Guerrilla RF Reports Record Revenue for Full Year 2022

March 2, 2023

FY22 revenue rose 10.7% year-over-year

Increased penetration into fast-growth markets of electric vehicles, 5G infrastructure, and cellular repeaters, and entered the satellite communications market

GREENSBORO, N.C.–(BUSINESS WIRE)–$GUER–Guerrilla RF, Inc. (OTCQX: GUER), a leading provider of state-of-the-art RF and microwave communications solutions, today announced financial results for the fourth quarter and full year ended December 31, 2022.

Full Year 2022 Financial Results

Total revenues were $11.6 million for the year ended December 31, 2022, an increase of approximately 10.7% compared to 2021
Gross profit of $6.8 million (58.3%) for the year ended December 31, 2022, as compared to $6.1 million (58.6%) for 2021, a 10.2% increase
Research and development (R&D) expense was $8.1 million for the year ended December 31, 2022, compared to $4.6 million for 2021, an increase of approximately 77% resulting from continued investment in new products intended to increase future revenues
Sales and marketing expense was $4.6 million for the year ended December 31, 2022, compared to $2.8 million for 2021, an increase of approximately 68% primarily due to increased headcount and efforts to position the Company’s products in numerous industries as the leading RF solution
General and administrative expense was $5.1 million for the year ended December 31, 2022, compared to $2.5 million for 2021, an increase of approximately 109%. The increase was largely due to increased expenses necessary to support a public company
Net loss for the year ending December 31, 2022, was $12.0 million or $0.36 per share versus a net loss of $2.8 million or $0.24 per share for 2021
As of December 31, 2022, the Company maintained cash and cash equivalents of $4.3 million
Product revenue to the automotive vertical (Company’s largest vertical) decreased 5.1% in 2022 to $4.1 million, which is consistent with industry-wide contraction. Product revenue to Repeaters (second largest vertical) increased 13.4% to $2.7 million, while revenue to 5G infrastructure (third largest vertical) increased 7.7% to $2.1 million

Full Year 2022 Company Highlights

Increased R&D investment by 76.7% to $8.1 million to seek to capture market share in fast-growing markets of electric vehicles, 5G infrastructure, cellular repeaters, and satellite communications
Record number of customer samples shipped, up 28.3% year-over-year
Secured a $580,000 purchase order from a top-tier electric vehicle manufacturer
Eight new design wins confirmed with a strategic automotive customer, which the Company anticipates will generate an aggregated peak volume of 30 million units per year
Received first design wins for a new digital step attenuator (DSA) product which is used to control and regulate signal strength in communications systems in markets ranging from automotive, cable TV, defense and aerospace, microwave radio, to wireless infrastructure and test equipment. Introduced the company’s first silicon-on-insulator (SOI) product into production – SOI technology enables continued miniaturization of electronics as well as high-performance radio frequency systems
Average lead time for fulfilling orders returned to pre-COVID levels
Introduced 18 new products to meet accelerating customer demand, and expanded product portfolio
Triad Business Journal named CEO Ryan Pratt a “2022 Power Player”
Strengthened financial and technology expertise by appointing industry professionals Susan Barkal and Virginia Summerell to the Board of Directors
Shares up-listed to OTC Markets’ top-tier OTCQX on July 28, 2022

Based on the information available as of today, Guerrilla RF is offering the following guidance:

First quarter 2023 revenue is expected to be between $2.8 million and $3.3 million

Management Commentary

“Guerrilla RF became a publicly traded company in 2022, less than ten years after its founding,” said Ryan Pratt, founder and CEO. “It was a year of record revenues, strong gross margins, and increased ASPs. We closed out the year strong as we saw cycle times return to pre-COVID levels, and book-to-bill improve to greater than 1 in Q4, 2022. We won numerous design awards, expanded our product portfolio and customer base, and invested to drive future revenue growth.”

Financial Tables

The following table compares condensed elements of the Company’s summarized Consolidated Statements of Operations and Consolidated Balance Sheets data for the three-month periods and years ended December 31, 2022, and 2021, respectively. Readers should refer to our annual report on Form 10-K for the year ended December 31, 2022, for additional information as well as disclosure of important risk factors:

Guerrilla RF, Inc.
Consolidated Statements of Operations
	Unaudited Three Months Ended						Twelve Months Ended
	Dec 31, 2022			Dec 31, 2021			Dec 31, 2022			Dec 31, 2021
Product	$	2,088,685		$	2,553,094		$	10,558,570		$	9,827,817
Royalties and non-recurring engineering		339,653			181,793			1,042,334			652,082
Total		2,428,338			2,734,887			11,600,904			10,479,899

