GNSS Genasys Inc

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 11, 2025

 

 

Genasys Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware			000-24248	87-0361799
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
16262 West Bernardo Drive
San Diego, California				92127
(Address of Principal Executive Offices)				(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 858 676-1112

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common stock, $0.00001 par value per share		GNSS		The Nasdaq Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

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Item 2.02 Results of Operations and Financial Condition.

The following information is furnished pursuant to Item 2.02, “Results of Operations and Financial Condition,” and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section. Such information, including Exhibit 99.1, shall not be incorporated by reference into any filing of Genasys Inc. (the “Company”), whether made before or after the date hereof, regardless of any general incorporation language in such filing.

On February 11, 2025, the Company issued a press release regarding its financial results for the fiscal quarter ended December 31, 2024. A copy of the press release is furnished as Exhibit 99.1 hereto, and is incorporated by reference herein.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number		Description
99.1		Financial Results Press Release, dated February 11, 2025, issued by the Company.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			Genasys Inc.
Date:	February 11, 2025	By:	/s/ Dennis D. Klahn
			Dennis D. Klahn Chief Financial Officer

 

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Exhibit 99.1

 

Genasys Inc. Reports Fiscal First Quarter 2025 Financial Results

 

SAN DIEGO – February 11, 2025 – Genasys Inc. (NASDAQ: GNSS), the leader in Protective Communications, today announced financial results for the Company’s fiscal first quarter ended December 31, 2024.

Richard S. Danforth, Chief Executive Officer of Genasys, Inc., commented, “Fiscal 2025 is rapidly shaping up to be a year of dramatic improvement. Not only are we progressing on schedule with the implementation of the Early Warning System (EWS) in Puerto Rico, but also our software solutions, particularly EVAC and CONNECT are gaining significant awareness and traction.”

Mr. Danforth continued, “Last month’s devastating fires in Los Angeles captured local, national and even international attention. The scale and scope of the numerous fires fueled by near hurricane force winds threatened multiple dense population centers surrounding the media capital of the world. The LA County Office of Emergency Management (OEM) with the support of both fire and law enforcement first responders utilized Genasys Protect to affect the timely evacuations of hundreds of thousands of residents across multiple cities. Though the tragic structural and financial damage was record breaking, the loss of life statistics remain dramatically below any other major fire event that didn’t have the evacuation capabilities provided by Genasys Protect. Throughout the incident, Genasys experienced an unprecedented level of inbound inquiry for both our software and hardware solutions that we expect to convert into new bookings over the next several months.”

Fiscal 1Q 2025 Financial Summary

Business Highlights

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Business Outlook

With record backlog entering fiscal 2025, Genasys is poised to deliver substantial growth to the top and bottom line, compared to the prior fiscal year. Most of the $40 million starting backlog is tied to the Puerto Rico project which will primarily impact our P&L in the second half of the fiscal year, though cash receipts have already been meaningful. Long lead-time materials have been ordered and their delivery will be the primary determinant of when installation and implementation of the system can begin. Efforts are being made to accelerate deliveries, but timing remains uncertain. We continue to expect sequential improvement throughout fiscal 2025 in both our software revenues and ARR, though not at the rates of fiscal 2024.

 

Fiscal 1Q 2025 Financial Review

Fiscal first quarter revenue was $6.9 million, an increase of 59.1% from $4.4 million in the prior year's quarter. Software revenue increased 63.5% while hardware revenue increased 57.1%, compared with the fiscal 2024 first quarter. Within software, quarterly recurring revenue increased 68.7% year over year.

Gross profit margin was 45.8%, compared with 33.9% and 40.8% in the first and fourth quarters of fiscal 2024, respectively. The year-over-year improvement in gross profit is primarily attributable to higher hardware revenue in this year’s quarter and the related improvement in overhead absorption. Additionally, software gross margins improved approximately 9 percentage points year over year. Sequentially, the difference is primarily attributable to software costs of sales in the fourth quarter of fiscal 2024 that were not incurred in the December quarter.

