Revenue and Profitability - Q1'26 revenue increased by 6.2% to $5.6M compared to $5.3M in Q1'25, primarily driven by the delivery of a custom cinema project[4] - Q1'26 gross profit rose by 22.0% to $1.7M from $1.4M in Q1'25, reflecting a focus on higher margin opportunities[4] - Q1'26 gross margin percentage improved to 30.0% from 26.1% in Q1'25, driven by model mix and the timing of a custom cinema project[4] - Operating income for Q1'26 was $350k, a significant improvement from a loss of $68k in the same quarter last year, due to gross profit improvement and an 8% decrease in operating expenses[4] - Net income for Q1'26 was $509k, or $0.05 per share, compared to a net loss of $25k, or $0.00 per share, in Q1'25[4] Working Capital and Acquisitions - Working capital increased by 12.4% to $4.8M at the end of Q1'26, including cash of $5.5M, approximately $0.54 per common share[4] - The company acquired the DCS cinema loudspeaker line for $1.5M in cash, enhancing its product offerings and competitive position[4] - The DCS loudspeaker line is expected to strengthen the company's market presence, particularly in Europe and the Middle East[5] Future Projections and Strategic Focus - Q2'26 revenue is projected to be approximately $3.4M, reflecting seasonality and the pull-through of some revenue into Q1'26[8] - The company remains focused on margin and cost mitigation initiatives to improve performance in varying market conditions[8]

Financial Performance - Net sales increased by 6.3% to $5.582 million for the three months ended September 30, 2025, compared to $5.252 million for the same period in 2024 due to higher one-time sales[108] - Gross profit increased by $0.302 million or 22.0% to $1.674 million for the three months ended September 30, 2025, with gross profit percentage rising to 30.0% from 26.1% due to higher margin product revenues[110] - Net income for the three months ended September 30, 2025, was $0.509 million, a significant improvement compared to a net loss of $0.025 million for the same period in 2024[117] - Net income for the three months ended September 30, 2025, was $0.509 million, an improvement of $0.534 million compared to a net loss of $(0.025) million for the same period in 2024[118] Expenses Management - Research and development expenses decreased by $0.013 million or 21.3% to $0.048 million for the three months ended September 30, 2025, attributed to headcount reduction[112] - Selling, general and administrative expenses decreased by $0.103 million or 7.5% to $1.276 million for the three months ended September 30, 2025, due to lower compensation, rent, and travel costs[114] Cash Flow and Liquidity - The cash balance at September 30, 2025, was approximately $5.548 million, a decrease from $5.715 million at June 30, 2025[119] - Net cash used in operating activities for the three months ended September 30, 2025, was $(0.167) million, an increase of $0.135 million compared to the same period in 2024[120] - Working capital decreases contributed $(0.804) million to net cash used in operating activities for the three months ended September 30, 2025[120] - Net cash used by operating activities for the three months ended September 30, 2024, was $(0.032) million, primarily due to $(0.180) million in working capital decreases[121] - Net cash from investing activities was zero for both the three months ended September 30, 2025, and September 30, 2024[122] - Net cash from financing activities was zero for both the three months ended September 30, 2025, and September 30, 2024[123] - The company has met its working capital needs primarily from operating cash flows and financing activities over the past several years[119] - The company believes existing sources of liquidity will be sufficient to fund operations for at least 12 months from the date of the financial statements[119] Strategic Initiatives - The company plans to invest in sales and support operations to support new product initiatives and budget goals, while expecting continued decreases in total operating expenses[97] - The company aims to expand its customer base by selectively investing in its field sales force and targeting large organizations that have yet to use its products and services[98] - The company intends to increase marketing expenditures to enhance brand recognition for its proprietary products and introduce new products and services[99] - The company is focused on maintaining gross margins despite competition and price erosion, with new products expected to carry higher margins[100] Other Income - Other income increased by $0.116 million to $0.159 million for the three months ended September 30, 2025, primarily due to a one-time payables extinguishment[116] Accounting Estimates - There have been no material changes to critical accounting estimates during the three months ended September 30, 2025[124]

Financial Data and Key Metrics Changes - Q1 2026 revenue increased by 6.2% to $5.6 million, driven by the delivery of a custom cinema project and other client work [17] - Gross profit rose by 22% to $1.7 million, with an improved gross margin of 30% compared to 26.1% in Q1 2025 [17] - Operating expenses decreased by 8% to $1.32 million in Q1 2026, down from $1.44 million in Q1 2025 [17] - Operating income improved to $350,000 from an operating loss of $68,000 in the same period last year [18] - Net income for Q1 2026 was $509,000 or $0.05 per share, compared to a net loss of $25,000 in Q1 2025 [18] - Working capital rose by 12% to $4.8 million at the close of Q1 2026 [19] Business Line Data and Key Metrics Changes - The company achieved profitability in Q1 2026 due to higher revenue and lower operating expenses, reflecting solid operational execution [4][7] - The acquisition of the DCS Cinema loudspeaker line is expected to enhance the company's product offerings and market position [10][12] Market Data and Key Metrics Changes - Domestic box office receipts for Q3 were approximately $2.4 billion, nearly matching the previous year, indicating a stable exhibition industry [5] - The company anticipates Q2 2026 revenue of approximately $3.4 million, reflecting the impact of the holiday season on capital spending [20] Company Strategy and Development Direction - The company aims to build on its value proposition with new products and capabilities, particularly through the acquisition of DCS Cinema [5][12] - Focus on improving operational and financial performance while expanding capabilities to support customer needs in cinema technology [6][14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the exhibition industry outlook, citing improved domestic box office trends and a stronger release calendar [14] - The company believes that the aging of legacy cinema systems will provide increasing opportunities for growth [14] Other Important Information - The acquisition of DCS Cinema was completed for $1.5 million in cash, expected to be accretive to the bottom line within two to three years [11][19] - The company has no long-term debt and maintains a solid cash position to support its operations and growth initiatives [19] Q&A Session Summary Question: Insights on DCS speaker line and revenue potential - The company intends to recoup the $1.5 million purchase cost of the DCS speaker line within two to three years [24] - The DCS line is well-respected and has significant potential that the previous owners may not have fully realized [25][26] Question: Compatibility with LEA power amplifiers - There are synergies between the DCS line and LEA power amplifiers, which could accelerate market acceptance [27] Question: Revenue opportunity for DCS speakers in theaters - Specific figures regarding revenue opportunities for outfitting theaters with DCS speakers were not available during the call [28] Question: International market approach and game plan - A clearer picture of the international market strategy will emerge after the onboarding process of the DCS business is completed [29]

Core Insights - Moving iMage Technologies reported Q1 revenue of $5.6 million, a 6.2% increase from $5.3 million in Q1'25, primarily driven by a custom cinema project [4] - The company achieved a gross profit of $1.7 million, reflecting a 22.0% increase compared to $1.4 million in the same quarter last year, with a gross margin percentage rising to 30.0% from 26.1% [4] - Net income improved to $509,000 or $0.05 per share, compared to a net loss of $25,000 or $0.00 per share in Q1'25, aided by a non-cash gain from debt extinguishment [4] Financial Performance - Q1'26 revenue increased to $5.6 million from $5.3 million in Q1'25, driven by custom cinema project deliveries [4] - Gross profit rose to $1.7 million, with gross margin percentage increasing to 30.0% due to a favorable model mix [4] - Operating income was reported at $350,000, a significant improvement from an operating loss of $68,000 in the previous year [4] - Working capital increased by 12.4% to $4.8 million, with cash at $5.5 million at the end of Q1'26 [4] Strategic Initiatives - The acquisition of the DCS cinema loudspeaker line for $1.5 million is expected to enhance the company's product offerings and competitive position [4][5] - The DCS line is anticipated to support sales opportunities in international markets, particularly in Europe and the Middle East [5] - The company is engaged in various upgrade and new build project discussions with U.S. exhibitors, indicating a steady level of industry interest [6] Project Highlights - Q1'26 included the delivery of a unique project for a 166-seat cinema at New York City's Cherry Lane Theatre and upgrades for Alamo Drafthouse locations in Texas [7] - The company is optimistic about increased capital spending on cinema upgrades due to expected solid box office attendance this winter [8]

