Financial Data and Key Metrics Changes - Q4 2025 revenue declined 7.3% to $5.88 million compared to $6.35 million in Q4 2024 due to reduced customer project activity [14] - Gross profit dollars decreased to $1.2 million in Q4 2025 from $1.43 million in Q4 2024, with a gross margin of 20.4% versus 22.5% in Q4 2024 [14] - Fiscal year 2025 revenue declined 9.9% to $18.15 million from $20.14 million in 2024, with an improved gross margin percentage of 25.2% compared to 23.3% in 2024 [15][16] - Net loss for 2025 was $948,000 or minus $0.10 per share, improving from a net loss of $1.372 million or minus $0.13 per share in 2024 [16] Business Line Data and Key Metrics Changes - The company reported a solid sequential improvement in Q4 2025 revenue from Q3 2025, which was $3.57 million [11] - The company is focused on converting identified market opportunities into revenue, particularly in cinema technology upgrades and special projects [6][7] Market Data and Key Metrics Changes - The domestic box office saw a substantial rebound in the June quarter, generating approximately $2.6 billion in revenue, a 37% increase year-over-year [5] - The total domestic revenue for 2025 is expected to reach approximately $9.4 billion, supported by major year-end releases [5] Company Strategy and Development Direction - The company aims to reduce exposure to business cycles in the cinema equipment industry and seeks to build a more predictable and recurring revenue base [6][7] - The marketing plan focuses on building brand visibility and driving qualified sales leads through key industry trade shows [8] - The company is actively identifying and evaluating complementary products or services to expand its geographical reach and enhance long-term growth [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about new business opportunities driven by box office strength and customer demand for technology upgrades [4][5] - The company is navigating macroeconomic headwinds and expects a modest rebound in box office performance, which may delay technology refreshes and investments [11][12] - Management emphasized ongoing cost management and cash preservation to ensure sufficient resources for future growth [12] Other Important Information - The company recorded a Q4 2025 operating loss of $187,000, an improvement from a loss of $462,000 in Q4 2024 [15] - The net cash position grew to $5.7 million at the close of 2025, with no long-term debt [16][17] Q&A Session Summary Question: What is the size of the funnel of new opportunities compared to the beginning of the year? - The funnel of new opportunities continues to grow and evolve, with a positive outlook as customer activity increases [20][21] Question: Update on LEA professional power amplifiers? - The company remains optimistic about LEA professional power amplifiers, which are undergoing a lengthy testing process before being operationally approved [22] Question: Status on bids for large sports venues? - The company is still actively bidding on various projects related to large sports venues [23] Question: Details on the recurring revenue base? - The recurring revenue base consists of operational items dependent on the customer base, with expectations for growth as the customer base expands [25] Question: Are margins on recurring revenue above or below corporate average? - Margins on recurring revenue are generally in the middle, providing a predictable revenue and margin stream [26][28] Question: Opportunities outside the U.S.? - The company is exploring opportunities outside the U.S. but cannot provide specific timing for revenue generation from these efforts [29][30]

Financial Data and Key Metrics Changes - Q4 2025 revenue declined 7.3% to $5.88 million compared to $6.35 million in Q4 2024 due to reduced customer project activity [13] - Gross profit decreased to $1.2 million in Q4 2025 from $1.43 million in Q4 2024, with a gross margin of 20.4% versus 22.5% in Q4 2024 [13] - Fiscal year 2025 revenue declined 9.9% to $18.15 million from $20.14 million in 2024, with an improved gross margin percentage of 25.2% compared to 23.3% in 2024 [15] - The company recorded a net loss of $948,000 or minus $0.10 per share in 2025, improving from a net loss of $1.372 million or minus $0.13 per share in 2024 [15] Business Line Data and Key Metrics Changes - The company experienced a solid sequential improvement in Q4 2025 revenue from $3.57 million in Q3 2025 [10] - Operating expenses were reduced by 26.5% to $1.39 million in Q4 2025 compared to $1.89 million in Q4 2024, achieved through headcount reduction and efficiency improvements [14] Market Data and Key Metrics Changes - The domestic box office revenue saw a 37% increase year-over-year, reaching approximately $2.6 billion in the June quarter, indicating a rebound in consumer demand [4] - The total domestic revenue for 2025 is expected to be approximately $9.4 billion, supported by major year-end releases [4] Company Strategy and Development Direction - The company aims to reduce exposure to business cycles in the cinema equipment industry and seeks to build a more predictable and recurring revenue base [5] - There is a focus on expanding international channels and evaluating complementary products or services to enhance business scope and geographical reach [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about new business opportunities driven by box office strength and customer commitment to upgrading theater technologies [3][5] - The company anticipates that revenue in the second half of 2026 will be stronger than in the first half, with an expected revenue of approximately $4.9 million in Q1 2026 [16] Other Important Information - The company has grown its net cash position to $5.7 million at the close of 2025, with no long-term debt [15] - The company is actively pursuing opportunities outside the U.S. but has not provided specific timelines for revenue generation from these efforts [28][29] Q&A Session Summary Question: Size of the funnel of new opportunities compared to the beginning of the year - The funnel of new opportunities continues to grow and evolve, with a positive outlook as customer activity increases [20] Question: Update on LEA professional power amplifiers - Management remains optimistic about LEA amplifiers, noting that the sales process involves lengthy testing before operational approval [21] Question: Status of bids for large sports venues - The company is still actively bidding on various projects related to large sports venues [22] Question: Details on annual recurring revenue base - The recurring revenue base of $8 to $9 million consists of operational items and is expected to grow as the customer base expands [24] Question: Margins on recurring revenue - Margins on recurring revenue are customer-specific and product-specific, generally aligning with the corporate average [25] Question: Opportunities outside the U.S. - The company is exploring both partnerships and potential employee placements outside the U.S. but has not provided specific timelines for revenue generation [27][29]