Taronis Fuels Inc (TRNFQ)

[mick]

Total cash operating expenses during the second quarter were $5.5 million, and $4.8 million excluding depreciation, amortization, and non-cash stock expenses. For the same period in the second quarter of 2019, operating expenses were $4.0 million, and $3.1 million excluding all non-cash expenses. The increase was primarily attributed to increased payroll, as the Company has expanded its operations substantially over the past twelve months. Payroll for the second quarter was $3.1 million, compared to $2.1 million for the same period in 2019. Headcount increased over 40% in the last 12 months, largely in line with the 43.9% increase in payroll and related benefits expenses.

All other cash operating expenses were $1.7 million for the second quarter, as compared to $1.5 million for the first quarter of 2020. The 14.5% quarter over quarter increase in non-payroll expenses was largely related to the new corporate headquarters and manufacturing facilities launched in Arizona during the second quarter of 2020.