MultiSensor AI(US:MSAI)2025-08-13 20:15Financial Performance - Net revenue for Q2 2025 was $1,419,000, a decrease of 33.2% compared to $2,125,000 in Q2 2024[19] - For the three months ended June 30, 2025, total net revenue was $1,419, a decrease of 33.2% from $2,125 in the same period of 2024[39] - For the six months ended June 30, 2025, total net revenue was $2,589, down 41.2% from $4,400 in the same period of 2024[39] - Revenue for the three months ended June 30, 2025, was $1.4 million, a decrease of 33% from $2.1 million in the same period in 2024, primarily due to reduced stand-alone hardware sales[96] - Revenue for the six months ended June 30, 2025, was $2.6 million, a decrease of 41% from $4.4 million in the same period in 2024, with software revenue growing 32% to $0.7 million[104] Operating Expenses - Total operating expenses for Q2 2025 were $3,653,000, down 43.2% from $6,434,000 in Q2 2024[19] - Total operating expenses for the three months ended June 30, 2025, were $3.7 million, a decrease of 43% from $6.4 million in the same period in 2024[96] - Selling, general and administrative expenses for the three months ended June 30, 2025, totaled $2,909,000, compared to $2,810,000 in 2024, reflecting a 3.5% increase[80] - Selling, general and administrative expenses for the three months ended June 30, 2025, were $2.9 million, a slight increase of 4% from $2.8 million in the same period in 2024[99] Net Loss - Net loss for the six months ended June 30, 2025, was $7,758,000, compared to a net loss of $10,316,000 for the same period in 2024, representing a 24.9% improvement[25] - The net loss for the three months ended June 30, 2025, was $3.3 million, a 48% improvement compared to a net loss of $6.4 million in the same period in 2024[96] - The company reported a net loss of $(7,758) thousand for the six months ended June 30, 2025, compared to a net loss of $(10,316) thousand for the same period in 2024[115] Cash Flow and Liquidity - Cash and cash equivalents decreased to $3,192,000 as of June 30, 2025, from $4,358,000 at the end of 2024, a decline of 26.8%[17] - Cash used in operating activities for the six months ended June 30, 2025, was $(3,980,000), compared to $189,000 for the same period in 2024[25] - Net cash used in operating activities was $4.0 million for the six months ended June 30, 2025, an increase of $4.2 million compared to a net cash provided of $0.2 million for the same period in 2024[122] - Net cash provided by financing activities was $3.7 million for the six months ended June 30, 2025, an increase of $3.7 million compared to $0.0 million for the same period in 2024, primarily due to $4.8 million in proceeds from stock sales[124] Shareholder Equity and Liabilities - Total current liabilities increased to $4,716,000 as of June 30, 2025, compared to $3,017,000 at the end of 2024, an increase of 56.5%[17] - Shareholders' equity decreased to $9,751,000 as of June 30, 2025, down from $12,288,000 at the end of 2024, a decline of 20.6%[17] - The company recorded contract liabilities of $2,215 as of June 30, 2025, compared to $483 as of December 31, 2024[40] Stock and Financing Activities - The company issued 1,791,732 shares of common stock during the first half of 2025, raising $4,657,000[25] - The company utilized the B. Riley Committed Equity Facility to sell 1,791,732 shares of Common Stock for cash proceeds totaling $4.7 million during the six months ended June 30, 2025, compared to 23,999 shares for $58 thousand in the same period of 2024[119] - The Company has an equity line of credit allowing it to sell up to $25,000,000 of common stock to B. Riley, with no obligation to sell any securities[59] Future Outlook and Concerns - The company expects to continue incurring losses or limited income in the future, indicating ongoing financial challenges[32] - The company has substantial doubt about its ability to continue as a going concern for the next twelve months due to recurring losses and the need to raise additional capital[118] Operational Metrics - The company had approximately 610 active sensors connected to the MSAI Connect platform as of June 30, 2025, representing an 11% increase quarter over quarter and a 460% increase year over year[87] - Software revenue grew 37% to $0.4 million for the three months ended June 30, 2025, reflecting the company's focus on expanding its SaaS business[97] - The company plans to target the data center industry heavily in the second half of 2025, leveraging existing solutions for cooling management and server load-balancing[90] Compliance and Governance - The Chief Executive Officer and Chief Financial Officer have certified the financial reports as per the required regulations[148] - There were no changes in internal control over financial reporting during the quarter ended June 30, 2025[135] - The company is not currently involved in any legal proceedings that would materially affect its business or financial condition[138] - There have been no material changes in the risk factors since the 2024 Annual Report on Form 10-K[139]