Moving iMage Technologies(MITQ) - 2025 Q2 - Quarterly Report

Financial Performance - Net sales increased by 5.4% to $3.441 million for the three months ended December 31, 2024, compared to$3.265 million for the same period in 2023[99] - Gross profit rose by 23.3% to $0.936 million for the three months ended December 31, 2024, up from$0.759 million in 2023, with gross profit percentage increasing to 27.2% from 23.2%[101] - Net loss reduced to $(0.527) million for the three months ended December 31, 2024, compared to a net loss of$(0.794) million for the same period in 2023, reflecting a loss reduction of $0.267 million[109] - Revenue decreased by 12.2$2.307 million, down from $2.578 million in the same period of 2023, a decrease of$0.271 million[113] - Net loss increased to $(0.552) million for the six months ended December 31, 2024, compared to a net loss of$(0.355) million in the same period of 2023, an increase of $(0.197) million[122] Expenses Management - Research and development expenses decreased by 35$0.047 million for the three months ended December 31, 2024, compared to $0.072 million in 2023 due to headcount reduction[103] - Selling, general and administrative expenses decreased by 4.4$1.450 million for the three months ended December 31, 2024, down from $1.517 million in 2023[105] - Research and development expenses decreased by$0.030 million or 21.6% to $0.109 million for the six months ended December 31, 2024, attributed to headcount reduction[115] - Selling, general and administrative expenses decreased by$0.059 million or 2.0% to $2.827 million for the six months ended December 31, 2024, also due to headcount reduction and lower compensation expenses[117] Cash Flow and Liquidity - Cash balance at December 31, 2024, was approximately$5.316 million, up from $5.278 million at June 30, 2024[123] - Net cash provided by operating activities increased by$1.402 million for the six months ended December 31, 2024, primarily due to cost reductions and lower inventory levels[124] - No cash was used in investing activities for the six months ended December 31, 2024, compared to $(0.012) million for equipment purchases in the same period of 2023[125] - No cash was used in financing activities for both the six months ended December 31, 2024, and December 31, 2023[126] - Company believes existing sources of liquidity will be sufficient to fund operations for at least 12 months from the date of financial statement issuance[123] Strategic Initiatives - The company plans to selectively invest in expanding operations and expects total operating expenses to decrease in the foreseeable future[89] - The company aims to increase marketing expenditures to enhance brand recognition for its proprietary products[91] - The introduction of new products, including a multi-language compliance system and Direct View LED screens, is expected to improve gross margins[92] - The company anticipates sufficient cash generation to sustain operations as the industry recovers from recent challenges[88] Profitability Metrics - Gross profit margin increased to 26.5% from 26.0% due to higher margin revenues despite the decrease in gross profit[113]