[November 20, 2017] |
|
Inpixon Reports Financial Results for the Third Quarter Ended September 30, 2017 and Provides Corporate Update
Inpixon (NASDAQ: INPX), a leading indoor positioning and data analytics
company, today reported financial results for the third quarter ended
September 30, 2017 and provided an update on corporate developments.
Third Quarter 2017 Financial Highlights:
-
2017 Q3 revenue of $11.9 million
-
2017 Q3 gross margin of 19%
-
2017 Q3 GAAP net loss of $1.56 per share
-
2017 Q3 Proforma Non-GAAP net loss1 of $0.46 per share
-
2017 Q3 Non-GAAP Adjusted EBITDA1 loss of $3.1 million
"Inpixon advanced the Indoor Positioning Analytics (IPA) products and
services with a growing number of notable global channel partners in the
third quarter. We believe that these partnerships, along with a few
others that we hope to announce in the near future, will provide for
faster growth and further commercial validation," said Nadir Ali,
Inpixon's CEO. "We also have pilot programs underway with large
prospective clients in both our Security and Retail segments and are
encouraged by the valuable outcomes we are demonstrating. We continue to
streamline operations and growth by separating our IPA and VAR business
segments to drive efficiencies and reduce costs. We have made reductions
in field offices and headcount which we believe will represent
approximately $6M in cost savings on an annualized basis. We are also
focusing our capital on market-driven product development projects such
as APIs, cloud infrastructure and scalability to prepare for the
scalability we will need from the growth we expect our channel partners
will bring," Mr. Ali concluded.
Third Quarter 2017 Financial Results
Revenue: Net revenues for the three months ended September 30,
2017 were $11.9 million compared to $11.2 million for the comparable
period in the prior year. This $700,000 increase in revenues was
primarily attributable to the acquisition of Integrio Technologies LLC
("Integrio") in November 2016. For the three months ended September 30,
2017, Indoor Positioning Analytics revenue was $871,000 compared to $1.4
million for the prior year period. Infrastructure revenue was $11.1
million for the three months ended September 30, 2017, and $9.9 million
for the prior year period.
Gross Profit: The gross profit margin for the three months ended
September 30, 2017 was 19% compared to 28% during the three months ended
September 30, 2016. The decrease in gross margin was primarily
attributable to lower gross margins on the Integrio revenue, which is
included in the Infrastructure segment, during the quarter ended
September 30, 2017. Indoor Positioning Analytics gross margins for the
three months ended September 30, 2017 and 2016 were 69% and 64%,
respectively. Gross margins for the Infrastructure segment for the three
months ended September 30, 2017 and 2016 were 15% and 22%, respectively.
Net Loss: Net loss attributable to common stockholders for the
three months ended September 30, 2017 was $14.6 million compared to $4.7
million for the prior year period. This increase in net loss of $9.9
million was attributable to an impairment of goodwill charge of $8.4
million, increase in amortization of intangibles and depreciation costs,
additional costs incurred for the Integrio operations offset by a
reduction in operating expenses related to Inpixon USA and the lower
gross profit.
Non-GAAP net loss1: Proforma non-GAAP
net loss per basic and diluted common share for the three months ended
September 30, 2017 was ($0.46) compared to ($1.92) for the prior year
period. These decreases were attributable to the changes discussed in
our operations results.
Non-GAAP adjusted EBITDA1: Adjusted
EBITDA for the three months ended September 30, 2017 was a loss of $3.1
million compared to a loss of $2.4 million for the prior year period.
Non-GAAP adjusted EBITDA is defined as net income (loss) before
interest, provision for (benefit from) income taxes, and depreciation
and amortization plus adjustments for other income or expense items,
non-recurring items and non-cash stock-based compensation.
1 A reconciliation of GAAP to non-GAAP financial measures is
provided in the financial statement tables included in this press
release. An explanation of these measures is also included under the
heading "Non-GAAP Financial Measures".
Q3 2017 Business Highlights and Recent Developments
-
Inpixon announced a partnership with GTRI, an innovator in IT
consulting and services, to render comprehensive three-dimensional
physical cybersecurity solutions, including the Inpixon Indoor
Positioning Analytics (IPA) Security Dome for physical premises,
airwaves and wireless devices.
