CVD EQUIPMENT CORP
For the period ended Sep 30, 2026. Filed Nov 5, 2026.
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.
Sep 30, 2026 · Filed Nov 5, 2026
CVV$3.97+10.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-12.
0001493152-26-037328
Item 2. – Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-05.
0001493152-26-050264
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 85 previous paragraphs and 89 current paragraphs.
42 unchanged; 30 reworded; 16 added; 12 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 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 (16)
Current report
In September 2026, following an evaluation of strategic alternatives for the Company’s CVD equipment business, the Board of Directors approved a restructuring plan designed to reduce operating costs, preserve liquidity and align our cost structure with current market conditions.
Current report
As part of the restructuring plan, we discontinued the pursuit of new system orders for our CVD equipment business and reduced our workforce. The remaining workforce is focused primarily on completing our existing equipment backlog, satisfying warranty obligations, and supporting our ongoing spare parts, quartz and services business.
Current report
During the three months ended September 30, 2026, we recorded restructuring charges of approximately $0.8 million, consisting of approximately $0.4 million of severance costs, $0.1 million of legal and board fees and $0.2 million of impairment charges associated with certain fixed assets. The impairment charges resulted from our decision to discontinue the pursuit of new equipment system orders and the resulting reduction in the expected future use of certain assets associated with the equipment business.
Current report
We expect to substantially complete the workforce reduction and related restructuring activities during the fourth quarter of 2026. We may incur additional costs as we complete the restructuring and continue to evaluate opportunities to further reduce operating costs and monetize assets.
Current report
In connection with the restructuring, on September 3, 2026, our Board of Directors and Mr. Emmanuel Lakios mutually agreed that Mr. Lakios would conclude his employment as President and Chief Executive Officer and would no longer serve as a member of our Board of Directors. The Board appointed Warren Cheesman, formerly our Vice President of Manufacturing Operations, as Acting Chief Executive Officer effective September 3, 2026.
Current report
The Board continues to evaluate strategic alternatives intended to enhance shareholder value, including potential opportunities to monetize our real estate assets and pursue business opportunities consistent with our available financial resources and strategic objectives.
Current report
In October 2026, we engaged CBRE, Inc., a commercial real estate services firm, to market for sale our owned real estate properties located in Central Islip and Saugerties, New York.
Current report
There can be no assurance that the marketing process will result in the sale of either property on terms acceptable to us or at all, and we can make no assurances regarding the timing, terms, net proceeds or completion of any potential transaction.
Current report
The decrease in revenue versus the prior year period was primarily attributable to lower system revenue due to lower bookings being partially offset by an increase in non-system revenues. Revenue for the three months ended September 30, 2025 included $1.0 million recognized under a contract that was modified during the quarter to permit revenue recognition over time. Revenue from four customers represented 23.8%, 17.9%, 12.8% and 12.0% of our revenues.
Current report
Restructuring Charges
Current report
During the three months ended September 30, 2026, we recorded restructuring charges of approximately $0.8 million, consisting of approximately $0.4 million of severance costs, $0.1 million of legal and board fees and $0.2 million of impairment charges associated with certain fixed assets. Severance costs are net of a reduction of $0.1 million of stock-based compensation related to the forfeiture of unvested stock options. The impairment charges resulted from our decision to discontinue the pursuit of new equipment system orders and the resulting reduction in the expected future use of certain assets associated with the equipment business.
Current report
Income from discontinued operations of $0.6 million for the third quarter consists principally of a change in the amount of estimated income tax payable related to the divestiture of SDC.
Current report
Restructuring Charges
Current report
During the nine months ended September 30, 2026, we recorded restructuring charges of approximately $0.8 million, consisting of approximately $0.4 million of severance costs, $0.1 million of legal and board fees and $0.2 million of impairment charges associated with certain fixed assets. Severance costs are net of a reduction of $0.1 million of stock-based compensation related to the forfeiture of unvested stock options. The impairment charges resulted from the Company’s decision to discontinue the pursuit of new equipment system orders and the resulting reduction in the expected future use of certain assets associated with the equipment business.
Current report
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Current report
Not applicable.
Removed paragraphs (12)
Previous report
The transformation strategy also includes the exploration of strategic alternatives for remaining business and product lines, including the potential sale, divestiture or acquisition of assets or business lines.
