Moving iMage Technologies Announces Retirement of Outstanding Debt

Rhea-AI Summary

Moving iMage Technologies (MITQ) has successfully reduced approximately $3.1 million in debt, significantly improving its balance sheet by eliminating nearly all liabilities. This strategic move is expected to yield annual interest expense savings of around $0.3 million. The company used its existing cash reserves for this debt repayment, without relying on funds from its July 12, 2021 IPO. Remaining debt consists of a PPP loan, which is anticipated to be forgiven, further enhancing MITQ's financial position.

Positive

• Debt reduced by approximately $3.1 million, improving capital structure.
• Expected annual interest expense savings of about $0.3 million.
• Remaining debt is a PPP loan, poised for forgiveness, further strengthening the balance sheet.

Negative

• None.

Approximate $3.1 million in debt reduction leaves substantially no outstanding debt in the Company’s capital structure

Annual interest expense savings expected to be approximately $0.3 million

FOUNTAIN VALLEY, Calif.--(BUSINESS WIRE)-- Moving iMage Technologies (NYSE American: MITQ) (“MiT”), a leading digital cinema technology company, today announced that it used existing cash on hand to retire approximately $3.1 million in debt, including accrued interest and debt retirement fees, during the first quarter of fiscal 2022, eliminating substantially all short and long-term debt liabilities on the Company’s balance sheet. No proceeds from the Company’s July 12, 2021 IPO were used to execute the retirement. The Company’s remaining debt is a second Payroll Protection Program (“PPP”) loan, which it expects to be entirely forgiven. MiT expects to realize annualized interest expense savings of nearly $0.3 million.

“Alongside our IPO, becoming essentially debt free is the second significant milestone for MiT over the past few months,” said Michael Sherman, chief financial officer. “This paydown immediately transformed the balance sheet while providing us with increased liquidity to invest in growth initiatives and expand margins.”

As stated in the Company’s S-1/A filing on July 7, 2021, proceeds from the Company’s July 12, 2021 IPO will be used for acquisitions and other growth opportunities.

About Moving iMage Technologies

MiT is a leading manufacturer and integrator of purpose-built technology solutions and equipment to support a wide variety of entertainment applications, with a focus on motion picture exhibition. MiT offers a wide range of products and services, including custom engineering, systems design, integration and installation, enterprise software solution, digital cinema, A/V integration, as well as customized solutions for emerging entertainment technology. MiT’s Caddy Products division designs and sells proprietary cup-holder and other seating-based products and lighting systems for theaters and stadiums. For more information, visit www.movingimagetech.com.

Forward-Looking Statements

This press release contains statements that constitute "forward-looking statements," including, but not limited to, the timing of the opening of the Alamo Drafthouse Cinema location. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of the Company, including the timing of the opening of the new theater, potential project delays or cancellations and those set forth in the Risk Factors section of the Company's registration statement and preliminary prospectus for the Company's offering filed with the SEC. Copies of these documents are available on the SEC's website, www.sec.gov. The Company undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211006005204/en/

Investor Relations and Media Contacts:

Brian Siegel, IRC®, M.B.A.

Managing Director

Hayden IR

(346) 396-8696

brian@haydenir.com

Source: Moving iMage Technologies

FAQ

What is the recent debt reduction amount by Moving iMage Technologies (MITQ)?

Moving iMage Technologies (MITQ) has reduced its debt by approximately $3.1 million.

How much annual interest expense savings is expected for MITQ after the debt reduction?

MITQ expects annual interest expense savings of around $0.3 million.

Did Moving iMage Technologies use its IPO proceeds for debt repayment?

No, Moving iMage Technologies did not use any proceeds from its IPO to execute the debt repayment.

What type of loan remains on MITQ's balance sheet after the debt reduction?

The only remaining debt on MITQ's balance sheet is a Payroll Protection Program (PPP) loan, which is expected to be forgiven.