What changed in this filing

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Item 1. Financial Statements

2022-05-16 compared with 2022-04-11 · 131 added, 85 removed, 455 unchanged (32% of the section changed)

5 unchanged sentences

Cash and cash equivalents

Marketable securities

Accounts receivable, net

Inventories, net

Prepaid expenses and other

1 unchanged sentence

Long-Term Assets:

Marketable securities

Property, plant and equipment, net

16 unchanged sentences

Stockholders’ Equity (Deficit)

Common stock, $ 0.00001 par value, 100,000,000 shares authorized, 10,636,278 and 5,666,667 shares issued and outstanding at December 31, 2021 and June 30, 2021, respectively

Common stock, $ 0.00001 par value, 100,000,000 shares authorized, 10,636,278 and 5,666,667 shares issued and outstanding at March 31, 2022 and June 30, 2021, respectively

Additional paid-in capital

6 unchanged sentences

(in thousands except share and per share amounts)

Six Months Ended

Nine Months Ended

Cost of goods sold

5 unchanged sentences

Operating loss

Other (income) expenses:

Unrealized gain

Other (income) expense:

Unrealized gain on marketable securities

Realized gain on marketable securities

PPP loan and interest forgiveness

Interest and other income

Interest expense

Total other (income) expense

Net income (loss)

Weighted average shares outstanding:

basic and diluted*

Net loss per common share basic and diluted

Net income (loss) per common share basic and diluted

The accompanying notes are an integral part of these condensed consolidated financial statements.

3 unchanged sentences

Retained Earnings

Three months ended September 30, 2020 and December 31, 2021:

Three months ended September 30, 2020, December 31, 2020, and March 31, 2021:

Additional Paid-In

5 unchanged sentences

Balance as of December 31, 2020

Six months ended December 31, 2020:

Balance as of March 31, 2021

Nine months ended March 31, 2021:

Balance as of July 1, 2020

2 unchanged sentences

Shares issued in private placement

Balance as of December 31, 2020

Balance as of March 31, 2021

The accompanying notes are an integral part of these condensed consolidated financial statements.

3 unchanged sentences

Retained Earnings

Three months ended September 30, 2021and December 31, 2021

Three months ended September 30, 2021, December 31, 2021, and March 31, 2022:

Additional Paid-In

6 unchanged sentences

Balance as of December 31, 2021

Six months ended December 31, 2021:

Grant of options for services

Balance as of March 31, 2022

Nine months ended March 31, 2022:

Balance as of July 1, 2021

2 unchanged sentences

Grant of options for services

Balance as of December 31, 2021

Balance as of March 31, 2022

MOVING IMAGE TECHNOLOGIES, INC.

1 unchanged sentence

(in thousands)

Six Months Ended

Nine Months Ended

Cash flows from operating activities:

4 unchanged sentences

Unrealized gain on investments

Realized gain on investments

Deferred rent

Stock option compensation expense

PPP loan forgiveness

Changes in operating assets and liabilities

7 unchanged sentences

Cash flows from investing activities

Sale of (investment in) marketable securities

Purchases of property, plant and equipment

4 unchanged sentences

Proceeds from private placement

Paycheck Protection Program loan proceeds

Payments on notes payable

16 unchanged sentences

Additionally, the Company offers a wide range of technical, design and consulting services such as custom engineering, systems design, integration and installation, and digital technology, as well as software solutions for operations enhancement and theatre management.

The Company also provides turnkey furniture, fixture and equipment services to commercial cinema exhibitors for new construction and remodels including design, consulting, installation and project management as well as procurement of seats, lighting, acoustical treatments, screens, projection and sound.

The Company also provides turnkey furniture, fixtures and equipment services to commercial cinema exhibitors for new construction and remodels including design, consulting, installation and project management as well as procurement of seats, lighting, acoustical treatments, screens, projection and sound.

Moving iMage Acquisition Co.

