UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number: 001-38358 INSEEGO CORP. (Exact name of registrant as specified in its charter) Delaware 81-3377646 (State or Other Jurisdiction of Incorpo ...

Inseego Corp. (NASDAQ:INSG) Q3 2021 Earnings Conference Call November 3, 2021 5:00 PM ET Company Participants Dan Mondor – Chairman and Chief Executive Officer Ashish Sharma – President Bob Barbieri – Chief Financial Officer Conference Call Participants Lance Vitanza – Cowen & Co. Scott Searle – Roth Capital Operator Hello, and welcome to Inseego Corp's Third Quarter 2021 Financial Results Conference Call. Please note, today's event is being recorded. [Operator Instructions] On the call today are Dan Mondor ...

PART I—FINANCIAL INFORMATION [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited condensed consolidated financial statements, including balance sheets, statements of operations, comprehensive loss, stockholders' deficit, cash flows, and related notes [Condensed Consolidated Balance Sheets (Unaudited)](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) Condensed consolidated balance sheets reflect financial position, showing decreased assets, liabilities, and stockholders' deficit Balance Sheet Summary | Metric (in thousands) | June 30, 2021 | December 31, 2020 | | :-------------------- | :------------ | :---------------- | | Total assets | $224,740 | $227,394 | | Total liabilities | $233,646 | $255,293 | | Total stockholders' deficit | $(8,906) | $(27,899) | - Assets held for sale **increased significantly** to **$42,450 thousand** as of June 30, 2021, from zero at December 31, 2020, related to the expected sale of Ctrack South Africa operations[9](index=9&type=chunk) [Condensed Consolidated Statements of Operations (Unaudited)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20(Unaudited)) Statements of operations show decreased net revenues but significantly reduced net loss due to lower debt extinguishment losses Statements of Operations Summary | Metric (in thousands) | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total net revenues | $65,693 | $80,689 | $123,290 | $137,529 | | Gross profit | $20,349 | $22,000 | $38,824 | $39,227 | | Operating loss | $(10,520) | $(5,337) | $(26,714) | $(13,077) | | Net loss attributable to Inseego Corp. | $(13,043) | $(74,830) | $(30,215) | $(93,028) | | Net loss per common share (Basic and Diluted) | $(0.14) | $(0.78) | $(0.31) | $(1.01) | - Loss on debt conversion and extinguishment, net, was **significantly lower** in 2021 (**$0** for Q2, **$432k** for H1) compared to 2020 (**$67.2M** for Q2, **$75.2M** for H1), **contributing to the reduced net loss**[11](index=11&type=chunk) [Condensed Consolidated Statements of Comprehensive Loss (Unaudited)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss%20(Unaudited)) Comprehensive loss statements show net loss adjusted for foreign currency translation, indicating substantial improvement from prior year Statements of Comprehensive Loss Summary | Metric (in thousands) | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(13,043) | $(74,836) | $(30,001) | $(93,002) | | Foreign currency translation adjustment | $2,425 | $1,576 | $693 | $(11,904) | | Total comprehensive loss | $(10,618) | $(73,260) | $(29,308) | $(104,906) | [Condensed Consolidated Statements of Stockholders' Deficit (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Deficit%20(Unaudited)) Stockholders' deficit statements detail changes in equity components, including net loss, foreign currency translation, share-based compensation, and stock issuances Stockholders' Deficit Summary | Metric (in thousands) | Balance, December 31, 2020 | Balance, June 30, 2021 | | :-------------------- | :------------------------- | :--------------------- | | Common Stock Amount | $99 | $103 | | Additional Paid-in Capital | $711,487 | $761,412 | | Accumulated Deficit | $(732,422) | $(764,150) | | Total Stockholders' Deficit | $(27,899) | $(8,906) | - Additional paid-in capital **increased by $49.9 million** from December 31, 2020, to June 30, 2021, **driven by** share-based compensation, stock option exercises, and common shares issued in public offerings and debt conversions[19](index=19&type=chunk) [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Operating cash flows shifted to negative, investing activities used cash, and financing activities provided cash from a public offering Cash Flow Activities Summary | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash (used in) provided by operating activities | $(12,030) | $4,662 | | Net cash used in investing activities | $(17,434) | $(13,233) | | Net cash provided by financing activities | $29,511 | $41,144 | | Net increase in cash, cash equivalents and restricted cash | $368 | $30,026 | | Cash, cash equivalents and restricted cash, end of period | $40,383 | $42,100 | - The **shift in operating cash flow from positive to negative** in H1 2021 was **mainly due to the net loss incurred and net cash used by working capital**, **partially offset by non-cash adjustments** like depreciation and share-based compensation[208](index=208&type=chunk) - Financing activities in H1 2021 were **primarily driven by net proceeds from the ATM Offering ($29.4 million)** and stock option exercises, while H1 2020 included proceeds from 2025 Notes and Series E Preferred Stock issuance[211](index=211&type=chunk) [Notes to Condensed Consolidated Financial Statements (Unaudited)](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Notes provide essential context and detailed breakdowns for financial statements, covering accounting policies, estimates, segments, and line items [1. Basis of Presentation](index=10&type=section&id=1.%20Basis%20of%20Presentation) Outlines financial statement preparation, highlights COVID-19 and semiconductor risks, details liquidity, and describes revenue recognition across IoT & Mobile and Enterprise SaaS segments - The COVID-19 pandemic and global semiconductor shortage **pose ongoing risks**, potentially impacting supply chains and demand, though the semiconductor shortage has **not materially impacted** the Company directly as of June 30, 2021[26](index=26&type=chunk)[27](index=27&type=chunk) Liquidity and Capital Resources | Liquidity Metric (in thousands) | June 30, 2021 | | :------------------------------ | :------------ | | Available cash and cash equivalents | $36,700 | | Working capital | $32,400 | - The company generates revenue from IoT & Mobile Solutions (4G LTE, 5G products, MiFi™, Skyus, Inseego Subscribe™) and Enterprise SaaS Solutions (Ctrack telematics platforms)[40](index=40&type=chunk)[41](index=41&type=chunk)[43](index=43&type=chunk) [2. Financial Statement Details](index=12&type=section&id=2.