For Immediate Release
LightPath Technologies Reports Financial Results for
Fiscal 2021 First Quarter
Record First Quarter Revenue; Order Backlog Up From Prior
Year;
Manufacturing Capacity Added
ORLANDO,
FL – November 5, 2020 – LightPath
Technologies, Inc. (NASDAQ: LPTH) (“LightPath,”
the “Company,” or “we”), a leading
vertically integrated global
manufacturer and integrator of
proprietary optical
and infrared components and high-level
assemblies, today announced its financial results for its
fiscal 2021 first quarter ended September 30, 2020.
Fiscal 2021 First Quarter Highlights:
●
Revenue for the
first quarter of fiscal 2021 was $9.5 million, an increase of 26%,
as compared to $7.6 million in the first quarter of fiscal
2020.
●
Total backlog
increased 26% to $20.9 million at September 30, 2020, compared to
$16.6 million at September 30, 2019.
●
Gross margin as a
percentage of revenue for the first quarter of fiscal 2021 was 40%,
compared to 32% in the first quarter of fiscal 2020.
●
Net income for the
first quarter of fiscal 2021 was $97,000, compared to a net loss of
$1.4 million in the first quarter of fiscal 2020.
●
EBITDA* for the
first quarter of fiscal 2021 was $1.4 million, compared to an
EBITDA loss of $236,000 in the first quarter of fiscal
2020.
●
Capital
expenditures were approximately $1.2 million for the first quarter
of fiscal 2021, compared to $257,000 for the first quarter of
fiscal 2020.
●
Total debt,
including finance leases, was reduced by 5% or approximately
$308,000 in the first quarter of fiscal 2021, from June 30,
2020.
●
Cash and cash
equivalents of $5.4 million at September 30, 2020 was consistent
with the balance as of June 30, 2020.
* This
press release includes references to non-GAAP financial measures.
Please see the heading “Use of Non-GAAP Financial
Measures” below for a more complete explanation.
Management Comments
Sam
Rubin, President and Chief Executive Officer of LightPath, stated,
“Strong performance in the first quarter of fiscal 2021
reflects our continued trajectory of growth. Our growth and strong
performance can be seen both sequentially, compared to the fourth
quarter of fiscal 2020, as well as compared to the first quarter of
last fiscal year, in which we suffered from significant operational
challenges that impacted results in that quarter. Despite the
coronavirus (“COVID-19”) pandemic, which has disrupted
supply chains and caused economic upheaval beyond the toll on
global health conditions, we have been able to deliver strong
results and have positioned the Company for more profitable and
longer-term growth. I would like to commend our global staff for
their continued efforts to support our customers while adhering to
health and safety protocols to protect our co-workers and their
families.
“We
are pleased to announce strong growth in first quarter revenue of
$9.5 million, an increase of 26% from the first quarter of fiscal
2020 and 4% higher on a sequential basis from the fourth quarter of
fiscal 2020. Revenue growth occurred in most of our key product
categories as diversification remains a competitive strength for
LightPath. Most notable has been the demand for our precision
molded optics (“PMO”) lenses for the 5G infrastructure
buildout and from our vertically integrated manufacturing platform
for infrared optics and optical assemblies made with our own BD6
material. We shipped approximately 1.3 million lenses in the first
quarter, another record for the Company, which is an increase of
105% from 0.6 million in the first quarter of last year and 9% from
1.2 million in the previous quarter.
“Though
we have added capacity in recent months, we remain capacity
constrained amid the growth in both revenue and total backlog, each
of which has increased 26% as of September 30, 2020, as compared to
September 30, 2019. Production capacity increased by 9% from the
fourth quarter of fiscal 2020 as we began to bring online
additional molding equipment which we began acquiring late in the
third quarter of fiscal 2020, when we first began experiencing
outsized demand. To further address the capacity constraints, we
have been focusing on production efficiencies and other capital
investments. Capital expenditures are targeted at $2.5 million for
fiscal 2021 but expenditures will continue to be evaluated as we
balance the potential for further growth and efficiency
improvements against expansion of our backlog, which may compel us
to make additional investments. The period of time from investment
to revenue generation varies by the type of equipment acquired and
the timing of deployment.
