Analytics Provider Airship AI's Stock Price Plummets, Then Surges
Airship AI went public late last year and became a dollar stock soon afterward. Today, its stock price surged after it claimed that it secured a "large contract" with an unknown government agency.
Inside this report, IPVM examines what happened with Airship AI and what challenges and risks the company and its investors are facing.
For background on Airship AI's SPAC journey, please read: Airship Going Public At $290 Million Valuation
Executive *******
*** *** ********-****** ********* ******** ******* AI's ***** ********* **% ***** ***** it**** ****** *** **** ** ~$*** million **** ********, *** *** ***** ***** ****** today***** ** ********* * "*********** ****-****** contract***** ****** *** ********** ** ******* for ********* ********** ***** *** **** management ********" ** *:** ** **** morning ****** *** ****** *****. ** contract ****, **** ** *** ******* agency, ***** ** *** *******, ** any ***** ******** ******* **** **** disclosed ***** *** ****-****** ********. ******** to ******** *****, **** ******** ** atypical *** *****.
** *** *****, *** ***** *** at * ***% ******* ******** ** the *** ******. *******, *** ************ in ****** ****** **** ******* ** only **** ***** ***** ******* *******. The *******'* ****** ************** ** *** ~$116 *******, ****** **** ** *** original ********* ** $*** ******* **** going ******.
**********, ******* ** **** **** ********* targets *** *** ******** ***** ******** ****, ********* ******** ******* ** ****, a ***% ******* ******** **** **** to ****, *** ******* * *** loss ** **** **** $** ******* in ****** ** ****, ****** ***** its ******* ** ****.
***** **** "****-******" ******** ** ******** for ******* ** ****** *** ******** market - *** ** ******* **********, Airship ** ***** ***** ** **** significant ****** ** ******** *** ********** stated *****.
Stock ***** **********
******* **'* ***** *** ** **** than ***% *****:
****** *** ****, ******* **'* ***** had **** **** ** *** **** two ******:
***** ** **** ****** *** * SPAC ****** **** **** *********** ****, Airship **'* ***** ********* **** **** 80% **** ~$**.* * ***** ** ~$1.5 * *****:
No *******/****** ** *** *** ****
***** *** *** **** ******* ** Airship **'* ***** ******* ***** *** deal **** ******* *** *******'* ***** price. *** ******* ********* *** **** as "* ***** ******** ** ** agency ****** *** ********** ** ******* (DOJ), ******* ********** *** "*****" *** contract *** ** ***** ****** ** signed ****:
******* ** [...] *** ****awarded * ***** ******** to an agency within the Department of Justice (DOJ) for the Company’s Acropolis Enterprise Sensor Management video and data management platform supporting emerging public safety and investigative requirements. [Emphasis added]
*** ******* ********** ******* **** ** "sole ******," "**********," *** "**," "******" to ******** *** ****'* ********:
**** ******* **********the ****** *.*. ********** ****** to deploy our Acropolis platform in a FedRAMP certified cloud environment, a government-wide program that provides a standardized approach to security assessment, authorization, and continuous monitoring for cloud products and services. [Emphasis added]
******* **’* ********* ******* ********** ********** system ******* ********* ** ****** ******* and ******* ****** ***** ****** ******* eco-system, ******** ** *** ***** ** throughAirship **’* ******* ** **** *********. Built ** *** ****** ****** ********, Outpost AI provides advanced analytic processing at the edge, along with highly efficient video and metadata encoding and encryption over various RF and network backhauls back to the cloud. [Emphasis added]
************, ******* ****** **** ***** *** specifics ** **** **** ** ******* Airship ** ** ***** ** *******, investors ** *** **** ****** *********** to ********* **** **** ******** ***** for ******* **'* ********.
****, ************, ******* ****** **** **** government ********* ** ***** * *** bidder ***/** ******* ** ******** **** other ********* ***’* ****. ** ** likely **** *****'* *** * *** profit ******* ** **** *************.
Stock ******** *********
****** ******* **'* **** **** *******,**** ***** **** *** ******* *** at **** **** ** * *********** stock ***** *******, ***** ** *** ********** ** the *** ** **** ****.
