Profire(PFIE) - 2022 Q2 - Quarterly Report

Revenue and Profitability - Total revenues for the quarter ended June 30, 2022, increased by 60% or $3,598,864 compared to the same quarter in 2021, driven by improved customer demand, rising oil prices, and increased rig counts [84]. - Gross profit margin for Q2 2022 was 45.7%, up 1.7% from the same quarter last year, benefiting from increased revenue despite inflationary cost pressures [85]. - Net income for the quarter was $284,829, compared to a net loss of $397,166 in Q2 2021, reflecting improved operational performance [87]. Expenses and Costs - Operating expenses increased by $1,056,169 year-over-year, primarily due to headcount increases and cost inflation [86]. Cash Flow and Working Capital - Operating cash flows increased by $621,690 during Q2 2022 compared to the same quarter in 2021, mainly due to changes in working capital [87]. - Working capital as of June 30, 2022, was $20,310,499, slightly down from $20,510,600 at the end of 2021 [88]. - The company generated $621,690 in cash from operating activities during the first half of 2022, influenced by increases in accounts payable and accrued liabilities [89]. - As of June 30, 2022, the company held $16,501,264 in cash and investments, representing its core excess liquidity [89]. - The company has not engaged in any off-balance sheet arrangements and does not plan to do so in the foreseeable future [90]. Market Conditions - The average oil price during the quarter was $108.83 per barrel, a 64% increase from $66.19 per barrel in the same period last year, while the average Henry Hub natural gas price rose by 154% [84].