Document And Entity Information
Document And Entity Information | 6 Months Ended |
Jun. 30, 2021 | |
Document Information Line Items | |
Entity Registrant Name | BORQS TECHNOLOGIES, INC. |
Document Type | 6-K |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
Entity Central Index Key | 0001650575 |
Document Period End Date | Jun. 30, 2021 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | Q2 |
Unaudited Consolidated Balance
Unaudited Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Jun. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 8,792 | $ 1,199 |
Accounts receivable | 3,258 | 3,289 |
Inventories - net | 12,787 | 4,209 |
Prepaid expenses and other current assets, net | 12,603 | 20,728 |
Current assets held for sale | 5,852 | |
Total current assets | 37,440 | 35,277 |
Non-current assets: | ||
Property and equipment, net | 255 | 158 |
Intangible assets, net | 2,830 | 7,859 |
Right of Use Asset | 681 | 632 |
Deferred tax assets | 974 | 969 |
Non-current assets held for sale | 10,876 | |
Total non-current assets | 4,740 | 20,494 |
Total assets | 42,180 | 55,771 |
Current liabilities: | ||
Accounts payable | 7,157 | 22,171 |
Accrued expenses and other payables | 15,242 | 30,674 |
Advances from customers | 4,534 | 5,314 |
Lease Liabilities- current | 681 | 818 |
Amount due to related parties-current | 3,133 | 3,484 |
Income tax payable | 266 | 1,410 |
Long-term institution borrowings - current portion | 11,750 | |
Current liabilities held for sale | 17,117 | |
Total current liabilities | 31,013 | 92,738 |
Non-current liabilities: | ||
Unrecognized tax benefits | 2,146 | 1,987 |
Deferred tax liability | 950 | 1,832 |
Deferred revenues | ||
Other non-current liabilities | ||
Long-term payable | 217 | 119 |
Deferred government grants | 247 | |
Non-current liabilities held for sale | 1,724 | |
Total non-current liabilities | 3,560 | 5,662 |
Total liabilities | 34,573 | 98,400 |
Commitments and contingencies | ||
Shareholders’ equity | ||
Additional paid-in capital | 232,932 | 174,941 |
Subscription receivables | (19,367) | (15,287) |
Statutory reserve | 1,872 | 2,097 |
Accumulated deficit | (207,717) | (199,358) |
Accumulated other comprehensive loss | (1,407) | |
Total Borqs Technologies, Inc. shareholders’ equity | 7,720 | (39,014) |
Noncontrolling interest | (113) | (3,615) |
Total shareholders’ equity | 7,607 | (42,629) |
Total liabilities and shareholders’ equity | $ 42,180 | $ 55,771 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statement of Operations - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Net revenues: | ||
Software | $ 5,490 | $ 4,804 |
Hardware | 7,007 | 6,212 |
Total net revenues | 12,497 | 11,016 |
Cost of revenues | ||
Software | (4,216) | (3,568) |
Hardware | (6,501) | (5,964) |
Total cost of revenues | (10,717) | (9,532) |
Total gross (loss) profit | 1,780 | 1,484 |
Operating expenses: | ||
Sales and marketing expenses | (218) | (375) |
General and administrative expenses | (24,743) | (14,086) |
Research and development expenses | (3,285) | (3,471) |
Total operating expenses | (28,246) | (17,932) |
Other operating income | ||
Operating income (loss) | (26,466) | (16,448) |
Interest income | 3 | 14 |
Interest expense | (2,694) | (1,473) |
Other income | 31 | 4 |
Other expense | (219) | (12) |
Foreign exchange income (loss) | (222) | 207 |
Income (loss) from continuing operations, before income taxes | (29,567) | (17,708) |
Income tax (expense) benefit | 6 | |
Net income (loss) from continuing operations | (29,567) | (17,702) |
Discontinued operation | ||
(Loss) income from operations of discontinued entities | (3,031) | |
Income tax benefit (expense) | ||
Net (Loss) income on discontinued operations | (3,031) | |
Net income (loss) | (29,567) | (20,733) |
Less: Net income (loss) attributable to noncontrolling interest | 1 | (1,047) |
Net income (loss) attributable to Borqs Technologies, Inc. | $ (29,568) | $ (19,686) |
Summary of reconciliation of EB
Summary of reconciliation of EBITDA and adjusted EBITDA | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Before Interest Taxes Depreciation And Amortization [Abstract] | |
