Financial Performance - Total revenues for Q1 2025 were $22.4 million, a 39.5% decrease from $37.1 million in Q1 2024[180] - Cost of revenues decreased by 40.8% to $14.4 million in Q1 2025 from $24.3 million in Q1 2024, attributed to lower units sold[181] - Gross profit for Q1 2025 was $8.0 million, down 37.2% from $12.8 million in Q1 2024, with a gross profit margin of 35.9% compared to 34.5% in the prior year[182] - General and administrative expenses for Q1 2025 were $10 million, representing 44.8% of revenue, down from $15.2 million or 41.1% of revenue in Q1 2024[183] - Research and development expenses for Q1 2025 were $0.9 million, representing 4.1% of revenue, compared to $1.2 million or 3.2% of revenue in Q1 2024[184] - Other expense, net for Q1 2025 was $0.5 million, a decrease of $2.1 million from $2.6 million in Q1 2024[185] - Net loss for Q1 2025 was approximately $3.2 million, down from a net loss of $7.1 million in Q1 2024[186] - For the three months ended March 31, 2025, the company reported a net loss of $3.243 million, compared to a net loss of $7.089 million for the same period in 2024, indicating a 54.4% improvement in net loss year-over-year[189] - EBITDA for the three months ended March 31, 2025, was $1.557 million, compared to a negative EBITDA of $1.543 million for the same period in 2024, reflecting a significant turnaround[189] - Adjusted EBITDA for the three months ended March 31, 2025, was a loss of $25 thousand, compared to a positive adjusted EBITDA of $179 thousand for the same period in 2024[189] Cash Flow and Liquidity - As of March 31, 2025, the company had cash and cash equivalents of $8.1 million, down from $11.8 million as of March 31, 2024, representing a decrease of 31.4%[191] - The company had net cash used in operating activities of $4.7 million for the three months ended March 31, 2025, compared to $1.9 million for the same period in 2024, indicating increased cash outflow[192] - The company expects to achieve positive cash flow from operations and is actively working to refinance its existing debt to improve financial flexibility[206] - The company anticipates that cash and cash equivalents, along with anticipated cash flows from operations, will provide sufficient liquidity for working capital needs and debt service requirements[198] - The company is facing significant challenges due to global supply chain uncertainties and increased costs of capital, which may impact its ability to access funding sources[197] Compliance and Financial Covenants - The company was not in compliance with its financial covenant related to the Senior Leverage Ratio under the Credit Agreement at multiple points, including December 31, 2024, and March 31, 2025[199][202] - The Company reported stockholders' equity of ($12,896,000) as of December 31, 2024, failing to meet the Nasdaq requirement of at least $2.5 million[208] - The Company intends to submit a compliance plan to Nasdaq within 45 days to regain compliance with Listing Rule 5550(b)[208] - The market value of the Company's listed securities was $2,830,180 as of April 4, 2025, significantly below the Nasdaq requirement of at least $35 million[208] Shareholder Matters - Following a private placement in February 2025, the Company may need to increase the number of authorized shares of Class A common stock due to the potential exercise of 1,323,000 warrants[209] - There is uncertainty regarding shareholder approval for the increase in authorized shares, which could impair the Company's ability to raise equity capital[209] Accounting and Financial Reporting - The Company has no significant off-balance sheet arrangements that could affect its financial condition or liquidity[211] - The Company’s financial statements are prepared in accordance with GAAP, requiring assumptions and estimates that could materially differ from actual results[212] - Key accounting estimates critical for understanding financial results include revenue recognition, intangible assets, and stock-based compensation expense[213] - Recent accounting pronouncements may materially impact the Company's consolidated financial condition and results of operations[215] Revenue Decline Factors - The decrease in revenues was primarily due to lower global demand for interactive flat panel displays and competitive pricing in the industry[180] - The increase in gross profit margin is primarily related to changes in product mix despite pricing pressures[182] - The company is focused on ongoing initiatives to reduce operating expenses across all cost groups[183]

