PART I - FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Unaudited statements show a significant net loss and stockholders' deficit, raising substantial doubt about the company's ability to continue as a going concern [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet reflects a sharp decline in cash and total assets, shifting stockholders' equity to a significant deficit Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Cash | $1,063 | $14,187 | | Investment in marketable securities | $12,532 | $42,349 | | Total current assets | $31,379 | $74,512 | | Total assets | $33,361 | $75,503 | | Total liabilities | $39,683 | $44,469 | | Total stockholders' equity (deficit) | $(6,322) | $31,034 | [Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Operations resulted in lower revenue and a substantially increased net loss, driven by a significant loss on investment Statement of Operations Highlights (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $2,558 | $4,016 | $7,225 | $8,422 | | Operating loss | $(3,955) | $(2,470) | $(8,141) | $(6,130) | | Loss on investment | $(6,952) | $— | $(26,008) | $— | | Net loss | $(12,529) | $(1,561) | $(37,958) | $(7,022) | | Net loss per share | $(0.12) | $(0.02) | $(0.36) | $(0.07) | [Unaudited Condensed Consolidated Statements of Stockholders' Equity (Deficit)](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity%20(Deficit)) Stockholders' equity shifted from a $31.0 million surplus to a $6.3 million deficit, primarily due to a large net loss - **Total stockholders' equity decreased** from a positive $31.0 million to a **deficit of $6.3 million** as of June 30, 2022[16](index=16&type=chunk) - The decrease was primarily driven by a **net loss of $38.0 million** for the six-month period[16](index=16&type=chunk) [Unaudited Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flows show a significant increase in cash used for operations, leading to a net cash decrease of $13.1 million Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2022 | 2021 | | :--- | :--- | :--- | | Net cash used in operating activities | $(11,082) | $(6,271) | | Net cash provided by (used in) investing activities | $2,644 | $(54) | | Net cash (used in) provided by financing activities | $(4,686) | $5,593 | | Net change in cash | $(13,124) | $(732) | | Cash at end of period | $1,063 | $122 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Notes highlight significant risks including its VIE structure, going concern doubts, investment losses, and high-interest debt - The company operates a significant portion of its business in China through a **Variable Interest Entity (VIE) structure**, which carries legal and regulatory risks[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) - Management has concluded there is **substantial doubt about the company's ability to continue as a going concern** due to recurring losses and a stockholders' deficit[42](index=42&type=chunk)[43](index=43&type=chunk) - The company's investment in New Sharecare was valued at $12.5 million, reflecting a **$26.0 million loss** during the first six months of 2022[81](index=81&type=chunk) - The company had **$23.8 million in notes payable** outstanding, primarily from high-interest Mudrick Loans[96](index=96&type=chunk) - Subsequent to the quarter, the company prepaid part of the Mudrick Loans, which had its **interest rate increased to 18.5%** and maturity extended[125](index=125&type=chunk)[126](index=126&type=chunk) - The company received a **Nasdaq notice for failing to maintain a minimum bid price** of $1.00 per share[102](index=102&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The discussion attributes a 14% revenue decline and a significant net loss to investment write-downs and higher interest expense [Our Business](index=30&type=section&id=OUR%20BUSINESS) The company delivers AI-based computer vision solutions through its Remark AI and KanKan AI businesses while planning to sell its e-commerce unit - The company's primary business is delivering **AI-based computer vision products** through its US and Asia-Pacific businesses[148](index=148&type=chunk) - Key AI solutions target markets such as retail, smart communities, workplace safety, and biosafety[150](index=150&type=chunk)[151](index=151&type=chunk)[153](index=153&type=chunk)[154](index=154&type=chunk) - The company plans to **sell its Bikini.com e-commerce business** and is developing a metaverse to explore new revenue streams[157](index=157&type=chunk) [Overall Business Outlook](index=36&type=section&id=Overall%20Business%20Outlook) The company sees growth opportunities for its AI products but faces material adverse impacts from China's 'Zero-COVID' policy - The company sees **growth opportunities in the Asia-Pacific, U.S., and European markets** for its AI products[158](index=158&type=chunk) - **China's 'Zero-COVID' policy** and associated