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Emerson Radio Corporation (MSN-5.19%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in net product sales to $2.7 million from $2.4 million in the same quarter the previous year. The increase is attributed to the introduction of new houseware products.
Cost of sales for the quarter was $2.5 million, representing 90% of net revenues, compared to 84% in the same quarter of the previous year. The increase in cost ratio is due to higher carrying costs of inventory and changes in the product mix.
The company reported an operating loss of $1.1 million for the quarter, compared to a loss of $666,000 in the previous year.
Licensing revenue increased to $68,000 from $24,000, driven by new licensees and escalations in guaranteed minimum royalties.
Selling, general, and administrative expenses rose to $1.4 million from $1.1 million, primarily due to increased compensation costs and audit fees.
Net loss for the quarter was $881,000, compared to a net income of $2.6 million in the previous year. The prior year's income included a $3.1 million gain from a litigation settlement.
Cash used in operating activities was $2.9 million, while cash used in investing activities was $16.5 million, primarily due to purchases of short-term investments.
Emerson had a working capital of $23.9 million as of September 30, 2024. The company continues to focus on expanding its distribution channels and developing new products.
The filing also details the company's legal proceedings, including a favorable judgment in a trademark infringement lawsuit.
Emerson does not anticipate any material changes to its risk factors as outlined in its previous filings.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Emerson Radio Corporation quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.