Previous report
Business Update
Previous report
As of December 31, 2025, we classified certain manufacturing equipment as held for sale with a fair value of $0.5 million based on an agreement we entered into in January 2026 with a third-party to sell the equipment for this amount. We received the proceeds from the sale in the first quarter of 2026 and also sold additional equipment for $46,000 that was no longer necessary for our business.
Previous report
Our core strategy remains focused on serving key markets related to aerospace, microelectronics/power electronics and industrial applications.
Previous report
With respect to aerospace, our systems are being used by our customers to produce ceramic matrix composite materials (“CMCs”) that will be used in next generation gas turbine jet engines with the objective of reducing jet fuel consumption and to produce specialty coatings for advanced high temperature environments.
Previous report
In October 2025, we sold two PVT150™ units to Stony Brook University (SBU) for their new semiconductor research center - onsemi Silicon Carbide Crystal Growth Center. The recently launched research center will enable SBU faculty, scientists, and students to conduct research on silicon carbide crystal growth and other wide band gap (WBG) materials and device-enabling technologies critical to improving energy efficiency in power semiconductors and foster the next generation of skilled professionals in this field.
Previous report
We have generally gained new customers through our industry reputation, as well as trade show attendance, digital marketing and print advertising. We have increased the number of trade shows and industry conferences we attend.
Previous report
We continue to operate in a challenging and uncertain global economic environment. Recent and potential actions by the U.S. federal administration, including changes in trade policy, export controls, and tariffs on imports from various countries and regions, as well as retaliatory or responsive actions by other governments, may adversely affect our supply chain, costs, demand for our products, receipt of orders and results of operations. In addition, we face ongoing risks related to geopolitical instability, including conflicts and tensions in Europe, the Middle East, and Asia, which may further disrupt global economic conditions and financial markets.
Previous report
Other factors contributing to economic uncertainty include inflationary pressures, elevated interest rates, disruptions in global logistics, labor market challenges, and potential changes in fiscal, tax, or regulatory policies. These conditions may impact customer spending decisions, order rates, project timing, and the availability and cost of materials and components used in our products.
Previous report
While our management continuously evaluates these conditions and has taken, and may take, actions intended to mitigate the potential adverse effects on our business, there can be no assurance that such actions will be successful. We are unable to predict the ultimate impact of these risks and uncertainties on our future results of our operations, financial position, or cash flows.
Previous report
Income from discontinued operations for the second quarter consists solely of the gain on the divestiture of the SDC of $13.9 million, net of income tax expense of $0.7 million. We incurred $0.4 million of transaction costs in the first quarter of 2026 resulting in a total net gain of $13.5 million on the divestiture of SDC.
Previous report
Not meaningful
Reworded paragraphs (30)
Previous wording
Other factors and assumptions not identified above were also involved in the derivation of these forward-looking statements and the failure of such assumptions to be realized as well as other factors may also cause actual results to differ materially from those projected. We assume no obligation to update these forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors affecting such forward-looking statements. Past performance is no guaranty of future results.
Current wording
Other factors and assumptions not identified above were also involved in the derivation of these forward-looking statements and the failure of such assumptions to be realized as well as other factors may also cause actual results to differ materially from those projected. We assume no obligation to update these forward-looking statements to reflect actual results, changes in assumptions, or changes in other factors affecting such forward-looking statements. Past performance is no guarantee of future results.
Previous wording
On November 6, 2025, our Board of Directors approved a comprehensive strategy to transform our Company in response to the continued fluctuations in our order rates and the recent and continued decline in the bookings of our CVD Equipment division. As part of this strategy, we transitioned our operating model for our CVD Equipment business from vertically integrated fabrication to outsourced fabrication of certain components to reduce our fixed operating costs.
Current wording
In November 2025, our Board of Directors approved a comprehensive strategy to transform our Company in response to the continued fluctuations in our order rates and the recent and continued decline in the bookings of our CVD Equipment division. As part of this strategy, we initially transitioned our operating model for our CVD Equipment business from vertically integrated fabrication to outsourced fabrication of certain components to reduce our fixed operating costs.
Previous wording
On March 23, 2026, we entered into an asset purchase agreement with a third party to sell our SDC business division (“SDC”). The purchase price was approximately $17.4 million in cash, subject to customary purchase price adjustments. The transaction closed on April 1, 2026.
