Boxlight(US:BOXL)2021-08-11 16:00Revenue Growth - Total revenues for Q2 2021 were $46.8 million, a 500% increase from $7.8 million in Q2 2020, driven by acquisitions and increased demand in the U.S. and Europe[171] - Total revenues for the first half of 2021 were $80.2 million, a 490% increase from $13.6 million in the first half of 2020, with organic revenue growth of 40%[180] Cost of Revenues - Cost of revenues for Q2 2021 was $33.9 million, a 565% increase from $5.1 million in Q2 2020, attributed to acquisitions and rising global freight costs[173] - Cost of revenues for the first half of 2021 was $58.8 million, a 532% increase from $9.3 million in the first half of 2020, driven by acquisitions and increased shipping costs[182] Gross Profit and Margins - Gross profit for Q2 2021 was $12.8 million, with a gross profit margin decrease from 34% to 27% due to increased freight costs and product cost adjustments[174] - Gross profit for the first half of 2021 was $21.4 million, with a gross profit margin decrease from 32% to 27% due to customs and freight expenses[183] Expenses - General and administrative expenses for Q2 2021 were $10.8 million, representing 23% of revenues, compared to $3.2 million and 41% of revenues in Q2 2020[175] - Research and development expenses for Q2 2021 were $481 thousand, or 1% of revenues, up from $285 thousand and 4% of revenues in Q2 2020[176] - Other expense for Q2 2021 was $1.3 million, up from $0.6 million in Q2 2020, primarily due to increased interest expense and losses from debt settlements[177] Net Loss and Income Tax - Net loss for Q2 2021 was $2.2 million, reduced from $1.4 million in Q2 2020, reflecting positive operating income and margin improvements[179] - Income tax expense for the three months ending June 30, 2021, was $2.5 million, compared to no income tax expenses for the same period in 2020[187] - Net loss increased to $7.4 million for the six months ended June 30, 2021, from $3.4 million in 2020, primarily due to lower gross profit margins and increased expenses[188] EBITDA - EBITDA for the six months ended June 30, 2021, was $507 thousand, compared to a loss of $1.848 million in 2020[195] - Adjusted EBITDA for the six months ended June 30, 2021, was $6.953 million, compared to a loss of $672 thousand in 2020[196] Cash and Liquidity - As of June 30, 2021, cash and cash equivalents were $7.4 million, up from $6.1 million a year ago, with a current ratio of 1.52[200] - Net cash used in operating activities for the six months ended June 30, 2021, was $4.6 million, an improvement from $6.2 million in 2020[201] Financing Activities - The company amended its accounts receivable agreement to increase the maximum facility limit amount to $15 million[205] - The company entered into a securities purchase agreement for a $22 million secured convertible note, with a funding amount of $20 million[208] - The company expects to manage through current challenges in equity and debt finance markets by adjusting payment terms with customers and vendors[203] Seasonal Trends and Inventory - The company anticipates that seasonal trends in revenues will reduce as the business grows, with inventory levels peaking before the school year[197] Stock Offerings - The Company completed a public offering of 17,250,000 shares of Class A common stock at a price of $2.00 per share, generating gross proceeds of $34,500,000[210] - The Company also conducted a June Offering of 13,333,333 shares at $0.75 per share, resulting in gross proceeds of $10,000,000, with an additional $1,500,000 from the Over-Allotment Option[210] - Underwriters received a 7% discount on the offerings, totaling approximately $2,415,000 for the July Offering and a similar amount for the June Offering[210] Financial Reporting and Compliance - The Company has no significant off-balance sheet arrangements that could impact its financial condition or liquidity[211] - The Company is classified as an "emerging growth company," allowing it to take advantage of reduced reporting requirements[214] - The Company has elected to defer the adoption of new or revised financial accounting standards until they apply to private companies, potentially affecting comparability with other public companies[217]