LightPath Technologies Reports Financial Results for Fiscal 2022 Second Quarter
LightPath Technologies reported a fiscal 2022 Q2 revenue of $9.2 million, a 7% decrease year-over-year. The company is experiencing growth in its freeform optics segment, with 8 ongoing projects expected to generate $1-5 million annually each. LightPath has expanded its manufacturing capabilities and secured a $4.2 million supply agreement. However, it faced a $1.1 million net loss, attributed to management transition expenses in China and a drop in telecommunications orders. Cash reserves stood at $5.1 million with total debt of $4.7 million.
- Growth in freeform optics with 8 new projects potentially bringing $8-40 million in revenue over 24 months.
- Secured a $4.2 million annual supply agreement, enhancing future revenue.
- Positive recognition with the 2022 SPIE Prism Award for freeform optics manufacturing technology.
- Cash balance of $5.1 million, providing liquidity for operations.
- Net loss of $1.1 million for Q2, attributed to management issues and decreased orders.
- 7% revenue decline year-over-year, signaling potential sales challenges.
- Decrease in gross margin to 30%, down from 37%, due to product mix and increased costs.
Business Development Ramps on Strength of New Freeform Optics and Other New Product Platforms for LIDAR, AR/VR and Space Applications
ORLANDO, FL / ACCESSWIRE / February 10, 2022 / LightPath Technologies, Inc. (NASDAQ:LPTH) ("LightPath," the "Company," or "we"), a vertically integrated provider of engineered solutions for the global photonics industry, today announced financial results for its fiscal 2022 second quarter ended December 31, 2021.
Management Overview & Technology Highlights
Commenting on the second quarter of fiscal 2022, LightPath's President and Chief Executive Officer Sam Rubin stated, "The Company's performance in the second quarter demonstrated significant progress in the expansion of our product portfolio and business development pipeline as we implement our new strategic direction. At the same time, we are delivering with operational discipline as we invest in growth opportunities, while our financial recovery takes longer than anticipated following the leadership transition of our business in China."
"Our new strategic plan, which we began implementing approximately one year ago, is delivering the intended results, with the Company transforming itself into a leading global provider of engineered solutions with a highly differentiated product platform serving as the foundation for the new LightPath. During the second quarter, our business development pipeline throttled forward on the strength of our new freeform optics and other technological innovations. Since introducing freeform optics in October 2021, we have been engaged in an increasing number of opportunities for the development of custom solutions, which include non-recurring engineering (NRE) revenue and other programs which could lead to valuable volume production orders. At present, we have a total of 8 such high-volume projects in development or going through the customer qualification process. This is an increase of 5 projects during the second quarter, with each of these opportunities ranging from
Recent activities supporting LightPath's continued focus on growth, innovation and value-added engineering included:
- New freeform optics gaining traction within AR/VR, LIDAR and defense markets
- Increasing number of engagements, including the initiation of number of NRE projects for the development of new, custom freeform optics and assemblies; large projects increased to 8 from 3 during the second quarter
- Won the prestigious 2022 SPIE Prism Award for developing Manufacturing technology for freeform optics
- Secured exclusive optical usage license for the infrared patent portfolio from the United States Navy's U.S. Naval Research Laboratory (NRL) to access several multi-billion dollar markets, including infrared imaging and multispectral imaging
- Received funding by European Space Agency to commercialize materials for use in space
- Awarded renewal of annual supply agreement valued at over
$4.2 million for commercial IR vision lens elements - Completed coating operations expansion in Riga facility with volume production underway
- Workforce realignment toward strategic focus on higher value, longer term engineered solutions/programs and customer relationships
- M&A strategy on course to supplement engineered solutions
Fiscal 2022 First Quarter Highlights:
- Revenue for the second quarter of fiscal 2022 of
$9.2 million - Total backlog at December 31, 2021 of
$21.9 million - Net loss for the second quarter of fiscal 2022 was
$1.1 million , which includes additional expenses associated with the management changes in Chinese subsidiaries - EBITDA* for the second quarter of fiscal 2022 was a loss of
$41,000 - Cash and cash equivalents of
$5.1 million as of December 31, 2021 - Total debt, including finance leases, of
$4.7 million as of December 31, 2021 - Capital expenditures of
$118,000 for the second quarter of fiscal 2022 - Insiders execute open market purchases of Class A common shares during quarter ended December 31, 2021
*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.
