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PFIE Profire Energy

Filed: 5 May 21, 4:03pm


UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period endedMarch 31, 2021
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period From ________ to _________

Commission File Number 001-36378

PROFIRE ENERGY, INC.
(Exact name of registrant as specified in its charter)

Nevada20-0019425
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
321 South 1250 West, Suite 1
Lindon, Utah84042
(Address of principal executive offices)(Zip Code)

(801) 796-5127
(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.    Yes ☒   No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒   No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer ☐Accelerated Filer ☐
Non-accelerated filer ☒Smaller reporting company ☒
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.)  Yes ☐     No ☒

Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading Symbol(s)Name of each exchange on which registered
Common, $0.001 Par ValuePFIENASDAQ




As of May 3, 2021, the registrant had 51,434,074 shares of common stock issued and 48,021,696 shares of common stock outstanding, par value $0.001.



PROFIRE ENERGY, INC.
FORM 10-Q
TABLE OF CONTENTS
Page
PART I — FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets
Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited)
Condensed Consolidated Statements of Stockholders' Equity (Unaudited)
Condensed Consolidated Statements of Cash Flows (Unaudited)
Notes to the Condensed Consolidated Financial Statements (Unaudited)
Item 2.  Management's Discussion and Analysis of Financial Condition And Results of Operations
Item 3.  Quantitative and Qualitative Disclosure about Market Risk
Item 4.  Controls and Procedures
PART II — OTHER INFORMATION
Item 1. Legal Proceedings
Item 1A.  Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6.  Exhibits
Signatures




PART I. FINANCIAL INFORMATION
Item 1 Financial Information

PROFIRE ENERGY, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
As of
March 31, 2021December 31, 2020
ASSETS(Unaudited)
CURRENT ASSETS
Cash and cash equivalents$10,475,429 $9,148,312 
Short-term investments2,293,992 2,388,601 
Accounts receivable, net2,772,162 3,719,508 
Inventories, net (note 3)8,104,532 8,414,772 
Prepaid expenses and other current assets (note 4)823,901 1,678,428 
Income tax receivable580,751 486,154 
Total Current Assets25,050,767 25,835,775 
LONG-TERM ASSETS
Long-term investments6,589,247 6,064,294 
Financing right-of-use asset38,969 50,094 
Property and equipment, net11,926,464 12,021,811 
Intangible assets, net1,716,187 1,771,870 
Goodwill2,579,381 2,579,381 
Total Long-Term Assets22,850,248 22,487,450 
TOTAL ASSETS$47,901,015 $48,323,225 
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable$975,755 $1,178,979 
Accrued liabilities (note 5)1,361,404 1,196,870 
Current financing lease liability (note 6)36,408 39,451 
Total Current Liabilities2,373,567 2,415,300 
LONG-TERM LIABILITIES
Net deferred income tax liability522,163 522,870 
Long-term financing lease liability (note 6)4,353 12,669 
TOTAL LIABILITIES2,900,083 2,950,839 
STOCKHOLDERS' EQUITY (note 7)
Preferred stock: $0.001 par value, 10,000,000 shares authorized: 0 shares issued or outstanding
Common stock: $0.001 par value, 100,000,000 shares authorized: 51,434,074 issued and 48,021,696 outstanding at March 31, 2021, and 51,384,961 issued and 47,972,583 outstanding at December 31, 202051,434 51,385 
Treasury stock, at cost(5,353,019)(5,353,019)
Additional paid-in capital30,391,837 30,293,472 
Accumulated other comprehensive loss(2,017,292)(2,148,924)
Retained earnings21,927,972 22,529,472 
TOTAL STOCKHOLDERS' EQUITY45,000,932 45,372,386 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$47,901,015 $48,323,225 

The accompanying notes are an integral part of these condensed consolidated financial statements.
4



PROFIRE ENERGY, INC. AND SUBSIDIARIES     
Condensed Consolidated Statements of Operations and Comprehensive Loss
(Unaudited)     
For the Three Months Ended March 31,
20212020
REVENUES (note 8)
Sales of goods, net$4,657,535 $6,860,958 
Sales of services, net434,814 586,184 
Total Revenues5,092,349 7,447,142 
COST OF SALES
Cost of goods sold-product2,537,634 3,833,682 
Cost of goods sold-services380,028 448,784 
Total Cost of Goods Sold2,917,662 4,282,466 
GROSS PROFIT2,174,687 3,164,676 
OPERATING EXPENSES
General and administrative expenses2,554,536 3,272,538 
Research and development256,891 409,726 
Depreciation and amortization expense167,485 147,472 
Total Operating Expenses2,978,912 3,829,736 
LOSS FROM OPERATIONS(804,225)(665,060)
OTHER INCOME (EXPENSE)
Gain on sale of fixed assets73,901 
Other income (expense)(97)347 
Interest income21,062 74,393 
Total Other Income94,866 74,740 
LOSS BEFORE INCOME TAXES(709,359)(590,320)
INCOME TAX BENEFIT107,859 225,056 
NET LOSS$(601,500)$(365,264)
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation gain (loss)$139,606 $(945,423)
Unrealized losses on investments(7,974)(157,354)
Total Other Comprehensive Income (Loss)131,632 (1,102,777)
COMPREHENSIVE LOSS$(469,868)$(1,468,041)
BASIC LOSS PER SHARE (note 9)$(0.01)$(0.01)
FULLY DILUTED LOSS PER SHARE (note 9)$(0.01)$(0.01)
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING47,990,101 47,492,441 
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING47,990,101 47,492,441 

The accompanying notes are an integral part of these condensed consolidated financial statements.
5



