UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ________________ Commission File Number: 001-41141 GLUCOTRACK, INC. (Exact name of registrant as specified in its charter) Delaware 98-0668934 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 301 Route 17 North, Suite 800 Rutherford, ...

Financial Performance - Cash earnings for the three months ended March 31, 2025, were a loss of $490,000 compared to a loss of $271,000 for the same period in 2024, indicating a worsening of 80.8%[12] - The Trust's administrative expenses increased to $532,000 in the first quarter of 2025 from $338,000 in the same quarter of 2024, marking a rise of 57.5%[12] - There were no royalty revenues distributed in either the first quarter of 2025 or the first quarter of 2024, resulting in a cash loss of $490, an increase of 80.8% from the previous year[83] - The average Per Barrel Royalty for the fourth quarter of 2024 was negative $23.19, primarily due to increased Adjusted Chargeable Costs and decreased Average WTI Price[80] Asset and Liability Changes - As of March 31, 2025, total assets decreased to $3,669,000 from $4,159,000 as of December 31, 2024, representing a decline of approximately 11.8%[10] - The Trust corpus at the end of the period was $3,081,000, down from $4,475,000 at the end of the same period in 2024, reflecting a decrease of 31.1%[15] - The Trust's total liabilities increased to $588,000 as of March 31, 2025, compared to $532,000 as of December 31, 2024, an increase of 10.5%[10] Revenue and Royalty Issues - No royalty revenues were recorded for the quarters ended in 2023, 2024, and the first quarter of 2025, leading to a total of zero revenues for these periods[30] - The Trust did not receive any revenues attributable to any of the four quarters of 2023 and 2024, leading to its termination on December 31, 2024[48] - The Trust has not received any revenues from the Royalty Interest since the first quarter of 2021 until July 2021, when it received approximately $3.2 million[60] Termination and Future Outlook - The Trust's termination process commenced on December 31, 2024, due to the absence of revenues for two consecutive years[25] - The Trust's termination process will incur costs related to professional evaluations, legal fees, and other necessary expenses[63] - HNS's average net production of oil and condensate allocated to the Trust was less than 90,000 barrels per day from 2020 through the first quarter of 2025, and is expected to remain below this threshold in future years[69] Oil Price and Production Insights - For the quarter ended March 31, 2025, the average WTI price was $71.50, while average adjusted chargeable costs were $98.89, resulting in an average per barrel royalty of $(29.85)[52] - The average WTI crude oil spot price for the fourth quarter of 2024 was $70.32, a decrease of 10.4% compared to $78.47 in the fourth quarter of 2023[80] - The average net production from the 1989 Working Interest declined by 4.9% from 67.9 mb/d in the fourth quarter of 2023 to 64.6 mb/d in the fourth quarter of 2024[80] - The U.S. Energy Information Administration forecasts WTI prices to average $60.85 per barrel in Q2 2025 and $58.00 per barrel in Q3 2025[73] Cash Reserves and Distributions - The Trust has not made any cash distributions since the first quarter of 2023, maintaining a cash reserve to cover administrative expenses[12] - The Trust's cash reserve was evaluated to be approximately $6,000,000 in 2021, but has since been drawn down due to lack of revenue[29] - The Trust's cash reserve was increased to approximately $6.0 million to cover administrative expenses and potential termination costs[64] - The Trustee paid all accrued expenses of the Trust through March 31, 2025, totaling $531,612 from the cash reserve[51] Internal Controls and Risk Management - The Trust's internal control over financial reporting was deemed effective as of March 31, 2025, based on the COSO criteria[87] - The Trust has no foreign operations and holds no long-term debt instruments, minimizing exposure to interest rate and foreign currency risks[84] - The Trustee has the authority to borrow or establish a cash reserve under limited circumstances as per the Trust Agreement[57] Market Influences - The Trust's revenues and results of operations are significantly affected by fluctuations in oil prices, which are influenced by global supply and demand and geopolitical events[66]

