美國
證券和交易委員會
華盛頓特區 20549
表格
（標記一）
截止季度結束日期：
過渡期爲從___________到____________
委員會文件號。
(根據其章程規定的註冊人準確名稱) |
| ||
（註冊或組織的）州或其他司法轄區 公司成立或組織） |
| （聯邦稅號 唯一識別號碼） |
|
|
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| ||
(主要行政辦公室地址) |
| (郵政編碼) |
( |
（註冊人的電話號碼，包括區號） |
_____________________________________________________
（如果自上次報告以來發生了變化，則以前的姓名、以前的地址和以前的財政年度） |
在法案第12(b)條的規定下注冊的證券：
每一類的名稱 |
| 交易標誌 |
| 在其上註冊的交易所的名稱 |
|
| 該 | ||
|
| 該 |
請勾選以下選項以指示註冊人是否在過去12個月內(或在註冊人需要提交此類報告的較短時間內)已提交證券交易法1934年第13或15(d)條所要求提交的所有報告，並且在過去90天內已受到此類報告提交要求的影響。
請在以下勾選方框表示註冊人是否已在Regulation S-T Rule 405規定的前12個月(或在註冊人需要提交此類文件的較短期間內)提交了每個互動數據文件。
請勾選標記以說明註冊人是大型快速申報人、加速申報人、非加速申報人、較小的報告公司還是新興成長型公司。請查看《交易所法》第120億.2條中「大型快速申報人」、「加速申報人」、「較小的報告公司」和「新興成長型公司」的定義。
大型加速報告人 | ☐ | 加速文件提交人 | ☐ |
☒ | 較小的報告公司 | ||
|
| 新興成長公司 |
如果是新興成長型企業，請勾選複選標記，表明註冊者已選擇不使用延長過渡期來符合根據證券交易法第13(a)條規定提供的任何新財務會計準則。
請勾選以下選項以指示註冊人是否爲外殼公司(根據交易所法規則12b-2定義)。是
截至2024年11月14日，總共有
Airship AI Holdings, Inc.
第10-Q表的季度報告
截至2024年9月30日的季度結束
目錄
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| 目錄 |
第一部分
項目1.基本報表。
Airship AI Holdings，Inc。
合併資產負債表
截至2024年9月30日和2023年12月31日
|
| 2023年9月30日， 2024 |
|
| 12/31/2023 (1) |
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資產 |
| （未經審計） |
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流動資產： |
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現金及現金等價物 |
| $ |
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| $ |
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應收賬款，減去2024年4月30日和2024年1月31日的信用損失準備，分別爲 |
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預付費用及其他 |
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所得稅應收款 |
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總流動資產 |
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固定資產淨額 |
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其他資產 |
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其他資產 |
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經營租賃權資產 |
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資產總計 |
| $ |
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| $ |
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負債和股東權益 |
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流動負債： |
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應付賬款 - 交易 |
| $ |
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| $ |
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創始人預付款 |
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應計費用 |
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優先擔保可轉換票據 |
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當前運營租賃負債部分 |
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遞延收入-流動部分 |
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總流動負債 |
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非流動負債： |
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運營租賃負債，扣除當前部分 |
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認股權責任 |
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業績補償負債 |
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遞延收入-非流動 |
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總負債 |
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業務承諾和或有事項（注9） |
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股東赤字: |
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優先股 - 無面值， |
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普通股-美元 |
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股票認購應收款項。 |
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累積赤字 |
|
| ( | ) |
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| ( | ) |
累計其他綜合損失 |
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| ( | ) |
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| ( | ) |
股東赤字合計 |
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| ( | ) |
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| ( | ) |
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負債和股東權益合計虧損 |
| $ |
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| $ |
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(1) | 來源於經審計的合併資產負債表。 |
所附附附註是這些合併財務報表的組成部分。
| 3 |
| 目錄 |
Airship AI Holdings，Inc。
綜合損益和綜合損益表
截至2024年9月30日和2023年9月30日的三個和九個月
（未經審計）
|
| 三個月結束 |
|
| 截至三個月 |
|
| 截至九個月 |
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| 截至九個月 |
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|
| 2023年9月30日， 2024 |
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| 截至9月30日， 2023 |
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| 截至9月30日， 2024 |
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| 截至9月30日， 2023 |
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淨收入： |
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產品 |
| $ |
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| $ |
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| $ |
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| $ |
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發帖合同支持 |
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營業收入成本: |
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銷售成本 |
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發帖合同壓力位 |
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毛利潤 |
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研發費用 |
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銷售、一般和管理支出 |
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總營業費用 |
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營業虧損 |
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| ( | ) |
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| ( | ) |
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| ( | ) |
其他收益（費用）： |
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在收購款待計提減值準備中產生的收益（損失） |
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| ( | ) |
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權證負債公允價值變動收益（損失） |
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| ( | ) |
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可轉換債務公允價值變動利潤（損失） |
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| ( | ) |
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| ( | ) | |
債券轉換損失 |
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| ( | ) |
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| ( | ) |
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利息費用，淨額 |
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| ( | ) |
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| ( | ) |
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| ( | ) |
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| ( | ) |
其他收入（費用） |
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| ( | ) |
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| ( | ) |
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| ( | ) | |
其他總收益（費用），淨額 |
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| ( | ) |
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| ( | ) |
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| ( | ) | |
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稅前收入（損失） |
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| ( | ) |
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| ( | ) |
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| ( | ) | |
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所得稅準備 |
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淨利潤（損失） |
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| ( | ) |
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| ( | ) |
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| ( | ) | |
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其他綜合收益（損失） |
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外幣翻譯收益（損失），淨 |
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| ( | ) |
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總綜合收益（損失） |
| $ |
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| $ | ( | ) |
| $ | ( | ) |
| $ | ( | ) | |
|
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每股淨利潤（損失）： |
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基本 |
| $ |
|
| $ | ( | ) |
| $ | ( | ) |
| $ | ( | ) | |
稀釋 |
| $ |
|
| $ | ( | ) |
| $ | ( | ) |
| $ | ( | ) | |
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普通股加權平均股份 |
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基本 |
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稀釋 |
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附註是這些合併財務報表的一部分。
| 4 |
| 目錄 |
人工智能飛艇控股有限公司。
股東權益變動表格彙總
（未經審計）
|
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| 常見 |
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| 其他 |
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| 其他 |
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| 總計 |
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| 常見 |
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| 股票 |
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| 實收資本 |
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| 累計 |
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| 綜合 |
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| 股東的 |
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| 股票 |
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| $ |
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| 資本 |
