Workflow
AmpliTech (AMPG) - 2025 Q2 - Quarterly Report

PART I - FINANCIAL INFORMATION Financial Statements (Unaudited) Unaudited H1 2025 financials show total assets at $48.6 million, revenues at $14.6 million, and a $3.6 million net loss Condensed Consolidated Balance Sheet Highlights (as of June 30, 2025) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $11,057,755 | $19,315,984 | | Total Current Assets | $25,028,665 | $28,331,386 | | Intangible assets, net | $10,397,620 | $2,366,119 | | Total Assets | $48,643,670 | $43,220,482 | | Total Current Liabilities | $8,864,955 | $1,535,641 | | Total Liabilities | $12,831,136 | $5,729,681 | | Total Stockholders' Equity | $35,812,534 | $37,490,801 | Condensed Consolidated Statements of Operations Highlights | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenues | $14,625,026 | $4,820,773 | | Gross Profit | $2,050,749 | $1,939,717 | | Loss From Operations | ($3,815,077) | ($2,995,962) | | Net Loss | ($3,612,146) | ($6,231,435) | | Net Loss Per Share (Basic and diluted) | ($0.18) | ($0.64) | Condensed Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30, 2025) | Cash Flow Activity | Amount | | :--- | :--- | | Net cash used in operating activities | ($4,260,237) | | Net cash used in investing activities | ($3,987,492) | | Net cash used in financing activities | ($10,500) | | Net change in cash and cash equivalents | ($8,258,229) | Notes to Financial Statements Key notes detail the $8 million 5G ORAN asset acquisition, a $3.25 million loss from a 2024 digital currency scam - On March 26, 2025, the company entered an asset purchase agreement with Titan to acquire 5G ORAN radio product assets for an aggregate price of $8 million ($4M cash, $4M restricted stock). An initial payment of $3.5M cash and $1.7M in stock was made, with a remaining $3M contingent liability recorded36152 - In Q1 2024, the company was a victim of a cyber phishing scam, resulting in a complete loss of a $3.25 million investment in digital assets, which was recorded during the year ended December 31, 20243738 Revenue by Segment (Six Months Ended June 30, 2025) | Segment | Domestic Sales | International Sales | Total Sales | | :--- | :--- | :--- | :--- | | AmpliTech Inc. and Specialty Microwave | $1,358,369 | $8,945,623 | $10,303,992 | | Spectrum | $2,629,042 | $1,691,992 | $4,321,034 | | Total | $3,987,411 | $10,637,615 | $14,625,026 | - On July 22, 2025, the company entered into an "At-the-Market Offering" (ATM) agreement with Maxim Group LLC to sell up to $25,000,000 of its common stock from time to time155 Management's Discussion and Analysis of Financial Condition and Results of Operations Management attributes revenue growth to 5G orders, accepting lower gross margins for market penetration Results of Operations Comparison (Three Months Ended June 30) | Metric | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenues | $11,025,927 | $2,527,442 | +336.25% | | Gross Profit | $862,879 | $1,057,087 | -18.37% | | Gross Margin % | 7.83% | 41.82% | -33.99 pts | | Loss From Operations | ($1,925,059) | ($1,568,090) | +22.76% | | Net Loss | ($1,771,625) | ($1,576,274) | +12.40% | Results of Operations Comparison (Six Months Ended June 30) | Metric | 2025 | 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Revenues | $14,625,026 | $4,820,773 | +203.38% | | Gross Profit | $2,050,749 | $1,939,717 | +5.72% | | Gross Margin % | 14.02% | 40.24% | -26.22 pts | | Loss From Operations | ($3,815,077) | ($2,995,962) | +27.34% | | Net Loss | ($3,612,146) | ($6,231,435) | -42.03% | - The sharp increase in revenue is predominantly from 5G orders fulfilled as part of the Titan Asset Acquisition. The decline in gross margin percentage is a deliberate strategy to penetrate the global telecommunications market, with expectations of higher margins in the latter half of 2025 and beyond171172173 - Research and development expenses increased by 89.78% for the six-month period to $1.4 million, mainly for the development of the MIMO 64T64R Oran Cat B radio network and low-noise block down converter units (LNBs)184 Quantitative and Qualitative Disclosures About Market Risk The company is a smaller reporting company and is not required to provide the information for this item - As a smaller reporting company, AmpliTech Group is not required to provide quantitative and qualitative disclosures about market risk199 Controls and Procedures Management concluded that disclosure controls and procedures were not effective as of June 30, 2025, due to material weaknesses - The CEO and CFO concluded that disclosure controls and procedures were not effective as of June 30, 2025200 - The ineffectiveness is due to material weaknesses related to a lack of written documentation of internal controls, ineffective IT general controls, and a lack of personnel to ensure adequate segregation of duties202 - Despite the material weaknesses, management believes the financial statements included in the report are fairly presented in all material respects200 PART II - OTHER INFORMATION Legal Proceedings The company reports no pending legal proceedings to which it is a party or of which any of its property is the subject - As of the report date, there are no pending legal proceedings against the company208 Risk Factors A new risk factor highlights increased U.S. government tariffs on imported products, potentially impacting revenues and profitability - A new risk factor has been identified related to increased U.S. government tariffs on imported products, which could negatively impact the company's revenues, profitability, and cash flows210 - The tariffs affect countries where the company sources raw materials and components, which may force an increase in the selling prices of its finished products210 Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered sales of equity securities or use of proceeds during the period - None reported for the period211 Other Information The company reported no other information for this item - None reported for the period213 Exhibits This section lists the exhibits filed with the Form 10-Q, including officer certifications and XBRL data files - The exhibits include certifications from the Principal Executive Officer and Principal Financial Officer, as well as XBRL instance documents214