MOVING iMAGE TECHNOLOGIES INC.

Previous wording

We are a leading provider of technology, products, and services to movie theater operators and sports and entertainment venues.

Current wording

We provide technology, products, and services to movie theater operators and sports and entertainment venues.

Previous wording

After overcoming the prior year Covid-19 impacts, based on our current estimates of recovery, we believe we have, and will generate, sufficient cash to sustain operations.

Current wording

Based on our current estimates of recovery, we believe we have, and will generate, sufficient cash to sustain operations.

Previous wording

Net sales increased by 10.2% to $3.793 million for the three months ended December 31, 2025 from $3.441 million for the three months ended December 31, 2024 due to higher one-time sales. Estimated quarterly recurring sales revenues are 2 million.

Current wording

Net sales decreased by 4.9% to $3.397 million for the three months ended March 31, 2026 from $3.571 million for the three months ended March 31, 2025 due to lower one-time project sales. Estimated quarterly recurring sales revenues are $2.0 million.

Previous wording

Other Income was $0.020 million for the three months ended December 31, 2025 compared to Other Income of $0.034 million for the three months ended December 31, 2024 or an increase of $0.014 million. The decrease was due to lower interest income on cash savings accounts in the three months ended December 31, 2025 compared to the three months ended December 31, 2024.

Current wording

Other Income was $0.012 million for the three months ended March 31, 2026 compared to Other Income of $0.030 million for the three months ended March 31, 2025 or a decrease of $0.018 million. The decrease was due to lower interest income on cash savings accounts in the three months ended March 31, 2026 compared to the three months ended March 31, 2025.

Previous wording

Net income was $0.122 million for the six months ended December 31, 2025 compared to a net loss of $(0.552) million for the six months ended December 31, 2024 or an improvement in loss reduction of $0.674 million. The improvement was due to a combination of higher gross margin of $0.532 million, and lower operating expenses of $0.040 million and lower other income of $0.026 million.

Current wording

Net loss was $(0.122) million for the three months ended March 31, 2026 compared to a net loss of $(0.240) million for the three months ended March 31, 2025 or an improvement in loss reduction of $0.118 million. The improvement was due to higher gross margin of $0.120 million and lower operating expense of $0.016 million, offset by lower other income of $0.018 million.

Previous wording

Net sales increased 7.8% to $9.375 million for the six months ended December 31, 2025 from $8.693 million for the six months ended December 31, 2024 due to higher one-time sales.

Current wording

Net sales increased 4.1% to $12.771 million for the nine months ended March 31, 2026 from $12.264 million for the nine months ended March 31, 2025 due to higher one-time project sales.

Previous wording

Gross profit dollars increased by $0.229 million or 24.5% to $1.165 million for the three months ended December 31, 2025 from $0.936 million for the three months ended December 31, 2024. As a percentage of total revenues, gross profit percentage increased to 30.7% from 27.2% due to higher margin product revenues.

Current wording

Gross profit dollars increased by $0.651 million or 19.3% to $4.021 million for the nine months ended March 31, 2026 from $3.370 million for the nine months ended March 31, 2025. As a percentage of total revenues, gross profit percentage increased to 31.5% from 27.5% due to DCS higher margin product revenues.

Previous wording

Research and development expenses decreased by $(0.014) million or 12.8% for the six months ended December 31, 2025 compared to the six months ended December 31, 2024 due to headcount reduction.

Current wording

Research and development expenses decreased by $(0.017) million or 10.8% for the nine months ended March 31, 2026 compared to the nine months ended March 31, 2025 due to headcount reduction.

Previous wording

In the six months ended December 31, 2025, selling, general and administrative expense decreased by $(0.026) million or 0.9% due largely to cost reductions enacted in August 2024 compared to the six months ended December 31, 2024.

Current wording

In the nine months ended March 31, 2026, selling, general and administrative expense decreased by $0.039 million or 0.9% due primarily to lower payroll costs.

Previous wording

Net loss was $(0.388) million for the three months ended December 31, 2025 compared to a net loss of $(0.527) million for the three months ended December 31, 2024 or an improvement in loss reduction of $0.139 million. The improvement was due to a combination of higher gross margin of $0.229 million offset by higher selling, general and administrative expenses of $0.076 million and lower other income of $0.014 million.

