MultiSensor AI Announces Fourth Quarter and Full Year 2023 Results
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Insights
The announcement from MultiSensor AI Holdings, Inc. regarding its completion of a business combination with SportsMap Tech Acquisition Corp and the subsequent initiation of trading is a signal of a significant strategic move. The entry into public markets often provides a company with increased capital for investment, which can fuel growth and expansion. However, the mention of one-time expenses related to the business combination could be indicative of short-term financial impacts that stakeholders should be aware of. These expenses may affect quarterly results but are not unusual for such transactions.
Furthermore, the company's shift towards a sales pipeline populated by global blue-chip companies suggests a deliberate targeting of high-value, possibly more stable clients. This could be a strategic move to secure more robust and predictable revenue streams. The rebranding to MultiSensor AI and the launch of SmartIR 2.0 software platform indicate a commitment to innovation and adaptation in the AI-powered industrial predictive maintenance market, which is critical for maintaining a competitive edge.
MultiSensor AI's focus on expanding its Annual Recurring Revenue (ARR) base is a strategic approach that could lead to improved margins and bottom-line growth over the long term. ARR is a key metric for software companies, as it indicates predictable and stable revenue streams, which are highly valued by investors. The waiver of earnout share issuances and release of lock-up restrictions could provide immediate liquidity to some shareholders, potentially increasing stock volatility in the short term. However, these moves could also be seen as a vote of confidence by management in the company's future performance.
It's important to analyze the company's financials once they are released to understand the actual impact of the one-time expenses and to assess the sustainability of the sales momentum mentioned. Investors should look at the balance sheet to evaluate the company's financial health post-business combination and consider the growth trajectory implied by the sales pipeline's momentum.
The predictive maintenance market is rapidly growing as industries seek to minimize downtime and maintenance costs through advanced technologies. MultiSensor AI's unveiling of the SmartIR 2.0 software platform could be significant in capturing market share, especially if the new sensor modalities and AI-powered analytic capabilities offer substantial improvements over existing solutions. The technology's ability to meet the specific needs of blue-chip companies could position MultiSensor AI as a leader in this niche.
Adoption rates and customer feedback on the new platform will be critical indicators of its market potential. Investors should monitor industry reports and customer testimonials to gauge the platform's performance and acceptance. The company's ability to continue innovating and adapting to market needs will be essential for sustaining growth in a sector where technological advancements are rapid and constant.
Completed business combination with SportsMap Tech Acquisition Corp. and began trading on December 20, 2023
Demonstrated strong momentum in sales pipeline saturated with global blue-chip companies
BEAUMONT, TX / ACCESSWIRE / April 1, 2024 / MultiSensor AI Holdings, Inc. (NASDAQ:MSAI), a pioneer in AI-powered industrial predictive maintenance and process control solutions, today announced results for the fourth quarter and full year ended December 31, 2023.
Strategic Business Highlights:
- Completed business combination agreement with SportsMap Tech Acquisition Corp
- Executed a corporate rebrand changing the Company's name to MultiSensor AI which aligns with the Company's goals to provide AI-driven multi-sensor software solutions in the predictive maintenance market
- Unveiled new SmartIR 2.0 software platform which added new sensor modalities and AI-powered analytic capabilities to its existing platform
- Subsequent to quarter end, the Company announced the waiver of earnout share issuances and release of lock-up restrictions
David Gow, Multisensor AI's chairman, commented, "I am pleased to report the results of Multisensor AI's first quarter as a public company. Within the quarter, our primary focus was executing the business combination agreement. As a result of this, the process included a number of one-time expenses, which adversely affected the quarter's results. Despite these costs, we experienced strong sales momentum in the latter half of the quarter, as we increased our presence among blue-chip customers and supplemented our pipeline. Additionally, we remain focused on further establishing our ARR base, which, as it expands, will significantly contribute to margin enhancement and bottom-line growth.
David Gow continued, "Looking forward, we are both opportunistic and enthusiastic about the direction of this Company in 2024 and beyond. Primarily, we will continue expanding our customer base, optimizing sales operations, refining and improving our product offerings, and identifying new growth opportunities. While there is much still to be done, we have confidence we can broaden our strong presence in this high-growth market and deliver sustainable, profitable growth for our stakeholders."
