Interlink Electronics(LINK) - 2025 Q3 - Quarterly Report

Revenue Performance - Revenue for Q3 2025 was $2,959,000, representing a 10.8% increase from $2,671,000 in Q3 2024[112]. - For the nine months ended September 30, 2025, total revenue was $9,037,000, a 4.0% increase from $8,693,000 in the same period of 2024[123]. Profitability - Gross profit for Q3 2025 was $1,238,000, with a gross margin of 41.8%, up from $1,105,000 and 41.4% in Q3 2024[116]. - Gross profit for the nine months ended September 30, 2025, was $3,725,000, representing a gross margin of 41.2%, slightly down from 42.1% in 2024[124]. Market Segmentation - Medical market revenue increased by 88.9% to $1,084,000 in Q3 2025, while industrial market revenue decreased by 27.9% to $888,000[114]. - Medical market revenue decreased by 7.7% to $2,829,000, while industrial market revenue increased by 12.5% to $3,154,000[123]. Expenses - Engineering, research and development expenses decreased by 27.2% to $354,000 in Q3 2025, down from $486,000 in Q3 2024[117]. - Engineering, research and development expenses decreased by 26.8% to $1,572,000, accounting for 12.7% of revenue[125][127]. - Selling, general and administrative expenses increased by 9.3% to $1,197,000 in Q3 2025, compared to $1,095,000 in Q3 2024[118]. - Selling, general and administrative expenses were $3,670,000, or 40.6% of revenue, showing a slight increase of 1.1% compared to the previous year[128]. - Total operating expenses for Q3 2025 were $1,551,000, a decrease from $1,581,000 in Q3 2024[112]. Net Loss - The company reported a net loss of $336,000 in Q3 2025, compared to a net loss of $523,000 in Q3 2024[112]. Cash and Working Capital - As of September 30, 2025, the company had cash and cash equivalents of $3.0 million and working capital of $4.9 million, with no indebtedness[131]. - Net cash provided by operating activities was $244,000 for the nine months ended September 30, 2025, compared to a cash used of $144,000 in 2024[133][134]. Strategic Initiatives - The company has expanded its technology platforms through acquisitions, including Calman and Conductive Transfers, enhancing its product offerings in printed electronics and wearable technology[104]. - The company plans to explore strategic relationships with technology institutes to support growth initiatives[107]. - The company maintains a global presence with manufacturing facilities in Shenzhen, California, Scotland, and England, controlling 100% of the manufacturing and shipping process[106]. Other Income and Tax - Other income for the nine months ended September 30, 2025, was $33,000, compared to $29,000 in 2024, with interest income of $18,000 and foreign currency transaction gains of $15,000[129]. - Income tax expense was 2.1% of pre-tax income for the nine months ended September 30, 2025, down from 4.0% in 2024[130]. Stock Issuance - The company entered into an At-The-Market Issuance Sales Agreement allowing for the sale of up to $6,000,000 in common stock, with approximately $5.8 million available for sale as of September 30, 2025[138].