lockdowns have had a material adverse impact on the business[159](index=159&type=chunk) [Results of Operations](index=37&type=section&id=RESULTS%20OF%20OPERATIONS) Revenue declined 14% while net loss widened by 441%, driven by investment losses and a 544% increase in interest expense Change in Operating Results for Six Months Ended June 30, 2022 vs 2021 (in thousands) | Account | 2022 | 2021 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $7,225 | $8,422 | $(1,197) | (14)% | | Cost of revenue | $6,117 | $5,004 | $1,113 | 22% | | General and administrative | $7,872 | $5,179 | $2,693 | 52% | | Interest expense | $(3,960) | $(615) | $(3,345) | 544% | | Loss on investment | $(26,008) | $— | $(26,008) | N/A | | Net loss | $(37,958) | $(7,022) | $(30,936) | 441% | - The increase in General and Administrative expense was primarily due to higher **share-based compensation ($0.9M)** and other business costs[172](index=172&type=chunk)[173](index=173&type=chunk) - The significant increase in interest expense was caused by the **$30.0 million Mudrick loan** executed in December 2021[173](index=173&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) With a cash balance of only $1.1 million and recurring losses, there is substantial doubt about the company's ability to continue as a going concern - The company has a history of recurring operating losses, resulting in a **cash balance of only $1.1 million** as of June 30, 2022[176](index=176&type=chunk) - There is **substantial doubt about the company's ability to continue as a going concern**[179](index=179&type=chunk) - Future operations will be funded through revenue growth, the **sale of the Bikini.com subsidiary**, and potential financings[180](index=180&type=chunk)[181](index=181&type=chunk) - The Mudrick Loan maturity was extended to October 31, 2022, and the **interest rate was increased to 18.5%** per annum[178](index=178&type=chunk)[179](index=179&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that this section is not applicable - The company has indicated that this disclosure is **not applicable**[187](index=187&type=chunk) [Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were not effective due to material weaknesses in internal control over financial reporting - Management concluded that **disclosure controls and procedures were not effective** at a reasonable assurance level as of June 30, 2022[189](index=189&type=chunk) - The ineffectiveness is due to **material weaknesses in internal control**, primarily related to processes in the AI business in China[189](index=189&type=chunk) - No material changes were made to internal controls during the quarter, and **remediation of the weaknesses is ongoing**[190](index=190&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that there were no material pending legal proceedings as of the end of the reporting period - The company reports **no material legal proceedings**[192](index=192&type=chunk) [Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) This section directs investors to the risk factors previously disclosed in the company's 2021 Annual Report on Form 10-K - The company refers investors to the **risk factors discussed in its 2021 Form 10-K**[192](index=192&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company states that it did not issue any unregistered equity securities during the period covered by this report - **No unregistered equity securities** were issued during the quarter[192](index=192&type=chunk) [Defaults Upon Senior Securities](index=42&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company indicates that this item is not applicable - **Not applicable**[193](index=193&type=chunk) [Mine Safety Disclosures](index=42&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company indicates that this item is not applicable - **Not applicable**[193](index=193&type=chunk) [Other Information](index=42&type=section&id=Item%205.%20Other%20Information) The company reports no information for this item - **None**[193](index=193&type=chunk) [Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the report, including an amendment to a loan agreement and executive certifications - Exhibit 10.1 is the **First Amendment to the Senior Secured Loan Agreement**, dated August 3, 2022[196](index=196&type=chunk) - Exhibits 31.1, 31.2, and 32 are the **CEO and CFO certifications** pursuant to the Sarbanes-Oxley Act of 2002[196](index=196&type=chunk)

