[PART I. Financial Information](index=3&type=section&id=PART%20I.%20Financial%20Information) This section provides Boxlight Corporation's unaudited consolidated condensed financial statements and management's discussion and analysis for the three months ended March 31, 2022 [Item 1. Unaudited Consolidated Condensed Financial Statements](index=3&type=section&id=Item%201.%20Unaudited%20Consolidated%20Condensed%20Financial%20Statements) This section presents Boxlight Corporation's unaudited consolidated condensed financial statements for the three months ended March 31, 2022 and 2021, including statements of operations, balance sheets, changes in stockholders' equity, and cash flows, along with detailed notes on accounting policies, recent acquisitions, debt, equity, and other financial disclosures [Unaudited Consolidated Condensed Statements of Operations and Comprehensive Loss](index=3&type=section&id=Unaudited%20Consolidated%20Condensed%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) This statement details the company's revenues, costs, gross profit, and net loss for the three months ended March 31, 2022 and 2021 Unaudited Consolidated Condensed Statements of Operations and Comprehensive Loss (in thousands) | Metric | 3 Months Ended March 31, 2022 (in thousands) | 3 Months Ended March 31, 2021 (in thousands) | | :----- | :------------------------------------------- | :------------------------------------------- | | Revenues, net | $50,603 | $33,424 | | Cost of revenues | $37,987 | $24,872 | | Gross profit | $12,616 | $8,552 | | Loss from operations | $(3,454) | $(2,034) | | Net loss | $(4,856) | $(5,169) | | Net loss per common share – basic and diluted | $(0.07) | $(0.09) | [Unaudited Consolidated Condensed Balance Sheets](index=4&type=section&id=Unaudited%20Consolidated%20Condensed%20Balance%20Sheets) This statement presents the company's assets, liabilities, and stockholders' equity as of March 31, 2022, and December 31, 2021 Unaudited Consolidated Condensed Balance Sheets (in thousands) | Metric | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :----- | :---------------------------- | :------------------------------- | | Total assets | $193,116 | $201,436 | | Total liabilities | $117,091 | $119,626 | | Total stockholders' equity | $47,516 | $53,301 | - Cash and cash equivalents decreased from **$17,938 thousand** at December 31, 2021, to **$11,265 thousand** at March 31, 2022[16](index=16&type=chunk) [Unaudited Consolidated Condensed Statements of Changes in Stockholders' Equity](index=6&type=section&id=Unaudited%20Consolidated%20Condensed%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) This statement outlines changes in stockholders' equity, including net loss, foreign currency translation, and stock compensation, for the period ended March 31, 2022 Unaudited Consolidated Condensed Statements of Changes in Stockholders' Equity (in thousands) | Metric | December 31, 2021 (in thousands) | March 31, 2022 (in thousands) | | :----- | :------------------------------- | :---------------------------- | | Total Stockholders' Equity | $53,301 | $47,516 | | Net Loss | $(4,856) | | | Foreign currency translation | $(1,772) | | | Stock compensation | $1,135 | | - The decrease in total stockholders' equity was primarily driven by the net loss for the period and foreign currency translation adjustments, partially offset by stock compensation[20](index=20&type=chunk) [Unaudited Consolidated Condensed Statements of Cash Flows](index=7&type=section&id=Unaudited%20Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) This statement details cash flows from operating, investing, and financing activities, showing the net decrease in cash for the three months ended March 31, 2022 and 2021 Unaudited Consolidated Condensed Statements of Cash Flows (in thousands) | Cash Flow Activity | 3 Months Ended March 31, 2022 (in thousands) | 3 Months Ended March 31, 2021 (in thousands) | | :----------------- | :------------------------------------------- | :------------------------------------------- | | Net cash used in operating activities | $(5,423) | $(1,557) | | Net cash used in investing activities | $(526) | $(194) | | Net cash used by financing activities | $(912) | $(747) | | Net decrease in cash and cash equivalents | $(6,673) | $(3,458) | | Cash and cash equivalents, end of the period | $11,265 | $10,002 | [Notes to Unaudited Consolidated Condensed Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Condensed%20Financial%20Statements) This section provides detailed disclosures on accounting policies, recent acquisitions, debt, equity, and other financial information supporting the condensed financial statements [NOTE 1 – ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES](index=8&type=section&id=NOTE%201%20%E2%80%93%20ORGANIZATION%20AND%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note describes Boxlight Corporation's business, revenue recognition policies, and the adoption of new accounting standards - Boxlight Corporation designs, produces, and distributes interactive technology solutions (interactive displays, collaboration software, accessories, professional services) under its Clevertouch and Mimio brands for education, corporate, and government markets[25](index=25&type=chunk) - Revenue is recognized when control of products or services is transferred to customers; product revenue is recognized at shipment, while service revenue (maintenance, subscriptions) is recognized ratably over time[39](index=39&type=chunk)[41](index=41&type=chunk) Revenue by Type (in thousands) | Revenue Type | 3 Months Ended March 31, 2022 (in thousands) | 3 Months Ended March 31, 2021 (in thousands) | | :----------- | :------------------------------------------- | :------------------------------------------- | | Product Revenues: Hardware | $47,294 | $30,761 | | Software | $1,519 | $867 | | Service Revenues: Professional Services | $355 | $270 | | Maintenance and Subscription Services | $1,435 | $1,526 | | **Total** | **$50,603** | **$33,424** | - The company adopted ASU 2016-02 "Leases" on January 1, 2022, recognizing an operating lease right-of-use (ROU) asset of **$3.8 million** and corresponding lease liabilities[65](index=65&type=chunk)[66](index=66&type=chunk) [NOTE 2 – RECENT BUSINESS ACQUISITIONS](index=19&type=section&id=NOTE%202%20%E2%80%93%20RECENT%20BUSINESS%20ACQUISITIONS) This note details the acquisitions of FrontRow Calypso LLC and Interactive Concepts BV, including their financing and strategic impact - On December 31, 2021, Boxlight acquired **100%** of FrontRow Calypso LLC for **$34.7 million**, expanding its communication technology solutions for learning environments[71](index=71&type=chunk)[72](index=72&type=chunk) - The FrontRow acquisition was financed through a new **$68.5 million** term loan credit facility with Whitehawk Finance LLC[73](index=73&type=chunk) - On March 23, 2021, the company acquired **100%** of Interactive Concepts BV for approximately **$3.3 million**, strengthening its distribution in Belgium and Luxembourg[79](index=79&type=chunk) [NOTE 3 – ACCOUNTS RECEIVABLE - TRADE](index=22&type=section&id=NOTE%203%20%E2%80%93%20ACCOUNTS%20RECEIVABLE%20-%20TRADE) This note provides the net trade accounts receivable balance as of March 31, 2022, and December 31, 2021 Accounts Receivable - Trade (in thousands) | Metric | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :----- | :---------------------------- | :------------------------------- | | Accounts receivable – trade, net of allowances | $30,033 | $29,573 | [NOTE 4 – INVENTORIES](index=22&type=section&id=NOTE%204%20%E2%80%93%20INVENTORIES) This note presents the net inventory balance and the reserve for obsolescence as of March 31, 2022, and December 31, 2021 Inventories (in thousands) | Metric | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :----- | :---------------------------- | :------------------------------- | | Inventories, net | $49,094 | $51,591 | | Reserve for inventory obsolescence | $(1,178) | $(599) | [NOTE 5 – PREPAID EXPENSES AND OTHER CURRENT ASSETS](index=23&type=section&id=NOTE%205%20%E2%80%93%20PREPAID%20EXPENSES%20AND%20OTHER%20CURRENT%20ASSETS) This note details prepaid expenses, other current assets, and prepayments to vendors as of March 31, 2022, and December 31, 2021 Prepaid Expenses and