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| 赤字 |
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| 收入（損失） |
|
| 赤字 |
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2023年1月1日餘額 |
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| $ |
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| $ |
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| $ | ( | ) |
| $ | ( | ) |
| $ | ( | ) | |||
基於股票的補償 |
|
| - |
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淨虧損 |
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| - |
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截至2023年3月31日的餘額 |
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| ( | ) |
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| ( | ) |
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| ( | ) | |||
基於股票的補償 |
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| - |
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股票基於補償-期權 |
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| - |
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外幣翻譯盈利 |
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| - |
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淨虧損 |
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| - |
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截至2023年6月30日的餘額 |
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股票補償-股票期權授予 |
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| - |
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外幣翻譯盈利 |
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| - |
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淨虧損 |
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| - |
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截至2023年9月30日的餘額 |
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截至2024年1月1日的餘額 |
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| ( | ) |
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| ( | ) |
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| ( | ) | |||
基於股票的補償 |
|
| - |
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發行普通股以支付往期服務 |
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發行普通股作爲債務轉換 |
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股票認購權行使的普通股股票發行 |
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外幣翻譯盈利 |
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| - |
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淨虧損 |
|
| - |
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| ( | ) |
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| ( | ) | |||
截至2024年3月31日的餘額 |
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| ( | ) |
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| ( | ) |
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| ( | ) | |||
基於股票的補償 |
|
| - |
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發放普通股以換取服務 |
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股票認購權行使的普通股股票發行 |
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發行普通股以換取期權 |
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發行普通股用於償還債務利息 |
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外幣翻譯盈利 |
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| - |
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淨利潤 |
|
| - |
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截至2024年6月30日的餘額 |
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| ( | ) |
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| ( | ) |
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| ( | ) | |||
基於股票的補償 |
|
| - |
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股票爲基礎的補償- warrants |
|
| - |
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發行普通股以換取期權 |
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發行普通股作爲債務轉換 |
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發行普通股和認股權證以進行發行，淨額 |
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外幣翻譯盈利 |
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淨利潤 |
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2024年9月30日餘額 |
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| $ | ( | ) |
| $ | ( | ) |
| $ | ( | ) | |||
在合併之前，公司普通股的股份已被追溯重述爲股份
反映在說明1中描述的合併中建立的約1.7581的交換比率。
附註是這些合併財務報表的一部分。
| 5 |
| 目錄 |
AIRSHIP人工智能控股公司
合併現金流量表
截至2024年和2023年9月30日的九個月
（未經審計）
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| 2023年9月30日， 2024 |
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| 9月30日 2023 |
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經營活動產生的現金流量： |
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淨虧損 |
| $ | ( | ) |
| $ | ( | ) |
調整淨虧損爲經營活動使用的現金淨額 |
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折舊和攤銷 |
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基於股票的補償 |
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基於股票的薪酬-認股證 |
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經營租賃權使用資產攤銷 |
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ROU資產的加速攤銷-租賃終止 |
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Gain from lease termination |
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發放普通股以換取服務 |
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非現金利息支出 |
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認股權責任負債公允價值變動損失 |
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業績補償責任公允價值變動損失 |
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可轉換票據公允價值變動損失 |
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換股損失 |
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運營資產和負債的變化： |
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應收賬款 |
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預付費用及其他 |
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其他資產 |
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經營租賃負債 |
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應付工資和應收所得稅 |
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應付賬款-貿易和應計費用 |
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計提所得稅支出 |
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遞延收入 |
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經營活動產生的淨現金流量 |
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籌資活動產生的現金流量： |
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發行普通股和認股權證以進行發行，淨額 |
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可轉換應付票據的收益 |
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認股權行權所得款項 |
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創始人預付款淨額 |
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股票期權行權所得款項 |
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償還小企業貸款和信用額度 |
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籌資活動提供的淨現金流量 |
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現金及現金等價物淨增加額 |
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匯率對現金的影響 |
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現金及現金等價物期初餘額 |
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期末現金及現金等價物餘額 |
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補充現金流信息披露： |
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已支付利息 |
| $ |
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| $ |
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已繳納的稅款 |
| $ |
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非貨幣性投資和籌資 |
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與股東貢獻Zeppelin有關的對創始人預付款的清零 |
| $ |
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| $ |
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股東以Zeppelin的股東爲基礎，清除應付款項 |
| $ |
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| $ |
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發行普通股用於償還債務利息 |
| $ |
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| $ | - |
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發行普通股用於債務轉換 |
| $ |
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| $ |
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認股權證負債確認。 |
| $ |
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| $ |
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附註是這些綜合基本報表的組成部分。 這些債項風險
| 6 |
| 目錄 |
Airship AI Holdings，Inc。
基本報表附註
1. 組織
Airship AI Holdings, Inc.（以下簡稱「公司」或「Airship」）是在特拉華州註冊成立的控股公司，通過其全資子公司Airship AI, Inc.（「Airship AI」）開展業務。在2022年前成立Super Simple AI, Inc.之前，公司作爲Airship AI, Inc.運營（前身爲JDL Digital Systems, Inc.）。2023年3月7日，Super Simple AI, Inc.將其名稱更改爲Airship AI Holdings, Inc. Super Simple AI, Inc.於2022年1月通過與JDL Digital Systems, Inc.的股票交易而成立。JDL Digital Systems, Inc.於2003年6月30日根據華盛頓州法律成立。
2023年12月21日，公司完成了2023年6月27日簽署並於2023年9月22日修訂的合併協議所設想的合併，該協議涉及BYTE Acquisition Corp.（「BYTS」）、BYTE Merger Sub, Inc.（一家華盛頓州公司，是BYTS的直接全資子公司「Merger Sub」）和Airship AI。
根據2023年12月21日生效，Merger Sub與Airship AI合併爲一體，Airship AI作爲存續公司。因此，Airship AI成爲公司的全資子公司。與此合併相關，Airship AI將其名稱從「Airship AI Holdings, Inc.」更改爲「Airship AI, Inc.」參見附註11—逆向資本重組以獲取更多信息。
公平價值交易
由於合併，公司進行了以下按公允價值計量的交易，這些交易每季度會根據股價和其他項目而有所變化。任何變化是不涉及現金的，並作爲其他收入（費用）中的收益或損失記錄。有關更多信息，請參見第14條——公允價值計量。
|
| 截至的負債 |
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| 截至的負債 |
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| 2024年9月30日 |
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| 2023年12月31日 |
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業績補償負債 |
| $ |
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| $ |
