x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 86-3078783 | |||||
(State incorporation) | (I.R.S. Employer Identification No.) | |||||
( | (Zip code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common stock, $0.0001 par value per share | KORE | The New York Stock Exchange | ||||||||||||
Warrants to purchase common stock | KORE WS | The New York Stock Exchange |
Large accelerated filer | o | Accelerated filer | ||||||||||||
Non-accelerated filer | o | Smaller reporting company | ||||||||||||
Emerging growth company |
Page | ||||||||||||
16 | ||||||||||||
(In thousands, USD) | December 31, 2022 | December 31, 2021 | ||||||||||||
Revenue | $ | 268,447 | $ | 248,435 | ||||||||||
Net loss | (106,200) | (24,776) | ||||||||||||
Adjusted EBITDA | 62,835 | 60,929 |
December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Revenue | $ | 248,217 | $ | 213,760 | $ | 169,152 | ||||||
Net loss | (24,453 | ) | (35,201 | ) | (23,443 | ) | ||||||
Adjusted EBITDA | 59,754 | 57,819 | 50,885 |
Product line | Products | Product description | Primary pricing method | |||||||||||||||||||
IoT Connectivity year revenue, respectively | IoT Connectivity as a Service (CaaS) | •IoT Connectivity services offered through our market leading IoT platform ‘KORE One’ ™ •Our connectivity solutions allow devices to seamlessly and securely connect anywhere in the world across any connected network, which we call our multiple devices, multiple locations, multiple carriers CaaS multi-value proposition | Per subscriber per month for lifetime of device (7-10 years and growing) Multi-year contracts with automatic renewals | |||||||||||||||||||
IoT Connectivity Enablement as a Service (CEaaS) | • IoT Connectivity Management Platform as a Service (or individual KORE One engine) • Cellular Core Network as a Service (Cloud Native Evolved Packet Core “EPC”) | Multi-year contracts with automatic renewals | ||||||||||||||||||||
Enablement as a Service (CEaaS) | ||||||||||||||||||||||
IoT Solutions year | IoT Device Management Services | • Outsourced platform-enabled services (e.g., logistics, configuration, device management) •Sourcing of third-party devices globally, device design and selection services | Upfront fee per device or per device per month | |||||||||||||||||||
IoT Security Location Based Services (LBS) | •KORE’s • KORE’s | Per subscriber per month | ||||||||||||||||||||
ITEM 1A. RISK FACTORS |
ITEM 3. LEGAL PROCEEDINGS |
ITEM 4. MINE SAFETY DISCLOSURES |
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
Years Ended | Change 2022 | ||||||||||||||||||||||
(in thousands USD) | December 31, 2022 | December 31, 2021 | $ | % | |||||||||||||||||||
Services | $ | 188,985 | $ | 188,180 | $ | 805 | — | % | |||||||||||||||
Products | 79,462 | 60,255 | 19,207 | 32 | % | ||||||||||||||||||
Total Revenue | $ | 268,447 | $ | 248,435 | $ | 20,012 | 8 | % |
Years Ended | Change 2022 | ||||||||||||||||||||||
(in thousands USD) | December 31, 2022 | December 31, 2021 | $ | % | |||||||||||||||||||
IoT Connectivity | $ | 175,942 | $ | 169,022 | $ | 6,920 | 4 | % | |||||||||||||||
IoT Solutions | 92,505 | 79,413 | 13,092 | 16 | % | ||||||||||||||||||
Total Revenue | $ | 268,447 | $ | 248,435 | $ | 20,012 | 8 | % |
Years Ended | |||||||||||
(in millions) | December 31, 2022 | December 31, 2021 | |||||||||
Period End Connections | 15.0 | 14.6 | |||||||||
Average Connections Count for the Period | 15.2 | 13.4 |
Years Ended | Change 2022 | ||||||||||||||||||||||
(in thousands USD) | December 31, 2022 | December 31, 2021 | $ | % | |||||||||||||||||||
Cost of services | $ | 67,268 | $ | 69,385 | $ | (2,117) | (3) | % | |||||||||||||||
Cost of products | 61,886 | 51,975 | 9,911 | 19 | % | ||||||||||||||||||
Total cost of revenue | $ | 129,154 | $ | 121,360 | $ | 7,794 | 6 | % |
Years Ended | |||||||||||
Gross margin rate | December 31, 2022 | December 31, 2021 | |||||||||
Services | 64.4 | % | 63.1 | % | |||||||
Products | 22.1 | % | 13.7 | % | |||||||
Total gross margins | 51.9 | % | 51.2 | % |
Years Ended | Change 2022 | ||||||||||||||||||||||
(in thousands USD) | December 31, 2022 | December 31, 2021 | $ | % | |||||||||||||||||||
Cost of IoT Connectivity | $ | 63,051 | $ | 65,703 | $ | (2,652) | (4) | % | |||||||||||||||
Cost of IoT Solutions | 66,103 | 55,657 | 10,446 | 19 | % | ||||||||||||||||||
Total cost of revenue | $ | 129,154 | $ | 121,360 | $ | 7,794 | 6 | % |
Years Ended | |||||||||||
Gross margin rate | December 31, 2022 | December 31, 2021 | |||||||||
IoT Connectivity | 64.2 | % | 61.1 | % | |||||||
IoT Solutions | 28.5 | % | 29.9 | % | |||||||
Total gross margins | 51.9 | % | 51.2 | % |
Years Ended | Change 2022 | ||||||||||||||||||||||
(in thousands USD) | December 31, 2022 | December 31, 2021 | $ | % | |||||||||||||||||||
Selling, general, and administrative | $ | 112,220 | $ | 92,303 | $ | 19,917 | 22 | % |
Years Ended | Change 2022 | ||||||||||||||||||||||
(in thousands USD) | December 31, 2022 | December 31, 2021 | $ | % | |||||||||||||||||||
Depreciation and amortization | $ | 54,499 | $ | 50,331 | $ | 4,168 | 8 | % |
Years Ended | Change 2022 | ||||||||||||||||||||||
(in thousands USD) | December 31, 2022 | December 31, 2021 | $ | % | |||||||||||||||||||
Goodwill impairment | $ | 58,074 | $ | — | $ | 58,074 | 100 | % |
Years Ended | Change 2022 | ||||||||||||||||||||||
(in thousands USD ) | December 31, 2022 | December 31, 2021 | $ | % | |||||||||||||||||||
Interest expense, including amortization of deferred financing costs, net | $ | 31,371 | $ | 23,260 | $ | 8,111 | 35 | % | |||||||||||||||
Change in fair value of warrant liability | (254) | (5,267) | 5,013 | (95) | % | ||||||||||||||||||
Total Other (Income) Expense | $ | 31,117 | $ | 17,993 | $ | 13,124 | 73 | % |
Years Ended | Change 2022 | ||||||||||||||||||||||
(in thousands USD) | December 31, 2022 | December 31, 2021 | $ | % | |||||||||||||||||||
Income tax benefit | $(10,417) | $(8,776) | $(1,641) | 19% |
Years Ended | |||||||||||
(in thousands USD) | December 31, 2022 | December 31, 2021 | |||||||||
Net loss | $ | (106,200) | $ | (24,776) | |||||||
Income tax benefit | (10,417) | (8,776) | |||||||||
Interest expense | 31,371 | 23,260 | |||||||||
Depreciation and amortization | 54,499 | 50,331 | |||||||||
EBITDA | (30,747) | 40,039 | |||||||||
Goodwill Impairment Loss | 58,074 | — | |||||||||
Change in Fair value of warrant liability (non-cash) | (254) | (5,267) | |||||||||
Transformation expenses | 8,302 | 8,937 | |||||||||
Acquisition and integration-related restructuring costs | 16,214 | 11,287 | |||||||||
Stock-based compensation (non-cash) | 10,296 | 4,564 | |||||||||
Foreign currency loss (non-cash) | 4 | 344 | |||||||||
Other | 946 | 1,025 | |||||||||
Adjusted EBITDA | $ | 62,835 | $ | 60,929 |
Years Ended | |||||||||||
December 31, 2022 | December 31, 2021 | ||||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash | $ | 34,645 | $ | 85,976 | |||||||
Accounts receivable, net | 44,538 | 51,615 | |||||||||
Inventories, net | 10,051 | 15,470 | |||||||||
Income taxes receivable | 502 | 934 | |||||||||
Prepaid expenses and other current assets | 13,484 | 7,363 | |||||||||
Total current assets | 103,220 | 161,358 | |||||||||
Non-current assets | |||||||||||
Restricted cash | 362 | 367 | |||||||||
Property and equipment, net | 11,899 | 12,240 | |||||||||
Intangibles assets, net | 192,504 | 202,550 | |||||||||
Goodwill | 369,706 | 383,415 | |||||||||
Operating lease right-of-use assets | 10,019 | — | |||||||||
Deferred tax assets | 55 | — | |||||||||
Other long-term assets | 971 | 407 | |||||||||
Total assets | $ | 688,736 | $ | 760,337 | |||||||
Liabilities and stockholders’ equity | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 17,835 | $ | 16,004 | |||||||
Accrued liabilities | 15,793 | 22,353 | |||||||||
Income taxes payable | 207 | 467 | |||||||||
Current portion of operating lease liabilities | 1,811 | — | |||||||||
Deferred revenue | 7,817 | 6,889 | |||||||||
Current portion of long-term debt and other borrowings, net | 5,345 | 3,326 | |||||||||
Total current liabilities | 48,808 | 49,039 | |||||||||
Non-current liabilities | |||||||||||
Deferred tax liabilities | 25,248 | 37,925 | |||||||||
Warrant liability | 33 | 286 | |||||||||
Long-term debt and other borrowings, net | 413,910 | 399,115 | |||||||||
Non-current portion of operating lease liabilities | 9,275 | — | |||||||||
Other long-term liabilities | 10,790 | 6,450 | |||||||||
Total liabilities | $ | 508,064 | $ | 492,815 |
December 31, 2022 | December 31, 2021 | ||||||||||
Stockholders’ equity | |||||||||||
Common stock, voting; par value $0.0001 per share; 315,000,000 shares authorized, 76,292,241 and 72,027,743 shares issued and outstanding at December 31, 2022 and December 31, 2021 | $ | 8 | $ | 7 | |||||||
Additional paid-in capital | 435,292 | 413,315 | |||||||||
Accumulated other comprehensive loss | (6,390) | (3,463) | |||||||||
Accumulated deficit | (248,238) | (142,337) | |||||||||
Total stockholders’ equity | 180,672 | 267,522 | |||||||||
Total liabilities and stockholders’ equity | $ | 688,736 | $ | 760,337 |
Years Ended | |||||||||||||||||
December 31, 2022 | December 31, 2021 | ||||||||||||||||
Revenue | |||||||||||||||||
Services | $ | 188,985 | $ | 188,180 | |||||||||||||
Products | 79,462 | 60,255 | |||||||||||||||
Total revenue | 268,447 | 248,435 | |||||||||||||||
Cost of revenue | |||||||||||||||||
Cost of services | 67,268 | 69,385 | |||||||||||||||
Cost of products | 61,886 | 51,975 | |||||||||||||||
Total cost of revenue (exclusive of depreciation and amortization shown separately below) | 129,154 | 121,360 | |||||||||||||||
Operating expenses | |||||||||||||||||
Selling, general and administrative | 112,220 | 92,303 | |||||||||||||||
Depreciation and amortization | 54,499 | 50,331 | |||||||||||||||
Goodwill impairment | 58,074 | — | |||||||||||||||
Total operating expenses | 224,793 | 142,634 | |||||||||||||||
Operating loss | (85,500) | (15,559) | |||||||||||||||
Interest expense, including amortization of deferred financing costs, net | 31,371 | 23,260 | |||||||||||||||
Change in fair value of warrant liability | (254) | (5,267) | |||||||||||||||
Loss before income taxes | (116,617) | (33,552) | |||||||||||||||
Income tax benefit | (10,417) | (8,776) | |||||||||||||||
Net loss | $ | (106,200) | $ | (24,776) | |||||||||||||
Loss per share: | |||||||||||||||||
Basic | $ | (1.40) | $ | (1.04) | |||||||||||||
Diluted | $ | (1.40) | $ | (1.04) | |||||||||||||
Weighted average shares outstanding (in Number): | |||||||||||||||||
Basic | 75,710,904 | 41,933,050 | |||||||||||||||
Diluted | 75,710,904 | 41,933,050 |
Years Ended | |||||||||||
December 31, 2022 | December 31, 2021 | ||||||||||
Net loss | $ | (106,200) | $ | (24,776) | |||||||
Other comprehensive loss: | |||||||||||
Foreign currency translation adjustment | (2,927) | (1,901) | |||||||||
Comprehensive loss | $ | (109,127) | $ | (26,677) |
Series A Preferred Stock | Series A-1 Preferred Stock | Series B Preferred Stock | Series C Convertible Preferred Stock | Total Temporary Equity | Common Stock | Additional paid-in capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Temporary Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Amount | Shares | Amount | Amount | Amount | Amount | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 7,756,158 | $ | 77,562 | 7,862,107 | $ | 78,621 | 9,090,975 | $ | 90,910 | 2,520,368 | $ | 16,502 | $ | 263,595 | 30,281,520 | $ | 3 | $ | 135,616 | $ | (1,562) | $ | (117,561) | $ | 16,496 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued dividends payable | 765,609 | 7,656 | 824,076 | 8,241 | 692,543 | 6,925 | — | — | 22,822 | — | — | (22,822) | — | — | (22,822) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | (1,901) | — | (1,901) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | — | — | 200,426 | — | (1,856) | — | — | (1,856) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to and conversions of preferred stock | (8,521,767) | (85,218) | (8,686,183) | (86,862) | (9,783,518) | (97,835) | (2,520,368) | (16,502) | (286,417) | 7,120,368 | 1 | 56,502 | — | — | 56,503 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CTAC shares recapitalized, net of equity issuance costs of $15,943 | — | — | — | — | — | — | — | — | — | 10,373,491 | 1 | 6,428 | — | — | 6,429 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of KORE warrants | — | — | — | — | — | — | — | — | — | 1,365,612 | — | 10,663 | — | — | 10,663 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private offering and merger financing, net of equity issuance costs of $8123 | — | — | — | — | — | — | — | — | — | 22,686,326 | 2 | 216,544 | — | — | 216,546 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity portion of convertible debt, net of deferred financing costs of $384, net of sponsor shares of $683, net of deferred tax liability of $3,999 | — | — | — | — | — | — | — | — | — | — | — | 12,240 | — | — | 12,240 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | (24,776) | (24,776) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | — | — | — | — | — | — | — | — | — | 72,027,743 | 7 | 413,315 | (3,463) | (142,337) | 267,522 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Opening balance sheet adjustment | — | — | — | — | — | — | — | — | — | — | — | (11,613) | 299 | (11,314) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted opening balance | — | — | — | — | — | — | — | — | — | 72,027,743 | 7 | 401,702 | (3,463) | (142,038) | 256,208 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued pursuant to acquisition | — | — | — | — | — | — | — | — | — | 4,212,246 | 1 | 23,294 | — | — | 23,295 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | (2,927) | — | (2,927) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | — | — | — | — | 10,296 | — | — | 10,296 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | — | — | — | — | — | — | — | — | — | 52,252 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | (106,200) | (106,200) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | — | — | — | — | — | — | — | — | — | 76,292,241 | $ | 8 | $ | 435,292 | $ | (6,390) | $ | (248,238) | $ | 180,672 |
For the years ended | December 31, 2022 | December 31, 2021 | ||||||||||||
Cash flows provided by (used in) operating activities | ||||||||||||||
Net loss | $ | (106,200) | $ | (24,776) | ||||||||||
Adjustments to reconcile net loss to net cash provided (used in) by operating activities | ||||||||||||||
Depreciation and amortization | 54,499 | 50,331 | ||||||||||||
Goodwill impairment loss | 58,074 | — | ||||||||||||
Amortization of deferred financing costs | 2,427 | 2,097 | ||||||||||||
Amortization of discount on Backstop Notes | — | 424 | ||||||||||||
Non-cash reduction to the operating lease right-of-use assets | 2,218 | — | ||||||||||||
Deferred income taxes | (16,189) | (9,691) | ||||||||||||
Non-cash foreign currency loss | 14 | 344 | ||||||||||||
Stock-based compensation | 10,296 | 4,564 | ||||||||||||
Provision for doubtful accounts | 415 | 322 | ||||||||||||
Change in fair value of warrant liability | (254) | (5,267) | ||||||||||||
Change in operating assets and liabilities, net of operating assets and liabilities acquired: | ||||||||||||||
Accounts receivable | 8,962 | (12,102) | ||||||||||||
Inventories | 6,542 | (9,875) | ||||||||||||
Prepaid expenses and other current assets | (1,992) | (1,244) | ||||||||||||
Accounts payable and accrued liabilities | (2,116) | (8,419) | ||||||||||||
Deferred revenue | 980 | (805) | ||||||||||||
Income taxes payable | 148 | (661) | ||||||||||||
Operating lease liabilities | (1,468) | — | ||||||||||||
Cash provided by (used in) operating activities | $ | 16,356 | $ | (14,758) | ||||||||||
Cash flows (used in) provided by investing activities | ||||||||||||||
Additions to intangible assets | (13,238) | (9,247) | ||||||||||||
Additions to property and equipment | (3,307) | (4,172) | ||||||||||||
Payments for acquisitions, net of cash acquired | (46,002) | — | ||||||||||||
Cash flows (used in) provided by investing activities | $ | (62,547) | $ | (13,419) | ||||||||||
Cash flows (used in) provided by financing activities | ||||||||||||||
Proceeds from revolving credit facility | — | 25,000 | ||||||||||||
Repayment on revolving credit facility | — | (25,000) | ||||||||||||
Repayment of term loan | (3,153) | (3,161) | ||||||||||||
Repayment of other borrowings - notes payable | (1,035) | (173) | ||||||||||||
Proceeds from convertible debt | — | 104,167 | ||||||||||||
Proceeds from equity portion of convertible debt, net of issuance costs | — | 15,697 | ||||||||||||
Payment of deferred financing costs | (356) | (1,579) | ||||||||||||
Repayment of related party note | — | (1,538) | ||||||||||||
Proceeds from CTAC and PIPE financing, net of issuance costs | — | 223,688 | ||||||||||||
Settlements of preferred shares | — | (229,915) | ||||||||||||
Payment of financing lease obligations | (150) | — | ||||||||||||
Payment of capital lease obligations | — | (828) | ||||||||||||
Payment of stock option share employee withholding taxes | — | (2,305) | ||||||||||||
Cash (used in) provided by financing activities | $ | (4,694) | $ | 104,053 | ||||||||||
Effect of exchange rate change on cash | (451) | (226) | ||||||||||||
Change in Cash and Restricted cash | (51,336) | 75,650 | ||||||||||||
Cash and Restricted Cash, beginning of period | 86,343 | 10,693 | ||||||||||||
Cash and Restricted Cash, end of period | $ | 35,007 | $ | 86,343 | ||||||||||
Non-cash investing and financing activities: | ||||||||||||||
Fair value of KORE common stock issued pursuant to acquisition | 23,295 | — | ||||||||||||
ASU 2020-06 Adoption | 15,163 | — | ||||||||||||
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities upon the adoption of ASC 842 | 9,604 | — | ||||||||||||
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities | 3,409 | — | ||||||||||||
Premium finance agreement | 3,621 | — | ||||||||||||
Equity financing fees accrued | — | 3,602 | ||||||||||||
Common shares issued to preferred shareholders | — | 56,502 | ||||||||||||
Equity financing fees settled in common shares | — | 1,863 | ||||||||||||
Common shares issued to warrant holders | — | 10,663 | ||||||||||||
Common shares issued to option holders pursuant to the Cancellation Agreements | — | 1,072 | ||||||||||||
Sponsor shares distributed to lender under Backstop Agreement | — | 683 | ||||||||||||
Supplemental cash flow information: | — | |||||||||||||
Interest paid | 29,199 | 19,874 | ||||||||||||
Taxes paid (net of refunds) | 2,119 | 957 |
Years Ended December 31, | Change 2021 | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
Services | $ | 187,962 | $ | 172,845 | $ | 15,117 | 9 | % | ||||||||
Products | 60,255 | 40,915 | 19,340 | 47 | % | |||||||||||
Total Revenue | $ | 248,217 | $ | 213,760 | $ | 34,457 | 16 | % | ||||||||
Years Ended December 31, | Change 2021 | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
IoT Connectivity | $ | 168,804 | $ | 158,748 | $ | 10,056 | 6 | % | ||||||||
IoT Solutions | 79,413 | 55,012 | 24,401 | 44 | % | |||||||||||
Total Revenue | $ | 248,217 | $ | 213,760 | $ | 34,457 | 16 | % | ||||||||
December 31, | ||||||||
2021 | 2020 | |||||||
Period End Connections | 14.6 million | 11.8 million | ||||||
Average Connections Count for the Period | 13.4 million | 10.7 million |
Years Ended December 31, | Change 2021 | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
Cost of services | $ | 69,867 | $ | 64,520 | $ | 5,347 | 8 | % | ||||||||
Cost of products | 52,357 | 33,410 | 18,947 | 57 | % | |||||||||||
Total cost of revenue | $ | 122,224 | $ | 97,930 | $ | 24,294 | 25 | % | ||||||||
Years Ended | ||||||||
December 31, | ||||||||
Gross margin rate | 2021 | 2020 | ||||||
Cost of services | 62.8 | % | 62.7 | % | ||||
Cost of products | 13.1 | % | 18.3 | % | ||||
Total gross margins | 50.8 | % | 54.2 | % |
Years Ended | |||||||||||
(in thousands USD) | December 31, 2022 | December 31, 2021 | |||||||||
Net loss | $ | (106,200) | $ | (24,776) | |||||||
Income tax benefit | (10,417) | (8,776) | |||||||||
Interest expense | 31,371 | 23,260 | |||||||||
Depreciation and amortization | 54,499 | 50,331 | |||||||||
EBITDA | (30,747) | 40,039 | |||||||||
Goodwill Impairment Loss | 58,074 | — | |||||||||
Change in Fair value of warrant liability (non-cash) | (254) | (5,267) | |||||||||
Transformation expenses | 8,302 | 8,937 | |||||||||
Acquisition and integration-related restructuring costs | 16,214 | 11,287 | |||||||||
Stock-based compensation (non-cash) | 10,296 | 4,564 | |||||||||
Foreign currency loss (non-cash) | 4 | 344 | |||||||||
Other | 946 | 1,025 | |||||||||
Adjusted EBITDA | $ | 62,835 | $ | 60,929 |
Years Ended | ||||||||||||||||
December 31, | Change 2021 | |||||||||||||||
Cost of revenue | 2021 | 2020 | $ | % | ||||||||||||
Cost of IoT Connectivity | $ | 66,567 | $ | 63,706 | $ | 2,861 | 4 | % | ||||||||
Cost of IoT Solutions | 55,657 | 34,224 | 21,433 | 63 | % | |||||||||||
Total cost of revenue | $ | 122,224 | $ | 97,930 | $ | 24,294 | 25 | % | ||||||||
Years Ended | ||||||||
Gross margin rate | 2021 | 2020 | ||||||
IoT Connectivity | 60.6 | % | 59.9 | % | ||||
IoT Solutions | 29.9 | % | 37.8 | % | ||||
Total gross margins | 50.8 | % | 54.2 | % |
Years Ended | ||||||||||||||||
December 31, | Change 2021 | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
Selling, general, and administrative | $ | 91,733 | $ | 72,883 | $ | 18,850 | 26 | % |
Years Ended | ||||||||||||||||
December 31, | Change 2021 | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
Depreciation and amortization | $ | 50,414 | $ | 52,488 | $ | (2,074 | ) | (4 | )% |
Years Ended | ||||||||||||||||
December 31, | Change 2021 | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
Interest expense, including amortization of deferred financing costs, net | $ | 23,260 | $ | 23,493 | $ | (233 | ) | (1 | )% | |||||||
Change in fair value of warrant liability | (5,267 | ) | 7,485 | (12,752 | ) | (170 | )% | |||||||||
Total Other (Income) Expense | $ | 17,993 | $ | 30,978 | $ | (12,985 | ) | (42 | )% | |||||||
December 31, | Change 2021 | |||||||||||||||
2021 | 2020 | $ | % | |||||||||||||
Income tax benefit | $ | (9,694 | ) | $ | (5,318 | ) | $ | (4,376 | ) | 82 | % |
Years Ended | |||||||||||
December 31, 2022 | December 31, 2021 | ||||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash | $ | 34,645 | $ | 85,976 | |||||||
Accounts receivable, net | 44,538 | 51,615 | |||||||||
Inventories, net | 10,051 | 15,470 | |||||||||
Income taxes receivable | 502 | 934 | |||||||||
Prepaid expenses and other current assets | 13,484 | 7,363 | |||||||||
Total current assets | 103,220 | 161,358 | |||||||||
Non-current assets | |||||||||||
Restricted cash | 362 | 367 | |||||||||
Property and equipment, net | 11,899 | 12,240 | |||||||||
Intangibles assets, net | 192,504 | 202,550 | |||||||||
Goodwill | 369,706 | 383,415 | |||||||||
Operating lease right-of-use assets | 10,019 | — | |||||||||
Deferred tax assets | 55 | — | |||||||||
Other long-term assets | 971 | 407 | |||||||||
Total assets | $ | 688,736 | $ | 760,337 | |||||||
Liabilities and stockholders’ equity | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 17,835 | $ | 16,004 | |||||||
Accrued liabilities | 15,793 | 22,353 | |||||||||
Income taxes payable | 207 | 467 | |||||||||
Current portion of operating lease liabilities | 1,811 | — | |||||||||
Deferred revenue | 7,817 | 6,889 | |||||||||
Current portion of long-term debt and other borrowings, net | 5,345 | 3,326 | |||||||||
Total current liabilities | 48,808 | 49,039 | |||||||||
Non-current liabilities | |||||||||||
Deferred tax liabilities | 25,248 | 37,925 | |||||||||
Warrant liability | 33 | 286 | |||||||||
Long-term debt and other borrowings, net | 413,910 | 399,115 | |||||||||
Non-current portion of operating lease liabilities | 9,275 | — | |||||||||
Other long-term liabilities | 10,790 | 6,450 | |||||||||
Total liabilities | $ | 508,064 | $ | 492,815 |
December 31, 2022 | December 31, 2021 | ||||||||||
Stockholders’ equity | |||||||||||
Common stock, voting; par value $0.0001 per share; 315,000,000 shares authorized, 76,292,241 and 72,027,743 shares issued and outstanding at December 31, 2022 and December 31, 2021 | $ | 8 | $ | 7 | |||||||
Additional paid-in capital | 435,292 | 413,315 | |||||||||
Accumulated other comprehensive loss | (6,390) | (3,463) | |||||||||
Accumulated deficit | (248,238) | (142,337) | |||||||||
