Financial Performance - Total net revenue for the three months ended December 31, 2024, was 3.8million,a13.8 million in the same period of 2023[113]. - Subscription and perpetual licenses revenue was 3.1million,accountingfor800.7 million, representing 20% of total revenue, up from 18% in the previous year[117]. - Gross profit for the three months ended December 31, 2024, was 2.5million,withagrossprofitmarginof673.0 million, down 4% from 3.2millioninthesameperiodlastyear[132].−Lossfromoperationsimprovedto(0.5) million for the three months ended December 31, 2024, compared to (0.6)millionin2023[131].−AdjustedEBITDAforthethreemonthsendedDecember31,2024,was(0.2) million, a decline of 65% from (0.1)millioninthesameperiodof2023[134].−AdjustedEBITDAforthethreemonthsendedDecember31,2024,was(193) thousand, compared to (117)thousandforthesameperiodin2023,indicatingadeclineinoperatingperformance[139].−Thecompanyincurredanetlossof(634) thousand for the three months ended December 31, 2024, compared to a net loss of (622)thousandforthesameperiodin2023[139].CashFlowandInvestments−Cashprovidedbyoperatingactivitieswas0.2 million for the three months ended December 31, 2024, a significant improvement from cash used in operating activities of (0.9)millionforthesameperiodin2023[140].−Cashusedininvestingactivitieswas(5) thousand for the three months ended December 31, 2024, while there was no cash used in investing activities for the same period in 2023[141]. Customer and Revenue Recognition - The company currently has over 2,000 active customers, with no single customer exceeding 10% of total revenue[111]. - The company recognizes revenue from software licenses and digital engagement services, with revenue recognized when control of services is transferred to customers[149][150]. Cost Management and Future Planning - The cost of subscription and perpetual licenses was 29% of revenue for the three months ended December 31, 2024, compared to 27% in 2023[120]. - The company plans to maintain tight control over discretionary spending for the 2025 fiscal year to support future revenue growth[142]. - The company is evaluating future financing options, including the potential filing of a new shelf registration statement to replace the existing one set to expire on March 4, 2025[144]. - The company has historically incurred operating losses and has relied on cash on hand and financing activities to fund operations and develop new products[142]. Liabilities and Obligations - The company recognized a loss of 114thousandrelatedtothechangeinfairvalueofwarrantliabilitiesforthethreemonthsendedDecember31,2024[133].−Thegrossobligationsforoperatingleasestotal0.1 million, all expected to be paid in the next twelve months[146]. - Debt payments on various obligations total 0.4million,with0.2 million expected to be paid in the next twelve months[146].
