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]

Financial Data and Key Metrics Changes - Q4 2025 revenue declined 7.3% to $5.88 million compared to $6.35 million in Q4 2024 due to reduced customer project activity [14] - Gross profit dollars decreased to $1.2 million in Q4 2025 from $1.43 million in Q4 2024, with a gross margin of 20.4% versus 22.5% in Q4 2024 [14][15] - Fiscal year 2025 revenue declined 9.9% to $18.15 million from $20.14 million in 2024, with an improved gross margin percentage of 25.2% compared to 23.3% in 2024 [15][16] - Net loss for 2025 was $948,000 or minus $0.10 per share, improving from a net loss of $1.372 million or minus $0.13 per share in 2024 [16] Business Line Data and Key Metrics Changes - The company reported a solid sequential improvement in Q4 2025 revenue from Q3 2025, which was $3.57 million [11] - The operational items contributing to the annual recurring revenue base of $8 to $9 million are dependent on the customer base, with expectations for growth as the customer base expands [29] Market Data and Key Metrics Changes - The domestic box office revenue saw a 37% increase year-over-year, reaching approximately $2.6 billion in the June quarter, indicating a rebound in consumer demand [5] - The total domestic revenue for 2025 is expected to be approximately $9.4 billion, supported by major year-end releases [5] Company Strategy and Development Direction - The company aims to reduce exposure to business cycles in the cinema equipment industry and seeks to build a more predictable and recurring business [7] - There is a focus on building international channels as part of the strategic growth plan, evaluating complementary products or services to expand geographical reach [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about new business opportunities driven by box office strength and customer commitment to upgrading theater technologies [4][12] - The company is navigating macroeconomic headwinds and expects revenue in the second half of 2026 to be stronger than in the first half [17] Other Important Information - The company has no long-term debt and ended the fiscal year with a net cash position of $5.7 million [16][17] - Cost management initiatives have led to a reduction in operating expenses by 26.5% in Q4 2025 compared to Q4 2024 [15] Q&A Session Summary Question: Size of the funnel of new opportunities compared to the beginning of the year - The funnel of new opportunities continues to grow and evolve, with a positive outlook as customer activity increases [22][23] Question: Update on LEA professional power amplifiers - There is still optimism regarding LEA professional power amplifiers, with ongoing testing processes in larger organizations [24][25] Question: Status of bids for large sports venues - The company is still actively bidding on various projects related to large sports venues [26] Question: Recurring revenue base and its growth - The recurring revenue base consists of operational items dependent on the customer base, with expectations for growth as the customer base expands [29] Question: Margins on recurring revenue compared to corporate average - Margins on recurring revenue are customer-specific and product-specific, generally aligning with the corporate average [30][31] Question: Opportunities outside the U.S. and expected revenue generation - The company is actively pursuing opportunities outside the U.S., but specific timing for meaningful revenue generation cannot be discussed at this point [34][36]

