[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements, management's discussion and analysis, market risk disclosures, and controls and procedures for the company [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) This section presents Airgain, Inc.'s unaudited condensed consolidated financial statements, highlighting key financial positions and performance for Q1 2024 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows a slight increase in total assets to $42.8 million and a rise in total liabilities to $12.3 million Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $7,169 | $7,881 | | Trade accounts receivable, net | $9,644 | $7,375 | | Total current assets | $20,820 | $19,081 | | Total assets | $42,798 | $42,229 | | Total current liabilities | $11,651 | $9,991 | | Total liabilities | $12,285 | $10,816 | | Total stockholders' equity | $30,513 | $31,413 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Sales decreased to $14.2 million in Q1 2024, but the company narrowed its net loss to $2.5 million year-over-year Q1 2024 vs Q1 2023 Operating Results (in thousands, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Sales | $14,231 | $16,444 | | Gross Profit | $5,576 | $6,318 | | Loss from operations | $(2,629) | $(2,790) | | Net loss | $(2,455) | $(2,858) | | Net loss per share (Basic & Diluted) | $(0.23) | $(0.28) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities improved to $1.1 million, with overall cash decreasing by $0.7 million in Q1 2024 Cash Flow Summary (in thousands) | Cash Flow Activity | Three months ended March 31, 2024 | Three months ended March 31, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(1,119) | $(1,434) | | Net cash used in investing activities | $(60) | $(89) | | Net cash provided by (used in) financing activities | $469 | $(541) | | Net decrease in cash, cash equivalents, and restricted cash | $(712) | $(2,064) | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes provide details on business operations, revenue disaggregation, customer concentration, and the ATM stock offering - The company operates in a single segment providing connectivity solutions for the consumer, enterprise, and automotive markets[25](index=25&type=chunk)[28](index=28&type=chunk) Disaggregated Revenue by Market (in thousands) | Market Group | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Enterprise | $8,879 | $8,437 | | Consumer | $3,511 | $5,132 | | Automotive | $1,841 | $2,875 | | **Total sales** | **$14,231** | **$16,444** | - Three customers (A, B, and C) accounted for **23%**, **18%**, and **15%** of total revenue, respectively, for the three months ended March 31, 2024, indicating significant customer concentration[102](index=102&type=chunk) - In March 2024, the company established an at-the-market (ATM) offerings program to sell up to **$5.0 million** of common stock. During Q1 2024, it issued **124,600 shares** for **$0.7 million** in gross proceeds[87](index=87&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the sales decline, improved gross margin, and reduced net loss, affirming liquidity for the next 12 months [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Q1 2024 sales decreased by $2.2 million, but gross margin improved to 39.2%, and operating expenses decreased, narrowing the net loss Sales by Market - Q1 2024 vs Q1 2023 ($ Change in millions) | Market | Change | Reason | | :--- | :--- | :--- | | Consumer | -$1.6M | Lower sales to cable operators | | Automotive | -$1.1M | Excess inventory correction impacting aftermarket sales | | Enterprise | +$0.5M | Recovery from prior year's excess inventory correction | - Gross profit as a percentage of sales increased by **80 basis points** to **39.2%** in Q1 2024, primarily driven by higher automotive margins[139](index=139&type=chunk) - Research and development expenses increased by **$0.7 million** (**27.4%**) due to higher employee and project development costs, while Sales & Marketing and General & Administrative expenses decreased by **$0.7 million** and **$0.9 million**, respectively[140](index=140&type=chunk)[141](index=141&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) The company ended Q1 2024 with **$7.2 million** in cash, affirming sufficient liquidity for the next 12 months - The company had cash and cash equivalents of **$7.2 million** at March 31, 2024, and an accumulated deficit of **$81.0 million**[145](index=145&type=chunk) - In August 2023, the company applied for Employee Retention Credit (ERC) refunds totaling **$2.5 million**, net of fees, with receipt anticipated within the next nine months[151](index=151&type=chunk) - On March 7, 2024, the company entered into an At-the-Market (ATM) sales agreement to sell up to **$5.0 million** in common stock, generating approximately **$0.5 million** in net proceeds in Q1 2024[149](index=149&type=chunk)[156](index=156&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=38&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) As a smaller reporting company, Airgain is exempt from providing quantitative and qualitative disclosures about market risk - As a smaller reporting company, Airgain is exempt from providing quantitative and qualitative disclosures about market risk[163](index=163&type=chunk) [Item 4. Controls and Procedures](index=38&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2024, with no material changes to internal controls - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of March 31, 2024[165](index=165&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[166](index=166&type=chunk) [PART II. OTHER INFORMATION](index=39&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides information on legal proceedings, risk factors, other disclosures, and a list of exhibits [Item 1. Legal Proceedings](index=39&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to have a material adverse effect on its financial condition - From time to time, the company may be party to legal proceedings in the ordinary course of business, but it believes the final outcome of current matters will not be materially adverse[168](index=168&type=chunk) [Item 1A. Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's 2023 Annual Report on Form 10-K - No material changes have occurred to the risk factors associated with the business as described in the 2023 Form 10-K[169](index=169&type=chunk) [Item 5. Other Information](index=39&type=section&id=Item%205.%20Other%20Information) No officers or directors adopted, modified, or terminated any Rule 10b5-1 trading arrangements during Q1 2024 - No officers or directors adopted, modified, or terminated any Rule 10b5-1 trading arrangements during the three months ended March 31, 2024[173](index=173&type=chunk) [Item 6. Exhibits](index=39&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including key agreements and officer certifications - Key exhibits filed include the At-The-Market Issuance Sales Agreement with Craig-Hallum Capital Group and certifications from the Principal Executive Officer and Principal Financial Officer[174](index=174&type=chunk)

