Mynd Announces Fiscal Year 2024 Results

Highlights Include Sale of a Non-strategic Business Unit, Significant Reduction of Debt, and Implementation of a Share Repurchase Program to Strengthen the Company and Enhance Long Term Shareholder Value , /PRNewswire/ -- Mynd.ai, Inc. (the "Company" or "Mynd") (NYSE American: MYND) today announced financial results for the fiscal year ended December 31, 2024. Revenue of $267.4 million for the full year, compared to $411.8 million in the prior year with the decrease primarily driven by the headwinds in the overall education market due to normalization to pre-pandemic levels Gross Margin improved 40 basis points versus 2023 to 24.8%, largely due to optimization of cost of materials, warranty, and freight costs Operating loss improved by $8.0 million to $38.0 million, as compared to $46.0 million in 2023 Net loss from continuing operations, before income taxes totaled $35.7 million, a $12.7 million improvement compared to 2023 Cash balance at year-end of $75.3 million, compared to $87.8 million in 2023 Reduced outstanding indebtedness at year-end by $21.0 million Repurchased 151,923 American Depositary Shares, representing 1,519,230 ordinary shares, pursuant to our share repurchase program "We are very pleased with the progress our team made during 2024, our first full year as a public company," said Vin Riera, Chief Executive Officer. "We feel that completing the sale of our non-strategic early childhood development business unit in October 2024, paying down debt, optimizing our cost structure, and initiating a share repurchase program were all meaningful steps towards strengthening our company. Despite a number of industry-wide challenges in the education sector stemming from inflation, threat of tariffs and uncertainty around Federal funding for education, we were able to capitalize on our brand loyalty, significant install base of over one million classrooms and strong distributor and partner network to maintain our strong market presence." Arthur Giterman, Chief Financial Officer, added, "Our financial performance in 2024 reflects our commitment to improving operational efficiency to help combat significant industry headwinds impacting our interactive flat panel display business. Year over year, the Company made improvements in our gross margin and significantly reduced both our operating loss as well as our net loss from operations. Although we expect economic headwinds to continue during 2025, we are actively responding by continuing to optimize our operating cost structure, enhancing our go-to-market strategy and expanding our portfolio of product offerings. We are excited about the warm reception that our recently launched ActivPanel 10 and its modular infrastructure has received, and believe that providing our customers with the ability to select their preferred operating system will better position the Company to more effectively compete in the market." Forward-Looking Statements This press release contains "forward-looking statements," as defined by federal securities laws. Forward-looking statements reflect Mynd's current expectations and projections about future events at the time and thus involve uncertainty and risk. The words "believe," "expect," "anticipate," "will," "could," "would," "should," "may," "plan," "estimate," "intend," "predict," "potential," "continue," "optimistic," and the negatives of these words and other similar expressions generally identify forward looking statements. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled "Risk Factors" in Mynd's Annual Report on Form 20-F, filed with the SEC on March 26, 2025, as such factors may be updated from time to time in Mynd's periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in Mynd's filings with the SEC. While forward-looking statements reflect Mynd's good faith beliefs, they are not guarantees of future performance. Mynd disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes after the date of this press release, except as required by applicable law. You should not place undue reliance on any forward-looking statements, which are based only on information currently available to Mynd (or to third parties making the forward-looking statements). Discussion of non-GAAP Financial Measures We believe that providing non-GAAP ("Generally Accepted Accounting Principles") information to investors, in addition to the GAAP presentation, allows