Airgain第二季銷售微增0.7% 淨虧損擴大至170.6萬美元

10-Q
 
 
 
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 

  
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 
FORM 10-Q
 
(Mark One)
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED June 30, 2026 
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM TO 
Commission file number: 001-37851
 
AIRGAIN, INC.
(Exact name of registrant as specified in its charter)
 

 
 
 
 
 
 

 
 Delaware

 

 95-4523882

 

 
 (State or Other Jurisdiction of Incorporation or Organization)

 

 (I.R.S. Employer Identification No.)

 

 
  

  

  

 

 
 3611 Valley Centre Drive, Suite 150
San Diego, CA

 

 92130

 

 
 (Address of Principal Executive Offices)

 

 (Zip Code)

 

 (760) 579-0200
(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, par value $0.0001 per share

 AIRG

 Nasdaq Capital Market

 

 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 registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

 
 
 
 

 
  

 

 As of July 29, 2026, the registrant had 13,100,234 shares of common stock (par value $0.0001) outstanding.
 

  

 
  

 AIRGAIN, INC.
Form 10-Q
For the Quarter Ended June 30, 2026
 
 
 

 
 
 
 
 

 
  

  

 

 
  

 Page

 

 
 PART I. FINANCIAL INFORMATION

  

 

 
 Item 1. Condensed Consolidated Financial Statements (Unaudited)

  

 

 
 Condensed Consolidated Balance Sheets

 3

 

 
 Condensed Consolidated Statements of Operations

 4

 

 
 Condensed Consolidated Statements of Comprehensive Loss

 5

 

 
 Condensed Consolidated Statements of Stockholders’ Equity

 6

 

 
 Condensed Consolidated Statements of Cash Flows 

 8

 

 
 Notes to Condensed Consolidated Financial Statements

 9

 

 
 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 18

 

 
 Item 3. Quantitative and Qualitative Disclosures about Market Risk

 26

 

 
 Item 4. Controls and Procedures

 26

 

 
  

  

 

 
  

  

 

 
 PART II. OTHER INFORMATION

 

 
 Item 1. Legal Proceedings

 28

 

 
 Item 1A. Risk Factors

 28

 

 
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 28

 

 
 Item 3. Defaults Upon Senior Securities

 28

 

 
 Item 4. Mine Safety Disclosures

 28

 

 
 Item 5. Other Information

 28

 

 
 Item 6. Exhibits

 29

 

 
  

  

 

 
 SIGNATURES

 30

 

  
 
 
 

  

 
  

 PART I. FINANCIAL INFORMATION
 
ITEM 1. FINANCIAL STATEMENTS
 
Airgain, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except par value)
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 June 30, 2026

  

  

 December 31, 2025

  

 

 
  

  

 (Unaudited)

  

  

  

  

 

 
 Assets

  

  

  

  

  

  

 

 
 Current assets:

  

  

  

  

  

  

 

 
 Cash and cash equivalents

  

 $

 7,611

  

  

 $

 7,358

  

 

 
 Trade accounts receivable, net

  

  

 14,463

  

  

  

 12,775

  

 

 
 Inventories

  

  

 4,187

  

  

  

 3,580

  

 

 
 Prepaid expenses

  

  

 884

  

  

  

 868

  

 

 
 Other current assets

  

  

 559

  

  

  

 1,177

  

 

 
 Total current assets

  

  

 27,704

  

  

  

 25,758

  

 

 
 Property and equipment, net

  

  

 1,470

  

  

  

 1,696

  

 

 
 Operating lease right-of-use assets

  

  

 3,932

  

  

  

 4,166

  

 

 
 Goodwill

  

  

 10,845

  

  

  

 10,845

  

 

 
 Intangible assets, net

  

  

 2,764

  

  

  

 2,787

  

 

 
 Other assets

  

  

 107

  

  

  

 85

  

 

 
 Total assets

  

 $

 46,822

  

  

 $

 45,337

  

 

 
 Liabilities and stockholders’ equity

  

  

  

  

  

  

 

 
 Current liabilities:

  

  

  

  

