ORLANDO, Fla., Oct. 1, 2024 /PRNewswire/ -- LightPath Technologies, Inc. (NASDAQ: LPTH) ("LightPath," the "Company," or "we"), a leading global, vertically integrated provider of thermal imaging cores, custom optical assemblies, photonics and infrared solutions for the industrial, commercial, defense, telecommunications, and medical industries, today announced the appointment of experienced operations professional Steven Garcia as General Manager of the Company's production facility in Orlando, Florida. Mr. ...

Low Rate Initial Production Order Follows Qualification for Assemblies Made with BlackDiamond™ Glass Optics ORLANDO, Fla., Sept. 26, 2024 /PRNewswire/ -- LightPath Technologies, Inc. (NASDAQ: LPTH) ("LightPath," the "Company," or "we"), a leading global, vertically integrated provider of thermal imaging cores, custom optical assemblies, photonics and infrared solutions for the industrial, commercial, defense, telecommunications, and medical industries, today announced receipt of a $0.5 million low rate init ...

Proprietary Germanium-Free Advanced Infrared Optics to Supply Critical F-35 Combat Aircraft Program ORLANDO, Fla., Sept. 24, 2024 /PRNewswire/ -- LightPath Technologies, Inc. (NASDAQ: LPTH) ("LightPath," the "Company," or "we"), a leading global, vertically integrated provider of thermal imaging cores, custom optical assemblies, photonics and infrared solutions for the industrial, commercial, defense, telecommunications, and medical industries, today announced a $3.5 million follow-on order to provide advan ...

Financial Performance - The company reported net losses of $8.0 million, $4.0 million, $3.5 million, and $3.2 million for fiscal years 2024, 2023, 2022, and 2021, respectively, with an accumulated deficit of approximately $215.8 million as of June 30, 2024[108]. - In fiscal year 2024, 39% of net revenue was derived from international sales, down from 50% in fiscal year 2023, with 94% of foreign sales coming from Europe and Asia[111]. - Sales to three key customers accounted for approximately 25% of annual revenue in fiscal year 2024, with one customer contributing 12%, another 7%, and the third 6%[122]. - The company has approximately $4.2 million in outstanding indebtedness as of August 2024 and will likely need additional financing to sustain operations and fund strategic plans[124]. - In fiscal years 2024 and 2023, the company recognized net gains of approximately $73,000 and losses of $37,000 on foreign currency transactions, respectively[120]. Market and Competition - The company faces substantial competition from larger public and private companies with greater resources, which could adversely affect its market position and financial condition[136]. - The company faces risks from international tariffs and trade policies that could adversely affect sales and operations, particularly in relation to China[116]. - The company must expand its sales and marketing organization to increase market awareness and sales, as its current organization is somewhat limited[134]. Product and Pricing Strategy - The company reorganized its products into four groups: infrared components (44% of net revenues), visible components (33%), assemblies and modules (14%), and engineering services (6%) in fiscal year 2024[138]. - The company anticipates further reductions in average selling prices of some products, necessitating increased sales volumes or higher margin products to maintain profitability[137]. - The company has experienced decreases in average selling prices over the last ten years, particularly in passive component products, and must offset these decreases to maintain revenue[137]. Supply Chain and Operational Risks - The company is susceptible to supply shortages and price fluctuations due to reliance on single or limited source suppliers for key materials[115]. - The company may incur additional costs or face operational disruptions if it fails to accurately forecast material requirements[139]. - The company’s manufacturing facilities are vulnerable to interruptions from various events, and it lacks backup facilities or sufficient business interruption insurance[146][148]. Intellectual Property and Cybersecurity - The company does not currently maintain product liability insurance, which could expose it to significant financial risks in the event of claims[145]. - The company does not have patent protection for its formulas and processes, which could negatively impact its business if ownership is lost[153]. - The company relies on trade secrecy laws and employee confidentiality agreements to protect its intellectual property, but there is no assurance against potential breaches[154]. - Cyber incidents pose a risk to the company, potentially leading to unauthorized access and disruption of operations, despite having technology security initiatives in place[155]. - The company has insurance coverage for cyber liability, but there are no guarantees that the coverage will be adequate for specific claims[154]. - The company has not experienced a material cyber incident, but the potential consequences could adversely affect its results of operations[155]. Human Resources - The company’s future success depends on attracting and retaining qualified personnel, facing significant competition for skilled employees in its industry[144]. Future Outlook - The company expects revenue growth through promotion of infrared products and continued cost reduction efforts, but future profitability remains uncertain[108]. - The company relies on key business relationships for product commercialization, and failure to maintain these relationships could limit revenue generation[133]. Regulatory and Reporting - As a Smaller Reporting Company, the company is electing scaled disclosure reporting obligations and is not required to provide certain market risk information[269].

