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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of report (Date of earliest event reported): November 8, 2023

 

Airspan Networks Holdings Inc.

(Exact Name of Registrant as Specified in Charter)

 

Delaware   001-39679   85-2642786
(State or Other Jurisdiction
of Incorporation)
  (Commission
File Number)
  (I.R.S. Employer
Identification No.)

 

777 Yamato Road, Suite 310, Boca Raton, FL 33431
(Address of Principal Executive Offices) (Zip Code)

 

(561) 893-8670
(Registrant’s Telephone Number, Including Area Code)

 

N/A

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
   
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
   
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
   
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered or to be 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, par value $0.0001 per share   MIMO   NYSE American

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

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. 

 

 

 

 

 

 

Item 2.02.Results of Operations and Financial Condition.

 

On November 8, 2023, Airspan Networks Holdings Inc. (the “Company”) issued a press release announcing its financial results for the third quarter ended September 30, 2023. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

 

In accordance with General Instruction B.2 of Form 8-K, the information in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

 

Item 9.01.Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit Number   Description
99.1   Press Release dated November 8, 2023
     
104   Cover Page Interactive Data File

 

1

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Dated: November 9, 2023 Airspan Networks Holdings Inc.
     
  By: /s/ David Brant
    David Brant
   

Senior Vice President, Chief Financial Officer,

Treasurer and Secretary

 

2

 

 

Exhibit 99.1

 

AIRSPAN NETWORKS HOLDINGS INC.
REPORTS THIRD QUARTER 2023
RESULTS

 

November 08, 2023 04:30 PM Eastern Standard Time

 

BOCA RATON, Fla.--(BUSINESS WIRE)-- Airspan Networks Holdings Inc. (NYSE American: MIMO), which provides ground-breaking, disruptive software and hardware for 5G networks, and a pioneer in end-to-end Open RAN solutions, today announced results for the third quarter ended September 30, 2023.

 

Third Quarter Financial Highlights

 

On August 11, 2023 Airspan Networks Holdings Inc. completed the previously announced sale of Mimosa Networks Inc to Radisys Corporation. The transaction resulted in a gain on the sale of $28.6 million. The proceeds from the sale provided approximately $10.5 million of cash to the Company and also reduced the Company’s indebtedness by approximately $40.0 million.

 

Revenue of $14.3 million compared to $32.1 million sequentially from second quarter 2023, and from $41.1 million year-over-year from third quarter 2022.

 

Gross margin of 36.7% compared to 21.0% in the second quarter 2023 and 39.8% in third quarter 2022. Excluding an inventory impairment charge of $7.2 million in second quarter 2023, the adjusted gross margin for the second quarter 2023 was 43.4% (non-GAAP measure).

 

Total operating expenses of $16.1 million compared to $27.5 million in second quarter 2023, and $33.1 million for third quarter 2022. Total operating expenses for the second quarter 2023, included a $3.0 million restructuring provision, primarily related to headcount reductions.

 

Net income of $9.9 million, compared to a net loss of $33.6 million in second quarter 2023, and a net loss of $23.3 million for third quarter 2022. For the third quarter 2023, net income includes a $28.6 million gain on sale of the Company’s Mimosa subsidiary. For the second quarter 2023, excluding the inventory impairment charge of $7.2 million and the restructuring provision of $3.0 million, the adjusted net loss would have been $23.4 million (non-GAAP measure).

 

 

 

 

Adjusted EBITDA (non-GAAP measure) was a loss of $7.9 million compared to a loss of $15.2 million in second quarter 2023 and a loss of $10.0 million in third quarter 2022. For the second quarter 2023, excluding the inventory impairment of $7.2 million, the adjusted EBITDA would have been a loss of $8.0 million.

 

Basic income per share was 13 cents, compared to a loss per share of 45 cents in the second quarter 2023 and a loss per share of 32 cents in the third quarter 2022.

 

About Airspan

 

Airspan Networks Holdings Inc. (NYSE American: MIMO) is a U.S.-based provider of groundbreaking, disruptive software and hardware for 5G networks, and a pioneer in end-to-end Open RAN solutions that provide interoperability with other vendors. As a result of innovative technology and significant R&D investments to build and expand 5G solutions, Airspan believes it is well-positioned with 5G indoor and outdoor, Open RAN, private networks for enterprise customers and industrial use applications, Air To Ground, and CBRS solutions to help mobile network operators of all sizes deploy their networks of the future, today. With over one million cells shipped to 1,000 customers in more than 100 countries, Airspan has global scale. For more information, visit www.airspan.com.

 

Non-GAAP Measures

 

This news release references non-GAAP measures. Non-GAAP measures do not have a standardized meaning and are, therefore, unlikely to be comparable to similar measures presented by other companies. We reference these non-GAAP financial measures in our decision making because they provide supplemental information that facilitates consistent internal comparisons to the historical operating performance of prior periods and we believe they provide investors with greater transparency to evaluate operational activities and financial results. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation of, or as a substitute for, the financial information prepared and presented in accordance with US generally accepted accounting principles. Non-GAAP financial measures referred to in this report are labeled as “non-GAAP measure.”

