MultiSensor AI(US:MSAI)2025-05-13 20:05Financial Performance - For the three months ended March 31, 2025, MultiSensor AI Holdings, Inc. reported a net revenue of $1,170,000, a decrease of 48.5% compared to $2,275,000 for the same period in 2024[19] - The company incurred a net loss of $4,436,000 for Q1 2025, compared to a net loss of $3,922,000 in Q1 2024, reflecting a 13.1% increase in losses year-over-year[19] - For the three months ended March 31, 2025, total revenue was $1,170 million, a decrease of 48.5% from $2,275 million in the same period of 2024[37] - The net loss for the three months ended March 31, 2025, was $4.44 million, compared to a net loss of $3.92 million in the same period of 2024, representing a 13% increase in losses[83] Revenue Breakdown - Hardware revenue was $753 million, down 62.8% from $2,022 million in Q1 2024; Software revenue increased to $251 million from $200 million, and Services revenue rose to $166 million from $53 million[37] - One customer accounted for 20% or $229 million of total net revenue for the three months ended March 31, 2025[34] - The Company sold approximately 450 thermal sensors in Q1 2024, contributing to the revenue decline due to a decrease in sensor hardware sales[83] - Software revenue grew by 26% to $0.25 million, while services revenue increased by 213% to $0.17 million, reflecting the Company's focus on expanding its SaaS offerings[84] Assets and Liabilities - Total current assets increased to $11,189,000 as of March 31, 2025, up from $10,516,000 at the end of 2024, representing a growth of 6.4%[17] - Total liabilities rose to $3,500,000 as of March 31, 2025, compared to $3,190,000 at the end of 2024, indicating an increase of 9.7%[17] - Shareholders' equity increased to $12,916,000 as of March 31, 2025, up from $12,288,000 at the end of 2024, marking a growth of 5.1%[17] - Total inventories increased to $5,420 million as of March 31, 2025, compared to $5,045 million as of December 31, 2024[41] Operating Expenses - Operating expenses for Q1 2025 totaled $5,311,000, a significant increase of 54.5% from $3,436,000 in Q1 2024[19] - Selling, general and administrative expenses increased to $4.1 million for the three months ended March 31, 2025, up from $3.2 million in the same period of 2024, primarily due to increased payroll and professional fees[86] - The total operating expenses for Q1 2025 were $5.31 million, an increase of 55% from $3.44 million in Q1 2024, primarily driven by higher selling, general, and administrative expenses[83] Cash Flow - Net cash used in operating activities was $3.2 million for the three months ended March 31, 2025, a decrease of $3.7 million compared to net cash provided by operating activities of $0.5 million in the same period of 2024[102] - Net cash provided by financing activities was $4.0 million for the three months ended March 31, 2025, an increase of $4.6 million compared to net cash used in financing activities of $0.6 million in the same period of 2024, primarily due to $4.7 million in proceeds from stock sales[104] Shareholder Information - The weighted-average shares outstanding increased to 32,725,633 for Q1 2025, compared to 11,966,928 for Q1 2024, indicating a significant dilution of shares[19] - As of March 31, 2025, the company had 32,957,641 shares of common stock issued and outstanding, an increase from 30,526,052 shares as of December 31, 2024[53] - The company granted 1,600,631 restricted stock units (RSUs) at a weighted average price of $1.70 during the three months ended March 31, 2025[50] Going Concern - MultiSensor AI Holdings, Inc. continues to develop its customer base and has not yet established a stable revenue source sufficient to cover its expenses, raising concerns about its ability to continue as a going concern[30] - There is substantial doubt about the company's ability to continue as a going concern for the next twelve months due to recurring losses and the need to raise additional capital[98] Tax and Compliance - The effective income tax rates for the three months ended March 31, 2025, and 2024 were (0.17)% and (0.78)%, respectively, primarily due to losses and a valuation allowance on deferred tax assets[68] - The Chief Executive Officer and Chief Financial Officer have certified compliance with relevant regulations[128] Legal and Regulatory - The company is not currently involved in any legal proceedings that would materially affect its business or financial condition[119] - There have been no material changes in the company's risk factors since the 2024 Annual Report[120] - The company has no off-balance sheet arrangements as of March 31, 2025[106]