About MultiSensor AI
MultiSensor AI provides turnkey predictive maintenance and process control solutions, which combine cutting edge imaging and sensing technologies with AI-powered enterprise software. Powered by AWS, MSAI's software leverages a continuous stream of data from thermal imaging, visible imaging, acoustic imaging, vibration sensing, and laser sensing devices to provide comprehensive, real-time condition monitoring for a customer's critical assets, processes, and manufactured outputs. This full-stack solution measures heat, vision, vibration, and gas in the surrounding environment, helping companies gain predictive insights to efficiently and proactively manage their asset reliability and manufacturing processes. MSAI's cloud and edge solutions are deployed by organizations to protect critical assets across a wide range of industries including distribution & logistics, manufacturing, utilities, and oil & gas.
For more information, please visit https://www.multisensorai.com
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by words such as "will," "believe," "anticipate," "expect," "estimate," "intend," "plan," or their negatives or variations of these words, or similar expressions. All statements contained in this press release that do not strictly relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding the combined company management's expectations regarding its financial outlook, strategic priorities and objectives, future plans, business prospects and financial performance, ability to satisfy the initial listing criteria of Nasdaq, ability to deliver value to its stakeholders and grow as a public company. These forward-looking statements are subject to risks, uncertainties and assumptions, some of which are beyond our control. In addition, these forward-looking statements reflect our current views with respect to future events and are not a guarantee of future performance. Actual outcomes may differ materially from the information contained in the forward-looking statements as a result of a number of factors, including, our ability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, competition and the ability of the combined company to grow and manage growth profitably following the business combination; costs related to the business combination; changes in applicable laws or regulations; our ability to implement business plans, forecasts, and other expectations after the completion of the business combination, and identify and realize additional opportunities; the risk of downturns and the possibility of rapid change in the highly competitive industry in which we operate; the risk that we and our current and future collaborators are unable to successfully develop and commercialize our products or services, or experience significant delays in doing so; the risk that we may never achieve or sustain profitability; the risk that we will need to raise additional capital to execute our business plan, which may not be available on acceptable terms or at all; the risk that we experience difficulties in managing our expected growth and expanding operations; the risk that third party suppliers and manufacturers are not able to fully and timely meet their obligations; the risk that we are unable to secure or protect our intellectual property; the possibility that we may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties discussed under the "Risk Factors" section of SportsMap Tech Acquisition Corp.'s prospectus in the registration statement on Form S-1/A filed with the Securities and Exchange Commission on December 18, 2023, and the combined company's other periodic filings with the SEC. Because forward-looking statements are inherently subject to risks and uncertainties, you should not rely on these forward-looking statements as predictions of future events. Any forward-looking statement made in this press release is based only on information currently available and speaks only as of the date on which it is made. Except as required by applicable law, the combined company expressly disclaims any obligations to publicly update any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
Media Contact:
MultiSensor AI
Andrew Klobucar
Director of Marketing
andrew.klobucar@multisensorai.com
Investor Contact:
Alpha IR Group
Mike Cummings or Griffin Morris
MSAI@alpha-ir.com
MultiSensor AI Holdings, Inc.
