Financial Performance - Adjusted gross profit for the year ended December 31, 2023, is $2,133,000, a decrease from $3,719,000 in 2022, with adjusted gross margin dropping to 44.1% from 57.0%[268]. - Gross profit for 2023 is reported at $1,686,000, down from $3,509,000 in 2022, reflecting fluctuations in revenue and associated costs[271]. - Net revenues for the year ended December 31, 2023, decreased by $1.7 million, or 25.9%, to $4.8 million compared to $6.5 million in 2022, primarily due to decreased PhunToken sales[288]. - Gross profit for the year ended December 31, 2023, decreased by $1.8 million, or 52.0%, to $1.7 million, attributed to the decline in PhunToken revenue[289]. - Total operating expenses increased by $19.8 million, or 72.0%, to $47.4 million for the year ended December 31, 2023, driven by a $25.8 million impairment of goodwill[290]. - The company recorded an impairment of goodwill of $25.8 million for the year ended December 31, 2023[294]. - Other income for 2023 was $3.8 million, primarily due to a $5.3 million gain on the sale of digital asset holdings, offset by interest expenses[295]. - Net cash used in operating activities was $18.4 million for the year ended December 31, 2023, resulting from a net loss of $41.9 million[309]. - The company expects to continue generating operating losses and negative cash flows in the foreseeable future, despite recent financing events[304]. Backlog and Revenue - As of December 31, 2023, backlog is $2,750,000, down from $3,824,000 in 2022, while deferred revenue decreased to $1,909,000 from $2,805,000, resulting in total backlog and deferred revenue of $4,659,000 compared to $6,629,000 in 2022[261]. - Approximately 40% of the backlog as of December 31, 2023, is expected to be invoiced within the subsequent 12-month period, primarily due to the typical one to three-year length of contracts[259]. - Revenue consists of software subscriptions, application development services, and application transactions, including in-app advertising and PhunToken sales[272]. - The company’s revenue is primarily derived from platform subscription fees and application development and support fees, recognized when control is transferred to customers[321]. Management and Strategy - The company does not expect to be profitable in the near future, indicating a focus on long-term growth through continued investment in product development and market expansion[257]. - The company plans to continue investing in the expansion of its marketing and sales capabilities to enhance its product offerings and customer engagement globally[257]. - The company has entered into a separation agreement with former CEO Russell Buyse, effective October 25, 2023, and appointed Michael Snavely as the new CEO on the same date[255][256]. Financing and Cash Flow - The company sold an aggregate of 2,696,000 shares of common stock, raising approximately $22.6 million in gross proceeds[302]. - The company has a common stock purchase agreement with Lincoln Park Capital Fund, allowing for the sale of up to $30 million in shares over 24 months[301]. - The company raised net proceeds of approximately $10.5 million from various sales of common stock in 2023, offset by $5.0 million in payments on the 2022 Promissory Note[312]. - The company acquired $8.1 million of cash from financing activities in 2022, primarily from $11.8 million in proceeds from the 2022 Promissory Note and $4.3 million from the sale of common stock[313]. Discontinued Operations - The company committed to a plan to discontinue and wind down the operations of Lyte on November 1, 2023, which meets the criteria for classification as a discontinued operation[327]. Operational Expenses - Operating expenses are expected to increase as the company grows, particularly in sales and marketing, general and administrative, and research and development[280][282][283]. - Rent expense under operating leases for continued operations totaled $0.8 million and $0.9 million for the years ended December 31, 2023 and 2022, respectively[315]. Contractual Obligations - The company’s contractual obligations as of December 31, 2023, totaled $751,000, with payments due in various time frames[316].

Phunware, Inc. (NASDAQ:PHUN) Q4 2023 Earnings Conference Call March 12, 2024 4:30 PM ET Company Participants Mike Snavely - Chief Executive Officer Troy Reisner - Chief Financial Officer Conference Call Participants Darren Aftahi - ROTH MKM Scott Buck - H.C. Wainwright Ed Woo - Ascendiant Capital Howard Halpern - Taglich Brothers Operator Good afternoon, ladies and gentlemen, and welcome to Phunware's Fourth Quarter and Full Year 2023 Investor Conference Call. Currently, all participants are in a listen-onl ...