“Continuous
improvement through operational excellence, which is just one of
the priorities identified as part of our new strategic direction,
has already made an impact. Coinciding with our capital expenditure
strategy, our profitability enhancement and production efficiency
initiatives are intended to generate higher margins. Gross margin
for the first quarter of fiscal 2021 improved more than 150 basis
points from the fourth quarter of fiscal 2020. EBITDA increased to
$1.4 million for the fiscal 2021 first quarter, from a loss of
$236,000 in the same period of the prior fiscal year. Compared to
the fourth quarter of fiscal 2020, the decrease in EBITDA from $1.7
million to $1.4 million in the first quarter of fiscal 2021 was
primarily due to an unfavorable difference in foreign currency
transaction gains and losses of approximately $250,000, which is
not within our control.
“The
results announced today reflect continued sales growth, improving
manufacturing efficiencies and ongoing management of expenses. Our
disciplined cash management has allowed us to hold a consistent
cash balance of approximately $5.4 million during the first quarter
of fiscal 2021, despite the increase in capital expenditures, while
further reducing our total debt. We are pleased with the progress
made in the first quarter of fiscal 2021 and are upbeat about
future results and implementation of a strategy based on our
strengths and our core capabilities to address the largest and
fastest growing trends in our industry for visible and infrared
optical solutions.”
Financial Results for the Three Months Ended September 30, 2020,
Compared to the Three Months Ended September 30, 2019
Revenue
for the first quarter of fiscal 2021 was approximately $9.5
million, an increase of $2 million, or 26%, as compared to $7.6
million in the same period of the prior fiscal year. Sales of
infrared (“IR”) products comprised 50% of the
Company’s consolidated revenue in the first quarter of fiscal
2021, as compared to 52% of consolidated revenue in the same period
of the prior fiscal year. Visible PMO product sales represented 45%
of consolidated revenues in the first quarter of fiscal 2021, as
compared to 42% in the same period of the prior fiscal year.
Specialty products continue to be a small component of the
Company’s business, representing 5% of consolidated revenue
in the first quarter of fiscal 2021, as compared to 6% in the same
period of the prior fiscal year.
Revenue
generated by IR products was approximately $4.7 million in the
first quarter of fiscal 2021, an increase of 19%, as compared to
$4.0 million in the same period of the prior fiscal year. The
increase is primarily due to greater demand for molded IR products,
including lenses made with LightPath’s new BD6 material. The
increased demand for molded IR products continues to be driven in
large part by fever detection products as a result of the ongoing
COVID-19 pandemic. Demand for industrial applications, firefighting
and other public safety applications also continues to be strong.
Sales of diamond-turned infrared products also increased as
compared to the first quarter of fiscal 2020, primarily due to the
timing of order shipments against a large-volume annual contract,
for which shipments were lower in the first quarter of fiscal
2020.
Revenue
generated by PMO products was approximately $4.3 million for the
first quarter of fiscal 2021, an increase of $1.1 million, or 35%,
as compared to $3.2 million in the same period of the prior fiscal
year. The improvement in revenue is attributed to an increase in
sales to customers in the telecommunications market related to 5G
infrastructure equipment, as well as demand from the commercial and
defense markets. Catalog and distribution sales, which had
decreased in recent quarters due to the impact of COVID-19 on
colleges and universities, increased sequentially from the previous
quarter, and were similar to the first quarter of fiscal
2020.
Revenue
generated by specialty products was approximately $491,000 in the
first quarter of fiscal 2021, an increase of $83,000, or 20%, as
compared to $408,000 in the same period of the prior fiscal year.
This increase is primarily related to growth in sales of collimator
assemblies to customers in the industrial and commercial
markets.