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優先擔保可轉換票據 |
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權證負債（公開權證） |
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權證負債（私人權證） |
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以公允價值計量的總負債 |
| $ |
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| $ |
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截至2024年和2023年9月30日的九個月期間，與按公允價值計量的工具相關的其他損失 |
| $ | ( | ) |
| $ | ( | ) |
普通股票和認股權證發行
2024年9月3日，公司完成了一項價值$的公開發行，淨收益約爲$
公司打算利用本次發行的淨收益用於營運資金和一般企業用途，包括營業成本採購、人員和產品開發。
| 7 |
| 目錄 |
定向增發和公共認股權證
在合併結束時，公司承擔了定向增發權證
業務
該公司是一家強大的人工智能驅動數據管理平台，爲在動態和關鍵任務環境中運營的大型機構解決複雜的數據挑戰，同時快速增加的數據量正在從日益增長的數據源中攝取。
公司通過在數據產生和採集的邊緣進行"黑暗"或非結構化數據的整理，並利用專門構建的人工智能模型來解決這些挑戰。非結構化或"黑暗"數據通常被歸類爲定性數據，無法通過傳統數據工具和方法進行處理和分析。相反，結構化數據通常被歸類爲定量數據，高度組織且容易被機器學習算法解讀。
在邊緣使用人工智能模型對數據進行結構化和分析，與將數據從邊緣傳輸回中央處理位置進行結構化和分析相比，能夠實現實時決策和數據驅動的運營效率。
該公司專門從全球政府和執法機構使用的基於邊緣的傳感器中攝取所有可用的元數據，包括監控攝像頭（視頻）、音頻、遙測、聲學、地震和自主設備，以及具有基本相似功能和要求的大型商業公司。
由這些基於邊緣的傳感器生成的數據，包括視頻，可以通過公司訓練有素的人工智能模型進行處理，以檢測視頻幀中存在的物體。一旦檢測到物體，例如一輛汽車，可以從圖像中提取物體的附加識別特徵，包括車牌字符以及汽車的製造商、型號和顏色。對攝入數據進行分析、記錄和分類的這個過程稱爲「結構化」數據。
Airship 人工智能的軟件使客戶能夠實時查看結構化數據，同時也能在以後的時間點上對結構化數據進行搜索。實時結構化數據的使用包括，例如，對特定車牌或特定品牌、型號或顏色的汽車的警報。非實時結構化數據的使用包括，例如，搜索先前攝入和存儲的視頻數據庫，以查找特定車牌可見的實例，以及其他記錄的汽車特徵，例如汽車的製造商、型號和顏色。
額外部署的人工智能模型能夠對常見和自定義訓練的物體進行類似的檢測和識別，例如飛機、船隻、人員、動物、包或武器。Airship AI的模型爲這些對象類型提供類似的數據點，使分析師能夠實時接收指定對象被檢測到的通知，並能類似地搜索歷史上被檢測到的對象。示例包括檢測飛機和船隻及其相應的尾號和船體登記號碼。
公司的人工智能建模過程始於來自其科技生態合作伙伴的預訓練人工智能模型，然後公司使用專有數據集進行定製，以滿足客戶獨特的工作流程需求。在客戶擁有預先存在的人工智能模型或引擎的情況下，公司將這些模型或引擎集成到其邊緣平台中，讓客戶能夠在Airship人工智能軟件生態系統內利用專有模型。
| 8 |
| 目錄 |
公司的主要產品包括Outpost 人工智能、Acropolis和Airship Command。其產品使客戶能夠在完整的數據生命週期中管理數據，在需要的時候和地點，使用高度安全的基於許可的架構。
截至2024年9月30日，公司共僱傭了51名員工。這些員工的總部位於華盛頓雷德蒙德，並在位於北卡羅來納州夏洛特的客戶卓越中心得到不斷壯大的團隊支持。截至2024年9月30日，公司在臺灣僱用了8名研發人員。
2.重要會計政策摘要
創課推薦基本報表原則和合並原則。
附帶的合併基本報表包含公司及其全資子公司的帳戶。公司內部帳戶和交易已被消除。這些合併基本報表的編制符合美國公認會計原則（「GAAP」）。
有關合並之前的時期，已按照適用的交易所比率將報告的股份和每股金額進行了追溯轉換，但授權股份和留待發行的股份除外。有關詳細信息，請參閱附註11—反向資本重組。
功能貨幣
公司的報告貨幣是美元。公司在美國運營的功能貨幣是美元。Zeppelin Worldwide, Inc.及其子公司Zeppelin Taiwan, Ltd.（統稱「Zeppelin」）的運營使用新臺幣作爲其功能貨幣。在每個期末，Zeppelin的資產負債表以期末匯率轉換爲美元，而其利潤表、綜合損益表和現金流量表則以期間平均匯率轉換爲美元。
現金及現金等價物
公司將原始期限爲三個月或更短的高度流動性臨時投資分類爲等價現金。 公司在各個金融機構保持現金餘額。 在美國銀行的餘額由聯邦存款保險公司保險，最高達 $
營業收入確認和遞延營收
公司主要通過銷售系統和產品以及相關的發帖支持來產生營業收入。公司的主要系統和產品包括Outpost人工智能、Acropolis和Airship Command。至今，公司已確認的大多數產品收入主要包括硬件和軟件的捆綁產品，爲客戶提供現場解決方案。還爲能夠在雲環境中操作的客戶提供了單獨的有限軟件訂閱服務。作爲營業收入確認的交易價格代表了公司預計有權獲得的金額，主要包括產品收入，扣除退貨及變量考慮，包括提供給客戶的銷售激勵。付款通常在發票日期後的30到90個日曆天內到期。
公司在將承諾的貨物或服務轉讓給客戶，並反映公司預期在交換貨物或服務的考慮中所享有的對價時確認營業收入，該過程包括以下五個步驟：（1）確認與客戶的合同，（2）確定合同中的履約義務，（3）判斷交易價格，（4）分配交易價格，以及（5）公司滿足履約義務時或按照公司滿足履約義務的方式確認營業收入，如下所述。
| 9 |
| 目錄 |
2024年4月1日至9月30日期間在公司達到自研藥物肺健王PH（除許可收益之外）的總收入的前提下，公司可獲得的最高1000萬美元。
產品營業收入主要來自公司的系統產品銷售，包括Outpost 人工智能、Acropolis和Airship Command。公司在產品交付、產品發貨或系統控制權轉移給客戶的時間點確認產品營業收入，通常是在系統交付時，合同履行義務已經滿足時。
發帖合同壓力位營業收入
合同後支持（「PCS」）收入主要來自公司的支持和軟件維護協議（「SMA」）。公司的PCS包括在可能的時間和條件下獲得未來未指明的固件升級和功能、錯誤修復以及電子郵件和電話支持的權利。公司根據成本加法將交易價格的一部分分配給PCS的績效義務，並在估計的支持期內以直線方式確認相關收入。公司的支持合同通常爲一到五年，平均爲四年，付款應在發票之日起的30至90個日曆日內到期，可能包括續訂選項。在截至2024年9月30日和2023年9月30日的三個月中，公司確認的收入爲美元
其他服務
公司通過安裝服務、培訓和許可等其他服務收入獲利，這些服務是短期性質的，這些服務的營業收入在提供服務時認可。
具有多個履行承諾的合同
公司的客戶合同通常包含多個履行義務，這些義務可能包括三個獨立的義務：（i）硬件組件（可能與硬件配件捆綁在一起）以及在銷售時交付的硬件組件功能所必需的嵌入式固件；（ii）公司可下載的免費應用程序和軟件解決方案的使用權，以及（iii）客戶在初始銷售後接受合同後支持（「PCS」）的權利。公司的產品和PCS服務具有顯著的獨立功能和能力。因此，這些產品與公司的PCS服務是有區別的，因爲客戶可以在沒有PCS服務的情況下從產品中受益，而且這些PCS服務在合同中是可以單獨識別的。如果合同條款和/或這些協議的實質表明它們可能如此緊密相關，以至於實際上構成單一合同，則公司將與單一客戶的多項協議視爲單一合同。公司預期在履行合同中收到的對價金額根據相對獨立銷售價格分配給每項履行義務。
公司通過分別銷售的交付物的價格來確立獨立銷售價格。如果獨立銷售價格無法通過過去的交易觀察到，則公司基於其定價模型和產品或PCS服務類型來估算獨立銷售價格。
公司已選擇實用豁免，不評估合同是否具有重要的融資成分，因爲公司標準的支付條款少於一年。
本公司主要通過直銷團隊銷售產品。本公司認爲營業收入在滿足以下所有標準時才算獲得：
| ☐ | 公司與客戶簽訂了合同，產生了可執行的權利和義務， |
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| ☐ | 已識別承諾的履約義務， |
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| ☐ | 交易價格或公司預計收到的金額是可確定的， |
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| ☐ | 公司已滿足對客戶的履約義務。 |
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| 目錄 |
一旦所有權和風險轉移給客戶，即意味着控制權的轉移，除非公司需要提供額外服務。
截至2024年9月30日，公司的開空和開多遞延收入餘額總計 $
應收賬款和信用損失準備
公司通常向美國的大型政府實體和大型企業銷售其產品。應收賬款按開票金額記錄，不計利息。
公司於2023年1月1日採納了會計準則更新（「ASU」）第2016-13號《金融工具-信用損失》（規範爲會計準則法規編碼（「ASC」）第326號）。 ASC 326爲美國通用會計準則增加了當前預期信用損失（「CECL」）模型，這是一種基於預期損失而非發生損失的計量模型。在採納ASC 326之前，公司定期評估應收賬款並相應調整壞賬準備。公司根據實際歷史壞賬和銷售退貨趨勢，客戶財務狀況和一般經濟狀況等確定呆賬應收款項的估計。在應用ASC 326的情況下，公司的歷史信用損失經驗爲預期信用損失的估計提供了依據，以及當前經濟和業務情況，以及可能影響可收回性的未來經濟事件。在開發其預期信用損失估計時，公司評估了基於風險特徵的財務資產的適當分組，包括考慮銷售的產品和服務類型。在所有收款方式耗盡並且恢復的可能性被認爲是遙遠的後，帳戶餘額被寫入預期信用損失準備。
偶爾一些長期客戶，他們通常下大額訂單，會與總賬款相比擁有異常高的應收賬款餘額。管理層密切監控這些大額餘額的付款情況，並往往要求在發貨新的銷售訂單之前支付現有發票。截至2024年9月30日和2023年12月31日，公司沒有針對信用損失設立準備金，因爲所有應收賬款均被視爲可收回。截至2024年9月30日和2023年12月31日，應收賬款餘額爲$
信貸和銷售風險集中化
該公司將其產品銷售給商業和政府客戶，根據通常在合同完成後30天內支付的協議。
截至2024年9月30日的九個月，公司來自六十八個客戶的營業收入，其中一位客戶佔比
截至2023年9月30日的九個月，兩個客戶約佔
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| 目錄 |
庫存
公司購買庫存，主要是爲了購買客戶下達的計算機服務器訂單。收到庫存後，公司通常會配置服務器並在服務器上加載專有軟件，然後才發貨。公司持有庫存的時間很短，在2024年9月30日和2023年12月31日，庫存爲零。庫存價值主要是物料成本，並按照成本的較低者（先進先出法）或淨實現價值計量。
長期資產
公司每年對其長期資產進行減值測試，或者當情況變化表明某資產帳面價值可能無法收回時進行檢查。在特定情況下，長期資產以帳面價值或公允價值中較低的數額報告。待處置的資產和預計不會爲公司提供任何未來服務潛力的資產按帳面價值或（減去與出售資產相關的預計成本）的數額中較低值進行記錄。若帳面價值超過公允價值，就會在營運成果中確認減值損失。公司記錄了$的減值損失。
研發支出
研發費用包括員工、顧問和承包商的成本，他們設計、工程和開發新產品和工藝，以及用於生產原型的材料、供應品和設施。
公司目前的研發工作主要集中在改進公司的產品上。公司還積極參與尋找新的應用。公司的內部團隊與外部顧問一起在應用公司技術和產品方面擁有豐富經驗。公司根據需要聘請第三方專家來補充公司的內部團隊。公司認爲持續開發新技術和改進現有技術對公司未來的成功至關重要。公司在研發活動上分別於2024年和2023年9月30日結束的三個月內分別支出了美元。
長期資產，包括使用權、固定資產淨值和資本化專有軟件的賬面價值，定期進行評估，以確定這些資產的賬面價值可能無法恢復或有用壽命短於最初估計的情況。將持有和使用的資產的可恢復性是通過將資產的賬面價值與預計該資產在其剩餘壽命內產生的未折現的淨現金流量進行比較來衡量的。
爲公司的產品開發軟件程序所產生的費用在發生時計入運營，直到軟件的技術可行性得到確認。通常，當軟件模塊執行其原始規格中描述的主要功能、包含可在生產環境中使用所需的特性、完全記錄並且相關的硬件部分完成時，技術可行性就得以確認。確認技術可行性後，任何額外費用將被資本化。當軟件基本完成並且準備好用於預期用途時，軟件成本的資本化將停止。截至2024年9月30日和2023年12月31日，尚未資本化任何軟件開發成本。
淨收入成本
產品淨收入的成本包括元件和運費。合同後支持和其他服務的淨收入成本主要包括實施和持續客戶支持所需的人員及相關費用。
廣告
廣告費用按發生額計入銷售、一般和管理費用。2024年和2023年截至9月30日的三個月廣告和營銷費用爲$
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| 目錄 |
產品的運輸和處理
向客戶收取的產品運輸和處理費用已經包含在淨收入中。與產品運輸和處理相關的成本已經包含在成本收入中。
公允價值衡量
公允價值是在計量日市場參與者之間有序交易中，資產的售價或負債的轉移價格（退出價格），在該資產或負債的主要或最有利市場中，所能獲得或需支付的價格。該主題還建立了公允價值層次結構，該結構要求在測量公允價值時根據可觀察和不可觀察輸入進行分類。公允價值層次結構區分基於市場數據的假設（可觀察輸入）和實體自身的假設（不可觀察輸入）。層次結構由三個級別組成：
一級在活躍市場上引用了相同資產和負債的價格；
級別 2 — 除了一級輸入以外，其他可直接或間接觀察到的輸入；以及
三級估值方法的輸入是不可觀察的，並且對公允價值測量具有重要意義。
其他金融資產和負債的記錄價值，主要由現金及現金等價物、應收賬款、其他流動資產、應付賬款和應計費用組成，適用於2024年9月30日和2023年12月31日的相應資產和負債的公允價值，基於資產和負債的短期性質。公司按照公允價值記錄其高級擔保可轉換票據、收益義務（尚未歸屬的收益股份）及與可轉換票據一起發行的warrants，定期重新計量，並將其視爲第3級工具。公共和私營warrants被視爲第1級和第2級工具，分別。歸屬的收益股份的公允價值被視爲第1級工具。確定高級擔保可轉換票據及其附帶warrants的公允價值的方法如下。
公司將以下合同視爲負債：(i) 要求淨現金結算的合同（包括在發生事件且該事件超出公司控制範圍時需要淨現金結算合同的要求）或 (ii) 給予對方選擇淨現金結算或以股份結算（實物結算或淨股份結算）的合同。
根據公允價值覈算高級擔保可轉換票據
公司已選擇公允價值期權來考慮2023年6月22日發行的優先有擔保可轉換票據以及2023年10月和11月發行的可轉換票據，其公允價值變動記錄在合併運營報表和綜合虧損報表中。由於採用了公允價值期權，與可轉換票據相關的直接成本和費用在收益中確認爲已發生的而不是遞延的。價值基於價格或估值技術，需要的投入既不可觀察，又對整體公允價值衡量具有重要意義。公司對特定投入對整個公允價值計量的重要性的評估要求管理層做出判斷並考慮與負債相關的特定因素。解釋市場數據和確定估計的公允價值需要大量的判斷。使用不同的市場假設或估值方法可能會對估計的公允價值產生重大影響。截至2024年9月30日，該公司已使用蒙特卡羅模擬定價模型，該模型將潛在結果考慮在內，例如可轉換票據以現金償還以及可轉換票據轉換爲普通股。所有這些情景都考慮了標的可轉換票據的條款和條件以及普通股基礎價值的潛在變化。在截至2024年9月30日和2023年9月30日的九個月中，公司確認的未實現虧損爲美元
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| 目錄 |
衍生負債和收益承諾負債
公司不使用衍生工具來對沖現金流、市場或外匯風險暴露。公司評估其所有的金融工具，包括已發行的股票認購權證和業績分成股，以判斷這些工具是否屬於衍生工具或具有符合內嵌衍生工具的特徵，根據ASC 480和FASB ASC 815，「衍生工具與對沖」（「ASC 815」）。衍生工具的分類，包括這些工具是否應當列報爲負債還是權益，將在每個報告期結束時重新評估。公司將任何（i）要求淨現金結算的合同（包括如果事件發生後需要淨現金結算合同，且該事件不受公司控制）或（ii）給予對方淨現金結算選擇或以股份結算（實物結算或淨股份結算）的合同，分類爲負債。
在合併結束時，公司承擔了定向增發權證
完成合並交易後，公司對認股權證進行評估，並得出結論認爲其不符合歸類爲股東赤字的標準。因此，公司以公平價值確認認股權證工具爲負債，並在每個報告期調整這些工具的公允價值。認股權證的初始預估公允價值是使用蒙特卡洛模擬進行測量的。後續公開認股權證的預估公允價值基於這類認股權在活躍市場中的上市價格，而私募認股權的公允價值則繼續使用蒙特卡洛模擬進行測量，其關鍵輸入是直接或間接可觀察到的公開認股權上市價格。由於公開和私募認股權符合衍生品的定義，公司在合併結束時將公開和私募認股權公允價值確認爲負債，並隨後公允價值的變動在每個報告日期在合併利潤表中得到確認。
在合併結束時，持有Airship AI普通股、Airship AI期權、Airship AI可賺取warrants或Airship AI SAR的Airship AI證券持有人有條件權利最多獲得
根據ASC 815-40，與已歸屬於股份相關的業績股份被視爲衍生負債，因爲決定業績股份所需釋放或發行數量的事件，包括一些與公司普通股的公允價值並不完全相關的事件。這些業績股份在合併交易完成時進行了評估，並在每個報告日持續評估，直至結算或滿足股權分類的標準。因此，公司按公允價值確認業績股份爲負債，並在每個報告期對這些工具進行公允價值調整。這些業績股份採用蒙特卡洛分析進行估值。
在合併結束時，未歸屬的收益股份被視爲股權工具，估值約爲$
衍生權證和未來股份責任被分類爲非流動負債，因爲其清償不合理地預計需要使用大量流動資產或創建流動負債。
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| 目錄 |
基於股票的薪酬
公司設有基於股份的薪酬計劃，根據該計劃，員工、顧問、供應商和董事可能被授予限制性股票、股票增值權、激勵型期權、非合格期權、未獲獎勵股份與認購公司普通股的權證，行使價格爲授予當時的公允市場價。公司根據授予日期測量股份爲基礎的薪酬成本，並將獎勵的公允價值作爲費用確認，分攤至通常爲獲得期的服務期間。公司根據實際放棄經驗調整對股份爲基礎的薪酬，以更改預期權益獎勵被放棄的估計。調整放棄率的影響在更改放棄估計的期間得到確認。
所得稅
所得稅採用負債法進行覈算。遞延稅資產和負債是針對由於財務報表中現有資產和負債的賬面價值與其各自稅基之間的差異以及淨營運虧損和稅收抵免延續所造成的未來稅務後果而確認的。遞延稅資產和負債的計量使用預計適用於在這些暫時差異預計被回收或解決的年度的法定稅率。公司的遞延稅資產能夠實現的能力取決於未來的應納稅所得額，以及下面討論的限制。出於財務報告目的，如果某些部分或所有遞延稅資產在到期之前不太可能被實現，則必須通過估值備抵減少遞延稅資產。公司在評估是否需要估值備抵時，會考慮歷史和未來的應納稅所得額、現有應納稅暫時差異的未來逆轉、以前補退年度的應納稅所得額以及正在進行的稅務規劃策略。
綜合收益
編制符合美國通用會計原則的簡明財務報表要求管理層進行估計和假設，這些估計和假設將影響簡明財務報表和隨附註釋中報告的金額。實際結果可能與這些估計不同。
公司適用會計準則彙編205-40（「ASC 205-40」）， 。該ASU爲組件重新分類的項目 和它們對淨收入的相應影響增加了新的披露要求 其他綜合收益。適用於公共實體的ASU 2013年12月15日後開始的財務年度。我們目前不預計 此標準對我們的綜合財務報表產生重大影響。該準則由財務會計準則委員會（「FASB」）發佈，旨在指導報告公司何時以及如何在其合併基本報表中披露持續經營的不確定性。ASC 205-40要求管理層在合併基本報表的發行日期的一年內評估實體的持續經營能力（或者在適用時，在合併基本報表可以發行的日期的一年內）。此外，如果存在「對實體持續經營能力的重大疑慮」，並且管理層計劃緩解該疑慮，公司必須提供某些披露。2024年11月，公司分析了其現金需求和運營，至少到2025年11月，並已確定，根據公司當前可用現金和運營狀況，公司對其持續經營能力沒有重大疑慮。
使用估計
