Byrna Technologies Inc.
For the period ended Feb 28, 2025. Filed Apr 10, 2025.
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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 28, 2025 · Filed Apr 10, 2025
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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 28, 2025
☐ 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 | Nasdaq Capital 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 10, 2025, the Company had 22,667,235 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 28, 2025 (unaudited) and November 30, 2024 | 2 | |
| Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the Three Months Ended February 28, 2025 and February 29, 2024 (unaudited) | 3 | |
| Condensed Consolidated Statements of Cash Flows for the Three Months Ended February 28, 2025 and February 29, 2024 (unaudited) | 4 | |
| Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Three Months Ended February 28, 2025 and February 29, 2024 (unaudited) | 5 | |
| Notes to Condensed Consolidated Financial Statements | 6 | |
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 19 |
| Item 3. | Quantitative and Qualitative Disclosures about Market Risk | 24 |
| Item 4. | Controls and Procedures | 24 |
| PART II – OTHER INFORMATION | 25 | |
| Item 1. | Legal Proceedings | 25 |
| Item 1A. | Risk Factors | 25 |
| Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 25 |
| Item 3. | Defaults Upon Senior Securities | 25 |
| Item 4. | Mine Safety Disclosures | 25 |
| Item 5. | Other Information | 25 |
| Item 6. | Exhibits | 26 |
| SIGNATURES | 27 | |
PART 1–** FINANCIAL INFORMATION**
| ITEM 1. | Condensed Consolidated Financial Statements |
|---|
Condensed Consolidated Balance Sheets
(Amounts in thousands, except share and per share data)
| February 28, | November 30, | |
|---|---|---|
| 2025 | 2024 | |
| Unaudited | ||
| ASSETS | ||
| CURRENT ASSETS | ||
| Cash and cash equivalents | $7,669 | $16,829 |
| Accounts receivable, net | 2,900 | 2,630 |
| Inventory, net | 23,182 | 19,972 |
| Prepaid expenses and other current assets | 3,441 | 2,623 |
| Marketable debt securities | 11,620 | 8,904 |
| Total current assets | 48,812 | 50,958 |
| LONG TERM ASSETS | ||
| Deposits for equipment | 3,669 | 2,665 |
| Right-of-use-asset, net | 2,218 | 2,452 |
| Property and equipment, net | 4,651 | 3,408 |
| Intangible assets, net | 3,273 | 3,337 |
| Goodwill | 2,258 | 2,258 |
| Deferred tax asset | 5,468 | 5,837 |
| Other assets | 689 | 1,007 |
| TOTAL ASSETS | $71,038 | $71,922 |
| LIABILITIES | ||
| CURRENT LIABILITIES | ||
| Accounts payable and accrued liabilities | $11,182 | $13,108 |
| Operating lease liabilities, current | 572 | 539 |
| Deferred revenue, current | 483 | 1,791 |
| Total current liabilities | 12,237 | 15,438 |
| LONG TERM LIABILITIES | ||
| Deferred revenue, non-current | 11 | 17 |
| Operating lease liabilities, non-current | 1,963 | 2,098 |
| Total liabilities | 14,211 | 17,553 |
| COMMITMENTS AND CONTINGENCIES (NOTE 21) | ||
| 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. 25,182,452 shares issued and 22,667,235 shares outstanding as of February 28, 2025, and 25,010,976 shares issued and 22,495,759 outstanding as of November 30, 2024 | 25 | 25 |
| Additional paid-in capital | 133,895 | 133,029 |
| Treasury stock (2,515,217 shares purchased as of February 25, 2025 and November 30, 2024, respectively) | (21,253) | (21,253) |
| Accumulated deficit | (55,121) | (56,783) |
| Accumulated other comprehensive loss | (719) | (649) |
| Total Stockholders’ Equity | 56,827 | 54,369 |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $71,038 | $71,922 |
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
(Amounts in thousands except share and per share data)
| For the Three Months Ended | ||
