New Proprietary Technologies Provide Further Growth Opportunities
ORLANDO, FL / ACCESSWIRE / September 14, 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 the fourth quarter and full fiscal year ended June 30, 2022.
Management Commentary
LightPath's President and Chief Executive Officer Sam Rubin stated, "Fiscal 2022 was a transition year for LightPath Technologies as we began to embark on our new strategic direction focused on delivering high value optical solutions. Our revenue and gross margin showed improvement in the fourth quarter in comparison to the prior year period. We do expect to see short term pressures on margins due to increased energy costs as a result of the conflict in Ukraine and recessionary headwinds in the Chinese market in the remainder of calendar year 2022."
"Earlier this year we articulated a new strategic direction to move from an optical component manufacturer to a complete optical system provider. We believe this transition will be expedited by key technologies exclusively owned by LightPath. Already, our backlog, as announced in late August, exceeds the previous record backlog we had in 2020. Our current backlog comprises significantly higher quality sales in assemblies and defense along with significantly less sales in China. We believe we are on the right path to growing the company, expanding opportunities and increasing total profitability.
"Our exclusive Multi-spectral Infrared glass licensed from the Naval Research Lab ("NRL"), together with lenses produced with our precision molding processes, will allow LightPath to design and produce systems that require less cameras than current systems to achieve the same result. We believe this is a key differentiator, and we expect to begin releasing new products using those materials in the coming months. Our BD6 material is produced domestically allowing greater supply chain resilience for our partners, reducing reliance on suppliers from Russia and China for germanium material. We believe this is a game changing development for LightPath and the broader industry."
Fiscal 2022 Full Year and Fourth Quarter Highlights:
- Revenue for the fourth quarter of fiscal 2022 of $8.9 million; revenue of $35.6 million for the full fiscal year
- Total backlog at June 30, 2022 of $17.8 million
- Net loss for the fourth quarter of fiscal 2022 was $1.4 million; net loss of $3.5 million for the full fiscal year
- EBITDA* for the fourth quarter of fiscal 2022 was $107,000; EBITDA of $1.2 million for the full fiscal year
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- Received military qualification for BD6 DLC lenses
2022 Fiscal Fourth Quarter Financial Results
Revenue for the fourth quarter of fiscal 2022 was approximately $8.9 million, compared to $8.3 million in the same period of the prior fiscal year. Revenue among our product groups for the fourth quarter of 2022 was as follows:
Product Group Revenue ($ in millions)** | Fourth Quarter of Fiscal 2022 | Fourth Quarter of Fiscal 2021 | % Change | |||||||||
Infrared ("IR") products | $ | 5.0 | $ | 5.0 | 1 | % | ||||||
Precision Molded Optics ("PMO") products | $ | 3.4 | $ | 2.9 | 16 | % | ||||||
Specialty products | $ | 0.5 | $ | 0.4 | 8 | % | ||||||
** Subject to differences due to rounding
- Revenue from IR products was $5.0 million in both the fourth quarter of fiscal 2022 and 2021. The composition of IR revenue changed slightly, with more infrared product sales to customers in the industrial market, and lower sales to customers in the commercial market.
- Revenue from PMO products was $3.4 million compared to $2.9 million in the same period of the prior fiscal year. The increase is driven by sales to customers in the industrial and defense markets, as well as telecom, which was at a peak low in the fourth quarter of fiscal 2021.
- Revenue from specialty products was $449,000 compared to $415,000 in same period of the prior fiscal year. This increase is primarily due to non-recurring engineering ("NRE") projects for customers in the industrial market during the fourth quarter of fiscal 2022.
Gross margin in the fourth quarter of fiscal 2022 was $2.8 million, an increase of 36%, as compared to $2.1 million in the same period of the prior fiscal year. Gross margin as a percentage of revenue was 32% for the fourth quarter of fiscal 2022, compared to 25% for the same period of the prior fiscal year. The increase in gross margin as a percentage of revenue is driven by the increase in revenue, as well as an increase in the share of sales generated from PMO products, which have higher gross margins. The fourth quarter of fiscal 2021 was negatively impacted by lower yields and efficiencies pertaining to newly launched products entering into volume production, which have improved during fiscal 2022.