investors to view the financial results in the way management views the operating results. We further believe that providing this information allows investors not only to better understand our financial performance, but more importantly, to evaluate the efficacy of the methodology and information used by management to evaluate and measure such performance. The non-GAAP information included in this press release should not be considered superior to, or a substitute for, financial statements prepared in accordance with GAAP. We utilize a number of different financial measures, both GAAP and non-GAAP, in analyzing and assessing the overall performance of the business, for making operating decisions and for forecasting and planning for future periods. Our annual financial plan is prepared both on a GAAP and non-GAAP basis, and the non-GAAP annual financial plan is approved by our board of directors. Continuous budgeting and forecasting for revenue and expenses are conducted on a consistent non-GAAP basis, in addition to GAAP, and actual results on a non-GAAP basis are assessed against the non-GAAP annual financial plan. In addition, and as a consequence of the importance of these measures in managing the business, we use non-GAAP measures and results in the evaluation process to establish management's compensation. For example, our annual bonus program payments are based in part upon the achievement of consolidated revenue and Adjusted EBITDA targets. About Mynd.ai, Inc. Seattle-based Mynd is a global leader in interactive technology offering best-in-class hardware and software solutions that help organizations create and deliver dynamic content; simplify and streamline teaching, learning, and communication; and facilitate real-time collaboration. Our award-winning interactive displays and software can be found in more than 1 million learning and training spaces across 126 countries. Our global distribution network of more than 4,000 reseller partners and our dedicated sales and support teams around the world enable us to deliver the highest level of service to our customers. Financial Tables Follow Mynd.ai. Inc.CONSOLIDATED BALANCE SHEETS(In thousands of U.S. dollars, except share and per share data, or otherwise noted) As of December 31, 2024 2023 ASSETS Current assets: Cash and cash equivalents $ 75,317 $ 87,804 Accounts receivable, net of allowance for credit losses of $211 and $2,599, respectively 30,506 63,736 Inventories 28,638 53,944 Prepaid expenses and other current assets 11,601 14,408 Due from related parties 1,561 1,683 Current assets of discontinued operations — 5,590 Total current assets 147,623 227,165 Non-current assets: Goodwill 44,130 44,928 Property, plant, and equipment, net 14,595 7,037 Intangible assets, net 39,521 43,700 Right-of-use assets 3,448 2,413 Deferred tax assets, net 34 58,035 Other non-current assets 3,268 1,810 Non-current assets of discontinued operations — 21,949 Total non-current assets 104,996 179,872 Total assets $ 252,619 $ 407,037 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 40,485 $ 59,138 Accrued expenses and other current liabilities 45,959 49,134 Loans payable, current 10,931 31,942 Contract liabilities 11,281 14,004 Accrued warranties 15,749 17,871 Lease liabilities, current 1,047 1,618 Due to related parties 4,621 5,061 Current liabilities of discontinued operations — 7,404 Total current liabilities 130,073 186,172 Non-current liabilities: Loans payable, non-current 58,077 64,859 Loans payable, related parties, non-current 5,006 4,670 Contract liabilities, non-current 18,581 21,762 Lease liabilities, non-current 2,761 1,030 Deferred tax liabilities 9,756 — Non-current liabilities of discontinued operations — 7,950 Total non-current liabilities 94,181 100,271 Total liabilities 224,254 286,443 Shareholders' equity: Ordinary shares par value of $0.001; 990,000,000 shares authorized. 456,477,820 shares issued and 454,958,590 shares outstanding as of December 31, 2024. 456,477,820 shares issued and outstanding as of December 31, 2023. 10,000,000 shares, $0.001 par value, without designation; none authorized, issuedand outstanding as of December 31, 2024 and 2023. 