Financial Performance - Net sales for the three months ended September 30, 2024, were $7,866,355, an increase of 19.2% compared to $6,600,525 for the same period in 2023[7] - Gross profit for the three months ended September 30, 2024, was $1,833,720, slightly down from $1,844,058 in the same period of 2023, reflecting a gross margin of 23.3%[7] - The company reported a net loss of $13,289 for the three months ended September 30, 2024, compared to a net income of $353,980 for the same period in 2023[7] - Total revenue for the three months ended September 30, 2024, was $7,866,355, a 19.2% increase from $6,600,525 in the same period of 2023[32] - For the nine months ended September 30, 2024, total revenue reached $21,128,263, slightly down by 0.2% compared to $21,177,257 in the same period of 2023[32] - Net loss for 2024 was $(940,589), compared to a net income of $974,767 in 2023[13] Expenses and Costs - The cost of goods sold for the nine months ended September 30, 2024, was $16,412,773, compared to $15,244,863 for the same period in 2023, indicating a year-over-year increase of 7.7%[7] - General and administrative expenses for the three months ended September 30, 2024, increased to $1,727,480 from $1,314,885 in the same period of 2023, representing a rise of 31.4%[7] - Cash paid for interest in 2024 was $459,994, compared to $451,580 in 2023[13] - Cash paid for taxes in 2024 was $568,143, significantly higher than $118,616 in 2023[13] - Depreciation expenses for the three months ended September 30, 2024, were approximately $722,000, compared to $692,000 for the same period in 2023[35] - Total lease cost for the three months ended September 30, 2024, was $76,801, compared to $4,236 for the same period in 2023[46] Assets and Liabilities - Total assets as of September 30, 2024, were $12,123,153, a decrease from $13,063,742 as of December 31, 2023[9] - The company’s retained earnings decreased to $10,192,280 as of September 30, 2024, down from $11,132,869 as of December 31, 2023[9] - Inventory as of September 30, 2024, totaled $7,560,983, an increase of 29.5% from $5,834,109 at the end of 2023[34] - Long-term debt as of September 30, 2024, was $3,232,905, up from $2,441,067 in 2023, reflecting a 32.4% increase[41] - The company had $6,063,863 outstanding under its line of credit as of September 30, 2024, down from $6,537,592 at the end of 2023[39] - The present value of lease obligations as of September 30, 2024, was $2,072,986, with total undiscounted lease obligations amounting to $2,492,686[49] Revenue Segments - Consumer segment revenue for the three months ended September 30, 2024, was $961,058, a decrease of 41.6% from $1,646,128 in 2023[33] - Communication segment revenue increased significantly to $2,305,316 for the three months ended September 30, 2024, compared to $492,439 in 2023, marking a 367.5% growth[33] - Medical segment revenue for the nine months ended September 30, 2024, was $6,972,517, down 9.5% from $7,702,227 in the same period of 2023[33] Shareholder Information - The weighted average number of common shares outstanding was 36,688,266 for both the three and nine months ended September 30, 2024[7] - The net income (loss) per common share for the three months ended September 30, 2024, was $(0.00), compared to $0.01 for the same period in 2023[7] - The company has 14,107,989 warrants outstanding as of September 30, 2024, with an exercise price of $11.50 per share[50] - The company has reserved 2,773,972 shares for the 2023 Equity Incentive Plan, approved by the Board of Directors[56] - The company plans to issue up to 2,000,000 shares as Performance-based Earnout based on achieving specific revenue and EBITDA targets[57] Operational Changes - The merger between OmniLit Acquisition Corporation and Legacy Syntec was completed on November 7, 2023, resulting in Legacy Syntec becoming a wholly owned subsidiary of New Syntec[15] - The historical financial statements of Legacy Syntec became the basis for New Syntec's financial statements post-merger[16] - The company recognizes revenue primarily from three categories: products, custom tooling, and non-recurring engineering services[24] Accounts Receivable - Accounts receivable increased by $845,314 in 2024, while inventory decreased by $(2,010,070)[13] - Accounts receivable balance as of January 1, 2024, was $6,800,064, up from $5,925,724 in 2023[29] - The outstanding accounts receivable from significant customers was approximately $3,622,000 as of September 30, 2024[61] - Deferred revenue balance as of January 1, 2024, was $0, down from $348,095 in 2023[29] Tax Information - The effective income tax rate for the nine months ended September 30, 2024, was 29.17%, compared to 12.52% for the same period in 2023[45] Future Projections - Future lease liabilities for 2025 are projected at $432,009[49] - The weighted average discount rate for finance leases as of September 30, 2024, was 8.40%[48]
Syntec Optics (OPTX) - 2024 Q3 - Quarterly Report