  

  

 

 
 Accounts payable

  

 $

 8,027

  

  

 $

 9,214

  

 

 
 Accrued compensation

  

  

 757

  

  

  

 1,157

  

 

 
 Accrued liabilities and other

  

  

 4,061

  

  

  

 1,790

  

 

 
 Short-term lease liabilities

  

  

 915

  

  

  

 821

  

 

 
 Total current liabilities

  

  

 13,760

  

  

  

 12,982

  

 

 
 Deferred tax liability

  

  

 189

  

  

  

 186

  

 

 
 Long-term lease liabilities

  

  

 3,559

  

  

  

 3,880

  

 

 
 Total liabilities

  

  

 17,508

  

  

  

 17,048

  

 

 
 Commitments and contingencies (Note 13)

  

  

  

  

  

  

 

 
 Stockholders’ equity:

  

  

  

  

  

  

 

 
 Common stock and additional paid-in capital, par value $0.0001, 200,000 shares authorized; 13,618 shares issued and 13,077 shares outstanding at June 30, 2026; and 12,666 shares issued and 12,125 shares outstanding at December 31, 2025.

  

  

 131,910

  

  

  

 127,292

  

 

 
 Treasury stock, at cost: 541 shares at June 30, 2026 and December 31, 2025.

  

  

 (5,364

 )

  

  

 (5,364

 )

 

 
 Accumulated deficit

  

  

 (97,238

 )

  

  

 (93,635

 )

 

 
 Accumulated other comprehensive income (loss)

  

  

 6

  

  

  

 (4

 )

 

 
 Total stockholders’ equity

  

  

 29,314

  

  

  

 28,289

  

 

 
 Total liabilities and stockholders’ equity

  

 $

 46,822

  

  

 $

 45,337

  

 

  

 The accompanying notes are an integral part of these condensed consolidated financial statements.
 
3

 
  

 Airgain, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Three months ended June 30,

  

  

 Six months ended June 30,

  

 

 
  

  

 2026

  

  

 2025

  

  

 2026

  

  

 2025

  

 

 
 Sales

  

 $

 13,698

  

  

 $

 13,623

  

  

 $

 25,209

  

  

 $

 25,636

  

 

 
 Cost of goods sold

  

  

 7,909

  

  

  

 7,784

  

  

 $

 14,447

  

  

  

 14,637

  

 

 
 Gross profit

  

  

 5,789

  

  

  

 5,839

  

  

  

 10,762

  

  

  

 10,999

  

 

 
 Operating expenses:

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Research and development

  

  

 2,881

  

  

  

 2,553

  

  

  

 5,130

  

  

  

 5,051

  

 

 
 Sales and marketing

  

  

 2,122

  

  

  

 2,419

  

  

  

 4,452

  

  

  

 4,883

  

 

 
 General and administrative

  

  

 2,471

  

  

  

 2,867

  

  

  

 4,978

  

  

  

 6,161

  

 

 
 Total operating expenses

  

  

 7,474

  

  

  

 7,839

  

  

  

 14,560

  

  

  

 16,095

  

 

 
 Loss from operations

  

  

 (1,685

 )

  

  

 (2,000

 )

  

  

 (3,798

 )

  

  

 (5,096

 )

 

 
 Other income (expense):

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Gain on business acquisition

  

  

 —

  

  

  

 —

  

  

 340

  

  

  

 —

  

 

 
 Employee retention credit refund

  

  

 —

  

  

  

 495

  

  

  

 —

  

  

  

 1,989

  

 

 
 Interest income, net

  

  

 14

  

  

  

 100

  

  

 32

  

  

  

 321

  

 

 
 Other expense, net

  

  

 (63

 )

  

  

 (56

 )

  

  

 (133

 )

  

  

 (197

 )

 

 
 Total other income (expense), net

  

  

 (49

 )

  

  

 539

  

  

  

 239

  

  

  

 2,113

  

 

 
 Loss before income taxes

  

  

 (1,734

 )

  

  

 (1,461

 )

  

  

 (3,559

 )

  

  

 (2,983

 )

 

