Financial Performance and Challenges - The company has an accumulated deficit of $66.1 million as of December 31, 2022, indicating a history of losses and potential future profitability challenges [50]. - The company incurred an accumulated deficit of $66.1 million as of December 31, 2022, and has a history of net losses since its inception before 2013 [66]. - The company expects operating expenses to increase as it hires additional personnel and develops new antenna products, which may impact future profitability [66]. - The company’s operating results may fluctuate significantly due to various factors, including demand variability and global economic conditions [54]. - Economic and market conditions, including rising interest rates and geopolitical events, may negatively impact the company’s business and operating results [146]. Market and Competitive Landscape - The company aims to drive growth in the enterprise and automotive markets, which may develop at varying growth rates and depend on competitive factors [53]. - The company faces intense competition in the antenna solutions market, with pricing pressure and potential loss of market share being significant risks [56]. - The company faces intense competition in the electronics market, leading to aggressive price negotiations and potential lower margins [70]. - The market for the AirgainConnect AC-HPUE product is highly dependent on the first responders market and AT&T's FirstNet network, which has not yet resulted in significant sales [53]. Supply Chain and Operational Risks - The company has experienced significant disruptions in the supply chain, affecting its ability to secure critical components for product development and deployment [50]. - Supply chain disruptions, particularly in semiconductor components, have led to delays and increased costs, impacting the company's ability to meet customer demand [75]. - The company relies on a limited number of contract manufacturers, primarily located in China, which poses risks related to quality control and timely delivery [71]. - The company has contracted with a new contract manufacturer outside of China to diversify its supply chain and avoid supplemental tariffs on imported components [123]. - The U.S. Uyghur Forced Labor Prevention Act may impact the sourcing and availability of products, potentially leading to supply chain disruptions and reputational harm [120]. Product Development and Innovation - The company expects to invest significantly in ongoing research and development to stay competitive in the rapidly evolving wireless market [61]. - The company’s future success depends on its ability to develop and introduce new products that meet customer needs in a rapidly changing technological landscape [61]. - The introduction of new products and enhancements requires coordination with customers, suppliers, and manufacturers, and any failure in this area could adversely affect operating results [61]. - Lengthy sales cycles for some products can last several months to a year or longer, complicating forecasting and increasing the risk of customer cancellations [65]. Customer and Revenue Concentration - Customers accounting for 10% or more of total revenue contributed 57% of sales in aggregate for the year ended December 31, 2022 [69]. - The company relies significantly on channel partners for sales, and any failure in these relationships could materially reduce sales [79]. Regulatory and Compliance Issues - The company may incur substantial costs related to compliance with evolving data privacy laws and regulations, which could adversely affect its financial condition [115]. - The company is subject to governmental export and import controls that could impair its ability to compete in international markets [117]. - Changes in U.S. trade policies and tariffs could significantly reduce global trade and adversely affect the company's business and financial condition [123]. - The company may face challenges in meeting evolving regulatory standards, which could lead to increased costs and operational burdens [124]. Human Resources and Management - The company’s ability to attract and retain qualified personnel is critical for its success, especially in design and technical roles [84]. - The company anticipates significant expansion to achieve its business objectives, which may strain management and operational resources [102]. - The company’s future growth strategy may involve expanding its group of contractors or consultants, which requires effective management to ensure quality [102]. Legal and Litigation Risks - The company is subject to risks from litigation or legal proceedings that could expose it to significant liabilities and damage its reputation [138]. - The company is obligated to indemnify channel partners and end-customers for certain intellectual property infringement claims, which could lead to significant costs [111]. - The company may face significant liabilities and costs due to potential infringement claims from third parties, which could adversely affect its business [108]. International Operations - Approximately 40% of the company's products, based on sales, are outside of North America, indicating a significant international presence [116]. - The company is continuing to expand its international operations as part of its growth strategy, which includes increasing its salesforce reach internationally [116]. Financial and Stock Market Considerations - The company has never declared or paid cash dividends on its common stock and does not anticipate doing so in the foreseeable future [133]. - The trading price of the company's common stock may be volatile, influenced by various market factors and analyst coverage [126]. - The company is classified as a "smaller reporting company," which allows it to take advantage of reduced disclosure obligations until it meets certain thresholds, such as a market value of $250 million or annual revenue of $100 million [135]. - Significant costs are incurred as a result of operating as a public company, particularly after ceasing to qualify as a smaller reporting company, which may require hiring additional staff for compliance [137]. Technology and Information Systems - Information technology systems are critical for the company’s operations, and failures or breaches could materially affect product sales and financial condition [141]. Environmental and Safety Compliance - The company may face increased costs and liabilities due to compliance with environmental and worker health and safety laws [99]. Natural Disaster Risks - The company’s operations are at risk from natural disasters, particularly given its headquarters in Southern California and contract manufacturers in seismically active regions [142].

