Financial Performance - Q3 2025 net revenues were $1.2 million, with a gross profit of $0.6 million and a gross margin of 51%[4] - Operating loss for the quarter was $2.9 million, primarily due to increased investments in sales and marketing[4] - Net income for Q3 2025 was $6.4 million, or $0.20 per basic share, mainly from noncash income of $8.8 million[4] - Net revenues for the nine months ended September 30, 2025, were $6,360,807, compared to a net loss of $7,288,520 for the same period in 2024[20] - Gross profit for the nine months ended September 30, 2025, was $4,371,357, while total operating expenses were $10,974,376, resulting in an operating loss of $6,603,019[18] - Basic net income per share for the nine months ended September 30, 2025, was $0.20, while diluted net income per share was $0.15[18] - The total comprehensive income for the nine months ended September 30, 2025, was $6,353,398, compared to a loss of $7,279,182 in 2024[18] Cash and Cash Equivalents - Cash and cash equivalents stood at $5.8 million as of September 30, 2025, with an additional $9.7 million raised from warrant exercises post-quarter[4] - Cash and cash equivalents at the end of the period were $5,755,661, down from $11,414,830 at the beginning of the period[21] - The company experienced a net decrease in cash and cash equivalents of $5,651,760 for the nine months ended September 30, 2025[21] - The net cash used in operating activities for the nine months ended September 30, 2025, was $4,502,421, compared to $4,398,285 in 2024[21] Business Development and Opportunities - The validated pipeline at the end of Q3 2025 was approximately $166 million, with expected awards over the next 18-24 months[4] - Backlog as of September 30, 2025, was $11 million, representing firm contracts to be shipped and invoiced through 2025 and early 2026[4] - The company closed approximately $11 million in new opportunities by the end of Q3 2025, most scheduled for shipment in Q4 2025 and early 2026[6] - The transition to a partner-driven sales model is showing progress, with ongoing pilots and success in flagship accounts across multiple verticals[9] Research and Development - Research and development expenses for the nine months ended September 30, 2025, were $2,213,182, compared to $2,471,872 for the same period in 2024[18] - The company plans to release new Outpost AI product offerings and expand custom trained AI models for emerging edge analytic workflows[8] Other Income and Expenses - The company reported a total other income of $12,963,826 for the nine months ended September 30, 2025, compared to a loss of $5,274,818 in 2024[18] - The company reported a gain from the change in fair value of earnout liability of $6,414,894 for the nine months ended September 30, 2025[18] Legislative and Funding Context - The Big Beautiful Bill includes over $70 billion in supplemental funding for U.S. Customs and Border Protection, with $6.2 billion earmarked for border security technology[6]
BYTE Acquisition (BYTS) - 2025 Q3 - Quarterly Results