Boxlight(US:BOXL)2019-08-13 20:17Financial Performance - Total revenues for the six months ended June 30, 2019 were $16,108,730, a 3% increase from $15,660,342 in the same period of 2018[141] - Gross profit for the six months ended June 30, 2019 was $4,832,766, with a gross margin increase from 20% to 30% compared to the same period in 2018[143] - Net loss for the six months ended June 30, 2019 was $5,849,625, an increase from $5,362,060 in the same period of 2018[148] - Total revenues for the three months ended June 30, 2019 were $11,096,016, a 15% increase from $9,663,657 in the same period of 2018[149] - Gross profit for the three months ended June 30, 2019 was $3,248,226, with a gross margin increase from 18% to 29% compared to the same period in 2018[151] Expenses and Financing - Other expense for the three months ended June 30, 2019 was $192,092, a significant decrease from $2,278,656 in the same period of 2018[153] - Research and development expense for the six months ended June 30, 2019 was $560,578, up from $269,603 in the same period of 2018, primarily due to the acquisition of Qwizdom[145] - The company entered into a $4,000,000 working capital financing agreement, secured by a $4,400,000 convertible note with a maturity date of 24 months[169] - The company is required to make monthly interest payments on the convertible note at an annual rate of 8%[170] Cash Flow and Working Capital - The company had cash and cash equivalents of $945,389 and a working capital deficit of $5,047,720 as of June 30, 2019[165] - For the six months ended June 30, 2019, net cash used in operating activities was $(4,002,894), compared to $(2,313,115) for the same period in 2018[165] - The accounts receivable balance was $7,391,438 as of June 30, 2019, compared to $3,634,726 at the end of 2018[165] - The company expects to make future payments on existing leases from cash generated from operations, indicating a reliance on operational cash flow[167] - The company has a significant accumulated deficit and a net working capital deficit, raising doubts about its ability to continue as a going concern[168] Strategic Initiatives - The company acquired the assets of Modern Robotics, Inc. for $70,000 and 200,000 shares of Class A common stock[123] - The company aims to achieve significant cost-savings through merging operations and leveraging economies of scale[125][126] - The current sales pipeline has reached a record high level, indicating strong demand for technology sales in the US market[122] - The company anticipates that seasonal trends in its business will reduce as revenues grow, with the highest inventory levels typically in the second quarter[162] - The company has been proactive in obtaining contracts to offset the seasonality of its business, particularly in the fourth and first quarters[164]