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: November 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No.: 000-16035 (Exact name of registrant as specified in its charter) New York 14-1568099 (State or other jurisdiction of (IRS Employer incorporation or organization) Identificatio ...

Financial Data and Key Metrics - Net sales increased 50% YoY to $5.64 million in Q2 FY2024, up from $3.6 million in Q1 FY2024 [23] - Gross profit increased 48% YoY to $2.8 million, with a gross profit margin of 49.7%, slightly down from 50.4% in the prior year due to product mix [24] - Operating expenses increased 30% YoY to $2.2 million, driven by higher R&D, marketing, and administrative costs [25][26][27] - Operating income surged 218% YoY to $566,000, with operating margins improving to 10% from 5% in the prior year [28] - Net income was $541,000 or $0.03 per share, up from $162,000 or $0.01 per share in Q2 FY2023 [29] - Cash, cash equivalents, and marketable securities stood at $12.3 million as of August 31, 2023, with no debt on the balance sheet [30] Business Line Performance - Multi-axis coating systems sales grew 96% YoY to $2.9 million, driven by demand in clean energy and medical device markets [34] - Integrated coating systems sales doubled to $853,000, supported by the new Float Glass Coating platform [36] - Fluxing systems sales dipped due to tough comparisons with the previous year's strong sales of the SonoFlux X2 platform [37] - OEM sales were lower as partners built up excess inventory, but spare parts and service revenue grew 64% [38] - Service and spare parts revenue from large systems could reach 10%-15% of total order value, contributing to high-margin recurring revenue [39] Market Performance - Clean energy market sales grew 161% YoY, driven by large orders for carbon capture, green hydrogen, and fuel cell applications [40] - Medical device sales rebounded strongly with 117% growth, driven by large multinational companies adopting specialty implantable device coating systems [41] - Industrial sales grew 104% due to new generation systems, including a large float glass coating machine delivered to Latin America [41] - U.S. and Canada sales increased 94% YoY, benefiting from onshoring trends and government initiatives like the CHIPS Act and Inflation Reduction Act [42] - Asia-Pacific sales decreased 35%, primarily due to lower sales in China, though other regions in Asia remained strong [43] Strategic Direction and Industry Competition - The company's strategic shift to larger, complex systems has broadened its addressable market and increased average selling prices, with systems now commonly selling for over $300,000 and reaching up to $1 million or more [14][15] - Investments in R&D totaled $1.4 million in the first half of FY2024, up from $1 million in the year-ago period, supporting product expansion and market growth [20] - Headcount increased by approximately 10%, mainly in engineering, R&D, and sales, to support growth and expansion [20] - The company expects at least 25% YoY sales growth for FY2024, driven by shipments of delayed and new orders [22] Management Commentary on Operating Environment and Future Outlook - Management highlighted the early success of the strategy to shift to larger, more complex systems, with multiple and repeat orders driving growth [21] - The company is confident in its outlook, expecting to return to its pre-COVID growth path, supported by strong demand in clean energy, medical devices, and industrial markets [22] - The backlog reached a record high of $10.7 million, up 26% from six months ago, reflecting increasing order activity, particularly in the clean energy sector [16][44][47] Other Important Information - The company's proprietary ultrasonic coating technology remains central to its systems, with ongoing R&D efforts driving innovation and market expansion [19] - Customer deposits reached $3.4 million, reflecting the receipt of several large new orders, with deposits typically 50% or greater for orders over several hundred thousand dollars [48] Q&A Session Summary Question: EBITDA Comparison - EBITDA for Q2 FY2024 was approximately $994,000, calculated by adding back depreciation and amortization to income before taxes [72] Question: Quarterly Earnings Calls - Management is considering transitioning to quarterly earnings calls, as the current semi-annual format may not fully reflect the company's growth and counter-cyclical performance [73][75] Question: Gross Margin Outlook - Gross margins are expected to improve as the company optimizes costs for new products like the NovoCoat platform and benefits from operational leverage [78][82] Question: Capacity Utilization - The company has sufficient capacity to grow revenue to $25-$30 million within its existing facility, with potential to expand to $40-$45 million by relocating tenants [83][84] Question: Clean Energy and Medical Markets - Growth in clean energy and medical markets was driven by both delayed shipments and new orders, with a 50/50 split between the two [124] - Clean energy growth was primarily in fuel cells, carbon capture, and green hydrogen, while medical growth came from complex implantable device systems [125][128] Question: Backlog Composition - The backlog is heavily weighted towards the clean energy sector, with significant orders like the $2.19 million system and other high-value projects [135][138] - The backlog is split approximately 50/50 between shipments expected in FY2024 and FY2025 [140] Question: Solar Market Potential - The solar market has significant potential, with the company expecting revenue to exceed historical highs of $2-$3 million due to the shift to high-volume production systems [147][148]

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: August 31, 2023 OR 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, $0.01 par value per share | SOTK | NASDAQ | Indicate by check mark whether the registrant (1) has filed a ...

For the quarterly period ended: May 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 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 Commission File No.: 000-16035 (Exact name of registrant as specified in its charter) (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) New York 14-156809 ...

