Energy Focus(EFOI) - 2025 Q1 - Quarterly Results

Financial Performance - Net sales for Q1 2025 were $0.6 million, a decrease of 26.1% compared to $0.8 million in Q1 2024, driven by a 22.7% decline in military sales and a 32.1% decline in commercial sales year-over-year[4][6] - Net loss for Q1 2025 was $0.3 million, or $(0.05) per share, compared to a net loss of $0.4 million, or $(0.09) per share, in Q1 2024[4][10] - Operating loss for Q1 2025 was $0.3 million, an improvement from a loss of $0.6 million in Q1 2024[4][10] - The company reported a net loss of $268,000 for the three months ended March 31, 2025, compared to a net loss of $294,000 in the previous quarter and $418,000 in the same period last year[28] - Adjusted EBITDA for the three months ended March 31, 2025, was $(263,000), an improvement from $(278,000) in the previous quarter and $(581,000) in the same period last year[28] Profitability Metrics - Gross profit margin improved to 31.5% in Q1 2025, up from 14.4% in Q1 2024, primarily due to reduced fixed costs[4][7] - Adjusted gross margin for Q1 2025 was 33.8%, compared to 22.4% in Q1 2024, reflecting lower fixed production costs despite lower sales volume[4][9] - Actual gross profit for the three months ended March 31, 2025, was $194,000, representing a gross margin of 31.5%, compared to $265,000 (20.7%) in the previous quarter and $120,000 (14.4%) in the same period last year[28] - The adjusted gross margin for the three months ended March 31, 2025, was $208,000, representing 33.8%, compared to $282,000 (22.1%) in the previous quarter and $187,000 (22.4%) in the same period last year[28] Cash Flow and Liquidity - Cash balance as of March 31, 2025, was $0.5 million, down from $0.6 million as of December 31, 2024[4][12] - Cash used in operating activities for the three months ended March 31, 2025, was $(272,000), compared to $(254,000) in the previous quarter and $(58,000) in the same period last year[21] - The total cash at the end of the period was $488,000, down from $565,000 at the end of the previous quarter and $972,000 at the end of the same period last year[23] - The company generated $0.2 million through timely collection of accounts receivable during Q1 2025[4][12] Inventory and Accounts Receivable - The company recorded a provision for slow-moving and obsolete inventories of $14,000 for the three months ended March 31, 2025, compared to $17,000 in the previous quarter and $67,000 in the same period last year[21] - The company experienced a significant decrease in accounts receivable, with a net increase of $223,000 for the three months ended March 31, 2025, compared to a decrease of $(60,000) in the previous quarter and an increase of $1,440,000 in the same period last year[21] Strategic Initiatives - The company plans to focus on expanding in the Gulf Cooperation Council (GCC) region and Central Asia, emphasizing partnerships and local policymaking[3][5] - The company is investing in Energy Storage Systems (ESS), AI data center UPS solutions, and microgrid developments to capitalize on growing market demands[4][5] - The company entered into a private placement agreement to sell 103,627 shares at $1.93 per share, totaling approximately $200 thousand[4][12] - The company issued common stock worth $200,000 during the three months ended March 31, 2025, compared to no issuance in the previous quarter and no issuance in the same period last year[23]