2024 Q2 Form 10-Q Financial Statement

#000141057824000898 Filed on May 15, 2024

View on sec.gov

Income Statement

Concept 2024 Q2 2024 Q1 2023 Q1
Revenue $2.125M $2.275M $0.00
YoY Change
Cost Of Revenue $538.0K $1.404M
YoY Change
Gross Profit $1.587M $871.0K
YoY Change
Gross Profit Margin 74.68% 38.29%
Selling, General & Admin $2.810M $3.163M $3.511M
YoY Change 25.11% -9.91%
% of Gross Profit 177.06% 363.15%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $298.0K $273.0K $180.0K
YoY Change 34.84% 51.67%
% of Gross Profit 18.78% 31.34%
Operating Expenses $2.810M $3.163M $520.2K
YoY Change 549.97% 508.05% 128.98%
Operating Profit -$4.847M -$2.565M -$520.2K
YoY Change 1021.12% 393.09% 128.98%
Interest Expense -$51.00K -$450.0K $1.284M
YoY Change -88.13% -135.05% 3087.79%
% of Operating Profit
Other Income/Expense, Net -$978.0K -$876.0K $1.284M
YoY Change 127.64% -168.22% 3087.63%
Pretax Income -$6.381M -$3.891M $763.9K
YoY Change 640.29% -609.39% -508.72%
Income Tax $12.00K $31.00K $258.7K
% Of Pretax Income 33.86%
Net Earnings -$6.393M -$3.922M $505.2K
YoY Change 566.48% -876.34% -370.31%
Net Earnings / Revenue -300.85% -172.4%
Basic Earnings Per Share -$0.47 -$0.33 -$5.65
Diluted Earnings Per Share -$0.47 -$0.33 $0.03
COMMON SHARES
Basic Shares Outstanding 13.75M 11.96M 15.05M
Diluted Shares Outstanding 13.68M 11.97M 514.9K

Balance Sheet

Concept 2024 Q2 2024 Q1 2023 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $234.0K $491.0K $13.98K
YoY Change -8.4% 3412.16% -97.94%
Cash & Equivalents $234.0K $491.0K $13.98K
Short-Term Investments
Other Short-Term Assets $1.351M $1.824M $29.04K
YoY Change 3953.41% 6180.99% -93.2%
Inventory $6.323M $5.564M
Prepaid Expenses $359.0K $592.0K $29.04K
Receivables $1.037M $677.0K
Other Receivables $39.00K $39.00K
Total Short-Term Assets $8.996M $9.093M $43.02K
YoY Change 3015.2% 21037.66% -96.12%
LONG-TERM ASSETS
Property, Plant & Equipment $3.625M $3.383M
YoY Change
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments $119.9M
YoY Change 2.16%
Other Assets $3.000K $3.000K
YoY Change
Total Long-Term Assets $7.414M $5.020M $119.9M
YoY Change -56.99% -95.81% 2.15%
TOTAL ASSETS
Total Short-Term Assets $8.996M $9.093M $43.02K
Total Long-Term Assets $7.414M $5.020M $119.9M
Total Assets $16.41M $14.11M $119.9M
YoY Change -6.37% -88.23% 1.23%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.129M $4.217M
YoY Change
Accrued Expenses $9.046M $2.257M $350.7K
YoY Change 3591.94% 543.55% 231.8%
Deferred Revenue $775.0K $916.0K
YoY Change
Short-Term Debt $642.0K $612.0K $35.36K
YoY Change 87.8% 1630.77% 75.4%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $14.57M $10.75M $850.4K
YoY Change 748.95% 1164.29% 575.7%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $1.695M $0.00
YoY Change
Other Long-Term Liabilities $238.0K $258.0K
YoY Change
Total Long-Term Liabilities $238.0K $1.953M $0.00
YoY Change
TOTAL LIABILITIES
Total Short-Term Liabilities $14.57M $10.75M $850.4K
Total Long-Term Liabilities $238.0K $1.953M $0.00
Total Liabilities $14.86M $12.75M $850.4K
YoY Change 765.68% 1399.46% 575.73%
SHAREHOLDERS EQUITY
Retained Earnings -$43.45M -$37.05M -$347.9K
YoY Change 3164.07% 10551.91% -42.11%
Common Stock $1.000K $1.000K $356.00
YoY Change 180.9% 180.9% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.552M $1.361M -$347.5K
YoY Change
Total Liabilities & Shareholders Equity $16.41M $14.11M $119.9M
YoY Change -6.37% -88.23% 1.23%

