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MIND Technology, Inc. Company Overview June 2025 (NASDAQ: MIND)
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Certain statement and information in this presentation may constitute “forward-looking statements” within the meaning of section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. The words “believe,” “expect,” “anticipate,” “plan,” “intend,” “foresee,” “should,” “would,” “could,” or other similar expressions are intended to identify forward- looking statements, which are generally not historical in nature. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. All comments concerning our expectations for future revenues and operating results are based on our forecasts for our existing operations and do not include the potential impact of future acquisitions. Our forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from our historical experience and our present expectations or projections. For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with the United States Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise. Forward Looking Statement
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A Leading Provider of Marine Technology MIND provides technology to the marine industry addressing three broad markets • Exploration • Survey • Maritime Security Our Seamap unit is a leading supplier to the seismic exploration and survey industries • Seismic source controllers • GNSS positioning systems • Solid towed seismic arrays • Repair services 3
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Compelling Investment Considerations Profitable growth & momentum in new order flow No debt & clean capital structure Strong backlog and pipeline of prospects Expanded global opportunities include higher margin parts & service New applications for our IP & technology Recognized market leader 4
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Favorable Macro Environment & Industry Tailwinds Industry Analysis 1) Wood Mackenzie’s August 2023 Energy Exploration Market Analysis 2) Offshore Magazine & Rystad Research – Total Offshore Investments to Reach Almost $250 Billion in 2025 5 The ongoing energy transition is expected to create alternative revenue streams for seismic players that have diversified their businesses by venturing into the carbon storage, geothermal, offshore wind and deep-sea mining sectors. – Offshore Magazine Global capital expenditure on subsea facilities is set for a 10% compound annual growth rate from 2024 to 2027. – Rystad Research Global spending on exploration, excluding appraisal, should average $22 billion per year in real terms over the next five years. – Wood Mackenzie Marine Energy Exploration
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A New Focus: Driving Profitability Sold Klein Sonar Unit in August 2023 Streamlined Management and Corporate Operations Enhanced Balance Sheet ▪ Eliminated outstanding debt, currently debt free ▪ Recapitalized by converting all preferred stock to common stock ✓ Eliminated liquidation preference and all accumulated dividends ▪ Improved Working Capital Launched Strategic Initiatives to Add Scale ▪ Retained Lucid Capital Markets LLC ✓ Assist with identifying, investigating and analyzing potential growth opportunities ▪ Filed Shelf Registration Statement with the SEC ✓ Provides access to capital to finance near-term internal growth or acquisitions ✓ Allows for quick and efficient action should circumstances dictate Aggressive Actions to Focus on Near-Term Opportunities 6
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FY23 FY24 FY25FY23 FY24 FY25 FY23 FY24 FY25FY23 FY24 FY25 Transformed MIND For Profitable Growth (Y/Y) ($ in thousands) ($ in thousands) ($ in thousands) Revenue Gross Profit Operating Income Adjusted EBITDA(1) $25,012 $36,510 $46,863 $9,950 $15,971 $20,967 ($5,650) $518 $6,818 $8,237 $2,311 ($3,392) ($ in thousands) 7 1) Adjusted EBITDA is a non-GAAP financial measure. See the “Supplemental Information” at the back of this presentation for reconciliations to the most directly comparable financial measures calculated and presented in accordance with U.S. generally accepted accounting principles (“GAAP”). FY2025 Results 2/1/2024 - 1/31/2025
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$- $5 $10 $15 $20 $25 $30 $35 $40 $45 4/30/2024 7/31/2024 10/31/2024 1/31/2025 4/30/2025 $- $5 $10 $15 $20 $25 $30 $35 $40 $45 1/31/2021 1/31/2022 1/31/2023 1/31/2024 1/31/2025 Sustainably Higher Backlog • Order visibility gives confidence for future financial performance • Firm backlog of $21.1 million as of April 30, 2025 • Pipeline of pending and highly confident orders is well in excess of received orders • FY revenue consistently exceeds reported backlog from prior year-end 1) Backlog excludes Klein contributions for periods prior to sale in August 2023 $ in Millions (USD) 8 $ in Millions (USD) Fiscal Year-End Reported Backlog(1) Trailing Twelve-Month Quarterly Backlog $12.1 $9.3 $15.7 $38.4 $31.0 $26.2 $26.2 $16.9 $16.9 $21.1
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$9.3 $15.7 $38.4 $25.0 $36.5 $46.9 $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 $50.0 FY23 FY24 FY25 FY26 Backlog Prior Year-End Actual Revenue $16.9 Revenue Trend Relative to Backlog(1) 1) MIND has not disclosed FY2026 Revenue Outlook 2) Backlog and reported revenue do not include the contributions of Klein (2) 9
