Executive Summary

Q2 revenue fell 25.2% year over year to $599k as legacy printer and automotive touch demand remained weak; loss from continuing operations widened to $2.0M ($0.12/sh) versus $1.7M ($0.11/sh) a year ago .
Sequentially, total revenue rose modestly ($599k vs $513k), driven by a rebound in NRE ($195k vs $16k), while license fees declined ($404k vs $497k); OpEx increased to $2.7M from $2.5M QoQ, and operating loss deepened ($2.11M vs $1.97M) .
Liquidity remains solid but trending down as the company invests through the transition: cash and A/R were $13.6M and working capital $12.1M at 6/30/25 (vs $15.7M and $14.1M at 3/31/25) .
Management reiterated the pivot to technology licensing and highlighted first‑mover execution in fully synthetic, data‑driven HMI (MultiSensing) while serving zForce legacy customers; no formal quantitative guidance was provided .
S&P Global consensus for Q2 2025 EPS, revenue, and EBITDA was unavailable, so no beat/miss assessment vs Street can be made (consensus unavailable via S&P Global)*.

What Went Well and What Went Wrong

NRE revenue stabilized YoY and rebounded QoQ ($195k in Q2 vs $187k in Q2’24 and $16k in Q1’25), reflecting delivery on customer projects and pipeline activity .
Management emphasized competitive positioning: “first mover in fully synthetic, data‑driven HMI solutions – where our execution speed will continue to outperform the competition,” and continued delivery to an announced commercial vehicle OEM in MultiSensing .
Balance sheet still provides runway to execute the transition, with cash and A/R of $13.6M and working capital of $12.1M at quarter‑end .

Legacy license revenue pressure persisted (license fees down 34.2% YoY to $404k) on weaker printer and passenger car touch demand; total revenue declined 25.2% YoY to $599k .
Operating expenses increased 5.3% YoY to $2.7M, driving a wider operating loss ($2.11M vs $1.79M YoY) and a larger loss from continuing operations ($2.0M vs $1.7M YoY) .
Cash used in operations rose to $1.7M (vs $1.2M in Q2’24), reflecting ongoing investment and transition, despite tailwinds from fewer component purchases post‑TSM phaseout .

Metric ($USD Thousands, except per-share)	Q2 2024	Q1 2025	Q2 2025
Revenues	$801	$513	$599
License Fees	$901	$497	$404
Non-Recurring Engineering (NRE)	$187	$16	$195
Cost of Revenues	$24	$9	$6
Gross Margin	$777	$504	$593
Operating Expenses	$2,566	$2,469	$2,703
Operating Loss	$(1,789)	$(1,965)	$(2,110)
Other Income, net	$123	$155	$126
Loss from Continuing Ops	$(1,677)	$(1,800)	$(1,984)
Basic & Diluted EPS (Continuing Ops)	$(0.11)	$(0.11)	$(0.12)
Net Loss	$(1,695)	$(1,733)	$(1,868)
Cash Used in Operations	$(1,200)	$(1,360)	$(1,700)

Segment/KPI breakdown

Revenue Mix ($USD Thousands)	Q2 2024	Q1 2025	Q2 2025
License Fees	$901	$497	$404
Non-Recurring Engineering	$187	$16	$195
Total Revenues	$1,112	$513	$599

Liquidity KPIs	Q2 2024	Q1 2025	Q2 2025
Cash and Accounts Receivable ($USD Millions)	—	$15.7	$13.6
Working Capital ($USD Millions)	—	$14.1	$12.1

Note: Q2 2024 cash/A/R and working capital not disclosed in the Q2’24 period within the cited releases.

