Forward-looking Information
This press release and the related earnings call contain “forward-looking statements” regarding the intent, beliefs or current expectations of the Company for purposes of the federal securities laws. These forward-looking statements include, but are not limited to, statements regarding Mobix Labs, Inc. and Mobix Labs, Inc.’s management team’s expectations, hopes, beliefs, intentions or strategies regarding the future. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would,” “poised” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this presentation and discussion may include, for example, statements about (i) our agreement to acquire RaGE Systems and the anticipated timing of closing, as well as any projections or expectations related to its financial performance or its benefit to us; (ii) our expectations related to the amount of proceeds available to us pursuant to our equity line of credit with B. Riley Principal Capital II, LLC; (iii) our financial outlook; (iv) future market conditions and (v) any future product enhancements or developments. These forward-looking statements are based on information available as of the date of this presentation and discussion, and current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we undertake no obligations to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. In addition, these forward-looking statements and the information in this press release and the earnings call are qualified in their entirety by cautionary statements and risk factor disclosures contained in the Company’s Securities and Exchange Commission filings, including the Company’s Registration Statement on Form S-1 filed on May 2, 2024. All forward-looking statements in this press release are based on information available to us on the date hereof, and we assume no obligation to update such statements.
As a result of a number of known and unknown risks and uncertainties, our actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Some factors that could cause actual results to differ include (i) the risk that the price of our securities may be volatile due to a variety of factors, including changes in the highly competitive industries in which we operate, variations in performance across competitors, changes in laws, regulations, technologies, the global supply chain, and macro-economic and social environments affecting our business; (ii) the inability to meet future capital requirements and risks related to our ability to raise additional capital including potential dilution to our stockholders; (iii) the risk that we are unable to successfully commercialize our products and solutions, or experience significant delays in doing so; (iv) the risk that we may not be able to generate income from operations in the foreseeable future; (v) the risks concerning our ability to continue as a going concern; (vi) the risk that we experience difficulties in managing our growth and expanding operations; (vii) the risk that we may not be able to consummate planned strategic acquisitions, or fully realize anticipated benefits from past or future acquisitions or investments; (viii) the risk that litigation may be commenced against us; (ix) the risk that our patent applications may not be approved or may take longer than expected, and we may incur substantial costs in enforcing and protecting our intellectual property; (x) the risk of being an early stage company and that our limited operating history may make it difficult to evaluate our future prospects and the risks and challenges that we may encounter; (xi) the risk that we cannot predict whether we will maintain revenue growth; (xii) the risk that the markets for our semiconductor products and solutions are highly competitive; (xiii) the risk that we may not satisfy the conditions to utilize the committed equity facility with B. Riley Principal Capital II, LLC; (xiv) our inability to predict the actual gross proceeds we may receive pursuant to the committed equity facility with B. Riley Principal Capital II, LLC; (xv) the risk that future sales of our Class A Common Stock may cause the market price of our Class A Common Stock to drop significantly, even if our business is doing well; (xvi) the inability to maintain our listing of securities on Nasdaq; (xvii) the impact of health epidemics, such as the COVID-19 pandemic, on our business and industry and the actions we may take in response thereto and to other geopolitical concerns; and (xviii) inflation and unfavorable global economic conditions could adversely affect our business.
