MOBIX LABS, INC Annual Report - How They Did This Year

Hey there! Thinking about investing in MOBIX LABS, INC? This guide is designed to give you the lowdown on how they've been doing, in plain English. We'll break down their past year so you can decide if they're a good fit for your investment goals.

We've got some interesting updates about what MOBIX LABS, INC has been up to this past year, especially regarding some big changes to the company itself and a couple of new additions to their family. Let's dive in!

1. What does this company do and how did they perform this year?

MOBIX LABS, INC had a very busy year with major structural changes and growth moves. The company as we know it today was formed through a merger (think of it like two companies joining forces) with Chavant Capital Acquisition Corp. This big event happened around December 21, 2023. Before this, the company was known as "Legacy Mobix."

On top of that, they made two important acquisitions (meaning they bought other companies):

• They acquired EMI Solutions Inc. on December 18, 2023.
• They acquired RaGE Systems Inc. on May 21, 2024.

These acquisitions are a big deal because they brought in valuable assets like existing customer relationships, developed technology, and future work (what's called "backlog"). This suggests a strategy to grow their capabilities and market reach.

2. Major wins and challenges this year

Major Wins:

• Successful Merger: Completing the merger with Chavant Capital Acquisition Corp. was a huge step, transforming "Legacy Mobix" into the publicly traded MOBIX LABS, INC. This typically provides access to more capital for growth.
• Strategic Acquisitions: Buying EMI Solutions Inc. and RaGE Systems Inc. are significant wins. These moves likely expanded their technology portfolio, customer base, and overall business potential. They specifically gained customer relationships, advanced technology, and future project commitments (backlog) from these deals.

Potential Challenges/Things to Watch:

• Complex Financial Structure: The merger and acquisitions involved a lot of moving parts, including different types of shares (Class A and B common stock, preferred stock), warrants (rights to buy stock later), and special agreements like "PIPE" (Private Investment in Public Equity) deals. There are also "earnout shares" and "make-whole shares" which are contingent on future performance or stock prices. This complexity means investors need to understand how these might affect the company's stock and ownership structure over time.
• Liabilities from Deals: The company has "Earnout Liability" and "PIPE Make-Whole Liability" on its books. These are financial obligations tied to the merger and acquisitions, which will need to be managed.

3. Key risks that could hurt the stock price

The complex financial structure, especially the "earnout shares" and "make-whole shares," could pose risks. If the company doesn't hit certain performance targets or if the stock price doesn't reach specific levels, these contingent shares could be issued, potentially diluting the value of existing shares (meaning your piece of the company becomes a smaller slice of a larger pie). The liabilities associated with these agreements also need careful monitoring.

4. Leadership or strategy changes

The merger itself represents a massive strategic shift, moving from "Legacy Mobix" to a new public entity. The acquisitions of EMI Solutions and RaGE Systems clearly show a strategy focused on expanding their technological capabilities and market presence.

5. Future outlook

The acquisitions suggest a clear growth strategy, aiming to leverage new technologies and customer bases.

This overview highlights MOBIX LABS, INC's significant structural changes and growth through acquisitions this past year. Understanding these moves, along with the associated financial complexities and potential risks, is key as you consider your investment options.