Total stockholders’ equity | 180,672 | 267,522 | |||||||||
Total liabilities and stockholders’ equity | $ | 688,736 | $ | 760,337 |
Years Ended | |||||||||||||||||
December 31, 2022 | December 31, 2021 | ||||||||||||||||
Revenue | |||||||||||||||||
Services | $ | 188,985 | $ | 188,180 | |||||||||||||
Products | 79,462 | 60,255 | |||||||||||||||
Total revenue | 268,447 | 248,435 | |||||||||||||||
Cost of revenue | |||||||||||||||||
Cost of services | 67,268 | 69,385 | |||||||||||||||
Cost of products | 61,886 | 51,975 | |||||||||||||||
Total cost of revenue (exclusive of depreciation and amortization shown separately below) | 129,154 | 121,360 | |||||||||||||||
Operating expenses | |||||||||||||||||
Selling, general and administrative | 112,220 | 92,303 | |||||||||||||||
Depreciation and amortization | 54,499 | 50,331 | |||||||||||||||
Goodwill impairment | 58,074 | — | |||||||||||||||
Total operating expenses | 224,793 | 142,634 | |||||||||||||||
Operating loss | (85,500) | (15,559) | |||||||||||||||
Interest expense, including amortization of deferred financing costs, net | 31,371 | 23,260 | |||||||||||||||
Change in fair value of warrant liability | (254) | (5,267) | |||||||||||||||
Loss before income taxes | (116,617) | (33,552) | |||||||||||||||
Income tax benefit | (10,417) | (8,776) | |||||||||||||||
Net loss | $ | (106,200) | $ | (24,776) | |||||||||||||
Loss per share: | |||||||||||||||||
Basic | $ | (1.40) | $ | (1.04) | |||||||||||||
Diluted | $ | (1.40) | $ | (1.04) | |||||||||||||
Weighted average shares outstanding (in Number): | |||||||||||||||||
Basic | 75,710,904 | 41,933,050 | |||||||||||||||
Diluted | 75,710,904 | 41,933,050 |
Years Ended | |||||||||||
December 31, 2022 | December 31, 2021 | ||||||||||
Net loss | $ | (106,200) | $ | (24,776) | |||||||
Other comprehensive loss: | |||||||||||
Foreign currency translation adjustment | (2,927) | (1,901) | |||||||||
Comprehensive loss | $ | (109,127) | $ | (26,677) |
Series A Preferred Stock | Series A-1 Preferred Stock | Series B Preferred Stock | Series C Convertible Preferred Stock | Total Temporary Equity | Common Stock | Additional paid-in capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Temporary Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Amount | Shares | Amount | Amount | Amount | Amount | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 7,756,158 | $ | 77,562 | 7,862,107 | $ | 78,621 | 9,090,975 | $ | 90,910 | 2,520,368 | $ | 16,502 | $ | 263,595 | 30,281,520 | $ | 3 | $ | 135,616 | $ | (1,562) | $ | (117,561) | $ | 16,496 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued dividends payable | 765,609 | 7,656 | 824,076 | 8,241 | 692,543 | 6,925 | — | — | 22,822 | — | — | (22,822) | — | — | (22,822) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | (1,901) | — | (1,901) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | — | — | 200,426 | — | (1,856) | — | — | (1,856) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to and conversions of preferred stock | (8,521,767) | (85,218) | (8,686,183) | (86,862) | (9,783,518) | (97,835) | (2,520,368) | (16,502) | (286,417) | 7,120,368 | 1 | 56,502 | — | — | 56,503 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CTAC shares recapitalized, net of equity issuance costs of $15,943 | — | — | — | — | — | — | — | — | — | 10,373,491 | 1 | 6,428 | — | — | 6,429 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of KORE warrants | — | — | — | — | — | — | — | — | — | 1,365,612 | — | 10,663 | — | — | 10,663 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private offering and merger financing, net of equity issuance costs of $8123 | — | — | — | — | — | — | — | — | — | 22,686,326 | 2 | 216,544 | — | — | 216,546 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity portion of convertible debt, net of deferred financing costs of $384, net of sponsor shares of $683, net of deferred tax liability of $3,999 | — | — | — | — | — | — | — | — | — | — | — | 12,240 | — | — | 12,240 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | (24,776) | (24,776) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | — | — | — | — | — | — | — | — | — | 72,027,743 | 7 | 413,315 | (3,463) | (142,337) | 267,522 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Opening balance sheet adjustment | — | — | — | — | — | — | — | — | — | — | — | (11,613) | 299 | (11,314) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted opening balance | — | — | — | — | — | — | — | — | — | 72,027,743 | 7 | 401,702 | (3,463) | (142,038) | 256,208 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued pursuant to acquisition | — | — | — | — | — | — | — | — | — | 4,212,246 | 1 | 23,294 | — | — | 23,295 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | (2,927) | — | (2,927) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | — | — | — | — | 10,296 | — | — | 10,296 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | — | — | — | — | — | — | — | — | — | 52,252 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | (106,200) | (106,200) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | — | — | — | — | — | — | — | — | — | 76,292,241 | $ | 8 | $ | 435,292 | $ | (6,390) | $ | (248,238) | $ | 180,672 |
For the years ended | December 31, 2022 | December 31, 2021 | ||||||||||||
Cash flows provided by (used in) operating activities | ||||||||||||||
Net loss | $ | (106,200) | $ | (24,776) | ||||||||||
Adjustments to reconcile net loss to net cash provided (used in) by operating activities | ||||||||||||||
Depreciation and amortization | 54,499 | 50,331 | ||||||||||||
Goodwill impairment loss | 58,074 | — | ||||||||||||
Amortization of deferred financing costs | 2,427 | 2,097 | ||||||||||||
Amortization of discount on Backstop Notes | — | 424 | ||||||||||||
Non-cash reduction to the operating lease right-of-use assets | 2,218 | — | ||||||||||||
Deferred income taxes | (16,189) | (9,691) | ||||||||||||
Non-cash foreign currency loss | 14 | 344 | ||||||||||||
Stock-based compensation | 10,296 | 4,564 | ||||||||||||
Provision for doubtful accounts | 415 | 322 | ||||||||||||
Change in fair value of warrant liability | (254) | (5,267) | ||||||||||||
Change in operating assets and liabilities, net of operating assets and liabilities acquired: | ||||||||||||||
Accounts receivable | 8,962 | (12,102) | ||||||||||||
Inventories | 6,542 | (9,875) | ||||||||||||
Prepaid expenses and other current assets | (1,992) | (1,244) | ||||||||||||
Accounts payable and accrued liabilities | (2,116) | (8,419) | ||||||||||||
Deferred revenue | 980 | (805) | ||||||||||||
Income taxes payable | 148 | (661) | ||||||||||||
Operating lease liabilities | (1,468) | — | ||||||||||||
Cash provided by (used in) operating activities | $ | 16,356 | $ | (14,758) | ||||||||||
Cash flows (used in) provided by investing activities | ||||||||||||||
Additions to intangible assets | (13,238) | (9,247) | ||||||||||||
Additions to property and equipment | (3,307) | (4,172) | ||||||||||||
Payments for acquisitions, net of cash acquired | (46,002) | — | ||||||||||||
Cash flows (used in) provided by investing activities | $ | (62,547) | $ | (13,419) | ||||||||||
Cash flows (used in) provided by financing activities | ||||||||||||||
Proceeds from revolving credit facility | — | 25,000 | ||||||||||||
Repayment on revolving credit facility | — | (25,000) | ||||||||||||
Repayment of term loan | (3,153) | (3,161) | ||||||||||||
Repayment of other borrowings - notes payable | (1,035) | (173) | ||||||||||||
Proceeds from convertible debt | — | 104,167 | ||||||||||||
Proceeds from equity portion of convertible debt, net of issuance costs | — | 15,697 | ||||||||||||
Payment of deferred financing costs | (356) | (1,579) | ||||||||||||
Repayment of related party note | — | (1,538) | ||||||||||||
Proceeds from CTAC and PIPE financing, net of issuance costs | — | 223,688 | ||||||||||||
Settlements of preferred shares | — | (229,915) | ||||||||||||
Payment of financing lease obligations | (150) | — | ||||||||||||
Payment of capital lease obligations | — | (828) | ||||||||||||
Payment of stock option share employee withholding taxes | — | (2,305) | ||||||||||||
Cash (used in) provided by financing activities | $ | (4,694) | $ | 104,053 | ||||||||||
Effect of exchange rate change on cash | (451) | (226) | ||||||||||||
Change in Cash and Restricted cash | (51,336) | 75,650 | ||||||||||||
Cash and Restricted Cash, beginning of period | 86,343 | 10,693 | ||||||||||||
Cash and Restricted Cash, end of period | $ | 35,007 | $ | 86,343 | ||||||||||
Non-cash investing and financing activities: | ||||||||||||||
Fair value of KORE common stock issued pursuant to acquisition | 23,295 | — | ||||||||||||
ASU 2020-06 Adoption | 15,163 | — | ||||||||||||
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities upon the adoption of ASC 842 | 9,604 | — | ||||||||||||
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities | 3,409 | — | ||||||||||||
Premium finance agreement | 3,621 | — | ||||||||||||
Equity financing fees accrued | — | 3,602 | ||||||||||||
Common shares issued to preferred shareholders | — | 56,502 | ||||||||||||
Equity financing fees settled in common shares | — | 1,863 | ||||||||||||
Common shares issued to warrant holders | — | 10,663 | ||||||||||||
Common shares issued to option holders pursuant to the Cancellation Agreements | — | 1,072 | ||||||||||||
Sponsor shares distributed to lender under Backstop Agreement | — | 683 | ||||||||||||
Supplemental cash flow information: | — | |||||||||||||
Interest paid | 29,199 | 19,874 | ||||||||||||
Taxes paid (net of refunds) | 2,119 | 957 |
Years Ended | |||||||||||
(in thousands USD) | December 31, 2022 | December 31, 2021 | |||||||||
Net loss | $ | (106,200) | $ | (24,776) | |||||||
Income tax benefit | (10,417) | (8,776) | |||||||||
Interest expense | 31,371 | 23,260 | |||||||||
Depreciation and amortization | 54,499 | 50,331 | |||||||||
EBITDA | (30,747) | 40,039 | |||||||||
Goodwill Impairment Loss | 58,074 | — | |||||||||
Change in Fair value of warrant liability (non-cash) | (254) | (5,267) | |||||||||
Transformation expenses | 8,302 | 8,937 | |||||||||
Acquisition and integration-related restructuring costs | 16,214 | 11,287 | |||||||||
Stock-based compensation (non-cash) | 10,296 | 4,564 | |||||||||
Foreign currency loss (non-cash) | 4 | 344 | |||||||||
Other | 946 | 1,025 | |||||||||
Adjusted EBITDA | $ | 62,835 | $ | 60,929 |
For the Years Ended December 31, | ||||||||
2021 | 2020 | |||||||
Net loss | $ | (24,453 | ) | $ | (35,201 | ) | ||
Income tax expense (benefit) | (9,694 | ) | (5,318 | ) | ||||
Interest expense | 23,260 | 23,493 | ||||||
Depreciation and amortization | 50,414 | 52,488 | ||||||
EBITDA | 39,527 | 35,462 | ||||||
Change in Fair value of warrant liabilities (non-cash) | (5,267 | ) | 7,485 | |||||
Transformation expenses | 8,937 | 7,354 | ||||||
Acquisition and integration-related restructuring costs | 11,287 | 5,709 | ||||||
Stock-based compensation (non-cash) | 4,564 | 1,161 | ||||||
Other income tax liability reversal (non-cash) | — | 80 | ||||||
Foreign currency loss (non-cash) | 344 | 233 | ||||||
Other | 478 | 335 | ||||||
Adjusted EBITDA | $ | 59,870 | $ | 57,819 | ||||
ITEM 8.FINANCIALSTATEMENTS AND SUPPLEMENTARY DATA |
Years Ended | |||||||||||
December 31, 2022 | December 31, 2021 | ||||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash | $ | 34,645 | $ | 85,976 | |||||||
Accounts receivable, net | 44,538 | 51,615 | |||||||||
Inventories, net | 10,051 | 15,470 | |||||||||
Income taxes receivable | 502 | 934 | |||||||||
Prepaid expenses and other current assets | 13,484 | 7,363 | |||||||||
Total current assets | 103,220 | 161,358 | |||||||||
Non-current assets | |||||||||||
Restricted cash | 362 | 367 | |||||||||
Property and equipment, net | 11,899 | 12,240 | |||||||||
Intangibles assets, net | 192,504 | 202,550 | |||||||||
Goodwill | 369,706 | 383,415 | |||||||||
Operating lease right-of-use assets | 10,019 | — | |||||||||
Deferred tax assets | 55 | — | |||||||||
Other long-term assets | 971 | 407 | |||||||||
Total assets | $ | 688,736 | $ | 760,337 | |||||||
Liabilities and stockholders’ equity | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 17,835 | $ | 16,004 | |||||||
Accrued liabilities | 15,793 | 22,353 | |||||||||
Income taxes payable | 207 | 467 | |||||||||
Current portion of operating lease liabilities | 1,811 | — | |||||||||
Deferred revenue | 7,817 | 6,889 | |||||||||
Current portion of long-term debt and other borrowings, net | 5,345 | 3,326 | |||||||||
Total current liabilities | 48,808 | 49,039 | |||||||||
Non-current liabilities | |||||||||||
Deferred tax liabilities | 25,248 | 37,925 | |||||||||
Warrant liability | 33 | 286 | |||||||||
Long-term debt and other borrowings, net | 413,910 | 399,115 | |||||||||
Non-current portion of operating lease liabilities | 9,275 | — | |||||||||
Other long-term liabilities | 10,790 | 6,450 | |||||||||
Total liabilities | $ | 508,064 | $ | 492,815 |
December 31, | December 31, | |||||||
2021 | 2020 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 85,976 | $ | 10,321 | ||||
Accounts receivable, net of allowances for credits and doubtful accounts of $1,800 and $2,804, at December 31, 2021, and 2020, respectively | 51,304 | 40,661 | ||||||
Inventories, net | 15,470 | 5,842 | ||||||
Income taxes receivable | 954 | 0 | ||||||
Prepaid expenses and other receivables | 7,448 | 5,429 | ||||||
Total current assets | 161,152 | 62,253 | ||||||
Non-current assets | ||||||||
Restricted cash | 367 | 372 | ||||||
Property and equipment, net | 12,240 | 13,709 | ||||||
Intangibles assets, net | 203,474 | 240,203 | ||||||
Goodwill | 381,962 | 382,749 | ||||||
Deferred tax assets | 0 | 122 | ||||||
Other long-term assets | 407 | 611 | ||||||
Total assets | $ | 759,602 | $ | 700,019 | ||||
Liabilities, temporary equity and stockholders’ equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 16,004 | $ | 22,978 | ||||
Accrued liabilities | 21,311 | 17,209 | ||||||
Income taxes payable | 467 | 244 | ||||||
Current portion of capital lease obligations | 191 | 856 | ||||||
Deferred revenue | 6,889 | 7,772 | ||||||
Current portion of long-term debt and other borrowings, net | 3,326 | 3,161 | ||||||
Total current liabilities | 48,188 | 52,220 | ||||||
Non-current liabilities | ||||||||
Deferred tax liabilities | 36,722 | 42,840 | ||||||
Due to related parties | 0 | 1,615 | ||||||
Warrant liability | 286 | 15,944 | ||||||
Capital lease obligations | 264 | 508 | ||||||
Long-term debt and other borrowings, net | 399,115 | 298,404 | ||||||
Other long-term liabilities | 2,884 | 4,377 | ||||||
Total liabilities | $ | 487,459 | $ | 415,908 | ||||
Commitments and contingencies (note 1 1 ) |
December 31, 2022 | December 31, 2021 | ||||||||||
Stockholders’ equity | |||||||||||
Common stock, voting; par value $0.0001 per share; 315,000,000 shares authorized, 76,292,241 and 72,027,743 shares issued and outstanding at December 31, 2022 and December 31, 2021 | $ | 8 | $ | 7 | |||||||
Additional paid-in capital | 435,292 | 413,315 | |||||||||
Accumulated other comprehensive loss | (6,390) | (3,463) | |||||||||
Accumulated deficit | (248,238) | (142,337) | |||||||||
Total stockholders’ equity | 180,672 | 267,522 | |||||||||
Total liabilities and stockholders’ equity | $ | 688,736 | $ | 760,337 |
December 31, | December 31, | |||||||
2021 | 2020 | |||||||
Temporary equity | ||||||||
Series A Preferred Stock; par value $1,000 per share; NaN authorized, issued and outstanding at December 31, 2021; 7,765,229 shares authorized, and 7,756,158 shares issued and outstanding at December 31, 2020 | $ | — | $ | 77,562 | ||||
Series A-1 Preferred Stock; par value $1,000 per share; NaN authorized, issued and outstanding at December 31, 2021; 10,480,538 shares authorized, 7,862,107 shares issued and outstanding at December 31, 2020 | — | 78,621 | ||||||
Series B Preferred Stock; par value $1,000 per share; NaN authorized, issued and outstanding at December 31, 2021; 9,090,975 shares authorized, 9,090,975 shares issued and outstanding at December 31, 2020 | — | 90,910 | ||||||
Series C Convertible Preferred Stock; par value $1,000 per share; NaN authorized, issued and outstanding at December 31, 2021; 6,872,894 shares authorized, 2,566,186 shares issued and outstanding at December 31, | — | 16,802 | ||||||
Total temporary equity | $ | — | $ | 263,895 | ||||
Stockholders’ equity | ||||||||
Common stock, voting; par value $0.0001 per share; 315,000,000 shares authorized, 72,027,743 shares issued and outstanding at December 31, 2021; 55,659,643 shares authorized, 30,281,520 shares issued and outstanding at December 31, 2020 | $ | 7 | $ | 3 | ||||
Additional paid-in capital | 413,646 | 135,616 | ||||||
Accumulated other comprehensive loss | (3,331 | ) | (1,677 | ) | ||||
Accumulated deficit | (138,179 | ) | (113,726 | ) | ||||
Total stockholders’ equity | 272,143 | 20,216 | ||||||
Total liabilities, temporary equity and stockholders’ equity | $ | 759,602 | $ | 700,019 | ||||
Years Ended | |||||||||||||||||
December 31, 2022 | December 31, 2021 | ||||||||||||||||
Revenue | |||||||||||||||||
Services | $ | 188,985 | $ | 188,180 | |||||||||||||
Products | 79,462 | 60,255 | |||||||||||||||
Total revenue | 268,447 | 248,435 | |||||||||||||||
Cost of revenue | |||||||||||||||||
Cost of services | 67,268 | 69,385 | |||||||||||||||
Cost of products | 61,886 | 51,975 | |||||||||||||||
Total cost of revenue (exclusive of depreciation and amortization shown separately below) | 129,154 | 121,360 | |||||||||||||||
Operating expenses | |||||||||||||||||
Selling, general and administrative | 112,220 | 92,303 | |||||||||||||||
Depreciation and amortization | 54,499 | 50,331 | |||||||||||||||
Goodwill impairment | 58,074 | — | |||||||||||||||
Total operating expenses | 224,793 | 142,634 | |||||||||||||||
Operating loss | (85,500) | (15,559) | |||||||||||||||
Interest expense, including amortization of deferred financing costs, net | 31,371 | 23,260 | |||||||||||||||
Change in fair value of warrant liability | (254) | (5,267) | |||||||||||||||
Loss before income taxes | (116,617) | (33,552) | |||||||||||||||
Income tax benefit | (10,417) | (8,776) | |||||||||||||||
Net loss | $ | (106,200) | $ | (24,776) | |||||||||||||
Loss per share: | |||||||||||||||||
Basic | $ | (1.40) | $ | (1.04) | |||||||||||||
Diluted | $ | (1.40) | $ | (1.04) | |||||||||||||
Weighted average shares outstanding (in Number): | |||||||||||||||||
Basic | 75,710,904 | 41,933,050 | |||||||||||||||
Diluted | 75,710,904 | 41,933,050 |
For the years ended | December 31, | December 31, | December 31, | |||||||||
2021 | 2020 | 2019 | ||||||||||
Revenue | ||||||||||||
Services | $ | 187,962 | $ | 172,845 | $ | 159,425 | ||||||
Products | 60,255 | 40,915 | 9,727 | |||||||||
Total revenue | 248,217 | 213,760 | 169,152 | |||||||||
Cost of revenue | ||||||||||||
Cost of services | 69,867 | 64,520 | 57,621 | |||||||||
Cost of products | 52,357 | 33,410 | 6,044 | |||||||||
Total cost of revenue (exclusive of depreciation and amortization shown separately below) | 122,224 | 97,930 | 63,665 | |||||||||
Operating expenses | ||||||||||||
Selling, general and administrative | 91,733 | 72,883 | 65,298 | |||||||||
Depreciation and amortization | 50,414 | 52,488 | 48,131 | |||||||||
Intangible asset impairment loss | 0 | 0 | 3,892 | |||||||||
Total operating expenses | 142,147 | 125,371 | 117,321 | |||||||||
Operating loss | (16,154 | ) | (9,541 | ) | (11,834 | ) | ||||||
Interest expense, including amortization of deferred financing costs, net | 23,260 | 23,493 | 24,785 | |||||||||
Change in fair value of warrant liability | (5,267 | ) | 7,485 | (235 | ) | |||||||
Loss before income taxes | (34,147 | ) | (40,519 | ) | (36,384 | ) | ||||||
Income tax expense (benefit) | ||||||||||||
Current | 177 | 1,051 | (1,450 | ) | ||||||||
Deferred | (9,871 | ) | (6,369 | ) | (11,491 | ) | ||||||
Total income tax benefit | (9,694 | ) | (5,318 | ) | (12,941 | ) | ||||||
Net loss attributable to the Company | $ | (24,453 | ) | $ | (35,201 | ) | $ | (23,443 | ) | |||
Loss per share: | ||||||||||||
Basic | $ | (1.03 | ) | $ | (1.96 | ) | $ | (1.45 | ) | |||
Diluted | $ | (1.03 | ) | $ | (1.96 | ) | $ | (1.45 | ) | |||
Weighted average shares outstanding (in Number): | ||||||||||||
Basic | 41,933,050 | 31,650,173 | 31,169,435 | |||||||||
Diluted | 41,933,050 | 31,650,173 | 31,169,435 |
Years Ended | |||||||||||
December 31, 2022 | December 31, 2021 | ||||||||||
Net loss | $ | (106,200) | $ | (24,776) | |||||||
Other comprehensive loss: | |||||||||||
Foreign currency translation adjustment | (2,927) | (1,901) | |||||||||
Comprehensive loss | $ | (109,127) | $ | (26,677) |
For the years ended | December 31, 2021 | December 31, 2020 | December 31, 2019 | |||||||||
Net loss | $ | (24,453 | ) | $ | (35,201 | ) | $ | (23,443 | ) | |||
Other comprehensive income (loss): | ||||||||||||
Foreign currency translation adjustment | (1,654 | ) | 2,116 | 517 | ||||||||
Comprehensive loss | $ | (26,107 | ) | $ | (33,085 | ) | $ | (22,926 | ) | |||
Series A Preferred Stock | Series A-1 Preferred Stock | Series B Preferred Stock | Series C Convertible Preferred Stock | Total Temporary Equity | Common Stock | Additional paid-in capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Temporary Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Amount | Shares | Amount | Amount | Amount | Amount | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 7,756,158 | $ | 77,562 | 7,862,107 | $ | 78,621 | 9,090,975 | $ | 90,910 | 2,520,368 | $ | 16,502 | $ | 263,595 | 30,281,520 | $ | 3 | $ | 135,616 | $ | (1,562) | $ | (117,561) | $ | 16,496 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued dividends payable | 765,609 | 7,656 | 824,076 | 8,241 | 692,543 | 6,925 | — | — | 22,822 | — | — | (22,822) | — | — | (22,822) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | (1,901) | — | (1,901) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | — | — | 200,426 | — | (1,856) | — | — | (1,856) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to and conversions of preferred stock | (8,521,767) | (85,218) | (8,686,183) | (86,862) | (9,783,518) | (97,835) | (2,520,368) | (16,502) | (286,417) | 7,120,368 | 1 | 56,502 | — | — | 56,503 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CTAC shares recapitalized, net of equity issuance costs of $15,943 | — | — | — | — | — | — | — | — | — | 10,373,491 | 1 | 6,428 | — | — | 6,429 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of KORE warrants | — | — | — | — | — | — | — | — | — | 1,365,612 | — | 10,663 | — | — | 10,663 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private offering and merger financing, net of equity issuance costs of $8123 | — | — | — | — | — | — | — | — | — | 22,686,326 | 2 | 216,544 | — | — | 216,546 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity portion of convertible debt, net of deferred financing costs of $384, net of sponsor shares of $683, net of deferred tax liability of $3,999 | — | — | — | — | — | — | — | — | — | — | — | 12,240 | — | — | 12,240 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | (24,776) | (24,776) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | — | — | — | — | — | — | — | — | — | 72,027,743 | 7 | 413,315 | (3,463) | (142,337) | 267,522 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Opening balance sheet adjustment | — | — | — | — | — | — | — | — | — | — | — | (11,613) | 299 | (11,314) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted opening balance | — | — | — | — | — | — | — | — | — | 72,027,743 | 7 | 401,702 | (3,463) | (142,038) | 256,208 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued pursuant to acquisition | — | — | — | — | — | — | — | — | — | 4,212,246 | 1 | 23,294 | — | — | 23,295 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | (2,927) | — | (2,927) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | — | — | — | — | 10,296 | — | — | 10,296 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | — | — | — | — | — | — | — | — | — | 52,252 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | (106,200) | (106,200) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | — | — | — | — | — | — | — | — | — | 76,292,241 | $ | 8 | $ | 435,292 | $ | (6,390) | $ | (248,238) | $ | 180,672 |
Series A Preferred Stock | Series A-1 Preferred Stock | Series B Preferred Stock | Series C Convertible Preferred Stock | Total Temporary Equity | Common Stock | Additional paid-in capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||