Sales Performance - First quarter 2024 sales were $14.2 million, a sequential increase of 41.3% from $10.1 million in Q4 2023[3] - Total sales for Q1 2024 were $14,231,000, a decrease of 13.4% compared to $16,444,000 in Q1 2023[25] - Enterprise market sales contributed $8.9 million, consumer market sales were $3.5 million, and automotive market sales were $1.8 million[3] - For Q2 2024, sales are expected to range from $14.25 million to $15.75 million, with a midpoint of $15.0 million[12] Profitability Metrics - GAAP gross profit for Q1 2024 was $5.6 million, compared to $2.9 million in Q4 2023[4] - GAAP gross margin improved to 39.2% in Q1 2024 from 29.1% in Q4 2023[5] - Gross profit for Q1 2024 was $5,576,000, down from $6,318,000 in Q1 2023, resulting in a gross margin of 39.2%[25][34] - GAAP gross margin reported at 40.2%, with a non-GAAP gross margin of 41.0%[42] Net Loss and Adjusted Metrics - GAAP net loss for Q1 2024 was $2.5 million, or $(0.23) per share, an improvement from a net loss of $5.5 million in Q4 2023[8] - Non-GAAP net loss for Q1 2024 was $0.8 million, or $(0.08) per share, compared to a non-GAAP net loss of $3.5 million in Q4 2023[8] - Net loss for Q1 2024 was $2,455,000, an improvement from a net loss of $2,858,000 in Q1 2023[25][37] - Non-GAAP net loss for Q1 2024 was $833,000, compared to a non-GAAP net loss of $859,000 in Q1 2023[37] Operating Expenses - Operating expenses decreased to $8,205,000 in Q1 2024 from $9,108,000 in Q1 2023, with R&D expenses increasing to $3,120,000[25][35] - Total operating expenses reported at $8.4 million under GAAP, and $6.8 million under non-GAAP[42] - Non-GAAP operating expenses for Q2 2024 are projected to be approximately $6.8 million[12] Cash and Current Assets - Cash and cash equivalents at the end of Q1 2024 were $7,169,000, down from $9,839,000 at the end of Q1 2023[27] - Trade accounts receivable increased to $9,644,000 in Q1 2024 from $7,375,000 in Q4 2023[23] - The company reported a decrease in inventory to $2,588,000 in Q1 2024 from $2,403,000 in Q4 2023[23] Future Outlook and Strategic Focus - The company plans to continue focusing on R&D to drive future growth, with R&D expenses reflecting a strategic investment[25] - GAAP gross margin for Q2 2024 is expected to be between 38.7% and 41.7%[12] Adjusted EBITDA - Adjusted EBITDA for Q1 2024 was $(0.7) million, an improvement from $(3.3) million in Q4 2023[9] - Adjusted EBITDA stands at a loss of $0.5 million[43] - Depreciation and amortization included in adjusted EBITDA reconciliation totaled $0.9 million[43]

