C-Bond Systems, Inc.

Management did not give a full income statement on the call, but it said 2023 revenue was record-high, net income was almost $1.9 million, and net income improved by over $7 million versus 2022. It also said 2023 expenses were $1.2 million lower than in 2022. Cash from the 2023 sale of the C-Bond Nano Shield automotive business and related patent was over $4 million, and more than $2 million of debt was repaid. Forward, management said first-quarter 2024 revenue is targeted to be over $1 million, full-year 2024 revenue goal is $4 million, and if that is achieved the company expects to be net income and cash-flow positive. Backlog entering 2024 was over $3 million.

Scott Silverman framed 2023 as a turnaround year and emphasized that the company now has a stronger balance sheet, a larger backlog, and expanding demand for its security window film and bullet-resistant solutions. He highlighted the company’s proprietary IP, NIJ-certified products, and installed base of more than 170 schools, while saying the dealer network is helping expand beyond Texas. His tone was upbeat and promotional, with repeated confidence that 2024 should bring materially more growth.

No separate CFO spoke on the call. Financial commentary from management focused on the sale of the automotive business generating over $4 million, paying off more than $2 million of debt, reducing 2023 expenses by $1.2 million versus 2022, and improving net income by more than $7 million year over year to almost $1.9 million. Management also said some fourth-quarter expense growth was project-based and included stock-based compensation, and that short-term project-related financing may still be needed until operations are fully cash-flow positive.

Analysts asked whether the company could be profitable all year if it maintains $1 million-plus quarterly revenue, and Silverman said yes if the company reaches its $4 million revenue goal in 2024. Another question focused on the recent hard-money loan; management said it was short-term working capital for project timing and large customer payment terms, and that it has no conversion feature unless not repaid. Questions also covered higher fourth-quarter expenses, which management attributed mainly to project activity and some non-cash stock compensation, plus market share in Texas schools and the possibility of a reverse split or stock buyback; Silverman said the company is winning some jobs but not all because it is not the lowest-cost option, and that buybacks are not a current use of cash while a reverse split is not on the table absent significant business momentum.