Financial Performance - Total revenues for Q1 2025 were $22.4 million, a decrease of 39.5% compared to $37.1 million in Q1 2024[5] - Gross profit for Q1 2025 was $8.0 million, down 37.2% from $12.8 million in Q1 2024, with a gross profit margin of 35.9%[7] - Net loss for Q1 2025 was $3.2 million, an improvement from a net loss of $7.1 million in Q1 2024, resulting in a net loss per share of $1.41 compared to $3.81[10] - Adjusted EBITDA for Q1 2025 was a loss of $25 thousand, compared to a gain of $0.2 million in Q1 2024[13] - Revenues for Q1 2025 were $22.423 million, a decrease of 39.5% compared to $37.093 million in Q1 2024[25] - Gross profit for Q1 2025 was $8.043 million, down 37.1% from $12.815 million in Q1 2024[25] - Net loss for Q1 2025 was $3.243 million, an improvement from a net loss of $7.089 million in Q1 2024[25] - Adjusted EBITDA for Q1 2025 was $(25) thousand, compared to $179 thousand in Q1 2024[26] - Operating expenses for Q1 2025 were $10.951 million, down 33.1% from $16.420 million in Q1 2024[25] Cash and Assets - The company ended Q1 2025 with $8.1 million in cash and $1.6 million in working capital, alongside a stockholders' deficit of $15.8 million[7] - Total current assets decreased to $73.953 million in Q1 2025 from $78.382 million in Q4 2024, a decline of 5.4%[24] - Cash and cash equivalents increased slightly to $8.077 million in Q1 2025 from $8.007 million in Q4 2024[24] - Total stockholders' deficit increased to $(15.815) million in Q1 2025 from $(12.896) million in Q4 2024[24] - Total liabilities decreased to $96.002 million in Q1 2025 from $99.692 million in Q4 2024, a reduction of 1.7%[24] Strategic Initiatives - Boxlight launched the Clevertouch Max 2 in the U.S. market, moving towards a unified flat panel brand globally[7] - The company formalized partnerships with five major third-party emergency management platforms for integrated School Safety Solutions[7] - Boxlight received ISO 27001 accreditation for information security management for Clevertouch[7] - The company is strategically focusing on operational efficiency and expanding its commercial ecosystem in anticipation of renewed spending in the education sector[4] Foreign Currency Impact - The company reported a foreign currency translation adjustment of $570 thousand in Q1 2025, compared to a loss of $811 thousand in Q1 2024[25]

Market Overview - The U.S. K-12 education market size was estimated at USD 3 billion in 2021 and is expected to reach around USD 25 billion by 2030, growing at a CAGR of 27% from 2022 to 2030[41]. - The U.S. display market is projected to reach USD 40 billion by 2028, with corporate sector sales expected to account for approximately 19% of the global display market by 2027[39]. - The E-learning market was valued at USD 250 billion in 2023 and is expected to reach USD 490.2 billion by 2029, growing at a CAGR of 11.89%[47]. - The global expenditure on education and training is expected to reach USD 10 trillion by 2030, indicating a growing market for educational technology[42]. Company Achievements - Boxlight has sold its solutions into more than 70 countries and over 1.5 million classrooms and meeting spaces[19]. - Boxlight received multiple awards in 2024, including recognition as one of the World's Top 250 EdTech companies and eight product and innovation awards at the ISTELive 2024 conference[21]. Product Offerings - Boxlight aims to become a single source solution for educators globally, providing a holistic approach to modern classrooms[20]. - Boxlight's products are backed by nearly 40 years of research and development, ensuring a comprehensive and integrated line of interactive display solutions[19]. - Boxlight's Clevertouch Max 2 offers interactive displays in sizes 65", 75", and 86", featuring up to 40 touch points for simultaneous user interaction[53]. - The Clevertouch Lux model supports up to 40 touch points and integrates seamlessly with Windows Ink-compliant applications, enhancing user experience[54]. - The Clevertouch Edge is designed for conference rooms, featuring a built-in 4K camera with advanced tracking capabilities for improved virtual meeting experiences[55]. - CleverLive Digital Signage platform includes over 200 editable templates and features for multimedia content management, enhancing user engagement[61]. - The Mimio DS Series displays are available in sizes from 43" to 98", running on Android 11 with advanced connectivity options[63]. - The Cleverhub device allows educational institutions to upgrade legacy systems without a complete overhaul, enhancing collaboration and content sharing[65]. - Boxlight's STEM product portfolio has expanded through acquisitions, including Modern Robotics and