Financial Performance - Revenues for the nine months ended September 30, 2019, increased by $3,124,996, or 314%, to $4,120,834 compared to $995,838 for the same period in 2018[119] - Gross profit for the nine months ended September 30, 2019, was $2,351,228, an increase of $1,893,007, or 413%, from $458,221 in the same period in 2018, with gross profit margins of 57% and 46% respectively[121] - Net loss decreased by $3,469,192, or 88%, to $475,064 for the nine months ended September 30, 2019, from a net loss of $3,944,256 for the same period in 2018[125] - The company recognized $4.1 million in gross revenue through September 30, 2019, and expects to recognize substantially all remaining revenue by the end of 2019, representing a 144% increase over the approximately $2.7 million gross revenue reported for the entire twelve months of 2018[104] Expenses and Cash Flow - General and administrative expenses decreased by $1,425,764, or 34%, to $2,732,430 for the nine months ended September 30, 2019, from $4,158,194 for the same period in 2018[122] - The company had $1,624,758 in cash as of September 30, 2019, compared to $2,282,365 at December 31, 2018, a decrease of $657,607[126] - Net cash used in operating activities was $2,461,331 for the nine months ended September 30, 2019, a decrease of 7% from $2,291,315 in the same period of 2018[137] - The company invested $104,026 in investing activities during the nine months ended September 30, 2019, compared to $54,721 net cash provided in the same period of 2018[138] - Net cash provided by financing activities was $1,907,750 for the nine months ended September 30, 2019, compared to $1,800,000 in the same period of 2018[139] Assets and Liabilities - Total current assets increased to $4,470,135 with total current liabilities of $2,595,287, resulting in working capital of $1,874,848 at September 30, 2019, compared to $212,879 at December 31, 2018[127] - As of September 30, 2019, the company reported cash of $1,624,758 and working capital of $1,874,848, with a net loss of $475,064 for the nine months ended[128] - The company has $2,000,000 drawn against the CNB Line of Credit, with accrued interest of $8,097 recorded as of September 30, 2019[132] - The company is dependent on significant shareholders to provide or loan funds to meet working capital needs, as there are currently no agreements for additional financing[131] - As of September 30, 2019, the company had an accumulated deficit of $38,947,154[134] Business Development - The company announced a $3.8 million WASP award and a $1.1 million award for WASP Lite systems, contributing to over $6.6 million in new business in the first nine months of 2019[104] - The company plans to continue considering strategic transactions, including acquisitions and joint ventures, to expand its business[108] - The company delivered upgraded real-time video distribution technology for U.S. Army WASP aerostats and received a patent allowance for converting battery-powered drones into ground-powered tethered drones[106] - The company expects a substantial increase in revenues for the remainder of 2019, supported by a $3.7 million order for aerostats announced in December 2018 and additional orders totaling $2.8 million in 2019[128] - The company raised over $4 million through stock sales in December 2018, providing ample working capital for WASP system production[128]
COMSovereign (COMS) - 2019 Q3 - Quarterly Report