Mobix Labs, Inc. Announces Second Quarter 2024 Financial Results

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

 





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