Airgain, Inc. (NASDAQ:AIRG) Q4 2022 Earnings Conference Call March 9, 2023 5:00 PM ET Company Participants Jacob Suen - President & CEO Michael Elbaz - CFO Morad Sbahi - Chief Revenue Officer Conference Call Participants Scott Searle - ROTH Capital Anthony Stoss - Craig-Hallum Craig Ellis - B. Riley Securities Operator Good afternoon. Welcome to Airgain’s Fourth Quarter and Full Year 2022 Earnings Conference Call. My name is Shamaley, and I will be your coordinator for today’s call. Joining us for today’s c ...

PART I. FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Airgain's unaudited financial statements for Q3 2022 are presented, covering balance sheets, operations, comprehensive loss, equity, and cash flows, with detailed notes [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased from **$66.4 million** at year-end 2021 to **$58.3 million** by September 30, 2022, primarily due to reduced cash, while total liabilities also decreased significantly to **$16.3 million** | Account | Sep 30, 2022 (in thousands) | Dec 31, 2021 (in thousands) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $9,190 | $14,511 | | Total current assets | $29,992 | $35,489 | | Total assets | $58,293 | $66,390 | | **Liabilities & Equity** | | | | Deferred purchase price liabilities | $153 | $8,726 | | Total current liabilities | $14,367 | $19,887 | | Total liabilities | $16,281 | $22,217 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q3 2022 sales increased to **$19.2 million** from **$15.5 million**, with net loss narrowing to **$1.3 million**, while nine-month sales grew to **$56.0 million** with stable net loss | Metric (in thousands, except per share) | Q3 2022 | Q3 2021 | 9 Months 2022 | 9 Months 2021 | | :--- | :--- | :--- | :--- | :--- | | Sales | $19,198 | $15,455 | $56,006 | $50,129 | | Gross Profit | $7,443 | $5,546 | $22,104 | $19,742 | | Loss from operations | $(1,264) | $(3,046) | $(5,303) | $(7,661) | | Net loss | $(1,299) | $(3,069) | $(5,439) | $(5,441) | | Net loss per share (Basic & Diluted) | $(0.13) | $(0.30) | $(0.53) | $(0.54) | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations significantly improved to **$2.1 million** for the nine months ended September 30, 2022, compared to a **$6.9 million** use in the prior year, with total cash decreasing by **$5.3 million** | Cash Flow Activity (in thousands) | Nine months ended Sep 30, 2022 | Nine months ended Sep 30, 2021 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $2,083 | $(6,921) | | Net cash used in investing activities | $(624) | $(14,727) | | Net cash (used in) provided by financing activities | $(6,780) | $2,429 | | Net decrease in cash, cash equivalents and restricted cash | $(5,321) | $(19,219) | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail the company's wireless connectivity solutions business, the January 2021 NimbeLink acquisition, revenue disaggregation by market and geography, and customer concentration - The company operates as a single segment providing connectivity solutions (embedded components, external antennas, integrated systems) for consumer, enterprise, and automotive markets[21](index=21&type=chunk)[23](index=23&type=chunk) - In January 2021, the company acquired NimbeLink Corp., an industrial IoT company, for a total purchase consideration of approximately **$22.7 million**, which included **$7.1 million** of goodwill[40](index=40&type=chunk)[43](index=43&type=chunk)[45](index=45&type=chunk) | Customer | % of Total Revenue (9 Months 2022) | % of Total Revenue (9 Months 2021) | | :--- | :--- | :--- | | Customer A | 17% | 13% | | Customer B | 12% | 3% | | Customer C | 13% | 15% | | Revenue by Market Group (in thousands) | 9 Months 2022 | 9 Months 2021 | | :--- | :--- | :--- | | Consumer | $19,377 | $23,800 | | Enterprise | $24,496 | $19,231 | | Automotive | $12,133 | $7,098 | | **Total Sales** | **$56,006** | **$50,129** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management analyzes Q3 2022 financial results, highlighting a **24.2%** sales increase driven by consumer and automotive markets, improved gross margin, and sufficient liquidity for the next 12 months [Results of Operations](index=26&type=section&id=Results%20of%20Operations) Q3 2022 sales increased by **$3.7 million** (24.2%) year-over-year, driven by consumer and automotive markets, while gross profit margin improved to **38.8%** due to favorable product mix | Metric | Q3 2022 | Q3 2021 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Sales | $19,198 | $15,455 | $3,743 | 24.2% | | Gross Profit | $7,443 | $5,546 | $1,897 | 34.2% | | Gross Margin | 38.8% | 35.9% | - | 2.9 pts | - The increase in sales for the nine months ended Sep 30, 2022 was driven by a **$5.3 million** increase in the enterprise market and a **$5.0 million** increase in the automotive market, offset by a **$4.4 million** decrease in the consumer market impacted by supply shortages[123](index=123&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) The company held **$9.2 million** in cash as of September 30, 2022, with operations providing **$2.1 million** in cash for the first nine months, and believes existing liquidity is sufficient for the next 12 months - Cash and cash equivalents were **$9.2 million** at September 30, 2022[135](index=135&type=chunk) - In February 2022, the company secured a **$4.0 million** revolving line of credit with Silicon Valley Bank, which remained undrawn as of the quarter's end[136](index=136&type=chunk) - Net cash provided by operating activities was **$2.1 million** for the nine months ended September 30, 2022, compared to net cash used of **$6.9 million** in the prior year period[138](index=138&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=31&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Airgain is classified as a smaller reporting company and is therefore not required to provide detailed disclosures about market risk - As a smaller reporting company, Airgain is exempt from the requirement to provide information under this item[144](index=144&type=chunk) [Item 4. Controls and Procedures](index=31&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of September 30, 2022, with no material changes in internal control over financial reporting - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of September 30, 2022[145](index=145&type=chunk) - No changes in internal control over financial reporting occurred during the nine months ended September 30, 2022, that materially affected, or are reasonably likely to materially affect, internal controls[146](index=146&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=32&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no involvement in any legal proceedings that would have a material adverse effect on its financial condition or business - The company is not currently involved in any material legal proceedings outside the ordinary course of business[148](index=148&type=chunk) [Item 1A. Risk Factors](index=32&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported, but the cessation of AT&T promotional service credits for the AC-HPUE product in Q3 2022 adversely affected sales - The company's success depends on its ability to develop and introduce new products for the rapidly changing wireless market, such as the AirgainConnect platform[149](index=149&type=chunk) - A significant risk emerged in Q3 2022 when AT&T ceased special promotional service credits related to the company's AC-HPUE product, which has adversely affected and may continue to adversely affect sales of that product[149](index=149&type=chunk) [Item 5. Other Information](index=33&type=section&id=Item%205.%20Other%20Information) Morad Sbahi was appointed Chief Revenue Officer effective November 7, 2022, with details of his amended employment agreement, including salary and equity awards - Effective November 7, 2022, Morad Sbahi was appointed as the company's Chief Revenue Officer, previously serving as Senior Vice President of Global Product and Marketing[151](index=151&type=chunk) [Item 6. Exhibits](index=34&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including corporate governance documents and required certifications

