Everspin Technologies(MRAM) - 2025 Q1 - Quarterly Report

Revenue Performance - Total revenue decreased by $1.3 million, or 9.0$14.4 million in Q1 2024 to $13.1 million in Q1 2025, primarily due to a decrease in licensing, royalty, patent, and other revenue of$1.5 million[83] - Product sales accounted for $11.0 million, or 84$10.9 million, or 75% in Q1 2024[79] - Licensing, royalty, patent, and other revenue decreased by $1.5 million, or 40.8$3.6 million in Q1 2024 to $2.1 million in Q1 2025[83] - The company generated 60$411,000, compared to $1.5 million in Q1 2024, reflecting a significant decline[77] Expenses - Research and development expenses remained consistent at$3.4 million in both Q1 2025 and Q1 2024, representing 26% and 24% of revenue respectively[88] - General and administrative expenses decreased by $0.2 million, or 4.9$4.0 million in Q1 2024 to $3.8 million in Q1 2025[91] - Sales and marketing expenses increased by$0.2 million, or 14.2%, from $1.3 million in Q1 2024 to$1.5 million in Q1 2025[92] Cash Flow - Cash provided by operating activities was $1.4 million in Q1 2025, compared to cash used of$1.3 million in Q1 2024, reflecting a turnaround in operational cash flow[97] - Non-cash charges in Q1 2025 included stock-based compensation of $1.6 million and depreciation and amortization of$0.8 million, contributing to the positive cash flow from operations despite a net loss of $1.2 million[98] - Cash used in investing activities was$1.4 million in Q1 2025, primarily for $0.9 million in manufacturing equipment and$0.5 million in intangible assets, compared to $1.2 million in Q1 2024 for manufacturing equipment purchases[100] - Cash provided by financing activities was$0.01 million in Q1 2025, a decrease from $0.4 million in Q1 2024, reflecting lower proceeds from employee stock options[101] Liquidity and Capital Requirements - As of March 31, 2025, the company had$42.2 million in cash and cash equivalents, a slight increase from $42.1 million as of December 31, 2024, indicating sufficient liquidity for anticipated capital requirements over the next 12 months[95] - The company anticipates future capital requirements will depend on growth rate, research and development spending, and new product introductions[96] Changes in Assets and Liabilities - Changes in net operating assets and liabilities in Q1 2025 included a$1.1 million increase in accounts payable and deferred revenue, offset by a $1.9 million increase in inventory[98] Accounting and Market Risk - The company has not made any changes to critical accounting policies that would materially impact financial statements since the last annual report[104] - There were no significant market risk disclosures required for the company as a smaller reporting entity[105] Other Income - Other income increased by$0.4 million, or 1,046.3%, from a net expense of $0.04 million in Q1 2024 to a net income of$0.4 million in Q1 2025, primarily due to a strategic award for aerospace and defense manufacturing services[94] - Interest income remained consistent at $0.4 million during Q1 2025 and Q1 2024[93]