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| | Business Summary: Deep Down, Inc. provides oilfield services to the offshore exploration and production industry worldwide. | | | Address
15473 East Freeway
Channelview
, TX 77530
Phone: 281-862-2201
Fax: 281-862-2522
Website: http://www.deepdowninc.com
| | Auditor |
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Malone & Bailey, PC
Houston | | Transfer Agent |
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Cottonwood Stock Transfer Corp.
| | ShareHolders: 1060 | Founded: 1975
Domicile: Nevada | | | |
| | Deep Down, Inc. provides oilfield services to the offshore exploration and production industry worldwide. The company offers various project engineering and management services, including the design, installation, and retrieval of subsea equipment and systems; connection and termination operations; well-commissioning services; and construction support and remote operated vehicles (ROV) operations support. It provides offshore project management, installation support and management, spooling services, pull-in operations, terminations, testing services, system integration testing, commissioning, and storage management services; and marine technical support services, including ROV tooling services and offshore construction equipment rental. In addition, the company offers installation support equipment, and component parts and assemblies for subsea distribution systems, including flying leads, umbilical hardware, bend limiters, compliant splices, installation aids, and buoyancy products; and SeaStax for offshore storage and space management on offshore installation vessels, drilling rigs, and production platforms. Further, it designs, manufactures, installs, and commissions integrated programmable logic controller, and supervisory control and data acquisition based instrumentation and control systems, including ballast control and monitoring, drilling instrumentation, vessel management systems, marine advisory systems, machinery plant control and monitoring systems, and closed circuit television systems. The company sells its products directly to oil and gas companies, subsea equipment manufacturers, and subsea equipment installation contractors involved in offshore exploration, development, and production; and offshore drilling contractors, engineering and construction companies, military, and other companies involved in maritime operations. Deep Down was founded in 1997 and is headquartered in Houston, Texas. | | History: INCORPORATED in Nevada Apr. 4, 2006 as MediQuip Holdings, Inc., and on Apr. 11, 2006, merged True Health, Inc., a Utah concern, through an exchange of Common on a one-for-one basis. Name changed to Deep Down, Inc. Dec. 4, 2006.
True Health, Inc. was incorporated in Utah Aug. 27, 1975 as Protech Investments Corp.; name changed to Petroleum Reserves Corp. Apr. 20, 1981, to Borexco Corp. Jan. 22, 1985, and to True Health, Inc. Feb. 21, 1986.
December 14, 2006, issued 75,000,000 Common and 14,000 Preferred shares to acquire Deep Down Inc., a Delaware concern. Deep Down Inc. was incorporated on Apr. 17, 1997, and acquired by Subsea Acquisition Corp. (a Texas concern incorporated on June 29, 2006) on Nov. 21, 2006. Subsea then merged into Deep Down (Delaware).
April 2, 2007, acquired the assets and certain liabilities of ElectroWave USA, Inc. in exchange for $171,407 cash. Pursuant to the acquisition agreement, the company could issue up to 460 shares of Convertible Preferred over a three-year period as an additional contingent purchase cost. | | | | Subsidiaries: |
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ElectroWave USA, Inc.
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Management
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| Officers | Position |
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| Eugene L. Butler | Chairman | | Ronald E. Smith | President & Chief Executive Officer | | Gay Stanley Mayeux | Chief Financial Officer | | Bradley M. Parro | Chief Operating Officer | | Ronald W. Nance | Exec VP | | Mary L. Budrunas | Secretary | | Michael D. Teal | Controller | | Steven Haag | Investor Relations Contact |
| | Directors |
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| Mary L. Budrunas | | Eugene L. Butler | | Mark R. Hollinger | | Ronald E. Smith | | | |
| | | | Capitalization as of 12/31/2009: | | | | | Authorized Shares | Outstanding Shares |
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| Series Preferred $0.001 par | 10,000,000 | None | | Common $0.001 par | 490,000,000 | 180,451,000 |
| | | | LONG TERM DEBT: $5,379,000. | | | | Common $0.001 par | | | | COMMON PLACED PRIVATELY: March 20, 2007, the company sold 10,000,000 common shares privately for $1,000,000. Proceeds from the sale were to be used to redeem certain outstanding exchangeable preferred stock, and for working capital. | | | |
Stockholders:
03/31/2010,
1060.
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Transfer Agent: Cottonwood Stock Transfer Corp.