14 unchanged sentences

As a result, the historical financial statements of MiT LLC and MiT Inc.

for the three months ended September 30, 2020 and for the six months ended December 31, 2020 have been retroactively revised to reflect the consolidation of MiT, Inc.

and MiT LLC in a manner similar to pooling of interest.

for the three months and for the nine months ended March 31, 2021 have been retroactively revised to reflect the consolidation of MiT, Inc.

All inter-company transactions and balances between MiT Inc.

and MiT, LLC have been eliminated.

The condensed consolidated statements of stockholders’ equity (deficit) for the periods ended December 31, 2021 and 2020 have been retroactively revised to give effect of the change in reporting entity (as-if-pooling) accounting of MiT Inc.

The condensed consolidated statements of stockholders’ equity (deficit) for the periods ended March 31, 2022 and 2021 have been retroactively revised to give effect of the change in reporting entity accounting of MiT Inc.

MOVING IMAGE TECHNOLOGIES, INC.

15 unchanged sentences

In addition, we have experienced increased challenges in, or cost of, acquiring new customers and increased risk in collectability of accounts receivable.

As a result of the aforementioned factors, our financial and operating results for the three and six months ended December 31, 2021 and 2020, have been adversely affected.

As a result of the aforementioned factors, our financial and operating results for the three and nine months ended March 31, 2022 and 2021, have been adversely affected.

Additionally, our projected financial and operating results for the remainder of fiscal 2022 are expected to be materially adversely affected.

23 unchanged sentences

The June 30, 2021 condensed consolidated balance sheet has been derived from the audited consolidated financial statements and updated to reflect the effects of the exchange agreement between MiT LLC and MiT Inc.

Operating results for the three months and six months ended December 31, 2021 are not necessarily indicative of the results that may be expected for any subsequent quarters or for the year ending June 30, 2022.

Operating results for the three months and nine months ended March 31, 2022 are not necessarily indicative of the results that may be expected for any subsequent quarters or for the year ending June 30, 2022.

Measurement of Fair Values :

21 unchanged sentences

Management believes the Company is not exposed to any significant credit risk on its cash balances.

Cash Equivalents and Marketable Securities:

All highly liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents.

The Company’s investments in marketable debt securities are carried at either amortized cost or fair value.

Investments in debt securities that the Company has the positive intent and ability to hold to maturity are carried at amortized cost and classified as held-to-maturity.

Investments in debt securities that are not classified as held-to-maturity are carried at fair value and classified as available-for sale.

Realized gains and losses on available-for-sale debt securities are included in net income/loss.

Unrealized gains and losses, net of tax, on available-for-sale debt securities are recognized in other comprehensive gain/(loss).

The Company’s investments in marketable equity securities are classified based on the nature of the securities and their availability for use in current operations.

The Company’s marketable equity securities are measured at fair value with gains and losses recognized in other income/(expense), net.

The cost of securities sold is determined using the specific identification method.

Accounts Receivable:

5 unchanged sentences

The Company does not charge interest on past due balances or require collateral on its accounts receivable.

As of June 30, 2021 and December 31, 2021 the allowance for bad debts is approximately $ 356,000 and $ 316,000 , respectively.

As of March 31, 2022 and June 30, 2021, the allowance for bad debts is approximately $ 126,000 and $ 261,000 , respectively.

Inventories are stated at the lower of cost or net realizable value, with cost being determined on the first-in, first-out cost method of accounting.

2 unchanged sentences

The Company’s policy is to closely monitor inventory levels, obsolescence and lower market values compared to costs and, when necessary, reduce the carrying amount of its inventory to its net realizable value.

As of June 30, 2021 and December 31, 2021, inventory on hand was comprised primarily of finished goods ready for sale.

As of March 31, 2022 and June 30, 2021, inventory on hand was comprised primarily of finished goods ready for sale.

As of March 31, 2022 and June 30, 2021, inventory reserve was $ 581,000 and $ 375,000 , respectively.

Revenue Recognition:

2 unchanged sentences

We generate all our revenue from agreements with customers.

In case there are agreements with multiple performance obligations, we identify each performance obligation and evaluate whether the performance obligations are distinct within the context of the agreement at the agreement’s inception.

