Financial Performance - Net sales for fiscal 2025 were $209,896, an increase of $24,363 or 13% compared to fiscal 2024, with $2,778 attributed to the acquisition of P3[158]. - Gross profit for fiscal 2025 was $52,861, reflecting a gross profit margin of 25.2%, which is a 330 basis point improvement over fiscal 2024[158]. - Net income for fiscal 2025 was $12,230, representing a 168% increase from $4,556 in fiscal 2024, with diluted income per share rising to $1.11 from $0.42[158]. - SG&A expenses for fiscal 2025 increased by $5,305 to $38,888, driven by investments in personnel, processes, and technology[158]. - The effective tax rate for fiscal 2025 was 21%, up from 18% in fiscal 2024, primarily due to higher pre-tax income[179]. - Net cash provided by operating activities for fiscal 2025 was $24,316 million, a decrease from $28,120 million in fiscal 2024, primarily due to lower cash from accounts receivable[187]. - As of March 31, 2025, stockholders' equity increased to $119,577 from $105,566 in the prior year[197]. Backlog and Orders - The company reported a funded and unfunded backlog of $412.3 million as of March 31, 2025, compared to $390.9 million as of March 31, 2024, indicating a year-over-year increase of approximately 5.5%[24]. - Backlog at March 31, 2025, was $412,335, a 5% increase from $390,868 at March 31, 2024, with approximately 83% of the backlog related to the Defense industry[158]. - Total orders for fiscal 2025 were $231,112, a decrease of 14% from $268,447 in fiscal 2024, primarily due to record orders in the previous year[201]. - The book-to-bill ratio for fiscal 2025 was 1.1x, indicating a healthy order intake relative to sales[202]. - Significant orders in fiscal 2025 included a $50,000 procurement for the U.S. Navy's Virginia Class Submarine program and a $2,200 strategic investment from a major Defense customer[203]. Market Segmentation - Domestic sales accounted for approximately 81% of total sales in fiscal 2025, with sales to the Defense industry representing 58% of total sales[23]. - In fiscal 2025, sales to the Defense industry accounted for approximately 58% of total sales, up from 25% in fiscal 2021[40]. - Sales to the Energy & Process markets represented approximately 35% of revenue in fiscal 2025, down from 75% in fiscal 2021[40]. - The Defense market accounted for 58% of net sales in fiscal 2025, with sales increasing by $22,432 or 23% compared to fiscal 2024[171]. - The Energy & Process market saw a slight increase in sales of 1%, totaling $73,287, while the Space market increased by 11% to $14,684[171]. Strategic Initiatives - The company aims for an average annualized organic revenue growth of 8% to 10% and low to mid-teen adjusted EBITDA margins by fiscal 2027[26]. - The company completed the acquisition of P3 Technologies, which is expected to diversify market and product offerings and enhance turbomachinery solutions[18]. - The company has transitioned to a diversified business model serving multiple markets, including Defense, Energy & Process, and Space, moving away from a highly cyclical Energy business[26]. - The company is expanding its Batavia, NY campus with a new 30,000 square foot manufacturing facility, funded primarily by a strategic investment from a Defense customer[117]. - The company has initiated construction of a cryogenic testing facility to enhance capabilities, scheduled for completion in Q1 fiscal 2026[145]. Risks and Challenges - Inflation and global supply chain issues have increased the cost of raw materials and labor, impacting financial results, particularly due to fixed-price contracts[36]. - The company is exposed to risks related to customer concentration, particularly with U.S. Navy projects, which could impact revenue if funding is disrupted[47]. - Fixed-price contracts represent a substantial portion of sales, which may lead to difficulties in execution and potential cost overruns[60]. - The company is susceptible to investigations and legal proceedings related to government contracts, which could adversely affect its financial position and operations[70]. - The company faces challenges from competition, as some competitors may have greater resources or cost advantages, potentially impacting market share and profitability[78]. Research and Development - Research and development (R&D) expenditures were $4,039 million in fiscal 2025, with $1,124 million not customer funded[41]. - The company expects R&D spend not funded by customers to increase to 1% to 2% of revenue in the future[41]. Environmental and Regulatory Factors - Environmental costs are not expected to have a material adverse effect on financial performance, although future liabilities cannot be assured[39]. - U.S. government contracts are subject to extensive regulations, and failure to comply may result in financial penalties or contract termination[64]. - The company is subject to export, import, and sanctions laws, and failure to comply could result in fines and regulatory actions[67]. - Climate change regulations may influence customers' investment decisions, potentially reducing demand for the company's products[73]. Workforce and Talent Management - The company maintains a highly skilled workforce and invests in employee development through various training programs[27]. - The company is dependent on a skilled workforce, facing challenges such as labor shortages and increased competition for talent, which could lead to higher operational costs[128]. - The company may experience difficulties in retaining key management and technical personnel due to intense competition in the industry[107]. Cybersecurity and Technology - Cybersecurity threats pose risks to the company's information systems, potentially leading to financial loss and reputational damage[112]. - The company has developed a comprehensive cybersecurity risk management program to protect critical systems and information, overseen by its Audit Committee[135]. - The implementation of a new enterprise resource planning (ERP) system is scheduled to go live in fiscal 2026, with potential risks including operational disruptions and inefficiencies[115].

