Delaware
|
11-2277818
|
(State or other jurisdiction of
|
(I.R.S. Employer I.D. Number)
|
incorporation or organization)
|
|
333 Bayview Avenue, Amityville, New York
|
11701
|
(Address of principal executive offices)
|
(Zip Code)
|
Common Stock, par value $.01 per share
|
The NASDAQ Stock Market LLC
|
(Title of Each Class)
|
(Name of each exchange on which registered)
|
2011
|
2010
|
||||||||
(in thousands)
|
|||||||||
Sales to external customers(1):
|
|||||||||
Domestic
|
$ | 66,793 | $ | 62,925 | |||||
Foreign
|
4,599 | 4,832 | |||||||
Total Net Sales
|
$ | 71,392 | $ | 67,757 | |||||
Identifiable assets:
|
|||||||||
United States
|
$ | 54,426 | $ | 54,896 | |||||
Dominican Republic (2)
|
14,342 | 18,235 | |||||||
Other foreign countries
|
27 | 537 | |||||||
Total Identifiable Assets
|
$ | 68,795 | $ | 73,668 |
Quarter Ended Fiscal 2011
|
||||||||||||||||
Common Stock
|
Sept. 30
|
Dec. 31
|
March 31
|
June 30
|
||||||||||||
High
|
$ | 2.05 | $ | 1.95 | $ | 2.35 | $ | 3.00 | ||||||||
Low
|
$ | 1.66 | $ | 1.62 | $ | 1.68 | $ | 2.12 |
Quarter Ended Fiscal 2010
|
||||||||||||||||
Common Stock
|
Sept. 30
|
Dec. 31
|
March 31
|
June 30
|
||||||||||||
High
|
$ | 2.08 | $ | 2.86 | $ | 3.02 | $ | 2.58 | ||||||||
Low
|
$ | 1.11 | $ | 1.43 | $ | 1.68 | $ | 1.70 |
PLAN CATEGORY
|
NUMBER OF SECURITIES TO BE ISSUED UPON EXERCISE OF OUTSTANDING OPTIONS
(a)
|
WEIGHTED AVERAGE EXERCISE PRICE OF OUTSTANDING OPTIONS
(b)
|
NUMBER OF SECURITIES REMAINING AVAILABLE FOR FUTURE ISSUANCE (EXCLUDING SECURITIES REFLECTED IN COLUMN (a)
(c)
|
|||||||||
Equity compensation plans approved by security holders:
|
1,410,140 | $ | 2.99 | 365,000 | ||||||||
Equity compensation plans not approved by security holders:
|
--
|
--
|
--
|
|||||||||
Total
|
1,410,140 | $ | 2.99 | 365,000 |
Fiscal Year Ended and at June 30
|
||||||||||||||||||||
(In thousands, except share and per share data)
|
||||||||||||||||||||
2011(1)
|
2010(1)
|
2009(1)
|
2008
|
2007(2)
|
||||||||||||||||
Statement of earnings data:
|
||||||||||||||||||||
Net Sales
|
$ | 71,392 | $ | 67,757 | $ | 69,565 | $ | 68,367 | $ | 66,202 | ||||||||||
Gross Profit
|
20,101 | 14,522 | 15,096 | 20,412 | 23,998 | |||||||||||||||
Impairment of Goodwill and intangible assets
|
400 | 923 | 9,686 | -- | -- | |||||||||||||||
Income (Loss) from Operations
|
2,513 | (5,211 | ) | (14,917 | ) | 3,137 | 6,501 | |||||||||||||
Net Income (Loss)
|
1,121 | (6,500 | ) | (13,382 | ) | 3,718 | 4,217 | |||||||||||||
Cash Flow Data:
|
||||||||||||||||||||
Net cash flows provided by (used in) operating activities
|
4,364 | 5,285 | 6,792 | 3,784 | (3,674 | ) | ||||||||||||||
Net cash flows used in investing activities
|
(737 | ) | (300 | ) | (25,229 | ) | (1,045 | ) | (1,294 | ) | ||||||||||
Net cash flows (used in) provided by financing activities
|
(6,072 | ) | (3,572 | ) | 19,781 | (1,722 | ) | 3,978 | ||||||||||||
Per Share Data:
|
||||||||||||||||||||
Net earnings (loss) per common share:
|
||||||||||||||||||||
Basic
|
$ | .06 | $ | (.34 | ) | $ | (.70 | ) | $ | .19 | $ | .21 | ||||||||
Diluted
|
$ | .06 | $ | (.34 | ) | $ | (.70 | ) | $ | .19 | $ | .20 | ||||||||
Weighted average common shares outstanding:
|
||||||||||||||||||||
Basic
|
19,096,000 | 19,096,000 | 19,096,000 | 19,263,000 | 19,961,000 | |||||||||||||||
Diluted
|
19,176,000 | 19,096,000 | 19,096,000 | 19,802,000 | 20,599,000 | |||||||||||||||
Cash Dividends declared per common share (3)
|
$ | .00 | $ | .00 | $ | .00 | $ | .00 | $ | .00 | ||||||||||
Balance sheet data:
|
||||||||||||||||||||
Working capital (4)
|
$ | 29,185 | $ | 3,502 | $ | 22,404 | $ | 41,293 | $ | 40,527 | ||||||||||
Total assets
|
68,795 | 73,668 | 81,586 | 76,723 | 76,785 | |||||||||||||||
Long-term debt (4)
|
20,205 | -- | 18,749 | 12,400 | 10,900 | |||||||||||||||
Stockholders' equity
|
35,429 | 34,242 | 40,515 | 53,542 | 53,257 |
(1)
|
Includes the operations and assets of Marks USA I which was acquired in August 2008.