Current wording
On March 23, 2026, we entered into an asset purchase agreement with a third party to sell our SDC business division (“SDC”). The purchase price was approximately $17.4 million in cash, subject to customary purchase price adjustments. The transaction was completed on April 1, 2026.
Previous wording
The net cash proceeds from the sale of SDC we received in April 2026, after payment of transaction costs and employee related liabilities, were $15.7 million. The Company expects to pay approximately $0.7 million in estimated income taxes related to the gain on the sale of SDC in the third quarter of 2026. Following the sale of SDC, the Company has $23.5 million in cash and no long-term debt as of June 30, 2026. We expect to use the proceeds from the transaction to enhance our financial flexibility as we continue to evaluate strategic opportunities for the CVD Equipment business, its product lines, and our facilities and possible acquisition of other product lines or businesses
Current wording
The net cash proceeds from the sale of SDC we received in April 2026, after payment of transaction costs, employee related liabilities and income taxes, were $15.6 million. We expect to use the proceeds from the transaction to enhance our financial flexibility as we continue to evaluate strategic opportunities, and our facilities, and possible acquisition of other product lines or businesses.
Previous wording
We retained ownership of our Saugerties, New York facility following the sale of SDC, which is leased to the acquiring company for an initial term of two years at fair market value.
Current wording
We retained ownership of our Saugerties, New York facility following the sale of SDC, which is leased to the acquiring company for an initial term of two years at fair market value commencing April 1, 2026.
Previous wording
With the sale of our SDC business and the cessation of our MesoScribe business in 2024, we have one reportable segment consisting of our CVD Equipment division that manufactures chemical vapor deposition, physical vapor transport and thermal process equipment used to develop and produce materials and coatings for the aerospace, compound semiconductor, semiconductor, battery energy storage markets as well as advanced industrial applications, and research.
Current wording
With the sale of our SDC business and the cessation of our MesoScribe business in 2024, we have one reportable segment consisting of our CVD Equipment division that manufactured chemical vapor deposition, physical vapor transport and thermal process equipment used to develop and produce materials and coatings for the aerospace, compound semiconductor, semiconductor, battery energy storage markets as well as advanced industrial applications, and research.
Previous wording
During the quarter ended June 30, 2026 (from continuing operations):
Current wording
During the quarter ended September 30, 2026:
Previous wording
Subsequent to quarter-end, the customer that placed the approximately $0.8 million system order filed a prepackaged Chapter 11 bankruptcy proceeding. The customer’s public disclosures indicate that general unsecured trade creditors are expected to be unimpaired under the proposed plan of reorganization; however, there can be no assurance that the customer will proceed with the purchase as originally contemplated or that the bankruptcy process will not adversely affect the order. The Company will be monitoring the proceedings and evaluating the potential impact, if any, on its backlog, financial position, results of operations, and cash flows.
Current wording
During the quarter ended September 30, 2026, a customer that placed a $0.8 million system order in June 2026 filed a prepackaged Chapter 11 bankruptcy proceeding. The customer’s public disclosures indicate that general unsecured trade creditors are expected to be unimpaired under the proposed plan of reorganization; however, there can be no assurance that the customer will proceed with the purchase as originally contemplated or that the bankruptcy process will not adversely affect the order. We will be monitoring the proceedings and evaluating the potential impact, if any, on our backlog, financial position, results of operations, and cash flows.
Previous wording
Our revenue for the three months ended June 30, 2026 was $2.0 million compared to $3.4 million for the three months ended June 30, 2025, a decrease of $1.4 million or 42.6%.
Current wording
Our revenue for the three months ended September 30, 2026 was $1.6 million compared to $5.7 million for the three months ended September 30, 2025, a decrease of $4.1 million or 72.1%.
Previous wording
Our order backlog at June 30, 2026 was approximately $3.9 million as compared to $4.6 million at March 31, 2026. Our order backlog at June 30, 2026 consists of approximately $2.7 million related to remaining performance obligations of contracts in progress and the balance of approximately $1.1 million represents other orders received from customers. As of June 30, 2026, one aerospace customer represented 36.0% of our backlog.
