10-Q - SYNTEC OPTICS HOLDINGS, INC. (0001866816) (Filer)
Thu, Nov 14, 8:55 PM (95 days ago)
For the quarter ending September 30, 2024, Syntec Optics Holdings, Inc. (OPTX) reported net sales of $7,866,355, a 19.2% increase from $6,600,525 in the prior year. However, the company experienced a net loss of $13,289, contrasting with a net income of $353,980 in Q3 2023. Gross profit remained relatively stable at $1,833,720, but gross profit margin declined to 23% from 28% due to rising costs in payroll and materials. For the nine months ended September 30, 2024, net sales slightly decreased to $21,128,263 from $21,177,257, with a significant net loss of $940,589 compared to a profit of $974,767 in the previous year. Operating cash flow was negative at $(1,566,598), driven by increased operational losses and reduced payables. The company’s liquidity is tight, with cash of $476,784 and a line of credit utilization at $6,063,863. Compliance issues with financial covenants were noted, leading to a credit facility amendment. Future operations may be impacted by these financial uncertainties, alongside reliance on key customers that comprise 53% of revenue.