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zSpace Inc. (ZSPC+5.93%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing details a decrease in total revenue to $38.1 million from $43.9 million in the previous year. This decline is attributed to constraints in available working capital impacting hardware purchases.
Hardware revenue decreased by 20% to $22.0 million, while software revenue slightly declined by 3% to $12.9 million. Services revenue remained relatively stable at $3.3 million.
Cost of goods sold decreased by 17% to $22.5 million, primarily due to a reduction in the volume of Inspire laptops shipped. The company reported a gross margin of 41%, up from 38% in the previous year.
Operating expenses increased by 30% to $33.2 million, driven by a significant rise in stock-based compensation expenses related to employee stock option grants.
The company reported a net loss of $20.8 million, compared to a net loss of $13.0 million in the previous year. This increase in net loss is primarily due to higher operating expenses.
zSpace Inc. ended the year with cash and cash equivalents of $4.9 million. The company raised $10.5 million through various financing activities, including proceeds from its initial public offering.
The filing highlights the company's liquidity risk and substantial doubt about its ability to continue as a going concern, citing the need for additional financing and refinancing of existing debt facilities.
zSpace's business strategy includes a focus on scaling within the United States education market, expanding internationally, and pursuing software acquisitions to enhance its platform offerings.
The company continues to face challenges related to supply chain disruptions, retention of key employees, and maintaining strategic partnerships with original equipment manufacturers for its hardware products.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the zSpace Inc. annual 10-K report dated March 28, 2025. To report an error, please email earnings@qz.com.