On this page of StockholderLetter.com we present the 7/21/2023 shareholder letter from SONO TEK CORP — ticker symbol SOTK. Reading current and past SOTK letters to shareholders can bring important insights into the investment thesis.
2023 ANNUAL REPORT NOVOCOAT IS A 3-AXIS AUTOMATED MOTION COATING PLATFORM SERIES DEVELOPED IN 2022
1975 We continue to innovate and expand our capabilities with fully engineered solutions designed and built exclusively by our engineering team, including proprietary application expertise. Pictured is the NovoCoat coating system, developed in 2022.
Cash, Cash Equivalents & Marketable Securities $ in Millions Stockholders Equity $ in Millions Total Debt $ in Millions *Does not include $1M PPP loan, forgiven in Q1 FY2022 The charts above demonstrate the financial success that has resulted from Sono-Tek s strategy of diversification of markets, products and geography. This has led to the ongoing development of an expanded line of ultrasonic coating products and systems that no other company can match, and which has created multiple future growth opportunities. Over the years we have built a substantial barrier to competition through our advanced technological leadership, which we apply to win and retain customers. This has proven to be a significant competitive differentiator for Sono-Tek in the global marketplace. Our environmentally-friendly ultrasonic spray systems provide high performance functional and protective coatings, with dramatic reductions in overspray, savings in raw materials, water and energy usage, improved process repeatability, transfer efficiency, high uniformity, and reduced emissions. Sono-Tek s founder was the inventor of the ultrasonic nozzle and we remain 2023 Annual Report
Fiscal Calendar: March 1st - February 28th ($ in thousands, except employee and per share data) Net Sales $ 17,133 $ 14,833 $ 15,355 $ 11,610 Gross Profit $ 8,613 $ 6,997 $ 7,313 $ 5,249 50.3% 47.2% 47.6% 45.2% $ 4,994 $ 4,012 $ 4,770 $ 3,841 29.1 27.0 31.1 33.1 $ 1,730 $ 1,645 $ 1,428 $ 1,325 10.1 11.1 9.3 11.4 $ 1,889 $ 1,340 $ 1,115 11.0% 9.0% 7.3% Gross Margin Selling, General and Administrative Expense % of Sales Research and Product Development Expense % of Sales Operating Income Operating Margin 82 0.7% Net Income $ 2,543 $ 1,121 $ 1,107 162 Diluted Earnings Per Share 0.01 Weighted Average Shares Outstanding - Diluted 0.16 0.07 0.07 15,623 15,672 15,359 15,219 Cash, Cash Equivalents and Marketable Securities $ 10,709 $ 8,648 $ 7,879 $ 5,510 Total Assets $ 17,626 $ 16,423 $ 14,743 $ 12,200 Total Debt (Long Term) $ 1,002* Stockholders Equity $ 13,741 $ 10,951 $ 9,782 $ 8,585 Book Value Per Share 0.88 0.71 0.64 0.56 0 708 871 Depreciation and Amortization 436 463 407 332 Capital Expenditures 327 344 722 547 Number of Full-Time Employees *Includes PPP loan, forgiven in Q1 FY2022 67 69 76 68
Backlog at Fiscal Year End $ in Millions Revenue $ in Millions Gross Margin 2023 Annual Report
 • shareholder letter icon 7/21/2023 Letter Continued (Full PDF)
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 • Benford's Law Stocks icon SOTK Benford's Law Stock Score = 70


SOTK 7/21/2023 Shareholder/Stockholder Letter Transcript:

2023 ANNUAL REPORT
    NOVOCOAT IS A 3-AXIS AUTOMATED MOTION COATING PLATFORM SERIES DEVELOPED IN 2022

1975
We continue to innovate and expand our capabilities with fully
engineered solutions designed and built exclusively by our
engineering team, including proprietary application expertise.
Pictured is the NovoCoat coating system, developed in 2022.

Cash, Cash Equivalents &
Marketable Securities
$ in Millions
Stockholders    Equity
$ in Millions
Total Debt
$ in Millions

*Does not include $1M PPP loan, forgiven in Q1 FY2022
The charts above demonstrate the financial success that has resulted from Sono-Tek   s strategy of diversification
of markets, products and geography. This has led to the ongoing development of an expanded line of ultrasonic
coating products and systems that no other company can match, and which has created multiple future growth
opportunities. Over the years we have built a substantial barrier to competition through our advanced technological
leadership, which we apply to win and retain customers. This has proven to be a significant competitive differentiator
for Sono-Tek in the global marketplace.
Our environmentally-friendly ultrasonic spray systems provide high performance functional and protective
coatings, with dramatic reductions in overspray, savings in raw materials, water and energy usage, improved
process repeatability, transfer efficiency, high uniformity, and reduced emissions.
Sono-Tek   s founder was the inventor of the ultrasonic nozzle and we remain

2023 Annual Report

Fiscal Calendar: March 1st - February 28th
($ in thousands, except employee and per share data)
Net Sales
$ 17,133
$ 14,833
$ 15,355
$ 11,610
Gross Profit
$ 8,613
$ 6,997
$ 7,313
$ 5,249
50.3%
47.2%
47.6%
45.2%
$ 4,994
$ 4,012
$ 4,770
$ 3,841
29.1
27.0
31.1
33.1
$ 1,730
$ 1,645
$ 1,428
$ 1,325
10.1
11.1
9.3
11.4
$ 1,889
$ 1,340
$ 1,115
11.0%
9.0%
7.3%
Gross Margin
Selling, General and Administrative Expense
% of Sales
Research and Product Development Expense
% of Sales
Operating Income
Operating Margin

82
0.7%
Net Income
$ 2,543
$ 1,121
$ 1,107

162
Diluted Earnings Per Share




0.01
Weighted Average Shares Outstanding - Diluted
0.16
0.07
0.07
15,623
15,672
15,359
15,219
Cash, Cash Equivalents and Marketable Securities
$ 10,709
$ 8,648
$ 7,879
$ 5,510
Total Assets
$ 17,626
$ 16,423
$ 14,743
$ 12,200
Total Debt (Long Term)

$ 1,002*


Stockholders    Equity
$ 13,741
$ 10,951
$ 9,782
$ 8,585
Book Value Per Share

0.88

0.71

0.64

0.56
0
708
871
Depreciation and Amortization

436

463

407

332
Capital Expenditures

327

344

722

547
Number of Full-Time Employees
*Includes PPP loan, forgiven in Q1 FY2022
67
69
76
68

Backlog at Fiscal Year End
$ in Millions
Revenue
$ in Millions
Gross Margin
2023 Annual Report



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