456 456 Treasury shares, at cost, 1,519,230 and none shares, respectively (342) — Additional paid-in capital 479,480 473,590 Accumulated other comprehensive income 3,344 3,513 Accumulated deficit (454,573) (358,854) Total Mynd.ai, Inc. shareholders' equity 28,365 118,705 Non-controlling interest — 1,889 Total shareholders' equity 28,365 120,594 Total liabilities and shareholders' equity $ 252,619 $ 407,037 Mynd.ai. Inc.CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands of U.S. dollars, except share and per share data, or otherwise noted) Year Ended December 31, 2024 2023 2022 Revenue $ 267,381 $ 411,757 $ 584,684 Cost of revenue 201,140 311,272 443,598 Gross profit 66,241 100,485 141,086 Operating expenses, net: General and administrative 33,427 30,964 34,608 Research and development 25,253 34,604 41,459 Sales and marketing 42,115 51,477 60,848 Transaction-related costs — 19,288 502 Restructuring 3,484 10,195 238 Total operating expenses 104,279 146,528 137,655 Operating (loss) income (38,038) (46,043) 3,431 Other income (expense): Interest expense (10,371) (4,658) (1,833) Interest income 2,659 223 6 Gain on embedded derivative 11,389 432 — Gain on forgiveness of debt — — 4,923 Other (expense) income (1,384) 1,598 591 Total other income (expense) 2,293 (2,405) 3,687 Net (loss) income from continuing operations, before income taxes (35,745) (48,448) 7,118 Income tax (expense) benefit (68,732) 9,658 25,982 Net (loss) income from continuing operations (104,477) (38,790) 33,100 Income (loss) from discontinued operations, net of tax 8,725 (605) (12,637) Net (loss) income (95,752) (39,395) 20,463 Net (loss) income from continuing operations attributable to non-controlling interests — — — Net (loss) income from discontinued operations attributable tonon-controlling interests (33) 33 — Net (loss) income attributable to non-controlling interests (33) 33 — Net (loss) income from continuing operations attributable toordinary shareholders (104,477) (38,790) 33,100 Net income (loss) from discontinued operations attributable to ordinary shareholders 8,758 (638) (12,637) Net (loss) income attributable to ordinary shareholders $ (95,719) $ (39,428) $ 20,463 Net (loss) income per ordinary share From continuing operations: Basic and Diluted $ (0.23) $ (0.09) $ 0.08 From discontinued operations: Basic and Diluted $ 0.02 $ (0.00) $ (0.03) Total basic and diluted $ (0.21) $ (0.09) $ 0.05 Weighted average shares outstanding used in calculating net (loss)income per share: Basic and diluted 456,471,923 427,986,755 426,422,220 Mynd.ai. Inc.CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME(in thousands) Year Ended December 31, 2024 2023 2022 Net (loss) income $ (95,752) $ (39,395) $ 20,463 Other comprehensive (loss) income, net of tax of nil: Change in foreign currency translation reserve 497 (1,033) (3,367) Release of foreign currency translation reserve to net loss as a result of disposition (566) — — Total comprehensive (loss) income (95,821) (40,428) 17,096 Less: comprehensive income attributable to non-controllinginterest 67 33 — Comprehensive (loss) income attributable to Mynd.ai Inc. $ (95,888) $ (40,461) $ 17,096 Mynd.ai. Inc.CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands) Year Ended December 31, 2024 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES: Net (loss) income $ (95,752) $ (39,395) $ 20,463 (Income) loss from discontinued operations, net of tax (8,725) 605 12,637 Net (loss) income from continuing operations (104,477) (38,790) 33,100 Adjustments to reconcile net (loss) income from continuing operations to net cash (used in) provided by operating activities: Depreciation and amortization 5,698 4,973 4,520 Deferred taxes 67,669 (10,828) (25,982) Non-cash lease expense 1,737 1,958 1,818 Non-cash interest expenses 4,844 325 — Gain on forgiveness of debt — — (4,923) Share-based compensation 3,698 — — Amortization of RDEC credit (1,182) (839) (460) Accrued tax credit RDEC — (1,732) — Change in fair value of derivative liability (11,389) (432) — Increase in inventory provision — 4,630 3,951 Write-off of prepaid subscriptions — 5,668 — Other 90 71 30 Change in operating assets and liabilities: Accounts receivable 33,365 (679) 25,346 Inventories 25,251 54,734 (20,003) Prepaid expenses and other assets 1,270 (5,482) 701 Prepaid subscriptions — 1,632 (7,300) Due from related parties 533 482 (4,376) Accounts payable (17,675) (23,651) (1,820) Accrued expenses and other liabilities (2,439) (1,329) (10,225) Accrued warranties (2,037) 3,883 3,266 Due to related parties 1,491 1,083 3,469 Contract liabilities (5,743) 6,966 7,779 Lease obligations - operating leases (1,579) (1,903) (2,084) Net cash (used in) provided by operating activities - continuing operations (875) 740 6,807 Net cash provided by (used in) operating activities - discontinued operations 1,661 (3,098) (12,079) Net cash provided by (used in) provided by operating activities 786 (2,358) (5,272) CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition of property, plant and equipment (1,283) (389) (829) Internal-use software development costs (8,465) (4,434) (1,028) Repayment (issuance) of loan receivable, related party — 8,019 (7,919) Proceeds from disposition of GEH Singapore 20,000 — — Acquisition of businesses, net of cash — 10,375 (6,000) Net cash provided by (used in) investing activities - continuing operations 10,252 13,571 (15,776) Net cash used in investing activities - discontinued operations (5,942) 5,763 — Net cash provided by (used in) investing activities 4,310 19,334 (15,776) CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of Revolver (38,000) (80,300) (49,305) Debt issuance costs paid (90) — — Proceeds from Revolver 17,000 62,000 63,000 Proceeds from convertible note — 64,884 — Contingent consideration payments (1,007) (2,174) — Repayment of Paycheck Protection Program Loan (192) (192) (5) Repayment of NetDragon group loans — — (3,210) Proceeds from NetDragon group loans — 219 869 Share repurchase (342) — — Net cash (used in) provided by financing activities - continuing operations (22,631) 44,437 11,349 Net cash provided by financing activities - discontinued operations — — — Net cash (used in) provided by financing activities (22,631) 44,437 11,349 Net change in cash (17,535) 61,413 (9,699) Cash and cash equivalents, beginning of year 91,784 29,312 40,508 Exchange rate effects 1,068 1,059 (1,497) Cash and cash equivalents, end of year $ 75,317 $ 91,784 $ 29,312 Supplemental disclosure of non-cash investing and financing activitiestransactions: Continuing operations: Convertible notes issued in exchange for accrued PIK interest $ 3,309 $ — $ — Decrease in goodwill due to measurement period adjustments relating tobusiness acquisition, net $ 1,228 $ — $ — Lease assets acquired in exchange for lease liabilities $ 2,838 $ — $ — Forgiveness of related party payables $ 2,412 $ — $ — Accrued purchase price related to acquisition of businesses $ — $ — $ 1,688 Accrued value of earnout related to acquisition of businesses $ — $ — $ 377 Noncash consideration transferred for acquisition of businesses $ — $ 22,848 $ — Discontinued operations: Lease assets acquired in exchange for lease liabilities $ 5,044 $ — $ — Supplemental disclosure of cash transactions: Cash paid for interest $ 5,387 $ 5,223 $ — Cash received for tax refunds, net $ 1,397 $ 914 $ 969 Cash flows are presented on a consolidated basis and cash and cash equivalents presented in current assets of discontinued operations in the consolidated balance sheets as of December 31, 2023 were $3,980. Mynd.ai. Inc.SUPPLEMENTAL FINANCIAL INFORMATIONReconciliation of Net Income to Adjusted EBITDA(in thousands) Year Ended December 31, 2024 2023 2022 (in thousands) Net (loss) income $ (95,752) $ (39,395) $ 20,463 (Income) loss from discontinued operations, net of tax (8,725) 605 12,637 Interest expense 10,371 4,658 1,833 Interest income (2,659) (223) (6) Income tax expense (benefit) 68,732 (9,658) (25,982) Depreciation and amortization 5,698 4,973 4,520 Share-based compensation 3,698 — — Gain on embedded derivative (11,389) (432) — Other expense (income), net 1,384 (1,598) (591) Transaction-related costs(1) — 19,288 502 Restructuring costs(2) 3,484 10,195 238 Litigation costs and penalties(3) 1,021 405 1,046 Gain on forgiveness of debt(4) — — (4,923) Adjusted EBITDA $ (24,137) $ (11,182) $ 9,737 (1) Transaction-related costs are non-recurring costs related to one or more acquisitions. (2) Refers to employee severance costs, contract termination costs, facility restructuring, and business restructuring efforts undertaken by management. (3) Refers to costs incurred to defend against, opportunistically settle, and establish a reserve for claims associated with litigation, as well as any related penalties incurred for such litigation. (4) Refers to forgiveness of loan provided by the U.S. Small Business Administration provided under the Payroll Protection Program (PPP). SOURCE Mynd.ai WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Mynd Announces Fiscal Year 2024 Results

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