Summary of reconciliation of EBITDA and adjusted EBITDA | Summary discussions on the results of the first half of 2021 Due to the completion of the sale of our Mobile Virtual Network Operator (“MVNO”) Business Unit on October 29, 2020, the Company no longer has a variable interest equity (“VIE”) in its operations as of December 31, 2020 and also there were no assets or liabilities held for sale for the interim period ended June 30, 2021. Our revenue for the six months ended June 30, 2021 was $12.5 million as compared to $11.0 million for the same period of 2020. The increase in general and administrative expenses in the first half of 2021 was due to stock-based compensation that the Company incurred in lieu of cash payments; and the low levels of sales in 2021, and also in 2020, were due to the negative effects of the COVID-19 global pandemic which directly impacted our business activities and hampered our working capital, when some of our customers significant reduced order from the pre-pandemic levels while some factories and suppliers in China that we worked with were closed during this period of time. Geographically, our sales were mainly from the U.S., India and Europe. For the interim period ended June 30, 2021, our customers in the U.S., India, Europe and China accounted for 30.9%, 30.4%, 27.3% and 11.4% respectively. The below table shows the reconciliation of EBITDA and Adjusted EBITDA from the US-GAAP net losses for the interim periods ended June 30, 2021. For the six months ended June 30 2020 2021 Net income (loss) from continuing operations (17,702 ) (29,567 ) Income tax (expense) benefit 6 - Interest expense (1,459 ) (2,691 ) Depreciation and amortization (1,615 ) (706 ) Other expense (8 ) (188 ) Foreign exchange gain (loss) 207 (222 ) EBITDA (14,833 ) (25,760 ) Impairment of intangible assets (1,375 ) - Non-recurring project costs - (76 ) Stock based compensation (10,699 ) (19,326 ) Stock based financial expenses - (3,556 ) Adjusted EBITDA (2,760 ) (2,802 ) |
Summary of reconciliation of _2
Summary of reconciliation of EBITDA and adjusted EBITDA (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Before Interest Taxes Depreciation And Amortization [Abstract] | |
Schedule of reconciliation of EBITDA and adjusted EBITDA | For the six months ended June 30 2020 2021 Net income (loss) from continuing operations (17,702 ) (29,567 ) Income tax (expense) benefit 6 - Interest expense (1,459 ) (2,691 ) Depreciation and amortization (1,615 ) (706 ) Other expense (8 ) (188 ) Foreign exchange gain (loss) 207 (222 ) EBITDA (14,833 ) (25,760 ) Impairment of intangible assets (1,375 ) - Non-recurring project costs - (76 ) Stock based compensation (10,699 ) (19,326 ) Stock based financial expenses - (3,556 ) Adjusted EBITDA (2,760 ) (2,802 ) |
Summary of reconciliation of _3
Summary of reconciliation of EBITDA and adjusted EBITDA (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Summary of reconciliation of EBITDA and adjusted EBITDA (Details) [Line Items] | ||
Revenue (in Dollars) | $ 12.5 | $ 11 |
U.S [Member] | ||
Summary of reconciliation of EBITDA and adjusted EBITDA (Details) [Line Items] | ||
Sale of percentage | 30.90% | |
India [Member] | ||
Summary of reconciliation of EBITDA and adjusted EBITDA (Details) [Line Items] | ||
Sale of percentage | 30.40% | |
Europe [Member] | ||
Summary of reconciliation of EBITDA and adjusted EBITDA (Details) [Line Items] | ||
Sale of percentage | 27.30% | |
China [Member] | ||
Summary of reconciliation of EBITDA and adjusted EBITDA (Details) [Line Items] | ||
Sale of percentage | 11.40% |
Summary of reconciliation of _4
Summary of reconciliation of EBITDA and adjusted EBITDA (Details) - Schedule of reconciliation of EBITDA and adjusted EBITDA - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule of reconciliation of EBITDA and adjusted EBITDA [Abstract] | ||
Net income (loss) from continuing operations (in Dollars per share) | $ (29,567) | $ (17,702) |
Income tax (expense) benefit | $ 6 | |
Interest expense | (2,691) | (1,459) |
Depreciation and amortization | (706) | (1,615) |
Other expense | (188) | (8) |
Foreign exchange gain (loss) | (222) | 207 |
EBITDA | (25,760) | (14,833) |
Impairment of intangible assets | (1,375) | |
Non-recurring project costs | (76) | |
Stock based compensation | (19,326) | (10,699) |
Stock based financial expenses | (3,556) | |
Adjusted EBITDA | $ (2,802) | $ (2,760) |