Wed, Jun 26, 8:02 PM (117 days ago)
Emerson Radio Corp. filed an amended 10-Q for the quarter ending December 31, 2023, reflecting a review by a new independent accounting firm. Key updates include: 1. **Financial Performance**: - **Net Revenues**: Increased to $2.6 million, up 35.7% YoY due to new product models and higher demand from key customers. - **Net Product Sales**: Increased by 52.5% YoY to $2.6 million. - **Licensing Revenue**: Decreased by 81% YoY to $23,000. - **Royalty Income**: No royalty income reported, down from $105,000 YoY. - **Net Income**: Reported a loss of $421,000, compared to a loss of $241,000 YoY. 2. **Cost and Expenses**: - **Cost of Sales**: Increased by 57.5% YoY to $2.1 million. - **SG&A Expenses**: Increased by 14.4% YoY to $1.2 million. 3. **Cash Flow**: - **Operating Activities**: Used $3.0 million in cash. - **Investing Activities**: Used $18.6 million, primarily for short-term investments. - **Financing Activities**: No cash used or provided. 4. **Legal Proceedings**: Emerson secured a $6.5 million judgment against Emerson Quiet Kool, with $3.1 million recognized as income following court affirmation. 5. **Risks and Uncertainties**: Concerns include geopolitical tensions, tariffs, COVID-19 impacts, and customer concentration risks. This amendment primarily addresses the completion of the financial review and provides detailed updates on financial performance and legal proceedings.