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Energy Focus(EFOI) - 2023 Q4 - Annual Results
EFOIEnergy Focus(EFOI)2024-03-21 22:10

Financial Performance - Net sales for 2023 were 5.7million,adecreaseof4.25.7 million, a decrease of 4.2% from 6.0 million in 2022, with military and maritime market sales increasing to 4.1million,or72.14.1 million, or 72.1% of total sales[5][7][6] - Net loss for 2023 was 4.3 million, or (1.32)pershare,significantlyimprovedfromanetlossof(1.32) per share, significantly improved from a net loss of 10.3 million, or (8.88)persharein2022[5][9]−Fourthquarter2023netsaleswere(8.88) per share in 2022[5][9] - Fourth quarter 2023 net sales were 2.4 million, a 260.9% increase from 0.7millioninthefourthquarterof2022,drivenbymilitarysales[12]−ThenetlossforQ42023was0.7 million in the fourth quarter of 2022, driven by military sales[12] - The net loss for Q4 2023 was (849,000), an improvement from (4,293,000)inQ42022[35]−TotalnetsalesforQ42023reached(4,293,000) in Q4 2022[35] - Total net sales for Q4 2023 reached 2,393,000, a significant increase from 663,000inQ42022,representingagrowthof261.5663,000 in Q4 2022, representing a growth of 261.5%[35] Profitability and Margins - Gross profit margin improved to 3.9% in 2023, up from a negative margin of (5.3)% in 2022, primarily due to cost reduction efforts[5][8] - Adjusted gross margin for the fourth quarter of 2023 was 7.0%, compared to (55.8)% in the fourth quarter of 2022, reflecting lower costs and higher sales[14] - Reported gross profit for Q4 2023 was 75,000, with a gross margin of 3.1%, compared to a gross loss of (238,000)andamarginof(35.9(238,000) and a margin of (35.9%) in Q4 2022[35] - Adjusted gross margin for Q4 2023 was 168,000, representing 7.0%, compared to (370,000)and(55.8(370,000) and (55.8%) in Q4 2022[35] Cost Management - Operating loss for 2023 was 4.0 million, improved from a loss of 9.3millionin2022,duetosignificantcost−cuttingmeasures[5][9][15]−Totaloperatingexpensesdecreasedto9.3 million in 2022, due to significant cost-cutting measures[5][9][15] - Total operating expenses decreased to 840,000 in Q4 2023 from 855,000inQ32023and855,000 in Q3 2023 and 1,786,000 in Q4 2022, reflecting a reduction in costs[27] - The company incurred a total net cash used in operating activities of 69,000inQ42023,asignificantimprovementfrom69,000 in Q4 2023, a significant improvement from 1,035,000 in Q3 2023[28] Cash and Liquidity - Cash position improved to 2.0millionasofDecember31,2023,comparedto2.0 million as of December 31, 2023, compared to 52 thousand at the end of 2022[5][11] - The company reported a cash increase of 339,000inQ42023,contributingtoatotalcashbalanceof339,000 in Q4 2023, contributing to a total cash balance of 2,030,000 at the end of the period[30] - Cash on hand increased to 2,030,000asofDecember31,2023,comparedto2,030,000 as of December 31, 2023, compared to 52,000 in the same period last year[35] - Total availability as of December 31, 2023, was 2,030,000,upfrom2,030,000, up from 1,691,000 as of September 30, 2023[35] Equity and Liabilities - Total liabilities decreased to 7,149,000asofDecember31,2023,downfrom7,149,000 as of December 31, 2023, down from 8,975,000 in 2022, indicating improved financial health[25] - Stockholders' equity improved to 3,051,000inQ42023,comparedtoadeficitof3,051,000 in Q4 2023, compared to a deficit of 477,000 in Q4 2022, showing a positive shift in equity position[25] Strategic Initiatives - The company plans to introduce high-efficiency GaN power supply products to its portfolio in 2023[19] - Strategic investments in 2023 resulted in net proceeds of 6.1millionthroughprivateplacementsandconversionofpromissorynotes[5]−ThecompanyisexploringemergingmarketssuchastheGulfCooperationCouncil(GCC)andCentralAsiaforbusinessexpansion[4]−Thecompanyplanstocontinuefocusingonimprovingoperationalperformanceandliquiditythroughstrategicadjustmentsandcostmanagement[34]MarketPerformance−Militarymaritimeproductssalessurgedto6.1 million through private placements and conversion of promissory notes[5] - The company is exploring emerging markets such as the Gulf Cooperation Council (GCC) and Central Asia for business expansion[4] - The company plans to continue focusing on improving operational performance and liquidity through strategic adjustments and cost management[34] Market Performance - Military maritime products sales surged to 2,061,000 in Q4 2023, up from 841,000inQ32023and841,000 in Q3 2023 and 313,000 in Q4 2022, highlighting strong demand in this segment[31] - The weighted average shares of common stock outstanding increased to 4,349,000 in Q4 2023 from 3,514,000 in Q3 2023, reflecting the impact of the reverse stock split[27] - Interest expenses for Q4 2023 were 154,000,upfrom154,000, up from 34,000 in Q3 2023[35]