Tue, Aug 20, 10:05 AM (147 days ago)
For the quarter ending June 30, 2024, ZRCN Inc. reported a decrease in total assets to $24.2 million from $27.6 million, driven by declines in accounts receivable and inventory. Total liabilities also fell to $16.4 million, reflecting reductions in accounts payable and line of credit. Equity decreased to $7.8 million, primarily due to a net loss of $0.6 million and shareholder distributions. Revenue dropped 11% year-over-year to $5.8 million, with gross profit margins declining to 40.4%. Operating expenses decreased across all categories, including general and administrative costs and marketing expenses, which contributed to a loss from operations of $0.4 million. The company reported a net loss of $0.6 million, compared to $0.5 million in the prior year. Cash flow from operations improved to $1.0 million, while investing and financing activities resulted in net cash usage. ZRCN maintained liquidity with $0.4 million in cash and working capital of $12.1 million. The company secured a $15 million revolving credit facility to enhance financial flexibility moving forward. Overall, ZRCN faces challenges with revenue generation and profitability, but has sufficient liquidity to support operations in the near term.