Financial Performance - Net revenues for the three months ended June 30, 2024, increased by $3,631,000 to $6,401,000 compared to $2,770,000 for the same period in 2023, driven by increased product sales[139] - Gross profit for the three months ended June 30, 2024, increased by 169.3% to $4,506,000 compared to $1,673,000 for the same period in 2023[139] - Operating income for the three months ended June 30, 2024, was $976,000, a significant improvement from a loss of $3,084,000 in the same period in 2023, representing a variance of 131.6%[139] - The company reported a net income of $18,462,000 for the three months ended June 30, 2024, compared to a net loss of $3,103,000 for the same period in 2023, reflecting a variance of 695.0%[139] - Net revenues for the six months ended June 30, 2024 increased by $11,267,000 to $16,976,000, a 197.4% increase compared to $5,709,000 for the same period in 2023[143] - Gross profit for the six months ended June 30, 2024 was $7,134,000, an increase of $4,656,000 or 187.9% compared to $2,478,000 for the same period in 2023[144] - Net income for the three months ended June 30, 2024 was $18,462,000, compared to a net loss of $3,103,000 for the same period in 2023[142] - Other income for the three months ended June 30, 2024 was $17,486,000, a significant increase from other expense of $19,000 in the same period of 2023[141] Expenses - Research and development expenses for the three months ended June 30, 2024, increased by $38,000 to $703,000 compared to $665,000 for the same period in 2023[140] - Research and development expenses for the six months ended June 30, 2024 increased by $59,000 to $1,398,000 compared to $1,339,000 for the same period in 2023[144] - Selling, general and administrative expenses for the six months ended June 30, 2024 increased by $237,000 to $6,162,000 compared to $5,925,000 for the same period in 2023[144] Liabilities and Cash Position - Total liabilities measured at fair value as of June 30, 2024, amounted to $20,389,999, compared to $8,626,779 as of December 31, 2023[130] - Net cash used in operating activities for the six months ended June 30, 2024 was $4,147,000, primarily due to a net loss of $13,502,000[151] - As of June 30, 2024, the company had cash of approximately $227,000 and accounts receivable of approximately $3,440,000[150] - The accumulated deficit as of June 30, 2024 was $30,979,000, with a working capital deficit of approximately $6,712,000[150] Business Developments - The company received purchase orders from various federal government agency customers totaling over $13 million, with partial shipments made during the three months ended June 30, 2024[139] - The merger with BYTS closed on December 21, 2023, with Airship AI Holdings, Inc. becoming the accounting acquiror under the ticker symbol "AISP"[128] - The company anticipates a shift towards cloud-based software solutions, which will create additional subscription revenue opportunities in the future[132] - The company plans to expand its edge AI-based solutions, focusing on real-time intelligent decision-making capabilities for customers[134] Lease Agreements - The company entered into a lease for 15,567 square feet of office and warehouse space in Redmond, WA, starting October 1, 2023, with a monthly payment of $25,000, expiring on October 31, 2027, and a 3% increase in payment each year thereafter[157] - A lease extension was made for 3,621 square feet in Moorestown, North Carolina, with a net monthly payment of $6,488, expiring on August 29, 2024[157] Accounting Policies - The company does not have any off-balance sheet arrangements that could materially affect its financial condition, revenue, or expenses[158] - The consolidated financial statements are prepared in accordance with U.S. GAAP, requiring estimates and assumptions that could differ materially from actual results due to economic uncertainties[159] - Significant accounting policies have not materially changed from those discussed in the Annual Report for the year ended December 31, 2023[160]
AIRSHIP(AISP) - 2024 Q2 - Quarterly Report