Financial Performance - Total revenues for Q1 2025 were $22.4 million, a decrease of 39.5% compared to $37.1 million in Q1 2024[5] - Gross profit for Q1 2025 was $8.0 million, down 37.2% from $12.8 million in Q1 2024, with a gross profit margin of 35.9%[7] - Net loss for Q1 2025 was $3.2 million, an improvement from a net loss of $7.1 million in Q1 2024, resulting in a net loss per share of $1.41 compared to $3.81[10] - Adjusted EBITDA for Q1 2025 was a loss of $25 thousand, compared to a gain of $0.2 million in Q1 2024[13] - Revenues for Q1 2025 were $22.423 million, a decrease of 39.5% compared to $37.093 million in Q1 2024[25] - Gross profit for Q1 2025 was $8.043 million, down 37.1% from $12.815 million in Q1 2024[25] - Net loss for Q1 2025 was $3.243 million, an improvement from a net loss of $7.089 million in Q1 2024[25] - Adjusted EBITDA for Q1 2025 was $(25) thousand, compared to $179 thousand in Q1 2024[26] - Operating expenses for Q1 2025 were $10.951 million, down 33.1% from $16.420 million in Q1 2024[25] Cash and Assets - The company ended Q1 2025 with $8.1 million in cash and $1.6 million in working capital, alongside a stockholders' deficit of $15.8 million[7] - Total current assets decreased to $73.953 million in Q1 2025 from $78.382 million in Q4 2024, a decline of 5.4%[24] - Cash and cash equivalents increased slightly to $8.077 million in Q1 2025 from $8.007 million in Q4 2024[24] - Total stockholders' deficit increased to $(15.815) million in Q1 2025 from $(12.896) million in Q4 2024[24] - Total liabilities decreased to $96.002 million in Q1 2025 from $99.692 million in Q4 2024, a reduction of 1.7%[24] Strategic Initiatives - Boxlight launched the Clevertouch Max 2 in the U.S. market, moving towards a unified flat panel brand globally[7] - The company formalized partnerships with five major third-party emergency management platforms for integrated School Safety Solutions[7] - Boxlight received ISO 27001 accreditation for information security management for Clevertouch[7] - The company is strategically focusing on operational efficiency and expanding its commercial ecosystem in anticipation of renewed spending in the education sector[4] Foreign Currency Impact - The company reported a foreign currency translation adjustment of $570 thousand in Q1 2025, compared to a loss of $811 thousand in Q1 2024[25]

Market Overview - The U.S. K-12 education market size was estimated at USD 3 billion in 2021 and is expected to reach around USD 25 billion by 2030, growing at a CAGR of 27% from 2022 to 2030[41]. - The U.S. display market is projected to reach USD 40 billion by 2028, with corporate sector sales expected to account for approximately 19% of the global display market by 2027[39]. - The E-learning market was valued at USD 250 billion in 2023 and is expected to reach USD 490.2 billion by 2029, growing at a CAGR of 11.89%[47]. - The global expenditure on education and training is expected to reach USD 10 trillion by 2030, indicating a growing market for educational technology[42]. Company Achievements - Boxlight has sold its solutions into more than 70 countries and over 1.5 million classrooms and meeting spaces[19]. - Boxlight received multiple awards in 2024, including recognition as one of the World's Top 250 EdTech companies and eight product and innovation awards at the ISTELive 2024 conference[21]. Product Offerings - Boxlight aims to become a single source solution for educators globally, providing a holistic approach to modern classrooms[20]. - Boxlight's products are backed by nearly 40 years of research and development, ensuring a comprehensive and integrated line of interactive display solutions[19]. - Boxlight's Clevertouch Max 2 offers interactive displays in sizes 65", 75", and 86", featuring up to 40 touch points for simultaneous user interaction[53]. - The Clevertouch Lux model supports up to 40 touch points and integrates seamlessly with Windows Ink-compliant applications, enhancing user experience[54]. - The Clevertouch Edge is designed for conference rooms, featuring a built-in 4K camera with advanced tracking capabilities for improved virtual meeting experiences[55]. - CleverLive Digital Signage platform includes over 200 editable templates and features for multimedia content management, enhancing user engagement[61]. - The Mimio DS Series displays are available in sizes from 43" to 98", running on Android 11 with advanced connectivity options[63]. - The Cleverhub device allows educational institutions to upgrade legacy systems without a complete overhaul, enhancing collaboration and content sharing[65]. - Boxlight's STEM product portfolio has expanded through acquisitions, including Modern Robotics and MyStemKits, providing over 300 lessons for 3D printing[77][78]. - The MimioView 350U document camera integrates with MimioStudio software for easy use, providing high-definition images with a single cable connection[80]. - The Juno classroom audio system offers premium features like feedback suppression and Bluetooth, enhancing sound quality in educational settings[70]. - The Conductor School Communication System allows for comprehensive audio coverage and integrates with digital signage for synchronized alerts[76]. - The Mimio suite integrates hardware and software to create a Connected Classroom, enhancing educators' decision-making with systematic data on student performance[81]. - MimioStudio allows for the creation and management of interactive lessons, operable from various Boxlight display systems and mobile devices[82]. - The introduction of MimioMobile in 2014 enabled fully interactive student activities displayed on classroom devices, enhancing engagement and assessment capabilities[83]. - MyClass