0001493152-26-022222
SEC filingRevenue halved to $3.5M due to delayed backlog conversion, swinging to a net loss of $1.3M from a prior-year profit of $1.3M.
Gross profit decreased to $2.1 million from $5.2 million, resulting in a gross margin of 61.4%. The decrease in margin is driven by the Company continuing to invest in new product development and integrations with other software, including VBS, which will help drive revenue in the future. Fixed development costs on lower volume compressed margins.
Operating income swung to a loss of $1.3 million from a profit of $1.4 million in the prior year. Net loss was $1.3 million compared to net income of $1.3 million. The year-over-year decrease is attributable to increased cost of sales, only marginal declines in operating expenses, and reduced revenues.
Management estimates that most new capital bookings received in the first quarter of 2026 will be converted to revenue in 2026. However, contract terms and install dates are subject to modification and are routinely changed at the request of the customer or due to factors outside the Company’s control. If the Company is not able to obtain additional financing on a timely basis when needed, it will be forced to scale down plans for expanded marketing and sales efforts.