Syntec Optics Holdings, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, reflecting significant changes in revenue, profitability, and operational metrics compared to the previous fiscal period.

For Q3 2024, net sales reached $7.9 million, a 19.2% increase from $6.6 million in Q3 2023. However, for the nine months ended September 30, 2024, net sales slightly decreased to $21.1 million, down 0.2% from $21.2 million in the same period last year. The cost of goods sold for Q3 2024 was $6.0 million, a 26.8% increase from $4.8 million in Q3 2023, contributing to a gross profit of $1.8 million, which represented a decrease from $1.8 million in the prior year. For the nine-month period, gross profit fell to $4.7 million, down 20.5% from $5.9 million in 2023.

General and administrative expenses surged by 31.4% to $1.7 million in Q3 2024, compared to $1.3 million in Q3 2023, and increased by 31.9% for the nine months to $5.9 million from $4.4 million. This rise in expenses, coupled with a decline in gross profit, led to an operating income of $106,240 for Q3 2024, down from $529,173 in Q3 2023. The company reported a net loss of $13,289 for Q3 2024, contrasting with a net income of $353,980 in Q3 2023. For the nine months, the net loss was $(940,589), a significant decline from a net income of $974,767 in the same period last year.

As of September 30, 2024, Syntec's total assets increased to $27.3 million from $26.5 million at the end of 2023, while total liabilities rose to $15.2 million from $13.5 million. Total stockholder’s equity decreased to $12.1 million from $13.1 million. The company’s cash position also deteriorated, with cash decreasing to $476,784 from $2.2 million at the end of 2023.

Strategically, Syntec completed a merger transaction on November 7, 2023, with OmniLit Acquisition Corporation, resulting in Legacy Syntec becoming a wholly-owned subsidiary of New Syntec. This merger is expected to enhance operational capabilities and market reach. However, the company faced challenges, including non-compliance with financial covenants, leading to a waiver obtained on November 12, 2024, which will adjust the line of credit and increase interest margins.

The company continues to focus on its core markets, including defense, medical, and consumer sectors, while managing supply chain disruptions and inflation impacts. Despite the challenges, Syntec is implementing controls to improve its financial reporting and operational effectiveness.