%20Financial%20Statement%20Details) Provides detailed breakdown of inventories and accrued expenses, showing changes between June 30, 2021, and December 31, 2020 Inventories Breakdown | Inventories (in thousands) | June 30, 2021 | December 31, 2020 | | :------------------------- | :------------ | :---------------- | | Finished goods | $24,881 | $27,009 | | Raw materials and components | $2,663 | $6,943 | | Total inventories | $27,544 | $33,952 | Accrued Expenses and Other Current Liabilities | Accrued Expenses (in thousands) | June 30, 2021 | December 31, 2020 | | :------------------------------ | :------------ | :---------------- | | Payroll and related expenses | $9,063 | $6,006 | | Other | $3,835 | $6,540 | | Total accrued expenses and other current liabilities | $22,874 | $23,373 | [3. Fair Value Measurement of Assets and Liabilities](index=12&type=section&id=3.%20Fair%20Value%20Measurement%20of%20Assets%20and%20Liabilities) Explains fair value measurement hierarchy and details valuation of Level 3 interest make-whole payment derivative liability for 2025 Notes - The fair value of the interest make-whole payment derivative liability for the 2025 Notes was determined using a Monte Carlo model, with key assumptions including **50% volatility** and a **0.63% risk-free rate** as of June 30, 2021[50](index=50&type=chunk) Level 3 Liabilities (Interest Make-Whole Payment) | Level 3 Liabilities (in thousands) | December 31, 2020 | June 30, 2021 | | :--------------------------------- | :---------------- | :------------ | | Interest make-whole payment | $4,898 | $2,929 | - A **$1.8 million** gain on the change in fair value of the embedded derivative was recorded in other income, net, for the six months ended June 30, 2021[56](index=56&type=chunk) [4. Business Divestiture](index=14&type=section&id=4.%20Business%20Divestiture) Company agreed to sell Ctrack South Africa operations for $36.6 million, with assets classified as held for sale; sale completed July 30, 2021 - On February 24, 2021, Inseego Corp. agreed to sell its Ctrack South Africa operations for **528.9 million ZAR** (approximately **$36.6 million USD**)[58](index=58&type=chunk) Ctrack South Africa Assets and Liabilities Held for Sale | Ctrack South Africa (in thousands) | Balance as of June 30, 2021 | | :--------------------------------- | :-------------------------- | | Total assets held for sale | $42,450 | | Total liabilities related to assets held for sale | $11,132 | - The sale was **completed on July 30, 2021**, with **initial cash proceeds** of approximately **$36.6 million** received[34](index=34&type=chunk) [5. Debt](index=15&type=section&id=5.%20Debt) Details debt structure, including Term Loan repayment, 2025 Notes issuance, and 2022 Notes conversion; $161.9 million of 2025 Notes outstanding - The Term Loan was fully repaid on May 12, 2020, using proceeds from the 2025 Notes offering, including **$47.5 million** in principal[65](index=65&type=chunk) - The company issued **$100.0 million** in 2025 Notes through a public offering and **$80.4 million** in 2025 Notes through private exchange transactions for 2022 Notes[70](index=70&type=chunk)[71](index=71&type=chunk) 2025 Notes Debt Details | 2025 Notes (in thousands) | June 30, 2021 | December 31, 2020 | | :------------------------ | :------------ | :---------------- | | Principal | $161,898 | $166,898 | | Net carrying amount | $159,120 | $165,147 | | Effective interest rate (H1) | **4.16%** | N/A | - During H1 2021, approximately **$5.0 million** in principal amount of 2025 Notes were converted into **428,669 shares** of common stock[72](index=72&type=chunk) [6. Share-based Compensation](index=19&type=section&id=6.%20Share-based%20Compensation) Share-based compensation expense for Q2 and H1 2021 was $2.3 million and $11.4 million, respectively, with summarized stock option and RSU activity Share-based Compensation Expense | Share-based Compensation (in thousands) | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :-------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total | $2,307 | $4,428 | $11,405 | $5,981 | Stock Options Activity | Stock Options Activity | December 31, 2020 | June 30, 2021 | | :--------------------- | :---------------- | :------------ | | Outstanding | 8,479,979 | 8,571,014 | | Exercisable | N/A | 4,596,393 | Restricted Stock Units Activity | Restricted Stock Units Activity | December 31, 2020 | June 30, 2021 | | :------------------------------ | :---------------- | :------------ | | Non-vested | 417,105 | 419,619 | [7. Earnings Per Share](index=19&type=section&id=7.%20Earnings%20Per%20Share) Explains basic and diluted EPS calculation, noting exclusion of anti-dilutive securities like convertible notes, stock options, and RSUs during loss periods - For the three and six months ended June 30, 2021, **25,831,419 shares** related to convertible notes, stock options, and RSUs were excluded from diluted EPS computation because their effect would have been anti-dilutive[97](index=97&type=chunk) [8. Private Placements and Public Offering](index=20&type=section&id=8.%20Private%20Placements%20and%20Public%20Offering) Details equity financing activities, including January 2021 ATM Offering generating $29.4 million net proceeds, and Series E Preferred Stock transactions - In January 2021, the company sold **1,516,073 shares** of common stock through an ATM Offering, generating **net proceeds of $29.4 million**[100](index=100&type=chunk) - On March 6, 2020, the company issued **25,000 shares** of Series E Preferred Stock for **$25.0 million**, and later repurchased **2,330 shares** for **$2.4 million** on May 12, 2020[101](index=101&type=chunk)[102](index=102&type=chunk) [9. Geographic Information and Concentrations of Risk](index=20&type=section&id=9.