LightPath Technologies(LPTH) - 2025 Q2 - Quarterly Report

Revenue and Profitability - Revenue for the three months ended December 31, 2024, was $7,424,829, representing an increase from$7,315,637 in the same period of 2023, a growth of approximately 1.5%[15] - Gross profit for the six months ended December 31, 2024, was $4,775,260, compared to$4,500,027 for the same period in 2023, reflecting an increase of about 6.1%[15] - Total revenue for the three months ended December 31, 2024, was $7,424,829, an increase from$7,315,637 in the same period of 2023, representing a growth of 1.5%[15] - Total revenue for the six months ended December 31, 2024, was $15,825,210 compared to$15,392,885 in 2023[45] - Revenue from engineering services significantly increased to $692,687 for the three months ended December 31, 2024, compared to$77,197 in the same period of 2023[45] - For the first half of fiscal 2025, total revenue increased by 3% to $15.83 million compared to$15.39 million in the prior year[183] Losses and Expenses - Operating loss for the three months ended December 31, 2024, was $(2,484,339), compared to$(1,783,329) in the prior year, indicating a deterioration of approximately 39.2%[15] - Net loss for the six months ended December 31, 2024, was $(4,234,742), compared to$(3,056,039) for the same period in 2023, an increase in loss of about 38.5%[15] - The net loss for the three months ended December 31, 2024, was $2,611,997, compared to a net loss of$1,713,663 in 2023, representing a 52.3% increase in losses[67] - Selling, general and administrative expenses for the three months ended December 31, 2024, were $3,356,063, up from$2,858,457 in the same period of 2023, an increase of approximately 17.5%[15] - The total stock-based compensation on stock options, RSUs & RSAs for the six months ended December 31, 2024, was $506,020, compared to$551,853 for the same period in 2023, indicating a decrease of approximately 8.3%[20] Assets and Liabilities - Total current assets as of December 31, 2024, were $15,648,300, slightly up from$15,537,335 as of June 30, 2024[12] - Total liabilities increased to $19,125,253 as of December 31, 2024, compared to$17,887,299 as of June 30, 2024, marking an increase of approximately 6.9%[12] - Cash and cash equivalents decreased to $3,201,066 as of December 31, 2024, from$3,480,268 as of June 30, 2024, a decline of approximately 8.0%[12] - Total stockholders' equity decreased to $26,702,938 as of December 31, 2024, from$30,199,665 as of June 30, 2024, a decline of 11.0%[13] Acquisitions and Strategic Initiatives - The acquisition of Visimid Technologies included a purchase price of $1 million in cash,$1,550,000 in restricted stock, and $150,000 in assumed bank debt, with an earnout contingent on a specific customer contract[34] - The company announced a strategic acquisition of G5 Infrared for approximately$27 million, consisting of $20.25 million in cash and 1,972,531 shares of Class A common stock, with additional earnout consideration of up to$23 million based on revenue and EBITDA targets[98] - The company is transitioning from a component manufacturer to a supplier of imaging subsystems and systems, focusing on engineered solutions and partnerships for optical development[119] - The acquisition of Visimid Technologies in July 2023 aligns with the company's strategy to enhance its capabilities in thermal imaging and night vision applications[109] Cash Flow and Financing - Cash flows from operating activities resulted in a net cash used of $2,437,616 for the six months ended December 31, 2024, compared to a net cash provided of$850,569 for the same period in 2023[21] - Cash provided by financing activities was approximately $2.4 million for the first half of fiscal 2025, reflecting net proceeds from the Bridge Note[165] - The company plans to repatriate a portion of earnings from foreign subsidiaries, with approximately$1.2 million available for repatriation as of December 31, 2024[156] Future Outlook and Market Position - The company is actively seeking additional acquisitions and strategic transactions to expand its business and may need to raise additional funds to pursue these opportunities[97] - Demand for infrared products continues to grow, driven by interest in proprietary materials and the global supply constraints of Germanium[179] - The company expects to recognize approximately $1.1 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements[66]