Document

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
	Three Months Ended	June 30, 2019
☐	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)


Nevada			20-0019425
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
321 South 1250 West, Suite 1
Lindon, Utah			84042
(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 class

Trading Symbol(s)

Name of each exchange on which registered

Common, $0.001 Par Value

PFIE

NASDAQ

As of August 5, 2019, the registrant had 50,758,945 shares of common stock issued and 48,208,158 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	4

	Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited)	5

	Condensed Consolidated Statements of Cash Flows (Unaudited)	6

	Condensed Consolidated Statements of Shareholders' Equity (Unaudited)	7

	Notes to Condensed Consolidated Financial Statements (Unaudited)	9

Item 2. Management's Discussion and Analysis of Financial Condition And Results of Operations			15

Item 3. Quantitative and Qualitative Disclosure about Market Risk			19

Item 4. Controls and Procedures			19

PART II — OTHER INFORMATION

Item 1. Legal Proceedings			20

Item 1A. Risk Factors			20

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			20

Item 3. Defaults Upon Senior Securities			20

Item 4. Mine Safety Disclosures			20

Item 5. Other Information			20

Item 6. Exhibits			21

Signatures			22

PART I. FINANCIAL INFORMATION

Item 1 Financial Information


PROFIRE ENERGY, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
	As of
	June 30, 2019		December 31, 2018
	(Unaudited)
CURRENT ASSETS
Cash and cash equivalents	$	11,487,778	$	10,101,932
Short-term investments	726,782		961,256
Short-term investments - other	2,400,000		3,596,484
Accounts receivable, net	6,395,332		6,885,296
Inventories, net	9,071,479		9,659,571
Prepaid expenses & other current assets	512,292		473,726
Income tax receivable	473,093		173,124
Total Current Assets	31,066,756		31,851,389
LONG-TERM ASSETS
Net deferred tax asset	—		85,092
Long-term investments	8,433,185		7,978,380

Financing right-of-use asset	149,484		—
Property and equipment, net	9,108,234		8,020,462
Goodwill	997,701		997,701
Intangible assets, net	1,699,312		429,956
Total Long-Term Assets	20,387,916		17,511,591
TOTAL ASSETS	$	51,454,672	$	49,362,980

CURRENT LIABILITIES
Accounts payable	$	1,415,824	$	1,177,985
Accrued vacation	373,995		311,435
Accrued liabilities	1,679,279		1,445,510
Current financing lease liability	76,559		—
Income taxes payable	199,792		1,172,191
Total Current Liabilities	3,745,449		4,107,121
LONG-TERM LIABILITIES
Net deferred income tax liability	120,222		—
Long-term financing lease liability	76,382		—
TOTAL LIABILITIES	3,942,053		4,107,121

STOCKHOLDERS' EQUITY
Preferred shares: $0.001 par value, 10,000,000 shares authorized: no shares issued or outstanding	—		—
Common shares: $0.001 par value, 100,000,000 shares authorized: 50,016,979 issued and 47,466,192 outstanding at June 30, 2019, and 49,707,805 issued and 47,932,305 outstanding at December 31, 2018	50,017		49,708
Treasury stock, at cost	(3,943,063)		(2,609,485)
Additional paid-in capital	28,593,552		28,027,742
Accumulated other comprehensive loss	(2,525,586)		(2,895,683)
Retained earnings	25,337,699		22,683,577
TOTAL STOCKHOLDERS' EQUITY	47,512,619		45,255,859
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	51,454,672	$	49,362,980

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


PROFIRE ENERGY, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations and Comprehensive Income
(Unaudited)
	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2019		2018		2019		2018
REVENUES
Sales of goods, net	$	9,559,255	$	10,724,409	$	19,757,890	$	22,179,024
Sales of services, net	564,776		615,352		1,199,199		1,330,454
Total Revenues	10,124,031		11,339,761		20,957,089		23,509,478

COST OF SALES
Cost of goods sold-product	4,568,666		4,959,539		9,139,654		10,517,249
Cost of goods sold-services	368,327		471,555		865,525		953,422
Total Cost of Goods Sold	4,936,993		5,431,094		10,005,179		11,470,671

GROSS PROFIT	5,187,038		5,908,667		10,951,910		12,038,807

OPERATING EXPENSES
General and administrative expenses	3,566,698		3,364,826		6,728,228		6,706,726
Research and development	512,871		317,002		861,929		720,221
Depreciation and amortization expense	110,910		129,070		227,133		257,787
Total Operating Expenses	4,190,479		3,810,898		7,817,290		7,684,734