Temporary Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Amount | Shares | Amount | Amount | Amount | Amount | Amount | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 (as previously reported) | 42,750 | $ | 60,270 | 60,013 | $ | 61,444 | 57,000 | $ | 76,832 | 16,802 | $ | 16,802 | $ | 215,348 | 213,756 | $ | 2 | $ | 174,601 | $ | (4,310 | ) | $ | (55,082 | ) | $ | 115,211 | |||||||||||||||||||||||||||||||||
Conversion of Stock | 5,984,277 | — | 6,084,419 | — | 7,626,175 | — | 2,549,384 | — | — | 29,530,231 | 1 | (1 | ) | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018, effect of reverse recapitalization | 6,027,027 | $ | 60,270 | 6,144,432 | $ | 61,444 | 7,683,175 | $ | 76,832 | 2,566,186 | $ | 16,802 | $ | 215,348 | 29,743,987 | $ | 3 | $ | 174,600 | $ | (4,310 | ) | $ | (55,082 | ) | $ | 115,211 | |||||||||||||||||||||||||||||||||
Issuance of stock | — | — | — | — | — | — | — | — | — | 573,016 | — | 7,000 | — | — | 7,000 | |||||||||||||||||||||||||||||||||||||||||||||
Repurchase and cancellation of stock | — | — | — | — | — | — | — | — | — | (7,653 | ) | — | (80 | ) | — | — | (80 | ) | ||||||||||||||||||||||||||||||||||||||||||
Accrued dividends payable | 808,976 | 8,090 | 805,092 | 8,051 | 550,599 | 5,506 | — | — | 21,647 | — | — | (21,647 | ) | — | — | (21,647 | ) | |||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | 517 | — | 517 | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | — | — | — | — | 1,682 | — | — | 1,682 | |||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | (23,443 | ) | (23,443 | ) | |||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 6,836,003 | $ | 68,360 | 6,949,524 | $ | 69,495 | 8,233,774 | $ | 82,338 | 2,566,186 | $ | 16,802 | $ | 236,995 | 30,309,350 | $ | 3 | $ | 161,555 | $ | (3,793 | ) | $ | (78,525 | ) | $ | 79,240 | |||||||||||||||||||||||||||||||||
Repurchase and cancellation of stock | — | — | — | — | — | — | — | — | — | (27,830 | ) | — | (200 | ) | — | — | (200 | ) | ||||||||||||||||||||||||||||||||||||||||||
Accrued dividends payable | 920,155 | 9,202 | 912,583 | 9,126 | 857,201 | 8,572 | — | — | 26,900 | — | — | (26,900 | ) | — | — | (26,900 | ) | |||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | 2,116 | — | 2,116 | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | — | — | — | — | 1,161 | — | — | 1,161 | |||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | (35,201 | ) | (35,201 | ) | |||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 7,756,158 | $ | 77,562 | 7,862,107 | $ | 78,621 | 9,090,975 | $ | 90,910 | 2,566,186 | $ | 16,802 | $ | 263,895 | 30,281,520 | $ | 3 | $ | 135,616 | $ | (1,677 | ) | $ | (113,726 | ) | $ | 20,216 | |||||||||||||||||||||||||||||||||
Derecognition of shares | — | — | — | — | — | — | (45,818 | ) | (300 | ) | (300 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Accrued dividends payable | 765,609 | 7,656 | 824,076 | 8,241 | 692,543 | 6,925 | — | — | 22,822 | — | — | (22,822 | ) | — | — | (22,822 | ) | |||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | (1,654 | ) | — | (1,654 | ) | |||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | — | — | 200,426 | — | (1,856 | ) | — | — | (1,856 | ) | |||||||||||||||||||||||||||||||||||||||||||
Distributions to and conversions of preferred stock | (8,521,767 | ) | (85,218 | ) | (8,686,183 | ) | (86,862 | ) | (9,783,518 | ) | (97,835 | ) | (2,520,368 | ) | (16,502 | ) | (286,417 | ) | 7,120,368 | 1 | 56,502 | — | — | 56,503 | ||||||||||||||||||||||||||||||||||||
CTAC shares recapitalized, net of equity issuance costs of $15,943 | — | — | — | — | — | — | — | — | — | 10,373,491 | 1 | 6,428 | — | — | 6,460 | |||||||||||||||||||||||||||||||||||||||||||||
Conversion of KORE warrants | — | — | — | — | — | — | — | — | — | 1,365,612 | — | 10,663 | — | — | 10,663 | |||||||||||||||||||||||||||||||||||||||||||||
Private offering and merger financing, net of equity issuance costs of $8,123 | — | — | — | — | — | — | — | — | — | 22,686,326 | 2 | 216,875 | — | — | 217,126 | |||||||||||||||||||||||||||||||||||||||||||||
Equity portion of convertible debt, net of deferred financing costs of $ 384 , net of sponsor shares of $683, net of deferred tax liability of $3,999 | — | — | — | — | — | — | — | — | — | — | — | 12,240 | — | — | 11,960 | |||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | (24,453 | ) | (24,453 | ) | |||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 0 | $ | 0 | 0 | $ | 0 | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | 72,027,743 | $ | 7 | $ | 413,646 | $ | (3,331 | ) | $ | (138,179 | ) | $ | 272,143 | |||||||||||||||||||||||||||||||||
For the years ended | December 31, 2022 | December 31, 2021 | ||||||||||||
Cash flows provided by (used in) operating activities | ||||||||||||||
Net loss | $ | (106,200) | $ | (24,776) | ||||||||||
Adjustments to reconcile net loss to net cash provided (used in) by operating activities | ||||||||||||||
Depreciation and amortization | 54,499 | 50,331 | ||||||||||||
Goodwill impairment loss | 58,074 | — | ||||||||||||
Amortization of deferred financing costs | 2,427 | 2,097 | ||||||||||||
Amortization of discount on Backstop Notes | — | 424 | ||||||||||||
Non-cash reduction to the operating lease right-of-use assets | 2,218 | — | ||||||||||||
Deferred income taxes | (16,189) | (9,691) | ||||||||||||
Non-cash foreign currency loss | 14 | 344 | ||||||||||||
Stock-based compensation | 10,296 | 4,564 | ||||||||||||
Provision for doubtful accounts | 415 | 322 | ||||||||||||
Change in fair value of warrant liability | (254) | (5,267) | ||||||||||||
Change in operating assets and liabilities, net of operating assets and liabilities acquired: | ||||||||||||||
Accounts receivable | 8,962 | (12,102) | ||||||||||||
Inventories | 6,542 | (9,875) | ||||||||||||
Prepaid expenses and other current assets | (1,992) | (1,244) | ||||||||||||
Accounts payable and accrued liabilities | (2,116) | (8,419) | ||||||||||||
Deferred revenue | 980 | (805) | ||||||||||||
Income taxes payable | 148 | (661) | ||||||||||||
Operating lease liabilities | (1,468) | — | ||||||||||||
Cash provided by (used in) operating activities | $ | 16,356 | $ | (14,758) | ||||||||||
Cash flows (used in) provided by investing activities | ||||||||||||||
Additions to intangible assets | (13,238) | (9,247) | ||||||||||||
Additions to property and equipment | (3,307) | (4,172) | ||||||||||||
Payments for acquisitions, net of cash acquired | (46,002) | — | ||||||||||||
Cash flows (used in) provided by investing activities | $ | (62,547) | $ | (13,419) | ||||||||||
Cash flows (used in) provided by financing activities | ||||||||||||||
Proceeds from revolving credit facility | — | 25,000 | ||||||||||||
Repayment on revolving credit facility | — | (25,000) | ||||||||||||
Repayment of term loan | (3,153) | (3,161) | ||||||||||||
Repayment of other borrowings - notes payable | (1,035) | (173) | ||||||||||||
Proceeds from convertible debt | — | 104,167 | ||||||||||||
Proceeds from equity portion of convertible debt, net of issuance costs | — | 15,697 | ||||||||||||
Payment of deferred financing costs | (356) | (1,579) | ||||||||||||
Repayment of related party note | — | (1,538) | ||||||||||||
Proceeds from CTAC and PIPE financing, net of issuance costs | — | 223,688 | ||||||||||||
Settlements of preferred shares | — | (229,915) | ||||||||||||
Payment of financing lease obligations | (150) | — | ||||||||||||
Payment of capital lease obligations | — | (828) | ||||||||||||
Payment of stock option share employee withholding taxes | — | (2,305) | ||||||||||||
Cash (used in) provided by financing activities | $ | (4,694) | $ | 104,053 | ||||||||||
Effect of exchange rate change on cash | (451) | (226) | ||||||||||||
Change in Cash and Restricted cash | (51,336) | 75,650 | ||||||||||||
Cash and Restricted Cash, beginning of period | 86,343 | 10,693 | ||||||||||||
Cash and Restricted Cash, end of period | $ | 35,007 | $ | 86,343 | ||||||||||
Non-cash investing and financing activities: | ||||||||||||||
Fair value of KORE common stock issued pursuant to acquisition | 23,295 | — | ||||||||||||
ASU 2020-06 Adoption | 15,163 | — | ||||||||||||
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities upon the adoption of ASC 842 | 9,604 | — | ||||||||||||
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities | 3,409 | — | ||||||||||||
Premium finance agreement | 3,621 | — | ||||||||||||
Equity financing fees accrued | — | 3,602 | ||||||||||||
Common shares issued to preferred shareholders | — | 56,502 | ||||||||||||
Equity financing fees settled in common shares | — | 1,863 | ||||||||||||
Common shares issued to warrant holders | — | 10,663 | ||||||||||||
Common shares issued to option holders pursuant to the Cancellation Agreements | — | 1,072 | ||||||||||||
Sponsor shares distributed to lender under Backstop Agreement | — | 683 | ||||||||||||
Supplemental cash flow information: | — | |||||||||||||
Interest paid | 29,199 | 19,874 | ||||||||||||
Taxes paid (net of refunds) | 2,119 | 957 |
For the years ended | December 31, 2021 | December 31, 2020 | December 31, 2019 | |||||||||
Cash flows from operating activities | ||||||||||||
Net loss | $ | (24,453 | ) | $ | (35,201 | ) | $ | (23,443 | ) | |||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities | ||||||||||||
Depreciation and amortization | 50,414 | 52,488 | 48,131 | |||||||||
Intangible asset impairment loss | — | — | 3,892 | |||||||||
Amortization of deferred financing costs | 2,097 | 2,313 | 2,063 | |||||||||
Amortization of discount on Backstop Notes | 424 | — | — | |||||||||
Deferred income taxes | (9,871 | ) | (6,178 | ) | (11,419 | ) | ||||||
Non-cash foreign currency loss | 344 | 233 | 1,440 | |||||||||
Share-based compensation | 4,564 | 1,161 | 1,682 | |||||||||
Provision for doubtful accounts | 322 | 640 | 905 | |||||||||
Change in fair value of warrant liability | (5,267 | ) | 7,485 | (235 | ) | |||||||
Settlement gain on carrier commitment liability | — | — | (2,269 | ) | ||||||||
Change in operating assets and liabilities, net of operating assets and liabilities acquired: | ||||||||||||
Accounts receivable | (11,884 | ) | (6,072 | ) | 860 | |||||||
Inventories | (9,875 | ) | (3,027 | ) | (566 | ) | ||||||
Prepaid expenses and other receivables | (1,700 | ) | (2,020 | ) | 169 | |||||||
Accounts payable and accrued liabilities | (8,371 | ) | 13,100 | (2,458 | ) | |||||||
Deferred revenue | (805 | ) | 1,583 | (44 | ) | |||||||
Income taxes payable | (697 | ) | (34 | ) | (1,158 | ) | ||||||
Change in minimum carrier commitment liability | — | — | (3,297 | ) | ||||||||
Cash (used in) provided by operating activities | $ | (14,758 | ) | $ | 26,471 | $ | 14,253 | |||||
Cash flows used in investing activities | ||||||||||||
Additions to intangible assets | (9,247 | ) | (10,135 | ) | (10,491 | ) | ||||||
Additions to property and equipment | (4,172 | ) | (1,834 | ) | (2,391 | ) | ||||||
Acquisition of Integron LLC, net of cash acquired | — | 366 | (37,488 | ) | ||||||||
Net cash used in investing activities | $ | (13,419 | ) | $ | (11,603 | ) | $ | (50,370 | ) | |||
Cash flows from financing activities | ||||||||||||
Proceeds from revolving credit facility | 25,000 | — | 8,135 | |||||||||
Repayment on revolving credit facility | (25,000 | ) | (8,300 | ) | — | |||||||
Repayment of term loan | (3,161 | ) | (3,526 | ) | (2,888 | ) | ||||||
Repayment of other borrowings - notes payable | (173 | ) | — | — | ||||||||
Proceeds from term loan | — | — | 35,000 | |||||||||
Proceeds from convertible debt | 104,167 | 0 | 0 | |||||||||
Proceeds from equity portion of convertible debt, net of issuance costs | 15,697 | — | — | |||||||||
Payment of deferred financing costs | (1,579 | ) | — | (2,089 | ) | |||||||
Repayment of related party note | (1,538 | ) | — | — | ||||||||
Repurchase of common stock | — | (200 | ) | (80 | ) | |||||||
Proceeds from CTAC and PIPE financing, net of issuance costs | 223,688 | — | — | |||||||||
Settlements of preferred shares | (229,915 | ) | — | — | ||||||||
Payment of capital lease obligations | (828 | ) | (692 | ) | (1,080 | ) | ||||||
Payment of stock option share employee withholding taxes | (2,305 | ) | — | — | ||||||||
Cash provided by/(used in) financing activities | $ | 104,053 | $ | (12,718 | ) | $ | 36,998 | |||||
Effect of Exchange Rate Change on Cash and Cash Equivalents | (226 | ) | (149 | ) | (162 | ) | ||||||
Change in Cash and Cash Equivalents and Restricted Cash | 75,650 | 2,001 | 719 | |||||||||
Cash and Cash Equivalents and Restricted Cash, beginning of period | 10,693 | 8,692 | 7,973 | |||||||||
Cash and Cash Equivalents and Restricted Cash, end of period | $ | 86,343 | $ | 10,693 | $ | 8,692 |
For the years ended | 2021 | 2020 | 2019 | |||||||||
Non-cash investing and financing activities: | ||||||||||||
Equity issued for acquisition of Integron LLC | $ | — | $ | — | $ | 7,000 | ||||||
Equity financing fees accrued | 3,602 | — | — | |||||||||
Capital leases | 0 | 622 | 1,120 | |||||||||
Common shares issued to preferred shareholders | 56,502 | — | — | |||||||||
Equity financing fees settled in common shares | 1,863 | — | — | |||||||||
Common shares issued to warrant holders | 10,663 | — | — | |||||||||
Common shares issued to option holders pursuant to the Cancellation Agreements | 1,072 | — | — | |||||||||
Sponsor shares distributed to lender under Backstop Agreement | 683 | — | — | |||||||||
Supplemental cash flow information: | ||||||||||||
Interest paid | $ | 19,874 | $ | 21,544 | $ | 23,977 | ||||||
Taxes paid (net of refunds) | 957 | 379 | 417 |
•Exemption to not disclose the unfulfilled performance obligation balance for contracts |
Computer hardware and software | 30 | % | |||||
20 | % | ||||||
Furniture and fixtures | 20 | % |
Customer relationships | 10-13 years | |||||
Technology | 5-9 years | |||||
Carrier contracts | 10 years | |||||
Trademarks | ||||||
Internally developed computer software |
Previous Filings | After Correction | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
Three months Ended September 30, | ||||||||||||||||
Net loss attributable to common shareholders | $ | (8,331 | ) | $ | (12,787 | ) | $ | (8,331 | ) | $ | (12,787 | ) | ||||
Loss per share: | ||||||||||||||||
Basic | $ | (0.27 | ) | $ | (0.42 | ) | $ | (0.26 | ) | $ | (0.40 | ) | ||||
Diluted | $ | (0.27 | ) | $ | (0.42 | ) | $ | (0.26 | ) | $ | (0.40 | ) | ||||
Weighted-average shares outstanding: | ||||||||||||||||
Basic | 30,732,921 | 30,281,520 | 32,098,715 | 31,647,131 | ||||||||||||
Diluted | 30,732,921 | 30,281,520 | 32,098,715 | 31,647,131 |
Previous Filings | After Correction | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
Nine months Ended September 30, | ||||||||||||||||
Net loss attributable to common shareholders | $ | (31,222 | ) | $ | (39,966 | ) | $ | (31,222 | ) | $ | (39,966 | ) | ||||
Net loss per share | ||||||||||||||||
Basic | $ | (1.03 | ) | $ | (1.32 | ) | $ | (0.98 | ) | $ | (1.26 | ) | ||||
Diluted | $ | (1.03 | ) | $ | (1.32 | ) | $ | (0.98 | ) | $ | (1.26 | ) | ||||
Weighted-average shares outstanding: | ||||||||||||||||
Basic | 30,433,641 | 30,285,684 | 31,799,313 | 31,651,295 | ||||||||||||
Diluted | 30,433,641 | 30,285,684 | 31,799,313 | 31,651,295 |
(In thousands, USD) | At December 31, 2021 | Adjustments due to ASC 842 | At January 1 2022 | |||||||||||||||||
Operating lease right-of-use assets | $ | — | $ | 9,278 | $ | 9,278 | ||||||||||||||
Current portion of operating lease liabilities | — | 2,121 | 2,121 | |||||||||||||||||
Non-current portion of operating lease liabilities | — | 7,483 | 7,483 | |||||||||||||||||
Current portion of capital lease liabilities included in Accrued liabilities | 191 | (191) | — | |||||||||||||||||
Current portion of finance lease liabilities included in Accrued liabilities | — | 191 | 191 | |||||||||||||||||
Non-current portion of capital lease liabilities included in Other long-term liabilities | 264 | (264) | — | |||||||||||||||||
Non-current portion of finance lease liabilities included in Other long-term liabilities | — | 264 | 264 | |||||||||||||||||
Accrued liabilities | 22,353 | (326) | 22,027 |
(In thousands, USD) | At December 31, 2021 | Adjustments due to ASU 2020-06 | At January 1, 2022 | |||||||||||||||||
Long-term debt and other borrowings, net | $ | 399,115 | $ | 15,163 | $ | 414,278 | ||||||||||||||
Additional paid-in capital | 413,315 | (11,613) | 401,702 | |||||||||||||||||
Deferred tax liabilities | 37,925 | (3,849) | 34,076 | |||||||||||||||||
Accumulated deficit | (142,337) | 299 | (142,038) |
December 31, 2021 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments* | As revised | |||||||||||||
Assets | |||||||||||||||||
Current assets | |||||||||||||||||
Cash | $ | 85,976 | — | — | — | $ | 85,976 | ||||||||||
Accounts receivable, net | 51,304 | — | — | 311 | 51,615 | ||||||||||||
Inventories, net | 15,470 | — | — | — | 15,470 | ||||||||||||
Income taxes receivable | 954 | — | — | (20) | 934 | ||||||||||||
Prepaid expenses and other receivables | 7,448 | — | — | (85) | 7,363 | ||||||||||||
Total current assets | 161,152 | — | — | 206 | 161,358 | ||||||||||||
Non-current assets | |||||||||||||||||
Restricted cash | 367 | — | — | — | 367 | ||||||||||||
Property and equipment, net | 12,240 | — | — | — | 12,240 | ||||||||||||
Intangibles assets, net | 203,474 | — | — | (924) | 202,550 | ||||||||||||
Goodwill | 381,962 | — | — | 1,453 | 383,415 | ||||||||||||
Other long-term assets | 407 | — | — | — | 407 | ||||||||||||
Total assets | $ | 759,602 | $ | — | $ | — | $ | 735 | $ | 760,337 | |||||||
Liabilities and stockholders’ equity | |||||||||||||||||
Current liabilities | |||||||||||||||||
Accounts payable | $ | 16,004 | — | — | — | $ | 16,004 | ||||||||||
Accrued liabilities | 21,311 | — | — | 1,042 | 22,353 | ||||||||||||
Income taxes payable | 467 | — | — | — | 467 | ||||||||||||
Current portion of capital lease obligations | 191 | — | — | (191) | — | ||||||||||||
Deferred revenue | 6,889 | — | — | — | 6,889 | ||||||||||||
Current portion of long-term debt and other borrowings, net | 3,326 | — | — | — | 3,326 | ||||||||||||
Total current liabilities | 48,188 | — | — | 851 | 49,039 | ||||||||||||
Non-current liabilities | |||||||||||||||||
Deferred tax liabilities | 36,722 | 1,435 | — | (232) | 37,925 | ||||||||||||
Warrant liability | 286 | — | — | — | 286 | ||||||||||||
Capital lease obligations | 264 | — | — | (264) | — | ||||||||||||
Long-term debt and other borrowings, net | 399,115 | — | — | — | 399,115 | ||||||||||||
Other long-term liabilities | 2,884 | 1,994 | 1,257 | 315 | 6,450 | ||||||||||||
Total liabilities | $ | 487,459 | $ | 3,429 | $ | 1,257 | $ | 670 | $ | 492,815 | |||||||
Stockholders’ equity | |||||||||||||||||
Common stock, voting; par value $0.0001 per share; 315,000,000 shares authorized, 72,027,743 shares issued and outstanding at December 31, 2021 | $ | 7 | — | — | — | $ | 7 | ||||||||||
Additional paid-in capital | 413,646 | — | — | (331) | 413,315 | ||||||||||||
Accumulated other comprehensive loss | (3,331) | (46) | — | (86) | (3,463) | ||||||||||||
Accumulated deficit | (138,179) | (3,383) | (1,257) | 482 | (142,337) | ||||||||||||
Total stockholders’ equity | 272,143 | (3,429) | (1,257) | 65 | 267,522 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 759,602 | $ | — | $ | — | $ | 735 | $ | 760,337 |
December 31, 2021 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other Adjustments | As Revised | |||||||||||||
Revenue | |||||||||||||||||
Services | $ | 187,962 | $ | — | $ | — | $ | 218 | $ | 188,180 | |||||||
Products | 60,255 | — | — | — | 60,255 | ||||||||||||
Total revenue | 248,217 | — | — | 218 | 248,435 | ||||||||||||
Cost of revenue | |||||||||||||||||
Cost of services | 69,867 | — | — | (482) | 69,385 | ||||||||||||
Cost of products | 52,357 | — | — | (382) | 51,975 | ||||||||||||
Total cost of revenue (exclusive of depreciation and amortization shown separately below) | 122,224 | — | — | (864) | 121,360 | ||||||||||||
Operating expenses | — | ||||||||||||||||
Selling, general and administrative | 91,733 | — | 457 | 113 | 92,303 | ||||||||||||
Depreciation and amortization | 50,414 | — | — | (83) | 50,331 | ||||||||||||
Total operating expenses | 142,147 | — | 457 | 30 | 142,634 | ||||||||||||
Operating loss | (16,154) | — | (457) | 1,052 | (15,559) | ||||||||||||
Interest expense, including amortization of deferred financing costs, net | 23,260 | — | — | — | 23,260 | ||||||||||||
Change in fair value of warrant liability | (5,267) | — | — | — | (5,267) | ||||||||||||
Loss before income taxes | (34,147) | — | (457) | 1,052 | (33,552) | ||||||||||||
Income tax expense (benefit) | (9,694) | 732 | — | 186 | (8,776) | ||||||||||||
Net loss | $ | (24,453) | $ | (732) | $ | (457) | $ | 866 | $ | (24,776) | |||||||
Loss per share: | |||||||||||||||||
Basic | $ | (1.03) | $ | (0.02) | $ | (0.01) | $ | 0.02 | $ | (1.04) | |||||||
Diluted | $ | (1.03) | $ | (0.02) | $ | (0.01) | $ | 0.02 | $ | (1.04) | |||||||
Weighted average shares outstanding (in Number): | |||||||||||||||||
Basic | 41,933,050 | — | — | — | 41,933,050 | ||||||||||||
Diluted | 41,933,050 | — | — | — | 41,933,050 | ||||||||||||
December 31, 2021 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other Adjustments | As Revised | |||||||||||||
Net loss | $ | (24,453) | $ | (732) | $ | (457) | $ | 866 | $ | (24,776) | |||||||
Other comprehensive income (loss): | |||||||||||||||||
Foreign currency translation adjustment | (1,654) | 53 | — | (300) | (1,901) | ||||||||||||
Comprehensive loss | $ | (26,107) | $ | (679) | $ | (457) | $ | 566 | $ | (26,677) |
Series A Preferred Stock | Series A-1 Preferred Stock | Series B Preferred Stock | Series C Convertible Preferred Stock | Total Temporary Equity | Common Stock | Additional paid-in capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Temporary Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Amount | Shares | Amount | Amount | Amount | Amount | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As Reported | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 7,756,158 | $ | 77,562 | 7,862,107 | $ | 78,621 | 9,090,975 | $ | 90,910 | 2,566,186 | $ | 16,802 | $ | 263,895 | 30,281,520 | $ | 3 | $ | 135,616 | $ | (1,677) | $ | (113,726) | $ | 20,216 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derecognition of shares | — | — | — | — | — | — | (45,818) | (300) | (300) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued dividends payable | 765,609 | 7,656 | 824,076 | 8,241 | 692,543 | 6,925 | — | — | 22,822 | — | — | (22,822) | — | — | (22,822) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | (1,654) | — | (1,654) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | — | — | 200,426 | — | (1,856) | — | — | (1,856) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to and conversions of preferred stock | (8,521,767) | (85,218) | (8,686,183) | (86,862) | (9,783,518) | (97,835) | (2,520,368) | (16,502) | (286,417) | 7,120,368 | 1 | 56,502 | — | — | 56,503 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CTAC shares recapitalized, net of equity issuance costs of $15,943 | — | — | — | — | — | — | — | — | — | 10,373,491 | 1 | 6,428 | — | — | 6,429 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of KORE warrants | — | — | — | — | — | — | — | — | — | 1,365,612 | — | 10,663 | — | — | 10,663 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private offering and merger financing, net of equity issuance costs of $8123 | — | — | — | — | — | — | — | — | — | 22,686,326 | 2 | 216,875 | — | — | 216,877 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity portion of convertible debt, net of deferred financing costs of $384, net of sponsor shares of $683, net of deferred tax liability of $3,999 | — | — | — | — | — | — | — | — | — | — | — | 12,240 | — | — | 12,240 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | (24,453) | (24,453) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | — | $ | — | — | $ | — | — | $ | — | — | $ | — | $ | — | 72,027,743 | $ | 7 | $ | 413,646 | $ | (3,331) | $ | (138,179) | $ | 272,143 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | — | — | — | — | — | — | (45,818) | (300) | (300) | — | — | — | 115 | (3,835) | (3,720) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derecognition of shares | — | — | — | — | — | — | 45,818 | 300 | 300 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | (247) | — | (247) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private offering and merger financing | — | — | — | — | — | — | — | — | — | — | — | (331) | — | — | (331) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | (323) | (323) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Adjustments | — | — | — | — | — | — | — | — | — | — | — | $ | (331) | $ | (132) | $ | (4,158) | $ | (4,621) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As Revised | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 7,756,158 | 77,562 | 7,862,107 | 78,621 | 9,090,975 | 90,910 | 2,520,368 | 16,502 | 263,595 | 30,281,520 | 3 | 135,616 | (1,562) | (117,561) | 16,496 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derecognition of shares | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued dividends payable | 765,609 | 7,656 | 824,076 | 8,241 | 692,543 | 6,925 | — | — | 22,822 | — | — | (22,822) | — | — | (22,822) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | (1,901) | — | (1,901) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | — | — | 200,426 | — | (1,856) | — | — | (1,856) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to and conversions of preferred stock | (8,521,767) | (85,218) | (8,686,183) | (86,862) | (9,783,518) | (97,835) | (2,520,368) | (16,502) | (286,417) | 7,120,368 | 1 | 56,502 | — | — | 56,503 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CTAC shares recapitalized, net of equity issuance costs of $15,943 | — | — | — | — | — | — | — | — | — | 10,373,491 | 1 | 6,428 | — | — | 6,429 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of KORE warrants | — | — | — | — | — | — | — | — | — | 1,365,612 | — | 10,663 | — | — | 10,663 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private offering and merger financing, net of equity issuance costs of $8123 | — | — | — | — | — | — | — | — | — | 22,686,326 | 2 | 216,544 | — | — | 216,546 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity portion of convertible debt, net of deferred financing costs of $384, net of sponsor shares of $683, net of deferred tax liability of $3,999 | — | — | — | — | — | — | — | — | — | — | — | 12,240 | — | — | 12,240 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | (24,776) | (24,776) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | — | $ | — | — | $ | — | — | $ | — | — | $ | — | $ | — | 72,027,743 | $ | 7 | $ | 413,315 | $ | (3,463) | $ | (142,337) | $ | 267,522 |
