Byrna Technologies Inc

For the period ended Feb 29, 2024. Filed Apr 5, 2024.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Feb 29, 2024 · Filed Apr 5, 2024

BYRN$3.83+2.4%Stored close · as of Nov 6, 2026

See the whole filing, with its images and exhibits

Contents

Cover page

Show cover page

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended February 29, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to _________

Commission File No.333-132456

Byrna Technologies Inc.
(Exact name of registrant as specified in its charter)
Delaware	71-1050654
(State or other jurisdiction of incorporation or	(I.R.S. Employer Identification No.)
organization)
100 Burtt Road, Suite 115
Andover, MA 01810
(Address of Principal Executive Offices, including zip code)
(978) 868-5011
(Registrant’s telephone number, including area code)

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, $0.001, par value per share	BYRN	The Nasdaq Stock Market

Securities registered pursuant to Section 12(g) of the Act: None.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐Non-accelerated filer ☒ Smaller reporting company☒ 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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes☐ No ☒

As of April 1, 2024, the Company had 24,924,389 issued and 22,736,497 outstanding shares of common stock.

TABLE OF CONTENTS

	Page
PART 1 – FINANCIAL INFORMATION	2
Item 1.	Condensed Consolidated Financial Statements	2
	Condensed Consolidated Balance Sheets as of February 29, 2024 (unaudited) and November 30, 2023	2
	Condensed Consolidated Statements of Operations and Comprehensive Loss for the Three Months Ended February 29, 2024 and February 28, 2023 (unaudited)	2
	Condensed Consolidated Statements of Cash Flows for the Three Months Ended February 29, 2024 and February 28, 2023 (unaudited)	4
	Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Three Months Ended February 29, 2024 and February 28, 2023 (unaudited)	5
	Notes to Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	23
Item 4.	Controls and Procedures	23
PART II – OTHER INFORMATION	24
Item 1.	Legal Proceedings	24
Item 1A.	Risk Factors	24
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	24
Item 3.	Defaults Upon Senior Securities	24
Item 4.	Mine Safety Disclosures	24
Item 5.	Other Information	24
Item 6.	Exhibits	25
SIGNATURES	26

PART 1–** FINANCIAL INFORMATION**

ITEM 1.	Condensed Consolidated Financial Statements

Condensed Consolidated Balance Sheets

(Amounts in thousands, except share and per share data)

	February 29,	November 30,
	2024	2023
Unaudited
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$24,176	$20,498
Accounts receivable, net	1,536	2,945
Inventory, net	12,128	13,890
Prepaid expenses and other current assets	1,131	868
Total current assets	38,971	38,201
LONG TERM ASSETS
Intangible assets, net	3,510	3,583
Deposits for equipment	1,269	1,163
Right-of-use asset, net	1,688	1,805
Property and equipment, net	3,591	3,803
Goodwill	2,258	2,258
Loan to joint venture	1,431	1,473
Other assets	24	28
TOTAL ASSETS	$52,742	$52,314
LIABILITIES
CURRENT LIABILITIES
Accounts payable and accrued liabilities	$5,131	$6,158
Operating lease liabilities, current	641	644
Deferred revenue, current	2,595	1,844
Total current liabilities	8,367	8,646
LONG TERM LIABILITIES
Deferred revenue, non-current	71	91
Operating lease liabilities, non-current	1,135	1,258
Total liabilities	9,573	9,995
COMMITMENTS AND CONTINGENCIES (NOTE 18)
STOCKHOLDERS’ EQUITY
Preferred stock, $0.001 par value, 5,000,000 shares authorized, no shares issued	—	—
Common stock, $0.001 par value, 50,000,000 shares authorized. 24,375,754 shares issued and 22,209,767 shares outstanding as of February 29, 2024 and, 24,168,014 shares issued and 22,002,027 outstanding as of November 30, 2023	24	24
Additional paid-in capital	131,374	130,426
Treasury stock (2,165,987 shares purchased as of February 29, 2024 and November 30, 2023)	(17,500)	(17,500)
Accumulated deficit	(69,558)	(69,575)
Accumulated other comprehensive loss	(1,171)	(1,056)
Total Stockholders’ Equity	43,169	42,319
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$52,742	$52,314

