MOVING iMAGE TECHNOLOGIES INC. 10-Q

ITEM 1. FINANCIAL STATEMENTS MOVING IMAGE TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands except share and per share amounts) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ June 30, ​ ​ 2025 2024 ​ ​ ​ (unaudited) ​ ​ ​ ​ Assets ​ ​ Current Assets: ​ ​ Cash ​ $ 5,369 ​ $ 5,278 ​ Accounts receivable, net ​ 940 ​ 1,048 ​ Inventories, net ​ 3,065 ​ 3,117 ​ Prepaid expenses and other ​ 241 ​ 470 ​ Total Current Assets ​ 9,615 ​ 9,913 ​ Long-Term Assets: ​ ​ ​ Right-of-use asset ​ ​ 1,142 ​ ​ 144 ​ Property and equipment, net ​ 18 ​ 28 ​ Intangibles, net ​ 378 ​ 422 ​ Other assets ​ 15 ​ 16 ​ Total Long-Term Assets ​ 1,553 ​ 610 ​ Total Assets ​ $ 11,168 ​ $ 10,523 ​ ​ ​ ​ ​ ​ Liabilities And Stockholders’ Equity ​ ​ ​ Current Liabilities: ​ ​ ​ Accounts payable ​ $ 2,745 ​ $ 2,261 ​ Accrued expenses ​ 351 ​ 320 ​ Customer refunds ​ ​ 288 ​ ​ 399 ​ Customer deposits ​ 1,534 ​ 1,651 ​ Lease liability–current ​ 219 ​ 151 ​ Unearned warranty revenue ​ 53 ​ 31 ​ Total Current Liabilities ​ 5,190 ​ 4,813 ​ ​ ​ ​ ​ Long-Term Liabilities: ​ ​ ​ Lease liability–non-current ​ 979 ​ — ​ Total Long-Term Liabilities ​ 979 ​ — ​ Total Liabilities ​ 6,169 ​ 4,813 ​ Stockholders’ Equity ​ ​ ​ ​ ​ Common stock, $ 0.00001 par value, 100,000,000 shares authorized, 9,933,679 and 9,896,850 shares issued and outstanding at March 31, 2025 and June 30, 2024, respectively ​ ​ — ​ ​ — ​ Additional paid-in capital ​ ​ 12,047 ​ ​ 11,965 ​ Accumulated deficit ​ ​ ( 7,048 ) ​ ​ ( 6,255 ) ​ Total Stockholders’ Equity ​ ​ 4,999 ​ ​ 5,710 ​ Total Liabilities and Stockholders’ Equity ​ $ 11,168 ​ $ 10,523 ​ ​ The accompanying notes are an integral part of these condensed consolidated financial statements. ​ 3 Table of Contents MOVING IMAGE TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands except share and per share amounts) (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Nine Months Ended ​ ​ March 31, ​ March 31, ​ ​ ​ 2025 ​ 2024 ​ 2025 ​ 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net sales ​ $ 3,571 ​ $ 3,890 ​ $ 12,264 ​ $ 13,790 ​ Cost of goods sold ​ 2,508 ​ 3,214 ​ 8,894 ​ 10,536 ​ Gross profit ​ 1,063 ​ 676 ​ 3,370 ​ 3,254 ​ ​ ​ ​ ​ ​ ​ Operating expenses: ​ ​ ​ ​ ​ Research and development ​ 49 ​ 73 ​ 157 ​ 212 ​ Selling and marketing ​ 429 ​ 547 ​ 1,421 ​ 1,717 ​ General and administrative ​ 855 ​ 705 ​ 2,691 ​ 2,421 ​ Total operating expenses ​ 1,333 ​ 1,325 ​ 4,269 ​ 4,350 ​ Operating (loss) ​ ( 270 ) ​ ( 649 ) ​ ( 899 ) ​ ( 1,096 ) ​ Other income (expense) ​ ​ ​ ​ ​ Interest and other income, net ​ 30 ​ 48 ​ 107 ​ 140 ​ Total other income ​ 30 ​ 48 ​ 107 ​ 140 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net (loss) ​ $ ( 240 ) ​ $ ( 601 ) ​ $ ( 792 ) ​ $ ( 956 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Weighted average shares outstanding: basic and diluted (Note 2) ​ ​ 9,911,015 ​ ​ 10,436,519 ​ ​ 9,901,554 ​ ​ 10,593,229 ​ Net (loss) income per common share basic and diluted ​ $ ( 0.02 ) ​ $ ( 0.06 ) ​ $ ( 0.08 ) ​ $ ( 0.09 ) ​ ​ The accompanying notes are an integral part of these condensed consolidated financial statements. ​ 4 Table of Contents MOVING IMAGE TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (in thousands except for share amounts) (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three and Nine months ended March 31, 2025 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Common Stock ​ Additional ​ Accumulated ​ ​ ​ ​ Shares Amount ​ ​ Paid-In Capital ​ ​ Deficit ​ Total Balance as of June 30, 2024 ​ 9,896,850 ​ $ — ​ $ 11,965 ​ $ ( 6,255 ) ​ $ 5,710 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Grant of options to officer ​ — ​ ​ — ​ ​ 5 ​ ​ — ​ ​ 5 Net loss ​ — ​ ​ — ​ ​ — ​ ​ ( 25 ) ​ ​ ( 25 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of September 30, 2024 ​ 9,896,850 ​ $ — ​ $ 11,970 ​ $ ( 6,281 ) ​ $ 5,690 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Grant of options to officer ​ — ​ ​ — ​ ​ 32 ​ ​ — ​ ​ 32 Net loss ​ — ​ ​ — ​ ​ — ​ ​ ( 527 ) ​ ​ ( 527 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of December 31, 2024 ​ 9,896,850 ​ $ — ​ $ 12,003 ​ $ ( 6,808 ) ​ $ 5,195 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Grant of options to officers ​ — ​ ​ — ​ ​ 11 ​ ​ — ​ ​ 11 Issuance of stock to directors ​ 36,829 ​ ​ — ​ ​ 23 ​ ​ — ​ ​ 23 Repriced options for directors and officer ​ — ​ ​ — ​ ​ 11 ​ ​ — ​ ​ 11 Net loss ​ — ​ ​ — ​ ​ — ​ ​ ( 240 ) ​ ​ ( 240 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of March 31, 2025 ​ 9,933,679 ​ $ — ​ $ 12,047 ​ $ ( 7,048 ) ​ $ 4,999 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three and Nine months ended March 31, 2024 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance June 30, 2023 ​ 10,685,778 ​ $ — ​ $ 12,462 ​ $ ( 4,883 ) ​ $ 7,579 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Grant