Nimble Holdings (00186) disclosed the FY2026 Form 10-K results of its 72.4%-owned U.S. subsidiary Emerson Radio Corp. (NYSE American: MSN) filed with the U.S. Securities and Exchange Commission.
Financial Highlights (FY ended 31 Mar 2026) • Net revenues fell 41.50% year on year to USD 6.31 million (FY2025: USD 10.79 million), dragged by a 43.30% decline in product sales to USD 5.92 million. • Licensing revenue edged up 14.90% to USD 0.39 million. • Gross profit decreased 49.23% to USD 0.10 million; cost of sales contracted 37.10% to USD 6.22 million. • Selling, general & administrative expenses were cut 23.80% to USD 4.96 million, helped by lower bad-debt charges and compensation costs. • Operating loss narrowed 13.27% to USD 4.87 million. • Net loss attributable to shareholders narrowed to USD 4.30 million from USD 4.73 million. • Interest income slid 35.70% to USD 0.57 million, reflecting lower term-deposit balances and yields. • No income-tax expense was recorded after adopting ASU 2019-12 (fiscal 2025 expense: USD 3,000).
Balance-Sheet & Cash Flow • Cash and cash equivalents rose to USD 9.19 million (31 Mar 2025: USD 1.19 million). • Short-term investments fell to USD 3.14 million (2025: USD 14.87 million). • Working capital stood at USD 16.80 million, down from USD 21.10 million a year earlier. • Operating cash outflow was USD 3.72 million; investing activities generated USD 11.73 million, mainly from maturing deposits.
Operational Metrics • Microwave ovens remained the core product, contributing 69% of gross product sales; audio products accounted for 25%. • Sales were highly concentrated: Amazon contributed 42% of net revenues, Fred Meyer 13%. • Top four suppliers provided 96% of fiscal-year purchases, with leading supplier Welly (formerly Weili) representing 49%. • Emerson Radio employed 21 staff as of 4 Jun 2026 (8 in the U.S., 13 in China).
Risk & Compliance • Emerson highlighted exposure to supplier concentration, tariff uncertainties on China-sourced goods, and continued reliance on key customers such as Amazon and Fred Meyer. • The company’s internal controls were deemed effective; however, earnings volatility, cybersecurity threats and macroeconomic pressures remain key risks. • Emerson maintains a cash-collateralised letter-of-credit facility with no outstanding balance and no external borrowings.
Legal Update • In Oct 2023 a U.S. court awarded Emerson USD 10.40 million in a trademark infringement case against Emerson Quiet Kool and Home Easy; defendants have since filed for bankruptcy, and recovery is uncertain.
Governance • Nimble Holdings treats Emerson as a “controlled company” under NYSE American rules, holding 72.4% through indirect subsidiary S&T International Distribution. Nimble’s Chairman Christopher Ho serves as Emerson’s CEO and Board Chair; Nimble COO Michael Binney is Emerson’s COO and director.
Audit Opinion • Grassi & Co., CPAs, P.C. issued an unqualified opinion on Emerson’s FY2026 financial statements; the company qualifies as a smaller reporting entity and is exempt from auditor attestation on internal controls.