Other Current Assets (in thousands) | Metric | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :----- | :---------------------------- | :------------------------------- | | Prepaid expenses and other current assets | $7,913 | $9,444 | | Prepayments to vendors | $6,071 | $7,739 | [NOTE 6 – INTANGIBLE ASSETS](index=23&type=section&id=NOTE%206%20%E2%80%93%20INTANGIBLE%20ASSETS) This note provides the net intangible assets and amortization expense for the three months ended March 31, 2022 Intangible Assets (in thousands) | Metric | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :----- | :---------------------------- | :------------------------------- | | Intangible assets, net of accumulated amortization | $62,075 | $65,532 | - Amortization expense for the three months ended March 31, 2022, was **$2.2 million**, up from **$1.7 million** in the prior year period[86](index=86&type=chunk) [NOTE 7 – LEASES](index=23&type=section&id=NOTE%207%20%E2%80%93%20LEASES) This note outlines the operating lease cost, weighted-average remaining lease term, and discount rate as of March 31, 2022 - Operating lease cost for the three months ended March 31, 2022, was **$469 thousand**[90](index=90&type=chunk) - The weighted-average remaining lease term is **3.8 years**, with a weighted-average discount rate of **15.5%**[91](index=91&type=chunk) [NOTE 8 – ACCOUNTS PAYABLE AND ACCRUED EXPENSE](index=24&type=section&id=NOTE%208%20%E2%80%93%20ACCOUNTS%20PAYABLE%20AND%20ACCRUED%20EXPENSE) This note presents accounts payable and other liabilities as of March 31, 2022, and December 31, 2021 Accounts Payable and Accrued Expense (in thousands) | Metric | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :----- | :---------------------------- | :------------------------------- | | Accounts payable and other liabilities | $26,131 | $33,638 | | Accounts payable | $19,398 | $25,714 | [NOTE 9 – DEBT](index=25&type=section&id=NOTE%209%20%E2%80%93%20DEBT) This note details the company's debt, including the Whitehawk term loan facility, related financing activities, and PPP loan forgiveness Debt (in thousands) | Metric | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :----- | :---------------------------- | :------------------------------- | | Total debt (net of discount) | $51,025 | $51,941 | | Note payable - Whitehawk | $57,875 | $58,500 | - The company entered into a maximum **$68.5 million** term loan credit facility with Whitehawk Finance LLC on December 31, 2021, to finance the FrontRow acquisition and repay existing debt[95](index=95&type=chunk) - On March 29, 2022, the company received a Notice of Events of Default but subsequently amended the Credit Agreement on April 4, 2022, to extend repayment terms for **$8.5 million** and waive certain defaults[96](index=96&type=chunk)[216](index=216&type=chunk) - The PPP loan forgiveness application for **$835,500** was approved on March 2, 2022, with a remaining balance of **$173,100**[107](index=107&type=chunk) [NOTE 10 – DERIVATIVE LIABILITIES](index=31&type=section&id=NOTE%2010%20%E2%80%93%20DERIVATIVE%20LIABILITIES) This note provides information on derivative liabilities related to warrant instruments and their repricing as of March 31, 2022 Derivative Liabilities (in thousands) | Metric | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :----- | :---------------------------- | :------------------------------- | | Derivative liabilities - warrant instruments | $3,073 | $3,064 | - The exercise price of warrants issued to Whitehawk repriced on March 31, 2022, to **$1.19 per share** (from $2.00), increasing the number of shares from **2,043,291 to 3,434,103**[100](index=100&type=chunk)[118](index=118&type=chunk)[119](index=119&type=chunk) [NOTE 11 – INCOME TAXES](index=33&type=section&id=NOTE%2011%20%E2%80%93%20INCOME%20TAXES) This note details the income tax benefit (expense), pretax loss, effective tax rate, and valuation allowance for deferred tax assets Income Taxes (in thousands) | Metric | 3 Months Ended March 31, 2022 (in thousands) | 3 Months Ended March 31, 2021 (in thousands) | | :----- | :------------------------------------------- | :------------------------------------------- | | Income