 
 Income tax (benefit) expense

  

  

 (28

 )

  

  

 14

  

  

  

 44

  

  

  

 38

  

 

 
 Net loss

  

 $

 (1,706

 )

  

 $

 (1,475

 )

  

 $

 (3,603

 )

  

 $

 (3,021

 )

 

 
 Net loss per share:

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Basic

  

 $

 (0.13

 )

  

 $

 (0.12

 )

  

 $

 (0.29

 )

  

 $

 (0.26

 )

 

 
 Diluted

  

 $

 (0.13

 )

  

 $

 (0.12

 )

  

 $

 (0.29

 )

  

 $

 (0.26

 )

 

 
 Weighted average shares used in calculating loss per share:

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Basic

  

  

 12,841

  

  

  

 11,841

  

  

  

 12,576

  

  

  

 11,711

  

 

 
 Diluted

  

  

 12,841

  

  

  

 11,841

  

  

  

 12,576

  

  

  

 11,711

  

 

  

 The accompanying notes are an integral part of these condensed consolidated financial statements.
 
4

 
  

 Airgain, Inc.
Condensed Consolidated Statements of Comprehensive Loss
(In thousands) 
(Unaudited)
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Three months ended June 30,

  

  

 Six months ended June 30,

  

 

 
  

  

 2026

  

  

 2025

  

  

 2026

  

  

 2025

  

 

 
 Net loss

  

 $

 (1,706

 )

  

 $

 (1,475

 )

  

 $

 (3,603

 )

  

 $

 (3,021

 )

 

 
 Other comprehensive loss:

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Foreign currency translation adjustment

  

  

 6

  

  

  

 4

  

  

  

 10

  

  

  

 5

  

 

 
 Comprehensive loss

  

 $

 (1,700

 )

  

 $

 (1,471

 )

  

 $

 (3,593

 )

  

 $

 (3,016

 )

 

  

 The accompanying notes are an integral part of these condensed consolidated financial statements.
 
5

 
  

 Airgain, Inc.
Condensed Consolidated Statements of Stockholders’ Equity
(In thousands)
(Unaudited)
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Fiscal Quarters Ended June 30, 2026

  

 

 
  

  

 Common Stock And Additional Paid-In Capital

  

  

 Treasury Stock

  

  

  

  

  

  

  

  

  

  

 

 
  

  

 Shares

  

  

 Amount

  

  

 Shares

  

  

 Amount

  

  

 Accumulated Other Comprehensive (Loss) Income

  

  

 Accumulated
Deficit

  

  

 Total
Stockholders’ Equity

  

 

 
 Balance at December 31, 2025

  

  

 12,666

  

  

 $

 127,292

  

  

  

 (541

 )

  

 $

 (5,364

 )

  

 $

 (4

 )

  

 $

 (93,635

 )

  

 $

 28,289

  

 

 
 Net loss

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 (1,897

 )

  

  

 (1,897

 )

 

 
 Stock-based compensation

  

  

 —

  

  

  

 897

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 897

  

 

 
 Common stock issued through restricted stock awards

  

  

 323

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

 

 
 Common stock issued under ESPP

  

  

 20

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

 

 
 Common stock issued through stock options

  

  

 20

  

  

  

 94

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 94

  

 

 
 Foreign currency translation adjustments

  

  

  

  

  

  

  

  

 —

  

  

  

 —

  

  

  

 4

  

  

  

 —

  

  

  

 4

  

 

 
 Common stock issued in connection with at-the-market offerings, net

  

  

 171

  

  

  

 628

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 628

  

 

 
 Balance at March 31, 2026

  

  

 13,200

  

  

 $

 128,911

  

  

  

 (541

 )

  

 $

 (5,364

 )

  

 $

 -

  

  

 $

 (95,532

 )

  

 $

 28,015

  

 

 
 Net loss

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 (1,706

 )

  

  

 (1,706

 )

 

 
 Stock-based compensation

  

  

 —

  

  

  

 838

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 838

  

 

 
 Common stock issued through restricted stock awards

  

  

 48

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

 

