Phares Stoltzfus — May 2026 Financial Insights

Prosynergy

Bookkeeping that creates value

Monthly Insights Report

May 2026 — Phares Stoltzfus

Prepared by Krishna · Prosynergy Bookkeeping

May at a Glance

Revenue

$7,929

↓ from $22,724 in April

Net Income

($22,187)

↓ from ($429) in April

Cash in Bank

($3,394)

↓ from $627 in April

Profit Quality Score

0.61

Cash burn = 61¢ per $1 of reported loss

Three Things That Matter This Month

Insight 01

The May Loss Has Been Right-Sized

$12,608 of K&H materials was moved from May COGS into Inventory, where it waits until the order ships. May's net loss is now $22,187 — and most of it reverses in June when that inventory matches against $30,553 in revenue.

Action: Confirm the K&H ship date with Phares this week — that one invoice decides whether June looks strong.

Insight 02

Your Biggest Customer Is Also Your Biggest Risk

Penns Best / Knight & Hale is $15,132 of your $29,971 in receivables — half of everything owed to you. The K&H invoice alone ($11,190) is 61–90 days past due. With checking overdrawn, collecting this is a cash priority.

Action: Call Knight & Hale this week. Get a payment commitment or specific payment date in writing.

Insight 03

Operating on the Line of Credit — For Now

Checking ended May overdrawn at ($3,864); the line of credit is funding operations. The May 15 Penns Best deposit made the month work — it funded a $20,000 LOC paydown and the K&H materials. LOC dropped from $44,706 to $37,800. Collecting K&H stabilizes cash.

Action: Before the next large materials purchase, confirm LOC availability and set a minimum cash cushion target.

Profit & Loss — 4-Month Summary

	Feb 2026	Mar 2026	Apr 2026	May 2026	4-Mo Avg
Revenue & Gross Profit
Total Revenue	$60,728	$38,383	$22,724	$7,929	$32,441
Cost of Goods Sold	$20,503	$24,534	$12,753	$23,410	$20,300
Gross Profit	$40,225	$13,849	$9,972	($15,480)	$12,141
Gross Margin %	66.2%	36.1%	43.9%	N/M	37.4%
Operating Expenses
Shop Expenses	$5,612	$5,531	$4,988	$1,312	$4,361
Utilities	$2,794	$919	$865	$189	$1,192
Professional Services	$30	$1,903	$975	$1,834	$1,186
Travel Expenses	$547	$594	$1,031	$418	$647
General Expenses	$140	$43	$825	$1,480	$622
Banking & Interest	$1,953	$1,916	$1,677	$1,621	$1,792
Office Expenses	$122	$272	$89	$89	$143
Total OpEx	$11,198	$11,178	$10,450	$6,942	$9,942
Profitability
Operating Profit	$29,027	$2,671	($479)	($22,422)	$2,199
Operating Margin %	47.8%	7.0%	−2.1%	N/M	6.8%
Other Income (Net)	—	—	$50	$235	$71
Net Income	$29,027	$2,671	($429)	($22,187)	$2,271
Net Margin %	47.8%	7.0%	−1.9%	N/M	7.0%

N/M = not meaningful (COGS exceeds revenue from K&H timing). $12,608 of May materials sits in Inventory and matches as June COGS on shipment. Teal = better than 4-mo average · Coral = below.

Cash Flow Waterfall — May 2026

What This Means

K&H Deposit +$30,553

Cash in from Penns Best on May 15. Sits as a liability until the order ships and is invoiced, then becomes revenue. It kept May out of a deeper deficit.

COGS −$23,410

Actual May production costs after $12,608 was moved to inventory — materials, freight, owner wages, and labor on work shipped this month.

Inventory — K&H −$12,608

K&H materials reclassified from COGS to Inventory. Flows to June COGS when matched against the $30,553 revenue — correct accrual matching.

Ending Cash −$1,702

Bank (−$3,864) + petty cash ($470) + undeposited funds ($1,692). Checking is overdrawn; the LOC funds operations until K&H collections arrive.

LOC Net Paydown −$6,906

Balance down from $44,706 to $37,800. The Penns Best deposit funded a $20,000 mid-month paydown; further draws covered May operations.

Key Accounts Snapshot

Cash in Bank

($3,394)

Checking #6719: ($3,864)
Petty Cash: $470
Undeposited Funds: $1,692

↓ from $627 in April — overdrawn

Accounts Receivable

$29,971

Current: $7,461 · 1–30 days: $3,033
31–60 days: $718
61–90 days: $13,606 ⚠
91+ days: $5,153
DSO (4-mo avg basis): 27.7 days

62.6% past 60 days — K&H $11,190

Accounts Payable

$20,954

Current: $12,893 (incl. K&H materials)
1–30 days: $26
61–90 days: $2,427 (Rossi Group)
91+ days: $5,609 (7 vendors)
DPO (4-mo avg basis): 26.8 days

↑ from $18,305 in April

Credit Lines

$61,814

LOC #1963: $37,800
Capital One MC 2442: $16,749
PayPal Credit: $7,126
PayPal MC: $139

↓ from $71,579 in April — improving

Long-Term Debt

$371,511

Mortgage #1962: $338,304
Helping Hands Fund: $18,278
Newco Loan: $6,000
Tuscarora Hardwood: $8,928

↓ from $374,925 in April

Customer Prepayment

$31,034

K&H / Penns Best deposit received
May 15, 2026. Converts to revenue
upon order shipment in June.
Watch account for next month.

↑ from $481 in April

Financial Health Ratios

Current Ratio

0.94

Covers 94¢ of every $1 in current liabilities, up from 0.83 after the inventory move. Adjusted for the $31,034 prepayment (worked off in production, not cash): 1.29.

Healthy >1.5 · Watch 1.0–1.5 · Concern <1.0

Quick Ratio

0.23

Cash + A/R cover 23¢ per $1 of obligations, driven by the overdrawn bank. Improves sharply once K&H is collected.

Healthy >1.0 · Watch 0.5–1.0 · Concern <0.5

Days Sales Outstanding

27.7 days

Healthy on average revenue — but 62.6% of A/R is past 60 days, so the average masks real aging.

Healthy <45 days · Watch 45–60 days · Concern >60 days

Days Payable Outstanding

26.8 days

Healthy payment timing. Current A/P includes the unpaid K&H bills — Pioneer ($8,570) and Sweetwater ($3,622).

Healthy 20–60 days · Watch outside that range

Before Next Month

The Event

The Knight & Hale / Penns Best order must be shipped and invoiced in June. May's $12,608 inventory allocation is waiting to match against revenue, and the materials bills (Pioneer $8,570 + Sweetwater $3,622) are still in A/P.

Estimated Impact

$30,553 moves from liability to revenue on invoicing; $12,608 inventory flows to COGS. Net gross profit impact: about +$17,945 in one invoice.

One Action Item

Phares confirms the K&H ship date so the invoice is timed correctly and the Pioneer/Sweetwater bills are paid from the proceeds.
Deadline: June 20, 2026

How helpful was this month's review?

Thank you for your feedback!

This report was prepared by Prosynergy Bookkeeping for Phares Stoltzfus and is intended solely for the use of the named client. Financial information is based on data provided through May 31, 2026 on an accrual basis. This report does not constitute tax, legal, or investment advice. Please consult a qualified advisor for guidance on specific business decisions.