Financial Data and Key Metrics Changes - Q4 2025 revenue declined 7.3% to $5.88 million compared to $6.35 million in Q4 2024 due to reduced customer project activity [14] - Fiscal year 2025 revenue decreased 9.9% to $18.15 million from $20.14 million in 2024, primarily due to reduced customer project activity [16] - Q4 2025 gross profit decreased to $1.2 million from $1.43 million in Q4 2024, with a gross margin of 20.4% compared to 22.5% in Q4 2024 [14] - Fiscal year 2025 gross margin improved to 25.2% from 23.3% in 2024, benefiting from a focus on higher margin products [16] - Q4 2025 operating loss improved to $187,000 from a loss of $462,000 in Q4 2024 [15] - Net loss for fiscal year 2025 was $948,000 or -$0.10 per share, an improvement from a net loss of $1.372 million or -$0.13 per share in 2024 [16] Business Line Data and Key Metrics Changes - The company is focused on enhancing customer experience through technology upgrades, with a positive outlook for new business opportunities driven by box office strength [4][5] - The company’s marketing plan emphasizes brand visibility and driving qualified sales leads through industry trade shows [8] - The company is actively pursuing international channels for long-term growth and evaluating complementary products or services [9] Market Data and Key Metrics Changes - The domestic box office revenue saw a 37% increase year-over-year, reaching approximately $2.6 billion in the June quarter [5] - Total domestic revenue for 2025 is expected to be approximately $9.4 billion, supported by major year-end releases [5] Company Strategy and Development Direction - The company aims to reduce exposure to business cycles in the cinema equipment industry and build a base of more predictable and recurring business [7] - The company is committed to ongoing cost management and cash preservation to navigate the evolving marketplace [12] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about new business opportunities due to a rebound in consumer demand and box office momentum [4] - The company anticipates stronger revenue in the second half of 2026 compared to the first half, largely due to customer project timing [17] Other Important Information - The company’s net cash position grew to $5.7 million at the close of 2025, with no long-term debt [16] - The company is in dialogue with large regional exhibitors for premium cinema equipment over the next 12-24 months [12] Q&A Session Summary Question: Size of the funnel of new opportunities compared to the beginning of the year - The funnel of new opportunities continues to grow and evolve, with a positive outlook as customer activity increases [20][21] Question: Update on LEA professional power amplifiers - The company remains optimistic about LEA professional power amplifiers, with ongoing testing processes in larger organizations [22] Question: Status on bids for large sports venues - The company is still actively bidding on various projects related to large sports venues [23] Question: Recurring revenue base and growth expectations - The recurring revenue base of $8 million - $9 million consists of operational items and is expected to grow as the customer base expands [25] Question: Margins on recurring revenue - Margins on recurring revenue are generally in the middle range, providing a predictable revenue and margin stream [27] Question: Opportunities outside the U.S. - The company is actively pursuing international opportunities but cannot provide specific timing for revenue generation from outside the U.S. [28][29]

Financial Data and Key Metrics Changes - Q4 2025 revenue declined 7.3% to $5.88 million compared to $6.35 million in Q4 2024 due to reduced customer project activity [14] - Gross profit dollars decreased to $1.2 million in Q4 2025 from $1.43 million in Q4 2024, with a gross margin of 20.4% versus 22.5% in Q4 2024 [14] - Fiscal year 2025 revenue declined 9.9% to $18.15 million from $20.14 million in 2024, with an improved gross margin percentage of 25.2% compared to 23.3% in 2024 [15][16] - Net loss for 2025 was $948,000 or minus $0.10 per share, improving from a net loss of $1.372 million or minus $0.13 per share in 2024 [16] Business Line Data and Key Metrics Changes - The company reported a solid sequential improvement in Q4 2025 revenue from Q3 2025, which was $3.57 million [11] - The company is focused on converting identified market opportunities into revenue, particularly in cinema technology upgrades and special projects [6][7] Market Data and Key Metrics Changes - The domestic box office saw a substantial rebound in the June quarter, generating approximately $2.6 billion in revenue, a 37% increase year-over-year [5] - The total domestic revenue for 2025 is expected to reach approximately $9.4 billion, supported by major year-end releases [5] Company Strategy and Development Direction - The company aims to reduce exposure to business cycles in the cinema equipment industry and seeks to build a more predictable and recurring revenue base [6][7] - The marketing plan focuses on building brand visibility and driving qualified sales leads through key industry trade shows [8] - The company is actively identifying and evaluating complementary products or services to expand its geographical reach and enhance long-term growth [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about new business opportunities driven by box office strength and customer demand for technology upgrades [4][5] - The company is navigating macroeconomic headwinds and expects a modest rebound in box office performance, which may delay technology refreshes and investments [11][12] - Management emphasized ongoing cost management and cash preservation to ensure sufficient resources for future growth [12] Other Important Information - The company recorded a Q4 2025 operating loss of $187,000, an improvement from a loss of $462,000 in Q4 2024 [15] - The net cash position grew to $5.7 million at the close of 2025, with no long-term debt [16][17] Q&A Session Summary Question: What is the size of the funnel of new opportunities compared to the beginning of the year? - The funnel of new opportunities continues to grow and evolve, with a positive outlook as customer activity increases [20][21] Question: Update on LEA professional power amplifiers? - The company remains optimistic about LEA professional power amplifiers, which are undergoing a lengthy testing process before being operationally approved [22] Question: Status on bids for large sports venues? - The company is still actively bidding on various projects related to large sports venues [23] Question: Details on the recurring revenue base? - The recurring revenue base consists of operational items dependent on the customer base, with expectations for growth as the customer base expands [25] Question: Are margins on recurring revenue above or below corporate average? - Margins on recurring revenue are generally in the middle, providing a predictable revenue and margin stream [26][28] Question: Opportunities outside the U.S.? - The company is exploring opportunities outside the U.S. but cannot provide specific timing for revenue generation from these efforts [29][30]

