| --- | --- | |----------------------------------------------------|-------| | | | | | | | Smartphones and other screens offer more | | | communication and entertainment opportunities | | | | | | than ever; but with those opportunities certain | | | threats become more visible. | | | Parents want security and ease. Kids want autonomy | | ® SafePath® Direct Marketing/CRM Store Collateral/Employee Training Education Segment | --- | --- | |-----------------------------------|-------| | | | | | | | … ACHIEVING ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _____________________________ FORM 10-Q _____________________________ (State or other jurisdiction of incorporation or organization) Delaware 33-0029027 (I.R.S. Employer Identification No.) 5800 Corporate Drive For the quarterly period ended March 31, 2023 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-35525 _____________________________ (Mark On ...

Smith Micro Software, Inc. (NASDAQ:SMSI) Q1 2023 Earnings Conference Call May 11, 2023 4:30 PM ET Company Participants Charles Messman - Vice President, Investor Relations, and Corporate Development Bill Smith - Chairman, President, and Chief Executive Officer Jim Kempton - Chief Financial Officer Conference Call Participants Scott Searle - ROTH MKM Griffin Boss - B. Riley James McIlree - Dawson James Matthew Harrigan - Benchmark Operator Good day, and welcome to the Smith Micro First Quarter 2023 Earnings ...

Financial Performance - In 2022, revenues declined by 17% to $48.5 million, primarily due to an $8.9 million decrease in the CommSuite product line [125]. - Gross profit for 2022 was $34.3 million, representing 70.7% of revenues, down from $45.7 million or 78.3% in 2021 [138]. - The net loss for 2022 was $29.3 million, resulting in a net loss per diluted share of $0.53 [125]. Operating Expenses - Operating expenses increased to 134.5% of revenues in 2022, compared to 131.2% in 2021, with significant increases in selling and marketing expenses [128]. - Research and development expenses rose to $29.9 million in 2022, an increase of $3.7 million from 2021, driven by contractor costs for SafePath development [140]. - Net cash used in operating activities was $19.3 million for 2022, primarily due to a net loss of $29.3 million [148]. Cash Flow and Liquidity - Cash and cash equivalents as of December 31, 2022, were approximately $14.0 million, indicating liquidity to meet financial obligations [147]. - Net cash provided by financing activities was $17.1 million in 2022, mainly from a Notes and Warrant Offering of $15.0 million [151]. Research and Development - Research and development costs decreased by approximately $1.5 million, or 18%, in Q4 2022 compared to Q2 2022 as migration efforts neared completion [126]. - The company anticipates that certain costs of sales related to acquired platforms will be eliminated post-migration, potentially increasing gross margins [126]. Corporate Structure and Locations - The corporate headquarters is located in Pittsburgh, Pennsylvania, leasing approximately 35,621 square feet, with the lease expiring on April 30, 2026 [154]. - The company leases an additional 8,513 square feet in Aliso Viejo, California, expiring on October 31, 2024, and 12,728 square feet in Belgrade, Serbia, expiring on July 31, 2026 [154]. Accounting Policies - As of December 31, 2022, there were no off-balance sheet arrangements reported [157]. - The company applies FASB ASC Topic No. 805 for business combinations, recognizing assets and liabilities at fair value on the acquisition date [159]. - Goodwill is assessed for impairment at least annually, with any excess of carrying value over fair value recorded as an impairment loss [167]. - Revenue is recognized based on FASB ASC Topic No. 606, reflecting the transfer of promised goods or services to customers [169]. - Usage-based revenue is generated based on active subscribers' access and usage of software licenses, recognized upon completion of performance obligations [170]. - Stock-based compensation is recognized as an expense over the vesting period using the straight-line method as per FASB ASC Topic No. 718 [173].