-
Inpixon completed a financial agreement with Payplant LLC
("Payplant"). The Payplant facility will allow increased flexibility
in meeting working capital needs by allowing Inpixon to process more
commercial and government purchase orders.
-
Inpixon's subsidiary, Inpixon Federal, received two delivery orders
from the Bureau of Census totaling $1.4 million.
-
Inpixon joined the ngConnect Program to advance the adoption and
development of Indoor Positioning Analytics and collaborate with the
multi-industry open innovation ecosystem founded by Nokia, providing
an indoor positioning and analytics platform for next generation
networks, cloud and IoT technologies.
-
Inpixon signed a technology refresh deal with a leading beverage
distributor for $750K for Q2 and Q3 and will upgrade the customer's
existing infrastructure.
-
Inpixon Federal expanded its offering of RadPRO SecurPASS Security
Screening System, partnering with Virtual Imaging, Inc., a wholly
owned subsidiary of Canon U.S.A., Inc., to improve the safety and
security of federal, state and local government correctional
facilities, who has delivered over 100 RadPRO SecurPASS Security
Screening Systems across the nation's correctional facilities. Inpixon
Federal anticipates over $5.5 million in revenue from this product
line by the end of 2017.
-
Inpixon approved to expand its NASA Solutions for Enterprise-Wide
Procurement V (SEWP V) catalog to include offerings that meet the
requirements for the Government-wide Strategic Solutions (GSS) for
laptops and monitors.
-
Inpixon won the 2017 IoT Security Excellence Award.
All results summarized in this press release (including the financial
statement tables) should be considered preliminary, qualified in their
entirety by the financial statement tables included in this press
release, and subject to change.
Conference Call Information
Management will host a conference call on Monday, November 20, 2017, at
4:30pm Eastern time to review financial results and corporate
highlights. Following management's formal remarks, there will be a
question and answer session.
To listen to the conference call, interested parties within the U.S.
should call 1-844-824-3831. International callers should call
1-412-317-5141. All callers should ask for the Inpixon conference call.
The conference call will also be available through a live webcast, which
can be accessed at http://client.irwebkit.com/inpixon/events.
A replay of the call will be available approximately one hour after the
end of the call through December 20, 2017. The replay can be accessed
via Inpixon's website or by dialing 1-877-344-7529 (U.S.) or
+1-412-317-0088 (international). The replay conference playback code is
10114477.
About Inpixon
Inpixon (NASDAQ: INPX) is a leader in Indoor Positioning and Data
Analytics. Inpixon sensors are designed to find all accessible cellular,
Wi-Fi, and Bluetooth devices anonymously. Paired with a high
performance, data analytics platform this technology delivers
visibility, security, and business intelligence on any commercial or
government premises world-wide. Inpixon's products, infrastructure
solutions, and professional services group help customers take advantage
of mobile, big data, analytics, and the Internet of Things (IoT) to
uncover the untold stories of the indoors. For the latest insight on
Indoor Positioning and Data Analytics, follow Inpixon
on LinkedIn and @InpixonHQ
on Twitter.
Safe Harbor Statement
All statements in this release that are not based on historical fact are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 and the provisions of Section
27A of the Act, and Section 21E of the Securities Exchange Act of 1934,
as amended. While management has based any forward-looking statements
included in this release on its current expectations, the information on
which such expectations were based may change. These forward-looking
statements rely on a number of assumptions concerning future events and
are subject to a number of risks, uncertainties and other factors, many
of which are outside of the control of Inpixon and its subsidiaries,
which could cause actual results to materially differ from such
statements. Such risks, uncertainties, and other factors include, but
are not limited to, the fluctuation of global economic conditions, the
performance of management and employees, the Company's ability to obtain
financing, competition, general economic conditions and other factors
that are detailed in the Company's periodic and current reports
available for review at www.sec.gov.
Furthermore, we operate in a highly competitive and rapidly changing
environment where new and unanticipated risks may arise. Accordingly,
investors should not place any reliance on forward-looking statements as
a prediction of actual results. We disclaim any intention to, and
undertake no obligation to, update or revise forward-looking statements.