Operating expenses of $9.1 million increased from $8.7 million in fiscal 1Q 2024 and decreased from $9.9 million in fiscal 4Q 2024. Selling, general and administrative expenses of $6.8 million compares to $6.5 million and $7.5 million for in 1Q and 4Q fiscal 2024. Research and development expenses of $2.3 million increased 4.3% year over year and declined 5.8% sequentially.

GAAP net loss in the quarter was ($4.1) million, or ($0.09) per share, compared with a GAAP net loss of ($6.7) million, or ($0.15) per share, in the first quarter of fiscal 2024. The December 2024 quarter benefitted from a $2.5 million non-cash positive change in the fair value adjustment to outstanding warrants.

Excluding other income and expense, net income tax expense (benefit), depreciation, stock-based compensation and amortization of intangibles, adjusted EBITDA was ($4.8) million for the first quarter of fiscal 2025, compared with ($6.1) million and ($6.0) million for the first and fourth fiscal quarters of 2024.

Cash, cash equivalents and marketable securities totaled $13.9 million as of December 31, 2024, compared with $13.1 million as of September 30, 2024, reflecting the operational results, changes in working capital, and the receipt of approximately $8.3 million for the deposit on the first group of dams in Puerto Rico. Since quarter end, the Company has received an additional $2.2 million in deposits associated with the second group of dams for the Puerto Rico project.

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We include in this press release the non-GAAP operational metrics of adjusted EBITDA, which we believe provide helpful information to investors with respect to evaluating the Company’s performance. Adjusted EBITDA represents our net loss before other income and expense, net, income tax expense (benefit), depreciation and amortization expense and stock-based compensation. We do not consider these items to be indicative of our core operating performance. The items that are non-cash include depreciation and amortization expense and stock-based compensation. Adjusted EBITDA is a measure used by management to understand and evaluate our core operating performance and trends and to generate future operating plans, make strategic decisions regarding allocation of capital and invest in initiatives that are focused on cultivating new markets for our solutions. In particular, the exclusion of certain expenses in calculating Adjusted EBITDA facilitates comparisons of our operating performance on a period-to-period basis.

 

Webcast and Conference Call Details

Management will host a conference call to discuss the financial results for the first quarter of fiscal year 2025 this afternoon at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time. To access the conference call, dial toll-free (888) 390-3967, or international at (862) 298-0702. A webcast will also be available at the following link: https://app.webinar.net/9v8jG6rGOo4

Questions to management may be submitted before the call by emailing them to: ir@genasys.com. A replay of the webcast will be available approximately four hours after the presentation on the page of the Company’s website.

 

About Genasys Inc.

Genasys Inc. (NASDAQ: GNSS) is the global leader in Protective Communications Solutions and Systems, designed around one premise: ensuring organizations and public safety agencies are “Ready when it matters™”. The Company provides the Genasys Protect platform, the most comprehensive portfolio of preparedness, response, and analytics software and systems, as well as Genasys Long Range Acoustic Devices® (LRAD®) that deliver directed, audible voice messages with exceptional vocal clarity from close range to 5,500 meters. Genasys serves state and local governmental agencies, and education (SLED); enterprise organizations in critical sectors such as oil and gas, utilities, manufacturing, and automotive; and federal governments and the military. Genasys Protective Communications Solutions have diverse applications, including emergency warning and mass notification for public safety, critical event management for enterprise companies, de-escalation for defense and law enforcement, and automated detection of real-time threats like active shooters and severe weather. Today, Genasys protects over 70 million people globally and is used in more than 100 countries, including more than 500 cities, counties, and states in the U.S. For more information, visit genasys.com.

