Minim, Inc. Reports Significant Financial Challenges, Decline in Revenue and Operating Loss in Latest Quarter

Minim, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a drastic decline in revenue, with net sales for the three months ending at $0, a 100% decrease from $6.7 million in the same period of 2023. For the nine months, net sales fell to $639,893, down 97.4% from $24.6 million in the prior year. The primary source of revenue in 2023, sales of Motorola-branded cable modems and gateways, were absent in 2024, contributing to this decline.

Despite the drop in revenue, Minim reported a reduction in operating expenses, which totaled $625,067 for the third quarter, down 83.2% from $3.7 million in 2023. For the nine months, operating expenses decreased to $4.6 million, a reduction of 71.7% compared to $16.2 million in the previous year. This led to an operating loss of $(625,067) for the third quarter, an improvement of $6.1 million from the $(6.7 million) loss in the same quarter of 2023. The net loss for the third quarter was $(625,067), compared to $(6.8 million) in the prior year, while the nine-month net loss improved to $(4.4 million) from $(16.5 million).

The company’s cash and cash equivalents significantly decreased to $191,724 as of September 30, 2024, down from $709,322 at the end of 2023. Total current assets also fell sharply to $215,831 from $11.4 million. Total liabilities increased, with current liabilities reaching $992,050, leading to a total stockholders’ equity deficit of $(558,854).

Minim's strategic developments included the termination of a merger agreement with e2Companies LLC in July 2024, which did not close by the end date. The company also faced challenges with its Nasdaq listing, as trading was suspended due to non-compliance with equity requirements. The company has since appealed this decision and is seeking to lift the suspension.

In terms of financing, Minim raised $2.8 million through the issuance of preferred stock and $465,482 from common stock during the nine months ended September 30, 2024. However, substantial doubt exists regarding the company's ability to continue as a going concern, necessitating additional liquidity to sustain operations beyond the next twelve months.