Sono-Tek Corporation (NASDAQ:SOTK) Q4 2023 Earnings Conference Call May 25, 2023 10:00 AM ET Company Participants Stephanie Prince - PCG Advisory Christopher Coccio - Chairman and CEO Stephen Bagley - CFO Stephen Harshbarger - President and COO Conference Call Participants Bill Nicklin - Circle N Advisors Ted Jackson - Northland Securities Avi Fisher - Long Cast Advisers Operator Good morning, and welcome to the Sono-Tek Fiscal Year End 2023 Earnings Conference Call. All participants will be in a listen-onl ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Name of registrant as specified in its charter) (State or other Jurisdiction of Incorporation or Organization) NEW YORK 14-1568099 (IRS Employer Identification Number) 2012 Route 9W, Milton, New York 12547 (Address of Principal Executive Offices) (Zip Code) Registrant's Telephone Number, Including Area Code: (845) 795-2020 Securities Registered Pursuant to Section 12(b) of the Act: FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d ...

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: November 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No.: 000-16035 (Exact name of registrant as specified in its charter) New York 14-1568099 (State or other jurisdiction of (IRS Employer incorporation or organization) Identificatio ...

Financial Data and Key Metrics - Revenue for Q2 FY2023 decreased by 8% to $3.8 million due to delayed shipments caused by supply chain challenges [17] - Gross profit decreased by 9% to $1.9 million, with a gross profit margin of 50.4% compared to 51% in the prior year period [18][19] - Operating expenses increased by 6% to $1.7 million, driven by higher employee compensation and travel costs [14][20] - Net income for Q2 was $162,000 or $0.01 per share, down from $344,000 or $0.02 per share in Q2 FY2022 [22] - For the first half of FY2023, total sales increased by 1% to $7.8 million, with gross profit up 3% to $4 million [23][24] Business Line Data and Key Metrics - Fluxing sales grew by 241% in Q2 to $399,000, driven by the launch of the SelectFlux X2 product [30] - OEM sales decreased by 10% in Q2 but grew by 12% for the first half, led by shipments to European partners [31] - Multi-Axis Coating Systems sales decreased by 21% in Q2 and 13% for the first half due to supply chain delays [31] - Industrial market sales grew by 77% in Q2 and 118% for the first half, including the first shipment of a roll-to-roll system [32][33] - Medical sector revenue decreased by 27% in Q2 but increased by 36% for the first half, driven by large U.S.-based medical companies [34] Market Data and Key Metrics - Sales outside the U.S. and Canada accounted for 56% of total sales in Q2, down from 62% in the prior year period [18] - APAC sales decreased by 49% in Q2 and 46% for the first half, primarily due to COVID-19 lockdowns in China [35] - Backlog increased by 19% to $5 million at the end of Q2, driven by new orders from the electronics sector [36] Company Strategy and Industry Competition - The company is focusing on opening new markets in microelectronics, clean energy, and medical devices, leveraging its thin film coating technology [10] - A significant $1.1 million order from the clean energy sector validates the company's investment in this market [11] - The company is expanding its roll-to-roll product handling capabilities, which is expected to become an important product line [12][33] Management Commentary on Operating Environment and Future Outlook - Management expects supply chain challenges to continue impacting deliveries in Q3 but anticipates higher year-over-year sales for FY2023 [16][37] - The company is raising prices to reflect increased labor and material costs, though there is a lag in realizing these increases [15] - Management remains confident in growth opportunities, particularly in semiconductors, medical devices, and clean energy [15][16] Other Important Information - The company has no debt and holds $10.7 million in cash, cash equivalents, and short-term investments as of August 31, 2022 [25] - CapEx for the first half of the year was $244,000, focused on upgrading manufacturing facilities [25] Q&A Session Summary Question: Supply Chain Resolution - The company is addressing supply chain issues by purchasing inventory earlier, engineering solutions, and building subsystems in-house [44][45][46] - Once supply chain issues are resolved, a surge in shipments is expected as delayed orders are fulfilled [47] Question: Customer Lab Visits - Customer visits to the development lab are increasing, particularly from the clean energy sector, with a 75% conversion rate to machine purchases [48][50] Question: Hydrogen Market Opportunity - The company sees significant growth potential in the green hydrogen market, driven by government investments and the need for electrolyzers [56][57][59] - The company's technology is well-positioned to benefit from the growing demand for green hydrogen production [60][61] Question: Q3 Revenue Guidance - The company expects Q3 revenue to be similar to Q2, with potential for delayed shipments to shift into Q3 [68] Question: Operating Expenses - Operating expenses have increased due to higher employee compensation, but the company expects this trend to stabilize as pricing adjustments take effect [70][71] Question: Tax Rate - The drop in the tax rate is due to the application of R&D tax credits and a decrease in earnings before taxes [74][75] Question: Receivables and Inventory - The company expects inventory to grow in the second half of the year as it builds up stock to mitigate supply chain issues [89] - Receivables increased due to customer agreements requiring payment upon installation, but the company expects this to normalize [83][85] Question: Roll-to-Roll Technology - Roll-to-roll technology is used in industries like clean energy and medical devices to increase production efficiency [96][97][99] - The company is investing in this technology to meet growing customer demand for high-volume production [98]

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: August 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No.: 000-16035 (Exact name of registrant as specified in its charter) New York 14-1568099 (State or other jurisdiction of (IRS Employer incorporation or organization) Identification ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: May 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No.: 000-16035 (Exact name of registrant as specified in its charter) New York 14-1568099 (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) 2012 Rt. ...