Financial Performance - Net revenue for the quarter ended March 31, 2023, was $30,501,000, slightly down from $30,654,000 in the same quarter of 2022, while net revenue for the six months ended March 31, 2023, increased to $56,327,000 from $50,760,000, a growth of about 11%[16] - Gross profit for the quarter ended March 31, 2023, was $9,097,000, compared to $6,192,000 in the same quarter of 2022, reflecting a significant increase of approximately 47%[16] - Operating income for the quarter ended March 31, 2023, was $5,161,000, up from $1,908,000 in the same quarter of 2022, indicating a growth of about 171%[16] - Net income for the quarter ended March 31, 2023, was $4,873,000, compared to $439,000 in the same quarter of 2022, representing an increase of approximately 1,110%[16] - For the six months ended March 31, 2023, net sales increased to $56,327,000 from $50,760,000 for the same period in 2022, an increase of $5,567,000[82] - Net income for the six months ended March 31, 2023, was $8,349,000, or $0.57 basic and diluted earnings per share, versus $165,000, or $0.01 basic and diluted earnings per share for the same period in 2022[86] Cash and Assets - Cash and cash equivalents increased to $18,462,000 as of March 31, 2023, from $9,581,000 at September 30, 2022, marking an increase of approximately 93%[13] - As of March 31, 2023, the total fair value of the company's marketable securities was $87,851,000, with Level 1 measurements accounting for $51,076,000 and Level 2 measurements for $36,775,000[32] - The Company had no long-term or short-term debt outstanding as of March 31, 2023, indicating a strong balance sheet[88] - The maximum amount that can be drawn under the irrevocable standby letter of credit is $150,000, which expires in April 2024[89] Liabilities and Equity - Total current liabilities rose to $20,083,000 as of March 31, 2023, compared to $12,390,000 at September 30, 2022, an increase of about 62%[13] - Retained earnings increased to $161,210,000 as of March 31, 2023, up from $152,861,000 at September 30, 2022, reflecting a growth of approximately 5.5%[13] Inventory and Receivables - The company's net inventories increased to $63,803,000 as of March 31, 2023, up from $55,815,000 as of September 30, 2022[36] - Accounts receivable increased by $4,297,000, primarily due to increased paver sales and the timing of parts sales collections[91] - Slow-moving and obsolete inventory allowances were $8,573,000 at March 31, 2023, compared to $8,192,000 at September 30, 2022[36] Customer and Contract Information - Customer deposits related to contracts with customers increased to $12,323,000 as of March 31, 2023, from $5,864,000 at September 30, 2022[53] - Two customers accounted for 12.7% and 11.6% of net revenues during the quarter ended March 31, 2023[40] - The Company's backlog was $37.4 million at March 31, 2023, down from $44.9 million at March 31, 2022, indicating a decrease of approximately 16.6% year-over-year[91] Cash Flow - The company experienced a net increase in cash flows from operating activities to $10,055,000 for the six months ended March 31, 2023, compared to $1,045,000 in the same period of 2022[21] - Cash flows provided by operating activities during the six months ended March 31, 2023, were $10,055,000, reflecting operational efficiency[91] - Cash flows used in investing activities for the six months ended March 31, 2023, were $1,174,000, primarily for capital expenditures related to manufacturing equipment[92] Tax and Non-Operating Income - The effective income tax rates for the quarters ended March 31, 2023, and March 31, 2022, were 24.1% and 24.2%, respectively[81] - The Company had net non-operating income of $1,257,000 for the quarter ended March 31, 2023, compared to a net non-operating expense of $(1,329,000) for the same quarter in 2022[80] Earnings Per Share - The company reported a basic income per common share of $0.33 for the quarter ended March 31, 2023, compared to $0.03 in the same quarter of 2022, indicating a significant increase[16] - Basic net income per share for the quarter ended March 31, 2023, was $0.33, compared to $0.03 for the same quarter in 2022[39]