In cases where there are agreements with multiple performance obligations, we identify each performance obligation and evaluate whether the performance obligations are distinct within the context of the agreement at the agreement’s inception.

Performance obligations that are not distinct at agreement inception are combined.

We allocate the transaction price to each distinct performance obligation proportionately based on the estimated standalone selling price for each performance obligation and then evaluate how the services are transferred to the customer to determine the timing of revenue recognition.

MOVING IMAGE TECHNOLOGIES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The Company considers the U.S.

11 unchanged sentences

Such deposits are reflected as customer deposits and recognized in revenue when control of the products is transferred or when performance conditions are satisfied per the agreement.

The change in contract liabilities (customer deposits and unearned warranty revenue) during the six months ended December 31, 2021 included $ 790,000 for revenue recognized that was included in contract liability as of July 1, 2021.

Contract liabilities as of July 1, 2020 were $ 854,000 .

The change in contract liabilities (customer deposits and unearned warranty revenue) during the nine months ended March 31, 2022 included $ 1.273 million for revenue recognized that was included in contract liability as of July 1, 2021.

Contract liabilities as of July 1, 2020 were $ .854 million.

Cost of goods sold includes cost of inventory sold during the period, net of vendor discounts and allowances, and shipping and handling costs, and sales taxes.

5 unchanged sentences

Disaggregation of Revenue (in 000’s):

December 31, 2021

December 31, 2020

December 31, 2021

December 31, 2020

March 31, 2022

March 31, 2021

March 31, 2022

March 31, 2021

Equipment upon delivery (point in time)

5 unchanged sentences

Services revenues are generally recognized over time as the contracts are performed.

There were no software revenues during the three or six months ended December 31, 2021 or 2020.

There were no software revenues during the three or nine months ended March 31, 2022 or 2021.

Returns and Allowances:

3 unchanged sentences

Advertising Costs:

Advertising costs were approximately $ 11,600 and $ 2,200 for the three months ended December 31, 2021 and 2020, respectively, and $ 11,700 and $ 5,100 for the six months ended December 31, 2021 and 2020, respectively.

Advertising costs were approximately $ 4,300 and $ 4,600 for the three months ended March 31, 2022 and 2021, respectively, and $ 16,000 and $ 9,700 for the nine months ended March 31, 2022 and 2021, respectively.

Advertising costs are expensed as incurred within selling and marketing expenses.

3 unchanged sentences

Goodwill and Intangible Assets:

Goodwill as of December 31, 2021 and June 30, 2021 represents the excess of the purchase price over the fair value of the net identifiable assets acquired in the 2019 Caddy Acquisition.

Goodwill as of March 31, 2022 and June 30, 2021 represents the excess of the purchase price over the fair value of the net identifiable assets acquired in the 2019 Caddy Acquisition.

Goodwill is reviewed for impairment at least annually, in June, or more frequently if a triggering event occurs between impairment testing dates.

8 unchanged sentences

If the estimated fair value of the reporting unit is less than its carrying value, an impairment loss would be recognized for the excess of the carrying value of the reporting unit over the fair value, not to exceed the carrying amount of goodwill.

The Company tested goodwill impairment in relation to the COVID-19 pandemic and no impairments were identified for the three and six months ended December 31, 2021 or 2020.

The Company tested goodwill impairment in relation to the COVID-19 pandemic and no impairments were identified for the three and nine months ended March 31, 2022 or 2021.

Goodwill is at risk of future impairment in the event of significant unexpected changes in the Company’s forecasted future results and cash flows, or if there is a negative change in the long-term outlook for the business or in other factors such as the discount rate, or if there is a decline in the stock price.

2 unchanged sentences

The Company reviews its intangible assets for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be fully recoverable.

There were no intangible asset impairments recognized for the three months and six months ended December 31, 2021 or 2020.

There were no intangible asset impairments recognized for the three months and nine months ended March 31, 2022 or 2021.

Business Combinations:

11 unchanged sentences

The Company evaluates the recoverability of deferred tax assets and establishes a valuation allowance when it is more likely than not that some portion or all the deferred tax assets will not be realized.

