Byrna Technologies (US:BYRN)2024-07-09 12:00Financial Performance - For the three months ended May 31, 2024, the company recorded a net income of $2.077 million, compared to a net loss of $1.116 million for the same period in 2023[104] - The net income per share - diluted for the three months ended May 31, 2024, was $0.09, compared to a loss of $(0.05) for the same period in 2023[104] - The company reported a net loss of $(3.269) million for the six months ended May 31, 2023, while for the same period in 2024, it recorded a net income of $2.094 million[104] - Net income for the first half of 2024 was $2.1 million, an improvement of $5.4 million compared to a net loss of $3.3 million for the first half of 2023[185] - Total revenue for the six months ended May 31, 2024, was $36.9 million, an increase of 85.3% compared to $19.9 million for the same period in 2023[115] Shareholder Information - The weighted-average common shares outstanding for diluted earnings per share (EPS) for the three months ended May 31, 2024, was 23,731,076, an increase from 21,866,260 in the same period of 2023[104] - The weighted-average common shares outstanding for basic EPS for the six months ended May 31, 2024, was 22,383,769, compared to 21,863,263 for the same period in 2023[104] Operating Expenses - Operating expenses increased to $20.5 million in the first half of 2024, up $6.0 million from $14.4 million in the prior year, driven by higher marketing and employee compensation costs[183] Cash Flow and Liquidity - Cash and cash equivalents as of May 31, 2024, totaled $24.8 million, an increase of $4.3 million from $20.5 million as of November 30, 2023[189] - Cash provided by operating activities was $5.9 million for the six months ended May 31, 2024, compared to cash used in operations of $2.4 million during the prior year period[190] - Cash used in investing activities was $0.7 million for the six months ended May 31, 2024, down from $2.2 million in the prior year[191] - Cash used in financing activities was $0.9 million for the six months ended May 31, 2024, primarily due to stock repurchases and taxes paid on restricted stock units[192] Inventory and Adjusted EBITDA - Inventory increased by $1.6 million during the six months ended May 31, 2024, compared to an increase of $2.7 million for the same period in 2023[190] - Adjusted EBITDA for the first half of 2024 was $4.1 million, compared to a loss of $3.0 million in the first half of 2023[188] Legal and Regulatory Matters - The Company is involved in various legal proceedings, but any potential liability is not expected to have a material adverse effect on its business or financial condition[199] - There were no significant updates regarding insider trading arrangements or changes in officer appointments[200] Accounting Standards - The company adopted ASU 2016-13 on December 1, 2023, which did not have a material impact on its financial statements[76] - The company is evaluating the effect of ASU 2023-07 on its financial statements and believes it will not have a material impact[77] Lease and Sublease Arrangements - The company has a lease for office and warehouse space in South Africa that expires in December 2024[87] - The company subleases office premises at its Massachusetts headquarters to a corporation owned by the CEO, with nominal payments received for the three and six months ended May 31, 2024, and 2023[85] Compensation and Expenses - The company terminated royalty payments to the former CTO in December 2021, resulting in $0.5 million in accelerated stock compensation expense during the fiscal year ended November 30, 2023[106] Foreign Currency Impact - The company recorded a foreign currency translation loss of $0.3 million during the first half of 2024, compared to a loss of $0.2 million in the first half of 2023[184]