Gross
margin in the first quarter of fiscal 2021 was approximately $3.9
million, an increase of 61% as compared to approximately $2.4
million in the same period of the prior fiscal year. Total cost of
sales was approximately $5.7 million for the first quarter of
fiscal 2021, compared to $5.2 million for the same period of the
prior fiscal year. The increases in gross margin and cost of sales
are primarily driven by the growth in revenue. Gross margin as a
percentage of revenue was 40% for the first quarter of fiscal 2021,
compared to 32% for the first quarter of fiscal 2020. The increase
in gross margin as a percentage of revenue is primarily due to
higher revenue and volumes across all product groups. In addition,
there were several factors that negatively impacted the first
quarter of fiscal 2020, such as increased tariffs, the impacts of
which have since been mitigated. The Company continues to improve
yields on BD6 products, which contributed to higher costs and lower
margins during the first quarter of fiscal 2020. Volumes continue
to increase for BD6-based infrared molded products, and margins are
expected to continue to improve as these products mature. In
addition, development efforts to convert certain germanium-based
diamond-turned infrared products to BD6 material are ongoing, which
is expected to further improve infrared margins over
time.
During the first quarter of fiscal 2021, total operating expenses
were approximately $3.2 million, an increase of $168,000 million,
or 6%, as compared to $3.0 million in the same period of the prior
fiscal year. Selling, general and administrative
(“SG&A”) costs increased by approximately $99,000,
or 4%, as compared to the same period of the prior fiscal year. The
change is due to personnel-related costs associated with a moderate
increase in headcount, as well as additional outside consulting
services for projects related to operational improvements. New
product development costs increased by approximately $22,000, or
5%, primarily due to additional engineering support to accommodate
the demand for optical design.
Interest
expense, net, was approximately $59,000 in the first quarter of
fiscal 2021, as compared to approximately $99,000 in the same
period of the prior fiscal year. The decrease in interest expense
is primarily due to the paydown of principal and lower interest
rates compared to the first quarter of fiscal 2020.
During
the first quarter of fiscal 2021, the Company recorded income tax
expense of $435,000, as compared to $148,000 in the same period of
the prior fiscal year, primarily related to income taxes on the
income generated by one of the Company’s Chinese
subsidiaries, LightPath Optical Instrumentation (Zhenjiang) Co.,
Ltd (“LPOIZ”). Income taxes for the first quarter of
fiscal 2021 also included Chinese withholding taxes of $300,000
associated with the intercompany dividend declared by LPOIZ during
the first quarter. While this repatriation transaction resulted in
some additional Chinese withholding taxes, LPOIZ currently
qualifies for a reduced Chinese income tax rate; therefore, the
total income tax on those earnings was still lower than it would
have been using the normal income tax rate. LightPath has NOL
carry-forward benefits of approximately $74 million available to
apply against taxable income as reported on a consolidated basis in
the U.S. Outside of the U.S., income taxes are attributable to the
Company’s wholly-owned subsidiaries in China. Income
generated by the Company’s wholly-owned subsidiary in Latvia
is subject to distribution tax, however, the Company currently does
not intend to distribute earnings subject to this tax and,
therefore, no taxes have been accrued on these earnings. Instead,
profits are allocated to investments in future IR business activity
growth.
LightPath
recognized net foreign currency transaction losses due to changes
in the value of the Chinese Yuan and Euro against the U.S. Dollar
in the amount of approximately $98,000 in the first quarter of
fiscal 2021, compared to net foreign currency transaction losses of
$497,000 for the first quarter of fiscal 2020. These foreign
currency transaction losses had no impact on basic and diluted
earnings per share for the first quarter of fiscal 2021, and a
$0.02 unfavorable impact on the basic and diluted loss per share
for the first quarter of fiscal 2020.
Net
income for the first quarter of fiscal 2021 was approximately
$97,000, or $0.00 basic and diluted earnings per share, compared to
a net loss of approximately $1.4 million, or $0.05 basic and
diluted loss per share for the first quarter of fiscal
2020.
Weighted-average
shares of common stock outstanding were 25,982,260 basic and
28,432,275 diluted in the first quarter of fiscal 2021, compared to
25,826,771 basic and diluted shares in the first quarter of fiscal
2020. The increase in the weighted-average shares of common stock
outstanding was due to shares of Class A common stock issued under
the Employee Stock Purchase Plan and upon the exercises of stock
options and restricted stock units.