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q3 2025	N/A (not provided)	N/A (not provided)	—
Margins	FY/Q3 2025	N/A (not provided)	N/A (not provided)	—
OpEx	FY/Q3 2025	N/A (not provided)	N/A (not provided)	—
OI&E	FY/Q3 2025	N/A (not provided)	N/A (not provided)	—
Tax Rate	FY/Q3 2025	N/A (not provided)	N/A (not provided)	—
Segment-specific	FY/Q3 2025	N/A (not provided)	N/A (not provided)	—
Dividends	FY/Q3 2025	N/A (not provided)	N/A (not provided)	—

No formal quantitative guidance was included in the Q2 2025 press release or recent filings reviewed .

Note: No Q2 2025 earnings call transcript was available in the reviewed documents universe.

Topic	Previous Mentions (Q4 2024 and Q1 2025)	Current Period (Q2 2025)	Trend
Legacy printer & auto touch demand	FY’24: decline in legacy printer and car touch applications highlighted . Q1’25: continued decline in printer market .	Q2’25: negative trend persisted in printer and passenger car touch .	Deteriorating/drag on license revenue
MultiSensing (DMS/AI/HMI)	FY’24: award at a leading commercial vehicle OEM for DMS . Q1’25: delivering to previously announced OEM; building partnerships .	Emphasis on first‑mover position in fully synthetic, data‑driven HMI; partnerships to continue .	Executing; pipeline build
zForce platform	FY’24: NEXTY selection for next‑gen amusement machines . Q1’25: promise for touch displays/rugged applications .	Focus on serving existing base and new project deliveries .	Maintenance/targeted new wins
Liquidity	FY’24: cash & A/R $17.2M at 12/31/24 . Q1’25: $15.7M at 3/31/25 .	$13.6M at 6/30/25; working capital $12.1M .	Gradual draw as transition proceeds
Supply chain/TSM phaseout	FY’24: lower component purchases post‑TSM phaseout . Q1’25: fewer component purchases cited .	Q2’25: fewer component purchases continued to help operating cash dynamics .	Structural tailwind to cash vs prior manufacturing model

“The second quarter … continued to see a decline in revenues from our legacy business as demand for our solutions in the printer and automotive infotainment markets maintained their negative trend.”
“We continue to build on and invest in being the first mover in fully synthetic, data‑driven HMI solutions – where our execution speed will continue to outperform the competition.”
“With the zForce platform, we continue to serve our existing customer base while focusing on new project deliveries.”
Q1 setup for the transition: “We successfully continued to deliver on our existing customer projects … We are actively working to expand our business opportunities and advance our product roadmap across both core technology platforms: MultiSensing and zForce.”

No Q2 2025 earnings call transcript was available in the reviewed documents; therefore no Q&A items to report.

S&P Global consensus for Q2 2025 EPS, revenue, and EBITDA was unavailable; as a result, we cannot assess beats/misses vs Street expectations for the quarter (consensus unavailable via S&P Global)*.

Revenue pressure remains rooted in legacy verticals; license fees fell 34% YoY to $404k, and total revenue was down 25% YoY to $599k, underscoring the need for new licensing ramps to offset legacy declines .
Sequential revenue improvement was driven by NRE ($195k vs $16k in Q1), signaling active project execution that can convert to future licensing, but OpEx ticked up and operating loss widened QoQ .
Liquidity is still meaningful ($13.6M cash/A&R; $12.1M working capital), providing time to execute the licensing pivot, though cash burn increased sequentially (CFFO $(1.7)M vs $(1.36)M in Q1) .
MultiSensing positioning (synthetic data‑driven HMI) and automotive DMS program(s) remain the core growth narrative; watch for conversion of deployments to production‑phase licensing .
With no formal guidance or Street consensus, near‑term stock reaction hinges on evidence of new licensing wins and clearer timelines from customer programs; governance items (annual meeting adjournments and vote outcomes) appear neutral to fundamentals .
Medium term, the thesis depends on: (1) scaling MultiSensing/DMS wins, (2) stabilizing legacy erosion, and (3) maintaining operating discipline to extend runway during the transition .

Footnote: *S&P Global consensus unavailable for the specified period; as such, no estimate figures are presented. Values retrieved from S&P Global.