Guerrilla RF Announces Record Sales in 2021, as Product Sales

Guerrilla RF Announces Record Sales in 2021, as Product Sales Increase 63 Percent

Company Ends 2021 with Largest Purchase Order Backlog in History, as the Number of Tier-One and Tier-Two Customers Grows

GREENSBORO, N.C. — (BUSINESS WIRE) — March 30, 2022 — Guerrilla RF, Inc. (“Guerrilla RF” or the “Company”), a semiconductor company focused on high performance MMICs (monolithic microwave integrated circuits) for the wireless and infrastructure market, announced today financial results for the full year ended December 31, 2021.

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Guerrilla RF announces record sales in 2021 with product sales increasing by 63 percent. Company ended 2021 with its largest purchase order backlog in history, as the number of tier-one and tier-two customers grows. (Graphic: Business Wire)

The Company reported record total sales of $10.5 million in 2021, an increase of 30 percent as compared to $8.1 million in 2020. Product revenue in 2021 increased 63 percent to a record $9.8 million despite royalty revenue decreasing 69 percent to $652K as compared to $2.1 million in 2020. The decrease in royalty revenue was consistent with the Company’s plan to transition from a licensing model to a product sales model.

Product revenue to our automotive end users increased 82 percent in 2021 to a record $4 million. Repeater end user product revenue doubled to $2.2 million, while sales to our 5G infrastructure end users product revenue remained steady at $1.8 million. Our total direct product costs increased to $4.3 million in 2021; thus, our overall contribution margin on product revenue was 69.6 percent in 2021 ($9.8 million in product revenue divided by $4.3 million in direct product costs). Cash at December 31, 2021 was $5.3 million.

“Our plan to transition from a licensing model to a proprietary product model has been immensely successful,” said Ryan Pratt, founder and CEO at Guerrilla RF. “We believe that we’re a best-in-class MMIC provider in the fast-growing automotive vertical, and we see extraordinary opportunity to launch new and exciting cutting-edge products in 5G infrastructure.”

2021 Highlights:

Completed a go-public reverse merger in October 2021
Closed an $11.5 million private placement offering October and November 2021, which included the conversion of approximately $4.5 million of debt
Ended 2021 with the largest purchase order backlog in the Company’s history
Product revenue increased 63 percent finishing 2021 at $9.8 million
Contribution margin of product revenue at 69.6 percent for 2021
Continued investment in research and development with a focus on new products aimed at 5G network infrastructure
Over 30 million units delivered during 2021, versus 19 million in 2020
Introduced 14 new products to meet accelerating customer demand
Increased number of tier-one customers and tier-two customers

Guerrilla RF, Inc
Consolidated Statements of Operations

	Three Months Ended						Twelve Months Ended
	Dec 31, 2021			Dec 31, 2020			Dec 31, 2021			Dec 31, 2020
Product shipments	$	2,553,094		$	2,199,295		$	9,827,817		$	5,986,108
Royalties		181,793			202,612			652,082			2,103,282
Total		2,734,887			2,401,907			10,479,899			8,089,390

Direct product cost		1,201,556			997,068			4,340,292			2,911,120

Gross Profit		1,533,331			1,404,839			6,139,607			5,178,270

Operating Expenses:
Research and development		1,408,551			942,831			4,592,879			3,591,336
Sales and marketing		869,121			550,745			2,752,153			2,129,238
Administration		1,102,484			222,172			2,464,295			999,731
Total Operating Expenses		3,380,156			1,715,748			9,809,327			6,720,305

Operating Income (Loss)		(1,846,825	)		(310,909	)		(3,669,720	)		(1,542,035	)


Interest expense		(81,712	)		(136,814	)		(551,495	)		(469,684	)
Other income (expense)		14,960			-			1,384,060			-
Net loss	$	(1,913,577	)	$	(447,723	)	$	(2,837,155	)	$	(2,011,719	)

Guerrilla RF, Inc
Consolidated Balance Sheets
December 31, 2021 and 2020
	2021			2020
Assets
Cash	$	5,313,985		$	427,269
Accounts receivable, net		1,667,006			1,653,805
Inventories, net		1,439,014			993,633
Prepaid expense		1,187,418			100,447
Total Current Assets		9,607,423			3,175,154
Property, plant, and equipment, net		1,027,312			789,587
Total Assets	$	10,634,735		$	3,964,741

Liabilities and Stockholders' Equity (Deficit)
Short-term debt	$	5,117		$	1,297,611
Capital lease, current portion		118,420			59,990
Accounts payable and accrued expenses		1,186,443			781,433
Total Current Liabilities		1,309,980			2,139,034
Capital lease		264,347			258,439
PPP loan		-			90,046
Notes payable		144,783			4,602,516
Total Liabilities		1,719,110			7,090,035

Preferred stock, $.0001 par value, 10,000,000 shares authorized no shares issued and outstanding as of December 31, 2021; $.001 par value, 5,042,000 shares authorized 4,852,414 shares issued and outstanding as of December 31, 2020	$	-		$	4,852
Common stock, $.0001 par value, 300,000,000 shares authorized, 33,222,192 shares issued and outstanding as of December 31, 2021; $.001 par value, 8,484,000 shares authorized, 2,265,633 shares issued and outstanding as of December 31, 2020		3,322			2,261
Additional paid-in-capital		23,958,705			9,076,840
Accumulated deficit		(15,046,402	)		(12,209,247	)
Total Stockholders' Equity (Deficit)		8,915,625			(3,125,294	)
Total Liabilities and Stockholders' Equity (Deficit)	$	10,634,735		$	3,964,741

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