Revenue Performance - Revenue for fiscal 2025 increased by ₹ 4,252 million ($49.68 million), representing an 11.93% growth compared to fiscal 2024[336] - Network Services revenue grew by ₹ 1,119 million ($13.08 million), primarily due to increased capacity from existing and new customer engagements[337] - Data Center Services revenue increased by ₹ 3,142 million ($36.71 million) due to new contracts and higher capacity utilization by existing customers[338] - Digital Services revenue decreased slightly by ₹ 9 million ($0.11 million), reflecting a 4% decline compared to the previous year[336] - Revenue from Digital Services decreased by ₹9 million ($0.11 million), primarily due to a ₹410 million ($4.79 million) decline in Application Integration Service and a ₹155 million ($1.81 million) decrease in Cloud and Managed Services, partially offset by a ₹556 million ($6.50 million) increase in Network Managed Services revenue[340] Cost and Expenses - Cost of sales as a percentage of revenues decreased from 62.80% in fiscal 2024 to 62.47% in fiscal 2025[335] - Selling, general and administrative expenses increased to 18.66% of revenues in fiscal 2025, up from 18.13% in fiscal 2024[335] - Total cost of sales increased by 11.35% to ₹24,917 million ($299.00 million), with significant increases in Network Services (11.50%), Data Center Services (21.86%), and Digital Services (4.43%) costs[342] - Operating costs rose by ₹496 million ($5.80 million), driven by higher repairs and maintenance and network operating costs, resulting in a total Selling, General and Administrative expense increase of 15.17%[348] Profitability - Profit from operating activities decreased to 5.66% of revenues in fiscal 2025, down from 6.73% in fiscal 2024[335] - Net profit for the year was a loss of ₹ 1,197 million ($14.06 million) in fiscal 2025, compared to a profit of ₹ 1,000 million ($12.00 million) in fiscal 2024[335] - Net profit decreased to a loss of ₹785 million ($9.50 million), a decline of 564.50% compared to the previous year, with a net profit margin of -1.97%[361] Financial Position - As of March 31, 2025, the company had borrowings of ₹39,184 million ($474.00 million), with ₹7,342 million ($88.00 million) due within 12 months[368] - The company reported a negative working capital of ₹1,106 million ($13.00 million) as of March 31, 2025, despite having cash and cash equivalents of ₹4,671 million ($56.00 million)[365] - As of March 31, 2025, cash and cash equivalents totaled ₹4,997 million in bank accounts and ₹1,761 million in bank deposits, with restricted cash deposits amounting to ₹454 million[373] Cash Flow - Net cash generated from operating activities for the year ended March 31, 2025, was ₹8,647 million (US$101.04 million), an increase attributed to higher trade payables and contract liabilities[374] - Net cash used in investing activities for the year ended March 31, 2025, was ₹12,324 million (US$144.00 million), primarily for data center facilities and renewable energy investments[377] - Net cash generated from financing activities for fiscal year 2025 was ₹4,730 million (US$55.27 million), driven by borrowings of ₹12,894 million (US$150.67 million) and proceeds from share issues[381] Capital Expenditure - Capital expenditure for the year ended March 31, 2025, amounted to ₹15,486 million (US$180.95 million), funded through internal accruals and bank borrowings[385] Investments and Agreements - SISL entered into a Debentures Subscription Agreement with KDCF, receiving an investment of ₹6,000 million (approximately US$72.23 million) for data center expansion and renewable energy investments[372] Revenue Recognition - Revenue from data center services is recognized over time as services are performed, with distinct performance obligations[398] - Revenue from digital services, including cloud and managed services, is recognized as related services are performed, with fixed contracts for a specified period[400] - Revenue from Applications Integration Services is recognized over time, measured by the amount of time/effort spent on a project[406] - Revenue from commissions on electronic commerce transactions is recognized upon transaction completion[407] - The Group allocates transaction prices to performance obligations based on relative stand-alone selling prices[409] - Incremental costs of obtaining a contract are recognized as assets and amortized over the contract period if expected to be recovered[411] - Lease rentals from operating leases are recognized on a straight-line basis over the lease term[413] - Upfront payments for Indefeasible Right of Use (IRU) arrangements are treated as deferred revenue, recognized on a straight-line basis over the term[414] Risk Management - Market risk management is conducted through a corporate treasury department that evaluates and controls market risk exposure[723] - The Group's exposure to market risk is influenced by investment and borrowing activities, as well as revenue generation in foreign currencies[723] Other Financial Information - Other operating income decreased by ₹14 million ($0.16 million), mainly due to a ₹66 million ($0.77 million) drop in Miscellaneous income, offset by a ₹52 million ($0.61 million) increase in interest income[341] - EBITDA increased by ₹806 million ($9.66 million) to ₹7,562 million ($91.00 million), reflecting an 11.93% growth due to increased revenue[353] - Depreciation and