PROFIRE ENERGY INC

CIK:0001289636|SEC Filings

Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
REVENUES (note 8)
Total Revenues	$ 17,197,953	$ 14,943,899	$ 45,999,606	$ 44,187,449
COST OF SALES
Total Cost of Sales	8,916,198	7,466,815	23,101,506	21,462,811
GROSS PROFIT	8,281,755	7,477,084	22,898,100	22,724,638
OPERATING EXPENSES
General and administrative	5,058,465	4,605,566	14,431,441	12,573,171
Research and development	337,597	182,253	952,666	649,506
Depreciation and amortization	135,541	145,662	435,209	428,644
Total Operating Expenses	5,531,603	4,933,481	15,819,316	13,651,321
INCOME FROM OPERATIONS	2,750,152	2,543,603	7,078,784	9,073,317
OTHER INCOME (EXPENSE)
Gain on sale of property and equipment	84,971	17,350	221,860	251,768
Other expense	8,973	19,718	(11,322)	(26,704)
Interest income	93,299	74,165	248,543	255,865
Interest expense	(2,358)	(4,438)	(7,960)	(6,226)
Total Other Income	184,885	106,795	451,121	474,703
INCOME BEFORE INCOME TAXES	2,935,037	2,650,398	7,529,905	9,548,020
INCOME TAX EXPENSE	(752,400)	(611,008)	(1,850,168)	(2,061,851)
NET INCOME	2,182,637	2,039,390	5,679,737	7,486,169
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation loss	139,211	(301,642)	(231,674)	(28,838)
Unrealized gains (losses) on investments	107,924	(71,193)	173,622	(25,322)
Total Other Comprehensive Loss	247,135	(372,835)	(58,052)	(54,160)
COMPREHENSIVE INCOME	$ 2,429,772	$ 1,666,555	$ 5,621,685	$ 7,432,009
BASIC EARNINGS PER SHARE (in dollars per share)	$ 0.05	$ 0.04	$ 0.12	$ 0.16
FULLY DILUTED EARNINGS PER SHARE (in dollars per share)	$ 0.04	$ 0.04	$ 0.12	$ 0.15
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING (in shares)	46,809,342	47,521,238	46,937,404	47,364,445
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING (in shares)	48,739,900	49,504,024	48,867,962	49,314,304
Product
REVENUES (note 8)
Total Revenues	$ 16,017,224	$ 14,085,028	$ 42,435,024	$ 41,562,935
COST OF SALES
Total Cost of Sales	7,881,956	6,666,949	20,418,350	19,157,973
Service
REVENUES (note 8)
Total Revenues	1,180,729	858,871	3,564,582	2,624,514
COST OF SALES
Total Cost of Sales	$ 1,034,242	$ 799,866	$ 2,683,156	$ 2,304,838

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
OPERATING ACTIVITIES
Net income	$ 5,679,737	$ 7,486,169
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	802,842	822,204
Gain on sale of property and equipment	(221,860)	(251,768)
Bad debt expense	209,177	420,883
Stock awards issued for services	815,295	878,392
Changes in operating assets and liabilities:
Accounts receivable	(2,353,006)	(2,360,696)
Income taxes receivable/payable	(1,178,904)	464,256
Inventories	(3,167,889)	(3,245,588)
Prepaid expenses and other current assets	(583,976)	(437,023)
Deferred tax asset/liability	61,953	466,398
Accounts payable and accrued liabilities	(286,109)	(1,574,995)
Net Cash Provided by (Used in) Operating Activities	(222,740)	2,668,232
INVESTING ACTIVITIES
Proceeds from sale of property and equipment	316,095	328,350
Sale (purchase) of investments	476,281	(383,520)
Purchase of property and equipment	(1,403,525)	(974,070)
Net Cash Used in Investing Activities	(611,149)	(1,029,240)
FINANCING ACTIVITIES
Value of equity awards surrendered by employees for tax liability	(336,833)	(502,307)
Cash received in exercise of stock options	96,476	178,195
Purchase of treasury stock	(1,652,434)	(339,313)
Principal paid toward lease liability	(33,499)	(26,617)
Net Cash Used in Financing Activities	(1,926,290)	(690,042)
Effect of exchange rate changes on cash	(43,448)	5,335
NET CHANGE IN CASH	(2,803,627)	954,285
CASH AT BEGINNING OF PERIOD	10,767,519	7,384,578
CASH AT END OF PERIOD	7,963,892	8,338,863
CASH PAID FOR:
Interest	7,960	6,227
Income taxes	3,107,899	1,126,750
NON-CASH FINANCING AND INVESTING ACTIVITIES
Common stock issued in settlement of accrued bonuses	324,415	378,526
Common stock issued for stock options	$ 120,860	$ 0

Condensed Consolidated Balance Sheets - USD ($)	Sep. 30, 2024	Dec. 31, 2023
CURRENT ASSETS
Cash and cash equivalents	$ 7,963,892	$ 10,767,519
Short-term investments	2,338,259	2,799,539
Accounts receivable, net	16,431,559	14,013,740
Inventories, net (note 3)	17,188,656	14,059,656
Prepaid expenses and other current assets (note 4)	3,379,650	2,832,262
Total Current Assets	47,302,016	44,472,716
LONG-TERM ASSETS
Net deferred tax asset	436,578	496,785
Long-term investments	6,584,919	6,425,582
Lease right-of-use asset (note 6)	369,549	432,907
Property and equipment, net	11,330,713	10,782,372
Intangible assets, net	998,736	1,104,102
Goodwill	2,579,381	2,579,381
Total Long-Term Assets	22,299,876	21,821,129
TOTAL ASSETS	69,601,892	66,293,845
CURRENT LIABILITIES
Accounts payable	2,166,969	2,699,556
Accrued liabilities (note 5)	4,728,919	4,541,820
Current lease liability (note 6)	136,739	130,184
Income taxes payable	542,393	1,723,910
Total Current Liabilities	7,575,020	9,095,470
LONG-TERM LIABILITIES
Net deferred income tax liability	53,318	52,621
Long-term lease liability (note 6)	241,793	307,528
TOTAL LIABILITIES	7,870,131	9,455,619
STOCKHOLDERS' EQUITY (note 7)
Preferred stock: $0.001 par value, 10,000,000 shares authorized: no shares issued or outstanding	0	0
Common stock: $0.001 par value, 100,000,000 shares authorized: 53,687,955 issued and 46,379,557 outstanding at September 30, 2024, and 53,047,231 issued and 46,803,868 outstanding at December 31, 2023	53,690	53,048
Treasury stock, at cost	(10,976,706)	(9,324,272)
Additional paid-in capital	33,675,391	32,751,749
Accumulated other comprehensive loss	(2,902,754)	(2,844,702)
Retained earnings	41,882,140	36,202,403
TOTAL STOCKHOLDERS' EQUITY	61,731,761	56,838,226
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 69,601,892	$ 66,293,845