MINIM INC
For the period ended Sep 30, 2024. Filed Nov 19, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 19, 2024
FIEE$3.12+2.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-20.
0001829126-24-005670
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-19.
0001829126-24-007675
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 63 previous paragraphs and 63 current paragraphs.
40 unchanged; 23 reworded; 0 added; 0 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 9 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Reworded paragraphs (23)
Previous wording
Our cash and cash equivalents balance on June 30, 2024 was $0.6 million compared to $0.7 million on December 31, 2023. On June 30, 2024, we had no outstanding borrowings and working capital of negative $0.7 million.
Current wording
Our cash and cash equivalents balance on September 30, 2024 was $0.2 million compared to $0.7 million on December 31, 2023. On September 30, 2024, we had no outstanding borrowings and working capital of negative $0.8 million.
Previous wording
The Company continues to experience losses, which in part is due to declining revenues. In the three and six months ended June 30, 2024 and 2023, we generated net sales of $0 million and $7.2 million, respectively, and $0.6 million and $17.9 million, respectively.
Current wording
The Company continues to experience losses, which in part is due to declining revenues. In the three and nine months ended September 30, 2024 and 2023, we generated net sales of $0 million and $6.7 million, respectively, and $0.6 million and $24.6 million, respectively.
Previous wording
Our critical accounting policies and estimates, which are revenue recognition, product returns, inventory valuation and costs of goods sold, warrants, valuation of deferred tax assets are described under “Critical Accounting Policies and Estimates” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K for the year ended December 31, 2023. For the six months ended June 30, 2024, there have been no significant changes in our critical accounting policies and estimates.
Current wording
Our critical accounting policies and estimates, which are revenue recognition, product returns, inventory valuation and costs of goods sold, warrants, valuation of deferred tax assets are described under “Critical Accounting Policies and Estimates” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K for the year ended December 31, 2023. For the nine months ended September 30, 2024, there have been no significant changes in our critical accounting policies and estimates.
Previous wording
Comparison of the three and six months ended June 30, 2024 to the three and six months ended June 30, 2023
Current wording
Comparison of the three and nine months ended September 30, 2024 to the three and nine months ended September 30, 2023
Previous wording
The following table sets forth our revenues by product and the changes in revenues for the three and six months ended June 30, 2024, as compared to the three and six months ended June 30, 2023:
Current wording
The following table sets forth our revenues by product and the changes in revenues for the three and nine months ended September 30, 2024, as compared to the three and nine months ended September 30, 2023:
Previous wording
The majority of the Company’s revenues by geographic area are earned in North America for the three and six months ended June 30, 2023.
Current wording
The majority of the Company’s revenues by geographic area are earned in North America for the three and nine months ended September 30, 2023.
Previous wording
Our total net sales decreased year-over-year by $7.2 million or 100% in the three months ended June 30, 2024 and by $17.3 million or 296.0% in the six months ended June 30, 2024. The decrease in net sales is directly attributable to decreased sales of Motorola branded cable modems and gateways. In 2023, we primarily generated our sales by selling cable modems and gateways. Sales related to SaaS offerings were $0 thousand and $74 thousand in the three months ended June 30, 2024 and 2023, respectively, and $0 thousand and $160 thousand in the six months ended June 30, 2024, respectively. The decrease in other category of $233 thousand in the three months ended June 30, 2024 compared to the three months ended in June 30, 2023 and the decrease of $324 thousand in the six months ended June 30, 2024 as compared to the six months ended June 30, 2023 is primarily due to a reduction in DSL and MoCA products due to a refocus on new product introductions. Generally, our lower sales outside North America reflect the fact that cable modems are sold successfully through retailers in the U.S. but not in most countries outside the U.S., due primarily to variations in government regulations.