of options to officer ​ — ​ ​ — ​ ​ 5 ​ ​ — ​ ​ 5 Net profit ​ — ​ ​ — ​ ​ — ​ ​ 439 ​ ​ 439 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of September 30, 2023 ​ 10,685,778 ​ $ — ​ $ 12,467 ​ $ ( 4,444 ) ​ $ 8,023 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Grant of options to officer ​ — ​ ​ — ​ ​ 5 ​ ​ — ​ ​ 5 Share buyback and cancellation ​ ( 109,135 ) ​ ​ — ​ ​ ( 101 ) ​ ​ — ​ ​ ( 101 ) Net loss ​ — ​ ​ — ​ ​ — ​ ​ ( 794 ) ​ ​ ( 794 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of December 31, 2023 ​ 10,576,643 ​ $ — ​ $ 12,371 ​ $ ( 5,238 ) ​ $ 7,133 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Grant of options to officer ​ — ​ ​ — ​ ​ 5 ​ ​ — ​ ​ 5 Issuance of stock to directors ​ 18,938 ​ ​ — ​ ​ 13 ​ ​ — ​ ​ 13 Share buyback and cancellation ​ ( 260,024 ) ​ ​ — ​ ​ ( 200 ) ​ ​ — ​ ​ ( 200 ) Share buyback and cancellation for officer ​ ( 49,586 ) ​ ​ — ​ ​ ( 33 ) ​ ​ — ​ ​ ( 33 ) Net loss ​ — ​ ​ — ​ ​ — ​ ​ ( 601 ) ​ ​ ( 601 ) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of March 31, 2024 ​ 10,285,971 ​ $ — ​ $ 12,157 ​ $ ( 5,840 ) ​ $ 6,317 ​ ​ ​ ​ The accompanying notes are an integral part of these condensed consolidated financial statements. 5 Table of Contents MOVING IMAGE TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended ​ ​ March 31 ​ ​ 2025 ​ 2024 Cash flows from operating activities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net (loss) ​ $ ( 792 ) ​ $ ( 956 ) Adjustments to reconcile net (loss) to net cash provided by (used in) operating activities: ​ ​ ​ ​ ​ ​ Provision for credit losses ​ 59 ​ ​ ( 52 ) Inventory reserve ​ ​ 277 ​ ​ 433 Depreciation expense ​ 10 ​ ​ 9 Amortization expense ​ 44 ​ ​ 43 Right-of-use amortization ​ 197 ​ ​ 201 Stock option compensation expense ​ ​ 59 ​ ​ 15 Stock issued for director expenses ​ ​ 23 ​ ​ 13 Changes in operating assets and liabilities ​ ​ ​ ​ ​ ​ Accounts receivable ​ 50 ​ ​ 67 Inventories ​ ( 226 ) ​ ​ ( 234 ) Prepaid expenses and other ​ 230 ​ ​ ( 487 ) Accounts payable ​ 484 ​ ​ ( 50 ) Accrued expenses and customer refunds ​ ( 81 ) ​ ​ 129 Unearned warranty revenue ​ 22 ​ ​ 26 Customer deposits ​ ( 117 ) ​ ​ 726 Lease liabilities ​ ​ ( 148 ) ​ ​ ( 207 ) Net cash provided by (used in) operating activities ​ 91 ​ ​ ( 324 ) Cash flows from investing activities ​ ​ ​ ​ ​ ​ Purchases of property and equipment ​ ​ — ​ ​ ( 12 ) Net cash (used in) investing activities ​ — ​ ​ ( 12 ) ​ ​ ​ ​ ​ ​ ​ Cash flows from financing activities ​ ​ ​ ​ ​ ​ Stock Buyback ​ ​ — ​ ​ ( 334 ) Net cash (used in) financing activities ​ — ​ ​ ( 334 ) ​ ​ ​ ​ ​ ​ ​ Net increase (decrease) in cash ​ 91 ​ ​ ( 670 ) Cash, beginning of the period ​ 5,278 ​ ​ 6,616 Cash, end of the period ​ $ 5,369 ​ $ 5,946 Non-cash investing and financing activities: ​ ​ ​ ​ ​ ​ Right-of-use assets from new lease ​ $ ( 207 ) ​ $ — Right-of-use assets from lease modification ​ $ ( 988 ) ​ $ — ​ The accompanying notes are an integral part of these condensed consolidated financial statements. ​ ​ 6 Table of Contents NOT E 1 — BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ​ Organization: Moving iMage Technologies, Inc., a Delaware corporation, together with its wholly owned subsidiaries unless the context indicates otherwise, the (“Company”) was incorporated in June 2020. The Company, through its wholly owned subsidiary, Moving iMage Technologies, LLC (“MiT LLC”) and MiT LLC’s wholly-owned subsidiary, Moving iMage Acquisition Co., (DBA “Caddy Products”), designs, integrates, installs and distributes proprietary and custom designed equipment as well as off the shelf cinema products needed for contemporary cinema requirements. The Company also offers single source solutions for cinema design, procurement, installation and service to the creative and production communities for screening, digital intermediate and other critical viewing rooms. 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. ​ Moving iMage Acquisition Co. (DBA “Caddy Products”) designs, develops and manufactures innovative products for the entertainment, cinema, grocery, worship, restaurant, sports and restroom industries. Impact of the COVID-19 Pandemic: The COVID-19 pandemic has had an unprecedented impact on the world and the movie exhibition industry. The social and economic effects have been widespread. At various points during the pandemic, authorities around the world-imposed measures intended to control the spread of COVID-19, including stay-at-home orders and restrictions on large public gatherings, which caused movie theaters in countries around the world to temporarily close. The repercussions of the COVID-19 global pandemic resulted in a significant impact to our customers, specifically those in the entertainment and cinema industries. As a result, the Company implemented various cash preservation strategies, including, but not limited