Revenue Performance - Revenue for Q3 2020 was $3,922,746, an increase of $740,149 or 23.3% compared to Q3 2019[78] - Revenue for the first nine months of 2020 was $10,803,897, an increase of $2,738,060 or 33.9% compared to $8,065,837 in the same period of 2019[85] Professional Fee and Software Revenue - Professional fee revenue increased by $692,022 or 77.9% to $1,580,684 in Q3 2020, driven by new contracts[78] - Professional fee revenue increased by $941,099 or 39.0% to $3,353,508 in 2020, while software revenue rose by $1,796,961 or 31.8% to $7,450,389[85] Gross Profit and Expenses - Gross profit for Q3 2020 was $614,328, representing 15.7% of revenue, up from 12.1% in Q3 2019[79] - Gross profit for the first nine months of 2020 was $1,282,171, representing 11.9% of revenue, down from 13.2% in 2019[86] - Selling, general and administrative expenses decreased by $124,889 or 26.7% to $342,778, representing 8.7% of revenues in Q3 2020[80][81] - Selling, general and administrative expenses decreased by $431,933 or 29.2% to $1,049,761, accounting for 9.7% of revenues in 2020[87] Net Income - Net income for Q3 2020 was $214,703, or 5.5% of revenue, compared to a net loss of ($179,224) in Q3 2019[83] - Net income for the nine months ended September 30, 2020, was $53,744, or 0.5% of revenue, compared to a net loss of ($578,679) or (7.2%) in 2019[89] Cash Flow and Financial Position - Net cash provided by operating activities was $38,569, with an overall increase in cash and cash equivalents of $429,929, totaling $1,469,371 at September 30, 2020[90] - The company received a Paycheck Protection Program loan of $450,000 to support employee payroll and benefits, with plans to apply for forgiveness[92] - The company has a revolving line of credit of up to $1,000,000, with no amounts outstanding as of September 30, 2020[91] - The company anticipates being able to meet its cash requirements for at least one year from the filing date of the Quarterly Report[93] Strategic Focus and Market Conditions - The company is refocusing its strategy to pursue targeted markets and explore growth through strategic acquisitions[69] - The commencement of delayed contracts, including a significant subcontract, positively impacted revenue and net income[84] - The company recognizes the urgent need for IT modernization in federal and state agencies due to challenges highlighted by the coronavirus pandemic[68] Revenue Concentration Risks - Prime contracts with U.S. government agencies generated 54.1% of revenue in Q3 2020, while subcontracts generated 44.8%[71] - One software sales contract accounted for 12.1% of total revenue in Q3 2020, highlighting revenue concentration risks[71] Internal Control - There were no changes in the company's internal control over financial reporting that materially affected its effectiveness during the quarter ended September 30, 2020[98]
Firefly Neuroscience, Inc.(AIFF) - 2020 Q3 - Quarterly Report