amortization expenses rose by ₹860 million ($10.05 million) to ₹5,633 million ($68.00 million), an 18.02% increase attributed to the capitalization of new assets[357] - Finance expenses increased by ₹540 million ($6.31 million) to ₹2,744 million ($33.00 million), primarily due to higher interest on borrowings[360] - Contractual cash flow for long-term obligations as of March 31, 2025, is projected at ₹32,144 million (US$375.60 million) over various time frames[384] - Impairment analysis for trade receivables is performed at each reporting date using a provision matrix based on historical loss rates[424] - Deferred tax assets are recognized to the extent that it is probable future taxable profits will be available against which the temporary difference can be utilized[433] - The company does not engage in research and development activities[386]

Financial Performance - Net sales for fiscal 2025 increased 5.5% to a record $757.4 million from $717.7 million in the prior year[12] - Gross profit for fiscal 2025 increased 16.1% to a record $153.8 million from $132.6 million a year earlier, with a gross margin of 20.3% compared to 18.5%[13] - Net loss for fiscal 2025 was $19.5 million, or $0.99 per share, an improvement from a net loss of $49.2 million, or $2.51 per share, in the prior year[15] - Operating income for fiscal 2026 is expected to be between $86 million and $91 million, representing 4.3% to 10.4% year-over-year growth[18] - The company expects fiscal 2026 net sales to be between $780 million and $800 million, representing 3.0% to 5.6% year-over-year growth[18] Cash Flow and Debt Management - Generated cash from operating activities of $45.5 million and reduced net bank debt by $32.6 million to $81.4 million[11] - Interest expense decreased by $4.5 million for fiscal 2025 to $55.6 million from $60.0 million a year ago[14] - The company repurchased 542,134 shares for $4.8 million during fiscal 2025, supported by strong cash generation[17] Assets and Liabilities - Total assets decreased from $1,012,002,000 in 2024 to $957,636,000 in 2025, a decline of approximately 5.4%[28] - Total current liabilities decreased from $404,425,000 in 2024 to $351,025,000 in 2025, a reduction of approximately 13.2%[28] - Total liabilities decreased from $726,892,000 in 2024 to $699,937,000 in 2025, a reduction of approximately 3.7%[28] - The company’s retained earnings fell from $39,503,000 in 2024 to $20,033,000 in 2025, a decrease of approximately 49.3%[28] Operational Costs and Expenses - Cash items impacting net income for the three months ended March 31, 2025 totaled $3,575,000, compared to $1,180,000 in 2024, indicating increased operational costs[32] - Share-based compensation expenses increased to $868,000 in Q1 2025 from $432,000 in Q1 2024[38] - The company incurred new product line start-up costs of $160,000 in Q1 2025, compared to $840,000 in Q1 2024[38] Supply Chain and Geopolitical Challenges - The company has reduced its reliance on Chinese suppliers to less than 25% and is leveraging its North American footprint for further reductions[10] - The company is addressing current geopolitical challenges, specifically tariffs and pricing, to support its competitive position and anticipated future growth[9] - Tariff costs paid for products sold before price increases were effective totaled $4,607,000 in Q1 2025, with no costs reported in Q1 2024[38] - Supply chain disruptions and related costs were recorded as $734,000 in Q1 2024, with no such costs reported in Q1 2025[38] Earnings and EBITDA - GAAP net loss for the three months ended March 31, 2025 was $722,000, compared to a net income of $1,338,000 in 2024, representing a significant turnaround[32] - EBITDA for the twelve months ended March 31, 2025 was impacted by non-cash items totaling $25,029,000, contributing to a net loss of $19,470,000[34] - EBITDA for Q1 2025 was $16,296,000, a decrease from $17,703,000 in Q1 2024, while the twelve-month EBITDA decreased from $58,591,000 to $50,263,000[38] - Non-cash items impacting EBITDA totaled $3,528,000 in Q1 2025, significantly higher than $301,000 in Q1 2024[38]

Financial Performance - Fourth quarter revenue increased by 21% to $59.3 million, driven by strong performance across all markets[6] - Fiscal 2025 net income was $12.2 million, a significant increase from $4.6 million in the prior fiscal year, representing a 168% growth[14] - Adjusted EBITDA for fiscal 2025 was $22.4 million, up 69% from $13.3 million in fiscal 2024, with an adjusted EBITDA margin of 10.7%[14] - For the fourth quarter of fiscal 2025, net sales increased by 21% year-over-year to $59.3 million, while full-year sales rose by 13% to $209.9 million[45] - Gross profit for the fourth quarter was $16.0 million, reflecting a 26% increase compared to the same quarter last year, with a gross margin of 27.0%[45] - Operating profit surged by 262% year-over-year to $5.5 million in the fourth quarter, with an operating margin of 9.3%[45] - Net income for the fourth quarter reached $4.4 million, a 228% increase from the previous year, resulting in a diluted net income per share of $0.40[45] - Net income for the year ended March 31, 2025, was $12,230 million, a significant increase of 168.5% compared to $4,556 million in 2024[49] - Adjusted EBITDA for the year ended March 31, 2025, reached $22,429 million, up 68.9% from $13,285 million in 2024[51] - Net sales for the year ended March 