Non-GAAP Financial Measures
Management believes that certain financial measures not in accordance
with generally accepted accounting principles in the United States
("GAAP") are useful measures of operations. EBIDTA, Adjusted EBITDA and
pro forma net loss per share are non-GAAP measures. Inpixon defines
"EBITDA" as net income (loss) before interest, provision for (benefit
from) income taxes, and depreciation and amortization. Management uses
Adjusted EBITDA as the matrix in which it manages the business and
Inpixon defines "Adjusted EBITDA" as EBITDA plus adjustments for other
income or expense items, non-recurring items and non-cash stock-based
compensation. Inpixon defines "pro forma net loss per share" as GAAP net
loss per share adjusted for stock-based compensation, amortization of
intangibles, change in the fair value of shares to be issued, change in
the fair value of derivative liability and one-time non-recurring
charges such as severance costs, acquisition costs and the costs
associated with the public offering.
Management provides Adjusted EBITDA and pro forma net loss per share
measures so that investors will have the same financial information that
management uses, which may assist investors in assessing Inpixon's
performance on a period-over-period basis. Adjusted EBITDA or pro forma
net loss per share is not a measure of financial performance under GAAP,
and should not be considered an alternative to net income (loss) or any
other measure of performance under GAAP, or to cash flows from
operating, investing or financing activities as an indicator of cash
flows or as a measure of liquidity. Adjusted EBITDA and pro forma net
loss per share have limitations as analytical tools and should not be
considered either in isolation or as a substitute for analysis of
Inpixon's results as reported under GAAP.
INPIXON AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(In thousands, except number of shares and par value data)
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
2017
|
|
2016
|
|
|
(Unaudited)
|
|
(Audited)
|
ASSETS
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
107
|
|
|
$
|
1,821
|
|
Accounts receivable, net
|
|
|
5,738
|
|
|
|
11,788
|
|
Notes and other receivables
|
|
|
419
|
|
|
|
362
|
|
Inventory
|
|
|
790
|
|
|
|
1,061
|
|
Prepaid licenses and maintenance contracts
|
|
|
5,746
|
|
|
|
13,321
|
|
Assets held for sale
|
|
|
23
|
|
|
|
23
|
|
Prepaid assets and other current assets
|
|
|
1,312
|
|
|
|
1,768
|
|
Total current assets
|
|
|
14,135
|
|
|
|
30,144
|
|
Prepaid licenses and maintenance contracts, non-current
|
|
|
2,958
|
|
|
|
5,169
|
|
Property and equipment, net
|
|
|
896
|
|
|
|
1,385
|
|
Software development costs, net
|
|
|
2,249
|
|
|
|
2,058
|
|
Intangible assets, net
|
|
|
13,597
|
|
|
|
17,691
|
|
Goodwill
|
|
|
636
|
|
|
|
9,028
|
|
Other assets
|
|
|
734
|
|
|
|
998
|
|
Total assets
|
|
$
|
35,205
|
|
|
$
|
66,473
|
|
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
27,778
|
|
|
$
|
23,027
|
|
Accrued liabilities
|
|
|
4,372
|
|
|
|
3,959
|
|
Deferred revenue
|
|
|
6,859
|
|
|
|
15,043
|
|
Short-term debt
|
|
|
3,519
|
|
|
|
6,887
|
|
Derivative liabilities
|
|
|
350
|
|
|
|
210
|
|
Liabilities held for sale
|
|
|
2,053
|
|
|
|
2,041
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
44,931
|
|
|
|
51,167
|
|
Deferred revenue, non-current
|
|
|
3,440
|
|
|
|
5,960
|
|
Long-term debt
|
|
|
2,081
|
|
|
|
4,047
|
|
Other liabilities
|
|
|
221
|
|
|
|
371
|
|
Acquisition liability - Integrio
|
|
|
997
|
|
|
|
1,648
|
|
Acquisition liability - LightMiner
|
|
|
--
|
|
|
|
567
|
|
Total liabilities
|
|
|
51,670
|
|
|
|
63,760
|
|
Commitments and contingencies
|
|
|
|
|
|
|
Stockholders' (deficit) equity:
|
|
|
|
|
|
|
Preferred Stock - $0.001 par value; 5,000,000 shares authorized, 0
issued and outstanding as of September 30, 2017
|
|
--
|
|
|
|
--
|
|
Convertible Series 1 Preferred Stock - $1,000 stated value,
5,000,000 shares authorized; 0 issued and outstanding at September
30, 2017 and 2,250 issued and outstanding at December 31, 2016
|
|
|
|
|
Liquidation preference of $0 at September 30, 2017 and $2,250,000 at
December 31, 2016.