Smith Micro Software, Inc. (NASDAQ:SMSI) Q4 2022 Earnings Conference Call March 9, 2023 4:30 PM ET Company Participants Charles Messman - VP, IR & Corporate Development William Smith - Co-Founder, Chairman, President & CEO James Kempton - VP, CFO & Treasurer Conference Call Participants Scott Searle - ROTH MKM Partners Michael Nichols - B. Riley Securities James McIlree - Dawson James Securities Matthew Harrigan - The Benchmark Company Operator Good day, and welcome to the Smith Micro Fourth Quarter 2022 Ea ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _____________________________ FORM 10-Q _____________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-35525 _____________________________ SMITH MICRO SOFTWARE, INC. (Exact name of re ...

Smith Micro Software, Inc. (NASDAQ:SMSI) Q3 2022 Results Conference Call November 9, 2022 4:30 PM ET Company Participants Charles Messman - VP, IR and Corporate Development Bill Smith - Chairman, President and CEO Jim Kempton - CFO Conference Call Participants Scott Searle - Roth Capital Josh Nichols - B. Riley Jim McIlree - Dawson James Operator Thank you for holding. Good day, and welcome to the Smith Micro Third Quarter 2022 Earnings Conference Call. All participants will be in listen-only mode. [Operato ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited statements show declining revenue and profit, a larger net loss, and negative operating cash flow for the first half of 2022 [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets and stockholders' equity decreased as of June 30, 2022, driven by a significant reduction in cash and cash equivalents Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2022 (unaudited) | December 31, 2021 (audited) | | :--- | :--- | :--- | | Cash and cash equivalents | $5,357 | $16,078 | | Total current assets | $19,433 | $28,656 | | Goodwill | $35,041 | $35,041 | | Total assets | $100,845 | $114,512 | | Total current liabilities | $10,160 | $9,368 | | Total liabilities | $13,917 | $13,952 | | Total stockholders' equity | $86,928 | $100,560 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Revenues declined and net losses widened for both the second quarter and first six months of 2022 compared to the prior year Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2022 | Q2 2021 | Six Months 2022 | Six Months 2021 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $12,674 | $15,919 | $25,409 | $27,300 | | Gross Profit | $9,057 | $12,561 | $18,156 | $22,397 | | Operating Loss | ($8,479) | ($5,210) | ($15,459) | ($8,447) | | Net Loss | ($8,493) | ($5,203) | ($15,496) | ($8,428) | | Loss Per Share (Basic & Diluted) | ($0.15) | ($0.10) | ($0.28) | ($0.17) | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations turned negative in the first half of 2022, contributing to a substantial decrease in cash and cash equivalents Cash Flow Summary for the Six Months Ended June 30 (in thousands) | Activity | 2022 | 2021 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | ($11,627) | $1,496 | | Net cash used in investing activities | ($29) | ($57,132) | | Net cash provided by financing activities | $935 | $59,818 | | Net (decrease) increase in cash | ($10,721) | $4,182 | | Cash and cash equivalents, end of period | $5,357 | $29,936 | [Notes to the Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) Notes highlight significant customer concentration, revenue disaggregation, and a post-quarter private placement of convertible notes - The company has **significant customer concentration**, with two customers accounting for 44% and 37% of revenues in Q2 2022, and three customers representing 47%, 26%, and 14% of accounts receivable[54](index=54&type=chunk)[55](index=55&type=chunk) - On August 11, 2022, the company entered into a private placement for **$15 million in senior secured convertible notes** and also sold common stock and warrants, raising additional capital[68](index=68&type=chunk) - The company's credit facility with Wells Fargo was terminated on August 11, 2022, in connection with the new financing transactions[31](index=31&type=chunk) Disaggregation of Revenues for the Six Months Ended June 30 (in thousands) | Revenue Type | 2022 | 2021 | | :--- | :--- | :--- | | Cloud based usage fees | $19,548 | $15,602 | | Hosted environment usage fees | $2,863 | $8,097 | | License and service fees | $1,861 | $2,382 | | Consulting services and other | $1,137 | $1,219 | | **Total revenues** | **$25,409** | **$27,300** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the revenue decline driven by T-Mobile's subscriber migration, its impact on margins, and the need for recent financing - **Q2 2022 revenues declined by 