to, temporary personnel and salary reductions, halting non-essential operating and capital expenditures, and negotiating modified timing and/or abatement of contractual payments with landlords and other major suppliers. ​ Throughout 2020 and through 2022 the theatres reopened as soon as local restrictions, and the status of the COVID-19 pandemic would allow. As of March 31, 2025, a large majority of domestic and international theatres were open. The industry’s recovery to historical levels of new film content, both in terms of the number of new films and box office performance, is still underway, as the industry also continues to adjust to evolving theatrical release windows, competition from streaming and other delivery platforms, supply chain delays, inflationary pressures, labor shortages, wage rate pressures and other economic factors. ​ Based on the management’s current estimates, it believes it will generate sufficient cash to sustain operations for a period of 12 months from the issuance of these financial statements. ​ Principles of Consolidation: The condensed consolidated financial statements include the accounts of MiT Inc., its wholly owned subsidiary, MiT LLC, and MiT LLC’s wholly owned subsidiary, Moving iMage Acquisition Co., (DBA “Caddy Products”). All significant intercompany transactions and balances have been eliminated in consolidation. ​ Basis of Presentation: The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). ​ Unaudited Interim Condensed Consolidated Financial Statements: The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. GAAP for interim financial information. Accordingly, they do not include all of the information and notes required by U.S. GAAP. However, in the opinion of the management of the Company, all adjustments of a normal recurring nature necessary for a fair presentation of the financial position and operating results have been included in these statements. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in its Annual Report on Form 10-K for the fiscal year ended June 30, 2024, and with the disclosures and risk factors presented therein. The June 30, 2024 condensed consolidated balance sheet has been derived from the audited consolidated financial statements. Operating results for the three and nine months ended March 31, 2025 are not necessarily indicative of the results that may be expected for any subsequent quarters or for the year ending June 30, 2025. ​ ​ 7 Table of Contents NOTE 1 — BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) ​ Assets and Liabilities Measured on a Non-recurring Basis - In addition to assets and liabilities that are measured at fair value on a recurring basis, we also measure certain assets and liabilities at fair value on a nonrecurring basis. Our non-financial assets, including intangible assets and property and equipment, are measured at fair value when there is an indication of impairment and the carrying amount exceeds the asset’s projected undiscounted cash flows. These assets are recorded at fair value only when an impairment charge is recognized. ​ Use of Estimates: The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities (including sales returns, credit losses, inventory reserves, warranty reserves, purchase price allocation and asset impairments), disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Concentration of Cash: The Company maintains its cash in bank accounts which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. Management believes the Company is not exposed to any significant credit risk on its cash balances. Accounts Receivable: Accounts receivable are carried at original invoice amount less allowance for credit losses. Management determines the allowance for credit losses by identifying troubled accounts and by using historical experience applied to an aging of accounts. Accounts receivable are written off when deemed uncollectible. Recoveries of receivables previously written off are recorded when received. Accounts receivable are considered to be past due if any portion of the receivable balance is outstanding for more than 90 days past the customer’s granted terms. The Company does not charge interest on past-due balances or require collateral on its accounts receivable. As of March 31, 2025 and June 30, 2024 the allowance for credit losses is approximately $ 436,000 and $ 378,000 , respectively. Inventories: 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. The Company purchases finished goods and materials to assemble kits in quantities that it anticipates will be fully used in the near term. Changes in operating strategy, customer demand, and fluctuations in market values can limit the Company’s ability to effectively utilize all products purchased and can result in finished goods with above-market carrying costs which may cause losses on sales to customers. 