Boxlight(US:BOXL)2024-08-13 20:06Financial Performance - Total revenues for Q2 2024 were $38.5 million, a decrease of 18.1% from $47.1 million in Q2 2023, primarily due to lower global demand for interactive flat panel displays [132]. - Gross profit for Q2 2024 was $14.5 million, down 18.5% from $17.8 million in Q2 2023, with a gross profit margin of 37.7% compared to 37.9% in Q2 2023 [133]. - Total revenues for the six months ended June 30, 2024 were $75.6 million, a 14.3% decrease from $88.2 million in the same period of 2023 [136]. - Gross profit for the six months ended June 30, 2024 was $27.3 million, down 17.1% from $33.0 million in 2023, with a gross profit margin of 36.2% compared to 37.4% in 2023 [137]. - Net loss for Q2 2024 was $1.5 million, compared to a net loss of $0.8 million in Q2 2023, reflecting the changes in revenues and expenses noted above [135]. - Net loss for the six months ended June 30, 2024 was $8.6 million, compared to a net loss of $3.7 million in 2023 [139]. Expenses - Cost of revenues decreased by 17.9% to $24.0 million in Q2 2024 from $29.2 million in Q2 2023, attributed to a decrease in units sold [132]. - General and administrative expenses for Q2 2024 were $12.3 million, representing 32.0% of revenue, a slight decrease from $15.2 million or 32.4% of revenue in Q2 2023 [133]. - General and administrative expenses decreased to $27.6 million, representing 36.5% of revenue, compared to $30.0 million or 33.9% of revenue in 2023 [137]. - Research and development expenses increased to $985 thousand in Q2 2024, representing 2.6% of revenue, up from $525 thousand or 1.1% of revenue in Q2 2023 [134]. - Research and development expenses increased to $2.2 million, representing 2.9% of revenue, up from $1.1 million or 1.3% of revenue in 2023 [138]. - Other expense, net for Q2 2024 was $2.8 million, an increase of $0.2 million from $2.6 million in Q2 2023, primarily due to interest expense on term loans [135]. Cash and Liquidity - Cash and cash equivalents as of June 30, 2024 were $7.5 million, down from $15.6 million on June 30, 2023 [144]. - Net cash used in operating activities for the six months ended June 30, 2024 was $7.3 million, compared to $10 thousand in 2023 [145]. - The company had a working capital balance of $46.7 million and a current ratio of 2.21 as of June 30, 2024, down from a working capital balance of $64.8 million and a current ratio of 2.79 in 2023 [144]. Compliance and Debt Management - The company is not in compliance with its Senior Leverage Ratio financial covenant under the Credit Agreement as of June 30, 2024, but has obtained a waiver for the leverage ratio default [151]. - The company is actively working to refinance its debt with new lenders on more favorable terms, although no agreements have been executed as of the issuance of the financial statements [153]. Strategic Initiatives - The company aims to achieve significant cost-savings through merging operations of acquired companies and leveraging economies of scale [125]. - The company has implemented a comprehensive plan to reach and maintain profitability through core business operations and strategic acquisitions [123]. - The company is focused on expanding its reseller partner network in key territories and new markets to increase penetration and reach [123]. Accounting Policies - The company prepares its financial statements in accordance with GAAP, requiring assumptions and estimates about future events that may materially affect reported amounts [156]. - Significant accounting policies include revenue recognition, intangible assets, stock-based compensation expense, and income taxes, which require complex judgments [157]. - The company regularly reviews its accounting policies and estimates to ensure fair presentation of financial statements [156].