December 31, 2021 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | As Revised | |||||||||||||
Cash flows from operating activities | |||||||||||||||||
Net loss | $ | (24,453) | $ | (732) | $ | (457) | $ | 866 | $ | (24,776) | |||||||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities | |||||||||||||||||
Depreciation and amortization | 50,414 | — | — | (83) | 50,331 | ||||||||||||
Amortization of deferred financing costs | 2,097 | — | — | — | 2,097 | ||||||||||||
Amortization of discount on Backstop Notes | 424 | — | — | — | 424 | ||||||||||||
Deferred income taxes | (9,871) | 323 | (143) | (9,691) | |||||||||||||
Non-cash foreign currency loss | 344 | — | — | — | 344 | ||||||||||||
Share-based compensation | 4,564 | — | — | — | 4,564 | ||||||||||||
Provision for doubtful accounts | 322 | — | — | — | 322 | ||||||||||||
Change in fair value of warrant liability | (5,267) | — | — | — | (5,267) | ||||||||||||
Change in operating assets and liabilities, net of operating assets and liabilities acquired: | |||||||||||||||||
Accounts receivable | (11,884) | — | — | (218) | (12,102) | ||||||||||||
Inventories | (9,875) | — | — | — | (9,875) | ||||||||||||
Prepaid expenses and other receivables | (1,700) | — | — | 456 | (1,244) | ||||||||||||
Accounts payable and accrued liabilities | (8,371) | 409 | 457 | (914) | (8,419) | ||||||||||||
Deferred revenue | (805) | — | — | — | (805) | ||||||||||||
Income taxes payable | (697) | — | — | 36 | (661) | ||||||||||||
Cash used in operating activities | $ | (14,758) | $ | — | $ | — | $ | — | $ | (14,758) | |||||||
Cash flows used in investing activities | |||||||||||||||||
Additions to intangible assets | (9,247) | — | — | — | (9,247) | ||||||||||||
Additions to property and equipment | (4,172) | (4,172) | |||||||||||||||
Net cash (used) in investing activities | $ | (13,419) | $ | — | $ | — | $ | — | $ | (13,419) | |||||||
Cash flows from financing activities | |||||||||||||||||
Proceeds from revolving credit facility | 25,000 | — | — | — | 25,000 | ||||||||||||
Repayment on revolving credit facility | (25,000) | — | — | — | (25,000) | ||||||||||||
Repayment of term loan | (3,161) | — | — | — | (3,161) | ||||||||||||
Repayment of other borrowings - notes payable | (173) | — | — | — | (173) | ||||||||||||
Proceeds from convertible debt | 104,167 | — | — | — | 104,167 | ||||||||||||
Proceeds from equity portion of convertible debt, net of issuance costs | 15,697 | — | — | — | 15,697 | ||||||||||||
Payment of deferred financing costs | (1,579) | — | — | — | (1,579) | ||||||||||||
Repayment of related party note | (1,538) | — | — | — | (1,538) | ||||||||||||
Proceeds from CTAC and PIPE financing, net of issuance costs | 223,688 | — | — | — | 223,688 | ||||||||||||
Settlements of preferred shares | (229,915) | — | — | — | (229,915) | ||||||||||||
Payment of capital lease obligations | (828) | — | — | — | (828) | ||||||||||||
Payment of stock option share employee withholding taxes | (2,305) | — | — | — | (2,305) | ||||||||||||
Cash provided by/(used in) financing activities | $ | 104,053 | $ | — | $ | — | $ | — | $ | 104,053 | |||||||
Effect of Exchange Rate Change on Cash | (226) | — | — | — | (226) |
December 31, 2021 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | As Revised | |||||||||||||
Change in Cash and Restricted Cash | 75,650 | — | — | — | 75,650 | ||||||||||||
Cash and Restricted Cash, beginning of period | 10,693 | — | — | — | 10,693 | ||||||||||||
Cash and Restricted Cash, end of period | $ | 86,343 | $ | — | $ | — | $ | — | $ | 86,343 | |||||||
Non-cash investing and financing activities: | |||||||||||||||||
Equity financing fees accrued | $ | 3,602 | $ | — | $ | — | $ | — | $ | 3,602 | |||||||
Common shares issued to preferred shareholders | 56,502 | — | — | — | 56,502 | ||||||||||||
Equity financing fees settled in common shares | 1,863 | — | — | — | 1,863 | ||||||||||||
Common shares issued to warrant holders | 10,663 | — | — | — | 10,663 | ||||||||||||
Common shares issued to option holders pursuant to the Cancellation Agreements | 1,072 | — | — | — | 1,072 | ||||||||||||
Sponsor shares distributed to lender under Backstop Agreement | 683 | — | — | — | 683 | ||||||||||||
Supplemental cash flow information: | |||||||||||||||||
Interest paid | $ | 19,874 | $ | — | $ | — | $ | — | $ | 19,874 | |||||||
Taxes paid (net of refunds) | 957 | — | — | — | 957 |
Years Ended | ||||||||||||||
(In thousands, USD) | December 31, 2022 | December 31, 2021 | ||||||||||||
IoT Connectivity* | $ | 173,162 | $ | 164,610 | ||||||||||
Hardware Sales | 69,091 | 54,898 | ||||||||||||
Hardware Sales - bill-and-hold | 10,736 | 5,357 | ||||||||||||
Deployment services, professional services, referral services, and other | 15,458 | 23,570 | ||||||||||||
Total | $ | 268,447 | $ | 248,435 |
Year ended December 31, | ||||||||||||
(in ‘000) | 2021 | 2020 | 2019 | |||||||||
Connectivity* | $ | 164,392 | $ | 152,996 | $ | 147,927 | ||||||
Hardware Sales | 54,898 | 29,601 | 8,767 | |||||||||
Hardware Sales - bill-and-hold | 5,357 | 11,314 | 960 | |||||||||
Deployment services, professional services, and other | 23,570 | 19,849 | 11,498 | |||||||||
Total | $ | 248,217 | $ | 213,760 | $ | 169,152 |
Shares | Percentage | ||||||||||
Pre-combination KORE shareholders | 38,767,500 | 54.0 | % | ||||||||
Public stockholders | 10,356,593 | 14.4 | % | ||||||||
Private offering and merger financing | 22,686,326 | 31.6 | % | ||||||||
Total | 71,810,419 | 100.0 | % |
Shares | Percentage | |||||||
Pre-combination KORE shareholders | 38,767,500 | 54.0 | % | |||||
Public stockholders | 10,356,593 | 14.4 | % | |||||
Private offering and merger financing | 22,686,326 | 31.6 | % | |||||
Total | 71,810,419 | 100.0 | % | |||||
(In thousands, USD, except share amounts) | Fair Value | ||||
Cash, (net of closing cash of $1,995) and working capital adjustments | $ | 46,002 | |||
Fair value of KORE Common Stock issued to sellers (4,212,246 shares) | 23,295 | ||||
Total consideration | $ | 69,297 | |||
Assets acquired: | |||||
Accounts receivable | 3,303 | ||||
Inventories | 1,323 | ||||
Prepaid expenses and other receivables | 976 | ||||
Property and equipment | 201 | ||||
Intangible assets | 28,664 | ||||
Total Assets acquired | 34,467 | ||||
Liabilities assumed: | |||||
Deferred tax liabilities | 7,391 | ||||
Accounts payable and accrued liabilities | 2,638 | ||||
Liabilities assumed | 10,029 | ||||
Net identifiable assets acquired | 24,438 | ||||
Goodwill (excess of consideration transferred over net identifiable assets acquired) | $ | 44,859 |
(in ‘000) | Amount | |||
Cash paid to sellers | $ | 37,500 | ||
Common stock issued to sellers | 7,000 | |||
Total consideration | $ | 44,500 | ||
Cash | 12 | |||
Accounts receivable | 7,776 | |||
Inventories | 489 | |||
Prepaid expenses and other receivables | 341 | |||
Property and equipment | 458 | |||
Identifiable intangible assets | 32,000 | |||
Deferred tax liabilities | (1,285 | ) | ||
Accounts payable and accrued liabilities | (1,818 | ) | ||
Net identifiable assets acquired | 37,973 | |||
Goodwill (excess of consideration transferred over net identifiable assets acquired) | $ | 6,527 | ||
Years Ended | ||||||||||||||
(In thousands, USD) | December 31, 2022 | December 31, 2021 | ||||||||||||
Net Revenue | $ | 274,179 | $ | 278,601 | ||||||||||
Net Loss | 104,483 | 22,415 |
Years Ended | |||||||||||
(In thousands, USD) | December 31, 2022 | December 31, 2021 | |||||||||
Accounts receivable | $ | 46,067 | 53,415 | ||||||||
Allowance for doubtful accounts | (559) | (532) | |||||||||
Allowance for credit provisions* | (970) | (1,268) | |||||||||
Accounts receivable, net | $ | 44,538 | $ | 51,615 |
Years Ended | |||||||||||
(In thousands, USD) | December 31, 2022 | December 31, 2021 | |||||||||
Prepaid expenses | 8,362 | 6,333 | |||||||||
Other current assets | 5,122 | 1,030 | |||||||||
Total Prepaid expenses and other current assets | $ | 13,484 | $ | 7,363 |
Years Ended | |||||||||||
(In thousands, USD) | December 31, 2022 | December 31, 2021 | |||||||||
Computer hardware | $ | 17,684 | $ | 15,747 | |||||||
Computer software | 9,547 | 9,023 | |||||||||
Furniture and fixtures | 2,550 | 2,242 | |||||||||
Networking equipment | 7,715 | 8,089 | |||||||||
Leasehold improvements | 3,017 | 2,793 | |||||||||
Total property and equipment | 40,513 | 37,894 | |||||||||
Less: accumulated depreciation | (28,614) | (25,654) | |||||||||
Property and equipment (net) | $ | 11,899 | $ | 12,240 |
Years Ended | |||||||||||
(In thousands, USD) | December 31, 2022 | December 31, 2021 | |||||||||
Accrued payroll and related | $ | 4,804 | $ | 13,103 | |||||||
Accrued cost of revenue | 4,091 | 1,886 | |||||||||
Accrued other expenses | 3,970 | 5,552 | |||||||||
Sales and other taxes payable | 2,813 | 1,621 | |||||||||
Finance Lease Obligation | 115 | 191 | |||||||||
Total accrued liabilities | $ | 15,793 | $ | 22,353 |
(in ‘000) | December 31, 2021 | December 31, 2020 | ||||||
Computer hardware | $ | 15,747 | $ | 13,634 | ||||
Computer software | 9,023 | 8,211 | ||||||
Furniture and fixtures | 2,242 | 2,284 | ||||||
Networking equipment | 8,089 | 8,151 | ||||||
Leasehold improvements | 2,793 | 2,803 | ||||||
Total property and equipment | 37,894 | 35,083 | ||||||
Less: accumulated depreciation | (25,654 | ) | (21,374 | ) | ||||
Property and equipment (net) | $ | 12,240 | $ | 13,709 | ||||
(In thousands, USD) | Classification in Statement of operations | December 31, 2022 | |||||||||||||||
Operating lease cost | Selling, general and administrative | $ | 3,531 | ||||||||||||||
Finance lease cost | |||||||||||||||||
Amortization of leased assets | Depreciation and amortization | $ | 350 | ||||||||||||||
Interest on lease liabilities | Interest expense | 17 | |||||||||||||||
Total finance lease cost | $ | 367 |
(In thousands, USD) | December 31, 2022 | |||||||
Assets | ||||||||
Finance lease right-of-use assets included in property and equipment, net | $ | 250 | ||||||
Liabilities | ||||||||
Current portion of finance lease liabilities included in accrued liabilities | $ | 115 | ||||||
Non-current portion of finance lease liabilities included in other long-term liabilities | 135 | |||||||
Total finance lease liabilities | $ | 250 |
December 31, 2022 | ||||||||
Weighted average remaining lease term (in years) | ||||||||
Operating leases | 7.71 years | |||||||
Finance leases | 2.05 years | |||||||
Weighted average discount rate: | ||||||||
Operating leases | 7.6 | % | ||||||
Finance leases | 5.5 | % |
Operating Leases | Finance Leases | |||||||||||||
(In thousands, USD) | Amount | Amount | ||||||||||||
2023 | $ | 2,532 | $ | 128 | ||||||||||
2024 | 1,877 | 113 | ||||||||||||
2025 | 1,662 | 24 | ||||||||||||
2026 | 1,370 | — | ||||||||||||
2027 | 1,385 | — | ||||||||||||
Thereafter | 6,220 | — | ||||||||||||
Total minimum lease payments | 15,046 | 265 | ||||||||||||
Interest expense | (3,960) | (15) | ||||||||||||
Total | 11,086 | 250 |
(In thousands, USD) | Amount | ||||
December 31, 2020 | $ | 384,202 | |||
Currency translation | (787) | ||||
December 31, 2021 | $ | 383,415 | |||
Acquisition | 44,859 | ||||
Impairment | (58,074) | ||||
Currency translation | (494) | ||||
December 31, 2022 | $ | 369,706 |
(in ‘000) | Amount | |||
December 31, 2019 | $ | 382,247 | ||
Measurement period adjustment — Integron | (366 | ) | ||
Currency translation | 868 | |||
December 31, 2020 | $ | 382,749 | ||
Currency translation | (787 | ) | ||
December 31, 2021 | $ | 381,962 | ||
(In thousands, USD) | Carrying Gross Amount | Accumulated Amortization | Net Carrying Value | ||||||||||||||
Customer relationships | $ | 327,317 | $ | (197,483) | $ | 129,834 | |||||||||||
Technology | 46,978 | (42,348) | 4,630 | ||||||||||||||
Carrier contracts | 70,210 | (47,483) | 22,727 | ||||||||||||||
Trademarks | 16,214 | (11,060) | 5,154 | ||||||||||||||
Internally developed computer software | 72,063 | (41,904) | 30,159 | ||||||||||||||
Total as of December 31, 2022 | $ | 532,782 | $ | (340,278) | $ | 192,504 |
(In thousands, USD) | Carrying Gross Amount | Accumulated Amortization | Net Carrying Value | ||||||||||||||
Customer relationships | $ | 305,648 | $ | (168,519) | $ | 137,129 | |||||||||||
Technology | 45,983 | (37,529) | 8,454 | ||||||||||||||
Carrier contracts | 65,700 | (40,488) | 25,212 | ||||||||||||||
Trademarks | 15,733 | (9,221) | 6,512 | ||||||||||||||
Internally developed computer software | 59,906 | (34,663) | 25,243 | ||||||||||||||
Total as of December 31, 2021 | $ | 492,970 | $ | (290,420) | $ | 202,550 |
(in ‘000) | Carrying Gross Amount | Accumulated Amortization | Net Carrying Value | |||||||||
Customer relationships | $ | 306,732 | $ | (168,679 | ) | $ | 138,053 | |||||
Technology | 45,983 | (37,529 | ) | 8,454 | ||||||||
Carrier contracts | 65,700 | (40,488 | ) | 25,212 | ||||||||
Trademarks | 15,733 | (9,221 | ) | 6,512 | ||||||||
Internally developed computer software | 59,906 | (34,663 | ) | 25,243 | ||||||||
Total as of December 31, 2021 | $ | 494,054 | $ | (290,580 | ) | $ | 203,474 | |||||
(in ‘000) | Carrying Gross Amount | Accumulated Amortization | Net Carrying Value | |||||||||
Customer relationships | $ | 307,356 | $ | (143,230 | ) | $ | 164,126 | |||||
Technology | 46,229 | (33,394 | ) | 12,835 | ||||||||
Carrier contracts | 65,700 | (33,918 | ) | 31,782 | ||||||||
Trademarks | 15,828 | (7,608 | ) | 8,220 | ||||||||
Internally developed computer software | 45,148 | (21,908 | ) | 23,240 | ||||||||
Total as of December 31, 2020 | $ | 480,261 | $ | (240,058 | ) | $ | 240,203 | |||||
Years | ||||||||
Customer relationships | 5.0 | |||||||
Technology | 2.6 | |||||||
Carrier contracts | 3.6 | |||||||
Trademarks | 4.3 | |||||||
Internally developed computer software | 4.2 |
(In thousands, USD) | Amount | ||||
2023 | $ | 49,657 | |||
2024 | 45,932 | ||||
2025 | 43,206 | ||||
2026 | 28,607 | ||||
2027 | 9,645 | ||||
Thereafter | 15,457 | ||||
Total | $ | 192,504 |
Amount | ||||
2022 | $ | 46,788 | ||
2023 | 43,223 | |||
2024 | 39,132 | |||
2025 | 36,359 | |||
2026 | 22,350 | |||
Thereafter | 15,622 | |||
Total | $ | 203,474 | ||
(in ‘000) | December 31, 2021 | December 31, 2020 | ||||||
Accrued payroll and related | $ | 13,103 | $ | 10,657 | ||||
Accrued cost of revenue | 1,641 | 2,142 | ||||||
Accrued other expenses | 5,198 | 3,845 | ||||||
Sales and other taxes payable | 1,369 | 565 | ||||||
Total accrued liabilities | $ | 21,311 | $ | 17,209 | ||||
(In thousands, USD) | December 31, 2022 | December 31, 2021 | |||||||||
Term Loan – UBS | $ | 302,654 | $ | 305,807 | |||||||
Notes under the Backstop Agreement | 120,000 | 120,000 | |||||||||
Other Borrowings | 2,754 | 173 | |||||||||
Total | 425,408 | 425,980 | |||||||||
Less—current portion | (5,345) | (3,326) | |||||||||
Less—equity component, net of accumulated amortization | — | (15,517) | |||||||||
Less—debt issuance cost, net of accumulated amortization of $8.5 million and $6.1 million, respectively | (6,153) | (8,022) | |||||||||
Total Long-term debt and other borrowings | 413,910 | 399,115 |
(in ‘000) | December 31, 2021 | December 31, 2020 | ||||||
Term Loan – UBS | $ | 305,807 | $ | 308,959 | ||||
Term Loan – BNP Paribas | 0 | 9 | ||||||
Notes under the Backstop Agreement | 120,000 | — | ||||||
Other Borrowings | 173 | — | ||||||
Total | 425,980 | 308,968 | ||||||
Less — current portion | 3,326 | 3,161 | ||||||
Less — equity component, net of accumulated amortization | 15,517 | 0 | ||||||
Less—debt issuance cost, net of accumulated amortization of $6.1 million and $3.7 million, respectively | 8,022 | 7,403 | ||||||
Total notes and debentures | 399,115 | 298,404 | ||||||
Other Borrowings—Notes payable | 0 | 0 | ||||||
Total Long-term debt and other borrowings | $ | 399,115 | $ | 298,404 | ||||
(In thousands, USD) | Amount | ||||
2023 | $ | 5,345 | |||
2024 | 300,063 | ||||
2025 | — | ||||
2026 | — | ||||
2027 | — | ||||
Thereafter | 120,000 | ||||
Total | $ | 425,408 |
(in ‘000) | Amount | |||
2022 | $ | 3,326 | ||
2023 | 3,153 | |||
2024 | 299,501 | |||
2025 | 0 | |||
2026 | 0 | |||
Thereafter | 120,000 | |||
Total | $ | 425,980 | ||
Years Ended | ||||||||||||||
(In thousands, USD) | December 31, 2022 | December 31, 2021 | ||||||||||||
United States | $ | (92,021) | $ | (12,184) | ||||||||||
Foreign | (24,596) | (21,368) | ||||||||||||
Total loss before income taxes | $ | (116,617) | $ | (33,552) |
For the Years Ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
(in thousands) | ||||||||||||
United States | $ | (13,326 | ) | $ | (25,283 | ) | $ | (27,728 | ) | |||
Foreign | (20,821 | ) | (15,236 | ) | (8,656 | ) | ||||||
Total loss before income taxes | $ | (34,147 | ) | $ | (40,519 | ) | $ | (36,384 | ) | |||
Years Ended | ||||||||||||||
(In thousands, USD) | December 31, 2022 | December 31, 2021 | ||||||||||||
Current: | ||||||||||||||
Federal | $ | 4,309 | $ | 782 | ||||||||||
State | 905 | 442 | ||||||||||||
Foreign | 558 | (309) | ||||||||||||
Total current provision | 5,772 | 915 | ||||||||||||
Deferred: | ||||||||||||||
Federal | (9,336) | (6,478) | ||||||||||||
State | (4,455) | (748) | ||||||||||||
Foreign | (2,398) | (2,465) | ||||||||||||
Total deferred benefit | (16,189) | (9,691) | ||||||||||||
Total income tax benefit | $ | (10,417) | $ | (8,776) |
For the Years Ended December 31, | ||||||||||||
2021 | 2020 | 2019 | ||||||||||
Current: | (in thousands) | |||||||||||
Federal | $ | — | $ | 0 | $ | (1,136 | ) | |||||
State | 420 | 546 | (44 | ) | ||||||||
Foreign | (243 | ) | 505 | (270 | ) | |||||||
Total current provision (benefit) | 177 | 1,051 | (1,450 | ) | ||||||||
Deferred: | ||||||||||||
Federal | (6,213 | ) | (7,120 | ) | (8,626 | ) | ||||||
State | (784 | ) | 2,285 | (2,117 | ) | |||||||
Foreign | (2,874 | ) | (1,534 | ) | (748 | ) | ||||||
Total deferred benefit | (9,871 | ) | (6,369 | ) | (11,491 | ) | ||||||
Total benefit | $ | (9,694 | ) | $ | (5,318 | ) | $ | (12,941 | ) | |||
Years Ended | |||||||||||||||||||||||
(In thousands, USD) | December 31, 2022 | December 31, 2021 | |||||||||||||||||||||
Benefit for income taxes at 21% rate | $ | (24,490) | 21.0 | % | $ | (7,045) | 21.0 | % | |||||||||||||||
State taxes, net of federal benefit | (1,358) | 1.2 | % | (1,147) | 3.4 | % | |||||||||||||||||
Change in valuation allowance | 10,628 | -9.1 | % | (642) | 1.9 | % | |||||||||||||||||
Rate change | (1,687) | 1.4 | % | 774 | -2.3 | % | |||||||||||||||||
Credits | (604) | 0.5 | % | (602) | 1.8 | % | |||||||||||||||||
Permanent differences and other | (2,712) | 2.2 | % | 2,852 | -8.5 | % | |||||||||||||||||
Revaluation of warrants | (53) | 0.0 | % | (1,106) | 3.3 | % | |||||||||||||||||
Uncertain tax positions | 591 | -0.5 | % | 544 | -1.6 | % | |||||||||||||||||
Foreign withholding tax | 134 | -0.1 | % | 116 | -0.3 | % | |||||||||||||||||
Foreign rate differential | (2,120) | 1.8 | % | (2,587) | 7.7 | % | |||||||||||||||||
Executive compensation expense | 872 | -0.7 | % | 1,517 | -4.5 | % | |||||||||||||||||
Transaction related expense | 210 | -0.2 | % | (1,450) | 4.3 | % | |||||||||||||||||
Global intangible low taxed income | 283 | -0.2 | % | — | 0.0 | % | |||||||||||||||||
Foreign derived intangible income | (311) | 0.3 | % | — | 0.0 | % | |||||||||||||||||
Goodwill impairment | 10,200 | -8.7 | % | — | 0.0 | % | |||||||||||||||||
Benefit for income taxes | $ | (10,417) | 8.9 | % | $ | (8,776) | 26.2 | % |
For the Years Ended December 31, | ||||||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Benefit for income taxes at 21% rate | $ | (7,171 | ) | 21.0 | % | $ | (8,509 | ) | 21.0 | % | $ | (7,641 | ) | 21.0 | % | |||||||||
State taxes, net of federal benefit | (1,227 | ) | 3.5 | % | (947 | ) | 2.3 | % | (2,161 | ) | 6.0 | % | ||||||||||||
Change in valuation allowance | 975 | -2.9 | % | 1,016 | -2.5 | % | 0 | 0.0 | % | |||||||||||||||
Rate change | 775 | -2.3 | % | 2,856 | -7.0 | % | 0 | 0.0 | % | |||||||||||||||
Credits | (602 | ) | 1.8 | % | (811 | ) | 2.0 | % | (541 | ) | 1.5 | % | ||||||||||||
Permanent differences and other | 47 | -0.1 | % | 307 | -0.8 | % | (41 | ) | 0.1 | % | ||||||||||||||
Revaluation of warrants | (1,106 | ) | 3.2 | % | 1,572 | -3.9 | % | (49 | ) | 0.1 | % | |||||||||||||
Uncertain tax positions | 9 | 0.0 | % | 226 | -0.6 | % | (984 | ) | 2.7 | % | ||||||||||||||
Foreign withholding tax | 116 | -0.3 | % | 420 | -1.0 | % | 0 | 0.0 | % | |||||||||||||||
Foreign rate differential | (1,573 | ) | 4.6 | % | (1,448 | ) | 3.6 | % | (1,524 | ) | 4.2 | % | ||||||||||||
Executive compensation expense | 1,517 | -4.4 | % | 0 | 0.0 | % | 0 | 0.0 | % | |||||||||||||||
Transaction related expense | (1,454 | ) | 4.3 | % | 0 | 0.0 | % | 0 | 0.0 | % | ||||||||||||||
Benefit for income taxes | $ | (9,694 | ) | 28.4 | % | $ | (5,318 | ) | 13.1 | % | $ | (12,941 | ) | 35.6 | % | |||||||||
Years Ended | |||||||||||
(In thousands, USD) | December 31, 2022 | December 31, 2021 | |||||||||
Deferred tax assets: | |||||||||||
Net operating loss carry-forward | $ | 13,617 | $ | 7,504 | |||||||
Credit carry-forward | 1,386 | 1,956 | |||||||||
Interest expense limitation carry-forward | 15,844 | 12,053 | |||||||||
Non-deductible reserves | 339 | 374 | |||||||||
Accruals and other temporary differences | 2,835 | 1,288 | |||||||||
Stock compensation | 1,164 | — | |||||||||
Lease liability | 2,780 | — | |||||||||
Property and equipment | 1,007 | 1,018 | |||||||||
Gross deferred tax assets | 38,972 | 24,193 | |||||||||
Less Valuation allowance | (16,177) | (5,750) | |||||||||
Total deferred tax assets (after valuation allowance) | 22,795 | 18,443 | |||||||||
Deferred tax liabilities: | |||||||||||
Property and equipment | (1,738) | (4,151) | |||||||||
Intangible assets | (33,117) | (40,771) | |||||||||
Goodwill | (5,914) | (7,474) | |||||||||
Debt Discount | — | (3,972) | |||||||||
Accounting method change | (1,378) | — | |||||||||
Right of use asset | (2,514) | — | |||||||||
Research and development costs | (3,327) | — | |||||||||
Total deferred tax liabilities | $ | (47,988) | $ | (56,368) | |||||||
