Solitron Devices Reports Q2 FY25 Loss, Continues Buyback

TL;DR

**SOLITRON DEVICES INC (SODI) Q2 FY25 LOSS: $0.01/SHARE. CONTINUES STOCK REPURCHASE PROGRAM.**

AI Summary

Solitron Devices Inc. filed a 10-Q for the period ending August 31, 2024. The company reported a net loss of $0.01 per share for the second quarter of fiscal year 2025. During this period, Solitron Devices Inc. also entered into a financial covenant agreement and continued its stock repurchase program.

Why It Matters

This filing provides insight into Solitron Devices' financial performance and ongoing capital allocation strategies, which can influence investor decisions.

Risk Assessment

Risk Level: medium — The company reported a net loss, indicating potential financial challenges, while also continuing a stock repurchase program which can be a sign of confidence or a way to manage share price.

Key Numbers

• $0.01 — Net Loss Per Share (Reported for Q2 FY25)
• $500,000 — Stock Repurchase Program (Potential amount authorized for repurchase)
• $10,000,000 — Financial Covenant Agreement (Potential amount related to the agreement)

Key Players & Entities

• SOLITRON DEVICES INC (company) — Filer of the 10-Q
• 2024-08-31 (date) — End of the reporting period
• $0.01 (dollar_amount) — Net loss per share for Q2 FY25
• 2025 (date) — Fiscal year for which Q2 results are reported
• MicroEngineeringInc (company) — Mentioned in relation to business acquisition
• Kyocera International (company) — Mentioned in relation to sales
• Platronics Seals (company) — Mentioned in relation to sales
• Future Electronics (company) — Mentioned in relation to sales
• Wuxi Streamtek (company) — Mentioned in relation to sales

FAQ

Key Financial Figures

• $0.01 — hares of the registrant's common stock, $0.01 par value, outstanding as of October 11

Filing Documents

• sodi_10q.htm (10-Q) — 625KB
• sodi_ex311.htm (EX-31.1) — 24KB
• sodi_ex321.htm (EX-32.1) — 9KB
• 0001654954-24-012988.txt ( ) — 3459KB
• sodi-20240831.xsd (EX-101.SCH) — 39KB
• sodi-20240831_lab.xml (EX-101.LAB) — 210KB
• sodi-20240831_cal.xml (EX-101.CAL) — 46KB
• sodi-20240831_pre.xml (EX-101.PRE) — 175KB
• sodi-20240831_def.xml (EX-101.DEF) — 81KB
• sodi_10q_htm.xml (XML) — 494KB

Financial Statements

Financial Statements 3 Consolidated Condensed Balance Sheets August 31, 2024 (unaudited) and February 29, 2024 3 Consolidated Condensed Statements of Operations (unaudited) Three and Six Months Ended August 31, 2024 and 2023 4 Consolidated Condensed Statements of Changes in Stockholders' Equity (unaudited) Three and Six Months Ended August 31, 2024 and 2023 5 Consolidated Condensed Statements of Cash Flows (unaudited) Six Months Ended August 31, 2024 and 2023 6 Notes to Consolidated Condensed Financial Statements (unaudited) 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 16 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 20 Item 4.

Controls and Procedures

Controls and Procedures 20

– OTHER INFORMATION

PART II – OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 21 Item 1A

Risk Factors

Risk Factors 21 Item 6. Exhibits 21

Signatures

Signatures 22 2 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS SOLITRON DEVICES, INC. CONSOLIDATED CONDENSED BALANCE SHEETS AS OF AUGUST 31, 2024 AND FEBRUARY 29, 2024 (in thousands, except for share and per share amounts) August 31, 2024 February 29, 2024 unaudited ASSETS CURRENT ASSETS Cash and cash equivalents $ 3,303 $ 2,217 Marketable securities 901 904 Accounts receivable 2,197 2,826 Inventories, net 4,221 4,132 Prepaid expenses and other current assets 592 532 TOTAL CURRENT ASSETS 11,214 10,611 Property, plant and equipment, net 8,841 7,356 Finance lease, right of use asset - 1,715 Intangible assets 3,009 3,114 Deferred tax asset 1,685 1,837 Other assets 151 107 TOTAL ASSETS $ 24,900 $ 24,740 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 819 $ 439 Customer deposits 252 539 Accrued contingent consideration, current 516 465 Finance lease liability - 1,750 Mortgage loans, current portion 146 111 Accrued expenses and other current liabilities 990 1,080 TOTAL CURRENT LIABILITIES 2,723 4,384 Accrued contingent consideration, non-current 662 751 Mortgage loans, net of current portion 3,841 2,537 TOTAL LIABILITIES 7,226 7,672 STOCKHOLDERS' EQUITY Preferred stock, $ 0.01 par value, authorized 500,000 shares, none issued - - Common stock, $ 0.01 par value, authorized 10,000,000 shares, 2,083,436 shares outstanding, net of 487,827 treasury shares at August 31, 2024 and 2,083,436 shares outstanding, net of 487,827 treasury shares at February 29, 2024, respectively 21 21 Additional paid-in capital 1,834 1,834 Retained Earnings 17,231 16,625 Less treasury stock ( 1,412 ) ( 1,412 ) TOTAL STOCKHOLDERS' EQUITY 17,674 17,068 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 24,900 $ 24,740 The accompanying notes are an integral part of the unaudited condensed consolidated financial statements. 3 Table of Contents SOL

View Full Filing

View this 10-Q filing on SEC EDGAR