Financial Performance - Net sales for the nine months ended March 31, 2025, increased by 14% to $95.994 million compared to $84.307 million for the same period in 2024[98] - Private-label contract manufacturing sales rose by 16% during the nine months ended March 31, 2025, primarily due to increased orders from a larger customer and new customer shipments[98] - Patent and trademark licensing revenue decreased by 9% to $6.0 million for the nine months ended March 31, 2025, down from $6.6 million in the prior year[99] - The company experienced a net loss of $6.359 million for the nine months ended March 31, 2025, compared to a net loss of $5.343 million for the same period in 2024, representing a 19% increase in loss[106] - Selling, general, and administrative expenses increased by 9% to $12.470 million for the nine months ended March 31, 2025, compared to $11.455 million in the prior year[110] - The gross profit margin for the nine months ended March 31, 2025, was 6.0%, a decrease from 6.5% in the prior year[106] Cash Flow and Liquidity - Net cash provided by operating activities was $2.6 million for the nine months ended March 31, 2025, compared to $1.2 million in the prior year[113] - Cash used in investing activities increased to $2.2 million for the nine months ended March 31, 2025, compared to $2.0 million in the prior year, mainly due to capital expenditures for solar energy generation equipment[118] - Cash used in financing activities rose to $1.8 million for the nine months ended March 31, 2025, compared to $0.4 million in the prior year, reflecting increased usage of the credit facility[119] - As of March 31, 2025, the company had $10.6 million in cash and cash equivalents, with $10.0 million held by NAIE, sufficient to fund current working capital needs for at least the next 12 months[122] Credit Facility and Debt - As of March 31, 2025, the company had $8.5 million of borrowing capacity available on its credit facility, with outstanding borrowings of $2.0 million[120] - The company anticipates non-compliance with financial covenants related to net income requirements and fixed charge coverage ratio in the fourth quarter of fiscal 2025[122] - A tentative agreement with Wells Fargo is in place regarding proposed amended terms to the credit facility, which may include waiving current and past covenant violations[122] - The maturity date of the credit facility was extended from May 23, 2025, to June 23, 2025, allowing time to finalize negotiations for an amended credit agreement[122] - As of March 31, 2025, the company had no off-balance sheet debt or significant transactions that could materially affect its financial condition[123] Operational Focus - The company plans to continue focusing on expanding the commercialization of its beta-alanine patent estate and developing new sales distribution channels[107] - The company incurred litigation and patent compliance expenses of approximately $0.3 million during the nine months ended March 31, 2025[101] Sales Metrics - Days sales outstanding increased to 41 days during the nine months ended March 31, 2025, compared to 30 days in the prior year[114] - Private-label contract manufacturing gross profit margin increased by 1.2 percentage points to a percentage of consolidated net sales for the three months ended March 31, 2025, primarily due to increased sales volume and a favorable product sales mix[116] - Patent and trademark licensing gross profit margin decreased by 2.5 percentage points during the three months ended March 31, 2025, attributed to decreased net sales in this segment[116]

Exhibit 99.1 Glucotrack Reports First Quarter 2025 Financial Results and Recent Corporate Highlights On track to implant first patients in long-term, multicenter feasibility study of the fully implantable continuous blood glucose monitor (CBGM) system in Australia in Q3 2025 Investigational Device Exemption (IDE) approval for novel CBGM technology from FDA expected in Q4 2025 Rutherford, NJ, May 14, 2025 (GLOBE NEWSWIRE) — Glucotrack, Inc. (Nasdaq: GCTK) ("Glucotrack" or the "Company"), a medical technology ...