platform offers over 10,000 premade digital lessons, facilitating collaboration and assessment, and integrates with major Learning Management Systems (LMS)[88]. Financial Performance - The company incurred net losses attributable to common stockholders of $29.6 million and $40.4 million for the fiscal years ended December 31, 2024 and 2023, respectively[146]. - Total revenues declined by 23.1% from $176.7 million in 2023 to $135.9 million in 2024[146]. - Approximately 73% of the company's revenues for the year ended December 31, 2024, were generated from sales of interactive display products[158]. - Sales outside the U.S. represented 55% of the company's revenues for the year ended December 31, 2024[159]. Debt and Financing - The company secured a term loan credit facility of $58.5 million, with a delayed draw facility of up to $10 million, secured by its assets[105]. - The interest rate on the term loans is LIBOR plus 10.75%, with quarterly principal payments of $625,000 starting March 31, 2022[105]. - The Company entered into a third amendment to the Credit Agreement in April 2023, securing an additional $3.0 million delayed draw term loan, which was repaid in July 2023 without penalties[111]. - In June 2023, the Company replaced LIBOR-based rates with a SOFR-based rate, with a minimum interest rate floor of 1%[112]. - As of December 31, 2024, the Company owed $37.6 million under the Credit Agreement and has faced non-compliance with certain covenants, raising doubts about its ability to continue as a going concern[124]. - The Senior Leverage Ratio requirement was amended from 2.00 to 6.00 for March 31, 2024, and will remain at 1.75 thereafter[113]. - The Company obtained a waiver in November 2024 for defaults related to financial covenants and paid down approximately $1.1 million under the Credit Agreement[117]. - An eighth amendment in March 2025 provided an additional $2.5 million working capital bridge loan, with a fee of 6% on the loan amount[118]. - The Company has a significant amount of indebtedness, approximately $38 million, all secured, which could adversely affect cash flow and operations[130]. - The Company is required to pay a fee equal to 6% of the total borrowings under the Credit Agreement, which could impact cash flow management[114]. Challenges and Risks - The company faces substantial competition in the interactive education industry, which may lead to price reductions and loss of market share[163]. - The company is subject to seasonal fluctuations, with significant revenue variations expected in the second and third calendar quarters[161]. - Increased tariffs and changes in international trade relations may adversely impact the company's business and financial condition[159]. - The company may experience challenges in raising additional capital due to substantial indebtedness and limited availability of shares[143]. - The company faces challenges in enhancing and developing new products due to rapid technological changes and competition from alternatives like tablet computers[168]. - The education market represents a significant portion of the company's revenue, and its future growth in business and government sectors depends on successful expansion strategies[171]. - The company may experience sales decline in developed markets due to market saturation, particularly in the U.S., U.K., and Australia[173]. - Growth in foreign markets requires customized solutions and competitive pricing, which may reduce gross margins[176]. - The company relies on third-party suppliers for components, and disruptions in supply chains could adversely affect revenue[179]. - The company must attract and retain skilled personnel to operate effectively, as competition for talent in the high-technology industry is intense[180]. - Strategic alliances with third parties are essential for accessing new technologies, but the company may face challenges in maintaining these relationships[183]. - The company is streamlining its brand strategy to position for future growth, but unsuccessful execution could negatively impact revenues[184]. - Decreases in government funding for education could materially affect the company's revenue, as many customers depend heavily on such funding[191]. - Any stagnation or adverse changes in funding for educational institutions could lead to reduced purchases of the company's products, resulting in lost revenue[193]. - The company is subject to various product safety and environmental regulations, which could materially affect financial performance if compliance is not met[194]. - The company faces risks related to foreign operations, including increased costs and complexities in compliance with local laws and regulations[196]. - The company is exposed to fluctuations in foreign currencies, which may materially adversely affect its results of operations[203]. - The company has significant foreign operations that require substantial management attention and resources[196]. - The company must comply with the Foreign Corrupt Practices Act and similar international laws, which could expose it to penalties if violated[197]. - The company may face challenges in obtaining patents or protecting its intellectual property, which is crucial for its competitive advantage[209]. - The company has historically provided product warranties averaging between three and five years, which could lead to significant costs if defects occur[208]. - The company is at risk of increased transportation costs due to oil price fluctuations and changes in customs or tariffs, which could harm its competitive position[201]. - The company must anticipate consumer preferences and successfully develop attractive products to maintain or increase revenue[217].

