0001437749-26-017096
SEC filingRevenue grew 20% to $13.9M, driven by the Navitas acquisition and wholesale growth, but gross margin contracted to 33.3% and operating loss widened; net income turned positive due to a non-recurring tax benefit.
Net cash used in operating activities was $3.8 million, compared to $1.3 million in the prior year, driven by acquisition costs and strategic inventory build ahead of anticipated tariffs. Capital expenditures were minimal at $3.9 thousand. Free cash flow was negative $3.8 million. The company believes its existing cash balances, including anticipated cash flow from operations, will be sufficient to finance operations for at least the next twelve months.
Management continues to focus on optimizing spending, expanding gross margins, and improving cash flow through efficient working capital management. The shift toward wholesale may increase quarter-to-quarter variability due to the timing of larger orders from key customers. Tariff uncertainties remain a risk, but the company has taken proactive steps to manage inventory levels.