*** **** ******* **'* ***** *** boosted ***** ********** * "****-******" ********** contract *****, ** **** *** *********** mean * ******* **** *** *** company's *********, ** ** ** ******** that **** * ***** ***** ***** as * ****** ** ******* **'* associates ****** ****** ** ******* ******, and *********** ******* ******* ******** **.
Executive **** *****
*** *******'********** ****** **** ** ** *** *** Chairman ** *** *********** *****, **-*******, ***, *** ***** ** Director***** **, *** **** *. *****, ************* *****, *** ******** **.
********* **** *****, *** ******* **** the *.*. **** *** ******* ****** Command ** ****, ** ***** *** company's ******-****** *********, **** *** ***** release ****** *** ****** *** ** interview **** **** *****:
********* ** *** *******'* ********* **** page, *** ****** ***** *** ********** an *********** ******, *** ***** ** was ********** *** *** ** *** company *** **-******* ******* *** ******* company, *** *** ******* *** ***** Ma *** *********** "****** ***** ** technology ********** ** *** ********* ***** and ******** **********."
Headcount ******
******* **'* ***** ********* ****** ***** on ******** ** * ******** ******** sign *** *** *******, ********* **** the ******* ** *******:
Underlying *****/********** *** ******* **
***** **'**** ******** *** ******* ** ** announce ***** ** ******* *** ***** releases, ** ******* ** ******** *** and *** **** ***** "****-******" ******** makes * *** **********. ** * publicly ****** *******, ******* ** **** have ** ** ** ******** ******* and **** ********/****** ******** **** *** progress ** ********* ************ ********* *****.
** **** ****** ***** **** **** "sole-source" **** ***** *** *** ********* of ******* **'* ******** **** *** financial ******* ****** ******** *********. ***** then, ** ******* ***** ** ********* the ***** ** *** ******* ** announcement ******* *********.
*******'* ***** ********* ******* **% *** rest ** *** **** *** *** more **** ******* **** *** ****:
***, **'* **** **** **% **** when ** **** ******:
******* ********** *** ****-**** **** ********* ******* on ***** *. **** ********** **** *** ****** are ** *******:
- *** ******** *** *** **** ***** December **, ****, **** $**.* *******, a **% *** *******.
- ***** ****** ** $*.* *******, *.*.*. a **% ***** ******; ********* **** of $*.* *******, "***** ******" **** "change ** ******* ********* *** ******* liability" ** $** ******* **** *** "volatile ***** ** *** ***** ***** at *** *** ** **** *******," and **** * *** ****** ** $16.4 *******.
- "********* ********" ** ************* $*** ******* into ****.
*** ******* **** ****** *** "***** contracts" **** *** *** ********* ** this **** *** * "***-****** *****-************ *** ******** ******** ** ** agency ****** *** ********* **********." *******, ** **** ********* *** previous ******** **** *** *** ** it "***** ******** ** ******** **** fixed ***** ********* ***** $**.* *******, awarded ** ********* **** ** ** agency ****** *** *.*. ********** ** Homeland ******** (***)."
********* ********* ********** ** *** **** as ******* **'* ***** *** ** more **** **% ***** *** ********** were ********:
*** *******'* ***** *** *** ************ recovered **** *** ******* ***** ***** the **** ** ******** ****. ******* AI's ****** ************** ** *** $***.** million:
******* **** ****, *** ******* **** it *** * "********* ******** ** approximately $*** *******" *** **** ** expects "******-***** ******* ****** *** ******** cash ****" ** *** *** ** the ****. *********** ******* **'* **** unmet ********* ***** ** *** ****, such ** ******** ******* ** ****, it ******* ** ** **** ******* it *** ********** ***** ******* ** 2024.
****** ** ** ** *******.
******'* ********* *** *** *********** ** companies.
** **** ** *********** ** *** what ******* ******* ** ** *** filed ** *******.
******* ********* ******* **** **** ** the ***** ***** ** ****** **** not ****** ** **** ***** *** very ****. ***** ******* *** ****** that ****** ** ** *** ****** levels ******.