Guerrilla RF, Inc. (OTCQX: GUERD), a leading provider of state-of-the-art RF and microwave communications solutions, today announced results for the first quarter 2023 ended March 31, 2023.
"Following a challenging 2022 for the semiconductor industry, we maintained our momentum by advancing key strategic initiatives positioning us well for the future," said Ryan Pratt, founder and CEO. "This was an excellent quarter with over $3.2 million in revenue and a backlog increase of 30% from the prior year. We believe we are well positioned to achieve double-digit revenue growth in 2023 in a difficult macroeconomic environment."
Guerrilla RF, Inc. (the "Company") reported first-quarter results and larger customer preordering that is expected to increase top-line revenue throughout the year. Other notable highlights include: completing $9.2 million private placement; R&D investment in new products in order to extend our competitive advantage; entering the growing multi-billion dollar satellite communications (SATCOM) market, and expanding relationships with strategic automotive customers.
The Company recently completed a reverse stock split as part of its planned uplist to a senior securities exchange. We believe the planned uplist will lower our capital costs, increase investor interest and improve our market value. In our shareholder letter, we set out our 2023 goals. We are increasingly confident in our ability to execute on these goals, and to build on the success of our first quarter. As a result, we believe second-quarter revenue will fall between $3.5 and $4.0 million.
Corporate Highlights
Financial Highlights
Management Commentary
Financial Results for Three Months Ended March 31, 2023
Revenues were $3.2 million for the three months ended March 31, 2023, as compared to $3.8 million in the year-ago quarter. The decrease in revenues was primarily attributable to unusual activity in Q1 2022 as customers built up inventory on supply disruption fears and announced price increases.
Direct product costs were $1.4 million, down from $1.5 million from the same period last year.
R&D expenses increased to $2.6 million compared to $1.8 million for the prior year period. The increase was attributable to continued investment in new product development. The Company announced new products in SOI (silicon on insulator) technologies.
Sales and marketing expenses increased to $1.4 million compared to $1.1 million for the year-earlier quarter. The increase year over year was driven primarily by increases in the sales team and support services.
General and administrative expenses increased to $1.5 million compared to $1.2 million in the year-ago period. This increase is primarily a result of headcount additions and spending associated with being a public company. The Company does not anticipate material increases to its G&A expenses in future periods.
GUERRILLA RF, INC. AND SUBSIDIARIES |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(Unaudited) March 31, 2023 |
December 31, 2022 |
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Assets |
|
||||||
Cash |
$ |
1,877,568 |
$ |
4,340,407 |
|
||
Accounts receivable, net |
|
1,595,906 |
|
|
1,124,971 |
|
|
Inventories, net |
|
1,583,915 |
|
|
1,672,925 |
|
|
Prepaid expenses |
|
770,232 |
|
|
643,401 |
|
|
Total Current Assets |
|
5,827,621 |
|
|
7,781,704 |
|
|
|
|
|
|
|
|
|
|
Prepaid expenses and other |
|
- |
|
|
3,574,746 |
|
|
Deferred offering costs |
|
90,081 |
|
|
- |
|
|
Operating lease right-of-use assets |
|
10,896,388 |
|
|
209,669 |
|
|
Property, plant, and equipment, net |
|
4,983,918 |
|
|
5,098,097 |
|
|
Total Assets |
$ |
21,798,008 |
|
$ |
16,664,216 |
|
|
Liabilities and Stockholders' Equity |
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
$ |
2,374,131 |
|
$ |
4,466,045 |
|
|
Short-term debt |
|
1,363,186 |
|
|
959,803 |
|
|
Operating lease liability, current portion |
|
568,000 |
|
|
139,794 |
|
|
Finance lease liability, current portion |
|
1,092,101 |
|
|
1,078,506 |
|
|
Total Current Liabilities |
|
5,397,418 |
|
|
6,644,148 |
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
306,511 |
|
|
44,279 |
|
|
Operating lease liability |
|
6,388,970 |
|
|
71,714 |
|
|
Finance lease liability |
|
2,737,467 |
|
|
2,984,618 |
|
|
Notes payable |
|
4,586,852 |
|
|
4,564,564 |
|
|
Total Liabilities |
|
19,417,218 |
|
|
14,309,323 |
|
|
|
|
|
|
|
|
|
|
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, no shares issued and outstanding as of March 31, 2023 and December 31, 2022 |
|
- |
|
|
- |
|
|
Common stock, $0.0001 par value, 300,000,000 shares authorized, 6,784,721 and 6,211,206 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively |
|
678 |
|
|
621 |
|
|
Additional paid-in capital |
|
33,454,698 |
|
|
29,427,440 |
|
|
Accumulated deficit |
|
(31,074,586 |
) |
|
(27,073,168 |
) |
|
Total Stockholders' Equity |
|
2,380,790 |
|
|
2,354,893 |
|
|
Total Liabilities and Stockholders' Equity |
$ |
21,798,008 |
|
$ |
16,664,216 |
|
GUERRILLA RF, INC. AND SUBSIDIARIES |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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(Unaudited) |
