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Guerrilla RF Reports Third Quarter 2024 Results and Gross Margin Expansion

GREENSBORO, N.C. — (BUSINESS WIRE) — November 14, 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 September 30, 2024.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20241114320016/en/

Guerrilla RF reports record revenue for a third quarter of $4.5 million, representing a 34.4% increase over prior year period. (Graphic: Business Wire)

Guerrilla RF reports record revenue for a third quarter of $4.5 million, representing a 34.4% increase over prior year period. (Graphic: Business Wire)

“We continued to execute on our growth plans during the quarter by releasing new products into production. We released five new GaN products and four other products into production during Q3 2024, as the total number of new products released during 2024 increased to 23. This compares favorably to the total of new products we released in the 2023 (12) and the 2022 (18) calendar years. By releasing an increasing number of products already this year, we believe we are laying the foundation for sustained revenue growth,” said Ryan Pratt, Founder and CEO. “Guerrilla RF also received the Electronic Industry Awards’ “Highly Commended” award, recognizing four of our parts for exceptional performance in the Automotive Product of the Year category.

“Additionally, we achieved record revenue of $4.5 million compared with previous third quarters, which are historically our softest quarters, while further improving our gross profit margin and maintaining cost discipline. Strong 5G deliveries more than compensated for soft order flow from our Automotive customers,” added Pratt. “Looking ahead, based on our year-to-date revenue of $15.7 million, we expect to generate 2024 revenue at the lower end of our guidance range of $20.0 million to $25.0 million. As we continue to invest heavily in R&D to position the Company for accelerated revenue growth, we also expect quarterly Adjusted EBITDA (a non-GAAP measure) to hold steady for the next few quarters at around a $1.8 million loss, the amount we generated for the third quarter 2024.”

Third Quarter Highlights

 

   

GUERRILLA RF, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

   

Profit & Loss

 

Three Months Ended September 30,

(Unaudited)

 

 

2024

 

 

2023

 

Product revenue

 

$

4,523,620

 

$

3,354,879

 

Royalties and non-recurring engineering

 

 

80

 

 

11,032

 

Total

 

 

4,523,700

 

 

3,365,911

 

   

Direct product cost

 

 

1,571,182

 

 

1,490,779

 

   

Gross Profit

 

 

2,952,518

 

 

1,875,132

 

   

Operating Expenses:

 

Research and development

 

 

2,506,554

 

 

2,775,430

 

Sales and marketing

 

 

1,749,497

 

 

1,445,790

 

General and administrative

 

 

1,306,268

 

 

1,381,119

 

Total Operating Expenses

 

 

5,562,319

 

 

5,602,339

 

   

Operating Loss

 

 

(2,609,801

)

 

(3,727,207

)

   

Interest income

 

 

63,873

 

 

-

 

Interest expense

 

 

(501,163

)

 

(731,618

)

Loss on debt extinguishment

 

 

(1,523,221

)

 

-

 

Change in fair value of warrant liabilities

 

 

(2,623,608

)

 

-

 

Change in fair value of derivative liabilities

 

 

-

 

 

(47,400

)

Other income (expense)

 

 

(7,645

)

 

25,277

 

Total other income (expenses), net

 

 

(4,591,764

)

 

(753,741

)

Net Loss

 

$

(7,201,565

)

$

(4,480,948

)

   

Net loss per share - basic and diluted

 

$

(0.71

)

$

(0.62

)

 

Balance Sheet

 
 

September 30, 2024

December 31, 2023

Assets

 

(Unaudited)

(Audited)

Cash

 

$

11,277,741

 

$

781,318

 

Accounts receivable, net

 

 

1,822,514

 

 

2,079,111

 

Inventories

 

 

1,916,510

 

 

1,533,592

 

Prepaid expenses

 

 

214,027

 

 

458,313

 

Total Current Assets

 

 

15,230,792

 

 

4,852,334

 

   

Prepaid expenses and other

 

 

78,751

 

 

-

 

Intangible Assets, net

 

 

355,829

 

 

-

 

Operating ROU Assets

 

 

9,627,914

 

 

10,500,620

 

Property, Plant, and Equipment, net

 

 

2,869,845

 

 

3,659,084

 

Total Assets

 

$

28,163,131

 

$

19,012,038

 

   

Liabilities, Redeemable Preferred Stock and Stockholders' Deficit

 

 

 

Accounts payable and accrued expenses

 

$

2,004,855

 

$

2,099,537

 

Short-term debt

 

 

855,305

 

 

1,628,667

 

Derivative liabilities

 

 

-

 

 

158,000

 

Warrant liabilities

 

 

6,946,522

 

 

-

 

Operating lease, current portion

 

 

657,978

 

 

745,969

 

Finance lease, current portion

 

 

800,091

 

 

978,543

 

Convertible notes

 