Current wording
Our order backlog at September 30, 2026 was approximately $3.0 million as compared to $3.9 million at June 30, 2026 and $4.7 million at December 31, 2025. Our order backlog at September 30, 2026 consists of approximately $2.2 million related to remaining performance obligations of contracts in progress and the balance of approximately $0.8 million represents other orders received from customers. As of September 30, 2026, one aerospace customer represented 36.3% of our backlog.
Previous wording
Gross profit for the six months ended June 30, 2026 was $0.5 million, with a gross margin of 12.6%, compared to a gross profit of $2.3 million and a gross margin of 23.5% for the six months ended June 30, 2025. The decrease in gross profit of $1.8 million was principally due to lower system revenues.
Current wording
Gross profit for the three months ended September 30, 2026 was $0.1 million, with a gross margin of 9.2%, compared to a gross profit of $1.8 million and a gross margin of 32.0% for the three months ended September 30, 2025. The decrease in gross profit of $1.7 million was principally due to lower system revenues and the resulting impact of fixed manufacturing costs on a reduced revenue base, partially offset by an increase in non-system revenues. The gross profit for the three months ended September 30, 2025 includes $0.6 million related to the revenue recognized as the result of a contract modification.
Previous wording
For the three months ended June 30, 2026, research and development expenses were $0.7 million, or 35.1% of revenue as compared to $0.6 million, or 18.8% of revenue for the three months ended June 30, 2025, an increase of $46,000 or 7.2%. The increase in 2026 was the result of less hours being charged to cost of revenue for contracts in progress partially offset by a reduction in personnel.
Current wording
For the three months ended September 30, 2026, research and development expenses were $0.6 million, or 36.0% of revenue as compared to $0.6 million, or 9.8% of revenue for the three months ended September 30, 2025, an increase of $12,000 or 2.2%. The increase in 2026 resulted from fewer engineering hours being charged to cost of revenue for contracts in progress, partially offset by personnel reductions.
Previous wording
Selling expenses were $0.2 million or 11.9% of the revenue for the three months ended June 30, 2026 as compared to $0.3 million or 8.4% of revenue for the three months ended June 30, 2025, a decrease of $50,000 or 17.7%. The decrease was the result of a reduction in personnel.
Current wording
Selling expenses were $0.2 million or 12.0% of the revenue for the three months ended September 30, 2026 as compared to $0.3 million or 4.8% of revenue for the three months ended September 30, 2025, a decrease of $80,000 or 29.6%. The decrease was the result of a reduction in personnel.
Previous wording
General and administrative expenses for the three months ended June 30, 2026 were $1.0 million or 49.7% of revenue compared to $0.9 million or 27.4% of revenue for the three months ended June 30, 2025, an increase of $40,000 or 4.3%. The increase in 2026 was due principally to higher professional fees.
Current wording
General and administrative expenses for the three months ended September 30, 2026 were $1.0 million or 62.1% of revenue compared to $0.9 million or 16.4% of revenue for the three months ended September 30, 2025, an increase of $35,000 or 3.7%. The increase in 2026 was due principally to higher professional fees partially offset by a reduction in personnel.
Previous wording
Six Months Ended June 30, 2026 versus June 30, 2025
Current wording
Nine Months Ended September 30, 2026 versus September 30, 2025
Previous wording
The following table presents revenue and expense line items reported in our condensed consolidated statements of operations for the six months ended June 30, 2025 and 2024 and the period-over-period dollar and percentage changes for those line items (in thousands, except percentages).
Current wording
The following table presents revenue and expense line items reported in our condensed consolidated statements of operations for the nine months ended September 30, 2026 and 2025 and the period-over-period dollar and percentage changes for those line items (in thousands, except percentages).
Previous wording
Our revenue for the six months ended June 30, 2026 was $3.8 million compared to $9.7 million for the six months ended June 30, 2025, a decrease of $5.9 million or 61.0%. The decrease was partially offset by $0.3 million benefit from a contract modification during the six months ended June 30, 2026.
Current wording
Our revenue for the nine months ended September 30, 2026 was $5.4 million compared to $15.4 million for the nine months ended September 30, 2025, a decrease of $10.0 million or 65.1%. The decrease was partially offset by $0.3 million benefit from a contract modification during the nine months ended September 30, 2026.