 
 Common stock issued under ESPP

  

  

 —

  

  

  

 70

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 70

  

 

 
 Common stock issued through stock options

  

  

 228

  

  

  

 1,123

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 1,123

  

 

 
 Foreign currency translation adjustments

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 6

  

  

  

 —

  

  

  

 6

  

 

 
 Common stock issued in connection with at-the-market offerings, net

  

  

 142

  

  

  

 968

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 968

  

 

 
 Balance at June 30, 2026

  

  

 13,618

  

  

 $

 131,910

  

  

  

 (541

 )

  

 $

 (5,364

 )

  

 $

 6

  

  

 $

 (97,238

 )

  

 $

 29,314

  

 

  
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Fiscal Quarters Ended June 30, 2025

  

 

 
  

  

 Common Stock And Additional Paid-In Capital

  

  

 Treasury Stock

  

  

  

  

  

  

  

  

  

  

 

 
  

  

 Shares

  

  

 Amount

  

  

 Shares

  

  

 Amount

  

  

 Accumulated Other Comprehensive (Loss) Income

  

  

 Accumulated
Deficit

  

  

 Total
Stockholders’ Equity

  

 

 
 Balance at December 31, 2024

  

  

 12,070

  

  

 $

 123,546

  

  

  

 (541

 )

  

 $

 (5,364

 )

  

 $

 (4

 )

  

 $

 (87,209

 )

  

 $

 30,969

  

 

 
 Net loss

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 (1,546

 )

  

  

 (1,546

 )

 

 
 Stock-based compensation

  

  

 —

  

  

  

 945

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 945

  

 

 
 Common stock issued through restricted stock awards

  

  

 272

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

 

 
 Common stock withheld related to net share settlement of equity awards

  

  

 (44

 )

  

  

 (191

 )

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 (191

 )

 

 
 Common stock issued under ESPP

  

  

 25

  

  

  

 123

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 123

  

 

 
 Common stock issued through stock options

  

  

 12

  

  

  

 24

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 24

  

 

 
 Foreign currency translation adjustments

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 1

  

  

  

 —

  

  

  

 1

  

 

 
 Balance at March 31, 2025

  

  

 12,335

  

  

 $

 124,447

  

  

  

 (541

 )

  

 $

 (5,364

 )

  

 $

 (3

 )

  

 $

 (88,755

 )

  

 $

 30,325

  

 

 
 Net loss

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 (1,475

 )

  

  

 (1,475

 )

 

 
 Stock-based compensation

  

  

 —

  

  

  

 771

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 771

  

 

 
 Common stock issued through restricted stock awards

  

  

 11

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

 

 
 Common stock issued through stock options

  

  

 99

  

  

  

 161

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

  

  

  

 161

  

 

 
 Foreign currency translation adjustments

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 —

  

  

  

 4

  

  

  

  

  

  

 4

  

 

 
 Balance at June 30, 2025

  

  

 12,445

  

  

 $

 125,379

  

  

  

 (541

 )

  

 $

 (5,364

 )

  

 $

 1

  

  

 $

 (90,230

 )

  

 $

 29,786

  

 

 
  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 

  

 The accompanying notes are an integral part of these condensed consolidated financial statements.
 
6

 
  

  

 The accompanying notes are an integral part of these condensed consolidated financial statements.
 
7

 
  

 Airgain, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
 

 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Six months ended June 30,

  

 

 
  

  

 2026

  

  

 2025

  

 

 
 Cash flows from operating activities:

  

  

  

  

  

  

 

 
 Net loss

  

 $

 (3,603

 )

  

 $

 (3,021

 )

 

 
 Adjustments to reconcile net loss to net cash used in operating activities:

  

  

  

  

  

  

 

 
 Depreciation

  

  

 195

  

  

  

 236

  

 

 
 Loss on disposal of property and equipment

  

  

 122

  

  

  

 —

  

 

 
 Amortization of intangible assets

  

  

 451

  

  

  

 1,593

  

 

 
 Gain on business acquisition

  

  

 (340

 )

  

  

 —

  

 

 
 Stock-based compensation

  

