Mon, Jul 15, 1:01 PM (54 days ago)
Surge Components, Inc. reported a decrease in net sales for the six months ended May 31, 2024, down 25.7% to $14,398,701 compared to the same period in 2023. The decline was attributed to reduced business with new and existing customers, and excess inventory from over-ordering in 2022. Gross profit fell 27.4% to $4,044,693 with a slight decrease in gross margin to 28.1%. Operating expenses also decreased, with selling and shipping expenses down 11% and general and administrative expenses down 5.5%. Net income dropped significantly to $125,938 from $919,421. Cash flow from operations improved to $1,593,512 due to lower accounts receivable and inventory. The company invested heavily in marketable securities, resulting in a net decrease in cash of $1,932,117. Surge Components holds $5,702,682 in cash and $6,768,049 in marketable securities, with working capital of $18,148,705, deemed adequate for the next 12 months. The company is exploring growth opportunities and preparing for potential economic challenges in 2025.