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 March 31, 2025 and June 30, 2024, the inventory reserve was $ 1,383,000 and $ 1,106,000 respectively, and inventory on hand was comprised primarily of finished goods ready for sale. Revenue Recognition: The Company follows Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”). Revenue is recognized when control of the promised goods is transferred at the point of shipment to a customer, and when performance conditions are satisfied at the customer location, in an amount that reflects the consideration that the Company expects to receive in exchange for those goods as per the agreement with the customer. The Company generates all its revenue from agreements with customers based on equipment shipment dates and when customer location work is completed. In cases of agreements with multiple performance obligations, the Company identifies each performance obligation and evaluates 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. The Company allocates the transaction price to each distinct performance obligation proportionately based on the estimated standalone selling price for each performance obligation and then evaluates how the services are transferred to the customer to determine the timing of revenue recognition. ​ The Company considers the U.S. GAAP criteria for determining whether to report revenue gross as a principal versus net as an agent. Factors considered include whether the Company is the primary obligor, has risks and rewards of ownership, and bears the risk that a customer may not pay for the products provided or services performed. If there are circumstances where the above criteria are not met, revenues recognized are presented net of cost of goods sold. ​ 8 Table of Contents NOTE 1 — BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued ) Contract assets consist of conditional or unconditional rights to consideration. Accounts receivable represent amounts billed to customers where the Company has an enforceable right to payment for performance completed to date (i.e., unconditional rights to consideration). The Company does not have contract assets that represent conditional rights to consideration. Contract liabilities consist of customer refunds and warranty liabilities, as well as deposits received in advance on sales to certain customers. 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 nine months ended March 31, 2025 included $ 0.207 million for revenue recognized that was included in contract liability as of June 30 2024. ​ ​ ​ ​ ​ ​ ​ Contract Liabilities ($ in Thousands) March 31, ​ June 30, Contract Liabilities 2025 ​ 2024 Customer deposits $ 1,534 ​ $ 1,651 Unearned warranty revenue ​ 53 ​ ​ 31 Customer refunds ​ 288 ​ ​ 399 Total $ 1,874 ​ $ 2,081 ​ 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. Taxes collected from customers are included in accounts payable on a net basis (excluded from revenues) until remitted to the government. Deferred contract acquisition costs consist of sales commissions paid to the sales force, and the related employer payroll taxes, and are considered incremental and recoverable costs of obtaining a contract with a customer. Management has determined that sales commissions paid are an immaterial component of obtaining a customer’s contract and has elected to expense sales commissions when earned. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ March 31, ​ March 31, Disaggregation of Revenue ($ in Thousands) 2025 2024 2025 2024 Equipment upon delivery (point in time) ​ $ 3,540 ​ $ 3,767 ​ $ 12,138 ​ $ 13,484 Installation (point in time) ​ 18 ​ 107 ​ 85 ​ 255 Software and services (over time) ​ 13 ​ 16 ​ 41 ​ 51 Total revenues ​ $ 3,571 ​ $ 3,890 ​ $ 12,264 ​ $ 13,790 ​ Revenue from the sale of equipment is recognized upon shipment of such equipment to customers and when performance conditions are satisfied at the custom location. Revenue from installation labor is recognized upon completion of the installation project and when the performance obligation is complete. Software subscription revenue for remote monitoring services is recognized on a straight-line basis over the term of the contract, usually one year . Services revenues are generally recognized over time as the contracts are performed. Returns and Allowances: The Company records allowances for discounts and product returns at the time of sale as a reduction of revenue as such allowances can be reliably estimated based on historical experience and known trends. Shipping and Handling Costs: Shipping and handling costs are included in cost of goods sold and are recognized as a period expense during the period in which they are incurred. 