Sono-Tek (US:SOTK)2026-01-13 14:44Financial Performance - Total net sales for the nine months ended November 30, 2025, were $15,299,839, a slight decrease of 0.5% compared to $15,383,416 for the same period in 2024[13] - Gross profit for the nine months ended November 30, 2025, increased to $7,766,492, representing a gross margin of 50.8%, compared to $7,313,783 and a margin of 47.6% in 2024[13] - Operating income for the nine months ended November 30, 2025, was $1,223,494, up 69.5% from $721,923 in the same period last year[13] - Net income for the nine months ended November 30, 2025, was $1,248,637, an increase of 32.1% compared to $945,700 in 2024[13] - Basic earnings per share for the nine months ended November 30, 2025, were $0.08, compared to $0.06 for the same period in 2024[13] Cash and Liquidity - Cash and cash equivalents as of November 30, 2025, were $5,395,695, up from $5,202,361 as of February 28, 2025[11] - Total current assets increased to $20,093,512 as of November 30, 2025, compared to $18,988,465 as of February 28, 2025, reflecting a growth of 5.8%[11] - Cash and cash equivalents at the end of the period were $5,395,695, down from $8,098,750 at the end of the previous year, reflecting a decrease of approximately 33%[20] - The company generated net cash provided by operating activities of $109,661 for the nine months ended November 30, 2025, a significant decrease from $1,199,318 in the prior year[20] Assets and Liabilities - Total liabilities decreased to $4,798,194 as of November 30, 2025, from $5,619,441 as of February 28, 2025, a reduction of 14.6%[11] - Total stockholders' equity rose to $19,132,420 as of November 30, 2025, compared to $17,792,195 as of February 28, 2025, indicating an increase of 7.5%[11] - The company’s total assets increased from $16,278,998 on February 29, 2024, to $19,132,420 on November 30, 2025, indicating a growth of approximately 17%[18] Research and Development - Research and product development costs for the nine months ended November 30, 2025, were $1,934,109, a decrease of 5.8% from $2,054,846 in 2024[13] - Research and product development expenses for the nine months ended November 30, 2025, were $1,934,000, compared to $2,055,000 in 2024[67] Inventory and Receivables - The company’s inventory reserve increased to $45,927 from $32,524 year-over-year, representing a rise of approximately 41%[20] - The company’s accounts receivable increased significantly by $2,063,899 compared to $808,594 in the prior year, indicating a rise of approximately 155%[20] - The Company’s inventories totaled $3,656,898 as of November 30, 2025, down from $4,474,401 as of February 28, 2025, representing a decrease of approximately 18.3%[51] Sales and Revenue - Total sales revenue for the three months ended November 30, 2025, was $5,004,000, a decrease from $5,191,000 in the same period of 2024[50] - For the nine months ended November 30, 2025, total sales revenue was $15,300,000, compared to $15,383,000 for the same period in 2024[50] - Export sales to foreign customers for the nine months ended November 30, 2025, totaled $5,626,000, accounting for 37% of total revenues[63] Customer Concentration - One customer accounted for 38% of sales during the first nine months of fiscal 2026, indicating significant customer concentration risk[64] Stock and Compensation - The weighted average grant date fair value of stock options granted during the nine months ended November 30, 2025, was $3.26 per share[56] - The company reported stock-based compensation expenses of $232,097 for the nine months ended November 30, 2025, compared to $176,076 for the same period in 2024, marking a 32% increase[20] Tax and Regulatory - The company plans to leverage the changes introduced by the One Big Beautiful Bill Act to enhance its tax position and reduce current tax payable for capital expenditures in fiscal year 2026[33]