0001437749-26-014454
SEC filingRevenue declined 8.7% to $4.2M, while operating loss improved 35.3% to -$3.4M due to cost reduction initiatives.
Revenue for the first quarter of 2026 was $4.2 million, a decrease of 8.7% compared to $4.6 million in the same period last year. The decline was primarily due to lower revenue volume, as the company provides white-label Family Safety applications to two Tier 1 wireless carriers. Management believes there is an opportunity to grow subscriber bases and associated revenues with these carriers.
Gross profit was $3.3 million, down 1.6% from $3.4 million, resulting in a gross margin of 78.4%. The decrease in gross profit was driven by the period-over-period decline in revenue volume.
Net cash used in operating activities was -$3.8 million, compared to -$0.6 million in the prior year. Capital expenditures were $11,000, resulting in free cash flow of -$3.8 million. The company's principal sources of liquidity are existing cash and cash equivalents and cash generated from operations. Management is undertaking efforts to realign the cost structure with long-term business goals, strengthen the financial foundation, and accelerate the path to profitability. However, substantial doubt about the company's ability to continue as a going concern within one year remains, and historical results are not necessarily indicative of future performance.