Revenue Performance - Revenue for the fourth quarter of fiscal 2024 was approximately $8.6 million, a decrease of approximately $1.1 million, or 11%, compared to $9.7 million in the same quarter of the prior fiscal year[7]. - Full fiscal year 2024 revenue was approximately $31.7 million, a decrease of approximately $1.2 million, or 4%, compared to $32.9 million in the prior fiscal year[13]. - Revenue for the three months ended June 30, 2024, was $8.63 million, down from $9.68 million for the same period in 2023, representing a decline of 10.8%[37]. - Revenue from engineering services was approximately $2.0 million for fiscal 2024, an increase of $1.5 million compared to the prior fiscal year, driven by a contract with Lockheed Martin[21]. Net Loss and Financial Performance - Net loss for the fourth quarter of fiscal 2024 was approximately $2.4 million, compared to a net loss of $0.8 million for the same quarter of the prior fiscal year[11]. - The net loss for the year ended June 30, 2024, was $8.01 million, compared to a net loss of $4.05 million for the year ended June 30, 2023, indicating an increase in losses of 97.5%[37]. - The net loss for the year ended June 30, 2024, was $8,007,346, compared to a net loss of $4,046,871 for the year ended June 30, 2023, representing an increase in losses of approximately 97%[42]. - EBITDA for the fourth quarter of fiscal 2024 was a loss of approximately $1.3 million, compared to income of $0.1 million for the same period of the prior fiscal year[12]. - The EBITDA for the year ended June 30, 2024, was $(3,699,585), representing a decline compared to $(355,002) for the year ended June 30, 2023, indicating a worsening operational performance[46]. Margins and Costs - Gross margin for fiscal 2024 was approximately $8.6 million, a decrease of 22% compared to approximately $11.1 million in fiscal year 2023[16]. - The gross margin for the year ended June 30, 2024, was $8.63 million, down from $11.07 million in 2023, reflecting a decrease of 22%[37]. - SG&A costs for fiscal 2024 were approximately $12.3 million, an increase of approximately $0.9 million, or 8%, compared to the prior fiscal year[17]. Backlog and Contracts - Total backlog at June 30, 2024, was $19.3 million[8]. - As of June 30, 2024, the total backlog was approximately $19.3 million, a decrease of 11% from $21.7 million as of June 30, 2023[23]. - A significant contract renewal represented a 40% increase in dollar value compared to the previous order for advanced infrared optics[23]. - The company achieved key qualification milestones with Lockheed Martin for a US Army missile program[8]. Assets and Liabilities - Total current assets decreased to $15.54 million as of June 30, 2024, from $21.76 million as of June 30, 2023[35]. - Total liabilities increased slightly to $17.89 million as of June 30, 2024, compared to $17.58 million as of June 30, 2023[35]. Cash Flow and Equity - Cash flows from operating activities provided $521,037 in the year ended June 30, 2024, a significant improvement compared to cash used in operating activities of $(2,809,523) in the previous year[42]. - The company issued common stock under public equity placement, raising $806,332 in the year ended June 30, 2024, compared to $9,199,510 in the previous year, indicating a decrease of approximately 91%[42]. - The total stockholders' equity increased to $35,952,525 as of June 30, 2023, from $29,731,238 as of June 30, 2022, reflecting an increase of approximately 21%[39]. Acquisitions and Investments - LightPath's subsidiary, Visimid Technologies, was acquired in July 2023, focusing on customized infrared cameras for industrial and defense applications[29]. - The company acquired Visimid Technologies, resulting in a cash outflow of $847,141, which is part of its strategy for market expansion[42]. Depreciation and Currency Adjustments - The company reported depreciation and amortization expenses of $4,048,409 for the year ended June 30, 2024, compared to $3,174,569 for the year ended June 30, 2023, an increase of approximately 27.5%[42]. - The company experienced a foreign currency translation adjustment of $1,019,023 in the year ended June 30, 2024, which positively impacted the total stockholders' equity[42]. Stock-Based Compensation - The company reported a stock-based compensation expense of $1,019,023 for the year ended June 30, 2024, compared to $1,310,957 for the previous year, indicating a decrease of approximately 22%[42].