Financial Performance - The company reported a net loss of $29.1 million for the three months ended March 31, 2025, with an accumulated deficit of $4.5 billion[148]. - Total revenue for the three months ended March 31, 2025, was $38.7 million, an increase of $20.1 million compared to $18.6 million for the same period in 2024, primarily due to eight additional infusions[177]. - The net loss for the three months ended March 31, 2025, was $29.1 million, a decrease of $40.7 million compared to a net loss of $69.8 million in the same period of 2024[177]. - Net cash used in operating activities for the three months ended March 31, 2025, was $43.4 million, a decrease from $74.7 million in the same period of 2024[189]. Cash and Liquidity - Cash and cash equivalents were approximately $78.7 million as of March 31, 2025, with restricted cash of $13.6 million[150][154]. - As of March 31, 2025, the company had cash and cash equivalents of approximately $78.7 million, primarily held in U.S. government agency securities and money market accounts[182]. - The company expects existing cash and cash equivalents to fund operations into June 2025, contingent on the completion of the Merger Transaction[185]. - The company cautions that its cash runway estimate may be affected by revenues and operating costs that could differ materially from current assumptions[154]. Research and Development - The company plans to continue incurring research and development expenses while scaling manufacturing capabilities for its gene therapies[152][165]. - Research and development expenses were $17.7 million for the three months ended March 31, 2025, down from $25.1 million in 2024, reflecting a decrease of $7.4 million[180]. - The accumulated deficit as of March 31, 2025, was $4.5 billion, with expectations for research and development expenses to decrease as commercial activities increase[183]. Mergers and Acquisitions - A merger agreement was announced on February 21, 2025, with a cash tender offer of $3.00 per share plus a contingent value right or $5.00 per share[149][157]. - The merger transaction is expected to close in the first half of 2025, which is critical for the company's liquidity[149][151]. - The company entered into a Merger Agreement on February 21, 2025, with expectations for completion in the first half of 2025[184]. Sales and Financing Activities - The company sold its first Rare Pediatric Disease Priority Review Voucher for net proceeds of $102.0 million and the second for $92.9 million in early 2023[145]. - In Q1 2023, the company sold its second PRV for aggregate net proceeds of $92.9 million[193]. - In Q1 2023, the company sold 1.2 million shares of common stock at $120.00 per share, generating aggregate net proceeds of $130.5 million[193]. - In December 2023, the company sold 4.2 million shares of common stock at $30.00 per share, resulting in aggregate net proceeds of $118.1 million[193]. - The company entered into a Loan Agreement for up to $175.0 million in debt financing in March 2024[193]. - The company has not made any sales pursuant to the Open Market Sales Agreement with Jefferies LLC as of March 31, 2025, which allows for sales up to $125.0 million[193]. Cost Management - Cost of product revenue decreased to $12.2 million for the three months ended March 31, 2025, from $25.9 million in the same period of 2024, attributed to reduced costs related to excess manufacturing capacity[178]. - Selling, general and administrative expenses decreased to $30.3 million for the three months ended March 31, 2025, from $46.3 million in 2024, a reduction of $16.1 million[179]. - The company has never been profitable and expects to continue incurring significant expenses and operating losses for the foreseeable future[148]. Regulatory Approvals - The FDA approved three gene therapies: ZYNTEGLO, SKYSONA, and LYFGENIA, with commercialization efforts focused in the U.S.[140][141]. Market Risks - The company has exposure to market risk related to changes in interest rates, primarily due to investments in short-term securities[194].

Collaboration with AbbVie - The company has entered into an exclusive option agreement with AbbVie Inc., granting AbbVie the option to obtain a co-exclusive license for the development and commercialization of reproxalap in the U.S. and an exclusive license outside the U.S.[95] - AbbVie has made a non-refundable payment of $1.0 million for the option and extended the exercise period by paying an additional $5.0 million[96] - Upon execution of the collaboration agreement, AbbVie will pay a $100.0 million upfront cash payment, with potential for up to $300.0 million in regulatory and commercial milestone payments[98] - The collaboration with AbbVie includes a profit-sharing model of 60% for AbbVie and 40% for the company from the commercialization of reproxalap in the U.S.[98] - The profit-sharing arrangement with AbbVie for the commercialization of reproxalap is set at 60% for AbbVie and 40% for the company in the U.S.[127] Financial Position and Funding - The company has no products approved for sale and has primarily funded operations through the sale of common stock and debt, indicating a need for additional capital to fund product development[101] - The Hercules Credit Facility allows for a term loan of up to $60.0 million, with $15.0 million funded as of March 31, 2025, and various amendments extending payment terms and conditions[103] - As of March 31, 2025, total stockholders' equity was approximately $63.6 million, with cash, cash equivalents, and marketable securities totaling $90.1 million[119] - As of March 31, 2025, the company expects its cash, cash equivalents, and marketable securities to fund operations into 2027, excluding potential licensing and product revenue[128] - The company anticipates needing additional funding for ongoing research and development activities, regulatory activities, and commercialization