Financial Data and Key Metrics Changes - Revenue for Q1 2022 totaled $4.7 million, up about 6% from Q1 2021, driven by a $0.6 million increase in China revenue [23] - Gross profit was $0.4 million for Q1 2022, down from $1.7 million in the same period of 2021, with a gross profit margin of 8.5% [24] - The net loss totaled $25.4 million or $0.24 per diluted share in Q1 2022, compared to a net loss of $5.5 million or $0.06 per diluted share in Q1 2021 [27] Business Line Data and Key Metrics Changes - The smart campus products saw a 40% revenue growth compared to Q1 2021, with over $2 million contributed by new AI learning and health evaluation systems [4] - Deployment of smart safety surveillance platforms for construction sites continued, with 21 more projects completed in Q1 [6] - Revenue from biosafety products in the U.S. decreased as the company shifted focus to thermal analytical products [24] Market Data and Key Metrics Changes - In China, total revenue included $2.2 million from construction projects and $2.2 million from education sector projects, with additional revenue from smart retail systems in less affected cities [23] - The company is optimistic about resuming deployments in China as lockdowns are lifted, expecting stronger numbers [7][22] - The U.S. market presents significant opportunities due to President Biden's $1.7 trillion infrastructure plan, with the company well-positioned to win bids [8] Company Strategy and Development Direction - The company aims to expand its smart campus products to over 800 schools and service over 2 million students nationwide in 2022 [4] - New growth engines are being developed in the aviation industry, focusing on AI-based digital airplane and airport management systems [12][13] - The company is also targeting the highway patrol and railway safety markets, leveraging its AI technology for hazard detection and safety monitoring [15][16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by strict COVID-19 lockdowns in China but expressed confidence in the company's ability to adapt and grow [4] - The company expects to see accelerated growth in China as lockdowns are lifted, with strong business prospects in the U.S. and U.K. [22] - Management highlighted the robust pipeline of opportunities in augmented reality and AI technology across various industries [21] Other Important Information - The cash balance as of March 31, 2022, was $2.7 million, down from $14.2 million at the end of 2021, impacted by principal repayments and increased business development spending [28] - The company incurred an operating loss of $4.2 million in Q1 2022, compared to a loss of $3.7 million in Q1 2021, with increased G&A expenses contributing to the loss [25] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating that the call transitioned directly to closing remarks after the financial summary [29]

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]

[PART I FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Remark Holdings, Inc.'s unaudited condensed consolidated financial statements, including balance sheets, statements of operations, cash flows, and stockholders' deficit, with notes on accounting policies, revenue, investments, debt, and equity [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance sheets reflect significant asset growth from marketable securities and a shift to positive equity by September 30, 2021 | Metric | Sep 30, 2021 (Unaudited, in thousands) | Dec 31, 2020 (in thousands) | | :---------------------- | :------------------------------------- | :-------------------------- | | Total current assets | $92,011 | $8,798 | | Total assets | $93,080 | $11,311 | | Total current liabilities | $24,330 | $17,059 | | Total liabilities | $24,379 | $20,403 | | Total stockholders' equity (deficit) | $68,701 | $(9,092) | [Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Net income significantly increased for three and nine months ended September 30, 2021, from investment revaluation, despite a three-month revenue decrease | Metric (in thousands) | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :-------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | Revenue | $1,234 | $2,646 | $9,656 | $5,376 | | Operating loss | $(6,665) | $(3,103) | $(12,795) | $(9,425) | | Gain on investment revaluation | $78,917 | — | $78,917 | — | | Net income (loss) | $72,746 | $4,414 | $65,724 | $(7,825) | | Net income (loss) per share, basic | $0.73 | $0.04 | $0.66 | $(0.10) | [Unaudited Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flows remained negative, investing activities turned positive from investment proceeds, and financing activities provided less cash, increasing overall cash | Cash Flow Activity (in thousands) | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(10,117) | $(14,532) | | Net cash provided by (used in) investing activities | $2,167 | $(1,581) | | Net cash provided by financing activities | $10,264 | $17,931 | | Net change in cash | $2,314 | $1,818 | | Cash, end of period | $3,168 | $2,090 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) These notes detail the company's organization, business model, accounting policies, financial items, VIE risks, recent developments, and going concern [NOTE 1. ORGANIZATION AND BUSINESS](index=8&type=section&id=NOTE%201.