tax benefit (expense) | $86 | $(21) | | Total pretax book income, (loss) | $(4,942) | $(5,148) | - The year-to-date effective tax rate is **(139.3)%** due to no tax benefit for legacy Boxlight entities and full taxation of Sahara entities[122](index=122&type=chunk) - A full valuation allowance is maintained on the company's net deferred tax assets due to a history of cumulative losses in those jurisdictions[124](index=124&type=chunk) [NOTE 12 – EQUITY](index=34&type=section&id=NOTE%2012%20%E2%80%93%20EQUITY) This note describes the classification of preferred stock, outstanding common stock, and shares issued in connection with the Whitehawk loan and RSU vesting - Series B and Series C Preferred Stock are classified as mezzanine or temporary equity due to redemption features not solely within the company's control[133](index=133&type=chunk) - As of March 31, 2022, **65,522,438 shares** of Class A common stock were issued and outstanding[138](index=138&type=chunk) - **528,169 shares** of Class A common stock were issued to Whitehawk in January 2022 in conjunction with the loan[139](index=139&type=chunk) - **1,119,118 restricted stock units** vested and converted into Class A common stock during the three months ended March 31, 2022[142](index=142&type=chunk) [NOTE 13 – STOCK COMPENSATION](index=38&type=section&id=NOTE%2013%20%E2%80%93%20STOCK%20COMPENSATION) This note details total stock compensation expense, unrecognized compensation expense, and the granting of stock options and restricted stock units Stock Compensation Expense (in thousands) | Metric | 3 Months Ended March 31, 2022 (in thousands) | 3 Months Ended March 31, 2021 (in thousands) | | :----- | :------------------------------------------- | :------------------------------------------- | | Total stock compensation expense | $1,135 | $677 | - As of March 31, 2022, there was approximately **$6.3 million** of unrecognized compensation expense related to unvested options, restricted stock units, and warrants, with **$1.9 million** estimated to be recorded in the remaining nine months of 2022[162](index=162&type=chunk) - **494,069 stock options** were granted in Q1 2022 with a weighted average exercise price of **$1.10**[151](index=151&type=chunk) - **2,364,110 Restricted Stock Units (RSUs)** were granted in Q1 2022 with a weighted average grant date fair value of **$1.68**[155](index=155&type=chunk) [NOTE 14 – RELATED PARTY TRANSACTIONS](index=41&type=section&id=NOTE%2014%20%E2%80%93%20RELATED%20PARTY%20TRANSACTIONS) This note describes the management agreement with an entity owned by the CEO and Chairman for consulting services - The company has a management agreement with an entity owned by its CEO and Chairman, Michael Pope, for consulting services, with a management fee of **0.375% of consolidated net revenues**, not to exceed **$250,000 annually**[163](index=163&type=chunk) [NOTE 15 – COMMITMENTS AND CONTINGENCIES](index=41&type=section&id=NOTE%2015%20%E2%80%93%20COMMITMENTS%20AND%20CONTINGENCIES) This note outlines the total open inventory purchase orders and operating lease commitments as of March 31, 2022 - As of March 31, 2022, the total amount of open inventory purchase orders was **$55.5 million**[165](index=165&type=chunk) - The company has operating lease commitments for office building facilities and vehicles with terms extending from 2023 to 2027[164](index=164&type=chunk) [NOTE 16 – CUSTOMER AND SUPPLIER CONCENTRATION](index=42&type=section&id=NOTE%2016%20%E2%80%93%20CUSTOMER%20AND%20SUPPLIER%20CONCENTRATION) This note identifies significant customer and vendor concentrations for the three months ended March 31, 2022 - For the three months ended March 31, 2022, one customer accounted for **10.3%** of the company's consolidated revenues[168](index=168&type=chunk) - For the three months ended March 31, 2022, one vendor accounted for **29%** of the company's total purchases (cost of sales)[168](index=168&type=chunk) [NOTE 17 – SUBSEQUENT EVENTS](index=42&type=section&id=NOTE%2017%20%E2%80%93%20SUBSEQUENT%20EVENTS) This note reports on the resignation of the CFO and the extension of stock options to a