PROFIRE ENERGY, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Stockholders' Equity
(Unaudited)
Common StockAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)Treasury StockRetained EarningsTotal Stockholders' Equity
SharesAmount
Balance, December 31, 202047,972,583 $51,385 $30,293,472 $(2,148,924)$(5,353,019)$22,529,472 $45,372,386 
Stock based compensation— — 125,043— — — 125,043
Stock issued in settlement of RSUs49,113 49 (49)— — — 
Tax withholdings paid related to stock based compensation— — (26,629)— — — (26,629)
Foreign currency translation— — — 139,606 — — 139,606 
Unrealized losses on investments— — — (7,974)— — (7,974)
Net loss— — — — — (601,500)(601,500)
Balance, March 31, 202148,021,696 $51,434 $30,391,837 $(2,017,292)$(5,353,019)$21,927,972 $45,000,932 


Common StockAdditional Paid-In CapitalAccumulated Other Comprehensive Income (Loss)Treasury StockRetained EarningsTotal Stockholders' Equity
SharesAmount
Balance, December 31, 201947,411,977 $50,824 $29,584,172 $(2,415,460)$(5,353,019)$24,705,069 $46,571,586 
Stock based compensation— — 66,348— — — 66,348
Stock issued in exercise of stock options2,000 2,018 — — — 2,020 
Stock issued in settlement of RSUs and accrued bonuses271,684 272 419,101 — — — 419,373 
Tax withholdings paid related to stock based compensation— — (148,879)— — — (148,879)
Foreign currency translation— — — (945,423)— — (945,423)
Unrealized losses on investments— — — (157,354)— — (157,354)
Net loss— — — — — (365,264)(365,264)
Balance, March 31, 202047,685,661 $51,098 $29,922,760 $(3,518,237)$(5,353,019)$24,339,805 $45,442,407 

The accompanying notes are an integral part of these condensed consolidated financial statements.
6



PROFIRE ENERGY, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
For the Three Months Ended March 31,
20212020
OPERATING ACTIVITIES
Net loss$(601,500)$(365,264)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization expense293,615 259,801 
(Gain) Loss on sale of fixed assets(73,901)
Bad debt expense(3,084)133,803 
Stock awards issued for services125,043 66,348 
Changes in operating assets and liabilities:
Accounts receivable974,602 1,314,939 
Income taxes receivable/payable(94,597)107,561 
Inventories342,980 537,668 
Prepaid expenses and other current assets906,459 168,546 
Deferred tax asset/liability(707)(114,564)
Accounts payable and accrued liabilities(48,245)(1,837,760)
Net Cash Provided by Operating Activities1,820,665 271,078 
INVESTING ACTIVITIES
Proceeds from sale of property and equipment27,784 
Sale (purchase) of investments(438,830)387,326 
Purchase of property and equipment(57,825)(525,384)
Net Cash Used in Investing Activities(468,871)(138,058)
FINANCING ACTIVITIES
Value of equity awards surrendered by employees for tax liability(26,629)(148,879)
Cash received in exercise of stock options2,020 
Principal paid towards lease liability(11,227)(19,089)
Net Cash Used in Financing Activities(37,856)(165,948)
Effect of exchange rate changes on cash13,179 (95,598)
NET CHANGE IN CASH1,327,117 (128,526)
CASH AT BEGINNING OF PERIOD9,148,312 7,358,856 
CASH AT END OF PERIOD$10,475,429 $7,230,330 
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
CASH PAID FOR:
Interest$1,936 $872 
Income taxes$$
NON-CASH FINANCING AND INVESTING ACTIVITIES
Common stock issued in settlement of accrued bonuses$$419,373 

The accompanying notes are an integral part of these condensed consolidated financial statements.
7

PROFIRE ENERGY, INC. AND SUBSIDIARIES
Notes to the Condensed Consolidated Financial Statements (Unaudited)
For the three months ended March 31, 2021 and 2020


NOTE 1 - CONDENSED FINANCIAL STATEMENTS

Except where the context otherwise requires, all references herein to the "Company," "Profire," "we," "us," "our," or similar words and phrases are to Profire Energy, Inc. and its wholly owned subsidiaries, taken together.

The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, stockholders' equity, and cash flows at March 31, 2021 and for all periods presented herein have been made.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the Company's audited financial statements contained in its annual report on Form 10-K for the year ended December 31, 2020 ("Form 10-K").  The results of operations for the three month periods ended March 31, 2021 and 2020 are not necessarily indicative of the operating results for the full years.

NOTE 2 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization and Line of Business

This Organization and Summary of Significant Accounting Policies of the Company is presented to assist in understanding the Company's condensed consolidated financial statements. The Company's accounting policies conform to "US GAAP."

The Company provides burner-management products, solutions and services for the oil and gas industry primarily in the US and Canadian markets.

Significant Accounting Policies

There have been no changes to the significant accounting policies of the Company from the information provided in Note 1 of the notes to the consolidated financial statements in the Company's most recent Form 10-K.

Recent Accounting Pronouncements

The Company has evaluated all recent accounting pronouncements and determined that the adoption of pronouncements applicable to the Company has not had or is not expected to have a material impact on the Company's financial position, results of operations or cash flows.

NOTE 3 – INVENTORIES

Inventories consisted of the following at each balance sheet date:

As of
March 31, 2021December 31, 2020
Raw materials$362,324 $328,772 
Finished goods8,854,546 9,229,298 
Work in process
Subtotal9,216,870 9,558,070 
Reserve for obsolescence(1,112,338)(1,143,298)
Total$8,104,532 $8,414,772 

The accompanying notes are an integral part of these condensed consolidated financial statements.
8

PROFIRE ENERGY, INC. AND SUBSIDIARIES
Notes to the Condensed Consolidated Financial Statements
For the three months ended March 31, 2021 and 2020
NOTE 4 – PREPAID EXPENSES AND OTHER CURRENT ASSETS

Prepaid expenses and other current assets consisted of the following at each balance sheet date:
 As of
 March 31, 2021December 31, 2020
Assets classified as held for sale$$623,805 
Prepaid inventory449,358 542,313 
Prepaid insurance148,396 217,465 
Interest receivables66,097 65,984 
Vehicle trade-in credits6,896 55,733 
Other153,154 173,128 
Total$823,901 $1,678,428 

In the table above, the assets classified as "held for sale" consisted of an office building located in Spruce Grove, Alberta, Canada. During the three months ended March 31, 2021, we sold the remaining 3 bays that were part of the office building, which resulted in a gain of $42,378 CAD that was recorded during the period.