31, 2025, were $209,896 million, up 13.1% from $185,533 million in 2024[51] - The net income margin improved to 5.8% in 2025 from 2.5% in 2024[51] Guidance and Projections - Fiscal 2026 guidance projects revenue between $225 million and $235 million, reflecting a 10% increase at the midpoint compared to fiscal 2025[6] - Fiscal 2026 guidance for net sales is projected between $225 million and $235 million, with a gross margin of 24.5% to 25.5%[26] - Adjusted EBITDA is expected to range from $22 million to $28 million, with capital expenditures estimated at $15 million to $18 million[26] Backlog and Orders - The company reported a record backlog of $412.3 million as of March 31, 2025, a 5% increase year-over-year[24] - Orders for fiscal 2025 totaled $231.1 million, resulting in a book-to-bill ratio of 1.1x[22] - The company emphasizes the importance of tracking orders and backlog as leading indicators of future performance[40] - The book-to-bill ratio is used to assess growth prospects, calculated as net orders divided by net sales[41] Cash Flow and Investments - Cash provided by operating activities for the year was $24.3 million, with cash and cash equivalents increasing to $21.6 million[18] - Capital expenditures for fiscal 2025 were $19.0 million, focused on capacity expansion and productivity improvements[19] - Cash and cash equivalents at the end of the year increased to $21,577 million from $16,939 million, marking a rise of 27.5%[49] - Customer deposits rose to $84,062 million in 2025, an increase of 16.8% from $71,987 million in 2024[47] - The company plans to invest in key organic and inorganic growth opportunities to enhance long-term profitability[3] Margins and Expenses - Gross margin for the fourth quarter expanded by 110 basis points to 27.0%, while fiscal 2025 gross margin increased by 330 basis points to 25.2%[6] - SG&A expenses, including amortization, are projected to be 17.5% to 18.5% of sales, with additional costs related to performance bonuses and ERP conversion included[26][28] Assets and Liabilities - Total assets increased to $264,110 million in 2025 from $233,879 million in 2024, representing a growth of 13.0%[47] - Total liabilities increased to $144,533 million in 2025 from $128,313 million in 2024, reflecting a growth of 12.7%[47] - The company reported a net cash provided by operating activities of $24,316 million for the year, down from $28,120 million in 2024[49] - Adjusted net income for the year ended March 31, 2025, was $13,716 million, compared to $6,796 million in 2024, an increase of 102.5%[53]

Financial Performance - The company reported a significant increase in revenue, with a year-over-year growth of 25% in Q1 2026, reaching $150 million[8] - The company anticipates continued growth, projecting revenue to reach between $600 million and $650 million for the fiscal year 2026, representing a growth rate of approximately 20%[8] - The company reported a net loss of $5 million for the quarter, but expects to achieve profitability by Q4 2026[8] User Growth - User data showed a 30% increase in active users, totaling 1.2 million users on the platform[8] Product Development - New product launches are expected to contribute an additional $50 million in revenue by the end of Q2 2026[8] - The company is investing $20 million in research and development to enhance its data security solutions and introduce innovative features[8] Market Strategy - Market expansion efforts are underway, targeting an increase in market share by 15% in the next 12 months[8] - The company is exploring potential acquisitions to bolster its technology stack and expand its service offerings[8] Operating Expenses - Operating expenses increased by 10% due to higher marketing costs associated with new product launches[8] Risk Factors - Risk factors include potential challenges in customer retention and competition in the data security market, which could impact future growth[8] - The company has experienced rapid growth, but this may not be indicative of future performance, making it difficult to evaluate future prospects[17] - The market for data security solutions must grow for the company to sustain its business growth and operational results[17] - The company has a limited operating history with its Rubrik Security Cloud offering, complicating future operational forecasts[17] - A history of operating losses raises concerns about the company's ability to achieve or maintain profitability[17] - Customer subscription renewals and expansions are critical; failure to secure these could harm operational results[17] - The company faces risks related to the performance and perception of its data security solutions, which could damage its brand and reputation[17] - Reliance on third-party cloud providers poses risks; disruptions could adversely affect business and financial conditions[17] - The competitive nature of the markets requires effective competition; failure to do so could harm financial results[17] - Estimates of market opportunity and growth may prove inaccurate, potentially leading to slower business growth than anticipated[17] - The dual class structure of common stock concentrates voting control, limiting influence on corporate matters and potentially affecting stock price[17]

