Minim(MINM) - 2024 Q1 - Quarterly Report

Financial Performance - For the three months ended March 31, 2024, net sales were $640,000, a decrease of $10.1 million or 94% compared to $10.8 million in the same period of 2023[89][96]. - Gross profit for the same period was $207,000, representing a gross margin of 32.4%, compared to $2.6 million and a gross margin of 24.3% in 2023[94][99]. - Operating loss for the three months ended March 31, 2024, was $3.27 million, a slight improvement from a loss of $3.93 million in the prior year[94]. - Selling and marketing expenses decreased by 99.4% to $21,000, primarily due to reductions in personnel expenses and marketing campaigns[101]. - General and administrative expenses decreased by 23.2% to $1.02 million, mainly due to a reduction in personnel expenses and other administrative costs[103]. - Research and development expenses for Q1 2024 were $72,000, a decrease of $1.4 million or 95.1% compared to Q1 2023[105]. Cash and Liquidity - The company had cash and cash equivalents of $1.0 million as of March 31, 2024, up from $0.7 million at the end of 2023[87]. - As of March 31, 2024, cash and cash equivalents were $1.0 million, up from $0.7 million on December 31, 2023, with negative working capital of $0.3 million[107]. - Cash used in operating activities for Q1 2024 was $2.5 million, reflecting a net loss of $3.3 million[111]. - Cash provided by financing activities in Q1 2024 included proceeds from the issuance of preferred stock totaling $2.8 million[113]. - The company has substantial doubt about its ability to continue as a going concern and will require additional liquidity to continue operations beyond the next 12 months[109]. - Future liquidity needs will be influenced by operating losses, sales timing, and expenditures related to product development and marketing[119]. - The company will continue to monitor costs in relation to sales and adjust accordingly to manage cash flow[118]. Revenue Challenges - The company continues to experience losses attributed to declining revenues, particularly from Motorola branded products[89][96]. - The majority of revenues are generated in North America, with significant challenges in sales outside the U.S. due to regulatory variations[96]. - Future gross margin is expected to be subject to variabilities similar to those experienced in Q1 2024, with several risks affecting its maintenance[100].