Net deferred tax liabilities | $ | (25,193) | $ | (37,925) |
As of December 31, | ||||||||
2021 | 2020 | |||||||
(in thousands) | ||||||||
Deferred tax assets: | ||||||||
Net operating loss carry-forward | $ | 11,081 | $ | 10,604 | ||||
Credit carry-forward | 2,802 | 2,468 | ||||||
Interest expense limitation carry-forward | 10,997 | 7,811 | ||||||
Non-deductible reserves | 374 | 520 | ||||||
Accruals and other temporary differences | 1,046 | 1,047 | ||||||
Stock compensation | 0 | 698 | ||||||
Property and equipment | 1,018 | 1,089 | ||||||
Gross deferred tax assets | 27,318 | 24,237 | ||||||
Less Valuation allowance | (7,731 | ) | (7,164 | ) | ||||
Total deferred tax assets (after valuation allowance) | 19,587 | 17,073 | ||||||
Deferred tax liabilities: | ||||||||
Property and equipment | (4,151 | ) | (4,089 | ) | ||||
Intangible assets | (40,754 | ) | (49,461 | ) | ||||
Goodwill | (7,432 | ) | (6,241 | ) | ||||
Debt discount | (3,972 | ) | — | |||||
Total deferred tax liabilities | (56,309 | ) | (59,791 | ) | ||||
Net deferred tax liabilities | $ | (36,722 | ) | $ | (42,718 | ) | ||
Years Ended | |||||||||||
(In thousands, USD) | December 31, 2022 | December 31, 2021 | |||||||||
Unrecognized tax benefits at the beginning of the year | $ | 8,132 | $ | 7,690 | |||||||
Additions for tax positions of current year | 442 | 442 | |||||||||
Unrecognized tax benefits at the end of the year | $ | 8,574 | $ | 8,132 |
For the Year s Ended December 31, | ||||||||
2021 | 2020 | |||||||
(in thousands) | ||||||||
Unrecognized tax benefits at the beginning of the year | $ | 3,867 | $ | 3,658 | ||||
Additions for tax positions of current year | — | — | ||||||
Additions for tax positions of prior years | 0 | 209 | ||||||
Reductions for tax positions of prior years | — | — | ||||||
Expirations statutes of limitation | — | — | ||||||
Unrecognized tax benefits at the end of the year | $ | 3,867 | $ | 3,867 |
(in ‘000) | Amount | |||
2022 | $ | 2,924 | ||
2023 | 1,904 | |||
2024 | 1,495 | |||
2025 | 1,170 | |||
2026 | 958 | |||
Thereafter | 3,412 | |||
Total | $ | 11,863 | ||
(in ‘000) | Amount | |||
2022 | $ | 207 | ||
2023 | 143 | |||
2024 | 119 | |||
2025 | 26 | |||
2026 | 0 | |||
Total minimum lease payments | $ | 495 | ||
Interest expense | (40 | ) | ||
Total | $ | 455 | ||
(In thousands, USD) | Amount | ||||
2023 | $ | 29,012 | |||
2024 | 5,808 | ||||
2025 | 7,590 | ||||
2026 | 4,505 | ||||
2027 | 4,773 | ||||
Thereafter | 5,000 | ||||
Total | $ | 56,688 |
(In thousands, USD) | Amount | ||||
2022 | $ | 2,924 | |||
2023 | 1,904 | ||||
2024 | 1,495 | ||||
2025 | 1,170 | ||||
2026 | 958 | ||||
Thereafter | 3,412 | ||||
Total | $ | 11,863 |
(in ‘000) | Amount | |||
2022 | $ | 21,144 | ||
2023 | 9,446 | |||
2024 | 1,245 | |||
2025 | 1,245 | |||
2026 | 0 | |||
Thereafter | 0 | |||
Total | $ | 33,080 | ||
(In thousands, USD) | Amount | ||||
2022 | $ | 207 | |||
2023 | 143 | ||||
2024 | 119 | ||||
2025 | 26 | ||||
2026 | — | ||||
Total minimum lease payments | $ | 495 | |||
Interest expense | (40) | ||||
Total | $ | 455 |
(in ‘000) | December 31, 2021 | December 31, 2020 | ||||||
Prepaid deposits | $ | 1,030 | $ | 1,734 | ||||
Prepaid expenses | 6,418 | 3,695 | ||||||
Other receivables | 0 | 0 | ||||||
Total Prepaid expenses and other receivables | $ | 7,448 | $ | 5,429 | ||||
Amount (in ‘000) | Series A | Series A-1 | Series B | |||||||||
Accumulated and unpaid, December 31, 2019 | $ | 25,610 | $ | 8,794 | $ | 25,338 | ||||||
Accumulated | 9,202 | 9,814 | 8,572 | |||||||||
Distributed | 0 | 0 | 0 | |||||||||
Accumulated and unpaid, December 31, 2020 | $ | 34,812 | $ | 18,608 | $ | 33,910 | ||||||
Accumulated | 7,656 | 8,241 | 6,925 | |||||||||
Distributed | (42,468 | ) | (26,849 | ) | (40,835 | ) | ||||||
Accumulated and unpaid, December 31, 2021 | $ | 0 | $ | 0 | $ | 0 | ||||||
Number of Options | Weighted Average Grant Date Fair Value per Option (Amount) | Weighted Average Exercise Price (Amount) | Weighted Average Remaining Contractual Term (Years) | |||||||||||||
Balance, December 31, 2018 | 414,434 | $ | 15.80 | $ | 141.53 | 9.3 | ||||||||||
Granted | 52,083 | 15.91 | 141.53 | |||||||||||||
Exercised | — | — | — | |||||||||||||
Forfeited | (67,366 | ) | 15.80 | 141.53 | ||||||||||||
Expired | — | — | — | |||||||||||||
Balance, December 31, 2019 | 399,151 | $ | 15.82 | 141.53 | 8.4 | |||||||||||
Granted | 64,064 | 13.50 | 141.53 | |||||||||||||
Exercised | — | — | — | |||||||||||||
Forfeited | (30,715 | ) | 15.80 | 141.53 | ||||||||||||
Expired | — | — | — | |||||||||||||
Balance, December 31, 2020 | 432,500 | $ | 15.45 | $ | 141.53 | 7.7 | ||||||||||
Granted | — | — | — | |||||||||||||
Exercised | — | — | — | |||||||||||||
Forfeited | — | — | — | |||||||||||||
Expired | — | — | — | |||||||||||||
Cancelled | (432,500 | ) | (15.45 | ) | (141.53 | ) | (7.7 | ) | ||||||||
Balance, December 31, 2021 | 0 | $ | 0 | $ | 0 | — | ||||||||||
(in ‘000) | December 31, 2021 | December 31, 2020 | ||||||
Total Stock Compensation Expense | $ | 4,564 | $ | 1,161 | ||||
Unrecognized Compensation Cost | 0 | 3,416 | ||||||
Remaining recognition period (in years) | — | 2.7 |
December 31, 2021 | December 31, 2020 | |||||||
Range of Exercise Prices | 0 | $ | 80.87 -$202.18 | |||||
Number | 0 | 153,898 | ||||||
Weighted Average Remaining Contractual Term (in years) | — | 7.3 | ||||||
Weighted Average Exercise Price | $ | 0 | $ | 141.53 |
Number of awards outstanding (in thousands) | Weighted- average grant date fair value (per share) | Aggregate intrinsic value (in thousands) | ||||||||||||||||||
Unvested RSUs at December 31, 2021 | — | — | — | |||||||||||||||||
Granted | 5,789 | $ | 6.24 | $ | 36,101 | |||||||||||||||
Vested | (52) | 6.88 | (362) | |||||||||||||||||
Forfeited and canceled | (222) | 6.97 | (1,548) | |||||||||||||||||
Unvested RSUs at December 31, 2022 | 5,515 | $ | 34,191 |
Year Ended | |||||||||||
December 31, 2022 | |||||||||||
Expected volatility | 57.1%-75.2% | ||||||||||
Risk-free interest rate | 1.4%-2.1% | ||||||||||
Expected term (in years) | 5 - 80 | ||||||||||
Years Ended | |||||||||||
(In thousands, USD) | December 31, 2022 | December 31, 2021 | |||||||||
Total Stock Compensation Expense | $ | 10,296 | $ | 4,564 | |||||||
Unrecognized Compensation Cost | 24,272 | — | |||||||||
Remaining recognition period (in years) | 2.6 | — |
Number of Options | Weighted Average Grant Date Fair Value per Option (Amount) | Weighted Average Exercise Price (Amount) | Weighted Average Remaining Contractual Term (Years) | ||||||||||||||||||||
Balance, December 31, 2020 | 432,500 | $ | 15.45 | $ | 141.53 | 7.7 | |||||||||||||||||
Granted | — | — | — | ||||||||||||||||||||
Exercised | — | — | — | ||||||||||||||||||||
Forfeited | — | — | — | ||||||||||||||||||||
Expired | — | — | — | ||||||||||||||||||||
Cancelled | (432,500) | (15.45) | (141.53) | 7.7 | |||||||||||||||||||
Balance, December 31, 2021 | — | $ | — | $ | — | — |
(In thousands, USD) | December 31, 2022 | December 31, 2021 | ||||||||||||
Numerator: | ||||||||||||||
Net loss attributable to the Company | $ | (106,200) | $ | (24,776) | ||||||||||
Less cumulative earnings to preferred shareholder | — | (22,822) | ||||||||||||
Add premium on preferred conversion to common shares | — | 4,074 | ||||||||||||
Net income (loss) attributable to common stockholders | $ | (106,200) | $ | (43,524) | ||||||||||
Denominator: | ||||||||||||||
Weighted average common shares and warrants outstanding | ||||||||||||||
Basic (in number) | 75,710,904 | 41,933,050 | ||||||||||||
Diluted (in number) | 75,710,904 | 41,933,050 | ||||||||||||
Net loss per unit attributable to common stockholder | ||||||||||||||
Basic | $ | (1.40) | $ | (1.04) | ||||||||||
Diluted | $ | (1.40) | $ | (1.04) |
(in ‘000) | December 31, 2021 | December 31, 2020 | December 31, 2019 | |||||||||
Numerator: | ||||||||||||
Net loss attributable to the Company | $ | (24,453 | ) $ | (35,201 | ) $ | (23,443 | ) | |||||
Less cumulative earnings to preferred | (22,822 | ) | (26,900 | ) | (21,647 | ) | ||||||
Add premium on preferred conversion to common shares | 4,074 | — | — | |||||||||
Net income (loss) attributable to common stockholders | (43,201 | ) | (62,101 | ) | (45,090 | ) | ||||||
Denominator: | ||||||||||||
Weighted average common shares and warrants outstanding | ||||||||||||
Basic (in number) | 41,933,050 | 31,650,173 | 31,169,435 | |||||||||
Diluted (in number) | 41,933,050 | 31,650,173 | 31,169,435 | |||||||||
Net loss per unit attributable to common stockholder | ||||||||||||
Basic | $ | (1.03 | ) | $ | (1.96 | ) | $ | (1.45 | ) | |||
Diluted | $ | (1.03 | ) | $ | (1.96 | ) | $ | (1.45 | ) |
(number of shares) | December 31, 2022 | December 31, 2021 | |||||||||||||||
Restricted stock grants with only service conditions | 3,552,416 | — | |||||||||||||||
Common stock issued under the Backstop Agreement | 9,600,031 | 9,600,031 | |||||||||||||||
Private Placement Warrants | 272,779 | 272,779 | |||||||||||||||
Series C Convertible Preferred Stock | — | 2,566,186 | |||||||||||||||
Stock Options | — | 432,500 |
For the years ended (number of shares) | December 31, 2021 | December 31, 2020 | December 31, 2019 | |||||||||
Series C Convertible Preferred Stock | 2,566,186 | 2,566,186 | 2,566,186 | |||||||||
Stock Options | 432,500 | 432,500 | 399,151 | |||||||||
Common stock issued under the Backstop Agreement | 9,600,031 | — | — |
(in ‘000) | December 31, 2021 | December 31, 2020 | ||||||
Interfusion B.V. | 0 | 985 | ||||||
T-Fone B.V. | 0 | 630 |
March 31, 2022 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||
Assets | |||||||||||||||||
Current assets | |||||||||||||||||
Cash | $ | 31,914 | $ | — | $ | — | $ | — | $ | 31,914 | |||||||
Accounts receivable, net | 57,073 | — | — | 366 | 57,439 | ||||||||||||
Inventories, net | 12,069 | — | — | (280) | 11,789 | ||||||||||||
Income taxes receivable | 1,239 | — | — | (14) | 1,225 | ||||||||||||
Prepaid expenses and other current assets | 7,660 | — | — | (386) | 7,274 | ||||||||||||
Total current assets | $ | 109,955 | $ | — | $ | — | $ | (314) | $ | 109,641 | |||||||
Non-current assets | |||||||||||||||||
Restricted cash | 370 | — | — | — | 370 | ||||||||||||
Property and equipment, net | 12,167 | — | — | — | 12,167 | ||||||||||||
Intangibles assets, net | 222,759 | — | — | (903) | 221,856 | ||||||||||||
Goodwill | 426,700 | — | — | 1,453 | 428,153 | ||||||||||||
Operating lease right-of-use assets | 9,050 | — | — | (485) | 8,565 | ||||||||||||
Other long-term assets | 401 | — | — | — | 401 | ||||||||||||
Total assets | $ | 781,402 | $ | — | $ | — | $ | (249) | $ | 781,153 | |||||||
Liabilities and stockholders’ equity | |||||||||||||||||
Current liabilities | |||||||||||||||||
Accounts payable | $ | 19,901 | $ | — | $ | — | $ | — | $ | 19,901 | |||||||
Accrued liabilities | 11,424 | — | — | 252 | 11,676 | ||||||||||||
Current portion of operating lease liabilities | 2,027 | — | — | (384) | 1,643 | ||||||||||||
Income taxes payable | 959 | — | — | (405) | 554 | ||||||||||||
Deferred revenue | 7,020 | — | — | — | 7,020 | ||||||||||||
Current portion of long-term debt and other borrowings, net | 3,206 | — | — | — | 3,206 | ||||||||||||
Total current liabilities | $ | 44,537 | $ | — | $ | — | $ | (537) | $ | 44,000 | |||||||
Non-current liabilities | |||||||||||||||||
Deferred tax liabilities | 36,443 | 1,627 | — | 126 | 38,196 | ||||||||||||
Warrant liability | 259 | — | — | — | 259 | ||||||||||||
Non-current portion of operating lease liabilities | 7,430 | — | — | — | 7,430 | ||||||||||||
Long-term debt and other borrowings, net | 414,026 | — | — | — | 414,026 | ||||||||||||
Other long-term liabilities | 3,624 | 2,112 | 1,335 | 313 | 7,384 | ||||||||||||
Total liabilities | $ | 506,319 | $ | 3,739 | $ | 1,335 | $ | (98) | $ | 511,295 | |||||||
Stockholders’ equity | |||||||||||||||||
Common stock | $ | 8 | $ | — | $ | — | $ | — | $ | 8 | |||||||
Additional paid-in capital | 427,377 | — | — | (331) | 427,046 | ||||||||||||
Accumulated other comprehensive loss | (3,515) | 15 | — | (86) | (3,586) | ||||||||||||
Accumulated deficit | (148,787) | (3,754) | (1,335) | 266 | (153,610) | ||||||||||||
Total stockholders’ equity | $ | 275,083 | $ | (3,739) | $ | (1,335) | $ | (151) | $ | 269,858 | |||||||
Total liabilities and stockholders’ equity | $ | 781,402 | $ | — | $ | — | $ | (249) | $ | 781,153 |
For the three months ended | |||||||||||||||||
March 31, 2022 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||
Revenue | |||||||||||||||||
Services | $ | 47,506 | $ | — | $ | — | $ | 37 | $ | 47,543 | |||||||
Products | 21,435 | — | — | — | 21,435 | ||||||||||||
Total revenue | 68,941 | — | — | 37 | 68,978 | ||||||||||||
Cost of revenue | |||||||||||||||||
Cost of services | 17,529 | — | — | 21 | 17,550 | ||||||||||||
Cost of products | 17,443 | — | — | 280 | 17,723 | ||||||||||||
Total cost of revenue (exclusive of depreciation and amortization shown separately below) | 34,972 | — | — | 301 | 35,273 | ||||||||||||
Operating expenses | |||||||||||||||||
Selling, general and administrative | 27,628 | — | 79 | 10 | 27,717 | ||||||||||||
Depreciation and amortization | 13,196 | — | — | (21) | 13,175 | ||||||||||||
Total operating expenses | 40,824 | — | 79 | (11) | 40,892 | ||||||||||||
Operating income (loss) | (6,855) | — | (79) | (253) | (7,187) | ||||||||||||
Interest expense, including amortization of deferred financing costs, net | 6,624 | — | — | — | 6,624 | ||||||||||||
Change in fair value of warrant liability | (27) | — | — | — | (27) | ||||||||||||
Loss before income taxes | (13,452) | — | (79) | (253) | (13,784) | ||||||||||||
Income tax expense (benefit) | (2,545) | 371 | — | (38) | (2,212) | ||||||||||||
Net loss | $ | (10,907) | $ | (371) | $ | (79) | $ | (215) | $ | (11,572) | |||||||
Loss per share: | |||||||||||||||||
Basic | $(0.15) | $(0.01) | $0.00 | $0.00 | $(0.16) | ||||||||||||
Diluted | $(0.15) | $(0.01) | $0.00 | $0.00 | $(0.16) | ||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||
Basic | 74,040,261 | — | — | — | 74,040,261 | ||||||||||||
Diluted | 74,040,261 | — | — | — | 74,040,261 |
For the three months ended | |||||||||||||||||
March 31, 2022 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||
Net loss | $ | (10,907) | $ | (371) | $ | (79) | $ | (215) | $ | (11,572) | |||||||
Other comprehensive loss: | |||||||||||||||||
Foreign currency translation adjustment | (184) | 61 | — | — | (123) | ||||||||||||
Comprehensive loss | $ | (11,091) | $ | (310) | $ | (79) | $ | (215) | $ | (11,695) |
Common Stock | Additional paid-in capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||
Shares | Amount | Amount | Amount | Amount | Amount | ||||||||||||||||||||||||||||||
As Reported | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 72,027,743 | $ | 7 | $ | 413,646 | $ | (3,331) | $ | (138,179) | $ | 272,143 | ||||||||||||||||||||||||
Opening balance sheet adjustment (as previously reported) | — | — | (11,613) | — | 299 | (11,314) | |||||||||||||||||||||||||||||
Balance at December 31, 2021 - Adjusted | 72,027,743 | 7 | 402,033 | (3,331) | (137,880) | 260,829 | |||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | (184) | — | (184) | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | 2,050 | — | — | 2,050 | |||||||||||||||||||||||||||||
Common stock issued pursuant to acquisition | 4,212,246 | 1 | 23,294 | — | — | 23,295 | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | (10,907) | (10,907) | |||||||||||||||||||||||||||||
Balance at March 31, 2022 | 76,239,989 | $ | 8 | $ | 427,377 | $ | (3,515) | $ | (148,787) | $ | 275,083 | ||||||||||||||||||||||||
Adjustments | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | — | — | (331) | (132) | (4,158) | (4,621) | |||||||||||||||||||||||||||||
March 31, 2022 | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | 61 | — | 61 | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | (665) | (665) | |||||||||||||||||||||||||||||
Total Adjustments - March 31, 2022 | — | $ | — | $ | (331) | $ | (71) | $ | (4,823) | $ | (5,225) | ||||||||||||||||||||||||
As Revised | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 72,027,743 | 7 | 413,315 | (3,463) | (142,337) | 267,522 | |||||||||||||||||||||||||||||
Opening balance sheet adjustment (as previously reported) | — | — | (11,613) | — | 299 | (11,314) | |||||||||||||||||||||||||||||
Balance at December 31, 2021 | 72,027,743 | 7 | 401,702 | (3,463) | (142,038) | 256,208 | |||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | (123) | — | (123) | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | 2,050 | — | — | 2,050 | |||||||||||||||||||||||||||||
Common stock issued pursuant to acquisition | 4,212,246 | 1 | 23,294 | — | — | 23,295 | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | (11,572) | (11,572) | |||||||||||||||||||||||||||||
Balance at March 31, 2022 | 76,239,989 | $ | 8 | $ | 427,046 | $ | (3,586) | $ | (153,610) | $ | 269,858 |
For the three months ended | |||||||||||||||||
March 31, 2022 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||
Cash flows from operating activities | |||||||||||||||||
Net loss | $ | (10,907) | $ | (371) | $ | (79) | $ | (215) | $ | (11,572) | |||||||
Adjustments to reconcile net loss to net cash used in operating activities | |||||||||||||||||
Depreciation and amortization | 13,196 | — | — | (21) | 13,175 | ||||||||||||
Amortization of deferred financing costs | 587 | — | — | — | 587 | ||||||||||||
Non-cash reduction to the operating lease right-of-use assets | 587 | — | — | — | 587 | ||||||||||||
Deferred income taxes | (3,851) | 196 | — | 359 | (3,296) | ||||||||||||
Non-cash foreign currency loss | (3) | — | — | — | (3) | ||||||||||||
Share-based compensation | 2,050 | — | — | — | 2,050 | ||||||||||||
Provision for doubtful accounts | 55 | — | — | — | 55 | ||||||||||||
Change in fair value of warrant liability | (27) | — | — | — | (27) | ||||||||||||
Change in operating assets and liabilities, net of operating assets and liabilities acquired: | |||||||||||||||||
Accounts receivable | (2,580) | — | — | (55) | (2,635) | ||||||||||||
Inventories | 4,714 | — | — | 280 | 4,994 | ||||||||||||
Prepaid expenses and other receivables | 806 | — | — | 785 | 1,591 | ||||||||||||
Accounts payable and accrued liabilities | (8,428) | 175 | 79 | (337) | (8,511) | ||||||||||||
Deferred revenue | 132 | — | — | — | 132 | ||||||||||||
Income taxes payable | 199 | — | — | (412) | (213) | ||||||||||||
Operating lease liabilities | (510) | — | — | (384) | (894) | ||||||||||||
Net cash used in operating activities | $ | (3,980) | $ | — | $ | — | $ | — | $ | (3,980) | |||||||
Net cash used in investing activities | $ | (48,503) | $ | — | $ | — | $ | — | $ | (48,503) | |||||||
Net cash used in financing activities | $ | (1,550) | $ | — | $ | — | $ | — | $ | (1,550) | |||||||
Effect of Exchange Rate Change on Cash and Restricted Cash | (26) | — | — | — | (26) | ||||||||||||
Change in Cash and Restricted Cash | (54,059) | — | — | — | (54,059) | ||||||||||||
Cash and Restricted Cash, beginning of period | 86,343 | — | — | — | 86,343 | ||||||||||||
Cash and Restricted Cash, end of period | $ | 32,284 | $ | — | $ | — | $ | — | $ | 32,284 | |||||||
June 30, 2022 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||
Assets | |||||||||||||||||
Current assets | |||||||||||||||||
Cash | $ | 40,441 | $ | — | $ | — | $ | — | $ | 40,441 | |||||||
Accounts receivable, net | 50,767 | — | — | 277 | 51,044 | ||||||||||||
Inventories, net | 9,897 | — | — | — | 9,897 | ||||||||||||
Income taxes receivable | 712 | — | — | 189 | 901 | ||||||||||||
Prepaid expenses and other receivables | 9,089 | — | — | (386) | 8,703 | ||||||||||||
Total current assets | 110,906 | — | — | 80 | 110,986 | ||||||||||||
Non-current assets | |||||||||||||||||
Restricted cash | 363 | — | — | — | 363 | ||||||||||||
Property and equipment, net | 11,890 | — | — | — | 11,890 | ||||||||||||
Intangibles assets, net | 211,829 | — | — | (883) | 210,946 | ||||||||||||
Goodwill | 426,126 | — | — | 1,453 | 427,579 | ||||||||||||
Operating lease right-of-use assets | 7,914 | — | — | 196 | 8,110 | ||||||||||||
Other long-term assets | 381 | — | — | — | 381 | ||||||||||||
Total assets | $ | 769,409 | $ | — | $ | — | $ | 846 | $ | 770,255 | |||||||
Liabilities and stockholders’ equity | |||||||||||||||||
Current liabilities | |||||||||||||||||
Accounts payable | $ | 19,288 | $ | — | $ | — | $ | — | $ | 19,288 | |||||||
Accrued liabilities | 15,348 | — | — | 312 | 15,660 | ||||||||||||
Current portion of operating lease liabilities | 1,764 | — | — | 212 | 1,976 | ||||||||||||
Income taxes payable | 502 | — | — | (502) | — | ||||||||||||
Deferred revenue | 7,698 | — | — | (684) | 7,014 | ||||||||||||
Current portion of long-term debt and other borrowings, net | 3,165 | — | — | — | 3,165 | ||||||||||||
Total current liabilities | 47,765 | — | — | (662) | 47,103 | ||||||||||||
Non-current liabilities | |||||||||||||||||
Deferred tax liabilities | 32,618 | 1,801 | — | 615 | 35,034 | ||||||||||||
Warrant liability | 153 | — | — | — | 153 | ||||||||||||
Non-current portion of operating lease liabilities | 6,852 | — | — | — | 6,852 | ||||||||||||
Long-term debt and other borrowings, net | 413,788 | — | — | — | 413,788 | ||||||||||||
Other long-term liabilities | 4,349 | 2,102 | 1,414 | 264 | 8,129 | ||||||||||||
Total liabilities | $ | 505,525 | $ | 3,903 | $ | 1,414 | $ | 217 | $ | 511,059 | |||||||
Stockholders’ equity | |||||||||||||||||
Common stock | $ | 8 | $ | — | $ | — | $ | — | $ | 8 | |||||||
Additional paid-in capital | 429,878 | — | — | (331) | 429,547 | ||||||||||||
Accumulated other comprehensive loss | (6,074) | 201 | — | (86) | (5,959) | ||||||||||||
Accumulated deficit | (159,928) | (4,104) | (1,414) | 1,046 | (164,400) | ||||||||||||
Total stockholders’ equity | $ | 263,884 | $ | (3,903) | $ | (1,414) | $ | 629 | $ | 259,196 | |||||||
Total liabilities and stockholders’ equity | $ | 769,409 | $ | — | $ | — | $ | 846 | $ | 770,255 | |||||||
For the three months ended | |||||||||||||||||
June 30, 2022 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||
Revenue | |||||||||||||||||
Services | $ | 47,778 | $ | — | $ | — | $ | 27 | $ | 47,805 | |||||||
Products | 22,575 | — | — | 541 | 23,116 | ||||||||||||
Total revenue | 70,353 | — | — | 568 | 70,921 | ||||||||||||
Cost of revenue | |||||||||||||||||
Cost of services | 16,577 | — | — | 33 | 16,610 | ||||||||||||
Cost of products | 17,298 | — | — | (280) | 17,018 | ||||||||||||
Total cost of revenue (exclusive of depreciation and amortization shown separately below) | 33,875 | — | — | (247) | 33,628 | ||||||||||||
Operating expenses | |||||||||||||||||
Selling, general and administrative | 29,413 | — | 79 | (85) | 29,407 | ||||||||||||
Depreciation and amortization | 13,774 | — | — | (21) | 13,753 | ||||||||||||
Total operating expenses | 43,187 | — | 79 | (106) | 43,160 | ||||||||||||
Operating income (loss) | (6,709) | — | (79) | 921 | (5,867) | ||||||||||||
Interest expense, including amortization of deferred financing costs, net | 7,297 | — | — | — | 7,297 | ||||||||||||
Change in fair value of warrant liability | (106) | — | — | — | (106) | ||||||||||||
Loss before income taxes | (13,900) | — | (79) | 921 | (13,058) | ||||||||||||
Income tax expense (benefit) | (2,759) | 350 | — | 141 | (2,268) | ||||||||||||
Net loss | $ | (11,141) | $ | (350) | $ | (79) | $ | 780 | $ | (10,790) | |||||||
Loss per share: | |||||||||||||||||
Basic | $(0.15) | $0.00 | $0.00 | $0.01 | $(0.14) | ||||||||||||
Diluted | $(0.15) | $0.00 | $0.00 | $0.01 | $(0.14) | ||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||
Basic | 76,239,989 | — | — | — | 76,239,989 | ||||||||||||
Diluted | 76,239,989 | — | — | — | 76,239,989 | ||||||||||||
For the six months ended | |||||||||||||||||
June 30, 2022 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||
Revenue | |||||||||||||||||
Services | $ | 95,284 | $ | — | $ | — | $ | 64 | $ | 95,348 | |||||||
Products | 44,010 | — | — | 541 | 44,551 | ||||||||||||
Total revenue | 139,294 | — | — | 605 | 139,899 | ||||||||||||
Cost of revenue | |||||||||||||||||
Cost of services | 34,105 | — | — | 54 | 34,159 | ||||||||||||
Cost of products | 34,741 | — | — | — | 34,741 | ||||||||||||
Total cost of revenue (exclusive of depreciation and amortization shown separately below) | 68,846 | — | — | 54 | 68,900 | ||||||||||||
Operating expenses | |||||||||||||||||
Selling, general and administrative | 57,042 | — | 158 | (75) | 57,125 | ||||||||||||