|
(2)
|
Certain expenses in Cost of sales have been reclassified to Selling, general and administrative expense to conform to the current year’s presentation.
|
(3)
|
The Company has never paid a dividend on its common stock. It is the policy of the Board of Directors to retain earnings for use in the Company's business. Any dividends must be approved by the Company's primary lenders.
|
(4)
|
Working capital is calculated by deducting Current Liabilities from Current Assets. As of June 30, 2010, the Company and its banks were in negotiations to amend and restate the existing terms of the credit facilities and term loan. Because the closing and final waivers occurred after the filing date of the June 30, 2010 Form 10-K, the Company classified this debt as current as of June 30, 2010. Upon completion of the closing this debt has been reclassified as long-term.
|
Amount
|
% of Pre-tax
Income
|
|||||||
Tax at Federal statutory rate
|
$ | 274 | 34.0 | % | ||||
Increases (decreases) in taxes resulting from:
|
||||||||
Meals and entertainment
|
51 | 6.3 | % | |||||
State income taxes, net of Federal income tax benefit
|
26 | 3.2 | % | |||||
Foreign source income and taxes
|
102 | 12.7 | % | |||||
Stock based compensation expense
|
16 | 2.0 | % | |||||
Tax reserve reversal
|
(77 | ) | (9.5 | )% | ||||
R&D Credit Refund
|
(708 | ) | (87.8 | )% | ||||
Other, net
|
2 | 0.2 | % | |||||
Effective tax rate
|
$ | (314 | ) | (38.9 | )% |
As of June 30,
|
|||
2011
|
2010
|
||
Current Ratio
|
3.2 to 1
|
1.1 to 1
|
|
Sales to Receivables
|
4.0 to 1
|
3.8 to 1
|
|
Total debt to equity
|
.67 to 1
|
.87 to 1
|
Payments due by period | ||||||||||||||||||||
Contractual obligations
|
Total
|
Less than 1
year
|
1-3 years
|
3-5 years
|
More than 5
years
|
|||||||||||||||
Long-term debt obligations
|
$ | 23,777,000 | $ | 3,572,000 | $ | 20,205,000 | $ | -- | $ | -- | ||||||||||
Land lease (82 years remaining) (1)
|
23,328,000 | 288,000 | 576,000 | 576,000 | 21,888,000 | |||||||||||||||
Operating lease obligations
|
83,000 | 45,000 | 37,000 | 1,000 | -- | |||||||||||||||
Other long-term obligations (employment agreements) (1)
|
1,127,000 | 886,000 | 241,000 | -- | -- | |||||||||||||||
Total
|
$ | 48,315,000 | $ | 4,791,000 | $ | 21,059,000 | $ | 577,000 | $ | 21,888,000 | ||||||||||
(1) See footnote 10 to the accompanying consolidated financial statements.