Core Insights - Moving iMage Technologies, Inc. (MITQ) will report its Q1 fiscal 2026 results on November 14, 2025, before market opening and will host an investor call at 11:00 am ET [1] Group 1: Conference Call Details - The conference call is scheduled for November 14 at 11:00 am ET, with toll-free and international dial-in numbers provided for participants [2] - A transcript of the call will be available online 48 hours after the event, and questions can be submitted in advance via email [2] Group 2: Company Overview - Moving iMage Technologies focuses on delivering innovative out-of-home entertainment technology and services, catering to cinemas, Esports, stadiums, and other venues [1][3] - Founded in 2003, the company offers a range of products and services, including integrated systems design, custom engineering, and installation services [3] - The company manufactures various digital cinema peripherals in the U.S., including automation systems, projector pedestals, and Esports platforms, and also distributes equipment from major brands [4] Group 3: Product Offerings - MiT's Caddy Products division enhances guest experience by designing and selling cupholders, concession trays, and other venue accessories [5]

Core Insights - Moving iMage Technologies (MiT) has acquired the Digital Cinema Speaker Series (DCS) loudspeaker product line from QSC, enhancing its position in the global cinema market [1][2][3] - The DCS line is recognized for its high-quality audio performance and has a strong legacy in the cinema industry, making it a strategic addition to MiT's offerings [2][5][8] Company Overview - MiT is a provider of advanced out-of-home entertainment technology and services, focusing on cinemas, Esports, stadiums, and arenas [1][12] - The acquisition was funded through MiT's solid balance sheet, and the transaction closed on October 31, 2025 [3] Product Details - The DCS product line includes three series: SC Series (screen channel loudspeakers), SR Series (surround speakers), and SB Series (low-frequency effects speakers) [7][8] - The acquisition includes access to designs, trademarks, and other intellectual property necessary for manufacturing, as well as inventory management [3][4] Market Position - The DCS line has gained significant global market share since its introduction in 2004, becoming a standard in modern cinema sound [2][5] - MiT aims to leverage the DCS brand to expand its customer base and enhance its value proposition in North America and globally [8]

Core Insights - Moving iMage Technologies, Inc. (MITQ) reported a narrower net loss of 2 cents per share in Q4 fiscal 2025, compared to a loss of 4 cents per share in the same quarter last year, attributed to significant expense reductions [1] - The company experienced a revenue decline of 7.3% to $5.9 million from $6.4 million year-over-year, primarily due to reduced customer project activity [1] - For the full fiscal year 2025, revenues decreased by 9.9% to $18.2 million from $20.1 million, while the net loss narrowed to $1 million from $1.4 million, supported by a 9.4% reduction in operating expenses [3] Financial Performance - Operating expenses in Q4 fiscal 2025 decreased by 26.5% year-over-year to $1.4 million, driven by lower selling, marketing, and administrative costs [4] - Selling and marketing expenses fell by 34.3% to $0.5 million, while general and administrative costs decreased by 21.6% to $0.9 million [4] - The gross profit for Q4 was $1.2 million, down from $1.4 million last year, with gross margin narrowing to 20.4% from 22.5% [1] Business Metrics - The annual gross margin improved to 25.2% from 23.3%, indicating a focus on higher-margin projects, despite a quarterly decline due to variability in product mix [5] - The company ended fiscal 2025 with $5.7 million in cash, up from $5.3 million the previous year, and had no long-term debt, providing financial flexibility [5] - Working capital stood at $4.3 million [5] Management Insights - The CEO emphasized MITQ's role as a partner of choice in cinema projects, citing installations for notable clients and recognizing industry tailwinds from improving box office performance [6] - The President highlighted opportunities in laser projection and immersive audio, estimating thousands of auditoriums could be upgraded in the coming years [7] - The CFO noted that cost management initiatives contributed to bottom-line improvements and reiterated the goal of achieving consistent profitability [8] Market Dynamics - The year-over-year revenue decline was attributed to reduced project activity and the absence of seating revenues that benefited the prior year [9] - Management indicated that customer decisions regarding technology upgrades are influenced by broader economic conditions and box office performance [9] Future Guidance - For Q1 fiscal 2026, MITQ guided revenues to be approximately $4.9 million, with expectations weighted toward the second half of the year due to industry planning cycles [11] - Management expressed cautious optimism about a modest increase in cinema technology investments but acknowledged potential macroeconomic headwinds that could delay projects [11] Strategic Developments - During the quarter, MITQ secured a multi-year contract to install 150 Barco laser cinema projectors for a U.S. film exhibition customer, reinforcing its position in next-generation projection technologies [12] - Collaborations with Samsung and LG Electronics for Direct View LED installations were announced, expanding strategic opportunities beyond traditional projection systems [12]

```markdown [Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Moving iMage Technologies reported improved Q4'25 and FY'25 financial performance, driven by expense reductions and strategic contract wins in cinema technology upgrades [Introduction](index=1&type=section&id=Introduction) Moving iMage Technologies announced its financial results for the fourth quarter (Q4'25) and fiscal year ended June 30, 2025 (FY'25), reporting an improved Q4 net loss and an increase in year-end net cash - **Moving iMage Technologies, Inc. (NYSE American: MITQ)** is a leading provider of out-of-home entertainment technology and services for cinema, Esports, stadiums, arenas, and other venues[1](index=1&type=chunk) Key Financial Snapshot (in thousands) | Metric | Q4'25 | Q4'24 | | :---------------- | :---------- | :---------- | | Net Loss | ($156) | ($416) | | Metric | FY'25 End | FY'24 End | | :---------------- | :---------- | :---------- | | Net Cash | $5,700 | $5,300 | [Management Commentary & Operational Highlights](index=1&type=section&id=Management%20Commentary%20%26%20Operational%20Highlights) Management highlighted improved bottom-line performance driven by operating expense reductions and an improved FY'25 gross margin. The company secured a significant laser projector contract and emphasized ongoing opportunities in cinema technology upgrades, including laser projection and Direct View LED displays, alongside a stable base of recurring service revenue - The company improved its **Q4'25 and FY'25 bottom-line performance**, as progress in reducing operating expenses more than offset higher revenues in the year-ago periods[4](index=4&type=chunk) Gross Margin Performance | Period | Q4'25 | Q4'24 | FY'25 | FY'24 | | :---------------- | :---- | :---- | :---- | :---- | | Gross Margin % | 20.4% | 22.5% | 25.2% | 23.3% | - Moving iMage secured a contract to install **150 Barco laser cinema projectors over three years** for a long-time U.S. film exhibition customer[4](index=4&type=chunk) - Key areas of opportunity include ongoing upgrades to **laser projection technology**, **Direct View LED display formats**, **PLF upgrades**, and **immersive audio solutions**[5](index=5&type=chunk)[6](index=6&type=chunk) - The company has built a largely recurring base of **$8,000 to $9,000 in annual revenue** from customers' ongoing parts, component replacement, design, and service needs[7](index=7&type=chunk) [Business Outlook](index=2&type=section&id=Business%20Outlook) The company anticipates a modest increase in cinema technology upgrades for FY'26, with revenue expectations weighted towards the second half and Q1'26 projected at approximately $4.9 million [FY'26 Outlook and Q1'26 Expectations](index=2&type=section&id=FY%26%2339%3B26%20Outlook%20and%20Q1%26%2339%3B26%20Expectations) Moving iMage Technologies is cautiously optimistic for FY'26, anticipating a modest increase in cinema technology upgrades. Revenue expectations for FY'26 are weighted towards the second half, with Q1'26 revenue projected at approximately $4.9 million - Moving iMage is cautiously optimistic regarding its **FY'26 outlook** and the potential for a modest ramp in cinema technology upgrades[8](index=8&type=chunk) - **FY'26 revenue expectations** are currently more weighted to the second half, given industry planning and budget cycles[8](index=8&type=chunk) Q1'26 Revenue Expectation (in thousands) | Metric | Q1'26 (Expected) | | :---------------- | :--------------- | | Revenue | $4,900 | [Financial Review](index=2&type=section&id=Financial%20Review) The company reported declining net sales