Financial Performance - Total revenues for Q4'24 were $24.0 million, a decrease of 38.2% from $38.8 million in Q4'23[5] - Gross profit for Q4'24 was $7.3 million, down 40.3% from $12.3 million in Q4'23, with a gross profit margin of 30.6%[6] - Net loss for Q4'24 was $16.7 million, compared to a net loss of $17.7 million in Q4'23, with net loss per share of ($8.65) versus ($9.35) in the prior year[7] - Total revenues for FY'24 were $135.9 million, a decrease of 23.1% from $176.7 million in FY'23[13] - FY'24 gross profit was $46.9 million, representing a gross profit margin of 34.5%, down from 35.8% in FY'23[13] - Net loss for FY'24 was $28.3 million, compared to $39.2 million in FY'23, with net loss attributable to common shareholders of $29.6 million[15] - Total revenues for the year ended December 31, 2024, decreased to $135.893 million, down 23.1% from $176.721 million in 2023[33] - Gross profit for 2024 was $46.941 million, representing a decline of 25.9% compared to $63.302 million in 2023[33] - Net loss attributable to common stockholders for 2024 was $29.604 million, an improvement from a net loss of $40.425 million in 2023[33] - The company reported a comprehensive loss of $29.409 million for 2024, compared to a comprehensive loss of $36.941 million in 2023[33] Operating Expenses - Total operating expenses for FY'24 were $66.4 million, down from $89.6 million in FY'23, primarily due to cost reduction initiatives[14] - Operating expenses for 2024 were $66.411 million, down 25.8% from $89.602 million in 2023[33] - Research and development expenses increased to $4.126 million in 2024, up 30.8% from $3.155 million in 2023[33] Cash and Assets - The company ended Q4'24 with $8.0 million in cash and $1.3 million in working capital[17] - Total current assets decreased to $78.382 million in 2024, down 24.3% from $103.580 million in 2023[29] - Cash and cash equivalents decreased significantly to $8.007 million in 2024, down 53.6% from $17.253 million in 2023[29] - Total assets decreased to $115.305 million in 2024, down 28.7% from $161.773 million in 2023[29] Liabilities - Total liabilities increased to $99.692 million in 2024, compared to $116.513 million in 2023, reflecting a decrease of 14.4%[30] Business Developments - Boxlight opened a new showroom in Poland in August 2024 and launched a unified worldwide display brand as Clevertouch by Boxlight[7] - Analysts project a market recovery beginning in the second half of 2025, which may benefit Boxlight's performance[4]

Financial Performance - Total revenues for Q3 2024 were $36.3 million, a 26.9% decrease from $49.7 million in Q3 2023, primarily due to lower global demand for interactive flat panel displays [172]. - Cost of revenues decreased by 24.1% to $24.0 million in Q3 2024 from $31.7 million in Q3 2023, attributed to a decrease in units sold [173]. - Gross profit for Q3 2024 was $12.3 million, down 32.0% from $18.0 million in Q3 2023, with a gross profit margin of 33.8% compared to 36.3% in the prior year [174]. - Total revenues for the nine months ended September 30, 2024 were $111.9 million, a decrease of 18.9% compared to $137.9 million for the same period in 2023 [180]. - Gross profit for the nine months ended September 30, 2024 was $39.6 million, down 22.3% from $51.0 million in 2023, with a gross profit margin of 35.4% compared to 37.0% in the prior year [182]. - Net loss for the nine months ended September 30, 2024 was $11.6 million, compared to a net loss of $21.5 million for the same period in 2023 [186]. Expenses - General and administrative