INCOME FROM OPERATIONS	996,559		2,097,769		3,134,620		4,354,073

OTHER INCOME (EXPENSE)
Gain on sale of fixed assets	21,410		21,254		38,340		86,085
Other expense	(413)		(4,164)		(964)		(5,956)
Interest income	85,887		174,771		177,590		225,479
Total Other Income	106,884		191,861		214,966		305,608

INCOME BEFORE INCOME TAXES	1,103,443		2,289,630		3,349,586		4,659,681

INCOME TAX EXPENSE	117,939		575,363		695,464		1,069,183

NET INCOME	$	985,504	$	1,714,267	$	2,654,122	$	3,590,498

OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation gain (loss)	$	102,435	$	(427,307)	$	251,850	$	(394,072)
Unrealized gains (losses) on investments	49,495		9,226		118,247		(24,009)
Total Other Comprehensive Income (Loss)	151,930		(418,081)		370,097		(418,081)

COMPREHENSIVE INCOME	$	1,137,434	$	1,296,186	$	3,024,219	$	3,172,417

BASIC EARNINGS PER SHARE	$	0.02	$	0.04	$	0.06	$	0.07
FULLY DILUTED EARNINGS PER SHARE	$	0.02	$	0.03	$	0.06	$	0.07

BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING	47,348,137		48,266,199		47,392,534		48,467,136
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING	48,124,208		49,095,575		48,192,849		49,237,938

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


PROFIRE ENERGY, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
	For the Six Months Ended June 30,
	2019		2018
OPERATING ACTIVITIES
Net income	$	2,654,122	$	3,590,498
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	483,063		442,959
Gain on sale of fixed assets	(38,340)		(76,703)
Bad debt expense	229,792		141,348
Stock awards issued for services	749,547		861,189
Changes in operating assets and liabilities:
Changes in accounts receivable	605,009		548,419
Changes in income taxes receivable/payable	(1,261,267)		(790,946)
Changes in inventories	1,831,865		(2,074,974)
Changes in prepaid expenses	(35,637)		114,907
Changes in deferred tax asset/liability	205,314		91,890
Changes in accounts payable and accrued liabilities	(115,813)		274,744
Net Cash Provided by Operating Activities	5,307,655		3,123,331

INVESTING ACTIVITIES
Proceeds from sale of equipment	39,810		159,449
Sale of investments	1,109,297		368,379
Purchase of fixed assets	(1,429,735)		(1,184,126)
Payments for asset acquisition	(2,088,814)		—
Net Cash Used in Investing Activities	(2,369,442)		(656,298)

FINANCING ACTIVITIES
Value of equity awards surrendered by employees for tax liability	(184,433)		(736,160)
Cash received in exercise of stock options	—		174,002
Purchase of Treasury stock	(1,333,578)		(4,000,000)
Principal paid towards lease liability	(32,185)		—
Net Cash Used in Financing Activities	(1,550,196)		(4,562,158)

Effect of exchange rate changes on cash	(2,171)		(51,997)

NET INCREASE (DECREASE) IN CASH	1,385,846		(2,147,122)
CASH AT BEGINNING OF PERIOD	10,101,932		11,445,799
CASH AT END OF PERIOD	$	11,487,778	$	9,298,677

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

CASH PAID FOR:
Interest	$	2,832	$	—
Income taxes	$	1,793,281	$	1,691,397
NON-CASH FINANCING AND INVESTING ACTIVITIES:
Acquisition of assets (Preliminary estimate)	$	237,032	$	—

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


PROFIRE ENERGY, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Shareholders' Equity
(Unaudited)
	Common Stock					Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Retained Earnings		Total Stockholders' Equity
	Shares	Amount
Balance, December 31, 2018	47,932,305	$	49,708	$	28,027,742	$	(2,895,683)	$	(2,609,485)	$	22,683,577	$	45,255,859
Stock based compensation				66,714								66,714
Stock issued in exercise of stock options	2,483	2		(2)								—
Stock issued in settlement of RSUs	148,723	149		379,712								379,861
Tax withholdings paid related to stock based compensation				(143,022)								(143,022)
Treasury stock repurchased	(775,287)							(1,333,578)				(1,333,578)
Foreign currency translation						149,415						149,415
Unrealized gains on investments						68,752						68,752
Net income										1,668,618		1,668,618
Balance, March 31, 2019	47,308,224	$	49,859	$	28,331,144	$	(2,677,516)	$	(3,943,063)	$	24,352,195	$	46,112,619
Stock based compensation				303,977								303,977
Stock issued in exercise of stock options	9,174	9		(9)								—
Stock issued in settlement of RSUs	148,794	149		(149)								—
Tax withholdings paid related to stock based compensation				(41,411)								(41,411)
Foreign currency translation						102,435						102,435
Unrealized gains on investments						49,495						49,495
Net income										985,504		985,504
Balance, June 30, 2019	47,466,192	$	50,017	$	28,593,552	$	(2,525,586)	$	(3,943,063)	$	25,337,699	$	47,512,619

