Table of Contents

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10-Q


(Mark One)

 

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

 

For the quarterly period ended June 29, 2019

OR

 

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

 

For the transition period from                      to

Commission file number: 001‑33264


Image - Image1.jpeg

U.S. AUTO PARTS NETWORK, INC.

(Exact name of registrant as specified in its charter)


Delaware

68‑0623433

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer

Identification No.)

 

16941 Keegan Avenue, Carson, CA 90746

(Address of Principal Executive Office) (Zip Code)

(424) 702‑1455

(Registrant’s telephone number, including area code)


Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes      No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b‑2 of the Exchange Act.

Large Accelerated Filer

 

Accelerated Filer

Non-Accelerated Filer

 

Smaller reporting company

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.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b‑2 of the Exchange Act).     Yes  ☐   No  

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

 

 

 

 

 

 

 

 

 

 

Title of each class:

 

Trading Symbol:

 

Name of Exchange on which registered:

Common Stock, $0.001 par value per share

 

PRTS

 

The Nasdaq Stock Market LLC

As of August 7, 2019, the registrant had 35,824,188 shares of common stock outstanding, $0.001 par value.

 

 

Table of Contents

U.S. AUTO PARTS NETWORK, INC.

QUARTERLY REPORT ON FORM 10‑Q

FOR THE THIRTEEN AND TWENTY-SIX WEEKS ENDED JUNE 29, 2019

TABLE OF CONTENTS

 

 

 

 

 

Page

 

PART I. FINANCIAL INFORMATION

 

 

 

 

ITEM 1. 

Financial Statements

4

 

Consolidated Balance Sheets (Unaudited) at June 29, 2019 and December 29, 2018

4

 

Consolidated Statements of Operations and Comprehensive Operations (Unaudited) for the Thirteen and Twenty-six Weeks Ended June 29, 2019 and June 30, 2018

5

 

Consolidated Statements of Stockholder’s Equity (Unaudited) for the Thirteen and Twenty-six Weeks Ended June 29, 2019 and June 30, 2018

6

 

Consolidated Statements of Cash Flows (Unaudited) for the Twenty-six Weeks Ended June 29, 2019 and June 30, 2018

7

 

Notes to Consolidated Financial Statements (Unaudited)

8

ITEM 2. 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

15

ITEM 3. 

Quantitative and Qualitative Disclosures About Market Risk

27

ITEM 4. 

Controls and Procedures

27

 

 

 

 

PART II. OTHER INFORMATION

 

 

 

 

ITEM 1. 

Legal Proceedings

28

ITEM 1A. 

Risk Factors

28

ITEM 2. 

Unregistered Sales of Equity Securities and Use of Proceeds

44

ITEM 3. 

Defaults Upon Senior Securities

44

ITEM 4. 

Mine Safety Disclosures

44

ITEM 5. 

Other Information

44

ITEM 6. 

Exhibits

45

 

Unless the context requires otherwise, as used in this report, the terms “U.S. Auto Parts,” the “Company,” “we,” “us” and “our” refer to U.S. Auto Parts Network, Inc. and its wholly-owned and majority-owned subsidiaries. Unless otherwise stated, all amounts are presented in thousands.  

U.S. Auto Parts®, U.S. Auto Parts Network™, Kool-Vue®, JC Whitney®, Carparts.com®, and Evan Fischer®, amongst others, are our United States trademarks. All other trademarks and trade names appearing in this report are the property of their respective owners.

 

 

Table of Contents

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

The statements included in this report, other than statements or characterizations of historical or current fact, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and we intend that such forward-looking statements be subject to the safe harbors created thereby. Any forward-looking statements included herein are based on management’s beliefs and assumptions and on information currently available to management. We have attempted to identify forward-looking statements by terms such as “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “plans,” “potential,” “predicts,” “projects,” “should,” “will,” “would”, “will likely continue,” “will likely result” and variations of these words or similar expressions. These forward-looking statements include, but are not limited to, statements regarding future events, our future operating and financial results, financial expectations, expected growth and strategies, current business indicators, capital needs, financing plans, capital deployment, liquidity, contracts, litigation including our litigation with U.S. customs, the anticipated impact of the issues we are experiencing with U.S. customs including the related trademark issues, product offerings, customers and suppliers, acquisitions, competition and the status of our facilities. Forward-looking statements, no matter where they occur in this document or in other statements attributable to the Company involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. We discuss many of these risks in greater detail under the heading “Risk Factors” in Part II, Item 1A of this report. Given these uncertainties, you should not place undue reliance on these forward-looking statements. You should read this report and the documents that we reference in this report and have filed as exhibits to the report completely and with the understanding that our actual future results may be materially different from what we expect. Also, forward-looking statements represent our management’s beliefs and assumptions only as of the date of this report. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future.