MyStemKits, providing over 300 lessons for 3D printing[77][78]. - The MimioView 350U document camera integrates with MimioStudio software for easy use, providing high-definition images with a single cable connection[80]. - The Juno classroom audio system offers premium features like feedback suppression and Bluetooth, enhancing sound quality in educational settings[70]. - The Conductor School Communication System allows for comprehensive audio coverage and integrates with digital signage for synchronized alerts[76]. - The Mimio suite integrates hardware and software to create a Connected Classroom, enhancing educators' decision-making with systematic data on student performance[81]. - MimioStudio allows for the creation and management of interactive lessons, operable from various Boxlight display systems and mobile devices[82]. - The introduction of MimioMobile in 2014 enabled fully interactive student activities displayed on classroom devices, enhancing engagement and assessment capabilities[83]. - MyClass platform offers over 10,000 premade digital lessons, facilitating collaboration and assessment, and integrates with major Learning Management Systems (LMS)[88]. Financial Performance - The company incurred net losses attributable to common stockholders of $29.6 million and $40.4 million for the fiscal years ended December 31, 2024 and 2023, respectively[146]. - Total revenues declined by 23.1% from $176.7 million in 2023 to $135.9 million in 2024[146]. - Approximately 73% of the company's revenues for the year ended December 31, 2024, were generated from sales of interactive display products[158]. - Sales outside the U.S. represented 55% of the company's revenues for the year ended December 31, 2024[159]. Debt and Financing - The company secured a term loan credit facility of $58.5 million, with a delayed draw facility of up to $10 million, secured by its assets[105]. - The interest rate on the term loans is LIBOR plus 10.75%, with quarterly principal payments of $625,000 starting March 31, 2022[105]. - The Company entered into a third amendment to the Credit Agreement in April 2023, securing an additional $3.0 million delayed draw term loan, which was repaid in July 2023 without penalties[111]. - In June 2023, the Company replaced LIBOR-based rates with a SOFR-based rate, with a minimum interest rate floor of 1%[112]. - As of December 31, 2024, the Company owed $37.6 million under the Credit Agreement and has faced non-compliance with certain covenants, raising doubts about its ability to continue as a going concern[124]. - The Senior Leverage Ratio requirement was amended from 2.00 to 6.00 for March 31, 2024, and will remain at 1.75 thereafter[113]. - The Company obtained a waiver in November 2024 for defaults related to financial covenants and paid down approximately $1.1 million under the Credit Agreement[117]. - An eighth amendment in March 2025 provided an additional $2.5 million working capital bridge loan, with a fee of 6% on the loan amount[118]. - The Company has a significant amount of indebtedness, approximately $38 million, all secured, which could adversely affect cash flow and operations[130]. - The Company is required to pay a fee equal to 6% of the total borrowings under the Credit Agreement, which could impact cash flow management[114]. Challenges and Risks - The company faces substantial competition in the interactive education industry, which may lead to price reductions and loss of market share[163]. - The company is subject to seasonal fluctuations, with significant revenue variations expected in the second and third calendar quarters[161]. - Increased tariffs and changes in international trade relations may adversely impact the company's business and financial condition[159]. - The company may experience challenges in raising additional capital due to substantial indebtedness and limited availability of shares[143]. - The company faces challenges in enhancing and developing new products due to rapid technological changes and competition from alternatives like tablet computers[168]. - The education market represents a significant portion of the company's revenue, and its future growth in business and government sectors depends on successful expansion strategies[171]. - The company may experience sales decline in developed markets due to market saturation, particularly in the U.S., U.K., and Australia[173]. - Growth in foreign markets requires customized solutions and competitive pricing, which may reduce gross margins[176]. - The company relies on third-party suppliers for components, and disruptions in supply chains could adversely affect