Because the Company has had recurring losses from operations, at December 31, 2021 it has taken a full valuation allowance against all potential deferred tax assets.

Because the Company has had recurring losses from operations, at March 31, 2022 it has taken a full valuation allowance against all potential deferred tax assets.

Prior to July 7, 2021, MiT LLC was a limited liability company treated as a partnership for federal and state income tax purposes with all income tax liabilities and/or benefits (losses) of the Company being passed through to the members.

1 unchanged sentence

Any uncertain tax position taken by the members is not an uncertain position of the Company.

The Company evaluate the recoverability of deferred tax assets and establishes a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized.

The Company evaluated the realizability of deferred tax Assets (“DTA”) at June 30, 2021 (most recent year end, presented as comparative in 10Q balance sheet), July 7, 2021(date of exchange agreement), September 30, 2021 (Q1 reporting period) and December 31, 2021 (Q2 reporting period).

Because the Company has had recurring losses from operations at June 30, 2021, and further loses for the period ended September 30, 2021 and December 31, 2021, which will generate NOL’s and it has taken a full valuation allowance against all potential deferred tax assets.

The Company evaluates the recoverability of deferred tax assets and establishes a valuation allowance when it is more likely than not that some portion or all of the deferred tax assets will not be realized.

The Company evaluated the realizability of deferred tax assets (“DTA”) at June 30, 2021 (most recent year end, presented as comparative in 10Q balance sheet), July 7, 2021 (date of exchange agreement), September 30, 2021 (Q1 reporting period) December 31, 2021 (Q2 reporting period) and March 31, 2022 (Q3 reporting period).

Because the Company has had recurring losses from operations at June 30, 2021, and further losses for the nine months ended March 31, 2022, which will generate NOL’s, and it has taken a full valuation allowance against all potential deferred tax assets.

Goodwill recognized in connection with acquisitions represents the residual amount of the purchase price over separately identifiable intangible assets and pursuant to 26 U.S.

Code section 197 is deductible for tax purposes.

The following table summarizes deferred tax assets and liabilities as of the date of the Exchange Agreement and quarterly through December 31, 2021:

The following table summarizes deferred tax assets and liabilities as of the date of the Exchange Agreement through March 31, 2022:

Existing valuation allowance

6 unchanged sentences

Total MiT Inc.

December 31, 2021

March 31, 2022

MOVING IMAGE TECHNOLOGIES, INC.

1 unchanged sentence

NOTE 1 — BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

The following table summarizes the components of deferred tax assets and deferred tax liabilities quarterly through December 31, 2021:

The following table summarizes the components of deferred tax assets and deferred tax liabilities through March 31, 2022:

Assets (Liabilities)

2 unchanged sentences

Accumulated goodwill amortization

Accumulated intangible amortization

Deferred rent

6 unchanged sentences

Accumulated goodwill amortization

Accumulated intangible amortization

Deferred rent

4 unchanged sentences

Valuation allowance

Total December 31, 2021

Total March 31, 2022

MOVING IMAGE TECHNOLOGIES, INC.

5 unchanged sentences

The Company has the right to return defective products for up to three years , depending on the manufacturers’ individual policies.

As of June 30, 2021 and December 31, 2021, the Company has established a warranty reserve of $ 29,000 and $ 32,000 , respectively, which is included in accrued expenses in the accompanying condensed consolidated balance sheets.

As of June 30, 2021 and March 31, 2022, the Company has established a warranty reserve of $ 29,000 and $ 37,000 , respectively, which is included in accrued expenses in the accompanying condensed consolidated balance sheets.

The changes in the Company’s aggregate warranty liabilities were as follows for the following periods (in thousands):

Nine Months Ended

Twelve Months Ended

Product warranty liability, beginning of period

12 unchanged sentences

ASU 2016- 02 requires modified retrospective adoption for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief.

The Company is in the process of evaluating the impact of this standard.

In December 2019, FASB issued ASU No.

Management is in the process of evaluating the impact of this standard effective July 1, 2022.

In December 2019, the FASB issued ASU No.