Phunware Reports Full Year 2023 Financial Results AUSTIN, Texas, March 12, 2024 – Phunware, Inc. (NASDAQ: PHUN) ("Phunware" or "the Company"), the leading provider of patented wayfinding and mobile engagement solutions for mobile that enables brands to engage, manage and monetize anyone anywhere, today announced financial results for the year ended December 31, 2023. "Our company today is dramatically stronger than the one we talked about in November," said Mike Snavely, CEO of Phunware. "With management ch ...

Financial Data and Key Metrics Changes - Total net revenues for Q3 2023 were approximately $2.8 million, with platform revenue at 45% ($1.3 million) and hardware revenue at 55% ($1.5 million) [42] - Non-GAAP adjusted EBITDA loss was $4.3 million, improved from a loss of $6.7 million in the previous year [17] - Net loss was approximately $19 million or $0.16 per share, compared to a net loss of approximately $8 million or $0.08 per share last year [17] - Total operating expenses were approximately $18.7 million, including a $13.2 million goodwill impairment [10] Business Line Data and Key Metrics Changes - The hospitality segment is seeing increased engagement, with negotiations with major brands like Marriott and Gaylord Hotels [41] - The healthcare segment is expected to have new logo announcements in Q1 2024, indicating a positive sales cycle [15] Market Data and Key Metrics Changes - The backlog and deferred revenue at the end of the quarter totaled approximately $4.8 million, slightly down from $5.2 million [17] - The company is focusing on partnerships with channel partners like Cox Business and Siemens Connect, which represent about a third of the total contract value in the pipeline [8] Company Strategy and Development Direction - The company aims to sell its location and wayfinding technologies as software components delivered as SDKs into existing mobile applications [24] - A multi-pronged strategy is being developed around the company's IP portfolio, including monetization through licensing and partnerships [25] - The company is winding down its non-core light business and reducing staff to align with revenue management [15] Management's Comments on Operating Environment and Future Outlook - Management believes the company is on the path to recovery, with a focus on sales execution and monetizing technology advancements [13] - The company is navigating regulatory uncertainties in the digital asset space and plans to launch PhunCoin for trading in the coming months [27][52] Other Important Information - The company has engaged a real estate agent to market its remaining office space in Austin while seeking to negotiate an early termination option [21] - The average monthly operating expense has been reduced to about $1.5 million, with estimated annualized savings of approximately $6.0 million [19] Q&A Session Summary Question: How quickly can the company monetize token and wallet? - Management indicated that minimal additional investment is expected to bring the assets to market, with more definitive guidance to be provided soon [30] Question: Is the company winding down the Lyte business or exploring a sale? - Management confirmed they are pursuing both options and expect to have a resolution by the end of the year [31] Question: What is the strategy for software pipeline engagements in Q1? - Management expects to enter into new contracts ranging from $50,000 to $200,000 annually, with significant upsell opportunities [33] Question: Will larger hospitality clients require greater investment in the sales cycle? - Management acknowledged that larger deals may take longer to close but will result in substantial opportunities for growth [62] Question: What is the approach to direct sales versus channel partners? - The company will continue to invest in both direct sales and channel partnerships, with channel deals generally being larger in dollar volume [70]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 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, 2023 ☐ 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: 001-37862 PHUNWARE, INC. (Exact name of registrant as specified in its charter) | Delaware | 30-1205798 | | | --- | --- | --- | | (State or o ...