expenses for Q3 2024 were $12.1 million, representing 33.3% of revenue, compared to $15.4 million or 31.0% of revenue in Q3 2023 [175]. - General and administrative expenses for the nine months ended September 30, 2024 were $39.7 million, representing 35.4% of revenue, an increase from 32.9% of revenue in 2023 [183]. - Research and development expenses increased to $1.0 million in Q3 2024, representing 2.8% of revenue, up from $979 thousand or 2.0% of revenue in Q3 2023 [176]. - Research and development expenses increased to $3.2 million for the nine months ended September 30, 2024, representing 2.8% of revenue, up from 1.5% in 2023 [184]. - Other net expense for Q3 2024 was $2.2 million, a decrease of $0.9 million from $3.1 million in Q3 2023, primarily due to realized foreign currency gains and losses [177]. Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2024 were $10.5 million, down from $18.4 million a year earlier [192]. - Net cash used in operating activities for the nine months ended September 30, 2024 was $2.1 million, compared to $8.2 million provided in 2023 [193]. - The company entered into a working capital loan with Whitehawk for $5.0 million, with $2.0 million funded on April 19, 2024 [195]. - The company was not in compliance with its Senior Leverage Ratio financial covenant under the Credit Agreement at September 30, 2024 [202]. - Current forecast projects that the company may not be able to maintain compliance with the Senior Leverage Ratio, raising substantial doubt about its ability to continue as a going concern [203]. - The company's continuation as a going concern depends on achieving positive cash flow from operations and refinancing its Credit Agreement with favorable terms [204]. Internal Controls and Compliance - The company is in the process of remediating material weaknesses in internal controls over financial reporting, including adding finance and accounting personnel [213]. - The company plans to develop new written accounting policies and increase training for relevant personnel to uphold internal control standards [214]. - The principal executive and financial officers concluded that the company's disclosure controls and procedures were not effective due to material weaknesses [211]. - The company believes that its unaudited condensed consolidated financial statements fairly present its financial condition and results of operations [212]. Strategic Initiatives - The company aims to achieve profitability through strategic business acquisitions and integrating acquired products to enhance sales productivity [160]. - The company has implemented initiatives to reduce operating expenses across all cost groups, leading to significant declines in employee-related expenses [175]. - The company is focused on expanding its reseller partner network to increase market penetration and reach [160]. - Future growth strategies may include targeting additional acquisition opportunities to complement existing business operations [161]. Legal Matters - The company anticipates being involved in legal proceedings arising in the ordinary course of business, but does not expect these to materially affect its financial position [218]. Nasdaq Compliance - As of February 28, 2024, the company received a notification from Nasdaq indicating it no longer met the Bid Price Rule, with a compliance deadline extended to February 24, 2025 [205]. Off-Balance Sheet Arrangements - The company has no significant off-balance sheet arrangements that could materially affect its financial condition or liquidity [206].