Core Insights - LightPath Technologies reported financial results for fiscal year 2024, highlighting a strategic transition towards custom thermal imaging solutions and a focus on defense, automotive, and camera solutions [3][11]. Fiscal 2024 Full Year & Fourth Quarter Highlights - Fourth quarter revenue was $8.6 million, a decrease of 11% from $9.7 million in the same quarter of the previous year; full year revenue was $31.7 million, down 4% from $32.9 million [2][6]. - Customized lens assemblies and related engineering services contributed 28% and 20% of revenue for the fourth quarter and full year, respectively [2]. - The total backlog as of June 30, 2024, was $19.3 million, down 11% from $21.7 million a year earlier [2][8]. - The net loss for the fourth quarter was $2.4 million, compared to a loss of $0.8 million in the same quarter of the prior year; the full year net loss was $8.0 million, up from $4.0 million [5][6]. - EBITDA loss for the fourth quarter was $1.3 million, compared to a gain of $0.1 million in the same period last year; full year EBITDA loss was $3.7 million [5][6]. Management Commentary - The CEO emphasized the company's strategic shift from a component provider to a custom thermal imaging solutions provider, with significant advancements in thermal imaging camera technology [3]. - The collaboration with Lockheed Martin on a missile program is expected to be transformative for the company, with successful qualification milestones achieved [3]. - The transition away from Germanium optics to proprietary BlackDiamond materials is seen as a strategic move to mitigate supply chain risks and enhance customer partnerships [3]. Product Revenue Breakdown - Revenue from infrared components was $3.0 million in the fourth quarter, down 36% from $4.8 million; visible components revenue remained stable at $3.2 million [4]. - Engineering services revenue surged to $1.0 million, a 698% increase compared to the previous year, driven by contracts with Lockheed Martin [4][6]. - For the full year, infrared components revenue was $14.1 million, a 2% decrease, while visible components revenue fell 16% to $11.2 million [6]. Cost and Margin Analysis - Gross margin for the fourth quarter was approximately $2.5 million, a decrease of 18% year-over-year, with a gross margin percentage of 29% compared to 32% [4][6]. - Selling, general and administrative costs increased by 20% to approximately $3.6 million in the fourth quarter, primarily due to higher wages and legal fees [4][6]. Liquidity and Capital Resources - Cash provided by operations was approximately $0.5 million for fiscal 2024, a significant improvement from cash used in operations of $2.8 million in the prior year [7]. - Capital expenditures were approximately $2.2 million, down from $3.1 million in the previous fiscal year, with a notable acquisition of Visimid Technologies for approximately $0.8 million [7]. Backlog and Future Contracts - The decrease in backlog is attributed to shipments against prior period contracts, but significant contract renewals are anticipated in the near future [8]. - A major contract renewal for advanced infrared optics for a military program represented a 40% increase in dollar value compared to the previous order [8].