|
Fiscal year ended June 30, | ||||||||||||
2011
|
2010
|
% Increase/
(decrease)
|
||||||||||
Net sales
|
$ | 71,392 | $ | 67,757 | 5.4 | % | ||||||
Gross profit
|
20,101 | 14,522 | 38.4 | % | ||||||||
Gross profit as a % of net sales
|
28.2 | % | 21.4 | % | 31.8 | % | ||||||
Selling, general and administrative
|
17,188 | 18,810 | (8.6 | )% | ||||||||
Selling, general and administrative as a % of net sales
|
24.1 | % | 27.8 | % | 13.3 | % | ||||||
Impairment of goodwill and other intangibles
|
400 | 923 | (56.7 | )% | ||||||||
Income (loss) from operations
|
2,513 | (5,211 | ) | 148.2 | % | |||||||
Interest expense, net
|
1,660 | 2,366 | (29.8 | )% | ||||||||
Other expense, net
|
46 | 7 | 557.1 | % | ||||||||
(Benefit)for income taxes
|
(314 | ) | (1,084 | ) | (37.5 | )% | ||||||
Net income (loss)
|
1,121 | (6,500 | ) | 117.2 | % |
Page
|
|
Report of Independent Registered Public Accounting Firm
|
FS-1
|
Consolidated Financial Statements:
|
|
Consolidated Balance Sheets as of June 30, 2011 and 2010
|
FS-2
|
Consolidated Statements of Operations for the Fiscal Years Ended June 30, 2011 and 2010
|
FS-4
|
Consolidated Statements of Stockholders' Equity for the Fiscal Years Ended June 30, 2011 and 2010
|
FS-5
|
Consolidated Statements of Cash Flows for the Fiscal Years Ended June 30, 2011 and 2010
|
FS-6
|
Notes to Consolidated Financial Statements
|
FS-7 to FS-18
|
|
2011
|
2010
|
||||||
CURRENT ASSETS
|
||||||||
Cash and cash equivalents
|
$ | 3,077 | $ | 5,522 | ||||
Accounts receivable, net of reserves
|
17,640 | 17,740 | ||||||
Inventories
|
19,986 | 17,370 | ||||||
Prepaid expenses and other current assets
|
950 | 947 | ||||||
Income tax receivable
|
-- | 785 | ||||||
Deferred income taxes
|
528 | 448 | ||||||
Total Current Assets
|
42,181 | 42,812 | ||||||
Inventories - non-current, net
|
4,201 | 6,712 | ||||||
Deferred income taxes
|
2,083 | 1,842 | ||||||
Property, plant and equipment, net
|
7,741 | 8,106 | ||||||
Intangible assets, net
|
12,316 | 13,870 | ||||||
Other assets
|
273 | 326 | ||||||
TOTAL ASSETS
|
$ | 68,795 | $ | 73,668 |
|
2011
|
2010
|
||||||
CURRENT LIABILITIES
|
||||||||
Current maturities of long term debt
|
$ | 3,572 | $ | -- | ||||
Loan payable (see discussion below* and Note 7)
|
-- | 29,849 | ||||||
Accounts payable
|
4,649 | 5,320 | ||||||
Accrued expenses
|
2,553 | 2,242 | ||||||
Accrued salaries and wages
|
1,785 | 1,899 | ||||||
Total Current Liabilities
|
12,996 | 39,310 | ||||||
Long-term debt, net of current maturities
|
20,205 | -- | ||||||
Accrued income taxes
|
165 | 116 | ||||||
Total Liabilities
|
33,366 | 39,426 | ||||||
COMMITMENTS AND CONTINGENCIES
|
||||||||
STOCKHOLDERS' EQUITY
|
||||||||
Common Stock, par value $0.01 per share; 40,000,000 shares authorized; 20,095,713 shares issued; and 19,095,713 shares outstanding
|
201 | 201 | ||||||
Additional paid-in capital
|
14,072 | 14,006 | ||||||
Retained earnings
|
26,771 | 25,650 | ||||||
|
41,044 | 39,857 | ||||||
Less: Treasury Stock, at cost (1,000,000 shares)
|
(5,615 | ) | (5,615 | ) | ||||
TOTAL STOCKHOLDERS' EQUITY
|
35,429 | 34,242 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$ | 68,795 | $ | 73,668 |
|
2011
|
2010
|
||||||
Net sales
|
$ | 71,392 | $ | 67,757 | ||||
Cost of sales
|
51,291 | 53,235 | ||||||
Gross Profit
|
20,101 | 14,522 | ||||||
Selling, general, and administrative expenses
|