2019-12, Income Taxes (Topic 740) :

1 unchanged sentence

ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application.

The new standard will be effective beginning January 1, 2022.

The new standard is effective beginning July 1, 2022.

The Company does not expect the adoption of ASU 2019-12 to have a material impact on its financial position and results of operations upon adoption.

Other pronouncements issued by FASB with future effective dates are either not applicable or not significant to the consolidated financial statements of the Company.

MOVING IMAGE TECHNOLOGIES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 — LOSS PER SHARE

Basic loss per share data for each period presented is computed using the weighted average number of shares of common stock outstanding during each such period.

Diluted loss per share data is computed using the weighted average number of common and potentially dilutive securities outstanding during each period.

NOTE 2 — INVESTMENTS

Other pronouncements issued by the FASB with future effective dates are either not applicable or not significant to the consolidated financial statements of the Company.

The following tables show the Company’s cash, cash equivalents and marketable securities by significant investment category as of March 31, 2022 (amounts in 000’s):

Cash Equivalents

Communication

Consumer Discretionary

Consumer Staples

Information Technology

State & Municipal Bonds

Fixed income funds

Alternative, real estate and other

MOVING IMAGE TECHNOLOGIES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3 — INCOME (LOSS) PER SHARE

Basic income (loss) per share data for each period presented is computed using the weighted average number of shares of common stock outstanding during each such period.

Diluted income (loss) per share data is computed using the weighted average number of common and potentially dilutive securities outstanding during each period.

Potentially dilutive securities consist of shares that would be issued upon the exercise of stock options and warrants, computed using the treasury stock method.

A reconciliation of basic and diluted loss per share is as follows:

A reconciliation of basic and diluted income (loss) per share is as follows:

For the Three Months Ended

For the Six Months Ended

For the Nine Months Ended

For the Three Months Ended

For the Six Months Ended

For the Nine Months Ended

Net income (loss)

Weighted average common shares outstanding, basic and diluted

Loss per share

Income (loss) per share

Basic and diluted

1 unchanged sentence

For the Three Months Ended

For the Six Months Ended

For the Nine Months Ended

For the Three Months Ended

For the Six Months Ended

For the Nine Months Ended

Total potentially dilutive shares

For the three month period ended March 31, 2021 and the nine month periods ended March 31, 2022 and 2021, the Company had a net loss, therefore all potentially dilutive securities are deemed to be anti-dilutive and are not included in the diluted loss per share computation.

For the three month period ended March 31, 2022 the Company had net income.

All potentially dilutive securities for the three month period ended March 31, 2022 were excluded from the computation of earnings per share because their exercise prices were out of the money and were thus also anti-dilutive when computed using the treasury stock method.

MOVING IMAGE TECHNOLOGIES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 4 — PROPERTY, PLANT AND EQUIPMENT

7 unchanged sentences

Net property plant and equipment

Depreciation expense related to property, plant and equipment was $ 0 and $ 33,000 for the three months ended December 31, 2021 and 2020, respectively, of which $ 0 and $ 30,000 is included in cost of goods sold and $ 0 and $ 3,000 in general and administrative expense, respectively.

Depreciation expense related to property, plant and equipment was $ 3,000 and $ 33,000 for the three months ended March 31, 2022 and 2021, respectively, of which $ 0 and $ 30,000 is included in cost of goods sold and $ 3,000 and $ 3,000 in general and administrative expense, respectively.

MOVING IMAGE TECHNOLOGIES, INC.

1 unchanged sentence

NOTE 4 — PROPERTY, PLANT AND EQUIPMENT (continued)

Depreciation expense related to property, plant and equipment was $ 13,000 and $ 67,000 for the six months ended December 31, 2021 and 2020, respectively, of which $ 9,000 and $ 60,000 is included in cost of goods sold and $ 4,000 and $ 7,000 in general and administrative expense, respectively.

Depreciation expense related to property, plant and equipment was $ 15,000 and $98,000 for the nine months ended March 31, 2022 and 2021, respectively, of which $ 9,000 and $ 90,000 is included in cost of goods sold and $ 7,000 and $ 8,000 in general and administrative expense, respectively.