efforts[128] - The company may seek additional capital through debt, equity, or partnerships, amid economic uncertainties and market disruptions[129] Research and Development - The company is developing multiple product candidates, including reproxalap for dry eye disease and ADX-2191 for retinitis pigmentosa, with ongoing clinical trials and regulatory submissions[93] - Research and development expenses increased to $7.4 million for the three months ended March 31, 2025, up 20.1% from $6.2 million in the same period of 2024[115] - Approximately 40% of total research and development expenses for the three months ended March 31, 2025, were related to late-stage product candidates, primarily reproxalap[116] - The company expects research and development expenses to increase as it advances ADX-246, ADX-248, and other compounds through preclinical and clinical development[104] - The company does not expect reproxalap or any other product candidates to be commercially available before at least the second half of 2025[107] Operational Results - Net loss for the three months ended March 31, 2025, was approximately $9.9 million, representing a 22.9% increase from a net loss of $8.1 million in the same period of 2024[115] - Total other income (expense), net, decreased to $0.5 million for the three months ended March 31, 2025, down 62.0% from $1.3 million in the same period of 2024[118] - General and administrative expenses decreased to $3.0 million for the three months ended March 31, 2025, down 6.4% from $3.2 million in the same period of 2024[117] - Net cash used in operating activities for Q1 2025 was $12.5 million, an increase from $10.0 million in Q1 2024, primarily due to higher research and development expenses[131] - Net cash provided by investing activities was $7.3 million for Q1 2025, compared to a net cash outflow of $30.4 million in Q1 2024[132] - Net cash provided by financing activities was $1.0 million for Q1 2025, significantly higher than $18.2 thousand in Q1 2024[133] Regulatory and Compliance Risks - The company is subject to various risks and uncertainties that could impact its financial position and operational results, including regulatory approvals and market acceptance of its product candidates[94] - The company will incur ongoing costs related to compliance with the Sarbanes-Oxley Act and other regulatory requirements as a public entity[130]

Financial Performance - Q1'25 total revenue was $18.9M, down 16% quarter-over-quarter and 10% year-over-year, aligning with guidance[51]. - Gross profit for Q1'25 was a loss of $(8.1)M, consistent with guidance of a gross loss of $(5)M to $(10)M per quarter for FY'25[52]. - Operating expenses (OpEx) for Q1'25 were $64.2M, with a target to reduce quarterly OpEx to the low-$30M range by the end of FY'25[52]. - GAAP net loss for Q1 2025 was $76,516,000, compared to a net loss of $44,222,000 in Q4 2024 and $125,714,000 in Q1 2024[79]. - Non-GAAP net loss for Q1 2025 was $63,080,000, an improvement from $49,831,000 in Q4 2024 and $80,456,000 in Q1 2024[79]. - GAAP operating cash flow for Q1 2025 was $(44,229,000), compared to $(61,360,000) in Q4 2024 and $(81,229,000) in Q1 2024[81]. - Total GAAP operating expenses for Q1 2025 were $64,172,000, down from $78,166,000 in Q4 2024 and $115,314,000 in Q1 2024[77]. - Non-GAAP operating expenses for Q1 2025 were $45,168,000, compared to $55,031,000 in Q4 2024 and $73,179,000 in Q1 2024[77]. - Ending cash, cash equivalents, and restricted cash for Q1 2025 was $61,222,000, down from $111,296,000 in Q4 2024[73]. - GAAP gross profit (loss) for Q1 2025 was $(8,100,000), compared to $12,478,000 in Q4 2024 and $(10,455,000) in Q1 2024[76]. - Non-GAAP gross profit (loss) for Q1 2025 was $(6,437,000), an improvement from $14,041,000 in Q4 2024 and $(4,759,000) in Q1 2024[76]. - Stock-based compensation for Q1 2025 amounted to $19,380,000, compared to $23,343,000 in Q4 2024[82]. - The company reported a net cash provided by investing activities of $20,445,000 in Q1 2025, compared to $34,426,000 in Q4 2024[73]. Cost Management - Luminar expects over $100 million in product development savings as it scales by customer with the new unified product architecture[27]. - The expected Bill of Materials (BOM) reduction from Iris to Halo is over 50%[33]. - Luminar aims to reduce quarterly operating expenses from mid/high-$30 million to a low-$30 million range by the end of 2025[46]. - The company has achieved significant cost savings through its restructuring plan implemented in May 2024, which includes a reduction in redundant roles[11]. - The company aims to reduce 2026 convertible debt to below $100M by June 2026, with a current outstanding face amount of $185M[50]. Revenue and Growth Projections - The company expects FY'25 total revenue growth of 10% to 20% and anticipates sensor shipments of 30k-33k, significantly up from ~9k in FY'24[55][57]. - Approximately 6,000 LiDAR units were shipped in Q1'25, representing a 50% increase quarter-over-quarter[54]. - The company is on track to ramp series production volume by at least 3x year-over-year, supporting additional vehicle model launches[60]. Technology Development - Luminar anticipates a targeted faster time to market, aiming for a 2x improvement[27]. - The company is actively developing various software capabilities that have not yet achieved production-ready status[13]. - Progress is being made on next-generation technology, specifically Luminar Halo, with development work for Volvo Cars and Mercedes-Benz[61]. Partnerships and Market Strategy - Luminar's partnerships with major OEMs like Nissan and Mercedes are expected to enhance the adoption of its LiDAR technology[24]. - The company is focused on core transceiver expertise while maintaining ownership of OEM customer relationships through strategic partnerships[30]. - The company plans to issue approximately $30M per quarter under its equity financing program[59].