在按照公認會計原則（GAAP）編制這些合併基本報表時，管理層必須進行估計和假設，這可能影響合併基本報表日的資產和負債報告金額，以及或有資產和負債的披露，影響報告期間的營業收入和費用的報告金額。實際結果可能與這些估計有所不同。公司合併基本報表中涉及的重要估計和假設與收入確認的計算、股票薪酬、普通股估值、高級有擔保可轉換票據的估值、認股權證負債、收益分享負債、包括所得稅在內的潛在負債的應計費用、遞延稅資產的估值以及與股票薪酬相關的估值假設有關。
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| 目錄 |
每股收益（虧損）
基本每股收益（虧損）基於2024年和2023年9月30日結束的三個和九個月的淨利潤（虧損），除以普通股的加權平均流通股數。稀釋每股淨利潤使用在期間內使用庫藏股法確定的普通股和潛在普通股（代表股票期權、認股權證、可轉換應付票據和股票增值權的稀釋效應）的加權平均數來計算，截至2024年9月30日結束的三個月。2023年9月30日結束的三個月和2024年和2023年9月30日結束的九個月的普通股當量未包括在稀釋每股收益（虧損）的計算中，因爲公司出現虧損，它們是反稀釋的。參見附註15-每股收益。
可報告的細分
財務會計準則委員會，即FASB，會計準則法典，即ASC，第280號主題，要求企業在向股東發佈的財務報表中報告有關報告段的選定信息。管理層監控公司提供的各種產品和服務的營業收入和費用元件，但經營活動是在與每年制定的業務計劃相比的全公司基礎上管理的，並且財務績效也是在整個公司範圍內評估的。因此，管理層認爲所有業務均視爲一個經營部門和一個可報告部門，如包含在合併損益表和綜合損益表的綜合損益表中所示。 分部報告，要求企業在向股東發佈的財務報表中報告有關報告段的選定信息。管理層監控公司提供的各種產品和服務的營業收入和費用元件，但經營活動是在與每年制定的業務計劃相比的全公司基礎上管理的，並且財務績效也是在整個公司範圍內評估的。因此，管理層認爲所有業務均視爲一個經營部門和一個可報告部門，如包含在合併損益表和綜合損益表的綜合損益表中所示。
最近的會計聲明
FASB、其新興問題工作組、美國註冊會計師協會和證監會發布的所有最近的會計準則，據管理層認爲，對公司目前或未來的基本報表沒有或不被認爲具有重大影響。
3. Advances due to and from Founders
Advances due to Founders
Prior to 2023, the founders had advanced the Company a net $
Master Loan Agreement
On September 27, 2024, the Company entered into a Master Loan Agreement with Mr. Huang, whereby he may provide additional funding of up to $
4. Revenues
Disaggregation of Revenue
The Company’s net revenues for the nine months ended September 30, 2024 and 2023 consisted of approximately $
| 16 |
| Table of Contents |
Contract Balances
應收賬款是在公司交付貨物或提供服務的期間確認，或者當公司對收款的權利不受任何條件限制時確認。公司通常不記錄合同資產，因爲一旦履行績效義務就有無條件支付權，因此，應收賬款比合同資產更常被記錄。應收賬款通常在三十天內支付，客戶合同中沒有融資要素。截至2024年9月30日和2023年12月31日，沒有未開票的應收賬款餘額。
截至2024年9月30日，公司的開空和開多遞延收入餘額總計 $
剩餘績效承諾
截至2024年9月30日，公司在與bea ucs d相關的研發工作下，擁有大約$百萬的未償金額
獲得或實現合同的成本
公司不支付任何重要的變量補償來獲得客戶合同。此外，作爲產品賣方的公司大部分履約成本被歸類爲庫存，然後在產品出售時列爲營業收入成本。其他合同履約成本，如軟件維護，則在發生的期間內作爲費用處理，並與收入分攤的時間保持一致。
5. 應付票據和可轉換票據
在2023年6月22日，公司向鉑金資本夥伴公司發行了一份$
2024年2月2日，公司向鉑金髮行了一份修訂和重述的高級擔保可轉換 promissory note，金額爲 $
與鉑金可轉換票據的發行相關，公司於2024年2月2日向鉑金髮行了一份修訂和重述的普通股購買認股權證，以購買
| 17 |
| 目錄 |
2024年6月22日，公司與鉑金可轉換票據簽署了延期協議。延期協議將票據的到期日延長至2025年6月22日。作爲簽署延期協議的對價，公司向鉑金髮行了
根據2024年2月2日簽署的修訂及重述的安防-半導體協議，鉑金可轉換票據的義務由公司所有資產的整體留置權擔保，並根據2024年2月2日簽署的修訂及重述的擔保協議提供擔保。公司還同時簽署了修訂及重述的次級協議。
在2024年9月30日結束的九個月裏，公司發行了
2023年10月3日，公司發行了價格爲美元的優先有擔保可轉換本票
The Company accounts for the notes under the fair value method of accounting and as of September 30, 2024 and December 31, 2023, the notes were recorded at $
During the nine months ended September 30, 2024 and 2023, the Company recorded an increase in the fair value of the convertible notes payable totaling $
Details on notes payable and convertible notes payable were disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and filed with the SEC on April 1, 2024.
6. Stockholders’ Deficit
Authorized and Outstanding Stock
The Company is a Delaware company and its affairs are governed by its certificate of incorporation, its bylaws and the Delaware General Corporation Law and the common law of the State of Delaware. The Company’s charter authorizes the issuance of
Details on the common stock, preferred stock and equity incentive plans were disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and filed with the SEC on April 1, 2024.
Common Stock
As of September 30, 2024, there were
| 18 |
| Table of Contents |
Nine Months Ended September 30, 2024
During the nine months ended September 30, 2024, the Company had the following sales of unregistered equity securities:
On March 5, 2024, a private investor converted a senior secured convertible promissory note for $
On March 5, 2024, a private investor converted a senior secured convertible promissory note for $
On March 21, 2024, the Company issued
On May 16, 2024, the Company issued
在2024年6月22日，公司與鉑金資本合夥公司簽訂了延期協議，將鉑金可轉換票據的到期日延長至2025年6月22日。作爲簽訂延期協議的對價，公司向鉑金髮行了
2024年9月3日，公司發行了
2024年9月13日，公司發行了額外的
在2024年9月30日結束的九個月裏，公司發行了
截至2024年9月30日，公司發行了一攬子
截至2024年9月30日的九個月期間，公司發行了一攬子股票
2023股權激勵計劃
本公司已採納了2023年股權激勵計劃，該計劃已於2023年12月召開的股東特別大會上獲得批准。有關股權激勵計劃的詳細信息已在公司截至2023年12月31日的年度10-k表格中披露，並於2024年4月1日提交給美國證券交易委員會（SEC）。
截至2024年9月30日，最初預留和可用於授予及發行的普通股總數爲4,456,241股。此股數將在2024年1月1日起的十年內，每年的1月1日自動增加，增加的數量等於前一年12月31日已發行普通股總數的2.0%。
公司在2024年9月30日結束的九個月內有以下股票期權交易活動：
截至2024年9月30日的九個月內，公司向七名員工授予了購買合計股票的期權
截至2024年9月30日的九個月期間，五名員工自願取消了購買總計期權的股票。
截至2024年9月30日的九個月內，公司發行了總計
| 19 |
| 目錄 |
2024年9月30日結束的九個月的股票期權活動如下：
|
| 期權 |
|
| 加權平均 |
| ||
|
| 有利益地 |
|
| 行使價格 |
| ||
2023年12月31日持有量 |
|
|
|
| $ |
| ||
已授予 |
|
|
|
|
|
| ||
已行使 |
|
| ( | ) |
|
| ( | ) |
被放棄 |
|
| ( | ) |
|
| ( | ) |
截至2024年9月30日的優秀表現 |
|
|
|
| $ |
| ||
下表總結了截至2024年9月30日尚未行使和可行使的股票期權的信息：
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 加權 |
| |||||||
|
|
|
|
|
| 加權 |
|
|
|
|
|
|
|
| 加權 |
|
| 平均 |
| |||||||
|
|
|
|
|
| 平均 |
|
| 加權 |
|
|
|
|
| 平均 |
|
| 剩餘生命期 |
| |||||||
區間 |
|
| 數量 |
|
| 剩餘壽命 |
|
| 平均 |
|
| 數量 |
|
| 行使價格 |
|
| 年份 - 已投資 |
| |||||||
行權價格 |
|
| 傑出 |
|
| 在一定年限內 |
|
| 行權價格 |
|
| 可行使的 |
|
| 可行權 |
|
| 和可行權 |
| |||||||
| $ | 0.12 |
|
|
|
|
|
|
|
| $ |
|
|
|
|
| $ |
|
|
|
| ||||||
| 0.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
1.49-1.65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
| 1.90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| 2.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
| $ |
|
|
|
|
| $ |
|
|
|
| ||||||
截至2023年7月31日，續借貸款協議下未償還的借款額爲
在2024年8月，公司取消了行使的期權，這些期權在行使時沒有內在價值。
截至九個月結束，公司股票期權授予的顯著加權平均假設如下：
假設 |
| 9/30/2024 |
|
| 6/30/2024 |
|
| 3/31/2024 |
| |||
預計股價 |
| $ |
|
| $ |
|
| $ |
| |||
行權價 |
| $ |
|
| $ |
|
| $ |
| |||
股息收益率 |
|
| % |
|
| % |
|
| % | |||
預期期限 |
|
|
|
|
|
| ||||||
預期波動率 |
|
| % |
|
| % |
|
| % | |||
無風險利率 |
|
| % |
|
| % |
|
| % | |||
| 20 |
| 目錄 |
截至2024年9月30日，尚未兌現的股票激勵計劃獎勵共計
截至2024年9月30日和2023年12月31日，有
warrants
請參閱第12條有關合並後承擔的公開和定向增發認股權證。
截至2024年9月30日的九個月期間，公司發生了以下認股權證活動：
關於鉑金可轉換票據的發行，公司向鉑金髮行了一份修訂和重訂的普通股認購權證，日期爲2024年2月2日，用以購買
在2024年9月3日，公司發行了可購買最多的warrants
On September 3, 2024 the Company issued warrants to purchase up to
On September 27, 2024, the Company issued warrants to purchase up to
During the nine months ended September 30, 2024, investors exercised warrants for
Warrant activity for the nine months ended September 30, 2024 was as follows:
|
| 2024 年 9 月 30 日 |
| |||||
|
|
|
| 加權 |
| |||
|
|
|
| 平均值 |
| |||
|
|
|
| 運動 |
| |||
|
| 股票 |
|
| 價格 |
| ||
2024 年 1 月 1 日未平息 |
|
|
|
| $ |
| ||
已發行 |
|
|
|
|
|
| ||
已行使 |
|
| ( | ) |
|
| ( | ) |
被沒收 |
|
| ( | ) |
|
| ( | ) |
已過期 |
|
| - |
|
|
|
| |
截至 2024 年 9 月 30 日 |
|
|
|
| $ |
| ||
| 21 |
| 目錄 |
截至2024年9月30日，未行使的權證概況如下：
|
|
| 2024年9月30日 |
| ||||||||||||||
|
|
| 加權 |
|
| 加權 |
|
|
|
|
| 加權 |
| |||||
|
|
| 平均 |
|
| 平均 |
|
|
|
|
| 平均 |
| |||||
數量 |
|
| 剩餘 |
|
| 行使 |
|
| 有利益地 |
|
| 行使 |
| |||||
權證 |
|
| 生命（以年計） |
|
| 價格 |
|
| 可行權 |
|
| 價格 |
| |||||
| 2,689,902 |
|
|
| 3.47 |
|
| $ | 1.77 |
|
|
| 2,689,902 |
|
| $ | 1.77 |
|
| 220,000 |
|
|
| 5.00 |
|
|
| 2.36 |
|
|
| 220,000 |
|
|
| 2.36 |
|
| 2,882,283 |
|
|
| 4.92 |
|
|
| 2.65 |
|
|
| 2,882,283 |
|
|
| 2.65 |
|
| 216,216 |
|
|
| 4.92 |
|
|
| 3.47 |
|
|
| 216,216 |
|
|
| 3.47 |
|
| 16,674,012 |
|
|
| 4.04 |
|
|
| 7.80 |
|
|
| 16,674,012 |
|
|
| 7.80 |
|
| 22,682,413 |
|
|
| 4.08 |
|
| $ | 6.34 |
|
|
| 22,682,413 |
|
| $ | 6.34 |
|
2024年9月30日止九個月內，公司發行的權證估值中所涉及的重要加權平均假設如下:
假設 |
|
|
| |
股息收益率 |
|
| % | |
股票價格 |
| $ |
| |
行權價 |
| $ |
| |
預期期限 |
|
| ||
預期波動率 |
|
| % | |
無風險利率 |
|
| % | |
盡職補償責任
有關與收益責任相關的普通股股份，請參見注釋13。
7. 員工401(k)計劃
公司爲其員工提供401(k)計劃。
8. 關聯方交易
由於創始人的進展
在2023年之前，創始人們向公司提供了一筆淨額。
主貸款協議
2024年9月27日，公司與黃先生簽訂了主貸款協議，根據該協議，他可以提供高達美元的額外資金
| 22 |
| 目錄 |
warrants
在2023年5月8日，Airship AI發行了購買證券的權證，
9. 承諾、附帶條件和法律訴訟
法律訴訟
本公司可能不時成爲因其業務的正常運營而引發的各種法律程序的當事方。目前，本公司不是任何非正常例行訴訟的當事方，這些訴訟與其業務無關。
資產和經營租賃-使用權資產和租賃負債
租賃協議將被評估，以判斷安排是否或包含租賃，符合ASC 842。 租賃根據未來租賃期內的最低租金支付現值，在開始日確認使用權租賃資產和租賃負債。考慮公司信用質量和類似資產的借款利率，確定未來支付現值時採用的增量借款。租賃費用將記錄爲公司合併運營報表上的一般及管理費用。
2023年7月13日，公司在華盛頓州雷德蒙德簽訂了一個租賃合同，
2024年2月29日，公司在北卡羅來納州穆爾斯敦延長了辦公室租約。公司租賃的
公司已經與辦公和開發設施訂立了爲期四年的經營租賃協議，幷包括續租期權。公司根據租賃協議的成立時獨特事實和情況判斷租賃安排或含有租賃關係。根據預期租賃期限內租金的現值，記錄經營租賃負債和相應的使用權資產。截至2024年9月30日和2023年12月31日，總經營租賃負債分別爲$
The weighted average remaining lease term for the operating leases was thirty seven months at September 30, 2024 and the weighted average discount rate was
| 23 |
| Table of Contents |
The minimum future lease payments as of September 30, 2024 are as follows:
Years Ended September 30, |
| |||
2025 |
| $ |
| |
2026 |
|
|
| |
2027 |
|
|
| |
2028 |
|
|
| |
Total remaining payments |
|
|
| |
Less Imputed Interest |
|
| ( | ) |
Total lease liability |
| $ |
| |
Employment Agreement
On March 1, 2024, the Company entered into an employment agreement with Mark E. Scott, the Company’s Chief Financial Officer, which provides for a base salary of $
10. Income Taxes
The Company recorded a provision for income taxes of $
The Company’s effective tax rate was
For interim periods, the Company estimates its annual effective income tax rate and applies the estimated rate to the year-to-date income or loss before income taxes. The Company also computes the tax provision or benefit related to items reported separately and recognizes the items net of their related tax effect in the interim periods in which they occur. The Company also recognizes the effect of changes in enacted tax laws or rates in the interim periods in which the changes occur.
