Revenue Performance - Revenue for the three months ended March 31, 2022, was $4.67 million, compared to $4.41 million for the same period in 2021, representing a 5.9% increase[9]. - The company recognized $2.2 million in revenue from its China business partner during the reporting period[9]. - AI-based products and services generated $4.546 million in revenue, including $2.2 million from a China business partner, compared to $4.020 million in 2021[67]. - Consolidated total revenue for the period was $4.667 billion, with a significant contribution from VIEs amounting to $4.653 billion[116]. Cost and Expenses - The total cost and expense for the three months ended March 31, 2022, was $8.85 million, up from $8.07 million in the same period of 2021, indicating a 9.7% increase[9]. - Operating loss reached $4.186 billion, driven by high costs and expenses totaling $8.853 billion[116]. - Total cost of revenue (excluding depreciation and amortization) was $4.270 billion, highlighting the high operational costs[116]. Net Loss and Financial Health - The net loss for the three months ended March 31, 2022, was $25.43 million, compared to a net loss of $5.46 million for the same period in 2021, reflecting a significant increase in losses[9]. - The company faces substantial doubt regarding its ability to continue as a going concern due to recurring operating losses and negative cash flows[36]. - The net loss for the period was $25.429 billion, reflecting a substantial increase in losses compared to previous periods[116]. Cash Flow and Liquidity - Cash used in operating activities for the three months ended March 31, 2022, was $8.69 million, compared to $5.53 million for the same period in 2021, showing a 56.5% increase in cash outflow[14]. - The company ended the period with cash of $2.69 million, down from $14.19 million at the beginning of the period, indicating a decrease of 81.0%[14]. - Cash used in operating activities was $6.479 billion, indicating a negative cash flow situation[118]. - The company ended the period with cash of $2.604 billion, down from $13.947 billion at the beginning of the period[118]. Investments and Losses - The company reported a loss on investment of $19.06 million for the three months ended March 31, 2022, with no such loss reported in the same period of 2021[9]. - A total loss on investment during the three months ended March 31, 2022, was $19.056 million, consisting of a realized loss of $1.518 million and an unrealized loss of $17.538 million[77]. - The investment in New Sharecare was valued at $21.4 million as of March 31, 2022, down from $42.3 million on December 31, 2021[76]. Shareholder Equity and Stock Options - As of March 31, 2022, the company has incurred an accumulated deficit of $358.5 million within stockholders' equity[35]. - The total stockholders' equity of the company was $6,121,000 as of March 31, 2022[113]. - The company had 14,892,134 outstanding equity-classified stock options with a weighted average exercise price of $3.29 and a remaining contractual term of 5.8 years[102]. Regulatory and Operational Risks - The company is subject to risks regarding the validity and enforcement of VIE contractual arrangements, which may not provide effective operational control[22]. - Current Chinese regulations allow the WFOE to pay dividends only out of its registered capital after meeting a statutory reserve equal to 50% of registered capital[28]. - The Chinese government imposes controls on the conversion of RMB into foreign currencies, which may hinder the company's ability to remit foreign currency for dividend payments[29]. - The impact of the COVID-19 pandemic has significantly limited the operational capabilities of the VIEs, affecting business performance[32]. Future Plans and Strategic Alternatives - The company plans to fund future operations through revenue growth from AI offerings and sales of thermal-imaging products, but there is uncertainty regarding the sufficiency of these revenues[37]. - The company is actively evaluating strategic alternatives, including debt and equity financings, to meet financial obligations[37].

Remark Holdings, Inc. (OTCQX:MARK) Q4 2021 Earnings Conference Call March 31, 2022 4:30 PM ET Company Participants Brian Harvey - Senior Vice President, Capital Markets and IR Kai-Shing Tao - Chairman and CEO Conference Call Participants Operator Good day, ladies and gentlemen. And welcome to the Remark Holdings Fiscal Year 2021 Financial Results Conference Call. My name is Kyle. I will be the operator for today and will handle the Q&A. As a reminder, this conference is being recorded. Now I would like to t ...