 

2

 

 

AIRSPAN NETWORKS HOLDINGS INC.

UNAUDITED CONDENSED consolidated BALANCE SHEETS

(in thousands, except for share data)

 

   September 30,
2023
   December 31,
2022
 
ASSETS          
Current assets:          
Cash and cash equivalents  $8,173   $7,253 
Restricted cash   13    34 
Accounts receivable, net of allowance of $692 and $647 at September 30, 2023 and December 31, 2022, respectively   11,066    46,565 
Inventory   10,197    18,556 
Prepaid expenses and other current assets   18,343    17,289 
Total current assets   47,792    89,697 
Property, plant and equipment, net   5,019    7,351 
Goodwill   -    13,641 
Intangible assets, net   -    5,302 
Right-of-use assets, net   3,193    5,697 
Other non-current assets   2,961    3,407 
Total assets  $58,965   $125,095 
           
LIABILITIES AND STOCKHOLDERS’ DEFICIT          
Current liabilities:          
Accounts payable  $11,081   $26,173 
Accrued expenses and other current liabilities   29,406    32,243 
Deferred revenue   2,415    2,892 
Senior term loan   41,545    40,529 
Subordinated debt   11,540    11,119 
Subordinated term loan – related party   44,386    41,528 
Convertible debt   31,706    43,928 
Current portion of long-term debt   257    259 
Total current liabilities   172,336    198,671 
Other long-term liabilities   4,409    7,223 
Total liabilities   176,745    205,894 
           
Commitments and contingencies (Note 13)          
           
Stockholders’ deficit:          
Common stock, $0.0001 par value; 250,000,000 shares authorized; 74,638,893 and 74,283,026 shares issued and outstanding at both September 30, 2023 and December 31, 2022   7    7 
Additional paid-in capital   778,054    770,427 
Accumulated deficit   (895,841)   (851,233)
Total stockholders’ deficit   (117,780)   (80,799)
Total liabilities and stockholders’ deficit  $58,965   $125,095 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

3

 

 

AIRSPAN NETWORKS HOLDINGS INC.

UNAUDITED CONDENSED consolidated STATEMENTS OF OPERATIONS

 

   Three Months Ended
September 30,
   Nine Months Ended
September 30,
 
   2023   2022   2023   2022 
Revenues:                    
Products and software licenses  $11,335   $36,521   $61,120   $114,128 
Maintenance, warranty and services   2,924    4,573    10,035    11,475 
Total revenues   14,259    41,094    71,155    125,603 
                     
Cost of revenues:                    
Products and software licenses   8,153    23,462    45,443    74,747 
Maintenance, warranty and services   875    1,296    3,401    3,623 
Total cost of revenues   9,028    24,758    48,844    78,370 
Gross profit   5,231    16,336    22,311    47,233 
                     
Operating expenses:                    
Research and development   9,294    15,003    36,901    48,244 
Sales and marketing   4,896    7,219    15,888    25,559 
General and administrative   1,932    9,644    15,343    31,891 
Amortization of intangibles   -    284    189    852 
Restructuring costs   -    944    3,283    944 
Total operating expenses   16,122    33,094    71,604    107,490 
                     
Loss from operations   (10,891)   (16,758)   (49,293)   (60,257)
                     
Interest expense, net   (9,944)   (4,296)   (19,631)   (13,071)
Loss on extinguishment of debt   -    -    (8,281)   - 
Change in fair value of warrant liability and derivatives, net   1,913    (920)   3,143    3,016 
Gain on sale of Mimosa business   28,631    -    28,631    - 
Other income (expense), net   122    (1,177)   530    (3,809)
                     
Income (loss) before income taxes   9,831    (23,151)   (44,901)   (74,121)
                     
Income tax benefit (expense), net   57    (163)   293    52 
                     
Net income (loss)  $9,888   $(23,314)  $(44,608)  $(74,069)
                     
Income (loss) per share - basic  $0.13   $(0.32)  $(0.60)  $(1.02)
Income (loss) per share - diluted  $0.12   $(0.32)  $(0.60)  $(1.02)
                     
Weighted average shares outstanding - basic   74,605,474    72,572,138    74,554,552    72,415,546 
Weighted average shares outstanding - diluted   80,141,678    72,572,138    74,554,552    72,415,546 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

4

 

 

AIRSPAN NETWORKS HOLDINGS INC.

