Financial Performance - For the second quarter of 2025, the company reported a net loss of $1,290,000, or $0.39 loss per share, compared to a net loss of $201,000, or $0.06 loss per share in the same period of the prior year [1][7] - Adjusted EBITDA for the second quarter of 2025 was a loss of $1,049,000, or $0.32 loss per share, compared to a loss of $405,000, or $0.12 loss per share in the prior year [1][7] - For the first six months of 2025, the net loss was $3,442,000, or $1.03 loss per share, compared to a net loss of $952,000, or $0.28 loss per share in the same period of the previous year [1][5] - Adjusted EBITDA for the first half of 2025 was a loss of $2,998,000, or $0.90 loss per share, compared to a loss of $965,000, or $0.29 loss per share in the prior year [1][5] Sales and Backlog - Net sales for the second quarter of 2025 were $5,213,000, down from $6,601,000 in the same quarter of 2024 [7] - For the first six months of 2025, net sales decreased to $9,939,000 from $12,776,000 in the prior year [7][8] - The backlog at June 30, 2025, was $12.5 million, an increase from $12.0 million at December 31, 2024 [2][7] Operational Challenges - The company faced challenges due to lower sales from its Orbit Electronics Group, particularly the Simulator Product Solutions subsidiary, which experienced operating losses due to delivery schedule gaps [6][8] - Contract delays in the second half of 2024 negatively impacted bookings and sales in the first half of 2025 [5][8] - The company is implementing cost-cutting measures at the SPS subsidiary, aiming to reduce annual expenses by approximately $750,000 [8] Management Commentary - The President and CEO noted that the second quarter and first half of 2025 were challenging due to lower sales resulting from soft bookings in the previous year [5] - The management expressed optimism about improved bookings in the first half of 2025, which are expected to enhance sales in the second half of 2025 [9][10] Financial Position - As of June 30, 2025, the company had cash and cash equivalents of approximately $0.4 million and a current ratio of 2.1 to 1 [9] - The book value per share at June 30, 2025, was $4.31, down from $5.34 at December 31, 2024 [9]