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Innovative Solutions and Support Inc. (ISSC) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing an increase in net sales to $15,968,729 from $9,308,063 in the same quarter the previous year. The increase was driven by a 125.7% rise in product sales, primarily due to the recently acquired military product line.
Cost of sales for the quarter was $9,358,272, representing 58.6% of net sales, compared to 40.7% in the same quarter of the previous year. This increase in cost ratio is attributed to changes in product mix and increased depreciation.
The company reported a gross profit of $6,610,457 for the quarter, compared to $5,523,162 in the previous year, with the decline in gross margin percentage attributed to changes in product mix and integration costs.
Research and development expenses increased to $1,107,736 from $901,144, primarily due to higher salaries and benefits.
Selling, general, and administrative expenses increased to $4,158,903 from $3,006,819, primarily due to acquisition-related expenses and increased depreciation.
Net income for the quarter was $736,192, down from $1,057,350 in the previous year. The decrease is attributed to higher costs and expenses.
Cash provided by operating activities was $1,841,458, while cash used in investing and financing activities was $261,364 and $1,514,510, respectively.
Innovative Solutions and Support had a working capital of $27,537,335 as of December 31, 2024. The company expects its existing cash balances, anticipated cash flows from operations, and current banking facility to be adequate to satisfy its liquidity needs for at least the next 12 months.
The filing also details various financial agreements, including an amended revolving line of credit with PNC Bank, increasing the aggregate principal amount available to $35,000,000.
Innovative Solutions and Support does not anticipate cash dividend payments to common stockholders in the near future.
The company continues to focus on integrating the acquired Honeywell product lines and enhancing its offerings in the air transport, military, and business aviation markets.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Innovative Solutions and Support Inc. quarterly 10-Q report dated February 14, 2025. To report an error, please email earnings@qz.com.