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Emerson Radio Corporation (MSN-1.85%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing an increase in net product sales to $3.9 million from $2.6 million in the same quarter the previous year. The increase is attributed to higher sales of newly introduced houseware products.
Licensing revenue increased to $111,000 from $23,000 in the previous year, driven by a licensee exceeding annual guaranteed minimum royalties and revenue from a new licensee.
Cost of sales for the quarter was $3.5 million, up from $2.1 million in the previous year. The increase is due to higher net product sales and increased carrying costs of inventory.
Selling, general, and administrative expenses remained at approximately $1.2 million, but the percentage of net revenues decreased to 30.6% from 45.8% due to increased revenues.
The company reported an operating loss of $733,000 for the quarter, compared to a loss of $724,000 in the previous year.
Interest income, net, decreased to $206,000 from $289,000 due to lower levels of cash invested in short-term investments.
Net loss for the quarter was $527,000, compared to $421,000 in the previous year. The company maintains a 100% valuation allowance against deferred tax assets.
Cash and cash equivalents decreased significantly to $0.7 million from $19.9 million as of March 31, 2024, primarily due to an increase in short-term deposits and the net loss during the period.
The filing also discusses a legal proceeding where Emerson Radio Corporation was awarded a judgment of approximately $10.4 million in a trademark infringement lawsuit, though collection of the judgment remains uncertain.
The company does not have any off-balance sheet arrangements and continues to monitor trade policies and tariffs that may impact its operations and costs.
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 February 14, 2025. To report an error, please email earnings@qz.com.