Executive Summary

Q3 2025 revenue grew 12% year over year to $4.50M, while SG&A fell 72.7% YoY to $2.50M; operating loss improved to $(1.12)M and net loss narrowed to $(1.02)M ($0.59 per diluted share) .
Results were above Wall Street consensus: revenue beat by roughly ~$0.85M and EPS beat by ~$2.60 versus S&P Global consensus (thin coverage with one estimate)*.
Liquidity/balance sheet visibly strengthened: stockholders’ equity rose to $7.52M as of 9/30/25 versus a $(9.01)M deficit at 12/31/24; working capital deficit improved to $(0.12)M .
Strategic catalysts: regained Nasdaq compliance (Minimum Bid Price and Equity requirements) notified October 17, 2025 , and announced EVO-CORE in‑car solution with voice commands, license plate assistance, and real‑time transcription, expected to ship January 2026 under subscription .

What Went Well and What Went Wrong

SG&A executed down 72.7% YoY to $2.5M, demonstrating operating leverage and cost discipline .
Operating loss improved by $6.26M YoY (to $(1.12)M), driven by higher revenue mix and materially lower overhead; CEO: “substantial decreases in overhead expenses, reduced headcount, and focus on our subscription based sales model…successful restructuring of our law enforcement products sales organization” .
Nasdaq compliance restored; management noted equity well above $2.5M threshold and receipt of Nasdaq notifications of regained compliance on October 17, 2025 .

Sequential revenue declined from Q2 2025 ($5.62M) to Q3 2025 ($4.50M), reflecting tougher law enforcement budget dynamics and competitive market pressures .
Non‑operating gains declined YoY to $0.16M versus $1.91M in Q3 2024, removing a prior tailwind to bottom line .
The market for law enforcement products “remains challenging and highly competitive,” with state and local budget headwinds cited by management .

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($USD)	$4.10M	$5.616M	$4.50M
SG&A ($USD)	$9.10M	$3.462M	$2.50M
Operating Income (Loss) ($USD)	n/a	$(4.095)M	$(1.122)M
Other Income (Expense), net ($USD)	$1.912M	$(0.394)M	$0.158M
Net Income (Loss) attributable to common ($USD)	$(3.471)M	$(4.545)M	$(1.022)M
Diluted EPS ($USD)	$1,817.02	$(3.21)	$0.59

Notes:

Q3 2024 operating loss not disclosed in current documents; press release only provides YoY improvement magnitude .

Metric	12/31/2024	6/30/2025	9/30/2025
Working Capital ($USD)	$(19.378)M	$0.120M	$(0.115)M
Stockholders’ Equity ($USD)	$(9.013)M	$8.152M	$7.517M

Metric	Consensus (Q3 2025)	Actual (Q3 2025)	Coverage
Revenue ($USD)	$3,647,000*	$4,500,000	1 estimate*
Primary EPS ($USD)	$(2.01)*	$0.59	1 estimate*

Values marked with * were retrieved from S&P Global and reflect limited analyst coverage.

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q4 2025	Not provided	Not provided	Maintained (no formal guidance)
Margins	FY/Q4 2025	Not provided	Not provided	Maintained (no formal guidance)
Entertainment segment	FY 2025-2026	Qualitative: “will continue to improve its revenues and operating profits”	Qualitative maintained; Country Stampede scheduled June 25‑27, 2026	Maintained qualitative outlook
Product launches	2026	n/a	EVO‑CORE to ship Jan 2026; subscription model	New product timing announced

Management provided qualitative commentary but no numeric guidance ranges for revenue/margins/OpEx/tax.

Topic	Previous Mentions (Q1 2025)	Previous Mentions (Q2 2025)	Current Period (Q3 2025)	Trend
Cost reduction / SG&A discipline	“Substantial decreases in overhead expenses, reduced headcount”	Program to reduce costs; SG&A drivers detailed in 10‑Q	SG&A down 72.7% YoY to $2.5M	Improving
Subscription model focus (Video Solutions)	“Focus on subscription based sales model”	Deferred revenue ~$8.9M supporting recurring revenue 2025‑2028	Continued emphasis; leverage cited in Q3 results	Building recurring mix
Law enforcement budget/macro headwinds	Challenging environment for agency budgets	Going concern section cites competitive and economic uncertainty	“Challenging and highly competitive”; budgets remain pressured	Persistent headwind
Nasdaq listing compliance	Working to regain compliance	Panel conditions, compliance plan	Notified of regained compliance 10/17/25	Resolved (monitoring)
Product innovation	n/a in Q1 PR	n/a	EVO‑CORE: voice commands, LPA, real‑time transcription; AWS GovCloud security	Positive catalyst
Segment outlook – Entertainment	Anticipated revenue/profit improvement near festival timing	Segment disclosures and operations	Management expects continued improvement; 2026 festival date	Improving

“Our third quarter financial results clearly reflect the operating leverage inherent in our business model… focus on our subscription based sales model… successful restructuring of our law enforcement products sales organization.” – Stanton E. Ross, CEO .
“We completed a $14.3 million public equity offering earlier in 2025… Nasdaq notified the Company that it had regained full compliance with the Minimum Bid Price Requirement and Stockholders’ Equity Requirement.” .
“We anticipate our entertainment segment will continue to improve its revenues and operating profits… prepare for our June 25‑27, 2026, Country Stampede Music Festival.” .
On EVO‑CORE: “The advanced features… Handsfree Voice Commands, License Plate Assistance, and Real‑time Transcription, will be highly embraced… invaluable for law enforcement.” – Stan Ross, CEO .

No formal Q3 2025 earnings call transcript was provided in the company filings or press materials; management commentary above reflects press releases and filings .

Coverage is thin (one estimate), but the company materially beat revenue and EPS versus S&P Global consensus for Q3 2025: revenue $4.50M vs $3.65M*, EPS $0.59 vs $(2.01)*. This may necessitate upward revisions to near‑term profitability expectations given SG&A reset and operating leverage, though sequential revenue was lower than Q2.
Values marked with * were retrieved from S&P Global (Capital IQ). Limited estimate depth implies higher forecast volatility and potential for outsized surprises.*

Cost structure inflection: SG&A down ~73% YoY, operating loss narrowed materially, suggesting greater ability to translate incremental revenue into earnings as budgets normalize .
Mixed top line cadence: strong YoY but weaker QoQ; watch order flow and subscription growth to gauge sustainability .
Balance sheet and listing de‑risked: equity positive and Nasdaq compliance restored; reduces structural overhangs .
Product pipeline catalyst: EVO‑CORE Jan 2026 launch under subscription could bolster recurring revenue and competitive positioning (voice commands/LPA/transcription) .
Entertainment segment: management expects continued improvement; the 2026 Country Stampede should provide event‑driven revenue and margin contribution .
Near‑term trading: potential positive reaction to consensus beat and compliance restoration; monitor liquidity disclosures and any additional capital actions in filings .
Medium‑term thesis: execution on subscription model, law enforcement demand recovery, and entertainment profitability could drive sustained margin expansion; competitive intensity and public sector budgets remain key risks .