Revenue Performance - Revenue for Q3 2025 decreased by $3.9 million, or 20.6%, to $15.1 million from $19.0 million in Q3 2024[5] - Device revenue declined by 26% to $11.7 million, while service revenue grew by 4% to $3.1 million compared to the prior year[10] - The company reiterated its full-year revenue guidance for fiscal year 2025, expecting revenue between $60 million and $67 million[12] Profit and Loss - Gross profit for Q3 2025 was $7.2 million, a decrease of 30.4% year-over-year, primarily due to lower sales in the EMEA region[7] - Net income for the three months ended December 31, 2025, was a loss of $3,728 thousand, compared to a profit of $2,969 thousand for the same period in 2024, representing a significant decline[23] - Comprehensive loss for the nine months ended December 31, 2024, was $6,496 thousand, compared to a loss of $2,616 thousand for the same period in 2023, indicating a worsening financial position[23] - The company reported a net loss of $4,272 thousand for the nine months ended December 31, 2024, compared to a net loss of $2,428 thousand for the same period in 2023, reflecting increased operational challenges[26] Expenses - Selling, general and administrative expenses increased by $2.8 million, or 50.6%, to $8.2 million, driven by higher employee compensation and overhead costs[8] - Research and development costs rose by $0.1 million, or 7.7%, to $1.8 million, mainly due to increased amortization expenses[9] - The company incurred depreciation and amortization expenses of $611 thousand for the nine months ended December 31, 2024, compared to $230 thousand for the same period in 2023, highlighting increased asset utilization[26] - The company reported stock compensation expenses of $450 thousand for the nine months ended December 31, 2024, compared to no such expenses in the same period of 2023, reflecting changes in compensation strategy[26] Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2024, totaled $1.1 million[11] - Cash flows from operating activities for the nine months ended December 31, 2024, resulted in a net cash outflow of $848 thousand, compared to a cash inflow of $3,177 thousand for the same period in 2023[26] - Cash, cash equivalents, and restricted cash at the end of the period were $1,120 thousand, down from $3,225 thousand at the beginning of the period, indicating liquidity challenges[26] Equity and Inventory Management - Total equity decreased to $(37,882) thousand as of December 31, 2024, from $(34,395) thousand as of September 30, 2024, indicating a decline in shareholder value[24] - The allowance for inventory obsolescence was $(67) thousand for the nine months ended December 31, 2024, a significant change from $705 thousand in the same period of 2023, suggesting improved inventory management[26] Other Financial Metrics - The impact of foreign currency translation gain was $0.2 million for Q3 2025[6] - The effect of currency translation on cash and cash equivalents was a gain of $5 thousand for the nine months ended December 31, 2024, consistent with the previous year[26] - The company closed a public offering yielding gross proceeds of approximately $4.6 million, with net proceeds of about $3.9 million after expenses[13] - Collaborations with Nobis Rehabilitation Partners and Zahrawi Group were announced, expanding the distribution network[10]
Aurora Technology Acquisition (ATAK) - 2024 Q4 - Annual Results