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


PROFIRE ENERGY, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Shareholders' Equity (Continued)
(Unaudited)
	Common Stock					Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Retained Earnings		Total Stockholders' Equity
	Shares	Amount
Balance, December 31, 2017	48,606,425	$	53,931	$	27,535,469	$	(2,200,462)	$	(6,890,349)	$	25,548,835	$	44,047,424
Stock based compensation				390,585								390,585
Stock issued in exercise of stock options	81,229	81		(81)								—
Stock issued in settlement of RSUs	118,762	119		258,773								258,892
Tax withholdings related to stock based compensation				(83,600)								(83,600)
Foreign currency translation						(239,129)						(239,129)
Unrealized losses on investments						(33,235)						(33,235)
Net income										1,876,228		1,876,228
Balance, March 31, 2018	48,806,416	$	54,131	$	28,101,146	$	(2,472,826)	$	(6,890,349)	$	27,425,063	$	46,217,165
Stock based compensation				292,450								292,450
Stock issued in exercise of stock options	445,038	445		(445)								—
Stock issued in settlement of RSUs	108,923	109		121,725								121,834
Tax withholdings related to stock based compensation				(686,072)								(686,072)
Treasury stock repurchased	(1,277,954)							(4,000,000)				(4,000,000)
Foreign currency translation						(154,943)						(154,943)
Unrealized losses on investments						9,226						9,226
Net income										1,714,267		1,714,267
Balance, June 30, 2018	48,082,423	$	54,685	$	27,828,804	$	(2,618,543)	$	(10,890,349)	$	29,139,330	$	43,513,927

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

PROFIRE ENERGY, INC. AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2019, and December 31, 2018

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 subsidiary, 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, and cash flows at June 30, 2019 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, 2018 ("Form 10-K"). The results of operations for the three and six month periods ended June 30, 2019 and 2018 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 Profire Energy, Inc. and its subsidiary (the "Company") is presented to assist in understanding the Company's condensed consolidated financial statements. The Company's accounting policies conform to accounting principles generally accepted in the United States of America ("US GAAP").

The Company provides burner- and chemical-management products 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, except as discussed below.

Leases

In February of 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2016-02 - Leases (Topic 842), which significantly amends the way companies are required to account for leases. Under the updated leasing guidance, some leases that did not have to be reported previously are now required to be presented as an asset and liability on the balance sheet. In addition, for certain leases, what was previously classified as an operating expense must now be allocated between amortization expense and interest expense. The Company adopted this update as of January 1, 2019 using the modified retrospective transition method. Prior periods have not been restated. Upon implementation, the Company recognized an initial right-of-use asset of $132,488 and lease liability of $132,488. Due to the simplistic nature of the Company's leases, no change to retained earnings was required. See Note 8 for further details.

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.

Reclassification

Certain balances in previously issued consolidated financial statements have been reclassified to be consistent with the current period presentation. The reclassification had no impact on financial position, net income, or stockholders' equity.

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

PROFIRE ENERGY, INC. AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2019, and December 31, 2018

NOTE 3 – INVENTORY

Inventories consisted of the following at each balance sheet date:


	As of
	June 30, 2019		December 31, 2018
Raw materials	$	41,291	$	76,319
Finished goods	9,883,394		10,474,522
Work in process	—		—
Subtotal	9,924,685		10,550,841
Reserve for obsolescence	(853,206)		(891,270)
Total	$	9,071,479	$	9,659,571

NOTE 4 – STOCKHOLDERS' EQUITY

As of June 30, 2019, and December 31, 2018, the Company held 2,550,787 and 1,775,500 shares of its common stock in treasury at a total cost of $3,943,063 and $2,609,485, respectively.

On April 22, 2019, the Board of Directors (the “Board”) of Profire Energy, Inc. (the “Company”) approved the 2019 Executive Incentive Plan (the “EIP”) for Brenton W. Hatch, the Company’s President and Chief Executive Officer, Ryan W. Oviatt, the Company’s Chief Financial Officer, Cameron M. Tidball the Company’s Chief Business Development Officer, Jay G. Fugal, the Company’s Vice President of Operations, and Patrick D. Fisher, the Company’s Vice President of Product development. The EIP provides for the potential award of bonuses to the participants based on the Company’s financial performance in fiscal 2019. If earned, the bonuses will be payable in cash and stock, and the stock portion of the bonuses is intended to constitute an award under the Company’s 2014 Equity Incentive Plan, as amended (the “Plan”). In addition to the EIP, the Board also approved as a long term incentive plan the grants of a restricted stock unit awards to Messrs. Oviatt, Tidball, Fugal, and Fisher pursuant to the Plan (the “2019 LTIP”).