for Q4'25 and FY'25, yet achieved improved net losses in both periods due to effective operating expense management and enhanced gross margins [Q4'25 Financial Performance](index=2&type=section&id=Q4%26%2339%3B25%20Financial%20Performance) In Q4'25, net sales declined by 7.3% primarily due to reduced customer project activity. Despite this, the company significantly improved its net loss by 62.5% to ($156K) from ($416K) in Q4'24, largely driven by a 26.5% reduction in operating expenses Q4'25 Key Financials (in thousands) | Metric | Q4'25 | Q4'24 | Change (%) | | :---------------------- | :---- | :---- | :--------- | | Net Sales | $5,883 | $6,349 | -7.3% | | Gross Profit | $1,202 | $1,429 | -15.9% | | Gross Margin % | 20.4% | 22.5% | -2.1 pp | | Operating Expenses | $1,389 | $1,891 | -26.5% | | Net Loss | ($156) | ($416) | +62.5% | | EPS | ($0.02) | ($0.04) | +$0.02 | - The **decrease in Q4'25 net sales** was principally due to reduced customer project activity and the impact of theater seating revenues recorded in the year-ago period[9](index=9&type=chunk) - **Q4'25 operating expenses decreased** due to Moving iMage's expense management initiatives, with **selling and marketing expenses down 34.3%** and **general and administrative expenses down 21.6%**[12](index=12&type=chunk) [FY'25 Financial Performance](index=3&type=section&id=FY%26%2339%3B25%20Financial%20Performance) For the full fiscal year 2025, revenue declined by 9.9% to $18.15M. However, the company improved its gross margin to 25.2% and reduced operating expenses by 9.4%, resulting in a 30.9% improvement in net loss to ($0.95M) compared to ($1.37M) in FY'24 FY'25 Key Financials (in thousands) | Metric | FY'25 | FY'24 | Change (%) | | :---------------------- | :---- | :---- | :--------- | | Revenue | $18,147 | $20,139 | -9.9% | | Gross Profit | $4,573 | $4,683 | -2.4% | | Gross Margin % | 25.2% | 23.3% | +1.9 pp | | Operating Expenses | $5,659 | $6,240 | -9.4% | | Net Loss | ($948) | ($1,372) | +30.9% | | EPS | ($0.10) | ($0.13) | +$0.03 | - **FY'25 revenue declined** principally due to reduced customer project activity[12](index=12&type=chunk) - The **improvement in FY'25 operating expenses** was driven by lower compensation expense, more effective use of sales and marketing budgets, and continued discipline around public company costs[12](index=12&type=chunk) [Conference Call Details](index=3&type=section&id=Conference%20Call%20Details) The company provided comprehensive details for its investor conference call, including dial-in information, instant access options, and replay availability [Investor Call Information](index=3&type=section&id=Investor%20Call%20Information) The company provided comprehensive details for its investor conference call, including dial-in numbers, a 'Call me™' link for instant access, and information regarding the transcript and replay availability - Dial-in Number: **1-877-407-4018**; Toll/International Number: **1-201-689-8471**[11](index=11&type=chunk) - A **'Call me™' link** is available for instant telephone access to the event, active 15 minutes prior to the scheduled start time[11](index=11&type=chunk) - Transcript will be posted online **48 hours** after the event. Telephone replay is available until **October 10, 2025, at 11:59 p.m. ET**[11](index=11&type=chunk) [About Moving iMage Technologies](index=4&type=section&id=About%20Moving%20iMage%20Technologies) Moving iMage Technologies (MiT) is a leading provider of out-of-home entertainment technology and services, offering integrated systems, proprietary products, and equipment distribution for various venues [Company Overview and Offerings](index=4&type=section&id=Company%20Overview%20and%20Offerings) Moving iMage Technologies (MiT) is a trusted partner in delivering state-of-the-art out-of-home entertainment environments, founded in 2003. The company provides products, integrated systems design, custom engineering, proprietary products, software, and installation services for various entertainment spaces, including cinemas, Esports venues, and stadiums. MiT also manufactures digital cinema peripherals and distributes equipment from major industry brands, complemented by its Caddy Products division - MiT provides **products, integrated systems design, custom engineering, proprietary products, software, and installation services** for cinemas, screening rooms, postproduction facilities, high-end home theaters, Esports venues, arenas, stadiums, and other entertainment spaces[14](index=14&type=chunk) - MiT manufactures a broad line of **digital cinema peripherals** in the U.S., including automation systems, projector pedestals/bases, projector lifts, hush boxes, direct-view LED frames, lighting fixtures and dimmers, power management devices, operations software, and Esports platforms[15](index=15&type=chunk) - The company distributes and integrates cinema equipment from leading brands such as **Barco, Sharp (NEC) Digital Cinema, Christie Digital, Dolby, LG, and Samsung**[15](index=15&type=chunk) - MiT's **Caddy Products division** designs and sells cupholders, concession trays, and venue accessories to enhance concession sales and improve the guest experience[16](index=16&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) The financial statements reveal an increase in total assets and cash, alongside improved operating cash flow, despite a decline in net sales for both Q4'25 and FY'25 [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheets show an increase in total assets to $10.888 million at June 30, 2025, from $10.523 million in the prior year, primarily driven by higher cash and accounts receivable, and a significant increase in right-of-use assets. Total liabilities also increased, while stockholders' equity decreased Consolidated Balance Sheets Highlights (in thousands) | Metric | June 30, 2025 | June 30, 2024 | | :-------------------------- | :------------ | :------------ | | Cash | $5,715 | $5,278 | | Accounts receivable, net | $1,464 | $1,048 | | Inventories, net | $2,066 | $3,117 | | Total Current Assets | $9,407 | $9,913 | | Right-of-use asset | $1,087 | $144 | | Total Assets | $10,888 | $10,523 | | Total Current Liabilities | $5,113 | $4,813 | | Total Long-Term Liabilities | $918 | — | | Total Liabilities | $6,031 | $4,813 | | Total Stockholders' Equity | $4,857 | $5,710 | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) The consolidated statements of operations reflect a decline in net sales for both Q4'25 and FY'25. Despite this, the company achieved improved net losses in both periods, primarily due to effective management of operating expenses and an improved gross margin percentage for the full fiscal year Consolidated Statements of Operations (in thousands, except share and per share amounts) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Twelve Months Ended June 30, 2025 | Twelve Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :-------------------------------- | :-------------------------------- | | Net sales | $5,883 | $6,349 | $18,147 | $20,139 | | Cost of goods sold | $4,681 | $4,920 | $13,574 | $15,456 | | Gross profit | $1,202 | $1,429 | $4,573 | $4,683 | | Total operating expenses | $1,389 | $1,891 | $5,659 | $6,240 | | Operating (loss) | ($187) | ($462) | ($1,086) | ($1,557) | | Net (loss) | ($156) | ($416) | ($948) | ($1,372) | | Weighted average shares outstanding: basic and diluted | 9,936,380 | 10,487,857 | 9,910,244 | 10,482,857 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The consolidated statements of cash flows show a significant improvement in operating activities, with net cash provided turning positive to $437 thousand in FY'25 from a negative $796 thousand in FY'24. This, combined with minimal investing and financing activities, led to an overall increase in cash at the end of the period Consolidated Statements of Cash Flows (in thousands) | Metric | Year Ended June 30, 2025 | Year Ended June 30, 2024 | | :------------------------------------------ | :----------------------- | :----------------------- | | Net (loss) | ($948) | ($1,372) | | Net cash provided by (used in) operating activities | $437 | ($796) | | Net cash (used in) investing activities | — | ($12) | | Net cash (used in) financing activities | — | ($530) | | Net increase (decrease) in cash | $437 | ($1,338) | | Cash, beginning of the period | $5,278 | $6,616 | | Cash, end of the period | $5,715 | $5,278 | - Non-cash investing and financing activities for FY'25 included **$207 thousand** for right-of-use assets from new leases and **$988 thousand** from lease modification[23](index=23&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This section serves as a standard disclaimer, clarifying that statements about future events are forward-looking and subject to risks, with no commitment to updates [Disclaimer on Future Projections](index=4&type=section&id=Disclaimer%20on%20Future%20Projections) This section serves as a standard disclaimer, clarifying that statements about future events are forward-looking and subject to risks. Actual results may differ materially from these projections, and the company does not commit to updating them - Statements using words like "believe," "anticipate," "expect," "plan," "intend," "estimate," "target" are considered **forward-looking statements**[13](index=13&type=chunk) - **Actual results may differ materially** from those expressed or implied by forward-looking statements due to numerous important factors detailed in SEC filings[13](index=13&type=chunk) - The company assumes **no obligation to update** any forward-looking statements, to the extent permitted under applicable law[13](index=13&type=chunk) [Investor Relations](index=4&type=section&id=Investor%20Relations) This section provides contact details for investor relations inquiries, including names, email, and phone number [Contact Information](index=4&type=section&id=Contact%20Information) This section provides contact details for investor relations inquiries, including names, email, and phone number - **Investor Relations Contacts**: **Chris Eddy** or **David Collins** at **Catalyst IR**[17](index=17&type=chunk) - **Email**: **mitq@catalyst-ir.com**; **Phone**: **212-924-9800**[17](index=17&type=chunk) ```

