AIRSHIP(AISP) - 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 quarter was $1.0 million, indicating progress towards the company's goal of being cash flow positive 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 quarter 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 Contracts - The total validated pipeline increased to approximately $150 million, including$30 million in new opportunities from a successful pilot for a federal agency[4] - Backlog as of June 30, 2024, was approximately $2.0 million, expected to be invoiced in the third and fourth quarters of 2024[3] - The company announced a six-figure contract award with a Fortune 100 transportation and e-commerce company for the Acropolis platform expansion[5] - 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] - Airship AI has onboarded several new large state and local law enforcement agencies, with over 25 agencies currently in acquisition or testing phases[5] - The company completed multiple firm-fixed price contracts worth$10.9 million for advanced integrated solutions supporting real-time intelligence operations along U.S. borders[4] Cash Flow and Expenses - 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] - Net cash used in operating activities was $(4,146,868) compared to$(737,102) in the previous period[21] - Net cash provided by financing activities amounted to $1,240,221, a decrease from$2,660,042 in the prior period[21] - 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] Liabilities and Stockholder's Equity - 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] - 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] - The weighted average shares of common stock outstanding for the six months ended June 30, 2024, were 23,220,709, compared to 22,812,048 for the same period in 2023[19] Fair Value Changes and Stock Issuance - Loss from change in fair value of warrant liability was $5,304,744[21] - Loss from change in fair value of earnout liability totaled$6,607,923[21] - Issuance of common stock for debt interest payment was $487,642[21] - Issuance of common stock for debt conversion reached$835,610[21] - Proceeds from convertible promissory note were $1,984,582[21] - Accounts payable - trade and accrued expenses decreased by$(1,426,970)[21] - Deferred revenue decreased by $(1,299,813) compared to an increase of$678,623 in the previous period[21]