Current wording
Our total net sales decreased year-over-year by $6.7 million or 100% in the three months ended September 30, 2024 and by $24.0 million or 97.4% in the nine months ended September 30, 2024. The decrease in net sales is directly attributable to decreased sales of Motorola branded cable modems and gateways. In 2023, we primarily generated our sales by selling cable modems and gateways. Sales related to SaaS offerings were $0 thousand and $3 thousand in the three months ended September 30, 2024 and 2023, respectively, and $0 thousand and $164 thousand in the nine months ended September 30, 2024 and 2023, respectively. The decrease in other category of $244 thousand in the three months ended September 30, 2024 compared to the three months ended in September 30, 2023 and the decrease of $567 thousand in the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023 is primarily due to a reduction in DSL and MoCA products. Generally, our lower sales outside North America reflect the fact that cable modems are sold successfully through retailers in the U.S. but not in most countries outside the U.S., due primarily to variations in government regulations.
Previous wording
Gross profit decreased in the three months ended June 30, 2024, compared to the three months ended in the prior fiscal year period, primarily due to insufficient sales levels necessary to cover fixed costs and certain variable costs. Gross profit decreased in the six months ended June 30, 2024, compared to the six months ended in the prior fiscal year period, primarily due to inventory reserves applied during the period ended June 30, 2024.
Current wording
Gross profit decreased in the three months ended September 30, 2024, compared to the three months ended in the prior fiscal year period, primarily due to insufficient sales levels necessary to cover fixed costs and certain variable costs. Gross profit decreased in the nine months ended September 30, 2024, compared to the nine months ended in the prior fiscal year period, primarily due decreased sales of Motorola branded cable modems and gateways.
Previous wording
For the remainder of fiscal 2024, we expect gross margin to decrease due to our ongoing expense incurred to support customer accounts. Our cost of goods sold, as a percentage of net sales, can vary significantly based upon factors such as: uncertainties surrounding revenue volumes, including the timing of sales.
Current wording
For the remainder of fiscal 2024, we expect gross margin to decrease in sales of Motorola branded cable modems and gateways. Our cost of goods sold, as a percentage of net sales, can vary significantly based upon factors such as: uncertainties surrounding revenue volumes, including the timing of sales.
Previous wording
Selling and marketing expenses decreased in the three months ended June 30, 2024, as compared to the three months ended June 30, 2023, primarily due to reductions in personnel expenses by $0.5 million, marketing campaigns by $1.2 million, Motorola royalty fees of $1.7 million, and other sales support costs of $0.1 million. Selling and marketing expenses decreased in the six months ended June 30, 2024, as compared to the six months ended June 30, 2023, primarily due to reductions in personnel expenses by $1.1 million, marketing campaigns by $2.2 million, Motorola royalty fees of $3.4 million, and other sales support costs of $0.5 million.
Current wording
Selling and marketing expenses decreased in the three months ended September 30, 2024, as compared to the three months ended September 30, 2023, primarily due to reductions in personnel expenses by $0.3 million, Motorola royalty fees of $1.7 million, and other sales support costs of $0.1 million. Selling and marketing expenses decreased in the nine months ended September 30, 2024, as compared to the nine months ended September 30, 2023, primarily due to reductions in personnel expenses by $1.4 million, marketing campaigns by $2.2 million, Motorola royalty fees of $5.1 million, and other sales support costs of $0.6 million.
Previous wording
For the remainder of the fiscal year 2024, we expect our selling and marketing expenses to decrease compared to first half of 2024. Expenses may fluctuate depending on sales levels achieved as certain expenses, and are determined based upon the net sales achieved. Forecasting both selling and marketing expenses is highly dependent on expected net sales levels and could vary significantly depending on actual net sales achieved in any given quarter. Marketing expenses may also fluctuate depending upon the timing, extent and nature of marketing programs.
Current wording
For the remainder of the fiscal year 2024, we expect our selling and marketing expenses to decrease compared to the first three quarters of 2024. Expenses may fluctuate depending on sales levels achieved as certain expenses, and are determined based upon the net sales achieved. Forecasting both selling and marketing expenses is highly dependent on expected net sales levels and could vary significantly depending on actual net sales achieved in any given quarter. Marketing expenses may also fluctuate depending upon the timing, extent and nature of marketing programs.