2019 EIP

Under the terms of the EIP, each participating executive officer has been assigned a target bonus amount for fiscal 2019. The target bonus amount for Mr. Hatch is $412,000, the target bonus amount for Mr. Oviatt is $90,125, the target bonus amount for Mr. Tidball is $84,357, the target bonus for Mr. Fugal is $41,200, and the target bonus for Mr. Fisher is $38,750 CAD. Under no circumstance can the participants receive more than two times the assigned target bonus.

Participants will be eligible to receive bonuses based upon reaching or exceeding performance goals established by the Board or its Compensation Committee for fiscal 2019. The performance goals in the EIP are based on the Company’s total revenue, net income, free cash flow, and product development milestones. Each of these performance goals will be weighted 25% in calculating bonus amounts.

The bonus amounts earned under the EIP, if any, will be paid 50% in cash and 50% in shares of Restricted Stock under the Plan. In no event shall the total award exceed 200% of the target bonus amount for each participant, or exceed any limitations otherwise set forth in the Plan. The actual bonus amounts, if any, will be determined by the Compensation Committee of the Board upon the completion of fiscal 2019 and paid by March 15, 2020, subject to all applicable tax withholding.

2019 LTIP

The 2019 LTIP consists of total awards of up to 66,213 restricted stock units (“Units”) to Mr. Oviatt, up to 51,646 Units to Mr. Tidball, up to 35,313 Units to Mr. Fugal, and up to 24,862 Units to Mr. Fisher pursuant to two separate Restricted Stock Unit Award Agreements to be entered between the Company and each participant. One such agreement will cover 33% of each award recipient’s Units that are subject to time-based vesting, and the other such agreement will cover the remaining 67% of such award recipient’s Units that may vest based on performance metrics. Upon vesting, the award agreements entitle the award recipients to receive one share of the Company’s common stock for each vested Unit. The vesting period of the 2019 LTIP began on January 1, 2019 and terminates on December 31, 2021 (the “Performance Vesting Date”).

PROFIRE ENERGY, INC. AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2019, and December 31, 2018

On March 14, 2019, our Board of Directors approved a grant of 85,000 restricted stock units ("RSUs") to various employees. The awards vest annually over five years and will result in total compensation expense of $149,600 to be recognized over the vesting period.

On June 12, 2019, the Board of Directors approved a grant of 183,942 restricted stock units ("RSUs") to Independent Directors. Half of the RSUs vest immediately on the date of grant and the remaining 50% of the RSUs will vest on the one year 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.

NOTE 5 – 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 June 30,						For the Six Months Ended June 30,
Sales	2019		2018		2019		2018
Canada	$	1,056,781	$	1,272,056	$	1,992,419	$	2,570,888
United States	9,067,250		10,067,705		18,964,670		20,938,590
Total Consolidated	$	10,124,031	$	11,339,761	$	20,957,089	$	23,509,478

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
Profit (Loss)	2019		2018		2019		2018
Canada	$	(547,202)	$	(265,830)	$	(929,242)	$	(700,494)
United States	1,532,706		1,980,097		3,583,364		4,290,992
Total Consolidated	$	985,504	$	1,714,267	$	2,654,122	$	3,590,498

					As of
Long-Lived Assets					June 30, 2019		December 31, 2018
Canada					$	3,058,272	$	2,079,173
United States					6,049,962		5,941,289
Total Consolidated					$	9,108,234	$	8,020,462

NOTE 6 – 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 contract.

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 contact) for costs related to contracts that are estimated to be completed within one year. All of the current 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 contract balances. We also did not have any material contract liabilities because we typically do not receive payments in advance of recognizing revenue.

PROFIRE ENERGY, INC. AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2019, and December 31, 2018

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 June 30,						For the Six Months Ended June 30,
	2019		2018		2019		2018
Electronics	$	4,139,283	$	4,413,545	$	8,785,880	$	9,220,574
Manufactured	492,969		814,731		923,562		1,769,510
Re-Sell	4,927,003		5,496,133		10,048,448		11,188,940
Service	564,776		615,352		1,199,199		1,330,454
Total Revenue	$	10,124,031	$	11,339,761	$	20,957,089	$	23,509,478

NOTE 7 – 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 June 30,
	2019								2018
	Income (Numerator)		Weighted Average Shares (Denominator)	Per-Share Amount		Income (Numerator)		Weighted Average Shares (Denominator)	Per-Share Amount
Basic EPS
Net income available to common stockholders	$	985,504	47,348,137	$	0.02	$	1,714,267	48,266,199	$	0.04