|
|
--
|
|
|
|
1,340
|
|
Series 2 Convertible Preferred Stock - $1,000 stated value; 4,669
shares authorized; 0 issued and outstanding at September 30, 2017
and December 31, 2016
|
|
|
|
|
Liquidation preference of $0 at September 30, 2017 and December 31,
2016.
|
|
|
--
|
|
|
|
--
|
|
Common Stock - $0.001 par value; 50,000,000 shares authorized;
15,413,769 and 2,171,886 issued and 15,397,847 and 2,155,964
outstanding at September 30, 2017 and December 31, 2016,
respectively
|
|
|
15
|
|
|
|
2
|
|
Additional paid-in capital
|
|
|
73,440
|
|
|
|
64,148
|
|
Treasury stock, at cost, 15,922 shares
|
|
|
(695
|
)
|
|
|
(695
|
)
|
Due from Sysorex Consulting Inc.
|
|
|
(666
|
)
|
|
|
(666
|
)
|
Accumulated other comprehensive income
|
|
|
37
|
|
|
|
52
|
|
Accumulated deficit
|
|
|
(86,588
|
)
|
|
|
(59,473
|
)
|
Stockholders' (deficit) equity attributable to Inpixon
|
|
|
(14,457
|
)
|
|
|
4,708
|
|
Non-controlling interest
|
|
|
(2,008
|
)
|
|
|
(1,995
|
)
|
Total stockholders' (deficit) equity
|
|
|
(16,465
|
)
|
|
|
2,713
|
|
Total liabilities and stockholders' (deficit) equity
|
|
$
|
35,205
|
|
|
$
|
66,473
|
|
INPIXON AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
|
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
$
|
9,566
|
|
|
$
|
8,366
|
|
|
$
|
31,225
|
|
|
$
|
27,871
|
|
Services
|
|
|
2,358
|
|
|
|
2,874
|
|
|
|
9,277
|
|
|
|
10,788
|
|
Total Revenues
|
|
|
11,924
|
|
|
|
11,240
|
|
|
|
40,502
|
|
|
|
38,659
|
|
Cost of Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
|
|
8,519
|
|
|
|
6,873
|
|
|
|
26,805
|
|
|
|
22,363
|
|
Services
|
|
|
1,154
|
|
|
|
1,269
|
|
|
|
4,773
|
|
|
|
5,807
|
|
Total Cost of Revenues
|
|
|
9,673
|
|
|
|
8,142
|
|
|
|
31,578
|
|
|
|
28,170
|
|
Gross Profit
|
|
|
2,251
|
|
|
|
3,098
|
|
|
|
8,924
|
|
|
|
10,489
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
447
|
|
|
|
587
|
|
|
|
1,459
|
|
|
|
1,711
|
|
Sales and marketing
|
|
|
1,301
|
|
|
|
1,876
|
|
|
|
5,522
|
|
|
|
6,713
|
|
General and administrative
|
|
|
5,378
|
|
|
|
3,699
|
|
|
|
14,633
|
|
|
|
11,116
|
|
Acquisition related costs
|
|
|
--
|
|
|
|
22
|
|
|
|
5
|
|
|
|
52
|
|
Impairment of goodwill
|
|
|
8,392
|
|
|
|
--
|
|
|
|
8,392
|
|
|
|
--
|
|
Amortization of intangibles
|
|
|
1,327
|
|
|
|
1,056
|
|
|
|
4,094
|
|
|
|
3,169
|
|
Total operating expenses
|
|
|
16,845
|
|
|
|
7,240
|
|
|
|
34,105
|
|
|
|
22,761
|
|
Loss from operations
|
|
|
(14,594
|
)
|
|
|
(4,142
|
)
|
|
|
(25,181
|
)
|
|
|
(12,272
|
)
|
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(694
|
)
|
|
|
(639
|
)
|
|
|
(2,721
|
)
|
|
|
(1,037
|
)
|
Change in fair value of shares to be issued
|
|
|
--
|
|
|
|
5
|
|