Mobix Labs, Inc. | ||||||||||||||||
Condensed Consolidated Statements of Operations and Comprehensive Loss | ||||||||||||||||
(unaudited, in thousands, except share and per share amounts) | ||||||||||||||||
Three months ended March 31, | Six months ended March 31, | |||||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||
Net revenue | ||||||||||||||||
Product sales | $ |
1,145 |
|
$ |
32 |
|
$ |
1,430 |
|
$ |
711 |
|
||||
Costs and expenses | ||||||||||||||||
Cost of revenue |
|
952 |
|
|
209 |
|
|
1,281 |
|
|
903 |
|
||||
Research and development |
|
1,397 |
|
|
2,633 |
|
|
2,959 |
|
|
6,050 |
|
||||
Selling, general and administrative |
|
7,358 |
|
|
9,029 |
|
|
23,021 |
|
|
14,823 |
|
||||
Loss from operations |
|
(8,562 |
) |
|
(11,839 |
) |
|
(25,831 |
) |
|
(21,065 |
) |
||||
Interest expense |
|
248 |
|
|
794 |
|
|
1,105 |
|
|
877 |
|
||||
Change in fair value of earn-out liability |
|
(5,174 |
) |
|
- |
|
|
(29,938 |
) |
|
- |
|
||||
Change in fair value of PIPE make-whole liability |
|
(3,336 |
) |
|
- |
|
|
(432 |
) |
|
- |
|
||||
Change in fair value of private warrants |
|
420 |
|
|
- |
|
|
480 |
|
|
- |
|
||||
Change in fair value of SAFEs |
|
- |
|
|
508 |
|
|
10 |
|
|
558 |
|
||||
Merger-related transaction costs expensed |
|
- |
|
|
- |
|
|
4,009 |
|
|
- |
|
||||
Other non-operating losses, net |
|
1,049 |
|
|
- |
|
|
1,049 |
|
|
- |
|
||||
Loss before income taxes |
|
(1,769 |
) |
|
(13,141 |
) |
|
(2,114 |
) |
|
(22,500 |
) |
||||
Provision (benefit) for income taxes |
|
(16 |
) |
|
1 |
|
|
(1,296 |
) |
|
32 |
|
||||
Net loss and comprehensive loss |
|
(1,753 |
) |
|
(13,142 |
) |
|
(818 |
) |
|
(22,532 |
) |
||||
Deemed dividend |
|
661 |
|
|
- |
|
|
661 |
|
|
- |
|
||||
Net loss available to common stockholders | $ |
(2,414 |
) |
$ |
(13,142 |
) |
$ |
(1,479 |
) |
$ |
(22,532 |
) |
||||
Net loss per common share: | ||||||||||||||||
Basic | $ |
(0.09 |
) |
$ |
(0.94 |
) |
$ |
(0.06 |
) |
$ |
(1.71 |
) |
||||
Diluted | $ |
(0.21 |
) |
$ |
(0.94 |
) |
$ |
(0.10 |
) |
$ |
(1.71 |
) |
||||
Weighted-average common shares outstanding: | ||||||||||||||||
Basic |
|
28,045,995 |
|
|
14,025,304 |
|
|
24,259,035 |
|
|
13,189,879 |
|
||||
Diluted |
|
29,199,253 |
|
|
14,025,304 |
|
|
24,914,569 |
|
|
13,189,879 |
|
Mobix Labs, Inc. | ||||||||||||||||
Reconciliation of GAAP Loss from Operations to Non-GAAP Loss from Operations | ||||||||||||||||
(unaudited, in thousands) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||
Computation of non-GAAP loss from operations: | ||||||||||||||||
GAAP loss from operations | $ |
(8,562 |
) |
$ |
(11,839 |
) |
$ |
(25,831 |
) |
$ |
(21,065 |
) |
||||
Depreciation |
|
117 |
|
|
112 |
|
|
230 |
|
|
225 |
|
||||
Amortization of acquisition related intangible assets |
|
399 |
|
|
210 |
|
|
636 |
|
|
421 |
|
||||
Merger and acquisition-related expenses |
|
2,398 |
|
|
11 |
|
|
2,515 |
|
|
44 |
|
||||
Inventory write-off |
|
125 |
|
|
- |
|
|
125 |
|
|
- |
|
||||
Stock-based compensation expense |
|
1,441 |
|
|
5,779 |
|
|
14,146 |
|
|
9,635 |
|
||||
Non-GAAP loss from operations | $ |
(4,082 |
) |
$ |
(5,727 |
) |
$ |
(8,179 |
) |
$ |
(10,740 |
) |
||||
