CDTi ADVANCED MATERIALS, INC.

(Exact name of registrant as specified in its charter)

Delaware

06-1393453

State or other jurisdiction of

(I.R.S. Employer

incorporation or organization

Identification No.)

1641 Fiske Place

Oxnard, CA 93033

(Address of principal executive offices) (Zip Code)

1

CDTi ADVANCED MATERIALS, INC.

Index to Financial Statements

Audited Consolidated Financial Statements

Reports of Independent Registered Public Accounting Firm

2

Consolidated Balance Sheets as of December 31, 2022 and 2021

3

Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2022 and 2021

4

Consolidated Statements of Stockholders' Equity for the years ended December 31, 2022 and 2021

5

Consolidated Statements of Cash Flows for the years ended December 31, 2022 and 2021

6

Notes to Consolidated Financial Statements

7

1

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of

CDTi Advanced Materials, Inc.

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheet of CDTi Advanced Materials, Inc. (the Company) as of December 31, 2022 and 2021, and the related consolidated statements of comprehensive income (loss), stockholders' equity, and cash flows for the years ended December 31, 2022 and 2021, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2022 and 2021, and the results of its operations and its cash flows for the years ended December 31, 2022 and 2021, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) "PCAOB" and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB and in accordance with auditing standards generally accepted un the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audit included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audit provides a reasonable basis for our opinion.

Critical Audit Matters

Critical audit matters are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined that there are no critical audit matters.

Rose, Snyder & Jacobs LLP

Encino, California

We have served as the Company's auditor since 2017

April 28, 2023

-2-

CDTi ADVANCED MATERIALS, INC.

Consolidated Balance Sheets

(in thousands, except share and per share amounts)

December 31,

2022

2021

ASSETS

Current assets:

Cash

$

1,304

$

$1,460

Accounts receivable, net of allowance for doubtful accounts of $70

1,344

1,221

Inventories

1,040

909

Prepaid expenses and other current assets

63

346

Total current assets

3,751

3,936

Property and equipment, net

204

206

Intangible assets, net

261

404

Right-of-use assets, operating lease

757

-

Other assets

104

120

Total assets

$

5,077

$

$4,666

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$

474

$

682

Accrued expenses and other current liabilities

850

1,083

Operating lease liability, current

168

-

Liability for income taxes

898

861

Total current liabilities

2,390

2,626

Operating lease liability, net of current portion

595

-

Total liabilities

2,985

2,626

Commitments and contingencies (Note 12)

Stockholders' equity:

Preferred stock, par value $0.01 per share: authorized 100,000; no shares issued and

-

-

outstanding

Common stock, par value $0.01 per share: 50,000,000 shares authorized, 4,501,301 issued

and outstanding at December 31, 2022 and 2021

45

45

Additional paid-in capital

241,852

241,834

Accumulated other comprehensive loss

(6,158)

(6,077)

Accumulated deficit

(233,647)

(233,762)

Total stockholders' equity

2,092

2,040

Total liabilities and stockholders' equity

$

5,077

$

$4,666

See accompanying notes to the consolidated financial statements.

3

CDTi ADVANCED MATERIALS, INC.

Consolidated Statements of Comprehensive Income (Loss)

(in thousands)

Years Ended December 31,

2022

2021

Revenues

$

9,744

$

6,371

Cost of revenues

6,600

4,394

Gross profit

3,144

1,977

Operating expenses:

Research and development

776

791

Selling, general and administrative

2,175

2,264

Total operating expenses

2,951

3,055

Operating income/(loss)

193

(1,078)

Other income/(loss), net

(60)

771

Income/(loss) before income tax

133

(307)

Provision for income taxes

(18)

(82)

Net income/(loss)

115

(389)

Foreign currency translation adjustments

(81)

(60)

Comprehensive income/(loss)

$

34

$

(449)

See accompanying notes to the consolidated financial statements.

4

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

CDTi Advanced Materials Inc. published this content on 01 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 May 2023 12:06:18 UTC.