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BYTE Acquisition (BYTS) - 2024 Q1 - Quarterly Report
BYTSBYTE Acquisition (BYTS)2024-05-15 12:31

Financial Performance - Net revenues for Q1 2024 increased by 7,636,000to7,636,000 to 10,575,000 compared to 2,939,000inQ12023,drivenbyincreasedproductsalesandover2,939,000 in Q1 2023, driven by increased product sales and over 13 million in purchase orders from federal government customers [283]. - Selling, general and administrative expenses rose by 1,503,000to1,503,000 to 3,335,000 in Q1 2024, up from 1,832,000inQ12023,primarilyduetoincreasedinsurancecosts,professionalfeesrelatedtothemerger,andotheroperatingexpenses[284].−Thecompanyreportedalossfromchangesinfairvalueofwarrantliabilityamountingto1,832,000 in Q1 2023, primarily due to increased insurance costs, professional fees related to the merger, and other operating expenses [284]. - The company reported a loss from changes in fair value of warrant liability amounting to 6,847,000 and an earnout liability loss of 21,485,000forthethreemonthsendedMarch31,2024[285].LiquidityandFinancialPosition−Thecompanyhasaliquiditypositionthatallowsittooperateforatleastthenexttwelvemonths,supportedbyexistingassets,liabilities,andabacklogoforderstotalingover21,485,000 for the three months ended March 31, 2024 [285]. Liquidity and Financial Position - The company has a liquidity position that allows it to operate for at least the next twelve months, supported by existing assets, liabilities, and a backlog of orders totaling over 13 million [286]. - As of March 31, 2024, the company had an earnout liability of 26,618,278andseniorsecuredconvertiblepromissorynotestotaling26,618,278 and senior secured convertible promissory notes totaling 4,204,743 [279]. - The company has 515,000 private placement warrants and 16,159,112 public warrants outstanding, all exercisable at 11.50pershare[280].StrategicFocusandOperations−ThecompanyisfocusedonexpandingitsedgeAI−basedsolutions,withastrategyaimedattransitioningdatamanagementtotheedge,enhancingefficiencyandcostsavingsforcustomers[291].−ThecompanybegansellingAI−basedsolutionsinlate2022,withafocusontrainingnewmodelsforreal−timedataextractionattheedge[291].−Thecompany’soperationalstrategyincludesmeasuringprogressthroughthesalesofedgeAIhardwaredevicesandthegrowthofitsanalyticcapabilities[291].LeaseandOfficeOperations−Thecompany’sleaseforitsMoorestown,NorthCarolinaofficewasextended,withanewmonthlypaymentof11.50 per share [280]. Strategic Focus and Operations - The company is focused on expanding its edge AI-based solutions, with a strategy aimed at transitioning data management to the edge, enhancing efficiency and cost savings for customers [291]. - The company began selling AI-based solutions in late 2022, with a focus on training new models for real-time data extraction at the edge [291]. - The company’s operational strategy includes measuring progress through the sales of edge AI hardware devices and the growth of its analytic capabilities [291]. Lease and Office Operations - The company’s lease for its Moorestown, North Carolina office was extended, with a new monthly payment of 6,488 effective February 29, 2024 [290].