%20Geographic%20Information%20and%20Concentrations%20of%20Risk) Provides net revenue breakdown by geographic region and highlights significant customer and vendor concentrations, indicating reliance on key customers Net Revenues by Geographic Region | Geographic Region (in thousands) | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2021 | | :------------------------------- | :------------------------------- | :----------------------------- | | United States and Canada | $51,473 | $94,209 | | South Africa | $7,790 | $14,898 | | Other | $6,430 | $14,183 | | Total | $65,693 | $123,290 | - For the three months ended June 30, 2021, two customers **accounted for 68.0%** of net revenues[104](index=104&type=chunk)[106](index=106&type=chunk) - For the six months ended June 30, 2021, two customers **accounted for 65.1%** of net revenues[104](index=104&type=chunk)[106](index=106&type=chunk) - As of June 30, 2021, two customers and one vendor **accounted for 35.6%**, **12.9%**, and **11.3%** of accounts receivable, net, respectively[106](index=106&type=chunk) [10. Commitments and Contingencies](index=21&type=section&id=10.%20Commitments%20and%20Contingencies) Addresses legal proceedings, including patent infringement and RER settlement, with management believing no material adverse effect on financial condition - The company is involved in patent infringement lawsuits and other legal actions, but believes liabilities from these matters will **not have a material adverse effect**[107](index=107&type=chunk)[109](index=109&type=chunk) - In July 2020, the company issued **89,928 shares** of common stock to former RER stockholders, satisfying all remaining liabilities under a settlement agreement[108](index=108&type=chunk) [11. Leases](index=21&type=section&id=11.%20Leases) Details lease accounting for operating leases as lessee and lessor, outlining right-of-use assets, lease liabilities, and future minimum lease payments Lease Financial Metrics | Lease Metrics (in thousands) | June 30, 2021 | | :--------------------------- | :------------ | | Right-of-use assets | $8,300 | | Lease liabilities | $9,200 | | Weighted-average remaining lease term | **5.5 years** | | Weighted-average discount rate | **9.1%** | Future Minimum Operating Lease Payments Schedule | Future Minimum Operating Lease Payments (in thousands) | Amount | | :------------------------------------- | :----- | | 2021 (remainder) | $1,231 | | 2022 | $2,282 | | 2023 | $1,959 | | 2024 | $1,806 | | 2025 | $1,652 | | Thereafter | $2,813 | | Total minimum operating lease payments | $11,743 | [12. Income Taxes](index=22&type=section&id=12.%20Income%20Taxes) Income tax provision for H1 2021 was $0.4 million, primarily due to foreign and state taxes, with full valuation allowances; American Rescue Plan Act not expected to materially impact tax rate Income Tax Provision (Benefit) | Income Tax (in thousands) | Three Months Ended June 30, 2021 | Three Months Ended June 30, 2020 | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Income tax provision (benefit) | $228 | $(115) | $449 | $(24) | - The company's income tax expense differs from statutory rates **primarily due to full valuation allowances** at its U.S.-based entities and many foreign subsidiaries[119](index=119&type=chunk) - The American Rescue Plan Act, 2021, is **not expected to have a material impact** on the company's effective tax rate or income tax expense for the year ending December 31, 2021[121](index=121&type=chunk) [13. Subsequent Events](index=24&type=section&id=13.%20Subsequent%20Events) Completed Ctrack South Africa sale on July 30, 2021, receiving $36.6 million cash proceeds; estimated $4.4 million gain expected in Q3 2021 - The sale of Ctrack South Africa was **completed on July 30, 2021**, with **initial cash proceeds** of approximately **$36.6 million**[124](index=124&type=chunk) - An **estimated gain** of approximately **$4.4 million** from the sale is expected to be recognized as other income, net, in the condensed consolidated results of operations during the three months ended September 30, 2021[124](index=124&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion and analysis of financial condition and results of operations, covering forward-looking statements, business overview, revenue, influencing factors, accounting policies, performance, liquidity, and cash flows [Forward Looking Statements](index=25&type=section&id=Forward%20Looking%20Statements) Cautionary note on forward-looking statements, outlining risks and uncertainties that could cause actual results to differ materially from projections - Key risk factors include the ability to compete in wireless broadband and asset management, successful product development (especially 5G NR), customer concentration, debt refinancing, supply chain reliance (semiconductors), impact of COVID-19, and geopolitical instability[127](index=127&type=chunk)[130](index=130&type=chunk) - The company disclaims any undertaking to publicly update or revise forward-looking statements[126](index=126&type=chunk) [Business Overview](index=27&type=section&id=Business%20Overview) Inseego Corp. leads in 4G/5G wireless, IIoT, and cloud solutions, recently completing the sale of Ctrack South Africa operations for $36.6 million - Inseego Corp. **specializes in** 4G and 5G NR fixed and mobile wireless solutions, IIoT, and cloud solutions, with products designed and developed in the U.S[132](index=132&type=chunk) - The company **completed the sale** of its Ctrack South Africa operations on July 30, 2021, for approximately **$36.6 million USD**[134](index=134&type=chunk)[135](index=135&type=chunk) [Our Sources of Revenue](index=27&type=section&id=Our%20Sources%20of%20Revenue) Generates revenue from intelligent wireless hardware (MiFi, Skyus) for mobile and IIoT markets, and SaaS solutions (Ctrack, Inseego Subscribe), classified into IoT & Mobile and Enterprise SaaS - Revenue sources include intelligent wireless 4G and 5G hardware (fixed wireless routers, gateways, mobile hotspots, USB modems) for mobile communications and IIoT markets, and SaaS platforms for fleet management, telematics, and subscription management[136](index=136&type=chunk)[140](index=140&type=chunk) - Products