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FI

FiEE, Inc. (FIEE)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 marked the first quarter of SaaS revenue post-pivot: net sales were $44,993, with gross margin 2.4%; diluted EPS improved to $(0.13) from $(0.16) YoY .
  • Early traction: 245 SaaS customers onboarded by June 30 and prepaid subscription fees of $1.5 million; contract liabilities stood at $1,468,346, supporting near-term revenue recognition .
  • Losses narrowed materially on disciplined cost controls: H1 operating loss fell ~73% YoY to $(1.01)M; net cash from operations turned positive at $171,955 in H1 .
  • Liquidity improved, but risk remains: cash rose to $4.5M at quarter-end, while management flagged substantial doubt about going concern absent further financing and disclosed a material weakness in ICFR .
  • No formal numerical guidance or earnings call transcript was available; near-term catalysts are customer additions, conversion of contract liabilities to revenue, and execution on product/technology acquisitions .

What Went Well and What Went Wrong

What Went Well

  • Strategic pivot showed initial commercial proof points: “Prepaid subscription fees received from customers for our SaaS service were $1.5 million… We anticipate adding additional customers in the near future with increasingly sophisticated product offerings.” — CEO comment .
  • Significant improvement in profitability metrics: H1 operating loss reduced ~73% (to $(1.01)M) and net loss reduced ~73% YoY (to $(1.01)M), driven by lower OpEx and the transition away from legacy hardware .
  • Liquidity strengthened: cash increased to $4.5M by quarter-end (from $30k at YE 2024), aided by equity issuance and a $300k convertible note, providing runway for the SaaS launch .

What Went Wrong

  • Scale remains very small and margins are thin at launch: Q2 revenue was ~$45k and gross margin was 2.4% as upfront market-entry and ramp costs weighed on cost of sales .
  • Going concern risk persists: management explicitly disclosed substantial doubt about the company’s ability to continue as a going concern without additional capital .
  • Internal control weakness: a material weakness in ICFR was identified due to insufficient accounting staffing during restructuring and launch, with remediation plans underway .

Financial Results

Quarter-over-quarter and YoY comparison

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD)$0 $125 $44,993
Diluted EPS ($)$(0.16) —$(0.13)
Gross Margin (%)——2.4%
Operating Loss ($USD)$(488,486) —$(636,911)

Notes: Q1 2025 EPS and margin not disclosed in the 10-Q; Q2 2024 had no revenue, rendering margin not meaningful .

First Half (H1) comparison

MetricH1 2024H1 2025
Revenue ($USD)$639,893 $45,118
Gross Profit ($USD)$207,259 $438
Gross Margin (%)32.4% 1.0%
Operating Expenses ($USD)$3,965,424 $1,008,470
Operating Loss ($USD)$(3,758,165) $(1,008,032)
Net Loss ($USD)$(3,746,867) $(1,013,590)
Diluted EPS ($)$(1.27) $(0.20)
Cash & Equivalents (period end, $USD)$30,162 (Dec 31, 2024) $4,504,079 (Jun 30, 2025)
Net Cash from Operations ($USD)$(2,878,506) $171,955

Product revenue mix (quarter)

ProductQ2 2024 ($USD)Q2 2025 ($USD)
Cable modems & gateways$0 $0
Other networking products$0 $0
SaaS – MCN digital services$0 $44,993

KPIs

KPIQ1 2025Q2 2025
New SaaS customers onboarded1 245
Prepaid SaaS subscription fees ($USD)—$1,500,000
Contract liabilities ($USD)—$1,468,346
Weighted avg. diluted shares (quarter)—5,090,949

Guidance Changes

No formal numerical guidance (revenue, margins, OpEx, tax, etc.) was provided in the Q2 2025 8‑K or 10‑Q. Management commentary was directional only.

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY/Q3 2025None None Maintained (no guidance)
MarginsFY/Q3 2025None None Maintained (no guidance)
OpExFY/Q3 2025None None Maintained (no guidance)
Tax rateFY/Q3 2025None None Maintained (no guidance)
Segment guidanceFY/Q3 2025N/A (single segment) N/A N/A
DividendsFY/Q3 2025None disclosed None disclosed Maintained

Earnings Call Themes & Trends

No Q2 earnings call transcript was available; themes below reference 8‑K/10‑Q/press materials.

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q2 2025)Trend
AI/tech initiativesPlanning blockchain integration; targeting AI/IoT acquisitions Acquisition of proprietary software/patents; internal-use software development Execution beginning on tech stack acquisitions
Product performanceLegacy hardware exited; minimal 2024 revenue SaaS launched; first-quarter SaaS revenue $44,993 Early traction from zero base
Regional trendsOperations historically U.S.; expansion in HK All revenue derived from Hong Kong post expansion Geographic shift to HK
Supply chain/tariffsLegacy hardware exposed previously Service model reduces hardware exposure; cost of sales includes software/licensing Reduced hardware/tariff sensitivity
Regulatory/legalRoutine proceedings; no material cases No material legal proceedings Stable
R&D executionVendor partnership to build “All-in-One Media Operations SaaS Platform” R&D focused on software subscriptions/support; $47k H1 R&D Lean R&D spend, focused scope
Internal controlsN/AMaterial weakness disclosed; remediation plan initiated Improving, but risk persists

Management Commentary

  • “Prepaid subscription fees received from customers for our SaaS service were $1.5 million… We anticipate adding additional customers in the near future with increasingly sophisticated product offerings.” — CEO comment .
  • “We have recently acquired advanced technologies including product authentication… high-efficiency file transfer systems and KYC solutions… powering our SaaS products.” — CEO comment .

Q&A Highlights

No earnings call transcript was available for Q2 2025; no Q&A themes or clarifications to report [ListDocuments earnings-call-transcript returned none].

Estimates Context

  • S&P Global consensus estimates for Q2 2025 EPS, revenue, and target price were unavailable; coverage appears limited for FIEE. Values retrieved from S&P Global.*
  • With no consensus baseline, post-pivot results should be interpreted as proof-of-concept rather than a beat/miss dynamic .
MetricQ2 2025FY 2025
Primary EPS Consensus MeanUnavailable*Unavailable*
Revenue Consensus MeanUnavailable*Unavailable*
Target Price Consensus MeanUnavailable*Unavailable*

*Values retrieved from S&P Global.

Key Takeaways for Investors

  • The pivot to SaaS is real but nascent: first SaaS revenue arrived in Q2 ($44,993) with 245 customers and $1.5M prepaid fees; watch conversion of contract liabilities into recognized revenue .
  • Profitability improved meaningfully via cost controls; sustaining this while scaling revenue is the next test (H1 OpEx down ~75%, operating loss down ~73%) .
  • Liquidity has improved (cash $4.5M), but management’s going concern disclosure underscores dependency on external financing and execution of the revenue ramp .
  • Internal control remediation is in progress; successful hiring and process enhancement will be important for credible future reporting .
  • Technology build-out and IP acquisition (software/patents) support the product roadmap; monitor R&D cadence and any incremental capex/opex from platform expansion .
  • No formal guidance provided; near-term stock narrative likely driven by customer adds, revenue recognition from prepaid contracts, and updates on acquisitions/partnerships .
  • Equity facilities and prior issuances provide optionality (e.g., Helena $15M purchase agreement), but dilution risk requires careful sizing vs. growth milestones .