9 Table of Contents NOTE 1 — BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Advertising Costs: Advertising costs were approximately $ 4,600 and $ 13,600 for the three months ended March 31, 2025 and 2024, respectively and $ 16,800 and $ 23,200 for the nine months ended March 31, 2025 and 2024, respectively. Advertising costs are expensed as incurred within selling and marketing expenses. Intangible assets: Intangible assets arising from business combinations, such as customer relationships, trade names, and/or intellectual property, are initially recorded at fair value. The Company amortizes these intangible assets over the determined useful life which generally ranges from 11 to 20 years . Management reviews its intangible assets for impairment whenever events or circumstances indicate that the carrying amount of an asset may not be fully recoverable. There was no intangible asset impairments recognized for the three or nine months ended March 31, 2025 or 2024. Business Combinations: The Company includes the results of operations of the businesses that it acquires commencing on the respective dates of acquisition. The Company allocates the fair value of the purchase price of its acquisitions to the assets acquired and liabilities assumed based on their estimated fair values. The excess of the fair value of the purchase price over the fair values of these identifiable assets and liabilities is recorded as goodwill. Income Taxes: The Company utilizes an asset and liability approach for financial accounting and reporting for income taxes. The provision for income taxes is based upon income or loss after adjustment for those permanent items that are not considered in the determination of taxable income. Deferred income taxes represent the tax effects of differences between the financial reporting and tax basis of the Company’s assets and liabilities at the enacted tax rates in effect for the years in which the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. ​ The following table summarizes the components of deferred tax assets and deferred tax liabilities at March 31, 2025 and June 30, 2024 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ $ in Thousands Deferred Tax Assets (Liabilities) ​ ​ March 31, 2025 June 30, 2024 Inventory reserve ​ $ 387 ​ $ 309 Accumulated depreciation ​ ( 4 ) ​ ( 6 ) Accumulated goodwill amortization ​ 58 ​ 63 Accumulated intangible amortization ​ 122 ​ 125 Deferred rent ​ 16 ​ 2 Warranty reserve ​ 15 ​ 9 Stock compensation ​ 68 ​ 68 Net operating loss carryforward ​ 1,703 ​ 1,481 Allowance for doubtful accounts ​ 106 ​ 106 Net ​ 2,471 ​ 2,157 Valuation allowance ​ ( 2,471 ) ​ ( 2,157 ) Total ​ $ — ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ Leases : In accordance with ASC 842, on July 1, 2024 the Company recognized Right of Use Assets in the amount of $ 1,062,000 and a lease liability of $ 1,062,000 for the leases associated with its executive office and warehouse space, as described in Note 7. Product Warranty: The Company’s digital equipment products are sold under various limited warranty arrangements ranging from one year to three years . Company policy is to establish reserves for estimated product warranty costs in the period when the related revenue is recognized. The Company has the right to return defective products for up to three years , depending on the manufacturers’ individual policies. As of March 31, 2025 and June 30, 2024, the Company has established a warranty reserve of $ 41,000 and $ 69,000 , respectively, which is included in accrued expenses in the accompanying condensed consolidated balance sheets. 10 Table of Contents NOTE 1 — BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) The changes in the Company’s aggregate warranty liabilities were as follows for the following periods (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ ​ June 30, ​ ​ 2025 ​ ​ 2024 Product warranty liability, beginning of period $ 69 ​ $ 53 Accruals for warranties issued ​ 309 ​ ​ 250 Settlements made ​ ( 337 ) ​ ​ ( 234 ) Product warranty liability, end of period $ 41 ​ $ 69 ​ Research and Development: The Company incurs costs to develop new products, as well as improve the appeal and functionality of its existing products. Research and development costs are charged to expense when incurred. Recently Issued Accounting Pronouncements: In November 2023, FASB issued ASU 2023-07 on segment disclosures. The amendments will be effective for fiscal years beginning after December 15, 2024 (fiscal 2026 for the Company) and interim periods within fiscal years beginning after December 15, 2024 (fiscal 2026 for the Company). ​ In November 2024, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”) and in January 2025, the FASB issued ASU No. 2025-01, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date , which clarified the effective date of ASU 2024-03. ASU 2024-03 will require the Company to disclose the amounts of purchases of inventory, employee compensation, depreciation and intangible asset amortization, as