are sold under MiFi and Skyus brands, with MiFi customers **primarily wireless operators** (Verizon, AT&T, T-Mobile), and IIoT products sold through direct sales, VARs, and distributors to transportation, industrial, and government sectors[137](index=137&type=chunk)[138](index=138&type=chunk)[139](index=139&type=chunk) - Revenue is classified into IoT & Mobile Solutions (including Inseego Subscribe) and Enterprise SaaS Solutions (Ctrack platforms)[141](index=141&type=chunk) [Factors Which May Influence Future Results of Operations](index=28&type=section&id=Factors%20Which%20May%20Influence%20Future%20Results%20of%20Operations) Future results influenced by economic conditions, competition, 5G adoption, supply chain, pricing, and COVID-19; operating costs driven by R&D, sales, marketing, and G&A - Future net revenues are **influenced by** economic environment, competition in telematics and 5G, acceptance in new vertical markets, 5G infrastructure deployment and adoption, supply chain for semiconductors, product pricing, COVID-19 impact, and the Ctrack South Africa sale[142](index=142&type=chunk)[145](index=145&type=chunk) - Cost of net revenues includes manufacturing, distribution, SaaS delivery, warranty, and inventory adjustments, which are impacted by product demand[147](index=147&type=chunk) - Operating costs **consist of** R&D (5G product development), sales and marketing (5G product promotion), and general and administrative expenses (corporate functions, public company compliance, legal)[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk) [Critical Accounting Policies and Estimates](index=29&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) No material changes to critical accounting policies and estimates since the December 31, 2020, Form 10-K filing - **No material changes** to critical accounting policies and estimates have occurred since the last Form 10-K filing[153](index=153&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Comparative analysis of financial performance for Q2 and H1 2021 versus 2020, detailing changes in revenues, costs, gross profit, and operating expenses [Three Months Ended June 30, 2021 Compared to Three Months Ended June 30, 2020](index=30&type=section&id=Three%20Months%20Ended%20June%2030,%202021%20Compared%20to%20Three%20Months%20Ended%20June%2030,%202020) Net revenues decreased by 18.6% due to lower IoT & Mobile sales, offset by Enterprise SaaS growth; gross margin improved, and net loss significantly decreased Results of Operations Summary | Metric (in thousands) | June 30, 2021 | June 30, 2020 | Change ($) | Change (%) | | :-------------------- | :------------ | :------------ | :--------- | :--------- | | Total net revenues | $65,693 | $80,689 | $(14,996) | **(18.6%)** | | IoT & Mobile Solutions | $51,836 | $69,314 | $(17,478) | **(25.2%)** | | Enterprise SaaS Solutions | $13,857 | $11,375 | $2,482 | **21.8%** | | Gross profit | $20,349 | $22,000 | $(1,651) | **(7.5%)** | | Gross margin | **31.0%** | **27.3%** | **3.7 pp** | | | Net loss attributable to Inseego Corp. | $(13,043) | $(74,830) | $61,787 | **82.6%** | - The **decrease in IoT & Mobile Solutions revenue** was **mainly due to** lower LTE gigabit hotspot sales as COVID-19 demand eased, partially offset by increased 5G hotspot sales and Inseego Subscribe subscriber growth[155](index=155&type=chunk) - Operating expenses (R&D, S&M, G&A) **increased due to** 5G product development, marketing, and legal expenses, partially offset by timing of bonus grants[160](index=160&type=chunk)[161](index=161&type=chunk)[163](index=163&type=chunk) [Six Months Ended June 30, 2021 Compared to Six Months Ended June 30, 2020](index=32&type=section&id=Six%20Months%20Ended%20June%2030,%202021%20Compared%20to%20Six%20Months%20Ended%20June%2030,%202020) Total net revenues decreased by 10.4% due to IoT & Mobile decline, offset by Enterprise SaaS growth; gross margin improved, and net loss significantly reduced Results of Operations Summary | Metric (in thousands) | June 30, 2021 | June 30, 2020 | Change ($) | Change (%) | | :-------------------- | :------------ | :------------ | :--------- | :--------- | | Total net revenues | $123,290 | $137,529 | $(14,239) | **(10.4%)** | | IoT & Mobile Solutions | $94,795 | $111,729 | $(16,934) | **(15.2%)** | | Enterprise SaaS Solutions | $28,495 | $25,800 | $2,695 | **10.4%** | | Gross profit | $38,824 | $39,227 | $(403) | **(1.0%)** | | Gross margin | **31.5%** | **28.5%** | **3.0 pp** | | | Net loss attributable to Inseego Corp. | $(30,215) | $(93,028) | $62,813 | **67.5%** | - The **decrease in IoT & Mobile Solutions revenue** was **primarily due to** lower enterprise and carrier offerings and reduced LTE gigabit hotspot sales, partially offset by increased 5G hotspot sales and Inseego Subscribe growth[172](index=172&type=chunk) - Research and development expenses **increased by $7.5 million**, sales and marketing by **$3.4 million**, and general and administrative by **$1.5 million**, **mainly due to** 5G product programs, marketing, and bonus grants[177](index=177&type=chunk)[179](index=179&type=chunk)[180](index=180&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2021, the company had $36.7 million cash and $32.4 million working capital; recent financing includes Series E Preferred Stock, 2025 Notes, and ATM Offering, with management expecting sufficient liquidity Liquidity and Capital Resources | Liquidity Metric (in thousands) | June 30, 2021 | | :------------------------------ | :------------ | | Available cash and cash equivalents | $36,700 | | Working capital | $32,400 | | Outstanding 2025 Notes principal | $161,900 | - The company raised **$29.4 million** in **net proceeds** from an ATM Offering in January 2021[192](index=192&type=chunk) - The sale of Ctrack South Africa, **completed on July 30, 2021**, provided **initial cash proceeds** of approximately **$36.6 million**, **further enhancing liquidity**[193](index=193&type=chunk) - Management believes current cash and anticipated cash flows from operations will be **sufficient for the next twelve months**, but notes risks if operating plans are not met or unforeseen expenditures occur[194](index=194&type=chunk) [Contractual