Boxlight(US:BOXL)2021-05-12 16:00Financial Performance - Total revenues for Q1 2021 were $33.4 million, a 484% increase from $5.7 million in Q1 2020, primarily due to the acquisition of Sahara Presentation Systems and increased demand in the U.S. and Europe[166] - Cost of revenues for Q1 2021 was $25.2 million, a 509% increase from $4.1 million in Q1 2020, driven by higher product costs and increased customs/freight costs due to supply chain challenges[167] - Gross profit for Q1 2021 was $8.2 million, with a gross profit margin of 25%, down from 28% in Q1 2020, influenced by customs and freight expenses and purchase accounting adjustments from the Sahara acquisition[168] - Net loss for Q1 2021 was $5.2 million, compared to a net loss of $1.9 million in Q1 2020, attributed to lower gross profit margins and increased interest expenses[172] - Adjusted EBITDA for Q1 2021 was $1.6 million, compared to an adjusted EBITDA loss of $677 thousand in Q1 2020, indicating improved operational efficiency[178] Expenses - General and administrative expenses for Q1 2021 were $10.0 million, representing 30% of revenue, compared to $3.9 million and 69% of revenue in Q1 2020, reflecting additional personnel costs from the Sahara acquisition[169] - Research and development expenses for Q1 2021 were $474 thousand, or 1% of revenue, up from $316 thousand and 5% of revenue in Q1 2020, primarily due to increased contract services for software development[170] Cash Flow and Financing - As of March 31, 2021, the company had cash and cash equivalents of $10.0 million and a working capital balance of $21.8 million, a significant improvement from a working capital deficit of $(7.1) million a year ago[181] - For the three months ended March 31, 2021, net cash used in operating activities was $1.6 million, compared to $890 thousand for the same period in 2020[182] - The company financed operations in 2021 with a new $20.0 million tranche of debt and a pre-existing accounts receivable financing arrangement of up to $6.0 million[184] - The company issued a $22.0 million secured convertible note to Lind Global, with a 4% interest rate, repayable in 22 equal installments[187] - The company has limited credit available from major vendors and is required to prepay for most inventory purchases, constraining cash liquidity[186] Acquisitions and Market Strategy - The company acquired Sahara Presentation Systems for a total purchase price of approximately $94.9 million, including £52.0 million in cash and £22.0 million in convertible preferred stock[148] - The company plans to expand its reseller partner network and hire new sales representatives to enhance market penetration and reach[147] Seasonal Trends - Seasonal trends affect financial performance, with inventory levels peaking in Q2 as products are prepared for the school year, leading to significant declines in Q1[179] Public Offerings and Growth Status - The company entered into a public offering on July 31, 2020, selling 17,250,000 shares of Class A common stock for gross proceeds of $34.5 million[189] - On June 11, 2020, the company completed a public offering of 13,333,333 shares at a price of $0.75 per share, raising gross proceeds of $10.0 million, with an additional $1.5 million from an overallotment option[191] - The company is classified as an "emerging growth company," allowing it to take advantage of reduced reporting requirements[197] Financial Management - The company expects to manage through current challenges in equity and debt finance markets by adjusting payment terms with customers and vendors[185] - The company has no significant off-balance sheet arrangements that could affect its financial condition or liquidity[193]