NOTE 5 – ACCRUED LIABILITIES

Accrued liabilities consisted of the following at each balance sheet date:
 As of
 March 31, 2021December 31, 2020
Employee-related payables$1,007,405 $789,573 
Inventory-related payables160,972 158,519 
Warranty liabilities43,352 71,852 
Other149,675 176,926 
Total$1,361,404 $1,196,870 

NOTE 6 – LEASES

We have leases for office equipment and office space. The leases for office equipment are classified as financing leases and the typical term is 36 months. We have the option to extend most office equipment leases, but we do not intend to do so. Accordingly, no extensions have been recognized in the right-of-use asset or lease liability. The office equipment lease payments are not variable and the lease agreements do not include any non-lease components, residual value guarantees, or restrictions. There are no interest rates implicit in the office equipment lease agreements, so we have used our incremental borrowing rate to determine the discount rate to be applied to our financing leases for purposes of determining our lease liabilities. The weighted average discount rate applied to our financing leases is 4.50% and the weighted average remaining lease term is 12.8 months.

The following table shows the components of financing lease cost:

For the Three Months Ended March 31,
Financing Lease Cost20212020
Amortization of right-of-use assets$10,992 $18,376 
Interest on lease liabilities1,936 872 
Total financing lease cost$12,928 $19,248 

9

PROFIRE ENERGY, INC. AND SUBSIDIARIES
Notes to the Condensed Consolidated Financial Statements
For the three months ended March 31, 2021 and 2020
The following table reconciles future minimum lease payments to the discounted finance lease liability:

Years ending December 31,Amount
2021 - remaining$29,019 
202212,803 
2023
2024
2025
Thereafter
Total future minimum lease payments$41,822 
Less: Amount representing interest1,061 
Present value of future payments$40,761 
Current portion$36,408 
Long-term portion$4,353 

Because our office space leases are substantially all considered to be short-term, we have elected not to recognize them on our balance sheet under the short-term recognition exemption. During the three months ended March 31, 2021 and March 31, 2020, we recognized $16,262 and $19,472, respectively, in short-term lease costs associated with office space leases.

NOTE 7 – STOCKHOLDERS' EQUITY

As of March 31, 2021 and December 31, 2020, the Company held 3,412,378 shares of its common stock in treasury at a total cost of $5,353,019, respectively.

As of March 31, 2021, the Company had 222,472 restricted stock units, 182,278 performance based restricted stock units, and 934,700 stock options outstanding with $428,931 in remaining compensation expense to be recognized over the next 2.0 years.

2020 EIP and LTIP

Due to economic uncertainties including those caused by the COVID-19 pandemic, the Board of Directors of the Company, with the support of the Company's executives, elected not to adopt an executive incentive plan ("2020 EIP") or long-term incentive plan ("2020 LTIP") for 2020. The Board and executives believed this was an appropriate short-term measure that helped align the Company's cost structure with the extraordinary conditions affecting the industry in which we operate.

2021 RSUs

On February 18, 2021, the Board of Directors, upon the recommendation of the Compensation Committee of the Board (the "Compensation Committee"), approved a restricted stock award of 18,852 shares of common stock to each of Cameron M. Tidball and Ryan W. Oviatt. Messrs. Tidball and Oviatt entered into Restricted Stock Award Agreements, the forms of which were approved pursuant to the Company's 2014 Equity Incentive Plan. These restricted stock awards, which vested immediately, were settled by the issuance of a total of 27,334 shares of common stock, net of tax withholding and resulted in $45,999 of compensation expense.

2020 RSUs

On June 17, 2020, pursuant to the annual renewal of director compensation, the Board approved a grant of 270,966 RSUs to the independent directors of the Board. Half of the RSUs vested immediately on the date of grant and the remaining 50% of the RSUs will vest on the first anniversary of the grant date or at the Company's next annual meeting of stockholders, whichever is earlier. The awards will result in total compensation expense of $252,000 to be recognized over the vesting period.

10

PROFIRE ENERGY, INC. AND SUBSIDIARIES
Notes to the Condensed Consolidated Financial Statements
For the three months ended March 31, 2021 and 2020
Mr. Arlen B. Crouch resigned from his position as a member of the Board, effective August 3, 2020. Mr. Crouch’s resignation did not result from any disagreements with management or the Board. On the effective date of Mr. Crouch's resignation, all of his unvested RSUs were forfeited. The related compensation expense associated with Mr. Crouch's unvested RSUs will be recaptured. On July 30, 2020, the Board appointed Colleen Larkin Bell to serve as a director to fill the vacancy resulting from Mr. Crouch’s resignation, effective August 3, 2020. Ms. Bell was also appointed as Chair of the Nominating Committee and as a member of the Audit and Compensation Committees. As part of her compensation for her service as a director and committee member, on August 21, 2020, the board approved a grant of 92,934 RSUs. Half of the RSUs vested immediately on the date of the grant and the remaining 50% of the RSUs will vest on the first anniversary of the grant date. The awards will result in total compensation expense of $72,953 to be recognized over the vesting period.

2020 Stock Options

On March 17, 2020, (the "March Grant Date"), the Board approved a grant of options to purchase 115,200 shares of the Company's common stock at a strike price of $0.81 to various employees (the "March 2020 Options"). The March 2020 Options terminate four years from the March Grant Date and became exercisable as to one-third of the shares of common stock covered thereby on each anniversary of the March Grant Date for the next three years following the March Grant Date. The March 2020 Options resulted in a total compensation expense of $40,280.