Depreciation and amortization | 26,970 | — | — | (42) | 26,928 | ||||||||||||
Total operating expenses | 84,012 | — | 158 | (117) | 84,053 | ||||||||||||
Operating income (loss) | (13,564) | — | (158) | 668 | (13,054) | ||||||||||||
Interest expense, including amortization of deferred financing costs, net | 13,921 | — | — | — | 13,921 | ||||||||||||
Change in fair value of warrant liability | (133) | — | — | — | (133) | ||||||||||||
Loss before income taxes | (27,352) | — | (158) | 668 | (26,842) | ||||||||||||
Income tax expense (benefit) | (5,304) | 721 | — | 103 | (4,480) | ||||||||||||
Net loss | $ | (22,048) | $ | (721) | $ | (158) | $ | 565 | $ | (22,362) | |||||||
Loss per share: | |||||||||||||||||
Basic | $(0.29) | $(0.01) | $0.00 | $0.01 | $(0.30) | ||||||||||||
Diluted | $(0.29) | $(0.01) | $0.00 | $0.01 | $(0.30) | ||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||
Basic | 75,146,201 | — | — | — | 75,146,201 | ||||||||||||
Diluted | 75,146,201 | — | — | — | 75,146,201 | ||||||||||||
For the three months ended | |||||||||||||||||
June 30, 2022 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||
Net loss | $ | (11,141) | $ | (350) | $ | (79) | $ | 780 | $ | (10,790) | |||||||
Other comprehensive loss: | |||||||||||||||||
Foreign currency translation adjustment | (2,559) | 186 | — | — | (2,373) | ||||||||||||
Comprehensive loss | $ | (13,700) | $ | (164) | $ | (79) | $ | 780 | $ | (13,163) |
For the six months ended | |||||||||||||||||
June 30, 2022 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||
Net loss | $ | (22,048) | $ | (721) | $ | (158) | $ | 565 | $ | (22,362) | |||||||
Other comprehensive loss: | |||||||||||||||||
Foreign currency translation adjustment | (2,743) | 247 | — | — | (2,496) | ||||||||||||
Comprehensive loss | $ | (24,791) | $ | (474) | $ | (158) | $ | 565 | $ | (24,858) |
Common Stock | Additional paid-in capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||
Shares | Amount | Amount | Amount | Amount | Amount | ||||||||||||||||||||||||||||||
As Reported | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 72,027,743 | 7 | 413,646 | (3,331) | (138,179) | 272,143 | |||||||||||||||||||||||||||||
Opening balance sheet adjustment (as previously reported) | — | — | (11,613) | — | 299 | (11,314) | |||||||||||||||||||||||||||||
Balance at December 31, 2021 - Adjusted | 72,027,743 | 7 | 402,033 | (3,331) | (137,880) | 260,829 | |||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | (184) | — | (184) | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | 2,050 | — | — | 2,050 | |||||||||||||||||||||||||||||
Common stock issued pursuant to acquisition | 4,212,246 | 1 | 23,294 | — | — | 23,295 | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | (10,907) | (10,907) | |||||||||||||||||||||||||||||
Balance at March 31, 2022 | 76,239,989 | 8 | 427,377 | (3,515) | (148,787) | 275,083 | |||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | (2,559) | — | (2,559) | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | 2,501 | — | — | 2,501 | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | (11,141) | (11,141) | |||||||||||||||||||||||||||||
Balance at June 30, 2022 | 76,239,989 | 8 | 429,878 | (6,074) | (159,928) | 263,884 | |||||||||||||||||||||||||||||
Adjustments | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | — | — | (331) | (132) | (4,158) | (4,621) | |||||||||||||||||||||||||||||
March 31, 2022 | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | 61 | — | 61 | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | (665) | (665) | |||||||||||||||||||||||||||||
Total Adjustments - March 31, 2022 | — | — | (331) | (71) | (4,823) | (5,225) | |||||||||||||||||||||||||||||
June 30, 2022 | |||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | 186 | — | 186 | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | 351 | 351 | |||||||||||||||||||||||||||||
Total Adjustments - June 30, 2022 | — | — | (331) | 115 | (4,472) | (4,688) | |||||||||||||||||||||||||||||
As Revised | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 72,027,743 | 7 | 413,315 | (3,463) | (142,337) | 267,522 | |||||||||||||||||||||||||||||
Opening balance sheet adjustment (as previously reported) | — | — | (11,613) | — | 299 | (11,314) | |||||||||||||||||||||||||||||
Balance at December 31, 2021 | 72,027,743 | 7 | 401,702 | (3,463) | (142,038) | 256,208 | |||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | (123) | — | (123) | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | 2,050 | — | — | 2,050 | |||||||||||||||||||||||||||||
Common stock issued pursuant to acquisition | 4,212,246 | 1 | 23,294 | — | — | 23,295 | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | (11,572) | (11,572) | |||||||||||||||||||||||||||||
Balance at March 31, 2022 | 76,239,989 | 8 | 427,046 | (3,586) | (153,610) | 269,858 | |||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | (2,373) | — | (2,373) | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | 2,501 | — | — | 2,501 | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | (10,790) | (10,790) | |||||||||||||||||||||||||||||
Balance at June 30, 2022 | 76,239,989 | $ | 8 | $ | 429,547 | $ | (5,959) | $ | (164,400) | $ | 259,196 |
For the six months ended | |||||||||||||||||
June 30, 2022 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||
Cash flows from operating activities | |||||||||||||||||
Net loss | $ | (22,048) | $ | (721) | $ | (158) | $ | 565 | $ | (22,362) | |||||||
Adjustments to reconcile net loss to net cash provided by operating activities | |||||||||||||||||
Depreciation and amortization | 26,970 | — | — | (42) | 26,928 | ||||||||||||
Amortization of deferred financing costs | 1,188 | — | — | — | 1,188 | ||||||||||||
Non-cash reduction to the operating lease right-of-use assets | 1,129 | — | — | — | 1,129 | ||||||||||||
Deferred income taxes | (7,666) | 398 | — | 847 | (6,421) | ||||||||||||
Non-cash foreign currency loss | 489 | — | — | — | 489 | ||||||||||||
Share-based compensation | 4,551 | — | — | — | 4,551 | ||||||||||||
Provision for doubtful accounts | 183 | — | — | — | 183 | ||||||||||||
Change in fair value of warrant liability | (133) | — | — | — | (133) | ||||||||||||
Change in operating assets and liabilities, net of operating assets and liabilities acquired: | |||||||||||||||||
Accounts receivable | 2,421 | — | — | 33 | 2,454 | ||||||||||||
Inventories | 6,661 | — | — | — | 6,661 | ||||||||||||
Prepaid expenses and other receivables | (769) | — | — | 105 | (664) | ||||||||||||
Accounts payable and accrued liabilities | (2,674) | 323 | 158 | (325) | (2,518) | ||||||||||||
Deferred revenue | 872 | — | — | (684) | 188 | ||||||||||||
Income taxes payable | 269 | — | — | (711) | (442) | ||||||||||||
Operating lease liabilities | (752) | — | — | 212 | (540) | ||||||||||||
Net cash provided by operating activities | $ | 10,691 | $ | — | $ | — | $ | — | $ | 10,691 | |||||||
Net cash used in investing activities | $ | (53,201) | $ | — | $ | — | $ | — | $ | (53,201) | |||||||
Net cash used in financing activities | $ | (2,454) | $ | — | $ | — | $ | — | $ | (2,454) | |||||||
Effect of exchange rate change on cash and restricted cash | (575) | — | — | — | (575) | ||||||||||||
Change in cash and restricted cash | (45,539) | — | — | — | (45,539) | ||||||||||||
Cash and restricted cash, beginning of period | 86,343 | — | — | — | 86,343 | ||||||||||||
Cash and restricted cash, end of period | $ | 40,804 | $ | — | $ | — | $ | — | $ | 40,804 | |||||||
September 30, 2022 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||
Assets | |||||||||||||||||
Current assets | |||||||||||||||||
Cash | $ | 42,925 | $ | — | $ | — | $ | — | $ | 42,925 | |||||||
Accounts receivable, net | 41,237 | — | — | 475 | 41,712 | ||||||||||||
Inventories, net | 8,272 | — | — | — | 8,272 | ||||||||||||
Income taxes receivable | 711 | — | — | 821 | 1,532 | ||||||||||||
Prepaid expenses and other current assets | 13,316 | — | — | (386) | 12,930 | ||||||||||||
Total current assets | 106,461 | — | — | 910 | 107,371 | ||||||||||||
Non-current assets | — | ||||||||||||||||
Restricted cash | 358 | — | — | — | 358 | ||||||||||||
Property and equipment, net | 12,141 | — | — | — | 12,141 | ||||||||||||
Intangibles assets, net | 201,260 | — | — | (862) | 200,398 | ||||||||||||
Goodwill | 425,604 | — | — | 1,453 | 427,057 | ||||||||||||
Operating lease right-of-use assets | 10,430 | — | — | — | 10,430 | ||||||||||||
Deferred tax assets | 566 | — | — | (1) | 565 | ||||||||||||
Other long-term assets | 653 | — | — | — | 653 | ||||||||||||
Total assets | $ | 757,473 | $ | — | $ | — | $ | 1,500 | $ | 758,973 | |||||||
Liabilities and stockholders’ equity | |||||||||||||||||
Current liabilities | |||||||||||||||||
Accounts payable | $ | 18,201 | $ | — | $ | — | $ | — | $ | 18,201 | |||||||
Accrued liabilities | 14,290 | — | — | 300 | 14,590 | ||||||||||||
Current portion of operating lease liabilities | 1,872 | — | — | — | 1,872 | ||||||||||||
Income taxes payable | 381 | — | — | (381) | — | ||||||||||||
Deferred revenue | 7,012 | — | — | — | 7,012 | ||||||||||||
Current portion of long-term debt and other borrowings, net | 5,319 | — | — | — | 5,319 | ||||||||||||
Total current liabilities | 47,075 | — | — | (81) | 46,994 | ||||||||||||
Non-current liabilities | |||||||||||||||||
Deferred tax liabilities | 29,926 | 2,497 | — | 1,031 | 33,454 | ||||||||||||
Warrant liability | 33 | — | — | — | 33 | ||||||||||||
Non-current portion of operating lease liabilities | 9,501 | — | — | — | 9,501 | ||||||||||||
Long-term debt and other borrowings, net | 414,683 | — | — | — | 414,683 | ||||||||||||
Other long-term liabilities | 4,794 | 2,013 | 1,493 | 285 | 8,585 | ||||||||||||
Total liabilities | $ | 506,012 | $ | 4,510 | $ | 1,493 | $ | 1,235 | $ | 513,250 | |||||||
Stockholders’ equity | |||||||||||||||||
Common stock | $ | 8 | $ | — | $ | — | $ | — | $ | 8 | |||||||
Additional paid-in capital | 432,897 | — | — | (331) | 432,566 | ||||||||||||
Accumulated other comprehensive loss | (8,491) | 403 | — | (86) | (8,174) | ||||||||||||
Accumulated deficit | (172,953) | (4,913) | (1,493) | 682 | (178,677) | ||||||||||||
Total stockholders’ equity | $ | 251,461 | $ | (4,510) | $ | (1,493) | $ | 265 | $ | 245,723 | |||||||
Total liabilities and stockholders’ equity | $ | 757,473 | $ | — | $ | — | $ | 1,500 | $ | 758,973 |
For the three months ended | |||||||||||||||||
September 30, 2022 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||
Revenue | |||||||||||||||||
Services | $ | 46,410 | $ | — | $ | — | $ | 38 | $ | 46,448 | |||||||
Products | 20,230 | — | — | (541) | 19,689 | ||||||||||||
Total revenue | 66,640 | — | — | (503) | 66,137 | ||||||||||||
Cost of revenue | |||||||||||||||||
Cost of services | 16,609 | — | — | (28) | 16,581 | ||||||||||||
Cost of products | 14,960 | — | — | — | 14,960 | ||||||||||||
Total cost of revenue (exclusive of depreciation and amortization shown separately below) | 31,569 | — | — | (28) | 31,541 | ||||||||||||
Operating expenses | |||||||||||||||||
Selling, general and administrative | 28,841 | — | 79 | (16) | 28,904 | ||||||||||||
Depreciation and amortization | 13,709 | — | — | (21) | 13,688 | ||||||||||||
Total operating expenses | 42,550 | — | 79 | (37) | 42,592 | ||||||||||||
Operating loss | (7,479) | — | (79) | (438) | (7,996) | ||||||||||||
Interest expense, including amortization of deferred financing costs, net | 8,206 | — | — | — | 8,206 | ||||||||||||
Change in fair value of warrant liability | (120) | — | — | — | (120) | ||||||||||||
Loss before income taxes | (15,565) | — | (79) | (438) | (16,082) | ||||||||||||
Income tax expense (benefit) | (2,540) | 808 | — | (73) | (1,805) | ||||||||||||
Net loss | $ | (13,025) | (808) | (79) | (365) | (14,277) | |||||||||||
Loss per share: | |||||||||||||||||
Basic | $(0.17) | $(0.01) | $0.00 | $0.00 | $(0.19) | ||||||||||||
Diluted | $(0.17) | $(0.01) | $0.00 | $0.00 | $(0.19) | ||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||
Basic | 76,240,530 | — | — | — | 76,240,530 | ||||||||||||
Diluted | 76,240,530 | — | — | — | 76,240,530 | ||||||||||||
For the nine months ended | |||||||||||||||||
September 30, 2022 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||
Revenue | |||||||||||||||||
Services | $ | 141,694 | $ | — | $ | — | $ | 102 | $ | 141,796 | |||||||
Products | 64,240 | — | — | — | 64,240 | ||||||||||||
Total revenue | 205,934 | — | — | 102 | 206,036 | ||||||||||||
Cost of revenue | |||||||||||||||||
Cost of services | 50,714 | — | — | 26 | 50,740 | ||||||||||||
Cost of products | 49,701 | — | — | — | 49,701 | ||||||||||||
Total cost of revenue (exclusive of depreciation and amortization shown separately below) | 100,415 | — | — | 26 | 100,441 | ||||||||||||
Operating expenses | |||||||||||||||||
Selling, general and administrative | 85,883 | — | 237 | (91) | 86,029 | ||||||||||||
Depreciation and amortization | 40,679 | — | — | (63) | 40,616 | ||||||||||||
Total operating expenses | 126,562 | — | 237 | (154) | 126,645 | ||||||||||||
Operating loss | (21,043) | — | (237) | 230 | (21,050) | ||||||||||||
Interest expense, including amortization of deferred financing costs, net | 22,127 | — | — | — | 22,127 | ||||||||||||
Change in fair value of warrant liability | (253) | — | — | — | (253) | ||||||||||||
Loss before income taxes | (42,917) | — | (237) | 230 | (42,924) | ||||||||||||
Income tax expense (benefit) | (7,844) | 1,529 | — | 30 | (6,285) | ||||||||||||
Net loss | $ | (35,073) | $ | (1,529) | $ | (237) | $ | 200 | $ | (36,639) | |||||||
Loss per share: | |||||||||||||||||
Basic | $(0.46) | $(0.02) | $0.00 | $0.00 | $(0.48) | ||||||||||||
Diluted | $(0.46) | $(0.02) | $0.00 | $0.00 | $(0.48) | ||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||
Basic | 75,514,986 | — | — | — | 75,514,986 | ||||||||||||
Diluted | 75,514,986 | — | — | — | 75,514,986 | ||||||||||||
For the three months ended | |||||||||||||||||
September 30, 2022 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||
Net loss | $ | (13,025) | $ | (808) | $ | (79) | $ | (365) | $ | (14,277) | |||||||
Other comprehensive loss: | |||||||||||||||||
Foreign currency translation adjustment | (2,417) | 202 | — | — | (2,215) | ||||||||||||
Comprehensive loss | $ | (15,442) | $ | (606) | $ | (79) | $ | (365) | $ | (16,492) |
For the nine months ended | |||||||||||||||||
September 30, 2022 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||
Net loss | $ | (35,073) | $ | (1,529) | $ | (237) | $ | 200 | $ | (36,639) | |||||||
Other comprehensive loss: | |||||||||||||||||
Foreign currency translation adjustment | (5,160) | 449 | — | — | (4,711) | ||||||||||||
Comprehensive loss | $ | (40,233) | $ | (1,080) | $ | (237) | $ | 200 | $ | (41,350) |
Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||
Shares | Amount | Amount | Amount | Amount | Amount | ||||||||||||||||||||||||||||||
As Reported | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 72,027,743 | $ | 7 | $ | 413,646 | $ | (3,331) | $ | (138,179) | $ | 272,143 | ||||||||||||||||||||||||
Opening balance sheet adjustment (as previously reported) | — | — | (11,613) | — | 299 | (11,314) | |||||||||||||||||||||||||||||
Balance at December 31, 2021 - As adjusted | 72,027,743 | 7 | 402,033 | (3,331) | (137,880) | 260,829 | |||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | (184) | — | (184) | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | 2,050 | — | — | 2,050 | |||||||||||||||||||||||||||||
Common stock issued pursuant to acquisition | 4,212,246 | 1 | 23,294 | — | — | 23,295 | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | (10,907) | (10,907) | |||||||||||||||||||||||||||||
Balance at March 31, 2022 | 76,239,989 | 8 | 427,377 | (3,515) | (148,787) | 275,083 | |||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | (2,559) | — | (2,559) | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | 2,501 | — | — | 2,501 | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | (11,141) | (11,141) | |||||||||||||||||||||||||||||
Balance at June 30, 2022 | 76,239,989 | 8 | 429,878 | (6,074) | (159,928) | 263,884 | |||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | (2,417) | — | (2,417) | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | 3,019 | — | — | 3,019 | |||||||||||||||||||||||||||||
Vesting of restricted stock units | 52,252 | — | — | — | — | — | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | (13,025) | (13,025) | |||||||||||||||||||||||||||||
Balance at September 30, 2022 | 76,292,241 | 8 | 432,897 | (8,491) | (172,953) | 251,461 | |||||||||||||||||||||||||||||
Adjustments | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | — | — | (331) | (132) | (4,158) | (4,621) | |||||||||||||||||||||||||||||
March 31, 2022 | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | 61 | — | 61 | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | (665) | (665) | |||||||||||||||||||||||||||||
Total Adjustments - March 31, 2022 | — | — | (331) | (71) | (4,823) | (5,225) | |||||||||||||||||||||||||||||
June 30, 2022 | |||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | 186 | — | 186 | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | 351 | 351 | |||||||||||||||||||||||||||||
Total Adjustments - June 30, 2022 | — | — | (331) | 115 | (4,472) | (4,688) | |||||||||||||||||||||||||||||
September 30, 2022 | |||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | 202 | — | 202 | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | (1,252) | (1,252) | |||||||||||||||||||||||||||||
Total Adjustments - September 30, 2022 | — | — | (331) | 317 | (5,724) | (5,738) | |||||||||||||||||||||||||||||
As Revised | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | 72,027,743 | 7 | 413,315 | (3,463) | (142,337) | 267,522 | |||||||||||||||||||||||||||||
Opening balance sheet adjustment (as previously reported) | — | — | (11,613) | — | 299 | (11,314) | |||||||||||||||||||||||||||||
Balance at December 31, 2021 | 72,027,743 | $ | 7 | $ | 401,702 | $ | (3,463) | $ | (142,038) | $ | 256,208 | ||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | (123) | — | (123) | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | 2,050 | — | — | 2,050 | |||||||||||||||||||||||||||||
Common stock issued pursuant to acquisition | 4,212,246 | 1 | 23,294 | — | — | 23,295 | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | (11,572) | (11,572) | |||||||||||||||||||||||||||||
Balance at March 31, 2022 | 76,239,989 | $ | 8 | $ | 427,046 | $ | (3,586) | $ | (153,610) | $ | 269,858 | ||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | (2,373) | — | (2,373) | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | 2,501 | — | — | 2,501 | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | (10,790) | (10,790) | |||||||||||||||||||||||||||||
Balance at June 30, 2022 | 76,239,989 | $ | 8 | $ | 429,547 | $ | (5,959) | $ | (164,400) | $ | 259,196 | ||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | (2,215) | — | (2,215) | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | 3,019 | — | — | 3,019 | |||||||||||||||||||||||||||||
Vesting of restricted stock units | 52,252 | — | — | — | — | — | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | (14,277) | (14,277) | |||||||||||||||||||||||||||||
Balance at September 30, 2022 | 76,292,241 | $ | 8 | $ | 432,566 | $ | (8,174) | $ | (178,677) | $ | 245,723 |
For the nine months ended | |||||||||||||||||
September 30, 2022 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||
Cash flows from operating activities | |||||||||||||||||
Net loss | $ | (35,073) | $ | (1,529) | $ | (237) | $ | 200 | $ | (36,639) | |||||||
Adjustments to reconcile net loss to net cash provided by operating activities | |||||||||||||||||
Depreciation and amortization | 40,679 | — | — | (63) | 40,616 | ||||||||||||
Amortization of deferred financing costs | 1,806 | — | — | — | 1,806 | ||||||||||||
Non-cash reduction to the operating lease right-of-use assets | 1,678 | — | — | — | 1,678 | ||||||||||||
Deferred income taxes | (10,875) | 1,028 | — | 1,264 | (8,583) | ||||||||||||
Non-cash foreign currency loss (gain) | 1,566 | — | — | — | 1,566 | ||||||||||||
Stock-based compensation | 7,570 | — | — | — | 7,570 | ||||||||||||
Provision for doubtful accounts | 424 | — | — | — | 424 | ||||||||||||
Change in fair value of warrant liability | (253) | — | — | — | (253) | ||||||||||||
Change in operating assets and liabilities, net of operating assets and liabilities acquired: | |||||||||||||||||
Accounts receivable | 11,155 | — | — | (164) | 10,991 | ||||||||||||
Inventories | 8,192 | — | — | — | 8,192 | ||||||||||||
Prepaid expenses and other current assets | (1,934) | — | — | 301 | (1,633) | ||||||||||||
Accounts payable and accrued liabilities | (3,756) | 501 | 237 | (316) | (3,334) | ||||||||||||
Deferred revenue | 252 | — | — | — | 252 | ||||||||||||
Income taxes payable | 144 | — | — | (1,222) | (1,078) | ||||||||||||
Operating lease liabilities | (1,048) | — | — | — | (1,048) | ||||||||||||
Net cash provided by operating activities | $ | 20,527 | $ | — | $ | — | $ | — | $ | 20,527 | |||||||
Net cash used in investing activities | $ | (57,974) | $ | — | $ | — | $ | — | $ | (57,974) | |||||||
Net cash used in financing activities | $ | (3,599) | $ | — | $ | — | $ | — | $ | (3,599) | |||||||
Effect of exchange rate change on cash | (2,014) | — | — | — | (2,014) | ||||||||||||
Change in cash and restricted cash | (43,060) | — | — | — | (43,060) | ||||||||||||
Cash and restricted cash, beginning of period | 86,343 | — | — | — | 86,343 | ||||||||||||
Cash and restricted cash, end of period | $ | 43,283 | $ | — | $ | — | $ | — | $ | 43,283 | |||||||
March 31, 2021 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||
Assets | |||||||||||||||||
Current assets | |||||||||||||||||
Cash | $ | 13,134 | — | — | — | $ | 13,134 | ||||||||||
Accounts receivable, net | 42,210 | — | — | 148 | 42,358 | ||||||||||||
Inventories, net | 6,627 | — | — | — | 6,627 | ||||||||||||
Prepaid expenses and other receivables | 10,811 | — | — | (903) | 9,908 | ||||||||||||
Income taxes receivable | 324 | — | — | 3 | 327 | ||||||||||||
Total current assets | 73,106 | — | — | (752) | 72,354 | ||||||||||||
Non-current assets | |||||||||||||||||
Restricted cash | 372 | — | — | — | 372 | ||||||||||||
Property and equipment, net | 13,338 | — | — | — | 13,338 | ||||||||||||
Intangibles assets, net | 229,926 | — | — | (987) | 228,939 | ||||||||||||
Goodwill | 382,283 | — | — | 1,453 | 383,736 | ||||||||||||
Operating lease right-of-use assets | 122 | — | — | — | 122 | ||||||||||||
Other long-term assets | 2,595 | — | — | — | 2,595 | ||||||||||||
Total assets | $ | 701,742 | $ | — | $ | — | $ | (286) | $ | 701,456 | |||||||
Liabilities and stockholders’ equity | |||||||||||||||||
Current liabilities | |||||||||||||||||
Bank indebtedness | $ | 20,000 | $ | — | $ | — | $ | — | $ | 20,000 | |||||||
Accounts payable | 19,515 | — | — | — | 19,515 | ||||||||||||
Accrued liabilities | 8,685 | — | — | 1,078 | 9,763 | ||||||||||||
Income tax payable | 730 | — | — | (20) | 710 | ||||||||||||
Current portion of operating lease liabilities | 504 | — | — | — | 504 | ||||||||||||
Deferred revenue | 7,634 | — | — | — | 7,634 | ||||||||||||
Current portion of long-term debt and other borrowings, net | 3,153 | — | — | — | 3,153 | ||||||||||||
Total current liabilities | 60,221 | — | — | 1,058 | 61,279 | ||||||||||||
Non-current liabilities | |||||||||||||||||
Deferred tax liabilities | 41,393 | 1,326 | — | (344) | 42,375 | ||||||||||||
Due to related parties | 1,539 | — | — | — | 1,539 | ||||||||||||
Warrant Liability | 13,520 | — | — | — | 13,520 | ||||||||||||
Long-term portion of capital lease obligations | 420 | — | — | — | 420 | ||||||||||||
Long-term debt | 298,010 | — | — | — | 298,010 | ||||||||||||
Other long-term liabilities | 4,194 | 1,658 | 914 | 36 | 6,802 | ||||||||||||
Total liabilities | $ | 419,297 | $ | 2,984 | $ | 914 | $ | 750 | $ | 423,945 | |||||||
Total temporary equity | $ | 271,288 | $ | — | $ | — | $ | (300) | $ | 270,988 | |||||||
Stockholders’ equity | |||||||||||||||||
Common stock | $ | 3 | $ | — | $ | — | $ | — | $ | 3 | |||||||
Additional paid-in capital | 128,538 | — | — | — | 128,538 | ||||||||||||
Accumulated other comprehensive loss | (2,577) | (95) | — | 214 | (2,458) | ||||||||||||
Accumulated deficit | (114,807) | (2,889) | (914) | (950) | (119,560) | ||||||||||||
Total stockholders’ equity | $ | 11,157 | $ | (2,984) | $ | (914) | $ | (736) | $ | 6,523 | |||||||
