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ImageSensing systems Precision decisions . NEWS RELEASE Contact : Frank Hallowell , Chief Financial Officer Image Sensing Systems , Inc. Phone : 651.603.7744 FOR IMMEDIATE RELEASE Image Sensing Systems , Inc. Announces 2021 First Quarter Results Saint Paul , Minn . , May 3 , 2021 -- Image Sensing Systems , Inc. ( Nasdaq : ISNS ) today announced results for its quarter ended March 31 , 2021 . First Quarter 2021 Financial Summary • First quarter royalties were $ 1.8 million , a decrease of 14 percent from the same period in the prior year . • First quarter product sales were $ 1.2 million , an increase of 11 percent from the same period in the prior year . • Operating expenses totaled $ 1.9 million in the first quarter of 2021 , a decrease of 34 percent from the prior year period . • Capitalized software costs in the first quarter of 2021 were $ 123,000 compared to $ 22,000 in the prior year period . • The Company recognized other income of $ 931,000 for the forgiveness of the Paycheck Protection Program loan and accrued interest during the first quarter . • Net income for the first quarter of 2021 totaled $ 1.1 million compared to a net loss of $ 111,000 for the same period in the prior year . • Cash balance decreased to $ 8.2 million at March 31 , 2021 , down from $ 8.6 million at the end of the fourth quarter of 2020 . First - Quarter Results : First quarter revenue for Image Sensing Systems , Inc. ( " ISS , " the " Company , " " us , " " we , " or " our " ) in 2021 was $ 3.0 million compared to $ 3.2 million in the first quarter of 2020. Revenue from royalties was $ 1.8 million in the first quarter of 2021 compared to $ 2.1 million the first quarter of 2020. Product sales increased to $ 1.2 million in