HYDROMER, INC

INTERIM CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

For the period ended

September 30, 2021

Concord, NC

1

HYDROMER, INC

INTERIM CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

For the period ended September 30, 2021

(UNAUDITED)

1Q FY22

% to Sales

1Q FY21

% to Sales

Change

% Change

Revenues

Sale of products

$

340,889

33.8%

$

316,069

33.3%

$

24,820

7.9%

Services revenue

379,733

37.7%

356,134

37.5%

23,599

6.6%

Royalty and contracts revenue

286,678

28.5%

276,935

29.2%

9,743

3.5%

Total revenues

1,007,300

100.0%

949,138

100.0%

58,162

6.1%

Expenses

Cost of sales

447,845

44.5%

693,027

73.0%

(245,182)

-35.4%

Operating expenses

927,822

92.1%

1,351,172

142.4%

(423,350)

-31.3%

Total expenses

1,375,667

136.6%

2,044,199

215.4%

(668,532)

-32.7%

Operating revenue/(loss)

(368,367)

-36.6%

(1,095,061)

-115.4%

726,694

-66.4%

Other income/(expense)

-

0.0%

(442)

0.0%

442

-100.0%

Total other income/(expense)

-

0.0%

(442)

0.0%

442

-100.0%

Income/(loss) from operations before income taxes

(368,367)

-36.6%

(1,095,503)

-115.4%

727,136

-66.4%

Expense/(benefit) from income taxes

(16,577)

-1.6%

(49,298)

-5.2%

32,721

-66.4%

Net income/(loss)

$

(351,790)

-34.9%

$

(1,046,205)

-110.2%

$

694,415

-66.4%

Basic and diluted loss from operations

(0.07)

(0.22)

Net income attributable to common shareholders

(0.07)

(0.22)

Weighted average number of common shares outstanding

4,772,318

4,772,318

-

0.0%

Retained earnings/(accumulated deficit), beg-of-period

$

(2,881,179)

$

(148,807)

$

(2,732,372)

1836.2%

Net income

(351,790)

(1,046,205)

694,415

-66.4%

Dividends paid

-

-

-

0.0%

Retained earnings/(accumulated deficit), end-of-period

$

(3,232,969)

$

(1,195,012)

$

(2,037,957)

170.5%

2

*** Legally Privileged | Confidential | Exempt from Disclosure ***

HYDROMER, INC

INTERIM CONDENSED CONSOLIDATED BALANCE SHEET

As of the period ended September 30, 2021

(UNAUDITED)

ASSETS

Current assets

Cash and cash equivalents

Trade receivables, net of $32K and $32K of allowance for doubtful account as of Sep 30, 2021 and 2020, respectively.

1Q FY22

1Q FY21

Change

% Change

138,975

116,170

22,805

19.6%

506,390

771,227

(264,837)

-34.3%

Inventory

132,473

114,140

18,333

16.1%

Prepaid assets

-

165,753

(165,753)

-100.0%

Total current assets

777,838

1,167,290

(389,452)

-33.4%

Property and equipment, net

1,702,129

1,887,430

(185,301)

-9.8%

Intangible assets, net

251,172

228,762

22,410

9.8%

Accrued income tax benefit

286,903

-

286,903

0.0%

Other assets

6,029

180,000

(173,971)

-96.7%

Total assets

3,024,071

3,463,482

(439,411)

-12.7%

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities

Accounts payable

533,572

678,981

(145,409)

-21.4%

Accrued expenses

406,110

(842,863)

1,248,973

-148.2%

Accrued income tax liability

-

97,023

(97,023)

-100.0%

Current portion of deferred revenue

-

23,400

(23,400)

-100.0%

Total current liabilities

939,682

(43,459)

983,141

-2262.2%

Long term debt

968,533

353,128

615,405

174.3%

Total long term liabilities

968,533

353,128

615,405

174.3%

Total liabilities

1,908,215

309,669

1,598,546

516.2%

Stockholders' Equity

Preferred stock - "No Par-Value"

1,000,000 shares authorized | 0 shares issued | 0 shares outstanding as of Sep 2021 and 2020

Common stock - "No Par Value"