Financial Performance - Net income for the three months ended March 31, 2025, was $7,735,000, an increase of 64.9% compared to $4,685,000 for the same period in 2024[12] - Total revenue, net of interest expense, increased to $26,863,000 for the three months ended March 31, 2025, up from $23,944,000 in 2024, reflecting a growth of 12.4%[113] - Basic earnings per share for the three months ended March 31, 2025, was $0.53, up from $0.33 in 2024, representing a 60.6% increase[99] - The Company reported net income available to common shareholders of $7.695 million for the three months ended March 31, 2025, compared to $4.685 million in 2024, a 64.3% increase[99] - The return on average assets improved to 1.00% for the three months ended March 31, 2025, compared to 0.67% for the same period in 2024[113] Interest Income and Expenses - Total interest income rose to $46,892,000 in Q1 2025, up 7.4% from $43,555,000 in Q1 2024[12] - Net interest income after provision for credit losses increased to $22,685,000, compared to $19,909,000 in the prior year, reflecting a growth of 13.9%[12] - Interest paid for the three months ended March 31, 2025, was $25,659,000, compared to $23,866,000 for the same period in 2024, reflecting an increase of approximately 7.5%[17] - The net interest margin improved to 3.28% for the three months ended March 31, 2025, compared to 3.10% in 2024[113] Credit Losses and Provisions - The provision for credit losses increased to $1,598,000 in Q1 2025, compared to $1,090,000 in Q1 2024, indicating a rise of 46.5%[12] - The provision for credit losses on loans for the three months ended March 31, 2025, was $1,591 thousand, up from $922 thousand for the same period in 2024, representing a year-over-year increase of 72.6%[51] - The total provision for credit losses, including off-balance sheet credit exposures, was $1,598 thousand for the three months ended March 31, 2025, compared to $1,090 thousand in 2024, marking a 46.6% increase[51] Noninterest Income and Expenses - Noninterest income decreased to $2,580,000 in Q1 2025 from $2,945,000 in Q1 2024, a decline of 12.4%[12] - Total noninterest expense decreased to $14,474,000, down 11.4% from $16,352,000 in the same quarter last year[12] Deposits and Cash - The net change in deposits for the quarter was $98,608,000, compared to $51,228,000 in the same quarter last year, showing a significant increase of 92.5%[16] - Cash and cash equivalents at the end of the period were $214,348,000, compared to $239,791,000 at the end of Q1 2024, reflecting a decrease of 10.6%[16] Securities and Fair Value - The total fair value of securities available-for-sale as of March 31, 2025, was $148,190,000, an increase from $146,349,000 as of December 31, 2024[37] - The total securities available-for-sale as of March 31, 2025, had an amortized cost of $158,364 thousand and a fair value of $148,190 thousand, reflecting a gross unrealized loss of $10,707 thousand[40] - The company's securities available-for-sale with unrealized losses totaled $108,550 thousand as of December 31, 2024, with $10,707 thousand in unrealized losses across 182 securities[45] Loans and Credit Quality - The total loans held-for-investment amounted to $2,727,610 thousand as of March 31, 2025, an increase from $2,629,387 thousand as of December 31, 2024, reflecting a growth of approximately 3.73%[50] - The company continues to receive timely principal and interest payments on its investment-grade rated municipal and corporate bonds, indicating strong credit quality[46] - Total nonaccrual loans as of March 31, 2025, amounted to $6,248,000, an increase from $4,693,000 on December 31, 2024, representing a 33.1% increase[64] Capital and Shareholder Returns - PCB Bancorp's common tier 1 capital ratio was 12.52%, significantly above the minimum requirement of 4.5%[107] - Total capital to risk-weighted assets for PCB Bancorp was 16.25% as of March 31, 2025, exceeding the minimum requirement of 8.0%[107] - Cash dividends declared on common stock increased to $0.20 per share in Q1 2025, up from $0.18 per share in Q1 2024[15] Stock and Compensation - The total share-based compensation expense for the three months ended March 31, 2025, was $230,000, compared to $136,000 for the same period in 2024, reflecting a 68.4% increase[94] - The Company repurchased and retired 14,947 shares of common stock at a weighted-average price of $14.88 per share during the year ended December 31, 2024[90] - For the three months ended March 31, 2025, the Company repurchased 50,676 shares at a weighted-average price of $18.80 per share, with authorization to purchase an additional 527,101 shares[91] Economic and Market Conditions - The Federal Open Market Committee (FOMC) maintained the upper range of the Fed Funds Target Rate at 4.50% as of March 19, 2025, and plans to reduce the monthly redemption cap on Treasury securities from $25 billion to $5 billion starting in April[210] - The Company's deposit portfolio is sensitive to changes in short-term interest rates, although a significant portion consists of non-maturity deposits not directly tied to these rates[211]