3

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1.Financial Statements

U.S. AUTO PARTS NETWORK, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited, In Thousands, Except Par Value and Per Share Liquidation Value)

 

 

 

 

 

 

 

 

 

June 29,

 

December 29,

 

    

2019

    

2018

ASSETS

 

 

  

 

 

  

Current assets:

 

 

  

 

 

  

Cash and cash equivalents

 

$

883

 

$

2,031

Short-term investments

 

 

 7

 

 

 1

Accounts receivable, net

 

 

4,040

 

 

3,727

Inventory

 

 

52,552

 

 

49,626

Other current assets

 

 

4,908

 

 

3,400

Total current assets

 

 

62,390

 

 

58,785

Deferred income taxes

 

 

21,846

 

 

21,833

Property and equipment, net

 

 

8,557

 

 

15,184

Right-of-use - assets - operating leases, net

 

 

5,565

 

 

 —

Right-of-use - assets - financing leases, net

 

 

8,513

 

 

 —

Other non-current assets

 

 

2,095

 

 

2,163

Total assets

 

$

108,966

 

$

97,965

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

  

 

 

  

Current liabilities:

 

 

  

 

 

  

Accounts payable

 

$

40,344

 

$

34,039

Accrued expenses

 

 

12,236

 

 

10,247

Current portion of capital leases payable

 

 

 —

 

 

594

Customer deposits

 

 

427

 

 

521

Right-of-use - obligation - operating, short term

 

 

1,604

 

 

 —

Right-of-use - obligation - finance, short term

 

 

620

 

 

 —

Other current liabilities

 

 

3,275

 

 

2,918

Total current liabilities

 

 

58,506

 

 

48,319

Capital leases payable, net of current portion

 

 

 —

 

 

8,559

Right-of-use - obligation - operating, long term

 

 

4,026

 

 

 —

Right-of-use - obligation - finance, long term

 

 

8,070

 

 

 —

Other non-current liabilities

 

 

2,137

 

 

2,265

Total liabilities

 

 

72,739

 

 

59,143

Commitments and contingencies

 

 

  

 

 

  

Stockholders’ equity:

 

 

  

 

 

  

Series A convertible preferred stock, $0.001 par value; $1.45 per share liquidation value or aggregate of $6,017; 4,150 shares authorized; 2,771 shares issued and outstanding at both June 29, 2019 and December 29, 2018

 

 

 3

 

 

 3

Common stock, $0.001 par value; 100,000 shares authorized; 35,784 and 34,992 shares issued and outstanding at June 29, 2019 and December 29, 2018 (of which 2,525 are treasury stock)

 

 

38

 

 

38

Common stock dividend

 

 

40

 

 

 —

Treasury stock

 

 

(7,146)

 

 

(7,146)

Additional paid-in capital

 

 

184,037

 

 

183,139

Accumulated other comprehensive income

 

 

541

 

 

579

Accumulated deficit

 

 

(141,286)

 

 

(137,791)

Total stockholders’ equity

 

 

36,227

 

 

38,822

Total liabilities and stockholders' equity

 

$

108,966

 

$

97,965

 

See accompanying notes to consolidated financial statements (unaudited).

4

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U.S. AUTO PARTS NETWORK, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE OPERATIONS

(Unaudited, in Thousands, Except Per Share Data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirteen Weeks Ended

 

Twenty-Six Weeks Ended

 

 

June 29,

 

June 30,

 

June 29,

 

June 30,

 

    

2019

    

2018

    

2019

    

2018

 

 

 

 

 

(As Restated)

 

 

 

 

(As Restated)

Net sales

 

$

73,687

 

$

76,973

 

$

148,425

 

$

155,358

Cost of sales (1)

 

 

51,924

 

 

56,451

 

 

106,533

 

 

111,617

Gross profit

 

 

21,763

 

 

20,522

 

 

41,892

 

 

43,741

Operating expenses:

 

 

  

 

 

  

 

 

  

 

 

  

Marketing

 

 

11,321

 

 

9,818

 

 

22,989

 

 

19,800

General and administrative

 

 

4,646

 

 

4,741

 

 

9,590

 

 

9,626

Fulfillment

 

 

5,819

 

 

5,394

 

 

11,395

 

 

11,242

Technology

 

 

1,157

 

 

998

 

 

2,519

 

 

2,086

Amortization of intangible assets

 

 

25

 

 

47

 

 

50

 

 

94

Total operating expenses

 

 

22,968

 

 

20,998

 

 

46,543

 

 

42,848

(Loss) income from operations

 

 

(1,205)

 

 

(476)

 

 

(4,651)

 

 

893

Other income (expense):

 

 

  

 

 

  

 

 

  

 

 

  

Other, net

 

 

46

 

 

(7)

