Interlink Electronics, Inc. reported a decline in financial performance for the third quarter and the first nine months of 2024 compared to the same periods in 2023. For the three months ended September 30, 2024, the company generated revenue of $2,671,000, a decrease of 13.1% from $3,075,000 in Q3 2023. The gross profit also fell to $1,105,000, representing 41.4% of revenue, down from 47.4% in the prior year. This decline in gross profit was attributed to lower sales in the medical and industrial markets, despite a slight increase in custom product sales within the consumer market.

Operating expenses for Q3 2024 increased to $1,581,000 from $1,551,000 in Q3 2023, leading to a loss from operations of $476,000, compared to a loss of $92,000 in the same quarter of the previous year. The net loss for the quarter was $523,000, worsening from a loss of $125,000 in Q3 2023. The loss applicable to common stockholders also increased to $623,000 from $225,000 year-over-year.

For the nine months ended September 30, 2024, revenue totaled $8,693,000, down 16.4% from $10,402,000 in the same period of 2023. Gross profit for this period decreased to $3,663,000, or 42.1% of revenue, compared to 49.1% in the prior year. The net loss for the nine months was $1,571,000, a significant decline from a net income of $65,000 in the same period of 2023.

The company’s total assets decreased to $14,121,000 as of September 30, 2024, from $15,062,000 at the end of 2023, while total liabilities increased to $2,655,000 from $2,034,000. Stockholders’ equity also fell to $11,466,000 from $13,028,000.

Interlink Electronics made a strategic acquisition of Calman Technology Limited in March 2023, which contributed to increased amortization expenses in 2024. The company reported $571,000 in amortization expenses for the nine months ended September 30, 2024, compared to $142,000 in the same period of 2023.

Cash and cash equivalents decreased to $3,810,000 as of September 30, 2024, from $4,304,000 at the end of 2023. The company utilized $144,000 in operating activities during the nine months ended September 30, 2024, compared to a cash inflow of $155,000 in the same period of 2023.

Overall, Interlink Electronics faced challenges in revenue generation and profitability, influenced by market conditions and the integration of its recent acquisition.