Financial Data and Key Metrics Changes - Q4 2025 revenue declined 7.3% to $5.88 million compared to $6.35 million in Q4 2024 due to reduced customer project activity [13] - Gross profit decreased to $1.2 million in Q4 2025 from $1.43 million in Q4 2024, with a gross margin of 20.4% versus 22.5% in Q4 2024 [13] - Fiscal year 2025 revenue declined 9.9% to $18.15 million from $20.14 million in 2024, with an improved gross margin percentage of 25.2% compared to 23.3% in 2024 [15] - The company recorded a net loss of $948,000 or minus $0.10 per share in 2025, improving from a net loss of $1.372 million or minus $0.13 per share in 2024 [15] Business Line Data and Key Metrics Changes - The company experienced a solid sequential improvement in Q4 2025 revenue from $3.57 million in Q3 2025 [10] - Operating expenses were reduced by 26.5% to $1.39 million in Q4 2025 compared to $1.89 million in Q4 2024, achieved through headcount reduction and efficiency improvements [14] Market Data and Key Metrics Changes - The domestic box office revenue saw a 37% increase year-over-year, reaching approximately $2.6 billion in the June quarter, indicating a rebound in consumer demand [4] - The total domestic revenue for 2025 is expected to be approximately $9.4 billion, supported by major year-end releases [4] Company Strategy and Development Direction - The company aims to reduce exposure to business cycles in the cinema equipment industry and seeks to build a more predictable and recurring revenue base [5] - There is a focus on expanding international channels and evaluating complementary products or services to enhance business scope and geographical reach [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about new business opportunities driven by box office strength and customer commitment to upgrading theater technologies [3][5] - The company anticipates that revenue in the second half of 2026 will be stronger than in the first half, with an expected revenue of approximately $4.9 million in Q1 2026 [16] Other Important Information - The company has grown its net cash position to $5.7 million at the close of 2025, with no long-term debt [15] - The company is actively pursuing opportunities outside the U.S. but has not provided specific timelines for revenue generation from these efforts [28][29] Q&A Session Summary Question: Size of the funnel of new opportunities compared to the beginning of the year - The funnel of new opportunities continues to grow and evolve, with a positive outlook as customer activity increases [20] Question: Update on LEA professional power amplifiers - Management remains optimistic about LEA amplifiers, noting that the sales process involves lengthy testing before operational approval [21] Question: Status of bids for large sports venues - The company is still actively bidding on various projects related to large sports venues [22] Question: Details on annual recurring revenue base - The recurring revenue base of $8 to $9 million consists of operational items and is expected to grow as the customer base expands [24] Question: Margins on recurring revenue - Margins on recurring revenue are customer-specific and product-specific, generally aligning with the corporate average [25] Question: Opportunities outside the U.S. - The company is exploring both partnerships and potential employee placements outside the U.S. but has not provided specific timelines for revenue generation [27][29]

