Results of Operations - Total revenue for Fiscal 2024 increased by $0.3 million compared to Fiscal 2023, driven by $0.2 million from the digitization business line and $0.1 million from the less-lethal business line [1] - Revenue for Fiscal 2024 increased by 22% over Fiscal 2023, attributed to government contracts in the Directorate Land Command Systems Program Management Software Engineering Facility (DSEF) and Land C4ISR [28] - The company recorded a net loss of $7.4 million for Fiscal 2024, a reduction of $1.9 million from Fiscal 2023 [28] Gross Profit - Gross profit for Fiscal 2024 was $0.5 million, representing a gross margin of 32.3%, compared to a gross loss of $0.2 million with a gross margin of -15.5% in Fiscal 2023 [29][31] Operating Expenses - Total operating expenses decreased by $1.6 million, or 14%, over Fiscal 2023, primarily due to reductions in selling and marketing costs and general administrative expenses [46] - General and administrative expenses decreased by $1.0 million, or 13%, mainly due to an impairment charge on the Phantom intangible asset in Fiscal 2023 and a decrease in general administrative expenditures [3] - Research and development expenses increased by $0.8 million, or 51%, due to costs associated with the KWESST LightningTM and BLDS projects, as well as the write-off of obsolete inventory [4] Other Income and Expenses - Total other income for Fiscal 2024 was $2.4 million, compared to $2.8 million for Fiscal 2023, reflecting a decrease of $0.4 million [48] - The change in other income was primarily driven by a $3.0 million gain on the change in fair value of warrant liabilities due to a decrease in the underlying common share price [48] Balance Sheet Highlights - As of September 30, 2024, total assets were approximately CAD$5.6 million, down from CAD$11.8 million in 2023 [49] - Total liabilities decreased to CAD$4.2 million from CAD$7.8 million in the previous year [49] Strategic Developments - The company announced plans to issue 4,670 common shares at a deemed price of CAD$20.90 to settle a debt of approximately CAD$97,615 [8] - The appointment of Sean Homuth as President and CEO and Kris Denis as interim CFO and Chief Compliance Officer was announced [9] - The company engaged Dave Ibbetson as a Strategic Defence Advisor [10] Future Outlook - The company expects revenue to increase with the commercial launch of KWESST LightningTM anticipated in calendar 2025, along with expected demand for new ARWEN 40mm ammunition and PARA OPS products [44] - Gross profit margins are expected to continue increasing in Fiscal 2025 due to ramp-up on Canadian Government contracts [45]
KWESST Micro Systems Announces Fiscal 2024 Financial Results