As of September 30, 2024 and December 31, 2023, the Company retains a full valuation allowance on its deferred tax assets. The realization of the Company’s deferred tax assets depends primarily on its ability to generate taxable income in future periods. The amount of deferred tax assets considered realizable in future periods may change as management continues to reassess the underlying factors it uses in estimating future taxable income.
11. Reverse Recapitalization
On December 21, 2023, the Company completed the merger and received net proceeds of $
The merger was accounted for as a reverse recapitalization in accordance with GAAP. Under this method of accounting, BYTS, who was the legal acquirer, was treated as the “acquired” company for accounting purposes and Airship AI was treated as the accounting acquirer. Accordingly, the merger was treated as the equivalent of Airship AI issuing shares at the closing of the merger for the net assets of BYTS as of the closing date, accompanied by a recapitalization. The net assets of BYTS was stated at historical cost, with no goodwill or other intangible assets recorded. Airship AI was determined to be the accounting acquirer based on evaluation of the following facts and circumstances:
| ☐ | Airship AI’s stockholders have the majority voting interest in the combined company; |
|
|
|
| ☐ | The board of the post-merger company is composed of one (1) director designated by BYTS and four (4) directors designated by Airship AI; |
|
|
|
| ☐ | Airship AI’s senior management is the senior management of the post-merger company; |
|
|
|
| ☐ | The business of Airship AI comprises the ongoing operations of post-merger company; and |
|
|
|
| ☐ | Airship AI is the larger entity, in terms of substantive assets. |
| 24 |
| Table of Contents |
The table below summarizes the shares of common stock issued immediately after the closing of the merger as well as the impact on the consolidated statement of stockholders’ equity as of December 21, 2023:
|
|
|
|
|
|
|
| Additional |
|
| Accumulated |
| ||||||||
|
| Shares |
|
| Par Amount |
|
| Common Stock |
|
| Paid in Capital |
|
| Deficit |
| |||||
| SPAC Financing |
|
|
|
| $ |
|
| $ |
|
| $ |
|
| $ |
| |||||
| Transaction expenses (1) |
|
|
|
|
|
|
|
|
|
|
| ( | ) |
|
| ( | ) | |||
| Earnout liability |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ( | ) |
|
| ( | ) |
| Warrants liability |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ( | ) |
|
|
| |
| Reverse capitalization on December 21, 2023 (1) |
|
|
|
|
|
|
|
| $ |
|
| $ | ( | ) |
| $ | ( | ) | ||
| (1) | Adjusted for correction of transaction expense discussed below. |
Immaterial Revision of Prior Period Financial Information
In connection with the preparation of its consolidated financial statements, the Company identified an immaterial error related to the classification of prepaid expenses and transaction expenses (classified in accumulated deficit as reverse recapitalization). In accordance with SAB No. 99, “Materiality,” and SAB No. 108, “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in the Current Year Financial Statements,” the Company evaluated the error and determined that the impact was not material to its financial statements for the prior annual and current interim period, accordingly the Company revised the prior period financial information for comparative purposes. The revision does not impact the consolidated statements of operations and comprehensive loss. A summary of the revision to the Company’s previously reported consolidated balance sheets is included below for comparative purposes:
|
| As of December 31, 2023 |
| |||||||||
|
| As Reported |
|
| Adjustment |
|
| As Revised |
| |||
Prepaid expenses and other |
| $ |
|
| $ | ( | ) |
| $ |
| ||
Total current assets |
|
|
|
|
| ( | ) |
|
|
| ||
Total assets |
|
|
|
|
| ( | ) |
|
|
| ||
Accumulated deficit |
|
| ( | ) |
|
| ( | ) |
|
| ( | ) |
Total stockholders' deficit |
|
| ( | ) |
|
| ( | ) |
|
| ( | ) |
The revision had no impact to cash provided by operating activities in such period.
12. Private Placement and Public Warrants
At the merger closing, the Company assumed
Details on the warrants were disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 and filed with the SEC on April 1, 2024. The public warrants will expire on December 21, 2028.
| 25 |
| Table of Contents |
The following table is a summary of the number of shares of the Company’s common stock issuable upon exercise of the public and private warrants outstanding as of September 30, 2024:
|
| Number of Shares |
|
| Exercise Price |
|
| Expiration Date |
| Fair Value |
| |||
Public Warrants |
|
|
|
| $ |
|
|
| $ |
| ||||
Private Warrants |
|
|
|
| $ |
|
|
| $ |
| ||||
13. Earnout Liability
At the closing of the merger, the Airship AI securityholders that hold shares of common stock of Airship AI, Airship AI options, Airship AI earnout warrants or Airship AI SARs have the contingent right to receive up to
| (A) |
| (B) | |
|
|
|
| (C) | |
|
|
|
| (D) |
Any earnout shares issuable under the merger agreement to a Airship AI securityholder in respect of each Airship AI option or Airship AI SAR held by such holder as of immediately prior to the effective time of the merger shall be earned by such holder on the later of (i) the occurrence of the applicable earnout milestone, and (ii) the date on which the option in respect of such Airship AI option or SAR in respect of such Airship AI SAR, as applicable, becomes vested pursuant to its applicable vesting schedule, but only if such holder continues to provide services (whether as an employee, director or individual independent contractor) to the Company or one of its subsidiaries through such date. Notwithstanding the foregoing, any earnout shares that are not earned by Airship AI securityholder in respect of its options or SARs on or before the fifth anniversary of the closing date of the merger shall be forfeited without any consideration. Any earnout shares that are forfeited pursuant to the merger agreement shall be reallocated to the other Airship AI securityholders who remain entitled to receive earnout shares in accordance with their respective earnout pro rata shares.
These earnout shares have been categorized into two components: (i) the “Vested Shares” - those associated with earnout holders with vested equity at the closing of the merger that will be earned upon achievement of the earnout milestones and (ii) the “Unvested Shares” - those associated with earnout holders with unvested equity at the closing of the merger that will be earned over the remaining service period with the Company on their unvested equity shares and upon achievement of the earnout milestones. The Vested Shares, which represent 95% of the total earnout shares are classified as liabilities in the consolidated balance sheet at fair value with changes in fair value recognized in the consolidated statements of operations due to the variability in the number of earnout shares at settlement which could change upon a change of control event. The earnout arrangement contains a settlement provision that violates the indexation guidance under ASC 815-40. The Unvested Shares are equity-classified share-based compensation to be recognized over time under ASC 718 due to the service component.
| 26 |
| Table of Contents |
In addition, a portion of the earnout shares may be issued to individuals with unvested equity awards. While the payout of these shares requires the achievement of the earnout milestones, the individuals must complete the remaining service period associated with these unvested equity awards to be eligible to receive the earnout shares. As a result, these unvested earn-out shares are equity-classified awards and have an aggregated grant date fair value of $
As of September 30, 2024, the Company determined the First Operating Performance Milestone (A,2) is achieved and
14. Fair Value Measurements
The following table sets forth by level within the ASC 820, Fair Value Measurement, fair value hierarchy of the Company’s liabilities that are measured at fair value on a recurring basis as of September 30, 2024:
|
|
|
| September 30, 2024 |
|
|
| |||||||||
|
| Level 1 |
|
| Level 2 |
|
| Level 3 |
|
| Total |
| ||||
Liabilities- |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Earnout liability |
| $ |
|
| $ |
|
| $ |
|
| $ |
| ||||
Senior Secured Convertible Promissory Notes |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Warrant liability (Public Warrants) |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Warrant liability (Private Warrants) |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total liabilities measured at fair value |
| $ |
|
| $ |
|
| $ |
|
| $ |
| ||||
The following table sets forth by level within the ASC 820, Fair Value Measurement, fair value hierarchy of the Company’s liabilities that are measured at fair value on a recurring basis as of December 31, 2023:
|
| December 31, 2023 |
| |||||||||||||
|
| Level 1 |
|
| Level 2 |
|
| Level 3 |
|
| Total |
| ||||
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Earnout liability |
| $ |
|
| $ |
|
| $ |
|
| $ |
| ||||
Senior Secured Convertible Promissory Notes |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Warrant liability (Public Warrants) |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Warrant liability (Private Warrants) |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total liabilities measured at fair value |
| $ |
|
| $ |
|
| $ |
|
| $ |
| ||||
| 27 |
| Table of Contents |
The estimated fair value of the earnout liability was determined using a Monte Carlo Model. The assumptions utilized in the calculation are based on the achievement of certain stock price milestones including projected stock price, volatility, probability of meeting the federal law enforcement agency growth and risk-free rate. The following assumptions were used in the simulation at each valuation date:
|
| September 30, 2024 |
|
| December 31, 2023 |
| ||
| Stock price |
| $ |
|
| $ |
| ||
| Risk-free interest rate |
|
| % |
|
| % | ||
| Expected term (in years) |
|
|
|
|
|
| ||
| Expected volatility |
|
| % |
|
| % | ||
| Dividend yield |
|
| % |
|
| % | ||
The assumptions also included the probability of meeting the federal law enforcement agency growth milestone at 100%. The fair value of the
The initial estimated fair value of the private warrants was measured using a Monte Carlo simulation. The estimated fair value of the public warrants is based on the listed price in an active market for such warrants and the fair value of the private placement warrants continues to be measured based on the public warrants listed price.