  

 1,602

  

  

  

 1,510

  

 

 
 Deferred tax liability

  

  

 3

  

  

  

 3

  

 

 
 Changes in operating assets and liabilities:

  

  

  

  

  

  

 

 
 Trade accounts receivable

  

  

 (1,688

 )

  

  

 (155

 )

 

 
 Inventories

  

  

 (607

 )

  

  

 236

  

 

 
 Prepaid expenses and other current assets

  

  

 601

  

  

  

 365

  

 

 
 Other assets

  

  

 (109

 )

  

  

 (1

 )

 

 
 Accounts payable

  

  

 (1,187

 )

  

  

 (2,438

 )

 

 
 Accrued compensation

  

  

 (212

 )

  

  

 (688

 )

 

 
 Accrued liabilities and other

  

  

 2,215

  

  

  

 1,134

  

 

 
 Lease liabilities

  

  

 7

  

  

  

 330

  

 

 
 Net cash used in operating activities

  

  

 (2,550

 )

  

  

 (896

 )

 

 
 Cash flows from investing activities:

  

  

  

  

  

  

 

 
 Purchases of property and equipment

  

  

 (90

 )

  

  

 (58

 )

 

 
 Net cash used in investing activities

  

  

 (90

 )

  

  

 (58

 )

 

 
 Cash flows from financing activities:

  

  

  

  

  

  

 

 
 Proceeds from at-the-market common stock offering, net of offering costs

  

  

 1,596

  

  

  

 —

  

 

 
 Payments for withholding taxes related to net share settlement of equity awards

  

  

 —

  

  

  

 (191

 )

 

 
 Proceeds from employee stock purchase and option exercises

  

  

 1,287

  

  

  

 308

  

 

 
 Net cash provided by financing activities

  

  

 2,883

  

  

  

 117

  

 

 
  

  

  

  

  

  

  

 

 
 Effect of exchange rate changes on cash, cash equivalents and restricted cash

  

  

 10

  

  

  

 5

  

 

 
  

  

  

  

  

  

  

 

 
 Net increase (decrease) in cash, cash equivalents and restricted cash

  

  

 253

  

  

  

 (832

 )

 

 
 Cash, cash equivalents, and restricted cash; beginning of period

  

  

 7,413

  

  

  

 8,565

  

 

 
 Cash, cash equivalents, and restricted cash; end of period

  

 $

 7,666

  

  

 $

 7,733

  

 

 
 Supplemental disclosure of non-cash investing and financing activities:

  

  

  

  

  

  

 

 
 Operating lease liabilities resulting from right-of-use assets

  

 $

 137

  

  

 $

 519

  

 

 
 Cash, cash equivalents, and restricted cash:

  

  

  

  

  

  

 

 
 Cash and cash equivalents

  

 $

 7,611

  

  

 $

 7,678

  

 

 
 Restricted cash included in other assets

  

 $

 55

  

  

 $

 55

  

 

 
 Total cash, cash equivalents, and restricted cash

  

 $

 7,666

  

  

 $

 7,733

  

 

  

 The accompanying notes are an integral part of these condensed consolidated financial statements.
 
8

 
  

 Airgain, Inc.
Notes to Condensed Consolidated Financial Statements
(Unaudited)
 
Note 1. Description of Business and Basis of Presentation
Description of Business
Airgain, Inc. was incorporated in the State of California on March 20, 1995; and reincorporated in the State of Delaware on August 17, 2016. Airgain, Inc. together with its subsidiaries are herein referred to as the “Company,” “we,” or “our.” Headquartered in San Diego, California, Airgain, Inc. (NASDAQ: AIRG) is a leading provider of advanced wireless connectivity solutions that drive cutting-edge innovation in 5G technology. We are committed to delivering high-performance, cost-effective, and energy-efficient wireless solutions that enable rapid market deployment. Our mission is to connect the world through integrated, innovative, and optimized wireless solutions. Our diverse product portfolio serves three primary markets: enterprise, automotive, and consumer.