EBITDA
for the first quarter of fiscal 2021 was approximately $1.4
million, as compared to an EBITDA loss of approximately $236,000
for the first quarter of fiscal 2020. The increase in EBITDA for
the first quarter of fiscal 2021 was primarily due to higher sales
resulting in higher gross margin and operating income as compared
to the same period of the prior fiscal year. In addition, there was
a favorable difference of approximately $400,000 in foreign
transaction losses.
Cash
and cash equivalents totaled approximately $5.4 million as of
September 30, 2020, approximately the same as at June 30, 2020.
Cash provided by operations was approximately $662,000 for the
first quarter of fiscal 2021, as compared to approximately $450,000
in the first quarter of fiscal 2020. The increase in cash flow from
operations for the first quarter of fiscal 2021 is primarily due to
the increase in net income, partially offset by an increase in
inventory driven by the growth in revenue and backlog. The Company
expended approximately $1.2 million for investments in capital
equipment during the first quarter of fiscal 2021, compared to
approximately $257,000 in the same period of the prior fiscal year.
The majority of capital expenditures during the first quarter of
fiscal 2021 were related to the continued expansion of infrared
coating capacity as well as increasing lens pressing and dicing
capacity to meet current and forecasted demand.
The
current ratio as of September 30, 2020 was 3.0 to 1, compared to
2.9 to 1 as of June 30, 2020. Total stockholders’ equity as
of September 30, 2020 was approximately $35.7 million, compared to
$34.6 million as of June 30, 2020. The net increase in
stockholders’ equity over the prior period is primarily due
to net income coupled with adjustments for stock-based
compensation, for which the expense is offset in additional paid-in
capital, as well as foreign currency translation adjustment gains,
which are included in other comprehensive income.
Historically,
LightPath has disclosed sales backlog on a 12-month basis, which
examined orders required by customers for delivery within a
one-year period. To better align with the Company’s strategic
focus on longer-term customer orders and relationships, beginning
in fiscal 2021 disclosure will be provided for total backlog and
will include all firm orders that are reasonably believed to remain
in the backlog and convert into revenues. As of September 30, 2020,
LightPath’s total backlog was $20.9 million, an increase of
26% from $16.6 million as of September 30, 2019, and a decrease of
5% from $21.9 million as of June 30, 2020. The majority of the
decrease in backlog from the end of fiscal 2020 to the end of the
first quarter of fiscal 2021 was due to the timing of shipments
against long-term contracts. These contracts are expected to renew
in future quarters, which may substantially increase backlog levels
at the time the orders are received, and backlog will subsequently
be drawn down as shipments are made against these
orders.
*Use of Non-GAAP Financial Measures
To
provide investors with additional information regarding financial
results, this press release includes references to EBITDA and gross
margin, both of which are non-GAAP financial measures. For a
reconciliation of these non-GAAP financial measures to the most
directly comparable financial measures calculated in accordance
with GAAP, see the tables provided in this press
release.
A
“non-GAAP financial measure” is generally defined as a
numerical measure of a company’s historical or future
performance that excludes or includes amounts, or is subject to
adjustments, so as to be different from the most directly
comparable measure calculated and presented in accordance with
GAAP. The Company’s management believes that these non-GAAP
financial measures, when considered together with the GAAP
financial measures, provide information that is useful to investors
in understanding period-over-period operating results separate and
apart from items that may, or could, have a disproportionately
positive or negative impact on results in any particular period.
Management also believes that these non-GAAP financial measures
enhance the ability of investors to analyze underlying business
operations and understand performance. In addition, management may
utilize these non-GAAP financial measures as guides in forecasting,
budgeting, and planning. Non-GAAP financial measures should be
considered in addition to, and not as a substitute for, or superior
to, financial measures presented in accordance with
GAAP.
The
Company calculates EBITDA by adjusting net income to exclude net
interest expense, income tax expense or benefit, depreciation, and
amortization.