Revenue Performance - Total revenue for the first quarter of fiscal 2026 was $65.0 million, representing a 4% year-over-year increase, primarily driven by growth in Ooma Business[78]. - Total revenue for the three months ended April 30, 2025, was $65.029 million, a 4% increase from $62.499 million in the same period of 2024[99]. - Subscription and services revenue from Ooma Business grew 6% year-over-year, mainly due to user growth[78]. - Subscription and services revenue increased by $1.9 million or 3% year-over-year, driven by an increase in AirDial lines and average revenue per core user[100]. - Product and other revenue rose by $0.7 million or 16% year-over-year, primarily due to increased AirDial shipments[101]. Financial Metrics - Adjusted EBITDA for the first quarter was $6.7 million, compared to $5.0 million in the prior year quarter[78]. - The net dollar subscription retention rate remained stable at 99% year-over-year, indicating strong customer retention[81]. - Total gross margin improved to 62%, up from 61% in the prior year quarter[78]. - Gross profit for total revenue was $40.209 million, reflecting a 5% increase from $38.115 million in the prior year[102]. - The gross margin for subscription and services remained consistent at 70% year-over-year[103]. Operating Expenses - Operating expenses for the first quarter totaled $40.3 million, slightly down from $40.9 million in the prior year quarter[98]. - Operating expenses decreased by 1% year-over-year to $40.266 million, with research and development expenses down by 10%[105]. Cash Position - As of April 30, 2025, total cash and cash equivalents were $19.0 million, up from $17.9 million as of January 31, 2025[78]. - As of April 30, 2025, the company had $19.0 million in cash and cash equivalents, sufficient to meet cash needs for at least the next 12 months[109]. - Net cash provided by operating activities was $3.703 million, an increase of $0.1 million year-over-year[110]. - Cash used in investing activities was $1.223 million, a decrease of $0.2 million compared to the previous year[113]. User Metrics - Core users decreased to 1,225 as of April 30, 2025, down from 1,239 a year earlier, with Ooma Business users now comprising approximately 41% of total core users[79]. - Annualized exit recurring revenue (AERR) grew to $234.0 million, up from $227.6 million year-over-year, driven by an increase in average revenue per core user[79][80]. Debt and Financing - The company entered into a secured revolving credit facility allowing borrowing up to $30.0 million, potentially increased to $50.0 million[115]. Net Loss - GAAP net loss narrowed to $0.1 million, compared to a net loss of $2.1 million in the prior year quarter, reflecting operational improvements[78].

Revenue Performance - Total revenues increased by approximately $1.4 million, or 18.6%, to $9.1 million for the year ended December 31, 2024, compared to $7.7 million for 2023[175]. - Casual mobile gaming revenue surged to $4.4 million in 2024 from $0.7 million in 2023, reflecting a growth of approximately $3.7 million, or 528.6%[178]. - In-person experience revenue decreased by $0.3 million, or 6.0%, to $4.7 million in 2024 from $5.0 million in 2023[176]. - Multiplatform content revenues dropped by approximately $2.0 million, or 100%, to $0 in 2024 due to the absence of the live streaming event "Elevated" that occurred in 2023[177]. Expenses and Losses - General and administrative expenses rose by approximately $5.8 million, or 76%, to $13.4 million in 2024, primarily due to increased payroll costs and professional fees[184]. - Impairment of goodwill was approximately $9.6 million for 2024, compared to $0 for 2023, indicating a significant decline in the fair value of a reporting unit[186]. - Research and development expenses increased to $866 thousand in 2024 from $163 thousand in 2023, driven by costs related to new casual mobile game development[182]. - For the years ended December 31, 2024 and 2023, the company incurred net losses of approximately $22.6 million and $3.6 million, respectively, with net cash used in operations of approximately $9.8 million and $8.1 million[196][200]. - The increase in net cash used in operating activities from 2023 to 2024 was approximately $1.7 million, primarily due to the increase in net loss[200]. Cash and Investments - Interest income increased by approximately $0.7 million, or 24%, to $3.7 million in 2024, attributed to interest earned on new investments[193]. - Current assets grew to $94.7 million in 2024 from $78.3 million in 2023, while current liabilities increased to $30.5 million from $12.0 million[195]. - As of December 31, 2024, the company had cash and cash equivalents of approximately $59.2 million, with working capital of approximately $64.3 million[196]. - Net cash provided by investing activities for the year ended December 31, 2024 was approximately $23.8 million, significantly higher than $6.1 million in 2023[201][202]. - Net cash provided by financing activities for the year ended December 31, 2024 was approximately $23.9 million, compared to $7.1 million in 2023[203][204]. Capital Management - The company had no material commitments for capital expenditures as of December 31, 2024[206]. - The stock repurchase program authorized by the Board allows for the repurchase of up to $10.0 million of common stock, with $7,305,926 available as of December 31, 2024[207]. - The total number of shares repurchased during the years ended December 31, 2024 and 2023 was 514 and 1,698,038, respectively, at an average price of $1.23 per share[207]. - Cash requirements for current liabilities include approximately $25.8 million for loans payable and $2.5 million for accounts payable and accrued expenses[196]. - The company intends to meet its cash requirements from its current cash and cash equivalents balance[196].

