year period. The prior-year periods benefited from non-operating income from changes in the fair value of a marketable securities investment in the amounts of $181,000 and $562,000 for the three months and nine months ended September 30, 2022, respectively, whereas the Company had no such gains in the 2023 periods.

 

·

The Company ended the quarter with $5.2 million of cash and cash equivalents.

 

“We are pleased to be on pace to report record-level revenues for this year,” said Steven N. Bronson, Chairman, President, and CEO of Interlink Electronics. “And with our robust product portfolio and pipeline of potential acquisition targets, we are optimistic about our prospects for continued organic and acquisition-related revenue growth in the coming years.”

 

About Interlink Electronics, Inc.

 

Interlink Electronics is a world-leading provider of sensors and printed electronic solutions that support a wide range of applications, including Human-Machine Interface (“HMI”) devices and IoT solutions, utilizing our expertise in materials science, manufacturing, firmware and software to produce in-house system solutions for custom specifications. We have a proven track record of supplying mission-critical technological solutions in diverse markets including medical devices, automotive, gas detection and environmental quality monitoring, oil and gas and general industrial, and consumer electronics, providing standard and custom-designed sensors that provide the flexibility and functionality needed for today's sophisticated applications.

 

The Company’s products and solutions currently focus on three main fields:

 

·

For nearly 40 years, the Company has led the printed electronics industry in commercializing its patented Force Sensing Resistor® technology, which offers pressure and position sensing and rugged capabilities in a very wide range of temperatures. Our piezoelectric film sensors offer strain, bend and vibration sensing and can be used on curved surfaces, while our advanced matrix sensor solutions offer multiple touch capabilities. We supply some of the world's top electronics manufacturers with intuitive sensor and interface technologies for use in advanced applications such as medical robotics and vehicle collision detection.

 

·

Our Gas and Environmental Sensors division has over 25 years of experience in cutting-edge design and manufacture of electrochemical gas-sensing technology for industry, community, health and home. We provide advanced sensor solutions, precision sensing instruments, and custom engineering services for detecting gases such as carbon monoxide, ozone, hydrogen, NOX gases and ammonia, for transdermal alcohol detection and for air quality monitoring. Our innovative printed sensor design enables high-sensitivity, low-power and cost-effective solutions for broad adoption in the rapidly growing IOT market.

 

·

Our Calman Technology subsidiary brings over 25 years of experience in the design and manufacture of membrane keypads, graphic overlays and industrial label products. We offer IP-rated digital and hybrid printed devices featuring integrated backlighting and shielding and printed electronics with advanced materials ink printing. Calman has customers in fields such as medical devices and defense technologies and gives the Company a base in Europe.

 

We serve our international customer base from our corporate headquarters in Irvine, California; our Global Product Development and Materials Science Center and distribution and logistics center in Camarillo, California; our advanced printed-electronics manufacturing facilities in Shenzhen, China, and Irvine, Scotland; and our proprietary gas-sensor production and product development facility in Newark, California.

 

For more information, please visit InterlinkElectronics.com.

 

 

Forward Looking Statements

 

This release contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be generally identified by phrases such as “thinks,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” and similar words. Forward-looking statements in this press release include statements about our projected revenues and earnings, and our acquisition program and the effects of recent acquisitions, including contributions to our products, manufacturing operations and the markets we serve. Forward-looking statements are not guarantees of future performance and are inherently subject to uncertainties and other factors which could cause actual results to differ materially from the forward-looking statement. These statements are based upon, among other things, assumptions made by, and information currently available to, management, including management’s own knowledge and assessment of the company’s industry, R&D initiatives, competition and capital requirements. Other factors and uncertainties that could affect the company’s forward-looking statements include, among other things, the following: our success in predicting new markets and the acceptance of our new products; efficient management of our infrastructure; the pace of technological developments and industry standards evolution and their effect on our target product and market choices; the effect of outsourcing technology development; changes in the ordering patterns of our customers; a decrease in the quality and/or reliability of our products; protection of our proprietary intellectual property; competition by alternative sophisticated as well as generic products; continued availability of raw materials for our products at competitive prices; disruptions in our manufacturing facilities; risks of international sales and operations including fluctuations in exchange rates; compliance with regulatory requirements applicable to our manufacturing operations; and customer concentrations. Additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements are under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our most recent Annual Report (Form 10-K) or Quarterly Report (Form 10-Q) filed with the Securities and Exchange Commission. Forward-looking statements are made as of the date of this release, and we expressly disclaim any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

Contact:

Interlink Electronics, Inc.

IR@iefsr.com

Steven N. Bronson, CEO

805-623-4184

 

 

INTERLINK ELECTRONICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)

 

		September 30,				December 31,
		2023				2022
		(in thousands)
ASSETS
Current assets
Cash and cash equivalents		$	5,207			$	10,091
Accounts receivable, net			1,622				1,178
Inventories			2,875				2,112
Prepaid expenses and other current assets			226				321
Total current assets			9,930				13,702
Property, plant and equipment, net			305				184
Intangible assets, net			289				76
Goodwill			4,392				650
Right-of-use assets			181				172
Deferred tax assets			128				134
Other assets			69				65
Total assets		$	15,294			$	14,983
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable		$	909			$	273
Accrued liabilities			443				568
Lease liabilities, current			141				131
Accrued income taxes			468				117
Total current liabilities			1,961				1,089
Long-term liabilities
Lease liabilities, long term			54				46
Total long-term liabilities			54				46
Total liabilities			2,015				1,135
Stockholders’ equity
Preferred stock			2				2
Common stock			7				7
Additional paid-in-capital			62,282				62,617
Accumulated other comprehensive income (loss)			(97	)			(98	)
Accumulated deficit			(48,915	)			(48,680	)
Total stockholders’ equity			13,279				13,848
Total liabilities and stockholders’ equity		$	15,294			$	14,983

 

 

INTERLINK ELECTRONICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

 

		Three Months Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
		(in thousands, except per share data)
Revenue, net		$	3,075			$	1,851			$	10,402			$	5,882
Cost of revenue			1,616				979				5,295				2,817
Gross profit			1,459				872				5,107				3,065
Operating expenses:
Engineering, research and development			588				319				1,765				912
Selling, general and administrative			963				743				3,201				2,476
Total operating expenses			1,551				1,062				4,966				3,388
Income (loss) from operations			(92	)			(190	)			141				(323	)
Other income (expense):
Other income (expense), net			26				207				154				704
Income before income taxes			(66	)			17				295				381
Income tax expense			59				11				230				121
Net income (loss)		$	(125	)		$	6			$	65			$	260
Net income (loss) applicable to common stockholders		$	(225	)		$	(94	)		$	(235	)		$	(40	)
Earnings (loss) per common share – basic and diluted		$	(0.03	)		$	(0.01	)		$	(0.04	)		$	(0.01	)
Weighted average common shares outstanding – basic and diluted			6,582				6,603				6,597				6,603

 

 

 

 

 

v3.23.3

Cover	Nov. 09, 2023
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Nov. 09, 2023
Entity File Number	001-37659
Entity Registrant Name	INTERLINK ELECTRONICS, INC.
Entity Central Index Key	0000828146
Entity Tax Identification Number	77-0056625
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	15707 Rockfield Blvd
Entity Address, Address Line Two	Suite 105
Entity Address, City or Town	Irvine
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92618
City Area Code	805
Local Phone Number	484-8855
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	LINK
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false

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