Financial Performance - Net revenue for the quarter ended December 31, 2022, was $25,825,000, representing a 28.0% increase from $20,106,000 in the same quarter of 2021[17] - Gross profit for the quarter was $5,815,000, up 56.8% from $3,705,000 year-over-year[17] - Operating income for the quarter was $2,119,000, compared to an operating loss of $1,043,000 in the same quarter of 2021[17] - Net income for the quarter was $3,476,000, a significant improvement from a net loss of $274,000 in the prior year[17] - The basic and diluted net income per share for the quarter ended December 31, 2022 was $0.24, compared to a loss of $0.02 in the same quarter of 2021[39] - Net non-operating income for the quarter ended December 31, 2022 was $2,455,000, compared to $700,000 for the same quarter in 2021, driven by gains on marketable securities[80] Assets and Liabilities - Total current assets increased to $169,253,000 as of December 31, 2022, up from $162,479,000 at September 30, 2022[14] - Total assets reached $185,336,000, compared to $179,313,000 at the end of the previous quarter[14] - Cash and cash equivalents decreased to $5,978,000 from $9,581,000 at the end of the previous quarter[14] - Total liabilities increased to $14,943,000 from $12,396,000 at September 30, 2022[14] - Retained earnings rose to $156,337,000 as of December 31, 2022, compared to $152,861,000 at the end of the previous quarter[14] Inventory and Contract Assets - Net inventories increased to $59,315,000 as of December 31, 2022, up from $55,815,000 as of September 30, 2022[36] - Costs incurred on uncompleted contracts rose to $17,613,000 as of December 31, 2022, compared to $12,660,000 as of September 30, 2022[38] - Contract assets recognized in excess of amounts billed were $4,950,000 as of December 31, 2022, compared to $2,118,000 as of September 30, 2022[48] - The allowance for slow-moving and obsolete inventory reserves was $8,352,000 as of December 31, 2022, up from $8,192,000 as of September 30, 2022[36] Customer and Revenue Insights - Two customers accounted for 25.9% of net revenues during the quarter ended December 31, 2022[40] - The Company recorded customer deposits of $8,387,000 as of December 31, 2022, an increase from $5,864,000 as of September 30, 2022[53] - Cash flows used in operations during the quarter ended December 31, 2022 were $2,898,000, with accounts receivable increasing by $1,738,000 due to higher paver and parts sales[85] - Customer deposits related to contracts with customers rose to $8,387,000 at December 31, 2022, compared to $5,864,000 at September 30, 2022, reflecting increased customer commitments[95] Expense Management - Product engineering and development expenses decreased to $897,000 for the quarter ended December 31, 2022, down from $1,349,000 in the same quarter of 2021[77] - Selling, general and administrative expenses decreased to $2,799,000 for the quarter ended December 31, 2022, compared to $3,399,000 for the same quarter in 2021[77] Marketable Securities and Investments - As of December 31, 2022, the total fair value of marketable securities was $91,718,000, with Level 1 investments at $55,021,000 and Level 2 investments at $36,697,000[32] - Net unrealized gains on trading securities for the quarter ended December 31, 2022 were $2,332,000[32] - Marketable securities are categorized as trading securities and marked to market, with unrealized gains and losses reported in the current period, indicating active management of investment portfolios[100] Revenue Recognition and Accounting Policies - The company recognizes revenue from equipment sales over time, with costs recognized in proportion to actual labor costs incurred[90] - All product engineering and development costs are charged to operations as incurred, indicating a focus on immediate investment in product development[97] - The allowance for doubtful accounts includes estimates for returns and allowances, ensuring a proactive approach to managing potential revenue losses[98] - Inventories are adjusted for obsolescence, with a 50% reduction for items three to four years old and a complete write-off for items over five years old, reflecting a conservative inventory management strategy[99] - The company anticipates that all contract assets will be billed and collected within one year, demonstrating confidence in cash flow management[91] - There were no contract liabilities other than customer deposits, indicating a straightforward revenue recognition process without deferred obligations[95]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10 – K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended September 30, 2022 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 001-11703 GENCOR INDUSTRIES, INC. Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act ☐ Yes ☒ No Indicate by check mar ...

