Financial Performance - FY 2023 revenue was $12.3 million, with a backlog of $11.8 million driven by demand from Fortune 500 customers and U.S. government agencies [2]. - Gross profit for FY 2023 was $5.8 million, resulting in a gross margin percentage of 47% [6]. - Operating loss for FY 2023 was $6.6 million, primarily due to $2.9 million in stock-based compensation [6]. - Net income for FY 2023 was $16.4 million, reflecting other income of $23 million from changes in warrant and earnout liabilities [6]. - Net revenues for the year ended December 31, 2023, were $12,299,584, a decrease of 15.4% from $14,549,141 in 2022 [24]. - Gross profit for 2023 was $5,764,317, down from $8,421,013 in the previous year, reflecting a gross margin decline [24]. - Operating loss increased to $(6,640,365) in 2023 compared to $(2,823,813) in 2022, indicating a worsening operational performance [24]. - Net income for 2023 was $16,371,134, a significant improvement from a net loss of $(487,493) in 2022 [24]. - Total other income for 2023 was $23,011,499, compared to $2,346,320 in 2022, primarily driven by gains from changes in fair value of warrants and earnout liability [24]. - The company reported a basic net income per share of $1.20 for 2023, compared to a loss of $(0.04) per share in 2022 [24]. - The weighted average shares of common stock outstanding increased to 13,671,376 in 2023 from 13,387,344 in 2022, reflecting potential dilution [24]. Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2023, were $3.1 million, with net cash used in operating activities increasing to $3.3 million [6]. - Cash and cash equivalents at the end of 2023 were $3,124,413, up from $298,614 at the end of 2022, indicating improved liquidity [27]. Future Outlook - The validated pipeline for 2024 is approximately $140 million, consisting of single and multi-year opportunities across various customer verticals [6]. - The company expects triple-digit revenue growth and positive cash flow in FY 2024, supported by orders from the DHS and DOJ [16]. Operational Changes - Research and development expenses decreased to $2,729,492 in 2023 from $3,614,814 in 2022, reflecting a strategic focus on cost management [24]. - Selling, general and administrative expenses rose to $9,675,190 in 2023, up from $7,630,012 in 2022, indicating increased operational costs [24]. - The company aims to improve sourcing and supply chain management to drive continued margin expansion [16]. Mergers and Product Launches - Airship AI completed its merger and began trading on Nasdaq under the ticker "AISP" on December 22, 2023 [2]. - New product launches include next-generation Outpost AI edge appliance and turn-key solutions for government customers [16].
AIRSHIP(AISP) - 2023 Q4 - Annual Results