Obligations and Commitments](index=34&type=section&id=Contractual%20Obligations%20and%20Commitments) No material changes in contractual obligations occurred during the second quarter of 2021 - **No material changes** in contractual obligations occurred in the second quarter of 2021[196](index=196&type=chunk) [Convertible Notes](index=34&type=section&id=Convertible%20Notes) Details 2025 Notes terms: $180.4 million aggregate principal, 3.25% annual interest, maturing May 1, 2025, convertible into common stock at 79.2896 shares per $1,000 principal - The 2025 Notes, **totaling $180.4 million** in aggregate principal, **mature on May 1, 2025**, and **bear an annual interest rate of 3.25%**[197](index=197&type=chunk)[198](index=198&type=chunk)[200](index=200&type=chunk) - Holders can convert notes into common stock at an **initial conversion rate of 79.2896 shares** per **$1,000 principal amount** (approx. **$12.61 per share**)[201](index=201&type=chunk)[202](index=202&type=chunk) - The notes include an interest make-whole payment feature under certain conversion conditions and are **redeemable by the company** after May 6, 2023, **if specific stock price thresholds are met**[204](index=204&type=chunk)[206](index=206&type=chunk) [Historical Cash Flows](index=35&type=section&id=Historical%20Cash%20Flows) Operating cash flows used $12.0 million in H1 2021, investing activities used $17.4 million, and financing activities provided $29.5 million, largely from ATM Offering Historical Cash Flows Summary | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2021 | Six Months Ended June 30, 2020 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash (used in) provided by operating activities | $(12,030) | $4,662 | | Net cash used in investing activities | $(17,434) | $(13,233) | | Net cash provided by financing activities | $29,511 | $41,144 | - The **shift to net cash used in operating activities** in H1 2021 was **primarily due to the net loss incurred and net cash used by working capital**, partially offset by non-cash adjustments[208](index=208&type=chunk) - Investing activities continued to use cash, **primarily for purchases of property, plant, and equipment and capitalization of software development costs**, **largely in support of 5G products and services**[210](index=210&type=chunk) [Off-Balance Sheet Arrangements](index=36&type=section&id=Off-Balance%20Sheet%20Arrangements) The company does not engage in any off-balance sheet arrangements - The company **does not engage in any off-balance sheet arrangements**[212](index=212&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Discusses market risks, primarily foreign currency exchange risk from international operations, with Ctrack South Africa divestiture expected to decrease this risk [Foreign Currency Exchange Risk](index=36&type=section&id=Foreign%20Currency%20Exchange%20Risk) Exposed to foreign currency exchange risk from South Africa and Europe operations; 23.6% of H1 2021 revenue in foreign currencies; risk expected to decrease post-Ctrack South Africa divestiture - Sales denominated in foreign currencies **constituted approximately 23.6%** of total revenue for the six months ended June 30, 2021[215](index=215&type=chunk) - A hypothetical **10%** change in foreign functional currency exchange rates **would have increased or decreased revenue by approximately $2.8 million** for H1 2021[215](index=215&type=chunk) - The company **expects its foreign exchange risk to decrease** with the completion of the Ctrack South Africa operations divestiture[215](index=215&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Confirms effectiveness of disclosure controls and procedures as of June 30, 2021, with no material changes in internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=36&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2021 - The company's disclosure controls and procedures were evaluated and **deemed effective as of June 30, 2021**[218](index=218&type=chunk) [Changes in Internal Control Over Financial Reporting](index=37&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) No material changes in internal control over financial reporting occurred during the three months ended June 30, 2021 - **No material changes in internal control over financial reporting occurred** during the three months ended June 30, 2021[219](index=219&type=chunk) PART II—OTHER INFORMATION [Item 1. Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) Incorporates legal proceedings discussion from Note 10, reiterating belief that outcomes will not have a material adverse effect on business - The disclosure on legal proceedings in Note 10 is **incorporated by reference**[221](index=221&type=chunk) - The company believes the **ultimate outcome of its legal actions will not have a material adverse effect** on its business, results of operations, financial condition, or cash flows[222](index=222&type=chunk) [Item 1A. Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors since prior SEC filings, but existing and unknown risks could still materially affect operations and financial condition - **No material changes** to risk factors have occurred since the previous Form 10-K and other SEC filings[223](index=223&type=chunk) - **Existing and additional unknown risks could materially and adversely affect** the company's results of operations, financial condition, or prospects[223](index=223&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities or use of proceeds to report - **No information to report** for unregistered sales of equity securities and use of proceeds[224](index=224&type=chunk) [Item 3. Defaults Upon Senior Securities](index=38&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities to report - **No information to report** for defaults upon senior securities[225](index=225&type=chunk) [Item 4. Mine Safety Disclosures](index=38&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Mine Safety Disclosures are **not applicable**[226](index=226&type=chunk) [Item 5. Other Information](index=38&type=section&id=Item%205.%20Other%20Information) No other information to report - **No other information to report**[227](index=227&type=chunk) [Item 6. Exhibits](index=39&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed as part of the Form 10-Q, including various agreements, certificates of incorporation, and certifications - The **exhibits include** the Share Purchase Agreement for Ctrack South Africa, Amended and Restated Certificate of Incorporation, and certifications by the Principal Executive Officer and Principal Financial Officer[229](index=229&type=chunk) SIGNATURES Contains signatures of CEO and Principal Financial Officer, certifying the Form 10-Q report - The report is **signed by** Dan Mondor, Chief Executive Officer, and Wei Ding, Vice President & Corporate Controller (Principal Financial Officer)[232](index=232&type=chunk)