Core Insights - Maris-Tech has collaborated with LightPath to integrate critical firmware and hardware that supports AI algorithms in LightPath's infrared cameras, marking a significant advancement in the technology [7] - The new AI-enabled feature, named EdgeIR™, will be available as an option on all of LightPath's cameras, allowing for enhanced functionality [2][3] Company Overview - Maris-Tech is a B2B provider specializing in edge computing AI-accelerated video solutions, founded by veterans from the Israel technology sector with extensive experience in electrical engineering and imaging [4] - The company aims to meet the increasing demands of commercial and tactical applications by delivering high-performance, compact, low power, and low latency solutions to various industries, including defense and homeland security [4] Technology Integration - The EdgeIR™ cameras will incorporate Maris-Tech's technology along with an embedded Hailo-8 AI accelerator, enabling customers to upload and run their preferred trained AI models directly at the camera level [3] - This integration facilitates real-time, low-latency streaming and high-efficiency AI inferencing on the camera's video stream, addressing bandwidth and security issues associated with cloud and server frameworks [8] Market Demand - There is a growing demand from the defense and industrial markets for integrated optical systems with trained AI models, highlighting the need for embedded AI hardware and software to simplify deployment and minimize hardware customization [8]

Core Insights - Maris-Tech has collaborated with LightPath to integrate critical firmware and hardware that supports AI algorithms in LightPath's infrared cameras, marking a significant advancement in their technology [7] - The new AI-enabled feature, named EdgeIR™, will be available as an option on all of LightPath's cameras, allowing for enhanced functionality [2][3] Company Overview - Maris-Tech is a B2B provider specializing in edge computing AI-accelerated video solutions, founded by veterans from the Israel technology sector with extensive experience in electrical engineering and imaging [4] - The company aims to meet the increasing demands of commercial and tactical applications by delivering high-performance, compact, low power, and low latency solutions to various industries, including defense and homeland security [4] Technology Integration - The EdgeIR™ cameras will incorporate Maris-Tech's technology along with an embedded Hailo-8 AI accelerator, enabling customers to upload and run their preferred trained AI models directly at the camera level [3] - This integration facilitates real-time, low-latency streaming and high-efficiency AI inferencing on the camera's video stream, addressing bandwidth and security issues associated with cloud and server frameworks [8]

Financial Data and Key Metrics - Revenue for the fiscal third quarter was $7.7 million, compared to $7.4 million in the year-ago period [52] - Sales of infrared components were $3.6 million, or 47% of the company's revenue in the fiscal third quarter [52] - Visible component sales decreased approximately $0.4 million, or 13%, primarily due to a decrease in sales to customers in the defense and medical industries, and sales to customers in the telecom industry in China [53] - Gross margin in the third quarter of fiscal 2024 was approximately $1.6 million, a decrease of $0.9 million, or 37%, as compared to the same quarter of the prior fiscal year [54] - EBITDA for the quarter ended March 31, 2024 was a loss of approximately $1.5 million, compared to $242,000 for the same quarter of the prior fiscal year [55] Business Line Data and Key Metrics - Revenue from visible components was $2.7 million, or 35% of revenue [43] - Revenue from assemblies and modules was $0.8 million, or 10% of total company revenue [43] - Revenue from engineering services was $0.6 million, or 8% of total company revenue [43] - Infrared component sales increased approximately $0.5 million, or 16%, primarily due to an increase in shipment against an annual contract for an international military program [44] - Engineering services increased approximately $0.4 million or 211%, primarily driven by Visimid's contract with Lockheed Martin [46] Market Data and Key Metrics - The company has been working with customers to convert their systems to use BlackDiamond materials instead of Germanium, which has lower supply chain risk and better margins [38] - The company has received a European Defense Manufacturing License, allowing participation in European defense projects that are required to be designed and produced within the EU [148] - The EU defense market grew at 12.5% to a record of $295 billion last year, and the European Union published its first-ever European defense industrial strategy, encouraging cooperation and purchases in defense technology among EU members [143] Company Strategy and Industry Competition - The company is transitioning from a component manufacturer to a provider of engineered solutions