Precision Optics (POCI) - 2023 Q3 - Quarterly Report

Revenue Performance - Total revenues for the quarter ended March 31, 2023, were $5,048,065, an increase of 8.5% compared to $4,651,352 for the same period last year [73]. - Total revenues for the nine months ended March 31, 2023, were $16,020,327, reflecting a 47.2% increase from $10,884,737 in the prior year, partly due to the acquisition of the Lighthouse division [74]. - The company generated revenues from 318 unique customers during the nine months ended March 31, 2023, with no single customer exceeding 10% of total revenue [75]. Gross Profit - Gross profit for the quarter ended March 31, 2023, was $1,736,098, with a gross profit margin of 34.4%, down from 37.2% in the prior year [77]. - Gross profit for the nine months ended March 31, 2023, was $5,975,011, representing a 71.4% increase from $3,486,823 in the prior year, with a gross profit margin of 37.3% [77]. Expenses - Research and development expenses for the quarter ended March 31, 2023, were $206,375, a decrease of 4.0% from $214,898 in the prior year, while for the nine months, expenses increased by 52.5% to $660,518 [79]. - Selling, general and administrative expenses for the quarter ended March 31, 2023, were $2,022,991, an increase of 28.4% from $1,574,432 in the prior year [80]. Operating Losses - Operating losses for the quarter ended March 31, 2023, were $493,268, with cumulative operating losses of $1,513,890 and $905,583 for the years ended June 30, 2022, and 2021, respectively [81]. Investment and Financing - The company anticipates continued investment in research and development, particularly in Microprecision optics, micro medical cameras, and 3D endoscopes [69]. - The company has secured a $2,600,000 bank term loan and raised $1,500,000 through common stock sales in connection with the acquisition of Lighthouse Imaging [84]. Capital Expenditures and Commitments - Capital equipment expenditures and additional patent costs for the nine months ended March 31, 2023, totaled $52,411 [85]. - Future capital equipment and patent expenditures will depend on future sales and ongoing research and development success [85]. - Contractual cash commitments for fiscal 2023 include financing lease for equipment of $12,155 and minimum operating lease payments of $45,389, totaling $57,544 [86]. - Total contractual cash commitments thereafter amount to $498,468, including $120,564 for financing leases and $377,904 for operating leases [86]. - Open purchase orders as of March 31, 2023, represent approximately $2,923,320 in contractual cash commitments [86]. Financial Condition - The company currently has no off-balance sheet arrangements that could materially affect its financial condition or results [87]. - As a smaller reporting company, the company is electing scaled disclosure reporting obligations and is not required to provide certain market risk information [88].