Basis of Presentation and Principles of Consolidation
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) and applicable rules and regulations of the Securities and Exchange Commission (SEC) regarding interim financial reporting. Certain information and note disclosures normally included in the consolidated financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Interim financial results are not necessarily indicative of results anticipated for the full year. As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, from which the balance sheet information herein was derived. The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and investments have been eliminated in consolidation.

Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Note 2. Summary of Significant Accounting Policies
During the six months ended June 30, 2026, there have been no material changes to the Company’s significant accounting policies as described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, except for the following:
Business Combinations
The Company applies the provisions of ASC 805, Business Combinations, in accounting for its acquisitions. It requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed, at the acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the acquisition date fair values of the net assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, as well as the contingent consideration, where applicable, its estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company records adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of operations.
In addition, uncertain tax positions and tax-related valuation allowances assumed, if any, in connection with a business combination are initially estimated as of the acquisition date. The Company re-evaluates these items quarterly based upon facts and circumstances that existed as of the acquisition date with any adjustments to the preliminary estimates being recorded to goodwill if identified within the measurement period. Subsequent to the end of the measurement period or final determination of the estimated value of the tax allowance or contingency, whichever comes first, changes to these 

 9

 
  

 uncertain tax positions and tax related valuation allowances will affect the income tax provision (benefit) in the consolidated statements of operations and could have a material impact on the results of operations and financial position. 

Recently Issued Accounting Pronouncements Not Yet Adopted
In November 2024, the FASB issued ASU No. 2024-03, "Expense Disaggregation Disclosures (Subtopic 220-40)." The ASU requires public entities to disaggregate, in a tabular presentation, certain relevant income statement expenses into different categories, such as purchases of inventory, employee compensation, depreciation, and intangible asset amortization in commonly presented expense captions such as cost of sales, selling, general and administrative expense, and research and development. The guidance is effective for all public business entities in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted, and may be applied retrospectively. The Company intends to adopt the amendments in this update. The impact of the adoption of the amendments in this update is not expected to be material to the Company’s consolidated financial position and results of operations, as the requirements only require more detailed disclosures in the footnotes to the Company’s consolidated financial statements.
In January 2025, the FASB issued ASU 2025-01 to revise the effective date of ASU 2024-03 on disclosures of disaggregation of income statement expense. This guidance clarifies that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. The Company intends to adopt the amendments in this update. The impact of the adoption of the amendments in this update is not expected to be material to the Company’s consolidated financial position and results of operations, as the requirements only require more detailed disclosures in the footnotes to the Company’s consolidated financial statements.
In July 2025, the FASB issued ASU 2025-05, Measurement of Credit Losses for Accounts Receivable and Contract Assets. The amendments provide a practical expedient that allows all entities to assume that conditions at the balance-sheet date will remain unchanged for an asset’s remaining life when estimating credit losses on current accounts receivable and current contract assets arising from transactions under ASC 606. Entities electing this expedient will therefore adjust historical loss experience only to reflect current conditions, without the need to incorporate forward‑looking forecasts. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted in both interim and annual reporting periods. The Company is currently evaluating the impact of adopting ASU 2025-05 and believes that the adoption will not have a material impact on the consolidated financial statements and related disclosures.
In September, 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software. The amendments in this update require an entity to begin capitalizing internal-use software costs when management has authorized and committed to funding the software project and it is probable that the project will be completed and the software will be used to perform the function intended. These amendments are effective for the Company for annual and interim periods in 2028, applied either prospectively, retrospectively, or by a modified approach, with early adoption permitted. As the Company does not currently have a material amount of software developed for internal use, the impact of the adoption of the amendments in this update is not expected to be material to the Company’s consolidated financial position and results of operations.
In December 2025, the FASB issued ASU No. 2025-11, "Interim Reporting (Topic 270): Narrow-Scope Improvements", which updates and clarifies certain interim reporting requirements in Accounting Standards Codification (ASC) 270, including interim disclosure guidance and the reporting of material events and changes occurring after the most recent annual reporting period. The guidance is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating the impact of this guidance on our consolidated financial statements and related disclosures.
In December 2025, the FASB issued ASU No. 2025-12, "Codification Improvements", which amends various topics in the FASB ASC to correct technical errors, clarify guidance, and make other narrow-scope improvements to generally accepted accounting principles. The amendments in ASU 2025-12 address multiple areas of the Codification and are not expected to materially change current accounting practices. The guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within those annual periods, with early adoption permitted. The Company is currently evaluating the impact of this guidance on our consolidated financial statements and related disclosures.