17,188 | 18,810 | ||||||
Impairment of goodwill and other intangible assets
|
400 | 923 | ||||||
Operating Income (Loss)
|
2,513 | (5,211 | ) | |||||
Other expense:
|
||||||||
Interest expense, net
|
1,660 | 2,366 | ||||||
Other, net
|
46 | 7 | ||||||
1,706 | 2,373 | |||||||
Income (loss) before Benefit for Income Taxes
|
807 | (7,584 | ) | |||||
Benefit for income taxes
|
(314 | ) | (1,084 | ) | ||||
Net Income (Loss)
|
$ | 1,121 | $ | (6,500 | ) | |||
|
||||||||
Income (loss) per share:
|
||||||||
Basic
|
$ | 0.06 | $ | (0.34 | ) | |||
Diluted
|
$ | 0.06 | $ | (0.34 | ) | |||
Weighted average number of shares outstanding:
|
||||||||
Basic
|
19,096,000 | 19,096,000 | ||||||
Diluted
|
19,176,000 | 19,096,000 | ||||||
|
Common Stock
|
Treasury Stock
|
||||||||||||||||||||||||||
|
Number of Shares
Issued
|
Amount
|
Additional
Paid-in
Capital
|
Number of Shares
|
Amount
|
Retained Earnings
|
Total
|
|||||||||||||||||||||
BALANCE June 30, 2009
|
20,095,713 | $ | 201 | $ | 13,779 | (1,000,000 | ) | $ | (5,615 | ) | $ | 32,150 | $ | 40,515 | ||||||||||||||
Stock-based compensation expense
|
-- | -- | 227 | - | - | - | 227 | |||||||||||||||||||||
Net loss
|
-- | -- | - | - | - | (6,500 | ) | (6,500 | ) | |||||||||||||||||||
BALANCE June 30, 2010
|
20,095,713 | $ | 201 | $ | 14,006 | (1,000,000 | ) | $ | (5,615 | ) | $ | 25,650 | $ | 34,242 | ||||||||||||||
Stock-based compensation expense
|
-- | -- | 66 | - | - | - | 66 | |||||||||||||||||||||
Net income
|
-- | -- | - | - | - | 1,121 | 1,121 | |||||||||||||||||||||
BALANCE June 30, 2011
|
20,095,713 | $ | 201 | $ | 14,072 | (1,000,000 | ) | $ | (5,615 | ) | $ | 26,771 | $ | 35,429 |
|
2011
|
2010
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||
Net income (loss)
|
$ | 1,121 | $ | (6,500 | ) | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
2,311 | 2,658 | ||||||
Impairment of goodwill and other intangibles
|
400 | 923 | ||||||
Charge to obsolescence reserve
|
694 | 394 | ||||||
Provision for doubtful accounts
|
27 | 105 | ||||||
Deferred income taxes
|
(321 | ) | (173 | ) | ||||
Non-cash stock based compensation expense
|
66 | 227 | ||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
73 | 2,154 | ||||||
Inventories
|
(799 | ) | 4,358 | |||||
Prepaid expenses and other current assets
|
(3 | ) | (151 | ) | ||||
Income tax receivable
|
785 | (593 | ) | |||||
Other assets
|
(3 | ) | (44 | ) | ||||
Accounts payable, accrued expenses, accrued salaries and wages, accrued income taxes
|
13 | 1,927 | ||||||
Net Cash Provided by Operating Activities
|
4,364 | 5,285 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Purchases of property, plant, and equipment
|
(737 | ) | (300 | ) | ||||
Net Cash Used in Investing Activities
|
(737 | ) | (300 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Principal payments on debt
|
(6,072 | ) | (3,572 | ) | ||||
Net Cash (Used in) by Financing Activities
|
(6,072 | ) | (3,572 | ) | ||||
Net Change in Cash and Cash Equivalents
|
(2,445 | ) | 1,413 | |||||
CASH AND CASH EQUIVALENTS - Beginning
|
5,522 | 4,109 | ||||||
CASH AND CASH EQUIVALENTS - Ending
|
$ | 3,077 | $ | 5,522 | ||||
SUPPLEMENTAL CASH FLOW INFORMATION
|
||||||||
Interest paid, net
|
$ | 1,562 | $ | 2,244 | ||||
Income taxes paid
|
$ | 10 | $ | -- |
June 30, 2011 | June 30, 2010 | |||||||||||||||||||||||
Cost
|
Accumulated amortization
|
Net book
value