based on proprietary technologies, with a focus on three pillars of growth: Imaging Solutions, new markets such as automotive, and the defense business [24] - The company has developed unique materials like BDNL-4, which offer alternatives to Germanium and improved performance in many applications [37] - The company is collaborating with Ursinus College and University of Central Florida to develop a recycling process for BlackDiamond glass, which is expected to drive down long-term costs of adopting thermal imaging in mass market applications such as automotive [39] Management Commentary on Operating Environment and Future Outlook - The company is on a recovery trajectory and on track to return to profitability during the next fiscal year [116] - The company expects to see some of the fruit of its efforts start to come to fruition and deliver results in the coming quarters [17] - The company is making good progress and is at a turning point, with the next few quarters being critical [17] Other Important Information - The company has a backlog of approximately $22 million as of March 31, 2024, a decrease of 17% compared to $26.6 million as of March 31, 2023 [72] - The company has working capital of approximately $7.8 million and total cash and cash equivalents of approximately $3.0 million as of March 31, 2024 [71] - The company has begun the realignment process to shift resources towards LightPath 2.0 and 3.0, with the goal of reducing overhead and manufacturing costs and increasing expenses for product development and marketing [75] Q&A Session Summary Question: Details on the defense program for the new BDNL material - The program involves 150,000 lenses for an existing program of record, with prototypes expected in a year, followed by low-rate production and full rollout over a five to eight-year period [78][79] Question: Update on automotive customers and the impact of the DOT mandate - Communication with automotive customers has picked up, and some companies may start rolling out systems earlier than the mandated timeframe to gather data and fine-tune the systems [80][81][82] Question: Gross margin outlook and impact of inventory write-down - Gross margin would have been around 30% without the inventory write-down, and margins are expected to be in the low 30s for the next couple of quarters, with an increase expected as the company shifts towards LightPath 2.0 and 3.0 [103] Question: Impact of the European Defense Manufacturing License - The license is expected to have a quick impact, with at least two large defense companies in Europe already working with the company in anticipation of receiving the license [109] Question: Update on the Lockheed Martin missile program and space communications - The company has delivered on the first milestone in the Lockheed Martin missile program and is working on additional programs within Lockheed [112][113] - The company's prime customer in space communications has increased their order, and the company is involved in a small development project related to quantum encryption of optical communication [132]

[Press Release Summary](index=1&type=section&id=Press%20Release%20Summary) [Fiscal 2024 Third Quarter & Subsequent Highlights](index=1&type=section&id=Fiscal%202024%20Third%20Quarter%20%26%20Subsequent%20Highlights) LightPath Technologies reported third-quarter fiscal 2024 revenue of $7.6 million, with a net loss of $2.6 million, highlighting progress on a Lockheed Martin development order, a European Defense license, and the commercial launch of its new BDNL-4 infrared glass, with total backlog at $22.0 million Q3 FY2024 Key Metrics | Metric | Value | | :--- | :--- | | Revenue | $7.6 million | | Net Loss | $2.6 million | | EBITDA Loss | $1.5 million | | Total Backlog (as of Mar 31, 2024) | $22.0 million | - **18% of Q3 revenue** was attributed to LightPath 2.0 products, which are customized lens assemblies, solutions, and related engineering services[5](index=5&type=chunk) - Key strategic achievements include delivering the first milestone for a Lockheed Martin order, receiving a European Defense license, launching the new BlackDiamond-NRL infrared glass (BDNL-4), and securing a design win for BDNL materials in a new airborne DoD program[5](index=5&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) Management emphasized the company's strategic shift from a component manufacturer (LightPath 1.0) to a value-added solutions provider (LightPath 2.0), which now constitutes 18% of revenue, supported by progress on a $4.7 million initial order with Lockheed Martin, obtaining a European Defense license, expanding production capabilities in Latvia, and commercially launching its new BDNL-4 infrared glass for a major DoD program - The company is strategically shifting to "LightPath 2.0", focusing on customized lens assemblies and solutions, which accounted for **18% of revenue in Q3**[4](index=4&type=chunk) - Delivered the first milestone of a **$4.7 million initial order** with Lockheed Martin for an advanced electro-optical