The
Company calculates gross margin by deducting the cost of sales from
operating revenue. Cost of sales includes manufacturing direct and
indirect labor, materials, services, fixed costs for rent,
utilities and depreciation, and variable overhead. Gross margin
should not be considered an alternative to operating income or net
income, which is determined in accordance with GAAP. The Company
believes that gross margin, although a non-GAAP financial measure,
is useful and meaningful to investors as a basis for making
investment decisions. It provides investors with information that
demonstrates cost structure and provides funds for total costs and
expenses. The Company uses gross margin in measuring the
performance of its business and has historically analyzed and
reported gross margin information publicly. Other companies may
calculate gross margin in a different manner.
Investor Conference Call and Webcast Details
LightPath
will host an audio conference call and webcast on Thursday,
November 5, 2020 at 4:30 p.m. ET to discuss its financial and
operational performance for its fiscal 2021 first quarter ended
September 30, 2020.
Date:
Thursday, November 5, 2020
Time:
4:30 PM (ET)
Dial-in
Number: 1-877-317-2514
International
Dial-in Number: 1-412-317-2514
Webcast: https://services.choruscall.com/links/lpth201105.html
Participants
are recommended to dial-in or log-on approximately 10 minutes prior
to the start of the event. A replay of the call will be available
approximately one hour after completion through November 19, 2020.
To listen to the replay, dial 1-877-344-7529 (domestic) or
1-412-317-0088 (international), and enter conference ID
#10149045.
About LightPath Technologies
LightPath
Technologies, Inc. (NASDAQ: LPTH) is a leading global, vertically
integrated provider of optics, photonics and infrared solutions for
the industrial, commercial, defense, telecommunications, and
medical industries. LightPath designs and manufactures proprietary
optical and infrared components including molded glass aspheric
lenses and assemblies, infrared lenses and thermal imaging
assemblies, fused fiber collimators, and proprietary Black
DiamondTM (“BD6”)
chalcogenide-based glass lenses. LightPath also offers custom
optical assemblies, including full engineering design support. The
Company is headquartered in Orlando, Florida, with manufacturing
and sales offices in Latvia and China.
LightPath’s
wholly-owned subsidiary, ISP Optics
Corporation, manufactures
a full range of infrared products from high performance MWIR and
LWIR lenses and lens assemblies. ISP’s infrared lens assembly
product line includes athermal lens systems used in cooled and
un-cooled thermal imaging cameras. Manufacturing is performed
in-house to provide precision optical components including
spherical, aspherical and diffractive coated infrared lenses.
ISP’s optics processes allow it to manufacture its products
from all important types of infrared materials and crystals.
Manufacturing processes include CNC grinding and CNC polishing,
diamond turning, continuous and conventional polishing, optical
contacting and advanced coating technologies.
For
more information on LightPath and its businesses, please visit
www.lightpath.com.
Forward-Looking Statements
This press release includes statements that constitute
forward-looking statements made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements may be identified by the use of words
such as “forecast,” “guidance,”
“plan,” “estimate,” “will,”
“would,” “project,” “maintain,”
“intend,” “expect,”
“anticipate,” “prospect,”
“strategy,” “future,” “likely,”
“may,” “should,” “believe,”
“continue,” “opportunity,”
“potential,” and other similar expressions that predict
or indicate future events or trends or that are not statements of
historical matters, and include, for example, statements related to
the expected effects on the Company’s business from the
COVID-19 pandemic. These forward-looking statements are based on
information available at the time the statements are made and/or
management’s good faith belief as of that time with respect
to future events, and are subject to risks and uncertainties that
could cause actual results to differ materially from those
expressed in or suggested by the forward-looking statements.
