Tue, May 20, 7:56 PM (49 days ago)
**BOXABL Inc. (Ticker: BOXABL) - Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $123,000 (Q1 2025) vs. $625,000 (Q1 2024), primarily due to delays in recognizing revenue from seven Casitas shipped to a customer. - **Net Loss:** $10,263,000 (Q1 2025) vs. $12,051,000 (Q1 2024). - **Gross Loss:** $1,995,000 (Q1 2025) vs. $3,785,000 (Q1 2024). - **Operating Expenses:** $8,740,000 (Q1 2025) vs. $8,835,000 (Q1 2024). - **Cash Flow:** Net cash used in operating activities was $12,474,000 (Q1 2025) vs. $10,146,000 (Q1 2024). **Profit Margins:** - **Gross Margin:** Negative, indicating higher costs of goods sold relative to revenue. - **Operating Margin:** Negative, reflecting high operating expenses. **Cash Flow:** - **Operating Cash Flow:** Negative $12,474,000 (Q1 2025). - **Investing Cash Flow:** Positive $8,682,000 (Q1 2025), primarily due to sales and maturities of investments. - **Financing Cash Flow:** Positive $9,455,000 (Q1 2025), from proceeds from the issuance of preferred stock. **Earnings Changes:** - **Net Loss per Share:** $0.00 (Q1 2025 and Q1 2024), due to the weighted average of common shares outstanding. **Quarterly Performance Discussion:** - **Revenue Trends:** Decreased due to delays in obtaining state modular approvals and customer readiness. - **Operating Expenses:** Increased sales and marketing expenses offset by decreases in general and administrative and research and development expenses. - **Stock-Based Compensation:** $2,943,000 (Q1 2025) vs. $3,044,000 (Q1 2024), reflecting employee forfeitures and vesting of stock options and RSUs. **Trends and Uncertainties:** - **Sales Trends:** 718 Casitas manufactured, 279 delivered. Customer deposits total $3.4 million. - **Product Development:** Launch of Baby Box and Phase 2 Modular Building System. - **Tariffs and Inflation:** New tariff measures evaluated; operations supported by inventory and domestic procurement. **Future Operations Impact:** - **Going Concern:** Substantial doubt about the ability to continue as a going concern due to slower sales and delays in obtaining approvals. - **Liquidity:** Current capital and expected funding sufficient for operations over the next 12 months. - **Sales of Securities:** Ongoing offerings under Regulation A, Regulation D, and in Canada. **Management's Plan:** - Continue tight cash controls, accelerate product sales, and raise funds through equity financing. - Expand dealer and installer network, obtain additional state approvals, and develop new product lines. **Legal and Contingencies:** - Various legal proceedings and claims, with management believing no material impact on financial position. - Material weaknesses in internal controls identified, with remediation efforts underway. **Segment Information:** - Operates as one segment, with the Chief Financial Officer as the chief operating decision maker. **Subsequent Events:** - Shipped 1 unit post-Q1 2025, with 39 units under contract and 161 units contracted with B2B customers. - Issued additional shares of Series A-3 Preferred Stock for gross proceeds of $14,510,000. **Conclusion:** BOXABL faces challenges due to regulatory delays and slower sales, but is taking steps to improve liquidity and expand its product offerings. The company's ability to continue as a going concern is dependent on successful revenue growth and additional capital raising efforts.