Financial Data and Key Metrics Changes - In Q3 2021, revenue decreased by $1.2 million due to China's strict COVID-19 lockdowns impacting project rollouts [23] - Gross profit fell to $0.4 million from $1 million, leading to an operating loss of $6.7 million compared to a loss of $3.1 million in Q3 2020 [23][24] - The company recorded a net income of $72.2 million or $0.72 per diluted share, a significant increase from $4.4 million or $0.04 per diluted share in Q3 2020, primarily due to a gain on the investment in Sharecare [24][25] Business Line Data and Key Metrics Changes - The AI platform has seen revenue growth from $5 million in 2019 to an expected $15 million in 2021, indicating a strong upward trajectory [6] - The company has completed 21 smart stores in China despite COVID-19 challenges, with plans for further deployment once conditions normalize [18] - The Smart Campus System has been deployed in over 400 schools, with expectations for faster growth in Q4 and 2022 due to educational reforms [20] Market Data and Key Metrics Changes - The U.S. infrastructure bill of $1.2 trillion presents significant opportunities for the company, with $110 billion allocated to roads and bridges and $39 billion for public transit [8][9] - The company has established a partnership with Brightline, marking its first major U.S. customer for the AI Smart Safety platform [10][17] Company Strategy and Development Direction - The company aims to leverage its AI platform to capture market share in the public transit sector and other infrastructure projects [8][12] - Plans to enter the NFT and Metaverse space are underway, with a targeted launch in Q4 2021, indicating a strategic pivot towards digital assets [12][15] - The company is focused on building a recurring revenue model with AI-based platforms and proprietary services [22] Management's Comments on Operating Environment and Future Outlook - Management highlighted the challenges posed by China's Zero COVID policy, which has affected operations across the country [39] - The company remains optimistic about future growth, expecting a strong fourth quarter and continued business expansion [17][40] - There is confidence in the ability to recruit talent despite market challenges, as the company has built a strong brand and vision [43] Other Important Information - The company is in the final stages of exploring monetization opportunities for its investment in Sharecare, with plans to liquidate shares after the first of the year [34][35] - The company has a cash balance of $3.1 million as of September 30, 2021, which is expected to sustain operations into early 2022 [25][41] Q&A Session Summary Question: How is the company positioned to take advantage of new business areas like infrastructure and the Metaverse? - Management emphasized that the core business is AI, which serves as a foundation for entering various markets, allowing for efficient adaptation to new opportunities [29][30] Question: What is the investment and timeframe for the Bikini Verse? - The company plans a full launch within three months, with an initial launch at Miami NFT week, leveraging existing resources for efficiency [32] Question: Where does the company stand on monetizing its investment in Sharecare? - Management is in the final stages of exploring monetization options and is focused on finding the right partner for long-term growth [34] Question: Is the revenue shortfall primarily due to lockdowns in China? - The revenue decline is attributed to widespread lockdowns across China, affecting operations and project rollouts [39] Question: How is the company managing its cash flow and recruitment challenges? - Management expressed confidence in their capital position and recruitment efforts, noting that the company has built a strong team that believes in its long-term vision [43]

Remark Holdings, Inc. (OTCQX:MARK) Q2 2021 Earnings Conference Call August 23, 2021 4:30 PM ET Company Participants Brian Harvey - Director, Capital Markets & Investor Relations Kai-Shing Tao - Chairman & Chief Executive Officer Conference Call Participants Dillon Heslin - ROTH Capital Partners Steve Allen - Private Investor Stephen Wagner - Integrity Wealth Advisors, Inc. Laurence Rosen - Rosen Capital Operator Welcome to the Remark Holdings, Inc. Second Quarter 2021 Financial Results Conference Call. My n ...

Remark Holdings, Inc. (OTCQX:MARK) Q1 2021 Earnings Conference Call May 17, 2021 4:30 PM ET Company Participants Brian Harvey - Senior Vice President, Capital Markets & Investor Relations Kai-Shing Tao - Chairman & Chief Executive Officer Conference Call Participants Darren Aftahi - ROTH Capital Partners Ron Nash - NASH Partners Rob Mountain - Mountain Capital Management Operator Welcome to the Remark Holdings First Quarter 2021 Financial Results Conference Call. My name is Jenny, and I'll be the operator t ...

Remark Holdings, Inc. (OTCQX:MARK) Q4 2020 Earnings Conference Call March 31, 2021 4:30 PM ET Company Participants Brian Harvey - SVP, Capital Markets and IR Kai-Shing Tao - Chairman and CEO Conference Call Participants Darren Aftahi - ROTH Capital Partners Operator Good day, ladies and gentlemen. Welcome to the Remark Holdings' [Third] (sic) Quarter 2020 Financial Results Conference Call. My name is Keith. I will be the operator today and will handle the Q&A. As a reminder, this conference is being recorde ...