SportsMap Tech Acquisition (SMAP) - 2024 Q1 - Quarterly Report

Financial Performance - Revenue for the three months ended March 31, 2024, was $2,275,000, representing a 132% increase compared to $980,000 for the same period in 2023[27]. - Net loss for Q1 2024 was $3,922,000, compared to a net loss of $2,907,000 in Q1 2023, reflecting ongoing challenges[27]. - Operating loss for Q1 2024 was $2,565,000, an improvement from a loss of $3,176,000 in Q1 2023[27]. - The Company reported total revenue of $2,275 for the three months ended March 31, 2024, a significant increase from $980 in the same period of 2023, representing a growth of 132%[61]. - Product sales contributed $2,022 to total revenue in Q1 2024, up from $755 in Q1 2023, indicating a growth of 167%[65]. - For the three months ended March 31, 2024, the company reported a net loss of $3,922,000 compared to a net loss of $2,907,000 for the same period in 2023[176]. - EBITDA for the three months ended March 31, 2024, was $(3,614,000) with an EBITDA margin of (159)%, compared to $(2,692,000) and (275)% in 2023[176]. - Adjusted EBITDA for the same period was $(2,292,000) with an adjusted EBITDA margin of (101)%, compared to $(2,909,000) and (297)% in 2023[177]. Costs and Expenses - Cost of goods sold for Q1 2024 was $1,404,000, up from $465,000 in Q1 2023, indicating a significant increase in production costs[27]. - Selling, general and administrative expenses for the three months ended March 31, 2024, were approximately $3.2 million, a decrease of $0.3 million, or 10%, from approximately $3.5 million for the same period in 2023[165]. - Depreciation expense for the three months ended March 31, 2024, was approximately $0.3 million, an increase of $0.1 million, or 52%, from approximately $0.2 million for the same period in 2023[166]. - Interest expense for the three months ended March 31, 2024, was approximately $0.04 million, a decrease of $0.05 million, or 92%, from approximately $0.05 million for the same period in 2023[167]. - Loss on financing transaction for the three months ended March 31, 2024, was approximately $0.9 million due to the conversion of Financing Notes and promissory notes into equity[170]. Assets and Liabilities - Total current assets decreased to $9,093,000 as of March 31, 2024, down from $12,513,000 at the end of 2023[26]. - Total liabilities decreased to $12,752,000 as of March 31, 2024, compared to $16,640,000 at the end of 2023[26]. - Cash and cash equivalents at the end of Q1 2024 were $491,000, down from $1,155,000 at the end of 2023[26]. - As of March 31, 2024, the Company had total inventories of $7,108, a decrease from $7,573 as of December 31, 2023, reflecting a reduction of 6.1%[68]. - Contract liabilities decreased to $1,154 as of March 31, 2024, from $2,065 at the beginning of the year, a reduction of 44%[66]. - The outstanding balance of Financing Notes was $1,695, down from $5,695 as of December 31, 2023[90]. Financing and Capital - The Company plans to raise additional liquidity through debt or equity instruments and reduce operating expenses to address financial challenges[49]. - The company entered into a $3,000 asset-based revolving credit agreement with B1 Bank on January 22, 2023, which included borrowing capacity for working capital[71]. - The company issued Financing Notes totaling $6,805 on December 19, 2023, as part of a Business Combination, with a maturity date set for three years later[87]. - The company converted $1,650 of financing notes into common stock at a price of $5 per share on April 5, 2024[121]. - The company entered into a Common Stock Purchase Agreement allowing the sale of up to $25,000 of common stock at market price[122]. - The company modified the terms of the remaining $3.53 million in financing notes to reduce the conversion price to $5.00 per share[140]. Market Position and Strategy - The company is focused on expanding its multi-sensor systems for industrial applications, including cloud-based software and services[34]. - The business combination with Infrared Cameras Holdings Inc. was completed on December 19, 2023, enhancing the company's market position[39]. - The company is committed to expanding its sales and marketing presence, increasing investment in SaaS solutions, and pursuing strategic acquisitions to drive future growth[216]. - The company has a limited operating history providing SaaS solutions, which complicates the evaluation of future prospects and associated risks[221]. Compliance and Governance - The company received notice from Nasdaq regarding non-compliance with listing requirements, but was granted continued listing on the Nasdaq Capital Market[146]. - The company has substantial doubt about its ability to continue as a going concern for the next twelve months due to recurring losses and the need to raise additional capital[180]. - The company plans to hire additional accounting personnel and implement improved controls to address identified material weaknesses in internal control over financial reporting[207]. - The company is classified as an emerging growth company, allowing it to delay the adoption of new accounting standards until they apply to private companies[199]. - The company is not involved in any material claims or legal actions that would have a material adverse effect on its financial position as of March 31, 2024[109].