59 unchanged sentences
and is the entity where the Company’s business operations are located.
−Removed: Because the Share Exchange occurred subsequent to the Company’s fiscal year ended June 30, 2021, the historical financial statements presented in this Quarterly Report on Form 10-Q include information derived from the audited consolidated financial statements of MiT LLC at June 30, 2021 and the unaudited results of operations and cash flows of MiT LLC for the three and six months ended December 31, 2020 which have been retroactively restated to reflect the consolidation of MiT Inc.
+Added: Because the Share Exchange occurred subsequent to the Company’s fiscal year ended June 30, 2021, the historical financial statements presented in this Quarterly Report on Form 10-Q include information derived from the audited consolidated financial statements of MiT LLC at June 30, 2021 and the unaudited results of operations and cash flows of MiT LLC for the three and nine months ended March 31, 2021 which have been retroactively restated to reflect the consolidation of MiT Inc.
and MiT LLC in connection with the exchange agreement.
9 unchanged sentences
In addition, we have experienced increased challenges in or cost of acquiring new customers and increased risk in collectability of accounts receivable.
−Removed: As a result of the aforementioned factors, our financial and operating results for the six months ended December 31, 2021 and 2020, were adversely affected.
−Removed: Additionally, our projected financial and operating results for the balance of fiscal 2022 are expected to be materially adversely affected.
+Added: As a result of the aforementioned factors, our financial and operating results for the nine months ended March 31, 2022 and 2021, were adversely affected.
The ultimate impact of the COVID-19 pandemic on our business and results of operations beyond fiscal 2022 is unknown and will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the duration and severity of the COVID-19 pandemic and any additional preventative and protective actions that governments, or we or our customers, may direct, which may result in an extended period of continued business disruption and reduced operations.
We expect that our results of operations, including revenues, in future periods will continue to be adversely impacted by the COVID-19 pandemic and its negative effects on global economic conditions, which include the possibility of a global recession.
−Removed: During the second half of the 2021 calendar year, several of the larger theater chains have announced plans to reopen and there had been some initial openings in several state with limited occupancy.
+Added: During the second half of the 2021 calendar year, several of the larger theater chains have reopened and there had been some initial openings in several state with limited occupancy.
The ability of these chains to reopen in part or in whole is predicate in large part on decisions by state and local officials to allow, limit or prohibit the reopening of establishments such as cinemas in response to regionally specific COVID-19 outbreaks.
−Removed: It is reasonable to expect that any reopenings will continue to be done on a gradual basis with limited occupancy and specific procedures, products, and technologies required to be implemented to protect the safety and health of returning patrons and employees.
+Added: It is reasonable to expect that reopening’s will continue to be done with limited occupancy and specific procedures, products, and technologies required to be implemented to protect the safety and health of returning patrons and employees.
Investment in Growth .
58 unchanged sentences
Results of Operations
−Removed: Three months ended December 31, 2021 compared to the three months ended December 31, 2020
−Removed: Three Months Ended December 31,
−Removed: Net sales increased 112.5% to $3.419 million for the three months ended December 31, 2021 from $1.609 million for the three months ended December 31, 2020 primarily due to the recovery from the impact of COVID-19 on the exhibition industry.
−Removed: Three Months Ended December 31,
−Removed: Gross profit increased 112.8% to $.896 million for the three months ended December 31, 2021 from $.421 million for the three months ended December 31, 2020.
−Removed: As a percentage of total revenues, gross profit remained constant at 26.2% for both periods.
+Added: Three months ended March 31, 2022 compared to the three months ended March 31, 2021
+Added: Three Months Ended March 31,
+Added: Net sales increased 241.2% to $5.835 million for the three months ended March 31, 2022 from $1.710 million for the three months ended March 31, 2021 primarily due to the recovery from the impact of COVID-19 on the exhibition industry.
+Added: Three Months Ended March 31,
+Added: Gross profit increased 228.6% to $1.367 million for the three months ended March 31, 2022 from $.416 million for the three months ended March 31, 2021.
+Added: As a percentage of total revenues, gross profit decreased to 23.4% from 24.3% due to product mix.