Inseego Corporation (NASDAQ:INSG) Q2 2021 Earnings Conference Call August 4, 2021 5:00 PM ET Corporate Participants Dan Mondor - Chairman and Chief Executive Officer Ashish Sharma - President Bob Barbieri - Interim Chief Financial Officer ConferenceCall Participants John Marchetti - Stifel Lance Vitanza - Cowen and Company Daniel Park - Canaccord Genuity Aditya Dagaonkar - Northland Capital Operator Hello and welcome to Inseego Corp.'s Second Quarter 2021 Financial Results Conference Call. Please note, toda ...

PART I—FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) In Q1 2021, Inseego Corp. reported slightly increased net revenues, a narrowed net loss, and strengthened cash, with assets held for sale [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$251.4 million** by March 31, 2021, driven by assets held for sale, while stockholders' deficit significantly improved Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2021 (Unaudited) | December 31, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $54,030 | $40,015 | | Assets held for sale | $41,696 | $— | | Total current assets | $162,416 | $114,108 | | Total assets | $251,389 | $227,394 | | **Liabilities & Stockholders' Deficit** | | | | Total current liabilities | $84,712 | $75,712 | | 2025 Notes, net | $158,620 | $165,147 | | Total liabilities | $252,852 | $255,293 | | Total stockholders' deficit | ($1,463) | ($27,899) | - Assets and liabilities held for sale, valued at **$41.7 million** and **$10.1 million** respectively, relate to the expected sale of the Ctrack South Africa operations[9](index=9&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q1 2021 net revenues increased slightly, gross profit improved, but operating loss widened due to higher R&D and S&M expenses Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Total net revenues | $57,597 | $56,840 | | Gross profit | $18,473 | $17,227 | | Operating loss | ($16,196) | ($7,740) | | Net loss attributable to Inseego Corp. | ($17,173) | ($18,198) | | Net loss per common share (Basic and diluted) | ($0.18) | ($0.20) | Revenue by Segment (in thousands) | Segment | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | IoT & Mobile Solutions | $42,959 | $42,415 | | Enterprise SaaS Solutions | $14,638 | $14,425 | - Operating expenses increased significantly year-over-year, with Research and development up **77%** to **$14.6 million** and Sales and marketing up **26%** to **$11.0 million**[11](index=11&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2021 saw positive operating cash flow, significant cash used in investing, and substantial cash provided by financing activities Summary of Cash Flows (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $973 | $328 | | Net cash used in investing activities | ($9,396) | ($4,857) | | Net cash provided by financing activities | $29,547 | $26,314 | | **Net increase in cash** | **$19,535** | **$18,467** | - Financing activities in Q1 2021 were primarily driven by **$29.4 million** in net proceeds from a public offering, contrasting with Q1 2020 financing mainly from a **$25.0 million** issuance of Series E preferred stock[17](index=17&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail COVID-19 and semiconductor risks, the pending Ctrack South Africa sale, debt structure, increased share-based compensation, and high customer revenue concentration - The company is exposed to risks from the COVID-19 pandemic and a global semiconductor supply shortage, which could impact customers and material supply[20](index=20&type=chunk)[21](index=21&type=chunk) - On February 24, 2021, the company agreed to sell its Ctrack South Africa operations for approximately **$35.4 million** (**528.9 million ZAR**), with **$41.7 million** in assets and **$10.1 million** in liabilities related to this business classified as held for sale as of March 31, 2021[52](index=52&type=chunk)[55](index=55&type=chunk) - As of March 31, 2021, the company's outstanding debt primarily consisted of **$161.9 million** in principal amount of **3.25%** convertible senior notes due 2025[25](index=25&type=chunk) - Share-based compensation expense increased to **$9.1 million** in Q1 2021, up from **$1.6 million** in Q1 2020, largely due to **$7.0 million** in immediately vested RSUs granted as fiscal 2020 annual bonuses[84](index=84&type=chunk) - In Q1 2021, two customers accounted for **60.8%** of net revenues, and **51.2%** of net accounts receivable[96](index=96&type=chunk)[98](index=98&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2021 revenue growth driven by 5G products, improved gross margin, increased operating expenses, and strengthened liquidity [Business Overview and Strategy](index=24&type=section&id=Business%20Overview%20and%20Strategy) Inseego focuses on 4G/5G wireless, IIoT, and cloud solutions, strategically divesting Ctrack operations to streamline its core business - The company designs and develops fixed and mobile wireless solutions (4G and 5G NR), industrial IoT (IIoT), and cloud solutions for a global customer base[118](index=118&type=chunk) - A definitive agreement was signed on February 24, 2021, to sell the Ctrack South Africa operations in an all-cash transaction for **528.9 million ZAR** (approx. **$35.4 million USD**), with the sale expected to close in the second quarter of fiscal 2021[120](index=120&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Q1 2021 net revenues increased slightly, gross margin improved, while operating expenses rose significantly due to 5G development and bonus timing Net Revenues by Product Category (in