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Guerrilla RF Reports Record Second Quarter 2024 Results and Gross Margin Expansion

GREENSBORO, N.C. — (BUSINESS WIRE) — August 13, 2024 — Guerrilla RF, Inc. (OTCQX: GUER), a leading provider of state-of-the-art RF and microwave semiconductors, today announced results for the quarter ended June 30, 2024.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240813151981/en/

Guerrilla RF Reports Record Second Quarter 2024 Results and Gross Margin Expansion. (Graphic: Business Wire)

Guerrilla RF Reports Record Second Quarter 2024 Results and Gross Margin Expansion. (Graphic: Business Wire)

“During the quarter we continued to execute on our growth plans, releasing 12 new products into production and expanding our opportunities in the Catalog Markets and Infrastructure Markets with the acquisition of a GaN device portfolio. Even though we are seeing weakness in the Automotive Market, increased 5G deliveries enabled us to reach a new revenue record of $6.1 million for the quarter. We anticipate the Automotive Market weakness to continue throughout 2024 and, as a consequence, are reducing our revenue guidance by 5% to $20.0 million to $25.0 million for the full year 2024. Having generated $11.2 million in revenue for the first half of 2024, I believe we are well positioned to meet our revised revenue guidance of $20 million to $25 million for 2024 even though Q3 is historically our softest quarter,” said Ryan Pratt, Founder and CEO. “As we scale the business, we are keenly focused on achieving sustainable positive EBITDA and operating cash flow. During the second quarter, we continued to progress towards EBITDA breakeven with an Adjusted EBITDA loss of under $500,000. The management team is pleased with this progress towards EBITDA breakeven as it targets achieving sustained positive operating cashflow.”

Second Quarter Highlights

Subsequent Events

GUERRILLA RF, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

Guerrilla RF, Inc

   

Balance Sheet

   
     

June 30, 2024

 

December 31, 2023

 

Assets

Unaudited

 

Audited

 

Cash

$

641,385

 

$

781,318

 

Accounts receivable, net

 

2,143,754

 

 

2,079,111

 

Inventories

 

1,663,227

 

 

1,533,592

 

Prepaid expenses

 

410,415

 

 

458,313

 

Total Current Assets

 

4,858,781

 

 

4,852,334

 

     

Deferred Offering Costs

 

55,730

 

 

-

 

Intangible Assets, net

 

354,787

 

 

-

 

Operating ROU Assets

 

9,916,247

 

 

10,500,620

 

Property, Plant, and Equipment, net

 

3,041,743

 

 

3,659,084

 

Total Assets

$

18,227,288

 

$

19,012,038

 

     

Liabilities and Stockholders' Equity (Deficit)

 

   

Accounts payable and accrued expenses

$

2,054,927

 

$

2,099,537

 

Short-term debt

 

1,846,010

 

 

1,628,667

 

Derivative liabilities

 

-

 

 

158,000

 

Operating lease, current portion

 

710,863

 

 

745,969

 

Finance lease, current portion

 

870,448

 

 

978,543

 

Convertible notes

 

-

 

 

78,905

 

Convertible notes - related parties

 

-

 

 

700,189

 

Notes payable, current portion

 

-

 

 

10,948,668

 

Total Current Liabilities

 

5,482,248

 

 

17,338,478

 

 

   

Long-term debt

 

79,453

 

 

698,600

 

Operating lease

 

5,812,538

 

 

6,176,508

 

Finance lease

 

1,221,683

 

 

1,593,979

 

Notes payable

 

10,508,591

 

 

-

 

Total Liabilities

 

23,604,513

 

 

25,807,565

 

 

 

 

 

 

 

Preferred stock

 

-

 

 

-

 

Common stock

 

1,006

 

 

789

 

Additional paid in capital

 

42,790,374

 

 

36,243,146

 

Accumulated deficit

 

(48,168,605

)

 

(43,039,462

)

Total Stockholders' Equity (Deficit)

 

(5,377,225

)

 

(6,795,527

)

Total Liabilities and Stockholders' Equity (Deficit)

$

18,227,288

 

$

19,012,038

 

Guerrilla RF, Inc

 

Three Months Ended June 30

Six Months Ended June 30

Profit and Loss

 

Unaudited

Unaudited

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Product revenue

 

$

6,109,732

 

$

3,575,312

 

$

11,199,505

 

$

6,615,721

 

Royalties and non-recur eng.