Factors that could cause or contribute to such differences include,
but are not limited to, the duration and scope of the COVID-19
pandemic and impact on the demand for the Company products; the
ability of the Company to obtain needed raw materials and
components from its suppliers; actions governments, businesses, and
individuals take in response to the pandemic, including mandatory
business closures and restrictions on onsite commercial
interactions; the impact of the pandemic and actions taken in
response to the pandemic on global and regional economies and
economic activity; the pace of recovery when the COVID-19 pandemic
subsides; general economic uncertainty in key global markets and a
worsening of global economic conditions or low levels of economic
growth; the effects of steps that the Company could take to reduce
operating costs; the inability of the Company to sustain profitable
sales growth, convert inventory to cash, or reduce its costs to
maintain competitive prices for its products; circumstances or
developments that may make the Company unable to implement or
realize the anticipated benefits, or that may increase the costs,
of its current and planned business initiatives; and those factors
detailed by LightPath Technologies, Inc. in its public filings with
the Securities and Exchange Commission, including its Annual Report
on Form 10-K for the year ended June 30, 2020. Should one or more
of these risks, uncertainties, or facts materialize, or should
underlying assumptions prove incorrect, actual results may vary
materially from those indicated or anticipated by the
forward-looking statements contained herein. Accordingly, you are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date they are made.
Forward-looking statements should not be read as a guarantee of
future performance or results and will not necessarily be accurate
indications of the times at, or by, which such performance or
results will be achieved. Except as required under the federal
securities laws and the rules and regulations of the Securities and
Exchange Commission, we do not have any intention or obligation to
update publicly any forward-looking statements, whether as a result
of new information, future events, or otherwise.
Contacts:
|
Contacts:
|
|
|
|
Sam Rubin, President & CEO
|
Don
Retreage, Jr. CFO
|
Jordan
Darrow
|
|
LightPath Technologies, Inc.
|
LightPath
Technologies, Inc.
|
Darrow
Associates, Inc.
|
|
Tel: 407-382-4003
|
Tel:
407-382-4003
|
Tel:
512-551-9296
|
|
|
|
|
(tables
follow)
LIGHTPATH TECHNOLOGIES, INC.
Condensed Consolidated Balance Sheets
(unaudited)
|
|
|
|
|
Assets
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$5,386,587
|
$5,387,388
|
|
Trade accounts
receivable, net of allowance of $10,153 and $9,917
|
6,258,927
|
6,188,726
|
|
Inventories,
net
|
9,647,434
|
8,984,482
|
|
Other
receivables
|
—
|
132,051
|
|
Prepaid expenses
and other assets
|
666,501
|
565,181
|
|
Total current
assets
|
21,959,449
|
21,257,828
|
|
|
|
|
|
Property and
equipment, net
|
12,270,410
|
11,799,061
|
|
Operating lease
right-of-use assets
|
1,502,488
|
1,220,430
|
|
Intangible assets,
net
|
6,426,694
|
6,707,964
|
|
Goodwill
|
5,854,905
|
5,854,905
|
|
Deferred tax
assets, net
|
659,000
|
659,000
|
|
Other
assets
|
27,737
|
75,730
|
|
Total
assets
|
$48,700,683
|
$47,574,918
|
|
Liabilities
and Stockholders’ Equity
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$2,337,477
|
$2,558,638
|
|
Accrued
liabilities
|
1,161,796
|
992,221
|
|
Accrued payroll and
benefits
|
1,976,053
|
1,827,740
|
|
Operating lease
liabilities, current
|
814,307
|
765,422
|
|
Loans payable,
current portion
|
881,350
|
981,350
|
|
Finance lease
obligation, current portion
|
284,008
|
278,040
|
|
Total current
liabilities
|
7,454,991
|
7,403,411
|
|
|
|
|
|
Finance lease
obligation, less current portion
|
205,966
|
279,435
|
|
Operating lease
liabilities, noncurrent
|
1,075,781
|
887,766
|
|
Loans payable, less
current portion
|
4,296,670
|
4,437,365
|
|
Total
liabilities
|
13,033,408
|
13,007,977
|
|
|
|
|
|
Stockholders’
equity:
|
|
|
|
Preferred stock:
Series D, $.01 par value, voting;
|
|
|
|
500,000 shares
authorized; none issued and outstanding
|
—
|
—
|
|
Common stock:
Class A, $.01 par value, voting;
|
|
|
|
44,500,000 shares
authorized; 26,102,831 and 25,891,885
|
|
|
|
shares issued and
outstanding
|
261,028
|
258,919
|
|
Additional paid-in
capital
|
230,905,905
|
230,634,056
|
|
Accumulated other
comprehensive income
|
1,465,200
|
735,892
|
|
Accumulated
deficit
|
(196,964,858)
|
(197,061,926)
|
|
Total
stockholders’ equity
|
35,667,275
|
34,566,941
|
|
Total liabilities
and stockholders’ equity
|
$48,700,683
|
$47,574,918
|
LIGHTPATH
TECHNOLOGIES, INC.