%20ORGANIZATION%20AND%20BUSINESS) Remark Holdings sells AI products via U.S. and China VIEs, facing regulatory and going concern risks from its VIE structure and accumulated deficit - Remark Holdings, Inc. is a technology-focused holding company primarily selling AI-based products and services through its U.S. operations and consolidated VIEs in China. The KanKan data intelligence platform is central to its AI-based solutions[20](index=20&type=chunk) - The company utilizes a VIE structure for its significant operations in China, which are subject to risks from Chinese laws and regulations, including potential disallowance of the VIE structure and significant depreciation of common stock value[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) - The company has incurred net losses and accumulated a deficit of **$(294.8) million** as of September 30, 2021, with net cash used in operating activities of **$10.1 million**, leading to substantial doubt about its ability to continue as a going concern[39](index=39&type=chunk)[40](index=40&type=chunk) - Future operations will be funded through revenue growth from AI offerings, sales of thermal-imaging products, and evaluation of strategic alternatives including debt/equity financings and asset sales[41](index=41&type=chunk)[42](index=42&type=chunk) [NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES](index=13&type=section&id=NOTE%202.%20SUMMARY%20OF%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This section details financial statement presentation, consolidation, estimates, and accounting treatments for key financial items, including recent pronouncements - The financial statements are prepared in conformity with GAAP, consolidating all subsidiaries and VIEs, and involve estimates significantly impacted by the COVID-19 pandemic[46](index=46&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk) | Cash Denominated In (in thousands) | Sep 30, 2021 | Dec 31, 2020 | | :--------------------------------- | :----------- | :----------- | | USD | $1,934 | $56 | | RMB | $1,093 | $28 | | GBP | $135 | — | | HKD | — | — | | Total cash | $3,168 | $85 | - Revenue from AI-based products is recognized over time for continuous services or at a point in time upon completion and acceptance of fully-integrated solutions. Other revenue sources include advertising, e-commerce, and media production[56](index=56&type=chunk)[57](index=57&type=chunk)[59](index=59&type=chunk) | Exchange Rates (USD) | Sep 30, 2021 | Sep 30, 2020 | | :------------------- | :----------- | :----------- | | GBP:USD | 1.346 | — | | RMB:USD | 0.155 | 0.147 | | HKD:USD | 0.128 | 0.129 | | Average RMB:USD (9 months) | 0.154 | 0.143 | [NOTE 3. REVENUE](index=17&type=section&id=NOTE%203.%20REVENUE) Revenue primarily from AI-based products and services, largely from China VIEs; AI product revenue decreased in Q3 2021 but increased for the nine-month period - The company and its VIEs primarily sell AI-based products and services, including Remark AI Thermal Kits and rPads in the U.S., and customized computer vision products in China[68](index=68&type=chunk) | Revenue Category (in thousands) | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :------------------------------ | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | AI-based products and services | $834 | $2,496 | $8,706 | $4,873 | | Other | $400 | $150 | $950 | $503 | | Total Revenue | $1,234 | $2,646 | $9,656 | $5,376 | | Revenue by Country (in thousands) | Three Months Ended Sep 30, 2021 | Three Months Ended Sep 30, 2020 | Nine Months Ended Sep 30, 2021 | Nine Months Ended Sep 30, 2020 | | :-------------------------------- | :------------------------------ | :------------------------------ | :----------------------------- | :----------------------------- | | China | $840 | $2,051 | $6,053 | $3,384 | | United States | $394 | $595 | $3,603 | $1,992 | | Total Revenue | $1,234 | $2,646 | $9,656 | $5,376 | [NOTE 4. FAIR VALUE MEASUREMENTS OF CERTAIN LIABILITIES](index=19&type=section&id=NOTE%204.%20FAIR%20VALUE%20MEASUREMENTS%20OF%20CERTAIN%20LIABILITIES) CBG Acquisition claims settled by issuing warrants for **5.71 million** common shares, reclassifying liability to equity, resulting in no warrant liability by September 30, 2021 - On August 31, 2021, the company settled claims from the CBG Acquisition by issuing warrants to purchase **5,710,000 shares** of common stock at an exercise price of **$6.00**, reclassifying the warrant liability to equity[75](index=75&type=chunk)[76](index=76&type=chunk) | Warrant Liability (in thousands) | Nine Months Ended Sep 30, 2021 | Year Ended Dec 31, 2020 | | :------------------------------- | :----------------------------- | :---------------------- | | Balance at beginning of period | $1,725 | $115 | | Increase (decrease) in fair value of liability | $(123) | $1,

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 ...