Effect of Dilutive Securities
Stock options & RSUs	—		776,071			—		829,376

Diluted EPS
Net income available to common stockholders + assumed conversions	$	985,504	48,124,208	$	0.02	$	1,714,267	49,095,575	$	0.03

Options to purchase 244,600 shares of common stock at a weighted average price of $3.88 per share were outstanding during the three months ended June 30, 2019, but were not included in the computation of diluted EPS because the impact of these shares would be antidilutive. These options, which expire between November 2019 and May 2020, were still outstanding at June 30, 2019. No shares were excluded for the three months ended June 30, 2018.


	For the Six Months Ended June 30,
	2019								2018
	Income (Numerator)		Weighted Average Shares (Denominator)	Per-Share Amount		Income (Numerator)		Weighted Average Shares (Denominator)	Per-Share Amount
Basic EPS
Net income available to common stockholders	$	2,654,122	47,392,534	$	0.06	$	3,590,498	48,467,136	$	0.07

Effect of Dilutive Securities
Stock options & RSUs	—		800,315			—		770,802

Diluted EPS
Net income available to common stockholders + assumed conversions	$	2,654,122	48,192,849	$	0.06	$	3,590,498	49,237,938	$	0.07

PROFIRE ENERGY, INC. AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2019, and December 31, 2018

Options to purchase 244,600 and 251,600 shares of common stock at a weighted average price of $3.88 and $3.89 per share were outstanding during the six months ended June 30, 2019 and 2018, respectively, but were not included in the computation of diluted EPS because the impact of these shares would be antidilutive. These options, which expire between November 2019 and May 2020, were still outstanding at June 30, 2019.

NOTE 8 – 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 used our incremental borrowing rate as the discount rate. Our weighted average discount rate is 4.50% and the weighted average remaining lease term is 27.4 months.

The following table shows the components of financing lease cost:


Financing Lease Cost	For the Three Months Ended June 30, 2019		For the Six Months Ended June 30, 2019
Amortization of right-of-use assets	$	19,280	$	35,641
Interest on lease liabilities	1,421		2,832
Total financing lease cost	$	20,701	$	38,473

The following table reconciles future minimum lease payments to the discounted finance lease liability:


Years ending December 31,	Amount
2019	$	43,694
2020	62,995
2021	40,921
2022	13,599
2023	—
Thereafter	—
Total future minimum lease payments	$	161,209
Less: Amount representing interest	8,268
Present value of future payments	$	152,941
Current portion	$	76,559
Long-term portion	$	76,382

Because our office space leases are short-term, we have elected not to recognize them on our balance sheet under the short-term recognition exemption. During the three and six months ended June 30, 2019, we recognized $13,411 and $22,318, respectively in short-term lease costs associated with office space leases.

NOTE 9 – ACQUISITION

On June 18, 2019, our wholly-owned subsidiary, Profire Combustion, Inc., acquired substantially all the assets from Millstream Energy Products, LTD., a Canadian corporation ("MEP"). MEP is a privately-held Canadian company that develops a line of high-performance burners, economy burners, flame arrestor housings, secondary air control plates, and other related combustion components. MEP’s full line of products became available for sale by Profire’s existing sales team immediately after closing of the transaction. These products complement our burner-management system (BMS) product offerings and should enable us to supply a larger portion of the total BMS package sale to our customers.

PROFIRE ENERGY, INC. AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

For the three and six months ended June 30, 2019, and December 31, 2018

The acquisition was accounted for as a business combination in accordance with ASC 805, Business Combinations. The purchase accounting process has not been completed primarily because the valuation of acquired assets has not been finalized. We expect to complete the purchase accounting as soon as practicable but no later than one year from the acquisition date. We do not believe there will be material adjustments. The purchase price of $2,325,846 USD was funded through existing cash. MEP will also receive a 4.5% royalty on proprietary MEP product revenue generated during the next five years. Based on the estimated fair value at the time of purchase, the Company recorded an estimate of intangible assets in the amount of $1,268,930 USD which may include goodwill once the final valuation analysis is completed.


The purchase price calculation is a follows:
Cash	$	2,088,814
Liabilities	237,032
	$	2,325,846

The following table summarizes the preliminary estimated fair value of the assets acquired and liabilities assumed at the date of purchase:
Accounts receivable	$	308,431
Inventory	1,123,922
Intangibles and goodwill	1,268,930
Accounts payable	(114,187)
Accrual liabilities	(261,250)
	$	2,325,846

Transaction and related costs directly related to the acquisition of MEP, consisting primarily of professional fees and integration expenses, have amounted to approximately $42,780 and were expensed as incurred and are included in general and administrative expenses.

