Financial Data and Key Metrics Changes - MIND Technologies reported first quarter revenues of $7,900,000, down approximately 18% year-over-year due to the timing of $5,500,000 in orders that could not be delivered before quarter end [17][18] - The first quarter gross profit was $3,300,000, resulting in a gross profit margin of 42%, both metrics impacted by lower revenue [18] - The company experienced a net loss of approximately $970,000 compared to net income of $954,000 in the same quarter a year ago [21] - Cash flow from operations improved to approximately $4,100,000, a 98% sequential increase [22] Business Line Data and Key Metrics Changes - The aftermarket activity represented approximately 71% of revenues in the first quarter, significantly up from the historical average of 40% due to deferred system sales [13] - Marine Technology product revenues were impacted by delivery delays, with expectations for improved results in the second quarter [15][17] Market Data and Key Metrics Changes - The backlog of firm orders as of April 30, 2025, was approximately $21,000,000, an increase from $16,200,000 as of January 31, 2025 [9] - The company continues to see strength in key markets, with a favorable customer demand environment expected to drive improved results [17] Company Strategy and Development Direction - MIND Technologies is focused on optimizing its supply chain to manage lead times and meet customer delivery requirements [8] - The company is exploring innovative ways to expand and repurpose existing technology for new applications [24] - MIND aims to enhance shareholder value by pursuing strategic opportunities for growth and expanding its offerings [26] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the balance of the fiscal year despite first quarter shortfalls, expecting a much improved second quarter [8][27] - The macro environment is seen as advantageous, with strong demand for marine technology products across various industries [27] - Management acknowledges the potential impact of global economic uncertainties on customer purchasing decisions but remains confident in the company's backlog and pipeline [25][28] Other Important Information - The company is in the final stages of expanding its facility in Huntsville, Texas, which is expected to contribute significantly to revenue in the future [14][66] - Approximately $80,000,000 of net operating loss carryforwards are available for future use, which management believes can be leveraged [38] Q&A Session Summary Question: Have the delayed deliveries been completed? - Partially delivered, with one large system and a few other orders still pending [33][35] Question: What is the expected cash cycle for the delayed orders? - Expected to complete the cash cycle by the end of Q2 [37] Question: How much net operating loss carryforwards are available? - Approximately $80,000,000 [38] Question: Is there potential for new opportunities in deep-sea mining? - Yes, existing and new customers are looking to expand into exploration survey work, which aligns with MIND's product offerings [44] Question: Are there active master supply agreements with larger customers? - Yes, there are existing agreements that facilitate new business [45][47] Question: What is the expected revenue run rate for the year? - Aiming for a revenue run rate of approximately $48,000,000 to $50,000,000 [73][74] Question: What is the impact of the Texas facility expansion on revenue? - Expected to generate several million dollars a year in additional revenue [66] Question: What is the company's approach to new business lines? - Actively pursuing new opportunities and expanding offerings to existing and new customers [71]

Financial Data and Key Metrics Changes - MIND's first quarter revenues from marine technology product sales totaled $7.9 million, down approximately 18% year-over-year due to the timing of $5.5 million in orders that were unable to be delivered before quarter-end [17][18] - First quarter gross profit was $3.3 million, representing a gross profit margin of 42%, impacted by lower revenue and less cost absorption [19] - The company reported a net loss of approximately $970,000 for the first quarter, compared to net income of $954,000 in the same quarter a year ago [22] Business Line Data and Key Metrics Changes - The aftermarket activity represented approximately 71% of revenues in the first quarter, significantly higher than the historical average of 40%, due to deferrals in system sales [13] - Marine Technology product revenues were affected by the delivery delays, which are expected to be resolved in the second quarter [17][18] Market Data and Key Metrics Changes - The backlog of firm orders as of April 30, 2025, was approximately $21 million, an increase from $16.2 million as of January 31, 2025 [9] - The company continues to see strength in all key markets, with a favorable customer demand environment expected to improve results for the remainder of fiscal 2026 [18] Company Strategy and Development Direction - MIND is focused on optimizing its supply chain to manage lead times and meet customer delivery requirements, which is expected to enhance financial results [7][8] - The company is exploring innovative ways to expand and repurpose existing technology for new applications, aiming to enhance shareholder value [24][27] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the balance of the fiscal year despite the first quarter shortfall, expecting improved performance in the second quarter [7][28] - The macro environment is seen as advantageous for MIND, with strong demand for marine technology products across various industries [28] Other Important Information - The company has a clean, debt-free balance sheet following the conversion of preferred stock to common stock, enhancing financial flexibility [23] - MIND is in the final stages of expanding its facility in Huntsville, Texas, which is expected to contribute significantly to revenue in the future [13] Q&A Session Summary Question: Have the $5.5 million delayed deliveries been completed? - Partially delivered, with one large system and a few other orders still pending [34][36] Question: What is the expected impact of the tax loss carryforwards? - Approximately $80 million in net operating loss carryforwards could be utilized, but generating U.S. income is necessary to unlock that value [40][42] Question: Are there new opportunities in deep-sea mining? - Existing and potential customers are looking to expand their exploration efforts, which aligns with MIND's product offerings [46][47] Question: What is the status of master supply agreements? - MIND currently has master supply agreements with larger customers, facilitating quicker order processing [48][50] Question: What is the expected revenue from the expanded Texas facility? - The facility expansion is expected to generate several million dollars a year in additional revenue [67] Question: How is the company addressing new business lines? - MIND is actively looking to expand its offerings to existing and new customers, which is part of its strategic focus [73]