|
Cost
|
Accumulated amortization
|
Net book
value
|
|||||||||||||||||||
Other intangible assets:
|
||||||||||||||||||||||||
Customer relationships
|
$ | 9,800 | $ | (3,584 | ) | $ | 6,216 | $ | 9,800 | $ | (2,479 | ) | $ | 7,321 | ||||||||||
Non-compete agreement
|
340 | (140 | ) | 200 | 340 | (91 | ) | 249 | ||||||||||||||||
Trademark
|
5,900 | -- | 5,900 | 6,300 | - | 6,300 | ||||||||||||||||||
$ | 16,040 | $ | (3,724 | ) | $ | 12,316 | $ | 16,440 | $ | (2,570 | ) | $ | 13,870 |
Net Income (Loss)
|
Weighted Average Shares
|
Net Income (Loss) per Share
|
||||||||||||||||||||||
2011
|
2010
|
2011
|
2010
|
2011
|
2010
|
|||||||||||||||||||
Basic EPS
|
$ | 1,121 | $ | (6,500 | ) | 19,096 | 19,096 | $ | 0.06 | $ | (0.34 | ) | ||||||||||||
Effect of Dilutive Securities:
|
||||||||||||||||||||||||
Stock Options
|
-- | -- | 80 | -- | -- | -- | ||||||||||||||||||
Diluted EPS
|
$ | 1,121 | $ | (6,500 | ) | 19,176 | 19,096 | $ | 0.06 | $ | (0.34 | ) |
June 30,
|
||||||||
2011
|
2010
|
|||||||
Component parts
|
$ | 14,014 | $ | 15,275 | ||||
Work-in-process
|
4,452 | 3,474 | ||||||
Finished product
|
5,721 | 5,333 | ||||||
$ | 24,187 | $ | 24,082 | |||||
Classification of inventories, net of reserves:
|
||||||||
Current
|
$ | 19,986 | $ | 17,370 | ||||
Non-current
|
4,201 | 6,712 | ||||||
$ | 24,187 | $ | 24,082 |
June 30,
|
||||||||||||
2011
|
2010
|
Useful Life in Years
|
||||||||||
(in thousands)
|
||||||||||||
Land
|
$ | 904 | $ | 907 | -- | |||||||
Buildings
|
8,911 | 8,911 |
30 to 40
|
|||||||||
Molds and dies
|
6,636 | 6,606 |
3 to 5
|
|||||||||
Furniture and fixtures
|
2,287 | 2,309 |
5 to 10
|
|||||||||
Machinery and equipment
|
18,642 | 18,119 |
7 to 10
|
|||||||||
Leasehold improvements
|
372 | 372 |
Shorter of the lease term or life of asset
|
|||||||||
37,752 | 37,221 | |||||||||||
Less: accumulated depreciation and amortization
|
30,011 | 29,115 | ||||||||||
$ | 7,741 | $ | 8,106 |
For the Years Ended June 30,
|
||||||||
2011
|
2010
|
|||||||
Current income taxes:
|
||||||||
Federal
|
$ | (35 | ) | $ | (950 | ) | ||
State
|
39 | 34 | ||||||
Foreign
|
3 | 5 | ||||||
7 | (911 | ) | ||||||
Deferred income tax benefit
|
(321 | ) | (173 | ) | ||||
Benefit for income taxes
|
$ | (314 | ) | $ | (1,084 | ) |
For the Years Ended June 30,
|
||||||||||||||||
2011
|
2010
|
|||||||||||||||
Amount
|
% of
Pre-tax
Income
|
Amount
|
% of
Pre-tax
Income
|
|||||||||||||
Tax at Federal statutory rate
|
$ | 274 | 34.0 | % | $ | (2,579 | ) | 34.0 | % | |||||||
Increases (decreases) in taxes resulting from:
|
||||||||||||||||
Meals and entertainment
|
51 | 6.3 | % | 46 | (0.6 | )% | ||||||||||
State income taxes, net of Federal income tax benefit
|
26 | 3.2 | % | 22 | (0.3 | )% | ||||||||||
Foreign source income and taxes
|
102 | 12.7 | % | 1,456 | (19.2 | )% | ||||||||||
Stock based compensation expense
|
16 | 2.0 | % | 68 | (0.9 | )% | ||||||||||
Tax reserve reversal
|
(77 | ) | (9.5 | )% | (64 | ) | 0.9 | % | ||||||||
R&D Credit refund
|
(708 | ) | (87.8 | )% | -- | 0.0 | % | |||||||||
Other, net
|
2 | 0.2 | % | (33 | ) | 0.4 | % | |||||||||
Effective tax rate
|
$ | (314 | ) | (38.9 | )% | $ | (1,084 | ) | 14.3 | % |
Current Deferred Tax Assets
(Liabilities)
|
Long-term Deferred Tax
Assets (Liabilities)
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Accounts receivable
|
$ | 19 | $ | 21 | $ | -- | $ | -- | ||||||||