thousands) | Product Category | Q1 2021 | Q1 2020 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | IoT & Mobile Solutions | $42,959 | $42,415 | $544 | 1.3% | | Enterprise SaaS Solutions | $14,638 | $14,425 | $213 | 1.5% | | **Total** | **$57,597** | **$56,840** | **$757** | **1.3%** | - Gross margin increased to **32.1%** in Q1 2021 from **30.3%** in Q1 2020, primarily due to a favorable mix of Inseego Subscribe revenue[142](index=142&type=chunk) - Research and development expenses increased to **$14.6 million** (**25.3%** of net revenues) from **$8.2 million** (**14.5%** of net revenues) YoY, due to 5G product program spending and the timing of bonus grants[143](index=143&type=chunk) - Sales, marketing, and general & administrative expenses also increased year-over-year, largely due to the timing of bonus grant payouts to employees[144](index=144&type=chunk)[145](index=145&type=chunk) [Liquidity and Capital Resources](index=29&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity was strengthened by an ATM offering, with management confident in sufficient cash for the next twelve months - The company ended Q1 2021 with **$59.6 million** in cash and cash equivalents, including **$5.5 million** classified as held-for-sale[152](index=152&type=chunk) - In January 2021, the company sold **1.5 million** shares of common stock through an ATM offering, raising net proceeds of **$29.4 million**[157](index=157&type=chunk) - Management believes that cash and cash equivalents, along with anticipated cash flows from operations, will be sufficient to meet cash flow needs for the next twelve months[158](index=158&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is foreign currency exchange rate fluctuations, expected to decrease after the Ctrack South Africa divestiture - The company's primary market risk is foreign currency exchange risk, with sales in foreign currencies accounting for approximately **25.2%** of total revenue in Q1 2021[179](index=179&type=chunk) - A hypothetical **10%** change in foreign currency exchange rates would have impacted revenue by approximately **$1.5 million** for the quarter ended March 31, 2021[179](index=179&type=chunk) - Foreign exchange risk is expected to decrease after the divestiture of the Ctrack South Africa operations is completed[179](index=179&type=chunk) [Item 4. Controls and Procedures](index=30&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls in Q1 2021 - Management, including the CEO and principal financial officer, concluded that the company's disclosure controls and procedures were effective as of March 31, 2021[181](index=181&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[182](index=182&type=chunk) PART II—OTHER INFORMATION [Item 1. Legal Proceedings](index=31&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, but management does not expect a material adverse effect on its financials - The company is party to various legal proceedings in the ordinary course of business but does not expect them to have a material adverse effect on its financial condition or results[184](index=184&type=chunk)[185](index=185&type=chunk) [Item 1A. Risk Factors](index=31&type=section&id=Item%201A.%20Risk%20Factors) A key risk factor is the global semiconductor supply shortage, potentially impacting costs, component supply, and production timelines - A key risk factor is the global semiconductor supply shortage, which could increase costs and disrupt the supply of components for the company's 5G and 4G products[187](index=187&type=chunk) - If the company cannot mitigate the impact of the semiconductor shortage, supply chain disruptions may have a material adverse impact on its financial condition, results of operations, and cash flows[189](index=189&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=31&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred during the period - None[190](index=190&type=chunk) [Item 3. Defaults Upon Senior Securities](index=31&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities occurred during the period - None[191](index=191&type=chunk) [Item 4. Mine Safety Disclosures](index=31&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company's operations - Not applicable[192](index=192&type=chunk) [Item 5. Other Information](index=31&type=section&id=Item%205.%20Other%20Information) No other information is reported for the period - None[193](index=193&type=chunk) [Item 6. Exhibits](index=32&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed, including agreements for the Ctrack divestiture and ATM offering - Key exhibits filed include the Share Purchase Agreement for the Ctrack divestiture, various service and license agreements related to the sale, and the Equity Distribution Agreement with Canaccord Genuity LLC[194](index=194&type=chunk)

Financial Data and Key Metrics Changes - The company reported a Q1 revenue of $57.6 million, up approximately 1.5% year-over-year, with a significant increase in combined 5G and software as a service revenue by 120% compared to the previous year [6][33] - Gross margins improved to over 35%, up approximately 400 basis points year-over-year, reflecting a higher mix of 5G and software revenue [6][39] - Cash at the end of Q1 was nearly $60 million, an increase of almost $20 million from Q4 2020, driven by net proceeds from an ATM offering and solid cash collection [36] Business Line Data and Key Metrics Changes - IoT and mobile solutions revenue was $43 million, up 1.3% year-over-year but down 40% from Q4 2020 [34] - Enterprise SaaS revenue for Q1 was $14.6 million, up 4.8% quarter-over-quarter and relatively flat year-over-year [35] - The SaaS business represented 24% of total revenue in Q1, with a quarter-over-quarter growth of 11.5% and a year-over-year growth of 175.7% [14][28] Market Data and Key Metrics Changes - The company is making solid progress in international markets with initial 5G customer deployments, although establishing business in new regions is taking longer [9] - T-Mobile has become the largest 5G customer, with the launch of the 5G Wi-Fi hotspot contributing significantly to revenue [8][49] - The company expects 5G sales to exceed 4G sales in the second half of the year [82] Company Strategy and Development