Minim(MINM) - 2025 Q2 - Quarterly Results

Fiscal 2025 First Half Unaudited Financial Results Overview Overview of FiEE's H1 2025 unaudited financial results, highlighting key operational and financial metrics and strategic transformation Operational and Financial Highlights FiEE's H1 2025 results show a strategic shift to digital brand management SaaS, with early customer adoption, prepaid fees, reduced net loss, and improved cash flow CEO Commentary on Strategic Transition The CEO discusses FiEE's strategic shift from legacy hardware to digital brand management SaaS, emphasizing early successes and technological acquisitions - FiEE is undergoing a strategic transition from legacy hardware operations to redefine brand management solutions in the digital era, integrating IoT, connectivity, and AI[1][3] - Achieved new customers adopting SaaS solutions and received $1.5 million in prepaid subscription fees, marking a significant milestone for the new business[1][3] - Greatly reduced net loss in the first half of 2025 due to strengthened cost management and new business development[3] - Acquired advanced technologies including product authentication, high-efficiency file transfer systems, and KYC solutions to power SaaS products, aiming to protect digital creations and cultivate a KOL community[3] Summary of Key Financial and Operational Metrics This section presents a concise overview of FiEE's key financial and operational performance indicators for the first half of 2025 Key Financial and Operational Highlights (Six Months Ended June 30) | Metric | H1 2025 ($) | H1 2024 ($) | Change | | :-------------------------------- | :---------- | :---------- | :----- | | Net Sales | 45,118 | 639,893 | (93%) | | Gross Profit | 438 | 207,259 | (99.8%) | | Net Loss | (1,013,590) | (3,746,867) | 72.9% reduction | | Net Cash from Operating Activities | 171,955 | (2,878,506) | Significant improvement | - Onboarded 245 customers by June 30, 2025, a considerable increase compared to 1 new customer upon launching its SaaS services on March 28, 2025, illustrating early traction[4] - Net sales for the three months ended June 30, 2025, were $44,993, a significant increase from $125 for the three months ended March 31, 2025, primarily due to the strategic transition to SaaS solutions[4] Detailed Financial Results for Six Months Ended June 30, 2025 FiEE's H1 2025 detailed financials reflect strategic transformation, with declining sales and gross profit, but reduced operating expenses, net loss, and increased cash Net Sales and Gross Profit Analysis Analysis of FiEE's H1 2025 net sales and gross profit, reflecting the impact of the strategic shift from hardware to SaaS solutions Net Sales Breakdown (Six Months Ended June 30) | Product Category | 2025 ($) | 2024 ($) | % change | | :----------------------- | :------- | :------- | :------- | | Cable modems & gateways | - | 638,804 | (100%) | | Other network products | - | 1,089 | (100%) | | SaaS – MCN digital services | 45,118 | - | N/A | | Total Net Sales | 45,118 | 639,893 | (93%) | Gross Profit and Margin (Six Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change | | :----------- | :----- | :----- | :----- | | Gross Profit | 438 | 207,259 | (99.8%) | | Gross Margin | 1.0% | 32.4% | (31.4 pp) | - The gross margin of 1.0% in H1 2025 is not representative of future trends, as the new business was in its initial launch phase, incurring elevated upfront costs[7] Operating Expenses Breakdown Detailed breakdown of FiEE's H1 2025 operating expenses, highlighting reductions across selling, general, and R&D categories Operating Expenses (Six Months Ended June 30) | Expense Category | 2025 ($) | 2024 ($) | % Change | | :----------------------- | :------- | :------- | :------- | | Selling and marketing | 16,811 | 66,171 | (74.6%) | | General and administrative | 944,240 | 1,585,030 | (40.4%) | | Research and development | 47,419 | 113,294 | (58.1%) | | Total Operating Expenses | 1,008,470 | 3,965,424 | (74.6%) | - Selling and marketing expenses decreased due to reduced sales support costs and lower operational scale during the initial phases of business development[13] - General and administrative expenses decreased primarily due to the business transformation from hardware-focus to software-focus and cost reduction efforts[13] - Research and development expenses in 2025 were primarily used for software subscriptions and support costs, including a partnership to develop the 'FiEE All-in-One Media Operations SaaS Platform'[13] Net Loss and Earnings Per Share Analysis