NOTE 10 – SUBSEQUENT EVENTS

In accordance with ASC 855 "Subsequent Events," Company Management reviewed all material events through the date this report was issued and the following subsequent events occurred:

On August 1, 2019, our Board of Directors authorized an additional $2,000,000 for the share repurchase plan that was put in place on October 30, 2018. This plan allows for the repurchase of our stock at Management's discretion through October 31, 2019. As of this filing, no shares have been repurchased under this plan.

On August 5, 2019, Profire Energy, Inc., a Nevada corporation (the “Company”), entered into definitive agreement (the “Agreement”) to acquire Midflow Services, LLC. (“Midflow”). The Agreement contains certain customary representations, warranties and covenants. The transaction closed on August 5, 2019.

The Company has agreed to pay a total purchase price of $3.4 million, $2.4 million in cash and $1 million in Profire stock, in exchange for all the stock of Midflow. The purchase price is subject to an adjustment based on working capital at closing.

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 and six-month periods ended June 30, 2019 and 2018. 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, 2018.

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 our forward-looking statements by these cautionary statements.

Forward-looking statements in this report speak only as of their dates. 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 an oilfield technology company providing products that enhance the efficiency, safety, and compliance of the oil and gas industry. We specialize in the creation of burner-management systems used on a variety of oilfield forced-air and natural-draft fire-tube applications. We sell our products and services primarily throughout North America. Our experienced team of industry service professionals also provides supporting services for our products.

Principal Products and Services

In the oil and natural gas 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 or processing functions. This is provided by a burner flame. This burner flame is integral to the process of separating, treating, storing, and transporting oil and gas. Factors such as the gravity, the presence of hydrates, temperature and hydrogen sulfide content contribute to the requirement for heat in oil and gas production and processing applications. Our burner-management systems help ignite, monitor, and manage this burner flame, which can be operated remotely, reducing the need for employee interaction with the burner, such as for the purposes of re-ignition or temperature monitoring. In addition, our burner-management systems can help reduce gas emissions by quickly reigniting a failed flame.

Oil and gas producers can use our burner-management systems to achieve increased safety, greater operational efficiencies, and improved compliance with changing industry regulations. Without burner-management systems, an employee must discover and reignite an extinguished burner flame, then restart the application manually. Therefore, without burner-management systems, all application monitoring is done directly on-site. Such on-site monitoring can result in the interruption of production for longer periods of time, risk in reigniting a flame, which can lead to burns and explosions, and the possibility of raw gas being vented into the atmosphere when the flame fails. In addition, without a burner-management system, burners often run longer, incurring significant fuel costs. We believe there is a growing trend in the oil and gas industry toward enhanced control, process automation, and data logging, largely for improved efficiency and operational cost savings, and partly for potential regulatory-satisfaction purposes. Our burner-management systems are designed to be always on standby to make sure the burner flame is lit and managed properly, which can reduce how often a burner is running and may reduce fuel costs. We continue to assess compliance-interest in the industry, and we believe that enhanced burner-management products and services can help our customers be compliant with such regulatory requirements, where applicable. In addition to selling products, we train and dispatch service technicians to service burner flame installations throughout the United States and Canada.

We initially developed our first burner-management system in 2005. Since then, we have released several iterations of our initial burner-management system, increasing features and capabilities, while maintaining compliance with North American standards including, Canadian Standards Association (CSA), Underwriters Laboratories (UL), and Safety Integrity Level (SIL) standards.

Our burner-management systems have become widely used in Western Canada, and throughout many regions in the United States. We have sold our burner-management systems to many large energy companies, including Anadarko, Chesapeake, ConocoPhillips, Devon, Encana, XTO, CNRL, Shell, OXY, and others. Our systems have also been sold or installed in other parts of the world, including France, Italy, Argentina, India, Nigeria, the Middle East, Australia, and Brazil. We are established in the North American oil and gas markets, which is our current primary focus, but we are working to expand into more international markets as well.

Product Extension: PF3100

The PF3100 is an advanced burner-management system which is designed to operate, monitor, control, and manage a wide variety of more complex, multi-faceted oilfield appliances. Throughout the industry, Programmable Logic Controllers, or PLCs, are used to operate and manage custom-built oilfield applications. Though capable, PLCs can be expensive, tedious, and difficult to use and install. The PF3100 can help manage and synchronize custom applications helping oilfield producers meet deadlines and improve profitability through an off-the-shelf solution with dynamic customization. We are selling the PF3100 for initial use in the oil and gas industry's natural-draft and forced-draft applications.