Three Months Ended | Six Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2024 |
2023 |
2024 |
2023 |
|||||||||||||
GAAP gross profit: | ||||||||||||||||
GAAP net revenue | $ |
1,145 |
|
$ |
32 |
|
$ |
1,430 |
|
$ |
711 |
|
||||
GAAP cost of revenue | 952 |
|
209 |
|
1,281 |
|
903 |
|
||||||||
GAAP gross profit | $ |
193 |
|
$ |
(177 |
) |
$ |
149 |
|
$ |
(192 |
) |
||||
GAAP gross margin % |
|
16.9 |
% |
|
-553.1 |
% |
|
10.4 |
% |
|
-27.0 |
% |
||||
Computation of non-GAAP gross profit: | ||||||||||||||||
GAAP gross profit | $ |
193 |
|
$ |
(177 |
) |
$ |
149 |
|
$ |
(192 |
) |
||||
Amortization of acquisition-related intangible assets |
|
68 |
|
|
68 |
|
|
136 |
|
|
136 |
|
||||
Inventory write-off |
|
125 |
|
|
- |
|
|
125 |
|
|
- |
|
||||
Stock-based compensation expense |
|
- |
|
|
11 |
|
|
- |
|
|
22 |
|
||||
Non-GAAP gross profit | $ |
386 |
|
$ |
(98 |
) |
$ |
410 |
|
$ |
(34 |
) |
||||
Non-GAAP gross margin % |
|
33.7 |
% |
|
-306.3 |
% |
|
28.7 |
% |
|
-4.8 |
% |
Mobix Labs, Inc. | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(unaudited, in thousands) | ||||||||
March 31, |
September 30, |
|||||||
2024 |
2023 |
|||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ |
2,993 |
|
$ |
89 |
|
||
Accounts receivable, net |
|
461 |
|
|
53 |
|
||
Inventory |
|
361 |
|
|
319 |
|
||
Prepaid expenses and other current assets |
|
633 |
|
|
369 |
|
||
Total current assets |
|
4,448 |
|
|
830 |
|
||
Property and equipment, net |
|
1,763 |
|
|
1,859 |
|
||
Intangible assets, net |
|
11,151 |
|
|
5,287 |
|
||
Goodwill |
|
10,759 |
|
|
5,217 |
|
||
Operating lease right-of-use assets |
|
946 |
|
|
1,030 |
|
||
Deferred transaction costs |
|
- |
|
|
4,125 |
|
||
Other assets |
|
430 |
|
|
400 |
|
||
Total assets | $ |
29,497 |
|
$ |
18,748 |
|
||
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK | ||||||||
AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||
Current liabilities | ||||||||
Accounts payable | $ |
6,693 |
|
$ |
8,995 |
|
||
Accrued expenses and other current liabilities |
|
7,036 |
|
|
4,519 |
|
||
Deferred purchase consideration |
|
803 |
|
|
- |
|
||
Notes payable |
|
400 |
|
|
1,286 |
|
||
Notes payable - related parties |
|
2,763 |
|
|
3,793 |
|
||
Simple agreements for future equity |
|
- |
|
|
1,512 |
|
||
Operating lease liabilities, current |
|
332 |
|
|
318 |
|
||
Total current liabilities |
|
18,027 |
|
|
20,423 |
|
||
Earn-out liability |
|
3,621 |
|
|
- |
|
||
PIPE derivative liability |
|
1,639 |
|
|
- |
|
||
Deferred tax liability |
|
176 |
|
|
86 |
|
||
Operating lease liabilities, noncurrent |
|
1,109 |
|
|
1,280 |
|
||
Other noncurrent liabilities |
|
772 |
|
|
- |
|
||
Total liabilities |
|
25,344 |
|
|
21,789 |
|
||
Commitments and contingencies | ||||||||
Redeemable convertible preferred stock |
|
- |
|
|
2,300 |
|
||
Stockholders' equity (deficit) | ||||||||
Common stock |
|
- |
|
|
- |
|
||
Additional paid-in capital |
|
89,394 |
|
|
78,421 |
|
||
Accumulated deficit |
|
(85,241 |
) |
|
(83,762 |
) |
||
Total stockholders' equity (deficit) |
|
4,153 |
|
|
(5,341 |
) |
||
Total liabilities, redeemable convertible preferred stock and stockholders' equity (deficit) | $ |
29,497 |
|
$ |
18,748 |
|