The estimated fair value of the senior secured convertible promissory notes was measured using a Monte Carlo simulation pricing model that factors in potential outcomes being consummated, such as the convertible notes being repaid in cash and the convertible notes being converted to common stock. All of these scenarios take into consideration the terms and conditions of the underlying convertible notes plus potential changes in the underlying value of the common stock. The following assumptions were used in the simulation:
|
| September 30, 2024 |
|
| December 31, 2023 |
| ||
Stock price |
| $ |
|
|
|
| ||
Effective discount rate |
|
| % |
|
| % | ||
Expected term (in years) |
|
|
|
|
| |||
Expected volatility |
|
| % |
|
| % | ||
Dividend yield |
|
| % |
|
| % | ||
On September 13, 2024, the vested earnout shares were transferred from Level 3 to Level 1 upon the Board approval of the achievement of the First Operating Performance Milestone (A,2). The fair value on the day of transfer was $3,400,000. There were no transfers of financial instruments between valuation levels during the year ended December 31, 2023. The changes in Level 3 liabilities measured at fair value for the nine months ended September 30, 2024 were as follows:
|
| Level 3 |
| |||||||||||||||||
|
| Beginning Balance |
|
| Unrealized and |
|
| Conversions / |
|
| Transfers out |
|
| Ending Balance as of |
| |||||
|
| January 1, 2024 |
|
| Realized Loss |
|
| Settlements (a) |
|
| of Level 3 |
|
| September 30, 2024 |
| |||||
Liabilities- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Earnout liability |
| $ |
|
| $ |
|
| $ |
|
| $ | ( | ) |
| $ |
| ||||
Senior Secured Convertible Promissory Notes |
|
|
|
|
|
|
|
| ( | ) |
|
|
|
|
|
| ||||
|
| $ |
|
| $ |
|
| $ | ( | ) |
| $ | ( | ) |
| $ |
| |||
(a) The conversions and settlements represent the fair value of the Senior Secured Convertible Promissory Notes at the dates of conversion.
| 28 |
| Table of Contents |
15. Earnings per Share
The following table sets forth the computation of basic and diluted net income (loss) per share attributable to common stockholders:
|
| September 30, 2024, |
|
| September 30, 2023, |
| ||||||||||
|
| Three Months Ended |
|
| Nine Months Ended |
|
| Three Months Ended |
|
| Nine Months Ended |
| ||||
Net Income (loss) |
| $ |
|
| $ | ( | ) |
| $ | ( | ) |
| $ | ( | ) | |
Less: interest expense and gain on remeasurement of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
convertible debt |
|
| ( | ) |
|
|
|
|
|
|
|
|
| |||
Net income (loss) - Diluted |
| $ |
|
| $ | ( | ) |
| $ | ( | ) |
| $ | ( | ) | |
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Add: dilutive effect of convertible debt, stock options, SARs, vested earnout shares and warrants |
|
|
|
|
| - |
|
|
| - |
|
|
| - |
| |
Diluted |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
| $ |
|
| $ | ( | ) |
| $ | ( | ) |
| $ | ( | ) | |
Diluted |
| $ |
|
| $ | ( | ) |
| $ | ( | ) |
| $ | ( | ) | |
The following potentially dilutive shares were not included in the calculation of diluted shares outstanding for the periods presented as the effect would have been anti-dilutive:
|
| September 30, 2024 |
|
| September 30, 2023 |
| ||
Public Warrants |
|
|
|
|
| - |
| |
Private Warrants |
|
|
|
|
| - |
| |
Convertible debt |
|
| - |
|
|
|
| |
Warrants |
|
|
|
|
| - |
| |
Outstanding stock options |
|
|
|
|
| - |
| |
|
|
|
|
|
|
| ||
The
As a result of the merger, the weighted-average number of shares of common stock used in the calculation of net income (loss) per share have been retroactively converted by applying the conversion ratio.
16. Subsequent Events
The Company evaluated subsequent events, for the purpose of adjustment or disclosure, up through the date the financial statements were issued. Subsequent to September 30, 2024, there were the following material transaction that occurred that would require recognition or disclosure in the financial statements:
On November 11, 2024, the Company issued
On November 13, 2024, the Company issued
| 29 |
| Table of Contents |
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
The following discussion and analysis summarizes the significant factors affecting our operating results, financial condition, liquidity and cash flows as of and for the periods presented below. The following discussion and analysis should be read in conjunction with our financial statements and the related notes thereto included elsewhere in this report. The discussion contains forward-looking statements that are based on the beliefs of management, as well as assumptions made by, and information currently available to, management. Actual results could differ materially from those discussed in or implied by forward-looking statements as a result of various factors, including those discussed below and elsewhere in this report, particularly in the sections titled “Risk Factors” and “Special Note Regarding Forward-Looking Statements.”
Overview
We are a robust AI-driven data management platform that solves complex data challenges for large institutions operating in dynamic and mission-critical environments with rapidly increasing volumes of data being ingested from a similarly rapidly growing number of data sources.
We solve these challenges by structuring “dark” or unstructured data at the edge, the location at which the data is generated and collected, and leveraging purpose-built AI models. Unstructured, or “dark” data, which is typically categorized as qualitative data, cannot be processed and analyzed via conventional data tools and methods. Conversely, structured data, typically categorized as quantitative data, is highly organized and easily decipherable by machine learning algorithms.
Structuring and then analyzing data using AI models at the edge, versus transmitting the data from the edge back to a central processing location for structuring and analysis, enables real-time decision making and data-driven operational efficiency.
We specialize in ingesting all available metadata from edge-based sensors used by government and law enforcement agencies around the world, including surveillance cameras (video), audio, telemetry, acoustic, seismic, and autonomous devices, along with large commercial corporations with fundamentally similar capabilities and requirements.
Data generated by these edge-based sensors, including video, can then be run through our trained AI models to detect objects present within the video frame. Once an object is detected, for example an automobile, additional identifying characteristics of the object can be extracted from the image including the license plate characters and the make, model, and color of the automobile. This process of analyzing, logging and categorizing ingested data is referred to as “structuring” the data.
Airship AI’s software allows customers to view structured data both in real-time as well as to conduct searches on the structured data at a later point in time. Real-time structured data use includes, for example, alarms on a specific license plate or a specific make, model or color of automobile. Non-real-time structured data use includes, for example, searching a database of video data that has been previously ingested and stored to find instances of a particular license plate being visible, along with other logged vehicle characteristics such as make, model and color of an automobile.
Additional edge deployed AI models enable similar object detection and recognition of common and custom trained objects, such as an aircraft, boat, person, animal, bag, or weapon. Airship AI’s models provide similar data points for these object types allowing analysts the ability to be notified in real-time of the detection of a specified object and similarly search for historically detected objects. Examples include detecting aircrafts and boats along with their respective tail numbers and hull registration numbers.
Our AI modelling process starts with pre-trained AI models from our technology ecosystem partners which we then customize using proprietary datasets tailored towards our customers unique workflow requirements. Where customers have pre-existing AI models or engines, we integrate those models or engines into our edge platform allowing customers to leverage proprietary models within the Airship AI software ecosystem.
Our primary offerings include Outpost AI, Acropolis, and Airship Command. Our offerings allow customers to manage their data across the full data lifecycle, when and where they need it, using a highly secure permissioned based architecture.
Recent Developments
On June 3, 2024, we permanently reduced the exercise price of our outstanding 16,184,612 public warrants and 515,000 private warrants, previously exercisable at $11.50 per share, to an exercise price of $7.80 per share. The purpose of this reduced exercise price was to potentially raise proceeds received from the exercise of such warrants, if any, for working capital and general corporate purposes.
| 30 |
| Table of Contents |
On June 22, 2024, we entered into an extension agreement with Platinum Capital Partner, Inc. to extend the maturity date of a $2,000,000 senior secured convertible promissory note to June 22, 2025. In consideration for entering into the extension agreement, we issued to Platinum 232,360 shares of common stock in payment of all interest and extension fees through June 22, 2025. During the three months ended September 30, 2024, the Company issued 219,763 shares of common stock related to the conversion of $500,000 of the senior secured convertible note.
On September 3, 2024, we closed an offering of $8 million of shares of common stock and common stock purchase warrants and received net proceeds of approximately $7.3 million, after deducting the estimated offering expenses payable by us, including the placement agent fees. We intend to use the net proceeds from the offering for working capital and general corporate purposes, including cost of goods sold purchases, personnel and product development.
On September 27, 2024, the Company entered into a Master Loan Agreement with Mr. Huang, whereby he may provide additional funding of up to $1,500,000 under certain terms and conditions. The agreement provides for interest of 6%. The Company agreed to pay interest for the 2024 advances of $11,913 and issued warrants to purchase up to 220,000 shares of common stock. The warrants have an exercise price of $2.36 per share, are exercisable immediately upon issuance and will expire in five years following the date of issuance. There are no outstanding advances under this Master Loan Agreement as of September 30, 2024.
Fair Value Transactions
As a result of the merger, we entered into the following transactions that were measured at fair value and vary quarterly with the share price and other items. Any change is non-cash and is recorded as a gain or loss in other income (expense). See Note 14– Fair Value Measurements for more information.
|
| Liability as of |
|
| Liability as of |
| ||
|
| September 30, 2024 |
|
| December 31, 2023 |
| ||
|
|
|
|
|
|
| ||
Earnout liability |
| $ | 6,229,390 |
|
| $ | 5,133,428 |
|
Senior Secured Convertible Promissory Notes |
|
| 1,793,360 |
|
|
| 2,825,366 |
|
Warrant liability (Public Warrants) |
|
| 3,393,393 |
|
|
| 646,428 |
|
Warrant liability (Private Warrants) |
|
| 108,150 |
|
|
| 21,557 |
|
Total liabilities measured at fair value |
| $ | 11,524,293 |
|
| $ | 8,626,779 |
|
|
|
|
|
|
|
|
|
|
Other loss related to instruments recorded at fair value during the nine months ended September 30, 2024 and 2023 |
| $ | (4,071,156 | ) |
| $ | (400,921 | ) |
Private Placement and Public Warrants
At the merger closing, we assumed 515,000 private placement warrants and 16,184,612 public warrants. On June 3, 2024, we permanently reduced the exercise price of such warrants from $11.50 per share to an exercise price of $7.80 per share. The purpose of this reduced exercise price was to potentially raise proceeds received from the exercise of such warrants, if any, for working capital and general corporate purposes. As of September 30, 2024, there were 515,000 private placement warrants and 16,159,012 public warrants outstanding.