Depreciation of property, plant and equipment is calculated using the straight-line method over their estimated useful lives as follows:

6 unchanged sentences

NOTE 5 —INTANGIBLE ASSETS

The following table summarizes the Company’s intangible assets as of December 31, 2021 (in thousands):

The following table summarizes the Company’s intangible assets as of March 31, 2022 (in thousands):

Customer relationships

1 unchanged sentence

Customer relationships

Amortization expense was $ 24,000 and $ 24,000 for the three months ended December 31, 2021 and 2020, respectively, and was $ 48,000 and $ 48,000 for the six months ended December 31, 2021 and 2020, respectively, and is included in general and administrative expense.

Estimated amortization expense related to intangible assets subject to amortization at December 31, 2021 in each of the five years subsequent to December 31, 2021, and thereafter is as follows (amounts in thousands):

Amortization expense was $ 24,000 and $ 24,000 for the three months ended March 31, 2022 and 2021, respectively, and was $ 72,000 and $ 72,000 for the nine months ended March 31, 2022 and 2021, respectively, and is included in general and administrative expense.

Estimated amortization expense related to intangible assets subject to amortization at March 31, 2022 in each of the five years subsequent to March 31, 2022, and thereafter is as follows (amounts in thousands):

MOVING IMAGE TECHNOLOGIES, INC.

16 unchanged sentences

In July 2021, the outstanding balance, and all accrued interest, was paid in full.

Long-term debt at December 31, 2021 was as follows (in thousands):

December 31, 2021

There was no outstanding debt as of March 31, 2022.

Long-term debt at June 30, 2021 was as follows (in thousands):

18 unchanged sentences

In May 2021, the Company received notification from the Small Business Administration that the first loan in the amount of $ 694,000 , including accrued interest, has been fully forgiven.

As of December 31, 2021, the outstanding balance of the second PPP loan was $ 698,000 , of which $ 147,000 is included in notes payable current in the condensed consolidated balance sheets.

Any unforgiven portion of a PPP loan is payable over two years at an interest rate of 1 %, with a deferral of payments for the first six months.

5 unchanged sentences

As of December 31, 2021, the Plan provides for the issuance of up to 750,000 stock-based awards.

There are 600,000 stock-based awards available to grant under the Plan at December 31, 2021.

There are 600,000 stock-based awards available to grant under the Plan at March 31, 2022.

In July 2020, the Company, through a Private Placement, issued 666,667 shares of stock for total gross proceeds of $ 887,000 .

7 unchanged sentences

The options vest one year from the date of grant, expire ten years from the date of grant and had an aggregate grant date fair value of $ 244,200 , which will be recognized ratably over the vesting period.

These options, which were the only options granted during the six months ended December 31, 2021, had a grant-date fair value of $ 1.63 per share.

The Company recognized compensation expense for stock option awards of approximately $ 62,000 and $ 118,000 during the three- and six-month periods ended December 31, 2021, respectively.

These options, which were the only options granted during the nine months ended March 31, 2022, had a grant-date fair value of $ 1.63 per share.

The Company recognized compensation expense for stock option awards of approximately $ 60,000 and $ 178,000 during the three and nine month periods ended March 31, 2022, respectively.

None of the these potentially dilutive securities were included in the computation of diluted earnings per share as their impact would be anti-dilutive.

At December 31, 2021, there was $ 126,000 of total unrecognized compensation cost related to nonvested stock option awards that is expected to be recognized over a weighted average period of six months .

During the six months ended December 31, 2021, warrant holders exercised 139,611 warrants on a cashless basis.

At March 31, 2022, there was $ 66,000 of total unrecognized compensation cost related to nonvested stock option awards that is expected to be recognized over a weighted average period of three months .

During the nine months ended March 31, 2022, warrant holders exercised 139,611 warrants on a cashless basis.

NOTE 9 — RELATED PARTY TRANSACTIONS

3 unchanged sentences

NOTE 10 — CUSTOMER AND VENDOR CONCENTRATIONS

Two customers accounted for approximately 20 % and 18 % of the Company’s sales for the three months ended December 31, 2021.

