Loading...
Docoh

Phunware (PHUN)

Phunware, Inc. , is the pioneer of Multiscreen-as-a-Service (MaaS), an award-winning, fully integrated enterprise cloud platform for mobile that provides companies the products, solutions, data and services necessary to engage, manage and monetize their mobile application portfolios and audiences globally at scale. Phunware's Software Development Kits (SDKs) include location-based services, mobile engagement, content management, messaging, advertising, loyalty (PhunCoin & Phun) and analytics, as well as a mobile application framework of pre-integrated iOS and Android software modules for building in-house or channel-based mobile application and vertical solutions. Phunware helps the world's most respected brands create category-defining mobile experiences, with more than one billion active devices touching its platform each month.

Company profile

Ticker
PHUN, PHUNW
Exchange
CEO
Alan S. Knitowski
Employees
Incorporated
Location
Fiscal year end
Former names
Stellar Acquisition III Inc.
SEC CIK
Subsidiaries
Phunware OpCo, Inc. • Lyte Technology, Inc. • GoTV Networks, Inc. • Taurus Merger Company, LLC • GoTV Studios, LLC • Rain Acquisition, LLC • Rain – US LLC • SendDroid, LLC • Simplikate Systems LLC • 30 Second Software, Inc. ...

PHUN stock data

Analyst ratings and price targets

Last 3 months

Investment data

Data from SEC filings
Securities sold
Number of investors

Calendar

15 Aug 22
25 Sep 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 2.71M 2.71M 2.71M 2.71M 2.71M 2.71M
Cash burn (monthly) 2.7M 8.33K 5.69M 5.69M 1.61M 1.93M
Cash used (since last report) 7.77M 23.96K 16.36M 16.35M 4.62M 5.54M
Cash remaining -5.07M 2.68M -13.65M -13.65M -1.91M -2.84M
Runway (months of cash) -1.9 321.7 -2.4 -2.4 -1.2 -1.5

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
16 Sep 22 Christopher D. Olive Common Stock Grant Acquire A No No 0 500,000 0 500,000
15 Sep 22 Ryan Costello Common Stock Sell Dispose S No No 1.9456 20,000 38.91K 132,176
19 Aug 22 Crowder Randall Common Stock Payment of exercise Dispose F No No 1.4324 14,344 20.55K 813,248
19 Aug 22 Dang Luan Common Stock Payment of exercise Dispose F No No 1.4325 5,473 7.84K 1,613,054
19 Aug 22 Aune Matt Common Stock Payment of exercise Dispose F No No 1.4324 12,719 18.22K 436,706
18 Aug 22 Dang Luan Common Stock Option exercise Acquire M No No 0 14,583 0 1,618,527
18 Aug 22 Dang Luan RSU Common Stock Option exercise Dispose M No No 0 14,583 0 29,166
18 Aug 22 Aune Matt Common Stock Option exercise Acquire M No No 0 18,750 0 449,425
18 Aug 22 Aune Matt RSU Common Stock Option exercise Dispose M No No 0 18,750 0 37,500
13F holders Current Prev Q Change
Total holders 0 0
Opened positions 0 0
Closed positions 0 0
Increased positions 0 0
Reduced positions 0 0
13F shares Current Prev Q Change
Total value 0 0
Total shares 0 0
Total puts 0 0
Total calls 0 0
Total put/call ratio
Largest owners Shares Value Change
Largest transactions Shares Bought/sold Change