Cashflow Statement

Concept 2024 Q2 2024 Q1 2023 Q1
OPERATING ACTIVITIES
Net Income -$6.393M -$3.922M $505.2K
YoY Change 566.48% -876.34% -370.31%
Depreciation, Depletion And Amortization $298.0K $273.0K $180.0K
YoY Change 34.84% 51.67%
Cash From Operating Activities -$303.0K $492.0K -$347.7K
YoY Change -68.87% -241.51% 38.4%
INVESTING ACTIVITIES
Capital Expenditures $541.0K $571.0K
YoY Change
Acquisitions
YoY Change
Other Investing Activities $139.4K
YoY Change
Cash From Investing Activities -$541.0K -$571.0K $139.4K
YoY Change -100.52% -509.65%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 587.0K -585.0K 350.0K
YoY Change -100.58% -267.14%
NET CHANGE
Cash From Operating Activities -303.0K 492.0K -347.7K
Cash From Investing Activities -541.0K -571.0K 139.4K
Cash From Financing Activities 587.0K -585.0K 350.0K
Net Change In Cash -257.0K -664.0K -208.3K
YoY Change -206.44% 218.79% -17.08%
FREE CASH FLOW
Cash From Operating Activities -$303.0K $492.0K -$347.7K
Capital Expenditures $541.0K $571.0K
Free Cash Flow -$844.0K -$79.00K
YoY Change

