Great annual report.
REVENUES AND GROSS MARGINS
Revenues increased $1,040,925, or 58% from the prior year, which resulted from increases of $681,478 in the engineering segment and $381,477 in the electronics segment, partially offset by a $22,031 decrease in the chemical segment. The decrease in the chemical division resulted from an increase in sales to customers in our Anti-static division in the amount of $12,408 offset by a decrease in sales in the remaining divisions in the amount of $34,439. The increase in the electronics division resulted from an increased customer base. The increase in engineering services is primarily the result of several projects for one customer.
The decrease in gross profit in the chemical segment and increase in gross profit in the electronics segment resulted from changes in the mix of products sold.
The increase in gross profit in the engineering segment resulted from better utilization of labor due to the increased revenue from new projects for one customer.
OPERATING INCOME (LOSS)
Income (loss) from operations for the years ended March 31, 2015 and 2014 was $249,949 and ($223,792) respectively, a difference of $473,741.
Selling, general and administrative expenses increased by $171,450, or 19%, from $901,892 to $1,073,342, mainly due to increased professional fees in the amount of $75,240, increased royalties and commissions of $60,666, and increased salaries and wages of $12,507, increased payroll taxes of $5,505, increased freight out of $10,396 and increased travel of $9,582 offset by decreased advertising and promotion of $5,089.
NET INCOME AND NET LOSS PER SHARE
Net income (loss) for the fiscal years ended March 31, 2015 and 2014 was $358,790 or $0.01 per share and ($225,214) or $(0.00) per share, respectively.
LIQUIDITY AND CAPITAL RESOURCES
At March 31, 2015, we had cash and cash equivalents of $216,395 as compared to $83,156 at March 31, 2014. The increase of $133,239 was primarily the result of cash provided in operations in the amount of $149,524 offset by cash used in financing activities in the amount of $15,024 and cash used by investing activities of $1,261. We expect to have enough cash to fund operations for the next twelve months. Our note payable to Kearny Federal Savings Bank of $121,966 on March 31, 2015, is secured and collateralized by restricted cash of $232,525. This note bears an interest rate of 2% above the rate for the savings account. The interest rate at March 31, 2015 was 2.15% per annum and is payable on demand.
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