Company: MITQ
Filing Date: 2025-09-29
Form Type: 10-K/A
Source: 0001437749-25-029978
Chunk: 40

Company: MOVING iMAGE TECHNOLOGIES INC.
Filing Date: 2025-09-29
Form: 10-K/A
Chunk 40
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 changes in product mixes, changes in our purchase price of components and assembly and test service costs and inventory write downs, if any. Our goal is to strive to maintain gross profits for products that may have a declining average selling price by continuing to focus on increased sales volume and looking to reduce operating costs. Decreases in average selling prices are primarily driven by competition and by reduced demand for products that face potential or actual technological obsolescence. We also focus on managing our inventory to reduce our overall exposure to price erosion. In addition, we seek to introduce new products and services with higher gross margins to offset the potential effect of price erosion on other lines of products. For example, we have recently produced and began marketing a new system which combines full compliance with the Americans with Disabilities Act with a multi-language capability — we expect this system will have higher margins than a substantial number of existing products we offer. In addition, we expect our offerings of Direct View LED screens to also carry significantly higher margins.

Fluctuations in Revenues and Earnings. Both the sales cycle and the contract fulfillment cycle are dependent on a number of factors from our customers that are not in our control. Accordingly, backlog, the recognition of backlog into revenue and related earnings may fluctuate from quarter to quarter depending on our customers’ particular requirements, which can sometimes change between the initial signing of a contract to its ultimate fulfillment.

Net sales

The principal factors that have affected or could affect our net sales from period to period are:

| ● | The condition of the economy in general and of the cinema and/or cinema equipment industry in particular, |

| ● | Our customers’ adjustments in their order levels, |

| ● | Seasonality in our business, specifically our second fiscal quarter which is traditionally weaker, |

| ● | Changes in our pricing policies or the pricing policies of our competitors or suppliers, |

| ● | The addition or termination of key supplier relationships, |

| ● | The rate of introduction and acceptance by our customers of new products and services, |

| ● | Our ability to compete effectively with our current and future competitors, |

| ● | Our ability to enter into and renew key relationships with our customers and vendors, |

| ● | Changes in foreign currency exchange rates, |

| ● | A major disruption of our information technology infrastructure, |

| ● | Unforeseen catastrophic events such as the COVID‑19 pandemic, armed conflict, terrorism, fires, typhoons and earthquakes, and |

| ● | Any other disruptions, such as labor shortages, unplanned maintenance or