revenue[179]. - The company must attract and retain skilled personnel to operate effectively, as competition for talent in the high-technology industry is intense[180]. - Strategic alliances with third parties are essential for accessing new technologies, but the company may face challenges in maintaining these relationships[183]. - The company is streamlining its brand strategy to position for future growth, but unsuccessful execution could negatively impact revenues[184]. - Decreases in government funding for education could materially affect the company's revenue, as many customers depend heavily on such funding[191]. - Any stagnation or adverse changes in funding for educational institutions could lead to reduced purchases of the company's products, resulting in lost revenue[193]. - The company is subject to various product safety and environmental regulations, which could materially affect financial performance if compliance is not met[194]. - The company faces risks related to foreign operations, including increased costs and complexities in compliance with local laws and regulations[196]. - The company is exposed to fluctuations in foreign currencies, which may materially adversely affect its results of operations[203]. - The company has significant foreign operations that require substantial management attention and resources[196]. - The company must comply with the Foreign Corrupt Practices Act and similar international laws, which could expose it to penalties if violated[197]. - The company may face challenges in obtaining patents or protecting its intellectual property, which is crucial for its competitive advantage[209]. - The company has historically provided product warranties averaging between three and five years, which could lead to significant costs if defects occur[208]. - The company is at risk of increased transportation costs due to oil price fluctuations and changes in customs or tariffs, which could harm its competitive position[201]. - The company must anticipate consumer preferences and successfully develop attractive products to maintain or increase revenue[217].

Financial Performance - Total revenues for Q4'24 were $24.0 million, a decrease of 38.2% from $38.8 million in Q4'23[5] - Gross profit for Q4'24 was $7.3 million, down 40.3% from $12.3 million in Q4'23, with a gross profit margin of 30.6%[6] - Net loss for Q4'24 was $16.7 million, compared to a net loss of $17.7 million in Q4'23, with net loss per share of ($8.65) versus ($9.35) in the prior year[7] - Total revenues for FY'24 were $135.9 million, a decrease of 23.1% from $176.7 million in FY'23[13] - FY'24 gross profit was $46.9 million, representing a gross profit margin of 34.5%, down from 35.8% in FY'23[13] - Net loss for FY'24 was $28.3 million, compared to $39.2 million in FY'23, with net loss attributable to common shareholders of $29.6 million[15] - Total revenues for the year ended December 31, 2024, decreased to $135.893 million, down 23.1% from $176.721 million in 2023[33] - Gross profit for 2024 was $46.941 million, representing a decline of 25.9% compared to $63.302 million in 2023[33] - Net loss attributable to common stockholders for 2024 was $29.604 million, an improvement from a net loss of $40.425 million in 2023[33] - The company reported a comprehensive loss of $29.409 million for 2024, compared to a comprehensive loss of $36.941 million in 2023[33] Operating Expenses - Total operating expenses for FY'24 were $66.4 million, down from $89.6 million in FY'23, primarily due to cost reduction initiatives[14] - Operating expenses for 2024 were $66.411 million, down 25.8% from $89.602 million in 2023[33] - Research and development expenses increased to $4.126 million in 2024, up 30.8% from $3.155 million in 2023[33] Cash and Assets - The company ended Q4'24 with $8.0 million in cash and $1.3 million in working capital[17] - Total current assets decreased to $78.382 million in 2024, down 24.3% from $103.580 million in 2023[29] - Cash and cash equivalents decreased significantly to $8.007 million in 2024, down 53.6% from $17.253 million in 2023[29] - Total assets decreased to $115.305 million in 2024, down 28.7% from $161.773 million in 2023[29] Liabilities - Total liabilities increased to $99.692 million in 2024, compared to $116.513 million in 2023, reflecting a decrease of 14.4%[30] Business Developments - Boxlight opened a new showroom in Poland in August 2024 and launched a unified worldwide display brand as Clevertouch by Boxlight[7] - Analysts project a market recovery beginning in the second half of 2025, which may benefit Boxlight's performance[4]

