Workflow
BYTE Acquisition (BYTS) - 2023 Q4 - Annual Results
BYTSBYTE Acquisition (BYTS)2024-04-01 21:01

Financial Performance - FY 2023 revenue was 12.3million,withagrossprofitof12.3 million, with a gross profit of 5.8 million and a gross margin of 47%[24] - Net income for FY 2023 was 16.4million,primarilydueto16.4 million, primarily due to 23 million in other income from changes in warrant and earnout liabilities[24] - Operating loss for FY 2023 was 6.6million,mainlydueto6.6 million, mainly due to 2.9 million in stock-based compensation[24] - Total net revenues for the year ended December 31, 2023, were 12,299,584,adecreaseof15.512,299,584, a decrease of 15.5% from 14,549,141 in 2022[34] - Gross profit for the year was 5,764,317,down31.55,764,317, down 31.5% from 8,421,013 in the previous year[34] - Operating loss increased to (6,640,365)in2023,comparedto(6,640,365) in 2023, compared to (2,823,813) in 2022[34] - Net income for 2023 was 16,371,134,asignificantimprovementfromanetlossof16,371,134, a significant improvement from a net loss of (487,493) in 2022[34] - Basic net income per share for 2023 was 1.20,comparedtoalossof1.20, compared to a loss of (0.04) per share in 2022[34] Assets and Liabilities - Total assets as of December 31, 2023, were 6,982,575,comparedto6,982,575, compared to 3,909,096 in 2022[33] - Total liabilities increased to 23,575,140,upfrom23,575,140, up from 12,267,507 in the previous year[33] - The company reported a total stockholders' deficit of (16,592,565)asofDecember31,2023,comparedto(16,592,565) as of December 31, 2023, compared to (8,358,411) in 2022[33] Cash Flow and Financing - Cash and cash equivalents stood at 3.1millionasofDecember31,2023[24]−Netcashusedinoperatingactivitieswas3.1 million as of December 31, 2023[24] - Net cash used in operating activities was (3,291,333) compared to (2,902,659)inthepreviousperiod,indicatinganincreaseincashoutflow[36]−Netcashprovidedbyfinancingactivitiesamountedto(2,902,659) in the previous period, indicating an increase in cash outflow[36] - Net cash provided by financing activities amounted to 6,119,834, up from 1,866,457inthepriorperiod,reflectingstrongfinancingsupport[36]−Cashandcashequivalentsattheendoftheyearreached1,866,457 in the prior period, reflecting strong financing support[36] - Cash and cash equivalents at the end of the year reached 3,124,413, a significant increase from 298,614atthebeginningoftheyear[36]−Proceedsfromconvertiblepromissorynoteswere298,614 at the beginning of the year[36] - Proceeds from convertible promissory notes were 2,584,582, contributing to the financing activities[36] - The total cash inflow from reverse recapitalization was 2,809,792,enhancingthecompany′sliquidityposition[36]OperationalHighlights−Thecompanyhasavalidatedpipelineofapproximately2,809,792, enhancing the company's liquidity position[36] Operational Highlights - The company has a validated pipeline of approximately 140 million expected to drive triple-digit revenue growth in FY 2024[3] - Backlog increased to approximately 11.8million,includingordersfromtheU.S.DepartmentofHomelandSecurityandDepartmentofJustice[3]−Newproductlaunchesincludeturn−keysolutionsforgovernmentcustomersleveragingtheOutpostAIedgeappliance[4]−FocusonexpandingcustomeracquisitionwithU.S.federalandstatelawenforcementagencies[4]−Thecompanyaimstoimprovesourcingandsupplychainmanagementtodrivemarginexpansion[6]Expenses−Researchanddevelopmentexpenseswere11.8 million, including orders from the U.S. Department of Homeland Security and Department of Justice[3] - New product launches include turn-key solutions for government customers leveraging the Outpost AI edge appliance[4] - Focus on expanding customer acquisition with U.S. federal and state law enforcement agencies[4] - The company aims to improve sourcing and supply chain management to drive margin expansion[6] Expenses - Research and development expenses were 2,729,492, a decrease of 24.5% from 3,614,814in2022[34]−Selling,generalandadministrativeexpensesroseto3,614,814 in 2022[34] - Selling, general and administrative expenses rose to 9,675,190, up 26.8% from 7,630,012intheprioryear[34]MarketActivity−ThecompanycompletedamergerandbegantradingonNasdaqundertheticker"AISP"onDecember22,2023[2]FinancialInstruments−Thecompanyrecognizedagainfromthechangeinfairvalueofearnoutliabilitytotaling7,630,012 in the prior year[34] Market Activity - The company completed a merger and began trading on Nasdaq under the ticker "AISP" on December 22, 2023[2] Financial Instruments - The company recognized a gain from the change in fair value of earnout liability totaling (21,976,349), impacting overall financial performance[36] - The company reported a loss from the change in fair value of convertible notes amounting to 240,784,indicatingpotentialvolatilityinfinancialinstruments[36]−Interestpaidduringtheperiodwas240,784, indicating potential volatility in financial instruments[36] - Interest paid during the period was 21,438, slightly higher than 19,950inthepreviousperiod,reflectingincreasedborrowingcosts[36]−Thecompanyexperiencedadecreaseinaccountsreceivableby19,950 in the previous period, reflecting increased borrowing costs[36] - The company experienced a decrease in accounts receivable by (943,152), which may indicate improved cash collection efforts[36] - The effect from exchange rate on cash was $(2,702), showing minor impact from currency fluctuations[36]