Note 3. Net Loss Per Share
Basic net loss per share is calculated by dividing net loss available to common stockholders by the weighted average shares of common stock outstanding for the period. Diluted net loss per share is calculated by dividing net loss by the 

 10

 
  

 weighted average shares of common stock outstanding for the period plus amounts representing the dilutive effect of securities that are convertible into common stock. The Company calculates diluted loss per common share using the treasury stock method.
The following table presents the computation of net loss per share (in thousands except per share data):
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Three months ended June 30,

  

  

 Six months ended June 30,

  

 

 
  

  

 2026

  

  

 2025

  

  

 2026

  

  

 2025

  

 

 
 Numerator:

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Net loss

  

 $

 (1,706

 )

  

 $

 (1,475

 )

  

 $

 (3,603

 )

  

 $

 (3,021

 )

 

 
 Denominator:

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Basic weighted average common shares outstanding

  

  

 12,841

  

  

  

 11,841

  

  

  

 12,576

  

  

  

 11,711

  

 

 
 Diluted weighted average common shares outstanding

  

  

 12,841

  

  

  

 11,841

  

  

  

 12,576

  

  

  

 11,711

  

 

 
 Net loss per share:

  

  

  

  

  

  

  

  

  

  

  

  

 

 
 Basic

  

 $

 (0.13

 )

  

 $

 (0.12

 )

  

 $

 (0.29

 )

  

 $

 (0.26

 )

 

 
 Diluted

  

 $

 (0.13

 )

  

 $

 (0.12

 )

  

 $

 (0.29

 )

  

 $

 (0.26

 )

 

 
Potentially dilutive securities (in common stock equivalent shares) not included in the calculation of diluted net loss per share because to do so would be anti-dilutive are as follows (in thousands):
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 Three months ended June 30,

  

  

 Six months ended June 30,

  

 

 
  

  

 2026

  

  

 2025

  

  

 2026

  

  

 2025

  

 

 
 Stock options, restricted stock and performance stock

  

  

 1,793

  

  

  

 2,969

  

  

  

 2,257

  

  

  

 2,305

  

 

 
 Common stock equivalent shares

  

  

 1,793

  

  

  

 2,969

  

  

  

 2,257

  

  

  

 2,305

  

 

 

 
Note 4. Cash and Cash Equivalents
The following tables show the Company’s cash and cash equivalents by significant investment category (in thousands):
 

 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 June 30, 2026

  

  

 December 31, 2025

  

 

 
 Cash

  

 $

 7,529

  

  

 $

 7,237

  

 

 
 Level 1:

  

  

  

  

  

  

 

 
 Money market funds

  

  

 82

  

  

  

 121

  

 

 
 Total cash and cash equivalents

  

 $

 7,611

  

  

 $

 7,358

  

 

 
At June 30, 2026, the fair value of the money market funds approximated its carrying amount.
Restricted Cash
As of June 30, 2026 and December 31, 2025, the Company had $55,000 in cash on deposit to secure certain lease commitments, which are restricted for more than twelve months and recorded in other assets in the Company’s condensed consolidated balance sheet.
The Company’s cash deposits exceeded the Federal Deposit Insurance Corporation’s insured limits. The Company has not experienced losses on these accounts. Most of the Company's cash deposits are held in multiple accounts at a large institutional bank.