Company Performance - Moving iMage Technologies reported a Q4'25 net loss of $156,000, an improvement from a net loss of $416,000 in Q4'24 [6][14] - For FY'25, the company experienced a revenue decline of 9.9% to $18.15 million compared to $20.14 million in FY'24, primarily due to reduced customer project activity [14][10] - The year-end net cash position improved to $5.7 million, or approximately $0.57 per share, compared to $5.3 million, or $0.53 per share, at the end of FY'24 [6][14] Financial Highlights - Q4'25 operating expenses decreased by 26.5% to $1.4 million from $1.9 million in Q4'24, reflecting effective expense management [6][14] - FY'25 gross margin improved to 25.2% from 23.3% in FY'24, indicating a focus on higher margin product opportunities [6][14] - The company secured a contract to install 150 Barco laser cinema projectors over three years for a long-time U.S. film exhibition customer [6] Industry Outlook - The company is cautiously optimistic about FY'26, anticipating a modest increase in cinema technology upgrades to next-generation solutions [10] - There is a significant opportunity for upgrading thousands of auditoriums in the coming years, particularly with laser projection and Direct View LED display technologies [8][10] - The cinema industry is seeing improving box office performances, which is expected to support technology upgrades and new venue developments [3][10]

Group 1 - Moving iMage Technologies will report Q4 and year-end fiscal 2025 results on September 26, 2025, before the market opens and will host an investor call at 11:00 am ET [1] - The company focuses on providing cutting-edge out-of-home entertainment technology and services for various venues including cinema, Esports, stadiums, and arenas [1][3] - Founded in 2003, Moving iMage Technologies offers a range of products and services including integrated systems design, custom engineering, and installation services for entertainment spaces [3][4] Group 2 - The company manufactures a wide array of digital cinema peripherals in the U.S., such as automation systems, projector pedestals, and lighting fixtures [4] - Moving iMage Technologies also distributes and integrates cinema equipment from notable brands including Barco, Christie Digital, and Dolby [4] - The Caddy Products division of the company designs and sells accessories that enhance concession sales and improve the guest experience [6]

Core Insights - Moving iMage Technologies has partnered with Metro Private Cinema to launch a unique 20-screen private screening room facility in New York City, set to open on September 1st, 2025 [1][6] - The facility aims to provide a high-end cinema experience, accommodating groups of 4 to 20, featuring advanced cinema technology and luxurious amenities [3][6] Company Overview - Moving iMage Technologies specializes in out-of-home entertainment technology and services, including cinema, Esports, and stadium solutions, and has been operational since 2003 [9][10] - The company offers a wide range of products and services, including integrated systems design, custom engineering, and installation services for various entertainment environments [9][10] Project Details - The Metro Private Cinema will feature DCI-compliant cinema projection systems and professional-grade audio solutions, including Christie CP2406-RBe laser projectors [4][6] - The auditoriums are designed with giant screens, immersive sound, private dining options, and motorized plush recliners, enhancing the overall moviegoing experience [3][6] Market Positioning - The collaboration between Moving iMage and Metro Private Cinema is positioned to redefine the cinema experience, targeting high-net-worth individuals and groups seeking exclusive entertainment options [6][7] - Metro Private Cinema offers a variety of viewing options, including the latest releases, independent films, sports, and custom events, catering to diverse audience preferences [7][8]

Core Points - Moving iMage Technologies has secured a $9 million contract to install 150 Barco laser projectors over the next three years, indicating a significant technology upgrade for the cinema industry [1][2] - The revenue from this agreement will be recognized evenly over the company's next three fiscal years starting from FY26, with initial installations set to begin in the fall of 2025 [2] - The partnership aims to enhance customer experience and reduce operating costs by transitioning from traditional lamp-based systems to advanced laser projection technology [3] Company Overview - Moving iMage Technologies is a provider of advanced out-of-home entertainment technology and services, focusing on cinemas, esports venues, and other entertainment spaces [1][7] - The company manufactures a wide range of digital cinema peripherals and integrates equipment from various leading brands, including Barco, Christie Digital, and Dolby [8] - Barco, headquartered in Belgium, specializes in visualization and collaboration solutions, with a reported sales figure of 947 million euros in 2024 [5][6]