of FiEE's H1 2025 net loss and diluted earnings per share, showing significant reductions year-over-year Net Loss and EPS (Six Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | Change | | :-------------------- | :----------- | :----------- | :----- | | Operating Loss | (1,008,032) | (3,758,165) | 73.2% reduction | | Net Loss | (1,013,590) | (3,746,867) | 72.9% reduction | | Diluted Net Loss per Share | (0.20) | (1.27) | 84.3% reduction | Cash and Cash Equivalents Overview of FiEE's cash and cash equivalents position as of June 30, 2025, showing a substantial increase Total Cash and Cash Equivalents | Metric | June 30, 2025 ($) | Dec 31, 2024 ($) | % Change | | :------------------------ | :------------ | :----------- | :------- | | Total Cash and Cash Equivalents | 4,504,079 | 30,162 | 14899% | Unaudited Condensed Consolidated Financial Statements Presents FiEE's unaudited condensed consolidated financial statements, including balance sheets and statements of operations Unaudited Condensed Consolidated Balance Sheets Balance sheet shows increased assets (cash, intangibles), higher liabilities (SaaS contracts), and a shift to positive stockholders' equity Selected Balance Sheet Items | Item | June 30, 2025 ($) | Dec 31, 2024 ($) | Change ($) | | :-------------------------------- | :---------------- | :--------------- | :--------- | | Cash and cash equivalents | 4,504,079 | 30,162 | 4,473,917 | | Total current assets | 5,203,643 | 164,919 | 5,038,724 | | Intangible assets | 1,269,658 | - | 1,269,658 | | Total assets | 7,050,617 | 307,035 | 6,743,582 | | Contract liabilities | 1,468,346 | - | 1,468,346 | | Other payables | 1,527,933 | - | 1,527,933 | | Total current liabilities | 4,117,237 | 437,027 | 3,680,210 | | Total stockholders' equity (deficit) | 2,933,380 | (129,992) | 3,063,372 | Unaudited Condensed Consolidated Statements of Operations Statement of operations details H1 2025 performance, reflecting strategic transformation with declining sales/gross profit, but reduced operating expenses and net loss Condensed Consolidated Statements of Operations (Six Months Ended June 30) | Metric | 2025 ($) | 2024 ($) | | :------------------------------------ | :------- | :------- | | Net sales | 45,118 | 639,893 | | Cost of sales | 44,680 | 432,634 | | Gross profit | 438 | 207,259 | | Total operating expenses | 1,008,470 | 3,965,424 | | Operating loss | (1,008,032) | (3,758,165) | | Net Loss | (1,013,590) | (3,746,867) | | Basic and diluted net loss per share | (0.20) | (1.27) | Company Information and Disclosures This section provides essential company information, including its history, service offerings, and important disclosures regarding forward-looking statements About FiEE, Inc. FiEE, Inc., founded 1977 as Minim, transitioned to a 'Software First Model' in 2024, rebranding in 2025 to leverage IoT, connectivity, and AI for brand management SaaS - Founded in 1977 as Minim, Inc., the company made a strategic decision in 2024 to transition to a 'Software First Model' and rebranded as FiEE, Inc. in 2025[14] - FiEE leverages its expertise in IoT, connectivity, and AI to redefine brand management solutions in the digital era[1][14] - FiEE's services are structured into four key categories: Cloud-Managed Connectivity (WiFi) Platform, IoT Hardware Sales & Licensing, SAAS Solutions, and Professional To-C and To-B Services & Support[15] - The company has introduced innovative Software as a Service solutions that integrate AI and data analytics into content creation and brand management, aiming to nurture a robust pool of KOLs[15] Forward-Looking Statements This disclaimer emphasizes that forward-looking statements involve risks and uncertainties, advising against undue reliance and referring to SEC filings for detailed risk factors - Forward-looking statements represent the Company's expectations or beliefs concerning future events and inherently involve risks and uncertainties that could cause actual results to differ materially[16][17] - Investors should not place undue reliance on forward-looking statements and are advised to refer to the Company's filings with the U.S. Securities and Exchange Commission for detailed risk factors[17] - The Company undertakes no obligation to publicly update or revise any forward-looking statement as a result of new information, future events, or otherwise, except as required by law[17] Investor and Media Inquiries Provides contact information for investor and media inquiries - For investor and media inquiries, contact via email at fiee@dlkadvisory.com[18]