ulbi20240630

ulbi20240630_10q.htm

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 30, 2024

☐	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: 0-20852

ULTRALIFE CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of incorporation of organization)

2000 Technology Parkway Newark, New York 14513

(Address of principal executive offices) (Zip Code)

16-1387013

(I.R.S. Employer Identification No.)

(315) 332-7100

(Registrant’s telephone number, including area code)

None

(Former name, former address and former fiscal year, if changed since last report)

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

Common Stock, $0.10 par value per share	ULBI	NASDAQ
(Title of each class)	(Trading Symbol)	(Name of each exchange on which registered)

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☒

As of July 22, 2024, the registrant had 16,623,347 shares of common stock outstanding.

ULTRALIFE CORPORATION AND SUBSIDIARIES

INDEX

		Page
PART I.	FINANCIAL INFORMATION

Item 1.	Consolidated Financial Statements (unaudited):

	Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023	1

	Consolidated Statements of Income and Comprehensive Income for the Three and Six-Month Periods Ended June 30, 2024 and June 30, 2023	2

	Consolidated Statements of Cash Flows for the Six-Month Periods Ended June 30, 2024 and June 30, 2023	3

	Consolidated Statements of Changes in Stockholders’ Equity for the Three and Six-Month Periods Ended June 30, 2024 and June 30, 2023	4

	Notes to Consolidated Financial Statements (unaudited)	5

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17

Item 4.	Controls and Procedures	26

PART II.	OTHER INFORMATION

Item 6.	Exhibits	27

	Signatures	28

PART I. FINANCIAL INFORMATION

Item 1. CONSOLIDATED FINANCIAL STATEMENTS

ULTRALIFE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Thousands except share amounts)

(Unaudited)

	June 30, 2024			December 31, 2023
ASSETS
Current assets:
Cash	$	6,690		$	10,278
Trade accounts receivable, net of allowance for expected credit losses of $296 and $300, respectively		31,055			31,761
Inventories, net		41,392			42,215
Prepaid expenses and other current assets		4,650			5,949
Total current assets		83,787			90,203
Property, plant and equipment, net		20,281			21,117
Goodwill		37,510			37,571
Other intangible assets, net		14,646			15,107
Deferred income taxes, net		9,088			10,567
Other noncurrent assets		4,505			3,711
Total assets	$	169,817		$	178,276
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	9,691		$	11,336
Current portion of long-term debt		2,000			2,000
Accrued compensation and related benefits		2,312			3,115
Accrued expenses and other current liabilities		6,570			7,279
Total current liabilities		20,573			23,730
Long-term debt, net		9,978			23,624
Deferred income taxes		1,642			1,714
Other noncurrent liabilities		4,279			3,781
Total liabilities		36,472			52,849

Commitments and contingencies (Note 8)

Stockholders’ equity:
Preferred stock – par value $.10 per share; authorized 1,000,000 shares; none issued		-			-
Common stock – par value $.10 per share; authorized 40,000,000 shares; issued – 21,059,461 shares at June 30, 2024 and 20,783,607 shares at December 31, 2023; outstanding – 16,623,347 shares at June 30, 2024 and 16,347,493 shares at December 31, 2023		2,106			2,078
Capital in excess of par value		191,388			189,160
Accumulated deficit		(34,894	)		(40,754	)
Accumulated other comprehensive loss		(3,895	)		(3,660	)
Treasury stock - at cost; 4,436,114 shares at June 30, 2024 and 4,436,114 shares at December 31, 2023		(21,492	)		(21,492	)
Total Ultralife Corporation equity		133,213			125,332
Non-controlling interest		132			95
Total stockholders’ equity		133,345			125,427

Total liabilities and stockholders’ equity	$	169,817		$	178,276

The accompanying notes are an integral part of these consolidated financial statements.

ULTRALIFE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(In thousands except per share amounts)

(Unaudited)

	Three-month period ended						Six-month period ended
	June 30, 2024			June 30, 2023			June 30, 2024			June 30, 2023

Revenues	$	42,983		$	42,692		$	84,910		$	74,608
Cost of products sold		31,420			32,104			61,877			56,584
Gross profit		11,563			10,588			23,033			18,024

Operating expenses:
Research and development		1,997			1,778			3,753			3,810
Selling, general and administrative		5,649			5,145			11,300			10,523
Total operating expenses		7,646			6,923			15,053			14,333

Operating income		3,917			3,665			7,980			3,691

Other (expense) income:
Interest and financing expense		(418	)		(440	)		(938	)		(864	)
Miscellaneous income		347			1,498			411			1,428
Total other (expense) income		(71	)		1,058			(527	)		564

Income before income taxes		3,846			4,723			7,453			4,255
Income tax provision		853			1,375			1,556			1,242

Net income		2,993			3,348			5,897			3,013

Net income attributable to non-controlling interest		24			8			37			19

Net income attributable to Ultralife Corporation		2,969			3,340			5,860			2,994

Other comprehensive loss:
Foreign currency translation adjustments		(3	)		(293	)		(235	)		(96	)

Comprehensive income attributable to Ultralife Corporation	$

SEC Form 10-Q filed by Ultralife Corporation