Total liabilities and stockholders’ equity | $ | 701,742 | $ | — | $ | — | $ | (286) | $ | 701,456 | |||||||
For the three months ended | |||||||||||||||||
March 31, 2021 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||
Revenue | |||||||||||||||||
Services | $ | 45,062 | $ | — | $ | — | $ | 55 | $ | 45,117 | |||||||
Products | 10,235 | — | — | — | 10,235 | ||||||||||||
Total revenue | 55,297 | — | — | 55 | 55,352 | ||||||||||||
Cost of revenue | |||||||||||||||||
Cost of services | 16,211 | — | — | (268) | 15,943 | ||||||||||||
Cost of products | 8,161 | — | — | (235) | 7,926 | ||||||||||||
Total cost of revenue (exclusive of depreciation and amortization shown separately below) | 24,372 | — | — | (503) | 23,869 | ||||||||||||
Operating expenses | |||||||||||||||||
Selling, general and administrative | 17,521 | — | 114 | 1,375 | 19,010 | ||||||||||||
Depreciation and amortization | 13,114 | — | — | (21) | 13,093 | ||||||||||||
Total operating expenses | 30,635 | — | 114 | 1,354 | 32,103 | ||||||||||||
Operating income (loss) | 290 | — | (114) | (796) | (620) | ||||||||||||
Interest expense, including amortization of deferred financing costs, net | 5,059 | — | — | — | 5,059 | ||||||||||||
Change in fair value of warrant liability | (2,424) | — | — | — | (2,424) | ||||||||||||
Loss before income taxes | (2,345) | — | (114) | (796) | (3,255) | ||||||||||||
Income tax expense (benefit) | (1,264) | 238 | — | (230) | (1,256) | ||||||||||||
Net loss | $ | (1,081) | $ | (238) | $ | (114) | $ | (566) | $ | (1,999) | |||||||
Loss per share: | |||||||||||||||||
Basic | $(0.27) | $(0.01) | $0.00 | $(0.02) | $(0.30) | ||||||||||||
Diluted | $(0.27) | $(0.01) | $0.00 | $(0.02) | $(0.30) | ||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||
Basic | 31,647,131 | — | — | — | 31,647,131 | ||||||||||||
Diluted | 31,647,131 | — | — | — | 31,647,131 |
For the three months ended | |||||||||||||||||
March 31, 2021 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||
Net loss | $ | (1,081) | $ | (238) | $ | (114) | $ | (566) | $ | (1,999) | |||||||
Other comprehensive loss: | |||||||||||||||||
Foreign currency translation adjustment | (900) | 4 | — | — | (896) | ||||||||||||
Comprehensive loss | $ | (1,981) | $ | (234) | $ | (114) | $ | (566) | $ | (2,895) |
Series A Preferred Stock | Series A-1 Preferred Stock | Series B Preferred Stock | Series C Convertible Preferred Stock | Total Temporary Equity | Common Stock | Additional paid-in capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Temporary Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Amount | Shares | Amount | Amount | Amount | Amount | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As Reported | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 (as previously reported) | 7,756,158 | $ | 77,562 | 7,862,107 | $ | 78,621 | 9,090,975 | $ | 90,910 | 2,566,186 | $ | 16,802 | $ | 263,895 | 30,281,520 | $ | 3 | $ | 135,616 | $ | (1,677) | $ | (113,726) | $ | 20,216 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued dividends payable | 248,622 | 2,486 | 266,558 | 2,666 | 224,161 | 2,241 | — | — | 7,393 | — | — | (7,393) | — | — | (7,393) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | (900) | — | (900) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | — | — | — | 315 | — | — | 315 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | (1,081) | (1,081) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 8,004,780 | 80,048 | 8,128,665 | 81,287 | 9,315,136 | 93,151 | 2,566,186 | 16,802 | 271,288 | 30,281,520 | 3 | 128,538 | (2,577) | (114,807) | 11,157 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | — | — | — | — | — | — | (45,818) | (300) | (300) | — | — | — | 115 | (3,835) | (3,720) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2021 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | 4 | — | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | (918) | (918) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Adjustments - March 31, 2021 | — | — | — | — | — | — | (45,818) | (300) | (300) | — | — | — | 119 | (4,753) | (4,634) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As Revised | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 7,756,158 | 77,562 | 7,862,107 | 78,621 | 9,090,975 | 90,910 | 2,520,368 | 16,502 | 263,595 | 30,281,520 | 3 | 135,616 | (1,562) | (117,561) | 16,496 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued dividends payable | 248,622 | 2,486 | 266,558 | 2,666 | 224,161 | 2,241 | — | — | 7,393 | — | — | (7,393) | — | — | (7,393) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | (896) | — | (896) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | — | — | — | 315 | — | — | 315 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | (1,999) | (1,999) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 8,004,780 | $ | 80,048 | 8,128,665 | $ | 81,287 | 9,315,136 | $ | 93,151 | 2,520,368 | $ | 16,502 | $ | 270,988 | 30,281,520 | $ | 3 | $ | 128,538 | $ | (2,458) | $ | (119,560) | $ | 6,523 |
For the three months ended | |||||||||||||||||
March 31, 2021 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||
Cash flows from operating activities | |||||||||||||||||
Net loss | $ | (1,081) | $ | (238) | $ | (114) | $ | (566) | $ | (1,999) | |||||||
Adjustments to reconcile net loss to net cash used in operating activities | |||||||||||||||||
Depreciation and amortization | 13,114 | — | — | (21) | 13,093 | ||||||||||||
Amortization of deferred financing costs | 524 | — | — | — | 524 | ||||||||||||
Deferred income taxes | (1,366) | 238 | — | (259) | (1,387) | ||||||||||||
Non-cash foreign currency loss | (70) | — | — | — | (70) | ||||||||||||
Share-based compensation | 315 | — | — | — | 315 | ||||||||||||
Provision for doubtful accounts | (18) | — | — | — | (18) | ||||||||||||
Change in fair value of warrant liability | (2,424) | — | — | — | (2,424) | ||||||||||||
Change in operating assets and liabilities, net of operating assets and liabilities acquired: | |||||||||||||||||
Accounts receivable | (1,855) | — | — | (55) | (1,910) | ||||||||||||
Inventories | (878) | — | — | — | (878) | ||||||||||||
Prepaid expenses and other receivables | (5,375) | — | — | 1,274 | (4,101) | ||||||||||||
Accounts payable and accrued liabilities | (13,311) | — | 114 | (365) | (13,562) | ||||||||||||
Deferred revenue | (81) | — | — | — | (81) | ||||||||||||
Income taxes payable | 186 | — | — | (8) | 178 | ||||||||||||
Net cash used in operating activities | $ | (12,320) | $ | — | $ | — | $ | — | $ | (12,320) | |||||||
Net cash used in investing activities | $ | (3,091) | $ | — | $ | — | $ | — | $ | (3,091) | |||||||
Net cash provided financing activities | $ | 18,291 | $ | — | $ | — | $ | — | $ | 18,291 | |||||||
Effect of Exchange Rate Change on Cash and Restricted Cash | (67) | — | — | — | (67) | ||||||||||||
Change in Cash and Restricted Cash | 2,813 | — | — | — | 2,813 | ||||||||||||
Cash and Restricted Cash, beginning of period | 10,693 | — | — | — | 10,693 | ||||||||||||
Cash and Restricted Cash, end of period | $ | 13,506 | $ | — | $ | — | $ | — | $ | 13,506 | |||||||
June 30, 2021 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||
Assets | |||||||||||||||||
Current assets | |||||||||||||||||
Cash | $ | 8,300 | $ | — | $ | — | $ | — | $ | 8,300 | |||||||
Accounts receivable, net | 47,639 | — | — | 202 | 47,841 | ||||||||||||
Inventories, net | 9,864 | — | — | — | 9,864 | ||||||||||||
Prepaid expenses and other receivables | 14,246 | — | — | 480 | 14,726 | ||||||||||||
Income taxes receivable | 441 | — | — | 283 | 724 | ||||||||||||
Total current assets | 80,490 | — | — | 965 | 81,455 | ||||||||||||
Non-current assets | |||||||||||||||||
Restricted cash | 371 | — | — | — | 371 | ||||||||||||
Property and equipment, net | 12,606 | — | — | — | 12,606 | ||||||||||||
Intangibles assets, net | 221,990 | — | — | (966) | 221,024 | ||||||||||||
Goodwill | 382,427 | — | — | 1,453 | 383,880 | ||||||||||||
Operating lease right-of-use assets | 119 | — | — | — | 119 | ||||||||||||
Other long-term assets | 3,531 | — | — | — | 3,531 | ||||||||||||
Total assets | 701,534 | — | — | 1,452 | 702,986 | ||||||||||||
Liabilities and stockholders’ equity | |||||||||||||||||
Current liabilities | |||||||||||||||||
Bank indebtedness | $ | 22,000 | $ | — | $ | — | $ | — | $ | 22,000 | |||||||
Accounts payable | 23,181 | — | — | — | 23,181 | ||||||||||||
Accrued liabilities | 12,496 | — | — | 881 | 13,377 | ||||||||||||
Income taxes payable | 640 | — | — | — | 640 | ||||||||||||
Current portion of operating lease liabilities | 641 | — | — | — | 641 | ||||||||||||
Deferred revenue | 7,074 | — | — | — | 7,074 | ||||||||||||
Current portion of long-term debt and other borrowings, net | 3,153 | — | — | — | 3,153 | ||||||||||||
Total current liabilities | 69,185 | — | — | 881 | 70,066 | ||||||||||||
Non-current liabilities | |||||||||||||||||
Deferred tax liabilities | 38,474 | 1,378 | — | 610 | 40,462 | ||||||||||||
Due to related parties | 1,565 | — | — | — | 1,565 | ||||||||||||
Warrant Liability | 13,561 | — | — | — | 13,561 | ||||||||||||
Long-term portion of capital lease obligations | 362 | — | — | — | 362 | ||||||||||||
Long-term debt | 297,773 | — | — | — | 297,773 | ||||||||||||
Other long-term liabilities | 4,296 | 1,796 | 1,028 | 35 | 7,155 | ||||||||||||
Total liabilities | $ | 425,216 | $ | 3,174 | $ | 1,028 | $ | 1,526 | $ | 430,944 | |||||||
Total temporary equity | $ | 278,520 | $ | — | $ | — | $ | — | $ | 278,520 | |||||||
Stockholders’ equity | |||||||||||||||||
Common stock | 3 | — | — | — | 3 | ||||||||||||
Additional paid-in capital | 121,321 | — | — | — | 121,321 | ||||||||||||
Accumulated other comprehensive loss | (1,834) | (120) | — | (86) | (2,040) | ||||||||||||
Accumulated deficit | (121,692) | (3,054) | (1,028) | 12 | (125,762) | ||||||||||||
Total stockholders’ equity | $ | (2,202) | $ | (3,174) | $ | (1,028) | $ | (74) | $ | (6,478) | |||||||
Total liabilities, temporary and stockholders’ equity | $ | 701,534 | $ | — | $ | — | $ | 1,452 | $ | 702,986 |
For the three months ended | |||||||||||||||||
June 30, 2021 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||
Revenue | |||||||||||||||||
Services | $ | 46,375 | $ | — | $ | — | $ | 55 | $ | 46,430 | |||||||
Products | 14,368 | — | — | — | 14,368 | ||||||||||||
Total revenue | 60,743 | — | — | 55 | 60,798 | ||||||||||||
Cost of revenue | |||||||||||||||||
Cost of services | 17,826 | — | — | (202) | 17,624 | ||||||||||||
Cost of products | 11,511 | — | — | — | 11,511 | ||||||||||||
Total cost of revenue (exclusive of depreciation and amortization shown separately below) | 29,337 | — | — | (202) | 29,135 | ||||||||||||
Operating expenses | |||||||||||||||||
Selling, general and administrative | 23,004 | — | 114 | (1,377) | 21,741 | ||||||||||||
Depreciation and amortization | 12,393 | — | — | (21) | 12,372 | ||||||||||||
Total operating expenses | 35,397 | — | 114 | (1,398) | 34,113 | ||||||||||||
Operating income (loss) | (3,991) | — | (114) | 1,655 | (2,450) | ||||||||||||
Interest expense, including amortization of deferred financing costs, net | 5,506 | — | — | — | 5,506 | ||||||||||||
Change in fair value of warrant liability | 41 | — | — | — | 41 | ||||||||||||
Loss before income taxes | (9,538) | — | (114) | 1,655 | (7,997) | ||||||||||||
Income tax expense (benefit) | (2,653) | 165 | — | 693 | (1,795) | ||||||||||||
Net loss | $ | (6,885) | $ | (165) | $ | (114) | $ | 962 | $ | (6,202) | |||||||
Loss per share: | |||||||||||||||||
Basic | $(0.46) | $(0.01) | $0.00 | $0.03 | $(0.43) | ||||||||||||
Diluted | $(0.46) | $(0.01) | $0.00 | $0.03 | $(0.43) | ||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||
Basic | 31,647,131 | — | — | — | 31,647,131 | ||||||||||||
Diluted | 31,647,131 | — | — | — | 31,647,131 | ||||||||||||
For the six months ended | |||||||||||||||||
June 30, 2021 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||
Revenue | |||||||||||||||||
Services | $ | 91,437 | $ | — | $ | — | $ | 110 | $ | 91,547 | |||||||
Products | 24,603 | — | — | — | 24,603 | ||||||||||||
Total revenue | 116,040 | — | — | 110 | 116,150 | ||||||||||||
Cost of revenue | |||||||||||||||||
Cost of services | 34,037 | — | — | (470) | 33,567 | ||||||||||||
Cost of products | 19,672 | — | — | (235) | 19,437 | ||||||||||||
Total cost of revenue (exclusive of depreciation and amortization shown separately below) | 53,709 | — | — | (705) | 53,004 | ||||||||||||
Operating expenses | |||||||||||||||||
Selling, general and administrative | 40,525 | — | 228 | (2) | 40,751 | ||||||||||||
Depreciation and amortization | 25,507 | — | — | (42) | 25,465 | ||||||||||||
Total operating expenses | 66,032 | — | 228 | (44) | 66,216 | ||||||||||||
Operating income (loss) | (3,701) | — | (228) | 859 | (3,070) | ||||||||||||
Interest expense, including amortization of deferred financing costs, net | 10,565 | — | — | — | 10,565 | ||||||||||||
Change in fair value of warrant liability | (2,383) | — | — | — | (2,383) | ||||||||||||
Loss before income taxes | (11,883) | — | (228) | 859 | (11,252) | ||||||||||||
Income tax expense (benefit) | (3,917) | 403 | — | 463 | (3,051) | ||||||||||||
Net loss | $ | (7,966) | $ | (403) | $ | (228) | $ | 396 | $ | (8,201) | |||||||
Loss per share: | |||||||||||||||||
Basic | $(0.72) | $(0.01) | $(0.01) | $0.01 | $(0.73) | ||||||||||||
Diluted | $(0.72) | $(0.01) | $(0.01) | $0.01 | $(0.73) | ||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||
Basic | 31,647,131 | — | — | — | 31,647,131 | ||||||||||||
Diluted | 31,647,131 | — | — | — | 31,647,131 | ||||||||||||
For the three months ended | |||||||||||||||||
June 30, 2021 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||
Net loss | (6,885) | (165) | (114) | 962 | (6,202) | ||||||||||||
Other comprehensive loss: | |||||||||||||||||
Foreign currency translation adjustment | 743 | (25) | — | (300) | 418 | ||||||||||||
Comprehensive loss | (6,142) | (190) | (114) | 662 | (5,784) |
For the six months ended | |||||||||||||||||
June 30, 2021 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||
Net loss | (7,966) | (403) | (228) | 396 | (8,201) | ||||||||||||
Other comprehensive loss: | |||||||||||||||||
Foreign currency translation adjustment | (157) | (21) | — | (300) | (478) | ||||||||||||
Comprehensive loss | (8,123) | (424) | (228) | 96 | (8,679) |
Series A Preferred Stock | Series A-1 Preferred Stock | Series B Preferred Stock | Series C Convertible Preferred Stock | Total Temporary Equity | Common Stock | Additional paid-in capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Temporary Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Amount | Shares | Amount | Amount | Amount | Amount | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As Reported | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 7,756,158 | $ | 77,562 | 7,862,107 | $ | 78,621 | 9,090,975 | $ | 90,910 | 2,566,186 | $ | 16,802 | $ | 263,895 | 30,281,520 | $ | 3 | $ | 135,616 | $ | (1,677) | $ | (113,726) | $ | 20,216 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued dividends payable | 248,622 | 2,486 | 266,558 | 2,666 | 224,161 | 2,241 | — | — | 7,393 | — | — | (7,393) | — | — | (7,393) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | (900) | — | (900) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | — | — | — | 315 | — | — | 315 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | (1,081) | (1,081) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 8,004,780 | 80,048 | 8,128,665 | 81,287 | 9,315,136 | 93,151 | 2,566,186 | 16,802 | 271,288 | 30,281,520 | 3 | 128,538 | (2,577) | (114,807) | 11,157 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derecognition of shares | — | — | — | — | — | — | (45,818) | (300) | (300) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued dividends payable | 251,385 | 2,514 | 269,520 | 2,695 | 232,240 | 2,323 | — | — | 7,532 | — | — | (7,532) | — | — | (7,532) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | 743 | — | 743 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | — | — | — | 315 | — | — | 315 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | (6,885) | (6,885) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 8,256,165 | 82,562 | 8,398,185 | 83,982 | 9,547,376 | 95,474 | 2,520,368 | 16,502 | 278,520 | 30,281,520 | 3 | 121,321 | (1,834) | (121,692) | (2,202) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | — | — | — | — | — | — | (45,818) | (300) | (300) | — | — | — | 115 | (3,835) | (3,720) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2021 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | 4 | — | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | (918) | (918) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Adjustments - March 31, 2021 | — | — | — | — | — | — | (45,818) | (300) | (300) | — | — | — | 119 | (4,753) | (4,634) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2021 | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derecognition of shares | — | — | — | — | — | — | 45,818 | 300 | 300 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | (325) | — | (325) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | 683 | 683 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Adjustments - June 30, 2021 | — | — | — | — | — | — | — | — | — | — | — | — | (206) | (4,070) | (4,276) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As Revised | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 7,756,158 | 77,562 | 7,862,107 | 78,621 | 9,090,975 | 90,910 | 2,520,368 | 16,502 | 263,595 | 30,281,520 | 3 | 135,616 | (1,562) | (117,561) | 16,496 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued dividends payable | 248,622 | 2,486 | 266,558 | 2,666 | 224,161 | 2,241 | — | — | 7,393 | — | — | (7,393) | — | — | (7,393) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | (896) | — | (896) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | — | — | — | 315 | — | — | 315 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | (1,999) | (1,999) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 8,004,780 | 80,048 | 8,128,665 | 81,287 | 9,315,136 | 93,151 | 2,520,368 | 16,502 | 270,988 | 30,281,520 | 3 | 128,538 | (2,458) | (119,560) | 6,523 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued dividends payable | 251,385 | 2,514 | 269,520 | 2,695 | 232,240 | 2,323 | — | — | 7,532 | — | — | (7,532) | — | — | (7,532) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | 418 | — | 418 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | — | — | — | 315 | — | — | 315 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | (6,202) | (6,202) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 8,256,165 | $ | 82,562 | 8,398,185 | $ | 83,982 | 9,547,376 | $ | 95,474 | 2,520,368 | $ | 16,502 | $ | 278,520 | 30,281,520 | $ | 3 | $ | 121,321 | $ | (2,040) | $ | (125,762) | $ | (6,478) |
For the six months ended | |||||||||||||||||
June 30, 2021 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||
Cash flows from operating activities | |||||||||||||||||
Net loss | $ | (7,966) | $ | (403) | $ | (228) | $ | 396 | $ | (8,201) | |||||||
Adjustments to reconcile net loss to net cash used in operating activities | |||||||||||||||||
Depreciation and amortization | 25,507 | — | — | (42) | 25,465 | ||||||||||||
Amortization of deferred financing costs | 1,047 | — | — | — | 1,047 | ||||||||||||
Deferred income taxes | (4,308) | 237 | — | 694 | (3,377) | ||||||||||||
Non-cash foreign currency loss | 77 | — | — | — | 77 | ||||||||||||
Share-based compensation | 630 | — | — | — | 630 | ||||||||||||
Provision for doubtful accounts | 11 | — | — | — | 11 | ||||||||||||
Change in fair value of warrant liability | (2,383) | — | — | — | (2,383) | ||||||||||||
Change in operating assets and liabilities, net of operating assets and liabilities acquired: | |||||||||||||||||
Accounts receivable | (7,049) | — | — | (109) | (7,158) | ||||||||||||
Inventories | (4,089) | — | — | — | (4,089) | ||||||||||||
Prepaid expenses and other receivables | (9,016) | — | — | (109) | (9,125) | ||||||||||||
Accounts payable and accrued liabilities | (6,103) | 166 | 228 | (563) | (6,272) | ||||||||||||
Deferred revenue | (671) | — | — | — | (671) | ||||||||||||
Income taxes payable | (32) | — | — | (267) | (299) | ||||||||||||
Net cash used in operating activities | $ | (14,345) | $ | — | $ | — | $ | — | $ | (14,345) | |||||||
Net cash used in investing activities | $ | (5,973) | $ | — | $ | — | $ | — | $ | (5,973) | |||||||
Net cash provided by financing activities | $ | 18,375 | $ | — | $ | 18,375 | |||||||||||
Effect of exchange rate change on cash and restricted cash | (82) | — | — | — | (82) | ||||||||||||
Change in cash and restricted cash | (2,025) | — | — | — | (2,025) | ||||||||||||
Cash and restricted cash, beginning of period | 10,693 | — | — | — | 10,693 | ||||||||||||
Cash and restricted cash, end of period | $ | 8,668 | $ | — | $ | — | $ | — | $ | 8,668 | |||||||
September 30, 2021 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||
Assets | |||||||||||||||||
Current assets | |||||||||||||||||
Cash | $ | 72,689 | $ | — | $ | — | $ | — | $ | 72,689 | |||||||
Accounts receivable, net | 52,638 | — | — | 257 | 52,895 | ||||||||||||
Inventories, net | 12,147 | — | — | — | 12,147 | ||||||||||||
Prepaid expenses and other receivables | 14,540 | — | — | 420 | 14,960 | ||||||||||||
Income taxes receivable | 418 | — | — | 286 | 704 | ||||||||||||
Total current assets | 152,432 | — | — | 963 | 153,395 | ||||||||||||
Non-current assets | |||||||||||||||||
Restricted cash | 367 | — | — | — | 367 | ||||||||||||
Property and equipment, net | 12,630 | — | — | — | 12,630 | ||||||||||||
Intangibles assets, net | 212,633 | — | — | (945) | 211,688 | ||||||||||||
Goodwill | 382,190 | — | — | 1,453 | 383,643 | ||||||||||||
Operating lease right-of-use assets | 114 | — | — | — | 114 | ||||||||||||
Other long-term assets | 458 | — | — | — | 458 | ||||||||||||
Total assets | $ | 760,824 | $ | — | $ | — | $ | 1,471 | $ | 762,295 | |||||||
Liabilities and stockholders’ equity | |||||||||||||||||
Current liabilities | |||||||||||||||||
Accounts payable | $ | 20,522 | $ | — | $ | — | $ | — | $ | 20,522 | |||||||
Accrued liabilities | 26,362 | — | — | 1,143 | 27,505 | ||||||||||||
Income taxes payable | 706 | — | — | (110) | 596 | ||||||||||||
Current portion of operating lease liabilities | 528 | — | — | — | 528 | ||||||||||||
Deferred revenue | 6,797 | — | — | — | 6,797 | ||||||||||||
Current portion of long-term debt and other borrowings, net | 3,153 | — | — | — | 3,153 | ||||||||||||
Total current liabilities | 58,068 | — | — | 1,033 | 59,101 | ||||||||||||
Non-current liabilities | |||||||||||||||||
Deferred tax liabilities | 34,580 | 1,419 | — | 379 | 36,378 | ||||||||||||
Due to related parties | 1,122 | — | — | — | 1,122 | ||||||||||||
Warrant Liability | 273 | — | — | — | 273 | ||||||||||||
Long-term portion of capital lease obligations | 304 | — | — | — | 304 | ||||||||||||
Long-term debt | 378,356 | — | — | — | 378,356 | ||||||||||||
Other long-term liabilities | 4,154 | 1,986 | 1,142 | (83) | 7,199 | ||||||||||||
Total liabilities | $ | 476,857 | $ | 3,405 | $ | 1,142 | $ | 1,329 | $ | 482,733 | |||||||
Stockholders’ equity | |||||||||||||||||
Common stock | 7 | — | — | — | 7 | ||||||||||||
Additional paid-in capital | 413,316 | — | — | (331) | 412,985 | ||||||||||||
Accumulated other comprehensive loss | (3,156) | (53) | — | (86) | (3,295) | ||||||||||||
Accumulated deficit | (126,200) | (3,352) | (1,142) | 559 | (130,135) | ||||||||||||
Total stockholders’ equity | $ | 283,967 | $ | (3,405) | $ | (1,142) | $ | 142 | $ | 279,562 | |||||||
Total liabilities and stockholders’ equity | $ | 760,824 | $ | — | $ | — | $ | 1,471 | $ | 762,295 |
For the three months ended | |||||||||||||||||
September 30, 2021 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||
Revenue | |||||||||||||||||
Services | $ | 48,428 | $ | — | $ | — | $ | 55 | $ | 48,483 | |||||||
Products | 19,450 | — | — | — | 19,450 | ||||||||||||
Total revenue | 67,878 | — | — | 55 | 67,933 | ||||||||||||
Cost of revenue | |||||||||||||||||
Cost of services | 17,379 | — | — | (9) | 17,370 | ||||||||||||
Cost of products | 17,585 | — | — | — | 17,585 | ||||||||||||
Total cost of revenue (exclusive of depreciation and amortization shown separately below) | 34,964 | — | — | (9) | 34,955 | ||||||||||||
Operating expenses | |||||||||||||||||