Operating expenses in the fourth quarter of fiscal 2022 were $3.6 million, a decrease of $1.2 million, or 25%, as compared to $4.8 million in the same period of the prior fiscal year. Selling, general and administrative ("SG&A") costs decreased by $1.2 million, or 30%, as compared to the same period of the prior fiscal year, and new product development costs decreased by $29,000, or 5%, as compared to the same period of the prior fiscal year. The decrease in SG&A costs is primarily due to a decrease of $1 million of expenses associated with the previously disclosed events that occurred at the Company's Chinese subsidiaries, including legal and consulting fees, as well as accrued severance for the former employees. Severance of approximately $430,000 remains accrued and unpaid as of June 30, 2022, as the Company's subsidiaries continue to pursue all legal remedies.
Net loss for the fourth quarter of fiscal 2022 was $1.4 million, or $0.05 basic and diluted loss per share, compared to $2.9 million, or $0.11 basic and diluted loss per share, for the fourth quarter of fiscal 2021. The decrease in net loss for the fourth quarter of fiscal 2022, as compared to the same period of the prior fiscal year, was primarily attributable to higher revenue and gross margin, as well as the absence of $1.2 million of non-recurring SG&A and Other expenses related to the events in our Chinese subsidiaries. These favorable items were partially offset by an increase in the provision for income taxes of approximately $584,000, as compared to the same period of the prior fiscal year.
Income tax expense is primarily related to income taxes from our operations in China, including estimated Chinese withholding taxes associated with intercompany dividends declared by LightPath Optical Instrumentation (Zhenjiang) Co., Ltd. ("LPOIZ") and payable to LightPath as the parent company in the U.S. The increase in income tax expense for the fourth quarter of fiscal 2022, as compared to the same period of the prior fiscal year, is primarily due to the determination that a net deferred tax liability of approximately $541,000 should be recorded for LPOIZ as a result of timing differences existing between book versus tax basis of fixed assets. In the U.S., LightPath has net operating loss ("NOL") carry-forward benefits of approximately $53 million available to apply against taxable income as reported on a consolidated basis.
EBITDA for the fourth quarter of fiscal 2022 was $107,000, compared to an EBITDA loss of $2.0 million for the same period of the prior fiscal year. The increase in EBITDA in the fourth quarter of fiscal year 2022 was primarily attributable to the increase in revenue and gross margin, coupled with the decreases in SG&A and Other expenses incurred related to the previously disclosed events that occurred in our Chinese subsidiaries, as discussed above. In addition, there was a favorable difference of approximately $68,000 in foreign exchange gains and losses.
2022 Fiscal Year Financial Results
For fiscal year 2022, revenue was $35.6 million, a decrease of $2.9 million, or 8%, as compared to $38.5 million in the same period of the prior fiscal year. Revenue among our product groups for the fiscal year 2022 was as follows:
Product Group Revenue ($ in millions)** | Fiscal Year 2022 | Fiscal Year 2021 | % Change | |||||||||
IR products | $ | 18.7 | $ | 21.0 | -11 | % | ||||||
PMO products | $ | 15.0 | $ | 15.9 | -5 | % | ||||||
Specialty products | $ | 1.8 | $ | 1.6 | 12 | % | ||||||
** Subject to differences due to rounding
- Revenue generated by IR products was $18.7 million in fiscal year 2022, a decrease of 11%, as compared to $21.0 million in the prior fiscal year. The decrease in revenue is primarily driven by sales to customers in the industrial market.
- Revenue generated by PMO products was $15.0 million for the fiscal year 2022, a decrease of 5%, as compared to $15.9 million in the prior fiscal year. The decrease in revenue is primarily attributed to a reduction in orders from a key customer in the China telecommunications market due to a decrease in that customer's market share. This decrease was partially offset by an increase in sales through our catalog and distribution channels, as well as increases in sales to customers in the industrial and medical industries.
