Redwire (RDW) - 2024 Q4 - Annual Report

Financial Performance - Revenues for the year ended December 31, 2024, increased to $304.1 million from$243.8 million in 2023, representing a growth of approximately 24.7%[346] - Total revenues for the year ended December 31, 2024, were $304,101,000, representing a 24.6$243,800,000 in 2023[519] - Gross profit decreased to $44.5 million in 2024 from$58.0 million in 2023, a decline of about 23.4%[346] - Operating loss widened to $(42.2) million in 2024 compared to$(15.5) million in 2023[346] - Net loss attributable to Redwire Corporation increased to $(114.3) million in 2024 from$(27.3) million in 2023, reflecting a significant increase of 318.5%[346] - Basic and diluted net income (loss) per common share was $(2.35) for 2024, compared to$(0.73) for 2023[346] - Total comprehensive loss for 2024 was $(115.7) million, compared to$(26.4) million in 2023[346] Assets and Liabilities - Total assets increased to $292.6 million as of December 31, 2024, up from$271.3 million in 2023, representing a growth of 7.9%[339] - Total current liabilities increased significantly to $149.3 million in 2024, up from$112.0 million in 2023, reflecting a rise of 33.3%[339] - Long-term debt rose to $124.5 million in 2024, compared to$86.8 million in 2023, indicating a 43.5% increase[339] - The company reported an accumulated deficit of $348.1 million as of December 31, 2024, compared to$233.8 million in 2023, which is an increase of 48.8%[341] - Total shareholders' equity deficit widened to $188.7 million in 2024 from$43.5 million in 2023, representing a significant increase of 333.4%[341] Cash Flow and Investments - Cash and cash equivalents rose to $49.1 million in 2024, compared to$30.3 million in 2023, marking an increase of 62.2%[339] - Cash flows from operating activities resulted in a net cash outflow of $17.3 million for the year ended December 31, 2024, compared to a net cash inflow of$1.2 million in 2023[352] - Proceeds received from debt increased to $46.0 million in 2024, compared to$36.7 million in 2023[352] - The company incurred equity-based compensation expense of $11.3 million in 2024, compared to$8.7 million in 2023[352] - The company acquired businesses for a net cash outflow of $0.9 million in 2024[352] Revenue Recognition and Contracts - The Company uses a five-step model for revenue recognition, ensuring that performance obligations are satisfied before revenue is recognized[399] - The Company’s long-term contracts typically recognize revenue using the input method, measuring progress based on costs incurred[405] - Contract balances result from the timing of revenue recognized, billings, and cash collections, with contract assets representing revenue recognized in excess of amounts invoiced[410] - The company recognizes anticipated contract losses as soon as they become known and estimable for long-term contracts[405] Research and Development - Research and development expenses rose to$6.1 million in 2024 from $5.0 million in 2023, an increase of 22.9$71.2 million in 2024, compared to $65.8 million in 2023, marking an increase of 8.2$61,788,000, with a gross carrying amount of $87,708,000 and accumulated amortization of$25,920,000[451] - The amortization expense for intangible assets for the year ended December 31, 2024, was $7,625,000, compared to$7,212,000 for the year ended December 31, 2023[454] Lease Obligations - Total lease costs for the year ended December 31, 2024, were $5,800 million, an increase of 15$5,042 million in 2023[471] - Operating lease costs amounted to $4,637 million in 2024, up from$4,251 million in 2023, reflecting a 9% increase[471] - The total right-of-use assets increased to $15,277 million in 2024 from$13,181 million in 2023, representing a 16% growth[474] Tax and Legal Matters - The company recorded a total income tax expense (benefit) of $(2,020) million for the year ended December 31, 2024, compared to$(486) million in 2023[484] - As of December 31, 2024, the company had $130.6 million of net operating losses, resulting in deferred tax assets of$27.4 million for U.S. federal taxes[486] - The Company recognized a loss contingency of $8.0 million related to a settlement agreement, with an anticipated insurance recovery of$1.0 million as of December 31, 2024[492] Shareholder Equity - The balance of Series A Convertible Preferred Stock increased from 93,890.20 shares valued at $96.1 million as of December 31, 2023, to 108,649.30 shares valued at$136.8 million as of December 31, 2024[497] - The liquidation preference of the Convertible Preferred Stock was $599.4 million as of December 31, 2024, compared to$187.8 million as of December 31, 2023[509]