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Three Months Ended
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2023 |
2022 |
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Product |
$ |
3,040,409 |
|
$ |
3,586,267 |
|
|
Royalties and non-recurring engineering |
|
190,479 |
|
|
279,644 |
|
|
Total |
|
3,230,888 |
|
|
3,865,911 |
|
|
|
|
|
|
|
|
|
|
Direct product costs |
|
1,403,345 |
|
|
1,547,281 |
|
|
|
|
|
|
|
|
|
|
Gross Profit |
|
1,827,543 |
|
|
2,318,630 |
|
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
Research and development |
|
2,586,169 |
|
|
1,802,006 |
|
|
Sales and marketing |
|
1,361,949 |
|
|
1,085,843 |
|
|
General and administrative |
|
1,546,163 |
|
|
1,239,650 |
|
|
Total Operating Expenses |
|
5,494,281 |
|
|
4,127,499 |
|
|
|
|
|
|
|
|
|
|
Operating Loss |
|
(3,666,738 |
) |
|
(1,808,869 |
) |
|
|
|
|
|
|
|
|
|
Interest expense |
|
(341,857 |
) |
|
(57,221 |
) |
|
Other income |
|
7,177 |
|
|
- |
|
|
Total Other Expenses, net |
|
(334,680 |
) |
|
(57,221 |
) |
|
Net Loss |
$ |
(4,001,418 |
) |
$ |
(1,866,090 |
) |
|
|
|
|
|
|
|
|
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Net loss per share - basic and diluted |
$ |
(0.62 |
) |
$ |
(0.34 |
) |
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - basic and diluted |
|
6,502,845 |
|
|
5,538,034 |
|
As disclosed in our Quarterly Report on Form 10-Q filed with the U.S. Securities and Exchange Commission on May 10, 2023, in conjunction with the Company's planned uplisting to the Nasdaq or another national securities exchange, the Company's board of directors approved a 6:1 reverse split of the Company's common stock effective on April 17, 2023 (the "Effective Time"). As a result of the reverse stock split, at the Effective Time, every six shares of issued and outstanding common stock were automatically converted into one share of common stock, but without any change in the par value per share. No fractional shares were issued as a result of the reverse stock split. Any fractional shares that would otherwise have resulted from the reverse stock split were rounded up to the next whole number. The number of authorized shares of common stock remains unchanged at 300,000,000 shares. Proportionate adjustments were made to the per share exercise price and the number of shares of common stock issuable upon the exercise of all outstanding stock options and warrants granted by the Company. The number of shares of common stock deliverable upon vesting of restricted stock units were similarly adjusted. Concurrently, the number of shares of common stock reserved for future issuance under the Company's equity incentive plans immediately prior to the Effective Time were reduced proportionately. All per share data is presented on a post-split basis.
About Guerrilla RF, Inc.
Founded in 2013, Guerrilla RF, Inc., develops and manufactures high-performance state-of-the-art radiofrequency (RF) and microwave communication solutions for wireless OEMs in multiple high-growth market segments, that include network infrastructure for 5G/4G macro and small cell base stations, cellular repeaters/DAS, automotive telematics, SATCOM, military communications, navigation, and high-fidelity wireless audio. The Company has an extensive portfolio of 100+ high-performance RF and microwave semiconductor devices with 50+ new products in development. As one of the fastest growing semiconductor firms in the industry, Guerrilla RF drives innovation through its R&D to commercialization initiatives and focuses on product excellence and custom solutions to underserved markets. To date, the Company has shipped over 150 million devices and has repeatedly been included in Inc. Magazine's annual "Inc. 5000" list. Guerrilla RF recently made the top "Inc. 500" list for the second year in a row. For more information, please visit https://guerrilla-rf.com or follow the Company on Twitter and LinkedIn.
Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which statements are inherently subject to risks and uncertainties. Forward-looking statements include projections, predictions, expectations, or beliefs about future events or results or otherwise are not statements of historical fact. Such statements are often characterized by the use of qualifying words (and their derivatives) such as "expect," "believe," "estimate," "plan," "project," "anticipate," or other statements concerning opinions or judgments of the Company and its management about future events. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, and assumptions that are difficult or impossible to predict and, in some cases, beyond the Company's control. Actual results may differ materially from those in the forward-looking statements as a result of several factors, including those described in the Company's filings with the SEC available at www.sec.gov. Forward-looking statements speak only as of the date they are made. The Company undertakes no obligation to revise or update information in this release to reflect events or circumstances in the future, even if new information becomes available.
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