On July 2, 2020 (the "July Grant Date"), upon the recommendation of the Compensation Committee, the Board approved the grant of a non-qualified stock option to purchase 100,000 shares of the Company’s common stock to each of Mr. Oviatt and Mr. Tidball under the Company’s 2014 Equity Incentive Plan and pursuant to the standard form of Notice of Stock Option Grant and Stock Option Agreement under the plan (the “July 2020 Options”). The exercise price of the July 2020 Options is equal to the closing bid price of the Company's common stock on July 2, 2020 or $0.8439 per share. The July 2020 Options vest equally over a period of three years from the July Grant Date. Vesting occurs on the anniversary date of the July Grant Date, with one-third of the total shares vesting on each of the first three anniversaries of the July Grant Date. Vesting is contingent upon the executive’s continued employment with the Company on each applicable vesting date. The July 2020 Options expire on July 2, 2024. The July 2020 Options will result in a total compensation expense of $79,431 to be recognized over the vesting period.

On August 21, 2020 (the "August Grant Date"), the Board approved a grant of options to purchase 630,000 shares of the Company's common stock at a strike price of $0.785 to various employees (the "August 2020 Options"). The August 2020 Options terminate four years from the August Grant Date and become exercisable as to one-third of the shares of common stock covered thereby on each anniversary of the August Grant Date for the next three years following the August Grant Date. The August 2020 Options will result in a total compensation expense of $233,111 to be recognized over the vesting period.

NOTE 8 – REVENUE

Performance Obligations
Our performance obligations include providing product and servicing our product. We recognize product revenue performance obligations in most cases when the product is delivered to the customer. Occasionally, if we are shipping the product on a customer’s account, we recognize revenue when the product has been shipped. At that point in time, the control of the product is transferred to the customer. When we perform service work, we apply the practical expedient that allows us to recognize service revenue when we have the right to invoice the customer for the work completed. We do not engage in transactions acting as an agent. The time needed to complete our performance obligations varies based on the size of the project; however, we typically satisfy our performance obligations within a few months of entering into the applicable sales contract or service contract.

Our customers have the right to return certain unused and unopened products within 90 days for a restocking fee. We provide a warranty on some of our products ranging from 90 days to 2 years, depending on the product. See note 5 for the amount accrued for expected returns and warranty claims as of March 31, 2021.

Contract Balances
We have elected to use the practical expedient in ASC 340-40-25-4 (regarding recognition of the incremental costs of obtaining a contract) for costs related to contracts that are estimated to be completed within one year. All of our current sales contracts and service contracts are expected to be completed within one year, and as a result, we have not recognized a contract asset account. If we had chosen not to use this practical expedient, we would not expect a material difference in the
11

PROFIRE ENERGY, INC. AND SUBSIDIARIES
Notes to the Condensed Consolidated Financial Statements
For the three months ended March 31, 2021 and 2020
contract balances. We also did not have any material contract liabilities because we typically do not receive payments in advance of recognizing revenue.

Disaggregation of Revenue
All revenue recognized in the income statement is considered to be revenue from contracts with customers. The table below shows revenue by category:

For the Three Months Ended March 31,
20212020
Electronics$1,851,799 $2,657,087 
Manufactured236,810 400,858 
Re-Sell2,568,926 3,803,013 
Service434,814 586,184 
Total Revenue$5,092,349 $7,447,142 

NOTE 9 – BASIC AND DILUTED EARNINGS PER SHARE

The following table is a reconciliation of the numerator and denominators used in the earnings per share calculation:

For the Three Months Ended March 31,
20212020
Income (loss) (Numerator)Weighted Average Shares (Denominator)Per-Share
Amount
Income (Numerator)Weighted Average Shares (Denominator)Per-Share
Amount
Basic EPS
Net income (loss) available to common stockholders$(601,500)47,990,101 $(0.01)$(365,264)47,492,441 $(0.01)
Effect of Dilutive Securities
Stock options & RSUs
Diluted EPS
Net income (loss) available to common stockholders + assumed conversions$(601,500)47,990,101 $(0.01)$(365,264)47,492,441 $(0.01)

Stock options and RSUs to purchase 1,339,450 shares of common stock at a weighted average price of $1.15 per share were outstanding during the three months ended March 31, 2021, but were not included in the computation of diluted EPS because the impact of these shares would be antidilutive. These RSUs, which expire between April 2021 and August 2024, were still outstanding at March 31, 2021.

Stock options and RSUs to purchase 784,769 shares of common stock at a weighted average price of $1.28 per share were outstanding during the three months ended March 31, 2020, but were not included in the computation of diluted EPS because the impact of these shares would be antidilutive. These options, which expired between May 2020 and March 2024, were still outstanding at March 31, 2020.



12

PROFIRE ENERGY, INC. AND SUBSIDIARIES
Notes to the Condensed Consolidated Financial Statements
For the three months ended March 31, 2021 and 2020
NOTE 10 – SEGMENT INFORMATION

The Company operates in the United States and Canada. Segment information for these geographic areas is as follows:

For the Three Months Ended March 31,
Sales20212020
Canada$828,445 $1,023,722 
United States4,263,904 6,423,420 
Total Consolidated$5,092,349 $7,447,142 
For the Three Months Ended March 31,
Profit (Loss)20212020
Canada$(320,762)$(322,069)
United States(280,738)(43,195)
Total Consolidated$(601,500)$(365,264)
As of
Long-Lived AssetsMarch 31, 2021December 31, 2020
Canada$6,053,391 $6,049,790 
United States5,912,042 6,022,115 
Total Consolidated$11,965,433 $12,071,905 
 
NOTE 11 – SUBSEQUENT EVENTS

On April 30, 2021 the Company entered into amendments to employment agreements with each of Mr. Brenton W. Hatch, the Company's Executive Chairman; Mr. Ryan W. Oviatt, the Company's Co-CEO, CFO, and Co-President; Mr. Cameron M. Tidball, the Company's Co-CEO and Co-President; Mr. Jay G. Fugal, the Company's VP of Operations; and Mr. Patrick D. Fisher the Company's VP of Product Development. The amendments to the employment agreements and the Company's financial obligation related thereto are described in Item 5 of Part II on Page 18 of this report.
13


Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations

This discussion summarizes the significant factors affecting our consolidated operating results, financial condition, liquidity, and capital resources during the three-month periods ended March 31, 2021 and 2020. This Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the financial statements and notes to the financial statements contained in this quarterly report on Form 10-Q and our annual report on Form 10-K for the year ended December 31, 2020.