Group 1 - Airgain (AIRG) is currently outperforming its peers in the Computer and Technology sector, with a year-to-date performance of approximately 48.9%, compared to the sector average gain of 10.1% [2][3] - The Zacks Consensus Estimate for Airgain's full-year earnings has increased by 10.2% over the past three months, indicating stronger analyst sentiment and an improving earnings outlook [2] - Airgain holds a Zacks Rank of 2 (Buy), suggesting a favorable investment outlook based on earnings estimates and revisions [1][2] Group 2 - Airgain is part of the Communication - Components industry, which consists of 12 stocks and currently ranks 20 in the Zacks Industry Rank, with an average gain of 8.1% this year [3] - Another notable stock in the Computer and Technology sector is Celestica (CLS), which has achieved a year-to-date return of 50.3% and has a Zacks Rank of 1 (Strong Buy) [2][3] - Celestica belongs to the Electronics - Manufacturing Services industry, which has a lower ranking (45) and has gained only 4.1% this year [3]

Finding possibilities with high growth potential is crucial in the fast-paced world of investments. Three stocks to buy, in particular, stand out as possible game-changers in the tech sector. These companies have proven their strategic insight and perseverance in facing difficulties and market swings, making them appealing investments.The first has sharpened its emphasis on the business market. The company demonstrated a will to succeed despite a consistent drop in revenue. In the meantime, the second compa ...

Core Viewpoint - The article emphasizes the importance of identifying and sustaining stock price trends for successful short-term investing, highlighting the utility of a "Recent Price Strength" screen to find stocks with strong fundamentals and upward momentum [1]. Group 1: Stock Performance - Airgain (AIRG) has shown a significant price increase of 61.5% over the past 12 weeks, indicating strong investor interest [2]. - In addition to the long-term trend, AIRG has maintained a price increase of 4.6% over the last four weeks, confirming the ongoing upward trend [2]. - AIRG is currently trading at 81.4% of its 52-week high-low range, suggesting it may be on the verge of a breakout [2]. Group 2: Fundamental Strength - AIRG holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [3]. - The Zacks Rank system has a strong historical performance, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988 [3]. - The Average Broker Recommendation for AIRG is 1 (Strong Buy), indicating high optimism from the brokerage community regarding its near-term price performance [3]. Group 3: Investment Strategy - The article suggests that AIRG is not the only stock that meets the criteria of the "Recent Price Strength" screen, encouraging investors to explore other potential candidates [4]. - It highlights the availability of over 45 Zacks Premium Screens tailored to different investing styles, which can help identify winning stock picks [4]. - The Zacks Research Wizard tool allows backtesting of stock-picking strategies, enhancing the effectiveness of investment decisions [4].

SAN DIEGO--(BUSINESS WIRE)--Airgain, Inc. (NASDAQ: AIRG), a leading provider of wireless connectivity solutions that creates and delivers embedded components, external antennas, and integrated systems across the globe, announced that it signed a distribution agreement with Techship, Inc. for its NimbeLink® product line of embedded cellular modems and other wireless-enabled products. Under the agreement, Techship will distribute Airgain’s NimbeLink family of plug-in cellular modems globally, supporting OEMs ...

After reaching an important support level, Airgain, Inc. (AIRG) could be a good stock pick from a technical perspective. AIRG recently experienced a "golden cross" event, which saw its 50-day simple moving average breaking out above its 200-day simple moving average.A golden cross is a technical chart pattern that can signify a potential bullish breakout. It's formed from a crossover involving a security's short-term moving average breaking above a longer-term moving average, with the most common moving ave ...

Airgain, Inc. (NASDAQ:AIRG) Q4 2023 Earnings Conference Call March 6, 2024 5:00 PM ET Company Participants Jacob Suen - President and Chief Executive Officer Michael Elbaz - Chief Financial Officer Conference Call Participants Scott Searle - ROTH MKM Anthony Stoss - Craig-Hallum Capital Group Tim Savageaux - Northland Capital Markets Operator Good afternoon and welcome to Airgain's Fourth Quarter and Full Year 2023 Earnings Conference Call. My name is Diego, and I will be your operator for today's call. Joi ...

分组1 - Airgain reported a quarterly loss of $0.33 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.21, and compared to a loss of $0.11 per share a year ago, indicating a significant decline in performance [1] - The company's revenues for the quarter ended December 2023 were $10.07 million, surpassing the Zacks Consensus Estimate by 0.70%, but down from $19.89 million year-over-year [1] - Over the last four quarters, Airgain has consistently failed to meet consensus EPS estimates, resulting in a Zacks Rank 4 (Sell) for the stock, suggesting expected underperformance in the near future [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is -$0.15 on revenues of $11.9 million, and for the current fiscal year, it is -$0.17 on revenues of $60.45 million [4] - The Communication - Components industry, to which Airgain belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, indicating a challenging environment for the stock [4] - Another company in the same industry, Turtle Beach, is expected to report quarterly earnings of $0.64 per share, reflecting a year-over-year increase of 540%, with revenues projected at $112.43 million, up 11.4% from the previous year [5]