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CY2024Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
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CY2024Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
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CY2023Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents
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CY2024Q1 us-gaap Interest Paid Net
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CY2023Q1 us-gaap Income Taxes Paid Net
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CY2024Q1 us-gaap Stock Issued1
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CY2024Q1 msai Proceeds From Issue Or Sale Of Non Cash Investing And Financing Transaction Shares
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CY2024Q1 us-gaap Nature Of Operations
NatureOfOperations
<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-weight:bold;margin:0pt 0pt 12pt 0pt;">Note 1 — Organization and Business Operations</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">MultiSensor AI Holdings, Inc. (“MSAI”, “the Company”, “we” or “our”) and its wholly owned subsidiaries manufacture and distribute multi-sensor systems (hardware and software) for thermographic and other use in a variety of industrial applications. The Company also provides on-prem and cloud-based software and services, including training, calibration, and repairs for its customers. The Company’s customers operate in the distribution and logistics, manufacturing, utility and oil and gas sectors.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">The Company is domiciled in Delaware and is a C corporation for tax purposes.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt 0pt 12pt 0pt;"><span style="text-decoration-color:#000000;text-decoration-line:underline;text-decoration-style:solid;">Business Prior to the Business Combination</span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">Prior to the Business Combination, the Company as a corporate entity was SportsMap Tech Acquisition Corp. (“Legacy SMAP”), and the Company’s sponsor was SportsMap, LLC (the “Sponsor”). The registration statement for Legacy SMAP’s initial public offering (“IPO”) was declared effective on October 18, 2021 (the “Effective Date”). On October 21, 2021, Legacy SMAP consummated the IPO of 11,500,000 units (the “Units” and, with respect to the Common stock included in the Units being offered, the “public shares”) at $10.00 per Unit, including the full exercise of the underwriters’ over-allotment of 1,500,000 units, generating gross proceeds to Legacy SMAP of $115,000.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">Simultaneously with the consummation of the IPO, Legacy SMAP consummated the private placement of 675,000 Units at a price of $10.00 per Unit to the Sponsor and the representative of the underwriters and/or certain of their designees or affiliates, generating gross proceeds to Legacy SMAP of $6,750.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">Transaction costs for Legacy SMAP’s IPO amounted to $2,823, consisting of $2,300 of underwriting commissions and $523 of other offering costs. Of these transaction costs, $2,687 was charged to temporary equity and $137 was charged to additional paid-in capital. All activity for the period from October 21, 2021 (inception) through December 18, 2023, was related to the Company’s formation and IPO, the closing of the IPO, identifying a target company for an initial business combination, and consummating the Business Combination (described below). Legacy SMAP generated non-operating income in the form of interest income on cash and cash equivalents from the proceeds derived from the IPO.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt 0pt 12pt 0pt;"><span style="text-decoration-color:#000000;text-decoration-line:underline;text-decoration-style:solid;">Business Combination Agreement </span></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">On December 19, 2023, Legacy SMAP, through its subsidiary ICH Merger Sub Inc. (“Merger Sub”), and Infrared Cameras Holdings Inc (“Legacy ICI”), all of them Delaware corporations, consummated the closing of the transactions contemplated by the Business Combination Agreement, initially entered on December 5, 2022, by and among Legacy SMAP, Legacy ICI, and Merger Sub (the “Business Combination”).</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">Pursuant to the terms of the Business Combination Agreement, a merger of Legacy SMAP and Legacy ICI was effected by the merger of Merger Sub with and into Legacy ICI, with Legacy ICI surviving the Merger as a wholly-owned subsidiary of Legacy SMAP. As a result of the consummation of the Business Combination, Legacy SMAP changed its name from “SportsMap Tech Acquisition Corp.” to “Infrared Cameras Holdings, Inc.” (“ICI”). In February 2024, ICI changed its name to “MultiSensor AI Holdings, Inc.”</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:36pt;margin:0pt;">Pursuant to the Business Combination Agreement, at the effective time of the Business Combination, (i) each outstanding share of Legacy ICI common stock was converted into the right to receive a number of shares of Company common stock equal to the Exchange Ratio (as defined below), and (ii) each Legacy ICI option, restricted stock unit, restricted stock award that was outstanding immediately prior to the closing of the Business Combination (and by its terms did not terminate upon the closing of the Business Combination) remained outstanding and (x) in the case of options, represented the right to purchase a number of shares of Company common stock equal to the number of shares of Legacy ICI’s common stock subject to such option multiplied by the Exchange Ratio used for Legacy ICI common stock (rounded down to the nearest whole share) at an exercise price per share equal to the exercise price per share for such option divided by the Exchange Ratio (rounded up to the nearest whole cent) and (y) in the case of restricted stock units and restricted stock awards, represented a number of shares of Company common stock equal to the number of shares of Legacy </p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;">ICI’s common stock subject to such restricted stock unit or restricted stock award multiplied by the Exchange Ratio (rounded down to the nearest whole share).</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">The Exchange Ratio was 10.2776 of a share of Company common stock per fully diluted share of Legacy ICI common stock.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">On December 19, 2023, the Company received $2,137 held in Legacy SMAP’s trust account net of redemptions. Transaction costs related to the issuance of the trust shares were $3,910.</p>
CY2024Q1 msai Percentage Of Coverage Count On Quarterly Basis Considered For Inventory Evaluation
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CY2024Q1 us-gaap Use Of Estimates
UseOfEstimates
<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-style:italic;font-weight:bold;margin:0pt 0pt 12pt 0pt;">Use of Estimates</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:36pt;margin:0pt;">The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts and disclosures of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are adjusted to reflect actual </p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;margin:0pt 0pt 12pt 0pt;">experience when necessary. Significant estimates reflected in these condensed consolidated financial statements include, but are not limited to revenue recognition, useful life of fixed assets, allowance for credit losses, warranty reserves, amortization of internal-use software, share-based compensation, estimation of contingencies and estimation of income taxes. The Company assesses estimates on an ongoing basis; however, actual results could materially differ from those estimates.</p>
CY2024Q1 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;font-style:italic;font-weight:bold;margin:0pt 0pt 12pt 0pt;"><b style="font-style:normal;font-weight:bold;">Customer Concentration</b></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">For the three months ended March 31, 2024, two customers accounted for 23% and 20% or $523 and $455 of total net revenue, which is recorded under the entity’s one operating segment.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-align:justify;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">For the year ended December 31, 2023, one customer accounted for 9% or $465 of total net revenue, which is recorded under the entity’s one operating segment.</p>
CY2024Q1 us-gaap Number Of Operating Segments
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CY2023 us-gaap Number Of Operating Segments
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CY2024Q1 us-gaap Number Of Operating Segments
