Business Context and Reporting Period
TSS, Inc. filed a Form 8-K on November 14, 2018, to report financial results for the three and nine months ended September 30, 2018. The filing references a press release (Exhibit 99.1) containing these results and notes that the company is not an emerging growth company.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. These metrics are contained within the referenced press release (Exhibit 99.1), which is not included in the provided text. The filing confirms the use of non-GAAP financial measures with reconciliations to GAAP measures provided in the press release.
Material Changes
The filing does not detail specific material changes versus prior periods. It only indicates that results for the three and nine months ended September 30, 2018, were reported in the accompanying press release.
Guidance, Outlook, and Risks
The filing includes a comprehensive list of forward-looking statements and associated risks. Key concerns include:
- Going Concern: Independent auditors have expressed substantial doubt about the Company's ability to continue as a going concern based on 2016 and 2017 financial statements.
- Liquidity: The Company may lack sufficient resources to fund operations and may need to issue debt or equity.
- Customer Concentration: Reliance on a limited number of customers for a significant portion of revenues.
- Operational Risks: Risks include competitive industry pressures, failure to maintain internal controls, rapid technological changes, complex project management, and potential short-notice contract cancellations.
- Debt Obligations: Uncertainty regarding the ability to meet all terms and conditions of debt obligations.
A conference call to discuss results was scheduled for November 14, 2018, at 4:30 p.m. Eastern Time.
Investor Verification Checklist
- Review the attached press release (Exhibit 99.1) for specific revenue, earnings, and cash flow figures.
- Verify the reconciliation of non-GAAP measures to GAAP measures provided in the press release.
- Assess the current status of the "going concern" warning issued by auditors for 2016 and 2017.
- Confirm the Company's current liquidity position and any recent debt or equity financing activities.
- Monitor the status of major customer contracts given the risk of short-notice cancellations.