Inventories
|
288 | 167 | 380 | 272 | ||||||||||||
Accrued Liabilities
|
221 | 260 | 35 | 32 | ||||||||||||
Stock based compensation expense
|
-- | -- | 137 | 128 | ||||||||||||
Goodwill
|
-- | -- | 2,077 | 2,113 | ||||||||||||
R&D credit
|
-- | -- | 163 | -- | ||||||||||||
Property, plant and equipment
|
-- | -- | (625 | ) | (658 | ) | ||||||||||
Other
|
-- | -- | -- | 39 | ||||||||||||
Other deferred tax liabilities
|
-- | -- | (84 | ) | (84 | ) | ||||||||||
528 | 448 | 2,083 | 1,842 | |||||||||||||
Valuation allowance
|
-- | -- | -- | -- | ||||||||||||
Net deferred taxes
|
$ | 528 | $ | 448 | $ | 2,083 | $ | 1,842 |
Tax
|
Interest
|
Total
|
||||||||||
Balance of gross unrecognized tax benefits as of July 1, 2010
|
$ | 93 | $ | 23 | $ | 116 | ||||||
Increase to unrecognized tax benefits as a result of R&D credits
|
165 | -- | 165 | |||||||||
Reductions to unrecognized tax benefits as a result of a lapse of the applicable statute of limitations
|
(93 | ) | (23 | ) | (116 | ) | ||||||
Balance of gross unrecognized tax benefits as of June 30, 2011
|
$ | 165 | $ | -- | $ | 165 |
June 30, 2011
|
June 30, 2010
|
|||||||||||||||
Outstanding
|
Interest Rate
|
Outstanding
|
Interest Rate
|
|||||||||||||
Revolving line of credit
|
$ | 8,600 | 4.82 | % | $ | 11,100 | 7.25 | % | ||||||||
Term loan
|
15,177 | 4.82 | % | 18,749 | 7.25 | % | ||||||||||
Total debt
|
$ | 23,777 | 4.82 | % | $ | 29,849 | 7.25 | % |
2011
|
2010
|
|||||||||||||||
Options
|
Weighted
average
exercise
price
|
Options
|
Weighted
average
exercise
price
|
|||||||||||||
Outstanding, beginning of year
|
1,380,140 | $ | 2.95 | 1,390,240 | $ | 2.95 | ||||||||||
Granted
|
-- | -- | -- | -- | ||||||||||||
Terminated
|
-- | -- | (10,100 | ) | 2.72 | |||||||||||
Exercised
|
-- | -- | -- | -- | ||||||||||||
Outstanding, end of year
|
1,380,140 | $ | 2.95 | 1,380,140 | $ | 2.95 | ||||||||||
Exercisable, end of year
|
1,372,140 | $ | 2.93 | 1,317,906 | $ | 2.85 | ||||||||||
Weighted average fair value at grant date of options granted
|
n/a | n/a | ||||||||||||||
Total intrinsic value of options exercised
|
n/a | n/a | ||||||||||||||
Total intrinsic value of options outstanding
|
$ | 1,097,191 | $ | 5,620 | ||||||||||||
Total intrinsic value of options exercisable
|
$ | 1,097,191 | $ | 5,620 |
Options outstanding
|
Options exercisable
|
|||||||||||||||||||||
Range of
exercise prices
|
Number
outstanding at
June 30, 2011
|
Weighted average remaining
contractual life
|
Weighted average
exercise price
|
Number
exercisable at
June 30, 2011
|
Weighted average
exercise price
|
|||||||||||||||||
$ | 0.72 - $ 4.00 | 1,014,390 | 2.1 | 1.89 | 1,014,390 | 1.89 | ||||||||||||||||
$ | 4.01 - $ 7.50 | 328,250 | 5.5 | 5.29 | 320,250 | 5.28 | ||||||||||||||||
$ | 7.51 - $11.16 | 37,500 | 4.7 | 11.16 | 37,500 | 11.16 | ||||||||||||||||
1,380,140 | 3.0 | 2.95 | 1,372,140 | 2.93 |
2011
|
2010
|
|||||||||||||||
Options
|
Weighted
average
exercise
price
|
Options
|
Weighted
average
exercise
price
|
|||||||||||||
Outstanding, beginning of year
|
30,000 | $ | 5.03 | 30,000 | $ | 5.03 | ||||||||||
Granted
|
-- | -- | -- | -- | ||||||||||||
Terminated
|
-- | -- | -- | -- | ||||||||||||
Exercised
|
-- | -- | -- | -- | ||||||||||||
Outstanding, end of year
|
30,000 | $ | 5.03 | 30,000 | $ | 5.03 | ||||||||||
Exercisable, end of year
|
30,000 | $ | 5.03 | 24,000 | $ | 5.03 | ||||||||||