thermal system, with a successful program potentially leading to substantial production revenue opportunity[4](index=4&type=chunk) - Obtained a European Defense license, enabling direct supply to the EU defense market, which grew **12.5% to $295 billion in 2023**, with expanded capacity in its Latvia facility to support this[4](index=4&type=chunk)[6](index=6&type=chunk) - Commercially launched the new BlackDiamond-NRL infrared glass, BDNL-4, as a Germanium substitute, already designed into a new airborne DoD system expected to require over **150,000 lenses**[6](index=6&type=chunk) [Financial Results](index=2&type=section&id=Financial%20Results) [2024 Fiscal Third Quarter Financial Results](index=2&type=section&id=2024%20Fiscal%20Third%20Quarter%20Financial%20Results) For the third quarter of fiscal 2024, revenue increased 4% year-over-year to $7.7 million, driven by a 16% rise in IR components and a 211% surge in engineering services, which offset declines in visible components and assemblies, though gross margin fell to 21% from 34% due to product mix shift and an inventory write-down, leading to a widened net loss of $2.6 million and an EBITDA loss of $1.5 million Q3 FY2024 vs Q3 FY2023 Financial Summary | Metric | Q3 FY2024 | Q3 FY2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | $7.7M | $7.4M | +4% | | Gross Margin | $1.6M (21%) | $2.5M (34%) | -37% | | SG&A Costs | $3.2M | $2.8M | +15% | | Net Loss | $(2.6)M | $(1.2)M | +117% | | EPS (basic & diluted) | $(0.07) | $(0.03) | +133% | | EBITDA | $(1.5)M | $0.2M | - | Q3 FY2024 Revenue by Product Group (YoY) | Product Group | Q3 FY2024 Revenue | % Change YoY | | :--- | :--- | :--- | | Infrared ("IR") components | $3.6M | +16% | | Visible components | $2.7M | -13% | | Assemblies & modules | $0.8M | -16% | | Engineering services | $0.6M | +211% | - The decrease in gross margin percentage was primarily due to a shift in product mix towards lower-margin IR components and a significant inventory revaluation write-down from cost reduction efforts[8](index=8&type=chunk) - The increase in SG&A costs was mainly driven by higher wages, including additions from the Visimid acquisition, and increased legal fees[9](index=9&type=chunk) [2024 Fiscal Year-To-Date Financial Results](index=3&type=section&id=2024%20Fiscal%20Year-To-Date%20Financial%20Results) For the first nine months of fiscal 2024, revenue slightly decreased by 1% to $23.1 million, with a 15% increase in IR components and a 213% rise in engineering services offset by a 21% decline in visible components, while gross margin contracted to 26% from 34%, leading to an increased net loss of $5.7 million and an EBITDA loss of $2.4 million Nine Months FY2024 vs FY2023 Financial Summary | Metric | Nine Months FY2024 | Nine Months FY2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | $23.1M | $23.2M | -1% | | Gross Margin | $6.1M (26%) | $8.0M (34%) | -24% | | SG&A Costs | $8.7M | $8.4M | +3% | | Net Loss | $(5.7)M | $(3.2)M | +78% | | EPS (basic & diluted) | $(0.15) | $(0.11) | +36% | | EBITDA | $(2.4)M | $0.4M | - | Nine Months FY2024 Revenue by Product Group (YoY) | Product Group | Nine Months FY2024 Revenue | % Change YoY | | :--- | :--- | :--- | | Infrared ("IR") components | $11.0M | +15% | | Visible components | $8.1M | -21% | | Assemblies & modules | $3.1M | 0% | | Engineering services | $0.9M | +213% | - The decrease in gross margin was primarily due to a higher proportion of sales from lower-margin infrared products and the inventory revaluation in Q3[15](index=15&type=chunk) - Other income for the period included a **$190,000 gain** from the recovery of funds previously misappropriated by the company's former Chinese management team[17](index=17&type=chunk) [Financial Condition and Other Information](index=4&type=section&id=Financial%20Condition%20and%20Other%20Information) [Liquidity and Capital Resources](index=4&type=section&id=Liquidity%20and%20Capital%20Resources) For the first nine months of fiscal 2024, cash provided by operations was $456,000, a significant improvement from the $920,000 used in operations in the prior-year period, mainly due to a decrease in accounts receivable, with capital expenditures of $1.9 million primarily for the Orlando facility expansion and $847,000 spent on the acquisition of Visimid Cash Flow and Capital Expenditure Summary (Nine Months FY2024) | Metric | Nine Months FY2024 | Nine Months FY2023 | | :--- | :--- | :--- | | Cash from Operations | $456,000 | $(920,000) | | Capital Expenditures | $1.9 million | $2.3 million | | Visimid Acquisition (net) | $847,000 | N/A | - The positive shift in operating cash flow was largely driven by a decrease in accounts receivable[21](index=21&type=chunk) - Capital expenditures were mainly for the Orlando Facility expansion, with **$1.3 million spent** in the first nine months of fiscal 2024 out of a total project cost of **$3.7 million**[22](index=22&type=chunk) [Sales Backlog](index=4&type=section&id=Sales%20Backlog) As of March 31, 2024, the total sales backlog was $22.0 million, a 