Previous wording
General and administrative expenses decreased $0.6 million in the three months ended June 2024 as compared to the three months ended June 30, 2023 primarily due to a decrease in personnel expenses of $0.3 million and software subscriptions of $0.3 million. General and administrative expenses decreased $0.9 million in the six months ended June 2024 as compared to the six months ended June 30, 2023 primarily due to a decrease in personnel expenses of $0.8 million and professional fees of $0.1 million.
Current wording
General and administrative expenses decreased $0.3 million in the three months ended September 30, 2024 as compared to the three months ended September 30, 2023 primarily due to a decrease in professional fees of $0.3 million and software subscriptions of $0.1 million. General and administrative expenses decreased $1.2 million in the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023 primarily due to a decrease in personnel expenses of $0.8 million and professional fees of $0.4 million.
Previous wording
The decrease of $1.1 million in the three months ended June 2024 as compared to the three months ended June 30, 2023 was primarily due to decreases in personnel expenses of $0.8 million, contract labor of $0.1 million, professional fees of $0.1 million, and other support costs of $0.1 million. The decrease of $2.6 million in the six months ended June 2024 as compared to the six months ended June 30, 2023 was primarily due to decreases in personnel expenses of $1.8 million, contract labor of $0.2 million, professional fees of $0.2 million, and certification and other costs of $0.4 million.
Current wording
The decrease of $0.7 million in the three months ended September 30, 2024 as compared to the three months ended September 30, 2023 was primarily due to decreases in personnel expenses of $0.5 million, professional fees of $0.1 million, and other support costs of $0.1 million. The decrease of $3.2 million in the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023 was primarily due to decreases in personnel expenses of $2.3 million, contract labor of $0.2 million, professional fees of $0.2 million, and certification and other costs of $0.5 million.
Previous wording
For the remainder of the fiscal year 2024, we expect research and development expenses to decrease compared to the first half of 2024. Research and development expenses may fluctuate depending on the timing and number of development activities and could vary significantly as a percentage of net sales, depending on actual net sales achieved in any given year.
Current wording
For the remainder of the fiscal year 2024, we expect research and development expenses to decrease compared to the first three quarters of 2024. Research and development expenses may fluctuate depending on the timing and number of development activities and could vary significantly as a percentage of net sales, depending on actual net sales achieved in any given year.
Previous wording
Our principal sources of liquidity are cash and cash equivalents. As of June 30, 2024, we had cash and cash equivalents of $0.6 million as compared to $0.7 million on December 31, 2023. On June 30, 2024, we had no borrowings outstanding and working capital of negative $0.7 million. We have funded our operations and financing activities primarily through sale of preferred stock.
Current wording
Our principal sources of liquidity are cash and cash equivalents. As of September 30, 2024, we had cash and cash equivalents of $0.2 million as compared to $0.7 million on December 31, 2023. On September 30, 2024, we had no borrowings outstanding and working capital of negative $0.8 million. We have funded our operations and financing activities primarily through sale of preferred stock.
Previous wording
***Cash Flows from Operating Activities.***Cash used from operating activities of $2.9 million during the six months ended June 30, 2024 reflected our net loss of $3.7 million, adjusted for non-cash expenses, consisting primarily of $426 thousand of stock-based compensation expense, $215 thousand in depreciation and amortization expense, and $2.2 million in vendor forgiveness, net of asset transfers. Uses of cash included a decrease in accounts payable of $3.1 million. Sources of cash included primarily a decrease of accounts receivable of $731 thousand, inventories of $404 thousand, and accrued expenses of $16 thousand.
Current wording
***Cash Flows from Operating Activities.***Cash used from operating activities of $3.8 million during the nine months ended September 30, 2024 reflected our net loss of $4.4 million, adjusted for non-cash expenses, consisting primarily of $432 thousand of stock-based compensation expense, $290 thousand in depreciation and amortization expense, and $2.2 million in vendor forgiveness, net of asset transfers. Uses of cash included a decrease in accounts payable of $3.1 million and accrued expenses of $394 thousand. Sources of cash included primarily a decrease of accounts receivable of $731 thousand and inventories of $404 thousand.
