Financial Performance - Net sales decreased by 8.2% to 3.890 million for the same period in 2024 due to higher one-time sales in the prior year [106]. - Net sales for the nine months ended March 31, 2025, decreased by 12.264 million from (0.240) million for the three months ended March 31, 2025, from a net loss of 0.361 million [115]. - Net loss improved by (0.792) million for the nine months ended March 31, 2025, driven by higher gross margin and lower operating expenses [127]. Profitability - Gross profit increased by 1.063 million for the three months ended March 31, 2025, with gross profit percentage rising to 29.8% from 17.4% [108]. - Gross profit for the nine months ended March 31, 2025, increased to 3.254 million for the same period in 2024 [118]. - Gross profit increased by 3.370 million for the nine months ended March 31, 2025, with gross profit percentage rising to 27.5% from 23.6% [119]. Expenses - Research and development expenses decreased by 0.049 million for the three months ended March 31, 2025, compared to 0.055 million or 25.9% for the nine months ended March 31, 2025, due to headcount reduction [121]. - Selling, general and administrative expenses increased by 1.284 million for the three months ended March 31, 2025, compared to 0.026 million or 0.6% for the nine months ended March 31, 2025, attributed to headcount reduction and lower compensation expenses [123]. - Other income decreased by 0.107 million for the nine months ended March 31, 2025, due to lower interest income on cash savings accounts [125]. Cash Flow and Liquidity - Cash balance at March 31, 2025, was approximately 5.278 million at June 30, 2024 [128]. - Net cash provided by operating activities increased by 0.091 million for the nine months ended March 31, 2025, primarily due to cost reductions [129]. - Net cash used in investing activities was zero for the nine months ended March 31, 2025, compared to (0.334) million used for share repurchases in the prior year [132]. - Company believes existing sources of liquidity will be sufficient to fund operations for at least 12 months from the date of financial statement issuance [128]. Strategic Initiatives - The company plans to invest in sales and support operations to support new product initiatives and budget goals [96]. - The company aims to increase marketing expenditures to enhance brand recognition for its proprietary product line [98]. - The company expects to maintain gross margins despite competition and pricing pressures by focusing on increased sales volume and introducing new products with higher gross margins [99].
Moving iMage Technologies(MITQ) - 2025 Q3 - Quarterly Report