Financial Performance - Total revenues for Q3 2024 were $36.3 million, a 26.9% decrease from $49.7 million in Q3 2023, primarily due to lower global demand for interactive flat panel displays [172]. - Cost of revenues decreased by 24.1% to $24.0 million in Q3 2024 from $31.7 million in Q3 2023, attributed to a decrease in units sold [173]. - Gross profit for Q3 2024 was $12.3 million, down 32.0% from $18.0 million in Q3 2023, with a gross profit margin of 33.8% compared to 36.3% in the prior year [174]. - Total revenues for the nine months ended September 30, 2024 were $111.9 million, a decrease of 18.9% compared to $137.9 million for the same period in 2023 [180]. - Gross profit for the nine months ended September 30, 2024 was $39.6 million, down 22.3% from $51.0 million in 2023, with a gross profit margin of 35.4% compared to 37.0% in the prior year [182]. - Net loss for the nine months ended September 30, 2024 was $11.6 million, compared to a net loss of $21.5 million for the same period in 2023 [186]. Expenses - General and administrative expenses for Q3 2024 were $12.1 million, representing 33.3% of revenue, compared to $15.4 million or 31.0% of revenue in Q3 2023 [175]. - General and administrative expenses for the nine months ended September 30, 2024 were $39.7 million, representing 35.4% of revenue, an increase from 32.9% of revenue in 2023 [183]. - Research and development expenses increased to $1.0 million in Q3 2024, representing 2.8% of revenue, up from $979 thousand or 2.0% of revenue in Q3 2023 [176]. - Research and development expenses increased to $3.2 million for the nine months ended September 30, 2024, representing 2.8% of revenue, up from 1.5% in 2023 [184]. - Other net expense for Q3 2024 was $2.2 million, a decrease of $0.9 million from $3.1 million in Q3 2023, primarily due to realized foreign currency gains and losses [177]. Cash Flow and Liquidity - Cash and cash equivalents as of September 30, 2024 were $10.5 million, down from $18.4 million a year earlier [192]. - Net cash used in operating activities for the nine months ended September 30, 2024 was $2.1 million, compared to $8.2 million provided in 2023 [193]. - The company entered into a working capital loan with Whitehawk for $5.0 million, with $2.0 million funded on April 19, 2024 [195]. - The company was not in compliance with its Senior Leverage Ratio financial covenant under the Credit Agreement at September 30, 2024 [202]. - Current forecast projects that the company may not be able to maintain compliance with the Senior Leverage Ratio, raising substantial doubt about its ability to continue as a going concern [203]. - The company's continuation as a going concern depends on achieving positive cash flow from operations and refinancing its Credit Agreement with favorable terms [204]. Internal Controls and Compliance - The company is in the process of remediating material weaknesses in internal controls over financial reporting, including adding finance and accounting personnel [213]. - The company plans to develop new written accounting policies and increase training for relevant personnel to uphold internal control standards [214]. - The principal executive and financial officers concluded that the company's disclosure controls and procedures were not effective due to material weaknesses [211]. - The company believes that its unaudited condensed consolidated financial statements fairly present its financial condition and results of operations [212]. Strategic Initiatives - The company aims to achieve profitability through strategic business acquisitions and integrating acquired products to enhance sales productivity [160]. - The company has implemented initiatives to reduce operating expenses across all cost groups, leading to significant declines in employee-related expenses [175]. - The company is focused on expanding its reseller partner network to increase market penetration and reach [160]. - Future growth strategies may include targeting additional acquisition opportunities to complement existing business operations [161]. Legal Matters - The company anticipates being involved in legal proceedings arising in the ordinary course of business, but does not expect these to materially affect its financial position [218]. Nasdaq Compliance - As of February 28, 2024, the company received a notification from Nasdaq indicating it no longer met the Bid Price Rule, with a compliance deadline extended to February 24, 2025 [205]. Off-Balance Sheet Arrangements - The company has no significant off-balance sheet arrangements that could materially affect its financial condition or liquidity [206].