|---|---|---|
| February 28, | February 29, | |
| 2025 | 2024 | |
| Net revenue | $26,190 | $16,654 |
| Cost of goods sold | 10,266 | 7,015 |
| Gross profit | 15,924 | 9,639 |
| Operating expenses | 14,228 | 9,803 |
| INCOME (LOSS) FROM OPERATIONS | 1,696 | (164) |
| OTHER INCOME (EXPENSE) | ||
| Foreign currency transaction loss | (80) | (58) |
| Interest income | 186 | 280 |
| Loss from joint venture | - | (42) |
| Other income | - | 1 |
| INCOME BEFORE INCOME TAXES | 1,802 | 17 |
| Income tax provision | (140) | - |
| NET INCOME | 1,662 | 17 |
| Foreign exchange translation adjustment | (130) | (115) |
| Unrealized gain on marketable debt securities | 60 | - |
| COMPREHENSIVE INCOME (LOSS) | $1,592 | $(98) |
| Basic net income per share | $0.07 | $0.00 |
| Diluted net income per share | $0.07 | $0.00 |
| Weighted-average number of common shares outstanding - basic | 22,587,099 | 22,035,249 |
| Weighted-average number of common shares outstanding - diluted | 24,098,635 | 22,838,827 |
Condensed Consolidated Statements of Cash Flows
(Amounts in thousands)
| For the Three Months Ended | ||
|---|---|---|
| February 28, | February 29, | |
| 2025 | 2024 | |
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Net income for the period | $1,662 | $17 |
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
| Stock-based compensation expense | 840 | 938 |
| Depreciation and amortization | 440 | 338 |
| Amortization of debt issuance costs | — | 4 |
| Operating lease costs | 234 | 117 |
| Loss from joint venture | — | 42 |
| Deferred tax (benefit) provision | 369 | — |
| Changes in assets and liabilities: | ||
| Accounts receivable | (270) | 1,409 |
| Deferred revenue | (1,315) | 731 |
| Inventory | (3,210) | 1,762 |
| Prepaid expenses and other current assets | (460) | (263) |
| Other assets | (40) | — |
| Accounts payable and accrued liabilities | (1,925) | (1,027) |
| Operating lease liabilities | (102) | (126) |
| NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (3,777) | 3,942 |
| CASH FLOWS FROM INVESTING ACTIVITIES | ||
| Purchases of property and equipment | (2,642) | (171) |
| Purchases of marketable debt securities | (2,656) | |
| NET CASH USED IN INVESTING ACTIVITIES | (5,298) | (171) |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||
| Proceeds from stock option exercises | 93 | 10 |
| Payment of taxes withheld on issuance of restricted stock units | (67) | — |
| NET CASH PROVIDED BY FINANCING ACTIVITIES | 26 | 10 |
| Effects of foreign currency exchange rate changes | (111) | (103) |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS FOR THE PERIOD | (9,160) | 3,678 |
| CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 16,829 | 20,498 |
| CASH AND CASH EQUIVALENTS, END OF PERIOD | $7,669 | $24,176 |
Condensed Consolidated Statements of Changes in Stockholders’** Equity**
For the Three Months Ended February 28, 2025 and February 29, 2024
(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, 2024 | 25,010,976 | $25 | $133,029 | (2,515,217) | $(21,253) | $(56,783) | $(649) | $54,369 |
| Stock-based compensation | — | — | 840 | — | — | — | — | 840 |
| Issuance of common stock pursuant to exercise of stock options | 74,551 | — | 93 | — | — | — | — | 93 |
| Issuance of common stock pursuant to vesting of restricted stock units | 96,925 | — | (67) | — | — | — | — | (67) |
| Net income | — | — | — | — | — | 1,662 | — | 1,662 |
| Unrealized gain on marketable securities | — | — | — | — | — | — | 60 | 60 |
| Foreign currency translation | — | — | — | — | — | — | (130) | (130) |
| Balance, February 28, 2025 | 25,182,452 | $25 | $133,895 | (2,515,217) | $(21,253) | $(55,121) | $(719) | $56,827 |
| 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 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.