[Financial Results](index=1&type=section&id=Financial%20Results) [Fourth Quarter 2023 Financial Results](index=1&type=section&id=Fourth%20Quarter%202023%20Financial%20Results) Airgain's Q4 2023 sales declined to $10.1 million, resulting in a wider GAAP net loss of $5.5 million Q4 2023 Key Financial Metrics (GAAP vs. Non-GAAP) | Metric | GAAP | Non-GAAP | | :--- | :--- | :--- | | Sales | $10.1 million | - | | Gross Margin | 29.1% | 30.3% | | Operating Expenses | $8.4 million | $6.5 million | | Net Loss | $5.5 million | $3.5 million | | Net Loss per Share | $(0.52) | $(0.33) | | Adjusted EBITDA | - | $(3.3) million | Q4 2023 Sales by Market (in millions) | Market | Q4 2023 Sales | Change vs. Q3 2023 | Change vs. Q4 2022 | | :--- | :--- | :--- | :--- | | Enterprise | $4.6 | -$2.2 | -$5.4 | | Consumer | $3.2 | -$1.2 | -$3.2 | | Automotive | $2.3 | -$0.2 | -$1.2 | | **Total** | **$10.1** | **-$3.6** | **-$9.8** | - The CEO stated a belief that the fourth quarter represented the "**trough**" for the business after sequential declines throughout the year[3](index=3&type=chunk) - The decrease in GAAP gross margin from **38.2%** in Q3 2023 to **29.1%** in Q4 2023 was primarily attributed to an excess and obsolete inventory charge[6](index=6&type=chunk) - The **increase in GAAP net loss** was driven by lower sales, higher personnel and engineering project expenses, and the inventory charge[7](index=7&type=chunk)[8](index=8&type=chunk) [Full Year 2023 Financial Results](index=2&type=section&id=Full%20Year%202023%20Financial%20Results) Airgain's full-year 2023 sales decreased to $56.0 million, resulting in a wider GAAP net loss of $12.4 million Full Year 2023 Key Financial Metrics (GAAP vs. Non-GAAP) | Metric | GAAP | Non-GAAP | | :--- | :--- | :--- | | Sales | $56.0 million | - | | Gross Margin | 37.1% | 37.9% | | Operating Expense | $33.2 million | $26.4 million | | Net Loss | $12.4 million | $5.1 million | | Net Loss per Share | $(1.20) | $(0.50) | | Adjusted EBITDA | - | $(4.5) million | Full Year 2023 Sales by Market (in millions) | Market | 2023 Sales | Change vs. 2022 | | :--- | :--- | :--- | | Enterprise | $27.2 | -$7.3 | | Consumer | $18.9 | -$6.9 | | Automotive | $9.9 | -$5.7 | | **Total** | **$56.0** | **-$19.9** | - Reasons for the **annual sales decline** include: channel excess inventory correction impacting IIoT products, weaker demand from cable operator customers, and the discontinuation of the AC-HPUE product line[10](index=10&type=chunk) - The **increase in annual net loss** was primarily due to a **$7.2 million decrease in gross profit** from lower sales, which was only partially offset by a **$3.4 million reduction in operating expenses**[14](index=14&type=chunk) [Financial Outlook](index=3&type=section&id=Financial%20Outlook) [First Quarter 2024 Financial Outlook](index=3&type=section&id=First%20Quarter%202024%20Financial%20Outlook) Airgain anticipates Q1 2024 sales of $13.3-$14.7 million, projecting a sequential recovery from the Q4 2023 trough Q1 2024 Financial Outlook (Midpoint) | Metric | GAAP | Non-GAAP | | :--- | :--- | :--- | | Sales | $14.0 million | $14.0 million | | Gross Margin | 38.6% - 41.6% | 39.5% - 42.5% | | Operating Expense | ~$8.1 million | ~$6.4 million | | Net Loss per Share | $(0.24) | $(0.06) | | Adjusted EBITDA | - | $(0.5) million | - The company anticipates a year of **gradual growth in 2024**, driven by recoveries in end markets, product innovation investments, and the launch of 5G connectivity initiatives[3](index=3&type=chunk) [Supplemental Information](index=3&type=section&id=Supplemental%20Information) [Conference Call Information](index=3&type=section&id=Conference%20Call%20Information) A conference call was held on March 6, 2024, to discuss Q4 and full-year 2023 financial results - A conference call to discuss financial results was held on Wednesday, **March 6, 2024**, at 5:00 p.m. Eastern Time[17](index=17&type=chunk)[18](index=18&type=chunk) [About Airgain, Inc.](index=3&type=section&id=About%20Airgain%2C%20Inc.) Airgain, Inc. simplifies wireless connectivity through embedded