GIGA TRONICS INC

CIK:0000719274|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenues	$ 9,573	$ 8,723
Cost of revenues	7,687	6,560
Gross profit	1,886	2,163
Operating expenses:
General and administrative	3,249	4,688
Research and development	782	723
Selling and marketing	612	543
Total operating expenses	4,643	5,954
Loss from continuing operations	(2,757)	(3,791)
Other (expense) income
Interest expense	(296)	(213)
Change in fair value of senior secured convertible notes, related party	(1,917)	566
Change in fair value of warrants issued with senior secured convertible notes	117	796
Change in fair value of senior secured convertible notes	165	143
Foreign currency exchange adjustment	62	44
Other income (expense)	21	(2)
Total other (expense) income , net	(1,848)	1,334
Loss from continuing operations before income taxes	(4,605)	(2,457)
Income tax benefit (provision)	49	7
Net loss	(4,556)	(2,450)
Net loss (gain) attributable to non-controlling interest	149	(14)
Net loss attributable to common stockholders	$ (4,407)	$ (2,464)
Net loss per common share, basic	$ (0.7)	$ (0.42)
Net loss per common share, diluted	$ (0.7)	$ (0.42)
Weighted average common shares outstanding, basic	6,305	5,932
Weighted average common shares outstanding, diluted	6,305	5,932
Comprehensive loss
Loss available to common stockholders	$ (4,407)	$ (2,464)
Foreign currency translation adjustments	(139)	187
Total comprehensive loss	$ (4,546)	$ (2,277)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net loss	$ (4,556,000)	$ (2,450,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	186,000	181,000
Amortization	57,000	73,000
Amortization of right-of-use assets	202,000	299,000
Change in fair value of senior secured convertible notes, related party	1,917,000	(566,000)
Change in fair value of warrants issued with senior secured convertible notes	(117,000)	(796,000)
Change in fair value of senior secured convertible notes	(165,000)	(143,000)
Stock-based compensation	46,000	106,000
Compensation warrant issued in connection with senior secured convertible notes	0	858,000
Offering Costs in Connection with Senior Secured Convertible Notes	0	653,000
Changes in operating assets and liabilities:
Accounts receivable	(57,000)	58,000
Accrued revenue	677,000	(274,000)
Inventories	106,000	(235,000)
Prepaid expenses and other current assets	(441,000)	(98,000)
Accounts payable and accrued expenses	1,504,000	(40,000)
Other current liabilities	1,068,000	(211,000)
Other non-current liabilities	(80,000)	154,000
Lease liabilities	(215,000)	(305,000)
Net cash provided by (used) in operating activities	132,000	(2,736,000)
Cash flows from investing activities:
Purchases of property and equipment	(237,000)	(27,000)
Net cash used in investing activities	(237,000)	(27,000)
Cash flows from financing activities:
Proceeds from the exercise of warrants, related party	20,000	0
Proceeds from accounts receivables, related party	0	301,000
Proceeds from notes payable, related party	952,000	0
Proceeds from senior secured convertible notes, net of issuance costs	0	2,680,000
Payments on notes payable	(388,000)	(77,000)
Net cash provided by financing activities	584,000	2,904,000
Effects of exchange rate changes on cash and cash equivalents	(13,000)	168,000
Net increase/(decrease) in cash and cash equivalents	465,000	309,000
Cash and cash equivalents at beginning of period	4,301,000	2,195,000
Cash and cash equivalents at end of period	4,766,000	2,504,000
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	295,000	213,000
Non-cash investing and financing activities
Operating lease right-of-use asset obtained in exchange for operating lease liabilities	$ 321,000	$ 0

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
CURRENT ASSETS
Cash	$ 3,567	$ 3,601
Restricted cash	1,199	700
Accounts receivable, net	4,309	4,294
Accrued revenue	2,070	2,782
Inventories	6,240	6,379
Prepaid expenses and other current assets	1,872	1,438
TOTAL CURRENT ASSETS	19,257	19,194
Intangible assets, net	1,631	1,707
Goodwill	5,715	5,794
Property and equipment, net	1,747	1,708
Right-of-use assets	3,111	3,023
Other assets	349	506
TOTAL ASSETS	31,810	31,932
CURRENT LIABILITIES
Accounts payable and accrued expenses	10,550	8,671
Senior secured convertible notes	5,379	5,544
Operating lease liability, current	914	778
Deferred revenue	1,778	1,609
Other current liabilities	2,208	2,052
TOTAL CURRENT LIABILITIES	22,877	20,131
Senior secured convertible notes, related party	12,918	11,001
Notes payable	178	200
Operating lease liability, non-current	2,273	2,334
Other liabilities	1,260	1,333
TOTAL LIABILITIES	39,506	34,999
STOCKHOLDERS EQUITY
Common Stock; no par value; 100,000,000 shares authorized, 7,931,602 shares issued and outstanding at March 31, 2024; 13,333,333 shares authorized, 5,931,602 shares issued and outstanding at December 31, 2023	35,647	35,581
Accumulated deficit	(47,228)	(42,821)
Accumulated other comprehensive loss	(1,491)	(1,352)
TOTAL STOCKHOLDERS EQUITY	(8,082)	(3,602)
Non-controlling interest	386	535
TOTAL STOCKHOLDERS EQUITY	(7,696)	(3,067)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	31,810	31,932
Related Party [Member]
CURRENT LIABILITIES
Notes payable	1,120	168
Nonrelated Party [Member]
CURRENT LIABILITIES
Notes payable	928	1,309
Series F Preferred Stock [Member]
STOCKHOLDERS EQUITY
Preferred stock	$ 4,990	$ 4,990