17% decrease from $26.6 million a year prior, but a 1% increase since the end of fiscal 2023, with the year-over-year decrease attributed to shipments against multi-year contracts and a strategic decision to reduce production of Germanium-based optics, which delayed a typical large renewal order as the company actively works with customers to transition them to its proprietary BlackDiamond materials Backlog Comparison | Date | Backlog Amount | YoY Change | | :--- | :--- | :--- | | March 31, 2024 | $22.0 million | -17% | | March 31, 2023 | $26.6 million | N/A | - The backlog increased by **1%** during the first nine months of fiscal 2024 compared to the end of fiscal 2023[23](index=23&type=chunk) - The YoY decrease is partly due to a strategic shift away from Germanium optics, resulting in the non-renewal of a typical large annual order as the company works to convert customers to its BlackDiamond materials[23](index=23&type=chunk) [Appendix: Financial Statements](index=6&type=section&id=Appendix%3A%20Financial%20Statements) [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2024, total assets were $49.7 million, down from $53.5 million at June 30, 2023, primarily due to a decrease in cash and restricted cash, while total liabilities increased slightly to $18.0 million from $17.6 million, and total stockholders' equity decreased to $31.7 million from $36.0 million, reflecting the net loss for the period Balance Sheet Summary (unaudited) | Account | March 31, 2024 | June 30, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $3.0M | $4.7M | | Total current assets | $15.5M | $21.8M | | Total assets | $49.7M | $53.5M | | Total current liabilities | $7.7M | $6.8M | | Total liabilities | $18.0M | $17.6M | | Total stockholders' equity | $31.7M | $36.0M | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) The company reported a net loss of $2.6 million for the three months ended March 31, 2024, and a net loss of $5.7 million for the nine-month period, representing a significant increase in losses compared to the $1.2 million and $3.2 million losses in the respective prior-year periods Income Statement Summary (unaudited) | Metric | Three Months Ended Mar 31, 2024 | Three Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | Revenue, net | $7,699,175 | $7,409,648 | | Gross margin | $1,606,187 | $2,535,404 | | Operating loss | $(2,583,196) | $(960,214) | | Net loss | $(2,597,534) | $(1,163,270) | Income Statement Summary (unaudited) | Metric | Nine Months Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2023 | | :--- | :--- | :--- | | Revenue, net | $23,092,060 | $23,249,228 | | Gross margin | $6,106,214 | $7,993,661 | | Operating loss | $(5,617,147) | $(2,752,111) | | Net loss | $(5,653,573) | $(3,238,031) | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Stockholders' equity decreased from $36.0 million at June 30, 2023, to $31.7 million at March 31, 2024, primarily driven by a cumulative net loss of $5.7 million over the nine-month period, partially offset by stock-based compensation and common stock issuances - Total stockholders' equity decreased from **$35,952,525** at June 30, 2023 to **$31,708,558** at March 31, 2024[40](index=40&type=chunk) - The primary driver of the decrease in equity was the net loss of **$5,653,573** for the nine-month period[38](index=38&type=chunk)[40](index=40&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended March 31, 2024, the company generated $456,343 in cash from operating activities, a reversal from the $920,586 used in the prior year, with cash used in investing activities at $2.4 million mainly for property/equipment purchases and the Visimid acquisition, and cash used in financing activities at $2.1 million primarily for loan repayments, resulting in an overall decrease of $4.0 million in cash, cash equivalents, and restricted cash during the period Cash Flow Summary (Nine Months Ended March 31) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash from operating activities | $456,343 | $(920,586) | | Net cash used in investing activities | $(2,375,091) | $(2,259,655) | | Net cash (used in) provided by financing activities | $(2,069,670) | $7,532,646 | | **Change in cash, cash equivalents and restricted cash** | **$(3,985,538)** | **$4,395,006** | [Reconciliation of Non-GAAP Financial Measures](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) The company provided a reconciliation of net loss to EBITDA, a non-GAAP measure, reporting an EBITDA loss of $1.5 million for the third quarter of fiscal 2024 and $2.4 million for the nine-month period, compared to EBITDA losses of $242,226 and $427,360 in the respective prior-year periods Reconciliation of Net Loss to EBITDA (unaudited) | Metric | Three Months Ended Mar 31, 2024 | Nine Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | Net loss | $(2,597,534) | $(5,653,573) | | Depreciation and amortization | $1,042,850 | $2,985,850 | | Income tax provision | $5,798 | $121,402 | | Interest expense | $37,649 | $149,048 | | **EBITDA** | **$(1,511,237)** | **$(2,397,273)** |