XPlore Inc., a biotechnology company, supplies financial information for both years 2019 and 2020 (all the numbers, except for share data, are shown in thousands of dollars). Estimated cost of capital for all its financing is 10,5%.

XPlore Inc. Income statements ($ in thousands)

2019 2020

Sales $5130 $4,850

Cost of goods sold (3,330) (3,240)

Gross profits $1,800 $1,620

Operating expenses:

Selling and G&A expenses $(738) $(702)

Depreciation expenses (306) (450)

Total operating expenses $(1,044) $(1,152)

Operating profits $756 $468

Interest expense (180) (248)

Earnings before taxes $576 $221

Income taxes (207) (59)

Net Income $369 $16