Sono-Tek Corporation,(SOTK) a leading provider of precis ion ultrasonic coating systems, has announced its financial results for the quarter ended May 31, 2023. The company reported a net income of $53,406, reflecting its ability to maintain profitability despite challenging market conditions. Additionally, Sono-Tek Corporation generated $3.6 million in revenue during the same period, demonstrating its continued success in delivering innovative solutions to its global customer base.
Consolidated Balance Sheets
The condensed consolidated balance sheets of Sono-Tek Corporation as of May 31, 2023, reveal the following financial position:
Current Assets: The company's cash and cash equivalents increased to $4,294,339 compared to $3,354,601 as of February 28, 2023. Marketable securities amounted to $7,847,008, slightly lower than $8,090,000 in the previous period. Accounts receivable decreased to $1,141,476 from $1,633,866, while inventories rose to $3,755,057 from $3,242,909. Prepaid expenses and other current assets amounted to $189,300, down from $254,046.
Total Assets: Sono-Tek Corporation's total assets reached $20,899,951, an increase from $20,174,718 reported as of February 28, 2023.
Current Liabilities: Accounts payable rose to $933,630 from $810,863, and accrued expenses amounted to $1,339,289, slightly lower than $1,427,446 in the previous period. Customer deposits increased to $3,610,575 from $2,838,165, and income taxes payable decreased to $262,571 from $381,421.
Total Liabilities: Sono-Tek Corporation's total liabilities were $6,164,292, compared to $5,540,760 reported as of February 28, 2023.
Stockholders' Equity: The company's common stock, additional paid-in capital, and accumulated earnings remained relatively stable. The total stockholders' equity stood at $14,735,659, slightly higher than the previous period's $14,633,958.
Consolidated Statements of Income
The condensed consolidated statements of income for the three months ended May 31, 2023, indicate the following financial performance:
Net Sales: Sono-Tek Corporation recorded net sales of $3,603,018 during the quarter, compared to $4,051,535 for the same period in 2022.
Gross Profit: The company's gross profit amounted to $1,777,232, slightly lower than the $2,107,013 reported in the previous year.
Operating Expenses: Sono-Tek Corporation reported operating expenses totaling $1,868,848, higher than the $1,726,488 recorded in the same period last year.
Operating (Loss)/Income: The company experienced an operating loss of ($91,616) for the quarter, in contrast to the operating income of $380,525 reported in the prior year.
Net Income: Sono-Tek Corporation achieved a net income of $53,406, compared to $305,636 for the same quarter in 2022.
Consolidated Statements of Stockholders' Equity
The condensed consolidated statements of stockholders' equity for the three months ended May 31, 2023, illustrate the changes in stockholders' equity:
Common Stock: The common stock remained unchanged at $157,421.
Additional Paid-In Capital: Sono-Tek Corporation's additional paid-in capital increased slightly to $9,615,193 from $9,566,898.
Accumulated Earnings: The company's accumulated earnings rose to $4,963,045 from $4,909,639.
Total Stockholders' Equity: Sono-Tek Corporation's total stockholders' equity amounted to $14,735,659, compared to $14,633,958 in the previous quarter.
Consolidated Statements of Cash Flows:
The condensed consolidated statements of cash flows for the three months ended May 31, 2023, provide insight into the company's cash flow activities:
Operating Activities: Sono-Tek Corporation generated net cash provided by operating activities amounting to $828,092, compared to $431,678 for the same period last year.
Investing Activities: The company reported net cash provided by investing activities of $111,646, lower than the $2,402,876 reported in the prior year.
Net Increase in Cash and Cash Equivalents: Sono-Tek Corporation experienced a net increase in cash and cash equivalents of $939,738, resulting in an ending balance of $4,294,339.
The financial results reflect Sono-Tek Corporation's efforts to maintain profitability and generate revenue in a competitive market. The company's ability to adapt and provide innovative solutions positions it for continued growth and success in the future.