Financial Performance - For the quarter ended June 30, 2022, net revenue was $29,647,000, an increase from $24,919,000 in the same quarter of 2021, representing a growth of approximately 19%[16] - Gross profit for the quarter was $5,679,000, compared to $5,605,000 in the prior year, indicating a slight increase[16] - Operating income for the quarter was $2,151,000, up from $1,227,000 in the same quarter of 2021, reflecting a growth of approximately 75%[16] - The company reported a net loss of $1,015,000 for the quarter, compared to a net income of $2,335,000 in the same quarter of 2021[16] - Net revenues for the quarter ended June 30, 2022, were $29,647,000, representing an increase of $4,728,000 or 19.0% compared to $24,919,000 for the same quarter in 2021[80] - Net loss for the quarter ended June 30, 2022, was $(1,015,000), or $(0.07) per share, compared to net income of $2,335,000, or $0.16 per share, for the same quarter in 2021[86] - Net sales for the nine months ended June 30, 2022, were $80,407,000, an increase of $15,172,000 or 23.3% from $65,235,000 for the same period in 2021[87] Assets and Liabilities - Total current assets as of June 30, 2022, were $168,118,000, slightly up from $166,823,000 as of September 30, 2021[14] - Cash and cash equivalents decreased to $19,474,000 from $23,232,000 at the end of the previous fiscal year[14] - Total liabilities increased to $14,931,000 as of June 30, 2022, compared to $12,173,000 at September 30, 2021[14] - The company’s retained earnings decreased to $152,383,000 from $153,233,000 over the same period[14] - As of June 30, 2022, net inventories totaled $48.244 million, an increase from $41.888 million as of September 30, 2021[40] - The Company had slow-moving and obsolete inventory allowances of $7.975 million as of June 30, 2022, compared to $5.397 million as of September 30, 2021[40] - Contract assets were $1,366,000 at June 30, 2022, down from $1,903,000 at September 30, 2021, indicating a decrease of 28.2%[52] - Customer deposits related to contracts with customers increased to $7,436,000 at June 30, 2022, from $5,244,000 at September 30, 2021, a rise of 41.9%[56] Cash Flow and Investments - Cash flows used in operating activities for the nine months ended June 30, 2022, were $(1,574,000), a significant decrease from $8,130,000 in the prior year[22] - The company made capital expenditures of $2,184,000 during the nine months ended June 30, 2022[22] - The Company acquired the Blaw-Knox paver line for an initial purchase price of approximately $14.4 million, which was adjusted to $13.8 million after post-closing adjustments[25] - The Company had $19,474,000 in cash and cash equivalents and $91,116,000 in marketable securities as of June 30, 2022[96] Market and Operational Insights - The company continues to monitor the impact of the COVID-19 pandemic, which has not significantly affected operations as of the report date[28] - The company expects increased demand for its products due to the $1.2 trillion infrastructure bill signed into law in November 2021, which includes $110 billion for highways, bridges, and roads[72] - The company continues to invest in product engineering and development to strengthen its market position and improve operational efficiency[77] - The company is monitoring the impacts of the COVID-19 pandemic on its operations, with no significant effects reported as of the quarter ended June 30, 2022[78] Profitability Metrics - Gross profit margins decreased to 19.2% for the quarter ended June 30, 2022, down from 22.5% for the same quarter in 2021[81] - Gross profit margins for the nine months ended June 30, 2022, decreased to 19.4% from 22.6% for the same period in 2021[88] - Operating income increased to $2,151,000 for the quarter ended June 30, 2022, compared to $1,227,000 for the same quarter in 2021, driven by increased sales and reduced expenses[83] - Operating income for the nine months ended June 30, 2022, was $3,017,000, up from $1,407,000 for the same period in 2021[90] Securities and Market Risks - The fair value of marketable securities as of June 30, 2022, was $91.116 million, with net unrealized losses of $(3.855 million) for the quarter[35] - Net realized and unrealized losses on marketable securities were $(3,693,000) for the quarter ended June 30, 2022, compared to gains of $1,386,000 for the same quarter in 2021[84] - There are no off-balance sheet arrangements reported by the company[116] - There are no applicable quantitative and qualitative disclosures about market risk[117] Impairment and Asset Management - The company reviews property and equipment and intangible assets for impairment whenever events indicate that the carrying amount may not be recoverable[115] - An impairment loss is recognized when the carrying amount exceeds the estimated undiscounted cash flows expected from the asset[115] - The impairment loss amount is calculated based on the excess of the asset's carrying value over its fair value, determined using discounted cash flow analysis[115]

