Photon Control : Financial Statements Q1 2021

March 31,

December 31,

Note

2021

2020

Assets

Current assets

Cash and cash equivalents

$

44,154

$

48,398

Trade and other receivables

9,508

7,138

Income taxes receivable

64

255

Inventories

9,612

8,816

Prepaid expenses and deposits

744

905

Total current assets

64,082

65,512

Property and equipment

5

7,034

7,171

Intangible assets

6

3,259

3,398

Goodwill

971

971

Deferred tax assets

2,865

2,937

Total assets

$

78,211

$

79,989

Liabilities and Shareholders' Equity

Current liabilities

Accounts payable and accrued liabilities

$

6,799

$

6,389

Income taxes payable

534

6,107

Contingent consideration

2,388

2,150

Current portion of lease liabilities

287

284

Total current liabilities

10,008

14,930

Lease liabilities

877

951

Total liabilities

10,885

15,881

Shareholders' equity

Share capital

8

29,835

29,511

Contributed surplus

8

5,174

5,240

Accumulated other comprehensive loss ("AOCL")

(19)

(15)

Retained earnings

32,336

29,372

Total shareholders' equity

67,326

64,108

Total liabilities and shareholders' equity

$

78,211

$

79,989

See accompanying notes to the unaudited condensed interim consolidated financial statements

Approved on behalf of the Board:

"Nigel Hunton", Director

'Ronan McGrath", Director

Three months ended

March 31,

March 31,

Note

2021

2020

Revenue

10

$

17,967

$

17,312

Cost of sales

7,522

6,724

Gross profit

10,445

10,588

Operating expenses

General and administrative

2,195

2,155

Research and development

2,019

1,255

Sales and marketing

1,200

687

Total operating expenses

5,414

4,097

Operating income

5,031

6,491

Finance income, net

35

154

Accretion expense on contingent consideration

(21)

(122)

Change in fair value of contingent consideration

(675)

(88)

Foreign exchange (loss) gain

(241)

2,682

(902)

2,626

Net income before taxes

4,129

9,117

Income taxes

1,165

2,478

Net income

2,964

6,639

Other comprehensive (loss) income:

Unrealized (loss) gain from foreign exchange translation of sub

(4)

16

Total comprehensive income

$

2,960

$

6,655

Basic and diluted earnings per share

Weighted average common shares, basic

104,695,593

104,513,571

Weighted average common shares, diluted

106,244,277

104,925,738

Basic earnings per share

$

0.03

$

0.06

Diluted earnings per share

$

0.03

$

0.06

Note

Share

Contributed

AOCL

Retained

Total

capital

surplus

earnings

Balance, December 31, 2019

$

29,366

$

4,838

$

(121)

$

15,295

$

49,378

Exercise of stock options, net

8(e)

-

-

-

-

-

Share-based payments

-

115

-

-

115

Comprehensive income

-

-

16

6,639

6,655

Balance, March 31, 2020

$

29,366

$

4,953

$

(105)

$

21,934

$

56,148

Balance, December 31, 2020

29,511

5,240

(15)

29,372

64,108

Exercise of stock options, net

8(e)

324

(315)

-

-

9

Share-based payments

-

249

-

-

249

Comprehensive (loss) income

-

-

(4)

2,964

2,960

Balance, March 31, 2021

$

29,835

$

5,174

$

(19)

$

32,336

$

67,326

Three months ended

March 31,

March 31,

Note

2021

2020

Operating activities

Net income for the period

$

2,964

$

6,639

Adjustments for

Depreciation of property and equipment

428

365

Amortization of intangible assets

180

196

Share-based payments

249

115

Accretion expense on contingent consideration

21

122

Change in fair value of contingent consideration

675

88

Finance income, net

(35)

(154)

Income tax expense

1,165

2,478

Net change in non-cash working capital items

Trade and other receivables

(2,370)

(4,424)

Inventories

(796)

(1,115)

Prepaid expenses and deposits

161

(18)

Accounts payable and accrued liabilities

410

2,312

Income taxes (paid) received

(6,475)

1,526

Interest paid

(30)

(28)

Net cash (used in) provided by operating activities

(3,453)

8,102

Financing activities

Payment of contingent consideration

(458)

(255)

Payment of lease liabilities

(71)

(67)

Proceeds from exercise of stock options

9

-

Net cash used in financing activities

(520)

(322)

Investing activities

Purchase of property and equipment

5

(291)

(140)

Purchase of intangible assets

6

(41)

(24)

Interest received

65

182

Net cash (used in) provided by investing activities

(267)

18

Net (decrease) increase in cash and cash equivalents

(4,240)

7,798

Cash and cash equivalents, beginning of period

48,398

33,400

Effects of foreign exchange on cash and cash equivalents

(4)

16

Cash and cash equivalents, end of period

$

44,154

$

41,214