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Energy Focus(EFOI) - 2024 Q3 - Quarterly Results
EFOIEnergy Focus(EFOI)2024-11-12 13:28

Financial Performance - Net sales for Q3 2024 were 1.2million,adecreaseof10.71.2 million, a decrease of 10.7% compared to 1.3 million in Q3 2023, driven by a 29.7% decline in commercial sales[2][9] - Net sales for Q3 2024 were 1,196,000,adecreaseof22.91,196,000, a decrease of 22.9% from 1,553,000 in Q2 2024 and an increase of 4.3% from 1,339,000inQ32023[20]−Militarymaritimeproductsgenerated1,339,000 in Q3 2023[20] - Military maritime products generated 846,000 in net sales for Q3 2024, an increase from 841,000inQ32023,whilecommercialsalesdecreasedto841,000 in Q3 2023, while commercial sales decreased to 350,000 from 498,000[23]Profitability−Grossprofitmarginimprovedto15.7498,000[23] Profitability - Gross profit margin improved to 15.7% in Q3 2024, up from a gross loss of (3.6)% in Q3 2023, primarily due to lower fixed costs[3][10] - Gross profit for Q3 2024 was 188,000, compared to a gross loss of 48,000inQ32023,indicatingasignificantimprovementinprofitability[20]−Actualgrossprofitforthequarterwas48,000 in Q3 2023, indicating a significant improvement in profitability[20] - Actual gross profit for the quarter was 188,000, representing a gross margin of 15.7%, compared to a gross margin of 8.1% in the previous quarter[28] - Adjusted gross margin for Q3 2024 was 24.5%, significantly higher than 1.0% in Q3 2023, reflecting improved variable margins[11] - Adjusted gross profit increased to 293,000,reflectingagrossmarginof24.5293,000, reflecting a gross margin of 24.5%, up from 18.3% in the previous quarter[28] Losses and Expenses - Operating loss for Q3 2024 was 0.4 million, an improvement from a loss of 0.9millioninQ32023[4][12]−NetlossforQ32024was0.9 million in Q3 2023[4][12] - Net loss for Q3 2024 was 0.3 million, or (0.06)pershare,comparedtoanetlossof(0.06) per share, compared to a net loss of 0.9 million, or (0.27)pershare,inQ32023[4][12]−ThenetlossforQ32024was(0.27) per share, in Q3 2023[4][12] - The net loss for Q3 2024 was 316,000, a decrease from a net loss of 944,000inQ32023,representinga66.5944,000 in Q3 2023, representing a 66.5% improvement[20] - Adjusted EBITDA for Q3 2024 was (395,000), compared to (937,000)inQ32023,showinga57.8(937,000) in Q3 2023, showing a 57.8% improvement[27] - Total operating expenses decreased to 586,000 in Q3 2024 from 855,000inQ32023,reflectingareductionof31.5855,000 in Q3 2023, reflecting a reduction of 31.5%[20] Cash Flow and Liquidity - Cash balance as of September 30, 2024, was 0.8 million, down from 2.0millionattheendof2023[5][17]−CashusedinoperatingactivitiesforQ32024was2.0 million at the end of 2023[5][17] - Cash used in operating activities for Q3 2024 was (267,000), a decrease from (1,035,000)inQ32023,indicatingimprovedcashflowmanagement[22]−CashattheendofQ32024was(1,035,000) in Q3 2023, indicating improved cash flow management[22] - Cash at the end of Q3 2024 was 819,000, down from 1,691,000attheendofQ32023[22]−NetcashusedinoperatingactivitiesfortheninemonthsendedSeptember30,2024,was1,691,000 at the end of Q3 2023[22] - Net cash used in operating activities for the nine months ended September 30, 2024, was 1.0 million, with a net loss of 1.3millionduringthesameperiod[13]FinancingActivities−Thecompanyraisedapproximately1.3 million during the same period[13] Financing Activities - The company raised approximately 850 thousand through a private placement of 534,591 shares at 1.59pershareinJune2024[6]−Thecompanyissuedcommonstockandwarrantstotaling1.59 per share in June 2024[6] - The company issued common stock and warrants totaling 851,000 in Q2 2024, contributing to financing activities[22] Strategic Initiatives - The company plans to expand its product portfolio by adding high-efficiency GaN power supply products in 2023[14] - The company is focusing on reducing operating expenses and improving gross margins through strategic adjustments in product development and inventory management[24] Liabilities - Total liabilities decreased to 3.2millionasofSeptember30,2024,from3.2 million as of September 30, 2024, from 7.1 million at the end of 2023[18] Inventory Management - Changes in excess and obsolete inventory reserves amounted to $105,000, which is 8.8% of net sales, compared to 10.2% in the previous quarter[28]