Financial Performance - Total revenues for Q1 2023 were $24.773 million, a decrease of 34.1% compared to $37.564 million in Q1 2022[17] - Gross profit for Q1 2023 was $10.347 million, down from $12.069 million in Q1 2022, reflecting a gross margin decline[17] - The net loss for Q1 2023 was $20.889 million, compared to a net loss of $29.738 million in Q1 2022, indicating an improvement in loss[17] - The company reported a net loss of $20.9 million for the three months ended March 31, 2023, compared to a net loss of $29.7 million for the same period in 2022, representing a 29.5% improvement[21] - Cash flows from operating activities showed a net cash outflow of $2.4 million for Q1 2023, significantly improved from a cash outflow of $14.9 million in Q1 2022[21] - Loss per share for Q1 2023 was $0.28, compared to $0.41 in Q1 2022, indicating a reduction in loss per share[101] Assets and Liabilities - Total current assets decreased to $74.370 million as of March 31, 2023, from $89.697 million as of December 31, 2022[16] - Total liabilities increased to $225.433 million as of March 31, 2023, compared to $205.894 million as of December 31, 2022[16] - The company had cash and cash equivalents of $3.282 million as of March 31, 2023, down from $7.253 million as of December 31, 2022[16] - The company had $3.3 million in cash, cash equivalents, and restricted cash at the end of Q1 2023, down from $46.1 million at the end of Q1 2022[22] - As of March 31, 2023, the company's contract assets increased by $511,000 to $9,512,000, while contract liabilities decreased by $664,000 to $2,228,000 compared to December 31, 2022[44] - Deferred revenue as of March 31, 2023, was $2.0 million, down from $2.6 million as of December 31, 2022, with $2.1 million expected to be recognized within one year[44] Expenses - Research and development expenses for Q1 2023 were $14.191 million, a decrease of 14.1% from $16.521 million in Q1 2022[17] - The company reported a total share-based compensation expense of $1.939 million for the three months ended March 31, 2023, a decrease of 70.5% compared to $6.564 million in the same period of 2022[95] - There was $10.0 million of unrecognized compensation expense related to RSUs to be recognized over a weighted average period of 1.98 years as of March 31, 2023[100] Market and Business Strategy - The company is focused on expanding its market share and enhancing product offerings in response to competitive pressures[11] - The company is focusing on increasing sales in additional geographic markets and developing 5G product offerings to expand its market presence[36] - The company plans to sell its Mimosa business for approximately $60 million to improve its financial position[27] - Approximately 83.6% of product sales for Q1 2023 were to non-U.S. customers, compared to 66.9% in Q1 2022[39] Debt and Financing - The company has outstanding convertible debt of $45.492 million as of March 31, 2023, which is not in compliance with all applicable covenants under the Fortress Convertible Note Agreement[70] - The Company was not in compliance with the minimum last twelve-month EBITDA and revenue covenants under the Fortress Credit Agreement as of March 31, 2023, which constitutes an event of default[63] - The Company has met the criteria for recording Mimosa's assets and liabilities as "held for sale" as of March 31, 2023[51] - The Fortress Credit Agreement includes a total loan commitment of $34.0 million and a term loan commitment of $10.0 million, with a maturity date of December 30, 2024[60] Customer and Revenue Relationships - The company has significant reliance on a few customers, with three customers accounting for 78.4% of the net accounts receivable balance as of March 31, 2023[39] - The company derived approximately $0.4 million in revenue from a related party for Q1 2023, up from $0.1 million in Q1 2022[103] - Accounts receivable from a related party amounted to $8.5 million as of March 31, 2023, compared to $4.5 million as of December 31, 2022[105] Stock and Equity - The weighted average shares outstanding for Q1 2023 were 74,473,741, an increase from 72,335,952 in Q1 2022[17] - The company had 3,830,932 non-vested restricted stock units (RSUs) outstanding as of March 31, 2023, down from 4,267,746 RSUs at the end of 2022[100] - The company had outstanding stock options of 7,766,234 as of March 31, 2023, an increase from 6,144,473 in the previous year[102] - The company issued Post-Combination Warrants for 9,000,000 shares of Common Stock, with exercise prices of $12.50, $15.00, and $17.50[92]
Airspan Networks (MIMO) - 2023 Q1 - Quarterly Report