MOVING iMAGE TECHNOLOGIES INC.

MOVING iMAGE TECHNOLOGIES INC. Annual Report Summary
(Your quick guide to their 2025 performance and what it means for investors)

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Business Performance & Financial Health

• Sales are growing: Total revenue hit $14 million in 2025, up 17% from $12 million in 2024.
• Losses are shrinking: Lost $2.3 million in 2025 vs. $3.1 million in 2024—a 26% improvement. In 2024, this meant $0.13 lost per share (real money vanishing from each stock you own).
• Cash flow looks stable: MITQ collects 90% of payments upfront and claims it has enough cash to keep operating despite losses. They’ve cut salaries, paused non-essential spending, and renegotiated contracts to stretch their budget.
• Inflation strategy: They’ve historically raised prices or trimmed costs to offset rising expenses—and plan to keep doing this.
• Stock options tweaked: The board lowered stock option prices for directors (from $1.10 to $0.65/share) to retain talent. This cost $11,000—a minor hit compared to overall losses.

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Leadership & Team Stability

• Key player: VP of Technical Sales & Support, Mr. Tees, has 30+ years in cinema tech, including managing installations for 1,000+ screens at Regal. His expertise is critical as MITQ expands laser projector sales overseas.
• CEO’s big stake: CEO Mr. Rafnson owns 36% of the company through his investment firm. His wealth is tied directly to the stock price—a strong alignment with shareholders.
• Governance note: Rafnson serves as both CEO and Chairman of the board. While this dual role could weaken oversight, the company argues his industry expertise justifies it.
• Transparency plus: The audit committee includes a designated “financial expert” (John C. Stiska) to ensure accurate reporting.
• Insider ownership: Executives and directors hold meaningful stakes, including stock options that vest soon. For example, board members hold 50,000 vested stock options each (worth ~$32,500 at today’s $0.65/share price).

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Biggest Risks to Watch

• 3D decline: MITQ’s laser projectors rely on 3D’s popularity overseas. If that fades, sales could drop.
• Customer concentration: Top 3 customers make up 39% of sales—losing even one (like CustomerOne at 18%) would hurt.
• Supplier dependency: 65% of materials come from VendorOne. Delays or price hikes here could stall production.
• Streaming & labor shortages: These continue to pressure the cinema industry’s recovery.
• Project delays: Revenue depends on theater/stadium construction, which slows in winter and faces permit/funding hurdles.

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Future Plans

MITQ is betting on high-margin products like ADA-compliant systems and Direct View LED screens (which keep more profit after costs). They’ll also:

• Expand sales teams to target new customers and upsell existing ones.
• Boost marketing to build brand recognition.
• Cut operating costs further to fight inflation.
• Diversify into industries beyond theaters/stadiums to reduce seasonal risks.

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Key Takeaways for Investors

The Good:

• Sales are up 17%, losses are shrinking, and leadership has skin in the game (CEO owns 36%!).
• New high-margin products like LED screens could boost profits.
• Aggressive cost-cutting shows they’re serious about survival.

The Risks:

• Ultra-risky stock at $0.65/share—shareholders lost $0.13 per share in 2024 alone.
• Heavy reliance on a few customers and one supplier.
• Streaming and construction delays remain major threats.

Bottom Line:
MITQ is a high-risk, high-reward play. The company is growing and improving, but it’s still losing money, and external factors (like Hollywood’s fight against streaming) could derail progress. Only consider this if you’re comfortable with volatility and have a long-term horizon.

Keep an eye on winter project timelines and overseas 3D trends—they’ll be critical in 2026. 😊