CVD(US:CVV)2021-08-15 16:00Financial Performance - Total revenue for the three months ended June 30, 2021, was $4,034,408, an increase of 8.5% compared to $3,718,884 for the same period in 2020[14] - Gross profit for the six months ended June 30, 2021, was $1,164,242, compared to $2,537,039 for the same period in 2020, reflecting a decrease of 54%[14] - Operating loss for the three months ended June 30, 2021, was $(1,082,924), compared to $(1,132,254) for the same period in 2020, showing a slight improvement[14] - Net income for the three months ended June 30, 2021, was $1,470,425, compared to a net loss of $(1,134,429) for the same period in 2020[14] - For the six months ended June 30, 2021, the company reported a net loss of $35,125 compared to a net income of $524,049 for the same period in 2020[20] - Total revenue for 2021 was $7,400,000, a decrease from $9,755,000 in 2020, representing a decline of approximately 24.4%[88] - Operating loss for 2021 was $(2,702,000), compared to an operating loss of $(1,024,000) in 2020, indicating a worsening performance[88] - The company reported a pretax loss of $(34,000) for 2021, a significant decline from a pretax loss of $(1,006,000) in 2020[88] Assets and Liabilities - Total current assets increased significantly to $26,256,158 as of June 30, 2021, from $11,789,957 as of December 31, 2020[11] - Total liabilities decreased to $14,716,706 as of June 30, 2021, from $16,810,353 as of December 31, 2020[11] - Current assets as of June 30, 2021, were adjusted to $23,941,022 after the sale of the 555 Building, down from $26,256,158[94] - Total liabilities decreased to $5,451,300 post-sale, reflecting the payoff of the mortgage related to the 555 Building[94] - Stockholders' equity increased to $31,153,168 following the sale, with retained earnings improving to $4,012,247[94] Cash Flow and Investments - The company experienced a significant cash outflow from operating activities, totaling $1,850,873 for the six months ended June 30, 2021, compared to $510,043 in the prior year[20] - The total cash and cash equivalents decreased from $7,699,335 at the beginning of the period to $5,387,896 at the end of the period[20] - Cash flows from investing activities included capital expenditures of $(118,471) for the six months ended June 30, 2021[20] - The company recorded a gain on debt extinguishment of $2,443,418 due to the forgiveness of a Paycheck Protection Program loan[61] - The company sold its facility at 555 North Research Place for $24,360,000, resulting in net proceeds of approximately $14,000,000 after settling existing mortgage debt[26] Research and Development - Research and development expenses for the three months ended June 30, 2021, were $128,512, up from $96,108 in the same period of 2020, indicating a 33.6% increase[14] - The company has decided to eliminate further investment in the Tantaline product line due to forecasted continued losses and negative cash flows[26] - The company recorded an impairment charge of $3.6 million related to Tantaline long-lived assets during the fourth quarter of 2020[26] Stock and Equity - The company reported a basic income per share of $0.22 for the three months ended June 30, 2021, compared to a loss of $(0.17) for the same period in 2020[14] - The company granted 150,000 stock options during the six months ended June 30, 2021, with a vesting schedule of 25% per year over four years[68] - As of June 30, 2021, the company has a total of 560,000 outstanding stock options, of which 390,000 were exercisable[70] - The total unrecognized compensation costs related to stock options as of June 30, 2021, amounted to $385,960, expected to be recognized over a weighted average period of 3.9 years[72] - The company granted 42,800 restricted stock awards during the six months ended June 30, 2021, with 38,054 shares unvested at the end of the period[73] - The total fair value of vested restricted stock units was $29,700 for the six months ended June 30, 2021[75] Customer Concentration and Revenue Recognition - Revenue concentration was notable, with one customer representing 18.0% of total revenues for the six months ended June 30, 2021[39] - As of June 30, 2021, two customers accounted for 20.2% of the accounts receivable balance, down from 35.0% at December 31, 2020[40] - The company has unrecognized contract revenue of approximately $3.2 million expected to be recognized within the next twelve months[48] - Contract assets increased by approximately $0.6 million during the six months ended June 30, 2021, compared to an increase of $0.4 million in the same period of 2020[51] COVID-19 Impact - The company continues to monitor the impact of COVID-19 on its operations and financial condition, with ongoing evaluations of government assistance programs[89] - The company plans to evaluate government-sponsored plans related to COVID-19 to leverage available benefits[89] - New orders in Q2 2021 were approximately $6,000,000, showing a recovery compared to the substantial reductions experienced in early 2020 due to COVID-19[89]