Strategic Sale of Singing Machine
The company strategically sold its Singing Machine business, generating $4.5 million in total consideration and reducing liabilities by approximately $4 million, strengthening the balance sheet and reducing ongoing cash burn.
Significant Growth in SemiCab Business
SemiCab reported a breakthrough quarter with 5 new contracts and 4 existing clients expanding their geographic lanes and volume by over 100% to 200%. The fleet expanded from 140 to 450 trucks, with an annualized revenue run rate increase of almost 300% to approximately $7 million.
Improvement in Gross Profit and Margin
Gross profit for the quarter increased to $954,000 from $324,000, with gross margin improving to 35% from 13% due in part to onetime adjustments.
Reduction in Net Loss
Net loss decreased significantly to $809,000 from $6.2 million in the comparable period last year, primarily due to the sale of Singing Machine and reduced general and administrative expenses.