Vislink Technologies Reports Q2 2020 Financial Results, Completes First Phase of Turnaround
VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
(IN THOUSANDS EXCEPT NET LOSS PER SHARE DATA)
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Revenue | $ | 6,008 | $ | 7,352 | $ | 11,360 | $ | 15,558 | ||||||||
| Cost of revenue and operating expenses | ||||||||||||||||
| Cost of components and personnel | 2,427 | 3,516 | 5,248 | 7,643 | ||||||||||||
| Inventory valuation adjustments | 24 | 42 | 49 | 89 | ||||||||||||
| General and administrative expenses | 3,321 | 5,550 | 9,521 | 10,733 | ||||||||||||
| Research and development expenses | 559 | 866 | 1,215 | 1,792 | ||||||||||||
| Gain on lease termination | — | — | (21 | ) | — | |||||||||||
| Amortization and depreciation | 334 | 588 | 757 | 1,177 | ||||||||||||
| Total cost of revenue and operating expenses | 6,665 | 10,562 | 16,769 | 21,434 | ||||||||||||
| Loss from operations | (657 | ) | (3,210 | ) | (5,409 | ) | (5,876 | ) | ||||||||
| Other income (expense) | ||||||||||||||||
| Changes in fair value of derivative liabilities | (98 | ) | 747 | (81 | ) | 673 | ||||||||||
| Loss on conversion of debentures | — | (48 | ) | — | (48 | ) | ||||||||||
| Gain on settlement of related party obligations | — | — | 331 | — | ||||||||||||
| Interest expense, net | (23 | ) | (1,064 | ) | (49 | ) | (1,414 | ) | ||||||||
| Total other income (expense) | (121 | ) | (365 | ) | 201 | (789 | ) | |||||||||
| Net loss | $ | (778 | ) | $ | (3,575 | ) | $ | (5,208 | ) | $ | (6,665 | ) | ||||
| Basic and diluted loss per share | $ | (0.05 | ) | $ | (10.70 | ) | $ | (0.45 | ) | $ | (20.44 | ) | ||||
| Weighted average number of shares outstanding: | ||||||||||||||||
| Basic and diluted | 14,805 | 334 | 11,460 | 326 | ||||||||||||
| Comprehensive loss: | ||||||||||||||||
| Net loss | $ | (778 | ) | $ | (3,575 | ) | $ | (5,208 | ) | $ | (6,665 | ) | ||||
| Unrealized gain (loss) on currency translation adjustment | (28 | ) | 34 | 249 | 1 | |||||||||||
| Comprehensive loss | $ | (806 | ) | $ | (3,541 | ) | $ | (4,959 | ) | $ | (6,664 | ) | ||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)
| June 30, | December 31, | |||||||
| 2020 | 2019 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash | $ | 5,065 | $ | 1,737 | ||||
| Accounts receivable, net | 4,479 | 6,714 | ||||||
| Inventories, net | 8,180 | 7,674 | ||||||
| Prepaid expenses and other current assets | 874 | 660 | ||||||
| Total current assets | 18,598 | 16,785 | ||||||
| Right of use assets, operating leases | 1,654 | 1,925 | ||||||
| Property and equipment, net | 1,846 | 1,972 | ||||||
| Intangible assets, net | 2,391 | 2,922 | ||||||
| Total assets | $ | 24,489 | $ | 23,604 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 2,789 | $ | 6,784 | ||||
| Accrued expenses | 1,961 | 1,912 | ||||||
| Notes payable | 412 | 339 | ||||||
| Current portion of PPP loan | 424 | — | ||||||
| Operating lease obligations, current | 334 | 821 | ||||||
| Due to related parties | — | 505 | ||||||
| Customer deposits and deferred revenue | 1,323 | 2,821 | ||||||
| Derivative liabilities | 111 | 30 | ||||||
| Total current liabilities | 7,354 | 13,212 | ||||||
| Long-term portion of PPP loan | 744 | — | ||||||
| Operating lease obligations, net of current portion | 1,265 | 1,163 | ||||||
| Total liabilities | 9,363 | 14,375 | ||||||
| Commitments and contingencies (See Note 10) | ||||||||
| Stockholders’ equity | ||||||||
| Preferred stock – $0.00001 par value per share: 10,000,000 shares authorized as of June 30, 2020, and December 31, 2019; 0 shares issued and outstanding as of June 30, 2020, and December 31, 2019 | — | — | ||||||
| Common stock – $0.00001 par value per share, 100,000,000 shares authorized, 16,103,613 and 3,594,548 shares issued and 16,100,954 and 3,591,889 outstanding as of June 30, 2020 and December 31, 2019, respectively | — | — | ||||||
| Additional paid-in capital | 272,727 | 261,871 | ||||||
| Accumulated other comprehensive income | 456 | 207 | ||||||
| Treasury stock, at cost – 2,659 shares at June 30, 2020, and December 31, 2019, respectively | (277 | ) | (277 | ) | ||||
| Accumulated deficit | (257,780 | ) | (252,572 | ) | ||||
| Total stockholders’ equity | 15,126 | 9,229 | ||||||
| Total liabilities and stockholders’ equity | $ | 24,489 | $ | 23,604 | ||||
The accompanying notes are an integral part of these condensed consolidated financial statements.
Reconciliation of GAAP to Non-GAAP Results