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CY2024Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
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CY2024Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2023Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2023 msai Total Revenue Recognized From Both Beginning Balance And Current Period Increase In Contract Liability
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CY2023Q4 us-gaap Contract With Customer Liability
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CY2023Q4 us-gaap Contract With Customer Liability
ContractWithCustomerLiability
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CY2024Q1 msai Total Revenue Recognized From Both Beginning Balance And Current Period Increase In Contract Liability
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CY2024Q1 us-gaap Contract With Customer Liability
ContractWithCustomerLiability
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CY2024Q1 us-gaap Contract With Customer Liability Noncurrent
ContractWithCustomerLiabilityNoncurrent
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CY2024Q1 msai Infrared Cameras Current
InfraredCamerasCurrent
4334000
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InfraredCamerasCurrent
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CY2024Q1 msai Replacement Maintenance And Spare Parts Current
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CY2023Q4 msai Replacement Maintenance And Spare Parts Current
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InfraredCamerasNonCurrent
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CY2024Q1 msai Replacement Maintenance And Spare Parts Non Current
ReplacementMaintenanceAndSparePartsNonCurrent
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CY2023Q4 msai Replacement Maintenance And Spare Parts Non Current
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CY2024Q1 us-gaap Inventory Noncurrent
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CY2023Q4 us-gaap Property Plant And Equipment Gross
PropertyPlantAndEquipmentGross
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CY2024Q1 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
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CY2023Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
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CY2024Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
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CY2023Q4 us-gaap Property Plant And Equipment Net
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CY2024Q1 us-gaap Depreciation
Depreciation
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CY2023Q1 us-gaap Depreciation
Depreciation
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CY2024Q1 us-gaap Employee Related Liabilities Current
EmployeeRelatedLiabilitiesCurrent
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CY2023Q4 us-gaap Employee Related Liabilities Current
EmployeeRelatedLiabilitiesCurrent
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CY2024Q1 us-gaap Interest Payable Current
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CY2023Q4 us-gaap Interest Payable Current
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CY2024Q1 us-gaap Other Accrued Liabilities Current
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CY2023Q4 us-gaap Other Accrued Liabilities Current
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CY2024Q1 us-gaap Accrued Liabilities Current
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CY2023Q4 us-gaap Accrued Liabilities Current
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CY2023 us-gaap Repayments Of Lines Of Credit
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CY2024Q1 us-gaap Long Term Debt Maturities Repayments Of Principal Remainder Of Fiscal Year
LongTermDebtMaturitiesRepaymentsOfPrincipalRemainderOfFiscalYear
612000
CY2024Q1 us-gaap Long Term Debt Maturities Repayments Of Principal In Next Twelve Months
LongTermDebtMaturitiesRepaymentsOfPrincipalInNextTwelveMonths
0
CY2024Q1 us-gaap Long Term Debt Maturities Repayments Of Principal In Year Two
LongTermDebtMaturitiesRepaymentsOfPrincipalInYearTwo
2170000
CY2024Q1 us-gaap Long Term Debt
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CY2023Q4 us-gaap Common Stock Shares Authorized
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CY2023Q4 us-gaap Preferred Stock Shares Authorized
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CY2024Q1 us-gaap Common Stock Shares Issued
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CY2023Q4 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
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CY2024Q1 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0
CY2023Q4 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
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CY2024Q1 us-gaap Net Income Loss
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-3922000
CY2023Q1 us-gaap Net Income Loss
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CY2024Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
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CY2023Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2024Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2023Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2024Q1 us-gaap Earnings Per Share Basic
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CY2023Q1 us-gaap Earnings Per Share Basic
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CY2024Q1 us-gaap Earnings Per Share Diluted
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CY2023Q1 us-gaap Earnings Per Share Diluted
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CY2024Q1 msai Percentage Of Shares Issued Under Award Of Fully Diluted Shares As Of Business Combination
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CY2023Q1 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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CY2024Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period
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CY2024Q1 us-gaap Operating Lease Right Of Use Asset
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CY2023Q1 us-gaap Operating Lease Right Of Use Asset
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CY2023Q1 us-gaap Operating Lease Liability Current
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CY2024Q1 us-gaap Operating Lease Cost
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CY2023Q1 us-gaap Operating Lease Cost
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CY2024Q1 us-gaap Short Term Lease Cost
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CY2023Q1 us-gaap Short Term Lease Cost
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CY2024Q1 us-gaap Operating Lease Weighted Average Remaining Lease Term1
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P0Y8M4D
CY2023Q1 us-gaap Operating Lease Weighted Average Remaining Lease Term1
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P0Y10M9D
CY2024Q1 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
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CY2023Q1 us-gaap Operating Lease Weighted Average Discount Rate Percent
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CY2024Q1 us-gaap Lessee Operating Lease Liability Payments Remainder Of Fiscal Year
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CY2024Q1 us-gaap Lessee Operating Lease Liability Payments Due
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CY2024Q1 us-gaap Lessee Operating Lease Liability Undiscounted Excess Amount
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CY2024Q1 us-gaap Operating Lease Liability
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CY2024Q1 us-gaap Income Tax Expense Benefit
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31000
CY2023Q1 us-gaap Income Tax Expense Benefit
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CY2024Q1 us-gaap Effective Income Tax Rate Continuing Operations
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CY2023Q1 us-gaap Effective Income Tax Rate Continuing Operations
EffectiveIncomeTaxRateContinuingOperations
-0.0797
CY2023Q1 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
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CY2024Q1 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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CY2024Q1 ecd Rule10b51 Arr Adopted Flag
Rule10b51ArrAdoptedFlag
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CY2024Q1 ecd Non Rule10b51 Arr Adopted Flag
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CY2024Q1 ecd Rule10b51 Arr Trmntd Flag
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CY2024Q1 ecd Non Rule10b51 Arr Trmntd Flag
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