|
|
--
|
|
|
|
13
|
|
Change in fair value of derivative liability
|
|
|
46
|
|
|
|
41
|
|
|
|
254
|
|
|
|
41
|
|
Other income
|
|
|
610
|
|
|
|
15
|
|
|
|
545
|
|
|
|
54
|
|
Total other expense
|
|
|
(38
|
)
|
|
|
(578
|
)
|
|
|
(1,922
|
)
|
|
|
(929
|
)
|
Loss from continuing operations
|
|
|
(14,632
|
)
|
|
|
(4,720
|
)
|
|
|
(27,103
|
)
|
|
|
(13,201
|
)
|
Loss from discontinued operations, net of tax
|
|
|
(9
|
)
|
|
|
--
|
|
|
|
(26
|
)
|
|
|
--
|
|
Net loss
|
|
|
(14,641
|
)
|
|
|
(4,720
|
)
|
|
|
(27,129
|
)
|
|
|
(13,201
|
)
|
Net loss attributable to non-controlling interest
|
|
|
(4
|
)
|
|
|
(4
|
)
|
|
|
(13
|
)
|
|
|
(12
|
)
|
Net loss attributable to stockholders of Inpixon
|
|
$
|
(14,637
|
)
|
|
$
|
(4,716
|
)
|
|
$
|
(27,116
|
)
|
|
$
|
(13,189
|
)
|
Comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss
|
|
|
(14,641
|
)
|
|
|
(4,720
|
)
|
|
|
(27,129
|
)
|
|
|
(13,201
|
)
|
Unrealized foreign exchange gain/(loss) from cumulative translation
adjustments
|
|
(5
|
)
|
|
|
15
|
|
|
|
(15
|
)
|
|
|
34
|
|
Comprehensive loss
|
|
$
|
(14,646
|
)
|
|
$
|
(4,705
|
)
|
|
$
|
(27,144
|
)
|
|
$
|
(13,167
|
)
|
Net loss per share - basic and diluted
|
|
$
|
(1.56
|
)
|
|
$
|
(2.70
|
)
|
|
$
|
(5.79
|
)
|
|
$
|
(7.77
|
)
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
|
|
|
9,449,102
|
|
|
|
1,743,451
|
|
|
|
4,690,876
|
|
|
|
1,697,645
|
|
INPIXON AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended
|
|
|
September 30,
|
|
|
2017
|
|
2016
|
|
|
(Unaudited)
|
Cash flows from operating activities:
|
|
|
|
|
|
|
Net loss
|
|
$
|
(27,129
|
)
|
|
$
|
(13,201
|
)
|
Adjustment to reconcile net loss to net cash provided by (used in)
operating activities:
|
|
Depreciation and amortization
|
|
|
1,324
|
|
|
|
884
|
|
Amortization of intangible assets
|
|
|
4,094
|
|
|
|
3,169
|
|
Impairment of goodwill
|
|
|
8,392
|
|
|
|
--
|
|
Stock based compensation
|
|
|
1,282
|
|
|
|
1,055
|
|
Change in fair value of shares to be issued
|
|
|
--
|
|
|
|
(13
|
)
|
Change in fair value of derivative liability
|
|
|
(254
|
)
|
|
|
(41
|
)
|
Amortization of technology
|
|
|
50
|
|
|
|
--
|
|
Amortization of deferred financing costs
|
|
|
167
|
|
|
|
--
|
|
Amortization of debt discount
|
|
|
1,545
|
|
|
|
196
|
|
Provision for doubtful accounts
|
|
|
773
|
|
|
|
455
|
|
Other
|
|
|
129
|
|
|
|
22
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable and other receivables
|
|
|
5,223
|
|
|
|
4,016
|
|
Inventory
|
|
|
270
|
|
|
|
(97
|
)
|
Other current assets
|
|
|
455
|
|
|
|
(26
|
)
|
Prepaid licenses and maintenance contracts
|
|
|
9,787
|
|
|
|
1,248
|
|
Other assets
|
|
|
46
|
|
|
|
(173
|
)
|
