Revenue and Profitability - Revenue for the twelve months ended December 31, 2025 increased by $13.1 million, or 154%, to $21.6 million compared to $8.5 million for the twelve months ended December 31, 2024[193] - Gross profit increased 244% to $4.0 million for the twelve months ended December 31, 2025, with a gross margin of 18.5% compared to 13.7% for the previous year[195] - Net loss increased by $0.8 million to $4.2 million for the twelve months ended December 31, 2025, compared to $3.5 million for the previous year[199] - Operating loss for the twelve months ended December 31, 2025 was $3.7 million, an increase of $0.5 million from the previous year[197] Operating Expenses and Cash Flow - Operating expenses increased by 75.9% to $7.7 million for the twelve months ended December 31, 2025, primarily due to scaling of network construction and operations teams[196] - Net cash used in operating activities increased to $5.7 million for the twelve months ended December 31, 2025, compared to $3.9 million for the same period in 2024, primarily due to scaling network construction and operations[220] - Net cash provided by financing activities rose significantly to $11.6 million for the twelve months ended December 31, 2025, up from $3.6 million in 2024, driven by increased equity fundraising through the IPO[222] Backlog and Contracted Units - Backlog as of December 31, 2025 was $34.0 million, compared to $34.8 million as of December 31, 2024[201] - Contracted units as of December 31, 2025 were 34,067, an increase from 25,375 as of December 31, 2024[201] Cash and Financing - Cash and cash equivalents as of December 31, 2025 were approximately $6.2 million, up from $0.3 million as of December 31, 2024[214] - The company raised gross proceeds of approximately $15.0 million from its initial public offering on November 6, 2025[211] - For the twelve months ended December 31, 2025, the company financed $0.3 million from Endurance Opportunities, with a total balance of $1.3 million in Network Service Agreements (NSAs) as of December 31, 2025[218] - The company entered into a SAFE agreement on January 6, 2025, receiving an aggregate amount of $1.0 million[219] Accounting and Taxation - The company changed its estimation methodology for trade accounts receivable effective October 1, 2025, from a historical loss rate method to an aging schedule method[225] - The provision for income taxes requires significant estimates regarding deferred tax assets and liabilities, with evaluations conducted each reporting period[227] - The company’s accounts receivable are recorded at invoiced amounts, net of allowances for expected credit losses, with adjustments made based on current economic conditions[225] Other Information - The company reported no material off-balance sheet arrangements as of December 31, 2025, and December 31, 2024[223] - Revenue is generated from network design and installation and internet network services, with revenue recognition occurring as performance obligations are satisfied[226] - Net cash used by investing activities was $0.0 million for the twelve months ended December 31, 2025, compared to net cash provided of $0.3 million in 2024[221] - The company expects operating losses and negative cash flows to decrease over time as operations scale and revenue grows[212]
Elauwit Connection(ELWT) - 2025 Q4 - Annual Report