Based on the provided financial report, the title of the article is: "Form 10-Q: Mobix Labs, Inc. Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Based on the provided financial report, the title of the article is: "Form 10-Q: Mobix Labs, Inc. Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Mobix Labs, Inc. reported its quarterly financial results for the period ended June 30, 2024. The company’s revenue was $X million, a decrease of Y% compared to the same period last year. Net loss was $Z million, or $W per share, compared to a net loss of $X million, or $Y per share, in the same period last year. The company’s cash and cash equivalents decreased to $X million, down from $Y million at the end of the previous quarter. Mobix Labs also reported a significant increase in research and development expenses, which was driven by the company’s efforts to develop new products and technologies. The company’s management discussed the challenges it faces in the current market environment and its plans to address them.
Overview
Mobix Labs, Inc. is a fabless semiconductor company developing disruptive wireless mmWave 5G and C-Band wireless solutions, as well as connectivity and electromagnetic filtering products for next-generation communications systems. The company has made several strategic acquisitions to enhance its product portfolio and expand into new markets, including Cosemi, RaGE Systems, and EMI Solutions.
Recent Developments
Acquisition of RaGE Systems Inc.: In May 2024, Mobix completed the acquisition of RaGE Systems, which designs and manufactures wireless systems solutions for 5G communications, mmWave imaging, and software-defined radio.
Private Placement: In July 2024, Mobix raised $4 million in a private placement, issuing pre-funded warrants and common stock warrants.
Committed Equity Facility: In March 2024, Mobix entered into a $9.5 million committed equity facility with B. Riley Principal Capital II.
The Merger: In December 2023, Mobix completed a merger with Chavant Capital Acquisition Corp., a SPAC, raising $21 million in gross proceeds.
Acquisition of EMI Solutions, Inc.: In December 2023, Mobix acquired EMI Solutions, a manufacturer of interconnect and electromagnetic interference filtering products.
Cost Reductions: Mobix reduced headcount and temporarily furloughed employees to focus on completing the Merger and EMI Solutions acquisition.
Results of Operations
Comparison of the Three Months and Nine Months Ended June 30, 2024 and June 30, 2023:
| Metric | Three Months Ended June 30 | Nine Months Ended June 30 | ||||
|---|---|---|---|---|---|---|
| 2024 | 2023 | Change | 2024 | 2023 | Change | |
| Net revenue | $2,058 | $80 | $1,978 (2,473%) | $3,488 | $791 | $2,697 (341%) |
| Cost of revenue | $1,327 | $285 | $1,042 (366%) | $2,608 | $1,188 | $1,420 (120%) |
| Research and development | $1,369 | $3,159 | $(1,790) (-57%) | $4,328 | $9,209 | $(4,881) (-53%) |
| Selling, general and administrative | $8,710 | $6,375 | $2,335 (37%) | $31,731 | $21,198 | $10,533 (50%) |
| Loss from operations | $(9,348) | $(9,739) | $391 (-4%) | $(35,179) | $(30,804) | $(4,375) (14%) |
| Net loss | $(7,679) | $(10,004) | $2,325 (-23%) | $(8,497) | $(32,536) | $24,039 (-74%) |
The increase in net revenue was primarily due to the addition of sales from the acquired businesses of EMI Solutions and RaGE Systems. The decrease in research and development expenses was due to cost reduction actions, while the increase in selling, general and administrative expenses was driven by higher stock-based compensation, outside services, and costs related to the acquisitions.
Liquidity and Capital Resources
As of June 30, 2024, Mobix had $205 in cash and a working capital deficit of $21,431. The company has incurred operating losses and negative cash flows, and expects to continue to do so as it invests in product development and growth.
Mobix has taken several actions to address its capital needs, including:
- Completing a $4 million private placement in July 2024
- Entering a $9.5 million committed equity facility with B. Riley in March 2024
- Raising $21 million in gross proceeds from the merger with Chavant in December 2023
However, Mobix believes there is substantial doubt about its ability to continue as a going concern, as it may not be able to obtain sufficient financing to fund its operations beyond the next 90 days. The company will continue to seek additional debt or equity financing, but there can be no assurance it will be able to do so on acceptable terms, or at all.
Critical Accounting Policies and Estimates
Mobix’s critical accounting policies and estimates include:
- Fair value of earnout liability and PIPE make-whole liability
- Fair value of common stock
- Stock-based compensation
- Provision for income taxes
- Accounting for business combinations
- Measurement of definite-lived intangible assets
These estimates and judgments have a significant impact on Mobix’s reported financial results, and changes in these assumptions could result in material changes to the company’s financial statements.
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