Additional Management Comments
Mr. Rubin's comments continued, "LightPath's second quarter financial results were negatively impacted by expenses associated with the management and employee transition in our Chinese subsidiaries, and the significant decrease in orders from a key telecommunications customer in China, which was unrelated to the management transition. Having rebuilt our management and sales leadership team in China over the past two quarters, we are contending with economic and pandemic-related conditions in that country which are making our financial recovery take longer than expected. The expense and efforts to build us back in China did not derail us from executing on our overall strategic plan, success of which we see evident in the growing number of customer engagements on potentially large scale projects. We believe that the most challenging aspects of our transition in China are now behind us, for the most part, and we are on a trajectory for longer term growth and profitability on a global scale.
"Simultaneous with our efforts in China, we completed the addition of our coating facilities in Europe during the second quarter. With vertically integrated processes and manufacturing capabilities on 3 continents, we are increasingly being sought after by customers and industry partners alike which position us to benefit from the recent broadening of our product portfolio and to address some of the most prominent growth sectors of the economy, including LIDAR, AR/VR and space technologies.
"The industry's response to our introduction of freeform optics for high volume production has been nothing short of overwhelming. There is significant interest in our capabilities for designing systems that use freeform optics. Last week, we announced that our new freeform optics technology had won the 2022 Prism Award for Manufacturing. The Prism Awards is an annual international competition that honors the best new optics and photonics products on the market. We now have underway a growing number of NRE projects for the development of new custom freeform optics and assemblies as well as other new products. Growth in our NRE programs is the result of customers wanting priority access to freeform technology among our expanding platform of proprietary materials and manufacturing processes.
"NRE projects, which represent revenue in the form of engineering and development that is paid for by customers with the resulting intellectual property owned by LightPath, are expected to lead to production orders that require a series of lenses or assemblies which would substantially increase the Company's current manufacturing volumes. Once in production, through separate contracts, the proprietary nature of such non-commoditized orders suggest that the higher revenue generation associated with the greater volumes also will deliver an improvement in gross margins as compared with the Company's existing product lines. As such, we are delivering on the strategic objective of transitioning into a value-added engineered solutions partner for large global customers as they pursue next generation technologies.
"On other operating performance measures, revenues for the second quarter and backlog at the end of the period increased from the first quarter. We ended the second quarter by increasing our cash balance and reducing total debt and inventories as compared to the end of the first quarter. Backlog grew to
"While our product portfolio has made great strides and now addresses some very exciting growth markets, our spending on research and development remained at under
"A key objective of our strategic plan is to move up the value chain in targeted areas based on the technology and engineering capabilities that we have today as well as what our presence in the industry can deliver to us. To this end, we were honored to have been selected for an exclusive optical usage license to manufacture products using the infrared patent portfolio developed and owned by the United States Navy's U.S. Naval Research Laboratory. We are receiving very strong market feedback on our NRL licensing which reaffirms our assumptions that such materials provide significant value.
"The culmination of our research efforts, our partnerships and our overall product expansion is a migration to higher end engineered solutions that afford us with exposure to large customers and accelerating growth markets which are expected to lead to increased profitability, particularly since it is unlikely we would face the same commoditization and competitive issues of some of our more mature product lines. Representative of this continued progress and outlook for growth, LightPath's leadership made open market purchases of Class A common stock during both the fiscal first and second quarters."