 

 11

 
  

  
Note 5. Inventories
Inventories are comprised of the following (in thousands):
 

 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 June 30, 2026

  

  

 December 31, 2025

  

 

 
 Finished goods

  

 $

 3,629

  

  

 $

 3,134

  

 

 
 Raw materials

  

  

 558

  

  

  

 446

  

 

 
 Total inventories

  

 $

 4,187

  

  

 $

 3,580

  

 

 Consigned inventories, which are included in total inventories, are comprised of the following (in thousands):
 

 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 June 30, 2026

  

  

 December 31, 2025

  

 

 
 Finished goods

  

 $

 1,384

  

  

 $

 1,135

  

 

 
 Raw materials

  

  

 451

  

  

  

 150

  

 

 
 Total consigned inventories

  

 $

 1,835

  

  

 $

 1,285

  

 

 

 
Note 6. Property and Equipment
Depreciation and amortization of property and equipment is calculated on the straight-line method based on the shorter of the estimated useful life or the term of the lease for tenant improvements and three to ten years for all other property and equipment. Property and equipment consist of the following (in thousands):
 

 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 June 30, 2026

  

  

 December 31, 2025

  

 

 
 Manufacturing and testing equipment

  

 $

 4,569

  

  

 $

 5,630

  

 

 
 Leasehold improvements

  

  

 877

  

  

  

 848

  

 

 
 Computers and software

  

  

 557

  

  

  

 561

  

 

 
 Furniture, fixtures and equipment

  

  

 348

  

  

  

 400

  

 

 
 Vehicles

  

  

 55

  

  

  

 55

  

 

 
 Software development – internal use

  

  

 74

  

  

  

 74

  

 

 
 Construction in process

  

  

 68

  

  

  

 16

  

 

 
 Property and equipment, gross

  

  

 6,548

  

  

  

 7,584

  

 

 
 Less accumulated depreciation

  

  

 (5,078

 )

  

  

 (5,888

 )

 

 
 Property and equipment, net

  

 $

 1,470

  

  

 $

 1,696

  

 

 
Depreciation expense was $0.1 million and $0.2 million for the three and six months ended June 30, 2026 and 2025, respectively. Accumulated depreciation for the quarter included $1.0 million that was related to disposal of manufacturing and testing equipment and furniture, fixtures and equipment. 

 
Note 7. Intangible Assets and Goodwill
Other Intangible Assets
The following is a summary of the Company’s acquired other intangible assets (dollars in thousands):
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 June 30, 2026

  

 

 
  

  

 Weighted average amortization period (in years)

  

 Gross carrying amount

  

  

 Accumulated amortization

  

  

 Net carrying amount

  

 

 
 Market related intangibles

  

 5

  

 $

 1,850

  

  

 $

 (1,822

 )

  

 $

 28

  

 

 
 Customer relationships

  

 7

  

  

 14,040

  

  

  

 (13,661

 )

  

  

 379

  

 

 
 Developed technologies

  

 11

  

  

 4,430

  

  

  

 (2,509

 )

  

  

 1,921

  

 

 
 Covenants to non-compete

  

 2

  

  

 115

  

  

  

 (115

 )

  

  

 —

  

 

 
 Licensed technology

  

 3

  

  

 892

  

  

  

 (456

 )

  

  

 436

  

 

 
 Total intangible assets, net

  

  

  

 $

 21,327

  

  

 $

 (18,563

 )

  

 $

 2,764

  

 

  

 12

 
  

  

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
  

  

 December 31, 2025

  

 

 
  

  

 Weighted average amortization period (in years)

  

 Gross carrying amount

  

  

 Accumulated amortization

  

  

 Net carrying amount

  

 

 
 Market related intangibles

  

 5

  

 $

 1,820

  

  

 $

 (1,820

 )

  

 $

 —

  

 

 
 Customer relationships

  

 7

  

  

 13,780

  

  

  

 (13,558

 )

  

  

 222

  

 

 
 Developed technologies

  

 11

  

  

 4,380

  

  

  

 (2,327

 )

  

  

 2,053

  

 

 
 Covenants to non-compete

  

 2

  

  

 115

  

  

  

 (115

 )

  

  

 —

  

 

 
 Licensed technology

  

 3

  

  

 804

  

  

  

 (292

 )

  

  

 512

  

 

 
 Total intangible assets, net

  

  

  

 $

 20,899

  

  

 $