Applied UV, Inc.

Net sales were $10.8 million in Q2 2023, up $4.9 million or 83.6% from $5.9 million in Q2 2022. Gross profit increased to $2.4 million from $1.3 million, and gross margin was 22.2% versus 22.1% a year ago. SG&A was $4.9 million, up from $4.0 million, operating loss was $2.7 million versus $2.8 million, and net loss was $3.0 million versus $2.9 million. Cash and cash equivalents were $3.3 million at June 30, 2023, compared with $2.7 million a year earlier. Management reiterated expected total revenues for calendar 2023 of approximately $45 million and said it expects to approach cash flow positive over the next two quarters.

Max Munn framed the quarter as another strong execution period and emphasized scale, gross margin expansion, and operating expense discipline as the keys to reaching profitability. He highlighted the record backlog, expanding hospitality demand, and progress integrating new businesses and technologies. His tone was confident and execution-focused, with repeated references to being on track for the top-line target and moving toward positive cash flow.

Mike Riccio detailed that revenue growth came mainly from the Disinfection/Healthy Building Technologies segment, which added approximately $4.0 million from the acquisitions of PURO Lighting and LED Supply Co., while Hospitality added $0.9 million. He noted gross profit of $2.4 million and a 22.2% gross margin, with SG&A rising to $4.9 million due mainly to acquisition-related costs, partly offset by lower other SG&A and corporate expenses. He also cited $0.5 million of interest expense tied to borrowings from Streeterville Capital and Pinnacle Bank, and said cash and cash equivalents were $3.3 million at quarter-end.

There was no substantive analyst Q&A after the formal remarks; the call ended shortly after management commentary. The most notable forward-looking answer came from Max Munn, who said the company was confident it could approach cash flow positive results in the next two quarters and reiterated the $45 million full-year revenue target. Management also emphasized that cost synergies from PURO, LED Supply, and the Canon manufacturing transfer should improve the cost structure.