- Revenue generated by specialty products was $1.8 million in fiscal year 2022, an increase of 12%, compared to $1.6 million in the prior fiscal year. This increase is primarily driven by an increase in NRE projects for customers in the defense, industrial and medical markets.
Gross margin in fiscal year 2022 was $11.8 million, a decrease of 12%, as compared to $13.4 million in the prior fiscal year. Gross margin as a percentage of revenue was 33% for fiscal year 2022, compared to 35% for the prior fiscal year. Gross margin was unfavorably impacted by the 8% decrease in revenue, which resulted in under-utilized capacity in some areas. IR product margins also reflect increased costs associated with the completion of the coating department at the Company's facility in Riga, Latvia, which began to improve in the fourth quarter of fiscal year 2022 and we expect will continue to improve over time, as that facility works through the qualification stages for more products and begins to produce at higher volumes. In the second half of fiscal year 2022, margins were also negatively impacted by inflationary pressure in the cost of raw materials, and significantly increased energy costs, particularly in Latvia.
Operating expenses were $14.4 million, a decrease of $848,000, or 6%, as compared to $15.3 million in the prior fiscal year. SG&A costs decreased $768,000, or 6%, as compared to the same period of the prior fiscal year, while new product development costs decreased by $80,000, or 4%. The decrease in SG&A for fiscal year 2022 is primarily due to an $800,000 decrease in expenses associated with the previously disclosed events that occurred at our Chinese subsidiaries. This decrease was partially offset by an increase in expenses for travel and tradeshows, with fewer COVID-19 restrictions in place, as well as expenses for certain "value-added taxes" ("VAT") and related taxes owed by one of our Chinese subsidiaries from prior years, which was identified and settled in fiscal year 2022. These increases were offset by the absence of the following non-recurring expenses that were incurred in fiscal year 2021: (i) approximately $400,000 of additional compensation to our former Chief Executive Officer, as previously disclosed in the Current Report on Form 8-K filed with the SEC on November 18, 2020, and (ii) approximately $150,000 of additional stock compensation recorded as certain RSUs vested upon the retirement of two directors.
Net loss for fiscal year 2022 was $3.5 million, or $0.13 basic and diluted loss per share, compared to $3.2 million, or $0.12 basic and diluted loss per share, for fiscal year 2021. The increase in net loss for fiscal year 2022, as compared to fiscal year 2021, is primarily attributable to a $785,000 increase in operating loss resulting from lower gross margin, which was partially offset by lower operating expenses. Non-operating items include a $420,000 favorable difference for the previously disclosed accrual and subsequent reversal of a potential liability associated with the actions of our terminated employees of our Chinese subsidiaries.
EBITDA* for fiscal year 2022 was $1.2 million, compared to $1.5 million for fiscal year 2021. The decrease in EBITDA for fiscal year 2022 is primarily attributable to lower revenue and gross margin, partially offset by decreased SG&A and Other expenses, due to the decreases in expenses incurred related to the previously disclosed events that occurred in our Chinese subsidiaries, as well as certain officer, director, and personnel matters that occurred during fiscal year 2021, as discussed above.
Liquidity and Capital Resources
Cash provided by operating activities was $1.5 million for fiscal year 2022, compared to $4.7 million for the prior fiscal year. The decrease in cash flows from operations during fiscal year 2022 is due to the increase in net loss and a decrease in accounts payable and accrued liabilities, as well as an increase in accounts receivable, partially offset by a reduction in inventory. Capital expenditures were $1.6 million for fiscal year 2022, compared to $3.2 million in the prior fiscal year. The majority of capital expenditures during fiscal 2022 were related to the continued expansion of IR coating capacity as well as increasing diamond turned lens capacity to meet current and forecasted demand.
Sales Backlog
As of June 30, 2022, LightPath's total backlog was $17.8 million, a decrease of 17% as compared to $21.3 million as of June 30, 2021. The decrease in backlog during fiscal year 2022 is primarily due to the timing of annual and multi-year contracts. These renewals 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. Our annual and multi-year contracts are expected to renew in future quarters. For example, in August 2022 we announced a $4 million supply agreement for PMO with a long time European customer of precision motion control systems and OEM assemblies. The new supply agreement will go into effect in the second half of fiscal year 2023 and is expected to run for between 12 and 18 months.