Financial Data and Key Metrics Changes - Revenues for Q3 2024 were $36.3 million, a decrease of 26.9% compared to $49.7 million in Q3 2023 [22] - Gross profit for the quarter was $12.3 million, down from $18 million in the prior year, with a gross profit margin of 33.8%, a decrease of 250 basis points year-over-year [24] - The company reported a net loss of $3.1 million or $0.34 per share, compared to a net loss of approximately $17.8 million or $1.90 per share in the prior year [26] - Adjusted EBITDA for Q3 2024 was $2.2 million, down from $4.9 million in Q3 2023 [27] - Total operating expenses for Q3 2024 were $13.1 million, significantly reduced from $29.6 million in Q3 2023 [25] Business Line Data and Key Metrics Changes - Flat panel displays accounted for approximately 72% of total revenues, while audio solutions comprised 12% [23] - EMEA revenues made up about 49% of total revenues, totaling $18 million, while Americas revenues were approximately 48%, totaling $17 million [22] Market Data and Key Metrics Changes - Demand for interactive flat panel displays (IFPD) remains soft, particularly in the U.S., while Europe has shown stronger performance, with returns in Germany and Belgium up 29% and 18% respectively [16] Company Strategy and Development Direction - The company is simplifying its brand structure, consolidating major product lines under three solution categories: Clevertouch for display products, FrontRow for audio and communication solutions, and Mimio for STEM solutions [8][9] - The focus is on aligning expenses with current revenue levels and enhancing product offerings to provide a robust end-to-end suite of solutions [7][11] - The company aims to capture market share by leveraging its broad portfolio and competitive advantages against industry players [11] Management's Comments on Operating Environment and Future Outlook - Management expressed a bullish long-term outlook for the market, citing growth areas in classroom solutions, digital signage, and higher education [17][41] - The current market conditions are expected to lead to quarter-to-quarter volatility, but the company is positioned for recovery as market conditions improve [18][41] - Management acknowledged the challenges of a prolonged industry softness but remains optimistic about future growth opportunities [41] Other Important Information - The company repaid a $4 million bridge loan early, which was used to meet short-term working capital needs [20] - As of September 30, 2024, the company had $10.5 million in cash and $141.5 million in total assets [28] Q&A Session Summary Question: Impact of consolidating to one brand on exclusive channel partner agreements - Management clarified that the move to expand the Clevertouch brand is seen as beneficial and has been positively received by partners [30][31] Question: Reasons for the rapid market shrinkage in the U.S. - Management attributed the decline to a previous period of heavy spending and the durability of existing devices, leading to a slowdown in refresh cycles [35][36] Question: Insights on the long-term outlook amidst weakening demand trends - Management remains cautiously optimistic, citing historical resilience and signs of recovery in certain markets [39][41] Question: Compliance with senior credit agreement - Management confirmed they are in the process of finalizing a waiver related to a senior leverage ratio covenant that was not met for Q3 [42][43] Question: Thoughts on U.S. tariffs and their impact - Management indicated preparedness for potential tariff impacts and emphasized proactive planning with suppliers [52][53] Question: Opportunities in higher education and enterprise markets - Management highlighted the potential for growth in these sectors, noting the need for enhanced communication technology in various settings [56][58]

Financial Performance - Boxlight Corporation reported a quarterly loss of $0.34 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.09, representing an earnings surprise of -277.78% [1] - The company's revenues for the quarter ended September 2024 were $36.29 million, missing the Zacks Consensus Estimate by 18.82%, and down from $49.67 million a year ago [2] - Over the last four quarters, Boxlight has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - Boxlight shares have declined approximately 48.6% since the beginning of the year, contrasting with the S&P 500's gain of 25.5% [3] - The current Zacks Rank for Boxlight is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is -$0.29 on revenues of $36.05 million, and for the current fiscal year, it is -$1.26 on revenues of $156.36 million [7] - The outlook for the Technology Services industry, where Boxlight operates, is currently in the top 28% of over 250 Zacks industries, suggesting a favorable environment for performance [8]