 

 

822

 

 

204,022

 

 

2,298

 

 

394,501

 

Total

 

 

6,110,554

 

 

 

3,779,334

 

 

11,201,803

 

 

7,010,222

 

   

Direct product cost

 

 

2,120,281

 

 

1,549,881

 

 

3,990,956

 

 

2,953,226

 

   

Gross Profit

 

 

3,990,273

 

 

2,229,453

 

 

7,210,847

 

 

4,056,996

 

   

Operating Expenses

 

Research and development

 

 

2,412,541

 

 

2,652,989

 

 

4,664,074

 

 

5,239,158

 

Sales and marketing

 

 

1,583,377

 

 

1,629,944

 

 

2,936,286

 

 

2,991,893

 

General and administrative

 

 

1,190,990

 

 

1,377,342

 

 

2,645,685

 

 

2,923,505

 

Total Operating Expenses

 

 

5,186,908

 

 

5,660,275

 

 

10,246,045

 

 

11,154,556

 

   

Operating Loss

 

 

(1,196,635

)

 

(3,430,822

)

 

(3,035,198

)

 

(7,097,560

)

   

Interest expense

 

 

(856,468

)

 

(389,012

)

 

(2,541,255

)

 

(730,869

)

Change in fair of derivative liabilities

 

 

-

 

 

-

 

 

158,000

 

 

-

 

Other income (expense)

 

 

296,512

 

 

(1,248

)

 

289,310

 

 

5,929

 

Total other income(expenses) net

 

 

(559,956

)

 

(390,260

)

 

(2,093,945

)

 

(724,940

)

Net Loss

 

$

(1,756,591

)

$

(3,821,082

)

$

(5,129,143

)

$

(7,822,500

)

Backlog, EBITDA and Adjusted EBITDA Reconciliation

References to “product backlog” means the amount of product sales that have been committed to by customers, but have not yet been completed, shipped, or invoiced. The Company's product backlog can be materially impacted by supply chain constraints, a shift in customer ordering patterns whereby customers place orders in anticipation of extended product delivery lead times, or other customer order delivery request modifications. Furthermore, because the Company partners closely with a number of its customers to produce high-performance, quality components that are often designed into customers’ end products, immediate substitution of the Company’s products is neither typically desired by customers nor necessarily feasible. As such, the Company has not historically experienced significant order cancellations, and the Company does not expect significant order cancellations in the future. The Company closely monitors product backlog and its potential impact on the Company’s financial performance.

References to “EBITDA” mean net loss, before considering interest expense, provision for income taxes, depreciation and amortization. References to Adjusted EBITDA excludes irregular or non-recurring items and are not directly related to the Company’s core operating performance. EBITDA and Adjusted EBITDA are not measures of financial performance under U.S. GAAP. Management believes EBITDA and Adjusted EBITDA, in addition to operating profit, net income and other U.S. GAAP measures, are useful to investors to evaluate the Company’s results because they exclude certain items that may, or could, have a disproportionate positive or negative impact on our results for any particular period. Investors should recognize that EBITDA and Adjusted EBITDA might not be comparable to similarly-titled measures of other companies. These measures should be considered in addition to, and not as a substitute for or superior to, any measure of performance prepared in accordance with U.S. GAAP. A reconciliation of non-U.S. GAAP EBITDA and Adjusted EBITDA to the most directly comparable U.S. GAAP measure in accordance with SEC Regulation G follows:

Guerilla RF, Inc

EBITDA Reconciliation

Q2 2024

Q2 2023

Unaudited

Unaudited

Net Loss

$

(1,756,591

)

$

(3,821,082

)

Interest expense

 

856,468

 

 

389,012

 

Depreciation and amortization

 

383,911

 

 

423,053

 

EBITDA

 

(516,212

)

 

(3,009,017

)

Share-based compensation

 

338,036

 

 

330,177

 

Economic development incentive proceeds

 

(294,500

)

 

-

 

Adjusted EBITDA

$

(472,676

)

$

(2,678,840

)

About Guerrilla RF, Inc.

Founded in 2013, Guerrilla RF, Inc., develops and manufactures high-performance, state-of-the-art radio frequency (RF) and microwave semiconductors for wireless OEMs in multiple high-growth market segments, including network infrastructure for 5G/4G macro and small cell base stations, SATCOM, cellular repeaters/DAS, automotive telematics, 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. The Company has shipped over 200 million devices and has repeatedly been included in Inc. Magazine’s annual "Inc. 5000" list. Guerrilla RF has made the top "Inc. 500" list for two years 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.



Contact:

Sam Funchess, VP of Corporate Development
ir@guerrilla-rf.com
+1 336 510 7840