Airship AI Reports First Quarter 2025 Financial Results
First Quarter 2025 Net Revenues of $5.5 Million, Gross Profit of $2.2 Million and Gross Margin of 40%
Increased Investments In Our People And Digital Transformation Will Enable Us To Stay Resilient and Ready In A Rapidly Changing Marketplace
New Pro-U.S. Border Security Administration Provides Additional Macro Tailwinds for 2025 & Beyond
REDMOND, Wash., May 15, 2025 (GLOBE NEWSWIRE) -- Airship AI Holdings, Inc. $(AISP)$ ("Airship AI" or the "Company"), a leader in AI-driven video, sensor, and data management surveillance solutions, today reported its financial and operational results for the first quarter ended March 31, 2025.
Q1 2025 Financial Highlights
-- Net revenues for the quarter ended March 31, 2025 were $5.5 million.
-- Gross profits for the quarter ended March 31, 2025 were $2.2 million.
-- Gross margin percentage was 40% for the quarter ended March 31, 2025. The
margins reflected increased solution sales with more third-party hardware
than Airship AI software.
-- Operating loss was $1.7 million for the quarter ended March 31, 2025
reflected in increased stock based compensation and increased investments
in sales and marketing related expenditures which should increase future
sales.
-- Other income for the quarter ended March 31, 2025 was $25.4 million,
primarily due to a gain from a change in the fair value of earnout
liability of $9.8 million, and a change in fair value of warrant
liability of $15.5 million.
-- Net income for the quarter ended March 31, 2025 was $23.7 million, or
$0.75 per basic share, primarily related to noncash income of $25.4
million.
-- Net cash used in operating activities was $2.1 million in the quarter
ended March 31, 2025.
-- Cash and cash equivalents were $8.8 million as of March 31, 2025.
Q1 2025 & Subsequent Operational Highlights
-- Backlog as of March 31, 2025 was $2.0 million, representing firm fixed
price contracts awarded in the fourth quarter of 2024 or first quarter of
2025 that will be shipped and invoiced through the remainder of calendar
year 2025. Backlog is not indicative of future quarterly revenue as
approximately 75% of quarterly revenue is transactional and recognized in
the same quarter.
-- Our total validated pipeline at the end of the quarter was approximately
$135 million, consisting of single and multi-year opportunities for
AI-driven edge, video, and sensor and data management platform across all
our customer verticals. Our pipeline includes opportunities at varying
stages of progression with expected award timeframes throughout the next
18-24 months.
-- Due to the sensitive nature of many of our customers and deployment use
cases, we are often restricted from publicly disclosing awards and or
limited as to the specifics of the customer and use case. Consequently,
most of our awards are executed on closed or restricted contract vehicles
which further limits the sharing of information that might be otherwise
available.
-- We grew our internal sales and sales engineering force, adding seasoned
sales professionals with deep industry expertise, partner relationships,
and customer knowledge that will allow us to ramp up quickly.
-- We participated in multiple customer facing tradeshows during the quarter
including brand new industry wide and vertically focused shows where we
had a significantly increased level of participation and or visibility as
compared to historical participation.
-- As part of our transition to a partner driven sales model, we
participated in several partner shows and events, including those
sponsored by integrators and dealers, and those by manufacturers of
hardware sensors and or solutions that we integrate with and manage for
our customers.
-- We hosted our invite only government focused customer event outside
Austin, TX, demonstrating and training on the latest in Airship AI
developed and or supported solutions. This year's focus was on solutions
supporting challenges along the southern border and was well attended by
agencies across the federal government.
-- On April 23, 2025, we entered into an At the Market Offering Agreement
with Roth Capital Partners, LLC, as sales agent, pursuant to which we may,
from time to time, offer and sell shares of our common stock up to a
maximum of $25 million, which shares are registered on a registration
statement that we filed with the U.S. Securities and Exchange Commission
(the "SEC"), using a "shelf" registration process. Under this shelf
registration process, we may offer to sell any of the securities, or any
combination of the securities, described in this prospectus, in each case,
in one or more offerings, up to $50 million.