Three customers accounted for approximately 23 %, 10 % and 10 % of the Company's sales for the six months ended December 31, 2021.

At December 31, 2021, the amount of outstanding receivables related to these customers was approximately $ 240,000 .

One customer accounted for 48 % of the Company’s sales for the three months ended December 31, 2020.

One customer accounted for 49 % of the Company's sales for the six months ended December 31, 2020.

At December 31, 2020, the amount of outstanding receivables related to this customer was approximately $ 153,000 .

Approximately 21 % of the Company’s purchases were provided by one vendor for the three months ended December 31, 2021.

Approximately 14 % and 10 % of the Company’s purchases were provided by two vendors for the three months ended December 31, 2020.

Approximately 33 % of the Company’s purchases were provided by one vendor for the six months ended December 31, 2021.

Approximately 16 % of the Company’s purchases were provided by one vendor for the six months ended December 31, 2020.

Two customers accounted for approximately 11 % and 10 % of the Company’s sales for the three months ended March 31, 2022.One customer accounted for approximately 32 % of the Company's sales for the nine months ended March 31, 2022.

At March 31, 2022, the amount of outstanding receivables related to these customers was approximately $ 120,000 .

Two customers accounted for 14 % and 13 % of the Company’s sales for the three months ended March 31, 2021.

One customer accounted for 31 % of the Company's sales for the nine months ended March 31, 2021.

At March 31, 2021, the amount of outstanding receivables related to this customer was approximately $ 1,000 .

Approximately 14 % and 13 % of the Company’s purchases were provided by two vendors for the three months ended March 31, 2022.

Approximately 17 %, 16 % and 10 % of the Company’s purchases were provided by three vendors for the three months ended March 31, 2021.

Approximately 10 % of the Company’s purchases were provided by one vendor for the nine months ended March 31, 2022.

Approximately 50 % of the Company’s purchases were provided by one vendor for the nine months ended March 31, 2021.

NOTE 11 — COMMITMENTS AND CONTINGENCIES

1 unchanged sentence

The Company occupies an executive office and warehouse space in Fountain Valley, CA, pursuant to separate lease agreements.

Rent expense was $ 70,000 for both of the three months ended December 31, 2021 and 2020.

Rent expense was $ 141,000 for both of the six months ended December 31, 2021 and 2020.

Future minimum lease payments at December 31, 2021 under these arrangements are as follows:

Rent expense was $ 70,000 for both of the three months ended March 31, 2022 and 2021.

Rent expense was $ 141,000 for the nine months ended March 31, 2022 and 2021.

Future minimum lease payments for the next 5 years at March December 31, 2021 under these arrangements are as follows:

(in thousands)

6 unchanged sentences

The Company has evaluated subsequent events through the filing of this Quarterly Report on Form 10-Q, and determined that there have been no events that have occurred that would require adjustments to our disclosures in the condensed consolidated financial statements except for the transaction described below.

On February 23, 2022, the Company received a notice from NYSE Regulation stating that the Company was not in compliance with the NYSE American LLC’s continued listing standards under the timely filing criteria included in Section 1007 of the NYSE

On April 21, 2022, Moving iMage Technologies, Inc.

(the “Company”) entered into an Asset Purchase Agreement (the “Agreement”) with QSC, LLC (the”Seller”) whereby the Company agreed to purchase from the Seller all of its infrared-based

MOVING IMAGE TECHNOLOGIES, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

American Company Guide because the Company failed to timely file with the Securities and Exchange Commission its Quarterly Report on Form 10-Q for the period ended December 31, 2021.

In April 2022, the Company received notice that on March 23, 2022, its second PPP loan in the amount of $ 698,000 plus accrued interest has been fully forgiven and is paid in full.

assistive listening and closed caption devices for cinema patrons for an aggregate purchase price of $ 1.5 million, which amount may be adjusted based on the full cost value and quantities in inventory at the time of closing.

In April 2022, underwriter warrants were exercised on a cashless basis resulting in the issuance of 192,120 shares of common stock.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements