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Prospectus Supplement | | | | | | | |
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| | | | S-1 | | | |
| | | | S-5 | | | |
| | | | S-7 | | | |
| | | | S-10 | | | |
| | | | S-12 | | | |
| | | | S-13 | | | |
| | | | S-14 | | | |
| | | | S-16 | | | |
| | | | S-20 | | | |
| | | | S-24 | | | |
| | | | S-24 | | | |
| | | | S-24 | | | |
| | | | S-25 | | |
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Prospectus | | | | | | | |
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($ in thousands)
|
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Q3 FY23 (6/30/2023)
|
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Q2 FY23 (3/31/2023)
|
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Q1 FY23 (12/31/2022)
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Inertial Nav.
|
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Broadband/
Def. Opto.* |
| |
Inertial Nav.
|
| |
Broadband/
Def. Opto.* |
| |
Inertial Nav.
|
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Broadband/
Def. Opto.* |
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Revenue
|
| | | | 26,718.3 | | | | | | (20.1) | | | | | | 24,250.4 | | | | | | 2,569.2 | | | | | | 19,978.6 | | | | | | 4,974.5 | | | | ||
Non-GAAP Gross Profit
|
| | | | 7,883.1 | | | | | | (3,542.9) | | | | | | 5,295.6 | | | | | | (985.5) | | | | | | 4,942.7 | | | | | | (1,118.9) | | | | ||
Non-GAAP Gross Margin
|
| | | | 29.5% | | | | | | 17626.4% | | | | | | 21.8% | | | | | | -38.4% | | | | | | 24.7% | | | | | | -22.5% | | | | ||
Adjusted EBITDA
|
| | | | (1,332.4) | | | | | | (3,005.6) | | | | | | (4,408.6) | | | | | | (2,109.4) | | | | | | | | | | | | | | | | | |
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Q4 FY22 (9/30/2022)
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Q3 FY22 (6/30/2022)
|
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Q2 FY22 (3/31/2022)
|
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Q1 FY22 (12/31/2021)
|
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Inertial Nav.
|
| |
Broadband/
Def. Opto.* |
| |
Inertial Nav.
|
| |
Broadband/
Def. Opto.* |
| |
Inertial Nav.
|
| |
Broadband/
Def. Opto.* |
| |
Inertial Nav.
|
| |
Broadband/
Def. Opto.* |
| ||||||||||||||||||||||||
Revenue
|
| | | | 19,666.8 | | | | | | 5,897.6 | | | | | | 9,891.3 | | | | | | 13,784.8 | | | | | | 7,614.7 | | | | | | 25,034.8 | | | | | | 8,144.8 | | | | | | 34,090.84 | | |
Non-GAAP Gross Profit
|
| | | | 521.2 | | | | | | (83.3) | | | | | | 631.7 | | | | | | 3,589.6 | | | | | | 1,263.0 | | | | | | 8,384.6 | | | | | | 1,561.1 | | | | | | 14,401.70 | | |
Non-GAAP Gross Margin
|
| | | | 2.7% | | | | | | -1.4% | | | | | | 6.4% | | | | | | 26.0% | | | | | | 16.6% | | | | | | 33.5% | | | | | | 19.2% | | | | | | 42.2% | | |
$ in thousands
|
| |
1Q22
|
| |
2Q22
|
| |
3Q22
|
| |
4Q22
|
| |
1Q23
|
| |
2Q23
|
| |
3Q23
|
| |||||||||||||||||||||||||||||||||||||||
| | |
GP
|
| |
GP
|
| |
GP
|
| |
GP
|
| |
GP
|
| |
Op
Profit |
| |
GP
|
| |
OP
Profit |
| |
GP
|
| |
OP
Profit |
| ||||||||||||||||||||||||||||||
EMKR GAAP
|
| | | | 15,797 | | | | | | 9,017 | | | | | | 3,898 | | | | | | 1,006 | | | | | | 3,059 | | | | | | (11,540) | | | | | | 3,711 | | | | | | (12,044) | | | | | | 3,500 | | | | | | (9,961) | | |