Condensed Consolidated Statements of Operations
(Amounts in thousands of U.S. dollars, except share and per share data)
| Year Ended December 31, | ||||||||
| 2023 | 2022 | |||||||
Revenue, net | $ | 5,430 | $ | 7,268 | ||||
Cost of goods sold (exclusive of depreciation) | 3,986 | 4,964 | ||||||
Operating expenses: | ||||||||
Selling, general and administrative | 22,105 | 13,606 | ||||||
Depreciation | 872 | 561 | ||||||
Casualty losses, net of recoveries | - | 155 | ||||||
Total operating expenses | 22,977 | 14,322 | ||||||
Operating loss | (21,533 | ) | (12,018 | ) | ||||
Interest expense | 64 | 32 | ||||||
Interest expense, related parties | 30 | 83 | ||||||
Change in fair value of convertible notes | (970 | ) | - | |||||
Tariff refund | (2,401 | ) | - | |||||
Change in fair value of warrants liabilities | (195 | ) | - | |||||
Loss on financing transaction | 4,043 | - | ||||||
Other (income) expenses, net | (44 | ) | (48 | ) | ||||
Loss before income taxes | (22,060 | ) | (12,085 | ) | ||||
Income tax expense | 208 | 1,205 | ||||||
Net loss | $ | (22,268 | ) | $ | (13,290 | ) | ||
Weighted-average shares outstanding, basic and diluted | ||||||||
Basic | 6,257,476 | 5,292,384 | ||||||
Diluted | 6,257,476 | 5,292,384 | ||||||
Net loss per share, basic and diluted | ||||||||
Basic | (3.56 | ) | (2.51 | ) | ||||
Diluted | (3.56 | ) | (2.51 | ) | ||||
MultiSensor AI Holdings, Inc.
Condensed Consolidated Statements of Changes in Shareholders' Equity
(Amounts in thousands of U.S. dollars, except share and per share data)
| Total | ||||||||||||||||||||
| Additional | Retained | Shareholders' | ||||||||||||||||||
| Class A Common Stock | Paid- In | Earnings | Equity | |||||||||||||||||
| Shares | Amount | Capital | (Deficit) | (Deficit) | ||||||||||||||||
January 1, 2022, as previously reported | 514,946 | $ | - | $ | 2,010 | $ | 2,427 | $ | 4,437 | |||||||||||
Elimination of historical equity | (514,946 | ) | - | - | - | - | ||||||||||||||
Retroactive application of recapitalization | 5,292,384 | - | - | - | - | |||||||||||||||
Adjusted Balance at January 1, 2022 | 5,292,384 | $ | - | $ | 2,010 | $ | 2,427 | $ | 4,437 | |||||||||||
Net loss | - | - | - | (13,290 | ) | (13,290 | ) | |||||||||||||
Share-based compensation | - | - | 644 | - | 644 | |||||||||||||||
Balance at December 31, 2022 | 5,292,384 | $ | - | $ | 2,654 | $ | (10,863 | ) | $ | (8,209 | ) | |||||||||
Net loss | - | - | - | (22,268 | ) | (22,268 | ) | |||||||||||||
Conversion of shareholder promissory note | 1,459,700 | - | 18,501 | - | 18,501 | |||||||||||||||
Conversion of convertible notes | 550,486 | - | 2,054 | - | 2,054 | |||||||||||||||
Financing transaction shares | 680,500 | - | 4,641 | - | 4,641 | |||||||||||||||
Issuance of common stock | 282,074 | - | - | - | - | |||||||||||||||
Merger recapitalization (Note 3) | 3,691,679 | 1 | (1,454 | ) | - | (1,453 | ) | |||||||||||||
Deferred transaction costs | - | - | (7,595 | ) | - | (7,595 | ) | |||||||||||||
Share-based compensation | - | - | 14,061 | - | 14,061 | |||||||||||||||
Balance at December 31, 2023 | 11,956,823 | $ | 1 | $ | 32,862 | $ | (33,131 | ) | $ | (268 | ) | |||||||||
MultiSensor AI Holdings, Inc.
