Business
Energy Focus, Inc. Reports Third Quarter 2022 Financial Results
Conference Call to be Held Today at 11 a.m. ET --News Direct--Energy Focus, Inc. (NASDAQ:EFOI), a leader in sustainable, energy-efficient lighting and
About this update from Energy Focus, Inc.
[{"type":"text","content":"Conference Call to be Held Today at 11 a.m. ET\n--News Direct--Energy Focus, Inc. (NASDAQ:EFOI), a leader in sustainable, energy-efficient lighting and controls systems products for the commercial, military maritime and consumer markets, today announced financial results for its third quarter ended September 30, 2022.Third Quarter 2022 Financial Highlights:Net sales of $1.8 million decreased 35.8% compared to the third quarter of 2021, reflecting a $0.8 million, or 61.2%, decrease in military sales, as well as a decrease of $0.2 million, or 15.4%, in commercial sales. As compared to the second quarter of 2022, net sales increased by 19.2%, primarily reflecting a $313 thousand increase in commercial sales.Negative gross profit margin of (9.2)% was down from gross profit margins of 20.5% in the third quarter of 2021 and 7.4% in the second quarter of 2022. The year-over-year decrease was driven by lower sales, less favorable product mix and an unfavorable impact from the net change in inventory reserves and third quarter scrap write-off from the ongoing inventory reduction project which began in the second quarter of 2022. Sequentially, despite increased sales and positive impacts from the mix of products sold, the decrease in gross profit margin primarily relates to unfavorable changes in inventory reserves as well as the impact of the third quarter scrap write-off from the ongoing inventory reduction project.Loss from operations of $2.4 million increased 33.0% as compared to the third quarter of 2021 loss from operations of $1.8 million. Loss from operations increased slightly as compared to a loss from operations of $2.2 million in the second quarter of 2022.Net loss of $2.7 million, or $(0.29) per basic and diluted share of common stock, compared to a net loss of $1.1 million, or $(0.22) per basic and diluted share of common stock, in the third quarter of 2021. Sequentially, the net loss increased by $0.2 million compared to net loss of $2.5 million, or $(0.35) per basic and diluted share of common stock, in the second quarter of 2022.Cash of $41 thousand, included in total availability (as defined under “Non-GAAP Measures” below) of $210 thousand, each as of September 30, 2022, as compared to cash of $2.7 million and total availability of $4.4 million as of December 31, 2021. Unsecured promissory notes issued in September 2022...