Moving iMage Technologies(US:MITQ)2026-02-12 16:41Financial Performance - Net sales increased by 10.2% to $3.793 million for the three months ended December 31, 2025, compared to $3.441 million for the same period in 2024, driven by higher one-time sales[102]. - For the six months ended December 31, 2025, net sales increased by 7.8% to $9.375 million from $8.693 million in the same period in 2024, attributed to higher one-time sales[115]. - Net loss improved to $(0.388) million for the three months ended December 31, 2025, compared to a net loss of $(0.527) million for the same period in 2024, reflecting a reduction in loss of $0.139 million[113]. - Net income was $0.122 million for the six months ended December 31, 2025, compared to a net loss of $(0.552) million for the same period in 2024, reflecting an improvement in loss reduction of $0.674 million[126]. Gross Profit and Margins - Gross profit increased by $0.229 million or 24.5% to $1.165 million for the three months ended December 31, 2025, with gross profit percentage rising to 30.7% from 27.2% due to higher margin product revenues[104]. - Gross profit for the six months ended December 31, 2025, rose by $0.532 million or 23.1% to $2.839 million, with gross profit percentage increasing to 30.3% from 26.5% due to higher margin product revenues[117]. - The introduction of new products, including a multi-language compliance system and Direct View LED screens, is expected to enhance gross margins and offset potential price erosion[94]. Expenses - Research and development expenses remained constant at $47,000 for both the three months ended December 31, 2025, and 2024, indicating stable investment in innovation[107]. - Research and development expenses decreased by $0.014 million or 12.8% for the six months ended December 31, 2025, compared to the same period in 2024 due to headcount reduction[119]. - Selling, general and administrative expenses increased by $0.076 million or 5.2% to $1.526 million for the three months ended December 31, 2025, primarily due to higher legal expenses[109]. - Selling, general and administrative expenses decreased by $0.026 million or 0.9% for the six months ended December 31, 2025, largely due to cost reductions enacted in August 2024[122]. Cash Flow and Liquidity - The cash balance at December 31, 2025, was approximately $3.913 million, down from $5.715 million at June 30, 2025, primarily due to a $1.5 million inventory purchase[127]. - Net cash used in operating activities was $(1.802) million for the six months ended December 31, 2025, primarily due to $(2.687) million in working capital decreases[128]. - Net cash provided by operating activities was $0.038 million for the six months ended December 31, 2024, primarily due to $0.202 million in working capital increases[129]. - Net cash from investing activities was zero for the six months ended December 31, 2025, and 2024[130]. - Net cash from financing activities was zero for the six months ended December 31, 2025, and 2024[131]. - The company believes that existing sources of liquidity will be sufficient to fund operations for at least 12 months from the date the financial statements are issued[127]. Future Outlook - Estimated quarterly recurring sales revenues are projected at $2 million, indicating a stable revenue stream moving forward[102]. - The company plans to invest in sales and support operations to support new product initiatives and budget goals, aiming for a decrease in total operating expenses[91].