OTC:PCYN
PROCYON CORP
A specialized entity reporting $5.0M revenue with a negative net income of -$341k driven by substantial operating expenses and interest costs.
Key Metrics
Investment Thesis
Bull Case
Investors may view the substantial current assets of $2.4M and positive interest income as potential stabilizers while monitoring for a turnaround in operational efficiency to close the widening loss gap.
Bear Case
The stock is heavily exposed to solvency risks given the -$341k net loss, -$2.3M deficit in retained earnings, and negative cash flow from operations which limits reinvestment capabilities without external financing.
About PROCYON CORP
PROCYON CORP (PCYN) is a mid-cap OTC company with approximately $5.0M in revenue and $3.9M in gross profit, currently navigating significant operational losses of -$0.3M in the most recent year.
Analysis
Management Discussion
The company generated $5.0M in revenue but faced a sharp decline in profitability with net income dropping from -$0.1M to -$0.3M, primarily due to non-cash adjustments and high operating costs exceeding gross margins.
Industry Overview
The company operates within a sector where maintaining positive cash flow from operations is critical, yet this firm currently faces challenges with operating expenses of $4.1M significantly eroding its $3.9M gross profit.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 |
|---|---|---|
| Revenue | $4.7M | $5.0M |
| Cost of Revenue | $1.1M | $1.1M |
| Gross Profit | $3.6M | $3.9M |
| Operating Expenses | $3.7M | $4.1M |
| Operating Income | $-97.4K | $-231.7K |
| R&D | $30.6K | $30.1K |
| G&A | $1.8M | $2.0M |
| Stock-Based Comp | $0 | $7.7K |
| Depreciation | $52.8K | $81.7K |
| Other OpEx | $1.8M | $2.1M |
| Non-Operating Income | $32.0K | $60.4K |
| Interest Income | $11.8K | $24.6K |
| Pre-Tax Income | $-65.4K | $-171.3K |
| Income Tax | $-15.1K | $169.9K |
| Continuing Ops | $-50.2K | $-341.1K |
| Discontinued Ops | $0 | $0 |
| Net Income | $-50.2K | $-341.1K |
| Minority Interest | $0 | $0 |
| Net to Common | $-50.2K | $-341.1K |
| Metric | 2023 | 2024 |
|---|---|---|
| Current Assets | $2.2M | $2.4M |
| Accounts Receivable | $494.0K | $512.9K |
| Inventory | $431.4K | $510.0K |
| Prepaid Expenses | $298.5K | $434.1K |
| Other Current Assets | $1.0M | $908.8K |
| Long-Term Assets | $1.3M | $838.5K |
| PP&E (Net) | $281.0K | $262.0K |
| Operating Leases | $527.2K | $338.1K |
| Other LT Assets | $517.9K | $238.4K |
| Total Assets | $3.6M | $3.2M |
| Current Liabilities | $626.1K | $769.2K |
| Accounts Payable | $175.1K | $160.9K |
| Current Leases | $173.6K | $180.7K |
| Other Current Liab | $277.5K | $427.6K |
| Long-Term Liabilities | $319.9K | $147.9K |
| LT Operating Leases | $319.9K | $139.2K |
| Other LT Liab | $0 | $8.7K |
| Total Liabilities | $946.0K | $917.1K |
| Shareholders' Equity | $2.6M | $2.3M |
| Paid-In Capital | $35.6K | $41.1K |
| Retained Earnings | $-2.0M | $-2.3M |
| Total L&E | $3.6M | $3.2M |
| Metric | 2023 | 2024 |
|---|---|---|
| Net Income (CFO) | $-50.2K | $-341.1K |
| Non-Cash Adjustments | $220.2K | $14.9K |
| Working Capital Changes | $-24.5K | $265.0K |
| Cash from Operations | $145.5K | $-61.3K |
| Capital Expenditures | $180.1K | $63.9K |
| Cash from Investing | $-454.6K | $-63.9K |
| Cash from Financing | $0 | $0 |
| FX Effect | $0 | $0 |
| Net Change in Cash | $-309.1K | $-125.2K |
| Beginning Cash | $760.4K | $451.3K |
| Ending Cash | $451.3K | $326.1K |
Frequently Asked Questions
How does PROCYON CORP make money?
Primary revenue streams include core operations generating $3.9M gross profit against $4.1M total operating expenses, alongside non-operating gains totaling $60k from discontinued or other activities.
What are the main risks for PCYN?
Persistent net losses of -$341k, high operating expense ratio relative to gross profit, significant accumulated retained earnings deficit of -$2.3M, and negative cash flow from operations of -$61k.
What is PCYN's competitive advantage?
Strong liquidity position with over $2.4M in current assets and a diversified asset base including $838k in long-term assets providing operational flexibility.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.