Airgain, Inc. (NASDAQ:AIRG) Q3 2022 Earnings Conference Call November 10, 2022 5:00 PM ET Company Participants Jacob Suen - President and Chief Executive Officer Michael Elbaz - Chief Financial Officer Morad Sbahi - Chief Revenue Officer Conference Call Participants Scott Searle - ROTH Capital Sabrina Baxamusa - William Blair Tim Savageaux - Northland Capital Markets Michael Mani - B. Riley Operator Good afternoon. Welcome to Airgain’s Third Quarter 2022 Earnings Conference Call. My name is Diego and I will ...

Airgain, Inc. (NASDAQ:AIRG) Q1 2021 Results Conference Call May 10, 2022 5:00 PM ET Company Participants Jacob Suen - Chief Executive Officer Morad Sbahi - Senior Vice President of Product and Marking Victor Blair - Senior Vice President of Operation Conference Call Participants Scott Searle - ROTH Capital Alessandra Vecchi - William Blair Anthony Stoss - Craig Hallum Craig Ellis - B. Riley Securities Tim Savageaux - Northland Capital Markets Operator Good afternoon. Welcome to Airgain’s First Quarter 2022 ...

Business Transition and Strategy - The company reported a significant transition from a components provider to a wireless system solutions provider, leveraging its experience in embedded antenna solutions and modems [112]. - The acquisition of NimbeLink Corp. on January 7, 2021, supports the company's strategy to broaden market diversification, particularly in the industrial IoT space [113]. - The company anticipates growth in sales of the AirgainConnect AC-HPUE and related products, which are crucial for future performance [123]. - The automotive market is a key focus, with a strategy to augment sales in the aftermarket and secure design wins with automotive OEMs [117]. - The company plans to continue investing in long-term growth, including expanding its sales force and research and development for new products and technology solutions [145]. Market Performance - The consumer market is experiencing a rebound, although the COVID-19 pandemic has caused historic lows in orders for the core consumer business [121]. - Revenue from the consumer market decreased by $4.2 million to $6.1 million, while revenue from the enterprise market increased by $4.2 million to $8.6 million for the same period [137]. - Total sales for the three months ended March 31, 2022, were $17.5 million, a slight increase of 0.8% compared to $17.4 million for the same period in 2021 [137]. - The company’s sales tend to be lower in the first quarter due to the Chinese New Year, compounded by broader economic impacts from the COVID-19 pandemic [124]. Financial Results - Gross profit for the three months ended March 31, 2022, was $7.2 million, representing a 3.8% increase from $6.9 million in the same period in 2021 [140]. - Operating expenses increased by 9.2% to $9.6 million for the three months ended March 31, 2022, compared to $8.8 million for the same period in 2021 [141]. - Research and development expenses rose by 19.8% to $3.2 million, primarily due to higher personnel-related costs [142]. - The company reported a net loss of $2.5 million for the three months ended March 31, 2022, compared to a net income of $0.2 million in the same period in 2021 [136]. - Cash, cash equivalents, and restricted cash totaled $18.8 million as of March 31, 2022 [144]. - Net cash provided by operating activities was $4.2 million for the three months ended March 31, 2022, driven by a $4.5 million net change in operating assets and liabilities [147]. - The company has an accumulated deficit of $60.0 million as of March 31, 2022 [144]. Operational Challenges - The company has implemented various practices to mitigate the impact of COVID-19 on operations, including remote work and modified customer engagement [120]. - The company’s operating results are affected by pricing pressures, which may force it to lower prices below established list prices [123]. - The company expects research and development expenses to increase in absolute dollars as it invests in new solutions and improving supply chain efficiencies [129]. Regulatory and Reporting - The company is classified as a smaller reporting company under Rule 12b-2 of the Securities Exchange Act of 1934, and is not required to provide detailed market risk disclosures [152].

