Revenue Performance - Revenue for the three months ended June 30, 2024, was $1,766 thousand, a decrease of $149 thousand (approximately 7.8%) compared to $1,915 thousand for the same period in 2023[166]. - For the six months ended June 30, 2024, revenue was $3,584 thousand, an increase from $2,257 thousand for the same period in 2023, reflecting growth in the subscription model[174]. Subscription Revenue - Subscription-based revenue accounted for 85% of total revenue for the three months ended June 30, 2024, up from 79% in the same period of 2023, indicating a 6% increase in the revenue mix[167]. - Subscription-based revenue represented 86% of total revenue for the six months ended June 30, 2024, compared to 78% for the same period in 2023, marking an 8% increase in the revenue mix[175]. Profitability and Margins - Gross profit margin improved to 80% for the three months ended June 30, 2024, compared to 75% for the same period in 2023, reflecting a decrease in cost of revenues by approximately 26%[168]. - Gross profit margin increased to 81% for the six months ended June 30, 2024, compared to 75% for the same period in 2023, reflecting a decrease in cost of revenues by approximately 35%[176]. Operating Expenses - Operating expenses for the three months ended June 30, 2024, were $5,063 thousand, a slight decrease of $55 thousand (approximately 1.1%) from $5,118 thousand in the same period of 2023[169]. - Operating expenses rose to $10,141 thousand for the six months ended June 30, 2024, up from $5,860 thousand in the same period of 2023[177]. Other Expenses - Other expenses decreased significantly to $1,765 thousand for the three months ended June 30, 2024, from $12,028 thousand in the same period of 2023, a reduction of $10,263 thousand (approximately 85.3%)[170]. - Other expenses decreased by $6,787 thousand for the six months ended June 30, 2024, primarily due to a reduction in changes in fair value of derivative warrant liabilities[179]. Net Loss - The net loss for the three months ended June 30, 2024, was $5,256 thousand, significantly reduced from a net loss of $14,730 thousand in the same period of 2023[165]. - The company reported a net loss of $10,426 thousand for the six months ended June 30, 2024, compared to a net loss of $11,972 thousand for the same period in 2023[191]. Income Tax Benefit - The income tax benefit for the three months ended June 30, 2024, was approximately $159 thousand, down from $981 thousand in the same period of 2023, primarily due to the release of valuation allowance[171]. - The company incurred an income tax benefit of approximately $366 thousand for the six months ended June 30, 2024, down from a benefit of $2,541 thousand in the same period of 2023[180]. Cash Flow and Liquidity - As of June 30, 2024, the company had a working capital deficiency of approximately $6,807 thousand and cash of approximately $6,160 thousand[191]. - The company used $2,560 thousand in net cash for operating activities during the six months ended June 30, 2024[188]. - The company entered into a Securities Purchase Agreement to raise up to $10,000 thousand in shares of common stock, which is expected to support liquidity needs[188]. - Net cash flows provided by financing activities during the six months ended June 30, 2024, was approximately $2,480 thousand, compared to $328 thousand and $8,892 thousand in the previous periods[195]. Business Combination - The company completed a Business Combination on March 14, 2023, valued at approximately $69,928 thousand, which included the transfer of the Enterprise Apps Business[158]. Accounting and Compliance - The Company has elected to take advantage of the extended transition period for complying with new accounting standards as an emerging growth company[204]. - There have been no significant changes to critical accounting estimates during the six months ended June 30, 2024[202].
KINS TECHNOLOGY(KINZ) - 2024 Q2 - Quarterly Report