Selling, general and administrative | 26,001 | — | 114 | (1) | 26,114 | ||||||||||||
Depreciation and amortization | 12,440 | — | — | (21) | 12,419 | ||||||||||||
Total operating expenses | 38,441 | — | 114 | (22) | 38,533 | ||||||||||||
Operating loss | (5,527) | — | (114) | 86 | (5,555) | ||||||||||||
Interest expense, including amortization of deferred financing costs, net | 5,589 | — | — | — | 5,589 | ||||||||||||
Change in fair value of warrant liability | (2,898) | — | — | — | (2,898) | ||||||||||||
Loss before income taxes | (8,218) | — | (114) | 86 | (8,246) | ||||||||||||
Income tax expense (benefit) | (3,710) | 299 | — | (462) | (3,873) | ||||||||||||
Net loss | $ | (4,508) | $ | (299) | $ | (114) | $ | 548 | $ | (4,373) | |||||||
Loss per share: | |||||||||||||||||
Basic | $(0.26) | $(0.01) | $0.00 | $0.02 | $(0.26) | ||||||||||||
Diluted | $(0.26) | $(0.01) | $0.00 | $0.02 | $(0.26) | ||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||
Basic | 32,098,715 | — | — | — | 32,098,715 | ||||||||||||
Diluted | 32,098,715 | — | — | — | 32,098,715 | ||||||||||||
For the nine months ended | |||||||||||||||||
September 30, 2021 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||
Revenue | |||||||||||||||||
Services | $ | 139,866 | $ | — | $ | — | $ | 165 | $ | 140,031 | |||||||
Products | 44,053 | — | — | — | 44,053 | ||||||||||||
Total revenue | 183,919 | — | — | 165 | 184,084 | ||||||||||||
Cost of revenue | |||||||||||||||||
Cost of services | 51,417 | — | — | (479) | 50,938 | ||||||||||||
Cost of products | 37,258 | — | — | (235) | 37,023 | ||||||||||||
Total cost of revenue (exclusive of depreciation and amortization shown separately below) | 88,675 | — | — | (714) | 87,961 | ||||||||||||
Operating expenses | |||||||||||||||||
Selling, general and administrative | 66,525 | — | 342 | (3) | 66,864 | ||||||||||||
Depreciation and amortization | 37,947 | — | — | (63) | 37,884 | ||||||||||||
Total operating expenses | 104,472 | — | 342 | (66) | 104,748 | ||||||||||||
Operating loss | (9,228) | — | (342) | 945 | (8,625) | ||||||||||||
Interest expense, including amortization of deferred financing costs, net | 16,155 | — | — | — | 16,155 | ||||||||||||
Change in fair value of warrant liability | (5,281) | — | — | — | (5,281) | ||||||||||||
Loss before income taxes | (20,102) | — | (342) | 945 | (19,499) | ||||||||||||
Income tax expense (benefit) | (7,628) | 702 | — | 1 | (6,925) | ||||||||||||
Net loss | $ | (12,474) | $ | (702) | $ | (342) | $ | 944 | $ | (12,574) | |||||||
Loss per share: | |||||||||||||||||
Basic | $(0.98) | $(0.02) | $(0.01) | $0.03 | $(0.98) | ||||||||||||
Diluted | $(0.98) | $(0.02) | $(0.01) | $0.03 | $(0.98) | ||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||
Basic | 31,799,313 | — | — | — | 31,799,313 | ||||||||||||
Diluted | 31,799,313 | — | — | — | 31,799,313 | ||||||||||||
For the three months ended | |||||||||||||||||
September 30, 2021 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||
Net loss | $ | (4,508) | $ | (299) | $ | (114) | $ | 548 | $ | (4,373) | |||||||
Other comprehensive loss: | |||||||||||||||||
Foreign currency translation adjustment | (1,322) | 67 | — | — | (1,255) | ||||||||||||
Comprehensive loss | $ | (5,830) | $ | (232) | $ | (114) | $ | 548 | $ | (5,628) |
For the nine months ended | |||||||||||||||||
September 30, 2021 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||
Net loss | $ | (12,474) | $ | (702) | $ | (342) | $ | 944 | $ | (12,574) | |||||||
Other comprehensive loss: | |||||||||||||||||
Foreign currency translation adjustment | (1,479) | 46 | — | (300) | (1,733) | ||||||||||||
Comprehensive loss | $ | (13,953) | $ | (656) | $ | (342) | $ | 644 | $ | (14,307) |
Series A Preferred | Series A-1 | Series B Preferred | Series C Convertible | Total | Common Stock | Additional | Accumulated | Accumulated | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock | Preferred Stock | Stock | Preferred Stock | Temporary | paid-in | Other | Deficit | Stockholders’ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | capital | Comprehensive | Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (Loss) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Temporary Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Amount | Shares | Amount | Amount | Amount | Amount | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As Reported | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 7,756,158 | $ | 77,562 | 7,862,107 | $ | 78,621 | 9,090,975 | $ | 90,910 | 2,566,186 | $ | 16,802 | $ | 263,895 | 30,281,520 | $ | 3 | $ | 135,616 | $ | (1,677) | $ | (113,726) | $ | 20,216 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued dividends payable | 248,622 | 2,486 | 266,558 | 2,666 | 224,161 | 2,241 | — | — | 7,393 | — | — | (7,393) | — | — | (7,393) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | (900) | — | (900) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | — | — | — | 315 | — | — | 315 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | (1,081) | (1,081) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 8,004,780 | 80,048 | 8,128,665 | 81,287 | 9,315,136 | 93,151 | 2,566,186 | 16,802 | 271,288 | 30,281,520 | 3 | 128,538 | (2,577) | (114,807) | 11,157 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derecognition of shares | — | — | — | — | — | — | (45,818) | (300) | (300) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued dividends payable | 251,385 | 2,514 | 269,520 | 2,695 | 232,240 | 2,323 | — | — | 7,532 | — | — | (7,532) | — | — | (7,532) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | 743 | — | 743 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | — | — | — | 315 | — | — | 315 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | (6,885) | (6,885) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 8,256,165 | 82,562 | 8,398,185 | 83,982 | 9,547,376 | 95,474 | 2,520,368 | 16,502 | 278,520 | 30,281,520 | 3 | 121,321 | (1,834) | (121,692) | (2,202) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued dividends payable | 265,602 | 2,656 | 287,998 | 2,880 | 236,142 | 2,361 | — | — | 7,897 | — | — | (7,897) | — | — | (7,897) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | (1,322) | — | (1,322) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | — | — | — | (3,519) | — | — | (3,519) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to and conversions of preferred stock | (8,521,767) | (85,218) | (8,686,183) | (86,862) | (9,783,518) | (97,835) | (2,520,368) | (16,502) | (286,417) | 7,120,368 | 1 | 56,502 | — | — | 56,503 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CTAC shares recapitalized, net of equity issuance costs of $15,912 | — | — | — | — | — | — | — | — | — | 10,373,491 | 1 | 6,456 | — | — | 6,457 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of KORE warrants | — | — | — | — | — | — | — | — | — | 1,365,612 | 10,663 | — | — | 10,663 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private offering and merger financing, net of equity issuance costs of $7,718 | — | — | — | — | — | — | — | — | — | 22,686,326 | 2 | 217,280 | — | — | 217,282 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity portion of convertible debt, net of issuance costs of $224 | — | — | — | — | — | — | — | — | — | — | — | 12,510 | — | — | 12,510 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | (4,508) | (4,508) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | — | — | — | — | — | — | — | — | — | 71,827,317 | 7 | 413,316 | (3,156) | (126,200) | 283,967 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjustments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2020 | — | — | — | — | — | — | (45,818) | (300) | (300) | — | — | — | 115 | (3,835) | (3,720) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | 4 | — | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | (918) | (918) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Adjustments - March 31, 2021 | — | — | — | — | — | — | (45,818) | (300) | (300) | — | — | — | 119 | (4,753) | (4,634) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derecognition of shares | — | — | — | — | — | — | 45,818 | 300 | 300 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | (325) | — | (325) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | 683 | 683 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Adjustments - June 30, 2021 | — | — | — | — | — | — | — | — | — | — | — | — | (206) | (4,070) | (4,276) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | 67 | — | 67 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private offering and merger financing | — | — | — | — | — | — | — | — | — | — | — | (331) | — | — | (331) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | 135 | 135 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Adjustments - September 30, 2021 | — | — | — | — | — | — | — | — | — | — | — | (331) | (139) | (3,935) | (4,405) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As Revised | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 7,756,158 | 77,562 | 7,862,107 | 78,621 | 9,090,975 | 90,910 | 2,520,368 | 16,502 | 263,595 | 30,281,520 | 3 | 135,616 | (1,562) | (117,561) | 16,496 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued dividends payable | 248,622 | 2,486 | 266,558 | 2,666 | 224,161 | 2,241 | — | — | 7,393 | — | — | (7,393) | — | — | (7,393) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | (896) | — | (896) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | — | — | — | 315 | — | — | 315 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | (1,999) | (1,999) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 8,004,780 | 80,048 | 8,128,665 | 81,287 | 9,315,136 | 93,151 | 2,520,368 | 16,502 | 270,988 | 30,281,520 | 3 | 128,538 | (2,458) | (119,560) | 6,523 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued dividends payable | 251,385 | 2,514 | 269,520 | 2,695 | 232,240 | 2,323 | — | — | 7,532 | — | — | (7,532) | — | — | (7,532) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | 418 | — | 418 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | — | — | — | 315 | — | — | 315 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | (6,202) | (6,202) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 8,256,165 | 82,562 | 8,398,185 | 83,982 | 9,547,376 | 95,474 | 2,520,368 | 16,502 | 278,520 | 30,281,520 | 3 | 121,321 | (2,040) | (125,762) | (6,478) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued dividends payable | 265,602 | 2,656 | 287,998 | 2,880 | 236,142 | 2,361 | — | — | 7,897 | — | — | (7,897) | — | — | (7,897) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | (1,255) | — | (1,255) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | — | — | — | (3,519) | — | — | (3,519) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distributions to and conversions of preferred stock | (8,521,767) | (85,218) | (8,686,183) | (86,862) | (9,783,518) | (97,835) | (2,520,368) | (16,502) | (286,417) | 7,120,368 | 1 | 56,502 | — | — | 56,503 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CTAC shares recapitalized, net of equity issuance costs of $15,912 | — | — | — | — | — | — | — | — | — | 10,373,491 | 1 | 6,456 | — | — | 6,457 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of KORE warrants | — | — | — | — | — | — | — | — | — | 1,365,612 | — | 10,663 | — | — | 10,663 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private offering and merger financing, net of equity issuance costs of $7,718 | — | — | — | — | — | — | — | — | — | 22,686,326 | 2 | 216,949 | — | — | 216,951 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity portion of convertible debt, net of issuance costs of $224 | — | — | — | — | — | — | — | — | — | — | — | 12,510 | — | — | 12,510 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | (4,373) | (4,373) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2021 | — | — | — | — | — | — | — | — | — | 71,827,317 | $ | 7 | $ | 412,985 | $ | (3,295) | $ | (130,135) | $ | 279,562 |
For nine months ended | |||||||||||||||||
September 30, 2021 | |||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||
Cash flows from operating activities | |||||||||||||||||
Net loss | $ | (12,474) | $ | (702) | $ | (342) | $ | 944 | $ | (12,574) | |||||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities | |||||||||||||||||
Depreciation and amortization | 37,947 | — | — | (63) | 37,884 | ||||||||||||
Amortization of deferred financing costs | 1,569 | — | — | — | 1,569 | ||||||||||||
Deferred income taxes | (8,197) | 293 | — | 463 | (7,441) | ||||||||||||
Non-cash foreign currency loss (gain) | (163) | — | — | — | (163) | ||||||||||||
Stock-based compensation | 4,564 | — | — | — | 4,564 | ||||||||||||
Provision for doubtful accounts | 117 | — | — | — | 117 | ||||||||||||
Change in fair value of warrant liability | (5,281) | — | — | — | (5,281) | ||||||||||||
Change in operating assets and liabilities, net of operating assets and liabilities acquired: | |||||||||||||||||
Accounts receivable | (12,792) | — | — | (164) | (12,956) | ||||||||||||
Inventories | (6,461) | — | — | — | (6,461) | ||||||||||||
Prepaid expenses and other current assets | (5,054) | — | — | (51) | (5,105) | ||||||||||||
Accounts payable and accrued liabilities | (2,366) | 409 | 342 | (749) | (2,364) | ||||||||||||
Deferred revenue | (911) | — | — | — | (911) | ||||||||||||
Income taxes payable | 63 | — | — | (380) | (317) | ||||||||||||
Net cash used in operating activities | $ | (9,439) | $ | — | $ | — | $ | — | $ | (9,439) | |||||||
Net cash used in investing activities | $ | (9,782) | $ | — | $ | — | $ | — | $ | (9,782) | |||||||
Net cash provided by financing activities | $ | 81,772 | $ | — | $ | — | $ | — | $ | 81,772 | |||||||
Effect of exchange rate change on cash | (188) | (188) | |||||||||||||||
Change in cash and restricted cash | 62,363 | — | — | — | 62,363 | ||||||||||||
Cash and restricted cash, beginning of period | $ | 10,693 | — | — | — | $ | 10,693 | ||||||||||
Cash and restricted cash, end of period | $ | 73,056 | $ | — | $ | — | $ | — | $ | 73,056 | |||||||
Net Sales | Long Lived Assets* | ||||||||||||||||
December 31 | December 31 | ||||||||||||||||
(in Thousands, USD) | 2022 | 2021 | 2022 | 2021 | |||||||||||||
United States | $ | 211,599 | $ | 187,392 | $ | 152,361 | $ | 141,511 | |||||||||
Other Countries | 56,848 | 61,043 | 62,062 | 73,279 | |||||||||||||
Total | $ | 268,447 | $ | 248,435 | $ | 214,423 | $ | 214,790 |
(in thousands) | ||||
Cash, including closing cash and working capital adjustments | $ | 47,336 | ||
Fair value of KORE common stock issued to sellers (4,212,246 shares) | 23,294 | |||
Total consideration | $ | 70,630 | ||
Assets acquired: | ||||
Cash | 1,996 | |||
Accounts receivable | 3,115 | |||
Inventories | 1,323 | |||
Prepaid expenses and other receivables | 821 | |||
Property and equipment | 201 | |||
Intangible assets | 30,060 | |||
Total Assets acquired | 37,516 | |||
Liabilities assumed: | ||||
Deferred tax liabilities | 7,611 | |||
Accounts payable and accrued liabilities | 2,607 | |||
Liabilities assumed | 10,218 | |||
Net identifiable assets acquired | 27,298 | |||
Goodwill (excess of consideration transferred over net identifiable assets acquired) | $ | 43,332 | ||
December 31, 2022 | December 31, 2021 | ||||||||||
Assets | |||||||||||
Non-current assets | |||||||||||
Investment in subsidiaries | $ | 192,549 | $ | 256,725 | |||||||
Total non-current assets | 192,549 | 256,725 | |||||||||
Total assets | $ | 192,549 | $ | 256,725 | |||||||
Liabilities and stockholders’ equity | |||||||||||
Long-term liabilities | |||||||||||
Warrant liability | 33 | 286 | |||||||||
Total liabilities | $ | 33 | $ | 286 | |||||||
Stockholders’ equity | |||||||||||
Common stock, voting; par value $0.0001 per share; 315,000,000 shares authorized, 76,292,241 and 72,027,743 shares issued and outstanding at December 31, 2022, and December 31, 2021 | 8 | 7 | |||||||||
Additional paid-in capital | 435,293 | 401,690 | |||||||||
Accumulated other comprehensive loss | (6,390) | (3,463) | |||||||||
Accumulated deficit | (236,394) | (141,795) | |||||||||
Total stockholders’ equity | $ | 192,517 | $ | 256,439 | |||||||
Total liabilities and stockholders’ equity | $ | 192,550 | $ | 256,725 |
December 31, 2021 | December 31, 2020 | |||||||
Assets | ||||||||
Non-current assets | ||||||||
Investment in subsidiaries | $ | 261,012 | $ | 300,055 | ||||
Total non-current assets | 261,012 | 300,055 | ||||||
Total assets | $ | 261,012 | $ | 300,055 | ||||
Liabilities, temporary equity and stockholders’ equity | ||||||||
Long-term liabilities | ||||||||
Warrant liability | $ | 286 | $ | 15,944 | ||||
Total liabilities | 286 | 15,944 | ||||||
Temporary equity | ||||||||
Series A Preferred Stock; par value $1,000 per share; NaN authorized, issued and outstanding at December 31, 2021; 7,765,229 shares authorized, and 7,756,158 shares issued and outstanding at December 31, 2020 | 0 | 77,562 | ||||||
Series A-1 Preferred Stock; par value $1,000 per share; NaN authorized, issued and outstanding at December 31, 2021; 10,480,538 shares authorized, 7,862,107 shares issued and outstanding at December 31, 2020 | 0 | 78,621 | ||||||
Series B Preferred Stock; par value $1,000 per share; NaN authorized, issued and outstanding at December 31, 2021; 9,090,975 shares authorized, 9,090,975 shares issued and outstanding at December 31, 2020 | 0 | 90,910 | ||||||
Series C Convertible Preferred Stock; par value $1,000 per share; NaN authorized, issued and outstanding at December 31, 2021; 6,872,894 shares authorized, 2,566,186 shares issued and outstanding at December 31, 2020 | 0 | 16,802 | ||||||
Total temporary equity | 0 | 263,895 | ||||||
Stockholders’ equity | ||||||||
Common stock, voting; par value $0.0001 per share; 315,000,000 shares authorized, 72,027,743 shares issued and outstanding at December 31, 2021; 55,659,643 shares authorized, 30,281,520 shares issued and outstanding at December 31, 2020 | 7 | 3 | ||||||
Additional paid-in capital | 401,688 | 135,616 | ||||||
Accumulated other comprehensive loss | (3,331 | ) | (1,677 | ) | ||||
Accumulated deficit | (137,638 | ) | (113,726 | ) | ||||
Total stockholders’ equity | 260,726 | 20,216 | ||||||
Total liabilities, temporary equity and stockholders’ equity | $ | 261,012 | $ | 300,055 | ||||
For the years ended | December 31, 2022 | December 31, 2021 | ||||||||||||
Equity in net loss of unconsolidated subsidiaries | $ | (94,759) | $ | (29,892) | ||||||||||
Change in fair value of warrant liability | (254) | (5,267) | ||||||||||||
Loss before income taxes | (94,505) | (24,625) | ||||||||||||
Net loss | $ | (94,505) | $ | (24,625) | ||||||||||
Other comprehensive loss: | ||||||||||||||
Foreign currency translation adjustment | (2,927) | (1,987) | ||||||||||||
Comprehensive loss | $ | (97,432) | $ | (26,612) |
For the years ended | December 31, 2021 | December 31, 2020 | December 31, 2019 | |||||||||
Equity in net loss of unconsolidated subsidiaries | $ | (29,177 | ) | $ | (27,716 | ) | $ | (23,678 | ) | |||
Change in fair value of warrant liability | (5,267 | ) | 7,485 | (235 | ) | |||||||
Loss before income taxes | (23,910 | ) | (35,201 | ) | (23,443 | ) | ||||||
Net loss | $ | (23,910 | ) | $ | (35,201 | ) | $ | (23,443 | ) | |||
Other comprehensive loss: | ||||||||||||
Foreign currency translation adjustment | (1,654 | ) | 2,116 | 517 | ||||||||
Comprehensive loss | $ | (25,564 | ) | $ | (33,085 | ) | $ | (22,926 | ) | |||
For the years ended | December 31, 2022 | December 31, 2021 | ||||||||||||
Cash flows from operating activities | ||||||||||||||
Net loss | $ | (94,505) | $ | (24,625) | ||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities | ||||||||||||||
Equity in net loss of unconsolidated subsidiaries | 94,759 | 29,892 | ||||||||||||
Change in fair value of warrant liability | (254) | (5,267) | ||||||||||||
Cash provided by operating activities | $ | — | $ | — | ||||||||||
Cash flows from investing activities | ||||||||||||||
Distribution from subsidiary | — | 5,947 | ||||||||||||
Cash provided by investing activities | $ | — | $ | 5,947 | ||||||||||
Issuance of common stock, net of transaction costs | — | 223,968 | ||||||||||||
Settlement of preferred stock | — | (229,915) | ||||||||||||
Cash used in financing activities | $ | — | $ | (5,947) | ||||||||||
Effect of exchange rate change on cash and restricted | — | — | ||||||||||||
Change in cash and restricted cash | — | — | ||||||||||||
Cash and restricted cash, beginning of year | — | — | ||||||||||||
Cash and restricted cash, end of year | $ | — | $ | — | ||||||||||
Non-cash investing and financing activities: | ||||||||||||||
Fair value of KORE common stock issued pursuant to acquisition | $ | 23,295 | $ | — | ||||||||||
Share-based payment awards issued to employees of subsidiaries | 10,296 | 1,839 |
For the years ended | December 31, 2021 | December 31, 2020 | December 31, 2019 | |||||||||
Cash flows from operating activities | ||||||||||||
Net loss | $ | (23,910 | ) | $ | (35,201 | ) | $ | (23,443 | ) | |||
Adjustments to reconcile net loss to net cash provided by operating activities | — | — | ||||||||||
Equity in net loss of unconsolidated subsidiaries | 29,177 | 27,716 | 23,678 | |||||||||
Change in fair value of warrant liability | (5,267 | ) | 7,485 | (235 | ) | |||||||
Cash provided by operating activities | $ | 0 | $ | 0 | $ | 0 | ||||||
Cash flows from investing activities | ||||||||||||
Distribution from subsidiary | 5,947 | 200 | 80 | |||||||||
Cash provided by investing activities | $ | 5,947 | $ | 200 | $ | 80 | ||||||
Cash flows from financing activities | ||||||||||||
Repurchase of common stock | 0 | (200 | ) | (80 | ) | |||||||
Issuance of common stock, net of transaction costs | 223,968 | — | — | |||||||||
Settlement of preferred stock | (229,915 | ) | — | — | ||||||||
Cash used in financing activities | $ | (5,947 | ) | $ | (200 | ) | $ | (80 | ) | |||
Effect of exchange rate change on cash and cash equivalents | 0 | 0 | 0 | |||||||||
Change in cash and cash equivalents and restricted cash | 0 | 0 | 0 | |||||||||
Cash and cash equivalents and restricted cash, beginning of | 0 | 0 | 0 | |||||||||
Cash and cash equivalents and restricted cash, end of year | $ | 0 | $ | 0 | $ | 0 | ||||||
Non-cash investing and financing activities: | ||||||||||||
Equity issued for acquisition of Integron, LLC | $ | 0 | $ | 0 | $ | 7,000 | ||||||
Share-based payment awards issued to employees of subsidiaries | $ | 1,839 | $ | 1,161 | $ | 1,682 | ||||||
(i)Basis of presentation and business combination |
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
ITEM 11. EXECUTIVE COMPENSATION |
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED PERSON TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES |
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES |
Exhibit Number | Description | |||||
2.1 | ||||||
2.2 | ||||||
2.3 | ||||||
3.1 | ||||||
3.2 | ||||||
4.1 | ||||||
4.2 | ||||||
4.3 | ||||||
4.4 | ||||||
10.1 | ||||||
10.2 | ||||||
10.3 | ||||||
10.4 | ||||||
10.5 | ||||||
10.6 | ||||||
10.7 |
10.8 | ||||||
10.9 | ||||||
10.10 | ||||||
10.11 | ||||||
10.12 | ||||||
10.13 | ||||||
10.14 | ||||||
10.15 | ||||||
10.16 | ||||||
10.17 | ||||||
21.1 | ||||||
23.1 | ||||||
31.1 | ||||||
31.2 | ||||||
32.1 | ||||||
32.2 |
KORE GROUP HOLDINGS, INC. | ||||||||
By: | /s/ Romil Bahl | |||||||
Romil Bahl | ||||||||
President, Chief Executive Officer and Director |
Signature | Title | Date | |||||||||||||
/s/ Romil Bahl | President, Chief Executive Officer and Director | ||||||||||||||
Romil Bahl | (Principal Executive Officer) | ||||||||||||||
/s/ Paul Holtz | EVP, Chief Financial Officer and Treasurer | ||||||||||||||
Paul Holtz | (Principal Financial Officer and Principal Accounting Officer) | ||||||||||||||
/s/ Cheemin Bo-Linn | Director | ||||||||||||||
Cheemin Bo-Linn | |||||||||||||||
/s/ Timothy Donahue | Director | ||||||||||||||
Timothy Donahue | |||||||||||||||
/s/ H. Paulett Eberhart | Director | ||||||||||||||
H. Paulett Eberhart | |||||||||||||||
/s/ James Geisler | Director | ||||||||||||||
James Geisler | |||||||||||||||
/s/ Robert P. MacInnis | Director | ||||||||||||||
Robert P. MacInnis | |||||||||||||||
/s/ Mark Neporent | Director | ||||||||||||||
Mark Neporent | |||||||||||||||
/s/ Michael K. Palmer | Director | ||||||||||||||
Michael K. Palmer | |||||||||||||||
/s/ Tomer Yosef-Or | Director | ||||||||||||||
Tomer Yosef-Or |