pfie-20240930

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended	September 30, 2024
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the Transition Period From ________ to _________

Commission File Number 001-36378

PROFIRE ENERGY, INC.

(Exact name of registrant as specified in its charter)


Nevada			20-0019425
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
321 South 1250 West, Suite 1
Lindon, Utah			84042
(Address of principal executive offices)			(Zip Code)

(801) 796-5127

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common, $0.001 Par Value

PFIE

NASDAQ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large accelerated filer ☐			Accelerated Filer ☐
Non-accelerated filer ☒			Smaller reporting company ☒
			Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.) Yes ☐ No ☒

As of November 5, 2024, the registrant had 53,687,955 shares of common stock issued and 46,199,725 shares of common stock outstanding, par value $0.001.

PROFIRE ENERGY, INC.

FORM 10-Q

TABLE OF CONTENTS


		Page

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements

	Condensed Consolidated Balance Sheets	3

	Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited)	4

	Condensed Consolidated Statements of Stockholders' Equity (Unaudited)	6

	Condensed Consolidated Statements of Cash Flows (Unaudited)	8

	Notes to the Condensed Consolidated Financial Statements (Unaudited)	9

Item 2. Management's Discussion and Analysis of Financial Condition And Results of Operations		24

Item 3. Quantitative and Qualitative Disclosure about Market Risk		28

Item 4. Controls and Procedures		28

PART II — OTHER INFORMATION

Item 1. Legal Proceedings		29

Item 1A. Risk Factors		29

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		29

Item 3. Defaults Upon Senior Securities		29

Item 4. Mine Safety Disclosures		29

Item 5. Other Information		29

Item 6. Exhibits		30

Signatures		30

PART I. FINANCIAL INFORMATION

Item 1 Financial Information


PROFIRE ENERGY, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
	As of
	September 30, 2024		December 31, 2023
ASSETS	(Unaudited)
CURRENT ASSETS
Cash and cash equivalents	$	7,963,892	$	10,767,519
Short-term investments	2,338,259		2,799,539

Accounts receivable, net	16,431,559		14,013,740
Inventories, net (note 3)	17,188,656		14,059,656
Prepaid expenses and other current assets (note 4)	3,379,650		2,832,262

Total Current Assets	47,302,016		44,472,716
LONG-TERM ASSETS
Net deferred tax asset	436,578		496,785
Long-term investments	6,584,919		6,425,582

Lease right-of-use asset (note 6)	369,549		432,907
Property and equipment, net	11,330,713		10,782,372
Intangible assets, net	998,736		1,104,102
Goodwill	2,579,381		2,579,381
Total Long-Term Assets	22,299,876		21,821,129
TOTAL ASSETS	$	69,601,892	$	66,293,845

LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable	$	2,166,969	$	2,699,556
Accrued liabilities (note 5)	4,728,919		4,541,820
Current lease liability (note 6)	136,739		130,184
Income taxes payable	542,393		1,723,910
Total Current Liabilities	7,575,020		9,095,470
LONG-TERM LIABILITIES
Net deferred income tax liability	53,318		52,621
Long-term lease liability (note 6)	241,793		307,528
TOTAL LIABILITIES	7,870,131		9,455,619

STOCKHOLDERS' EQUITY (note 7)
Preferred stock: $0.001 par value, 10,000,000 shares authorized: no shares issued or outstanding	—		—
Common stock: $0.001 par value, 100,000,000 shares authorized: 53,687,955 issued and 46,379,557 outstanding at September 30, 2024, and 53,047,231 issued and 46,803,868 outstanding at December 31, 2023	53,690		53,048
Treasury stock, at cost	(10,976,706)		(9,324,272)
Additional paid-in capital	33,675,391		32,751,749
Accumulated other comprehensive loss	(2,902,754)		(2,844,702)
Retained earnings	41,882,140		36,202,403
TOTAL STOCKHOLDERS' EQUITY	61,731,761		56,838,226
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	69,601,892	$	66,293,845

The accompanying notes are an integral part of these condensed consolidated financial statements.


PROFIRE ENERGY, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income and Comprehensive Income
(Unaudited)
	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2024		2023		2024		2023
			(See Note 1)				(See Note 1)
REVENUES (note 8)
Sales of products, net	$	16,017,224	$	14,085,028	$	42,435,024	$	41,562,935
Sales of services, net	1,180,729		858,871		3,564,582		2,624,514
Total Revenues	17,197,953		14,943,899		45,999,606		44,187,449

COST OF SALES
Cost of sales - products	7,881,956		6,666,949		20,418,350		19,157,973
Cost of sales - services	1,034,242		799,866		2,683,156		2,304,838
Total Cost of Sales	8,916,198		7,466,815		23,101,506		21,462,811