Current wording

Net income was $(0.001) million for the nine months ended March 31, 2026 compared to a net loss of $(0.792) million for the nine months ended March 31, 2025 or an improvement in loss reduction of $0.791 million. The improvement was due to higher gross margin of $0.651 million, lower selling, general and administrative expenses of $0.039 million and higher other income of $0.084 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 December 31, 2025 was approximately $3.913 million, as compared to $5.715 million at June 30, 2025. The $1.802 million decrease was largely due to the DCS inventory purchase of $1.5 million in October 2025. On October 31, 2025, the Company entered into an Asset Purchase Agreement (the “APA”) with QSC, LLC (“QSC”) pursuant to which the Company purchased certain assets comprising QSC’s Digital Cinema Speaker Series (“DCS”) loudspeaker product line including, the DCS loudspeaker product line, including the SC, SR, SB, and RSM product families; intellectual property, including trademarks, designs, and trade secrets; inventory and raw materials; OEM supplier agreements; product technical documentation; and rights to service and support existing DCS customers, for a purchase price of $1.5 million.

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 March 31, 2026 was approximately $2.400 million, as compared to $5.715 million at June 30, 2025. The $3.352 million decrease was largely due to the DCS inventory purchase of $1.5 million in October 2025 and subsequent DCS inventory purchases during the March quarter. On October 31, 2025, the Company entered into an Asset Purchase Agreement (the “APA”) with QSC, LLC (“QSC”) pursuant to which the Company purchased certain assets comprising QSC’s Digital Cinema Speaker Series (“DCS”) loudspeaker product line including, the DCS loudspeaker product line, including the SC, SR, SB, and RSM product families; intellectual property, including trademarks, designs, and trade secrets; inventory and raw materials; OEM supplier agreements; product technical documentation; and rights to service and support existing DCS customers, for a purchase price of $1.5 million.

Previous wording

Compared to December 31, 2024, net cash used in operating activities decreased by $1.845 million in December 31, 2025 due largely to the DCS inventory purchase of $1.500 million in October 2025. Net cash used in operating activities was $(1.802) million for thesix months ended December 31, 2025, primarily due to $(2.687) million in working capital decreases which were offset by $0.122 million in net income and $0.324 million in other non-cash expenses. Within the working capital change, cash used in operating activities included $(2.687) million in inventory, accounts payable, customer deposits, lease liabilities and accrued expenses and offset by $0.434 million in accounts receivable and unearned warranty revenue.

Current wording

Compared to March 31, 2025, net cash used in operating activities increased by $3.393 million in March 31, 2026 due largely to the increased DCS inventory and payables of $2.200 million. Net cash used in operating activities was $(3.301) million for thenine months ended March 31, 2026, which were offset by $0.001 million in net loss and $0.549 million in other non-cash expenses. Within the working capital change, cash used in operating activities included $(3.872) million in inventory, accounts payable, customer deposits, accounts receivable, prepaids and lease liabilities offset by $0.022 million in unearned warranty revenue.

Previous wording

For thesix months ended December 31, 2024, net cash provided by operating activities was $0.038 million for the six months ended December 31, 2024, primarily due to 0.202 million in working capital increases along with $(0.552) million in net losses and 0.388 million in other non-cash expenses. Within the working capital change, net cash provided included $1.518M in accounts receivable, inventory, prepaids, accrued expense, unearned warranty revenue offset by $(1.316) million in payables, customer deposit declines and lease liabilities.

Current wording

For thenine months ended March 31, 2025, net cash provided by operating activities was $0.091 million, 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.

Previous wording

Net cash from investing activities was zero for the six months ended December 31, 2025 and 2024.

Current wording

Net cash used in investing activities was $0.045 million for equipment purchases for the nine months ended March 31, 2026 and zero for the nine months ended March 31, 2025.

Previous wording

Net cash from financing activities was zero for the six months ended December 31, 2025 and 2024.

Current wording

Net cash used in financing activities was $0.006 million for repurchase of shares for the nine months ended March 31, 2026 and zero for the nine months ended March 31,2025.

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 six months ended December 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 nine months ended March 31, 2026 to the judgments, assumptions and estimates upon which our critical accounting estimates are based.