Revenue (Q3 2024)

+25.2% increase; from $19.0M to $23.8M " "

**The surge in revenue is driven primarily by the acquisition of Manhattan Toy, which added $6M in net sales and boosted the “bibs, toys, and disposable products” category by 48.1%. " " " " ** Additionally, overall sales growth and increased retail partnerships helped overcome flat performance in other product lines.

Revenue (Q3 2025)

Decline from $23.8M to $23.3M " "

**Revenue fell due to lower online toy sales and the loss of a major retailer bid program, although partially offset by $3.8M in sales from the Baby Boom acquisition. " " " ** This reflects a shift in market conditions and competitive pressures compared to the prior period.

Cash Flow (Q3 2024)

Cash and cash equivalents decreased from $1.7M to $683K "

**The decline in cash holdings is attributable to higher dividend payments, increased operating expenses, and a slight inventory buildup, despite a modest improvement in net income. " " " " ** The reduction in borrowings from $12.7M to $10M also reflects strategic debt management during this period.

Cash Flow (Q3 2025)

Operating cash increased from $4.102M to $6.994M; Investing cash used jumped to –$17.014M "

**The improvement in operating cash flow was driven by better management of accounts payable and inventory, while the significant negative shift in investing activities was a direct result of a $16.355M payment for the Baby Boom acquisition. " ** Financing activities shifted positively to $10.244M mainly due to higher borrowings aimed at funding this acquisition.

Income Statement (Q3 2024)

Net sales up by 25.2%, gross profit increased by 42.8%, and net income rose by 26.3% " "

**The income improvements were largely due to the successful integration of Manhattan Toy, which not only raised net sales by contributing $6M but also improved gross profit with an extra $1.1M, despite a 49.8% increase in marketing and administrative expenses and a rise in interest expense. " " " **

Income Statement (Q3 2025)

Net sales dropped from $23.8M to $23.3M; gross profit fell to $6.1M (margin declined from 27% to 26.1%); net income declined to $893K " "

**The decrease in performance is attributed to lower online toy sales and the loss of a bid program, with integration costs (including $186K expenses) for Baby Boom adding pressure on margins, together with an increase in interest expense by $183K. " " " ** These factors combined to significantly impact net income compared to Q3 2024.

Balance Sheet (Q3 2024)

Cash fell from $1.7M to $683K; inventories slightly increased from $34.2M to $34.9M; debt reduced from $12.7M to $10M; equity increased from $49.2M to $51.2M " "

**The changes include a cash reduction due to dividend payments and rising expenses, while slight inventory gains and focused debt reduction (from $12.7M to $10M) contributed to a healthier equity base, appreciating from $49.2M to $51.2M. " " " ** These reflect ongoing strategic financial management and improved retained earnings from strong net income.

Balance Sheet (Q3 2025)

Cash increased from $829K to $1.1M; borrowings surged from $8.1M to $20.9M; inventory declined to $32.4M; goodwill increased from $7.926M to $13.255M " "

**The Baby Boom acquisition drove a substantial rise in borrowings (from $8.1M to $20.9M) and increased goodwill significantly, while better liquidity management led to higher cash reserves and tighter inventory control, with total assets and liabilities both moving upward. " " " " ** This indicates a strategic repositioning on the balance sheet relative to the previous period.