Financial Results
Revenue
Revenue for the second quarter of fiscal 2022 was approximately
Revenue generated by IR products was approximately
Revenue generated by PMO products was approximately
Revenue generated by specialty products was approximately
For the first half of fiscal 2022, revenue was approximately
Revenue generated by IR products was approximately
Revenue generated by PMO products was approximately
Revenue generated by specialty products was approximately
Cost of Sales and Gross Margin
Gross margin in the second quarter of fiscal 2022 was approximately
Gross margin in the first half of fiscal 2022 was approximately
Operating Expenses
During the second quarter of fiscal 2022, total operating expenses were approximately
For the first half of fiscal 2022, total operating costs were approximately
Regarding the events that occurred in our Chinese subsidiaries, during the fourth quarter of fiscal 2021, the Company terminated several employees of its Chinese subsidiaries after determining that they had engaged in malfeasance and conduct adverse to the interests of the Company, including efforts to misappropriate certain of the Company's proprietary technology, diverting sales to entities owned or controlled by these former employees and other suspected acts of fraud, theft and embezzlement. The Company's Chinese subsidiaries are involved in certain ongoing legal proceedings with the terminated employees.
Knowing that such transitions in international subsidiaries can lead to lengthy legal proceedings that can interrupt a subsidiary's ability to operate, compounded by the fact that the Company's officers could not travel to China to oversee the transitions because of the travel restrictions imposed by COVID-19, the Company chose to enter into severance agreements with certain of the employees at the time of transaction, pursuant to which the Company's subsidiaries agreed to pay such employees severance of approximately
Other Income (Expense)
Interest expense, net, was approximately
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
Income Taxes
During the second quarter of fiscal 2022, income tax expense was approximately
LightPath has net operating loss ("NOL") carry-forward benefits of approximately
Net Loss
Net loss for the second quarter of fiscal 2022 was approximately
Net loss for the first half of fiscal 2022 was approximately
Weighted-average common shares outstanding were 27,008,748, basic and diluted, in the second quarter of fiscal 2022, compared to 26,117,239, basic and diluted, in the second quarter of fiscal 2021. Weighted-average common shares outstanding were 27,001,360, basic and diluted, in the first half of fiscal 2022, compared to 26,049,750, basic and diluted, in the first half of fiscal 2021. The increase in the weighted-average basic common shares was due to the issuance of shares of Class A common stock (i) under the 2014 Employee Stock Purchase Plan, (ii) upon the exercises of stock options, and (iii) underlying vested Restricted Stock Units.
EBITDA
EBITDA for the second quarter of fiscal 2022 was a loss of approximately
EBITDA for the first half of fiscal 2022 was approximately
EBITDA is a non-GAAP financial measure. A disclaimer and reconciliation are provided below.
Liquidity and Capital Resources
Cash used in operations was approximately
The current ratio as of December 31, 2021 was 2.6 to 1, compared to 2.5 to 1 as of June 30, 2021. Total stockholders' equity as of December 31, 2021 was approximately
Sales Backlog
As of December 31, 2021, LightPath's total backlog was
*Use of Non-GAAP Financial Measures
To provide investors with additional information regarding financial results, this press release includes references to EBITDA, which is a non-GAAP financial measure. For a reconciliation of this non-GAAP financial measure to the most directly comparable financial measure calculated in accordance with GAAP, see the table 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 this non-GAAP financial measures, when considered together with the GAAP financial measure, 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 this non-GAAP financial measure enhances the ability of investors to analyze underlying business operations and understand performance. In addition, management may utilize this 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.
Investor Conference Call and Webcast Details
LightPath will host an audio conference call and webcast on Thursday, February 10, 2022 at 5:00 p.m. ET to discuss its financial and operational performance for its fiscal 2022 second quarter ended December 31, 2021.
Date: Thursday, February 10, 2022
Time: 5:00 PM (ET)
Dial-in Number: 1-877-317-2514
International Dial-in Number: 1-412-317-2514
Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=ae4nSozC
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 February 24, 2022. To listen to the replay, dial 1-877-344-7529 (domestic) or 1-412-317-0088 (international), and enter conference ID #6042502.
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, custom molded glass freeform lenses, 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 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 and Quarterly Reports on 10-Q. 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.
Contact:
Jordan Darrow
Darrow Associates, Inc.
Tel: 512-551-9296
jdarrow@darrowir.com
(tables follow)
LIGHTPATH TECHNOLOGIES, INC.