Direction - The company is focused on becoming a pure play 5G company, divesting non-target businesses like Ctrack in South Africa to concentrate on 5G opportunities [15][16] - The 5G fixed wireless access products are seen as a major growth driver, with significant traction in both consumer and enterprise markets [11][12] - The company aims to leverage its software solutions to enhance customer engagement and recurring revenue streams [13][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning and growth potential, citing strong demand for 5G products and software solutions [6][48] - The global semiconductor shortage has not yet impacted the business, with proactive measures taken to secure supply [17][64] - The second half of 2021 is expected to be stronger than the first half, driven by 5G sales growth and new carrier deployments [43][72] Other Important Information - The company has reduced its headcount by over 540 people, leading to an increase in revenue per employee to over $600,000 on a pro forma basis [16] - The company is experiencing a transformation towards more software subscriptions, with a significant increase in recurring software revenue [28] Q&A Session Summary Question: How do we think about the enterprise opportunity contributing to second half growth? - Management indicated that the enterprise 5G portfolio is beginning to contribute and expects a ramp in the second half of the year [51][53] Question: Is there a better margin profile with enterprise products compared to mobile hotspots? - Management confirmed that enterprise products generally have a higher gross margin profile, expected to be in the mid-40s [54] Question: How should we think about the cadence for the IoT and mobile solutions businesses? - Management noted that 4G demand levels are above pre-COVID levels and expects a stronger second half driven by newer generation products [60][61] Question: What is the outlook for gross margin trends given component constraints? - Management stated that while they have secured component supply, they expect to see gross margins improve steadily throughout the year [62][64] Question: What is the pipeline for adding new carrier customers for 5G? - Management expressed optimism about fixed wireless opportunities and ongoing conversations with carriers, expecting significant growth in the second half [66][67] Question: How much did international revenue contribute in terms of percentage? - Management did not break out international revenue as a percentage but confirmed it is growing [81] Question: When might 5G sales exceed 4G sales? - Management expects 5G sales to exceed 4G sales in the back half of the year [82] Question: Did you see any pickup related to Franklin Wireless recall? - Management clarified that their products do not overlap with lower-end products and thus have not been affected [85]

Financial Data and Key Metrics Changes - In Q4 2020, net revenue was $86.1 million, down 4.6% sequentially but up 64.5% year-over-year [39] - Gross margins for the IoT and Mobile Business were 25.6%, up approximately 160 basis points sequentially and up 880 basis points year-over-year [43] - Total company gross margins for Q4 were 31.6%, up approximately 180 basis points sequentially [45] - Non-GAAP net loss for Q4 was negative $6.9 million, or a loss of $0.07 per share [48] Business Line Data and Key Metrics Changes - IoT and Mobile Solutions revenue was $72.1 million, down 6.8% from Q3, with stable demand for legacy 4G products [39] - Inseego Manage software subscriptions grew 18% quarter-over-quarter and 231% year-over-year, reaching over 3.5 million subscriptions [40] - Enterprise SaaS solutions revenue was $14 million, up $8.3 million from the prior quarter [40] Market Data and Key Metrics Changes - Approximately 12% of total revenue came from 5G products in 2020, with significant wins in North America, EMEA, and Asia Pacific [5][39] - The South African Rand showed positive trends, with the exchange rate improving from 16.8 to 14.6 during the quarter [41] Company Strategy and Development Direction - The company aims to expand its product footprint with multiple 5G product slots and launch a comprehensive 5G enterprise portfolio [11] - Focus on geographic expansion and building a global fixed wireless access business [25] - The strategy includes enhancing the software platform, Inseego Manage, to drive recurring revenue [36][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth trajectory of 5G revenue, expecting the second half of 2021 to be stronger than the first half [52] - The company is optimistic about becoming the global 5G technology partner of choice for carriers and enterprises, with a combined addressable market exceeding $50 billion [55] Other Important Information - The sale of Ctrack South Africa is expected to close in Q2 2021, allowing the company to focus on higher growth regions [50] - The company has not seen an impact from component shortages but is preparing for potential longer lead times from suppliers [87] Q&A Session Summary Question: Clarification on the 12% 5G revenue - The 12% figure refers to the entire year, not just Q4 [59] Question: Expectations for enterprise contribution in 2021 - The enterprise market is now a primary focus, with expectations for significant growth due to new 5G products and channel partner recruitment [71] Question: Impact of Inseego Manage subscriptions on revenue and margins - The subscription business is expected to drive strong double-digit growth and is highly accretive to margins [106] Question: Run rate of the Ctrack South Africa business - Ctrack South Africa accounted for roughly half of the Ctrack line business [84] Question: Pricing dynamics in the Ctrack business outside South Africa - The remaining Ctrack businesses in other regions are expected to have a higher average revenue per user compared to South Africa [96]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-38358 INSEEGO CORP. None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ...

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number: 001-38358 INSEEGO CORP. (Exact name of registrant as specified in its charter) Delaware 81-3377646 (State or Other Jurisdiction of Incorpo ...