Byrna Technologies (BYRN) - 2025 Q1 - Quarterly Report

Financial Performance - Total revenue for the three months ended February 28, 2025, was $26.19 million, a 57.3$16.65 million for the same period in 2024[44]. - E-commerce revenue (direct to consumers) reached $20.16 million, up 53.7$13.10 million in the prior year[44]. - Wholesale revenue (dealer/distributors) increased to $6.03 million, a 69.5$3.55 million in the previous year[44]. - For the three months ended February 28, 2025, the Company recorded net income of $1.662 million, compared to$17,000 for the same period in 2024[64]. - The Company reported total revenue of $26.190 million for the three months ended February 28, 2025, up from$16.654 million for the same period in 2024, representing a year-over-year increase of approximately 57.5%[83]. Advertising and Expenses - For the three months ended February 28, 2025, the company recorded advertising costs of approximately $4.0 million, compared to$2.8 million for the same period in 2024, representing a 42.9% increase[32]. - Total stock-based compensation expense for the three months ended February 28, 2025, was $0.8 million, a decrease from$0.9 million in the same period in 2024[57]. - Stock-based compensation expense for options granted was $0.4 million for both the three months ended February 28, 2025, and February 29, 2024[61]. - The total lease cost for the three months ended February 28, 2025, was$200,000, compared to $160,000 for the same period in 2024[77]. Assets and Investments - As of February 28, 2025, the total fair value of marketable debt securities was$15.954 million, up from $20.208 million as of November 30, 2024, indicating a decrease of 21.2$11.620 million as of February 28, 2025[25]. - The Company loaned $1.6 million to Byrna LATAM in January 2023, with quarterly reviews to assess the need for credit loss estimates based on various financial factors[88]. - The Company's marketable debt securities include U.S. Treasury Securities and Corporate Bonds, with an investment policy that limits exposure to any one type of investment and requires a minimum rating of AA-/Aa3[89]. Liabilities and Revenue Recognition - The balance of deferred revenue decreased to$0.5 million as of February 28, 2025, down from $2.7 million in the prior year[42]. - The total allowance for expected credit losses was less than$0.1 million as of February 28, 2025, compared to $0.6 million in the same period last year[40]. - Accounts receivable as of February 28, 2025, was$2.9 million, consistent with the previous periods[39]. Ownership and Equity - The company acquired a 51% ownership interest in Byrna LATAM for $0.5 million in January 2023, which was later sold for$1 on August 19, 2024[29][30]. - The loan to Byrna LATAM was amended to a fixed amount of $1,431,112 plus accrued interest of$203,373, totaling $1,634,485, with repayment starting on August 19, 2025[31]. - The Company had 818,033 unvested and outstanding RSUs as of February 28, 2025, down from 915,230 as of November 30, 2024[60]. - The weighted-average number of shares used in computing diluted net income per share increased to 24,098,635 for the three months ended February 28, 2025, from 22,838,827 in the prior year[64]. Regulatory and Accounting Changes - The company anticipates that the adoption of ASU 2023-07 will not have a material impact on its consolidated financial statements[19]. - The company is currently evaluating the effect of ASU 2023-09 on its financial statements and disclosures, which is required to be effective for fiscal years beginning after December 15, 2024[20]. Foreign Operations - The Company recorded a translation adjustment loss of$0.1 million related to the South African rand during the three months ended February 28, 2025[85]. - The Company's South African subsidiary revenues, cost of goods sold, operating costs, and capital expenditures are denominated in South African rand, leading to increased volatility in sales and net earnings when translated into U.S. dollars[86]. Other Financial Metrics - The Company recorded interest income related to the loan receivable of less than $0.1 million for the three months ended February 28, 2025[31]. - Future lease payments under non-cancelable operating leases total$3.006 million as of February 28, 2025[78]. - The Company recorded an income tax expense of $0.1 million for the three months ended February 28, 2025, with an effective tax rate of 6.4$3.7 million with vendors for machinery and equipment as of February 28, 2025[47]. - Inventory increased to $23.18 million as of February 28, 2025, from$19.97 million as of November 30, 2024[45].