-- On March 21, 2025, our shelf registration statement on Form S-3 for the
sale of up to $50 million of our securities was declared effective by the
SEC.
2025 Outlook
-- 30% revenue growth and positive cash flow for calendar year 2025
supported by a strong and validated pipeline of $135 million, improving
gross profit margins, and a strong recurring revenue model.
-- Make tactical and strategic investments across our sales and business
development organizations through organic cash flow from business
operations and the potential cash exercise of public warrants.
-- Release new Outpost AI product offerings as well as expand custom trained
AI models supporting emerging edge analytic workflows.
-- Continue innovation across our core Acropolis software platform
supporting new workflows for cloud-based deployments in highly secure
operational environments.
-- Develop and execute expansionary opportunities in the commercial and
retail markets, particularly around those companies involved in combating
organized retail crime.
-- Improve sourcing, supply chain management and production-based process
efficiencies to help drive continued margin expansion.
-- Focus on brand awareness and engagement in new verticals through targeted
marketing outreach opportunities, social media platforms, Airship AI
hosted technology events, and industry tradeshow events.
Management Commentary
"The first quarter of 2025 was largely overshadowed by the actions of the new administration as they worked to finalize the approval and release of budgets and special appropriations," said Paul Allen, President of Airship AI. "In the face of these headwinds, our team was able to generate solid revenues for the quarter of $5.5 million at a gross margin percentage of 40%, while increasing our investments in our people and customers.
"As we worked to successfully execute awarded contracts in our current backlog, we dedicated significant time and resources to advancing pipeline opportunities. These efforts are positioning us to move quickly once budgets are approved and released. Based on current forecasts, we anticipate meaningful activity beginning mid-second quarter, with continued growth expected through the end of Q2 and into Q3.
"Simultaneously, many of our federal customers are projecting increased funding through supplemental appropriations. This has initiated a wave of market research discussions focused on potential solutions to address emerging mission needs. We anticipate that many of these conversations will evolve into tangible opportunities extending across the current and upcoming fiscal years.
"In the commercial segment, our strategic push into new market verticals, driven by partnerships with integrators and business collaborators, has been met with strong interest. Several early wins confirm both the market's appetite for differentiated solutions and the soundness of our strategic investment in people and partners. This validation further supports continued investment to build on our momentum and drive sustained growth.
"These collected efforts have also affirmed that we are on the right track with our digital transformation strategy, focused squarely on how AI at the far and near edge can solve for our customers' existing and emerging threats in the public safety and security space. Building on our existing investments in the AI Factory, we expect to launch several new products in 2025, including advanced computer vision analytics powered by machine learning and a Generative AI application that will transform how customers access and interact with their data.
"Finally, amid broader macroeconomic conditions, we are closely monitoring tariff developments. As a U.S.-based software company, we do not expect these tariffs to significantly impact our core business. In areas where we provide hardware solutions, such as our Outpost AI edge appliance, we work proactively with global suppliers to maintain optimal inventory levels. This approach helps us manage costs effectively and ensure timely, competitively priced delivery of our products and services.
"The combination of our strong existing pipeline focused on leveraging existing budgets, increased business development opportunities leveraging supplemental appropriations, and the investments in people and customers already made leaves us confident in our ability to execute against our stated objectives of 30% YoY revenue growth and achieving cash flow positive operations," concluded Mr. Allen.
About Airship AI Holdings, Inc.
Founded in 2006, Airship AI (NASDAQ: AISP) is a U.S. owned and operated technology company headquartered in Redmond, Washington. Airship AI is an AI-driven video, sensor and data management surveillance platform that improves public safety and operational efficiency for public sector and commercial customers by providing predictive analysis of events before they occur and meaningful intelligence to decision makers. Airship AI's product suite includes Outpost AI edge hardware and software offerings, Acropolis enterprise management software stack, and Command family of visualization tools.
For more information, visit https://airship.ai.