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Seamap Overview Seamap is a recognized brand in the seismic industry • GunLink – Dominant market position with source controllers • SeaLink – Reconfigurable towed streamer systems • BuoyLink – GNSS positioning systems • Broad repair, service and support capabilities Customers include: • Seismic exploration contractors • Marine survey companies • Governmental research organizations New markets • Ultra high-resolution marine surveys – alternative energy projects • Expanded repair services Good order visibility • Strong and sustainable backlog 10
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Seamap Applications 11
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Seamap: A Strategy for the Future Addressing Opportunities Revitalized Marine Energy Exploration • Seismic contractors reporting improved results and prospects Alternative Energy Projects • Wind Farms and Carbon Capture Facilities Expanding Opportunities Apply Technology to New Markets • Ultra high-resolution seismic surveys – alternative energy projects • Expanded repair services • Expanded streamer opportunities • Additional products Expanding installed base = increased after-market business • Significant revenue from recurring after-market (spares, etc.) • Approximately 71% of revenue in FY1Q26 (Historically ~40%) • Revenue contribution from Huntsville facility is expected to increase following expansion • Margin expansion opportunity 12
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Other Expansion Expanded SeaLink streamer opportunities • Enhance ability to provide larger systems • Some design modifications • New production processes Sea Serpent passive seismic array • Re-using commercial streamer technology for military and maritime security markets • Opens a new market • Commercial off the shelf (COTS) system suitable for unmanned surface vessels and fixed ocean bottom applications
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Global Markets Require Global Presence The Woodlands, Texas Headquarters Huntsville, Texas Manufacturing / Repairs United Kingdom Engineering / Field Service Malaysia Manufacturing / Repairs Singapore Manufacturing / Field Service / Engineering 14
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Seamap Singapore • Assembly & testing of electronics modules • Engineering • Field service • Administration 15
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Production and Repair Operations • SeaLink seismic streamer systems • BuoyLink systems • Other Seamap products Seamap Malaysia 16
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• Engineering operations ▪ Sustaining ▪ New development ▪ Sales support • Field service • Training • Sales Located south of Bristol 17 Seamap U.K.
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MIND Maritime Acoustics (US) Huntsville, Texas (North of Houston) • Streamer repair • Manufacturing support to Singapore • Ancillary streamer device manufacturing • Sleeve gun sales & support Hydrophone and other SeaLink intellectual property is held by this entity. 18
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Compelling Investment Considerations Profitable growth & momentum in new order flow No debt & clean capital structure Strong backlog and pipeline of prospects Expanded global opportunities include higher margin parts & service New applications for our IP & technology Recognized market leader 19
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Supplemental Information 20
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Fiscal 2026 First Quarter Balance Sheet 21 MIND TECHNOLOGY, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) (unaudited) April 30, 2025 January 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 9,172 $ 5,336 Accounts receivable, net of allowance for credit losses of $332 at each of April 30, 2025 and January 31, 2025 7,779 11,817 Inventories, net 13,447 13,745 Prepaid expenses and other current assets 1,310 1,217 Total current assets 31,708 32,115 Property and equipment, net 1,048 890 Operating lease right-of-use assets 1,221 1,320 Intangible assets, net 2,162 2,308 Deferred tax asset 87 87 Total assets $ 36,226 $ 36,720 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 2,011 $ 2,558 Deferred revenue 514 189 Customer deposits 1,807 1,603 Accrued expenses and other current liabilities 1,358 1,245 Income taxes payable 2,681 2,473 Operating lease liabilities - current 570 577 Total current liabilities 8,941 8,645 Operating lease liabilities - non-current 651 743 Total liabilities 9,592 9,388 Stockholders’ equity: Common stock, $0.01 par value; 40,000 shares authorized; 7,969 shares issued and outstanding at April 30, 2025 and January 31, 2025 80 80 Additional paid-in capital 135,938 135,666 Accumulated deficit (109,418 ) (108,448 ) Accumulated other comprehensive gain 34 34 Total stockholders’ equity 26,634 27,332 Total liabilities and stockholders’ equity $ 36,226 $ 36,720