Financial Performance - Revenue for Q3 2024 was $36.3 million, a decrease of 26.9% from $49.7 million in Q3 2023[1][2] - Gross profit margin decreased to 33.8% in Q3 2024 from 36.3% in Q3 2023, with gross profit down 32.0% to $12.3 million[1][4] - Net loss for Q3 2024 was $3.1 million, significantly improved from a net loss of $17.8 million in Q3 2023[1][6] - Adjusted EBITDA for Q3 2024 was $2.2 million, down from $4.9 million in Q3 2023[1][9] - Total revenues for the nine months ended September 30, 2024, were $111.9 million, an 18.9% decrease from $137.9 million in the same period of 2023[1][10] - Total revenues for the three months ended September 30, 2024, were $36,289, a decrease of 27% compared to $49,667 in the same period of 2023[27] - Adjusted EBITDA for the nine months ended September 30, 2024, was $6,026, down from $13,652 in the same period of 2023, a decrease of 56%[31] Operating Expenses - Total operating expenses were $13.1 million, a reduction from $29.6 million in Q3 2023, primarily due to planned cost-cutting initiatives[1][5] - Operating expenses for the three months ended September 30, 2024, totaled $13,111, significantly lower than $29,613 in the same period of 2023, a decrease of 56%[29] Cash and Working Capital - Cash and cash equivalents at the end of Q3 2024 were $10.5 million, with total working capital of $45.8 million[1][16] - Cash and cash equivalents as of September 30, 2024, were $10,493, down from $17,253 as of December 31, 2023[28] - Total current assets decreased to $87,357 as of September 30, 2024, from $100,378 as of December 31, 2023, a decline of 13%[28] - Total liabilities decreased to $106,344 as of September 30, 2024, from $113,311 as of December 31, 2023, a reduction of 6%[28] Product Development and Certifications - The company launched the new IMPACT Max 2 interactive panel, enhancing its product offerings in the interactive technology sector[1][2] - Boxlight achieved Cyber Essentials certification, ensuring product safety across all Clevertouch products[1][1] Compliance and Financial Agreements - The company is finalizing an amendment to its Credit Agreement due to noncompliance with financial covenants[1][17] Comprehensive Loss - The company reported a comprehensive loss of $791 for the three months ended September 30, 2024, compared to a comprehensive loss of $20,604 in the same period of 2023[29]

Financial Performance - Total revenues for Q2 2024 were $38.5 million, a decrease of 18.1% from $47.1 million in Q2 2023, primarily due to lower global demand for interactive flat panel displays [132]. - Gross profit for Q2 2024 was $14.5 million, down 18.5% from $17.8 million in Q2 2023, with a gross profit margin of 37.7% compared to 37.9% in Q2 2023 [133]. - Total revenues for the six months ended June 30, 2024 were $75.6 million, a 14.3% decrease from $88.2 million in the same period of 2023 [136]. - Gross profit for the six months ended June 30, 2024 was $27.3 million, down 17.1% from $33.0 million in 2023, with a gross profit margin of 36.2% compared to 37.4% in 2023 [137]. - Net loss for Q2 2024 was $1.5 million, compared to a net loss of $0.8 million in Q2 2023, reflecting the changes in revenues and expenses noted above [135]. - Net loss for the six months ended June 30, 2024 was $8.6 million, compared to a net loss of $3.7 million in 2023 [139]. Expenses - Cost of revenues decreased by 17.9% to $24.0 million in Q2 2024 from $29.2 million in Q2 2023, attributed to a decrease in units sold [132]. - General and administrative expenses for Q2 2024 were $12.3 million, representing 32.0% of revenue, a slight decrease from $15.2 million or 32.4% of revenue in Q2 2023 [133]. - General and administrative expenses decreased to $27.6 million, representing 36.5% of revenue, compared to $30.0 million or 33.9% of revenue in 2023 [137]. - Research and development expenses increased to $985 thousand in Q2 2024, representing 2.6% of revenue, up from $525 thousand or 1.1% of revenue in Q2 2023 [134]. - Research and development expenses increased to $2.2 million, representing 2.9% of revenue, up from $1.1 million or 1.3% of revenue in 2023 [138]. - Other expense, net for Q2 2024 was $2.8 million, an increase of $0.2 million from $2.6 million in Q2 2023, primarily due to interest expense on term loans [135]. Cash and Liquidity - Cash and cash equivalents as of June 30, 2024 were $7.5 million, down from $15.6 million on June 30, 2023 [144]. - Net cash used in operating activities for the six months ended June 30, 2024 was $7.3 million, compared to $10 thousand in 2023 [145]. - The company had a working capital balance of $46.7 million and a current ratio of 2.21 as of June 30, 2024, down from a working capital balance of $64.8 million and a current ratio of 2.79 in 2023 [144]. Compliance and Debt Management - The company is not