AmpliTech Group Inc
For the period ended Jun 30, 2024. Filed Aug 14, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 14, 2024
AMPG$2.31+4.8%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-28.
0001493152-24-021616
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-14.
0001493152-24-032264
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 53 previous paragraphs and 72 current paragraphs.
33 unchanged; 18 reworded; 17 added; 2 removed; 0 previous and 4 current paragraphs rearranged.
Tables are not compared: 0 previous and 0 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (17)
Current report
Selling, general and administrative expenses increased to $2,165,055 for the three months ended June 30, 2024, from $1,731,414 for the three months ended June 30, 2023, an increase of $433,641 or approximately 25.05%. This increase represents primarily an increase in legal, consulting and accounting fees, primarily related to the fraudulent digital currency transaction.
Current report
Net Loss
Current report
For the Six Months Ended June 30, 2024 and June 30, 2023
Current report
Revenues
Current report
Sales decreased from $8,185,530 for the six months ended June 30, 2023, to $4,820,773 for the six months ended June 30, 2024, a decrease of $3,364,757 or approximately 41.11%. Sales in the amplifier and related passive microwave components and subsystems division decreased by $1,181,645, or 39.59%. Spectrum sales decreased by $2,183,112, or 41.98%. This decline is attributable to a decrease in sales from both domestic and international customers because of global economic uncertainty. The global recession and adverse market conditions are affecting our business in terms of lost revenue.
Current report
Cost of Goods Sold decreased from $4,401,540 for the six months ended June 30, 2023, to $2,881,056 for the six months ended June 30, 2024, a decrease of $1,520,484 or 34.54%. Overall, this decrease is directly related to the decline in sales. As a result, gross profit was $1,939,717 for the six months ended June 30, 2024, compared to $3,783,990 for the six months ended June 30, 2023, a decrease of $1,844,273, or 48.74%. Overall, gross profit as a percentage of sales decreased from 46.23% to 40.24%.
Current report
Selling, General and Administrative Expenses
Current report
Selling, general and administrative expenses increased to $4,198,802 for the six months ended June 30, 2024, from $3,693,326 for the six months ended June 30, 2023, an increase of $505,476 or approximately 13.69%. This increase represents primarily an increase in legal, consulting and accounting fees, primarily related to the fraudulent digital currency transactions.
Current report
Research and Development Expenses
Current report
Research and development costs for the six months ended June 30, 2024, and 2023, were $736,877 and $1,217,885, respectively, a decrease of $481,008 or 39.50%, resulting from a decrease in consulting expensesas the major MMIC development efforts have been completed.
Current report
Loss From Operations
Current report
As a result of the above, the Company reported a loss from operations of $2,995,962 and $1,127,221 for the six months ended June 30, 2024 and 2023, respectively.
Current report
Other Income (Expenses)
Current report
The Company recorded net interest expense of $12,527 and net interest income of $21,085 for the six months ended June 30, 2024 and 2023.
Current report
Net Loss
Current report
The Company reported a net loss of $6,231,435 and $1,054,727 for the six months ended June 30, 2024 and 2023, respectively.
Current report
On July 23, 2024, the Company entered into a business loan and security agreement with Altbanq Lending II LLC in the amount of $1,300,000, with an origination fee of $26,000. The loan is payable within 76 weeks through 38 bi-weekly payments of $44,816 and bears an annual interest rate of 21.2%. The loan is secured by the Company’s assets through a UCC filing. Proceeds from the business loan will be used for working capital and 5G licensing and certification fees.
Removed paragraphs (2)
Previous report
Selling, general and administrative expenses decreased to $2,033,747 for the three months ended March 31, 2024, from $2,086,912 for the first three months ended March 31, 2023, a decrease of $53,165 or approximately 2.55%.
Previous report
Net Income (Loss)
Reworded paragraphs (18)
Previous wording
AmpliTech designs, engineers, and assembles microwave component-based low noise amplifiers (“LNA”) that meet individual customer specifications. Application of the Company’s proprietary technology results in maximum frequency gain with minimal background noise distortion as required by each customer. The Company has both domestic and international customers in such industries as aerospace, governmental, defense, and commercial satellite.
Current wording
AmpliTech, Inc. designs, engineers, and assembles microwave component-based low noise amplifiers (“LNA”) that meet individual customer specifications. Application of the Company’s proprietary technology results in maximum frequency gain with minimal background noise distortion as required by each customer. The Company has both domestic and international customers in such industries as aerospace, governmental, defense, and commercial satellite.
