Name: Axon Enterprise Inc. (NASDAQ:AXON) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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Axon Enterprise Inc., consolidated balance sheet: liabilities and stockholders’ equity

US$ in thousands

	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018
Accounts payable	59,918)	32,220)	24,142)	25,874)	15,164)
Accrued salaries, benefits and bonus	97,882)	62,425)	36,892)	24,737)	19,063)
Accrued professional, consulting and lobbying fees	3,861)	7,152)	3,055)	3,235)	4,894)
Accrued warranty expense	811)	2,822)	769)	1,476)	898)
Accrued income and other taxes	13,559)	3,736)	3,848)	3,362)	4,167)
Accrued inventory in transit	10,548)	9,945)	4,597)	4,156)	—)
Other accrued expenses	29,273)	17,627)	10,682)	8,035)	12,070)
Accrued liabilities	155,934)	103,707)	59,843)	45,001)	41,092)
Current portion of deferred revenue	360,037)	265,591)	163,959)	117,864)	107,016)
Customer deposits	20,399)	10,463)	2,956)	2,974)	2,702)
Other current liabilities	6,358)	6,540)	5,431)	3,853)	37)
Current liabilities	602,646)	418,521)	256,331)	195,566)	166,011)
Deferred revenue, net of current portion	248,003)	185,721)	111,222)	87,936)	74,417)
Liability for unrecognized tax benefits	10,745)	3,797)	4,503)	3,832)	2,849)
Long-term deferred compensation	6,285)	5,679)	4,732)	3,936)	3,235)
Deferred tax liability, net	1)	811)	649)	354)	—)
Long-term operating lease liabilities	37,143)	20,439)	18,952)	6,792)	—)
Convertible notes, net	673,967)	—)	—)	—)	—)
Other long-term liabilities	4,613)	5,393)	8,379)	3,728)	5,704)
Long-term liabilities	980,757)	221,840)	148,437)	106,578)	86,205)
Total liabilities	1,583,403)	640,361)	404,768)	302,144)	252,216)
Preferred stock, $0.00001 par value; no shares issued and outstanding	—)	—)	—)	—)	—)
Common stock, $0.00001 par value	1)	1)	1)	1)	1)
Additional paid-in capital	1,174,594)	1,095,229)	962,159)	528,272)	453,400)
Treasury stock at cost	(155,947)	(155,947)	(155,947)	(155,947)	(155,947)
Retained earnings	257,022)	109,883)	169,901)	172,265)	171,383)
Accumulated other comprehensive income (loss)	(7,179)	(1,317)	141)	(1,096)	(1,513)
Stockholders’ equity	1,268,491)	1,047,849)	976,255)	543,495)	467,324)
Total liabilities and stockholders’ equity	2,851,894)	1,688,210)	1,381,023)	845,639)	719,540)

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

The balance sheet demonstrates a period of aggressive expansion and a significant shift in the capital structure between 2018 and 2022. Total liabilities and stockholders' equity grew from 719.5 million US dollars to 2.85 billion US dollars, reflecting a substantial increase in the scale of operations and financing activities.

Current Liabilities Trends: Current liabilities experienced steady growth, rising from 166.0 million US dollars in 2018 to 602.6 million US dollars in 2022. A primary driver of this increase is the current portion of deferred revenue, which expanded from 107.0 million US dollars to 360.0 million US dollars. This trend suggests a significant increase in advance payments from customers, typically associated with the growth of subscription-based services or long-term contracts. Additionally, accrued salaries, benefits, and bonuses grew fivefold over the period, reaching 97.9 million US dollars, which indicates a substantial expansion of the workforce.
Long-Term Liability and Debt Profile: Long-term liabilities remained relatively stable until 2022, at which point they surged from 221.8 million US dollars to 980.8 million US dollars. This spike is almost entirely attributable to the issuance of convertible notes totaling 674.0 million US dollars in 2022. Furthermore, the net deferred revenue, net of the current portion, grew from 74.4 million US dollars to 248.0 million US dollars, further reinforcing the trend of increasing long-term contractual obligations to customers.
Stockholders' Equity Evolution: Total stockholders' equity increased from 467.3 million US dollars in 2018 to 1.27 billion US dollars in 2022. The growth was primarily driven by additional paid-in capital, which rose from 453.4 million US dollars to 1.17 billion US dollars, indicating significant capital raises through equity issuance. Retained earnings showed some volatility, decreasing in 2021 before recovering to 257.0 million US dollars by 2022. Treasury stock remained constant at a cost of 155.9 million US dollars throughout the analyzed period.
Overall Solvency and Capital Structure: The total liability-to-equity ratio shifted markedly in 2022. For much of the period, equity exceeded total liabilities; however, by the end of 2022, total liabilities reached 1.58 billion US dollars, surpassing total stockholders' equity of 1.27 billion US dollars. This change in the leverage profile is a direct result of the introduction of convertible notes, moving the organization toward a more leveraged capital structure to support its growth trajectory.

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