Previous wording
The decrease in revenue versus the prior year period was primarily attributable to lower system revenue due to lower bookings being partially offset by an increase in non-system revenues. Revenue from two customers represented 50.9% and 24.3% of our revenues, respectively.
Current wording
The decrease in revenue versus the prior year period was primarily attributable to lower system revenue due to lower bookings being partially offset by an increase in non-system revenues. Revenue from three customers represented 34.8%, 15.3% and 15.0% of our revenues.
Previous wording
Gross profit for the three months ended June 30, 2026 was $0.3 million, with a gross margin of 16.8%, compared to a gross profit of $0.5 million and a gross margin of 14.1% for the three months ended June 30, 2025. The decrease in gross profit of $0.2 million was principally due to lower system revenues partially offset by an increase in non-system revenues.
Current wording
Gross profit for the nine months ended September 30, 2026 was $0.6 million, with a gross margin of 11.5%, compared to a gross profit of $4.1 million and a gross margin of 26.6% for the nine months ended September 30, 2025. The decrease in gross profit of $3.5 million was principally due to lower system revenues and the resulting impact of fixed manufacturing costs on a reduced revenue base, partially offset by an increase in non-system revenues.
Previous wording
For the six months ended June 30, 2026, research and development expenses were $1.4 million, or 37.2% of revenue as compared to $1.4 million, or 14.1% of revenue for the six months ended June 30, 2025, an increase of $40,000 or 2.9%. The increase in 2026 was the result of less hours being charged to cost of revenue for contracts in progress being partially offset by a reduction in personnel.
Current wording
For the nine months ended September 30, 2026, research and development expenses were $2.0 million, or 36.8% of revenue as compared to $1.9 million, or 12.5% of revenue for the nine months ended September 30, 2025, an increase of $51,000 or 2.6%. The increase in 2026 resulted from fewer engineering hours being charged to cost of revenue for contracts in progress, partially offset by personnel reductions.
Previous wording
Selling expenses were $0.5 million or 12.4% of the revenue for the six months ended June 30, 2026 as compared to $0.6 million or 6.7% of revenue for the six months ended June 30, 2025, a decrease of $0.2 million or 27.3%. The decrease was the result of a reduction in personnel.
Current wording
Selling expenses were $0.7 million or 12.3% of the revenue for the nine months ended September 30, 2026 as compared to $0.9 million or 6.0% of revenue for the nine months ended September 30, 2025, a decrease of $0.2 million or 28.0%. The decrease was the result of a reduction in personnel.
Previous wording
General and administrative expenses for the six months ended June 30, 2026 were $2.0 million or 52.4% of revenue compared to $2.0 million or 20.1% of revenue for the six months ended June 30, 2025, an increase of $38,000 or 1.9%. The increase was principally due to higher professional fees.
Current wording
General and administrative expenses for the nine months ended September 30, 2026 were $3.0 million or 55.5% of revenue compared to $2.9 million or 18.8% of revenue for the nine months ended September 30, 2025, an increase of $81,000 or 2.8%. The increase was principally due to higher professional fees.
Previous wording
We continue to evaluate the potential utilization of our deferred tax asset, which has been fully reserved for, on a quarterly basis, by reviewing our economic models, including projections of future operating results.
Current wording
We continue to evaluate the potential utilization of our deferred tax assets, which have been fully reserved for, on a quarterly basis, by reviewing our economic models, including projections of future operating results.
Previous wording
Income from discontinued operations consists of $0.5 million from the operations of SDC during the first quarter of 2026 and the gain on the sale of the divestiture of SDC of $13.5 million. The gain is net of related income tax expense of $0.7 million.
Current wording
Income from discontinued operations consists of $0.5 million from the operations of SDC during the first quarter of 2026 and the gain on the divestiture of SDC of $14.1 million. The gain is net of related income tax expense of $0.1 million.
Previous wording
As of June 30, 2026, aggregate working capital was $25.8 million as compared to aggregate working capital of $14.1 million at December 31, 2025. Cash and cash equivalents at June 30, 2026 and December 31, 2025 were $23.5 million and $8.7 million, respectively.
Current wording
As of September 30, 2026, aggregate working capital was $23.9 million as compared to aggregate working capital of $14.1 million at December 31, 2025. Cash and cash equivalents at September 30, 2026 and December 31, 2025 were $23.5 million and $8.7 million, respectively.