Condensed Consolidated Statements of Comprehensive Income
(Loss)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Revenue,
net
|
$9,508,972
|
$7,551,930
|
|
Cost of
sales
|
5,658,780
|
5,161,112
|
|
Gross
margin
|
3,850,192
|
2,390,818
|
|
Operating
expenses:
|
|
|
|
Selling, general
and administrative
|
2,440,477
|
2,341,778
|
|
New product
development
|
450,497
|
428,411
|
|
Amortization of
intangibles
|
281,271
|
283,521
|
|
Gain on disposal of
property and equipment
|
(45)
|
(50,000)
|
|
Total operating
expenses
|
3,172,200
|
3,003,710
|
|
Operating income
(loss)
|
677,992
|
(612,892)
|
|
Other income
(expense):
|
|
|
|
Interest expense,
net
|
(58,549)
|
(98,541)
|
|
Other income
(expense), net
|
(87,735)
|
(515,406)
|
|
Total other income
(expense), net
|
(146,284)
|
(613,947)
|
|
Income (loss)
before income taxes
|
531,708
|
(1,226,839)
|
|
Income tax
provision
|
434,640
|
148,318
|
|
Net income
(loss)
|
$97,068
|
$(1,375,157)
|
|
Foreign currency
translation adjustment
|
729,308
|
53,766
|
|
Comprehensive
income (loss)
|
$826,376
|
$(1,321,391)
|
|
Earnings (loss) per
common share (basic)
|
$0.00
|
$(0.05)
|
|
Number of shares
used in per share calculation (basic)
|
25,982,260
|
25,826,771
|
|
Earnings (loss) per
common share (diluted)
|
$0.00
|
$(0.05)
|
|
Number of shares
used in per share calculation (diluted)
|
28,432,275
|
25,826,771
|
LIGHTPATH TECHNOLOGIES, INC.
Condensed Consolidated Statements of Changes in Stockholders'
Equity
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances at June
30, 2020
|
25,891,885
|
$258,919
|
$230,634,056
|
$735,892
|
$(197,061,926)
|
$34,566,941
|
|
Issuance of common stock
for:
|
|
|
|
|
|
|
|
Employee Stock Purchase
Plan
|
3,306
|
33
|
10,976
|
|
—
|
11,009
|
|
Exercise of stock options,
net
|
207,640
|
2,076
|
124,024
|
|
—
|
126,100
|
|
Stock-based compensation on stock
options & RSUs
|
—
|
—
|
136,849
|
—
|
—
|
136,849
|
|
Foreign currency translation
adjustment
|
—
|
—
|
—
|
729,308
|
—
|
729,308
|
|
Net income
|
—
|
—
|
—
|
—
|
97,068
|
97,068
|
|
Balances at
September 30, 2020
|
26,102,831
|
$261,028
|
$230,905,905
|
$1,465,200
|
$(196,964,858)
|
$35,667,275
|
|
|
|
|
|
|
|
|
|
Balances at June
30, 2019
|
25,813,895
|
$258,139
|
$230,321,324
|
$808,518
|
$(197,928,855)
|
$33,459,126
|
|
Issuance of common stock
for:
|
|
|
|
|
|
|
|
Employee Stock Purchase
Plan
|
13,370
|
134
|
12,033
|
—
|
—
|
12,167
|
|
Exercise of RSUs,
net
|
4,394
|
44
|
(44)
|
—
|
—
|
—
|
|
Stock-based compensation on stock
options & RSUs
|
—
|
—
|
98,459
|
—
|
—
|
98,459
|
|
Foreign currency translation
adjustment
|
—
|
—
|
—
|
53,766
|
—
|
53,766
|
|
Net loss
|
—
|
—
|
—
|
—
|
(1,375,157)
|
(1,375,157)
|
|
Balances at
September 30, 2019
|
25,831,659
|
$258,317
|
$230,431,772
|
$862,284
|
$(199,304,012)
|
$32,248,361
|
LIGHTPATH TECHNOLOGIES, INC.