15,000,000 shares authorized | 4,783,235 shares issued |

4,772,318 shares outstanding as of Sep 2021 and 2020

Contributed capital

Retained earnings

Treasury stock - at "Cost" 10,917 common shares

Total stockholders' equity

-

-

-

0.0%

3,721,815

3,721,815

0

0.0%

633,150

633,150

(0)

0.0%

(3,232,969)

(1,195,012)

(2,037,957)

170.5%

(6,140)

(6,140)

(0)

0.0%

1,115,856

3,153,813

(2,037,957)

-64.6%

Total liabilities and stockholders' equity

3,024,071

3,463,482

(439,411)

-12.7%

3

*** Legally Privileged | Confidential | Exempt from Disclosure ***

HYDROMER, INC

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

As of the period ended September 30, 2021

(UNAUDITED)

1Q FY22

1Q FY21

Change

% Change

Cash flows from operating activities

Net income

(351,790)

(1,046,205)

694,415

-66.4%

Adjustments for non-cash transactions

Depreciation and amortization

142,168

456,772

(314,604)

-68.9%

Allowance for doubtful accounts

(9,334)

(36,099)

26,765

-74.1%

Changes operational working capital, excluding cash and debt

Trade receivables

(78,942)

96,200

(175,142)

-182.1%

Inventory

(132,472)

40,001

(172,473)

-431.2%

Prepaid liabilities

-

(25,706)

25,706

-100.0%

Accounts payable and accrued liabilities

302,968

(1,978,115)

2,281,083

-115.3%

Deferred revenue

-

5,400

(5,400)

-100.0%

Accrued income tax benefit/liability

(16,577)

108,969

(125,546)

-115.2%

Net cash flow provided by/(used in) operating activities

(143,979)

(2,378,784)

2,234,805

-93.9%

Cash flows from investing activities

Changes in property and equipment

-

(434,041)

434,041

-100.0%

Changes in intangible assets

-

(48,156)

48,156

-100.0%

Changes in non-current assets/liabilities

(6,029)

(180,000)

173,971

-96.7%

Net cash provided by/(used in) investing activities

(6,029)

(662,197)

656,168

-99.1%

Cash flows from financing activities

Changes in dividends

-

-

-

0.0%

Changes in equity

-

2,259,906

(2,259,906)

-100.0%

Net cash flow provided by/(used in) financing activities

-

2,259,906

(2,259,906)

-100.0%

Net increase/(decrease) in cash and cash equivalents

(150,008)

(781,074)

631,067

-80.8%

Cash and cash equivalents at the beg of the fiscal year

288,983

897,244

(608,261)

-67.8%

Cash and cash equivalents at the end of the fiscal year

138,975

116,170

22,806

19.6%

4

*** Legally Privileged | Confidential | Exempt from Disclosure ***

HYDROMER, INC.

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

As of the period ended September 30, 2021

(UNAUDITED)

1Q FY22

1Q FY21

Change

% Change

Stockholders' equity at the beginning of the fiscal year

3,153,813

1,940,111

1,213,702

62.56%

Common stock and contributed capital:

Opening balance at the beginning of the fiscal year

4,348,825

4,348,825

-

0.00%

Stocks issued

-

-

-

0.00%

Closing balance at the end of the fiscal year

4,348,825

4,348,825

-

0.00%

Retained earnings:

Opening balance at the beginning of the fiscal year

(2,881,179)

(2,408,713)

(472,466)

19.61%

Net income

(351,790)

(1,046,205)

694,415

-66.37%

Dividends declared/paid

-

-

-

0.00%

Stocks repurchased

-

-

-

0.00%

Effects of changes in accounting policies

-

-

-

0.00%

Effects of correction of prior period errors

-

2,259,906

(2,259,906)

-100.00%

Closing balance at the end of the fiscal year

(3,232,969)

(1,195,012)

(2,037,957)

170.54%

Stockholders' equity at the end of the fiscal year

1,115,856

3,153,813

(2,037,957)

-64.62%

5

*** Legally Privileged | Confidential | Exempt from Disclosure ***

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Hydromer Inc. published this content on 19 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 August 2022 19:13:11 UTC.