| | | | | 37% | | | | | | 28% | | | | | | 16% | | | | | | 4% | | | | | | 12% | | | | | | | | | | | | 14% | | | | | | | | | | | | 13% | | | | | | | | |
Stock Based Compensation
|
| | | | 151 | | | | | | 178 | | | | | | 275 | | | | | | 348 | | | | | | 387 | | | | | | 1,734 | | | | | | 331 | | | | | | 1,535 | | | | | | 436 | | | | | | 1,713 | | |
Asset Retirement Obligation
|
| | | | 9 | | | | | | 9 | | | | | | 9 | | | | | | 64 | | | | | | 51 | | | | | | 51 | | | | | | (18) | | | | | | (18) | | | | | | 51 | | | | | | 51 | | |
Acquisition Related
|
| | | | 6 | | | | | | 12 | | | | | | 40 | | | | | | 58 | | | | | | 326 | | | | | | 2,386 | | | | | | 287 | | | | | | 287 | | | | | | 353 | | | | | | 353 | | |
Restructuring, Separations, & Transitions
|
| | | | — | | | | | | 432 | | | | | | — | | | | | | — | | | | | | — | | | | | | 475 | | | | | | — | | | | | | 1,247 | | | | | | — | | | | | | 2,161 | | |
Litigation Related
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 105 | | | | | | — | | | | | | 884 | | | | | | — | | | | | | (1,086) | | |
Variable Compensation Adjustment
|
| | | | — | | | | | | — | | | | | | — | | | | | | (1,040) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Asset Impairment
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Gain/Loss on Asset Sales
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,171) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
EMKR Non-GAAP
|
| | | | 15,963 | | | | | | 9,648 | | | | | | 4,222 | | | | | | 436 | | | | | | 3,823 | | | | | | (7,960) | | | | | | 4,311 | | | | | | (8,085) | | | | | | 4,340 | | | | | | (6,769) | | |
| | | | | 38% | | | | | | 30% | | | | | | 18% | | | | | | 2% | | | | | | 15% | | | | | | | | | | | | 16% | | | | | | | | | | | | 16% | | | | | | | | |
Depreciation
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,450 | | | | | | | | | | | | 1,566 | | | | | | | | | | | | 2,431 | | |
EMKR Adjusted EBITDA
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (6,510) | | | | | | | | | | | | (6,519) | | | | | | | | | | | | (4,338) | | |
EMKR Adjusted EBITDA Margin
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | -26% | | | | | | | | | | | | -24% | | | | | | | | | | | | -16% | | |
$ in thousands
|
| |
1Q22
|
| |
2Q22
|
| |
3Q22
|
| |
4Q22
|
| |
1Q23
|
| |
2Q23
|
| |
3Q23
|
| |||||||||||||||||||||||||||||||||||||||
| | |
GP
|
| |
GP
|
| |
GP
|
| |
GP
|
| |
GP
|
| |
Op
Profit |
| |
GP
|
| |
OP
Profit |
| |
GP
|
| |
OP
Profit |
| ||||||||||||||||||||||||||||||
Inertial Navigation GAAP
|
| | | | 1,491 | | | | | | 1,180 | | | | | | 483 | | | | | | 911 | | | | | | 4,379 | | | | | | (6,916) | | | | | | 4,861 | | | | | | (8,644) | | | | | | 7,260 | | | | | | (2,904) | | |
| | | | | 18% | | | | | | 15% | | | | | | 5% | | | | | | 5% | | | | | | 22% | | | | | | | | | | | | 20% | | | | | | | | | | | | 27% | | | | | | | | |
Stock Based Compensation
|
| | | | 63 | | | | | | 70 | | | | | | 108 | | | | | | 151 | | | | | | 199 | | | | | | 1,354 | | | | | | 211 | | | | | | 1,177 | | | | | | 264 | | | | | | 1,248 | | |
Asset Retirement Obligation
|
| | | | 1 | | | | | | 1 | | | | | | 1 | | | | | | 57 | | | | | | 39 | | | | | | 39 | | | | | | (30) | | | | | | (30) | | | | | | 39 | | | | | | 39 | | |