 

 

43

 

 

(6)

Interest expense

 

 

(484)

 

 

(421)

 

 

(895)

 

 

(854)

Total other expense, net

 

 

(438)

 

 

(428)

 

 

(852)

 

 

(860)

(Loss) income before income taxes

 

 

(1,643)

 

 

(904)

 

 

(5,503)

 

 

33

Income tax (benefit) provision

 

 

(186)

 

 

(107)

 

 

(465)

 

 

262

Net loss

 

 

(1,457)

 

 

(797)

 

 

(5,038)

 

 

(229)

Other comprehensive income:

 

 

  

 

 

  

 

 

  

 

 

  

Foreign currency translation adjustments

 

 

(28)

 

 

23

 

 

(33)

 

 

42

Total other comprehensive income

 

 

(28)

 

 

23

 

 

(33)

 

 

42

Comprehensive loss

 

$

(1,485)

 

$

(774)

 

$

(5,071)

 

$

(187)

Loss from continuing operations per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted net loss per share

 

$

(0.04)

 

$

(0.02)

 

$

(0.14)

 

$

(0.01)

Weighted average common shares outstanding:

 

 

  

 

 

  

 

 

  

 

 

  

Shares used in computation of basic and diluted net loss per share

 

 

35,632

 

 

34,972

 

 

35,506

 

 

34,896


(1)

Excludes depreciation and amortization expense which is included in marketing, general and administrative and fulfillment expense.

See accompanying notes to consolidated financial statements (unaudited).

5

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U.S. AUTO PARTS NETWORK, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited, In Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

Stock

 

Other

 

 

 

 

Total

 

 

Preferred Stock

 

Common Stock

 

Paid-in-

 

Treasury

 

Dividend

 

Comprehensive

 

Accumulated

 

Stockholders’

 

    

Shares

    

Amount

    

Shares

    

Amount

    

Capital

    

Stock

    

Distributable

    

Income (Loss)

    

Deficit

    

Equity

Balance as originally stated at December 30, 2017

 

2,771

 

$

 3

 

34,666

 

$

37

 

$

179,906

 

$

(7,146)

 

 

 —

 

$

557

 

$

(132,996)

 

$

40,361

Effect of new accounting adoption

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

255

 

 

255

Balance as currently stated at December 30, 2017

 

2,771

 

 

 3

 

34,666

 

 

37

 

 

179,906

 

 

(7,146)

 

 

 —

 

 

557

 

 

(132,741)

 

 

40,616

Net Income

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

568

 

 

568

Issuance of shares in connection with restricted stock units vesting

 

 —

 

 

 —

 

438

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

Minimum tax withholding on RSU's

 

 —

 

 

 —

 

(166)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

Minimum tax withholdings on options exercised

 

 —

 

 

 —

 

 —

 

 

 —

 

 

(395)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(395)

Issuance of shares in connection with BOD fees

 

 —

 

 

 —

 

 1

 

 

 —

 

 

 4

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 4

Share-based compensation

 

 —

 

 

 —

 

 —

 

 

 —

 

 

1,002

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

1,002

Common stock dividend on preferred stock

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(39)

 

 

(39)

Effect of changes in foreign currencies

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

22

 

 

 —

 

 

22

Balance, March 31, 2018

 

2,771

 

 

 3

 

34,939

 

 

37

 

 

180,517

 

 

(7,146)

 

 

 —

 

 

579

 

 

(132,212)

 

 

41,778

Net loss

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(797)

 

 

(797)

Issuance of shares in connection with restricted stock units vesting

 

 —

 

 

 —

 

33

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

Minimum tax withholding on RSU’s

 

 —

 

 

 —

 

 —

 

 

 —

 

 

(35)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(35)

Minimum tax withholdings on options exercised

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

Issuance of shares in connection with BOD fees

 

 —

 

 

 —

 

 2

 

 

 —

 

 

 4

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 4

Share-based compensation

 

 —

 

 

 —

 

 —

 

 

 —

 

 

156

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

156

Common Stock Dividend on preferred stock

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(41)

 

 

(41)

Effect of changes in foreign currencies

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

24

 

 

 —

 

 

24

Balance, June 30, 2018

 

2,771

 

$

 3

 

34,974

 

$

37

 

$

180,642

 

$

(7,146)

 

$

 —

 

$

603

 

$

(133,050)

 

$

41,089

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance as originally reported at, December 29, 2018

 

2,771

 

$

 3

 

34,992

 

$

38

 

$

183,139

 

$

(7,146)

 

$

 —

 

$

579

 

$

(137,791)

 

$

38,822

Effect of new accounting adoption

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

1,623

 

 

1,623

Balance as currently stated at, December 29, 2018

 

2,771

 

 

 3

 

34,992

 

 

38

 