Consolidated Statements of Cash Flows
(Amounts in thousands of U.S. dollars)
| Year Ended December 31, | ||||||||
| 2023 | 2022 | |||||||
Operating Activities | ||||||||
Net loss | $ | (22,268 | ) | $ | (13,290 | ) | ||
Adjustments to reconcile net loss to net cash: (used in) provided by operating activities | ||||||||
Depreciation | 872 | 561 | ||||||
Allowance for doubtful accounts | 194 | 158 | ||||||
Inventories impairment | 1,689 | - | ||||||
Non-cash lease expense | (26 | ) | 102 | |||||
Inventory casualty losses | - | 1,376 | ||||||
Deferred income tax expense | (72 | ) | 1,200 | |||||
Share-based compensation | 14,061 | 644 | ||||||
Non-cash PIK interest | 30 | 83 | ||||||
(Gain) on sale of equipment | (18 | ) | - | |||||
Loss on financing transaction | 4,043 | - | ||||||
Change in fair value of warrants liabilities | (195 | ) | - | |||||
Change in fair value of convertible notes | (970 | ) | - | |||||
Increase (decrease) in cash resulting from changes in: | ||||||||
Trade accounts receivable | (928 | ) | (211 | ) | ||||
Deferred transaction costs | (1,098 | ) | - | |||||
Inventories | 372 | 284 | ||||||
Other current assets | 1,144 | 1,306 | ||||||
Other noncurrent assets | - | (1 | ) | |||||
Trade accounts payable | (14 | ) | 461 | |||||
Income taxes payable | 480 | 511 | ||||||
Income taxes receivable | 1 | 1,645 | ||||||
Contract liability | 1,657 | 212 | ||||||
Other current liabilities | (110 | ) | (14 | ) | ||||
Right of use liabilities | (163 | ) | (105 | ) | ||||
Accrued expenses | (3,343 | ) | 1,897 | |||||
Other liabilities | 111 | 11 | ||||||
Net cash used in operating activities | (4,551 | ) | (3,170 | ) | ||||
Investing Activities | ||||||||
Capital expenditures | (1,542 | ) | (1,600 | ) | ||||
Proceeds from sale of equipment | 30 | - | ||||||
Net cash used in investing activities | (1,512 | ) | (1,600 | ) | ||||
Financing Activities | ||||||||
Proceeds of First Insurance Funding line of credit | 647 | - | ||||||
Repayments of First Insurance Funding line of credit | (25 | ) | - | |||||
Proceeds of Wells Fargo line of credit | - | 1,400 | ||||||
Repayments of Wells Fargo line of credit | - | (1,400 | ) | |||||
Proceeds of B1 Bank line of credit | 900 | - | ||||||
Repayments of B1 Bank line of credit | (900 | ) | - | |||||
Proceeds from SMAP related party promissory note | 1,524 | - | ||||||
Proceeds from related party promissory notes | 575 | 1,000 | ||||||
Proceeds from shareholder promissory notes | - | 200 | ||||||
Repayments on shareholder promissory notes | (100 | ) | (100 | ) | ||||
Proceeds from convertible notes | 1,806 | 950 | ||||||
Proceeds from financing transaction | 4,481 | - | ||||||
Merger recapitalization | (2,344 | ) | - | |||||
Net cash provided by financing activities | 6,564 | 2,050 | ||||||
Net increase/(decrease) in cash and cash equivalents | 501 | (2,720 | ) | |||||
Cash and cash equivalents, beginning of year | 654 | 3,374 | ||||||
Cash and cash equivalents, end of the year | $ | 1,155 | $ | 654 | ||||
Supplemental cash flow information | ||||||||
Interest paid | $ | 52 | $ | 29 | ||||
Income taxes paid | 6 | 33 | ||||||
Non-cash investing and financing transactions | ||||||||
Conversion of shareholder promissory note and accrued interests into common stock | $ | 18,501 | $ | - | ||||
Conversion of convertible notes and accrued interest into common stock | $ | 2,054 | $ | - | ||||
Conversion of related party promissory note into convertible note | $ | 1,000 | $ | - | ||||
Conversion of Legacy SMAP related party promissory notes into convertible notes | $ | 1,324 | $ | - | ||||
Transfer of inducement shares in financing transaction | $ | 4,641 | $ | - | ||||
SOURCE: MultiSensor AI Holdings, Inc.
View the original press release on accesswire.com
FAQ
When did MultiSensor AI Holdings, Inc. complete a business combination?
What is the new name of MultiSensor AI Holdings, Inc. post rebranding?
What software platform did MultiSensor AI Holdings, Inc. unveil?
Who commented on the results of MultiSensor AI Holdings, Inc.'s first quarter as a public company?
What did David Gow mention about the company's focus in the first quarter?
What did David Gow say about the company's sales momentum in the latter half of the quarter?
What is MultiSensor AI Holdings, Inc.'s focus for further growth?
