Revenue Growth - Revenue for the three months ended March 31, 2022, was $10,757, representing an increase of $5,753, or 115%, compared to the same period in 2021[196]. - Core digital signage products and services revenue increased by $6,647, or 133%, despite supply chain disruptions related to semiconductor chips[197]. - Hardware revenues were $6,459 in 2022, an increase of $3,643, or 129%, driven by a large customer transaction expected to exceed $10,000 in revenues[200]. - Services and other revenues increased by $2,110, or 96%, to $4,298 for the three months ended March 31, 2022, due to the inclusion of 44 days of Reflect's operations[201]. Profitability - Gross profit for the three months ended March 31, 2022, was $3,892, reflecting an increase of $1,658, or 74%, compared to the same period in 2021[196]. - Gross profit rose by $1,658, or 74%, but gross profit margin decreased to 36.2% from 44.6% due to a shift in revenue mix to 60% hardware[202]. - Net income for the three months ended March 31, 2022, was $2,502, representing an increase of $1,230, or 97%, compared to the same period in 2021[196]. Operating Expenses - Total operating expenses for the three months ended March 31, 2022, were $4,906, an increase of $2,459, or 100%, compared to the same period in 2021[196]. - Sales and marketing expenses increased by $372, or 111%, to $707 for the three months ended March 31, 2022, compared to the same period in 2021[196]. - Research and development expenses increased by $70, or 41%, to $241 for the three months ended March 31, 2022, compared to the same period in 2021[196]. - General and administrative expenses, excluding bad debt, increased by $645, or 31%, driven by the acquisition of Reflect, with integration activities expected to yield savings by the end of 2022[205]. - Bad debt expenses increased by $618, or 121%, in 2022 compared to 2021, returning to a more normalized rate[207]. - Depreciation and amortization expenses increased by $363, or 106%, due to the addition of $21,500 in amortizing intangible assets from the Merger[208]. Cash Flow - Cash flows provided by operating activities were $1,201 for the period ended March 31, 2022, compared to cash flows used of $21 for the same period in 2021[217]. - Net cash used in investing activities was $17,969 for the three months ended March 31, 2022, driven by the completion of the Merger and investments in software platforms[218]. - Net cash provided by financing activities was $19,873 for the three months ended March 31, 2022, resulting from the completion of Equity Financing and Debt Financing[219]. Acquisition Impact - The Company acquired Reflect on February 17, 2022, and included 44 days of Reflect's operations in the consolidated results for the three months ended March 31, 2022[199]. - Sales and marketing expenses increased by $372, or 111%, driven by the acquisition of Reflect, with expectations for continued high expenses in future periods[203]. - Research and development expenses increased by $70, or 41%, primarily due to the acquisition of Reflect, with an expectation for continued elevated expenses[204].
Creative Realities(CREX) - 2022 Q1 - Quarterly Report