Forward-Looking Statements

This quarterly report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), that are based on management's beliefs and assumptions and on information currently available to management.  For this purpose, any statement contained in this report that is not a statement of historical fact may be deemed to be forward-looking, including, but not limited to, statements relating to our future actions, intentions, plans, strategies, objectives, results of operations, cash flows and the adequacy of or need to seek additional capital resources and liquidity. Words such as "may," "should," "expect," "project," "plan," "anticipate," "believe," "estimate," "intend," "budget," "forecast," "predict," "potential," "continue," "should," "could," "will," or comparable terminology or the negative of such terms are intended to identify forward-looking statements; however, the absence of these words does not necessarily mean that a statement is not forward-looking.  Forward-looking statements by their nature involve known and unknown risks and uncertainties and other factors that may cause actual results and outcomes to differ materially depending on a variety of factors, many of which are not within our control.  Such factors include, but are not limited to, economic conditions generally and in the oil and gas industry in which we and our customers participate; competition within our industry; legislative requirements or changes which could render our products or services less competitive or obsolete; our failure to successfully develop new products and/or services or to anticipate current or prospective customers' needs; price increases; limits to employee capabilities;  delays, reductions, or cancellations of contracts we have previously entered into; sufficiency of working capital, capital resources and liquidity and other factors detailed herein and in our other filings with the United States Securities and Exchange Commission (the "SEC" or "Commission"). Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. The foregoing factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this report. For a more detailed discussion of the principal factors that could cause actual results to be materially different, you should read our risk factors in Item 1A. Risk Factors, included elsewhere in this report.

Forward-looking statements are based on current industry, financial and economic information which we have assessed but which by its nature is dynamic and subject to rapid and possibly abrupt changes. Due to risks and uncertainties associated with our business, our actual results could differ materially from those stated or implied by such forward-looking statements. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of these forward-looking statements and we hereby qualify all of our forward-looking statements by these cautionary statements.

Forward-looking statements in this report are based only on information currently available to us and speak only as of the date on which they are made. We undertake no obligation to amend this report or revise publicly these forward-looking statements (other than as required by law) to reflect subsequent events or circumstances, whether as the result of new information, future events or otherwise.

The following discussion should be read in conjunction with our financial statements and the related notes contained elsewhere in this report and in our other filings with the Commission.

Overview

We are a technology company providing solutions that enhance the efficiency, safety, and reliability of industrial combustion appliances while mitigating potential environmental impacts related to the operation of these devices. Our legacy business is primarily focused in the upstream, midstream, and downstream transmission segments of the oil and gas industry; however, we have commenced identifying applications in other industries where we believe our solutions will be applicable as we expand our addressable market over time. We specialize in the engineering and design of burner and combustion management systems and solutions used on a variety of natural and forced draft applications. We sell our products and services primarily throughout North America. Our experienced team of sales and service professionals are strategically positioned across the United States and Canada providing support and service for our products.

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Principal Products and Services

Across the energy industry, there are numerous demands for heat generation and control. Applications such as combustors, enclosed flares, gas production units, treaters, glycol and amine reboilers, indirect line-heaters, heated tanks, and process heaters require heat as part of their production and or processing functions. This heat is generated through the process of combustion, which must be controlled, managed, and supervised. Combustion and the resulting generation of heat are integral to the process of separating, treating, storing, incinerating, and transporting oil and gas. Factors such as specific gravity, the presence of hydrates, temperature and hydrogen sulfide content contribute to the need for heat generation in oil and gas production and processing applications. Our burner-management systems ignite, monitor, and manage pilot and burner systems that are utilized in this process. Our technology affords remote operation, reducing the need for employee interaction with the appliance's burner for purposes such as re-ignition or temperature monitoring. In addition, our burner-management systems can help reduce emissions by efficiently reigniting a failed flame, thereby improving efficiencies and up-time. Our extensive service and combustion experience provide customers with solutions that are consistent with industry trends and regulatory requirements to mitigate environmental impacts and reduce emissions through increased efficiency.

Oil and gas companies, including upstream, midstream, downstream, pipeline, and gathering operators, utilize burner-management systems to achieve increased safety, greater operational efficiencies, and improved compliance with industry regulations. Without a burner-management system, a field employee must discover and reignite an extinguished burner flame, then restart the application manually. Therefore, without a proper burner-management system, all application monitoring must be accomplished in-person, directly on-site. This requirement for on-site monitoring, in an environment with limited field personnel, can result in the potential interruption of production for long periods of time and increased risks associated with reigniting a flame, which can lead to site hazards, including explosions and the possibility of venting gas into the atmosphere. In addition, without a burner -management system, burners often operate for longer durations, frequently with lower efficiency, resulting in increased equipment fatigue and greater expense related to fuel consumption. We continue to assess regulatory requirements on behalf of our customers. We believe that burner-management systems and services offer solutions for customers to meet compliance standards where applicable. In addition to product sales, we dispatch specialized service technicians to provide maintenance and installation support throughout the United States and Canada.

We initially developed our first burner-management controller in 2005. Since that time, our systems have become widely adopted throughout the United States and Western Canada. Profire burner-management systems have been designed to comply with widely accepted safety and industrial codes and standards in North America, including those proscribed and certified by the Canadian Standards Association (CSA), Underwriters Laboratories (UL), and Safety Integrity Level (SIL) standards.

