Revenue Performance - Revenues for the three months ended September 30, 2024, increased to $1,897 thousand, reflecting a 7% quarter-over-quarter growth driven by new enterprise client onboarding and deeper platform integration [178]. - For the nine months ended September 30, 2024, revenues reached $5,481 thousand, compared to $4,027 thousand for the same period in 2023, driven by a transition to a full SaaS model [186]. Subscription Revenue - Subscription-based revenue constituted 87% of total revenue for the three months ended September 30, 2024, up from 80% in the same period of 2023, indicating a shift to a full SaaS model [179]. - Subscription-based revenue for the nine months ended September 30, 2024, was 87%, up from 79% in 2023, indicating an 8% increase in the revenue mix [187]. Profitability and Margins - Gross profit margin remained stable at 80% for both the three months ended September 30, 2024, and 2023, despite an increase in cost of revenues to $372 thousand from $358 thousand [180]. - Gross profit margin improved to 81% for the nine months ended September 30, 2024, compared to 77% in 2023, despite an increase in cost of revenues to $1,052 thousand from $925 thousand [188]. Operating Expenses - Operating expenses decreased to $4,851 thousand for the three months ended September 30, 2024, down from $5,641 thousand in 2023, primarily due to reductions in sales and marketing expenses [181]. - Operating expenses for the nine months ended September 30, 2024, were $14,992 thousand, up from $11,501 thousand in 2023, reflecting increased costs in various operational areas [189]. Net Loss - The net loss for the nine months ended September 30, 2024, was $15,430 thousand, compared to a net loss of $10,531 thousand for the same period in 2023 [186]. - The company reported a net loss of approximately $15,430 thousand for the nine months ended September 30, 2024, compared to a net loss of $10,531 thousand for the same period in 2023 [203]. Cash Flow and Liquidity - Net cash used in operating activities during the nine months ended September 30, 2024, was $(4,629) thousand, compared to $(8,937) thousand for the same period in 2023 [205]. - The company has a working capital deficiency of approximately $7,404 thousand as of September 30, 2024 [203]. - Cash flows used in investing activities during the nine months ended September 30, 2024, were approximately $(30) thousand, compared to $9,956 thousand for the same period in 2023 [206]. - Net cash provided by financing activities during the nine months ended September 30, 2024, was approximately $3,480 thousand, compared to $4,674 thousand for the same period in 2023 [207]. - The company believes its current liquidity position is sufficient to meet its working capital needs for the next 12 months [204]. Debt and Obligations - As of November 12, 2024, the company owed approximately $2,731 thousand in principal and accrued interest related to the December 2023 Note [199]. - As of September 30, 2024, the total obligation for operating leases is approximately $585 thousand, with about $377 thousand expected to be paid in the next twelve months [209]. Accounting and Compliance - The company is classified as an "emerging growth company" under the JOBS Act, allowing it to take advantage of certain reporting exemptions [215]. - The company has elected to utilize the extended transition period for complying with new or revised accounting standards, which may affect comparability with other companies [216]. - There have been no significant changes to critical accounting estimates during the nine months ended September 30, 2024, compared to the previous annual report [214]. - The company’s financial statements are prepared in accordance with U.S. GAAP, requiring assumptions and estimates that could materially impact reported amounts [211]. - The company has not yet decided whether to take advantage of all exemptions available under the JOBS Act, which could affect stock attractiveness and trading activity [215]. - The management regularly reviews accounting policies and estimates to ensure fair presentation in accordance with GAAP [211]. - The company’s significant accounting policies are detailed in Note 2 of the unaudited condensed consolidated financial statements [212]. - Critical accounting estimates are considered complex and may have a material impact on financial statements [213]. - The company’s decision regarding the extended transition period for accounting standards compliance is irrevocable [216].
KINS TECHNOLOGY(KINZ) - 2024 Q3 - Quarterly Report