Wed, May 15, 5:17 PM (72 days ago)
Moving iMage Technologies, Inc.'s Form 10-Q for the quarter ended March 31, 2024, reveals a mixed financial performance. Net sales increased by 4.0% to $3.89 million compared to the same period in 2023, despite fewer movie releases. However, gross profit declined by 35.1% to $676,000, reflecting a decrease in gross margin from 27.9% to 17.4%, primarily due to lower-margin equipment sales. Operating expenses decreased by 16.6% to $1.33 million, driven by reduced legal and public filing costs. The net loss widened to $601,000, compared to a loss of $424,000 in Q1 2023, due to lower gross margins despite reduced operating expenses. For the nine months ended March 31, 2024, net sales decreased by 4.5% to $13.79 million, and gross profit fell by 16.8% to $3.25 million, with a reduced gross margin of 23.6%. Operating expenses decreased by 4.5% to $4.35 million. The net loss for the nine-month period was $956,000, compared to $472,000 in the previous year, due to lower revenues and gross margins. Cash flow from operations was negative at $337,000, primarily due to net losses and changes in working capital. The cash balance stood at $5.95 million, down from $6.62 million at June 30, 2023. The company continues to face uncertainties from the COVID-19 pandemic and the 2023 SAG-AFTRA strike but expects to generate sufficient cash to sustain operations over the next 12 months.