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WaveDancer Releases First Quarter 2022 Results
[May 16, 2022]

WaveDancer Releases First Quarter 2022 Results

FAIRFAX, Va., May 16, 2022 (GLOBE NEWSWIRE) -- WaveDancer (NASDAQ: WAVD), today reported its results for the first quarter ended March 31, 2022, which was characterized by continued investment in the WaveDancer’s software development and sales team. This included new hires, board appointments, partnerships, and a definitive acquisition agreement as WaveDancer strives to become a leader in the zero trust, blockchain, and secure supply chain market.

WaveDancer CEO Jamie Benoit commented, “Our first quarter 2022 saw the company continue to prioritize investments in key operational areas.   In addition to the recent additions, we have made at the board and senior leadership levels, we have also added three new blockchain sales professionals as well as six engineers and developers.”

Mr. Benoit continued, “Our lower revenue over first quarter 2021 is a result of our continued effort in the Tellenger business to move away from low margin distribution and reselling and towards higher margin professional services opportunities.”

First Quarter 2022 Financial Highlights (all comparisons to prior year period unless otherwise noted)

  • Total revenues decreased 12.4% to $3.0 million, compared with $3.4 million.
  • Professional fees decreased 15.3% to $2.1 million down from $2.4 million.
  • Gross profit decreased to $0.4 million, compared with $1.0 million.
  • Gross margin expanded to 12.6%; higher-margin professional fees accounted for 69.0% of revenues.
  • Net loss of $(2.1) million, compared with net income of $0.3 million.
  • Adjusted EBITDA1 of ($1.7) million, compared with $0.4 million.

About WaveDancer

WaveDancer (, headquartered in Fairfax, Virginia, is a provider of zero trust software solutions, specializing in secure blockchain supply chain management (SCM), asset tracking and security. Our technologies are deployed and being used to help organizations manage very complex supply chain challenges. Initially developed to secure a complex international supply chain for a global U.S. Government (USG) national security organization, the technology has matured to address multiple operational capabilities. Customers are using the WaveDancer platform to gain unprecedented levels of accountability, auditability, and predictability from their data, while giving insights to their partners and suppliers through a controlled, distributed ledger that is immutable and can be trusted by all parties. The sophisticated blockchain technology is now available to the entirety of the USG through GovCloud.


1 Please see non-GAAP reconciliation on page 6

Additional information for investors
This release may contain forward-looking statements regarding the Company's business, customer prospects, or other factors that may affect future earnings or financial results. Such statements involve risks and uncertainties which could cause actual results to vary materially from those expressed in the forward-looking statements. Investors should read and understand the risk factors detailed in the Company's 10-K for the fiscal year ended December 31, 2021 and in other filings with the Securities and Exchange Commission.

For additional information contact:
Jeremy Hellman, CFA
Vice President
The Equity Group
(212) 836-9626
[email protected]


 Three Months Ended March 31,
Professional fees$2,066,690  $2,439,259 
Software sales 928,822   980,321 
Total revenues 2,995,512   3,419,580 
Cost of revenues     
Cost of professional fees 1,712,015   1,467,699 
Cost of software sales 907,432   932,231 
Total cost of revenues 2,619,447   2,399,930 
Gross profit 376,065   1,019,650 
Selling, general and administrative expenses 2,714,342   680,250 
Acquisition costs 434,702   70,530 
(Loss) income from operations (2,772,979)  

Other income (expense):     
Interest expense (19,319)  (1,459)
Other income (expense), net (12,015)  3,404 
(Loss) income before provision for income taxes (2,804,313)  270,815 
Income tax benefit (726,006)  - 
Net (loss) income$(2,078,307) $270,815 
Comprehensive (loss) income$(2,078,307) $

Basic (loss)/earningsper share$(0.12) $0.02 
Diluted (loss)/earnings per share$(0.12) $0.02 
Weighted average common shares outstanding     
Basic 17,294,808   11,282,671 
Diluted 17,294,808   12,286,216 


 March 31,
 December 31,
Current assets     
Cash and cash equivalents$2,999,201  $4,931,302 
Accounts receivable 1,672,072   1,664,862 
Prepaid expenses and other current assets 458,719   276,990 
Total current assets 5,129,992   6,873,154 
Intangible assets, net of accumulated amortization of $201,032 and $0 7,699,075   8,048,968 
Goodwill 7,585,269   7,585,269 
Right-of-use operating lease asset 627,977   672,896 
Property and equipment, net of accumulated depreciation and amortization of $347,886 and $312,320 103,577   105,256 
Other assets 77,100   77,100 
Total assets$21,222,990  $23,362,643 
Current liabilities     
Accounts payable$302,323  $650,499 
Accrued payroll and related liabilities 611,497   524,055 
Commissions payable 250,043   224,250 
Other accrued liabilities 816,536   204,080 
Contract liabilities 149,692   186,835 
Operating lease liability- current 192,128   192,128 
Total current liabilities 2,322,219   1,981,847 
Operating lease liability - non-current 460,505   507,120 
Deferred income taxes 441,498   1,167,504 
Other liabilities 2,296,928   2,265,000 
Total liabilities 5,521,150   5,921,471 
Stockholders' equity     
Common stock at $0.001 and $0.01 par value; 100,000,000 and 30,000,000 shares authorized, 18,882,313 and 12,904,376 shares issued, 17,239,697 and 11,261,760 shares outstanding, as of December 31, 2021 and 2020, respectively 18,987   18,882 
Additional paid-in capital 32,128,334   31,789,464 
Accumulated deficit (15,515,270)  (13,436,963)
Treasury stock, 1,642,616 shares at cost (930,211)  (930,211)
Total stockholders' equity 15,701,840   17,441,172 
Total liabilities and stockholders' equity$21,222,990  $23,362,643 

Non-GAAP Financial Measures
In assessing the performance of our business, management utilizes a variety of financial and performance measures. The key measure is Adjusted EBITDA, a non-GAAP financial measure. We define Adjusted EBITDA as net income (loss) plus depreciation and amortization expense, net interest expense (income), and taxes, as further adjusted to eliminate the impact of, when applicable, expenses that are unusual or non-recurring that we believe do not reflect our core operating results. and non-cash stock-based compensation. We believe that Adjusted EBITDA is meaningful to our investors to enhance their understanding of our financial performance for the current period and our ability to generate cash flows from operations that are available for taxes, capital expenditures and debt service. We understand that Adjusted EBITDA is frequently used by securities analysts, investors and other interested parties as a measure of financial performance and to compare our performance with the performance of other companies that report Adjusted EBITDA. Our calculation of Adjusted EBITDA, however, may not be comparable to similarly titled measures reported by other companies. When assessing our operating performance, investors and others should not consider this data in isolation or as a substitute for net income (loss) calculated in accordance with GAAP. Further, the results presented by Adjusted EBITDA cannot be achieved without incurring the costs that the measure excludes. A reconciliation of net income (loss) to Adjusted EBITDA, the most comparable GAAP measure, is provided below.

Reconciliation of Net (loss) income to Adjusted EBITDA       
(in thousands)Three Months Ended
March 31,
Net (loss) income$(2,078) $271 
Interest expense (income), net 19   (2)
Tax (benefit) expense (726)  - 
Depreciation 13   5 
Amortization 350   - 
EBITDA (2,422)  274 
Non-cash stock-based compensation312   28 
Acquisition Costs 435   71 
Post-employment agreement -   36 
Adjusted EBITDA$(1,675) $408 

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