Financial Performance - For the quarter ended March 31, 2022, net revenue was $30,654,000, representing an increase of 43.4% compared to $21,352,000 for the same quarter in 2021[18] - Gross profit for the quarter was $6,192,000, slightly up from $6,146,000 in the prior year, indicating a stable gross margin[18] - Operating income increased to $1,908,000 for the quarter, compared to $1,239,000 in the same quarter last year, reflecting improved operational efficiency[18] - Net income for the quarter was $439,000, a decrease from $2,288,000 in the prior year, primarily due to net realized and unrealized losses on marketable securities[18] - Basic earnings per share for the quarter ended March 31, 2022, were $0.03, a decrease from $0.16 in the same quarter of 2021[44] - Net income for the quarter ended March 31, 2022, was $439,000, or $0.03 basic and diluted earnings per share, down from $2,288,000, or $0.16 basic and diluted earnings per share, for the same quarter in 2021[88] Revenue and Sales - Equipment sales recognized over time amounted to $10,998,000 for the quarter ended March 31, 2022, compared to $3,870,000 in the same quarter of 2021, indicating a significant increase of 184.5%[52] - Net revenues for the quarter ended March 31, 2022, were $30,654,000, an increase of $9,302,000 compared to $21,352,000 for the same quarter in 2021, reflecting the impact of the $1.2 trillion infrastructure bill signed into law in November 2021[82] - Net sales increased by $10,444,000 to $50,760,000 for the six months ended March 31, 2022, compared to $40,316,000 for the same period in 2021, driven by the new $1.2 trillion infrastructure bill[89] Assets and Liabilities - Total current assets increased to $173,603,000 as of March 31, 2022, up from $166,823,000 at September 30, 2021, driven by higher inventories and accounts receivable[15] - Total liabilities rose to $19,065,000 as of March 31, 2022, compared to $12,173,000 at September 30, 2021, largely due to increased customer deposits[15] - Cash and cash equivalents decreased to $22,571,000 at the end of the quarter, down from $23,232,000 at the end of the previous fiscal year[15] - The company’s net inventories as of March 31, 2022, totaled $47,222,000, an increase from $41,888,000 as of September 30, 2021[42] - Customer deposits related to contracts with customers increased to $10,286,000 at March 31, 2022, from $5,244,000 at September 30, 2021[59] Expenses - Selling, general and administrative expenses decreased to $3,364,000 for the quarter ended March 31, 2022, compared to $3,838,000 for the same quarter in 2021, attributed to lower professional fees[84] - Product engineering and development expenses decreased to $920,000 for the quarter ended March 31, 2022, from $1,069,000 in the same quarter of 2021, primarily due to reduced headcount[84] - Product engineering and development expenses rose by $355,000 for the six months ended March 31, 2022, compared to the same period in 2021[91] Marketable Securities - The company reported net unrealized losses of $(1,598,000) for the quarter ended March 31, 2022, compared to net unrealized gains of $596,000 for the same quarter in 2021[37][38] - As of March 31, 2022, total marketable securities measured at fair value were $94,501,000, with $70,479,000 classified as Level 1 and $24,022,000 as Level 2[37] Operational Metrics - The effective income tax rate for the quarter ended March 31, 2022, was 24.2%, compared to 20.0% for the same quarter in 2021[88] - Cash provided by operations during the six months ended March 31, 2022, was $1,045,000[98] - Cash flows used in investing activities for the six months ended March 31, 2022, were $1,706,000, primarily for capital expenditures[99] - The Company had $22,571,000 in cash and cash equivalents and $94,501,000 in marketable securities as of March 31, 2022[97] Backlog and Contracts - The Company's backlog increased to $44.9 million at March 31, 2022, compared to $42.6 million at March 31, 2021[98] - Costs incurred on uncompleted contracts were $19,501,000 as of March 31, 2022, compared to $11,483,000 as of September 30, 2021, reflecting an increase of 70.4%[43] - The estimated earnings on uncompleted contracts were $5,875,000 as of March 31, 2022, compared to $4,395,000 as of September 30, 2021, indicating a growth of 33.6%[43] Strategic Developments - The acquisition of Blaw-Knox assets in October 2020 has allowed the company to enter the asphalt paver sector, contributing to its market expansion strategy[26] - One customer accounted for 13.6% of net revenues during the quarter ended March 31, 2022, compared to 12.0% for another customer in the same quarter of 2021[47]

Table of Contents Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 2021 OR ☐ 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: 001-11703 GENCOR INDUSTRIES, INC. Delaware 59-0933147 (State or other jurisdiction of incorporation or ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Delaware 59-0933147 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) FORM 10-K 5201 North Orange Blossom Trail Orlando, Florida 32810 ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (Address of principal executive offices, including zip code) For the Fiscal Year Ended September 30, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SEC ...

