Energy Focus(EFOI) - 2025 Q2 - Quarterly Results

Financial Performance - Net sales for Q2 2025 were $1.1 million, a decrease of 26.4% compared to $1.6 million in Q2 2024, primarily due to a 71.0% decline in military sales, partially offset by a 117.7% increase in commercial sales[2][4] - Loss from operations was $0.2 million in Q2 2025, an improvement from a loss of $0.6 million in Q2 2024 and comparable to a loss of $0.3 million in Q1 2025[2][8] - Net loss for Q2 2025 was $0.2 million, or $(0.04) per share, compared to a net loss of $0.6 million, or $(0.12) per share, in Q2 2024[2][8] - Net loss for Q2 2025 was $231,000, compared to a loss of $554,000 in Q2 2024, showing a 58% improvement year-over-year[25] - Adjusted EBITDA loss for Q2 2025 was $0.3 million, an improvement from a loss of $0.6 million in Q2 2024[9] - Adjusted EBITDA for Q2 2025 was $(267,000), slightly worse than $(263,000) in Q1 2025, indicating ongoing operational challenges[25] Profitability Metrics - Gross profit margin improved to 12.9% in Q2 2025 from 8.1% in Q2 2024, but decreased from 31.5% in Q1 2025, mainly due to lower-margin projects[2][6] - Adjusted gross margin for Q2 2025 was 16.7%, down from 18.3% in Q2 2024 and significantly lower than 33.8% in Q1 2025[7] - Actual gross profit margin for Q2 2025 was 12.9%, down from 31.5% in Q1 2025, reflecting increased costs or reduced pricing power[25] - Adjusted gross profit for Q2 2025 was $191,000, with a margin of 16.7%, down from 18.3% in Q2 2024, indicating pressure on profitability[25] Sales Performance - Total net sales for Q2 2025 reached $1,143,000, a 26.4% decrease from $1,553,000 in Q2 2024[21] - Commercial products sales increased to $773,000 in Q2 2025 from $355,000 in Q2 2024, representing a 118% year-over-year growth[21] Cash Flow and Liquidity - Cash balance as of June 30, 2025, was $0.5 million, unchanged from the previous year[2][10] - Cash used in operating activities for Q2 2025 was $215,000, a decrease from $718,000 in Q2 2024, indicating improved cash flow management[20] - Cash at the end of Q2 2025 was $499,000, compared to $1,105,000 at the end of Q2 2024, reflecting a significant decrease in liquidity[20] - The company issued $200,000 in common stock during Q2 2025, providing a source of financing amidst ongoing losses[20] Assets and Liabilities - Total current assets decreased to $4.371 million as of June 30, 2025, from $5.145 million at the end of 2024[16] - Total liabilities decreased to $1.986 million as of June 30, 2025, from $2.697 million at the end of 2024[17] Other Financial Activities - The company entered into a private placement agreement with its CEO for the sale of 110,497 shares at $1.81 per share, totaling approximately $200 thousand[2][3] - The company reported a foreign exchange gain of $45,000 in Q2 2025, contributing positively to the financial results[25]