$IRIX

IRIDEX CORP

CIK:0001006045|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2026	Jun. 28, 2025	Jul. 04, 2026	Jun. 28, 2025
Income Statement [Abstract]
Total revenues	$ 12,566	$ 13,571	$ 24,365	$ 25,467
Cost of revenues	8,270	8,889	15,328	15,730
Gross profit	4,296	4,682	9,037	9,737
Operating expenses:
Research and development	936	871	1,841	1,747
Sales and marketing	2,547	2,535	5,084	4,988
General and administrative	1,842	2,216	3,465	4,147
Total operating expenses	5,325	5,622	10,390	10,882
Loss from operations	(1,029)	(940)	(1,353)	(1,145)
Other expense, net	(167)	(33)	(309)	(1,502)
Loss from operations before provision for income taxes	(1,196)	(973)	(1,662)	(2,647)
Provision for income taxes	70	21	128	33
Net loss	$ (1,266)	$ (994)	$ (1,790)	$ (2,680)
Net loss per share:
Basic	$ (0.07)	$ (0.06)	$ (0.1)	$ (0.16)
Diluted	$ (0.07)	$ (0.06)	$ (0.1)	$ (0.16)
Weighted average shares used in computing net loss per common share:
Basic	17,418	16,793	17,376	16,760
Diluted	17,418	16,793	17,376	16,760

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jul. 04, 2026	Jun. 28, 2025
Operating activities:
Net loss	$ (1,790)	$ (2,680)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss on extinguishment of convertible note payable	0	1,335
Depreciation and amortization	186	262
Amortization of operating lease right-of-use assets	548	497
Accretion of original issue discount	0	58
Amortization of debt issuance costs	60	109
Stock-based compensation	423	470
Changes in operating assets and liabilities:
Accounts receivable	1,939	(1,186)
Receivable from related party	517	(450)
Inventories	(1,875)	2,382
Prepaid expenses and other current assets	(635)	339
Other long-term assets	16	121
Accounts payable	1,265	(2,025)
Payable to related party	42	(174)
Accrued compensation	(706)	189
Accrued expenses	152	107
Deferred revenue	(737)	(670)
Operating lease liabilities	(579)	(512)
Other liabilities	13	282
Net cash used in operating activities	(1,161)	(1,546)
Investing activities:
Acquisition of property and equipment	(151)	(24)
Net cash used in investing activities	(151)	(24)
Financing activities:
Proceeds from issuance of convertible note payable	0	4,000
Payments on note payable	0	(3,961)
Proceeds from issuance of Series B Preferred stock	0	6,000
Taxes paid related to net share settlements of equity awards	(39)	(14)
Net cash provided by (used in) financing activities	(39)	6,025
Effect of foreign exchange rate changes	3	(64)
Net increase (decrease) in cash and cash equivalents	(1,348)	4,391
Cash and cash equivalents, beginning of period	6,028	2,387
Cash and cash equivalents, end of period	4,680	6,778
Supplemental disclosure of cash flow activities:
Cash paid during the period for income taxes	12	24
Supplemental disclosure of non-cash activities:
Debt issuance cost	0	360
Issuance of common shares in connection with paydown of accrued interest payable	120	0
Issuance of common shares in connection with extinguishment of convertible notes payable	$ 0	$ 250

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jul. 04, 2026	Jan. 03, 2026
Current assets:
Cash and cash equivalents	$ 4,680	$ 6,028
Accounts receivable, net	5,674	7,613
Receivable from related party	1,415	1,932
Inventories	9,752	7,877
Prepaid expenses and other current assets	2,437	1,802
Total current assets	23,958	25,252
Property and equipment, net	182	58
Intangible assets, net	825	984
Goodwill	965	965
Operating lease right-of-use assets, net	220	768
Other long-term assets	1,108	1,124
Total assets	27,258	29,151
Current liabilities:
Accounts payable	6,650	5,385
Payable to related party	159	117
Accrued compensation	1,634	2,340
Accrued expenses	760	608
Other current liabilities	1,683	1,899
Deferred revenue, current	2,146	2,160
Operating lease liabilities, current	141	699
Total current liabilities	13,173	13,208
Long-term liabilities:
Deferred revenue	6,078	6,801
Operating lease liabilities	77	98
Convertible note payable	3,795	3,735
Other long-term liabilities	496	387
Total liabilities	23,619	24,229
Commitments and contingencies (Note 8)
Stockholders’ equity:
Common stock, $0.01 par value: Authorized: 63,500,000 shares; Issued and outstanding 17,452,915 shares as of July 4, 2026 and 17,306,521 as of January 3, 2026	174	174
Additional paid-in capital	91,712	91,208
Accumulated other comprehensive loss	(11)	(14)
Accumulated deficit	(94,236)	(92,446)
Total stockholders’ equity	3,639	4,922
Total liabilities and stockholders' equity	27,258	29,151
Series B convertible preferred stock
Stockholders’ equity:
Preferred stock, $0.01 par value Authorized: 2,000,000 shares; Issued and outstanding: 600,000 shares of Series B convertible preferred stock as of both July 4, 2026 and January 3, 2026 (liquidation preference of $6.0 million as of both July 4, 2026 and January 3, 2026)	$ 6,000	$ 6,000