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 September 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: 1-16525

CVD EQUIPMENT CORPORATION

(Name of Registrant in Its Charter)

New York

11-2621692

State or Other Jurisdiction of

Incorporation or Organization)

(I.R.S. Employer

Identification No.)

355 South Technology Drive Central Islip, New York 11722

(Address of principal executive offices)

(631) 981-7081

(Registrant’s Telephone Number, Including Area Code)

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

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock		CVV		NASDAQ Capital Market

Indicate by check 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 (Section 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 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 ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 6,881,838 shares of Common Stock, $0.01 par value at November 13, 2024.

CVD EQUIPMENT CORPORATION AND SUBSIDIARIES

Index

Part I - Financial Information

	Item 1 –	Condensed Consolidated Financial Statements (Unaudited)	3

		Condensed Consolidated Balance Sheets at September 30, 2024 and December 31, 2023	3

		Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2024 and 2023	4

		Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three and nine months ended September 30, 2024 and 2023	5

		Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2024 and 2023	6

		Notes to Condensed Consolidated Financial Statements	7

	Item 2 –	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
	Item 3 –	Quantitative and Qualitative Disclosures About Market Risk	33
	Item 4 –	Controls and Procedures	33

Part II - Other Information

	Item 1 –	Legal Proceedings	34
	Item 1A -	Risk Factors	34
	Item 2 –	Unregistered Sales of Equity Securities and Use of Proceeds	34
	Item 3 –	Defaults Upon Senior Securities	34
	Item 4 –	Mine Safety Disclosures	34
	Item 5 –	Other Information	34
	Item 6 –	Exhibits	35

Signatures			36

PART 1 – FINANCIAL INFORMATION

Item 1 – Financial Statements

CVD EQUIPMENT CORPORATION AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(in thousands, except share amounts)

(Unaudited)

	September 30, 2024			December 31, 2023
ASSETS
Current assets
Cash and cash equivalents	$	10,005		$	14,025
Accounts receivable, net of allowance for credit losses		5,124			1,906
Contract assets		1,348			1,604
Inventories		2,558			4,454
Other current assets		892			852
Total current assets		19,927			22,841

Property, plant and equipment, net		11,909			12,166
Other assets		10			18
Total assets	$	31,846		$	35,025

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	1,393		$	1,203
Accrued expenses		1,903			1,765
Current maturities of long-term debt		85			81
Contract liabilities		3,288			4,908
Deposit from purchaser of MesoScribe assets-Note 11		-			597
Total current liabilities		6,669			8,554

Long-term debt, net of current portion		203			268

Total liabilities		6,872			8,822

Stockholders’ equity:
Common stock - $0.01 par value – 20,000,000 shares authorized; issued and outstanding 6,881,838 at September 30, 2024 and 6,824,511 at December 31, 2023		69			68
Additional paid-in capital		29,495			28,695
Accumulated deficit		(4,590	)		(2,560	)
Total stockholders’ equity		24,974			26,203

Total liabilities and stockholders’ equity	$	31,846		$	35,025

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

CVD EQUIPMENT CORPORATION AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(in thousands, except per share and share amounts)

(Unaudited)

	2024			2023			2024			2023
	Three months ended						Nine months ended
	September 30,						September 30,
	2024			2023			2024			2023

Revenue	$	8,194		$	6,234		$	19,462		$	19,998
Cost of revenue		6,359			4,636			15,158			14,579

Gross profit		1,835			1,598			4,304			5,419

Operating expenses
Research and development		644			704			2,055			1,865
Selling		423			434			1,268			1,281
General and administrative		1,316			1,450			4,057			4,410
Gain on sale of equipment-Note 11		(625	)		-			(625	)		-
Loss on disposition of Tantaline		-			-			-			162
Impairment charge		-			-			-			111

Total operating expenses, net		1,758			2,588			6,755			7,829

Operating income (loss)		77			(990	)		(2,451	)		(2,410	)

Other income (expense):
Interest income		136

SEC Form 10-Q filed by CVD Equipment Corporation