 

183,139

 

 

(7,146)

 

 

 —

 

 

579

 

 

(136,168)

 

 

40,445

Net Loss

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(3,581)

 

 

(3,581)

Issuance of shares in connection with restricted stock units vesting

 

 —

 

 

 —

 

437

 

 

 —

 

 

(288)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(288)

Issuance of shares in connection with BOD fees

 

 —

 

 

 —

 

 4

 

 

 —

 

 

 4

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 4

Share-based compensation

 

 —

 

 

 —

 

 —

 

 

 —

 

 

554

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

554

Common stock dividend on preferred stock

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(39)

 

 

(39)

Effect of changes in foreign currencies

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(5)

 

 

 —

 

 

(5)

Balance, March 30, 2019

 

2,771

 

 

 3

 

35,433

 

 

38

 

 

183,409

 

 

(7,146)

 

 

 —

 

 

574

 

 

(139,788)

 

 

37,090

Net loss

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(1,457)

 

 

(1,457)

Issuance of shares in connection with restricted stock units vesting

 

 —

 

 

 —

 

348

 

 

 —

 

 

(2)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(2)

Issuance of shares in connection with BOD fees

 

 —

 

 

 —

 

 3

 

 

 —

 

 

 5

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 5

Share-based compensation

 

 —

 

 

 —

 

 —

 

 

 —

 

 

625

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

625

Issuance of shares related to dividends on preferred stock

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(41)

 

 

(41)

Common Stock Dividend on preferred stock

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

40

 

 

 —

 

 

 

 

 

40

Effect of changes in foreign currencies

 

 —

 

 

 —

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(33)

 

 

 —

 

 

(33)

Balance, June 29, 2019

 

2,771

 

$

 3

 

35,784

 

$

38

 

$

184,037

 

$

(7,146)

 

$

40

 

$

541

 

$

(141,286)

 

$

36,227

 

6

Table of Contents

U.S. AUTO PARTS NETWORK, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, In Thousands)

 

 

 

 

 

 

 

 

 

 

Twenty-Six Weeks Ended

 

 

 

June 29,

 

June 30,

 

 

    

2019

    

2018

    

 

 

 

 

 

(As Restated)

 

Operating activities

 

 

 

 

 

 

 

Net loss

 

$

(5,038)

 

$

(229)

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization expense

 

 

3,040

 

 

2,993

 

Amortization of intangible assets

 

 

50

 

 

94

 

Deferred income taxes

 

 

(559)

 

 

197

 

Share-based compensation expense

 

 

1,163

 

 

1,137

 

Stock awards issued for non-employee director service

 

 

 7

 

 

 7

 

Amortization of deferred financing costs

 

 

 2

 

 

 2

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

 

(313)

 

 

(163)

 

Inventory

 

 

(2,926)

 

 

1,247

 

Other current assets

 

 

(1,517)

 

 

(1,270)

 

Other non-current assets

 

 

24

 

 

 1

 

Accounts payable and accrued expenses

 

 

8,473

 

 

4,560

 

Other current liabilities

 

 

345

 

 

(929)

 

Right-of-Use Obligation - Operating Leases - Current

 

 

1,595

 

 

 —

 

Right-of-Use Obligation - Operating Leases - Long-term

 

 

(1,530)

 

 

 —

 

Other non-current liabilities

 

 

134

 

 

194

 

Net cash provided by operating activities

 

 

2,950

 

 

7,841

 

Investing activities

 

 

 

 

 

 

 

Additions to property and equipment

 

 

(3,431)

 

 

(2,940)

 

Net cash used in investing activities

 

 

(3,431)

 

 

(2,940)

 

Financing activities

 

 

 

 

 

 

 

Borrowings from revolving loan payable

 

 

7,641

 

 

3,189

 

Payments made on revolving loan payable

 

 

(7,641)

 

 

(3,189)

 

Payments on capital leases

 

 

(299)

 

 

(293)

 

Statutory tax withholding payment for share-based compensation

 

 

(289)

 

 

(430)

 

Payment of liabilities related to financing activities

 

 

 —

 

 

(100)

 

Preferred stock dividends paid

 

 

(80)

 

 

(80)

 

Net cash used in financing activities

 

 

(668)

 

 

(903)

 

Effect of exchange rate changes on cash

 

 

 1

 

 

(24)

 

Net change in cash and cash equivalents

 

 

(1,148)

 

 

3,974

 

Cash and cash equivalents, beginning of period

 

 

2,031

 

 

2,850

 

Cash and cash equivalents, end of period

 

$

883

 

$

6,824

 

Supplemental disclosure of non-cash investing and financing activities:

 

 

 

 

 

 

 

Accrued asset purchases

 

$

825

 

$

680

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

Cash paid during the period for income taxes

 

$