Moving Image Technologies, Inc. (MTQ), a leading provider of innovative solu tions for the cinema exhibition industry, has released its consolidated financial results for the fiscal year ending June 30, 2023. The company reported a net loss of $1.8 million for the year, while achieving total revenue of $20.2 million. MIT's financial performance reflects the challenges faced by the industry during the year, marked by the ongoing effects of the global pandemic. Let's delve deeper into the company's financial situation.
Consolidated Balance Sheets
MIT's current assets as of June 30, 2023, amounted to $12.4 million, showing a decrease compared to the previous year's $13.4 million. Cash reserves increased significantly, standing at $6.6 million, compared to $2.3 million in 2022. However, marketable securities, accounts receivable, inventories, and prepaid expenses and other current assets showed slight declines.
Long-Term Assets
The company's long-term assets amounted to $939,000 in 2023, a decrease from $1.5 million in 2022. Marketable securities, right-of-use assets, property and equipment, intangibles, and goodwill all played a role in this decrease.
In total, MIT reported consolidated assets of $13.3 million for 2023, compared to $14.9 million in the previous year.
MIT's net sales for the fiscal year 2023 reached $20.2 million, showing growth from the $18.4 million recorded in 2022. However, the cost of goods sold also increased, resulting in a gross profit of $5.3 million, up from $4.5 million in the prior year.
The company's operating expenses for research and development, selling and marketing, general and administrative, and impairment of long-term assets amounted to $7.3 million in 2023, up from $6.2 million in 2022. This led to an operating loss of $1.98 million, compared to a loss of $1.76 million in the previous year.
MIT incurred various other expenses and income, including an unrealized loss on marketable securities, realized gains/losses on marketable securities, PPP loan forgiveness, and interest expense. These factors contributed to a total other expense (income) of ($177,000) in 2023, compared to ($417,000) in 2022.
Net Loss
Despite the increase in revenue, MIT reported a net loss of $1.8 million for the fiscal year 2023, compared to a net loss of $1.35 million in 2022.
Consolidated Statements of Cash Flows
MIT's cash flows from operating activities amounted to $269,000 in 2023, an improvement from the previous year's net cash used in operating activities of ($3.4 million). Adjustments included PPP loan forgiveness, provision for doubtful accounts, depreciation and amortization expenses, impairment expenses, and changes in operating assets and liabilities.
Cash Flows from Investing Activities
The company generated $4.3 million in cash from investing activities in 2023, primarily driven by the sale of marketable securities. This was a significant change from the ($5.0 million) net cash used in investing activities in 2022.
Cash Flows from Financing Activities
MIT's financing activities in 2023 resulted in a net cash outflow of ($304,000), which included payments on notes payable and a stock buyback. In 2022, the company had a net cash inflow of $9.4 million, primarily from the initial public offering.
MIT ended the fiscal year 2023 with cash totaling $6.6 million, compared to $2.3 million at the beginning of the year. This reflects a net increase in cash of $4.3 million.
Moving Image Technologies, Inc. faced challenges in the fiscal year 2023 but managed to achieve growth in revenue. Despite a net loss of $1.8 million, the company remains committed to providing innovative solutions to the cinema exhibition industry and adapting to the evolving market conditions. MIT's strong cash position positions them well for future opportunities and challenges in the industry.