Our systems and solutions have been widely adopted by exploration and production companies (E&P), midstream operators, pipeline operators, as well as downstream transmission and utility providers. Our customers include, EQT, Antero, Chevron, Concho Resources, Devon Energy, XTO, CNRL, Cenovus, Hess, Pioneer Natural Resources, Williams, Dominion, ATCO, and others. Our systems have also been sold and installed in other parts of the world including many countries in South America, Europe, Africa, the Middle East, and Asia. Though firmly established and primarily focused on North American oil and gas markets, we continue to invest in expansion efforts in international markets and the broader combustion industries.

Environmental, Social and Governance Focus

As guiding principles and core to our strategy, our products and solutions are developed with a focus on safety, environmental impacts, reliability and efficiency. Protecting human life, protecting the environment, and protecting our customers’ investments are key guiding principles. Our products play a key role in supporting our customers’ existing and future initiatives regarding improving workplace safety and environmental impacts.

Our burner-management technology is designed to monitor, operate, and manage a wide array of complex industrial heat-applications. Providing our customers with safety-approved and certified technology, purposefully designed and built to meet regulatory requirements and process needs, is a critical component of our customers’ safety protocols and initiatives.

Proper burner and combustion management control, coupled with peripheral solutions, increase site and location safety while reducing emissions. Profire technology and solutions are integrated into a variety of applications to significantly reduce the release of methane and volatile organic compounds into the environment.

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Profire burner-management controls and complementary solutions provide users with the ability to monitor field equipment remotely. This reduces truck rolls and the need for field personnel to travel to and manually inspect burner malfunctions in remote sites and locations. Our automated solutions help our customers improve safety, reduce emissions, and decrease operating costs.

Operator safety is at the heart of burner-management solution technology. The use of these systems helps our customers increase the likelihood that their employees return home safe each day. Adding greater physical distance between humans and the combustion process, as well as ensuring gas supplies are properly shutoff when no flame is present, are two of the critical elements of how our burner-management solutions help protect human life.

Results of Operations

Comparison quarter over quarter

The table below presents certain financial data comparing the most recent quarter to prior quarters:
For the three months ended
March 31, 2021December 31, 2020September 30, 2020June 30, 2020March 31, 2020
Total Revenues$5,092,349 $5,651,883 $4,000,106 $4,359,479 $7,447,142 
Gross Profit Percentage42.7 %48.7 %38.0 %47.9 %42.5 %
Operating Expenses$2,978,912 $2,762,437 $2,849,921 $3,164,318 $3,829,736 
Net Income (Loss)$(601,500)$55,918 $(1,057,748)$(808,504)$(365,264)
Operating Cash Flow$1,820,665 $141,723 $(724,342)$575,941 $271,078 

Revenues for the quarter ended March 31, 2021 decreased by 32% or $2,354,793 compared to the quarter ended March 31, 2020, which was mostly driven by macro industry changes and the ongoing effects of the COVID-19 pandemic over the past year. The average oil price during the three months ended March 31, 2021 was $58.09 per barrel compared to $45.34 per barrel for the same period of last year, representing an increase of 28.1%. However, the first quarter of 2021 weekly average rig count for North America was 522 compared to 958 in the same period of last year, which represents a decrease of 46%. Although oil prices have recovered somewhat from the historic fall in 2020 which was caused by a flood of supply from Russia and Saudi Arabia and a dramatic drop in global demand due to the COVID-19 pandemic, the operating environment in the first quarter of 2021 continued to be characterized by uncertainty surrounding economic recovery from the COVID-19 pandemic and geopolitical factors. This uncertainty continued to create strain in oil supply and demand dynamics. As a result of these extraordinary macro pressures and uncertainties, exploration and production companies have remained cautious and are not currently investing in new production like they were prior to the pandemic. Until our customers return to more normal capital expenditure levels, our business is likely to continue to be adversely affected.

Our gross profit margin for the first quarter of 2021 was up slightly from the same quarter of last year but was below our normally expected range. The gross margin percentage normally fluctuates each quarter due to changes in product mix and product related reserves, which contributed to the change in gross profit margin for the first quarter of 2021. In addition, the significant decrease in revenue for the first quarter of 2021 compared to the same quarter last year also caused the fixed cost portion of cost of goods and services to push the product margin lower than historic levels. Although we took actions during 2020 to reduce costs and adjust the cost structure of the Company to reduce the fixed cost burden on gross margin, our fixed costs will continue to impact our gross profit margin until revenues recover.

Operating expenses decreased $850,824 from the same quarter of last year, which reflected a focus on cost control measures as we navigate the uncertainty caused by the COVID-19 pandemic and the resulting oil market supply and demand imbalance. We expect that our operating expenses, particularly labor and travel costs, will increase to levels more consistent with pre-pandemic amounts in 2021 as economies recover from the pandemic and demand for oil and gas increases.

Due to the significantly lower revenues discussed above, we reported a net loss of $601,500 for the quarter ended March 31, 2021 compared to net loss of $365,264 for the same quarter in 2020.

Operating cash flows increased significantly during the first quarter of 2021 compared to the first quarter of 2020, due primarily to a focus on customer collection efforts and the sale of the remaining bays from our old office building in Canada, which took place during the period.
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The global COVID-19 pandemic continued to impact our business during the first quarter of 2021 and will likely continue to impact our business in future quarters. However, we remain optimistic that our results of operations will improve as vaccine distribution increases, which we anticipate will result in improved economic conditions and improved demand for oil and gas.

Liquidity and Capital Resources

Working capital at March 31, 2021 was $22,677,200, compared to $23,420,475 at December 31, 2020.

