Identiv(US:INVE)2025-11-10 21:38Financial Performance - For the three months ended September 30, 2025, total net revenue was $5,009,000, a decrease from $6,532,000 in the same period of 2024, representing a decline of approximately 23.3%[65]. - As of September 30, 2025, the Company reported a net loss from continuing operations of $3.451 million, compared to a net loss of $9.329 million for the same period in 2024[60]. - The Company reported a basic net loss per common share of $0.15 for the three months ended September 30, 2025, compared to a net income of $3.62 per share for the same period in 2024[60]. - For the three months ended September 30, 2024, the discontinued operations reported a net revenue of $9.045 million and a loss from discontinued operations of $4.268 million[30]. Discontinued Operations - The Company completed the sale of its Physical Security Business for approximately $143.9 million in cash on September 6, 2024[22][28]. - The total operating expenses for the discontinued operations for the nine months ended September 30, 2024, were $22.360 million, resulting in a loss from operations of $2.712 million[30]. - The total stock-based compensation expense for discontinued operations was $4.264 million for the three months ended September 30, 2024[57]. - The Company completed the sale of its Physical Security Business and access card operations, resulting in a single reportable segment: the Internet of Things (IoT) Business segment[62]. Assets and Liabilities - As of September 30, 2025, the Company reported cash equivalents of $32.6 million and treasury bills of $79.9 million[34]. - The total assets measured at fair value on a recurring basis included cash equivalents and treasury bills, with no liabilities measured at fair value[34][36]. - The Company’s total accrued expenses decreased from $2.327 million as of December 31, 2024, to $1.403 million as of September 30, 2025[41]. - The Company’s inventories decreased from $7.475 million as of December 31, 2024, to $5.909 million as of September 30, 2025[40]. Stock and Equity - The Company repurchased a total of 463,779 shares of common stock under the Stock Repurchase Program for approximately $1.9 million as of September 30, 2025[50]. - The balance of Series B convertible preferred stock increased to $28.089 million as of September 30, 2025, from $27.271 million in 2024, with cumulative dividends of $207,000 for the three months ended September 30, 2025[47]. - The Company has 10,067,167 shares of common stock reserved for future issuance as of September 30, 2025, including 7,541,449 shares issuable upon conversion of Series B convertible preferred stock[52]. Expenses and Compensation - Stock-based compensation expense for continuing operations was $2.411 million for the nine months ended September 30, 2025, compared to $2.600 million for the same period in 2024[57]. - The Company granted 561,304 restricted stock units (RSUs) with a weighted average fair value of $3.51 during the nine months ended September 30, 2025[54]. - The unrecognized compensation expense related to unvested RSUs was $3.0 million as of September 30, 2025, expected to be recognized over 1.83 years[54]. - The Company has not recognized any tax benefits from RSUs or PSUs for the nine months ended September 30, 2025[54]. Operational Metrics - The warranty accrual balance at the end of Q3 2025 was $295,000, unchanged from the previous quarter, indicating stable warranty costs[76]. - The weighted average remaining lease term for the Company's operating leases was 1.8 years as of September 30, 2025[71]. - The Company recorded restructuring expenses of $79,000 and $413,000 for the three and nine months ended September 30, 2025, respectively[68]. - The Company reported impairment charges of $323,000 and $669,000 related to operating lease right-of-use assets for the three and nine months ended September 30, 2025, respectively[72]. Accounting and Compliance - The Company is evaluating the impact of new accounting standards, including ASU 2023-09 and ASU 2024-03, which may affect future financial disclosures[25][26]. - The Company recorded depreciation expense of $532,000 for the three months ended September 30, 2025, compared to $426,000 for the same period in 2024[40]. - Total property and equipment, net, decreased from $7,694,000 as of December 31, 2024, to $7,369,000 as of September 30, 2025[67]. Revenue Sources - The Americas accounted for 51% of net revenue in Q3 2025, up from 42% in Q3 2024, while Europe and the Middle East remained at 25%[65]. - One customer represented 12% of net revenue for the three months ended September 30, 2025, compared to 16% in the same period of 2024[66].