Table of Contents Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2021 OR ☐ 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: 001-11703 GENCOR INDUSTRIES, INC. Delaware 59-0933147 (State or other jurisdiction of incorporation or org ...

☐ 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: 001-11703 GENCOR INDUSTRIES, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2021 OR Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 ...

Part I. Financial Information [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Q1 FY2021 net income decreased to **$1.55 million** due to an operating loss from Blaw-Knox acquisition costs [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of December 31, 2020, total assets slightly increased to **$173.3 million**, driven by higher inventories, while total liabilities rose to **$10.5 million** and shareholders' equity reached **$162.8 million** Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2020 | Sep 30, 2020 | | :--- | :--- | :--- | | Cash and cash equivalents | $23,957 | $35,584 | | Marketable securities | $92,049 | $89,498 | | Inventories, net | $35,473 | $27,090 | | Total current assets | $160,066 | $161,758 | | **Total Assets** | **$173,312** | **$171,094** | | Total current liabilities | $8,727 | $8,514 | | **Total Liabilities** | **$10,541** | **$9,874** | | **Total Shareholders' Equity** | **$162,771** | **$161,220** | [Condensed Consolidated Statements of Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Net revenue increased slightly to **$19.0 million** in Q1 FY2021, but an operating loss of **$1.1 million** led to a net income decrease to **$1.55 million** Quarterly Income Statement Comparison (in thousands) | Metric | Q1 2021 (ended Dec 31, 2020) | Q1 2020 (ended Dec 31, 2019) | Change | | :--- | :--- | :--- | :--- | | Net revenue | $18,964 | $18,030 | +5.2% | | Gross profit | $2,981 | $4,320 | -31.0% | | Operating income (loss) | $(1,058) | $1,172 | -190.3% | | Net income | $1,551 | $2,489 | -37.7% | | Diluted EPS | $0.11 | $0.17 | -35.3% | [Condensed Consolidated Statements of Shareholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders%27%20Equity) Shareholders' equity increased to **$162.8 million** as of December 31, 2020, solely due to the quarter's net income - Total shareholders' equity grew by **$1.55 million** during the quarter, entirely due to net income, reaching **$162.8 million** as of December 31, 2020[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow was **$3.7 million**, but investing activities used **$15.3 million**, primarily for the Blaw-Knox acquisition, resulting in a net cash decrease of **$11.6 million** Quarterly Cash Flow Summary (in thousands) | Cash Flow Category | Q1 2021 (ended Dec 31, 2020) | Q1 2020 (ended Dec 31, 2019) | | :--- | :--- | :--- | | Cash flows provided by operating activities | $3,705 | $4,047 | | Cash flows used in investing activities | $(15,332) | $(6) | | Net increase (decrease) in cash | $(11,627) | $4,041 | | **Cash and cash equivalents at end of period** | **$23,957** | **$14,343** | - The company used **$14.4 million** in cash for the acquisition of Blaw-Knox during the quarter[20](index=20&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail the **$14.4 million** Blaw-Knox acquisition, a shift in revenue recognition, and significant customer concentration - On October 1, 2020, the Company acquired the Blaw-Knox paver product line and associated assets for an initial purchase price of approximately **$14.4 million**, funded by cash on hand, including **$11.0 million** in inventory and **$3.4 million** in fixed assets[23](index=23&type=chunk) Disaggregated Net Revenue by Source (in thousands) | Revenue Source | Q1 2021 (ended Dec 31, 2020) | Q1 2020 (ended Dec 31, 2019) | | :--- | :--- | :--- | | Equipment sales recognized over time | $4,132 | $12,090 | | Equipment