AISPHIGH SIGNALFINANCIAL10-K

AISP shows significant financial stress with revenue declining 34% while burning more cash operationally, though the balance sheet improved through substantial debt reduction.

The company faces a challenging operating environment with meaningful revenue contraction and worsening cash burn, suggesting potential market headwinds or execution issues. However, the dramatic improvement in stockholders' equity and total liabilities indicates successful debt restructuring or refinancing activities that have strengthened the balance sheet foundation.

Comparing 2026-02-17 vs 2025-02-28View on EDGAR →
FINANCIAL ANALYSIS

AISP experienced mixed financial performance with revenue declining meaningfully to $15.3M and operating cash flow burn increasing to $8.0M, indicating operational challenges. However, the balance sheet strengthened considerably as stockholders' equity improved substantially from negative $53.0M to negative $7.1M and total liabilities decreased significantly to $26.6M, suggesting successful debt reduction or restructuring activities. The company also grew its current assets to $18.5M, providing improved liquidity despite the operational headwinds.

FINANCIAL STATEMENT CHANGES
Stockholders Equity
Balance Sheet
+86.5%
-$53.0M-$7.1M

Equity base grew 86.5% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Total Liabilities
Balance Sheet
-60.1%
$66.7M$26.6M

Liabilities reduced 60.1% — deleveraging improves balance sheet strength and financial flexibility.

Current Assets
Balance Sheet
+46.2%
$12.7M$18.5M

Current assets grew 46.2% — improving short-term liquidity or inventory/receivables build.

Total Assets
Balance Sheet
+42.1%
$13.7M$19.5M

Asset base grew 42.1% — expansion through organic growth, acquisitions, or capital deployment.

Revenue
P&L
-33.5%
$23.1M$15.3M

Revenue declined 33.5% — significant demand weakness or market share loss warrants investigation.

Gross Profit
P&L
-26.9%
$10.5M$7.7M

Gross margin compression — rising input costs, pricing pressure, or unfavorable product mix shift.

Operating Cash Flow
Cash Flow
-23.1%
-$6.5M-$8.0M

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

Current Liabilities
Balance Sheet
+11.1%
$5.7M$6.3M

Current liabilities rose 11.1% — increased short-term obligations, watch current ratio.

LANGUAGE CHANGES
NEW — 2026-02-17
PRIOR — 2025-02-28
ADDED
As of February 13, 2026, there were a total of 34,372,162 shares of the registrant s common stock issued and outstanding.
Since our inception and until the merger in December 2023, we have operated as a 100% employee-owned bootstrapped company with no outside investment, operating in a fiscally conservative model.
Our software is also designed to replace existing capabilities as well as augment and/or enhance existing capabilities, from sensors to IT infrastructure to analytics.
government has set aside $3.2 billion in discretionary resources for state and local grants and $30 billion in mandatory resources to support law enforcement, crime prevention, and violence intervention, based on The President s Budget for Fiscal Year 2023.
We believe our existing product market fit in the law enforcement vertical supported by our rapidly growing edge AI hardware and software offerings positions us well in this market.
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REMOVED
As of February 28, 2025, there were a total of 31,749,319 shares of the registrant s common stock issued and outstanding.
Our typical customer engagement is a multi-year contractual agreement, an agreement which includes our core offerings as well as professional services, technical support, and software maintenance, which we expect will result in predictable, long-term recurring revenue.
Our Solution Airship AI s platform today is used across multiple verticals and markets, including commercial and government, and small and enterprise.
government has set aside $3.2 billion in discretionary resources for state and local grants and $30 billion in mandatory resources to support law enforcement, crime prevention, and violence intervention, based on The President s Budget for Fiscal Year 2023 We believe our existing product market fit in the law enforcement vertical supported by our rapidly growing edge AI hardware and software offerings positions us well in this market.
Growth Strategy For 2025, we start with a pipeline of $137 million, consisting largely of U.S.
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