Our liquidity position is impacted by operating, investing and financing activities. During the three months ended March 31, 2021, we generated $1,820,665 of positive cash flow from operating activities, primarily due to cash received from customer sales and from the sale of remaining bays from our old office building in Canada, partially offset by the impact of changes in income tax, accounts payable and accrued liabilities accounts. Operating activity trends consist of cash inflows and outflows related to changes in operating assets and liabilities. During the three months ended March 31, 2021, we used $468,871 of cash in investing activities, primarily due to new investment purchases. Investing activity trends consist of changes in the mix of our investment portfolio, purchases or sales of fixed assets, and acquisition activities. During the three months ended March 31, 2021, we used $37,856 of cash in financing activities, primarily related to equity awards issued to management. Financing activity trends consist of transactions related to equity awards and purchases or sales of treasury stock. We did not purchase any treasury stock during the first quarter of 2021. The extent to which the global COVID-19 pandemic will continue to affect our liquidity position will depend on future developments, which are highly uncertain and cannot be predicted with confidence. As of March 31, 2021, we held $19,358,668 of cash and investments that form our core excess liquidity which could be utilized, if required, due to the issues described above. See also Item 1A.  Risk Factors for further discussion on the impact of COVID-19 on our business.

Off-Balance Sheet Arrangements

We have not engaged in any off-balance sheet arrangements, nor do we plan to engage in any in the foreseeable future.

Item 3.  Quantitative and Qualitative Disclosure about Market Risk

This section is not required.

Item 4.  Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of the Principal Executive Officer and Principal Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15(b) under the Exchange Act, as of the end of the period covered by this quarterly report on Form 10-Q. Our disclosure controls and procedures are designed to ensure that the information required to be disclosed by us in reports that we file under the Exchange Act is accumulated and communicated to our management, including our Principal Executive Officer and Principal Financial Officer, as appropriate, to allow timely decisions regarding required disclosure and is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. Based on the evaluation performed, our management, including the Principal Executive Officer and Principal Financial Officer, concluded that the disclosure controls and procedures were effective as of March 31, 2021.

Changes in Internal Control over Financial Reporting

Our management, with the participation of our Principal Executive Officer and Principal Financial Officer, evaluated the changes in our internal control over financial reporting that occurred during the quarterly period covered by this quarterly report on Form 10-Q. Based on that evaluation, management concluded that no change in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) occurred during the quarter ended March 31, 2021 that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II - OTHER INFORMATION

Item 1. Legal Proceedings

To the best of our knowledge, there are no legal proceedings pending or threatened against us that may have a material impact on us and there are no actions pending or threatened against any of our directors or officers that are adverse to us.

Item 1A.  Risk Factors

In addition to the other information set forth in this quarterly report on Form 10-Q, you should carefully consider the risks discussed in our annual report on Form 10-K for the year ended December 31, 2020, which risks could materially affect our business, financial condition or future results. These risks are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also have a material, adverse effect on our business, financial condition or future results.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

This item is not applicable

Item 3. Defaults Upon Senior Securities

This item is not applicable.

Item 4. Mine Safety Disclosures

This item is not applicable.

Item 5. Other Information

On April 30, 2021, the Board authorized amendments to the Company's employment agreements with Mr. Brenton W. Hatch, the Company's Executive Chairman, Mr. Ryan W. Oviatt the Company's Co-Chief Executive Officer, Co-President, and Chief Financial Officer of the Company, Mr. Cameron M. Tidball, the Company's Co-Chief Executive Officer and Co-President of the Company, Mr. Jay G. Fugal, the Company's VP of Operations and Mr. Patrick D. Fisher, the Company's VP of Product Development. Each of the amendments was recommended by the Compensation Committee. The amendments to the employment agreements are further described below.

The Company and Mr. Hatch entered into a First Amendment to Second Amended and Restated Employment Agreement (“Hatch Agreement Amendment”) as approved by the Company’s Board of Directors (the “Board”) and recommended by its Compensation Committee (the “Committee”). Pursuant to the Hatch Agreement, Mr. Hatch will be paid an annual rate of base salary in periodic installments consistent with the Company’s payroll practices as in effect from time to time. For the period from July 2, 2020 through December 31, 2020 Mr. Hatch was paid a salary based on an annualized base salary of $350,000; however, in connection with the Company’s response to the COVID-19 pandemic, with Mr. Hatch’s consent, from September 1, 2020 until December 31, 2020, Mr. Hatch was paid a salary based on a reduced annualized base salary of $322,000 US. For the period from January 1, 2021 through June 30, 2021, Mr. Hatch will be paid a salary based on an annualized base salary of $400,000. For the period from July 1, 2021 through June 30, 2022, Mr. Hatch will be paid a salary based on an annualized base salary of $400,000, which shall be apportioned as $150,000 for serving as Executive Chairman and $250,000 for advisory services.

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The Company and Mr. Oviatt entered into a First Amendment to Second Amended and Restated Employment Agreement (the “Oviatt Agreement Amendment”). Pursuant to the Oviatt Agreement Amendment, Mr. Oviatt will be paid an annual rate of base salary in periodic installments consistent with the Company’s payroll practices as in effect from time to time. For the period from July 2, 2020 to August 31, 2020, Mr. Oviatt was paid a salary based on an annualized base salary of $275,000 US. In connection with the Company’s response to the COVID-19 pandemic, and with Mr. Oviatt’s consent, effective September 1, 2020, Mr. Oviatt was paid a salary based on a reduced annualized base salary of $253,000 US and his base salary shall remain at such amount until July 1, 2021, at which time Mr. Oviatt’s base salary shall increase to $300,000 US, provided the Compensation Committee may cause such increase to occur sooner in its discretion. Generally, Mr. Oviatt’s base salary shall be reviewed at least annually by the Compensation Committee. The Compensation Committee may, but shall not be required to, increase Mr. Oviatt’s base salary at any time during the employment term. Mr. Oviatt’s base salary shall be adjusted to $330,000 US on January 1, 2022. Additionally, in connection with the Company's response to the COVID-19 Pandemic, and with Mr. Oviatt’s consent, the Compensation Committee did not implement any annual incentive plan or similar bonus program or any long-term incentive plan for the Company's 2020 fiscal year and no bonus was awarded to Mr. Oviatt for the 2020 fiscal year.

