POCI Precision Optics Corporation Inc

Precision Optics Corporation, Inc. (NASDAQ: POCI), a leading designer and manufacturer of advanced optical instruments for the medical and defense/aerospace industries, announced operating results on an unaudited basis for its first quarter fiscal year 2025 for the period ended September 30, 2024.

Q1 2025 Financial Highlights (3 Months Ended September 30, 2024):

• Revenue was $4.2 million compared to $4.3 million in the same quarter of the previous fiscal year and in line with the expectations provided in September 2024.
• Engineering revenue was $1.9 million compared to $1.9 million in the same quarter of the previous fiscal year.
• Production revenue was $2.3 million compared to $2.4 million in the same quarter of the previous fiscal year.
• Gross margins were 26.6% compared to 33.9% in the same quarter of the previous year.
• Net loss for the quarter was ($1.3) million, compared to $(0.5) million in the same quarter of the previous year.  
• Adjusted EBITDA was $(1.0) million for the quarter compared to $(0.2) million in the same quarter of the previous year.  

Recent Additional Highlights:

• In October 2024, following FDA 510(k) clearance by its customer for a single-use urological endoscope imaging assembly, POC accelerated the timeline for production deliveries against a $9 million order announced in May 2024. POC currently estimates approximately $3.6 million in product deliveries during its fiscal year ended June 2025.
• Today, POC announced receipt of an initial $340,000 production order from a large, global medical device company to provide initial stocking quantities of a new single-use ophthalmic endoscope. POC expects follow-on orders to support first year requirements after launch with delivery rates two to three times those of the initial stocking order.

Precision Optics' CEO, Joseph Forkey, commented, “The first quarter results that we released today were in line with the expectations we provided in September 2024. We are seeing a rapid ramp in production revenue commencing in the current quarter with expectations for substantial revenue growth and dramatic improvements in adjusted EBITDA for the second quarter ending December 31, 2024 and further improvements throughout this fiscal year.”

“Anticipated sequential revenue growth will be driven by a number of product development programs transitioning into production or ramping from recent production levels. We continue to see acceleration of single-use applications. We now have two programs beginning production this year and additional single-use programs in our product development pipeline.”

“We are at an inflection point leading to a high growth production business, building off of the investments we’ve made over many years to advance our single-use product solutions. This is an exciting time for Precision Optics,” Dr. Forkey concluded.

The following table summarizes the first quarter (unaudited) results for the periods ended September 30, 2024, and 2023:

		Three Months
		Ended September 30
			2024			2023
Revenues		$	4,197,053		$	4,321,255
Gross Profit			1,117,330			1,463,611
Stock Compensation Expenses			149,364			108,746
Other			2,214,907			1,760,158
Total Operating Expenses			2,364,271			1,868,904
Operating Income (Loss)			(1,246,941	)		(405,293	)
Net Income (Loss)			(1,311,247	)		(464,415	)
Income (Loss) per Share
	Basic & Fully Diluted	$	(0.21	)	$	(0.08	)
Weighted Average Common Shares Outstanding
	Basic & Fully Diluted		6,216,630			6,066,518

Conference Call DetailsDate and Time: Thursday, November 14, at 5:00pm ET

Call-in Information: Interested parties can access the conference call by dialing (844) 735-3662 or (412) 317-5705.

Live Webcast Information: Interested parties can access the conference call via a live webcast, which is available at https://app.webinar.net/rOVEypeYAoR.

Replay: A teleconference replay of the call will be available until November 21, 2024, at (877) 344-7529 or (412) 317-0088, replay access code 7879688. A webcast replay will be available at https://app.webinar.net/rOVEypeYAoR.