Acquisition Related
|
| | | | 6 | | | | | | 12 | | | | | | 40 | | | | | | 65 | | | | | | 326 | | | | | | 2,386 | | | | | | 254 | | | | | | 1,518 | | | | | | 320 | | | | | | 643 | | |
Restructuring, Separations, & Transitions
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Litigation Related
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 105 | | | | | | — | | | | | | 884 | | | | | | — | | | | | | (1,086) | | |
Variable Compensation Adjustment
|
| | | | — | | | | | | — | | | | | | — | | | | | | (662) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Asset Impairment
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Gain/Loss on Asset Sales
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (1,171) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Inertial Navigation Non-GAAP
|
| | | | 1,561 | | | | | | 1,263 | | | | | | 632 | | | | | | 522 | | | | | | 4943 | | | | | | (4,203) | | | | | | 5,296 | | | | | | (5,095) | | | | | | 7,883 | | | | | | (2,060) | | |
| | | | | 19% | | | | | | 17% | | | | | | 6% | | | | | | 3% | | | | | | 25% | | | | | | | | | | | | 22% | | | | | | | | | | | | 30% | | | | | | | | |
Depreciation
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 688 | | | | | | | | | | | | 687 | | | | | | | | | | | | 728 | | |
Inertial Navigation Adjusted
EBITDA |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (3,515) | | | | | | | | | | | | (4,408) | | | | | | | | | | | | (1,332) | | |
Inertial Nav Adjusted EBITDA
Margin |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | -18% | | | | | | | | | | | | -18% | | | | | | | | | | | | -5% | | |
$ in thousands
|
| |
1Q22
|
| |
2Q22
|
| |
3Q22
|
| |
4Q22
|
| |
1Q23
|
| |
2Q23
|
| |
3Q23
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | |
GP
|
| |
GP
|
| |
GP
|
| |
GP
|
| |
GP
|
| |
Opex
|
| |
Op
Profit |
| |
GP
|
| |
Opex
|
| |
Op
Profit |
| |
GP
|
| |
Opex
|
| |
Op
Profit |
| |||||||||||||||||||||||||||||||||||||||
Broadband GAAP
|
| | | | 14,113 | | | | | | 7,784 | | | | | | 2,347 | | | | | | 118 | | | | | | (1,049) | | | | | | 2,663 | | | | | | (3,712) | | | | | | (1,805) | | | | | | 1,348 | | | | | | (3,153) | | | | | | (3,662) | | | | | | 2,868 | | | | | | (6,530) | | |
Plus: Defense Optoelectronics
|
| | | | 193 | | | | | | 53 | | | | | | 1,068 | | | | | | (23) | | | | | | (271) | | | | | | 641 | | | | | | (912) | | | | | | 655 | | | | | | 902 | | | | | | (247) | | | | | | (98) | | | | | | 429 | | | | | | (527) | | |
Broadband GAAP & Def-Opto
|
| | | | 14,306 | | | | | | 7,837 | | | | | | 3,415 | | | | | | 95 | | | | | | (1,320) | | | | | | 3,304 | | | | | | (4,624) | | | | | | (1,150) | | | | | | 2,250 | | | | | | (3,400) | | | | | | (3,760) | | | | | | 3,297 | | | | | | (7,057) | | |
| | | | | 42% | | | | | | 31% | | | | | | 25% | | | | | | 2% | | | | | | -27% | | | | | | | | | | | | | | | | | | -45% | | | | | | | | | | | | | | | | | | NM | | | | | | | | | | | | | | |
Stock Based Compensation
|
| | | | 88 | | | | | | 108 | | | | | | 167 | | | | | | 197 | | | | | | 188 | | | | | | 192 | | | | | | 380 | | | | | | 120 | | | | | | 238 | | | | | | 358 | | | | | | 172 | | | | | | 293 | | | | | | 465 | | |
Asset Retirement Obligation
|