Forward-Looking Statements
The disclosure herein includes certain statements that are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "project," "forecast," "predict," "potential," "seem," "seek," "future," "outlook," and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward looking. These forward-looking statements include, but are not limited to, (1) statements regarding estimates and forecasts of financial, performance and operational metrics and projections of market opportunity; (2) changes in the market for Airship AI's services and technology, expansion plans and opportunities; (3) the projected technological developments of Airship AI; and (4) current and future potential commercial and customer relationships. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Airship AI's management and are not predictions of actual performance. These forward-looking statements are also subject to a number of risks and uncertainties, as set forth in the section entitled "Risk Factors" in its Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 28, 2025, and the other documents that the Company has filed, or will file, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. In addition, forward looking statements reflect the Company's expectations, plans or forecasts of future events and views as of the date of this press release. The Company anticipates that subsequent events and developments will cause its assessments to change. However, while it may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company's assessments as of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.
Investor Contact:
Chris Tyson/Larry Holub
MZ North America
949-491-8235
AISP@mzgroup.us
AIRSHIP AI HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
As of March 31, 2025 and December 31, 2024
March 31, December 31,
2025 2024 (1)
------------ ------------
ASSETS Unaudited
CURRENT ASSETS:
Cash and cash equivalents $ 8,812,178 $ 11,414,830
Accounts receivable, net of
allowance for credit losses of
$0 2,782,650 1,226,757
Prepaid expenses and other 67,311 17,883
----------- -----------
Total current assets 11,662,139 12,659,470
OTHER ASSETS
Other assets 165,960 165,960
Operating lease right of use asset 1,102,967 882,024
----------- -----------
TOTAL ASSETS $ 12,931,066 $ 13,707,454
=========== ===========
LIABILITIES AND STOCKHOLDERS'
DEFICIT
CURRENT LIABILITIES:
Accounts payable - trade $ 2,179,847 $ 759,480
Advances from founders 700,000 1,300,000
Accrued expenses 60,551 51,649
Current portion of operating lease
liability 405,916 305,178
Deferred revenue- current portion 2,948,695 3,238,483
----------- -----------
Total current liabilities 6,295,009 5,654,790
----------- -----------
NON-CURRENT LIABILITIES:
Operating lease liability, net of
current portion 758,376 638,525
Warrant liability 18,659,435 34,180,618
Earnout liability 8,199,079 23,304,808
Deferred revenue- non-current 2,528,716 2,951,850
----------- -----------
Total liabilities 36,440,615 66,730,591
----------- -----------
COMMITMENTS AND CONTINGENCIES (Note
9)
STOCKHOLDERS' DEFICIT:
Preferred stock - no par value,
5,000,000 shares authorized, 0
shares issued and outstanding as
of March 31, 2025 and December
31, 2024 - -
Common stock - $0.0001 par value,
200,000,000 shares authorized,
31,844,471 and 30,588,413 shares
issued and outstanding as of
March 31, 2025 and December 31,
2024 3,182 3,056
Additional paid in capital 27,731,753 21,918,867
Accumulated deficit (51,233,605) (74,941,590)
Accumulated other comprehensive
loss (10,879) (3,470)
----------- -----------
Total stockholders' deficit (23,509,549) (53,023,137)
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS'
DEFICIT $ 12,931,066 $ 13,707,454
=========== ===========
AIRSHIP AI HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS)
For the three months ended March 31, 2025 and 2024
(Unaudited)
Three Months Ended
-----------------------------------
March 31, 2025 March 31, 2024
---------------- ----------------
Unaudited Unaudited
NET REVENUES:
Product $ 4,497,240 $ 9,398,776
Post contract support 998,051 1,176,239