Previous wording
Net cash used in operating activities for the six months ended June 30, 2026 was $1.3 million. This use of net cash was principally due to the net loss from continuing operations of $3.1 million, a $0.9 million increase in accounts receivable and a $0.3 million reduction in accounts payable. These decreases were partially offset by non-cash expense items of $0.7 million, decrease in contract assets of $1.7 million, and a decrease in inventory of $0.4 million.
Current wording
Net cash used in operating activities for the nine months ended September 30, 2026 was $1.2 million. This use of net cash was principally due to the net loss from continuing operations of $5.2 million, a $0.2 million reduction in accounts payable and a $0.2 million reduction in contract liabilities. These decreases were partially offset by non-cash expense items of $1.1 million, decrease in accounts receivable of $0.6 million, decrease in contract assets of $1.4 million and a decrease in inventory of $0.5 million.
Previous wording
Net cash provided by investing activities for the six months ended June 30, 2026 principally consisted of net proceeds from the divestiture of SDC of $15.6 million and proceeds from the sale of assets held for sale and equipment of $0.6 million. The Company expects to pay approximately $0.7 million in estimated income taxes related to the gain on the sale of SDC in the third quarter of 2026.
Current wording
Net cash provided by investing activities for the nine months ended September 30, 2026 principally consisted of net proceeds from the divestiture of SDC of $15.6 million and proceeds from the sale of assets held for sale and equipment of $0.6 million.
Previous wording
Net cash used in financing activities for the six months ended June 30, 2026 consisted of the full repayment of an equipment loan in the amount of $181,000. As of June 30, 2026, we have no outstanding debt.
Current wording
Net cash used in financing activities for the nine months ended September 30, 2026 consisted of the full repayment of an equipment loan in the amount of $0.2 million. As of September 30, 2026, we have no outstanding debt.
Previous wording
We believe that our cash and cash equivalent positions and our projected cash flow from operations will be sufficient to meet our working capital and capital expenditure requirements for the next twelve months from the filing of these financial condensed consolidated financial statements included in this Form 10-Q. We will continue to assess our operations and take actions anticipated to maintain our operating cash to support the working capital needs.
Current wording
We believe that our cash and cash equivalent positions and our projected cash flow from operations will be sufficient to meet our working capital and capital expenditure requirements for the next twelve months from the filing of these condensed consolidated financial statements included in this Form 10-Q. We will continue to assess our operations and take actions anticipated to maintain our operating cash to support the working capital needs.
Previous wording
Long-lived assets consist primarily of property, plant and equipment. Long-lived assets are reviewed for impairment whenever events or circumstances indicate their carrying value may not be recoverable. When such events or circumstances arise, an estimate of the future undiscounted cash flows produced by the asset, or the appropriate grouping of assets, is compared to the asset’s carrying value to determine if impairment exists pursuant to the requirements of ASC 360-10-35, “Impairment or Disposal of Long-Lived Assets.” If the asset is determined to be impaired, the impairment loss is measured on the excess of it carrying value over its fair value. Assets to be disposed of are reported at the lower of their carrying value or net realizable value. Assets to be disposed of are reported at the lower of their carrying value or net realizable value. It is not possible for us to predict the likelihood of any possible future impairments or, if such an impairment were to occur, the magnitude of any impairment.
Current wording
Long-lived assets consist primarily of property, plant and equipment. Long-lived assets are reviewed for impairment whenever events or circumstances indicate their carrying value may not be recoverable. When such events or circumstances arise, an estimate of the future undiscounted cash flows produced by the asset, or the appropriate grouping of assets, is compared to the asset’s carrying value to determine if impairment exists pursuant to the requirements of ASC 360-10-35, “Impairment or Disposal of Long-Lived Assets.” If the asset is determined to be impaired, the impairment loss is measured on the excess of its carrying value over its fair value. Assets to be disposed of are reported at the lower of their carrying value or net realizable value. It is not possible for us to predict the likelihood of any possible future impairments or, if such an impairment were to occur, the magnitude of any impairment.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
The decrease in revenue versus the prior year period was primarily attributable to lower system revenue due to lower bookings. Revenue from three customers represented 39.4%, 20.9% and 14.3% of our revenues, respectively.