Previous wording
As a result of the fraudulent digital currency transactions noted above, the Company was a victim of a cyber phishing scam that defrauded the Company. During the three months ended March 31, 2024, the Company recorded a complete loss from the investment in digital assets of $3,248,911. As of March 31, 2024, the remaining balance of digital assets was $0.
Current wording
As a result of the fraudulent digital currency transactions noted above, the Company was a victim of a cyber phishing scam that defrauded the Company. During the six months ended June 30, 2024, the Company recorded a complete loss from the investment in digital assets of $3,248,911. As of June 30, 2024, the remaining balance of digital assets was $0.
Previous wording
Sales decreased from $4,112,299 for the three months ended March 31, 2023, to $2,293,331 for the three months ended March 31, 2024, a decrease of $1,818,968 or approximately 44.23%. Sales in the amplifier and related passive microwave components and subsystems division decreased by $181,332, or 14.84%. Spectrum sales decreased by $1,637,636, or 56.67%, a decline attributable to a decrease in sales from domestic and international customers, specifically in the Asian markets.
Current wording
Sales decreased from $4,073,231 for the three months ended June 30, 2023, to $2,527,442 for the three months ended June 30, 2024, a decrease of $1,545,789 or approximately 37.95%. Sales in the amplifier and related passive microwave components and subsystems division decreased by $1,003,313, or 56.75%, while Spectrum sales decreased by $545,476, or 23.61%. This decline is attributable to a decrease in sales from both domestic and international customers because of global economic uncertainty. The global recession and adverse market conditions are affecting our business in terms of lost revenue.
Previous wording
Cost of goods sold decreased from $2,295,768 for the three months ended March 31, 2023, to $1,410,701 for the three months ended March 31, 2024, a decrease of $885,067 or 38.55%. Overall, this decrease is directly related to the decline in sales. As a result, gross profit was $882,630 for the three months ended March 31, 2024, compared to $1,816,531 for the three months ended March 31, 2023, a decrease of $933,901, or 51.41%. Gross profit as a percentage of sales decreased to 38.49% from 44.17%, as a result of decreased sales, andthe product mix shipped this quarter having a lower gross profit margin.
Current wording
Cost of goods sold decreased from $2,152,022 for the three months ended June 30, 2023, to $1,470,355 for the three months ended June 30, 2024, a decrease of $681,667 or 31.68%. Overall, this decrease is directly related to the decline in sales. As a result, gross profit was $1,057,087 for the three months ended June 30, 2024, compared to $1,921,209 for the three months ended June 30, 2023, a decrease of $864,122, or 44.98%. Overall, gross profit as a percentage of sales decreased to 41.82% from 47.17%, because of decreased sales and fulfilling sales orders with lower gross margins.
Previous wording
Research and development costs for the three months ended March 31, 2024, and 2023, were $276,755 and $348,730, respectively, a decrease of $71,975, or 20.64%, resulting from the decrease in consulting expense.
Current wording
Research and development costs for the three months ended June 30, 2024, and 2023, were $460,122 and $697,905, respectively, a decrease of $237,783, or 34.07%, resulting from a decrease in consulting expenses as the major MMIC development efforts have been completed.
Previous wording
As a result of the above, the Company reported a loss from operations of $1,472,872 and $619,111 for the three months ended March 31, 2024, and 2023, respectively.
Current wording
As a result of the above, the Company reported a loss from operations of $1,568,090 and $508,110 for the three months ended June 30, 2024, and 2023, respectively.
Previous wording
The Company recorded interest expense, net of $4,343 and interest income, net of $13,771 for the three months ended March 31, 2024, and 2023.
Current wording
The Company recorded interest expense, net of $8,184 and interest income, net of $7,314 for the three months ended June 30, 2024, and 2023.
Previous wording
As a result of the items listed above, the Company reported a net loss of $4,655,161 and $581,966 for the three months ended March 31, 2024 and 2023.
Current wording
The Company reported a net loss of $1,576,274 and $472,761 for the three months ended June 30, 2024 and 2023.
Previous wording
Due to market fluctuations, the Company recorded an unrealized gain on investments of $18,546 for the three months ended March 31, 2023, and a realized gain on investments of $25,965 and $4,828 for the three months ended March 31, 2024 and 2023, respectively. Additionally, as a result of the fraudulent digital current transactions noted above, during the three months ended March 31, 2024, the Company recorded an impairment loss of $3,248,911 related to its digital assets.
Current wording
Due to market fluctuations, the Company recorded an unrealized gain on investments of $37,602 for the six months ended June 30, 2023. In addition, the Company recorded a realized gain on investments of $25,965 and $13,807, respectively for the six months ended June 30, 2024 and 2023.
