BOULDER CITY, Nev. — Amerityre Corp. generated higher sales and earnings in the quarter and six months ended Dec. 31, driven mainly by higher-than-expected sales of polyurethane foam tires from customers as businesses reopened following the COVID-19 shutdown.
Gross profit for the quarter rose 0.9% to $301,447 while sales revenue increased 12.9% to $1.2 million. Net income rose nearly fivefold to $176,852.
Gross profit for the six-month period rose 9.8% to $645,167 on 10.2% higher sales of $2.26 million. Net income tripled to $230,635.
Amerityre said in a 10-Q filing with the Securities and Exchange Commission that it expects sales of its polyurethane foam products to continue to account for the majority of its revenue for the remainder of the current fiscal year, which ends June 30.
The company noted it had experienced higher raw material costs, particularly chemical feedstocks, during the quarter and that it had been informed that there likely will be "significant" price increases in the coming months due to operating issues at supplier processing facilities and increased difficulties in receipt of imported material.
Amerityre derives its revenue from the sale of solid polyurethane foam tires, including tires for: light duty applications, including bicycles, hand trucks, lawn/garden equipment, etc.; industrial applications, such forklifts, golf carts, etc.; and agricultural applications.