in compliance with its Senior Leverage Ratio financial covenant under the Credit Agreement as of June 30, 2024, but has obtained a waiver for the leverage ratio default [151]. - The company is actively working to refinance its debt with new lenders on more favorable terms, although no agreements have been executed as of the issuance of the financial statements [153]. Strategic Initiatives - The company aims to achieve significant cost-savings through merging operations of acquired companies and leveraging economies of scale [125]. - The company has implemented a comprehensive plan to reach and maintain profitability through core business operations and strategic acquisitions [123]. - The company is focused on expanding its reseller partner network in key territories and new markets to increase penetration and reach [123]. Accounting Policies - The company prepares its financial statements in accordance with GAAP, requiring assumptions and estimates about future events that may materially affect reported amounts [156]. - Significant accounting policies include revenue recognition, intangible assets, stock-based compensation expense, and income taxes, which require complex judgments [157]. - The company regularly reviews its accounting policies and estimates to ensure fair presentation of financial statements [156].

Financial Data and Key Metrics Changes - Revenues for Q2 2024 were $38.5 million, an 18.1% decrease from $47.1 million in Q2 2023 [17] - Gross profit for the quarter was $14.5 million, down from $17.8 million year-over-year, with a gross profit margin of 37.7%, a decrease of 20 basis points compared to the prior year [18] - The company reported a net loss of $1.5 million or $0.18 per share for the quarter, compared to a net loss of approximately $800,000 or $0.12 per share in the prior year [18] - Adjusted EBITDA for Q2 2024 was $3.7 million, down from $5.4 million in Q2 2023 [19] Business Line Data and Key Metrics Changes - Flat panel displays accounted for approximately 71% of total revenues, while audio solutions comprised 12% [17] - The company has introduced new products such as UNITY and TimeSign, which are expected to drive demand in the future [10][11] Market Data and Key Metrics Changes - EMEA revenues made up approximately 44% of total revenues, while Americas revenues totaled about 55% [17] - The company noted that demand remains soft in some of its largest markets, particularly in the U.S. for interactive flat panel displays [6][22] Company Strategy and Development Direction - The company is focused on adjusting its cost structure to align with current market realities and aims for ongoing consistent profitability [5][6] - Boxlight is responding to market needs with updated products and services, particularly in areas like emergency preparedness and STEM education [7][10] - The company is working on improving its capital structure and collaborating with banking partners to secure long-term alternatives to its current credit facility [13] Management's Comments on Operating Environment and Future Outlook - Management indicated that market conditions are challenging and are expected to remain so until a broader growth cycle returns [6][20] - The company is optimistic about its long-term outlook and believes it is well-positioned to gain market share as conditions improve [6][13] Other Important Information - The company eliminated approximately $5 million in fixed costs in Q1 2024, contributing to a 15.8% decrease in operating expenses quarter-over-quarter [16] - At June 30, 2024, Boxlight had $7.5 million in cash and $46.7 million in working capital [20] Q&A Session Summary Question: What has changed in the last 3 months regarding market conditions? - Management noted that the U.S. market for interactive flat panel displays has remained soft longer than anticipated, with some markets showing improvement while others remain uncertain [22][23] Question: What factors contributed to the strong gross margin in Q2? - The strong margin was attributed to a positive mix shift with increasing audio sales, which carry a higher margin, offsetting some competitive pricing pressures [24][27] Question: Are there further opportunities for cost reductions? - Management indicated that they have made significant progress in aligning operating expenses with revenue and are committed to further reductions as needed [31] Question: What is the tone of discussions with customers? - Management observed a disparity in customer sentiment, with solution providers feeling optimistic about demand recovery, while volume producers expressed concern over market conditions [33] Question: Will there be a sequential uptick in Q3 revenues? - Management expressed uncertainty about Q3 performance, noting that historical trends have not been reliable indicators this year [36]