Business Context and Reporting Period
TSS, Inc. filed a Form 8-K on March 30, 2016, to report financial results for the three and twelve months ended December 31, 2015. The filing references a press release (Exhibit 99.1) containing these results and notes that the company will hold a conference call on the same date to discuss the performance.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. It states that the press release contains non-GAAP financial measures with reconciliations to GAAP measures, but the specific figures are not included in this 8-K document.
Material Changes
The filing does not detail specific material changes in financial metrics versus the prior comparable period. It directs investors to the attached press release for the detailed results of operations and financial condition.
Guidance, Outlook, Risks, and Contingencies
The filing includes significant forward-looking statements and risk disclosures. Key risks and uncertainties identified include:
- Going Concern Doubt: The company's independent registered public accounting firm's reports for 2014 and 2015 contain an explanatory paragraph expressing substantial doubt about the company's ability to continue as a going concern.
- Liquidity and Capital Access: Risks regarding the inability to maintain availability under the revolving credit facility or access capital markets to replace it.
- Funding Needs: The company may lack sufficient resources to fund its business and may need to issue debt or equity.
- Customer Concentration: Reliance on a significant portion of revenues from a limited number of customers.
- Operational Risks: Risks related to competitive industry dynamics, internal controls over financial reporting, technological changes, complex project management, and potential short-notice contract cancellations.
Investor Verification Checklist
- Verify the specific revenue and net income figures for the three and twelve months ended December 31, 2015, in the attached press release (Exhibit 99.1).
- Confirm the details of the "substantial doubt" regarding the going concern status expressed by the auditors in the 2014 and 2015 financial statements.
- Review the company's current status regarding its revolving credit facility and any recent efforts to secure additional debt or equity funding.
- Examine the concentration of revenue among the company's top customers to assess dependency risks.
- Check the reconciliation of non-GAAP measures to GAAP measures provided in the press release to understand adjustments made to reported earnings.