cord Acquisition III(CNDB) - 2025 Q2 - Quarterly Results

Financial Performance - Net revenues for Q2 2025 were $1.2 million, a 19.0% decrease from $1.5 million in Q2 2024[4] - Total net revenues for Q2 2025 were $1.182 billion, a decrease of 19.5% compared to $1.468 billion in Q2 2024[18] - Gross profit for the six months ended June 30, 2025, was $466 million, down from $2.874 billion in the same period of 2024[18] - The net loss for Q2 2025 was $13.538 million, compared to a net loss of $1.043 million in Q2 2024[18] - Basic and diluted net loss per common share for Q2 2025 was $0.26, compared to $0.02 in Q2 2024[18] - Loss before provision for income taxes for Q2 2025 was $13.499 billion, compared to a loss of $0.976 billion in Q2 2024[18] Operating Expenses - Total operating expenses remained unchanged at $8.0 million[12] - Operating expenses for Q2 2025 totaled $7.970 billion, slightly down from $8.000 billion in Q2 2024[18] - Research and development expenses for the six months ended June 30, 2025, were $7.610 billion, down from $9.685 billion in the same period of 2024[18] Cash and Assets - Cash and cash equivalents as of June 30, 2025, were $1.3 million, with net accounts receivable of $3.8 million and inventory of $3.0 million[6] - The company has approximately $114 million of remaining availability under its $200 million shelf registration statement[6] 5G Chipset Development - The company expects to commence production of finalized 5G chipsets in Q3 2025, with volume shipments starting in Q4 2025[7] - Initial 5G chipset samples were delivered to key customers, including Orbic North America and Airspan Networks, with successful milestone testing reported[5] - The partnership with Iridium Communications Inc. aims to integrate the Iridium NTN Direct℠ service into GCT's GDM7243SL chipset, expanding into the non-terrestrial market[5] - The company is collaborating with Giesecke+Devrient to launch innovative eSIM solutions for IoT devices[5] Financial Offerings - The company completed an $11 million registered direct offering to fund 5G chipset sampling and debt retirement[5] Gross Margin - Gross margin decreased to 32.0%, down 30.7 percentage points from 62.7%[12] Interest Expense - Interest expense for Q2 2025 was $1.532 billion, an increase from $0.760 billion in Q2 2024[18] Shares Outstanding - The weighted average common shares outstanding for Q2 2025 were 51,703 million, compared to 44,060 million in Q2 2024[18] Cost of Revenues - Total cost of net revenues for the six months ended June 30, 2025, was $1.212 billion, compared to $1.859 billion in the same period of 2024[18]