GROSS PROFIT	8,281,755		7,477,084		22,898,100		22,724,638

OPERATING EXPENSES
General and administrative	5,058,465		4,605,566		14,431,441		12,573,171
Research and development	337,597		182,253		952,666		649,506
Depreciation and amortization	135,541		145,662		435,209		428,644
Total Operating Expenses	5,531,603		4,933,481		15,819,316		13,651,321

INCOME FROM OPERATIONS	2,750,152		2,543,603		7,078,784		9,073,317

OTHER INCOME (EXPENSE)
Gain on sale of property and equipment	84,971		17,350		221,860		251,768
Other expense	8,973		19,718		(11,322)		(26,704)
Interest income	93,299		74,165		248,543		255,865
Interest expense	(2,358)		(4,438)		(7,960)		(6,226)
Total Other Income	184,885		106,795		451,121		474,703

INCOME BEFORE INCOME TAXES	2,935,037		2,650,398		7,529,905		9,548,020

INCOME TAX EXPENSE	(752,400)		(611,008)		(1,850,168)		(2,061,851)

NET INCOME	$	2,182,637	$	2,039,390	$	5,679,737	$	7,486,169

OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation loss	$	139,211	$	(301,642)	$	(231,674)	$	(28,838)
Unrealized gains (losses) on investments	107,924		(71,193)		173,622		(25,322)
Total Other Comprehensive Loss	247,135		(372,835)		(58,052)		(54,160)

COMPREHENSIVE INCOME	$	2,429,772	$	1,666,555	$	5,621,685	$	7,432,009

BASIC EARNINGS PER SHARE	$	0.05	$	0.04	$	0.12	$	0.16
FULLY DILUTED EARNINGS PER SHARE	$	0.04	$	0.04	$	0.12	$	0.15

BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING	46,809,342		47,521,238		46,937,404		47,364,445
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING	48,739,900		49,504,024		48,867,962		49,314,304

The accompanying notes are an integral part of these condensed consolidated financial statements.


PROFIRE ENERGY, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Stockholders' Equity
(Unaudited)
	Common Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Retained Earnings		Total Stockholders' Equity
	Shares	Amount
Balance, December 31, 2023	46,803,868	$	53,048	$	32,751,749	$	(2,844,702)	$	(9,324,272)	$	36,202,403	$	56,838,226
Stock based compensation	—	—		197,443		—		—		—		197,443
Stock issued in exercise of stock options	3,869	4		846		—		—		—		850
Stock issued in settlement of RSUs and accrued bonuses	286,489	288		324,127		—		—		—		324,415
Tax withholdings paid related to stock based compensation	—	—		(308,090)		—		—		—		(308,090)

Foreign currency translation	—	—		—		(244,801)		—		—		(244,801)
Unrealized gains on investments	—	—		—		11,066		—		—		11,066
Net income	—	—		—		—		—		1,434,375		1,434,375
Balance, March 31, 2024	47,094,226	$	53,340	$	32,966,075	$	(3,078,437)	$	(9,324,272)	$	37,636,778	$	58,253,484
Stock based compensation	—	—		375,062		—		—		—		375,062
Stock issued in exercise of stock options	57,982	58		45,223		—		—		—		45,281
Stock issued in settlement of RSUs	194,331	194		(194)		—		—		—		—
Tax withholdings paid related to stock based compensation	—	—		(10,807)		—		—		—		(10,807)
Treasury stock repurchased	(133,791)	—		—		—		(190,621)		—		(190,621)
Foreign currency translation	—	—		—		(126,084)		—		—		(126,084)
Unrealized gains on investments	—	—		—		54,632		—		—		54,632
Net income	—	—		—		—		—		2,062,725		2,062,725
Balance, June 30, 2024	47,212,748	$	53,592	$	33,375,359	$	(3,149,889)	$	(9,514,893)	$	39,699,503	$	60,463,672
Stock based compensation	—	—		242,790		—		—		—		242,790
Stock issued in exercise of stock options	98,053	98		74,631		—		—		—		74,729
Stock issued in settlement of RSUs	—	—		—		—		—		—		—
Tax withholdings paid related to stock based compensation	—	—		(17,389)		—		—		—		(17,389)
Treasury stock repurchased	(931,244)	—		—		—		(1,461,813)		—		(1,461,813)
Foreign currency translation	—	—		—		139,211		—		—		139,211
Unrealized gains on investments	—	—		—		107,924		—		—		107,924
Net income	—	—		—		—		—		2,182,637		2,182,637
Balance, September 30, 2024	46,379,557	$	53,690	$	33,675,391	$	(2,902,754)	$	(10,976,706)	$	41,882,140	$	61,731,761

The accompanying notes are an integral part of these condensed consolidated financial statements.





	Common Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Retained Earnings	Total Stockholders' Equity
	Shares	Amount
Balance, December 31, 2022	47,105,771	$	52,144	$	31,737,843	$	(3,294,873)	$	(7,336,323)	$

SEC Form 10-Q filed by Profire Energy Inc.