Revenue and Profitability - Revenue for the first quarter of 2021 was $3,419,580, an increase of $1,357,824 or 65.9% compared to $2,061,756 in the first quarter of 2020[90] - Professional fee revenue increased to $2,439,259 in Q1 2021, up $1,594,856 or 188.9% from $844,403 in Q1 2020[90] - Gross profit for Q1 2021 was $1,019,650, representing 29.8% of revenue, compared to $278,827 or 13.5% of revenue in Q1 2020[91] - Net income for Q1 2021 was $270,815, or 7.9% of revenue, compared to a net loss of ($126,339), or (6.1%) of revenue in Q1 2020[95] - Software revenue decreased to $980,321 in Q1 2021, down $237,032 or 19.5% from $1,217,353 in Q1 2020[90] Expenses and Financial Position - Selling, general and administrative expenses were $545,663, or 16.0% of revenues, in Q1 2021, an increase of $204,850 or 60.1% from Q1 2020[92] - The company raised $499,549 in equity transactions and borrowed $500,000 from its line of credit, resulting in a cash balance of $3,015,943 at March 31, 2021[96] - As of March 31, 2021, the company had a revolving line of credit with a bank for up to $1,000,000, with $500,000 outstanding[97] - On April 16, 2021, the company secured a $1 million 24-month term loan and a $1 million revolving line of credit for the Tellenger acquisition[98] - The company received a Paycheck Protection Program loan of $450,000 on April 20, 2020, with a fixed interest rate of 1% and a term of two years[99] - The company anticipates being able to meet its cash requirements for at least one year from the filing date of the Quarterly Report[100] Acquisitions and Business Strategy - The company acquired Tellenger, Inc. on April 7, 2021, to enhance its capabilities in cyber security, cloud services, and data analytics[78] - The company is exploring additional acquisition opportunities that align with its business plan and complement its current operations[81] Government Contracts - Prime contracts with U.S. government agencies generated 41.1% of revenue, while subcontracts under federal procurements accounted for 57.6% of revenue in Q1 2021[86] Lease and Commitments - The current lease for corporate offices expires on June 30, 2021, with a new lease expected to commence on July 1, 2021[101] - The company has no material commitments for capital expenditures[102]
WaveDancer(WAVD) - 2021 Q1 - Quarterly Report