Previous wording
Cash provided by operating activities of $2.5 million during the six months ended June 30, 2023 reflected our net loss of $9.7 million, adjusted for non-cash expenses, consisting primarily of $0.2 million of stock-based compensation expense and $0.3 million in depreciation and amortization expense. Uses of cash included an increase in accrued expenses of $2.3 million. Sources of cash included primarily a decrease of accounts receivable of $0.8 million, inventories of $6.9 million, increase in accounts payable of $5.9 million, increase in prepaid expenses of $0.1 million, and increase in deferred revenue of $0.1 million.
Current wording
Cash provided by operating activities of $3.7 million during the nine months ended September 30, 2023 reflected our net loss of $16.5 million, adjusted for non-cash expenses, consisting primarily of $0.3 million of stock-based compensation expense and $0.4 million in depreciation and amortization expense. Uses of cash includeda decrease in accounts receivable of $0.1 million and accrued expenses of $3.0 million. Sources of cash included primarily a decrease of inventories of $14.9 million, increase in accounts payable of $7.4 million, increase in prepaid expenses of $0.2 million, and increase in deferred revenue of $0.2 million.
Previous wording
***Cash Flows from Investing Activities.***During the six months ended June 30, 2024, the Company had no cash flows generated or used by investing activities.
Current wording
***Cash Flows from Investing Activities.***During the nine months ended September 30, 2024, the Company had no cash flows generated or used by investing activities.
Previous wording
During the six months ended June 30, 2023, $162 thousand was used to purchase equipment and $220 thousand was used for certification costs.
Current wording
During the nine months ended September 30, 2023, $162 thousand was used to purchase equipment and $220 thousand was used for certification costs.
Previous wording
Cash Flows from Financing Activities. Cash provided from financing activities during the six months ended June 30, 2024 consisted of proceeds from issuance of preferred stock of $2.8 million.
Current wording
Cash Flows from Financing Activities. Cash provided from financing activities during the nine months ended September 30, 2024 consisted of proceeds from issuance of preferred stock of $2.8 million and issuance of common stock of $0.5 million.
Previous wording
Cash used in financing activities during the six months ended June 30, 2023 consisted of repayment of $2.3 million on the borrowings under our SVB line-of-credit.
Current wording
Cash used in financing activities during the nine months ended September 30, 2023 consisted of repayment of $3.9 million on the borrowings under our SVB line-of-credit.
Previous wording
At June 30, 2024, we have Federal and state net operating loss carry forwards of approximately $79.2 million and $47.9 million, respectively, available to reduce future taxable income. A valuation allowance has been established for the full amount of deferred income tax assets as management has concluded that it is more-likely than-not that the benefits from such assets will not realize the benefits of our deferred tax assets. As a result, as of June 30, 2024 and December 31, 2023, we recorded a full valuation allowance against our net deferred tax assets.
Current wording
At September 30, 2024, we have Federal and state net operating loss carry forwards of approximately $79.4 million and $48.0 million, respectively, available to reduce future taxable income. A valuation allowance has been established for the full amount of deferred income tax assets as management has concluded that it is more-likely than-not that the benefits from such assets will not realize the benefits of our deferred tax assets. As a result, as of September 30, 2024 and December 31, 2023, we recorded a full valuation allowance against our net deferred tax assets.
Previous wording
During the six months ended June 30, 2024, except as otherwise disclosed in this Form 10-Q, there were no material changes to our capital commitments and contractual obligations from those disclosed in our Form 10-K for the year ended December 31, 2023.
Current wording
During the nine months ended September 30, 2024, except as otherwise disclosed in this Form 10-Q, there were no material changes to our capital commitments and contractual obligations from those disclosed in our Form 10-K for the year ended December 31, 2023.