PART I FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) The company's unaudited financials show decreased assets, an improved but still significant net loss, and substantial doubt about its going concern status [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets declined to $40.8 million due to sharp decreases in digital assets and cash, while stockholders' equity also fell Condensed Consolidated Balance Sheet Summary (in thousands) | Account | June 30, 2023 (Unaudited) | December 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | **$4,831** | **$16,863** | | Cash | $1,105 | $1,955 | | Digital assets | $71 | $10,137 | | Goodwill | $29,956 | $31,113 | | **Total Assets** | **$40,790** | **$54,835** | | **Total Current Liabilities** | **$19,248** | **$25,577** | | **Total Liabilities** | **$22,882** | **$29,954** | | **Total Stockholders' Equity** | **$17,908** | **$24,881** | [Condensed Consolidated Statements of Operations and Comprehensive Loss](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Net revenues decreased year-over-year, and while the net loss improved due to lower digital asset impairments, a goodwill impairment was recorded Statement of Operations Summary (in thousands) | Metric | Q2 2023 | Q2 2022 | Six Months 2023 | Six Months 2022 | | :--- | :--- | :--- | :--- | :--- | | Net revenues | $3,487 | $5,485 | $8,234 | $12,263 | | Gross profit | $456 | $1,520 | $817 | $3,291 | | Operating loss | $(8,197) | $(7,535) | $(15,448) | $(12,557) | | Impairment of goodwill | $1,203 | $0 | $1,203 | $0 | | Impairment of digital assets | $0 | $(12,158) | $(50) | $(21,511) | | **Net loss** | **$(6,524)** | **$(17,071)** | **$(10,793)** | **$(31,988)** | | **Loss per share** | **$(0.06)** | **$(0.17)** | **$(0.10)** | **$(0.33)** | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations remained negative, while investing activities provided cash from digital asset sales, resulting in a net cash decrease Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | $(12,560) | $(14,989) | | Net cash provided by (used in) investing activities | $15,381 | $(2,206) | | Net cash used in financing activities | $(3,719) | $(3,116) | | **Net decrease in cash** | **$(850)** | **$(20,432)** | | **Cash at end of period** | **$1,105** | **$2,705** | - Investing activities were a source of cash in H1 2023 due to **$15.4 million in proceeds from the sale of digital assets**, a reversal from H1 2022 when the company purchased digital assets[25](index=25&type=chunk) [Notes to the Unaudited Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Key disclosures include a going concern warning, a goodwill impairment, a significant drop in digital assets, and non-compliance with Nasdaq listing rules - Management has concluded there is **substantial doubt about the company's ability to continue as a going concern** due to a history of net losses, cash used in operations ($12.6M in H1 2023), and a working capital deficiency of $14.4M[33](index=33&type=chunk)[35](index=35&type=chunk) - On April 13, 2023, the company received a notice from Nasdaq for **non-compliance with the minimum $1.00 bid price requirement**, with a deadline of October 10, 2023, to regain compliance[37](index=37&type=chunk) - A non-cash **goodwill impairment charge of $1.2 million** was recorded for the Lyte reporting unit as of June 30, 2023, because its carrying amount exceeded its fair value[50](index=50&type=chunk) - The carrying value of digital assets decreased dramatically from **$10.1 million at year-end 2022 to just $71 thousand** as of June 30, 2023, following sales that generated a gain of $5.3 million[66](index=66&type=chunk)[67](index=67&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses declining revenues, rising operating expenses, and a critical liquidity position that raises going concern doubts [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Net revenues and gross profit fell significantly in the first half of 2023, while operating expenses rose due to a goodwill impairment charge Net Revenues Breakdown (in thousands) | Revenue Type | Q2 2023 | Q2 2022 | % Change | Six Months 2023 | Six Months 2022 | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Platform revenue | $1,295 | $1,628 | (20.5)% | $2,640 | $4,120 | (35.9)% | | Hardware revenue | $2,192 | $3,857 | (43.2)% | $5,594 | $8,143 | (31.3)% | | **Total Net revenues** | **$3,487** | **$5,485** | **(36.4)%** | **$8,234** | **$12,263** | **(32.9)%** | - The decrease in platform revenue was primarily due to the **absence of PhunToken sales in 2023**, which amounted to $1.5 million in the first six months of 2022[144](index=144&type=chunk)[145](index=145&type=chunk) - A **goodwill impairment of $1.2 million** related to the Lyte operating segment was recorded in Q2 2023, contributing to the increase in total operating expenses[150](index=150&type=chunk)[156](index=156&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) The company's low cash balance raises substantial going