Financial Performance - Net revenues for the three months ended September 30, 2024, increased by $484,000 to $2,868,000 compared to $2,384,000 for the same period in 2023, driven by increased product sales[191] - Gross profit for the three months ended September 30, 2024, was $2,154,000, representing a 34.5% increase from $1,602,000 in the same period of 2023[191] - The company reported a net income of $6,214,000 for the three months ended September 30, 2024, compared to a net loss of $1,667,000 in the same period of 2023, marking a 472.8% improvement[191] - Net revenues for the nine months ended September 30, 2024 increased by $11,751,000 to $19,844,000, a growth of 145.2% compared to $8,093,000 for the same period in 2023, driven by increased product sales[198] - Gross profit for the nine months ended September 30, 2024 was $9,288,000, up 127.6% from $4,080,000 in the same period of 2023[198] - Other income for the three months ended September 30, 2024 was $7,801,000, a significant increase from other expense of $438,000 in the same period of 2023[195] Expenses - Research and development expenses decreased by 55.9% to $1,074,000 for the three months ended September 30, 2024, compared to $689,000 in the prior year[191] - Total operating expenses for the three months ended September 30, 2024, were $3,741,000, a decrease of 32.1% from $2,831,000 in the same period of 2023[191] - Research and development expenses for the nine months ended September 30, 2024 increased by $444,000 to $2,472,000, a rise of 21.9% compared to $2,028,000 for the same period in 2023[200] - Selling, general and administrative expenses for the nine months ended September 30, 2024 increased by $762,000 to $8,830,000, a 9.4% increase from $8,068,000 in the prior year[201] Cash Flow and Financing - Net cash used in operating activities for the nine months ended September 30, 2024 was $4,398,000, primarily due to a net loss of $7,289,000[207] - Net cash provided by financing activities for the nine months ended September 30, 2024 was $7,780,000, consisting mainly of proceeds from an offering[209] - The company entered into a Master Loan Agreement providing for additional funding of up to $1,500,000, with an interest rate of 6%[178] Liabilities and Obligations - The fair value of earnout liability increased by $5,512,000 during the three months ended September 30, 2024, compared to no prior gain in the same period[191] - The fair value of warrant liability increased by $2,471,000 during the three months ended September 30, 2024, compared to no prior gain in the same period[191] - The company had an accumulated deficit of $24.8 million as of September 30, 2024, but determined it has no substantial doubt about its ability to continue as a going concern[206] - The company has total contractual cash obligations of $1,138,331, with $359,746 due within one year[215] Lease Agreements - A new lease for 15,567 square feet of office and warehouse space in Redmond, WA, commenced on October 1, 2023, with a monthly payment of $25,000, increasing by 3% annually[215] - The company extended an office lease in Moorestown, North Carolina, for 3,621 square feet, with a net monthly payment of $6,488, extended to February 28, 2025[216] Accounting and Reporting - The company's consolidated financial statements are prepared in accordance with U.S. GAAP, requiring estimates and assumptions that could differ materially from actual results[218] - Significant accounting policies have not materially changed from those discussed in the Annual Report for the year ended December 31, 2023[220] - The company does not have applicable quantitative and qualitative disclosures about market risk as it is classified as a smaller reporting company[221]
BYTE Acquisition (BYTS) - 2024 Q3 - Quarterly Report