BYTE Acquisition (BYTS) - 2024 Q2 - Quarterly Results

Financial Performance - Second quarter 2024 net revenues reached $6.4 million, with a gross profit of$4.5 million and a gross margin of 70%[2] - Operating income for the second quarter was $1.0 million, indicating progress towards achieving cash flow positivity for the full year[2] - First half 2024 combined net revenue totaled$17.0 million, representing 128% of the company's total revenue for the full year 2023[1] - Total net revenues for the three months ended June 30, 2024, reached $6,401,031, a significant increase from$2,770,018 in the same period of 2023, representing a growth of approximately 131%[19] - Gross profit for the six months ended June 30, 2024, was $7,134,334, compared to$2,477,616 for the same period in 2023, indicating a year-over-year increase of about 187%[19] - Operating income for the three months ended June 30, 2024, was $976,316, a turnaround from an operating loss of$3,084,512 in the same period of 2023[19] - The company reported a net income of $18,461,995 for the three months ended June 30, 2024, compared to a net loss of$3,103,279 in the same period of 2023[19] Revenue Growth and Pipeline - The total validated pipeline increased to approximately $150 million, including$30 million in new opportunities from a successful pilot for a federal agency[4] - The company anticipates triple-digit revenue growth and positive cash flow for calendar year 2024, supported by a strong pipeline and improving gross profit margins[6] Expenses and Liabilities - Total liabilities increased to $33,271,809 as of June 30, 2024, up from$23,575,140 at the end of 2023, reflecting a rise of approximately 41%[17] - Cash and cash equivalents decreased to $226,750 as of June 30, 2024, from$3,124,413 at the end of 2023, indicating a decline of about 93%[17] - Research and development expenses for the six months ended June 30, 2024, were $1,398,137, slightly higher than$1,339,283 for the same period in 2023[19] - Selling, general, and administrative expenses decreased to $6,162,414 for the six months ended June 30, 2024, down from$5,925,016 in the same period of 2023[19] - The company’s total stockholders' deficit increased to $(27,966,537) as of June 30, 2024, compared to$(17,487,227) at the end of 2023[17] Cash Flow and Financing Activities - Net cash used in operating activities amounted to $(4,146,868) with a decrease of$(737,102) compared to the previous period[21] - Net cash provided by financing activities was $1,240,221, a decrease of$1,419,821 from the previous period[21] - Cash and cash equivalents at the end of the period totaled $226,750, down from$3,124,413 at the beginning of the period[21] - The company recognized a loss from the change in fair value of warrant liability amounting to $5,304,744[21] - The company reported a loss from the change in fair value of earnout liability of$6,607,923[21] - The issuance of common stock for debt conversion was $835,610[21] - The company had a tax payment of$2,410 during the period[21] - The proceeds from convertible promissory notes were $1,984,582[21] - Advances from founders, net, were$800,000, a decrease from $1,100,000 in the previous period[21] - The effect from exchange rate on cash was$8,984[21] Product Development and Partnerships - A new Outpost AI Edge Appliance was announced, featuring an integrated 5G modem for secure data transmission and analytics[5] - Airship AI has onboarded over 25 new law enforcement agencies for its Acropolis software ecosystem, with several in the acquisition or testing phase[5] - The company entered a partnership with T-Mobile U.S. to enhance secure data transmission capabilities for its Outpost AI platform[5] Backlog and Contracts - Backlog as of June 30, 2024, was approximately $2.0 million, expected to be invoiced in the latter half of 2024[3] - The company completed delivery of contracts worth$10.9 million for advanced integrated solutions supporting real-time intelligence operations along U.S. borders[4]