sales recognized at a point in time | $10,136 | $1,907 | | Parts and component sales | $3,931 | $3,146 | | **Total Net Revenue** | **$18,964** | **$18,030** | - During the quarter ended December 31, 2020, three customers accounted for **15.5%**, **12.0%**, and **10.5%** of net revenues, respectively, indicating significant customer concentration[45](index=45&type=chunk) - The company entered into new operating leases related to the Blaw-Knox acquisition, resulting in a Right-of-Use (ROU) asset of **$1.1 million** and total lease liabilities of **$1.1 million** as of December 31, 2020[61](index=61&type=chunk)[63](index=63&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q1 FY2021 revenue increased by **5.2%**, but gross margin declined to **15.7%** due to **$1.5 million** in unabsorbed overhead from the Blaw-Knox acquisition, while liquidity remains strong with **$24.0 million** in cash and **$92.0 million** in marketable securities Q1 2021 vs Q1 2020 Performance | Metric | Q1 2021 (ended Dec 31, 2020) | Q1 2020 (ended Dec 31, 2019) | | :--- | :--- | :--- | | Net Revenues | $18,964,000 | $18,030,000 | | Gross Profit Margin | 15.7% | 24.0% | | Operating Income (Loss) | $(1,058,000) | $1,172,000 | | Net Income | $1,551,000 | $2,489,000 | - Gross profit margin was negatively impacted by approximately **$1.5 million** of unabsorbed manufacturing labor and overhead expenses related to the Blaw-Knox paver product line, which has not yet started production[77](index=77&type=chunk) - Selling, general and administrative (SG&A) expenses increased by **$0.81 million**, primarily due to approximately **$0.5 million** in professional fees, salaries, and other expenses related to the Blaw-Knox acquisition[78](index=78&type=chunk) - The company's backlog was **$32.1 million** at December 31, 2020, compared to **$30.9 million** at December 31, 2019[85](index=85&type=chunk) - As of December 31, 2020, the company had **$24.0 million** in cash and cash equivalents and **$92.0 million** in marketable securities[84](index=84&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=21&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section is not applicable for the reporting period - The company has indicated that this item is not applicable[105](index=105&type=chunk) [Controls and Procedures](index=21&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of December 31, 2020, with no material changes in internal control over financial reporting during the quarter - Based on an evaluation, the Chief Executive Officer and Principal Financial and Accounting Officer concluded that the Company's disclosure controls and procedures are effective as of the end of the quarter[106](index=106&type=chunk) - No changes in the Company's internal control over financial reporting occurred during the quarter ended December 31, 2020, that materially affected, or are reasonably likely to materially affect, these controls[108](index=108&type=chunk) Part II. Other Information [Legal Proceedings](index=22&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course legal proceedings, none of which are deemed material to the business - The company states that it does not believe any current legal proceedings are material to its business[110](index=110&type=chunk) [Risk Factors](index=22&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended September 30, 2020 - During the quarter ended December 31, 2020, there were no material changes to the risk factors previously disclosed in the Annual Report on Form 10-K for the fiscal year ended September 30, 2020[111](index=111&type=chunk) [Exhibits](index=22&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and Interactive Data Files - Exhibits filed include CEO and CFO certifications pursuant to Rule 13a-14(a) and 18 U.S.C. Section 1350, as well as XBRL Interactive Data Files[112](index=112&type=chunk)