Boxlight(US:BOXL)2025-08-13 20:54Financial Performance - Total revenues for Q2 2025 were $30.9 million, a 19.9% decrease from $38.5 million in Q2 2024, attributed to lower global demand for interactive flat panel displays and competitive pricing [194]. - Cost of revenues decreased by 16.4% to $20.1 million in Q2 2025 from $24.0 million in Q2 2024, reflecting a reduction in units sold [195]. - Gross profit for Q2 2025 was $10.8 million, down 25.7% from $14.5 million in Q2 2024, with a gross profit margin of 35.0% compared to 37.7% in the prior year [196]. - Total revenues for the six months ended June 30, 2025 were $53.3 million, a 29.5% decrease from $75.6 million in the same period of 2024 [201]. - Gross profit for the six months ended June 30, 2025 was $18.8 million, down 31.1% from $27.3 million in 2024, with a gross profit margin of 35.4% compared to 36.2% in 2024 [203]. - Net loss for Q2 2025 was approximately $4.7 million, compared to a net loss of $1.5 million in Q2 2024, driven by the factors mentioned above [200]. - Net loss for the six months ended June 30, 2025 was approximately $8.0 million, compared to a net loss of $8.6 million in 2024 [207]. - Adjusted EBITDA for the six months ended June 30, 2025 was $1.826 million, compared to $3.831 million in 2024 [210]. Expenses - General and administrative expenses increased to $13.6 million in Q2 2025, representing 44.0% of revenue, up from $12.3 million or 32.0% of revenue in Q2 2024 [197]. - General and administrative expenses decreased to $23.6 million, representing 44.3% of revenue, compared to $27.6 million or 36.5% of revenue in 2024 [204]. - Research and development expenses were $1.1 million in Q2 2025, representing 3.7% of revenue, compared to $1.0 million or 2.6% of revenue in Q2 2024 [198]. - Research and development expenses were $2.0 million for the six months ended June 30, 2025, representing 3.8% of revenue, down from $2.2 million or 2.9% of revenue in 2024 [205]. Cash and Liquidity - Cash and cash equivalents as of June 30, 2025 were $7.6 million, with a working capital balance of ($0.5) million and a current ratio of 0.99 [212]. - Net cash used in operating activities for the six months ended June 30, 2025 was $3.1 million, an improvement from $7.3 million in 2024 [213]. Compliance and Financial Health - The company is focused on maintaining compliance with Nasdaq listing requirements and addressing its operational challenges [177]. - The Company was not in compliance with its Senior Leverage Ratio and borrowing base covenants under the Credit Agreement as of December 31, 2024, and required a $2.5 million working capital bridge loan [224]. - The Company reported stockholders' equity of ($12,896,000) as of December 31, 2024, and net losses of ($28,335,000) and ($39,156,000) for the years ended December 31, 2024, and 2023, respectively [232]. - The Company had a market value of listed securities of $2,830,180 as of April 4, 2025, failing to meet Nasdaq's continued listing requirements [232]. - The Company received a Notice from Nasdaq regarding non-compliance with listing requirements and submitted a compliance plan, which was accepted on June 20, 2025 [232]. - The Company’s ability to continue as a going concern is in doubt due to significant decreases in the required Senior Leverage Ratio and potential future non-compliance [230]. Strategic Plans - The company plans to integrate products from acquired companies and expand its reseller partner network to increase market penetration [185]. - The company aims to achieve profitability through a comprehensive plan targeting core business operations [184]. - The Company has initiated plans to recapitalize its balance sheet and refinance its current Credit Agreement to improve financial flexibility and reduce capital costs [231]. - The Company is evaluating alternatives to refinance or restructure the Series B preferred shares due to potential cash insufficiency [217]. - The Company agreed to increase its quarterly principal payment from $0.7 million to $1.0 million starting September 30, 2025, as part of the Ninth Amendment to the Credit Agreement [228]. - The Company is required to achieve a recapitalization and/or repayment of its term loan by June 16, 2025, as part of the Recapitalization Requirement [225]. - Future performance may be impacted by global economic conditions, competition, and the ability to enhance product offerings [178]. - The Company’s shareholders approved an amendment to increase the number of authorized shares of Class A common stock from 3,750,000 to 25,000,000 [233].