Condensed Consolidated Balance Sheets
(unaudited)
| December 31, | June 30, | |||||||
Assets | 2021 | 2021 | ||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 5,052,755 | $ | 6,774,694 | ||||
Trade accounts receivable, net of allowance of | 4,955,494 | 4,656,354 | ||||||
Inventories, net | 7,315,065 | 8,659,587 | ||||||
Other receivables | 267,325 | 137,103 | ||||||
Prepaid expenses and other assets | 418,860 | 475,364 | ||||||
Total current assets | 18,009,499 | 20,703,102 | ||||||
Property and equipment, net | 13,158,718 | 13,279,867 | ||||||
Operating lease right-of-use assets | 9,638,515 | 9,015,498 | ||||||
Intangible assets, net | 5,020,339 | 5,582,881 | ||||||
Goodwill | 5,854,905 | 5,854,905 | ||||||
Deferred tax assets, net | 147,000 | 147,000 | ||||||
Other assets | 27,737 | 27,737 | ||||||
Total assets | $ | 51,856,713 | $ | 54,610,990 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 2,249,296 | $ | 2,924,333 | ||||
Accrued liabilities | 1,087,936 | 1,067,265 | ||||||
Accrued payroll and benefits | 1,990,911 | 2,810,043 | ||||||
Operating lease liabilities, current | 816,789 | 799,507 | ||||||
Loans payable, current portion | 777,424 | 634,846 | ||||||
Finance lease obligation, current portion | 127,278 | 212,212 | ||||||
Total current liabilities | 7,049,634 | 8,448,206 | ||||||
Finance lease obligation, less current portion | 18,437 | 66,801 | ||||||
Operating lease liabilities, noncurrent | 8,943,334 | 8,461,133 | ||||||
Loans payable, less current portion | 3,776,246 | 4,057,365 | ||||||
Total liabilities | 19,787,651 | 21,033,505 | ||||||
Commitments and Contingencies | ||||||||
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; 27,021,875 and 26,985,913 | ||||||||
shares issued and outstanding | 270,219 | 269,859 | ||||||
Additional paid-in capital | 231,761,146 | 231,438,651 | ||||||
Accumulated other comprehensive income | 1,972,262 | 2,116,152 | ||||||
Accumulated deficit | (201,934,565 | ) | (200,247,177 | ) | ||||
Total stockholders' equity | 32,069,062 | 33,577,485 | ||||||
Total liabilities and stockholders' equity | $ | 51,856,713 | $ | 54,610,990 | ||||
LIGHTPATH TECHNOLOGIES, INC.
Condensed Consolidated Statements of Comprehensive Income (Loss)
(unaudited)
| Three Months Ended | Six Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
Revenue, net | $ | 9,243,174 | $ | 9,922,171 | $ | 18,346,517 | 19,431,143 | |||||||||
Cost of sales | 6,443,328 | 6,291,835 | 12,374,736 | 11,950,615 | ||||||||||||
Gross margin | 2,799,846 | 3,630,336 | 5,971,781 | 7,480,528 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative | 2,946,998 | 2,763,178 | 5,816,044 | 5,203,655 | ||||||||||||
New product development | 551,960 | 529,902 | 978,971 | 980,399 | ||||||||||||
Amortization of intangibles | 281,271 | 281,271 | 562,542 | 562,542 | ||||||||||||
Gain on disposal of property and equipment | - | (477 | ) | - | (522 | ) | ||||||||||
Total operating expenses | 3,780,229 | 3,573,874 | 7,357,557 | 6,746,074 | ||||||||||||
Operating income (loss) | (980,383 | ) | 56,462 | (1,385,776 | ) | 734,454 | ||||||||||
Other income (expense): | ||||||||||||||||
Interest expense, net | (50,331 | ) | (55,147 | ) | (96,080 | ) | (113,696 | ) | ||||||||
Other income (expense), net | 10,819 | 93,252 | (40,263 | ) | 5,517 | |||||||||||
Total other income (expense), net | (39,512 | ) | 38,105 | (136,343 | ) | (108,179 | ) | |||||||||