components and integrated systems for various markets - **Airgain specializes** in solving complex connectivity issues and enhancing wireless signals across the enterprise, automotive, and consumer markets[19](index=19&type=chunk) [Forward-Looking Statements & Non-GAAP Measures](index=4&type=section&id=Forward-Looking%20Statements%20%26%20Non-GAAP%20Measures) This section outlines risks of forward-looking statements and explains non-GAAP measures for clearer operational insights - **Forward-looking statements** include the Q1 2024 financial outlook and expectations for market recovery, which are subject to numerous business risks and uncertainties[21](index=21&type=chunk) - The company uses **non-GAAP measures** such as Adjusted EBITDA, non-GAAP net loss, and non-GAAP gross margin to provide investors with a clearer view of core business operating results by excluding non-cash or non-recurring expenses[22](index=22&type=chunk)[23](index=23&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Airgain's balance sheet shows total assets decreased to $42.2 million, primarily due to reduced cash and inventories Key Balance Sheet Items (in thousands) | Account | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $7,881 | $11,903 | | Inventories | $2,403 | $4,226 | | **Total Assets** | **$42,229** | **$54,400** | | Total current liabilities | $9,991 | $12,900 | | **Total Liabilities** | **$10,816** | **$14,575** | | **Total stockholders' equity** | **$31,413** | **$39,825** | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) Consolidated statements show a full-year 2023 net loss of $12.4 million on $56.0 million sales, worsening from 2022 Key Income Statement Data (in thousands) | Metric | Q4 2023 | Q4 2022 | Full Year 2023 | Full Year 2022 | | :--- | :--- | :--- | :--- | :--- | | Sales | $10,070 | $19,889 | $56,040 | $75,895 | | Gross Profit | $2,931 | $5,880 | $20,763 | $27,972 | | Loss from Operations | $(5,488) | $(3,277) | $(12,400) | $(8,580) | | **Net Loss** | **$(5,484)** | **$(3,220)** | **$(12,428)** | **$(8,659)** | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities for 2023 was $3.3 million, a significant shift from 2022, decreasing cash by $4.1 million Cash Flow Summary (in thousands) | Activity | Year Ended Dec 31, 2023 | Year Ended Dec 31, 2022 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(3,301) | $4,446 | | Net cash used in investing activities | $(346) | $(750) | | Net cash used in financing activities | $(458) | $(6,304) | | **Net decrease in cash** | **$(4,102)** | **$(2,608)** | [Sales by Target Market](index=10&type=section&id=Sales%20by%20Target%20Market) Sales by target market show declines across Consumer, Enterprise, and Automotive segments for Q4 and full-year 2023 Sales by Target Market (in thousands) | Target Market | Q4 2023 | Q4 2022 | Full Year 2023 | Full Year 2022 | | :--- | :--- | :--- | :--- | :--- | | Consumer | $3,209 | $6,438 | $18,934 | $25,793 | | Enterprise | $4,615 | $10,015 | $27,209 | $34,533 | | Automotive | $2,246 | $3,436 | $9,897 | $15,569 | | **Total sales** | **$10,070** | **$19,889** | **$56,040** | **$75,895** | [Reconciliation of GAAP to Non-GAAP Measures](index=11&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section details reconciliations between GAAP and non-GAAP financial measures, adjusting for non-cash items for clearer insights Reconciliation of Net Loss to Adjusted EBITDA (Full Year, in thousands) | Description | Full Year 2023 | Full Year 2022 | | :--- | :--- | :--- | | **Net loss (GAAP)** | **$(12,428)** | **$(8,659)** | | Stock-based compensation expense | $3,681 | $4,978 | | Depreciation and amortization | $3,630 | $3,701 | | Severance and exit costs | $612 | $— | | Other (income) expense | $(109) | $(11) | | Income tax expense | $128 | $84 | | **Adjusted EBITDA (Non-GAAP)** | **$(4,486)** | **$93** | - The **primary adjustments** to reconcile GAAP to Non-GAAP figures are non-cash expenses like stock-based compensation and amortization of intangible assets[36](index=36&type=chunk)[40](index=40&type=chunk)[42](index=42&type=chunk)