Minim(US:MINM)2025-11-12 21:45Financial Performance - For the three months ended September 30, 2025, the company generated net sales of $1,939,542, a significant increase from $639,893 for the same period in 2024, reflecting a growth of 210.2%[124] - Net sales for the nine months ended September 30, 2025, were $1,984,660, representing a 210% increase compared to $639,893 for the same period in 2024[132] - The company reported a net loss of $252,985 for the three months ended September 30, 2025, an improvement of 59.5% compared to a loss of $625,067 in the same period in 2024[124] - The gross profit for the three months ended September 30, 2025, was $1,647,803, compared to $207,259 for the same period in 2024, indicating a substantial increase[124] - Gross margin improved to 83% for the nine months ended September 30, 2025, up from 32.4% in the prior year, primarily due to increased operational capacity and diversification into higher-margin service lines[132] Operating Expenses - Operating expenses for the three months ended September 30, 2025, were $1,748,409, a 179.7% increase compared to $625,067 in the same period in 2024[124] - General and administrative expenses increased by $1,090,993 (174.5%) for the three months ended September 30, 2025, compared to the same period in 2024, largely due to a shift from hardware to software focus[136] - Selling and marketing expenses decreased by $17,011 (26%) for the nine months ended September 30, 2025, compared to $66,171 in 2024, attributed to reduced sales support costs[134] - Research and development expenses decreased by $66,000 (58.1%) for the nine months ended September 30, 2025, primarily for software subscriptions and support costs[139] Customer and Revenue Growth - The company onboarded 528 customers by September 30, 2025, resulting in service fees totaling $4.24 million, with $1.80 million recognized as revenue[127] - The company introduced customized software services in July 2025, securing contracts totaling $480,000, with revenue recognized based on completion progress[128] Cash Flow and Funding - Cash provided by operating activities was $2,478,829 for the nine months ended September 30, 2025, compared to cash used of $(3,783,080) in 2024[146] - As of September 30, 2025, the company had cash and cash equivalents of $6 million, a significant increase from $30,000 on December 31, 2024[142] - The company anticipates requiring approximately $10 million in total funding over the next three years to support its strategic transition to SaaS solutions[157] Strategic Initiatives - The company is actively planning to integrate blockchain technology into its operations to enhance security and efficiency[117] - The company is targeting potential acquisitions in key sectors such as artificial intelligence, hardware, and the Internet of Things to strengthen its technological capabilities[118] - The company aims to enter the Multi-Channel Network (MCN) business to connect influencers with the global market, reflecting its commitment to innovation and expansion[119] - The strategic transition from legacy hardware operations to software-as-a-service (SaaS) solutions is a critical focus, with initial sales generated in March 2025 marking a significant milestone[126] Stock and Capital Transactions - The Company entered into a Purchase Agreement with Helena Global Investment Opportunities I Ltd. allowing the issuance and sale of up to $15,000,000 of Common Stock[158] - The Company sold 1,585,366 shares of Common Stock to Cao Yu for an aggregate purchase price of $2,600,000[163] - The Company sold 853,659 shares of Common Stock to Hu Bin for an aggregate purchase price of $1,400,000[164] - The Company issued shares valued at $150,000 as a commitment fee to Helena, with $75,000 issued on May 14, 2025, and another $75,000 on August 11, 2025[162] - The number of shares issued to Helena cannot exceed 9.99% of the then issued and outstanding Common Stock[160] - The Purchase Price for each Advance will be based on 95% of the lowest VWAP for the Common Stock during the three Trading Days following Helena's receipt of the shares[161] Accounting and Compliance - The Company’s critical accounting policies include revenue recognition, product returns, inventory valuation, and costs of goods sold[169] - The Company is classified as a smaller reporting company and is not required to provide certain market risk information[170] - There were no material changes to capital commitments and contractual obligations during the nine months ended September 30, 2025[165] - The Company did not have any material off-balance sheet arrangements as of September 30, 2025[166]