PART I [Business Overview](index=4&type=section&id=Item%201.%20Business) Moving iMage Technologies (MiT) supplies technology, products, and services to movie theaters and entertainment venues, offering proprietary and third-party solutions, and developing disruptive innovations like CineQC and MiTranslator, adapting to industry shifts including new projection technologies - MiT is a key provider of technology, products, and services to movie theater operators and sports and entertainment venues[16](index=16&type=chunk) Movie Release Revenues (2023-2024) | Year | Revenue (Billions) | | :--- | :----------------- | | 2023 | $9.0 | | 2024 | $8.6 | 2024 Global Box Office Revenue Breakdown | Market | Revenue (Billions) | Percentage of Total | | :------------ | :----------------- | :------------------ | | Global Total | $30 | 100% | | U.S./Canada | $8.8 | 29.3% | | International | $21.2 | 70.7% | - The company offers comprehensive services including project management, design, and installation, alongside designing proprietary ADA-compliant products and reselling third-party technologies like projectors and servers[22](index=22&type=chunk) - Recently introduced disruptive products include **CineQC** (a software-as-a-service platform for quality control), **MiTranslator** (a multi-language augmented reality glasses system for moviegoers), and a proprietary mobile cart for eSports and gaming in auditoriums[22](index=22&type=chunk) - As of 2024, roughly the **low-teens percentage** of cinema screens worldwide were laser-equipped, with **99%** of new projectors sold by MiT having laser light sources, offering brighter images and longer lifespan[25](index=25&type=chunk)[26](index=26&type=chunk) - MiT is the **only company** that has installed and commissioned the three leading DCI Directview LED cinema systems (**Samsung ONYX Cinema, LG DVLED Cinema, & SONY Crystal LED**), which are considered disruptive to traditional projection by offering improved contrast and energy efficiency[43](index=43&type=chunk)[44](index=44&type=chunk) Sales Backlog (as of June 30) | Year | Backlog (Millions) | | :--- | :----------------- | | 2025 | $7.52 | | 2024 | $5.93 | - The company employed **25 full-time equivalent personnel** as of June 30, 2025[58](index=58&type=chunk) [Risk Factors](index=10&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from adverse economic conditions, supply chain disruptions, intense competition, and operational challenges, alongside risks related to common stock ownership, insider control, and identified material weaknesses in internal controls - Top ten customers accounted for approximately **44% and 45% of net revenues** for the years ended June 30, 2025 and 2024, respectively, and **41% and 62% of net receivables** at June 30, 2025 and 2024, respectively[47](index=47&type=chunk)[70](index=70&type=chunk) - The company's sales backlog of approximately **$7.52 million** at June 30, 2025, may not fully convert into revenue and cash flows due to potential customer delays or cancellations[75](index=75&type=chunk) - The markets for the company's products and services are **highly competitive**, leading to pricing pressures and potential loss of market share[55](index=55&type=chunk)[76](index=76&type=chunk)[77](index=77&type=chunk) - International operations expose the company to risks such as political/economic instability, foreign laws, customization costs, intellectual property protection challenges, and difficulties in managing foreign operations[78](index=78&type=chunk)[80](index=80&type=chunk) - The company has identified **material weaknesses** in its internal control over financial reporting, including issues with the closing and financial reporting process, lack of formal accounting policies, segregation of duties, and journal entry review[124](index=124&type=chunk)[205](index=205&type=chunk) - The company does not anticipate paying any cash dividends in the foreseeable future, intending to retain all future earnings to finance business growth[127](index=127&type=chunk)[270](index=270&type=chunk) - Directors and executive officers beneficially owned approximately **36% of the outstanding capital stock** as of September 26, 2025, allowing them to exercise significant influence over corporate matters[114](index=114&type=chunk) - As an 'emerging growth company,' the company takes advantage of reduced disclosure and governance requirements, which could make its shares less attractive to investors and potentially hinder capital raising efforts[115](index=115&type=chunk)[118](index=118&type=chunk) [Unresolved Staff Comments](index=27&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) There are no unresolved staff comments to report - None[135](index=135&type=chunk) [Cybersecurity](index=27&type=section&id=Item%201C.%20Cybersecurity) The company manages cybersecurity risks through basic protocols, with management overseeing identification, assessment, and mitigation, and reported no material incidents in fiscal year 2025 - The company manages cybersecurity risks by utilizing basic security protocols, such as network monitoring and access controls[136](index=136&type=chunk) - Management is responsible for identifying, considering, and assessing material cybersecurity risks, establishing monitoring processes, implementing mitigation measures, and maintaining cybersecurity programs[136](index=136&type=chunk) - During the fiscal year ended June 30, 2025, no cybersecurity incident that would materially affect the business was identified[136](index=136&type=chunk) [Properties](index=28&type=section&id=Item%202.%20Properties) The company leases all its facilities, including a 14,700 sq ft corporate headquarters in Fountain Valley, CA, and a 6,300 sq ft warehouse in Whittier, CA, with leases expiring in 2030 and 2028, respectively - Corporate headquarters: **14,700 square feet** in Fountain Valley, California, under an operating lease expiring in **2030** at a monthly rental of **$20,267**[137](index=137&type=chunk) - Additional facility: **6,300 square foot** warehouse in Whittier, California, under an operating lease expiring in **2028** at a monthly rental of **$6,209**[137](index=137&type=chunk) - The company leases all its facilities and does not own any real property[137](index=137&type=chunk) [Legal Proceedings](index=28&type=section&id=Item%203.%20Legal%20Proceedings) The company is not currently party to any material pending legal proceedings, though it may be subject to routine litigation in the ordinary course of business - The company is not party to any material pending legal proceedings[138](index=138&type=chunk) - From time to time, the company may be subject to legal proceedings and claims arising in the ordinary course of business[138](index=138&type=chunk) [Mine Safety Disclosures](index=28&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[139](index=139&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=28&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock is listed on the NYSE American under "MITQ" with 12 holders of record as of September 26, 2025, and it has never paid cash dividends, intending to retain earnings for growth, with no unregistered equity sales reported for the fiscal year - The company's Common Stock is listed on the NYSE American under the symbol "**MITQ**"[141](index=141&type=chunk) - As of September 26, 2025, there were **12 holders of record** of the company's Common Stock[141](index=141&type=chunk) - The company has never declared or paid cash dividends on its capital stock and currently intends to retain all future earnings to finance business growth and development[142](index=142&type=chunk) - For this fiscal year, there were no unregistered securities to report that had not been previously included in other SEC filings[143](index=143&type=chunk) [Reserved](index=29&type=section&id=Item%206.