Minim(US:MINM)2024-08-19 21:38Financial Performance - The company reported net sales of $0 million for the three months ended June 30, 2024, a decrease of $7.2 million or 100% compared to $7.2 million in the same period of 2023[76]. - For the six months ended June 30, 2024, net sales decreased by $17.3 million or 296.0% compared to $17.9 million in the same period of 2023[84]. - The gross profit for the three months ended June 30, 2024 was $0, down from $486 thousand in the same period of 2023, representing a decrease of 100%[80]. - The company experienced a net loss of $(488) thousand for the three months ended June 30, 2024, compared to a net loss of $(5,559) thousand in the same period of 2023, reflecting a 91.3% improvement[80]. - Cash used in operating activities was $2.88 million for the first half of 2024, reflecting a net loss of $3.7 million adjusted for non-cash expenses[99]. Operating Expenses - Total operating expenses for the three months ended June 30, 2024 were $489 thousand, a decrease of 91.8% compared to $5,947 thousand in the same period of 2023[80]. - Selling and marketing expenses decreased by 99.1% to $66,000 in the first half of 2024 compared to $7.31 million in the same period of 2023, driven by reductions in personnel and marketing campaign costs[88]. - General and administrative expenses decreased by 51.6% to $567,000 in Q2 2024 compared to $1.17 million in Q2 2023, mainly due to lower personnel and software subscription expenses[90]. - Research and development expenses fell by 96.5% to $41,000 in Q2 2024 compared to $1.19 million in Q2 2023, attributed to decreases in personnel and contract labor costs[93]. Liquidity and Cash Position - The company had cash and cash equivalents of $0.6 million as of June 30, 2024, down from $0.7 million on December 31, 2023[73]. - As of June 30, 2024, cash and cash equivalents were $0.6 million, down from $0.7 million on December 31, 2023, with negative working capital of $0.7 million[95]. - The company is evaluating options related to its liquidity and will continue to monitor costs in relation to sales[74]. - The company has substantial doubt about its ability to continue as a going concern without additional liquidity to support operations beyond the next 12 months[97]. Sales and Market Trends - The decrease in net sales is primarily attributed to reduced sales of Motorola branded cable modems and gateways[84]. - Sales related to SaaS offerings were $0 thousand for the three months ended June 30, 2024, down from $74 thousand in the same period of 2023[84]. - The company expects future selling and marketing expenses to decrease compared to the first half of 2024, contingent on sales levels achieved[89]. - Future research and development expenses are anticipated to decrease compared to the first half of 2024, depending on the timing and number of development activities[94]. Tax Considerations - Federal and state net operating loss carryforwards amount to approximately $79.2 million and $47.9 million, respectively, available to reduce future taxable income[107].