Wi2Wi Corporation Announces Second Quarter 2025 Financial Results

Executive Summary

• Wi2Wi Corporation reported its financial results for the second quarter ended June 30, 2025, showing a decline in revenue and profitability compared to the same period in Fiscal 2024.
• The company reported a net loss of $653,000 and negative gross profit, primarily driven by a one-time quality control issue with a key customer shipment and timing of tariff charges on inventory.
• Subsequent to the quarter-end, a major shareholder provided additional financial support to strengthen working capital and inventory levels, while the company expanded its sales team to target growth in avionics, industrial, and defense markets.

Key Details

• Revenue: $1.46 million USD, a 13% decrease from $1.68 million USD in Q2 2024.
• Gross Profit: Negative $73,000 USD, compared to $266,000 USD (16% margin) in Q2 2024.
• EBITDA: Loss of $442,008 USD, compared to a loss of $76,206 USD in Q2 2024.
• Net Loss: $653,000 USD, compared to a net loss of $286,000 USD in Q2 2024.
• Cash Position: Cash on hand was $234,000 USD as of June 30, 2025 (down from $712,000 USD in Q2 2024).
• Operating Cash Flow: Net cash used in operations was $113,000 USD, compared to net cash provided of $190,000 USD in Q2 2024.
• Balance Sheet:
  • Total Assets: $8,699,000 USD.
  • Working Capital: $2.53 million USD.
  • Shareholders' Equity: $2,667,000 USD.
• Operational Issues: Q2 results were impacted by a one-time quality control issue with a key customer shipment, which has been resolved with enhanced quality controls now in place.
• Tariff Impact: Gross profit was further impacted by the timing of tariff charges for inventory received, which will not be recovered until billing to the customer.
• Post-Quarter Events: A major shareholder provided additional financial support to bolster working capital and inventory.
• Strategic Initiatives: Wi2Wi expanded its sales team to enhance outreach and build new partnerships, focusing on on-shoring initiatives and increased defense spending.

Notable Quotes

• "Second quarter results were impacted by a one-time quality control issue with a key customer shipment, which reduced margins and resulted in negative gross profit. The matter has been fully resolved, and enhanced quality controls are now in place." — Ted Clark, CEO
• "Also impacting second quarter gross profit was the timing of tariff charges for inventory received which won't be recovered until billing to the customer. Looking forward we see stronger demand, driven by on‑shoring initiatives and increased defense spending from key customers." — Ted Clark, CEO