Salt Lake City
, UT | | | | OTC Bulletin Board( Primary): DPDW | | | | Exchange | Year | High | Low |
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| OTC Bulletin Board | 2009 | 0.2800 | 0.0800 | | OTC Bulletin Board | 2008 | 1.2700 | 0.1100 | | OTC Bulletin Board | 2007 | 2.3500 | 0.1600 | | OTC Bulletin Board | 2006 | 1.9000 | 0.0400 |
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| | | | DIVIDENDS: Common $0.001 par: None. | | | | | |
| | Annual Report |
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| | | Income Statement | |
| 2009 | 2008 |
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| REVENUES |
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| | Revenues | 29,449 | 35,770 | | EXPENSES |
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| | Cost of Sales | (19,888) | (21,686) | | Selling, General and Administrative | (14,371) | (14,295) | | Depreciation and Amortization | (6,538) | (1,285) | | Goodwill Impairments | (5,537) | - | | Interest Expense | (366) | (3,511) | | Interest Income | 10 | 110 | | Loss on Debt Extinguishment | - | (446) | | Other Income/expense | 73 | (22) | | Earnings before Taxes | (17,168) | (5,365) | | TAXES AND OTHER EXPENSES |
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| | Provision for Income Tax | 1,026 | 1,042 | | Net Income (Loss) | (16,142) | (4,323) | | SUPPLEMENTARY INFO |
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| | Gross Profit/loss | 9,561.00 | 14,084.00 | | Operating Income (Loss) | (16,885.00) | (1,496.00) | | Basic EPS - Continuing Operations | (0.09) | (0.03) |
| | | | Balance Sheet | |
| 2009 | 2008 |
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| CURRENT ASSETS |
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| | Cash and Cash Equivalents | 912 | 2,495 | | Accounts Receivables | 7,662 | 10,772 | | Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts | 267 | 708 | | Inventory | 896 | 1,362 | | Deferred Tax Assets | - | 217 | | Prepaid Expenses and Other Current Assets | 225 | 634 | | Restricted Cash | - | 136 | | Total Current Assets | 9,962 | 16,324 | | NON CURRENT ASSETS |
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| | Property, Plant and Equipment, Net | 20,011 | 13,799 | | Goodwill | 9,429 | 15,024 | | Intangibles, Net | 12,166 | 18,091 | | Other Assets | 1,136 | 458 | | Total Assets | 52,704 | 63,696 | | CURRENT LIABILITIES |
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| | Accounts Payable and Accrued Liabilities | 2,865 | 4,319 | | Current Portion of Long-term Debt | 1,497 | 383 | | Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts | 4,434 | 2,315 | | Total Current Liabilities | 8,796 | 7,017 | | NON CURRENT LIABILITIES |
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| | Long-term Debt Net | 5,379 | 1,718 | | Deferred Tax Liabilities | - | 1,126 | | SHAREHOLDERS' EQUITY |
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| | Common Stock - Par Value | 180 | 177 | | Additional Paid in Capital | 61,161 | 60,328 | | Retained Earnings | (22,812) | (6,670) | | Total Shareholders Equity | 38,529 | 53,835 | | Total Liabilities & Shareholders Equity | 52,704 | 63,696 |
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| | Interim Report
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| | | Data Not Available | | | | | | | | | |
| | Pro Forma Report
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| | | Data Not Available | | | | | | | | | |
| | Quarterly Report Information
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| | | Quarterly Revenue, US$ |
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| Year | Quarter | Revenue | | 2010 |
1 | 6,640,000 | | 2009 |
1 | 7,100,000 | | 2009 |
2 | 6,200,000 | | 2009 |
3 | 8,430,000 | | 2009 |
4 | 7,720,000 | | 2009 |
Full Year
| 29,450,000 | | 2008 |
1 | 6,280,000 | | 2008 |
2 | 7,920,000 | | 2008 |
3 | 11,650,000 | | 2008 |
4 | 9,920,000 | | 2008 |
Full Year
| 35,770,000 | | 2007 |
1 | 2,100,000 | | 2007 |
2 | 5,140,000 | | 2007 |
3 | 4,890,000 | | 2007 |
4 | 7,260,000 | | 2007 |
Full Year
| 19,390,000 | | 2006 |
3 | 2,210,000 | | 2006 |
4 | (4,320,000) | | 2006 |
Full Year
| 978,000 | | 2005 |
3 | 1,180,000 |
| | | | | | Quarterly Net Income, US$ |
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| Year | Quarter | Revenue | | 2010 |
1 | (2,140,000) | | 2009 |
1 | (730,000) | | 2009 |
2 | (1,760,000) | | 2009 |
3 | (2,090,000) | | 2009 |
4 | (11,560,000) | | 2009 |
Full Year
| (16,140,000) | | 2008 |
1 | (90,000) | | 2008 |
2 | (4,870,000) | | 2008 |
3 | 1,580,000 | | 2008 |
4 | (940,000) | | 2008 |
Full Year
| (4,320,000) | | 2007 |
1 | (110,000) | | 2007 |
2 | 950,000 | | 2007 |
3 | 200,000 | | 2007 |
4 | (80,000) | | 2007 |
Full Year
| 950,000 | | 2006 |
Full Year
| (3,300,000) |
| | | | | | Quarterly EPS, US$ |
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| Year | Quarter | Revenue | | 2010 |
1 | (.01) | | 2009 |
1 | Nil | | 2009 |
2 | (.01) | | 2009 |
3 | (.01) | | 2009 |
4 | (.06) | | 2009 |
Full Year
| (.09) | | 2008 |
1 | Nil | | 2008 |
2 | (.04) | | 2008 |
3 | .01 | | 2008 |
4 | Nil | | 2008 |
Full Year
| (.03) | | 2007 |
1 | Nil | | 2007 |
2 | .01 | | 2007 |
3 | Nil | | 2007 |
4 | Nil | | 2007 |
Full Year
| .01 | | 2006 |
4 | (.09) | | 2006 |
Full Year
| (.04) |
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