Oblong(OBLG) - 2025 Q2 - Quarterly Report

PART I - FINANCIAL INFORMATION Item 1. Financial Statements This section presents unaudited condensed consolidated financial statements, including balance sheets, statements of operations, equity changes, cash flows, and notes Condensed Consolidated Balance Sheets | ASSETS (In thousands) | June 30, 2025 (Unaudited) | December 31, 2024 | | :-------------------- | :------------------------ | :------------------ | | Cash and cash equivalents | $10,795 | $4,965 | | Digital assets | $1,683 | — | | Accounts receivable, net | $15 | $186 | | Prepaid expenses and other current assets | $566 | $118 | | Total current assets | $13,059 | $5,269 | | Other assets | $5 | $6 | | Total assets | $13,064 | $5,275 | | LIABILITIES AND STOCKHOLDERS' EQUITY (In thousands) | June 30, 2025 (Unaudited) | December 31, 2024 | | Current liabilities: | | | | Accounts payable | $122 | $105 | | Accrued expenses and other current liabilities | $1,659 | $1,131 | | Deferred revenue | $31 | $36 | | Total current liabilities | $1,812 | $1,272 | | Total liabilities | $1,812 | $1,272 | | Stockholders' equity: | | | | Additional paid-in capital | $244,984 | $236,458 | | Accumulated deficit | $(233,551) | $(232,274) | | Total stockholders' equity | $11,252 | $4,003 | | Total liabilities and stockholders' equity | $13,064 | $5,275 | Unaudited Condensed Consolidated Statements of Operations | (In thousands, except share and per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $592 | $611 | $1,214 | $1,237 | | Cost of revenue | $364 | $491 | $737 | $1,120 | | Gross profit | $228 | $120 | $477 | $117 | | Total operating expenses | $911 | $1,138 | $1,851 | $2,319 | | Operating loss | $(683) | $(1,018) | $(1,374) | $(2,202) | | Total other income, net | $78 | $44 | $104 | $92 | | Net loss | $(605) | $(983) | $(1,277) | $(2,119) | | Net loss attributable to common stockholders | $(618) | $(1,003) | $(1,302) | $(2,183) | | Basic and diluted net loss per share | $(0.38) | $(1.38) | $(0.86) | $(3.32) | Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity | (In thousands, except shares data) | Series F Preferred Stock Shares | Common Stock Shares | Treasury Stock Amount | Additional Paid-In Capital | Accumulated Deficit | Total Stockholders' Equity | | :--------------------------------- | :------------------------------ | :------------------ | :-------------------- | :------------------------- | :------------------ | :------------------------- | | Balance on December 31, 2024 | 545 | 1,144,926 | $(181) | $236,458 | $(232,274) | $4,003 | | Net loss (Q1 2025) | — | — | — | — | $(672) | $(672) | | Common warrant exercise, net of fees | — | 10,000 | — | $31 | — | $31 | | Series F Preferred Stock dividends | — | — | — | $(12) | — | $(12) | | Balance on March 31, 2025 | 545 | 1,154,926 | $(181) | $236,477 | $(232,946) | $3,350 | | Net loss (Q2 2025) | — | — | — | — | $(605) | $(605) | | Proceeds from Private Placement, net of fees | — | — | — | $6,925 | — | $6,925 | | Advisor warrant issuance | — | — | — | $335 | — | $335 | | Common warrant exercise, net of fees | — | 394,864 | — | $1,241 | — | $1,241 | | Series F Preferred Stock conversions | (190) | 45,163 | — | $19 | — | $19 | | Series F Preferred Stock dividends | — | — | — | $(13) | — | $(13) | | Balance on June 30, 2025 | 355 | 1,594,953 | $(181) | $244,984 | $(233,551) | $11,252 | | (In thousands, except shares data) | Series F Preferred Stock Shares | Common Stock Shares | Treasury Stock Amount | Additional Paid-In Capital | Accumulated Deficit | Total Stockholders' Equity | | :--------------------------------- | :------------------------------ | :------------------ | :-------------------- | :------------------------- | :------------------ | :------------------------- | | Balance on December 31, 2023 | 1,930 | 573,644 | $(181) | $233,913 | $(228,231) | $5,501 | | Net loss (Q1 2024) | — | — | — | — | $(1,136) | $(1,136) | | Stock-based compensation | — | — | — | $31 | — | $31 | | Series F Preferred Stock conversions | (922) | 90,056 | — | $82 | — | $82 | | Series F Preferred Stock dividends | — | — | — | $(44) | — | $(44) | | Balance on March 31, 2024 | 1,008 | 663,700 | $(181) | $233,982 | $(229,367) | $4,434 | | Net loss (Q2 2024) | — | — | — | — | $(983) | $(983) | | Stock-based compensation | — | — | — | $31 | — | $31 | | Preferred warrant exercise, net of fees | 1,648 | — | — | $1,478 | — | $1,478 | | Series F Preferred Stock conversions | (2,111) | 198,912 | — | $112 | — | $112 | | Series F Preferred Stock dividends | — | — | — | $(20) | — | $(20) | | Balance on June 30, 2024 | 545 | 862,612 | $(181) | $235,583 | $(230,350) | $5,052 | Unaudited Condensed Consolidated Statements of Cash Flows | (In thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------- | :----------------------------- | :----------------------------- | | Net loss | $(1,277) | $(2,119) | | Net cash used in operating activities | $(717) | $(1,610) | | Net cash used in investing activities | $(1,650) | — | | Net cash provided by financing activities | $8,197 | $1,478 | | Increase (decrease) in cash | $5,830 | $(132) | | Cash and cash equivalents at beginning of period | $4,965 | $5,990 |