Taronis Fuels Inc (TRNFQ)

[mick]

Gross income for the second quarter was $7.2 million, which represented a 157% increase when compared to the $2.8 million in gross income reported for the same period in 2019. The primary cause for the increase was a significant improvement in gross margins, which were 81% for the quarter, as compared to 47% for the same period in the prior year. The primary factor for this accomplishment was the very high gross profits generated from the unit sale.

The second contributing factor for the improved profitability was the shift in revenue mix towards very high gross margins industrial gas products. The added sales from the wholesale gases sold into the HVAC supply market is expected to play a lasting role in gross margins going forward. Overall, the added HVAC supply centric revenue component is expected to permanently improve combined gross margins closer to 60% on a go-forward basis.