Investor Conference Call and Webcast Details
LightPath will host an audio conference call and webcast on Wednesday, September 14, 2022 at 5:00 p.m. ET to discuss its financial and operational performance for its fiscal 2022 fourth quarter and full year.
Date: Wednesday, September 14, 2022
Time: 5:00 PM (ET)
Dial-in Number: 1-877-317-2514
International Dial-in Number: 1-412-317-2514
Webcast: 4Q and Full Year Financial Results Webcast Link
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 September 28, 2022. To listen to the replay, dial 1-877-344-7529 (domestic) or 1-412-317-0088 (international), and enter conference ID #2160358.
*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.
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 Diamond TM ("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:
Brian M. Prenoveau, CFA
MZ Group - MZ North America
LPTH@mzgroup.us
+561 489 5315
(tables follow)
LIGHTPATH TECHNOLOGIES, INC. |
Condensed Consolidated Balance Sheets |
(unaudited) |
| June 30, | June 30, | |||||||
Assets | 2022 | 2021 | ||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 5,507,891 | $ | 6,774,694 | ||||
Trade accounts receivable, net of allowance of $36,313 and $45,643 | 5,211,292 | 4,656,354 | ||||||
Inventories, net | 6,985,427 | 8,659,587 | ||||||
Other receivables | - | 137,103 | ||||||
Prepaid expenses and other assets | 464,804 | 475,364 | ||||||
Total current assets | 18,169,414 | 20,703,102 | ||||||
Property and equipment, net | 11,640,463 | 13,279,867 | ||||||
Operating lease right-of-use assets | 10,420,604 | 9,015,498 | ||||||
Intangible assets, net | 4,457,798 | 5,582,881 | ||||||
Goodwill | 5,854,905 | 5,854,905 | ||||||
Deferred tax assets, net | 143,000 | 147,000 | ||||||
Other assets | 27,737 | 27,737 | ||||||
Total assets | $ | 50,713,921 | $ | 54,610,990 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 3,073,933 | $ | 2,924,333 | ||||
Accrued liabilities | 558,750 | 1,067,265 | ||||||
Accrued payroll and benefits | 2,081,212 | 2,810,043 | ||||||
Operating lease liabilities, current | 965,622 | 799,507 | ||||||
Loans payable, current portion | 998,692 | 634,846 | ||||||
Finance lease obligation, current portion | 55,348 | 212,212 | ||||||
Total current liabilities | 7,733,557 | 8,448,206 | ||||||
Deferred tax liabilities, net | 541,015 | - | ||||||
Finance lease obligation, less current portion | 11,454 | 66,801 | ||||||
Operating lease liabilities, noncurrent | 9,478,077 | 8,461,133 | ||||||
Loans payable, less current portion | 3,218,580 | 4,057,365 | ||||||
Total liabilities | 20,982,683 | 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; | ||||||||
shares issued and outstanding | 270,468 | 269,859 | ||||||
Additional paid-in capital | 232,315,003 | 231,438,651 | ||||||
Accumulated other comprehensive income | 935,125 | 2,116,152 | ||||||
Accumulated deficit | (203,789,358 | ) | (200,247,177 | ) | ||||
Total stockholders' equity | 29,731,238 | 33,577,485 | ||||||
Total liabilities and stockholders' equity | $ | 50,713,921 | $ | 54,610,990 | ||||
| LIGHTPATH TECHNOLOGIES, INC. |
| Condensed Consolidated Statements of Comprehensive Income (Loss) |
| (unaudited) |
| Three Months Ended June 30, | Year Ended June 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
Revenue, net | $ | 8,907,231 | $ | 8,332,316 | $ | 35,559,160 | $ | 38,464,821 | ||||||||