About Precision Optics CorporationFounded in 1982, Precision Optics is a vertically integrated optics company primarily focused on leveraging its proprietary micro-optics and 3D imaging technologies to the healthcare and defense/aerospace industries by providing services ranging from new product concept through mass manufacture. Utilizing its leading-edge in-house design, prototype, regulatory and fabrication capabilities as well as its Lighthouse Imaging division's electronic imaging expertise and its Ross Optical division's high volume world-wide sourcing, inspecting and production resources, the Company designs and manufactures next-generation product solutions for the most challenging customer requirements. Within healthcare, Precision Optics enables next generation medical device companies around the world to meet the increasing demands of the surgical community who require more enhanced and smaller imaging systems for minimally invasive surgery, including single-use medical devices, as well as 3D endoscopy systems to support the rapid proliferation of surgical robotic systems. In addition to these next generation applications, Precision Optics has supplied top tier medical device companies with a wide variety of optical products for decades, including complex endocouplers and specialized endoscopes. The Company is also leveraging its technical proficiency in micro-optics to enable leading edge defense/aerospace applications which require the highest quality standards and the optimization of size, weight and power. For more information, please visit www.poci.com.

Non-GAAP Financial Measures

Precision Optics has provided in this press release financial information that has not been prepared in accordance with accounting principles generally accepted in the Unites States of America (“non-GAAP”). The non-GAAP financial measure is Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization). Adjusted EBITDA also excludes from Net Income (Loss) the effect of stock-based compensation AND DEPRECIATION, AMORTIZATION AND INTEREST EXPENSE.

This non-GAAP financial measure assists Precision Optics management in comparing its operating performance over time because certain items may obscure the underlying business trends and make comparisons of long-term performance difficult, as they are of a nature and/or size that occur with inconsistent frequency or relate to discrete acquisition or restructuring plans that are fundamentally different from the ongoing productivity of the Company. Precision Optics management also believes that presenting this measure allows investors to view its performance using the same measures that the Company uses in evaluating its financial and business performance and trends.

Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information calculated in accordance with GAAP. Investors are encouraged to review the reconciliation of non-GAAP measures to their most directly comparable GAAP financial measures. A reconciliation of the non-GAAP financial measure presented above to GAAP results has been provided in the financial tables included with this press release.

About Forward-Looking StatementsThis press release contains forward-looking statements. Forward-looking statements include, but are not limited to, statements that express the Company's intentions, beliefs, expectations, strategies, predictions or any other statements related to the Company's future activities or future events or conditions. Forward-looking statements in this press release include, without limitation, future levels of expected product deliveries and projections related to future EBITDA goals. These statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by the Company's management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in the forward-looking statements due to numerous risk factors, including those risks discussed in the Company's annual report on Form 10-K and in other documents that we file from time to time with the SEC. Any forward-looking statements speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement, except as required by law.

Company Contact: PRECISION OPTICS CORPORATION22 East BroadwayGardner, Massachusetts 01440-3338Telephone: 978-630-1800

Investor Contact:LYTHAM PARTNERS, LLCRobert BlumTelephone: 602-889-9700poci@lythampartners.com

PRECISION OPTICS CORPORATION, INC. CONSOLIDATED BALANCE SHEETS(UNAUDITED)
		September 30,				June 30,
		2024				2024
ASSETS
Current Assets:
Cash and cash equivalents		$	635,572			$	405,278
Accounts receivable, net of allowance for doubtful accounts of $103,224 at September 30, 2024 and $118,872 at June 30, 2024			3,123,595				3,545,491
Inventories			3,460,621				2,868,100
Prepaid expenses			288,475				299,364
Total current assets			7,508,263				7,118,233
Fixed Assets:
Machinery and equipment			3,346,694				3,341,194
Leasehold improvements			819,954				810,914
Furniture and fixtures			426,234				416,425
			4,592,882				4,568,533
Less—accumulated depreciation and amortization			4,123,250				4,074,960
Net fixed assets			469,632				493,573
Operating lease right-to-use asset			146,247				189,999
Patents, net			290,309				286,559
Goodwill			8,824,210				8,824,210
Total other assets			9,260,766				9,300,768
TOTAL ASSETS		$	17,238,661			$	16,912,574
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Revolving line of credit		$	500,000			$	1,000,000
Current portion of capital lease obligation			38,886				41,113
Current maturities of long-term debt			285,901				276,928
Accounts payable			2,143,351				1,397,313
Contract liabilities			1,106,546				1,172,350
Accrued compensation and other			1,115,135				840,662
Operating lease liability			146,247				178,450
Total current liabilities			5,336,066				4,906,816
Capital lease obligation, net of current portion			18,384				27,369
Long-term debt, net of current maturities and debt issuance costs			1,746,764				1,899,052
Operating lease liability, net of current portion			-				11,549
Total liabilities			7,101,214				6,844,786
Stockholders’ Equity:
Common stock, $0.01 par value: 50,000,000 shares authorized; issued and outstanding – 6,350,170 shares at September 30, 2024 and 6,073,939 at June 30, 2024			63,502				60,739
Additional paid-in capital			62,575,576				61,197,433
Accumulated deficit			(52,501,631	)			(51,190,384	)
Total stockholders’ equity			10,137,447				10,067,788
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	17,238,661			$	16,912,574

