Thu, May 15, 8:21 PM (59 days ago)
**Airship AI Holdings, Inc. (AISP) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $5.5M (down 48% YoY from $10.6M in Q1 2024) due to decreased government orders. - **Gross Profit:** $2.2M (down 15% YoY from $2.6M in Q1 2024). - **Operating Loss:** $1.7M (up 22% YoY from $1.4M in Q1 2024). - **Net Income:** $23.7M (up 174% YoY from a loss of $32M in Q1 2024), primarily due to non-cash gains from changes in fair value of earnout and warrant liabilities. - **Cash Flow:** Net cash used in operating activities was $2.1M (Q1 2024: $1.7M). - **Cash Position:** $8.8M (down from $11.4M in Q4 2024). **Key Metrics & Trends:** - **Revenue Mix:** Primarily hardware and software bundled systems (83% of revenue). - **Customer Concentration:** Top three customers accounted for 83% of revenue. - **Gross Margin:** 40% (down from 25% in Q1 2024). - **Operating Margin:** -31% (improved from -13% in Q1 2024). - **Net Margin:** 430% (up from -304% in Q1 2024, largely due to non-cash gains). **Uncertainties & Future Operations:** - **Government Budget Uncertainty:** Potential changes in budgetary priorities and spending levels could adversely affect staffing levels and funding for government projects. - **Supply Chain Constraints:** Geo-political factors may impact the timely production and delivery of Taiwan-based products. - **M&A Activity:** Potential mergers or acquisitions could increase operating expenses and negatively impact operating profits in the short term. - **Tariffs:** Changes in international trade policies could increase the cost of products, potentially reducing demand or compressing margins. - **Liquidity:** Despite a net loss, the company has no substantial doubt about its ability to continue as a going concern through at least May 2026. **Management's Outlook:** - Focus on expanding AI-driven software application portfolio. - Growing business within existing government customers and penetrating the commercial marketplace. - Expanding edge AI-based solutions to drive efficiency and cost savings for customers. - Potential impacts from merger and acquisition activity, supply chain constraints, and tariffs.