MOVING iMAGE TECHNOLOGIES INC. SEC 10-K Report

Moving iMage Technologies Inc., a company specializing in providing technology, products, and services to movie theater operators and sports and entertainment venues, has released its annual 10-K report. The report details the company's financial performance, business operations, strategic initiatives, and the challenges it faces in the competitive market.

Financial Highlights

• Net Sales: $18.147 million, a decrease of 9.9% from the prior year, primarily due to the protracted SAG/AFTRA strike.
• Gross Profit: $4.573 million, a decrease of 2.3% from the prior year, with gross margin increasing to 25.2% from 23.3% due to product mix changes.
• Net Loss: $(0.948) million, an improvement of $0.424 million from the prior year, largely due to staff reductions related to headcount reduction in 2025.

Business Highlights

• Corporate Overview: Moving iMage Technologies, Inc. was incorporated in June 2020 and has evolved through acquisitions and restructuring, including the acquisition of Caddy Products in 2019. The company provides technology, products, and services to movie theater operators and sports and entertainment venues.
• Product and Service Offerings: The company offers project management services, proprietary products, and resells third-party technologies. Key offerings include ADA-compliant accessibility products, a SaaS platform for theater management, and a translator service for multi-language movie viewing.
• Industry Trends: The movie exhibition industry is recovering post-pandemic, with a focus on enhancing the movie-going experience through new platforms and product offerings. International markets are increasingly important, contributing significantly to global box office revenues.
• Technological Advancements: The company is involved in the deployment of laser projectors, which offer significant advantages over traditional lamp-based systems. They are also pioneering Direct View LED screens, which are seen as disruptive to traditional projection methods.
• New Product Launches: Recent product introductions include a theater management SaaS platform, a translator service for multi-language viewing, and a mobile cart for eSports and gaming in theaters.
• Operational Challenges: The company faced challenges due to the COVID-19 pandemic and the SAG/AFTRA strikes, impacting movie production and releases. However, theaters have largely reopened, and the industry is gradually recovering.
• Future Outlook: The company plans to invest selectively in growth, focusing on expanding its customer base and enhancing its product offerings. It aims to maintain gross margins by introducing new high-margin products and managing inventory effectively.
• Sales and Marketing Strategy: The company markets directly to theater exhibitors and through value-added resellers, emphasizing its broad range of products and services. It maintains strong relationships with major theater owners both domestically and internationally.
• Manufacturing and Assembly: The company operates a 21,000 square foot facility in Southern California for manufacturing and assembly, supported by a global network of service partners and OEM manufacturers.
• Regulatory Environment: The company is subject to various regulations affecting its operations, including environmental, safety, and health requirements. Compliance with these regulations is critical to its business operations.

Strategic Initiatives

• Strategic Initiatives: The company is focusing on expanding its operations selectively, particularly in sales and support, to support new product initiatives and budget goals. It aims to add new customers and expand sales to existing customers by investing in its field sales force and targeting large customer organizations. The company is also promoting its brand and offering additional products to achieve brand recognition and introduce new high-quality products and services.
• Capital Management: The company has primarily met its working capital and capital resource needs from operating cash flows and financing activities. It has not declared or paid cash dividends, intending to retain future earnings to finance business growth. The company did not engage in any stock buyback program during the fiscal year 2025, and there were no unregistered sales of equity securities. The cash balance increased to $5.715 million as of June 30, 2025, from $5.278 million in the previous year.
• Future Outlook: The company believes it has sufficient cash to sustain operations and plans to continue investing in growth initiatives. It expects operating expenses to decrease in the foreseeable future to meet revenue and cost control objectives. The company anticipates that a substantial portion of future sales will come from existing customers as it offers new products and services through existing sales channels. It also plans to increase marketing expenditures selectively to maintain brand awareness and introduce new product lines.

Challenges and Risks

• Market Risks: General political, social, and economic conditions can adversely affect the business, especially if there is a downturn in the cinema market. The company is also exposed to foreign currency rate fluctuations and weak economic and political conditions in countries where it sells products.
• Operational Risks: The company is dependent on significant customers who could cease purchasing products at any time. Supply chain disruptions and the inability to introduce new products timely could adversely affect operations. The company also faces risks related to maintaining and developing sales channels and accurately forecasting consumer demand.
• Regulatory Risks: The company is subject to complex laws and regulations, including environmental, safety, and health requirements, which could be onerous and expensive to comply with.
• Emerging Risks: The company is exploring new business initiatives, such as the MiTranslator system and Direct View LED screens, which may not be accepted by the market. The company also faces risks related to cybersecurity and data breaches, which could disrupt operations and damage customer relationships.
• Management Challenges: Management has identified several challenges, including the need to attract and retain highly skilled personnel to manage growth effectively. The company is also focused on maintaining its brand and reputation, which could be harmed by negative publicity or failure to provide high-quality customer support. The company is also exploring strategic opportunities, including acquisitions, which could involve risks such as problems assimilating purchased operations and adverse effects on existing business relationships.
• Market Risk Exposure: The company is exposed to market risks, including fluctuations in foreign currency exchange rates, which could adversely affect financial results. The company also faces risks related to changes in the industries in which it operates and variations in operating performance compared to competitors.

SEC Filing: MOVING iMAGE TECHNOLOGIES INC. [ MITQ ] - 10-K - Sep. 26, 2025