Financial report summary

?
Competition
AdobeOracle
Risks
  • Risks Related to Our Business, Operations and Industry
  • We have a history of losses, we expect to continue to incur losses and we may not achieve or sustain profitability in the future.
  • We face ongoing risks related to the COVID-19 pandemic and those risks could continue to significantly disrupt or materially adversely affect our business and operating results.
  • Current and future litigation could adversely affect us.
  • Our results of operations and ability to grow could be negatively affected if we cannot adapt and expand our technology and product and service offerings in response to ongoing market changes.
  • If we are unable to expand or renew sales to existing customers, or attract new customers, our growth could be slower than expected and our business may be harmed.
  • Demand for our technology, product and service offerings could be adversely affected by volatile, negative, or uncertain economic conditions, including, but not limited to those caused by the COVID-19 pandemic, and the effects of these conditions on our customers’ businesses.
  • If we fail to maintain the efficiency of our supply chain as we respond to changes in customer demand for our products, our business could be materially adversely affected.
  • Worldwide political conditions may adversely affect demand for our products.
  • The actual market for our product solutions could be significantly smaller than estimates of total potential market opportunity and if customer demand for our services does not meet expectations, our ability to generate revenue and meet our financial targets could be adversely affected.
  • Substantial competition could reduce our market share and significantly harm our financial performance.
  • Our future results will depend on our ability to continue to focus our resources and manage costs effectively.
  • Our profitability could suffer if we are not able to manage large and complex projects and complete fixed price, fixed timeframe contracts on budget and on time.
  • Our business strategy is evolving. Investments in new services and technologies may not be successful and may involve pursuing new lines of business or strategic transactions and investments, or dispositions of assets or businesses that may no longer help us meet our objectives. Such efforts may not be successful.
  • Future acquisitions could disrupt our business and may divert management’s attention and, if unsuccessful, harm our business.
  • We may not be able to recognize revenue in the period in which our services are performed, which may cause our margins to fluctuate.
  • Our financial results may be adversely affected by changes in accounting principles applicable to us.
  • We may experience quarterly fluctuations in our operating results due to a number of factors, which makes our future results difficult to predict and could cause our operating results to fall below expectations.
  • We could be held liable for damages or our reputation could suffer from security breaches or disclosure of confidential information or personal data.
  • If we cause disruptions in our customers’ businesses or provide inadequate service, our customers may have claims for substantial damages against us, which could cause us to lose customers, have a negative effect on our corporate reputation and adversely affect our results of operations.
  • Our technology offerings and services could infringe upon the intellectual property rights of others or we might lose our ability to use intellectual property of others.
  • If we are unable to protect our intellectual property rights from unauthorized use or infringement by third parties, our business could be adversely affected.
  • If we are unable to collect our receivables from, or bill our unbilled services to, our customers, our business, results of operations or financial condition could be adversely affected.
  • Increased costs of labor and employee health and welfare benefits may adversely impact our results of operations.
  • Our global operations are subject to complex risks, some of which might be beyond our control.
  • Economic uncertainties or downturns in the general economy or the industries in which our customers operate could disproportionately affect the demand for our products and services solutions and negatively impact our operating results.
  • If platform subscriptions renewal rates decrease, or we do not accurately predict subscription renewal rates, our future revenue and operating results may be harmed.
  • If we are unable to attract new customers or sell additional services and functionality to our existing customers, our revenue growth will be adversely affected.
  • Because we recognize revenue from application development services as deliverables are transferred to customers and platform subscriptions over the term of the relevant contract, downturns or upturns in sales are not immediately reflected in full in our operating results.
  • If we fail to forecast our revenue accurately, or if we fail to match our expenditures with corresponding revenue, our operating results could be adversely affected.
  • The length and unpredictability of the sales cycle for our technology offerings and services could delay new sales and cause our revenue and cash flows for any given quarter to fail to meet our projections or market expectations.
  • If we fail to detect advertising fraud or other actions that impact our advertising campaign performance, we could harm our reputation with advertisers or agencies, which could cause our revenue and business to suffer.
  • If we do not maintain and grow a critical mass of advertisers and distribution partners, the value of our services could be adversely affected.
  • Any inability to deliver successful mobile advertising campaigns due to technological challenges or an inability to persuasively demonstrate success will prevent us from growing or retaining our current advertiser base.
