COMSovereign Reports 2020 Annual Results.

DALLAS: COMSovereign Holding Corp. (NASDAQ: COMS) ("COMSovereign" or "Company"), a U.S.-based developer of 4G LTE Advanced and 5G Communication Systems and Solutions, today reported financial results for the fiscal year ended December 31, 2020.

Full year 2020 revenues were $9,426,836 driven by sales of DragonWave mobile network backhaul products, the acquisition of Sovereign Plastics and Virtual NetCom, initial test-market sale of certain high-performance after-market models of the Company's intelligent batteries, and a full year of revenue for aerostat products and accessories.

Gross profit for the year ended December 31, 2020 was $4,830,875, with a gross pr

ofit margin of 51%. Gross profit reflects an increased gross profit margin for DragonWave during the year and the inclusion of a full year of operating results for Drone Aviation and most of the year for Sovereign Plastics, which were acquired on November 27, 2019 and March 6, 2020, respectively.

The Company ended the year with $730,502 in cash. Subsequent to the close of the year, the Company secured approximately $45 million in gross proceeds from capital raised in January and February 2021 and utilized a portion of the proceeds of these offerings to pay off maturing debt and accrued interest which totaled $20.4 million including debt converted to equity.

Investors can view the complete 10-K filing at www.sec.gov or on the Company's website at https://investors.comsovereign.com/SEC-Filings

"Our fiscal year ended 2020 was focused on readying the business to capitalize on the opportunity of American-made 4G and 5G by integrating and streamlining our existing operations and expanding our capabilities through the additions of Virtual NetCom and Sovereign Plastics," said Dan Hodges, Chairman and CEO of COMSovereign Holding Corp. "Against the many challenges brought on by COVID-19, operationally, we were able to achieve a number of important milestones in 2020 which have laid the foundation for significant growth expected this year. These milestones include opening our new HQ in Dallas, expanding our management teams, advancing development of our unique and patented radio technologies, preparing for our up-listing on Nasdaq and the raising of capital which the Company secured early in the first quarter of 2021."

Looking ahead in 2021:

Supported by over $43 million in new equity capital raised in the first quarter of 2021...

To continue reading

Request your trial