MIND Technology, Inc. (“MIND” or the “Company”) (NASDAQ:MIND) announced today that it has received orders for sonar and source controller systems totaling approximately $7.7 million. In addition, the Company’s Board of Directors has elected not to declare a quarterly cash dividend on its 9.00% Series A Cumulative Preferred Stock (“Series A Preferred Stock”) for the second quarter of its fiscal year ending January 31, 2023.
Rob Capps, MIND’s President and Chief Executive Officer, stated, “These new orders had been anticipated, but it is an important step to have them in hand. The equipment to be delivered includes multi-beam sonar systems, along with associated handling equipment, and seismic source controller systems. We expect all these orders to be completed and delivered in our current fiscal year. We believe these orders indicate the strength in military and exploration markets and we expect further orders in the near future.
“Due to liquidity demands to complete these, and other, orders and the uncertainty as to the timing of certain cash flow, we feel it prudent to defer the payment of the second quarter dividend on our Series A Preferred Stock. The Company continues to have positive working capital and no funded debt.”
The Company may defer dividend payments on the Series A Preferred Stock, but the dividend is a cumulative dividend that accrues for payment in the future. During a deferral period, the Company is prohibited from paying dividends or distributions on its common stock, or redeeming any of those shares. Further, if the Company does not pay dividends on its Series A Preferred Stock for six or more quarters, the holders of Series A Preferred Stock will have the right to appoint two directors to the Company’s board.