Lithium Refinery Development - Stardust Power is developing a large-scale lithium refinery in Oklahoma to supply battery-grade lithium primarily for the electric vehicle market [171]. - The company is in the development stage and has purchased a site in Muskogee, Oklahoma, for its planned refinery, which will have a phased capacity of up to 50,000 metric tons per annum [192][193]. - The refinery will utilize a technological innovation allowing it to refine various sources of lithium brine, aiming to produce a consistent feedstock [194]. - The total refinery cost is estimated at $1,165 million, with plans to finance through a mix of debt, equity, and potential government grants [232]. Financial Performance - The company has not generated any revenue since inception and has been operating at a loss, with a net loss of $3,809,700 for the three months ended March 31, 2025, compared to a net loss of $1,399,213 for the same period in 2024 [217]. - General and administrative expenses increased significantly to $5,748,648 for the three months ended March 31, 2025, up from $1,235,366 in the prior year, reflecting an increase of $4,513,282 [217]. - As of March 31, 2025, the accumulated deficit was $56,428,648, up from $52,618,948 as of December 31, 2024 [231]. - The company has not earned any revenue and has been operating at a loss since inception, with a stockholders' deficit of $12,835,162 as of March 31, 2025 [234]. Capital and Financing - The company received up to $257 million in performance-based incentives from the State of Oklahoma, contingent on job creation and capital expenditures [174]. - Stardust Power secured a loan of $1.75 million from Endurance Antarctica Partners II, LLC, with a 15% interest rate, maturing in March 2025 [185]. - The company has issued promissory notes totaling $492,000 with an interest rate of 6%, maturing in 2025, to support its financing needs [205]. - The Company anticipates funding its near-term operations through the sale of equity securities, promissory notes, and debt financing [233]. - The Company plans to raise additional capital through equity issuance or borrowings to fund operations and investments over the next year [252]. Compliance and Regulatory Issues - The company received notices from Nasdaq regarding non-compliance with listing standards due to market value and bid price issues [186]. - The company has a compliance period until September 15, 2025, to regain compliance with Nasdaq's Minimum Price Rule, requiring a minimum bid price of $1.00 per share for 10 consecutive business days [187]. - The company must also comply with the MVPHS Rule by maintaining a market value of publicly held shares of at least $15,000,000 for 10 consecutive business days by September 15, 2025 [188]. - The MVLS Rule requires the company to achieve a market value of listed securities of $50,000,000 for 10 consecutive business days by September 30, 2025, to avoid delisting [189]. Strategic Partnerships and Agreements - The company entered into a non-binding letter agreement with Sumitomo for a long-term offtake agreement to supply 20,000 metric tons of lithium carbonate annually, with potential to increase to 25,000 metric tons [182]. - Stardust Power purchased 10 million shares (approximately 6% equity) of IRIS Metals Limited for $1.6 million to explore strategic partnerships in lithium production [181]. - The company has entered into an engineering agreement with Primero USA, Inc. for approximately $4.7 million to assist in the development of its lithium facility [180]. - The Company is negotiating fixed price off-take agreements to mitigate commodity price risks associated with lithium hydroxide and lithium carbonate [274]. - The Company plans to enter into 10-year long-term sales contracts with EV manufacturers to stabilize product pricing and manage supply chain risks [276]. Cash Flow and Operating Activities - For the three months ended March 31, 2025, net cash used in operating activities was $2,875,187, a significant increase from $934,680 in the same period of 2024, reflecting a net loss of $3,809,700 [246][247]. - Net cash provided by financing activities for the three months ended March 31, 2025, was $4,511,080, primarily from a public offering that generated gross proceeds of $5,750,400 [250]. - For the three months ended March 31, 2025, net cash used in investing activities was $960,332, mainly for capital project costs related to refinery construction [249]. Risks and Challenges - The company has a limited operating history and faces significant risks and challenges, including competition and macroeconomic conditions [198][201]. - The Company is currently facing a volatile inflationary environment, which could impact its financial condition and operations [289]. - The Company is subject to credit risk for cash balances exceeding the FDIC insured amount of $250,000, with only one financial banking institution [288]. - As of March 31, 2025, the Company had no significant risk related to changes in interest rates [287].