The Company and Mr. Tidball entered into a First Amendment to Amended and Restated Employment Agreement ("Tidball Agreement Amendment"). Pursuant to the Tidball Agreement Amendment, Mr. Tidball will be paid an annual rate of base salary in periodic installments consistent with the Company’s payroll practices as in effect from time to time. For the period from July 2, 2020 to August 31, 2020, Mr. Tidball was paid a salary based on an annualized base salary of $275,000 US. In connection with the Company’s response to the COVID-19 pandemic, and with Mr. Tidball’s consent, effective September 1, 2020, Mr. Tidball was paid a salary based on a reduced annualized base salary of $253,000 US and his base salary shall remain at such amount until July 1, 2021, at which time Mr. Tidball’s base salary shall increase to $300,000 US, provided the Compensation Committee may cause such increase to occur sooner in its discretion. Generally, Mr. Tidball’s base salary shall be reviewed at least annually by the Compensation Committee. The Compensation Committee may, but shall not be required to, increase Mr. Tidball’s base salary at any time during the employment term. Mr. Tidball’s base salary shall be adjusted to $330,000 US on January 1, 2022. Additionally, in connection with the Company's response to the COVID-19 Pandemic, and with Mr. Tidball’s consent, the Compensation Committee did not implement any annual incentive plan or similar bonus program or any long-term incentive plan for the Company's 2020 fiscal year and no bonus was awarded to Mr. Tidball for the 2020 fiscal year.

The Company and Mr. Fugal entered into a First Amendment to Employment Agreement (“Fugal Agreement Amendment”). Pursuant to the Fugal Agreement Amendment, Mr. Fugal will be paid an annual rate of base salary in periodic installments consistent with the Company’s payroll practices as in effect from time to time. In connection with the Company's response to the COVID-19 pandemic, and with Mr. Fugal’s consent, effective September 1, 2020 Mr. Fugal was paid a salary based on a reduced annualized base salary of $151,616 US and his base salary shall remain at such amount until July 1, 2021 at which time Mr. Fugal’s base salary shall increase to $164,800 US, provided the Compensation Committee may cause such increase to occur sooner in its discretion. Generally, the Compensation Committee shall review Mr. Fugal’s base salary annually and may, but shall not be required to, increase Mr. Fugal’s base salary at any time during the employment term. Additionally, in connection with the Company's response to the COVID-19 Pandemic, and with Mr. Fugal’s consent, the Compensation Committee did not implement any annual incentive plan or similar bonus program or any long-term incentive plan for the Company's 2020 fiscal year and no bonus was awarded to Mr. Fugal for the 2020 fiscal year.

The Company and Mr. Fisher entered into a First Amendment to Employment Agreement (“Fisher Agreement Amendment”). Pursuant to the Fisher Agreement Amendment, Mr. Fisher will be paid an annual rate of base salary in periodic installments consistent with the Company’s payroll practices as in effect from time to time. In connection with the Company's response to the COVID-19 pandemic, and with Mr. Fisher’s consent, effective September 1, 2020 Mr. Fisher was paid a salary based on a reduced annualized base salary of $142,600 CAD and his base salary shall remain at such amount until July 1, 2021 at which time Mr. Fisher’s base salary shall increase to $155,000 CAD, provided the Compensation Committee may cause such increase to occur sooner in its discretion. Generally, the Compensation Committee shall review Mr. Fisher’s base salary annually and may, but shall not be required to, increase Mr. Fisher’s base salary at any time during the employment term. Additionally, in connection with the Company's response to the COVID-19 Pandemic, and with Mr. Fisher’s consent, the Compensation Committee did not implement any annual incentive plan or similar bonus program or any long-term incentive plan for the Company's 2020 fiscal year and no bonus was awarded to Mr. Fisher for the 2020 fiscal year.
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Item 6.  Exhibits

Exhibits.  The following exhibits are included as part of this report:

Restricted Stock Award Agreement between Profire Energy and Ryan Oviatt dated February 18, 2021
Restricted Stock Award Agreement between Profire Energy and Cameron Tidball dated February 18, 2021
First Amendment to Second Amended and Restated Employment Agreement between Profire Energy and Brenton W. Hatch dated April 30, 2021
First Amendment to Second Amended and Restated Employment Agreement between Profire Energy and Ryan Oviatt dated April 30, 2021
First Amendment to Amended and Restated Employment Agreement between Profire Energy and Cameron Tidball dated April 30, 2021
First Amendment to Employment Agreement between Profire Energy and Jay G. Fugal dated April 30, 2021
First Amendment to Employment Agreement between Profire Energy and Patrick D. Fisher dated April 30, 2021
Certification of Co-Principal Executive Officer Pursuant to Rule 13a-14(a) Ryan W. Oviatt
Certification of Co-Principal Executive Officer Pursuant to Rule 13a-14(a) Cameron M. Tidball
Certification of Principal Financial Officer Pursuant to Rule 13a-14(a)
Certification of Principal Executive Officers pursuant to 18 U.S.C. Section 1350
Certification of Ryan W. Oviatt, Principal Financial Officer pursuant to 18 U.S.C. Section 1350
Exhibit 101.INS*XBRL Instance Document
Exhibit 101.SCH*XBRL Taxonomy Extension Schema Document
Exhibit 101.CAL*XBRL Taxonomy Extension Calculation Linkbase Document
Exhibit 101.DEF*XBRL Taxonomy Definition Linkbase Document
Exhibit 101.LAB*XBRL Taxonomy Extension Label Linkbase Document
Exhibit 101.PRE*XBRL Taxonomy Extension Presentation Linkbase Document

*    Filed herewith
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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

PROFIRE ENERGY, INC.
Date:May 5, 2021By:/s/ Ryan W. Oviatt
Ryan W. Oviatt
Co-Chief Executive Officer and Chief Financial Officer

Date:May 5, 2021By:/s/ Cameron M. Tidball
Cameron M. Tidball
Co-Chief Executive Officer

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