concern doubts, though it has taken steps to reduce costs and raise capital post-quarter - The company's cash position was **$1.1 million as of June 30, 2023**, and management believes existing cash is not sufficient to meet operating needs for the next year, raising substantial doubt about its ability to continue as a going concern[161](index=161&type=chunk)[165](index=165&type=chunk) - Subsequent to June 30, 2023, the company **raised an additional ~$5.5 million** in its at-the-market equity offering and implemented a plan to decrease cash burn by reducing headcount and other operating expenditures[164](index=164&type=chunk) - On August 14, 2023, the 2022 Promissory Note was amended to **extend the maturity date to June 1, 2024**, and reduce required monthly payments to at least $800 thousand, providing near-term financial relief[163](index=163&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not applicable as stated in the report - The company states that this item is not applicable[183](index=183&type=chunk) [Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - The company's Certifying Officers concluded that **disclosure controls and procedures were effective** as of the end of the period covered by the report[186](index=186&type=chunk) - There were **no material changes** to the company's internal control over financial reporting during the quarter ended June 30, 2023[187](index=187&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) The company is defending a stockholder lawsuit regarding a share lock-up period, with mediation ongoing and no liability recorded - The company is defending a lawsuit from early investors regarding a 180-day share lock-up period; the court has dismissed Texas law-based claims but denied dismissal of Delaware law claims, and **mediation is ongoing**[78](index=78&type=chunk)[191](index=191&type=chunk) [Risk Factors](index=43&type=section&id=Item%201A.%20Risk%20Factors) The primary risk is potential delisting from Nasdaq for failing to meet the minimum bid price, which could trigger a debt default - The company is not in compliance with Nasdaq's minimum bid price requirement and faces **potential delisting** if it cannot regain compliance by October 10, 2023[193](index=193&type=chunk) - Delisting from Nasdaq would **trigger a default under the 2022 Promissory Note**, making the outstanding balance immediately due and payable[195](index=195&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=44&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 45,000 shares in Q2 2023 as part of its authorized stock repurchase program Issuer Purchases of Common Stock (Q2 2023) | Month | Total Shares Purchased | Average Price Paid per Share | Maximum Dollar Value Remaining (in thousands) | | :--- | :--- | :--- | :--- | | April 2023 | 45,000 | $0.60 | $4,498 | | May 2023 | — | — | $4,498 | | June 2023 | — | — | $4,498 | | **Total** | **45,000** | **$0.60** | **$4,498** | [Defaults Upon Senior Securities](index=44&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported during the period - None reported[198](index=198&type=chunk) [Exhibits](index=45&type=section&id=Item%206.%20Exhibits) This section indexes exhibits filed with the report, including a new inducement plan and a promissory note amendment - Key exhibits filed with this report include the **2023 Inducement Plan** and an amendment to the company's promissory note[204](index=204&type=chunk)

Phunware, Inc. (NASDAQ:PHUN) Q2 2023 Earnings Conference Call August 10, 2023 4:30 PM ET Company Participants Russ Buyse - Chief Executive Officer Troy Reisner - Chief Financial Officer Conference Call Participants Darren Aftahi - ROTH MKM Scott Buck - H.C. Wainwright Lucas Ward - Ascendiant Howard Halpern - Taglich Brothers Operator Good afternoon ladies and gentlemen, and welcome to Phunware's Second Quarter 2023 Investor Conference Call. Currently all participants are in a listen-only mode. Joining me to ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Exact name of registrant as specified in its charter) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 ☐ 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: 001-37862 PHUNWARE, INC. | Delaware | 30-1205798 | | | --- | --- | --- | | (State or other ...

Phunware, Inc. (NASDAQ:PHUN) Q1 2023 Earnings Conference Call May 11, 2023 4:30 PM ET Company Participants Russell Buyse - Chief Executive Officer Matt Aune - Chief Financial Officer Randall Crowder - Chief Operating Officer Conference Call Participants Darren Aftahi - ROTH MKM Scott Buck - H.C. Wainwright Howard Halpern - Taglich Brothers Ed Woo - Ascendiant Capital Operator Good afternoon, ladies and gentlemen, and welcome to Phunware's First Quarter 2023 Investor Conference Call. [Operator Instructions] ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 ☐ 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: 001-37862 PHUNWARE, INC. (Exact name of registrant as specified in its charter) | Delaware | 30-1205798 | | | --- | - ...