MOVING iMAGE TECHNOLOGIES INC.

Previous wording

Throughout 2020 and 2021 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

Current wording

Throughout 2020 and 2021 the theatres reopened as soon as local restrictions and the status of the COVID-19 pandemic would allow. As of September 30, 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 recovers from the 2023 SAG-AFTRA strike, 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.

Previous wording

have been, and will continue to be, an important factor in winning new business. We expect that a substantial portion of our future sales will be sales to existing customers, including expansion of their product and service offerings, as we offer new products and services through the existing sales channel. Our business and results of operations will depend on our ability to continue to add new customers and sell additional products and services to our growing base of customers.

Current wording

Adding New Customers and Expanding Sales to Our Existing Customer Base. We intend to target new customers by selectively investing in our field sales force. We also intend to continue to target large customers’ organizations who have yet to use our products and services. A typical initial order involves educating prospective customers about the technical merits and capabilities and potential cost savings of our products and services as compared to our competitors’ products. We believe that customer references have been, and will continue to be, an important factor in winning new business. We expect that a substantial portion of our future sales will be sales to existing customers, including expansion of their product and service offerings, as we offer new products and services through the existing sales channel. Our business and results of operations will depend on our ability to continue to add new customers and sell additional products and services to our growing base of customers.

Previous wording

Net sales decreased 8.2% to $3.571 million for the three months ended March 31, 2025 from $3.890 million for the three months ended March 31, 2024 due to higher one-time sales in the three months ended March 31, 2024.

Current wording

Net sales increased 6.3% to $5.582 million for the three months ended September 30, 2025 from $5.252 million for the three months ended September 30, 2024 due to higher one-time sales.

Previous wording

Gross profit dollars increased by $0.387 million or 57.2% to $1.063 million for the three months ended March 31, 2025 from $0.676 million for the three months ended March 31, 2024. As a percentage of total revenues, gross profit percentage increased to 29.8% from 17.4% due to higher margin product revenues along with lower inventory reserve additions.

Current wording

Gross profit dollars increased by $0.302 million or 22.0% to $1.674 million for the three months ended September 30, 2025 from $1.372 million for the three months ended September 30, 2024. As a percentage of total revenues, gross profit percentage increased to 30.0% from 26.1% due to higher margin product revenues.

Previous wording

Research and development expenses decreased by $(0.024) million or 33% for the three months ended March 31, 2025 compared to the three months ended March 31, 2024 due to headcount reduction.

Current wording

Research and development expenses decreased by $(0.013) million or 21.3% for the three months ended September 30, 2025 compared to the three months ended September 30, 2024 due to headcount reduction.

Previous wording

The decrease in selling, general and administrative expense of $0.026 million or 0.6% due to headcount reduction and lower compensation expense in the nine months ended March 31, 2025 compared to the nine months ended March 31, 2024.

Current wording

The decrease in selling, general and administrative expense of $0.103 million or 7.5% was due to lower compensation expense, lower rent and lower travel and related costs in the three months ended September 30, 2025 compared to the three months ended September 30, 2024.

Previous wording

Net loss was $(0.240) million for the three months ended March 31, 2025 compared to a net loss of $(0.601) million for the three months ended March 31, 2024 or a loss reduction of $0.361 million. The loss reduction was due to a combination of higher gross margin of $0.387 million, offset by higher operating expenses of $(0.008) million and lower other income of $(0.018) million.

Current wording

Net income was $0.509 million for the three months ended September 30, 2025 compared to a net loss of $(0.025) million for the three months ended September 30, 2024 or an improvement in loss reduction of $0.534 million. The improvement was due to a combination of higher gross margin of $0.302 million, lower operating expenses of $0.116 million and higher other income of $0.116 million.

Previous wording

During the past several years, we have primarily met our working capital and capital resource needs from our operating cash flows and financing activities. We believe that our existing sources of liquidity, including cash and operating cash flow, will be sufficient to fund our operations and to meet our projected capital needs for a period of at least 12 months from the date the condensed consolidated financial statements are available to be issued. The cash balance at March 31, 2025 was approximately $5.369 million, as compared to $5.278 million at June 30, 2024.

Current wording

During the past several years, we have primarily met our working capital and capital resource needs from our operating cash flows and financing activities. We believe that our existing sources of liquidity, including cash and operating cash flow, will be sufficient to fund our operations and to meet our projected capital needs for a period of at least 12 months from the date the condensed consolidated financial statements are available to be issued. The cash balance at September 30, 2025 was approximately $5.548 million, as compared to $5.715 million at June 30, 2025.

Previous wording

Compared to March 31, 2024, net cash provided by operating activities increased by $0.415 million in March 31, 2025 due to cost reductions. Net cash provided by operating activities was $0.091 million for the nine months ended March 31, 2025, primarily due to 0.214 million in working capital increases along with $(0.792) million in net losses and 0.669 million in other non-cash expenses. Within the working capital change, net cash provided included $0.786 million in accounts receivable, prepaids, payables and unearned warranty revenue offset by 0.572 million in inventory, accrued expenses, customer deposit declines and lease liabilities.

Current wording

Compared to September 30, 2024, net cash used in operating activities increased by $0.135 million in September 30, 2025 due to increased accounts receivable and prepaids. Net cash used in operating activities was $(0.167) million for thethree months ended September 30, 2025, primarily due to $(0.804) million in working capital decreases which were offset by $0.509 million in net losses and $0.128 million in other non-cash expenses. Within the working capital change, net cash provided included $0.547 million in inventory, accrued expenses and unearned warranty revenue offset by ($(1.351) million in accounts receivable, prepaids, accounts payable, customer deposit declines and lease liabilities.

Previous wording

For the nine months ended March 31, 2024, net cash used by operating activities was $(0.324) million, primarily due to $(0.030) million in working capital decreases along with $(0.956) million in net losses and offset by $0.662 million in other non-cash expenses due primarily to extended payable terms. Within working capital change, the uses of cash of $(0.978) million included changes in inventory, prepaids, payables and lease liabilities offset by $0.948 million of changes in receivables, accrued expense, unearned warranty revenue, deposits and customer deposits.

Current wording

For thethree months ended September 30, 2024, net cash used by operating activities incr eased by $0.175 million in September 30, 2024 due to cost reductions and lower inventory levels. Net cash used by operating activities was $(0.032) million for the three months ended September 30, 2024, primarily due to $(0.180) million in working capital decreases along with $(0.025) million in net losses and offset by $0.173 million in other non-cash expenses. Within working capital change, the cash used of $(0.818) million included declines in payables, customer deposits and lease liabilities offset by $0.638M in provision for receivables, inventory, prepaids, accrued expense and unearned warranty revenue.

Previous wording

Net cash provided by financing activities was zero for the nine months ended March 31, 2025 and$(0.334) million used to repurchase shares inthe nine months ended March 31, 2024.

Current wording

Net cash from financing activities was zero for the three months ended September 30, 2025 and zero for the three months ended September 30, 2024.

Previous wording

For a discussion of the critical accounting policies and estimates, refer to the “Critical Accounting Policies and Estimates” section in Part II, Item 7 of our 2024 Form 10-K. There have been no material changes during the nine months ended March 31, 2025 to the judgments, assumptions and estimates upon which our critical accounting estimates are based.

Current wording

For a discussion of the critical accounting policies and estimates, refer to the “Critical Accounting Policies and Estimates” section in Part II, Item 7 of our 2024 Form 10-K. There have been no material changes during the three months ended September 30, 2025 to the judgments, assumptions and estimates upon which our critical accounting estimates are based.