%20Reserved) This item is reserved and contains no information [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The company, a technology and services provider to entertainment venues, saw a **9.9% decrease in FY2025 net sales** due to the SAG/AFTRA strike, yet improved its net loss by **$0.424 million** and increased gross margin to **25.2%**, while maintaining liquidity and focusing on strategic investments Net Sales (Year Ended June 30) | Year | Net Sales (in 000's) | | :--- | :------------------- | | 2025 | $18,147 | | 2024 | $20,139 | - Net revenues decreased **9.9%** for the year ended June 30, 2025, primarily due to the protracted SAG/AFTRA strike[160](index=160&type=chunk) Gross Profit (Year Ended June 30) | Year | Gross Profit (in 000's) | Gross Margin % | | :--- | :---------------------- | :------------- | | 2025 | $4,573 | 25.2% | | 2024 | $4,683 | 23.3% | Net Loss (Year Ended June 30) | Year | Net Loss (in 000's) | | :--- | :------------------ | | 2025 | $(948) | | 2024 | $(1,372) | - Net loss improved by **$0.424 million** in 2025 compared to the prior year, largely due to staff reductions related to headcount[170](index=170&type=chunk) Cash Balance (as of June 30) | Year | Cash (Millions) | | :--- | :-------------- | | 2025 | $5.715 | | 2024 | $5.278 | Net Cash from Operating Activities (Year Ended June 30) | Year | Net Cash from Operating Activities (Millions) | | :--- | :-------------------------------------------- | | 2025 | $0.437 | | 2024 | $(0.796) | Operating Lease Contractual Obligations (as of June 30, 2025) | Year | Payments (Thousands) | | :--- | :------------------- | | 2026 | $313 | | 2027 | $326 | | 2028 | $303 | | 2029 | $266 | | 2030 | $159 | | Total Future Minimum Lease Payments | $1,367 | | Less Imputed Interest | $(222) | | Present Value of Operating Lease Payments | $1,145 | [Quantitative and Qualitative Disclosures About Market Risk](index=38&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, the company is not required to provide quantitative and qualitative disclosures about market risk in this annual report - As a smaller reporting company, the Company is not required to include Quantitative and Qualitative Disclosures About Market Risk[198](index=198&type=chunk) [Financial Statements and Supplementary Data](index=38&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) The financial statements required by this item are incorporated by reference and can be found following Item 16 of this Annual Report - The financial statements required by this item are set forth following Item 16 of this Annual Report and are incorporated herein by reference[199](index=199&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=38&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) There have been no changes in or disagreements with accountants on accounting and financial disclosure - None[200](index=200&type=chunk) [Controls and Procedures](index=38&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal controls over financial reporting were **ineffective as of June 30, 2025**, due to material weaknesses in financial reporting processes, segregation of duties, and journal entry review, with remediation efforts currently in progress - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were **not effective** as of June 30, 2025, due to material weaknesses in internal control over financial reporting[201](index=201&type=chunk) - Management concluded that internal controls over financial reporting were **not effective** as of June 30, 2025, due to identified material weaknesses[204](index=204&type=chunk) - Material weaknesses identified include deficiencies in the design and operation of the closing and financial reporting process, lack of formal accounting policies/procedures, segregation of duties issues, and absence of a formal review process for journal entries until March 2024[205](index=205&type=chunk) - Remediation efforts include hiring a seasoned financial executive as CFO (April 2023), updating month-end close checklists, implementing more segregation of duties, and formalizing CFO approval of month-end journal entries (starting March 2024)[205](index=205&type=chunk)[207](index=207&type=chunk) [Other Information](index=39&type=section&id=Item%209B.%20Other%20Information) There is no other information to report under this item - None[211](index=211&type=chunk) [Disclosure Regarding Foreign Jurisdictions That Prevent Inspections](index=40&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20That%20Prevent%20Inspections) This item is not applicable to the company - Not applicable[212](index=212&type=chunk) PART III [Directors, Executive Officers and Corporate Governance](index=41&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) The company's executive officers and directors, including CEO Phil Rafnson and President/COO Francois Godfrey, oversee corporate governance through independent committees, adhering to a code of conduct and insider trading policies, though some Section 16(a) reports were filed late - **Phil Rafnson** serves as Chief Executive Officer and Chairman of the Board[214](index=214&type=chunk) - **Francois Godfrey** was appointed President and Chief Operating Officer and to the Board on October 30, 2024[215](index=215&type=chunk) - The Board of Directors has determined that **Katherine D. Crothall, Ph.D., John C. Stiska, and Scott Lloyd Anderson** qualify as independent directors[278](index=278&type=chunk) - **John C. Stiska** has been designated as an 'audit committee financial expert'[228](index=228&type=chunk) - Certain directors and executive officers (William Greene, John C. Stiska, Katherine D. Crothall, Ph.D., Scott Lloyd Anderson, and Jose Delgado) did not timely file Form 4 reports for stock option or stock awards[232](index=232&type=chunk) [Executive Compensation](index=46&type=section&id=Item%2011.%20Executive%20Compensation) Executive compensation for FY2025 and FY2024 is detailed, noting Francois Godfrey's increased total compensation, the absence of employment agreements, the adoption of a clawback policy in November 2023, and the 2019 Omnibus Incentive Stock Plan reserving **1,150,000 shares** for issuance with **450,000 options outstanding** at June 30, 2025, including re-priced director options Named Executive Officer Compensation (Year Ended June 30) | Name and Principal Position | Fiscal Year | Salary ($) | Bonus ($) | All Other Compensation ($) | Total ($) | | :-------------------------- | :---------- | :--------- | :-------- | :------------------------- | :-------- | | Philip Rafnson | 2025 | $160,985 | $100,000 | — | $260,985 | | President and Chief Executive Officer | 2024 | $218,667 | $28,000 | — | $246,667 | | Francois Godfrey | 2025 | $209,113 | $15,000 | $92,000 | $316,113 | | President and Chief Operating Officer | 2024 | $180,000 | $8,000 | — | $188,000 | | Jose Delgado | 2025 | $215,361 | — | — | $215,361 | | Executive Vice President, Sales and Marketing | 2024 | $233,730 | $28,000 | — | $261,730 | | Bevan Wright | 2025 | $215,294 | — | — | $215,294 | | Executive Vice President, Operations | 2024 | $233,730 | $28,000 | — | $261,730 | | William Greene | 2025 | $203,088 | — | — | $203,088 | | Chief Financial Officer | 2024 | $220,487 | $28,000 | — | $248,487 | - A clawback policy was adopted on **November 30, 2023**, allowing the company to recover excess incentive compensation from current and former executive officers in the event of a material financial restatement[242](index=242&type=chunk) - As of June 30, 2025, an aggregate of **1,150,000 shares** of Common Stock are reserved for issuance and available for awards under the 2019 Omnibus Incentive Stock Plan[243](index=243&type=chunk) Outstanding Stock Options (as of June 30, 2025) | Options Outstanding | Weighted-Average Exercise Price | | :------------------ | :------------------------------ | | 450,000 | $0.65 | - On **March 25, 2025**, the Board re-priced **150,000 options** for outside directors from **$1.10 to $0.65 per share**, resulting in an incremental stock-based compensation charge of **$11,000** for the year ended June 30, 2025[256](index=256&type=chunk)[258](index=258&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=51&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) As of September 26, 2025, executive officers and directors collectively owned **36.0%** of the company's **9,896,850 outstanding common shares**, with Phil Rafnson holding the largest individual stake at **20.9%**, and the company, which does not grant equity awards based on nonpublic information, has **1,220,000 shares** available under its 2019 Incentive Stock Plan and no plans for cash dividends Beneficial Ownership (as of September 26, 2025) | Name of Beneficial Owner | Shares Beneficially Owned | % Ownership | | :----------------------- | :------------------------ | :---------- | | Phil Rafnson | 2,074,828 | 20.9% | | All executive officers, directors as a group (8 persons) | 3,572,682 | 36.0% | - Applicable percentage ownership is based on **9,896,850 shares** of Common Stock outstanding at September 26, 2025[260](index=260&type=chunk) Securities Available Under Equity Compensation Plans (as of June 30, 2025) | Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price per share of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans | | :------------ | :---------------------------------------------------------------------------------------- | :---------------------------------------------------------------------------------- | :----------------------------------------------------------------------------------------- | | Stockholder-approved plans | 450,000 | $0.65 | 1,220,000 | - The company does not grant equity awards in anticipation of the release of material nonpublic information and does not time public release of such information based on award grant dates[267](index=267&type=chunk) - The company has never declared or paid cash dividends and intends to retain all future earnings to finance business growth[270](index=270&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=54&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) The company maintains indemnification agreements with officers and directors, a related person transaction policy requiring audit committee approval for transactions over **$120,000**, and in February 2024, Jose Delgado sold **49,586 