Boxlight(US:BOXL)2025-11-14 19:59Financial Performance - Total revenues for Q3 2025 were $29.3 million, a 19.2% decrease from $36.3 million in Q3 2024, primarily due to lower global demand for interactive flat panel displays [193]. - Cost of revenues decreased by 13.5% to $20.8 million in Q3 2025 from $24.0 million in Q3 2024, attributed to lower units sold, despite a $1.6 million increase in tariffs [194]. - Gross profit for Q3 2025 was $8.5 million, down 30.3% from $12.3 million in Q3 2024, with a gross profit margin of 29.1% compared to 33.8% in the prior year [195]. - Total revenues for the nine months ended September 30, 2025 were $82.6 million, a 26.2% decrease from $111.9 million in the same period of 2024 [201]. - Gross profit for the nine months ended September 30, 2025 was $27.4 million, down 30.9% from $39.6 million in 2024, with a gross profit margin of 33.1% compared to 35.4% in 2024 [203]. - Net loss for the nine months ended September 30, 2025 was approximately $14.1 million, compared to $11.6 million in 2024 [208]. - EBITDA for the nine months ended September 30, 2025 was $1.2 million, down from $3.0 million in 2024 [212]. - Adjusted EBITDA for the nine months ended September 30, 2025 was $1.4 million, compared to $6.0 million in 2024 [212]. Expenses - General and administrative expenses for Q3 2025 were $8.7 million, representing 29.8% of revenue, compared to $10.0 million or 27.6% of revenue in Q3 2024 [196]. - Depreciation and amortization expenses increased to $2.6 million in Q3 2025, representing 9.0% of revenue, up from $2.1 million or 5.7% of revenue in Q3 2024 [197]. - Research and development expenses for Q3 2025 were $1.1 million, representing 3.8% of revenue, compared to $1.0 million or 2.8% of revenue in Q3 2024 [198]. - General and administrative expenses for the nine months ended September 30, 2025 were $27.3 million, representing 33.0% of revenue, compared to $33.5 million or 29.9% of revenue in 2024 [204]. - Research and development expenses for the nine months ended September 30, 2025 were $3.2 million, representing 3.8% of revenue, compared to 2.8% in 2024 [206]. - Other expense, net for the nine months ended September 30, 2025 was $3.5 million, a decrease of $4.1 million from $7.6 million in 2024 [207]. Cash and Liquidity - Cash and cash equivalents as of September 30, 2025 were $11.8 million, an increase from $10.5 million in 2024, with a current ratio of 1.02 compared to 2.10 in 2024 [214]. - Net cash used in operating activities for the nine months ended September 30, 2025 was $1.8 million, slightly improved from $2.1 million in 2024 [215]. Debt and Compliance - The Company was not in compliance with its Senior Leverage Ratio and borrowing base covenants under the Credit Agreement as of December 31, 2024, and required a $2.5 million working capital bridge loan [224]. - The Company cured its borrowing base non-compliance by paying approximately $1.3 million in April and May 2025 [227]. - As of October 31, 2025, the Company was in default of certain financial and non-financial covenants and does not anticipate having the resources to pay its loan maturing on December 31, 2025 [229]. - The Company made a principal payment of $1 million on its outstanding loan balance on November 10, 2025 [230]. - The Company is actively working to refinance its existing debt and improve financial flexibility, although no agreements have been executed as of the report issuance [233]. - The Company agreed to increase its quarterly principal payment from $0.7 million to $1.0 million starting September 30, 2025, as part of the Ninth Amendment [228]. - The Company faces substantial doubt about its ability to continue as a going concern within one year after the financial statements are issued due to significant decreases in the required Senior Leverage Ratio [232]. Strategic Focus - The company is focused on integrating products from acquired companies and expanding its reseller partner network to increase market penetration [184]. - The company aims to maintain profitability through a comprehensive plan targeting core business operations [183]. - The company operates in three segments: EMEA, Americas, and Rest of World, primarily selling education technology products [181]. - The company is subject to various risks, including substantial indebtedness and competition in the industry, which may impact future performance [176]. Compliance and Governance - The Company received a notice from Nasdaq regarding non-compliance with listing requirements but submitted a compliance plan that was accepted, regaining compliance by October 8, 2025 [234]. - Following a private placement in February 2025, the Company increased its authorized shares of Class A common stock from 3,750,000 to 25,000,000 to accommodate potential warrant exercises [235]. - The Company is required to meet target completion milestones related to its recapitalization process, with an expected completion by June 16, 2025 [225].