applicable, included in certain expense captions in the Consolidated Statements of Operations, as well as qualitatively describe remaining amounts included in those captions. ASU 2024-03 will also require the Company to disclose both the amount and the Company’s definition of selling expenses. The Company will adopt ASU 2024-03 in its fourth quarter of 2028 using a prospective transition method. ​ In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”), which will require the Company to disclose specified additional information in its income tax rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. ASU 2023-09 will also require the Company to disaggregate its income taxes paid disclosure by federal, state and foreign taxes, with further disaggregation required for significant individual jurisdictions. The Company will adopt ASU 2023-09 in its fourth quarter of 2026 using a prospective transition method. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ 11 Table of Contents 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. 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: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Loss per Share For the Three Months For the Nine Months (In Thousands except for share ​ Ended March 31 ​ Ended March 31 and per share price) ​ 2025 ​ 2024 ​ 2025 ​ 2024 Numerator: ​ ​ ​ ​ Net (loss) ​ $ ( 240 ) ​ $ ( 601 ) ​ $ ( 792 ) ​ $ ( 956 ) Denominator: ​ ​ ​ ​ Weighted average common shares outstanding, basic and diluted ​ 9,911,015 ​ 10,436,519 ​ ​ 9,901,554 ​ 10,593,229 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net (loss) per share ​ ​ ​ ​ Basic and diluted ​ $ ( 0.02 ) ​ $ ( 0.06 ) ​ $ ( 0.08 ) ​ $ ( 0.09 ) ​ The following securities were excluded from the calculation of diluted loss per share in each period because their inclusion would have been anti-dilutive: ​ ​ ​ ​ ​ ​ ​ For the Nine Months Ended ​ ​ March 31 ​ ​ 2025 ​ 2024 Options 450,000 250,000 Total potentially dilutive shares 450,000 250,000 ​ For the three and nine months ended March 31, 2025 and March 31, 2024 the Company had a net loss. However, all potentially dilutive securities were also deemed to be anti-dilutive because their exercise price exceeded the weighted average trading price of the Company’s stock for the period. ​ NOTE 3— INTANGIBLE ASSETS The following table summarizes the Company’s intangible assets as of March 31, 2025 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortization ​ Gross Asset ​ Accumulated ​ Net Book ​ Period Cost Amortization Value Customer relations 11 years ​ $ 970 ​ $ 698 ​ $ 272 Patents 20 years ​ 70 ​ 20 ​ 50 Trademark 20 years ​ 78 ​ 22 ​ 56 ​ ​ $ 1,118 ​ $ 740 ​ $ 378 ​ 12 Table of Contents The following table summarizes the Company’s intangible assets as of June 30, 2024 (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Amortization ​ Gross Asset ​ Accumulated ​ Net Book ​ Period Cost Amortization Value Customer relations 11 years ​ $ 970 ​ $ 660 ​ $ 310 Patents 20 years ​ 70 ​ 17 ​ 53 Trademark 20 years ​ 78 ​ 19 ​ 59 ​ ​ $ 1,118 ​ $ 696 ​ $ 422 ​ Amortization expense was $ 15,000 and $ 15,000 for the three months ended March 31, 2025 and 2024, respectively, and $ 44,000 and $ 43,000 for the nine months ended March 31, 2025 and 2024, respectively, and is included in general and administrative expense. ​ Estimated amortization expense related to intangible assets subject to amortization at March 31, 2025 in each of the years subsequent to March 31, 2025, and thereafter is as follows (amounts in thousands); ​ ​ ​ ​ ​ 2025 $ 15 2026 ​ 60 2027 ​ 60 2028 ​ ​ 60 2029 ​ ​ 60 Thereafter ​ 123 Total ​ $ 378 ​ ​ NOTE 4— ACCRUED EXPENSES Accrued expenses consist of the following (in thousands): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Accrued Expenses ​ March 31, ​ June 30, ($ in Thousands) 2025 2024 Employee compensation ​ $ 254 ​ $ 178 Accrued warranty ​ ​ 41 ​ ​ 69 Freight ​ ​ 5 ​ ​ 32 Sales tax ​ ​ 29 ​ ​ 14 Other ​ 22 ​ 27 Total ​ $ 351 ​ $ 320 ​ ​ ​ ​ NOTE 5 — STOCKHOLDERS’ EQUITY In 2019, the Company adopted the 2019 Omnibus Incentive Plan (the “Plan”). The Plan, as amended, provides for the issuance of stock-based awards to employees. As of March 31, 2025, the Plan provides for the issuance of up to 1,500,000 stock-based awards. There are 1,020,000 stock-based awards available to grant under the Plan at March 31, 2025. On October 30, 2024, and as part of Francis Godfrey’s appointment as the Company’s President and Chief Operating Officer, the Board granted Francis Godfrey 200,000 options with an exercise price of $ 0.65 with 25 % vesting immediately and the remainder vesting at 25 % per year thereafter . In December 2024 , the Board of Directors granted Phil Rafnson, CEO, a $ 100,000 bonus in recognition of his prior salary concessions made and for his efforts in the revised Company budget and his leadership in securing Francois Godfrey as President. 