Financial Performance - Net revenues increased by 1.8% from 5.3millioninQ32023to5.4 million in Q3 2024, but decreased by 11.9% from 16.6millionintheninemonthsendedDecember31,2023to14.6 million in the same period in 2024[113]. - Gross profit decreased by 1.8% from 3.0millioninQ32023to2.9 million in Q3 2024, and by 25.4% from 9.2millionintheninemonthsendedDecember31,2023to6.8 million in the same period in 2024[117]. - Net loss was 6.6millioninQ32023comparedto4.0 million in Q3 2024, and 15.8millionintheninemonthsendedDecember31,2023comparedto8.4 million in the same period in 2024[124]. Revenue Sources - Revenue is primarily generated from Very Fast SRAM products, with direct and indirect sales to networking and telecommunications OEMs accounting for 32% to 49% of net revenues over the last three fiscal years[100]. - Nokia was the largest end user customer, representing approximately 14% of net revenues in the nine months ended December 31, 2024, down from 29% in fiscal 2022[105]. Cash and Cash Equivalents - The company reported cash and cash equivalents of 15.1millionasofDecember31,2024,withnodebt[98].−CashandcashequivalentsasofDecember31,2024were15.1 million, up from 14.4millionasofMarch31,2024[125].−Thecompanyhascashandcashequivalentstotaling15.1 million as of December 31, 2024, primarily invested in money market funds for working capital purposes[140]. Operating Expenses - Operating expenses were reduced by approximately 3.5milliononanannualizedbasis,resultingina162.7 million in Q3 2023 to 3.0millioninQ32024[120].−Researchanddevelopmentexpensesdecreasedby42.17.0 million in Q3 2023 to 4.0millioninQ32024,primarilyduetoadecreaseinpre−productionmaskcosts[118].FutureOutlook−Thecompanyanticipatescontinuedinflationarypressuresandgeopoliticaltensionswillnegativelyimpactfinancialperformanceinfiscal2025andbeyond[98].−Thecompanyhasexperiencedincreasedcostsduetoinflationandsupplychainconstraints,affectingthecostofrevenues[106].−Futurecapitalrequirementswilldependonfactorssuchasrevenuegrowth,manufacturingcostincreases,andspendingtosupportproductdevelopmentandsalesexpansion[131].−Thecompanymayrequireadditionalcapitalforpotentialacquisitionsofbusinesses,products,ortechnologies[131].ContractsandAgreements−Thecompanyexpectstoreceivemilestonepaymentstotalinganestimated1.25 million under a prototype agreement with the Space Development Agency for the development of APU2[95]. - The company received payments of 124,000and157,000 under two separate contracts during the nine months ended December 31, 2024[95][97]. Financial Activities - Net cash used in operating activities was 11.3millionfortheninemonthsendedDecember31,2024,comparedto10.2 million for the same period in 2023[126]. - Net cash provided by investing activities was 11.4millionintheninemonthsendedDecember31,2024,comparedto2.8 million in the same period in 2023[129]. - Net cash provided by financing activities in the nine months ended December 31, 2024 was 622,000,downfrom1.6 million in the same period in 2023[130]. Accounting and Risk Management - The company completed its annual goodwill impairment test with no impairment noted, maintaining a goodwill balance of $8.0 million[111]. - The company has no off-balance sheet arrangements or relationships with unconsolidated entities, mitigating exposure to financing, liquidity, market, or credit risk[136]. - The company does not currently enter into forward exchange contracts to hedge foreign currency exposure, which is minimal due to most revenues and expenses being denominated in U.S. dollars[139]. - A hypothetical 100 basis point change in interest rates is not expected to materially affect the fair value of the company's interest-sensitive financial instruments[140]. - The company has disclosed critical accounting estimates in its Annual Report on Form 10-K for the fiscal year ended March 31, 2024[134].