shares** for **$33,073** to cover obligations and taxes, with Katherine D. Crothall, John C. Stiska, and Scott Lloyd Anderson qualifying as independent directors - The company has entered into indemnification agreements with each of its directors and executive officers, requiring indemnification to the fullest extent permitted by Delaware law[272](index=272&type=chunk) - A written related person transaction policy requires audit committee review and approval for transactions exceeding **$120,000** where a related person has a direct or indirect material interest[274](index=274&type=chunk) - On **February 28, 2024**, Jose Delgado, Executive Vice President of Sales, sold **49,586 shares** of common stock to the company for **$33,073** to satisfy a **$25,037** outstanding obligation and cover an estimated **$8,037** in taxes[276](index=276&type=chunk) - **Katherine D. Crothall, Ph.D., John C. Stiska, and Scott Lloyd Anderson** qualify as independent directors under NYSE American listing standards[278](index=278&type=chunk) [Principal Accounting Fees and Services](index=55&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) The audit committee pre-approves all services from Haskell & White LLP, the independent registered public accounting firm, with audit fees totaling **$221,615** and tax fees **$13,100** for the fiscal year ended June 30, 2025 - The Audit Committee is directly responsible for approving all audit engagement fees and terms, and for oversight of the work of the company's independent registered public accounting firm[280](index=280&type=chunk) Fees Billed by Haskell & White LLP (Fiscal Years Ended June 30) | Fee Type | 2025 ($) | 2024 ($) | | :--------- | :--------- | :--------- | | Audit Fees | $221,615 | $210,105 | | Tax Fees | $13,100 | $10,200 | | Total Fees | $234,715 | $220,305 | PART IV [Exhibits, Financial Statement Schedules](index=56&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the financial statements, financial statement schedules, and exhibits included in the Annual Report on Form 10-K - The financial statements have been included in Item 8 and are set forth following Item 16 of this Report[283](index=283&type=chunk) - Financial statement schedules have been omitted because they are not applicable, not material, or the information is included in the consolidated financial statements or notes[284](index=284&type=chunk) - Exhibits are incorporated by reference from the Exhibit Index[285](index=285&type=chunk) [Form 10-K Summary](index=56&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item indicates that no Form 10-K summary is provided - None[286](index=286&type=chunk) [Financial Statements](index=57&type=section&id=Financial%20Statements) The financial statements for Moving iMage Technologies, Inc. for the years ended June 30, 2025 and 2024, encompass the Report of Independent Registered Public Accounting Firm, Consolidated Balance Sheets, Statements of Operations, Statements of Changes in Stockholders' Equity, Statements of Cash Flows, and comprehensive Notes, with Haskell & White LLP issuing an unqualified opinion - Haskell & White LLP, the independent registered public accounting firm, issued an **unqualified opinion** on the consolidated financial statements for the years ended June 30, 2025 and 2024[290](index=290&type=chunk) [Report of Independent Registered Public Accounting Firm](index=58&type=section&id=REPORT%20OF%20INDEPENDENT%20REGISTERED%20PUBLIC%20ACCOUNTING%20FIRM) Haskell & White LLP provided an unqualified opinion on the consolidated financial statements of Moving iMage Technologies, Inc. for the fiscal years ended June 30, 2025 and 2024, affirming their fair presentation in accordance with U.S. GAAP - The independent registered public accounting firm, Haskell & White LLP, expressed an **unqualified opinion** that the consolidated financial statements present fairly, in all material respects, the financial position and results of operations for the years ended June 30, 2025 and 2024[290](index=290&type=chunk) - The audit was conducted in accordance with PCAOB standards, assessing risks of material misstatement and evaluating accounting principles and estimates[292](index=292&type=chunk)[293](index=293&type=chunk) [Consolidated Balance Sheets](index=59&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) The consolidated balance sheets show total assets increased slightly to **$10.888 million** in 2025 from **$10.523 million** in 2024, driven by cash and right-of-use assets, while total liabilities also rose due to accounts payable and long-term lease liabilities, and stockholders' equity decreased Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | June 30, 2024 | | :---------------------- | :------------ | :------------ | | Cash | $5,715 | $5,278 | | Accounts receivable, net| $1,464 | $1,048 | | Inventories, net | $2,066 | $3,117 | | Total Current Assets | $9,407 | $9,913 | | Right-of-use asset | $1,087 | $144 | | Total Assets | $10,888 | $10,523 | | Accounts payable | $3,009 | $2,261 | | Total Current Liabilities | $5,113 | $4,813 | | Lease liability–non-current | $918 | — | | Total Liabilities | $6,031 | $4,813 | | Total Stockholders' Equity | $4,857 | $5,710 | [Consolidated Statements of Operations](index=60&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) The consolidated statements of operations show net sales decreased to **$18.147 million** in 2025 from **$20.139 million** in 2024, yet the net loss improved to **$(0.948) million** from **$(1.372) million**, primarily due to reduced operating expenses Consolidated Statements of Operations Highlights (in thousands, except per share) | Metric | Year Ended June 30, 2025 | Year Ended June 30, 2024 | | :-------------------------- | :----------------------- | :----------------------- | | Net sales | $18,147 | $20,139 | | Cost of goods sold | $13,574 | $15,456 | | Gross profit | $4,573 | $4,683 | | Total operating expenses | $5,659 | $6,240 | | Operating (loss) | $(1,086) | $(1,557) | | Interest and other income, net | $138 | $185 | | Net (loss) | $(948) | $(1,372) | | Net (loss) income per common share basic and diluted | $(0.10) | $(0.13) | [Consolidated Statements of Changes in Stockholders' Equity](index=61&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CHANGES%20IN%20STOCKHOLDERS'%20EQUITY) Total stockholders' equity decreased from **$5.710 million** at June 30, 2024, to **$4.857 million** at June 30, 2025, primarily due to the net loss, partially offset by increases in additional paid-in capital from stock option grants and issuances Changes in Stockholders' Equity (in thousands) | Item | June 30, 2024 Balance | Grant of options to officer | Issuance of stock to board members | Repriced option for directors and officer | Net loss | June 30, 2025 Balance | | :------------------------------------ | :-------------------- | :-------------------------- | :--------------------------------- | :---------------------------------------- | :------- | :-------------------- | | Common Stock Shares | 9,896,850 | — | 42,230 | — | — | 9,939,080 | | Common Stock Amount | $0 | — | — | — | — | $0 | | Additional Paid-In Capital | $11,965 | $59 | $26 | $11 | — | $12,061 | | Accumulated Deficit | $(6,255) | — | — | — | $(948) | $(7,204) | | Total Stockholders' Equity | $5,710 | $59 | $26 | $11 | $(948) | $4,857 | [Consolidated Statements of Cash Flows](index=62&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) The consolidated statements of cash flows show net cash provided by operating activities of **$0.437 million** in 2025, a positive shift from **$(0.796) million** used in 2024, with minimal investing activities and no cash impact from financing activities in 2025 Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Year Ended June 30, 2025 | Year Ended June 30, 2024 | | :------------------------------ | :----------------------- | :----------------------- | | Net cash provided by (used in) operating activities | $437 | $(796) | | Net cash (used in) investing activities | — | $(12) | | Net cash (used in) financing activities | — | $(530) | | Net increase (decrease) in cash | $437 | $(1,338) | | Cash, end of the period | $5,715 | $5,278 | [Notes to Consolidated Financial Statements](index=63&type=section&id=NOTES%20TO%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) These notes detail the company's business activities, significant accounting policies, and financial position, covering areas such as COVID-19 impact, revenue recognition, share-based compensation, and specific notes on SNDBX agreements, share buybacks, loss per share, property, intangible assets, accrued expenses, stockholders' equity, income taxes, concentrations, commitments, and segment information - The COVID-19 pandemic has had a **significant adverse impact** on the company's business, results of operations, cash flows, and financial condition, leading to cash preservation strategies and ongoing industry recovery challenges[303](index=303&type=chunk)[305](index=305&type=chunk) Allowance for Credit Losses (as of June 30) | Year | Allowance for Credit Losses (Thousands) | | :--- | :-------------------------------------- | | 2025 | $436 | | 2024 | $378 | Inventory Reserve (as of June 30) | Year | Inventory Reserve (Thousands) | | :--- | :---------------------------- | | 2025 | $1,304 | | 2024 | $1,106 | Disaggregation of Revenue (Year Ended June 30, 2025, in Thousands) | Revenue Type | Amount | | :-------------------- | :----- | | Equipment upon delivery | $17,999 | | Installation | $94 | | Software and services | $54 | | Total revenues | $18,147 | Net Intangible Assets (as of June 30) | Year | Net Intangible Assets | | :--- | :-------------------- | | 2025 | $364 | | 2024 | $422 | Product Warranty Liability (as of June 30) | Year | Product Warranty Liability | | :--- | :------------------------- | | 2025 | $37 | | 2024 | $69 | - The company recognized approximately **$70,000** in stock compensation expense during the year ended June 30, 2025[372](index=372&type=chunk) - As of June 30, 2025, the company has approximately **$6,241,000** of U.S. Federal and State Net Operating Loss (NOL) carryforwards available to offset future taxable income[384](index=384&type=chunk) - For the year ended June 30, 2025, three customers provided **18%, 16%, and 13%** of accounts receivable[386](index=386&type=chunk) Operating Lease Liabilities (as of June 30, 2025, in thousands) | Liability Type | Amount | | :-------------------------- | :----- | | Current operating lease liabilities | $228 | | Long-term operating lease liabilities | $918 | | Total ROU liabilities | $1,146 | [NOTE 1 — BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=63&type=section&id=NOTE%201%20%E2%80%94%20BUSINESS%20ACTIVITY%20AND%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note details the company's business as a cinema equipment and solutions provider, outlines the COVID-19 pandemic's industry impact, and summarizes significant accounting policies including revenue recognition, inventory, and intangible assets - Moving iMage Technologies, Inc. (MiT) designs, integrates, installs, and distributes proprietary and custom-designed equipment, as well as off-the-shelf cinema products. It also offers single-source solutions for cinema design, procurement, installation, and service, including software solutions for operations enhancement and theatre management[301](index=301&type=chunk) - The COVID-19 pandemic significantly impacted the entertainment and cinema industries, leading the company to implement cash preservation strategies. As of June 30, 2025, most theaters were open, but the industry's recovery to historical levels of film content and box office performance is ongoing, facing challenges like evolving release windows, streaming competition, supply chain delays, and inflation[303](index=303&type=chunk)[304](index=304&type=chunk) - The company has determined it operates as a single operating and reportable segment, with the chief operating decision maker reviewing financial information on a consolidated basis[308](index=308&type=chunk) Allowance for Credit Losses (as of June 30) | Year | Allowance for Credit Losses (Thousands) | | :--- | :-------------------------------------- | | 2025 | $436 | | 2024 | $378 | Inventory Reserve (as of June 30) | Year | Inventory Reserve (Thousands) | | :--- | :---------------------------- | | 2025 | $1,304 | | 2024 | $1,106 | - Revenue is recognized when control of promised goods is transferred at the point of shipment to a customer and performance conditions are satisfied, or over time for software and services[316](index=316&type=chunk)[326](index=326&type=chunk) Contract Liabilities (as of June 30, in Thousands) | Contract Liabilities | 2025 | 2024 | | :------------------- | :----- | :----- | | Customer deposits | $1,101 | $1,651 | | Unearned warranty revenue | $35 | $31 | | Customer refunds | $379 | $399 | | Total | $1,514 | $2,081 | Disaggregation of Revenue (Year Ended June 30, in Thousands) | Revenue Type | 2025 | 2024 | | :-------------------- | :------ | :------ | | Equipment upon delivery | $17,999 | $19,943 | | Installation | $94 | $130 | | Software and services | $54 | $66 | | Total revenues | $18,147 | $20,139 | Net Intangible Assets (as of June 30, in thousands) | Year | Net Intangible Assets | | :--- | :-------------------- | | 2025 | $364 | | 2024 | $422 | Product Warranty Liability (as of June 30, in thousands) | Year | Product Warranty Liability | | :--- | :------------------------- | | 2025 | $37 | | 2024 | $69 | - The company adopted ASU 2023-07, Segment Reporting, on **June 30, 2025**, which impacted segment reporting disclosures[339](index=339&type=chunk) - The FASB issued ASU 2023-3 (Disaggregation of Income Statement Expenses) and ASU 2023-09 (Improvements to Income Tax Disclosures), effective for fiscal years beginning after **December 15, 2026**, and **July 1, 2025**, respectively, which the company is currently assessing for disclosure impact[340](index=340&type=chunk)[341](index=341&type=chunk) [NOTE 2 — SNDBX AGREEMENTS](index=68&type=section&id=NOTE%202%20%E2%80%94%20SNDBX%20AGREEMENTS) This note details the company's agreements with The Five Agency and SNDBX, INC., involving a **$300,000 loan** and a **$100,000 convertible note**, both fully reserved by June 30, 2024, due to execution risks - In **April 2023**, the company entered a Letter Agreement with The Five Agency, agreeing to lend **$300,000** and receive **5% equity** in SNDBX, INC., a new Florida corporation for gaming leagues[343](index=343&type=chunk) - The initial loan of **$150,000** was disbursed with **10% annual interest**, secured by equipment patents, and an additional **$150,000** was contingent on definitive agreements and a **$3 million** equipment purchase commitment by SNDBX[344](index=344&type=chunk)[348](index=348&type=chunk) - In **June 2023**, the company entered a Convertible Note Purchase Agreement with SNDBX for **$100,000**, convertible into **20 Founders Shares** at **$5,000 per share**, with a maturity date of **June 5, 2024**[346](index=346&type=chunk)[347](index=347&type=chunk) - As of **June 30, 2024**, the company fully reserved the **$0.400 million** Notes Receivable balance due to SNDBX delays and execution risk, recognizing it as an impairment expense[353](index=353&type=chunk) [NOTE 3 — SHARE BUYBACK](index=70&type=section&id=NOTE%203%20%E2%80%94%20SHARE%20BUYBACK) This note outlines the company's stock repurchase programs, including a **$1 million** authorization in March 2023, under which approximately **273,000 shares** were repurchased for **$303,000** by June 30, 2024, and a subsequent **$697,000** program that expired - On **March 23, 2023**, the Board authorized a stock repurchase program of up to **$1 million**. By **June 30, 2024**, the company repurchased approximately **273,000 shares** for **$303,000**[354](index=354&type=chunk) - A new share repurchase program for up to **$697,000** was authorized on **April 1, 2024**, expiring **June 30, 2024**. The remaining unpurchased shares of **$133,000** expired[355](index=355&type=chunk) Share Repurchase Activity (March 2023 - June 2024) | Period | Total Number of Shares Purchased | Average Price Paid per Share ($) | | :---------------------- | :------------------------------- | :------------------------------- | | Mar 23, 2023 - Mar 31, 2023 | 47,467 | 1.04 | | May 18 - Jun 30, 2023 | 225,153 | 1.13 | | Nov 1, 2023 - Dec 31, 2023 | 109,135 | 0.93 | | Jan 1, 2024 - Mar 31, 2024 | 260,024 | 0.77 | | Apr 1, 2024 - Jun 30, 2024 | 389,121 | 0.59 | | Total | 1,030,900 | 0.81 | [NOTE 4— LOSS PER SHARE](index=71&type=section&id=NOTE%204%E2%80%94%20LOSS%20PER%20SHARE) This note presents the calculation of basic and diluted loss per share for 2025 and 2024, with all potentially dilutive securities excluded due to the company incurring net losses Loss Per Share (Year Ended June 30) | Metric | 2025 | 2024 | | :-------------------------------------- | :----------- | :----------- | | Net (loss) (Thousands) | $(948) | $(1,372) | | Weighted average common shares outstanding, basic and diluted | 9,910,244 | 10,482,857 | | Net (loss) per share Basic and diluted ($) | $(0.10) | $(0.13) | Potentially Dilutive Securities Excluded (as of March 31) | Security Type | 2025 | 2024 | | :------------ | :-------- | :-------- | | Options | 450,000 | 250,000 | | Total | 450,000 | 250,000 | - All potentially dilutive securities were excluded from the calculation of diluted loss per share for both years due to the company incurring net losses, making their inclusion anti-dilutive[360](index=360&type=chunk) [NOTE 5 — PROPERTY AND EQUIPMENT](index=72&type=section&id=NOTE%205%20%E2%80%94%20PROPERTY%20AND%20EQUIPMENT) This note provides a breakdown of net property and equipment, including production equipment and leasehold improvements, and details the depreciation expense for 2025 and 2024 Net Property and Equipment (as of June 30, in thousands) | Item | 2025 ($) | 2024 ($) | | :---------------------- | :------- | :------- | | Production equipment | 308 | 308 | | Leasehold improvements | 213 | 213 | | Furniture and fixtures | 45 | 45 | | Computer equipment | 72 | 72 | | Other equipment | 120 | 120 | | Total | 758 | 758 | | Accumulated depreciation| (743) | (730) | | Net property and equipment | 15 | 28 | Depreciation Expense (Year Ended June 30, in thousands) | Year | Depreciation Expense | | :--- | :------------------- | | 2025 | $13 | | 2024 | $12 | [NOTE 6 — INTANGIBLE ASSETS](index=72&type=section&id=NOTE%206%20%E2%80%94%20INTANGIBLE%20ASSETS) This note details the company's intangible assets, including customer relations, patents, and trademarks, their gross cost, accumulated amortization, net book value, and estimated future amortization expense for fiscal years 2025 and 2024 Intangible Assets (as of June 30, 2025, in thousands) | Item | Amortization Period (years) | Gross Asset Cost ($) | Accumulated Amortization ($) | Net Book Value ($) | | :--------------- | :-------------------------- | :------------------- | :--------------------------- | :----------------- | | Customer relations | 11 | 970 | 711 | 260 | | Patents | 20 | 70 | 21 | 49 | | Trademark | 20 | 78 | 23 | 55 | | Total | | 1,118 | 755 | 364 | Intangible Assets (as of June 30, 2024, in thousands) | Item | Amortization Period (years) | Gross Asset Cost ($) | Accumulated Amortization ($) | Net Book Value ($) | | :--------------- | :-------------------------- | :------------------- | :--------------------------- | :----------------- | | Customer relations | 11 | 970 | 660 | 310 | | Patents | 20 | 70 | 17 | 53 | | Trademark | 20 | 78 | 19 | 59 | | Total | | 1,118 | 696 | 422 | Amortization Expense (Year Ended June 30, in thousands) | Year | Amortization Expense | | :--- | :------------------- | | 2025 | $58 | | 2024 | $58 | Estimated Future Amortization Expense (as of June 30, 2025, in thousands) | Fiscal Year | Amount | | :---------- | :----- | | 2026 | $60 | | 2027 | $60 | | 2028 | $60 | | 2029 | $60 | | Thereafter | $124 | | Total | $364 | [NOTE 7 — ACCRUED EXPENSES](index=73&type=section&id=NOTE%207%20%E2%80%94%20ACCRUED%20EXPENSES) This note provides a breakdown of accrued expenses, including employee compensation, accrued warranty, freight, and sales tax, for the fiscal years ended June 30, 2025 and 2024 Accrued Expenses (as of June 30, in thousands) | Item | 2025 ($) | 2024 ($) | | :------------------- | :------- | :------- | | Employee compensation| 225 | 178 | | Accrued warranty | 37 | 69 | | Freight | 16 | 32 | | Sales tax | 28 | 14 | | Other | 56 | 27 | | Total | 362 | 320 | [NOTE 8— STOCKHOLDERS' EQUITY](index=73&type=section&id=NOTE%208%E2%80%94%20STOCKHOLDERS'%20EQUITY) This note details stockholders' equity, including the 2019 Omnibus Incentive Plan with **1,220,000 stock-based awards** available, the grant of **200,000 options** to Francis Godfrey, the re-pricing of **150,000 director options**, and the recognition of **$70,000** in stock compensation expense for 2025 - The 2019 Omnibus Incentive Plan provides for the issuance of stock-based awards to employees, with **1,220,000 stock-based awards** available to grant as of June 30, 2025[370](index=370&type=chunk) - On **October 30, 2024**, Francis Godfrey was granted **200,000 options** with an exercise price of **$0.65**, vesting **25% immediately** and **25% annually** thereafter[372](index=372&type=chunk) - On **March 25, 2025**, the Board re-priced **150,000 options** for directors from **$1.10 to $0.65 per share**, resulting in an incremental stock-based compensation charge of **$11,000** for the year ended June 30, 2025[372](index=372&type=chunk) - The company recognized approximately **$70,000** in compensation expense for stock option awards during the year ended June 30, 2025[372](index=372&type=chunk) Stock Option Activity (Year Ended June 30, 2025) | Item | Options | Weighted-Average Exercise Price ($) | | :----------------------- | :-------- | :---------------------------------- | | Balance, July 1, 2024 | 250,000 | 1.10 | | Granted during the period| 450,000 | 0.65 | | Cancelled during the period | (250,000) | (1.10) | | Balance, June 30, 2025 | 450,000 | 0.65 | Outstanding Stock Options (as of June 30, 2025) | Range of Exercise Price ($) | Number Outstanding | Number Exercisable | Weighted-Average Remaining Contractual Life (years) | Weighted-Average Exercise Price ($) | | :-------------------------- | :----------------- | :----------------- | :-------------------------------------------------- | :---------------------------------- | | $0.65 | 450,000 | 275,000 | 8.54 | $0.65 | [NOTE 9 — INCOME TAXES](index=77&type=section&id=NOTE%209%20%E2%80%94%20INCOME%20TAXES) This note details deferred tax assets and liabilities, including inventory reserves and net operating loss carryforwards, and the recognition of a full valuation allowance against deferred tax assets due to uncertainty of realization Deferred Tax Assets (Liabilities) (as of June 30, in thousands) | Item | 2025 ($) | 2024 ($) | | :------------------------ | :------- | :------- | | Inventory reserve | 395 | 309 | | Accumulated depreciation | (3) | (6) | | Accumulated goodwill amortization | 57 | 63 | | Accumulated intangible amortization | 121 | 125 | | ROU Asset | (304) | - | | ROU Liability | 321 | - | | Warranty reserve | 10 | 9 | | Stock compensation | 68 | 68 | | Net operating loss carryforward | 997 | 1,481 | | Tax credits | 86 | - | | Allowance for doubtful accounts | 66 | 106 | | Net | 1,814 | 2,157 | | Valuation allowance | (1,814) | (2,157) | | Total | - | - | - As of **June 30, 2025**, the company has approximately **$6,241,000** of U.S. Federal and State NOL carryforwards available for future use to offset taxable income[384](index=384&type=chunk) - A valuation allowance of **$1,814,000** and **$2,157,000** was recognized as of June 30, 2025 and 2024, respectively, as all U.S. Federal and state deferred tax assets were determined to be not more likely than not realizable[385](index=385&type=chunk) [NOTE 10 — CUSTOMER AND VENDOR CONCENTRATIONS](index=77&type=section&id=NOTE%2010%20%E2%80%94%20CUSTOMER%20AND%20VENDOR%20CONCENTRATIONS) This note highlights significant customer and vendor concentrations, with three customers accounting for **18%, 16%, and 13%** of accounts receivable, and two vendors providing **21% and 11%** of purchases for the year ended June 30, 2025 - For the year ended June 30, 2025, three customers accounted for **18%, 16%, and 13%** of accounts receivable[386](index=386&type=chunk) - For the year ended June 30, 2025, the two largest vendors provided **21% and 11%** of the company's purchases[388](index=388&type=chunk) - As of June 30, 2025, one vendor accounted for **35%** of accounts payable[388](index=388&type=chunk) [NOTE 11— COMMITMENTS AND CONTINGENCIES](index=78&type=section&id=NOTE%2011%E2%80%94%20COMMITMENTS%20AND%20CONTINGENCIES) This note details the company's operating lease commitments for its executive office and warehouse, expiring in **2030** and **2028** respectively, and confirms no material pending legal proceedings - The company's executive office and warehouse lease agreements are classified as operating leases, with the office lease expiring **January 31, 2030**, and the Whittier warehouse lease expiring **January 31, 2028**[390](index=390&type=chunk) Future Minimum Lease Payments (as of June 30, 2025, in thousands) | Year | Payments | | :--- | :------- | | 2026 | $313 | | 2027 | $326 | | 2028 | $303 | | 2029 | $266 | | 2030 | $159 | | Total future minimum lease payments | $1,367 | | Less imputed interest | $(222) | | Present value of operating lease payments | $1,145 | ROU Assets and Operating Lease Liabilities (as of June 30, 2025, in thousands) | Item | Amount | | :-------------------------- | :----- | | ROU assets-net | $1,087 | | Current operating lease liabilities | $228 | | Long-term operating lease liabilities | $918 | | Total ROU liabilities | $1,146 | - The company is not involved in any pending significant legal proceedings that management believes would have a material adverse effect on its financial position[397](index=397&type=chunk) [NOTE 12—SEGMENT INFORMATION](index=79&type=section&id=NOTE%2012%E2%80%94SEGMENT%20INFORMATION) This note confirms the company operates as a single operating segment, with the President managing resources and evaluating performance on a consolidated basis, and provides segment financial information for 2025 and 2024 - The company operates as a single operating segment, focusing on identifying, developing, and manufacturing products for the cinema market[398](index=398&type=chunk) - The chief operating decision maker (President) manages and allocates resources on a consolidated basis, using consolidated financial information for performance evaluation, forecasting, and setting incentive targets[398](index=398&type=chunk) Segment Financial Information (Year Ended June 30, in Thousands) | Metric | 2025 ($) | 2024 ($) | | :------------------------ | :------- | :------- | | Revenue | 18,147 | 20,139 | | Cost of Sales | 13,574 | 15,456 | | Gross Margin | 4,573 | 4,683 | | Total segment operating expenses | 5,659 | 6,235 | | Interest and other Income | 138 | 180 | | Net loss | (948) | (1,372) | [NOTE 13— SUBSEQUENT EVENTS](index=79&type=section&id=NOTE%2013%E2%80%94%20SUBSEQUENT%20EVENTS) Management evaluated events from June 30, 2025, through September 25, 2025, and determined that no other events occurred requiring adjustment to disclosures in the condensed consolidated financial statements - Management evaluated events from **June 30, 2025**, through **September 25, 2025**, and determined that no other events occurred requiring adjustment to disclosures in the condensed consolidated financial statements[400](index=400&type=chunk)

Core Insights - Future is focused on driving business momentum and establishing a strong connection with brands through community building [2] - The company operates a global media group with a diverse audience of over 475 million and approximately 200 brands across various verticals [3] Company Overview - Future is a global specialist media group that reaches a diversified and intent-led audience [3] - The company operates around 200 brands, including super brands, across sectors such as technology, gaming, news, wealth, style, and luxury [3] - Future's brands are platform agnostic, allowing high-intent audiences to access content across various platforms [3]