Income before income taxes | (1,019,895 | ) | 94,567 | (1,522,119 | ) | 626,275 | ||||||||||
Income tax provision | 35,396 | 241,112 | 165,269 | 675,752 | ||||||||||||
Net loss | $ | (1,055,291 | ) | $ | (146,545 | ) | $ | (1,687,388 | ) | $ | (49,477 | ) | ||||
Foreign currency translation adjustment | 284 | 723,396 | (143,890 | ) | 1,452,704 | |||||||||||
Comprehensive income (loss) | $ | (1,055,007 | ) | $ | 576,851 | $ | (1,831,278 | ) | $ | 1,403,227 | ||||||
Loss per common share (basic) | $ | (0.04 | ) | $ | (0.01 | ) | $ | (0.06 | ) | $ | (0.00 | ) | ||||
Number of shares used in per share calculation (basic) | 27,008,748 | 26,117,239 | 27,001,360 | 26,049,750 | ||||||||||||
Loss per common share (diluted) | $ | (0.04 | ) | $ | (0.01 | ) | $ | (0.06 | ) | $ | (0.00 | ) | ||||
Number of shares used in per share calculation (diluted) | 27,008,748 | 26,117,239 | 27,001,360 | 26,049,750 | ||||||||||||
LIGHTPATH TECHNOLOGIES, INC
Condensed Consolidated Statements of Changes in Stockholders' Equity
(unaudited)
| Accumulated | ||||||||||||||||||||||||
| Class A | Additional | Other | Total | |||||||||||||||||||||
| Common Stock | Paid-in | Comprehensive | Accumulated | Stockholders' | ||||||||||||||||||||
| Shares | Amount | Capital | Income | Deficit | Equity | |||||||||||||||||||
Balances at June 30, 2021 | 26,985,913 | $ | 269,859 | $ | 231,438,651 | $ | 2,116,152 | $ | (200,247,177 | ) | $ | 33,577,485 | ||||||||||||
Issuance of common stock for: | ||||||||||||||||||||||||
Employee Stock Purchase Plan | 8,621 | 86 | 21,640 | - | - | 21,726 | ||||||||||||||||||
Stock-based compensation on stock options & RSUs | - | - | 116,591 | - | - | 116,591 | ||||||||||||||||||
Foreign currency translation adjustment | - | - | - | (144,174 | ) | - | (144,174 | ) | ||||||||||||||||
Net loss | - | - | - | - | (632,097 | ) | (632,097 | ) | ||||||||||||||||
Balances at September 30, 2021 | 26,994,534 | $ | 269,945 | $ | 231,576,882 | $ | 1,971,978 | $ | (200,879,274 | ) | $ | 32,939,531 | ||||||||||||
Issuance of common stock for: | ||||||||||||||||||||||||
Settlement of RSUs, net | 27,341 | 274 | (274 | ) | - | - | - | |||||||||||||||||
Stock-based compensation on stock options & RSUs | - | - | 184,538 | - | - | 184,538 | ||||||||||||||||||
Foreign currency translation adjustment | - | - | - | 284 | - | 284 | ||||||||||||||||||
Net loss | - | - | - | - | (1,055,291 | ) | (1,055,291 | ) | ||||||||||||||||
Balances at December 31, 2021 | 27,021,875 | $ | 270,219 | $ | 231,761,146 | $ | 1,972,262 | $ | (201,934,565 | ) | $ | 32,069,062 | ||||||||||||
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 & RSUs, 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 | ||||||||||||
Issuance of common stock for: | ||||||||||||||||||||||||
Exercise of stock options & RSU's, net | 24,530 | 246 | 2,488 | - | - | 2,734 | ||||||||||||||||||
Stock-based compensation on stock options & RSUs | - | - | 106,167 | - | - | 106,167 | ||||||||||||||||||
Foreign currency translation adjustment | - | - | - | 723,396 | - | 723,396 | ||||||||||||||||||
Net loss | - | - | - | - | (146,545 | ) | (146,545 | ) | ||||||||||||||||
Balances at December 31, 2020 | 26,127,361 | $ | 261,274 | $ | 231,014,560 | $ | 2,188,596 | $ | (197,111,403 | ) | $ | 36,353,027 | ||||||||||||
LIGHTPATH TECHNOLOGIES, INC.
