Financial Performance - Total net revenue for the year ended September 30, 2025, was $9,912,000, representing a 54% increase from $6,442,000 in 2024[214] - Product revenue increased by 2% to $5,996,000, while services revenue surged by 609% to $3,916,000[214] - Gross profit for the year was $5,007,000, a 96% increase from $2,552,000 in the previous year[214] - The company reported a net loss of $46,131,000 for the year, a 130% increase from a loss of $20,034,000 in 2024[214] Operating Expenses - Operating expenses for research and development decreased by 58% to $2,419,000, while selling, general, and administrative expenses decreased by 5% to $39,556,000[214] - Research and development expenses decreased by $3,360 million or 58% to $2,419 million for the year ended September 30, 2025, compared to $5,779 million for the year ended September 30, 2024[225] - Selling, general and administrative expenses decreased by $2,279 million or 5% to $39,556 million for the year ended September 30, 2025, compared to $41,835 million for the year ended September 30, 2024[227] Revenue Breakdown - Product revenue for the year ended September 30, 2025, was $5,996 million, an increase of $106 million or 2% compared to $5,890 million for the year ended September 30, 2024[219] - Services revenue for the year ended September 30, 2025, was $3,916 million, an increase of $3,364 million or 609% compared to $552 million for the year ended September 30, 2024[220] Cash Flow and Financing - Net cash used in operating activities was $10,113 million for the year ended September 30, 2025, which included a net loss of $46,131 million[249] - The company entered into an At The Market Offering Agreement to sell up to $15,800,000 in shares of Class A Common Stock[202] - In April 2025, the company issued 3,850,000 shares of Class A Common Stock and raised net proceeds of $3,645,000 from the offering[205] - Net cash provided by financing activities for the year ended September 30, 2024 was $19,673, including $21,014 from the merger and PIPE[253] Liabilities and Deficits - Total liabilities as of September 30, 2025 were $37,449, up from $33,558 as of September 30, 2024, mainly due to increased borrowings and additional liability-classified warrants[260] - The company incurred operating losses of $37,693 and $46,395 for the years ended September 30, 2025 and 2024, respectively, with an accumulated deficit of $150,588 as of September 30, 2025[262] - The company expects to continue incurring operating losses and negative cash flows, necessitating additional debt or equity financing to fund operations and product development[262] Asset Valuation and Impairment - The company recorded impairment charges of $725 million and $1,333 million for the years ended September 30, 2025, and 2024, respectively, to write down the value of long-lived assets[287] - Goodwill totaled $16,066 million as of September 30, 2025, representing the excess of the fair value of purchase consideration over the fair value of identifiable net assets acquired[288] - The company did not record any goodwill impairment losses for the years ended September 30, 2025, and 2024, indicating stable reporting unit valuations[290] Mergers and Acquisitions - The merger with Mobix Labs, Inc. raised gross proceeds of $21,014,000, including a $19,750,000 private investment in public equity at $10.00 per share[213] - The company plans to pursue acquisitions to enhance its product portfolio and expand into strategically aligned industries[198] - The company has commitments including $2,323 in deferred purchase consideration related to acquisitions and potential payments of up to $4,000 under the RaGE Earnout, payable in March 2026[261] Accounting and Reporting - The company is classified as an "emerging growth company," allowing it to take advantage of certain exemptions from various reporting requirements[293] - As a "smaller reporting company," the company benefits from reduced disclosure obligations, including providing only two years of audited financial statements[295] - Significant estimates and assumptions are made in accounting for business combinations, including expected future cash flows and discount rates[283] - The company recognizes tax benefits for uncertain tax positions only if it is more likely than not that the position will be sustained upon examination[281]
Chavant Capital Acquisition (CLAY) - 2025 Q4 - Annual Report