Minim(MINM) - 2024 Q3 - Quarterly Report

Sales Performance - The company reported net sales of $0 million for the three months ended September 30, 2024, a decrease of$6.7 million or 100% compared to $6.7 million in the same period of 2023[101] - For the nine months ended September 30, 2024, net sales were$0.6 million, down $24.0 million or 97.4$24.6 million in the prior year[101] - The decline in sales is primarily attributed to decreased sales of Motorola branded cable modems and gateways, with sales in this category dropping to $0 from$6.4 million year-over-year[108] - Net sales for September 30, 2024, were $30,000, a decrease of$6,696,000 or 100.0% compared to $24,643,000 for September 30, 2023[111] Profitability - The gross profit for the three months ended September 30, 2024 was negative$2.998 million, compared to a gross profit of $0.207 million in the same period of 2023[105] - Gross margin for the three months ended September 30, 2024, was -44.8$4,400,000 for the nine months ended September 30, 2024, compared to a net loss of $16,500,000 for the same period in 2023[126] Operating Expenses - Total operating expenses for the three months ended September 30, 2024 were$3.724 million, a decrease of $11.6 million or 71.7$16.204 million in the prior year[105] - Selling and marketing expenses decreased to $0 for the three months ended September 30, 2024, down from$2,074,000, representing a 100.0% change[114] - General and administrative expenses decreased by $338,000 or 35.1$625,000 for the three months ended September 30, 2024, compared to $963,000 in 2023[116] - Research and development expenses were$0 for the three months ended September 30, 2024, down from $687,000, a decrease of 100.0$0.2 million as of September 30, 2024, down from $0.7 million on December 31, 2023[98] - Working capital was negative$0.8 million as of September 30, 2024, indicating liquidity challenges[98] - The company has a negative working capital of $800,000 as of September 30, 2024, indicating liquidity concerns[121] - Cash used in operating activities for the nine months ended September 30, 2024, was$3,783,000, reflecting a significant operational challenge[126] Future Considerations - The company is evaluating options related to its liquidity and will continue to monitor costs in relation to sales[99] - The company has approximately $79.4 million in federal net operating loss carryforwards available to reduce future taxable income[136] - The company is classified as a smaller reporting company and is not required to provide detailed market risk disclosures[139] Operating Loss - The operating loss for the three months ended September 30, 2024 was$0.625 million, a significant improvement compared to a loss of $6.722 million in the same period of 2023[105] Revenue Geography - The majority of the company's revenues are generated in North America, with significant declines in sales outside this region due to regulatory variations[108]