| | | | 8 | | | | | | 8 | | | | | | 8 | | | | | | 7 | | | | | | 12 | | | | | | — | | | | | | 12 | | | | | | 12 | | | | | | — | | | | | | 12 | | | | | | 12 | | | | | | — | | | | | | 12 | | |
Acquisition Related
|
| | | | — | | | | | | — | | | | | | — | | | | | | (7) | | | | | | — | | | | | | — | | | | | | — | | | | | | 33 | | | | | | | | | | | | | | | | | | 33 | | | | | | (323) | | | | | | (290) | | |
Restructuring, Separations, & Transitions
|
| | | | — | | | | | | 432 | | | | | | — | | | | | | — | | | | | | — | | | | | | 475 | | | | | | 475 | | | | | | — | | | | | | (17) | | | | | | (17) | | | | | | — | | | | | | 2,161 | | | | | | 2,161 | | |
Litigation Related
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Variable Compensation Adjustment
|
| | | | — | | | | | | — | | | | | | — | | | | | | (378) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Asset Impairment Charge
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Gain/Loss on Asset Sales
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | 24 | | | | | | 24 | | | | | | — | | | | | | — | | | | | | — | | |
Broadband & Def-Opto Non-GAAP
|
| | | | 14,402 | | | | | | 8,385 | | | | | | 3,590 | | | | | | (86) | | | | | | (1,120) | | | | | | 2,637 | | | | | | (3,757) | | | | | | (985) | | | | | | 2,005 | | | | | | (2,990) | | | | | | (3,543) | | | | | | 1,166 | | | | | | (4,709) | | |
| | | | | 42% | | | | | | 33% | | | | | | 26% | | | | | | -1% | | | | | | -23% | | | | | | | | | | | | | | | | | | -38% | | | | | | | | | | | | | | | | | | NM | | | | | | | | | | | | | | |
Depreciation
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 762 | | | | | | | | | | | | | | | | | | 879 | | | | | | | | | | | | | | | | | | 1,703 | | |
Broadband & Def-Opto Adjusted EBITDA
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (2,995) | | | | | | | | | | | | | | | | | | (2,111) | | | | | | | | | | | | | | | | | | (3,006) | | |
B’band & Def-O Adjusted EBITDA Margin
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | -76% | | | | | | | | | | | | | | | | | | -116% | | | | | | | | | | | | | | | | | | NM | | |
|
Public offering price per share
|
| | | | | | | | | $ | | | |
|
Net tangible book value per share as of June 30, 2023
|
| | | $ | 1.95 | | | | | | | | |
|
Increase in net tangible book value per share of common stock and pre-funded
warrants attributable to investors participating in this offering |
| | | | | | | | | | | | |
|
As adjusted net tangible book value per share after giving effect to this offering
|
| | | | | | | | | | | | |
|
Dilution per share to investors in this offering
|
| | | | | | | | | $ | | | |
Underwriter
|
| |
Number of
Shares |
| |
Number of
Pre-Funded Warrants |
|
Craig-Hallum Capital Group LLC
|
| | | | | | |
Total
|
| | | | | | |
| | | | | | | | | | |
Underwriting discount to be paid by us
|
| | | $ | | | | | | |
Per Share
|
| | | | | | | | | |
Per Pre-Funded Warrant
|
| | | | | | | | | |
Total | | | | | | | | | | |
| | | | | 1 | | | |
| | | | | 1 | | | |
| | | | | 2 | | | |
| | | | | 3 | | | |
| | | | | 5 | | | |
| | | | | 6 | | | |
| | | | | 7 | | | |
| | | | | 8 | | | |
| | | | | 11 | | | |
| | | | | 19 | | | |
| | | | | 21 | | | |
| | | | | 22 | | | |
| | | | | 23 | | | |
| | | | | 25 | | | |
| | | | | 25 | | |