Financial Data and Key Metrics Changes - Revenues for Q3 2024 were $36.3 million, a decrease of 26.9% compared to $49.7 million in Q3 2023 [22] - Gross profit for the quarter was $12.3 million, down from $18 million in the prior year, with a gross profit margin of 33.8%, a decrease of 250 basis points year-over-year [24] - The company reported a net loss of $3.1 million or $0.34 per share, compared to a net loss of approximately $17.8 million or $1.90 per share in the prior year [26] - Adjusted EBITDA for Q3 2024 was $2.2 million, down from $4.9 million in Q3 2023 [27] - Total operating expenses for Q3 2024 were $13.1 million, significantly reduced from $29.6 million in Q3 2023 [25] Business Line Data and Key Metrics Changes - Flat panel displays accounted for approximately 72% of total revenues, while audio solutions comprised 12% [23] - EMEA revenues made up about 49% of total revenues, totaling $18 million, while Americas revenues were approximately 48%, totaling $17 million [22] Market Data and Key Metrics Changes - Demand for interactive flat panel displays (IFPD) remains soft, particularly in the U.S., while Europe has shown stronger performance, with returns in Germany and Belgium up 29% and 18% respectively [16] Company Strategy and Development Direction - The company is simplifying its brand structure, consolidating major product lines under three solution categories: Clevertouch for display products, FrontRow for audio and communication solutions, and Mimio for STEM solutions [8][9] - The focus is on aligning expenses with current revenue levels and enhancing product offerings to provide a robust end-to-end suite of solutions [7][11] - The company aims to capture market share by leveraging its broad portfolio and competitive advantages against industry players [11] Management's Comments on Operating Environment and Future Outlook - Management expressed a bullish long-term outlook for the market, citing growth areas in classroom solutions, digital signage, and higher education [17][41] - The current market conditions are expected to lead to quarter-to-quarter volatility, but the company is positioned for recovery as market conditions improve [18][41] - Management acknowledged the challenges of a prolonged industry softness but remains optimistic about future growth opportunities [41] Other Important Information - The company repaid a $4 million bridge loan early, which was used to meet short-term working capital needs [20] - As of September 30, 2024, the company had $10.5 million in cash and $141.5 million in total assets [28] Q&A Session Summary Question: Impact of consolidating to one brand on exclusive channel partner agreements - Management clarified that the move to expand the Clevertouch brand is seen as beneficial and has been positively received by partners [30][31] Question: Reasons for the rapid market shrinkage in the U.S. - Management attributed the decline to a previous period of heavy spending and the durability of existing devices, leading to a slowdown in refresh cycles [35][36] Question: Insights on the long-term outlook amidst weakening demand trends - Management remains cautiously optimistic, citing historical resilience and signs of recovery in certain markets [39][41] Question: Compliance with senior credit agreement - Management confirmed they are in the process of finalizing a waiver related to a senior leverage ratio covenant that was not met for Q3 [42][43] Question: Thoughts on U.S. tariffs and their impact - Management indicated preparedness for potential tariff impacts and emphasized proactive planning with suppliers [52][53] Question: Opportunities in higher education and enterprise markets - Management highlighted the potential for growth in these sectors, noting the need for enhanced communication technology in various settings [56][58]

Financial Performance - Boxlight Corporation reported a quarterly loss of $0.34 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.09, representing an earnings surprise of -277.78% [1] - The company's revenues for the quarter ended September 2024 were $36.29 million, missing the Zacks Consensus Estimate by 18.82%, and down from $49.67 million a year ago [2] - Over the last four quarters, Boxlight has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - Boxlight shares have declined approximately 48.6% since the beginning of the year, contrasting with the S&P 500's gain of 25.5% [3] - The current Zacks Rank for Boxlight is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is -$0.29 on revenues of $36.05 million, and for the current fiscal year, it is -$1.26 on revenues of $156.36 million [7] - The outlook for the Technology Services industry, where Boxlight operates, is currently in the top 28% of over 250 Zacks industries, suggesting a favorable environment for performance [8]