board member after the reporting period - Patrick Foley, the Chief Financial Officer, provided notice of his resignation, effective October 4, 2022[169](index=169&type=chunk) - On May 3, 2022, the board granted an extension of previously expired stock options to James Mark Elliott (board member and former CEO) for **577,675 shares**, valued at **$314,000**[170](index=170&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=42&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section discusses Boxlight Corporation's financial performance, including revenue growth, gross profit margin, net loss, and liquidity, for the three months ended March 31, 2022 - Total revenues for the three months ended March 31, 2022, increased by **51.5%** to **$50.6 million**, compared to **$33.4 million** for the same period in 2021, primarily due to the FrontRow acquisition (**$6.5 million** contribution) and increased demand[195](index=195&type=chunk) - Gross profit margin for Q1 2022 was **24.9%**, a **7 basis point reduction** year-over-year, mainly due to additional increases in global freight/shipping costs resulting from supply chain issues[197](index=197&type=chunk)[199](index=199&type=chunk) - Net loss improved to **$4.9 million** in Q1 2022 from **$5.2 million** in Q1 2021[203](index=203&type=chunk) EBITDA and Adjusted EBITDA (in thousands) | Metric | March 31, 2022 (in thousands) | March 31, 2021 (in thousands) | | :----- | :---------------------------- | :---------------------------- | | EBITDA | $(304) | $(2,376) | | Adjusted EBITDA | $1,222 | $1,591 | - As of March 31, 2022, the company had cash and cash equivalents of **$11.3 million**, working capital of **$49.6 million**, and a current ratio of **2.02**, representing a significant improvement from a year ago[210](index=210&type=chunk) - The company will lose its 'emerging growth company' status on January 1, 2023[226](index=226&type=chunk) [Item 3. Quantitative and Qualitative Disclosure About Market Risk](index=54&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) As a smaller reporting company, Boxlight Corporation is exempt from providing quantitative and qualitative disclosures about market risk - The company is exempt from this disclosure requirement as a "smaller reporting company"[227](index=227&type=chunk) [Item 4. Controls and Procedures](index=55&type=section&id=Item%204.%20Controls%20and%20Procedures) This section addresses the ineffectiveness of disclosure controls and procedures due to material weaknesses, while affirming the fair presentation of financial statements - Disclosure controls and procedures were not effective as of March 31, 2022, due to material weaknesses described in the 2021 Annual Report on Form 10-K[229](index=229&type=chunk) - Despite the material weaknesses, management believes the consolidated condensed financial statements fairly present the financial condition, results of operations, and cash flows[230](index=230&type=chunk) - Management has engaged professional services firms to assist with the review of the income tax provision and the preparation of FrontRow financial statements and warrant valuation[232](index=232&type=chunk) [PART II. Other Information](index=36&type=section&id=PART%20II.%20Other%20Information) This section provides additional information including legal proceedings, risk factors, equity sales, defaults, mine safety disclosures, and exhibits [Item 1. Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) Boxlight Corporation reported no legal proceedings for the period - No legal proceedings to report[233](index=233&type=chunk) [Item 1A. Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) This section outlines significant risks including global supply chain disruptions, component shortages, increased freight costs, and geopolitical uncertainties - Global supply chain challenges have impacted the business through movement/delay in production schedules due to component shortages, continued delays in global shipping, and increased shipping costs, reducing gross profit margin[234](index=234&type=chunk) - A global silicon chip supply shortage could potentially cause disruptions in the supply chain, affecting the ability to timely obtain and deliver finished goods[234](index=234&type=chunk) - Heightened uncertainty surrounds global supply chains, markets, and general global economic conditions due to the ongoing conflict between Russia and Ukraine and the continuing COVID-19 pandemic[236](index=236&type=chunk) [Item 2. Unregistered Sale of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sale%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Boxlight Corporation reported no unregistered sales of equity securities or use of proceeds for the period - None[238](index=238&type=chunk) [Item 3. Defaults Upon Senior Securities](index=37&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Boxlight Corporation reported no defaults upon senior securities for the period - None[239](index=239&type=chunk) [Item 4. Mine Safety Disclosures](index=37&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to Boxlight Corporation's business - Not Applicable[240](index=240&type=chunk) [Item 5. Other Information](index=37&type=section&id=Item%205.%20Other%20Information) Boxlight Corporation reported no other information for the period - None[241](index=241&type=chunk) [Item 6. Exhibits](index=38&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed or furnished with the 10-Q report, including warrants, credit agreements, and certifications - Key exhibits include Form of Warrant (4.1), Credit Agreement (10.1), Employment Agreement with Michael Pope (10.2), Notice of Default (10.3), Amendment to Credit Agreement (10.4), Amended and Restated Fee Letter (10.5), and CEO/CFO certifications (31.1, 31.2, 32.1, 32.2)[243](index=243&type=chunk) [Signatures](index=39&type=section&id=Signatures) The report was signed by the Chief Executive Officer and Chief Financial Officer on May 16, 2022 - The report was signed by Michael Pope (Chief Executive Officer) and Patrick Foley (Chief Financial Officer) on May 16, 2022[247](index=247&type=chunk)

Boxlight Corporation (NASDAQ:BOXL) Q1 2022 Earnings Conference Call May 12, 2022 4:30 PM ET Company Participants Michael Pope – Chairman and Chief Executive Officer Patrick Noel Foley – Chief Financial Officer Mark Richard Starkey – President Conference Call Participants Brian Kinstlinger – Alliance Global Partners Jack Vander Aarde – Maxim Group Operator Thank you, and welcome to the Boxlight First Quarter 2022 Earnings Conference Call. This call is being webcast and is available for replay. The remarks to ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2021 OR ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-37564 BOXLIGHT CORPORATION (Exact name of registrant as specified in its charter) Nevada 8211 46-4116523 (State or other juris ...

Call Start: 16:30 January 1, 0000 5:21 PM ET Boxlight Corporation (NASDAQ:BOXL) Q4 2021 Earnings Conference Call March 17, 2022, 4:30 PM ET Company Participants Michael Pope – Chief Executive Officer and Chairman Mark Starkey – President Patrick Foley – Chief Financial Officer Conference Call Participants Scott Buck – H.C. Wainwright Byron Meo – 1031 Private Exchange Brian Kinstlinger – Alliance Global Partners Operator Thank you and welcome to the Boxlight Fourth Quarter and Full Year 2021 Earnings Confere ...

Boxlight Corp (NASDAQ:BOXL) Q3 2021 Earnings Conference Call November 10, 2021 4:30 PM ET Company Participants Michael Pope - CEO & Chairman Mark Starkey - President Patrick Foley - CFO Conference Call Participants Brian Kinstlinger - Alliance Global Partners Jack Aarde - Maxim Group Martin Roth - Ferret Capital Management Operator Thank you, and welcome to the Boxlight Third Quarter 2021 Earnings Conference Call. By now, everyone should have access to the press release issued this afternoon. This call is b ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Nevada 8211 46-4116523 (State or other jurisdiction of (Primary Standard Industrial (I.R.S. Employer incorporation or organization) Classification Code Number) Identification Number) Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☒ Smaller reporting company ☒ Emerging growth company ☒ FORM 10-Q (Mark One) ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period end ...

