CVD(US:CVV)2024-08-13 20:00Financial Performance - Total revenue for Q2 2024 was $6,345,000, an increase of 25.1% compared to $5,069,000 in Q2 2023[6] - Net loss for Q2 2024 was $761,000, compared to a net loss of $1,113,000 in Q2 2023, representing a 31.7% improvement[6] - For the six months ended June 30, 2024, the net loss was $2.233 million, compared to a net loss of $1.153 million for the same period in 2023, representing an increase in loss of approximately 93.6%[9] - The company recorded a pretax loss of $2.233 million for the six months ended June 30, 2024, compared to a loss of $1.142 million in the same period of 2023, indicating a worsening of approximately 95.5%[56][57] - Total revenue for the three months ended June 30, 2024, was $6.345 million, compared to $5.069 million for the same period in 2023, reflecting a year-over-year increase of approximately 25.1%[32] - As of June 30, 2024, the company reported total consolidated revenue of $11.267 million, a decrease from $13.764 million in the same period of 2023, representing a decline of approximately 18.2%[56][57] Expenses and Costs - Gross profit for the first half of 2024 was $2,468,000, down 35.4% from $3,821,000 in the same period of 2023[6] - Research and development expenses increased to $665,000 in Q2 2024, up 18.9% from $559,000 in Q2 2023[6] - Total operating expenses for the six months ended June 30, 2024, were $4,994,000, down from $5,241,000 in the same period of 2023, a decrease of 4.7%[6] - Stock-based compensation increased to $534,000 for the six months ended June 30, 2024, compared to $397,000 for the same period in 2023, reflecting a rise of 34.5%[9] - The company recorded depreciation and amortization expenses of $307,000 for the six months ended June 30, 2024, down from $392,000 in the same period of 2023, indicating a decrease of 21.7%[9] Assets and Liabilities - Total current assets decreased to $21,786,000 as of June 30, 2024, down from $22,841,000 at December 31, 2023[5] - Total liabilities increased to $9,341,000 as of June 30, 2024, compared to $8,822,000 at December 31, 2023[5] - Stockholders' equity decreased to $24,504,000 as of June 30, 2024, down from $26,203,000 at December 31, 2023[5] - Cash and cash equivalents decreased to $10,031,000 as of June 30, 2024, down from $14,025,000 at December 31, 2023[5] - The company had a total accumulated deficit of $4.793 million as of June 30, 2024, compared to an accumulated deficit of $467,000 as of June 30, 2023[8] Cash Flow - The company reported a net cash used in operating activities of $3.772 million for the six months ended June 30, 2024, compared to $833,000 for the same period in 2023, representing a substantial increase in cash outflow[9] - As of June 30, 2024, cash and cash equivalents totaled $10.031 million, down from $13.033 million at the end of June 2023, indicating a decrease of 22.9%[9] - Accounts receivable decreased by $3.045 million in the first half of 2024, compared to an increase of $1.592 million in the same period of 2023, indicating a significant change in cash flow dynamics[9] Revenue Recognition and Contracts - The company has unrecognized contract revenue of approximately $21.6 million at June 30, 2024, expected to be recognized within the next twelve months[35] - The company expects to recognize revenue over time for system sales, which typically take between two to eighteen months to complete, indicating a focus on long-term contracts[14] - The company expects to recognize $2.7 million of contract liabilities as revenue during the six months ended June 30, 2024[37] Segment Performance - The CVD Equipment segment generated revenue of $7.054 million for the six months ended June 30, 2024, down from $8.979 million in the same period of 2023, reflecting a decrease of about 21.4%[56][57] - The CVD Materials segment reported revenue of $114,000 for the six months ended June 30, 2024, a significant decrease from $1.009 million in the same period of 2023[56][57] Shareholder Information - The company had 6,825,338 common shares outstanding as of June 30, 2024, compared to 6,824,511 shares at December 31, 2023[5] - As of June 30, 2024, the diluted weighted average shares outstanding were 6,816,956, compared to 6,778,754 for the same period in 2023[41] Future Outlook - The company anticipates that existing cash and cash equivalents, along with future income from operations, will be adequate to meet its working capital and capital equipment requirements over the next 12 months[13] - The company plans to cease operations of its MesoScribe subsidiary by the end of 2024, with an impairment charge of $0.1 million recorded for certain equipment[59]