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Energy Focus(EFOI) - 2025 Q1 - Quarterly Results
EFOIEnergy Focus(EFOI)2025-05-13 10:03

Financial Performance - Net sales for Q1 2025 were 0.6million,adecreaseof26.10.6 million, a decrease of 26.1% compared to 0.8 million in Q1 2024, driven by a 22.7% decline in military sales and a 32.1% decline in commercial sales year-over-year[4][6] - Net loss for Q1 2025 was 0.3million,or0.3 million, or (0.05) per share, compared to a net loss of 0.4million,or0.4 million, or (0.09) per share, in Q1 2024[4][10] - Operating loss for Q1 2025 was 0.3million,animprovementfromalossof0.3 million, an improvement from a loss of 0.6 million in Q1 2024[4][10] - The company reported a net loss of 268,000forthethreemonthsendedMarch31,2025,comparedtoanetlossof268,000 for the three months ended March 31, 2025, compared to a net loss of 294,000 in the previous quarter and 418,000inthesameperiodlastyear[28]−AdjustedEBITDAforthethreemonthsendedMarch31,2025,was418,000 in the same period last year[28] - Adjusted EBITDA for the three months ended March 31, 2025, was (263,000), an improvement from (278,000)inthepreviousquarterand(278,000) in the previous quarter and (581,000) in the same period last year[28] Profitability Metrics - Gross profit margin improved to 31.5% in Q1 2025, up from 14.4% in Q1 2024, primarily due to reduced fixed costs[4][7] - Adjusted gross margin for Q1 2025 was 33.8%, compared to 22.4% in Q1 2024, reflecting lower fixed production costs despite lower sales volume[4][9] - Actual gross profit for the three months ended March 31, 2025, was 194,000,representingagrossmarginof31.5194,000, representing a gross margin of 31.5%, compared to 265,000 (20.7%) in the previous quarter and 120,000(14.4120,000 (14.4%) in the same period last year[28] - The adjusted gross margin for the three months ended March 31, 2025, was 208,000, representing 33.8%, compared to 282,000(22.1282,000 (22.1%) in the previous quarter and 187,000 (22.4%) in the same period last year[28] Cash Flow and Liquidity - Cash balance as of March 31, 2025, was 0.5million,downfrom0.5 million, down from 0.6 million as of December 31, 2024[4][12] - Cash used in operating activities for the three months ended March 31, 2025, was (272,000),comparedto(272,000), compared to (254,000) in the previous quarter and (58,000)inthesameperiodlastyear[21]−Thetotalcashattheendoftheperiodwas(58,000) in the same period last year[21] - The total cash at the end of the period was 488,000, down from 565,000attheendofthepreviousquarterand565,000 at the end of the previous quarter and 972,000 at the end of the same period last year[23] - The company generated 0.2millionthroughtimelycollectionofaccountsreceivableduringQ12025[4][12]InventoryandAccountsReceivable−Thecompanyrecordedaprovisionforslow−movingandobsoleteinventoriesof0.2 million through timely collection of accounts receivable during Q1 2025[4][12] Inventory and Accounts Receivable - The company recorded a provision for slow-moving and obsolete inventories of 14,000 for the three months ended March 31, 2025, compared to 17,000inthepreviousquarterand17,000 in the previous quarter and 67,000 in the same period last year[21] - The company experienced a significant decrease in accounts receivable, with a net increase of 223,000forthethreemonthsendedMarch31,2025,comparedtoadecreaseof223,000 for the three months ended March 31, 2025, compared to a decrease of (60,000) in the previous quarter and an increase of 1,440,000inthesameperiodlastyear[21]StrategicInitiatives−ThecompanyplanstofocusonexpandingintheGulfCooperationCouncil(GCC)regionandCentralAsia,emphasizingpartnershipsandlocalpolicymaking[3][5]−ThecompanyisinvestinginEnergyStorageSystems(ESS),AIdatacenterUPSsolutions,andmicrogriddevelopmentstocapitalizeongrowingmarketdemands[4][5]−Thecompanyenteredintoaprivateplacementagreementtosell103,627sharesat1,440,000 in the same period last year[21] Strategic Initiatives - The company plans to focus on expanding in the Gulf Cooperation Council (GCC) region and Central Asia, emphasizing partnerships and local policymaking[3][5] - The company is investing in Energy Storage Systems (ESS), AI data center UPS solutions, and microgrid developments to capitalize on growing market demands[4][5] - The company entered into a private placement agreement to sell 103,627 shares at 1.93 per share, totaling approximately 200thousand[4][12]−Thecompanyissuedcommonstockworth200 thousand[4][12] - The company issued common stock worth 200,000 during the three months ended March 31, 2025, compared to no issuance in the previous quarter and no issuance in the same period last year[23]