Direct product costs		1,059,749			1,201,556			4,835,632			4,340,292


Gross Profit		1,368,589			1,533,331			6,765,272			6,139,607

Operating Expenses:
Research and development		2,198,161			1,408,551			8,114,377			4,592,879
Sales and marketing		1,186,448			869,121			4,634,011			2,752,153
General and administrative		1,291,619			1,102,484			5,138,410			2,464,295
Total Operating Expenses		4,676,228			3,380,156			17,886,798			9,809,327

Operating Loss		(3,307,639	)		(1,846,825	)		(11,121,526	)		(3,669,720	)

Interest expense		(443,271	)		(81,712	)		(874,713	)		(551,495	)
Other income (expenses)		(275	)		14,960			(30,526	)		1,384,060
Total Other Income (Expenses), net		(443,546	)		(66,752	)		(905,239	)		832,565
Net Loss	$	(3,751,185	)	$	(1,913,577	)	$	(12,026,765	)	$	(2,837,155	)

Guerrilla RF, Inc.
Consolidated Balance Sheets
	Dec 31, 2022			Dec 31, 2021
Assets
Cash	$	4,340,407		$	5,313,985
Accounts receivable, net		1,124,971			1,667,006
Inventories, net		1,672,925			1,439,014
Prepaid expense		643,401			1,187,418
Total Current Assets		7,781,704			9,607,423

Prepaid and other		3,574,746			0
Operating lease right-of-use assets		209,669			–
Property, plant, and equipment, net		5,098,097			1,027,312
Total Assets	$	16,664,216		$	10,634,735

Liabilities and Stockholders’ Equity
Short-term debt	$	959,803		$	5,117
Operating lease, current portion		139,794			–
Finance lease, current portion		1,078,506			118,420
Accounts payable and accrued expenses		4,466,045			1,186,443
Total Current Liabilities		6,644,148			1,309,980

Long-term debt		44,279			–
Operating lease		71,714			–
Finance lease		2,984,618			264,347
Notes payable		4,564,564			144,783
Total Liabilities		14,309,323			1,719,110

Preferred stock, $0.0001 par value, 10,000,000 shares authorized, no shares issued and outstanding as of December 31, 2022 and 2021		–			–
Common stock, $0.0001 par value, 300,000,000 shares authorized, 37,267,237 and 33,222,192 shares issued and outstanding as of December 31, 2022 and 2021, respectively		3,727			3,322
Additional paid-in-capital		29,424,334			23,958,705
Accumulated deficit		(27,073,168	)		(15,046,402	)
Total Stockholders’ Equity		2,354,893			8,915,625
Total Liabilities and Stockholders’ Equity	$	16,664,216		$	10,634,735

About Guerrilla RF, Inc.

Founded in 2013, Guerrilla RF, Inc., develops and manufactures high-performance state-of-the-art radiofrequency (RF) and microwave communication solutions for wireless OEMs in multiple high-growth market segments, which include network infrastructure for 5G/4G macro and small cell base stations, cellular repeaters/DAS, automotive telematics, military communications, navigation, and high-fidelity wireless audio. The Company has an extensive portfolio of 100+ high-performance RF and microwave semiconductor devices with 50+ new products in development. As one of the fastest growing semiconductor firms in the industry, Guerrilla RF drives innovation through its R&D to commercialization initiatives and focuses on product excellence and custom solutions to underserved markets. To date, the Company has shipped over 150 million devices and has repeatedly been included in Inc. Magazine’s annual “Inc. 5000” list. Guerrilla RF recently made the top “Inc. 500” list for the second year in a row. For more information, please visit https://guerrilla-rf.com or follow the Company on Twitter and LinkedIn.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995, which statements are inherently subject to risks and uncertainties. Forward-looking statements include projections, predictions, expectations, or beliefs about future events or results or otherwise are not statements of historical fact. Such statements are often characterized by the use of qualifying words (and their derivatives) such as “expect,” “believe,” “estimate,” “plan,” “project,” “anticipate,” or other statements concerning opinions or judgments of the Company and its management about future events. You should not place undue reliance on forward-looking statements because they involve known and unknown risks, uncertainties, and assumptions that are difficult or impossible to predict and, in some cases, beyond the Company’s control. Actual results may differ materially from those in the forward-looking statements as a result of several factors, including those described in the Company’s filings with the SEC available at www.sec.gov. Forward-looking statements speak only as of the date they are made. The Company undertakes no obligation to revise or update information in this release to reflect events or circumstances in the future, even if new information becomes available.

Contacts

Sam Funchess, VP of Investor Relations

sfunchess@guerrilla-rf.com
+1 336 510 7840