Boxlight(US:BOXL)2024-05-08 20:20Financial Performance - Revenues for Q1 2024 were $37,093,000, a decrease of 10.1% compared to $41,189,000 in Q1 2023[63] - Gross profit for Q1 2024 was $12,815,000, down from $15,148,000 in Q1 2023, reflecting a gross margin decline[63] - Net loss for Q1 2024 was $7,089,000, compared to a net loss of $2,924,000 in Q1 2023, indicating a significant increase in losses[63] - The Company reported a comprehensive loss of $7,900,000 for Q1 2024, compared to a comprehensive loss of $2,366,000 in Q1 2023[63] - Net loss per common share for Q1 2024 was $(0.76), compared to $(0.35) in Q1 2023, reflecting worsening financial performance[63] - The Company recorded a total pretax book loss of $6.22 million for the three months ended March 31, 2024, compared to a loss of $2.87 million for the same period in 2023[196] Assets and Liabilities - The company generated total current assets of $86.485 million as of March 31, 2024, down from $100.378 million at the end of 2023, reflecting a decrease of approximately 13.8%[48] - The company's total liabilities decreased to $104.792 million as of March 31, 2024, compared to $113.311 million at the end of 2023, representing a reduction of about 7.5%[48] - The company’s accumulated deficit increased to $(111.364) million as of March 31, 2024, compared to $(104.275) million at the end of 2023, indicating a worsening financial position[48] - The company’s cash and cash equivalents decreased to $11.812 million as of March 31, 2024, down from $17.253 million at the end of 2023, a decline of approximately 31.5%[48] - Accounts receivable – trade as of March 31, 2024, was $29.8 million, a decrease from $33.1 million as of December 31, 2023[127] - The balance of derivative liabilities decreased from $696,000 as of March 31, 2023, to $13,000 as of March 31, 2024[84] Revenue Breakdown - For the three months ended March 31, 2024, total revenues were $37.1 million, a decrease of 9.5% from $41.2 million in the same period of 2023[120] - Product revenue for the same period was $34.4 million, down 10.0% from $38.7 million year-over-year[120] - Service revenue increased to $2.7 million, up 6.0% from $2.5 million in the prior year[120] Operating Expenses - Operating expenses increased to $16,420,000 in Q1 2024 from $15,328,000 in Q1 2023, driven by higher general and administrative costs[63] - Total operating expenses for Q1 2024 included $15,249,000 in general and administrative expenses, an increase from $14,731,000 in Q1 2023[63] - Research and development expenses rose to $1,171,000 in Q1 2024, up from $597,000 in Q1 2023, highlighting increased investment in innovation[63] - Cost of revenues for Q1 2024 was $24.3 million, down 6.8% from $26.0 million in Q1 2023, attributed to a decrease in units sold[214] Debt and Financing - The Company may not maintain compliance with the Senior Leverage Ratio, raising substantial doubt about its ability to continue as a going concern within one year[77] - The Senior Leverage Ratio decreased to 2.50 at December 31, 2023, and will be 2.00 at March 31, 2024, with a requirement of 6.00 under the amended agreement[102] - The Company is actively working to refinance its debt with new lenders, although it does not have written agreements as of the issuance of this report[103] - Total debt, net of premium, discount, and issuance costs, decreased from $40.171 million as of December 31, 2023, to $38.456 million as of March 31, 2024, a reduction of approximately 4.3%[158] Stock and Equity - The Company issued 33,414 shares of Class A common stock to adjust fractional shares following a reverse stock split[75] - The Company’s authorized shares for Class A common stock were adjusted to 18,750,000 following the reverse stock split[100] - The Company has a share repurchase program authorized for up to $15.0 million of Class A common stock, which remains unused as of March 31, 2024[205] - The Company issued 1,586,620 shares of Series B preferred stock and 1,320,850 shares of Series C preferred stock, with a stated value of $10.00 per share and an 8% annual dividend for Series B[177] Compliance and Legal Matters - The company has not identified any legal matters that could materially affect its consolidated results of operations, financial position, or cash flows[35] - The Company recorded a decrease in stock options expense from $169 million in 2023 to $104 million in 2024[209] - The Company has evaluated its deferred tax assets and maintained a full valuation allowance due to a history of cumulative losses, impacting its ability to utilize net operating loss carryforwards[198] Future Outlook - The Company expects to recognize revenue on 35.5% of the remaining performance obligations during the next 12 months[144] - The Company is evaluating alternatives to refinance or restructure the Series B preferred shares[78] - The Company is evaluating the impact of IRC Sec 382 ownership changes on its net operating losses, which may limit future utilizations[172]