Airgain, Inc.'s (NASDAQ:AIRG) Q4 2021 Earnings Conference Call February 24, 2022 5:00 PM ET Company Participants David Lyle - CFO Jacob Suen - President and CEO Morad Sbahi - SVP, Global Product and Marketing Conference Call Participants Michael Mani - B. Riley Securities Anthony Stoss - Craig-Hallum Tim Savageaux - Northland Capital Markets Scott Searle - ROTH Capital Operator Good afternoon. Welcome to Airgain’s Fourth Quarter 2021 and Full Year 2021 Earnings Conference Call. My name is Jenna, and I will ...

Financial Data and Key Metrics Changes - Q3 2021 revenue was $15.5 million, down from $17.3 million in Q2, with an estimated loss of over $3 million in revenue opportunities due to global supply shortages [12][14][16] - Non-GAAP gross margin for Q3 was 36.5%, below previous guidance, primarily due to product mix changes and increased costs associated with supply chain disruptions [13][14] - Non-GAAP net loss for Q3 was $1.1 million, while GAAP net loss was $3.1 million, with non-GAAP loss per share at $0.11 and GAAP loss per share at $0.30 [15][19] Business Line Data and Key Metrics Changes - Consumer revenue in Q3 was $4.6 million, down from $8.9 million in Q2, mainly due to supply shortages [12] - Enterprise revenue increased from $6.2 million in Q2 to $8.7 million in Q3, driven by growth in industrial IoT and traditional enterprise Wi-Fi products [12] - Automotive revenue remained flat at $2.2 million in Q3, with growth from AirgainConnect offset by declines in aftermarket fleet revenue due to supply shortages [12][13] Market Data and Key Metrics Changes - Strong demand was noted in the Enterprise and Automotive markets, particularly for integrated wireless systems and the AirgainConnect platform [6][9] - The company is experiencing a backlog of approximately $11 million for Q1 2022, indicating confidence in recovery and growth [20][42] Company Strategy and Development Direction - The company aims to transition from a component antenna supplier to a system solution provider, focusing on integrated wireless systems and industrial IoT [11][21] - The acquisition of NimbeLink is expected to enhance growth opportunities, with existing products performing well and new products in development [7][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong demand for products despite supply chain challenges, anticipating growth in 2022 across all markets [6][19] - The global supply shortage is viewed as a transitory issue, with expectations for recovery in the first half of 2022 [14][20] Other Important Information - The company expects Q4 2021 revenue to decline sequentially, with guidance in the range of $13.5 million to $14.5 million [15][16] - Non-GAAP gross margin for Q4 is expected to be around 34%, reflecting continued product mix shifts and higher costs [17] Q&A Session Summary Question: Supply chain impact magnitude - Management confirmed that Q3 lost revenue opportunities were about $3 million, with Q4 expected to see around $5 million in lost opportunities due to supply chain issues [24][25] Question: Promotional activity response - Promotions have led to a significant increase in demand, with a 200% increase in the opportunity funnel noted [28][29] Question: Consumer revenue visibility - Management indicated that consumer revenue is expected to recover, but visibility remains limited due to ongoing supply chain issues [62][63] Question: NimbeLink growth outlook - Demand for NimbeLink products is strong, with expectations for significant growth in 2022, contingent on supply chain improvements [51][54] Question: AirgainConnect product traction - The promotional efforts for AirgainConnect have successfully attracted larger urban customers, with expectations for continued demand growth [57][60]