We frequently assess market needs by participating in industry conferences and soliciting feedback from existing and potential customers, allowing us to provide quality solutions to the oil and gas producing companies we serve. Upon identifying a potential market need, we begin researching the market and developing products that might have feasibility for future sale.

Additional Complementary Products

In addition to our burner- and combustion-management systems, we also supply complementary products that provide our customers with a complete solution. These products include safety and monitoring devices such as shut-down and temperature valves, pressure transmitter and switches, burners, pilots, and other combustion related equipment. We have invested heavily to develop innovative, complementary, products which we anticipate will help bolster continued long-term growth.

Chemical-Management Systems

In addition to the burner-management systems and complementary technologies we have sold historically, in November 2014 we expanded our product offering to include chemical-management systems through our acquisition of VIM Injection Management assets.

Chemical injection is used for a wide variety of purposes in the oil and gas industry including down-hole inhibition of wax, hydrates, and corrosion agents, so that product can flow more efficiently to the wellhead. Once at the wellhead, chemical injection can also be used to further process the oil or gas before it is sent into a pipeline, and with other applications.

Currently, a variety of pumps are used to meter the chemicals injected but are often inaccurate in injecting the proper volume of chemical, as they may not account for all of the variables that affect how much chemical should be injected (e.g., pressure, hydrogen sulfide concentration, etc.) nor the optimal efficiency rates of varying pump systems.

Inaccurate injection levels are problematic because the chemicals injected are expensive, and over-injection causes unnecessary expense for producers. Under-injection can also be problematic because it often results in the creation of poor product (i.e., with wax, hydrate, or corrosion agents) and causes problems with pipeline operations.

Our chemical-management systems monitor and manage the chemical-injection process to ensure that optimal levels of chemicals are injected. This improves the efficiency of the pump and production quality of the well, improves safety for workers that would otherwise be exposed to these chemicals, and improves compliance with pipeline operators. Like our burner-management systems, our chemical-management systems can be monitored and managed remotely via supervisory control and data acquisition or other remote-communication systems. We hold a U.S. patent related to our chemical management system and its process for supplying a chemical agent to a process fluid.

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
	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
Total Revenues	$	10,124,031		$	10,833,058		$	10,605,155		$	11,499,902		$	11,339,760
Gross Profit Percentage	51.2		%	53.2		%	44.9		%	53.0		%	52.1		%
Operating Expenses	$	4,190,479		$	3,626,811		$	3,541,209		$	3,701,281		$	3,810,896
Net Income	$	985,504		$	1,668,618		$	831,404		$	1,658,859		$	1,714,270
Operating Cash Flow	$	2,699,154		$	2,608,501		$	1,829,363		$	599,862		$	1,670,392

Revenues for the quarter ended June 30, 2019 decreased by 11% or $1,215,730 compared to the quarter ended June 30, 2018, which was mostly driven by macro industry changes over that same period. The average oil price in the first six months of 2019 was only $57.39 per barrel compared to $65.55 per barrel in the first six months of 2018 representing a decrease of 12.4%. The Q2 2019 weekly average rig count for North America was 989 compared to 1,039 in the same period of last year . These decreases have followed the historic decline in oil prices in Q4 2018. As a result of these macro trends, we believe many exploration and production companies have pulled back on capex budgets or deferred planned spending to later in 2019 and even 2020. Customers are indicating to us that they intend to use cash in the near future to fund further debt reductions, increasing dividend payments or to initiate or expand stock repurchase programs.

Our gross profit margin was down slightly from the same quarter of last year but remains within normal quarterly expectations. The gross margin percentage fluctuates each quarter due to changes in product mix and product related reserves. Over the past year gross profit has stayed fairly consistent, within an expected range, except for Q4 of 2018 where gross profit decreased due to inventory adjustments related to our chemical-management-system product line. We anticipate gross margin will stay within the expected range going forward, assuming normal product mix fluctuations.

Operating expenses increased $379,581 from the same quarter of last year which is part of our previously announced strategic investment plan for 2019. As reported in our Annual Report on Form 10-K for the year ended December 31, 2018, we plan to continue making investments during 2019 in the areas of research and development efforts in order to expand our product offerings, international market evaluation and expansion and an expanded sales and labor force to meet expected market demand and support our expanding product offerings.

Due to the lower revenues and higher operating cost to support strategic initiatives discussed above, net income decreased 43% during the quarter ended June 30, 2019 compared to the same quarter in 2018. Operating cash flows increased 62% during the second quarter of 2019 compared to the second quarter of 2018, despite lower revenue and increased costs. This increase is primarily due to favorable movements in net working capital compared to unfavorable movements in net working capital in the 2018 quarter.

