Financial Performance - Q1 2025 net revenues were $5.5 million, with a gross profit of $2.2 million and a gross margin of 40%[4] - Operating loss for the quarter was $1.7 million, attributed to increased stock-based compensation and investments in sales and marketing[4] - Net income for Q1 2025 was $23.7 million, or $0.75 per basic share, primarily due to non-cash income of $25.4 million[4] - Net revenues for the three months ended March 31, 2025, were $5,503,028, a decrease of 48.0% compared to $10,575,015 for the same period in 2024[22] - Gross profit for the three months ended March 31, 2025, was $2,235,004, down from $2,628,127 in the prior year, reflecting a gross margin of 40.5%[22] - Operating loss increased to $(1,714,357) for the three months ended March 31, 2025, compared to $(1,402,533) in the same period of 2024[22] - Net income for the three months ended March 31, 2025, was $23,707,985, a significant improvement from a net loss of $(31,964,469) in the prior year[22] - Basic net income per share for the three months ended March 31, 2025, was $0.75, compared to a loss of $(1.40) per share in the same period of 2024[22] - Total other income for the three months ended March 31, 2025, was $25,422,342, compared to an expense of $(30,561,936) in the same period of 2024[22] Cash and Liquidity - Cash and cash equivalents were $8.8 million as of March 31, 2025, down from $11.4 million at the end of 2024[19] - Cash and cash equivalents at the end of the period were $8,812,178, down from $1,725,817 at the end of the same period in 2024[24] - Net cash used in operating activities for the three months ended March 31, 2025, was $(2,097,844), compared to $(1,695,084) in the prior year[24] Business Outlook and Strategy - The total validated pipeline at the end of the quarter was approximately $135 million, with expected award timeframes throughout the next 18-24 months[4] - The company anticipates 30% revenue growth and positive cash flow for calendar year 2025, supported by a strong pipeline and improving gross profit margins[7] - New product offerings, including Outpost AI and advanced computer vision analytics, are expected to launch in 2025[11] - The company is focused on expanding into commercial and retail markets, particularly against organized retail crime[7] - Backlog as of March 31, 2025, was $2.0 million, representing firm fixed-price contracts awarded recently[4] - The company entered into an At the Market Offering Agreement to sell shares of common stock up to a maximum of $25 million[7] Expenses - Research and development expenses increased to $719,382 for the three months ended March 31, 2025, from $695,366 in the prior year[22] - Selling, general and administrative expenses decreased slightly to $3,229,979 for the three months ended March 31, 2025, from $3,335,294 in the same period of 2024[22]
BYTE Acquisition (BYTS) - 2025 Q1 - Quarterly Results