Condensed Consolidated Statements of Cash Flows
(unaudited)
|
|
Three Months
Ended September 30,
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
Net income
(loss)
|
$97,068
|
$(1,375,157)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
826,308
|
892,072
|
|
Interest from
amortization of debt costs
|
4,643
|
4,643
|
|
Gain on disposal of
property and equipment
|
(45)
|
(50,000)
|
|
Stock-based
compensation on stock options & RSUs, net
|
136,849
|
98,459
|
|
Change in operating
lease liabilities
|
(45,158)
|
(24,844)
|
|
Inventory
write-offs to allowance
|
112,282
|
—
|
|
Changes in
operating assets and liabilities:
|
|
|
|
Trade accounts
receivable
|
(70,201)
|
682,975
|
|
Other
receivables
|
132,051
|
353,695
|
|
Inventories
|
(775,234)
|
(332,161)
|
|
Prepaid expenses
and other assets
|
147,148
|
190,940
|
|
Accounts payable
and accrued liabilities
|
96,727
|
9,443
|
|
Net cash provided
by operating activities
|
662,438
|
450,065
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
Purchase of
property and equipment
|
(1,216,817)
|
(256,573)
|
|
Proceeds from sale
of equipment
|
—
|
50,000
|
|
Net cash used in
investing activities
|
(1,216,817)
|
(206,573)
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
Proceeds from
exercise of stock options
|
126,100
|
—
|
|
Proceeds from sale
of common stock from Employee Stock Purchase Plan
|
11,009
|
12,167
|
|
Payments on loan
payable
|
(245,338)
|
(145,338)
|
|
Repayment of
finance lease obligations
|
(67,501)
|
(103,618)
|
|
Net cash used in
financing activities
|
(175,730)
|
(236,789)
|
|
Effect of exchange
rate on cash and cash equivalents and restricted cash
|
729,308
|
53,766
|
|
Change in cash and
cash equivalents and restricted cash
|
(801)
|
60,469
|
|
Cash and cash
equivalents and restricted cash, beginning of period
|
5,387,388
|
4,604,701
|
|
Cash and cash
equivalents and restricted cash, end of period
|
$5,386,587
|
$4,665,170
|
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
Interest paid
in cash
|
$54,089
|
$95,870
|
|
Income taxes
paid
|
$241,293
|
$57,660
|
To
supplement our consolidated financial statements presented in
accordance with U.S. GAAP, we provide additional non-GAAP financial
measures. Our management believes these non-GAAP financial
measures, when considered together with the GAAP financial
measures, provide information that is useful to investors in
understanding period-over-period operating results separate and
apart from items that may or could, have a disproportionally
positive or negative impact on results in any particular period.
Our management also believes that these non-GAAP financial measures
enhance the ability of investors to analyze our underlying business
operations and understand our performance. In addition, our
management may utilize these non-GAAP financial measures as guides
in forecasting, budgeting, and planning. Any analysis on non-GAAP
financial measures should be used in conjunction with results
presented in accordance with GAAP. A reconciliation of these
non-GAAP financial measures with the most directly comparable
financial measures calculated in accordance with GAAP is presented
in the tables below.
LIGHTPATH TECHNOLOGIES, INC.
Reconciliation of Non-GAAP Financial Measures and Regulation G
Disclosure
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$97,068
|
$(1,375,157)
|
|
Depreciation and
amortization
|
826,308
|
892,072
|
|
Income tax
provision
|
434,640
|
148,318
|
|
Interest
expense
|
58,549
|
98,541
|
|
EBITDA
|
$1,416,565
|
$(236,226)
|
|
% of
revenue
|
15%
|
-3%
|