  • We may be unable to deliver advertising in a context that is appropriate for mobile advertising campaigns, which could harm our reputation and cause our business to suffer.
  • Activities of our application transaction customers with which we do business could damage our reputation or give rise to legal claims against us.
  • Our business depends on our ability to collect and use data to deliver ads and to disclose data relating to the performance of our ads; any limitation on these practices could significantly diminish the value of our solutions and cause us to lose customers and revenue.
  • Our business practices with respect to data could give rise to liabilities, restrictions on our business or reputational harm as a result of evolving governmental regulation, legal requirements or industry standards relating to consumer privacy and data protection.
  • Our agreements with partners, employees and others may not adequately prevent disclosure of trade secrets and other proprietary information.
  • We could be subject to additional income tax liabilities.
  • Taxing authorities may successfully assert that we should have collected or in the future should collect sales and use, value-added or similar taxes, and we could be subject to liability with respect to past or future sales, which could adversely affect our operating results.
  • Our net operating loss carryforwards may expire unutilized or underutilized, which could prevent us from offsetting future taxable income.
  • Our large customers have substantial negotiating leverage, which may require that we agree to terms and conditions that may have an adverse effect on our business.
  • If some of our customers experience financial distress or suffer disruptions in their business, their weakened financial position could negatively affect our own financial position and results.
  • If we are unable to obtain and maintain adequate insurance, our financial condition could be adversely affected in the event of uninsured or inadequately insured loss or damage. Our ability to effectively recruit and retain qualified officers and directors may also be adversely affected if we experience difficulty in maintaining adequate directors’ and officers’ liability insurance.
  • The requirements of being a public company may strain our systems and resources, divert management’s attention and be costly.
  • We are a "smaller reporting company" and, because we have opted to use the reduced reporting requirements available to us, our common stock may be less attractive to investors.
  • Our business is subject to the risks of natural disasters, public health crises, political crises and other natural catastrophic events and to interruption by man-made problems such as computer viruses or terrorism.
  • Risks Related to Capitalization Matters, Corporate Governance and Market Volatility
  • We have and may sell additional equity or debt securities or enter into other arrangements to fund our operations, which may result in dilution to our stockholders and impose restrictions or limitations on our business. Future sales or issuances of our common stock, or the perception that such sales could occur, could depress the trading price of our common stock.
  • Shares of our common stock may be issued pursuant to the terms of an outstanding warrant, which could cause the price of our common stock to decline.
  • The SBA may review our Paycheck Protection Program (“PPP”) forgiveness application and if the SBA disagrees with our certification we could be subject to penalties and the repayment of our PPP loan, which could negatively impact our business, financial condition and results of operations and prospects.
  • The price of our common stock and warrants has been, and may continue to be, volatile, and you could lose all or part of your investment.
  • We have identified a material weakness in our internal control over financial reporting that, if not properly remediated or if we experience additional material weaknesses, could result in us being unable to provide required financial information in a timely and reliable manner, which may cause investors to lose confidence in our reported financial information and may lead to a decline in our stock price.
  • It may be difficult for us to retain or attract qualified officers and directors, which could adversely affect our business and our ability to maintain the listing of our common stock on the Nasdaq Capital Market.
  • If securities or industry analysts do not publish or cease publishing research or reports about us, our business or our market, or if they change their recommendations regarding our common stock adversely, the price and trading volume of our common stock could decline.
  • We do not currently intend to pay dividends on our common stock and, consequently, your ability to achieve a return on your investment will depend on appreciation in the price of our common stock.
  • Delaware law and our certificate of incorporation and bylaws contain certain provisions, including anti-takeover provisions that limit the ability of stockholders to take certain actions and could delay or discourage takeover attempts that stockholders may consider favorable.
  • Our certificate of incorporation designates a state or federal court located within the State of Delaware as the exclusive forum for substantially all disputes between us and our stockholders, and also provides that the federal district courts will be the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act or Exchange Act, each of which could limit our stockholders’ ability to choose the judicial forum for disputes with us or our directors, officers, or employees.
  • Our bitcoin acquisition strategy exposes us to various risks associated with bitcoin.