Key Performance Indicators
Historically, a majority of our product revenue has consisted primarily of a bundled hardware and software product and to date we have sold or licensed a minimal amount of standalone software. In the future, we expect to see more delivery of our products using a cloud based software solution which will allow us to create additional subscription revenue.
| 31 |
| Table of Contents |
We have historically evaluated our business solely based on revenue generated from customers and we have not tracked any other customer-related metrics. As we grow and increase our product offerings and customer base, we intend to modify and develop more advanced performance indicators. We believe the following key performance indicators apply to us in the future:
| ☐ | Growth within existing government customers. While we currently have a strong footprint across multiple large U.S. government agencies, growing our business within these agencies outside of the investigation focused departments is a fundamental area of our projected growth. Our ability to expand our footprint by implementing AI based solutions that leverage our core existing competencies within the agencies will be a critical indicator of the success of this strategy. We will measure progress against this objective through the disclosure of awards for new business within these agencies during the affected timeframe, providing tangible evidence of the success of our strategy to both management and investors alike. |
|
|
|
| ☐ | Greater penetration into the commercial marketplace. While we have several existing customers in the commercial marketplace, our ability to build on the solutions we provide those customers and expand that base will be critical to our projected growth objectives. We will measure progress against this objective through the disclosure of the number of new commercial customers added during the affected timeframe, providing tangible evidence of the success of our strategy to both management and investors alike. |
|
|
|
| ☐ | Expansion of our edge AI based solutions. We began to sell AI based solutions in late 2022. Our current strategy is highly focused on the transition of data management and analysis workloads to the edge, driving efficiency and cost savings for our customers. This strategy also includes new models being trained to extract data at the edge which enables real-time intelligent decision making for our customers. We will measure progress against this objective through the disclosure of the numbers of edge AI hardware devices we are selling as well as the growth of our edge AI analytic capabilities, providing tangible evidence of the success of our strategy to both management and investors alike. |
Principal Factors Affecting Our Financial Performance
We believe the following factors and trends may cause previously reported financial information not to be necessarily indicative of future operating results or future financial conditions:
| ☐ | Increase in the sales of lower margin solutions as we expand our operational footprint. While our current focus remains on expanding our AI driven software application portfolio, opportunities will continue to present themselves to provide those software-based solutions as part of a larger hardware-based turn-key solutions where Airship AI can provide a unique value-add to the customer. While these solutions will positively affect revenue we anticipate our operating profits in future periods may be adversely affected as compared to previous years due to the lower operating margin for hardware versus software applications. |
|
|
|
| ☐ | Challenges due to geo-political driven supply-chain constraints. While many of the COVID-19 driven supply chain issues have been resolved, challenges to the timely production and delivery of Taiwan based products we utilize for our edge AI platform due to geo-political factors is a concern looking forward. In the event that our suppliers are unable to provide timely delivery of those supplies it will significantly impact our ability to meet delivery schedules for existing and anticipated edge AI hardware-based solutions. |
|
|
|
| ☐ | Near-term impacts due to merger and acquisition activity. If Airship AI merges with or acquires another company, it is reasonably expected that there will be increased operating expenses and costs associated with the merger that could negatively impact operating profits in the future periods immediately following the M&A event. The extent and longevity of those impacts is not possible to quantify. |
Segment Reporting
The Financial Accounting Standards Board, or FASB, Accounting Standard Codification, or ASC, Topic 280, Segment Reporting, requires that an enterprise report selected information about reportable segments in its financial reports issued to its stockholders. Management monitors the revenue and expense components of the various products and services the Company offers, but operations are managed and financial performance is evaluated on a corporation-wide basis in comparison to a business plan which is developed each year. Accordingly, all operations are considered by management to be one operating segment and one reportable segment as contained in the Consolidated Statements of Operations and Comprehensive Loss to the consolidated financial statements.
| 32 |
| Table of Contents |
Results of Operations
The following table sets forth key components of our results of operations during the three months ended September 30, 2024 and 2023.
(dollars in thousands)
|
| Three Months Ended September 30, |
| |||||||||||||
|
| 2024 |
|
| 2023 |
|
| $ Variance |
|
| % Variance |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net revenues |
| $ | 2,868 |
|
| $ | 2,384 |
|
| $ | 484 |
|
|
| 20.3 | % |
Cost of net revenues |
|
| 714 |
|
|
| 782 |
|
|
| 68 |
|
|
| 8.7 | % |
Gross profit |
|
| 2,154 |
|
|
| 1,602 |
|
|
| 552 |
|
|
| 34.5 | % |
Research and development expenses |
|
| 1,074 |
|
|
| 689 |
|
|
| (385 | ) |
|
| -55.9 | % |
Selling, general and administrative expenses |
|
| 2,667 |
|
|
| 2,142 |
|
|
| (525 | ) |
|
| -24.5 | % |
Total operating expenses |
|
| 3,741 |
|
|
| 2,831 |
|
|
| (910 | ) |
|
| -32.1 | % |
Operating loss |
|
| (1,587 | ) |
|
| (1,229 | ) |
|
| (358 | ) |
|
| -29.1 | % |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain from change in fair value of earnout liability |
|
| 5,512 |
|
|
| - |
|
|
| 5,512 |
|
|
| 100.0 | % |
Gain from change in fair value of warrant liability |
|
| 2,471 |
|
|
| - |
|
|
| 2,471 |
|
|
| 100.0 | % |
Gain (loss) from change in fair value of convertible debt |
|
| 371 |
|
|
| (401 | ) |
|
| 772 |
|
|
| -192.5 | % |
Loss on note conversion |
|
| (435 | ) |
|
| - |
|
|
| (435 | ) |
|
| -100.0 | % |
Interest expense, net |
|
| (134 | ) |
|
| (39 | ) |
|
| (95 | ) |
|
| -243.6 | % |
Other income (expense) |
|
| 16 |
|
|
| 2 |
|
|
| 14 |
|
|
| -700.0 | % |
Total other income (expense), net |
|
| 7,801 |
|
|
| (438 | ) |
|
| 8,239 |
|
|
| 1881.1 | % |
Income (loss) before income taxes |
|
| 6,214 |
|
|
| (1,667 | ) |
|
| 7,881 |
|
|
| 472.8 | % |
Provision for income taxes |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
Net income (loss) |
| $ | 6,214 |
|
| $ | (1,667 | ) |
| $ | 7,881 |
|
|
| 472.8 | % |
Net Revenues — Net revenues for the three months ended September 30, 2024 increased $484,000 to $2,868,000 as compared to $2,384,000 for the three months ended September 30, 2023, as a result of increased product sales. We received purchase orders from various federal government agency customers totaling over $16 million from which we partially shipped in the three months ended September 30, 2024.
Cost of Net Revenues — Cost of net revenues primarily consists of product costs and post customer support. For the three months ended September 30, 2024, cost of sales decreased $68,000 to $714,000 as compared to $782,000 for the three months ended September 30, 2023. The decrease was due to reduced equipment purchases and increased Outpost AI sales during the three months ended September 30, 2024.
Research and Development Expenses — Research and development expenses for the three months ended September 30, 2024 increased $385,000 to $1,074,000 as compared to $689,000 for the three months ended September 30, 2023. The increase was due to increased expenses for product development.
Selling, General and Administrative Expenses — Selling, general and administrative expenses for the three months ended September 30, 2024 increased $525,000 to $2,667,000 as compared to $2,142,000 for the three months ended September 30, 2023. The increase was due to (i) increased insurance costs of $142,000; (ii) increased professional fees of $333,000, primarily related to the merger and the Nasdaq listing; and (iii) increased other operating expenses of $50,000.
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Other Income Expense — Other income for the three months ended September 30, 2024 was $7,801,000 as compared to other expense of $438,000 for the three months ended September 30, 2023. Other expense for the three months ended September 30, 2024 consisted of (i) gain from change in fair value of earnout liability of $5,512,000; (ii) gain from change in fair value of warrant liability of $2,471,000; (iii) gain from change in fair value of convertible debt of $371,000; (iv) other income of $16,000; offset by (v) loss on note conversion of $435,000; and (vi) interest expense of $134,000. The gain from change in fair value of various financial instruments was primarily the result of a lower stock price.
The other expense for the three months ended September 30, 2023 related to (i) the loss in change of the fair value of the convertible note of $401,000; (ii) interest expense of $39,000; and offset by (iii) other income of $2,000.
Net Income/Loss — Net income for the three months ended September 30, 2024 was $6,214,000 as compared to net loss of $1,667,000 for the three months ended September 30, 2023. The net income is reduced by noncash items of $7,338,000, primarily the gain from the change in fair value of various financial instruments. Noncash items included (i) stock based compensation of $557,000; (ii) net amortization of operating lease right of use asset of $24,000; (iii) loss on note conversions of $434,000; offset by (iv) gain from change in fair value of warrant liability of $2,471,000; (v) gain from change in fair value of earnout liability of $5,571,000; and (vi) gain from change in fair value of convertible note of $370,000.
The net loss for the three months ended September 30, 2023 included noncash expenses of $687,000.
The following table sets forth key components of our results of operations during the nine months ended September 30, 2024 and 2023.
(dollars in thousands)
|
| Nine Months Ended September 30, |
| |||||||||||||
|
| 2024 |
|
| 2023 |
|
| $ Variance |
|
| % Variance |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net revenues |
| $ | 19,844 |
|
| $ | 8,093 |
|
| $ | 11,751 |
|
|
| 145.2 | % |
Cost of net revenues |
|
| 10,556 |
|
|
| 4,013 |
|
|
| (6,543 | ) |
|
| -163.0 | % |
Gross profit |
|
| 9,288 |
|
|
| 4,080 |
|
|
| 5,208 |
|
|
| 127.6 | % |
Research and development expenses |
|
| 2,472 |
|
|
| 2,028 |
|
|
| (444 | ) |
|
| -21.9 | % |
Selling, general and administrative expenses |
|
| 8,830 |
|
|
| 8,068 |
|
|
| (762 | ) |
|
| -9.4 | % |
Total operating expenses |
|
| 11,302 |
|
|
| 10,096 |
|
|
| (1,206 | ) |
|
| -11.9 | % |
Operating loss |
|
| (2,014 | ) |
|
| (6,016 | ) |
|
| 4,002 |
|
|
| 66.5 | % |
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from change in fair value of earnout liability |
|
| (1,096 | ) |
|
| - |
|
|
| (1,096 | ) |
|
| -100.0 | % |
Loss from change in fair value of warrant liability |
|
| (2,834 | ) |
|
| - |
|
|
| (2,834 | ) |
|
| -100.0 | % |
Loss from change in fair value of convertible debt |
|
| (142 | ) |
|
| (401 | ) |
|
| 259 |
|
|
| -64.6 | % |
Loss on note conversion |
|
| (593 | ) |
|
| - |
|
|
| (593 | ) |
|
| -100.0 | % |
Interest expense, net |
|
| (587 | ) |
|
| (58 | ) |
|
| (529 | ) |
|
| -912.1 | % |
Other (expense) |
|
| (23 | ) |
|
| (7 | ) |
|
| (16 | ) |
|
| -228.6 | % |
Total other income (expense), net |
|
| (5,275 | ) |
|
| (466 | ) |
|
| (4,809 | ) |
|
| -1032.0 | % |
Loss before income taxes |
|
| (7,289 | ) |
|
| (6,482 | ) |
|
| (807 | ) |
|
| -12.4 | % |
Provision for income taxes |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
Net (loss) |
| $ | (7,289 | ) |
| $ | (6,482 | ) |
| $ | (807 | ) |
|
| -12.4 | % |
Net Revenues — Net revenues for the nine months ended September 30, 2024 increased $11,751,000 to $19,844,000 as compared to $8,093,000 for the nine months ended September 30, 2023, as a result of increased product sales. We received purchase orders from various federal government agency customers totaling over $16 million from which we shipped in the nine months ended September 30, 2024.
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Cost of Net Revenues — Cost of net revenues primarily consists of product costs and post customer support. For the nine months ended September 30, 2024, cost of sales increased $6,543,000 to $10,556,000 as compared to $4,013,000 for the nine months ended September 30, 2023. The increase was due to higher product sales and product mix with increased equipment purchases during the nine months ended September 30, 2024.
Research and Development Expenses — Research and development expenses for the nine months ended September 30, 2024 increased $444,000 to $2,472,000 as compared to $2,028,000 for the nine months ended September 30, 2023. The increase was due to increased expenses for product development.
