Financial Performance - Total revenues for 2024 reached $98.613 million, a 47.8% increase from $66.708 million in 2023 [389]. - Gross income improved to $41.138 million in 2024, compared to $25.368 million in 2023, reflecting a gross margin increase [389]. - Net loss for 2024 was $15.567 million, significantly reduced from a net loss of $77.358 million in 2023 [389]. - The net loss for the year ended December 31, 2024, was $15.567 million, a significant improvement compared to a net loss of $77.358 million in 2023, representing an 80% reduction in losses [396]. - Cash provided by operating activities was $9.355 million in 2024, compared to cash used in operating activities of $26.808 million in 2023, indicating a positive cash flow shift [396]. - Selling, general and administrative expenses decreased to $35.820 million in 2024 from $82.863 million in 2023, indicating cost management efforts [389]. - The company’s accumulated deficit increased to $429.239 million in 2024 from $413.672 million in 2023, reflecting ongoing operational challenges [394]. Assets and Liabilities - Total current assets increased to $63.809 million in 2024, up from $45.195 million in 2023, driven by higher cash and cash equivalents [386]. - Total liabilities decreased to $237.332 million in 2024 from $246.539 million in 2023, indicating improved financial stability [386]. - Total assets grew to $290.809 million in 2024, compared to $273.470 million in 2023, showcasing overall growth [386]. - Cash and cash equivalents rose to $39.336 million in 2024, up from $22.956 million in 2023, enhancing liquidity [386]. Compliance and Governance - The company is in compliance with financial covenants as of December 31, 2024, but future compliance is uncertain [177]. - The company has increased legal and financial compliance costs due to public company requirements, which may strain resources and divert management's attention [191]. - The company may face challenges in maintaining effective internal controls and financial reporting as it transitions from a private to a public entity [194]. - The company has identified two material weaknesses in its internal control over financial reporting, specifically related to complex transaction accounting and IT system user access monitoring [199]. - The company is in the process of remediating these material weaknesses and has committed to improving its internal control over financial reporting [201]. - The remediation process may take an indeterminate amount of time, and there are no assurances that future controls will be adequate to prevent errors or irregularities [202]. Shareholder and Stock Information - The Company does not currently intend to pay dividends on Common Stock, limiting returns to stock appreciation [230]. - The company may issue additional shares of Common Stock or other equity securities, which could dilute existing ownership interests and depress market prices [208]. - Significant stockholders, including affiliates of Blackstone Inc. who own 17.3% of the outstanding Common Stock, could influence corporate decisions and operations [224]. - The exercise price for outstanding Warrants is $11.50 per share, with 26,649,874 shares eligible for future resale if exercised [233]. - The Company has 315,789.47 shares of Series A Preferred Stock outstanding, with a conversion price of $11.00 per share and a dividend rate that increases from 7.0% to 11.0% over time [219]. Revenue Recognition and Contracts - The company recognizes revenue from aerial firefighting services under ASC 606, primarily through contracts with government agencies [442]. - The company recognized revenue over time using the cost-to-cost method, reflecting the performance obligations satisfied [448]. - The company has remaining unsatisfied performance obligations of $8.1 million, expected to be recognized as revenue within the next twelve months [455]. - Fire suppression revenue increased to $66.765 million in 2024 from $56.022 million in 2023, representing a 19.8% growth [457]. - The company’s MRO revenue was $13.918 million in 2024, a significant increase from $48,000 in 2023 [457]. Acquisitions and Goodwill - The Company completed the acquisition of Flight Test & Mechanical Solutions, Inc. for a total initially estimated consideration of $21.2 million, with $19.0 million paid in Common Stock at closing [488]. - Goodwill from the FMS Acquisition amounts to $7.6 million, primarily due to the assembled workforce and expected synergies, with none deductible for tax purposes [495]. - The total purchase price for the FMS Acquisition was $21.2 million, adjusted to $16.3 million after purchase price allocation adjustments [494]. - The Ignis Acquisition was completed for a total consideration of $11.6 million, with $3.3 million paid at closing and $8.3 million contingent on operational milestones [496]. - Goodwill from the Ignis Acquisition is $10.7 million, reflecting expected synergies and an assembled workforce, with none deductible for tax purposes [500]. Risks and Uncertainties - The company has incurred significant losses since inception and is not currently profitable, making future operating results difficult to predict [190]. - The company may incur additional debt in the future, which could impair its ability to obtain further financing and increase cash resource demands [178]. - Changes in tax laws, such as the Inflation Reduction Act of 2022, may impose a 1% excise tax on share repurchases and a 15% minimum tax on large corporations, impacting the Company's effective tax rate and operations [245]. - There is a risk of state tax authorities asserting a nexus for state income tax purposes, which could lead to additional tax liabilities and adversely affect the Company's results of operations [246].
Bridger Aerospace(BAER) - 2024 Q4 - Annual Report