$SUNE

COMMUNICATIONS SYSTEMS INC

CIK:0000022701|SEC Filings

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Condensed Consolidated Statements of Operations [Abstract]
Sales	$ 8,161,987	$ 13,064,254	$ 15,356,436	$ 25,700,892
Cost of sales	6,032,465	8,224,737	11,635,666	16,430,050
Gross profit	2,129,522	4,839,517	3,720,770	9,270,842
Operating expenses:
Selling, general and administrative expenses	4,183,097	6,443,729	9,544,519	12,483,027
Amortization expense	559,375	559,375	1,118,750	1,118,750
Transaction costs	570,516		570,516
Total operating expenses	5,312,988	7,003,104	11,233,785	13,601,777
Operating loss	(3,183,466)	(2,163,587)	(7,513,015)	(4,330,935)
Other income (expense):
Investment and other income	13,509	27,661	62,137	75,826
Gain on sale of assets	1,000		3,700
Fair value remeasurement of warrant liability		(7,531,044)		(7,531,044)
Fair value remeasurement of contingent forward contract		789,588		899,080
Fair value remeasurement of contingent value rights		6,271		25,450
Financing fees		(559,938)		(1,136,532)
Interest expense	(158,475)	(162,130)	(291,924)	(733,370)
Gain (loss) on debt extinguishment			332,412	(343,471)
Other (expense) income, net	(143,966)	(7,429,592)	106,325	(8,744,061)
Net loss before income taxes	(3,327,432)	(9,593,179)	(7,406,690)	(13,074,996)
Income tax expense	11,395	14,236	22,751	28,851
Net loss	$ (3,338,827)	$ (9,607,415)	$ (7,429,441)	$ (13,103,847)
Basic net loss per share	$ (0.52)	$ (3.14)	$ (1.86)	$ (8.42)
Diluted net loss per share	$ (0.52)	$ (3.14)	$ (1.86)	$ (8.42)
Weighted Average Basic Shares Outstanding	6,401,384	3,063,743	4,001,168	1,556,627
Weighted Average Dilutive Shares Outstanding	6,401,384	3,063,743	4,001,168	1,556,627

Condensed Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (7,429,441)	$ (13,103,847)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	1,244,966	1,252,744
Share based compensation	9,712	53,276
Credit loss provision	23,581	(19,316)
Provision to write down inventories to net realizable value	17,934	28,033
Amortization of right of use asset	155,235	173,633
Fair value remeasurement of warrant liability		7,531,044
Fair value remeasurement of contingent forward contract		(899,080)
Fair value remeasurement of contingent value rights		(25,450)
(Gain) loss on extinguishment of debt	(332,412)	343,471
Gain on sale of assets	(3,700)
Interest and accretion expense	251,947	212,592
Changes in assets and liabilities:
Trade and related party accounts receivables	1,027,851	1,601,897
Inventories	(124,620)	357,644
Prepaid income taxes	894	(20,847)
Other assets	857,855	534,878
Accounts payable	(2,791,040)	(489,960)
Accrued compensation and benefits	587,537	403,470
Customer deposits	(221,183)	(336,485)
Other accrued liabilities	591,228	(496,763)
Accrued interest	(130,938)	(634,467)
Net cash used in operating activities	(6,264,594)	(3,533,533)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(2,500)	(8,817)
Proceeds from the sale of property, plant and equipment	3,700
Net cash provided by (used in) investing activities	1,200	(8,817)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings against related party working capital line of credit	800,000
Payments against loans payable	(881,947)	(8,514,664)
Payments against related party loans payable	(282,726)	(1,038,279)
Payments related to debt issuance costs		(38,613)
Payments related to equity issuance costs	(254,359)	(2,128,038)
Proceeds from the issuance of common stock under PIPE offering	2,700,700
Proceeds from the issuance of common stock and pre-funded warrants under registered direct offering		9,690,790
Proceeds from the issuance of common stock on the exercise of pre-funded warrants		11,078
Proceeds from the issuance of Series A and Series B warrants		10,298,134
Proceeds from the issuance of common stock under at-the-market offering	60,604	351,372
Payments for the termination of Series A warrants		(267,391)
Payment of contingent consideration related to acquisition		(2,500,000)
Net cash provided by financing activities	2,142,272	5,864,389
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(4,121,122)	2,322,039
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD	7,182,344	1,151,348
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD	3,061,222	3,473,387
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Income taxes paid	21,857	49,698
Interest paid	105,249	1,139,593
NONCASH FINANCING AND INVESTING ACTIVITIES:
Conversion of related party debt to equity	$ 1,091,525
Loss on extinguishment of debt		(343,471)
Issuance of common stock for the settlement of loss contingencies		$ 880,756

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2026	Dec. 31, 2025
CURRENT ASSETS:
Cash and cash equivalents	$ 3,061,222	$ 7,182,344
Trade accounts receivable, less allowance for credit losses of $332,210 and $308,629, respectively	3,188,317	4,239,483
Inventories	2,641,670	2,534,984
Prepaid income taxes	8,442	9,336
Related party receivables	21,145	21,412
Prepaid expenses	850,046	1,273,762
Costs and estimated earnings in excess of billings	201,938	658,177
Other current assets	576,581	554,481
TOTAL CURRENT ASSETS	10,549,361	16,473,979
PROPERTY, PLANT AND EQUIPMENT, net	891,812	1,015,528
OTHER ASSETS:
Goodwill	17,443,869	17,443,869
Operating lease right of use asset, net	3,160,176	3,315,411
Intangible assets, net	8,864,583	9,983,333
Other assets, net	12,000	12,000
TOTAL OTHER ASSETS	29,480,628	30,754,613
TOTAL ASSETS	40,921,801	48,244,120
CURRENT LIABILITIES:
Accounts payable	4,604,277	7,395,318
Accrued compensation and benefits	2,188,550	1,653,994
Operating lease liability	305,705	292,240
Accrued warranty	212,307	225,318
Other accrued liabilities	915,055	973,302
Refundable customer deposits	852,102	1,073,284
Billings in excess of costs and estimated earnings	2,470,138	1,663,867
Current portion of loans payable	73,329	366,824
Current portion of loans payable - related party	2,151,851	1,763,424
TOTAL CURRENT LIABILITIES	13,773,314	15,407,571
LONG-TERM LIABILITIES:
Loans payable and related interest	90,643	1,011,508
Loans payable and related interest - related party	2,616,196	3,457,864
Operating lease liability	3,001,228	3,158,478
Accrued compensation and benefits	916,674	863,693
TOTAL LONG-TERM LIABILITIES	6,624,741	8,491,543
COMMITMENTS AND CONTINGENCIES (Note 6)
STOCKHOLDERS' EQUITY
Common stock, par value $0.05 per share; 1,000,000,000 shares authorized; 6,513,108 and 3,406,616 shares issued and outstanding, respectively	325,655	170,331
Additional paid-in capital	81,419,411	77,966,554
Accumulated deficit	(61,221,320)	(53,791,879)
TOTAL STOCKHOLDERS' EQUITY	20,523,746	24,345,006
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	40,921,801	48,244,120
Series D Preferred Stock [Member]
STOCKHOLDERS' EQUITY
Preferred stock, par value $1.00 per share; 3,000,000 shares authorized; no shares issued and outstanding, respectively