Energy Focus(EFOI) - 2025 Q3 - Quarterly Results

Financial Performance - Net sales for Q3 2025 were $0.8 million, a decrease of 30.9% compared to $1.2 million in Q3 2024, driven by a 26.6% decline in military sales and a 42.3% decline in commercial sales[2] - Net loss for Q3 2025 was $0.2 million, or $(0.03) per share, compared to a net loss of $0.3 million, or $(0.06) per share, in Q3 2024[8] - Operating loss for Q3 2025 was $0.2 million, an improvement from a loss of $0.4 million in Q3 2024[8] - The net loss for Q3 2025 was $172,000, a reduction from a net loss of $231,000 in Q2 2025 and $316,000 in Q3 2024[25] - Adjusted EBITDA loss improved to $0.1 million in Q3 2025 from a loss of $0.4 million in Q3 2024, reflecting better operational efficiency[9] - Adjusted EBITDA for Q3 2025 was $(139,000), an improvement from $(267,000) in Q2 2025 and $(395,000) in Q3 2024[25] Cash and Assets - Cash balance as of September 30, 2025, was $0.9 million, an increase from $0.6 million at the end of 2024[2] - Cash at the end of Q3 2025 was $897,000, an increase from $499,000 at the end of Q2 2025 and $819,000 at the end of Q3 2024[20] - Total current assets decreased to $4.814 million as of September 30, 2025, from $5.145 million at the end of 2024[16] Expenses and Liabilities - Total operating expenses for Q3 2025 were $322,000, down from $371,000 in Q2 2025 and $586,000 in Q3 2024[25] - Total liabilities decreased to $2.057 million as of September 30, 2025, from $2.697 million at the end of 2024[17] Sales and Profitability - Gross profit margin improved to 17.8% in Q3 2025 from 15.7% in Q3 2024, attributed to reduced costs and a more favorable product mix[5] - Adjusted gross margin for Q3 2025 was 27.2%, up from 24.5% in Q3 2024, indicating improved variable margins[7] - Gross profit for Q3 2025 was $147,000, representing a gross margin of 17.8%, compared to 12.9% in Q2 2025 and 15.7% in Q3 2024[25] Inventory and Stock - The provision for slow-moving and obsolete inventories was $78,000 in Q3 2025, up from $44,000 in Q2 2025[19] - The company issued $500,000 in common stock during Q3 2025, compared to $200,000 in Q2 2025[20] - The company completed private placements with its CEO, raising approximately $500 thousand and $200 thousand in August and June 2025, respectively[2] Commercial Sales - Commercial products sales for Q3 2025 were $202,000, a significant decrease from $773,000 in Q2 2025[21]