Interlink Electronics(LINK) - 2024 Q4 - Annual Report

Revenue and Profitability - Revenue for 2024 decreased to $11,679,000, a 16.2% decline from $13,940,000 in 2023[182] - Gross profit for 2024 was $4,846,000, representing a gross margin of 41.5%, down from $6,559,000 and 47.1% in 2023[185] - Medical segment revenue fell by 24.6% to $3,926,000, while industrial revenue decreased by 36.5% to $2,631,000[183] - Net loss for 2024 was $1,984,000, compared to a net loss of $383,000 in 2023, reflecting a significant increase in losses[182] Expenses - Engineering, research and development expenses were $2,052,000, a decrease of 11.8% from $2,326,000 in 2023[186] - Selling, general and administrative expenses increased by 3.7% to $4,844,000, attributed to the full-year inclusion of Calman[187] - Other income (expense), net for 2024 was $93,000, down 43.3% from $164,000 in 2023, primarily due to lower interest income[188] Cash Flow and Capital Management - For the year ended December 31, 2024, the company reported a net cash used in operating activities of $367,000, attributed to a net loss of $1,984,000[197] - The company used $491,000 in investing activities in 2024, primarily for acquiring assets of Conductive Transfers ($314,000) and purchasing property and equipment ($177,000)[199] - Net cash used in financing activities for 2024 was $400,000, all of which was for dividends on Preferred Stock[200] - The company expects to maintain its current operations with existing cash and cash equivalents, but may require additional capital if circumstances change[195] - As of December 31, 2024, the company had cash and cash equivalents of $3.0 million and working capital of $5.5 million, with no indebtedness[193] - The company’s cash flows from operating activities showed a significant increase in net cash used, from $116,000 in 2023 to $367,000 in 2024[196] Strategic Initiatives - The company expanded its technology platforms through acquisitions, including Calman and Conductive Transfers, enhancing its product offerings in printed electronics and wearable technology[176] - The company plans to explore strategic relationships with technology institutes to support growth initiatives[180] Balance Sheet Items - Accounts receivable decreased from $2,167,000 at December 31, 2023, to $1,612,000 at December 31, 2024, due to timing of shipments and cash collections[198] - Inventories decreased from $2,476,000 at December 31, 2023, to $2,009,000 at December 31, 2024, primarily due to variability in timing of materials purchases and customer demand[198] - The company had no off-balance sheet arrangements as of December 31, 2024, indicating no exposure to financing, liquidity, market, or credit risk from such relationships[202] Taxation - The effective tax rate for 2024 was impacted by the mix of taxable income across jurisdictions, with no tax benefit on domestic losses due to valuation allowances[191] Dividends - The company has declared and paid cash dividends on its Preferred Stock each month since October 2021, with an annual rate of 8.0%[194]