Selling, General and Administrative Expenses — Selling, general and administrative expenses for the nine months ended September 30, 2024 increased $762,000 to $8,830,000 as compared to $8,068,000 for the nine months ended September 30, 2023. The increase was due to (i) increased insurance costs of $574,000; (ii) increased professional fees of $1,712,000, primarily related to the merger and the Nasdaq listing; (iii) increased other operating expenses of $4,000; and offset by (iv) decreased stock based compensation of $1,527,000. The stock based compensation during the nine months ended September 30, 2023 included warrants to purchase common stock issued on May 8, 2023 for 765,000 shares to each of the two founders valued at $2,136,000.
Other Expense — Other expense for the nine months ended September 30, 2024 was $5,275,000 as compared to other expense of $466,000 for the nine months ended September 30, 2023. Other expense for the nine months ended September 30, 2024 consisted of (i) loss from change in fair value of earnout liability of $1,096,000; (ii) loss from change in fair value of warrant liability of $2,834,000; (iii) loss from change in fair value of convertible debt of $142,000; (iv) loss on note conversion of $593,000; (v) interest expense of $587,000: and (vi) other expense of $23,000. The loss from change in fair value of various financial instruments was primarily the result of an increase in the stock price.
The other expense for the nine months ended September 30, 2023 related to (i) the loss in change of the fair value of the convertible note of $401,000; (ii) interest expense of $58,000; and (iii) other expense of $7,000.
Net Loss — Net loss for the nine months ended September 30, 2024 was $7,289,000 as compared to a net loss of $6,482,000 for the nine months ended September 30, 2023. The net loss primarily related to noncash items of $6,649,000. Noncash items included (i) depreciation of $2,000; (ii) stock based compensation of $1,088,000; (iii) net amortization of operating lease right of use asset of $175,000; (iv) issuance of common stock for services of $198,000; (v) noncash interest expense of $521,000; (vi) loss from change in fair value of warrant liability of $2,834,000; (vii) loss from change in fair value of earnout liability of $1,096,000; (viii) loss from change in fair value of convertible note of $142,000; and (ix) loss on note conversions of $593,000.
The net loss for the nine months ended September 30, 2023 included noncash expenses of $3,462,000 of which stock-based compensation was $2,616,000.
Liquidity and Capital Resources as of September 30, 2024 and December 31, 2023
Liquidity is the ability of a company to generate funds to support its current and future operations, satisfy its obligations, and otherwise operate on an ongoing basis. Significant factors in the management of liquidity are funds generated by operations, levels of accounts receivable and accounts payable and capital expenditures. We have incurred losses from operations in the past few years and had an accumulated deficit of $24.8 million as of September 30, 2024. As disclosed in Note 1, we closed an $8 million public offering with approximately $7.3 million in net proceeds. In November 2024, we analyzed our cash requirements and operations at least through November 2025 and determined that, based upon our current available cash and operations, we have no substantial doubt about our ability to continue as a going concern. Our assessment of the period of time through which its financial resources will be adequate to support our operations is a forward-looking statement and involves risks and uncertainties. Our actual results could vary as a result of its near and long-term future capital requirements that will depend on many factors.
Operating Activities
Net cash used in operating activities for the nine months ended September 30, 2024 was $4,398,000. This amount was primarily related to (i) net loss of $7,289,000; and (ii) net working capital reductions of $3,758,000 (including a $2,059,000 reduction in deferred revenues); offset by (iii) noncash items of $6,649,000. Noncash items included (iv) depreciation of $2,000; (v) stock based compensation of $1,088,000; (vi) net amortization of operating lease right of use asset of $175,000; (vii) issuance of common stock for services of $198,000; (viii) noncash interest expense of $521,000; (ix) loss from change in warrant liability of $2,834,000; (x) loss from change in earnout liability of $1,096,000; (xi) loss from change in fair value of convertible note of $142,000; and (xii) loss on note conversions of $593,000.
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| Table of Contents |
Net cash used in operating activities for the nine months ended September 30, 2023 was $2,524,000. This amount was primarily related to (i) a net loss of $6,482,000; offset by (ii) depreciation of $11,000; (iii) stock based compensation of $2,616,000; (iv) net amortization of operating lease right of use asset of $513,000; (v) accelerated amortization of ROU asset of $265,000; (vi) gain from lease termination of $344,000; (vii) unrealized loss for increase in fair value of convertible promissory note of $401,000; and (viii) working capital changes of $496,000.
Financing Activities
Net cash provided by financing activities for the nine months ended September 30, 2024 was $7,780,000 and consisted of (i) proceeds from offering of $7,290,000; (ii) proceeds from exercise of warrants of $294,000; and (iii) proceeds from stock option exercises of $196,000.
Net cash provided by financing activities for the nine months ended September 30, 2023 was $2,710,000 and consisted of (i) issuance of a senior secured convertible promissory note of $1,985,000; (ii) net advances provided by the founders of $1,150,000; and offset by (iii) the payoff of small business loan and line of credit of $425,000.
Debt Financing Arrangements
On June 22, 2023, we entered into a senior secured convertible promissory note with Platinum Capital Partners Inc. and received $2,000,000.
On February 2, 2024, we issued an amended and restated senior secured convertible promissory note to Platinum in the principal amount of $2,000,000. Interest accrued on the Platinum convertible note at the rate of 6% per annum calculated on the basis of 360 days. At the option of Platinum, the $2,000,000 principal amount of the note plus any accrued but unpaid interest is convertible into shares of common stock at a conversion price per share equal to the lower of (i) $3.69717, subject to appropriate adjustment as provided in the note, and (ii) 65% of the VWAP of the common stock for the five trading days immediately prior to any conversion, but in no event below $2.27518, subject to appropriate adjustment as provided in the note. The note contains “weighted average” anti-dilution protection for issuances of shares of common stock or common stock equivalents at a price less than the conversion price then in effect.
In connection with the issuance of the Platinum convertible note, we issued to Platinum an amended and restated common stock purchase warrant dated February 2, 2024, to purchase 189,334 shares of the Company’s common stock at an exercise price per share of $3.69717. On March 18, 2024, Platinum exercised the Platinum warrant and received 137,367 shares of common stock. Platinum forfeited 51,967 shares.
On June 22, 2024, we entered into an extension agreement related to the Platinum convertible note. The extension agreement extended the due date of the note to June 22, 2025. In consideration for entering into the extension agreement, we issued to Platinum 232,360 shares of restricted common stock in payment of all interest and extension fees through June 22, 2025. Subject to the terms and conditions of such extension agreement, for a period commencing on December 22, 2024 and ending at the close of business on December 22, 2025, Platinum has a one-time put right to have us purchase all or a portion of Platinum’s 232,360 restricted shares at $2.27518 per share. We granted piggyback registration rights to Platinum.
The obligations under the Platinum convertible note are secured by a blanket lien on all our assets pursuant to an Amended and Restated Security Agreement dated February 2, 2024 and are guaranteed pursuant to an Amended and Restated Guaranty dated February 2, 2024. We also concurrently entered into an Amended and Restated Subordination Agreement.
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| Table of Contents |
Contractual Obligations and Commitments
|
|
|
|
| Less Than |
|
|
|
|
|
|
| ||||
Contractual Cash Obligations |
| Total |
|
| 1 Year |
|
| 1-3 Years |
|
| 4-5 Years |
| ||||
Operating lease cash payments |
| $ | 1,138,331 |
|
| $ | 359,746 |
|
| $ | 746,252 |
|
| $ | 32,333 |
|
On July 13, 2023, we entered into a lease in Redmond, WA for 15,567 square feet of office and warehouse space which started October 1, 2023. The monthly payment is $25,000 per month. The lease expires October 31, 2027 and the monthly payment increases 3% on July 31, 2024 and each year thereafter. There is a one three year option to extend the lease based on the fair market rate on October 31, 2027, which we expect to exercise.
On February 29, 2024, we extended an office lease in Moorestown, North Carolina. We lease 3,621 square feet and the net monthly payment is $6,488. On August 27, 2024, we extended the lease to February 28, 2025.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements (as that term is defined in Item 303 of Regulation S-K) that are reasonably likely to have a current or future material effect on our financial condition, revenue or expenses, results of operations, liquidity, capital expenditures or capital resources.
Critical Accounting Policies and Estimates
Our consolidated financial statements have been prepared in accordance with U.S. GAAP. The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses, and related disclosures. We base our estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances. We evaluate our estimates and assumptions on an ongoing basis. Actual results could differ materially from those estimates due to risks and uncertainties, including uncertainty in the current economic environment. To the extent that there are material differences between these estimates and our actual results, our future consolidated financial statements will be affected.
We believe that the significant accounting policies described in “Note 2, Summary of Significant Accounting Policies” to our audited consolidated financial statements are accurate and complete. The critical accounting estimates and policies during the nine months ended September 30, 2024 have not materially changed to those discussed in our Annual Report on Form 10-K for the year ended December 31, 2023.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
Not applicable to smaller reporting companies.
ITEM 4. CONTROLS AND PROCEDURES.
a) Evaluation of Disclosure Controls and Procedures
We conducted an evaluation, under the supervision and with the participation of our management, of the effectiveness of the design and operation of our disclosure controls and procedures. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Securities and Exchange Act of 1934, as amended (“Exchange Act”), means controls and other procedures of a company that are designed to ensure that information required to be disclosed by the company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission's rules and forms. Disclosure controls and procedures also include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company's management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of September 30, 2024, our disclosure controls and procedures are effective at the reasonable assurance level.
b) Inherent Limitations on Internal controls
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate. A control system, no matter how well designed and operated can provide only reasonable, but not absolute, assurance that the control system’s objectives will be met. The design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their cost.
c) Changes in Internal Control over Financial Reporting
During the nine months ended September 30, 2024, there were no other changes in our internal controls over financial reporting, which were identified in connection with our management’s evaluation required by paragraph (d) of rules 13a-15 and 15d-15 under the Exchange Act, that materially affected, or is reasonably likely to have a material effect on our internal control over financial reporting.
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| Table of Contents |
PART II
ITEM 1. LEGAL PROCEEDINGS.
From time to time, we may become involved in actions, claims, litigation, and other legal proceedings occurring in the ordinary course of its business from time to time, including assertions by third parties relating to intellectual property infringement, contract or warranty breaches, or employment-related matters. We are not currently a party to any actions, claims, suits, or other legal procedures whose conclusion, if not determined in our favor, would have a major adverse effect on our business, financial condition, or results of operations, either individually or in the aggregate.
ITEM 1A. RISK FACTORS.
We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item. Our market risks are similar to those disclosed under the caption “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023, and our other filings with the SEC.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
During the three months ended September 30, 2024, we had the following sales of unregistered equity securities:
We issued an aggregate of 49,197 shares of common stock upon the exercise of stock options at an exercise price of $1.64 per share. This issuance was made pursuant to the exemption from registration under the Securities Act in reliance on Section 4(a)(2).
During the three months ended September 30, 2024, we issued 219,763 shares of common stock related to the conversion of the Platinum convertible note. This issuance was made pursuant to the exemption from registration under the Securities Act in reliance on Section 4(a)(2).
On September 13, 2024, we issued an additional 86,198 shares of common stock related to the conversion of notes at $2.65 per share.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
None.
ITEM 5. OTHER INFORMATION.
None.
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| Table of Contents |
ITEM 6. EXHIBITS.
Exhibit No. |
| Description |
| ||
| ||
| ||
| ||
| ||
| ||
| ||
| ||
| ||
| ||
| ||
101.INS |
| Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because iXBRL tags are embedded within the Inline XBRL document). |
101.SCH |
| Inline XBRL Taxonomy Extension Schema Document. |
101.CAL |
| Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
101.DEF |
| Inline XBRL Taxonomy Extension Definition Linkbase Document. |
101.LAB |
| Inline XBRL Taxonomy Extension Labels Linkbase Document. |
101.PRE |
| Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
104 |
| The Cover Page Interactive Data File, formatted in Inline XBRL (included within the Exhibit 101 attachments). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.