Financial Performance - Total revenue for the three months ended September 30, 2021, was $4,299,925, an increase of $377,179, or 9.6% compared to the prior year[96] - For the nine months ended September 30, 2021, total revenue was $12,451,467, an increase of $1,647,570, or 15.2% compared to the prior year[102] - Gross profit for the three months ended September 30, 2021, increased by $364,548, or 59.3%, to $978,875, with a gross profit margin of 22.8%[97] - Gross profit for the nine months ended September 30, 2021, increased by $1,672,282, or 130.4%, to $2,954,453, with a gross profit margin of 23.7%[103] Revenue Sources - Professional fees increased by $1,217,421, or 77.0%, while software sales revenue decreased by $840,242, or 35.9% for the same period[96] - Professional fees for the nine months increased by $5,212,131, or 155.4%, while software sales revenue decreased by $3,564,561, or 47.8%[102] - Three subcontracts represented 54.4% of revenue and 87.9% of gross profit for the three months ended September 30, 2021[91] - The acquisition of Tellenger contributed approximately two-thirds of the increase in professional fees for the third quarter[96] Expenses and Financial Management - The company incurred legal, accounting, and other acquisition-related expenses totaling $39,245 in the third quarter of 2021[99] - The Company accrued $545,152 through July 31, 2021, related to a subcontract, which was fully invoiced on September 8, 2021[113] - The Company has no material commitments for capital expenditures as of the reporting date[114] Corporate Developments - The Company upgraded its listing from OTC pink sheets to OTCQB and has a pending application to list on the NASDAQ Capital Market[90] - The Company established a new position of Senior Vice President & Corporate Controller in September 2021 to enhance financial reporting oversight[116] - Tellenger, Inc. has been fully integrated into the Company's internal controls over financial reporting, with migration to the primary accounting system expected by the start of 2022[116] Loan and Cash Management - 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[112] - The Company expects its application for loan forgiveness to be fully resolved during the fourth quarter of 2021[112] - The Company anticipates being able to meet its cash requirements for at least one year from the filing date of the Quarterly Report[113] Internal Controls and Legal Matters - There were no changes in the Company's internal control over financial reporting that materially affected its effectiveness during the quarter ended September 30, 2021[116] - The Company believes its disclosure controls and procedures provide reasonable assurance of achieving their objectives despite inherent limitations[117] - There are no legal proceedings against the Company as of the reporting date[119]
WaveDancer(WAVD) - 2021 Q3 - Quarterly Report