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Fiscal 2026 First Quarter Income Statement 22 MIND TECHNOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) For the Three Months Ended April 30, 2025 2024 Revenues: Sales of marine technology products $ 7,902 $ 9,678 Cost of sales: Sales of marine technology products 4,571 5,460 Gross profit 3,331 4,218 Operating expenses: Selling, general and administrative 3,384 2,759 Research and development 380 462 Depreciation and amortization 225 267 Total operating expenses 3,989 3,488 Operating income (loss) (658 ) 730 Other income (expense): Other, net (18 ) 469 Total other income (expense) (18 ) 469 Income (loss) before income taxes (676 ) 1,199 Provision for income taxes (294 ) (245 ) Net income (loss) $ (970 ) $ 954 Preferred stock dividends - undeclared — (947 ) Net income (loss) attributable to common stockholders $ (970 ) $ 7 Net loss per common share - Basic and diluted Net loss $ (0.12 ) $ — Shares used in computing net income (loss) per common share: Basic and diluted 7,969 1,406
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Fiscal 2026 First Quarter Cash Flow Statement 23 MIND TECHNOLOGY, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) For the Three Months Ended April 30, 2025 2024 Cash flows from operating activities: Net income (loss) $ (970 ) $ 954 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 225 267 Stock-based compensation 272 48 Provision for inventory obsolescence 15 23 Gross profit from sale of other equipment — (457 ) Changes in: Accounts receivable 3,969 (2,837 ) Unbilled revenue 16 (10 ) Inventories 282 (2,812 ) Prepaid expenses and other current and long-term assets (92 ) 100 Income taxes receivable and payable 208 (186 ) Accounts payable, accrued expenses and other current liabilities (386 ) 277 Deferred revenue and customer deposits 529 (120 ) Net cash provided by (used in) operating activities 4,068 (4,753 ) Cash flows from investing activities: Purchases of property and equipment (237 ) (66 ) Sale of other equipment — 457 Net cash (used in) provided by investing activities (237 ) 391 Cash flows from financing activities: Net cash provided by financing activities — — Effect of changes in foreign exchange rates on cash and cash equivalents 5 (3 ) Net change in cash and cash equivalents 3,836 (4,365 ) Cash and cash equivalents, beginning of period 5,336 5,289 Cash and cash equivalents, end of period $ 9,172 $ 924
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Reconciliation of Fiscal 2026 First Quarter Adjusted EBITDA 1) EBITDA and Adjusted EBITDA are non-GAAP financial measures. EBITDA is defined as net income before (a) interest income and interest expense, (b) provision for (or benefit from) income taxes and (c) depreciation and amortization. Adjusted EBITDA excludes non-cash foreign exchange gains and losses, stock-based compensation, impairment of intangible assets andother non-cash tax related items. We consider EBITDA and Adjusted EBITDA to be important indicators for the performance of our business, but not measures of performance or liquidity calculated in accordance with GAAP. We have included these non-GAAP financial measures because management utilizes this information for assessing our performance and liquidity, and as indicators of our ability to make capital expenditures, service debt and finance working capital requirements and we believe that EBITDA and Adjusted EBITDA are measurements that are commonly used by analysts and some investors in evaluating the performance and liquidity of companies such as us. In particular, we believe that it is useful to our analysts and investors to understand this relationship because it excludes transactions not related to our core cash operating activities. We believe that excluding these transactions allows investors to meaningfully trend and analyze the performance of our core cash operations. EBITDA and Adjusted EBITDA are not measures of financial performance or liquidity under GAAP and should not be considered in isolation or as alternatives to cash flow from operating activities or as alternatives to net income as indicators of operating performance or any other measures of performance derived in accordance with GAAP. In evaluating our performance as measured by EBITDA, management recognizes and considers the limitations of this measurement. EBITDA and Adjusted EBITDA do not reflect our obligations for the payment of income taxes, interest expense or other obligations such as capital expenditures. Accordingly, EBITDA and Adjusted EBITDA are only two of the measurements that management utilizes. Other companies in our industry may calculate EBITDA or Adjusted EBITDA differently than we do and EBITDA and Adjusted EBITDA may not be comparable with similarly titled measures reported by other companies. 24 MIND TECHNOLOGY, INC. Reconciliation of Net Income (Loss) and Net Cash Used in Operating Activities to EBITDA and Adjusted EBITDA from Continuing Operations (in thousands) (unaudited) For the Three Months Ended April 30, 2025 2024 Reconciliation of Net income (loss) to EBITDA and Adjusted EBITDA (in thousands) Net income (loss) $ (970 ) $ 954 Depreciation and amortization 225 267 Provision for income taxes 294 245 EBITDA (1) (451 ) 1,466 Stock-based compensation 272 48 Adjusted EBITDA (1) $ (179 ) $ 1,514 Reconciliation of Net Cash Provided by (Used in) Operating Activities to EBITDA Net cash provided by (used in) operating activities $ 4,068 $ (4,753 ) Stock-based compensation (272 ) (48 ) Provision for inventory obsolescence (15 ) (23 ) Changes in accounts receivable (current and long-term) (3,985 ) 2,847 Taxes paid, net of refunds 80 430 Gross profit from sale of other equipment — 457 Changes in inventory (282 ) 2,812 Changes in accounts payable, accrued expenses and other current liabilities and deferred revenue (143 ) (157 ) Changes in prepaid expenses and other current and long-term assets 92 (100 ) Other 6 1 EBITDA (1) $ (451 ) $ 1,466