Financial Performance - Revenue for Q3 2024 was $36.3 million, a decrease of 26.9% from $49.7 million in Q3 2023[1][2] - Gross profit margin decreased to 33.8% in Q3 2024 from 36.3% in Q3 2023, with gross profit down 32.0% to $12.3 million[1][4] - Net loss for Q3 2024 was $3.1 million, significantly improved from a net loss of $17.8 million in Q3 2023[1][6] - Adjusted EBITDA for Q3 2024 was $2.2 million, down from $4.9 million in Q3 2023[1][9] - Total revenues for the nine months ended September 30, 2024, were $111.9 million, an 18.9% decrease from $137.9 million in the same period of 2023[1][10] - Total revenues for the three months ended September 30, 2024, were $36,289, a decrease of 27% compared to $49,667 in the same period of 2023[27] - Adjusted EBITDA for the nine months ended September 30, 2024, was $6,026, down from $13,652 in the same period of 2023, a decrease of 56%[31] Operating Expenses - Total operating expenses were $13.1 million, a reduction from $29.6 million in Q3 2023, primarily due to planned cost-cutting initiatives[1][5] - Operating expenses for the three months ended September 30, 2024, totaled $13,111, significantly lower than $29,613 in the same period of 2023, a decrease of 56%[29] Cash and Working Capital - Cash and cash equivalents at the end of Q3 2024 were $10.5 million, with total working capital of $45.8 million[1][16] - Cash and cash equivalents as of September 30, 2024, were $10,493, down from $17,253 as of December 31, 2023[28] - Total current assets decreased to $87,357 as of September 30, 2024, from $100,378 as of December 31, 2023, a decline of 13%[28] - Total liabilities decreased to $106,344 as of September 30, 2024, from $113,311 as of December 31, 2023, a reduction of 6%[28] Product Development and Certifications - The company launched the new IMPACT Max 2 interactive panel, enhancing its product offerings in the interactive technology sector[1][2] - Boxlight achieved Cyber Essentials certification, ensuring product safety across all Clevertouch products[1][1] Compliance and Financial Agreements - The company is finalizing an amendment to its Credit Agreement due to noncompliance with financial covenants[1][17] Comprehensive Loss - The company reported a comprehensive loss of $791 for the three months ended September 30, 2024, compared to a comprehensive loss of $20,604 in the same period of 2023[29]

Financial Performance - Total revenues for Q2 2024 were $38.5 million, a decrease of 18.1% from $47.1 million in Q2 2023, primarily due to lower global demand for interactive flat panel displays [132]. - Gross profit for Q2 2024 was $14.5 million, down 18.5% from $17.8 million in Q2 2023, with a gross profit margin of 37.7% compared to 37.9% in Q2 2023 [133]. - Total revenues for the six months ended June 30, 2024 were $75.6 million, a 14.3% decrease from $88.2 million in the same period of 2023 [136]. - Gross profit for the six months ended June 30, 2024 was $27.3 million, down 17.1% from $33.0 million in 2023, with a gross profit margin of 36.2% compared to 37.4% in 2023 [137]. - Net loss for Q2 2024 was $1.5 million, compared to a net loss of $0.8 million in Q2 2023, reflecting the changes in revenues and expenses noted above [135]. - Net loss for the six months ended June 30, 2024 was $8.6 million, compared to a net loss of $3.7 million in 2023 [139]. Expenses - Cost of revenues decreased by 17.9% to $24.0 million in Q2 2024 from $29.2 million in Q2 2023, attributed to a decrease in units sold [132]. - General and administrative expenses for Q2 2024 were $12.3 million, representing 32.0% of revenue, a slight decrease from $15.2 million or 32.4% of revenue in Q2 2023 [133]. - General and administrative expenses decreased to $27.6 million, representing 36.5% of revenue, compared to $30.0 million or 33.9% of revenue in 2023 [137]. - Research and development expenses increased to $985 thousand in Q2 2024, representing 2.6% of revenue, up from $525 thousand or 1.1% of revenue in Q2 2023 [134]. - Research and development expenses increased to $2.2 million, representing 2.9% of revenue, up from $1.1 million or 1.3% of revenue in 2023 [138]. - Other expense, net for Q2 2024 was $2.8 million, an increase of $0.2 million from $2.6 million in Q2 2023, primarily due to interest expense on term loans [135]. Cash and Liquidity - Cash and cash equivalents as of June 30, 2024 were $7.5 million, down from $15.6 million on June 30, 2023 [144]. - Net cash used in operating activities for the six months ended June 30, 2024 was $7.3 million, compared to $10 thousand in 2023 [145]. - The company had a working capital balance of $46.7 million and a current ratio of 2.21 as of June 30, 2024, down from a working capital balance of $64.8 million and a current ratio of 2.79 in 2023 [144]. Compliance and Debt Management - The company is not in compliance with its Senior Leverage Ratio financial covenant under the Credit Agreement as of June 30, 2024, but has obtained a waiver for the leverage ratio default [151]. - The company is actively working to refinance its debt with new lenders on more favorable terms, although no agreements have been executed as of the issuance of the financial statements [153]. Strategic Initiatives - The company aims to achieve significant cost-savings through merging operations of acquired companies and leveraging economies of scale [125]. - The company has implemented a comprehensive plan to reach and maintain profitability through core business operations and strategic acquisitions [123]. - The company is focused on expanding its reseller partner network in key territories and new markets to increase penetration and reach [123]. Accounting Policies - The company prepares its financial statements in accordance with GAAP, requiring assumptions and estimates about future events that may materially affect reported amounts [156]. - Significant accounting policies include revenue recognition, intangible assets, stock-based compensation expense, and income taxes, which require complex judgments [157]. - The company regularly reviews its accounting policies and estimates to ensure fair presentation of financial statements [156].

