Financial Performance - As of December 31, 2023, Syntec Optics reported a net income of $2.0 million, a significant increase from a net loss of $0.43 million in 2022[208]. - Net sales increased by $1.6 million, or 5.8%, to $29.4 million for the year ended December 31, 2023, compared to $27.8 million in 2022[227]. - Gross profit rose by $1.8 million, or 29.5%, to $7.9 million for the year ended December 31, 2023, compared to $6.1 million in 2022[229]. - Net income increased by $2.4 million, or 568.1%, to $2.0 million for the year ended December 31, 2023, compared to a loss of $0.4 million in 2022[234]. - Adjusted EBITDA increased to $5.3 million for the year ended December 31, 2023, compared to $4.5 million in 2022[240]. - Net cash provided by operating activities was $2.8 million for the year ended December 31, 2023, compared to $1.9 million in 2022[245]. - Net cash used in investing activities increased to $1.9 million for the year ended December 31, 2023, compared to $0.7 million in 2022[246]. - Other income (expense) decreased by $0.2 million, or 364.1%, to ($0.3) million for the year ended December 31, 2023, compared to ($0.1) million in 2022[232]. - Income tax expense decreased by $0.5 million, or 359.8%, to ($0.7) million for the year ended December 31, 2023, compared to ($0.2) million in 2022[233]. Cash and Funding - The company had cash totaling $2.2 million as of December 31, 2023, and does not expect to raise additional funds for ongoing costs[208]. - As of December 31, 2023, the company had cash totaling $2.2 million, which is expected to meet working capital and capital expenditure requirements for at least twelve months[241]. Market and Growth Strategy - Syntec Optics expanded into the communications end market in 2023, aiming to grow its portfolio in sensing applications as well[204][213]. - The optics and photonics market is estimated to enable 11% of the global economy, highlighting significant growth potential for Syntec Optics[205]. - Syntec Optics plans to continue consolidating the fragmented photonics industry through strategic acquisitions and expanding its manufacturing capabilities[213]. Manufacturing and Operations - The company has a vertically integrated manufacturing platform, allowing for high-precision production and a variety of advanced manufacturing techniques[201]. - The company’s manufacturing facility in Rochester, New York, spans nearly 90,000 square feet, enhancing production capacity and efficiency[203][217]. - The company has experienced supply chain disruptions but has managed to mitigate impacts through inventory management and strategic supplier relationships[214][215]. Customer Concentration - In 2023, three customers accounted for 53% of revenues, indicating a concentration in customer base that may affect revenue stability[216]. Innovation and Intellectual Property - Syntec Optics has over 4 issued and/or pending patents, reflecting its commitment to innovation in optics and photonics technologies[200]. Inventory and Accounting - As of December 31, 2023, the reserve for obsolete inventory was approximately $0.3 million, an increase from $0.2 million as of December 31, 2022[254]. - The company continually analyzes slow-moving and excess inventories based on historical and projected sales volumes[254]. - The estimated useful lives for various classes of property and equipment range from 3 to 15 years[255]. - The company adopted ASU 2016-13 on January 1, 2023, which did not have a material impact on its consolidated financial statements[255]. - Syntec Optics has elected to delay the adoption of certain accounting standards as an emerging growth company under the JOBS Act[257]. Revenue Recognition and Customer Terms - Payment terms for customers are typically 50% upfront and 50% on delivery of the first article[253]. - The company recognizes revenue when control of the promised goods is transferred to the customer, reflecting the expected consideration[251]. - The company has not experienced significant credit risk and uses an assumed dividend yield of zero as it has never paid dividends[259].
OMNILIT ACQUISIT(OLIT) - 2023 Q4 - Annual Report