Owlet, Inc. reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company achieved revenues of $22.1 million for the three months ended September 30, 2024, marking a substantial increase of $12.9 million (140.9%) compared to $9.2 million in the same period of 2023. For the nine months ended September 30, 2024, revenues reached $57.6 million, up $24.6 million (74.4%) from $33.0 million in the prior year. This growth was primarily driven by increased product sales, particularly in the U.S., where revenues rose to $18.5 million for the quarter, compared to $7.3 million in the previous year.
Gross profit also saw a notable increase, reaching $11.5 million for the three months ended September 30, 2024, up from $3.3 million in the same period of 2023, resulting in a gross margin of 52.2%, compared to 36.3% a year earlier. However, the company reported an operating loss of $4.8 million for the quarter, an improvement from a loss of $7.9 million in the same period last year. The net loss for the quarter was $5.6 million, consistent with the previous year.
As of September 30, 2024, Owlet's total assets increased to $56.1 million, up from $44.1 million at the end of 2023. The company reported cash and cash equivalents of $21.5 million, an increase from $16.6 million at the end of 2023. Total current liabilities decreased to $35.7 million from $45.1 million, contributing to a reduction in total stockholders’ deficit to $(21.5 million) from $(37.5 million) at the end of 2023.
Strategically, Owlet entered into a loan facility agreement in September 2024, allowing for up to $15 million in financing, and also established an asset-based revolving credit facility with a maximum commitment of $15 million. The company issued 3.1 million shares of common stock in September 2024, netting proceeds of approximately $10.6 million. Additionally, it issued 750,000 shares of redeemable common stock as part of the loan facility agreement.
Despite these positive developments, Owlet continues to face challenges, including recurring operating losses and negative cash flows from operations, raising concerns about its ability to continue as a going concern. The company has also been involved in ongoing legal proceedings related to alleged violations of the Securities Exchange Act, which could materially affect its financial condition.
About Owlet, Inc.
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