Condensed Consolidated Statements of Operations and Comprehensive Loss

(Amounts in thousands except share and per share data)

	For the Three Months Ended
	February 29,	February 28,
	2024	2023
Net revenue	$16,654	$8,411
Cost of goods sold	7,015	3,165
Gross profit	9,639	5,246
Operating expenses	9,803	7,240
LOSS FROM OPERATIONS	(164)	(1,994)
OTHER INCOME (EXPENSE)
Foreign currency transaction loss	(58)	(136)
Interest income	280	143
Loss from joint venture	(42)	(167)
Other income (expense)	1	(58)
INCOME (LOSS) BEFORE INCOME TAXES	17	(2,212)
Income tax benefit	—	59
NET INCOME (LOSS)	17	(2,153)
Foreign currency translation adjustment for the period	(115)	(585)
COMPREHENSIVE LOSS	$(98)	$(2,738)
Basic net income (loss) per share	$0.00	$(0.10)
Diluted net income (loss) per share	$0.00	$(0.10)
Weighted-average number of common shares outstanding - basic	22,035,249	21,860,200
Weighted-average number of common shares outstanding - diluted	22,838,827	21,860,200

Condensed Consolidated Statements of Cash Flows

(Amounts in thousands)

	For the Three Months Ended
	February 29,	February 28,
	2024	2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) for the period	$17	$(2,153)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Stock-based compensation expense	938	1,464
Depreciation and amortization	338	276
Amortization of debt issuance costs	4	—
Operating lease costs	117	362
Loss from joint venture	42	167
Changes in assets and liabilities:
Accounts receivable	1,409	1,487
Deferred revenue	731	525
Inventory	1,762	(2,896)
Prepaid expenses and other current assets	(263)	(418)
Other assets	—	13
Accounts payable and accrued liabilities	(1,027)	(1,823)
Operating lease liabilities	(126)	(375)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	3,942	(3,371)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(171)	(206)
Equity method investment in joint venture	—	(520)
Loan to joint venture	—	(1,556)
NET CASH USED IN INVESTING ACTIVITIES	(171)	(2,282)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from stock option exercises	10	—
NET CASH PROVIDED BY FINANCING ACTIVITIES	10	—
Effects of foreign currency exchange rate changes	(103)	11
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS FOR THE PERIOD	3,678	(5,642)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	20,498	20,068
CASH AND CASH EQUIVALENTS END OF PERIOD	$24,176	$14,426

Condensed Consolidated Statements of Changes in Stockholders’** Equity**

For the Three Months Ended February 29, 2024 and February 28, 2023

(Amounts in thousands except share numbers)

Additional · Treasury · Accumulated Other
Common Stock · Paid-in · Stock · Accumulated · Comprehensive
	Shares	$	Capital	Shares	$	Deficit	Loss	Total
Balance, November 30, 2023	24,168,014	$24	$130,426	(2,165,987)	$(17,500)	$(69,575)	$(1,056)	$42,319
Stock-based compensation	—	—	938	—	—	—	—	938
Issuance of common stock pursuant to exercise of stock options	167,967	—	10	—	—	—	—	10
Issuance of common stock pursuant to vesting of restricted stock units	39,773	—	—	—	—	—	—	—
Net income	—	—	—	—	—	17	—	17
Foreign currency translation	—	—	—	—	—	—	(115)	(115)
Balance, February 29, 2024	24,375,754	$24	$131,374	(2,165,987)	$(17,500)	$(69,558)	$(1,171)	$43,169
Balance, November 30, 2022	24,018,612	$23	$125,474	(2,165,987)	$(17,500)	$(61,383)	$(620)	$45,994
Issuance of common stock pursuant to vesting of restricted stock units	13,636	—	—	—	—	—	—	—
Stock-based compensation	—	—	1,464	—	—	—	—	1,464
Net loss	—	—	—	—	—	(2,153)	—	(2,153)
Foreign currency translation	—	—	—	—	—	—	(585)	(585)
Balance, February 28, 2023	24,032,248	$23	$126,938	(2,165,987)	$(17,500)	$(63,536)	$(1,205)	$44,720

ContentsView on SEC.gov

The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.