Financial Data and Key Metrics Changes - Revenues for Q2 2024 were $38.5 million, an 18.1% decrease from $47.1 million in Q2 2023 [17] - Gross profit for the quarter was $14.5 million, down from $17.8 million year-over-year, with a gross profit margin of 37.7%, a decrease of 20 basis points compared to the prior year [18] - The company reported a net loss of $1.5 million or $0.18 per share for the quarter, compared to a net loss of approximately $800,000 or $0.12 per share in the prior year [18] - Adjusted EBITDA for Q2 2024 was $3.7 million, down from $5.4 million in Q2 2023 [19] Business Line Data and Key Metrics Changes - Flat panel displays accounted for approximately 71% of total revenues, while audio solutions comprised 12% [17] - The company has introduced new products such as UNITY and TimeSign, which are expected to drive demand in the future [10][11] Market Data and Key Metrics Changes - EMEA revenues made up approximately 44% of total revenues, while Americas revenues totaled about 55% [17] - The company noted that demand remains soft in some of its largest markets, particularly in the U.S. for interactive flat panel displays [6][22] Company Strategy and Development Direction - The company is focused on adjusting its cost structure to align with current market realities and aims for ongoing consistent profitability [5][6] - Boxlight is responding to market needs with updated products and services, particularly in areas like emergency preparedness and STEM education [7][10] - The company is working on improving its capital structure and collaborating with banking partners to secure long-term alternatives to its current credit facility [13] Management's Comments on Operating Environment and Future Outlook - Management indicated that market conditions are challenging and are expected to remain so until a broader growth cycle returns [6][20] - The company is optimistic about its long-term outlook and believes it is well-positioned to gain market share as conditions improve [6][13] Other Important Information - The company eliminated approximately $5 million in fixed costs in Q1 2024, contributing to a 15.8% decrease in operating expenses quarter-over-quarter [16] - At June 30, 2024, Boxlight had $7.5 million in cash and $46.7 million in working capital [20] Q&A Session Summary Question: What has changed in the last 3 months regarding market conditions? - Management noted that the U.S. market for interactive flat panel displays has remained soft longer than anticipated, with some markets showing improvement while others remain uncertain [22][23] Question: What factors contributed to the strong gross margin in Q2? - The strong margin was attributed to a positive mix shift with increasing audio sales, which carry a higher margin, offsetting some competitive pricing pressures [24][27] Question: Are there further opportunities for cost reductions? - Management indicated that they have made significant progress in aligning operating expenses with revenue and are committed to further reductions as needed [31] Question: What is the tone of discussions with customers? - Management observed a disparity in customer sentiment, with solution providers feeling optimistic about demand recovery, while volume producers expressed concern over market conditions [33] Question: Will there be a sequential uptick in Q3 revenues? - Management expressed uncertainty about Q3 performance, noting that historical trends have not been reliable indicators this year [36]

Group 1 - Boxlight Corporation reported a quarterly loss of $0.18 per share, which was better than the Zacks Consensus Estimate of a loss of $0.37, representing an earnings surprise of 51.35% [1] - The company posted revenues of $38.51 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 13.47%, and down from $47.05 million a year ago [2] - Boxlight shares have declined approximately 50.9% since the beginning of the year, contrasting with the S&P 500's gain of 9.9% [3] Group 2 - The earnings outlook for Boxlight is mixed, with the current consensus EPS estimate for the coming quarter at $0.06 on revenues of $54.03 million, and for the current fiscal year at -$1.35 on revenues of $178.56 million [7] - The Zacks Industry Rank indicates that the Technology Services sector is currently in the top 40% of over 250 Zacks industries, suggesting a favorable environment for stocks in this sector [8] Group 3 - Boxlight has surpassed consensus EPS estimates three times over the last four quarters, while it has topped consensus revenue estimates two times in the same period [2] - The estimate revisions trend for Boxlight is currently mixed, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6]