Financial Performance - Total revenue for the second quarter of 2021 decreased by 1.8% compared to the same period in 2020, while revenue from professional fees increased by $2.4 million, or 258.5%[108] - Gross profit for the second quarter of 2021 increased by $566,912, or 145.7%, reaching $955,928, with an overall gross profit margin of 20.2%, up from 8.1% in 2020[109] - For the three months ended June 30, 2021, three subcontracts represented 47.5% of total revenue and 85.7% of gross profit[103] - Income from operations for the first six months of 2021 was $322,849, compared to a loss of $162,057 in 2020, marking a difference of $484,906[118] - The gross profit margin for professional fees in the first six months of 2021 was 33.0%, while software sales contributed a gross profit margin of only 3.1%[115] Acquisition and Integration - The acquisition of Tellenger, Inc. contributed to a $4.0 million increase in professional fees revenue, or 225.3%, in the first six months of 2021[114] - Selling, general and administrative expenses (SG&A) increased by $638,817 in the first six months of 2021, partly due to the incorporation of Tellenger's administrative structure[116] - The company incurred acquisition costs of $153,286 related to the Tellenger acquisition in the first six months of 2021[117] - The integration of Tellenger, Inc. into the company's internal control systems is expected to be completed by the start of the 2022 calendar year[128] Liquidity and Financing - Cash balance at June 30, 2021, was $1,532,764, indicating sufficient liquidity for operations[119] - The company secured a $1 million term loan and a $1 million revolving line of credit, with a current balance of $916,667 and $402,306 respectively as of June 30, 2021[120] - A private placement raised $495,999 in March 2021, with an additional $83,545 from exercised stock options through June 30, 2021[121] - The company accrued $477,268 through June 30, 2021, related to a financing component of a subcontract, with expectations to release the total amount in Q4 2021[123] - The company received a $450,000 Paycheck Protection Program loan on April 20, 2020, with a fixed interest rate of 1% and a two-year term[122] Operational Developments - A lease for new headquarters in Fairfax, Virginia, was executed to begin on July 1, 2021, to meet foreseeable facility requirements[124] - There were no material commitments for capital expenditures reported[125] Compliance and Controls - The company’s disclosure controls and procedures were evaluated as effective as of June 30, 2021[127] - There were no changes in internal control over financial reporting that materially affected the company during the quarter ended June 30, 2021[128] - No legal proceedings were reported against the company[131] Future Plans - The company plans to elevate its common stock to trade on a major exchange before the end of 2021[102]
WaveDancer(WAVD) - 2021 Q2 - Quarterly Report