Condensed Consolidated Statements of Cash Flows
(unaudited)
| Six Months Ended December 31, | ||||||||
| 2021 | 2020 | |||||||
Cash flows from operating activities | ||||||||
Net loss | $ | (1,687,388 | ) | $ | (49,477 | ) | ||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||||||
Depreciation and amortization | 1,839,401 | 1,691,163 | ||||||
Interest from amortization of debt costs | 14,854 | 9,286 | ||||||
Gain on disposal of property and equipment | - | (522 | ) | |||||
Stock-based compensation on stock options & RSUs, net | 301,129 | 243,016 | ||||||
Provision for doubtful accounts receivable | 12,010 | - | ||||||
Change in operating lease assets and liabilities | (123,534 | ) | (86,804 | ) | ||||
Inventory write-offs to allowance | 105,993 | 133,204 | ||||||
Changes in operating assets and liabilities: | ||||||||
Trade accounts receivable | (311,150 | ) | (654,092 | ) | ||||
Other receivables | (130,222 | ) | 132,051 | |||||
Inventories | 1,238,529 | (841,999 | ) | |||||
Prepaid expenses and other assets | 56,504 | 266,797 | ||||||
Accounts payable and accrued liabilities | (1,473,498 | ) | 699,412 | |||||
Net cash (used in) provided by operating activities | (157,372 | ) | 1,542,035 | |||||
Cash flows from investing activities | ||||||||
Purchase of property and equipment | (1,317,373 | ) | (2,160,710 | ) | ||||
Net cash used in investing activities | (1,317,373 | ) | (2,160,710 | ) | ||||
Cash flows from financing activities | ||||||||
Proceeds from exercise of stock options | - | 128,834 | ||||||
Proceeds from sale of common stock from Employee Stock Purchase Plan | 21,726 | 11,009 | ||||||
Loan costs | (61,223 | ) | - | |||||
Borrowings on loans payable | 266,850 | 275,377 | ||||||
Payments on loans payable | (336,985 | ) | (395,257 | ) | ||||
Repayment of finance lease obligations | (133,298 | ) | (136,332 | ) | ||||
Net cash used in financing activities | (242,930 | ) | (116,369 | ) | ||||
Effect of exchange rate on cash and cash equivalents | (4,264 | ) | 653,899 | |||||
Change in cash and cash equivalents | (1,721,939 | ) | (81,145 | ) | ||||
Cash and cash equivalents, beginning of period | 6,774,694 | 5,387,388 | ||||||
Cash and cash equivalents, end of period | $ | 5,052,755 | $ | 5,306,243 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Interest paid in cash | $ | 81,533 | $ | 105,029 | ||||
Income taxes paid | $ | 197,103 | $ | 512,499 | ||||
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
| (unaudited) | ||||||||||||||||
| Quarter Ended December 31, | Six Months Ended December 31, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
Net loss | $ | (1,055,291 | ) | $ | (146,545 | ) | $ | (1,687,388 | ) | $ | (49,477 | ) | ||||
Depreciation and amortization | 928,439 | 864,855 | 1,839,401 | 1,691,163 | ||||||||||||
Income tax provision | 35,396 | 241,112 | 165,269 | 675,752 | ||||||||||||
Interest expense | 50,331 | 55,147 | 96,080 | 113,696 | ||||||||||||
EBITDA | $ | (41,125 | ) | $ | 1,014,569 | $ | 413,362 | $ | 2,431,134 | |||||||
% of revenue | 0 | % | 10 | % | 2 | % | 13 | % | ||||||||
SOURCE: LightPath Technologies, Inc.
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https://www.accesswire.com/688160/LightPath-Technologies-Reports-Financial-Results-for-Fiscal-2022-Second-Quarter
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