Core Viewpoint - Lendway, Inc. reported a decline in net revenue for the three months ended September 30, 2025, primarily due to strategic decisions made to meet seasonal demand, which impacted the availability of products for sale. The company remains optimistic about future growth as it prepares for the upcoming peak season [4][3]. Financial Results - Net revenue for the quarter was $5.2 million, down from $6.6 million in the same period last year, reflecting a decrease of approximately 21.2% [4][17]. - Gross loss was $0.06 million, representing a gross margin of (1.2)%, compared to a gross profit of $1.4 million, or 21.7% of sales, in the prior year [5][6]. - Operating loss increased to $3.0 million from $1.4 million year-over-year, attributed to lower revenue and higher bulb costs [5][7]. - Net loss from continuing operations was $3.4 million, compared to a loss of $1.5 million in the same quarter of 2024 [8][9]. - Net loss attributable to Lendway was $2.9 million, or a loss of $1.61 per diluted share, compared to a loss of $1.1 million, or $0.64 per diluted share, in the previous year [9][10]. - EBITDA loss was $2.4 million, worsening from a loss of $0.6 million in the prior year [10][11]. Balance Sheet Highlights - As of September 30, 2025, cash and cash equivalents increased to $1.8 million from $0.9 million as of June 30, 2025, primarily due to debt proceeds for purchasing tulip bulbs [12][19]. - Working capital rose significantly to $11.3 million from $1.1 million, reflecting seasonal purchasing strategies [12][19]. - Total debt increased to $45.5 million from $34.1 million, driven by borrowing to fund bulb purchases [12][19]. - Total assets were reported at $105.0 million, up from $96.1 million [19]. Management Commentary - The Chairman and Co-CEO expressed confidence in the company's future, highlighting the groundwork being laid for a successful year ahead and the importance of the current quarter for preparing growing programs [3]. - The Co-CEO noted that the company is positioned to capture the full potential of the upcoming peak season [3].