Previous wording
The net cash used in operating activities for the three months ended March 31, 2024, was $1,076,864 resulting primarily from the net loss and operating changes in accounts receivable, inventories, prepaid expenses, accounts payable and accrued expenses customer deposits and operating lease liability.
Current wording
The net cash used in operating activities for the six months ended June 30, 2024, was $ 2,396,466 resulting primarily from the net loss and operating changes in accounts receivable, inventories, prepaid expenses, accounts payable and accrued expenses, customer deposits and operating lease obligations.
Previous wording
The net cash used in operating activities for the three months ended March 31, 2023, was $652,506 resulting primarily from the net loss and operating changes in accounts receivable, prepaid expenses, operating lease liability, and customer deposits.
Current wording
The net cash used in operating activities for the six months ended June 30, 2023, was $1,256,886 resulting primarily from the net loss and operating changes in accounts receivable, inventories, prepaid expenses, accounts payable and accrued expenses and operating lease obligations.
Previous wording
The net cash used in investing activities for the three months ended March 31, 2024, was $3,250,486 for the purchase of equipment and investment in digital assets.
Current wording
The net cash used in investing activities for the six months ended June 30, 2024, was $3,262,591 for the purchase of equipment and investment in digital assets.
Previous wording
The net cash used in investing activities for the three months ended March 31, 2023, was $2,807,591, of which $51,669 related to the purchase of equipment and $2,755,922 for the purchase of marketable securities.
Current wording
The net cash used in investing activities for the six months ended June 30, 2023, was $3,547,692 of which $776,507 related to the purchase of equipment and $2,771,185 for the net purchases of marketable securities.
Previous wording
The net cash used in financing activities for the three months ended March 31, 2024, was $21,769, resulting primarily from the repayments of notes payable and financing lease liabilities.
Current wording
The net cash used in financing activities for the six months ended June 30, 2024, was $52,752, resulting primarily from the repayments of notes payable and financing lease liabilities.
Previous wording
The net cash used in financing activities for the three months ended March 31, 2023, was $2,234,759, resulting primarily from the repayments of notes payable, financing lease liabilities, and the revenue earnout.
Current wording
The net cash used in financing activities for the six months ended June 30, 2023, was $2,286,500, resulting primarily from the repayments of notes payable, financing lease liabilities, and the revenue earnout.
Previous wording
As of March 31, 2024, we had cash and cash equivalents of $2,376,894, working capital of $11,287,779, and an accumulated deficit of $14,424,884.
Current wording
As of June 30, 2024, we had cash and cash equivalents of $1,014,204, working capital of $9,995,731, and an accumulated deficit of $16,001,158.
Previous wording
We intend to continue to finance our internal growth with cash on hand, cash provided from operations, borrowings, debt or equity offerings, or some combination thereof. We believe that our cash to be provided from operations, cash on hand, and our current working capital, will be sufficient to fund our operations for the next twelve months.
Current wording
We intend to continue to finance our internal growth with cash on hand, cash provided from operations, borrowings, debt or equity offerings, or some combination thereof. We believe that our cash to be provided from operations, cash on hand and current working capital, will be sufficient to fund our operations for the next twelve months.
Previous wording
The discussion and analysis of our financial condition and results of operations is based upon financial statements which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets and liabilities. On an on-going basis, we evaluate our estimates, including the allowance for doubtful accounts, the salability and recoverability of inventory, income taxes and contingencies. We base our estimates on historical experience and on other assumptions that we believe to be reasonable under the circumstances, the results of which form our basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. The Company believes there have been no significant changes during the three month period ended March 31, 2024, to the items disclosed as critical accounting policies in management’s discussion and analysis in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
Current wording
The discussion and analysis of our financial condition and results of operations is based upon financial statements which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets and liabilities. On an on-going basis, we evaluate our estimates, including the allowance for doubtful accounts, the salability and recoverability of inventory, income taxes and contingencies. We base our estimates on historical experience and on other assumptions that we believe to be reasonable under the circumstances, the results of which form our basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. The Company believes there have been no significant changes during the six-month period ended June 30, 2024, to the items disclosed as critical accounting policies in management’s discussion and analysis in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
Due to market fluctuations, the Company recorded an unrealized gain on investments of $19,056 and a realized gain on investments of $8,979 for the three months ended June 30, 2023.
Current report — wording carried from elsewhere
Cost of Goods Sold and Gross Profit
Current report — wording carried from elsewhere
Research and development expenditures are charged to operations as incurred. The major components of research and development costs include consultants, outside service, and supplies.
Current report — wording carried from elsewhere
As a result of the fraudulent digital currency transactions noted above, during the six months ended June 30, 2024, the Company recorded an impairment loss of $3,248,911 related to digital assets.