Financial Performance - FY 2023 revenue was $12.3 million, with a gross profit of $5.8 million and a gross margin of 47%[24] - Net income for FY 2023 was $16.4 million, primarily due to $23 million in other income from changes in warrant and earnout liabilities[24] - Operating loss for FY 2023 was $6.6 million, mainly due to $2.9 million in stock-based compensation[24] - Total net revenues for the year ended December 31, 2023, were $12,299,584, a decrease of 15.5% from $14,549,141 in 2022[34] - Gross profit for the year was $5,764,317, down 31.5% from $8,421,013 in the previous year[34] - Operating loss increased to $(6,640,365) in 2023, compared to $(2,823,813) in 2022[34] - Net income for 2023 was $16,371,134, a significant improvement from a net loss of $(487,493) in 2022[34] - Basic net income per share for 2023 was $1.20, compared to a loss of $(0.04) per share in 2022[34] Assets and Liabilities - Total assets as of December 31, 2023, were $6,982,575, compared to $3,909,096 in 2022[33] - Total liabilities increased to $23,575,140, up from $12,267,507 in the previous year[33] - The company reported a total stockholders' deficit of $(16,592,565) as of December 31, 2023, compared to $(8,358,411) in 2022[33] Cash Flow and Financing - Cash and cash equivalents stood at $3.1 million as of December 31, 2023[24] - Net cash used in operating activities was $(3,291,333) compared to $(2,902,659) in the previous period, indicating an increase in cash outflow[36] - Net cash provided by financing activities amounted to $6,119,834, up from $1,866,457 in the prior period, reflecting strong financing support[36] - Cash and cash equivalents at the end of the year reached $3,124,413, a significant increase from $298,614 at the beginning of the year[36] - Proceeds from convertible promissory notes were $2,584,582, contributing to the financing activities[36] - The total cash inflow from reverse recapitalization was $2,809,792, enhancing the company's liquidity position[36] Operational Highlights - The company has a validated pipeline of approximately $140 million expected to drive triple-digit revenue growth in FY 2024[3] - Backlog increased to approximately $11.8 million, including orders from the U.S. Department of Homeland Security and Department of Justice[3] - New product launches include turn-key solutions for government customers leveraging the Outpost AI edge appliance[4] - Focus on expanding customer acquisition with U.S. federal and state law enforcement agencies[4] - The company aims to improve sourcing and supply chain management to drive margin expansion[6] Expenses - Research and development expenses were $2,729,492, a decrease of 24.5% from $3,614,814 in 2022[34] - Selling, general and administrative expenses rose to $9,675,190, up 26.8% from $7,630,012 in the prior year[34] Market Activity - The company completed a merger and began trading on Nasdaq under the ticker "AISP" on December 22, 2023[2] Financial Instruments - The company recognized a gain from the change in fair value of earnout liability totaling $(21,976,349), impacting overall financial performance[36] - The company reported a loss from the change in fair value of convertible notes amounting to $240,784, indicating potential volatility in financial instruments[36] - Interest paid during the period was $21,438, slightly higher than $19,950 in the previous period, reflecting increased borrowing costs[36] - The company experienced a decrease in accounts receivable by $(943,152), which may indicate improved cash collection efforts[36] - The effect from exchange rate on cash was $(2,702), showing minor impact from currency fluctuations[36]
BYTE Acquisition (BYTS) - 2023 Q4 - Annual Results