Laser Photonics (LASE) - 2021 Q2 - Quarterly Report

Revenue and Income - Revenue for the three months ended June 30, 2021, was $914,492, an increase of $354,641 (63.3%) compared to $559,851 for the same period in 2020[98] - Net income for the three months ended June 30, 2021, was $324,191, or earnings per share of $0.01, compared to net income of $138,104, or earnings per share of $0.04, for the same period in 2020[108] - Revenue for the six months ended June 30, 2021, was $1,890,517, an increase of $1,535,876 (208.4%) compared to $737,776 for the same period in 2020[110] - Net income for the six months ended June 30, 2021, was $506,234, or earnings per share of $0.02, compared to a net loss of $(17,022), or loss per share of $(0.01), for the same period in 2020[118] Gross Margin and Profit - Gross margin for the three months ended June 30, 2021, was $750,737, up from $347,016 in the same period in 2020, reflecting an increase of $403,721 (116.4%) due to higher revenue and lower cost of goods sold[104] - Gross profit for the six months ended June 30, 2021, was $1,374,725, compared to $468,147 in 2020, reflecting increased revenue and a relative decline in cost of goods sold[113] Operating Expenses - Operating expenses for the three months ended June 30, 2021, were $410,334, an increase of $201,422 (96.3%) compared to $208,912 for the same period in 2020, primarily due to increased selling and marketing expenses[105] - Operating expenses for the six months ended June 30, 2021, totaled $835,970, up from $485,169 in 2020, with a significant increase in selling and marketing expenses[114] - Payroll expenses for the three months ended June 30, 2021, were $341,995, up from $200,376 in 2020, indicating a significant increase in workforce costs[115] - Selling, general, and administrative expenses are expected to decline as a percentage of net sales over time as net sales increase[115] Cost of Goods Sold - Cost of goods sold for the three months ended June 30, 2021, was $163,755, a decrease of $49,080 (23.1%) from $212,835 for the same period in 2020[102] - For the six months ended June 30, 2021, the cost of goods sold was $515,792, an increase from $269,629 for the same period in 2020, primarily due to increased sales volume[111] Cash Flow and Working Capital - Net cash provided by operating activities for the six months ended June 30, 2021, was $200,783, compared to a net cash used of $(223,169) for the same period in 2020[92] - Working capital increased to $2,830,866 as of June 30, 2021, from $2,226,388 at December 31, 2020, representing an increase of $604,478 (27.1%)[91] Company Developments and Financial Position - The company is developing the Laser Tower™ material processing family of equipment to make laser processing affordable for over a million small and mid-sized companies[85] - The company anticipates a majority of the Paycheck Protection Program loan amount of $397,500 will be forgiven, which is crucial for maintaining liquidity[89] - The company had no off-balance sheet arrangements as of June 30, 2021, indicating a straightforward financial position[119] - Other income for the six months ended June 30, 2021, included interest expense, primarily due to an increase in loans from ICT Investments[117] - The company is classified as a "smaller reporting company" and is not required to provide certain market risk disclosures[120]