Other services 7,737 -
------------ ------------
5,503,028 10,575,015
------------ ------------
COST OF NET REVENUES:
Cost of Sales 2,923,087 7,789,409
Post contract support 312,021 157,479
Other services 32,916 -
------------ ------------
3,268,024 7,946,888
------------ ------------
GROSS PROFIT 2,235,004 2,628,127
------------ ------------
RESEARCH AND DEVELOPMENT
EXPENSES 719,382 695,366
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 3,229,979 3,335,294
------------ ------------
TOTAL OPERATING EXPENSES 3,949,361 4,030,660
------------ ------------
OPERATING LOSS (1,714,357) (1,402,533)
------------ ------------
OTHER INCOME (EXPENSE) :
Gain (loss) from change in
fair value of earnout
liability 9,823,605 (21,484,850)
Gain (loss) from change in
fair value of warrant
liability 15,521,183 (6,847,091)
Loss from change in fair value
of convertible debt - (2,039,377)
Loss on note conversion - (158,794)
Interest income (expense), net 77,554 (31,824)
------------ ------------
Total other income (expense),
net 25,422,342 (30,561,936)
------------ ------------
INCOME (LOSS) BEFORE PROVISION
FOR INCOME TAXES 23,707,985 (31,964,469)
Provision for income taxes - -
------------ ------------
NET INCOME (LOSS) 23,707,985 (31,964,469)
OTHER COMPREHENSIVE (LOSS)
INCOME
Foreign currency translation
(loss) income, net (7,409) 3,239
------------ ------------
TOTAL COMPREHENSIVE INCOME
(LOSS) $ 23,700,576 $ (31,961,230)
============ ============
NET INCOME (LOSS) PER SHARE:
Basic $ 0.75 $ (1.40)
============ ============
Diluted $ 0.61 $ (1.40)
============ ============
Weighted average shares of
common stock outstanding
Basic 31,704,117 22,898,487
Diluted 38,820,839 22,898,487
AIRSHIP AI HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the three months ended March 31, 2025 and 2024
(Unaudited)
Three Months Ended
-----------------------------------
March 31, 2025 March 31, 2024
---------------- ----------------
Unaudited Unaudited
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income (loss) $ 23,707,985 $ (31,964,469)
Adjustments to reconcile net
income (loss) to net cash
used in operating activities
Depreciation and
amortization - 1,861
Stock-based compensation 428,286 268,989
Amortization of operating
lease right of use asset 83,396 80,291
(Gain) loss from change in
fair value of warrant
liability (15,521,183) 6,847,091
(Gain) loss from change in
fair value of earnout
liability (9,823,605) 21,484,850
Loss from change in fair
value of convertible
note - 2,039,377
Loss on note conversion - 158,794
Changes in operating assets
and liabilities:
Accounts receivable (1,555,893) (55,525)
Prepaid expenses and other (49,428) 2,010
Other assets - 1,901
Operating lease liability (83,750) (67,211)
Payroll and income tax
receivable - (2,410)
Accounts payable - trade and
accrued expenses 1,429,270 433,415
Deferred revenue (712,922) (924,048)
------------ ------------
NET CASH USED IN OPERATING
ACTIVITIES (2,097,844) (1,695,084)
------------ ------------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from warrant
exercise, net 59,400 293,249
Repayment of advances from
founders (600,000) -
Proceeds from stock option
exercises 43,201 -
------------ ------------
NET CASH (USED IN) PROVIDED BY
FINANCING ACTIVITIES (497,399) 293,249
------------ ------------
NET DECREASE IN CASH AND CASH
EQUIVALENTS (2,595,243) (1,401,835)
Effect from exchange rate on
cash (7,409) 3,239
CASH AND CASH EQUIVALENTS,
beginning of period 11,414,830 3,124,413
------------ ------------
CASH AND CASH EQUIVALENTS, end
of period $ 8,812,178 $ 1,725,817
============ ============
Supplemental disclosures of
cash flow information:
Interest paid $ - $ -
Taxes paid $ - $ 2,410
Noncash investing and financing
Issuance of common stock for
debt conversion $ - $ 835,610
Issuance of common stock for
earnout shares $ 5,282,125 $ -
Recognition of operating
right-of-use asset $ 304,339 $ -
Recognition of operating lease
liability $ 304,339 $ -
(END) Dow Jones Newswires
May 15, 2025 16:15 ET (20:15 GMT)
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