Despite the ongoing volatility in the oil and gas industry and macro trends in the short term, we believe that 2019 remains the right time to further invest in the Company's future. Assuming we successfully implement our planned investments in research and development, in international market expansion and an expanded sales and labor force, we believe we are well-positioned for continued growth in future periods.

Comparison of the six-months ended June 30, 2019 and 2018

The table below presents certain financial data comparing the six months ended June 30, 2019 to the same period ended June 30, 2018:


	For the Six Months Ended June 30,
	2019			2018			$ Change		% Change
Total Revenues	$	20,957,089		$	23,509,478		$	(2,552,389)	(10.9)	%
Gross Profit Percentage	52.3		%	51.2		%			1.1	%
Operating Expenses	$	7,817,290		$	7,684,734		$	132,556	1.7	%
Net Income	$	2,654,122		$	3,590,498		$	(936,376)	(26.1)	%
Operating Cash Flow	$	5,307,655		$	3,123,331		$	2,184,324	69.9	%

Revenues during the six-month period ended June 30, 2019 compared to the same period last year declined 10.9% which is largely due to a 12.4% drop in the average oil price over the same time frame. Operating expenses only increased 1.7% year-over-year due to the ongoing strategic investments the Company is making in 2019. As a result of the revenue and operating cost changes, there was a 26.1% decline in net income. Our gross profit percentage increased slightly by 1.1% during the six-months ended June 30, 2019, compared to the same period in 2018, primarily due to changes in product mix, direct labor cost increases, and inventory adjustments.

Liquidity and Capital Resources

Working capital at June 30, 2019 was $27,321,307, compared to $27,744,268 at December 31, 2018. This decrease was a combination of decreases in accounts receivable and inventory which was partially offset by decreases in accrued liabilities such as income taxes payable.

We acquired land for a new office building and research and development facility in Canada in June of 2018 and have begun construction. Excluding the cost of the land, the total cost of the building is expected to be approximately $4,000,000 USD. As of June 30, 2019, we had spent approximately $1,341,000 USD towards its construction. We believe our available cash resources are sufficient to cover construction costs for the building and other expected capital expenditures for the foreseeable future, and we have no current plans to incur debt financing.

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 Securities Exchange Act of 1934, as amended, as of the end of the period covered by this Report. 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 June 30, 2019.

Changes in Internal Control over Financial Reporting

Our Management, with the participation of our Chief Executive Officer and Chief 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 June 30, 2019 that materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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, 2018, 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

On November 5, 2018, the Company announced that its Board of Directors had authorized a share repurchase program allowing the Company, at Management's discretion, to repurchase up to $2,000,000 worth of the Company's common stock from time to time through October 31, 2019. All other share repurchase programs previously authorized by the Board have expired.

The table below sets forth additional information regarding our share repurchases during the three months ended June 30, 2019:

Period

(a) Total Number of Shares Purchased

(b) Weighted Average Price Paid Per Share

(d) Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans

April

—

May

—

June

—

Total

—

Item 3. Defaults Upon Senior Securities

We do not have any debt nor any current plans to obtain debt financing.

Item 4. Mine Safety Disclosures

This item is not applicable.

Item 5. Other Information

This item is not applicable.

Item 6. Exhibits

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


Exhibit 10.1			2019 Executive Incentive Plan+*

Exhibit 10.2			Restricted Stock Unit Agreements between Profire Energy and Ryan Oviatt dated April 29, 2019+*

Exhibit 10.3			Restricted Stock Unit Agreements between Profire Energy and Cameron M. Tidball dated April 30, 2019+*

Exhibit 10.4			Restricted Stock Unit Agreements between Profire Energy and Jay G. Fugal dated April 30, 2019+*

Exhibit 10.5			Restricted Stock Unit Agreements between Profire Energy and Patrick D. Fisher dated April 30, 2019+*

Exhibit 10.6			Asset Purchase Agreement between Profire Combustion Inc. and Millstream Energy Products dated June 12, 2019*

Exhibit 31.1*			Certification of Principal Executive Officer Pursuant to Rule 13a-14(a)

Exhibit 31.2*			Certification of Principal Financial Officer Pursuant to Rule 13a-14(a)

Exhibit 32.1*			Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350

Exhibit 32.2*			Certification of 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

+ Indicates Management contract or compensatory plan or arrangement

* Filed herewith

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:	August 7, 2019	By:	/s/ Brenton W. Hatch
			Brenton W. Hatch
			Chief Executive Officer


Date:	August 7, 2019	By:	/s/ Ryan W. Oviatt
			Ryan W. Oviatt
			Chief Financial Officer