Business Combination and Acquisitions - The company completed a business combination with Alternus Energy Group Plc on December 22, 2023, issuing 2,300,000 shares of common stock [271]. - The company aims to expand its portfolio by acquiring utility-scale clean energy projects and entering complementary market segments through M&A or strategic partnerships [287]. - The company entered into an asset purchase agreement with LiiON LLC for the acquisition of certain assets related to LiiON's Battery Storage Business, but the agreement was rescinded on April 29, 2025 [322][323]. - The company allocates the purchase price of acquired renewable energy facilities to tangible assets, intangible assets, non-controlling interests, and working capital based on their fair values [380]. - The analysis of acquisitions uses income approach valuation methodology, considering market conditions, energy production estimates, and operating costs [381]. Financial Performance - Revenue for the year ended December 31, 2024, was $10.12 million, a decrease of $20.4 million (67%) compared to $30.52 million in 2023 [311]. - The Company reported a net income of $21.08 million for the year ended December 31, 2024, compared to a net loss of $69.46 million in 2023 [309]. - The total megawatt hours (MWh) sold for the year ended December 31, 2024, was 48,247 MWh, down from 165,463 MWh in 2023, representing a decrease of 70% [308]. - The gross margin for the year ended December 31, 2024, was 17% of sales, compared to 63% for the same period in 2023 [316]. - The Company’s operating expenses for the year ended December 31, 2024, totaled $16.57 million, an increase from $13.77 million in 2023 [309]. - The Company experienced a loss from continuing operations of $24.75 million for the year ended December 31, 2024, compared to a loss of $32.61 million in 2023 [309]. - The Company’s discontinued operations reported a total revenue of $9.81 million in 2024, down from $27.04 million in 2023, a decrease of $17.23 million (64%) [311]. - The Company’s cost of revenues for the year ended December 31, 2024, was $4.52 million, a decrease of $4.17 million (48%) from $8.69 million in 2023 [315]. - Selling, general and administrative expenses for continuing operations increased by $7.1 million, or 143%, for the year ended December 31, 2024, driven by higher audit, consulting, legal, and listing costs [320]. - Total selling, general, and administrative expenses for the period increased by $2.3 million, or 21%, compared to the previous year [319]. Cash Flow and Financing Activities - The net cash used in operating activities for the year ended December 31, 2024 was $(3,222) thousand, a decrease of $6,261 thousand compared to 2023 [371]. - The net cash provided by discontinued operating activities increased by $85.4 million, primarily due to a gain of $55.0 million from the sale of operating parks [373]. - The net cash used in continuing investing activities increased by $1.0 million, attributed to construction costs for parks in the US and project developments in Italy and Spain [374]. - The net cash provided by continuing financing activities decreased by $19.9 million, mainly due to a net decrease of $13.8 million in new debt [376]. - The Company issued a senior convertible note of $2,160,000 with an 8% original issue discount, receiving gross proceeds of $2,000,000 [358]. - The Company entered into a Purchase Agreement for senior convertible notes totaling $2,500,000, with a 12% original issue discount, and received gross proceeds of $700,000 [359]. Operational Challenges and Concerns - The company operates with a working capital deficiency and negative equity, raising concerns about its ability to continue as a going concern without planned financing [274]. - The company expects inflation and energy rate fluctuations to significantly affect its results of operations [289]. - The company is currently addressing going concern issues and is working with global banks to secure project financing for its business plan [352]. Market and Risk Factors - The company utilizes annual recurring revenues as a key metric, reflecting long-term stability, based on estimated future revenue from solar parks [272]. - The company has a competitive advantage through its fully integrated clean energy provider model, managing the entire renewable energy value chain [276]. - The company expects to secure strong cash flows via long-term feed-in tariff contracts, allowing for high leverage capacity and flexibility in debt structuring [294]. - The company is exposed to foreign currency risk due to transactions and borrowings in foreign currencies, which affects its financial statements when translated into U.S. dollars [386]. - Interest rate risk arises from fluctuations in interest rates affecting the value of investments and financing activities, with the company monitoring the ratio of fixed and floating rate instruments [389]. Asset Management and Impairment - Impairment loss recognized for continuing operations increased by $3.3 million for the year ended December 31, 2024, primarily due to expected losses on the disposal of Spanish assets [341]. - Impairment losses are recognized if future estimated undiscounted cash flows from an asset are less than its carrying value, with fair values determined through various valuation methods [384]. Tax and Regulatory Matters - Corporate tax expense for continuing operations increased by $0.6 million for the year ended December 31, 2024, reflecting penalties for late tax filings [338]. - Recent accounting pronouncements may impact the company's financial position and results of operations, as disclosed in the significant accounting policies [394].

