Financial Performance - Net sales increased by approximately 24% to $35.2 million for the three months ended July 31, 2025, compared to $28.4 million for the same period in 2024[126]. - Net income for the three months ended July 31, 2025, was approximately $1.3 million, up from $1.1 million in the same period in 2024, reflecting a year-over-year increase of about 11%[125]. - Net sales for the six months ended July 31, 2025, increased by approximately 21% to $70.5 million, up from $58.2 million in the same period in 2024[132]. Cost and Profitability - Costs of sales increased by approximately 23% to $26.4 million, representing 75% of net sales for the three months ended July 31, 2025, compared to 76% for the same period in 2024[127]. - Gross profit margin improved to 25% for the three months ended July 31, 2025, compared to 24% for the same period in 2024, driven by operational efficiencies[128]. - Operating expenses increased by approximately $2.7 million for the six months ended July 31, 2025, primarily due to higher payroll and advertising expenses[135]. Cash Flow and Working Capital - The company reported net cash provided by operating activities of approximately $4.3 million for the six months ended July 31, 2025, compared to $1.2 million for the same period in 2024[140]. - Working capital increased to approximately $8.6 million as of July 31, 2025, from approximately $4.9 million as of January 31, 2025, primarily due to an increase in cash and inventory[138]. - Cash and cash equivalents at the end of the period increased to $9.4 million as of July 31, 2025, from $7.4 million at the end of the same period in 2024[139]. Debt and Financing - As of July 31, 2025, the company had approximately $2.0 million outstanding under its Term Loan Agreement and no borrowings under its Credit Agreement[146]. - On August 28, 2025, the company entered into an Amended and Restated Loan and Security Agreement, providing a $5.5 million revolving credit facility and a $20.0 million non-revolving line of credit[147]. - The company made an initial draw of $19.0 million on the PA Line to finance an acquisition and related expenses[148]. - The principal outstanding under the Credit Facility bears interest at a variable rate based on the Senior Funded Debt/EBITDA Ratio, with rates ranging from 2.25% to 3.25% above the applicable index rate depending on the ratio[149]. - The company completed a private placement of 2,666,667 shares of common stock at $7.50 per share, resulting in gross proceeds of approximately $20.0 million[150]. - The company anticipates that its cash resources will be sufficient to meet cash requirements for at least the next twelve months, but may require additional funding for growth[151]. Sensitivity Analysis - A 1% change in the effective interest rate applied to the T&L Note would result in a pre-tax interest expense fluctuation of approximately $23 thousand annually[154]. - A 1.0% increase in commodity prices would negatively impact costs of sales by approximately $812 thousand on an annualized basis[155].
MAMAMANCINIS HOL(MMMB) - 2026 Q2 - Quarterly Report