 

-

 

 

78,905

 

Convertible notes - related parties

 

 

-

 

 

700,189

 

Notes payable, current portion

 

 

-

 

 

10,948,668

 

Total Current Liabilities

 

 

11,264,751

 

 

17,338,478

 

   

Long-term debt

 

 

493,214

 

 

698,600

 

Operating lease

 

 

5,694,467

 

 

6,176,508

 

Finance lease

 

 

1,045,966

 

 

1,593,979

 

Notes payable

 

 

4,500,000

 

 

-

 

Total Liabilities

 

 

22,998,398

 

 

25,807,565

 

   

Commitments and Contingencies

 

 

Series A convertible preferred stock

 

$

20,033,555

 

$

-

 

 

 

Preferred stock

 

 

-

 

 

-

 

Common stock

 

 

1,021

 

 

789

 

Additional paid in capital

 

 

40,500,327

 

 

36,243,146

 

Accumulated deficit

 

 

(55,370,170

)

 

(43,039,462

)

Total Stockholders' Deficit

 

 

(14,868,822

)

 

(6,795,527

)

Total Liabilities, Redeemable Preferred Stock and Stockholders' Deficit

 

$

28,163,131

 

$

19,012,038

 

 

Statement of Cashflow

(Unaudited)

Three Months Ended September 30,

 

2024

 

 

2023

 

Cash flows from operating activities

Net loss

$

(7,201,565

)

$

(4,480,948

)

Adjustment to reconcile net loss to net cash used in operating activities

Depreciation and amortization

 

381,380

 

 

307,155

 

Share-based compensation

 

510,356

 

 

284,633

 

Non-cash interest expense related to debt financing

 

32,003

 

 

94,642

 

Accretion of notes payables

 

87,696

 

 

248,688

 

Impairment on property plant and equipment and operating lease

 

-

 

 

105,055

 

Change in fair value of warrant liabilities

 

2,623,608

 

 

-

 

Change in fair value of derivative liabilities

 

-

 

 

47,400

 

Loss on extinguishment of debt

 

1,511,649

 

 

-

 

Changes in assets and liabilities:

Accounts receivable

 

321,240

 

 

443,618

 

Inventories

 

(253,283

)

 

(125,737

)

Prepaid expenses

 

117,637

 

 

497,993

 

Accounts payable and accrued expenses

 

(59,416

)

 

149,057

 

Operating lease liability

 

117,377

 

 

200,454

 

Net cash used in operating activities

 

(1,811,318

)

 

(2,227,990

)

 

Cash flows from investing activities

Purchases of property, plant, and equipment

 

(175,824

)

 

(26,610

)

Purchases of intangible assets

 

(10,500

)

 

-

 

Net cash used in investing activities

 

(186,324

)

 

(26,610

)

 

Cash flows from financing activities

Proceeds from stock options exercised

 

-

 

 

-

 

Proceeds from notes payable, derivative liabilities and factoring agreement

 

2,494,066

 

 

4,508,837

 

Principal payments of notes payable and recourse factoring agreement

 

(10,975,321

)

 

(2,827,825

)

Proceeds from equity financing, net

 

21,596,955

 

 

1,685,226

 

Principal payments on finance lease

 

(246,074

)

 

(267,499

)

Repayment of finance insurance premiums

 

(235,628

)

 

(142,423

)

Payment of deferred offering costs

 

-

 

 

(62,811

)

Net cash provided by financing activities

 

12,633,998

 

 

2,893,505

 

 

Net increase (decrease) cash

 

10,636,356

 

 

638,905

 

 

Cash, beginning of period

 

641,385

 

 

238,006

 

Cash, end of period

$

11,277,741

 

$

876,911

 

 

Noncash investing and financing transactions:

Reclassification of historical warrants

$

2,759,514

 

$

-

 

Modifications on finance leases

$

-

 

$

360,123

 

Property and equipment additions included in accounts payable

$

24,200

 

$

2,000

 

 

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 income and 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:

Adjusted EBITDA Reconciliation

 

(Unaudited)

 

Q3 2024

Q3 2023

Net Loss

 

$

(7,201,565

)

$

(4,480,948

)

Interest income

 

 

(63,873

)

 

-

 

Interest expense

 

 

501,163

 

 

731,618

 

Depreciation and amortization

 

 

381,380

 

 

307,155

 

EBITDA

 

 

(6,382,895

)

 

(3,442,175

)

Share-based compensation

 

 

510,356

 

 

284,633

 

Loss on debt extinguishment

 

 

1,523,221

 

 

-

 

Change in fair value of warrant liabilities

 

 

2,623,608

 

 

-

 

Change in fair value of derivative liabilities

 

 

-

 

 

47,400

 

Adjusted EBITDA

 

$

(1,725,710

)

$

(3,110,142

)

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 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