13 Table of Contents On March 25, 2025, the Board of Directors (the “Board”) of Moving iMage Technologies, Inc. cancelled the previously issued May 23, 2023 250,000 share options at $ 1.10 per share to outside directors consisting of 50,000 each to Directors Katherine Crothall, Scott Anderson and John Stiska and as well as 100,000 options to CFO William Greene at $ 1.10 per share. The Board reissued the 250,000 options at $ 0.65 per share . On May 26 , 2023, the Board granted either (i) 10,000 shares of t he Company's stock , or (ii) options for 10,000 shares at $ 1.10 per share to each outside director Katherine Crothall , Scott Anderson and John Stiska . On March 25, 2025, the Board re-priced the $ 1.10 shares or options to $ 0.65 per share which resulted in an incremental stock-based compensation charge of $ 11,000 in the three and nine-months ended March 31, 2025 . ​ The Company recognized compensation expense of approximately $ 22,000 and $ 5,000 for stock options during the three months ended March 31, 2025 and March 31, 2024, respectively, and $ 59,000 and $ 16,000 during the nine months ended March 31, 2025 and March 31, 2024, respectively. None of these potentially dilutive securities were included in the computation of diluted earnings per share as their impact would be anti-dilutive. The estimated fair value of each option award granted was determined on the date of grant using the Black-Scholes option valuation model during the three and nine months ended March 31, 2025. There were no option grants during the three and nine months ended March 31, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ March 31, ​ ​ December 31, ​ ​ ​ 2025 ​ ​ 2024 ​ ​ ​ Options ​ ​ Options ​ ​ ​ ​ ​ ​ ​ ​ Risk-free interest rate ​ 4.35 % ​ 4.22 % Expected volatility ​ 84 % ​ 84 % Dividend yield ​ — % ​ — % Expected option term in years ​ 2.4 ​ 5.5 ​ ​ 14 Table of Contents NOTE 5 — STOCKHOLDERS’ EQUITY (continued) ​ A summary of the status of the Company’s stock options as of March 31, 2025 and changes during the nine months ended March 31, 2025 are presented below. ​ ​ ​ ​ ​ ​ ​ ​ ​ Wtd. Avg. ​ ​ ​ ​ Exercise ​ ​ Options ​ Price Balance, July 1, 2024 250,000 ​ $ 1.10 Granted during the period 200,000 ​ 0.65 Granted during the period 250,000 ​ 0.65 Exercised during the period — ​ — Cancelled during the period ( 250,000 ) ​ $ ( 1.10 ) Balance, March 31, 2025 450,000 ​ $ 0.65 ​ A summary of the status of the Company’s stock options as of March 31, 2024 and changes during the nine months ended March 31, 2024 are presented below. ​ ​ ​ ​ ​ ​ ​ ​ ​ Wtd. Avg. ​ ​ ​ ​ Exercise ​ ​ Options ​ Price Balance, July 1, 2023 250,000 ​ $ 1.10 Granted during the period — ​ — Exercised during the period — ​ — Terminated/Expired during the period — ​ — Balance, March 31, 2024 250,000 ​ $ 1.10 ​ The following table summarizes information about outstanding and exercisable stock options at March 31, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Range of Number Number ​ Wtd. Avg. Exercise Price ​ Outstanding ​ Exercisable ​ Wtd. Avg, Life ​ Exercise Price $ 0.65 450,000 250,000 8.79 years ​ $ 0.65 ​ There was no warrant activity or warrants outstanding during the year ended June 30, 2024 or for the nine months ended March 31, 2025 and 2024. ​ As authorized by the Board on May 26, 2023, directors may receive their board fees as cash or in shares of the Company’s stock. The Company records director fee expense at the end of each board meeting. On February 24, 2025, the Company subsequently issued 36,829 shares to its independent directors for director fees earned during the eleven-month period of April 2024 through February 2025. On March 25, 2024, the Company issued 18,938 shares to its independent directors for director fees earned during the nine months ended March 31, 2024. ​ On March 23, 2023 the Board of Directors re-authorized a stock repurchase program. Under the stock repurchase program, the Company may repurchase up to $ 1 million of its outstanding common stock over the next 12 months. The program expired on March 23, 2024 and a new program was established on April 1, 2024. During the nine months ended March 31, 2024, the Company repurchased 418,745 of the Company’s stock at an average price of $ 0.78 per share. There were no share repurchases for the three months and nine months ended March 31, 2025. ​ 15 Table of Contents NOTE 5 — STOCKHOLDERS’ EQUITY (continued) ​ $ in Thousands, except shares and dollar per share amounts ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Number of ​ Approximate ​ ​ ​ ​ ​ ​ ​ Shares ​ Dollar Value of ​ ​ ​ ​ ​ ​ ​ Purchased as ​ Shares that May ​ ​ Total Number ​ Average Price ​ Part of Publicly ​ Yet Be Purchased ​ ​ of Shares ​ Paid per ​ Announced Plans ​ Under the Plans Period ​ Purchased ​ Share ​ or Programs ​ or Programs Mar 23, 