Lithium Refinery Development - Stardust Power is developing a large-scale lithium refinery in Oklahoma to supply battery-grade lithium primarily for the electric vehicle market [171]. - The company plans to construct a refinery with a phased approach, starting with a production line of up to 25,000 metric tons per annum, with a second line to increase total capacity to 50,000 metric tons per annum [193]. - The total refinery cost is estimated at $1,165 million, with plans to finance through a mix of debt, equity, and potential government grants [232]. Financial Performance and Funding - The company has not generated any revenue since inception and has been operating at a loss, with a net loss of $3,809,700 for the three months ended March 31, 2025, compared to a net loss of $1,399,213 for the same period in 2024 [217]. - General and administrative expenses increased significantly to $5,748,648 for the three months ended March 31, 2025, up from $1,235,366 in the same period of 2024, reflecting an increase of $4,513,282 [217]. - The company has an accumulated deficit and has not earned any revenue since inception, raising concerns about its ability to continue operations without additional capital [252]. - The company anticipates funding its near-term operations through the sale of equity securities, promissory notes, and debt financing [233]. - For the three months ended March 31, 2025, net cash used in operating activities was $2,875,187, a significant increase from $934,680 in the same period of 2024 [246][247]. - The Company reported net cash provided by financing activities of $4,511,080 for the three months ended March 31, 2025, primarily from a public offering that raised $5,750,400 [250]. Agreements and Partnerships - Stardust Power executed a non-binding letter agreement with Sumitomo for a long-term offtake agreement to supply 20,000 metric tons of lithium carbonate annually, with potential for increase [182]. - The company is in the process of negotiating with multiple suppliers for brine feedstock, including producers from the oil and gas industry, to source raw materials for lithium production [203]. - The Company entered into a consulting agreement with DRE Chicago LLC for $500,000 and a loan of $250,000 at 15% interest, maturing in March 2025, with an equity kicker of $375,000 in Common Stock [268]. - A binding term sheet was established with Endurance Antarctica Partners II, LLC for a loan of $1,750,000 at 15% interest, maturing in March 2025, along with $3,500,000 in Common Stock as an equity kicker [269]. Compliance and Regulatory Issues - The company received notices from Nasdaq regarding non-compliance with listing standards due to market value and bid price issues [186]. - The company has a 180-day compliance period until September 15, 2025, to regain compliance with Nasdaq's Minimum Price Rule, requiring a minimum bid price of $1.00 per share for 10 consecutive business days [187]. - The company also has until September 30, 2025, to comply with the MVLS Rule, which requires a market value of publicly held shares to close at $50,000,000 or more for 10 consecutive business days [189]. Investments and Equity - The company invested $1.6 million in IRIS Metals Limited, acquiring approximately 6% of its total equity, to explore strategic partnerships [181]. - The company issued 3,981 shares of common stock during the three months ended March 31, 2025, generating net proceeds of $15,922 [238]. - The fair value of the Company's Common Stock is determined based on third-party appraisals and various market conditions, impacting stock-based compensation measurements [261]. Market and Economic Conditions - The Company is currently facing a volatile inflationary environment, which could impact its financial condition and operations [289]. - The Company is subject to credit risk for cash balances exceeding the FDIC insured amount of $250,000, with only one financial banking institution [288]. - As of March 31, 2025, the Company had no significant risk related to changes in interest rates [287].