Boxlight Corp (NASDAQ:BOXL) Q2 2021 Earnings Conference Call August 12, 2021 4:30 PM ET Company Participants Michael Pope - CEO & Chairman Mark Starkey - President Patrick Foley - CFO Conference Call Participants Jacob Silverman - Alliance Global Partners Jack Aarde - Maxim Group Brian Kinstlinger - Alliance Global Partners Operator Thank you, ladies and gentlemen, and welcome to the Boxlight Second Quarter 2021 Earnings Conference Call. By now, everyone should have access to the press release issued this a ...

Revenue Growth - Total revenues for Q2 2021 were $46.8 million, a 500% increase from $7.8 million in Q2 2020, driven by acquisitions and increased demand in the U.S. and Europe[171] - Total revenues for the first half of 2021 were $80.2 million, a 490% increase from $13.6 million in the first half of 2020, with organic revenue growth of 40%[180] Cost of Revenues - Cost of revenues for Q2 2021 was $33.9 million, a 565% increase from $5.1 million in Q2 2020, attributed to acquisitions and rising global freight costs[173] - Cost of revenues for the first half of 2021 was $58.8 million, a 532% increase from $9.3 million in the first half of 2020, driven by acquisitions and increased shipping costs[182] Gross Profit and Margins - Gross profit for Q2 2021 was $12.8 million, with a gross profit margin decrease from 34% to 27% due to increased freight costs and product cost adjustments[174] - Gross profit for the first half of 2021 was $21.4 million, with a gross profit margin decrease from 32% to 27% due to customs and freight expenses[183] Expenses - General and administrative expenses for Q2 2021 were $10.8 million, representing 23% of revenues, compared to $3.2 million and 41% of revenues in Q2 2020[175] - Research and development expenses for Q2 2021 were $481 thousand, or 1% of revenues, up from $285 thousand and 4% of revenues in Q2 2020[176] - Other expense for Q2 2021 was $1.3 million, up from $0.6 million in Q2 2020, primarily due to increased interest expense and losses from debt settlements[177] Net Loss and Income Tax - Net loss for Q2 2021 was $2.2 million, reduced from $1.4 million in Q2 2020, reflecting positive operating income and margin improvements[179] - Income tax expense for the three months ending June 30, 2021, was $2.5 million, compared to no income tax expenses for the same period in 2020[187] - Net loss increased to $7.4 million for the six months ended June 30, 2021, from $3.4 million in 2020, primarily due to lower gross profit margins and increased expenses[188] EBITDA - EBITDA for the six months ended June 30, 2021, was $507 thousand, compared to a loss of $1.848 million in 2020[195] - Adjusted EBITDA for the six months ended June 30, 2021, was $6.953 million, compared to a loss of $672 thousand in 2020[196] Cash and Liquidity - As of June 30, 2021, cash and cash equivalents were $7.4 million, up from $6.1 million a year ago, with a current ratio of 1.52[200] - Net cash used in operating activities for the six months ended June 30, 2021, was $4.6 million, an improvement from $6.2 million in 2020[201] Financing Activities - The company amended its accounts receivable agreement to increase the maximum facility limit amount to $15 million[205] - The company entered into a securities purchase agreement for a $22 million secured convertible note, with a funding amount of $20 million[208] - The company expects to manage through current challenges in equity and debt finance markets by adjusting payment terms with customers and vendors[203] Seasonal Trends and Inventory - The company anticipates that seasonal trends in revenues will reduce as the business grows, with inventory levels peaking before the school year[197] Stock Offerings - The Company completed a public offering of 17,250,000 shares of Class A common stock at a price of $2.00 per share, generating gross proceeds of $34,500,000[210] - The Company also conducted a June Offering of 13,333,333 shares at $0.75 per share, resulting in gross proceeds of $10,000,000, with an additional $1,500,000 from the Over-Allotment Option[210] - Underwriters received a 7% discount on the offerings, totaling approximately $2,415,000 for the July Offering and a similar amount for the June Offering[210] Financial Reporting and Compliance - The Company has no significant off-balance sheet arrangements that could impact its financial condition or liquidity[211] - The Company is classified as an "emerging growth company," allowing it to take advantage of reduced reporting requirements[214] - The Company has elected to defer the adoption of new or revised financial accounting standards until they apply to private companies, potentially affecting comparability with other public companies[217]

Boxlight Corporation (NASDAQ:BOXL) Q1 2021 Earnings Conference Call May 13, 2021 4:30 PM ET Company Participants Michael Pope - Chairman and Chief Executive Officer Mark Starkey - Chief Executive Officer, Clevertouch Patrick Foley - Chief Financial Officer Conference Call Participants Jack Vander Aarde - Maxim Group, LLC Operator Thank you and welcome to the Boxlight First Quarter 2021 Earnings Conference Call. By now, everyone should have access to the press release issued this afternoon. This call is bein ...