Research and Development
−Removed: Three Months Ended December 31,
+Added: Three Months Ended March 31,
Increase in research and development expense was primarily associated with the impact of COVID-19 in the 2021 period.
1 unchanged sentence
Selling, General and Administrative Expense
−Removed: Three Months Ended December 31,
+Added: Three Months Ended March 31,
The increase in selling, general and administrative expense was due primarily to the impact of COVID-19 in the 2020 period as the Company instituted cost containment measures, such as headcount reduction, executive pay reduction and cost avoidance.
1 unchanged sentence
Other (Income) Expense
−Removed: Three Months Ended December 31,
−Removed: The change in other (income) expense was primarily due to an unrealized gain in 2020.
−Removed: Three Months Ended December 31,
−Removed: Net loss was $(.644) million for the three months ended December 31, 2021 compared to a net loss of $(.157) million for the three months ended December 31, 2020.
−Removed: This increase in net loss was driven by increase in public company related expenses and other selling, general and operating expenses.
−Removed: Six months ended December 31, 2021 compared to six months ended December 31, 2020
−Removed: Six Months Ended December 31,
−Removed: Net revenues increased 104.8% to $6.893 million for the six months ended December 31, 2021 from $3.366 million for the six months ended December 31, 2020 primarily due to the recovery from the impact of COVID-19 on the exhibition industry.
−Removed: Six Months Ended December 31,
−Removed: Gross profit increased 85.1% to $1.618 million for the six months ended December 31, 2021 from $.874 million for the six months ended December 31, 2020.
−Removed: As a percentage of total revenues, gross profit declined to 23.5% for the six months ended December 31, 2021 from 25.9% for the six months ended December 31, 2020.
+Added: Three Months Ended March 31,
+Added: The change in other (income) expense was primarily due to gain on extinguishment of PPP debt.
+Added: Three Months Ended March 31,
+Added: Net income was $.593 million for the three months ended March 31, 2022 compared to a net loss of $(.164) million for the three months ended March 31, 2021.
+Added: This increase in income was driven by a $.698 million gain on the extinguishment due to forgiveness of the second PPP loan, offset by an increase in public company related expenses and other selling, general and operating expenses.
+Added: Nine months ended March 31, 2022 compared to nine months ended March 31, 2021
+Added: Nine Months Ended March 31,
+Added: Net sales increased 150.7% to $12.728 million for the nine months ended March 31, 2022 from $5.076 million for the nine months ended March 31, 2021 primarily due to the recovery from the impact of COVID-19 on the exhibition industry.
+Added: Nine Months Ended March 31,
+Added: Gross profit increased 131.4% to $2.985 million for the nine months ended March 31, 2022 from $.1.290 million for the nine months ended March 31, 2021.
+Added: As a percentage of total sales, gross profit declined to 23.5% for the nine months ended March 31, 2022 from 25.4% for the nine months ended March 31, 2021.
The decrease in gross margin as a percentage of revenues was driven primarily by product mix, as higher margin parts and services revenue made up a smaller percentage of total revenues.
1 unchanged sentence
Research and Development
−Removed: Six Months Ended December 31,
+Added: Nine Months Ended March 31,
Increase in research and development expense was primarily associated with the impact of COVID-19 in the 2021 period.
1 unchanged sentence
Selling, General and Administrative Expense
−Removed: Six Months Ended December 31,
+Added: Nine Months Ended December 31,
The increase in selling, general and administrative expense was due primarily to the impact of COVID-19 in the prior period as the Company instituted cost containment measures, such as headcount reduction, executive pay reduction and cost avoidance.
Additionally, the Company incurred significant expenses associated with becoming a public company, such as increased legal, accounting and other regulatory costs.
−Removed: Interest and Other Expense
−Removed: Six Months Ended December 31,
−Removed: Due to an unrealized gain on short term investments offset by interest expense associated with paying off outstanding debt in July 2021.
−Removed: Six Months Ended December 31,
−Removed: Net loss was $(1.221) million for the six months ended December 31, 2021 compared to a net loss of $(.527) million for the six months ended December 31, 2020.
−Removed: This increase in net loss was driven by increase in public company related expenses and other selling, general and operating expenses.