Cost of sales | 6,098,627 | 6,268,831 | 23,744,524 | 25,017,051 | ||||||||||||
Gross margin | 2,808,604 | 2,063,485 | 11,814,636 | 13,447,770 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative | 2,786,553 | 3,980,113 | 11,221,866 | 11,989,597 | ||||||||||||
New product development | 516,310 | 545,024 | 2,085,686 | 2,165,951 | ||||||||||||
Amortization of intangible assets | 281,271 | 281,271 | 1,125,083 | 1,125,083 | ||||||||||||
Loss on disposal of property and equipment | 8,898 | - | 9,235 | 8,951 | ||||||||||||
Total operating expenses | 3,593,032 | 4,806,408 | 14,441,870 | 15,289,582 | ||||||||||||
Operating loss | (784,428 | ) | (2,742,923 | ) | (2,627,234 | ) | (1,841,812 | ) | ||||||||
Other income (expense): | ||||||||||||||||
Interest expense, net | (78,411 | ) | (48,863 | ) | (229,475 | ) | (215,354 | ) | ||||||||
Other income (expense), net | 37,628 | (171,095 | ) | 177,435 | (194,170 | ) | ||||||||||
Total other income (expense), net | (40,783 | ) | (219,958 | ) | (52,040 | ) | (409,524 | ) | ||||||||
Loss before income taxes | (825,211 | ) | (2,962,881 | ) | (2,679,274 | ) | (2,251,336 | ) | ||||||||
Income tax provision | 534,579 | (49,671 | ) | 862,907 | 933,915 | |||||||||||
Net loss | $ | (1,359,790 | ) | $ | (2,913,210 | ) | $ | (3,542,181 | ) | $ | (3,185,251 | ) | ||||
Foreign currency translation adjustment | (1,018,399 | ) | 300,670 | (1,181,027 | ) | 1,380,260 | ||||||||||
Comprehensive income (loss) | $ | (2,378,189 | ) | $ | (2,612,540 | ) | $ | (4,723,208 | ) | $ | (1,804,991 | ) | ||||
Loss per common share (basic) | $ | (0.05 | ) | $ | (0.11 | ) | $ | (0.13 | ) | $ | (0.12 | ) | ||||
Number of shares used in per share calculation (basic) | 27,042,388 | 26,796,326 | 27,019,534 | 26,314,025 | ||||||||||||
Loss per common share (diluted) | $ | (0.05 | ) | $ | (0.11 | ) | $ | (0.13 | ) | $ | (0.12 | ) | ||||
Number of shares used in per share calculation (diluted) | 27,042,388 | 26,796,326 | 27,019,534 | 26,314,025 | ||||||||||||
| LIGHTPATH TECHNOLOGIES, INC. |
| Condensed Consolidated Statements of Changes in Stockholders' Equity |
| (unaudited) |
| Accumulated | ||||||||||||||||||||||||
| Class A | Additional | Other | Total | |||||||||||||||||||||
| Common Stock | Paid-in | Comphrehensive | Accumulated | Stockholders' | ||||||||||||||||||||
| Shares | Amount | Capital | Income | Deficit | Equity | |||||||||||||||||||
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 | 8,145 | 81 | 29,897 | - | - | 29,978 | ||||||||||||||||||
Exercise of Stock Options & RSUs, net | 1,085,883 | 10,859 | 131,833 | - | - | 142,692 | ||||||||||||||||||
Stock-based compensation on stock options & RSUs | - | - | 642,865 | - | - | 642,865 | ||||||||||||||||||
Foreign currency translation adjustment | - | - | - | 1,380,260 | - | 1,380,260 | ||||||||||||||||||
Net loss | - | - | - | - | (3,185,251 | ) | (3,185,251 | ) | ||||||||||||||||
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 | 21,012 | 210 | 51,501 | - | - | 51,711 | ||||||||||||||||||
Exercise of Stock Options & RSUs, net | 39,865 | 399 | (399 | ) | - | - | - | |||||||||||||||||
Stock-based compensation on stock options & RSUs | - | - | 825,250 | - | - | 825,250 | ||||||||||||||||||
Foreign currency translation adjustment | - | - | - | (1,181,027 | ) | - | (1,181,027 | ) | ||||||||||||||||