 

Forward-Looking Statements

Except for historical information contained herein, the matters discussed are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. You should not place undue reliance on these statements. We base these statements on particular assumptions that we have made in light of our industry experience, the stage of product and market development as well as our perception of historical trends, current market conditions, current

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economic data, expected future developments and other factors that we believe are appropriate under the circumstances. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those suggested in any forward-looking statement. The risks and uncertainties in these forward-looking statements include without limitation the business impact of geopolitical conflict, epidemics or pandemics, and other causes that may affect our supply chain, and other risks and uncertainties, many of which involve factors or circumstances that are beyond the Company's control. Risks and uncertainties are identified and discussed in our filings with the Securities and Exchange Commission. These forward-looking statements are based on information and management's expectations as of the date hereof. Future results may differ materially from our current expectations. For more information regarding other potential risks and uncertainties, see the "Risk Factors" section of the Company's Form 10-K for the fiscal year ended September 30, 2024. Genasys Inc. disclaims any intent or obligation to publicly update or revise forward-looking statements, except as otherwise specifically stated.

 

Investor Relations Contacts

Brian Alger, CFA

SVP, IR and Corporate Development

ir@genasys.com

(858) 676-0582

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Genasys Inc.

Consolidated Balance Sheets

(Unaudited - in thousands)

 

		December 31, 2024				September 30, 2024
		(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	8,469			$	4,945
Short-term marketable securities			5,146				7,945
Restricted cash			95				95
Accounts receivable, net			3,017				3,283
Inventories, net			7,500				7,313
Prepaid expenses and other			3,777				2,559
Total current assets			28,004				26,140
Long-term marketable securities			305				249
Long-term restricted cash			250				250
Property and equipment, net			1,231				1,291
Goodwill			13,165				13,329
Intangible assets, net			7,885				8,506
Operating lease right of use assets, net			2,898				3,110
Other assets			902				1,061
Total assets		$	54,640			$	53,936
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	4,504			$	4,034
Accrued liabilities			15,524				9,030
Operating lease liabilities, current portion			1,025				1,021
Total current liabilities			21,053				14,085
Notes payable, at fair value			12,380				12,010
Warrant liability			4,170				6,640
Long-term deferred revenue			378				369
Operating lease liabilities, noncurrent			2,989				3,269
Total liabilities			40,970				36,373
Total stockholders' equity			13,670				17,563
Total liabilities and stockholders' equity		$	54,640			$	53,936

 

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Genasys Inc.

Consolidated Statements of Operations

(Unaudited - in thousands, except per share amounts)

 

		Three Months Ended December 31,
		2024				2023
		(unaudited)				(unaudited)
Revenues		$	6,940			$	4,361
Cost of revenues			3,762				2,882
Gross profit			3,178				1,479
			45.8	%			33.9	%
Operating expenses
Selling, general and administrative			6,834				6,518
Research and development			2,285				2,191
Total operating expenses			9,119				8,709
Loss from operations			(5,941	)			(7,230	)
Other income, net			1,863				77
Loss before income taxes			(4,078	)			(7,153	)
Income tax benefit			—				(429	)
Net loss		$	(4,078	)		$	(6,724	)
Net loss per common share - basic and diluted		$	(0.09	)		$	(0.15	)
Weighted average common shares outstanding - basic and diluted			44,912				43,729
Reconciliation of GAAP measures to non-GAAP measures
Net loss		$	(4,078	)		$	(6,724	)
Other income, net			(1,863	)			(77	)
Income tax benefit			—				(429	)
Depreciation and amortization			737				729
Stock based compensation			391				446
Adjusted EBITDA		$	(4,813	)		$	(6,055	)

 

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v3.25.0.1

Document And Entity Information	Feb. 11, 2025
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Feb. 11, 2025
Entity Registrant Name	Genasys Inc.
Entity Central Index Key	0000924383
Entity Emerging Growth Company	false
Entity File Number	000-24248
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	87-0361799
Entity Address, Address Line One	16262 West Bernardo Drive
Entity Address, City or Town	San Diego
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92127
City Area Code	858
Local Phone Number	676-1112
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common stock, $0.00001 par value per share
Trading Symbol	GNSS
Security Exchange Name	NASDAQ

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