Core Insights - Precision Optics Corporation reported its third quarter fiscal year 2025 results, highlighting a significant production backlog and a new purchase agreement with a top-tier aerospace company, ensuring minimum annual commitments of nearly $4 million for 2025 and 2026 [4][6]. Financial Performance - Revenue for Q3 2025 was $4.2 million, down from $5.2 million in Q3 2024 and $4.5 million in the previous quarter [6]. - Production revenue increased to $3.3 million compared to $3.0 million in the same quarter of the previous year, while engineering revenue decreased to $0.9 million from $2.3 million year-over-year [6]. - Gross margins fell to 10.0% from 35.5% in the same quarter last year and 23.6% in the previous quarter [6]. - The net loss for the quarter was $2.1 million, compared to a loss of $0.3 million in Q3 2024 and $1.0 million in the previous quarter [6]. Operational Highlights - The company faced initial yield issues with its single-use cystoscope production line, leading to a temporary production halt, but has since restarted with improved yields and doubled throughput [5]. - A new Unity Imaging Platform was launched, aimed at transforming endoscopic imaging device development by reducing costs and time to market [6]. - The company is expanding its production capacity to meet customer demand and has initiated production for two new programs transitioning from development [5]. Strategic Developments - The company appointed two new board members with significant industry experience, enhancing its leadership team [6]. - A common stock offering raised $5.1 million, which will be used to expand facilities to support anticipated growth [6]. Balance Sheet Overview - Total assets increased to $19.6 million as of March 31, 2025, compared to $16.9 million a year earlier [17]. - Current assets rose to $10.0 million, with cash and cash equivalents at $2.5 million [17]. - Total liabilities decreased to $6.4 million from $6.8 million year-over-year [18]. Stockholder Equity - Stockholders' equity increased to $13.2 million as of March 31, 2025, compared to $10.1 million a year earlier [18]. - The company issued 1,272,500 shares in a registered direct offering, contributing to the increase in equity [20].