Workflow
AIRSHIP(AISP) - 2024 Q2 - Quarterly Report
AISPAIRSHIP(AISP)2024-08-14 20:00

Financial Performance - Net revenues for the three months ended June 30, 2024, increased by 3,631,000to3,631,000 to 6,401,000 compared to 2,770,000forthesameperiodin2023,drivenbyincreasedproductsales[139]−GrossprofitforthethreemonthsendedJune30,2024,increasedby169.32,770,000 for the same period in 2023, driven by increased product sales[139] - Gross profit for the three months ended June 30, 2024, increased by 169.3% to 4,506,000 compared to 1,673,000forthesameperiodin2023[139]−OperatingincomeforthethreemonthsendedJune30,2024,was1,673,000 for the same period in 2023[139] - Operating income for the three months ended June 30, 2024, was 976,000, a significant improvement from a loss of 3,084,000inthesameperiodin2023,representingavarianceof131.63,084,000 in the same period in 2023, representing a variance of 131.6%[139] - The company reported a net income of 18,462,000 for the three months ended June 30, 2024, compared to a net loss of 3,103,000forthesameperiodin2023,reflectingavarianceof695.03,103,000 for the same period in 2023, reflecting a variance of 695.0%[139] - Net revenues for the six months ended June 30, 2024 increased by 11,267,000 to 16,976,000,a197.416,976,000, a 197.4% increase compared to 5,709,000 for the same period in 2023[143] - Gross profit for the six months ended June 30, 2024 was 7,134,000,anincreaseof7,134,000, an increase of 4,656,000 or 187.9% compared to 2,478,000forthesameperiodin2023[144]−NetincomeforthethreemonthsendedJune30,2024was2,478,000 for the same period in 2023[144] - Net income for the three months ended June 30, 2024 was 18,462,000, compared to a net loss of 3,103,000forthesameperiodin2023[142]−OtherincomeforthethreemonthsendedJune30,2024was3,103,000 for the same period in 2023[142] - Other income for the three months ended June 30, 2024 was 17,486,000, a significant increase from other expense of 19,000inthesameperiodof2023[141]Expenses−ResearchanddevelopmentexpensesforthethreemonthsendedJune30,2024,increasedby19,000 in the same period of 2023[141] Expenses - Research and development expenses for the three months ended June 30, 2024, increased by 38,000 to 703,000comparedto703,000 compared to 665,000 for the same period in 2023[140] - Research and development expenses for the six months ended June 30, 2024 increased by 59,000to59,000 to 1,398,000 compared to 1,339,000forthesameperiodin2023[144]−Selling,generalandadministrativeexpensesforthesixmonthsendedJune30,2024increasedby1,339,000 for the same period in 2023[144] - Selling, general and administrative expenses for the six months ended June 30, 2024 increased by 237,000 to 6,162,000comparedto6,162,000 compared to 5,925,000 for the same period in 2023[144] Liabilities and Cash Position - Total liabilities measured at fair value as of June 30, 2024, amounted to 20,389,999,comparedto20,389,999, compared to 8,626,779 as of December 31, 2023[130] - Net cash used in operating activities for the six months ended June 30, 2024 was 4,147,000,primarilyduetoanetlossof4,147,000, primarily due to a net loss of 13,502,000[151] - As of June 30, 2024, the company had cash of approximately 227,000andaccountsreceivableofapproximately227,000 and accounts receivable of approximately 3,440,000[150] - The accumulated deficit as of June 30, 2024 was 30,979,000,withaworkingcapitaldeficitofapproximately30,979,000, with a working capital deficit of approximately 6,712,000[150] Business Developments - The company received purchase orders from various federal government agency customers totaling over 13million,withpartialshipmentsmadeduringthethreemonthsendedJune30,2024[139]−ThemergerwithBYTSclosedonDecember21,2023,withAirshipAIHoldings,Inc.becomingtheaccountingacquirorunderthetickersymbol"AISP"[128]−Thecompanyanticipatesashifttowardscloud−basedsoftwaresolutions,whichwillcreateadditionalsubscriptionrevenueopportunitiesinthefuture[132]−ThecompanyplanstoexpanditsedgeAI−basedsolutions,focusingonreal−timeintelligentdecision−makingcapabilitiesforcustomers[134]LeaseAgreements−Thecompanyenteredintoaleasefor15,567squarefeetofofficeandwarehousespaceinRedmond,WA,startingOctober1,2023,withamonthlypaymentof13 million, with partial shipments made during the three months ended June 30, 2024[139] - The merger with BYTS closed on December 21, 2023, with Airship AI Holdings, Inc. becoming the accounting acquiror under the ticker symbol "AISP"[128] - The company anticipates a shift towards cloud-based software solutions, which will create additional subscription revenue opportunities in the future[132] - The company plans to expand its edge AI-based solutions, focusing on real-time intelligent decision-making capabilities for customers[134] Lease Agreements - The company entered into a lease for 15,567 square feet of office and warehouse space in Redmond, WA, starting October 1, 2023, with a monthly payment of 25,000, expiring on October 31, 2027, and a 3% increase in payment each year thereafter[157] - A lease extension was made for 3,621 square feet in Moorestown, North Carolina, with a net monthly payment of $6,488, expiring on August 29, 2024[157] Accounting Policies - The company does not have any off-balance sheet arrangements that could materially affect its financial condition, revenue, or expenses[158] - The consolidated financial statements are prepared in accordance with U.S. GAAP, requiring estimates and assumptions that could differ materially from actual results due to economic uncertainties[159] - Significant accounting policies have not materially changed from those discussed in the Annual Report for the year ended December 31, 2023[160]