Financial Performance - Total revenues for the quarter ending September 30, 2024, were 4,197,053,adecreaseof124,202 or 2.9% compared to 4,321,255forthesameperiodintheprioryear[62].−RevenuefromEngineeringDesignServicesdecreasedby2.61,851,371, while revenue from Optical Components increased by 9.3% to 2,080,188[62][63].−RevenuefromFinishedProductsandAssembliesdecreasedby48.6265,494, primarily due to a manufacturing pause for a defense/aerospace customer[64]. - Gross profit decreased to 1,117,330,withagrossmarginof26.6187,901 to 400,659, reflecting investments in product improvements and new technologies[66]. - Selling, General and Administrative (SG&A) expenses rose by 18.6% to 1,963,612, driven by increased recruitment and consulting costs[67]. Cash Flow and Financing - Net cash used in operating activities for the three months ending September 30, 2024, totaled 318,622,includinganetlossof1,311,247[70]. - The company raised a net of 1,204,542throughtheissuanceofnewsharesinaregistereddirectcommonstockofferingduringthequarter[73][76].−ContractualcashcommitmentsrelatedtoopenpurchaseordersasofSeptember30,2024,amountedtoapproximately4,549,000[78]. Strategic Focus - The company is focusing on developing new optical products and services, particularly in Microprecision optics and single-use endoscopes, which are expected to grow at two to three times the rate of the overall minimally invasive surgical market[56]. Regulatory Classification - The company is classified as a smaller reporting company under Rule 12b-2 of the Exchange Act[80]. - The company has elected scaled disclosure reporting obligations, thus not required to provide certain market risk information[80].