Accounts payable
|
|
|
4,751
|
|
|
|
850
|
|
Accrued liabilities
|
|
|
455
|
|
|
|
(1,205
|
)
|
Deferred revenue
|
|
|
(10,704
|
)
|
|
|
1,915
|
|
Other liabilities
|
|
|
(438
|
)
|
|
|
(190
|
)
|
Total Adjustments
|
|
|
27,347
|
|
|
|
12,065
|
|
Net Cash Provided by (Used in) Operating Activities
|
|
|
218
|
|
|
|
(1,136
|
)
|
Cash Flows From (Used in) Investing Activities:
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
(91
|
)
|
|
|
(461
|
)
|
Investment in capitalized software
|
|
|
(1,063
|
)
|
|
|
(1,160
|
)
|
Net Cash Flows Used in Investing Activities
|
|
|
(1,154
|
)
|
|
|
(1,621
|
)
|
Cash Flows From Financing Activities
|
|
|
|
|
|
|
Net repayment of line of credit
|
|
|
(3,348
|
)
|
|
|
(4,150
|
)
|
Repayment of term loan
|
|
|
--
|
|
|
|
(1,611
|
)
|
Advances to related party
|
|
|
--
|
|
|
|
(3
|
)
|
Net proceeds from issuance of common stock, preferred stock and
warrants
|
|
6,117
|
|
|
|
--
|
|
Repayment of debenture
|
|
|
(2,850
|
)
|
|
|
--
|
|
Repayment of notes payable
|
|
|
(20
|
)
|
|
|
(70
|
)
|
Advances from related party
|
|
|
--
|
|
|
|
2
|
|
Proceeds from debenture and convertible preferred stock
|
|
|
--
|
|
|
|
5,000
|
|
Net proceeds from convertible promissory notes
|
|
|
2,000
|
|
|
|
--
|
|
Repayment of convertible promissory notes
|
|
|
(2,662
|
)
|
|
|
--
|
|
Net Cash Used in Financing Activities
|
|
|
(763
|
)
|
|
|
(832
|
)
|
Effect of Foreign Exchange Rate on Changes on Cash
|
|
|
(15
|
)
|
|
|
34
|
|
Net Decrease in Cash and Cash Equivalents
|
|
|
(1,714
|
)
|
|
|
(3,555
|
)
|
Cash and Cash Equivalents - Beginning of period
|
|
|
1,821
|
|
|
|
4,060
|
|
Cash and Cash Equivalents - End of period
|
|
$
|
107
|
|
|
$
|
505
|
|
Reconciliation of Non-GAAP Financial Measures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands)
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net loss attributable to common stockholders
|
|
$
|
|
(14,637
|
)
|
|
$
|
|
(4,716
|
)
|
|
$
|
|
(27,116
|
)
|
|
$
|
|
(13,189
|
)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-recurring one-time charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition transaction/financing costs
|
|
|
|
--
|
|
|
|
|
22
|
|
|
|
|
5
|
|
|
|
|
52
|
|
Costs associated with public offering
|
|
|
|
159
|
|
|
|
|
--
|
|
|
|
|
159
|
|
|
|
|
--
|
|
Impairment of goodwill
|
|
|
|
8,392
|
|
|
|
|
--
|
|
|
|
|
8,392
|
|
|
|
|
--
|
|
Gain on earnout
|
|
|
|
(561
|
)
|
|
|
|
--
|
|
|
|
|
(561
|
)
|
|
|
|
--
|
|
Change in the fair value of shares to be issued
|
|
|
|
--
|
|
|
|
|
(5
|
)
|
|
|
|
--
|
|
|
|
|
(13
|
)
|
Change in the fair value of derivative liability
|
|
|
|
(46
|
)
|
|
|
|
(41
|
)
|
|
|
|
(254
|
)
|
|
|
|
(41
|
)
|
Severance
|
|
|
|
--
|
|
|
|
|
--
|
|
|
|
|
27
|
|
|
|
|
--
|
|
Stock based compensation - acquisition costs
|
|
|
|
--
|
|
|
|
|
--
|
|
|
|
|
7
|
|
|
|
|
--
|
|
Bad debt expense
|
|
|
|
773
|
|
|
|
|
--
|
|
|
|
|
773
|
|
|
|
|
--
|
|
Stock-based compensation - compensation and related benefits
|
|
|
288
|
|
|
|
|
344
|
|
|
|
|
1,275
|
|
|
|
|
1,055
|
|
Interest expense
|
|
|
|
694
|
|
|
|
|
639
|
|
|
|
|
2,721
|
|
|
|
|
1,037
|
|
Depreciation and amortization
|
|
|
|
1,817
|
|
|
|
|
1,391
|
|
|
|
|
5,418
|
|
|
|
|
4,054
|
|
Adjusted EBITDA
|
|
$
|
|
(3,121
|
)
|
|
$
|
|
(2,366
|
)
|
|
$
|
|
(9,154
|
)
|
|
$
|
|
(7,045
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except share data)
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
September 30,
|
|
September 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net loss attributable to common stockholders
|
|
$
|
|
(14,637
|
)
|
|
$
|
|
(4,716
|
)
|
|
$
|
|
(27,116
|
)
|
|
$
|
|
(13,189
|
)
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-recurring one-time charges:
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition transaction/financing costs
|
|
|
|
--
|
|
|
|
|
22
|
|
|
|
|
5
|
|
|
|
|
52
|
|
Costs associated with public offering
|
|
|
|
159
|
|
|
|
|
--
|
|
|
|
|
159
|
|
|
|
|
--
|
|
Impairment of goodwill
|
|
|
|
8,392
|
|
|
|
|
--
|
|
|
|
|
8,392
|
|
|
|
|
--
|
|
Gain on earnout
|
|
|
|
(561
|
)
|
|
|
|
--
|
|
|
|
|
(561
|
)
|
|
|
|
--
|
|
Change in the fair value of shares to be issued
|
|
|
|
--
|
|
|
|
|
(5
|
)
|
|
|
|
--
|
|
|
|
|
(13
|
)
|
Change in the fair value of derivative liability
|
|
|
|
(46
|
)
|
|
|
|
(41
|
)
|
|
|
|
(254
|
)
|
|
|
|
(41
|
)
|
Severance
|
|
|
|
--
|
|
|
|
|
--
|
|
|
|
|
27
|
|
|
|
|
--
|
|
Stock based compensation - acquisition costs
|
|
|
|
--
|
|
|
|
|
--
|
|
|
|
|
7
|
|
|
|
|
--
|
|
Bad debt expense
|
|
|
|
773
|
|
|
|
|
--
|
|
|
|
|
773
|
|
|
|
|
--
|
|
Stock-based compensation - compensation and related benefits
|
|
|
288
|
|
|
|
|
344
|
|
|
|
|
1,275
|
|
|
|
|
1,055
|
|
Amortization of intangibles
|
|
|
|
1,327
|
|
|
|
|
1,056
|
|
|
|
|
4,094
|
|
|
|
|
3,169
|
|
Proforma non-GAAP net loss
|
|
|
$
|
(4,305
|
)
|
|
$
|
|
(3,340
|
)
|
|
|
$
|
(13,199
|
)
|
|
$
|
|
(8,967
|
)
|
Proforma non-GAAP net loss per basic and diluted common share
|
|
$
|
(0.46
|
)
|
|
$
|
|
(1.92
|
)
|
|
|
$
|
(2.81
|
)
|
|
$
|
|
(5.28
|
)
|
Weighted average basic and diluted common shares outstanding
|
|
|
9,449,102
|
|
|
|
|
1,743,451
|
|
|
|
|
4,690,876
|
|
|
|
|
1,697,645
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20171120006124/en/
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