Weighted average fair value at grant date of options granted
|
n/a | n/a | ||||||||||||||
Total intrinsic value of options exercised
|
n/a | n/a | ||||||||||||||
Total intrinsic value of options outstanding
|
$ | 0 | $ | 0 | ||||||||||||
Total intrinsic value of options exercisable
|
$ | 0 | $ | 0 |
Year Ending June 30,
|
Amount
|
|||
2012
|
$ | 45,000 | ||
2013
|
29,000 | |||
2014
|
8,000 | |||
2015
|
1,000 | |||
Total
|
$ | 83,000 |
2011
|
2010
|
|||||||
Sales to external customers (1)
|
||||||||
Domestic
|
$ | 66,793 | $ | 62,925 | ||||
Foreign
|
4,599 | 4,832 | ||||||
Total Net Sales
|
$ | 71,392 | $ | 67,757 | ||||
Identifiable assets:
|
||||||||
United States
|
$ | 54,426 | $ | 54,896 | ||||
Dominican Republic (2)
|
14,342 | 18,235 | ||||||
Other foreign countries
|
27 | 537 | ||||||
Total Identifiable assets
|
$ | 68,795 | $ | 73,668 |
(1)
|
All of the Company's sales occur in the United States and are shipped primarily from the Company's facilities in the
United States. There were no sales into any one foreign country in excess of 10% of total net sales.
|
(2)
|
Consists primarily of inventories (2011 = $9,955,000; 2010 = $13,896,000) and fixed assets (2011 = $4,189,000; 2010 = $4,246,000) located at the Company's principal manufacturing facility in the Dominican Republic.
|
Page
|
|
Report of Independent Registered Public Accounting Firm
|
FS-1
|
Consolidated Financial Statements:
|
|
Consolidated Balance Sheets as of June 30, 2011 and 2010
|
FS-2
|
Consolidated Statements of Operations for the Fiscal Years Ended June 30, 2011 and 2010
|
FS-4
|
Consolidated Statements of Stockholders' Equity for the Fiscal Years Ended June 30, 2011 and 2010
|
FS-5
|
Consolidated Statements of Cash Flows for the Fiscal Years Ended June 30, 2011 and 2010
|
FS-6
|
Notes to Consolidated Financial Statements, June 30, 2011
|
FS-7 to FS-18
|
Exhibit No.
|
Title
|
|
Ex-3.(i)
|
Certificate of Amendment of Certificate of Incorporation
|
Exhibit-3.(i) to Report on Form 10-K for the fiscal year ended June 30, 2006
|
Ex-3.(ii)
|
Certificate of Incorporation as amended
|
Exhibit-3.(ii) to Report on Form 10-K for the fiscal year ended June, 30 2006
|
Ex-3.(iii)
|
Amended and Restated By-Laws
|
Exhibit 3.(ii) to Report on Form 10-K for the fiscal year ended June 30, 2010
|
Ex 4.01
|
Second Amended and Restated Credit Agreement dated October 28, 2010
|
Exhibit 4.01 to Report on Form 8-K dated October 28, 2010
|
Ex 4.02
|
Negative Pledge Agreement
|
Exhibit 4.02 to Report on Form 8-K dated October 28, 2010
|
Ex 4.03
|
Amended and Restated Pledge Agreement
|
Exhibit 4.03 to Report on Form 8-K dated October 28, 2010
|
Ex 4.04
|
Amended and Restated Continuing General Security Agreement
|
Exhibit 4.04 to Report on Form 8-K dated October 28, 2010
|
Ex 4.05
|
Amended and Restated Unlimited Guarantee
|
Exhibit 4.05 to Report on Form 8-K dated October 28, 2010
|
Ex 4.06
|
Amended and Restated Continuing General Security Agreement
|
Exhibit 4.06 to Report on Form 8-K dated October 28, 2010
|
Ex 4.07
|
Amended and Restated Continuing General Security Agreement
|
Exhibit 4.07 to Report on Form 8-K dated October 28, 2010
|
Ex 4.08
|
Amended and Restated Continuing General Security Agreement
|
Exhibit 4.08 to Report on Form 8-K dated October 28, 2010
|
Ex 4.09
|
Amended and Restated Revolving Credit Note
|
