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

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