Vislink Technologies(VISL) - 2021 Q1 - Quarterly Report

Financial Performance - Total revenue for the three months ended March 31, 2021, was $4,090,000, a decrease of 23.6% compared to $5,352,000 for the same period in 2020[19]. - Net loss for the three months ended March 31, 2021, was $2,667,000, compared to a net loss of $4,430,000 for the same period in 2020, representing a 39.8% improvement[19]. - Basic and diluted loss per share for the three months ended March 31, 2021, was $0.07, compared to $0.54 for the same period in 2020[19]. - Comprehensive loss for the three months ended March 31, 2021, was $2,710,000, compared to $4,153,000 for the same period in 2020[19]. - For the three months ended March 31, 2021, Vislink reported a net loss of $2.67 million, compared to a net loss of $4.43 million for the same period in 2020, representing a 40% improvement in net loss year-over-year[23]. Assets and Liabilities - Total current assets increased to $72,785,000 as of March 31, 2021, from $16,515,000 as of December 31, 2020[17]. - Cash balance significantly increased to $59,877,000 as of March 31, 2021, compared to $5,190,000 as of December 31, 2020[17]. - Total liabilities decreased to $10,159,000 as of March 31, 2021, from $10,654,000 as of December 31, 2020[17]. - Total stockholders' equity increased to $66,494,000 as of March 31, 2021, from $9,997,000 as of December 31, 2020[17]. - As of March 31, 2021, the Company had $64.1 million in working capital, $272.8 million in accumulated deficits, and $59.9 million of cash on hand[59]. Cash Flow and Financing - The company raised $62.66 million in equity financing during the first quarter of 2021, significantly up from $5.99 million in the same period of 2020[23]. - Cash and cash equivalents at the end of the period increased to $59.88 million, compared to $2.46 million at the end of March 31, 2020, marking a substantial increase of 2320%[23]. - The company closed on equity financing on February 8, 2021, receiving net proceeds of approximately $46,820,000 from the issuance of 18,181,820 shares of common stock[86]. - During the three months ended March 31, 2021, the company issued 6,079,598 shares of common stock, generating net proceeds of $12,271,000[87]. Expenses - Research and development expenses for the three months ended March 31, 2021, were $602,000, a slight decrease from $656,000 for the same period in 2020[19]. - The company recognized stock-based compensation of $40,000 for the three months ended March 31, 2021, down from $405,000 in the same period of 2020[23]. - The stock-based compensation expense for the three months ended March 31, 2021, was $12,000, a significant decrease from $386,000 in the same period of 2020[91]. - The Company recognized amortization expenses for intangible assets totaling $210,000 for the three months ended March 31, 2021, compared to $301,000 for the same period in 2020[68]. Market Presence and Operations - Vislink has over 200,000 systems installed worldwide, indicating a strong market presence in live broadcast solutions[27]. - The company continues to focus on expanding its satellite communication solutions, with over 2,000 systems deployed globally, catering to governments, militaries, and broadcasters[29]. - Approximately 11% of the company's revenue for the three months ended March 31, 2021, came from a single customer, totaling approximately $466,000[127]. - The company reported that 13% of its consolidated inventory purchases during the same period came from one vendor, amounting to approximately $473,000[129]. Risks and Uncertainties - The Company’s operations are subject to significant risks and uncertainties, including those related to the COVID-19 pandemic[33]. - The Company is currently unable to predict the full impact of the COVID-19 pandemic on its financial condition and results of operations due to numerous uncertainties[62]. - The Company has taken liquidity preservation actions due to the COVID-19 pandemic and believes it has sufficient funds to continue operations for at least twelve months from the date of the financial statements[63]. Stock Options and Warrants - The company has performance-based stock options with vesting conditions tied to achieving cumulative EBITDA targets of $6,000,000, $15,000,000, and $23,000,000 over four consecutive fiscal quarters[105]. - As of March 31, 2021, Mr. Miller held 250,000 performance-based stock options, with a weighted average exercise price of $1.65[104]. - As of March 31, 2021, the company had 9,305,978 outstanding warrants with a weighted average exercise price of $5.30[89]. - The intrinsic value per share for time-vested options as of March 31, 2021, was $1.81, with a remaining expense of stock-based compensation of $479,000[96]. Debt Management - The company reported a gain on settlement of debt amounting to $194,000 during the three months ended March 31, 2021[19]. - The Company incurred a loss from operations of approximately $2.8 million and cash used in operating activities of $4.3 million for the three months ended March 31, 2021[59]. - The Company has a total Payroll Protection Program (PPP) loan obligation of $1,168,000, which is fully compliant with all covenants as of March 31, 2021[74]. - A down payment of $225,000 was made, with a promissory note of $873,000 incurred[133].