0001104659-26-061139
SEC filingRevenue grew 15.4% to $3.1M, with gross margin expanding to 43.5%, while operating and net losses narrowed significantly.
Revenue for the first quarter of 2026 was $3.1 million, a 15.4% increase from $2.7 million in the same period last year. The growth was primarily driven by higher demand in the medical and automotive markets, reflecting our strategic focus on application-specific sensing solutions. However, revenue from the industrial market decreased due to reduced shipments and lower demand for our gas-sensing products. As noted in our Management Discussion, the timing of customer orders is inherently unpredictable and can vary period to period based on their project cycles and operating plans.
Net cash used in operating activities was -$543,000, compared to -$271,000 in the prior year, reflecting increased working capital requirements to support revenue growth. Capital expenditures remained flat at $29,000. Free cash flow was -$572,000. We believe our existing cash and cash equivalents balances will be sufficient to maintain our current operations, considering our financial condition and expected cash flows.
The company has no debt and maintains a strong liquidity position. Cash requirements for working capital, capital expenditures, and potential acquisitions have historically been funded from cash balances, operations, and equity issuances. We continue to prioritize revenue growth in targeted strategic markets, gross margin expansion, disciplined capital allocation, and the advancement of our differentiated sensing platforms.