Net loss | - | - | - | - | (3,542,181 | ) | (3,542,181 | ) | ||||||||||||||||
Balances at June 30, 2022 | 27,046,790 | $ | 270,468 | $ | 232,315,003 | $ | 935,125 | $ | (203,789,358 | ) | $ | 29,731,238 | ||||||||||||
| LIGHTPATH TECHNOLOGIES, INC. |
| Condensed Consolidated Statements of Cash Flows |
| (unaudited) |
| Year Ended June 30, | ||||||||
| 2022 | 2021 | |||||||
Cash flows from operating activities | ||||||||
Net loss | $ | (3,542,181 | ) | $ | (3,185,251 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 3,617,743 | 3,509,436 | ||||||
Interest from amortization of debt costs | 51,974 | 18,572 | ||||||
Loss on disposal of property and equipment | 9,235 | 8,951 | ||||||
Stock-based compensation on stock options & RSUs, net | 825,250 | 642,865 | ||||||
Provision for doubtful accounts receivable | 7,713 | (35,799 | ) | |||||
Change in operating lease assets and liabilities | (222,047 | ) | (187,616 | ) | ||||
Inventory write-offs to allowance | 456,538 | 157,399 | ||||||
Deferred taxes | 545,015 | 512,000 | ||||||
Changes in operating assets and liabilities: | ||||||||
Trade accounts receivable | (562,651 | ) | 1,568,171 | |||||
Other receivables | 137,103 | (5,052 | ) | |||||
Inventories | 1,217,622 | 167,496 | ||||||
Prepaid expenses and other assets | 10,560 | 137,810 | ||||||
Accounts payable and accrued liabilities | (1,087,746 | ) | 1,423,042 | |||||
Net cash provided by operating activities | 1,464,128 | 4,732,024 | ||||||
Cash flows from investing activities | ||||||||
Purchase of property and equipment | (1,626,614 | ) | (3,158,784 | ) | ||||
Net cash used in investing activities | (1,626,614 | ) | (3,158,784 | ) | ||||
Cash flows from financing activities | ||||||||
Proceeds from exercise of stock options | - | 142,692 | ||||||
Proceeds from sale of common stock from Employee Stock Purchase Plan | 51,711 | 29,978 | ||||||
Loan costs | (61,223 | ) | - | |||||
Borrowings on loans payable | 266,850 | 275,377 | ||||||
Payments on loans payable | (681,301 | ) | (1,013,014 | ) | ||||
Repayment of finance lease obligations | (212,211 | ) | (278,462 | ) | ||||
Net cash used in financing activities | (636,174 | ) | (843,429 | ) | ||||
Effect of exchange rate on cash and cash equivalents | (468,143 | ) | 657,495 | |||||
Change in cash and cash equivalents | (1,266,803 | ) | 1,387,306 | |||||
Cash and cash equivalents, beginning of period | 6,774,694 | 5,387,388 | ||||||
Cash and cash equivalents, end of period | $ | 5,507,891 | $ | 6,774,694 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Interest paid in cash | $ | 157,407 | $ | 199,524 | ||||
Income taxes paid | $ | 267,585 | $ | 1,054,232 | ||||
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 June 30, | Year Ended June 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
Net loss | $ | (1,359,790 | ) | $ | (2,913,210 | ) | $ | (3,542,181 | ) | $ | (3,185,251 | ) | ||||
Depreciation and amortization | 854,123 | 900,964 | 3,617,743 | 3,509,436 | ||||||||||||
Income tax provision (benefit) | 534,579 | (49,671 | ) | 862,907 | 933,915 | |||||||||||
Interest expense | 78,411 | 48,863 | 229,475 | 215,354 | ||||||||||||
EBITDA | $ | 107,323 | $ | (2,013,054 | ) | $ | 1,167,944 | $ | 1,473,454 | |||||||
% of revenue | 1 | % | -24 | % | 3 | % | 4 | % | ||||||||
SOURCE: LightPath Technologies, Inc.
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