CVD(CVV) - 2024 Q3 - Quarterly Report

Revenue Performance - Total revenue for the three months ended September 30, 2024, was $8,194,000, representing a 31.7% increase from$ 6,234,000 in the same period of 2023[7]. - For the nine months ended September 30, 2024, consolidated revenue was $19,462,000, a decrease from$ 19,998,000 in the same period of 2023[70]. - The CVD Equipment segment reported revenue of $5,681,000 for the three months ended September 30, 2024, compared to$ 4,795,000 in the same period of 2023, representing a growth of 18.5%[66]. - Revenue for the CVD Equipment segment in Q3 2024 was $5,681,000, compared to$ 4,795,000 in Q3 2023, reflecting an increase of 18.43%[66]. - For the three months ended September 30, 2024, total revenue was $8.194 million, with$ 6.263 million recognized over time and $1.931 million recognized at a point in time[40]. - For the nine months ended September 30, 2024, total revenue was$ 19.462 million, with $15.788 million recognized over time and$ 3.674 million recognized at a point in time[42]. Profitability - Net income for the three months ended September 30, 2024, was $203,000, compared to a net loss of$ 753,000 in the same period of 2023[7]. - The company reported a gross profit of $1.835 million for the three months ended September 30, 2024, compared to$ 1.598 million for the same period in 2023, indicating an increase of approximately 14.8%[7]. - The CVD Materials segment reported an operating income of $1,104,000 for the three months ended September 30, 2024, compared to an operating loss of$ (35,000) in the same period of 2023, a significant turnaround[66]. - The company recorded an operating loss of $736,000 for the CVD Equipment segment in Q3 2024, compared to an operating loss of$ 323,000 in Q3 2023[66]. - The company reported a net loss of $2,030,000 for the nine months ended September 30, 2024, compared to a net loss of$ 1,906,000 for the same period in 2023, indicating a year-over-year increase in losses of approximately 6.5%[10]. Expenses and Costs - Gross profit for the nine months ended September 30, 2024, was $4,304,000, down 20.5% from$ 5,419,000 in the same period of 2023[7]. - Research and development expenses for the nine months ended September 30, 2024, increased to $2,055,000, up 10.2% from$ 1,865,000 in the same period of 2023[7]. - Stock-based compensation increased to $801,000 for the nine months ended September 30, 2024, up from$ 647,000 in the same period of 2023, representing a growth of approximately 24%[10]. - The company recognized a provision for excess and obsolete inventory amounting to $1,253,000 for the nine months ended September 30, 2024, compared to$ 197,000 in the same period of 2023, indicating a significant increase in inventory-related concerns[10]. - The company recorded a depreciation and amortization expense of $476,000 for the third quarter of 2024, down from$ 545,000 in the same quarter of 2023[10]. Assets and Liabilities - Total current assets decreased to $19,927,000 as of September 30, 2024, from$ 22,841,000 as of December 31, 2023, a decline of 12.6%[5]. - Total liabilities decreased to $6,872,000 as of September 30, 2024, from$ 8,822,000 as of December 31, 2023, a reduction of 22.0%[6]. - The company reported a total stockholders' equity of $24,974,000 as of September 30, 2024, down from$ 26,203,000 as of December 31, 2023[6]. - The total assets decreased from $35.025 million as of December 31, 2023, to$ 31.846 million as of September 30, 2024, reflecting a decline of approximately 9.4%[5][6]. - Cash and cash equivalents decreased to $10,005,000 as of September 30, 2024, from$ 14,025,000 as of December 31, 2023, a decline of 28.6%[5]. Cash Flow - Net cash used in operating activities was $3,740,000 for the third quarter of 2024, compared to only$ 76,000 in the same quarter of 2023, highlighting a substantial increase in cash outflow[10]. - The company anticipates that its existing cash and cash equivalents, along with future income from operations, will be sufficient to meet its working capital and capital equipment requirements over the next 12 months[15]. - The company experienced a net cash used in operating activities of $3,740,000 for the nine months ended September 30, 2024, compared to only$ 76,000 for the same period in 2023, indicating a significant increase in cash outflow[10]. Shareholder Information - The company had 6,881,838 shares outstanding as of September 30, 2024, an increase from 6,824,511 shares as of December 31, 2023[6]. - Basic weighted average common shares outstanding for the three months ended September 30, 2024, were 6,825,495, compared to 6,789,487 for the same period in 2023[52]. - The balance of common shares increased to 6,881,838 as of September 30, 2024, from 6,820,655 as of September 30, 2023, reflecting an increase of approximately 0.9%[8]. Inventory Management - Inventories decreased from $4.454 million at December 31, 2023, to$ 2.558 million at September 30, 2024, with a non-cash charge of approximately $1.0 million recorded to reduce the net realizable value of inventory[48][49]. - The company recorded a non-cash charge of approximately$ 1.0 million to reduce the net realizable value of inventory based on current market assessments[49]. - Total inventories decreased from $4.454 million as of December 31, 2023, to$ 2.558 million as of September 30, 2024[48]. Segment Performance - The company recorded a net gain of $625,000 on the sale of equipment during the nine months ended September 30, 2024[7]. - MesoScribe subsidiary generated revenues of$ 0.7 million and a net loss of $1.1 million for the three months ended September 30, 2024, with total assets of$ 0.8 million and total liabilities of $0.1 million[78]. - The company recorded a net gain of$ 0.6 million from the sale of MesoScribe equipment during the three and nine months ended September 30, 2024[76].