20%** to $12.7 million compared to Q2 2021, primarily due to a $2.5 million decrease in CommSuite revenues and a $1.0 million decrease in the family safety product line[78](index=78&type=chunk) - The revenue decline is attributed to T-Mobile's accelerated migration of legacy Sprint subscribers, with **CommSuite services expected to end-of-life before the end of 2022**[78](index=78&type=chunk) - **Gross margin decreased** in Q2 2022 due to the costs of maintaining multiple family safety platforms, with improvement expected once migrations to the flagship SafePath platform are complete[78](index=78&type=chunk)[80](index=80&type=chunk) Comparison of Operating Results (in thousands) | Metric | Q2 2022 | Q2 2021 | Change | Reason for Change | | :--- | :--- | :--- | :--- | :--- | | Revenues | $12,674 | $15,919 | ($3,245) | Decrease in CommSuite and legacy family safety products | | Gross Profit | $9,057 | $12,561 | ($3,504) | Lower revenue and higher costs from maintaining multiple platforms | | R&D Expenses | $8,213 | $7,063 | $1,150 | Increased contractor costs for SafePath development | | Net Loss | ($8,493) | ($5,203) | ($3,290) | Lower gross profit and higher operating expenses | [Item 4. Controls and Procedures](index=23&type=section&id=Item%204.%20Controls%20and%20Procedures) The CEO and CFO concluded that disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - Management determined that as of June 30, 2022, the company's **disclosure controls and procedures were effective**[107](index=107&type=chunk) - No changes in internal controls over financial reporting occurred during the quarter ended June 30, 2022, that have **materially affected, or are reasonably likely to materially affect**, these controls[110](index=110&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=24&type=section&id=Item%201.%20Legal%20Proceedings) Management does not expect current legal proceedings to have a material adverse impact on the company's financial condition - While the company may become involved in legal proceedings, management does not currently expect them to have a **material adverse impact** on its consolidated financial results[113](index=113&type=chunk) [Item 1A. Risk Factors](index=24&type=section&id=Item%201A.%20Risk%20Factors) New risks related to the August 2022 convertible notes issuance have been added, concerning financing, dilution, and asset security - **New risks have been introduced** related to the recently issued convertible notes[114](index=114&type=chunk)[115](index=115&type=chunk) - The notes may restrict the ability to obtain additional financing and **dedicate cash flow to debt repayment**[115](index=115&type=chunk) - Conversion of the notes and exercise of associated warrants **will dilute the ownership interest** of existing stockholders[116](index=116&type=chunk) - The company's obligations under the notes are secured by a security interest in substantially all of its assets, and noteholders could **foreclose on these assets** in case of a default[118](index=118&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=25&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased over 163,000 shares during Q2 2022 to satisfy employee tax withholding obligations on vested stock awards Issuer Purchases of Equity Securities (Q2 2022) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 1 - 30, 2022 | 27,835 | $3.67 | | May 1 - 31, 2022 | 116,133 | $2.56 | | June 1 - 30, 2022 | 19,766 | $2.61 | | **Total** | **163,734** | **$2.95** | - The repurchased shares were acquired by the company to cover withholding taxes for employees upon the vesting of restricted stock awards[121](index=121&type=chunk) [Item 6. Exhibits](index=26&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including bylaws, agreements, and required officer certifications [Signatures](index=27&type=section&id=SIGNATURES) - The report was signed on August 12, 2022, by **William W. Smith, Jr. (CEO) and James M. Kempton (CFO)**[127](index=127&type=chunk)

Smith Micro Software, Inc. (NASDAQ:SMSI) Q2 2022 Earnings Conference Call August 11, 2022 4:30 PM ET Company Participants Charles Messman - VP, IR and Corporate Development Bill Smith - Chairman, President and CEO James Kempton - CFO Conference Call Participants Josh Nichols - B. Riley Jim McIlree - Dawson James Scott Searle - ROTH Capital Operator Good day and welcome to the Smith Micro Second Quarter 2020 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-35525 SMITH MICRO SOFTWARE, INC. (Exact name of registrant as specified in its charter) WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR (State or other jurisdiction of incorporation or organization) Delaware 33 ...