Optical Cable Corporation (NASDAQ:OCC) stock fell 0.69% (As on Dec 21, 11:22:38 AM UTC-4, Source: Google Finance) after the company in the fourth quarter of FY 21 has reported 14.4% increase in the consolidated net sales to $15.9 million, compared to net sales of $13.9 million for the same period last year, with increased net sales in the wireless carrier and enterprise markets, compared to the same period last year. Gross profit increased 20% to $5.1 million in the fourth quarter of fiscal year 2021, compared to gross profit of $4.2 million for the same period last year. Gross profit margin, increased to 31.8% in the fourth quarter of fiscal year 2021 compared to 30.3% in the fourth quarter of fiscal year 2020. For the fourth quarter of fiscal year 2021, OCC recorded a net loss of $6,000, or $0.00 per basic and diluted share, compared to a net loss of $406,000, or $0.06 per basic and diluted share, for the fourth quarter of fiscal year 2020.

Furthermore, SG&A expenses increased to $4.8 million during the fourth quarter of fiscal year 2021, compared to $4.3 million for the fourth quarter of fiscal year 2020. The increase in SG&A expenses was primarily the result of net increases in employee and contracted sales personnel related costs, as well as increases in shipping costs. Included in employee and contracted sales personnel related costs are commissions, which increased due to the increase in net sales when comparing the fourth quarter of fiscal year 2021 to the same period last year. Shipping costs also increased due to the increase in sales when comparing the two periods.

Moreover, during fiscal year 2021, OCC recognized a refundable payroll tax credit totaling $4.3 million under the ERTC program. OCC was an eligible small employer under the gross receipts decline test, which qualified the Company to claim ERTC in the first two calendar quarters of 2021 under the amended ERTC program. As of October 31, 2021, OCC had a $2.2 million receivable for ERTC still to be refunded. As of October 31, 2021, the company had outstanding borrowings of $3.5 million on the revolver and $4.4 million in available credit. The company also had outstanding loan balances of $4.9 million under our real estate term loan.

Further, on July 1, 2021, the SBA forgave the entire balance of the PPP Loan (including accrued interest). As a result, the Company recognized a gain on the extinguishment of debt of approximately $5.0 million in fiscal year 2021.