+Added: Interest and Other (Income) Expense
+Added: Nine Months Ended December 31,
+Added: Increase due to unrealized gain on extinguishment of the second PPP loan and lower interest expense, offset by a decrease in in unrealized short term investment gains.
+Added: Nine Months Ended March 31,
+Added: Net loss was $(.626) million for the nine months ended March 31, 2022 compared to a net loss of $(.691) million for the nine months ended March 31, 2021.
+Added: This decrease in net loss was driven by increase in sales, PPP loan forgiveness, offset by increase in public company related expenses and other selling, general and operating expenses.
Liquidity and Capital Resources
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On July 7, 2021, the Company completed an initial public offering resulting in net proceeds of approximately $11.244 million.
−Removed: Cash balance at December 31, 2021 was approximately $8.95 million, as compared to $1.269 million at June 30, 2021.
+Added: Cash balance at March 31, 2022 was approximately $6.337 million, as compared to $1.270 million at June 30, 2021.
+Added: Short term investments balance at March 31, 2022 was $3.082 million compared to $0 at June 30, 2021.
In response to uncertainties associated with the COVID-19 pandemic, we have taken, and are continuing to take, significant steps to preserve cash and remain in a strong competitive position when the current crisis subsides by eliminating non-essential costs, reducing employee hours and deferring all non-essential capital expenditures to minimum levels.
−Removed: We have also implemented remote work policies for many employees, and the resources available to such employees may not enable them to maintain the same level of productivity and efficiency, and these and other employees may face additional demands on their time, such as increased responsibilities resulting from school closures or illness of family members.
+Added: We have also implemented remote work policies for many employees, and the resources available to such employees may not enable them to maintain the same level of productivity and efficiency, and these and other employees may face additional demands on
+Added: their time, such as increased responsibilities resulting from school closures or illness of family members.
Our increased reliance on remote access to our information systems also increases our exposures to potential cybersecurity breaches.
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Cash Flows from Operating Activities
−Removed: Net cash used by operating activities was $2.845 million for the six months ended December 31, 2021, primarily due to a net loss of $1.221 million and combined net changes in working capital items of $1.763 million.
−Removed: The net change in working capital was primarily due to an increase in inventory of $1.964 million and payments of accounts payable and accrued expenses, offset by an increase in customer deposits.
−Removed: Net cash used in operating activities was $1.359 million for the six months ended December 31, 2020, due to our net loss of $.527 million and net changes in working capital items of $.790 million.
+Added: Net cash used by operating activities was $.916 million for the nine months ended March 31, 2022, primarily due to net loss of $.626 million offset by net changes in working capital items of $(.398) million.
+Added: The net change in working capital was primarily due to an increase in inventory of $1.451 million and accounts receivable of $1.02 million, offset by an increase in customer deposits of $2.195 million.
+Added: Net cash used in operating activities was $1.874 million for the nine months ended March 31, 2021, due to our net loss of $.691 million and net changes in working capital items of $.908 million.
Cash Flows from Investing Activities
−Removed: Net cash used in investing activities was $2,000 for the six months ended December 31, 2021 for the purchase of equipment.
−Removed: Net cash flow from investing activities was zero for the six months ended December 31, 2020, as we took steps to preserve cash during the pandemic.
+Added: Net cash used in investing activities was $3.430 million for the nine months ended March 31, 2022 primarily due to the investment in marketable securities.
+Added: Net cash provided by investing activities was $.550 million for the nine months ended March 31, 2021, due to the sale of investments.
Cash Flows from Financing Activities
−Removed: Net cash provided by financing activities was $10.529 million for the six months ended December 31, 2021.
+Added: Net cash provided by financing activities was $9.413 million for the nine months ended March 31, 2022.
The increase relates to $11.244 million of IPO net proceeds offset by net repayments of $1.831 million of debt.
−Removed: Net cash provided by financing activities was $0.691 million for the six months ended December 31, 2020, predominately the result of proceeds received from the private placement.
+Added: Net cash provided by financing activities was $1.363 million for the nine months ended March 31, 2021, predominately the result of proceeds received from the private placement of $1.334 million and Paycheck Protection Program of $.698 million, respectively.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
1 unchanged sentence
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.