Financial Performance - Total revenues for Q1 2021 were $33.4 million, a 484% increase from $5.7 million in Q1 2020, primarily due to the acquisition of Sahara Presentation Systems and increased demand in the U.S. and Europe[166] - Cost of revenues for Q1 2021 was $25.2 million, a 509% increase from $4.1 million in Q1 2020, driven by higher product costs and increased customs/freight costs due to supply chain challenges[167] - Gross profit for Q1 2021 was $8.2 million, with a gross profit margin of 25%, down from 28% in Q1 2020, influenced by customs and freight expenses and purchase accounting adjustments from the Sahara acquisition[168] - Net loss for Q1 2021 was $5.2 million, compared to a net loss of $1.9 million in Q1 2020, attributed to lower gross profit margins and increased interest expenses[172] - Adjusted EBITDA for Q1 2021 was $1.6 million, compared to an adjusted EBITDA loss of $677 thousand in Q1 2020, indicating improved operational efficiency[178] Expenses - General and administrative expenses for Q1 2021 were $10.0 million, representing 30% of revenue, compared to $3.9 million and 69% of revenue in Q1 2020, reflecting additional personnel costs from the Sahara acquisition[169] - Research and development expenses for Q1 2021 were $474 thousand, or 1% of revenue, up from $316 thousand and 5% of revenue in Q1 2020, primarily due to increased contract services for software development[170] Cash Flow and Financing - As of March 31, 2021, the company had cash and cash equivalents of $10.0 million and a working capital balance of $21.8 million, a significant improvement from a working capital deficit of $(7.1) million a year ago[181] - For the three months ended March 31, 2021, net cash used in operating activities was $1.6 million, compared to $890 thousand for the same period in 2020[182] - The company financed operations in 2021 with a new $20.0 million tranche of debt and a pre-existing accounts receivable financing arrangement of up to $6.0 million[184] - The company issued a $22.0 million secured convertible note to Lind Global, with a 4% interest rate, repayable in 22 equal installments[187] - The company has limited credit available from major vendors and is required to prepay for most inventory purchases, constraining cash liquidity[186] Acquisitions and Market Strategy - The company acquired Sahara Presentation Systems for a total purchase price of approximately $94.9 million, including £52.0 million in cash and £22.0 million in convertible preferred stock[148] - The company plans to expand its reseller partner network and hire new sales representatives to enhance market penetration and reach[147] Seasonal Trends - Seasonal trends affect financial performance, with inventory levels peaking in Q2 as products are prepared for the school year, leading to significant declines in Q1[179] Public Offerings and Growth Status - The company entered into a public offering on July 31, 2020, selling 17,250,000 shares of Class A common stock for gross proceeds of $34.5 million[189] - On June 11, 2020, the company completed a public offering of 13,333,333 shares at a price of $0.75 per share, raising gross proceeds of $10.0 million, with an additional $1.5 million from an overallotment option[191] - The company is classified as an "emerging growth company," allowing it to take advantage of reduced reporting requirements[197] Financial Management - The company expects to manage through current challenges in equity and debt finance markets by adjusting payment terms with customers and vendors[185] - The company has no significant off-balance sheet arrangements that could affect its financial condition or liquidity[193]