PRECISION OPTICS CORPORATION, INC.CONSOLIDATED STATEMENTS OF OPERATIONSFOR THE THREE MONTHS ENDEDSEPTEMBER 30, 2024 AND 2023(UNAUDITED)
		Three MonthsEnded September 30,
		2024				2023
Revenues		$	4,197,053			$	4,321,255
Cost of Goods Sold			3,079,723				2,857,644
Gross Profit			1,117,330				1,463,611
Research and Development Expenses			400,659				212,758
Selling, General and Administrative Expenses			1,963,612				1,656,146
Total Operating Expenses			2,364,271				1,868,904
Operating Loss			(1,246,941	)			(405,293	)
Interest Expense			(64,306	)			(59,122	)
Net Loss		$	(1,311,247	)		$	(464,415	)
Loss Per Share:
Basic & Fully Diluted		$	(0.21	)		$	(0.08	)
Weighted Average Common Shares Outstanding:
Basic & Fully Diluted			6,216,630				6,066,518

PRECISION OPTICS CORPORATION, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITYFOR THE THREE MONTHS ENDEDSEPTEMBER 30, 2024 AND 2023(UNAUDITED)
		Three Month Period Ended September 30, 2024
		Number of Shares				CommonStock			AdditionalPaid-inCapital					AccumulatedDeficit				TotalStockholders’Equity
Balance, July 1, 2024			6,073,939			$	60,739			$	61,197,433			$	(51,190,384	)		$	10,067,788
Issuance of common stock in registered direct offering			265,868				2,659				1,201,883								1,204,542
Proceeds from exercise of stock option			10,363				104				26,896								27,000
Stock-based compensation			–				–				149,364				–				149,364
Net loss			–				–				–				(1,311,247	)			(1,311,247	)
Balance, September 30, 2024			6,350,170			$	63,502			$	62,575,576			$	(52,501,631	)		$	10,137,447

		Three Month Period Ended September 30, 2023
		Number of Shares				CommonStock				AdditionalPaid-inCapital				AccumulatedDeficit				TotalStockholders’Equity
Balance, July 1, 2023			6,066,518			$	60,665			$	60,224,934			$	(48,239,007	)		$	12,046,592
Stock-based compensation			–				–				108,746								108,746
Net loss			–				–				–				(464,415	)			(464,415	)
Balance, September 30, 2023			6,066,518			$	60,665			$	60,333,680			$	(48,703,422	)		$	11,690,923

PRECISION OPTICS CORPORATION, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
ADJUSTED EBITDA
		Three Months
		September 30,
		2024					2023
Net Income (loss) (GAAP)		$	(1,311,247	)			$	(464,415	)
Stock based compensation			149,364					108,746
Depreciation and amortization			48,290					51,564
State Income Taxes			-					-
Interest expense			64,306					59,122
Adjusted EBITDA (non-GAAP)		$	(1,049,287	)			$	(244,983	)