Mon, Apr 14, 1:01 PM (13 days ago)
**Surge Components, Inc. (SPRS) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $7,231,738, up 2.5% YoY, driven by new and existing customers. - **Gross Profit:** $2,045,702, a slight increase of $3,574 YoY, with a gross margin of 28.3%. - **Net Income:** $57,356, a significant improvement from a net loss of $(72,001) in Q1 2024. - **Earnings per Share (EPS):** $0.01, up from $(0.01) in Q1 2024. - **Operating Expenses:** Decreased by 4.0% YoY, with reductions in salaries, rent, and other costs. - **Cash Flow:** Net cash used in operating activities was $(124,278), a decrease from $1,135,514 in Q1 2024, due to changes in working capital. - **Cash Position:** $3,871,840, down from $5,627,693 in Q1 2024, due to investments in marketable securities. **Trends & Uncertainties:** - **Tariffs:** Impacted by tariffs on Chinese imports, but able to pass some costs to customers. - **Supply Chain:** Challenges due to global economic conditions and geopolitical tensions. - **Customer Concentration:** Two customers accounted for 35% of net sales. - **Supplier Concentration:** One foreign supplier accounted for 27% of inventory purchases. - **Export Sales:** Significant export sales to Canada, China, and other Asian countries. **Future Operations & Impact:** - **Growth Opportunities:** Exploring growth and expansion using cash resources. - **Challenges:** Inflation, economic conditions, supply chain disruptions, and geopolitical risks. - **Mitigation Strategies:** Diversifying suppliers, passing on tariff costs, and strengthening global presence. **Management's Outlook:** - **Cautiously Optimistic:** Despite challenges, management expects continued growth unless economic conditions deteriorate. - **Focus Areas:** Maintaining consistent product flow, securing adequate product sources, and managing costs.