Financial Performance - Revenues for the three and nine months ended October 31, 2024, were approximately $12.1 million and $31.8 million, respectively, compared to $5.0 million and $23.1 million for the same periods in 2023, indicating significant growth [96]. - The company generated operating income of approximately $1.9 million and $4.0 million for the three and nine months ended October 31, 2024, compared to operating losses of approximately $1.5 million and $1.8 million in the prior year [96]. - Adjusted EBITDA from continuing operations for the three months ended October 31, 2024, was $1.955 million, compared to a loss of $1.063 million in the same period of 2023 [77]. - Seamap revenues for the three months ended October 31, 2024, were $12.1 million, a significant increase from $5.0 million in the same period of 2023, representing a 143% growth [98]. - Gross profit for Seamap was approximately $5.4 million for the three months ended October 31, 2024, compared to $2.3 million in the same period of 2023, reflecting a 135% increase [98]. - The gross profit margin for Seamap remained stable at 45% for both the three-month periods ended October 31, 2024, and 2023 [98]. - General and administrative expenses decreased to approximately $2.8 million for the three months ended October 31, 2024, down from $2.9 million in the same period of 2023, a reduction of about 3% [99]. - Research and development costs increased slightly to approximately $562,000 for the three months ended October 31, 2024, compared to $508,000 in the same period of 2023, an increase of about 11% [100]. - The company reported a tax expense of approximately $396,000 for the three months ended October 31, 2024, on pre-tax income of approximately $1.7 million, compared to a tax expense of $112,000 on a pre-tax loss of $1.6 million in the same period of 2023 [104]. - As of October 31, 2024, the company had working capital of approximately $21.2 million, an increase from $18.1 million as of January 31, 2024 [108]. - The company generated positive cash from operating activities of approximately $3.3 million in the six months ended October 31, 2024 [109]. - The backlog of orders related to the Seamap segment was approximately $26.2 million as of October 31, 2024 [113]. Strategic Initiatives - The company is exploring ways to expand the market for its Spectral Ai software suite, which has received positive feedback from customers despite minimal revenue to date [87]. - The company has prioritized strategic initiatives to exploit opportunities in marine technology, including adapting SeaLink technology for alternative applications [91]. - The company expects revenue in fiscal 2025 to exceed that of fiscal 2024, although risks such as order cancellations and production difficulties remain [85]. - The company eliminated two executive management positions and other administrative roles to control costs, indicating a focus on operational efficiency [93]. Operational Challenges - General inflation and supply chain issues have negatively impacted costs, but the company has not seen a material impact on revenues and results of operations in the past two fiscal years [94]. - The company identified a material weakness in internal controls over financial reporting related to inventory existence as of October 31, 2024 [133]. - A remediation plan is being implemented to address the material weakness, including a year-end inventory count of 100% of inventory in Singapore and Malaysia [134]. - There were no changes in the internal control over financial reporting during the quarter ended October 31, 2024, that materially affected the internal controls [135]. Capital and Debt Management - The company anticipates becoming eligible to utilize Form S-3 for capital raising after filing its Form 10-K for fiscal 2025 [115]. - As of October 31, 2024, the company had no debt [131]. Sale of Assets - The company completed the Sale of Klein for cash consideration of $11.5 million on August 21, 2023, streamlining operations and providing working capital for the Seamap business [82]. Order Backlog - As of October 31, 2024, the backlog of firm orders was approximately $26.2 million, flat compared to July 31, 2024, with a significant pipeline of pending orders estimated to be more than twice the backlog [83].
MIND Technology(MIND) - 2025 Q3 - Quarterly Report