  • The prices of digital currencies, including bitcoin and ethereum, may be influenced by regulatory, commercial, and technical factors that are highly uncertain, and fluctuations in the price of bitcoin are likely to influence our financial results and the market price of our common stock.
  • Our historical financial statements do not reflect the potential variability in earnings that we may experience in the future relating to our digital asset holdings.
  • Due to the unregulated nature and lack of transparency surrounding the operations of many digital asset trading venues, they may experience fraud, security failures or operational problems, which may adversely affect the value of our digital asset holdings.
  • The concentration of our digital asset holdings enhances the risks inherent in our digital asset treasury strategy.
  • We may be required to access our digital asset holdings as a source of liquidity during a time of market volatility, which may result in selling our digital assets at a significant loss.
  • If we or our third-party service providers experience a security breach or cyberattack and unauthorized parties obtain access to our digital asset holdings, we may lose some or all of our digital assets and our financial condition and results of operations could be materially adversely affected.
  • The loss or destruction of a private key required to access our digital asset wallets may be irreversible. If we are unable to access our private keys or if we experience a cyberattack or other data loss relating to our digital asset holdings, our financial condition and results of operations could be materially adversely affected.
  • Regulatory change reclassifying our digital assets as a security could lead to our classification as an “investment company” under the Investment Company Act of 1940 and could adversely affect the market price of our digital asset holdings and the market price of our common stock.
  • Risks Related to our Token Offerings
  • We have raised capital to fund a Token Generation Event of rights to receive future PhunCoin and, beginning in 2021 have sold PhunTokens. There can be no assurance that PhunCoin will ever be issued and, any significant difficulties we may experience with the offerings of PhunCoin or sales of PhunToken could result in claims against us. Additionally, the Token Generation Event and the offerings of PhunCoin and sales of PhunToken could subject us to various other business and regulatory uncertainties.
  • The further development and acceptance of blockchain networks, which are part of a new and rapidly changing industry, are subject to a variety of factors that are difficult to evaluate. The slowing or stopping of the development or acceptance of blockchain networks and blockchain assets could have a material adverse effect on our business plans, which may have a material adverse effect on the Company and our stockholders.
  • Because our tokens will be a digital asset built and transacted initially on top of existing third-party blockchain technology, Phunware is reliant on another blockchain network, and users could be subject to the risk of wallet incompatibility and blockchain protocol risks.
  • The development and operation of the Token Ecosystem will likely require technology and intellectual property rights.
  • The Token Ecosystem is designed to distribute PhunCoin or PhunToken to consumers who provide certain personal information to us. Providing this data exposes us to risks of privacy data breach and cybersecurity attacks.
  • The Token Ecosystem may be the target of malicious cyberattacks or may contain exploitable flaws in its underlying code, which may result in security breaches and the loss or theft of PhunCoin or PhunToken. If Token Ecosystem’s security is compromised or if the Token Ecosystem is subjected to attacks that frustrate or thwart our users’ ability to access the Token Ecosystem, their PhunCoin, PhunToken or the Token Ecosystem products and services, users may cease using the Token Ecosystem altogether.
  • The Token Ecosystem is susceptible to mining attacks.
  • The regulatory regime governing blockchain technologies, cryptocurrencies, digital assets, utility tokens, security tokens and offerings of digital assets is uncertain, and new regulations or policies may materially adversely affect the development and the value of our tokens.
  • The prices of blockchain assets are extremely volatile. Fluctuations in the price of digital assets and/or waning interest of investors in the cryptocurrency industry could materially and adversely affect our business.
Management Discussion
  • Net revenues increased $4.0 million, or 282.0%, for the three months ended June 30, 2022 compared to the corresponding period in 2021.
  • Platform revenue increased $0.2 million, or 13.4%, for the three months ended June 30, 2022, compared to the corresponding period in 2021, primarily due to PhunToken sales of $0.6 million, as we commenced the sale of PhunToken in the second quarter of 2021. These increases were partially offset by lower platform revenues for development, licensing and support services provided to a customer in 2021, as compared to 2022. This customer is identified as "Customer F" in Note 4, Revenue, in the notes to the condensed consolidated financial statements included in Part I, Item 1 of this quarterly report on Form 10-Q.
  • Hardware revenue of $3.9 million for the three months ended June 30, 2022, was a result of the acquisition of Lyte, in October 2021.

Content analysis

?
Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. sophomore Avg
New words: abatement, answering, attention, broader, ceased, chain, consuming, costly, difficult, electrical, environmental, ESG, focusing, governmental, high, increasingly, inflation, inflationary, janitorial, macroeconomic, monetary, noncompliance, opposition, promisory, promulgated, proposed, recession, reduced, reduction, reputational, Rock, slower, social, spent, stakeholder, tighter, unemployment, Weakened
Removed: combined, conform, deficit, immaterial, vest