Powerfleet, Inc.(US:AIOT)2025-08-11 20:19Part I - Financial Information This section presents the unaudited condensed consolidated financial statements and management's analysis of financial condition and results Item 1. Financial Statements (Unaudited) This section presents the unaudited condensed consolidated financial statements and related notes Condensed Consolidated Balance Sheets This section presents the company's financial position, detailing assets, liabilities, and equity at specific dates | Metric | March 31, 2025 (in thousands) | June 30, 2025 (in thousands) | Change (in thousands) | | :--- | :--- | :--- | :--- | | Total Assets | $910,071 | $930,782 | +$20,711 | | Total Liabilities | $463,329 | $469,902 | +$6,573 | | Total Equity | $446,742 | $460,880 | +$14,138 | | Cash and cash equivalents | $44,392 | $31,196 | -$13,196 | | Accounts receivables, net | $78,623 | $81,482 | +$2,859 | | Inventory, net | $18,350 | $23,892 | +$5,542 | | Goodwill | $383,146 | $394,668 | +$11,522 | | Intangible assets, net | $258,582 | $263,745 | +$5,163 | Condensed Consolidated Statements of Operations This section presents the company's financial performance, detailing revenues, expenses, and net loss | Metric | Three Months Ended June 30, 2024 (in thousands) | Three Months Ended June 30, 2025 (in thousands) | Change (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $75,430 | $104,121 | +$28,691 | +38.0% | | Gross Profit | $39,648 | $56,481 | +$16,833 | +42.5% | | Loss from Operations | $(18,235) | $(2,039) | +$16,196 | -88.8% | | Net Loss | $(22,312) | $(10,234) | +$12,078 | -54.1% | | Net Loss Attributable to Common Stockholders | $(22,337) | $(10,234) | +$12,103 | -54.2% | | Net Loss Per Share (Basic and Diluted) | $(0.21) | $(0.08) | +$0.13 | -61.9% | Condensed Consolidated Statements of Comprehensive (Loss) Income This section reports the total change in equity from non-owner sources, including net loss and foreign currency translation adjustments | Metric | Three Months Ended June 30, 2024 (in thousands) | Three Months Ended June 30, 2025 (in thousands) | Change (in thousands) | | :--- | :--- | :--- | :--- | | Net loss attributable to common stockholders | $(22,337) | $(10,234) | +$12,103 | | Foreign currency translation adjustment | $418 | $22,519 | +$22,101 | | Comprehensive (loss) income | $(21,919) | $12,285 | +$34,204 | Condensed Consolidated Statement of Changes in Stockholders' Equity This section details changes in the company's equity over specific periods, including net loss, foreign currency adjustments, and stock-based compensation | Metric | April 1, 2025 (in thousands) | June 30, 2025 (in thousands) | Change (in thousands) | | :--- | :--- | :--- | :--- | | Total Stockholder's Equity (beginning of period) | $446,742 | $446,742 | - | | Net loss attributable to common stockholders | - | $(10,234) | $(10,234) | | Foreign currency translation adjustment | - | $22,519 | +$22,519 | | Stock-based compensation | - | $1,853 | +$1,853 | | Total Stockholder's Equity (end of period) | $446,742 | $460,880 | +$14,138 | Condensed Consolidated Statements of Cash Flows This section outlines the company's cash inflows and outflows from operating, investing, and financing activities over specific periods | Metric | Three Months Ended June 30, 2024 (in thousands) | Three Months Ended June 30, 2025 (in thousands) | Change (in thousands) | | :--- | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(7,615) | $4,721 | +$12,336 | | Net cash provided by (used in) investing activities | $19,637 | $(11,822) | -$31,459 | | Net cash used in financing activities | $(89,470) | $(6,769) | +$82,701 | | Net decrease in cash and cash equivalents, and restricted cash | $(78,271) | $(13,145) | +$65,126 | | Cash and cash equivalents, and restricted cash at end of the period | $31,393 | $35,643 | +$4,250 | Notes to Condensed Consolidated Financial Statements This section provides detailed explanations and disclosures for the condensed consolidated financial statements, covering significant accounting policies, business combinations, debt, equity, and other financial instruments Note 1 - Description of the Company and Basis of Presentation This note describes Powerfleet, Inc. as a global AIoT solutions provider and details recent acquisitions - Powerfleet, Inc. is a global provider of Artificial Intelligence-of-Things ("AIoT") solutions for managing high-value enterprise assets23 - The company completed the acquisition of MiX Telematics on April 2, 2024, and Fleet Complete on October 1, 2024, with their financial results included in the consolidated statements for the three months ended June 30, 20252425 Note 2 - Use of Estimates This note explains the critical role of management's estimates and assumptions in financial reporting - Management's estimates and assumptions are critical for financial reporting, particularly in areas such as business combinations, allowance for credit losses, income taxes, impairment of intangible assets (including goodwill), capitalized software development costs, and market-based stock-based compensation2728 Note 3 - Acquisition This note details the acquisition of Fleet Complete, including consideration transferred, funding, and goodwill recognition - The FC Acquisition of Fleet Complete was consummated on October 1, 2024, for an estimated fair value of consideration transferred of $189,950 thousand2930 | Consideration Component | October 1, 2024 (in thousands) | | :--- | :--- | | Fair value of Powerfleet common stock transferred | $21,343 | | Cash consideration to former shareholders | $16,225 | | Repayment of Fleet Complete's existing debt | $152,382 | | Total fair value of consideration | $189,95