UNAUDITED CONDENSED consolidated STATEMENTS OF CASH FLOWS

 

  

Nine Months Ended

September 30,

 
   2023   2022 
Cash flows from operating activities:          
Net loss  $(44,608)  $(74,069)
Adjustments to reconcile net loss to net cash used in operating activities:          
Depreciation and amortization   2,507    3,448 
Foreign exchange gain on long-term debt   (2)   (33)
Bad debt expense   360    170 
Change in fair value of warrants and derivatives, net   (3,143)   (3,016)
Loss on extinguishment of debt   8,281    - 
Non-cash debt amendment fee   -    463 
Inventory impairment charge   7,215    - 
Gain on sale of Mimosa business   (28,631)   - 
Share-based compensation   6,044    19,399 
Total adjustments   (7,369)   20,431 
Changes in operating assets and liabilities:          
Decrease in accounts receivable   18,755    15,615 
(Increase) decrease in inventory   (968)   1,596 
(Increase) decrease in prepaid expenses and other current assets   (1,292)   1,571 
Decrease in other non-current assets   335    555 
Decrease in accounts payable   (2,188)   (3,895)
(Decrease) increase in deferred revenue   (250)   651 
(Decrease) increase in accrued expenses and other current liabilities   (2,453)   7,498 
Increase (decrease) in other long-term liabilities   1,499    (7,738)
Increase in accrued interest on long-term debt   9,165    8,160 
Net cash used in operating activities   (29,374)   (29,625)
           
Cash flows from investing activities:          
Purchase of property, plant and equipment   (1,125)   (2,156)
Proceeds from sale of Mimosa business   55,188    - 
Net cash provided by (used in) investing activities   54,063    (2,156)
           
Cash flows from financing activities:          
Borrowings from senior term loan   20,000    - 
Repayment of senior term loan   (24,930)   (3,960)
Repayment of convertible note   (16,783)   - 
Payment of debt issuance costs   (1,916)   - 
Payment of taxes withheld on stock awards   (161)   (73)
Net cash used in financing activities   (23,790)   (4,033)
           
Net increase (decrease) in cash, cash equivalents and restricted cash   899    (35,814)
Cash, cash equivalents and restricted cash, beginning of year   7,287    63,122 
Cash, cash equivalents and restricted cash, end of period  $8,186   $27,308 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

5

 

 

The following tables present the reconciliation of net income (loss), the most directly comparable GAAP measure, to Adjusted EBITDA:

 

   Three Months Ended 
($ in thousands)  Sept. 30,
2023
   June 30,
2023
 
Net income (loss)  $9,888   $(33,607)
           
Adjusted for:          
Interest expense, net   9,944    5,153 
Income tax benefit, net   (57)   (154)
Depreciation and amortization   735    720 
EBITDA   20,510    (27,888)
Share-based compensation expense   2,107    1,998 
Change in fair value of warrant liability and derivatives   (1,913)   (588)
Loss on extinguishment of debt   -    8,281 
Gain on sale of Mimosa   (28,631)   - 
Restructuring costs   -    3,023 
Adjusted EBITDA  $(7,927)  $(15,174)
Inventory impairment charge   -    7,215 
Adjusted EBITDA excluding inventory impairment charge  $(7,927)  $(7,959)

 

   Three Months Ended
September 30,
 
($ in thousands)  2023   2022 
Net income (loss)  $9,888   $(23,314)
           
Adjusted for:          
Interest expense, net   9,944    4,296 
Income tax (benefit) expense, net   (57)   163 
Depreciation and amortization   735    1,173 
EBITDA   20,510    (17,682)
Share-based compensation expense   2,107    5,863 
Change in fair value of warrant liability and derivatives   (1,913)   920 
Loss on extinguishment of debt   -    - 
Gain on sale of Mimosa   (28,631)   - 
Restructuring costs   -    944 
Adjusted EBITDA  $(7,927)  $(9,955)

 

The following table presents the reconciliation of gross margin to Adjusted gross margin:

 

($ in thousands)  Three Months Ended
June 30,
 
   2023   % 
         
Revenue  $32,123    100.0 
Cost of revenue   25,390    79.0 
Gross margin   6,733    21.0 
Inventory provision   7,215    22.4 
Adjusted gross margin  $13,948    43.4 

 

The following table presents the reconciliation of net loss, the most directly comparable GAAP measure, to Adjusted net loss:

 

   Three Months Ended 
($ in thousands)  June 30,
2023
 
Net loss  $(33,607)
Adjusted for:     
Restructuring costs   3,023 
Inventory impairment charge   7,215 
Adjusted net loss  $(23,369)

 

6

 

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Nov. 08, 2023
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Document Period End Date Nov. 08, 2023
Entity File Number 001-39679
Entity Registrant Name Airspan Networks Holdings Inc.
Entity Central Index Key 0001823882
Entity Tax Identification Number 85-2642786
Entity Incorporation, State or Country Code DE
Entity Address, Address Line One 777 Yamato Road
Entity Address, Address Line Two Suite 310
Entity Address, City or Town Boca Raton
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Title of 12(b) Security Common stock, par value $0.0001 per share
Trading Symbol MIMO
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Entity Emerging Growth Company true
Elected Not To Use the Extended Transition Period false

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