Financial Performance - Total revenues for Q1 2025 were $22.4 million, a 39.5% decrease from $37.1 million in Q1 2024[180] - Cost of revenues decreased by 40.8% to $14.4 million in Q1 2025 from $24.3 million in Q1 2024, attributed to lower units sold[181] - Gross profit for Q1 2025 was $8.0 million, down 37.2% from $12.8 million in Q1 2024, with a gross profit margin of 35.9% compared to 34.5% in the prior year[182] - General and administrative expenses for Q1 2025 were $10 million, representing 44.8% of revenue, down from $15.2 million or 41.1% of revenue in Q1 2024[183] - Research and development expenses for Q1 2025 were $0.9 million, representing 4.1% of revenue, compared to $1.2 million or 3.2% of revenue in Q1 2024[184] - Other expense, net for Q1 2025 was $0.5 million, a decrease of $2.1 million from $2.6 million in Q1 2024[185] - Net loss for Q1 2025 was approximately $3.2 million, down from a net loss of $7.1 million in Q1 2024[186] - For the three months ended March 31, 2025, the company reported a net loss of $3.243 million, compared to a net loss of $7.089 million for the same period in 2024, indicating a 54.4% improvement in net loss year-over-year[189] - EBITDA for the three months ended March 31, 2025, was $1.557 million, compared to a negative EBITDA of $1.543 million for the same period in 2024, reflecting a significant turnaround[189] - Adjusted EBITDA for the three months ended March 31, 2025, was a loss of $25 thousand, compared to a positive adjusted EBITDA of $179 thousand for the same period in 2024[189] Cash Flow and Liquidity - As of March 31, 2025, the company had cash and cash equivalents of $8.1 million, down from $11.8 million as of March 31, 2024, representing a decrease of 31.4%[191] - The company had net cash used in operating activities of $4.7 million for the three months ended March 31, 2025, compared to $1.9 million for the same period in 2024, indicating increased cash outflow[192] - The company expects to achieve positive cash flow from operations and is actively working to refinance its existing debt to improve financial flexibility[206] - The company anticipates that cash and cash equivalents, along with anticipated cash flows from operations, will provide sufficient liquidity for working capital needs and debt service requirements[198] - The company is facing significant challenges due to global supply chain uncertainties and increased costs of capital, which may impact its ability to access funding sources[197] Compliance and Financial Covenants - The company was not in compliance with its financial covenant related to the Senior Leverage Ratio under the Credit Agreement at multiple points, including December 31, 2024, and March 31, 2025[199][202] - The Company reported stockholders' equity of ($12,896,000) as of December 31, 2024, failing to meet the Nasdaq requirement of at least $2.5 million[208] - The Company intends to submit a compliance plan to Nasdaq within 45 days to regain compliance with Listing Rule 5550(b)[208] - The market value of the Company's listed securities was $2,830,180 as of April 4, 2025, significantly below the Nasdaq requirement of at least $35 million[208] Shareholder Matters - Following a private placement in February 2025, the Company may need to increase the number of authorized shares of Class A common stock due to the potential exercise of 1,323,000 warrants[209] - There is uncertainty regarding shareholder approval for the increase in authorized shares, which could impair the Company's ability to raise equity capital[209] Accounting and Financial Reporting - The Company has no significant off-balance sheet arrangements that could affect its financial condition or liquidity[211] - The Company’s financial statements are prepared in accordance with GAAP, requiring assumptions and estimates that could materially differ from actual results[212] - Key accounting estimates critical for understanding financial results include revenue recognition, intangible assets, and stock-based compensation expense[213] - Recent accounting pronouncements may materially impact the Company's consolidated financial condition and results of operations[215] Revenue Decline Factors - The decrease in revenues was primarily due to lower global demand for interactive flat panel displays and competitive pricing in the industry[180] - The increase in gross profit margin is primarily related to changes in product mix despite pricing pressures[182] - The company is focused on ongoing initiatives to reduce operating expenses across all cost groups[183]