Exhibit 4.09 to Report on Form 8-K dated October 28, 2010
|
Ex 4.10
|
Amended and Restated Term Loan Note
|
Exhibit 4.10 to Report on Form 8-K dated October 28, 2010
|
Ex 4.11
|
Amended and Restated Revolving Credit Note
|
Exhibit 4.11 to Report on Form 8-K dated October 28, 2010
|
Ex 4.12
|
Amended and Restated Swing Line Note
|
Exhibit 4.12 to Report on Form 8-K dated October 28, 2010
|
Ex 4.13
|
Amended and Restated Term Loan Note
|
Exhibit 4.13 to Report on Form 8-K dated October 28, 2010
|
*Ex-10.A (ii)
|
2002 Employee Stock Option Plan
|
Exhibit 10.A(II) to Report on Form 10-K for the fiscal year ended June 30, 2008
|
*Ex-10.I
|
Amended and Restated Employment Agreement with Richard Soloway
|
Exhibit 10.I to Report on Form 10-K for fiscal year ended June 30, 2010
|
*Ex-10.M
|
Indemnification Agreement dated August 9, 1999
|
Exhibit 10-M to Report on Form 10-K for the fiscal year ended June 30, 2005
|
Ex-14.0
|
Code of Ethics
|
Exhibit 14.0 to Report on Form 10-K for the fiscal year ended June 30, 2010
|
Ex-21.0
|
Subsidiaries of the Registrant
|
E-18
|
Ex-23.1
|
Consent of Independent Auditors
|
E-19
|
Ex-31.1
|
Section 302 Certification of Chief Executive Officer
|
E-20
|
Ex-31.2
|
Section 302 Certification of Chief Financial Officer
|
E-21
|
Ex-32.1
|
Certification of Chief Executive Officer Pursuant to 18 USC Section 1350 and Section 906 of Sarbanes - Oxley Act of 2002
|
E-22
|
Ex-32.2
|
Certification of Chief Financial Officer Pursuant to 18 USC Section 1350 and Section 906 of Sarbanes - Oxley Act of 2002
|
E-23
|
Signature
|
Title
|
Date
|
||
/s/RICHARD SOLOWAY
|
Chairman of the Board of Directors,
|
September 23, 2011
|
||
Richard Soloway
|
President and Secretary and Director
|
|||
(Principal Executive Officer)
|
||||
/s/KEVIN S. BUCHEL
|
Senior Vice President of Operations
|
September 23, 2011
|
||
Kevin S. Buchel
|
and Finance and Treasurer and Director
|
|||
(Principal Financial and Accounting Officer)
|
||||
/s/PAUL STEPHEN BEEBER
|
Director
|
September 23, 2011
|
||
Paul Stephen Beeber
|
||||
/s/RANDY B. BLAUSTEIN
|
Director
|
September 23, 2011
|
||
Randy B. Blaustein
|
||||
/s/ARNOLD BLUMENTHAL
|
Director
|
September 23, 2011
|
||
Arnold Blumenthal
|
||||
/s/DONNA SOLOWAY
|
Director
|
September 23, 2011
|
||
Donna Soloway
|
||||
/s/ANDREW J. WILDER
|
Director
|
September 23, 2011
|
||
Andrew J. Wilder
|
|
By:
|
/s/ Richard L. Soloway | |
Name: Richard L. Soloway
|
|||
Title: President
|
|||
Name
|
State or Jurisdiction of Organization
|
|
Alarm Lock Systems, Inc.
|
Delaware
|
|
Marks USA I, LLC
|
New York
|
|
Continental Instruments, LLC
|
New York
|
|
Napco DR, S.A.
|
Dominican Republic
|
|
Napco Group Europe, Limited
|
United Kingdom
|
|
Napco Americas
|
Cayman Islands
|
|
Napco Gulf Security Group, LLC
|
New York
|
|
Napco Security Systems International, Inc.
|
New York
|
|
Napco/Alarm Lock Exportadora, S.A.
|
Dominican Republic
|
|
Napco/Alarm Lock Grupo Internacional, S.A.
|
Dominican Republic
|
/s/RICHARD SOLOWAY
|
|
Richard Soloway
|
|
Chief Executive Officer
|
|
(Principal Executive Officer)
|
/s/KEVIN S. BUCHEL
|
|
Kevin S. Buchel
|
|
Chief Financial Officer
|
|
(Principal Financial Officer)
|
/s/RICHARD SOLOWAY
|
|
Richard Soloway
|
|
Chief Executive Officer
|
|
(Principal Executive Officer)
|
/s/KEVIN S. BUCHEL
|
|
Kevin S. Buchel
|
|
Chief Financial Officer
|
|
(Principal Financial Officer)
|