AIRSHIP(AISP) - 2024 Q3 - Quarterly Report

Financial Performance - Net revenues for the three months ended September 30, 2024, increased by $484,000 to$2,868,000 compared to $2,384,000 for the same period in 2023, driven by increased product sales[191]. - Net revenues for the nine months ended September 30, 2024 increased by$11,751,000 to $19,844,000, a growth of 145.2$8,093,000 for the same period in 2023[198]. - Gross profit for the three months ended September 30, 2024, was $2,154,000, representing a 34.5$1,602,000 in the same period of 2023[191]. - Gross profit for the nine months ended September 30, 2024 was $9,288,000, up 127.6$4,080,000 for the same period in 2023[198]. - The company reported a net income of $6,214,000 for the three months ended September 30, 2024, compared to a net loss of$1,667,000 in the same period of 2023, marking a 472.8% improvement[191]. - Other income for the three months ended September 30, 2024 was $7,801,000, significantly higher than other expense of$438,000 in the prior year[195]. Expenses - Research and development expenses decreased by 55.9% to $1,074,000 for the three months ended September 30, 2024, compared to$689,000 in the same period of 2023[191]. - Research and development expenses for the nine months ended September 30, 2024 increased by $444,000 to$2,472,000, a rise of 21.9% compared to $2,028,000 in 2023[200]. - Total operating expenses for the three months ended September 30, 2024, were$3,741,000, a decrease of 32.1% from $2,831,000 in the same period of 2023[191]. - Selling, general and administrative expenses for the nine months ended September 30, 2024 rose by$762,000 to $8,830,000, an increase of 9.4$8,068,000 in the previous year[201]. Cash Flow and Financing - Net cash used in operating activities for the nine months ended September 30, 2024 was $4,398,000, primarily due to a net loss of$7,289,000[207]. - Net cash provided by financing activities for the nine months ended September 30, 2024 was $7,780,000, compared to$2,710,000 in the same period of 2023[209]. - The company entered into a Master Loan Agreement providing for additional funding of up to $1,500,000 with an interest rate of 6$5,512,000 during the three months ended September 30, 2024[191]. - The fair value of warrant liability increased by $2,471,000 during the three months ended September 30, 2024[191]. - The company has total contractual cash obligations of$1,138,331, with $359,746 due within one year[215]. - The obligations under the Platinum convertible note are secured by a blanket lien on all assets, with an Amended and Restated Security Agreement and Guaranty dated February 2, 2024[215]. Assets and Leases - A new lease for 15,567 square feet of office and warehouse space in Redmond, WA, commenced on October 1, 2023, with a monthly payment of$25,000, increasing by 3% annually[215]. - The company extended an office lease in Moorestown, North Carolina, for 3,621 square feet, with a net monthly payment of $6,488, extended to February 28, 2025[216]. Accounting and Reporting - The company's consolidated financial statements are prepared in accordance with U.S. GAAP, requiring estimates and assumptions that could differ materially from actual results[218]. - Significant accounting policies have not materially changed from those discussed in the Annual Report for the year ended December 31, 2023[220]. - The company does not have applicable quantitative and qualitative disclosures about market risk as it is classified as a smaller reporting company[221]. - There are no off-balance sheet arrangements that are likely to materially affect the company's financial condition or results of operations[217].