MIND Technology(MIND) - 2026 Q1 - Quarterly Report

PART I. FINANCIAL INFORMATION This section provides the unaudited condensed consolidated financial statements and management's analysis for the quarter ended April 30, 2025, along with market risk disclosures and controls Item 1. Financial Statements (Unaudited) The unaudited condensed consolidated financial statements for the quarter ended April 30, 2025, show a net loss of $970 thousand, a shift from prior-year net income, with total assets of $36.2 million Condensed Consolidated Balance Sheets This section presents the company's financial position, detailing assets, liabilities, and equity as of April 30, 2025, and January 31, 2025 Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | April 30, 2025 | January 31, 2025 | | :--- | :--- | :--- | | Current Assets | | | | Cash and cash equivalents | $9,172 | $5,336 | | Accounts receivable, net | $7,779 | $11,817 | | Inventories, net | $13,447 | $13,745 | | Total Assets | $36,226 | $36,720 | | Current Liabilities | | | | Accounts payable | $2,011 | $2,558 | | Total current liabilities | $8,941 | $8,645 | | Total Liabilities | $9,592 | $9,388 | | Total Stockholders' Equity | $26,634 | $27,332 | Condensed Consolidated Statements of Operations This section outlines the company's revenues, expenses, and net income or loss for the three months ended April 30, 2025, and 2024 Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Three Months Ended April 30, 2025 | Three Months Ended April 30, 2024 | | :--- | :--- | :--- | | Revenues | $7,902 | $9,678 | | Gross Profit | $3,331 | $4,218 | | Total Operating Expenses | $3,989 | $3,488 | | Operating Income (Loss) | $(658) | $730 | | Net Income (Loss) | $(970) | $954 | | Net Income (Loss) Attributable to Common Stockholders | $(970) | $7 | | Net Loss per Common Share - Basic and Diluted | $(0.12) | $— | Condensed Consolidated Statements of Cash Flows This section details the cash inflows and outflows from operating, investing, and financing activities for the three months ended April 30, 2025, and 2024 Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Three Months Ended April 30, 2025 | Three Months Ended April 30, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $4,068 | $(4,753) | | Net cash (used in) provided by investing activities | $(237) | $391 | | Net cash provided by financing activities | $— | $— | | Net change in cash and cash equivalents | $3,836 | $(4,365) | | Cash and cash equivalents, beginning of period | $5,336 | $5,289 | | Cash and cash equivalents, end of period | $9,172 | $924 | Notes to Condensed Consolidated Financial Statements This section provides additional information and explanations regarding the company's financial statements, including liquidity, revenue by geography, and significant events - As of April 30, 2025, the company had working capital of approximately $22.8 million, including $9.2 million in cash and cash equivalents. Management believes it has adequate liquidity to meet future operating requirements[24] Revenue by Geography (in thousands) | Geography | Three Months Ended April 30, 2025 | Three Months Ended April 30, 2024 | | :--- | :--- | :--- | | United States | $550 | $325 | | China | $259 | $5,768 | | Norway | $3,275 | $2,758 | | Singapore | $1,027 | $211 | | Other | $2,811 | $817 | | Total | $7,902 | $9,678 | - On September 4, 2024, all outstanding shares of 9.00% Series A Cumulative preferred stock were converted into approximately 6.6 million shares of common stock and retired, eliminating obligations for preferred stock dividends[50][53] - As of April 30, 2025, the company operates as a single reporting segment, Seamap Marine Products, providing products and services for marine exploration, survey, and maritime security[55][56] Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the Q1 fiscal 2026 financial performance, attributing revenue decline to delayed orders, while highlighting increased backlog and positive operating cash flow, affirming adequate liquidity Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA (in thousands) | Metric | Three Months Ended April 30, 2025 | Three Months Ended April 30, 2024 | | :--- | :--- | :--- | | Net income (loss) | $(970) | $954 | | EBITDA | $(451) | $1,466 | | Adjusted EBITDA | $(179) | $1,514 | - The decline in Q1 revenue was attributed to a significant order of approximately $4.5 million being delayed due to third-party component issues, and another $1.0 million in orders awaiting customer shipment arrangements, with resolution expected in Q2 fiscal 2026[72] - The backlog of firm orders increased to approximately $21.1 million as of April 30, 2025, up from $16.9 million as of January 31, 2025, providing good visibility for the remainder of fiscal 2026[73] - Strategic initiatives include adapting SeaLink solid streamer technology for new applications such as hydrographic surveys for windfarm projects and maritime security[77][81] Seamap Business Performance (in thousands) | Metric | Three Months Ended April 30, 2025 | Three Months Ended April 30, 2024 | | :--- | :--- | :--- | | Revenues | $7,902 | $9,678 | | Gross Profit | $3,331 | $4,218 | | Gross Profit Margin | 42% | 44% | - General and administrative expenses increased to $3.4 million from $2.8 million year-over-year, driven by non-recurring costs for restructuring UK operations, tax planning, and higher stock-based compensation[83] - The company had working capital of $22.8 million, including $9.2 million in cash, as of April 30, 2025, relying on cash on hand and operating cash flows for liquidity with no credit facility[89] Quantitative and Qualitative Disclosures About Market Risk The company's primary market risk stems from foreign currency fluctuations, with approximately $1.2 million in foreign currency cash holdings, and no exposure to interest rate risk due to absence of debt - The company is exposed to foreign currency risk from transactions denominated in British pounds, Singapore dollars, and Euros, holding approximately $1.2 million in foreign currency denominated cash as of April 30, 2025[101] - A hypothetical 10% adverse change in the U.S. dollar against these foreign currencies would result in a loss of approximately $120 thousand in the value of these cash deposits[102] - As of April 30, 2025, the company had no debt, and therefore no exposure to interest rate risk[103] Controls and Procedures Management concluded that the company's disclosure controls and procedures were effective as of April 30, 2025, with no material changes to internal control over financial reporting during the quarter - The principal executive and financial officers concluded that the company's disclosure controls and procedures were effective as of April 30, 2025[104] - No material changes in internal control over financial reporting occurred during the quarter ended April 30, 2025[105] PART II. OTHER INFORMATION This section covers other required disclosures including legal proceedings, risk factors, sales of equity securities, defaults, mine safety, and exhibits Legal Proceedings The company is not currently involved in any legal proceedings deemed to have a material adverse effect on its financial condition or operations - The company is not currently a party to any material legal proceedings[107] Risk Factors There have been no material changes to the company's risk factors since the Annual Report on Form 10-K for the fiscal year ended January 31, 2025 - There have been no material changes in risk factors from those described in the Annual Report on Form 10-K for the year ended January 31, 2025[108] Unregistered Sales of Equity Securities and Use of Proceeds This section is not applicable for the current reporting period - Not applicable[112] Defaults Upon Senior Securities This section is not applicable for the current reporting period - Not applicable[109] Mine Safety Disclosures This section is not applicable for the current reporting period - Not applicable[110] Other Information This section is not applicable for the current reporting period - Not applicable[111] Exhibits This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and Inline XBRL documents - The exhibits filed with the Form 10-Q include CEO and CFO certifications (Exhibits 31.1, 31.2, 32.1) and Inline XBRL data files (Exhibits 101 and 104)[113][114]