Business Combination and Acquisitions - The company completed a business combination with Alternus Energy Group Plc on December 22, 2023, issuing 2,300,000 shares of common stock [272]. - The company aims to expand its portfolio by acquiring utility-scale clean energy projects across multiple geographies, enhancing long-term recurring revenue and cash flow [288]. - The Company entered into an asset purchase agreement with LiiON LLC for the acquisition of certain assets related to LiiON's Battery Storage Business, although the agreement was later rescinded [323][324]. Financial Performance - Revenue for the year ended December 31, 2024, was $10.12 million, a decrease of $20.4 million (67%) compared to $30.52 million in 2023 [312]. - The Company reported a net income of $21.08 million for the year ended December 31, 2024, compared to a net loss of $69.46 million in 2023 [310]. - The total megawatt hours (MWh) sold for the year ended December 31, 2024, was 48,247 MWh, down from 165,463 MWh in 2023, reflecting a decrease of 70% [309]. - The gross margin for the year ended December 31, 2024, was 17% of sales, compared to 63% for the same period in 2023 [317]. - The Company’s operating expenses increased to $16.57 million in 2024 from $13.77 million in 2023, primarily due to impairment losses and increased administrative costs [310]. - Revenues from the United States increased by 168% to $311,000 in 2024, while revenues from Italy dropped to zero from $3.36 million in 2023 [312]. - The Company experienced a significant decrease in revenues from discontinued operations, totaling $9.81 million in 2024, down 64% from $27.04 million in 2023 [312]. - The Company’s cost of revenues for the year ended December 31, 2024, was $4.52 million, a decrease of 48% from $8.69 million in 2023 [316]. Operational Challenges - The company operates with a working capital deficiency and negative equity, raising concerns about its ability to continue as a going concern without planned financing [275]. - The company expects inflation and energy rate fluctuations to significantly impact its results of operations [290]. - The Company is currently addressing going concern issues and working with global banks to secure project financing [353]. Strategic Focus and Growth - The company is focused on forming strategic partnerships and pursuing acquisitions in high-growth areas like battery storage to diversify revenue streams [285]. - The company’s growth strategy includes optimizing financing sources to support long-term growth and profitability in a cost-efficient manner [295]. Debt and Financing - The company has a project-level debt comprising 62.2% of total liabilities as of December 31, 2024, with interest rates ranging from 6% to 30% [297]. - Total debt as of December 31, 2024, was $30.344 million, down from $32.312 million in 2023 [348]. - Cash and cash equivalents decreased to $161,000 as of December 31, 2024, from $4.042 million in 2023 [348]. - The Company eliminated approximately $115 million in debt related to Solis activities following its sale on October 3, 2024 [350]. - The Company issued a senior convertible note of $2,160,000 with an 8% original issue discount, receiving gross proceeds of $2,000,000 [359]. - The Company entered into a Purchase Agreement for senior convertible notes totaling up to $2,500,000, with a 12% original issue discount, and received gross proceeds of $700,000 [360]. Cash Flow and Expenses - The net cash used in operating activities for the year ended December 31, 2024 was $(3,222) thousand, a decrease of $6,261 thousand compared to 2023 [372]. - Net cash provided by discontinued operating activities increased by $85.4 million, primarily due to a gain of $55.0 million from the sale of operating parks [374]. - Net cash used in investing activities increased by $1.0 million, attributed to costs for construction parks and project development [375]. - Net cash provided by financing activities decreased by $19.9 million, mainly due to a net decrease of $13.8 million in new debt [377]. - The Company incurred operating lease expenses of $126 thousand for the United States office lease and $48 thousand for the land lease in Madrid, Spain for the year ended December 31, 2024 [369]. Impairment and Losses - Impairment loss recognized for continuing operations increased by $3.3 million for the year ended December 31, 2024, reflecting expected loss on the disposal of Spanish assets [342]. - Net loss for continuing operations decreased by $7.9 million for the year ended December 31, 2024, attributed to a decrease in cost of revenues and other expenses [344]. - Net loss for discontinued operations decreased by $82.7 million for the year ended December 31, 2024, primarily due to a gain of $53.0 million from the sale of operating parks [345]. Currency and Interest Rate Risks - The company is exposed to foreign currency risk due to transactions and borrowings in foreign currencies, impacting its financial statements when translated into U.S. dollars [387]. - The company manages currency risk by transacting in currencies where it incurs operating expenses and matching borrowings to expected operational currency generation [388]. - Interest rate risk arises from fluctuations in interest rates affecting the value of investments and financing activities, with the company monitoring the ratio of fixed and floating rate instruments [390]. - The company believes its interest rates on borrowings are favorable compared to market rates [391]. Company Classification - The company qualifies as an "emerging growth company" and has elected to use the extended transition period for new accounting standards [392]. - The company expects to remain an emerging growth company until it exceeds $1.235 billion in annual revenue or meets other specified criteria [393]. - The company is classified as a "smaller reporting company" and will maintain this status until certain market value and revenue thresholds are met [394].