2023 - Mar 31, 2023 ​ 47,467 ​ $ 1.04 ​ 47,467 ​ $ 951,000 May 18 - Jun 30, 2023 ​ 225,153 ​ ​ 1.13 ​ 225,153 ​ ​ 697,000 Nov 1, 2023 - Dec 31, 2023 ​ 109,135 ​ ​ 0.93 ​ 109,135 ​ ​ 594,000 Jan 1, 2024 - Mar 31, 2024 ​ 309,610 ​ ​ 0.77 ​ 309,610 ​ ​ 363,000 Total ​ 691,365 ​ $ 0.92 ​ 691,365 ​ $ 363,000 ​ ​ ​ NOTE 6 — CUSTOMER AND VENDOR CONCENTRATIONS Customers : Two customers accounted for more than 12 % and 8 % , respectively, of the Company’s sales for the three months ended March 31, 2025. No customers accounted for more than 10% of the Company’s sales for the nine months ended March 31, 2025. At March 31, 2025, the amount of outstanding receivables related to the one customer was approximately $ 284,000 . One customer accounted for 24 % of the Company’s sales for the three months ended March 31, 2024. No customer accounted for more than 10% of the Company’s sales for the nine months ended March 31, 2024. Vendors: Two vendors accounted for 24 % and 20 % , respectively, of the Company’s purchases for the three months ended March 31, 2025. Approximately 14 % of the Company's purchases were provided by one vendor for the three months ended March 31, 2024. Two vendors accounted for 18 % and 15 % , respectively, of the Company’s purchases for the nine months ended March 31, 2025. Approximately 16 % and 15 % of the Company's purchases were provided by two vendors for the nine months ended March 31, 2024. NOTE 7 — LEASE COMMITMENTS AND CONTINGENCIES Operating Leases: The Company leases executive office and warehouse space in Fountain Valley, CA, pursuant to separate lease agreements. Under ASC 842, at contract inception the Company determined whether the contract is or contains a lease and whether the lease should be classified as an operating or a financing lease. Operating leases are included in ROU (right-of-use) assets and operating lease liabilities in our condensed consolidated balance sheets. The Company’s executive office and warehouse lease agreements are classified as operating leases. On July 23, 2024, the Company renewed its Fountain Valley location effective February 1, 2025 by an additional five years with a January 31, 2030 lease expiration date. Both parties agreed that July 23, 2024 was the effective modification date. The monthly rent payable for the first year of the extended term will be $ 19,362 and increases by 4 % on each anniversary date. On June 4, 2024, the Company notified its Grace facility location landlord of its intent to vacate at the end of the current January 31, 2025 lease term. ​ On October 30, 2024, the Company entered into a new 4,344 square foot facility lease with a three-year lease term and a February 1, 2028.lease expiration date. The monthly rent payable for the first year of the extended term will be $ 6,299 and increases by 4 % on each anniversary date. In addition to the monthly base amounts in the lease agreements, the Company is required to pay a portion of real estate taxes and common operating expenses during the lease terms. 16 Table of Contents NOTE 7 — LEASE COMMITMENTS AND CONTINGENCIES (continued) The Company’s operating lease expense was $ 98,000 and $ 72,000 for the three months ended March 31, 2025 and 2024, respectively. The Company’s operating lease expense was $ 283,000 and $ 218,000 for the nine months ended March 31, 2025 and 2024, respectively. ​ Future minimum lease payments at March 31, 2025 under these arrangements are as follows: ​ ​ ​ ​ ​ ​ (in thousands) ​ ​ Total Operating leases ​ Payments 2025 ​ $ 77 2026 ​ ​ 313 2027 ​ ​ 326 2028 ​ ​ 303 2029 ​ ​ 266 2030 ​ ​ 159 Total undiscounted operating lease payments ​ $ 1,444 Less imputed interest (at 8.42 % ) ​ ( 246 ) Present value of operating lease payments ​ $ 1,198 ​ The following table sets forth the ROU assets and operating lease liabilities as of March 31, 2025: ​ ​ ​ ​ ​ Assets (in thousands) ROU assets-net ​ $ 1,142 ​ ​ ​ ​ Liabilities ​ Current operating lease liabilities ​ $ 219 Long-term operating lease liabilities ​ 979 Total ROU liabilities ​ $ 1,198 ​ The Company’s weighted average remaining lease term for its operating leases is 4.5 years using a weighted average discount rate of 8.42 %. ​ Legal Matters: From time to time, the Company is involved in routine litigation that arises in the ordinary course of business. There are no significant legal proceedings pending to which the Company is a party for which management believes the ultimate outcome would have a material adverse effect on the Company’s financial position. ​ NOTE 8 — SUBSEQUENT EVENTS Management has evaluated events from March 31, 2025 through May 15, 2025, the date these financial statements were available to be issued and determined that there have been no other events that occurred that would require adjustment to our disclosures in the condensed consolidated financial statements. ​ 17 Table of Contents