Delaware | 7370 | 86-3078783 | ||||||||
(State or other jurisdiction of incorporation or organization) | (Primary Standard Industrial Classification Code Number) | (I.R.S. Employer Identification Number) |
Large accelerated filer | ☐ | Accelerated filer | ||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☒ | |||||||||||
Emerging growth company | ☒ |
Title of each class of securities to be registered | Amount to be registered | Proposed maximum offering price per security | Proposed maximum aggregate offering price | Amount of registration fee(4) | ||||
Common stock(1)(2) | 22,500,000 | $6.32(3) | $142,200,000(3) | $13,181.94 | ||||
Total | $ | $13,181.94 | ||||||
Page | ||||||||
Three months ended | |||||||||||
(In thousands, USD) | March 31, 2023 | March 31, 2022 | |||||||||
Revenue | $ | 65,975 | $ | 68,978 | |||||||
Net loss | (18,490) | (11,572) | |||||||||
Adjusted EBITDA | 13,328 | 15,288 |
Twelve months ended | |||||||||||
(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 |
Total shares transferred | 39,200,000 | |||
Value per share (1) | 10.00 | |||
Total share consideration | $ | 392,000,000 | ||
A-1 Preferred Stock | 86,861,830 | |||
A Preferred Stock | 85,217,671 | |||
B Preferred Stock | 97,835,184 | |||
Option Cash Consideration | 4,075,000 | |||
First LTIP Payment | 1,050,000 | |||
Less: Preferred stock settled in common stock | (40,000,000 | ) | ||
Total cash consideration | $ | 235,039,685 | ||
Total purchase consideration | $ | 627,039,685 | ||
Shares Outstanding | % | |||||||
Maple Stockholders | 39,200 | 54.3 | % | |||||
Total Maple Stockholders | 39,200 | 54.3 | % | |||||
CTAC Public Shares | 3,659 | 5.0 | % | |||||
CTAC Founder Shares | 6,698 | 9.3 | % | |||||
Total CTAC Shares | 10,357 | 14.3 | % | |||||
PIPE investors | 22,686 | 31.4 | % | |||||
Pro Forma KORE Common Stock at June 30, 2021 | 72,243 | 100.0 | % | |||||
As of June 30, 2021 | ||||||||||||||||||||
Maple (Historical) | CTAC (Historical) | Transaction Accounting Adjustments | Pro Forma Combined | |||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | 8,297 | 690 | 259,186 | A | 77,072 | |||||||||||||||
225,000 | B | |||||||||||||||||||
(8,073 | ) | C | ||||||||||||||||||
(25,449 | ) | D | ||||||||||||||||||
(229,915 | ) | E | ||||||||||||||||||
(22,000 | ) | F | ||||||||||||||||||
(1,647 | ) | I | ||||||||||||||||||
93,413 | J | |||||||||||||||||||
(222,430 | ) | K | ||||||||||||||||||
Accounts receivable, net | 47,640 | — | 47,640 | |||||||||||||||||
Inventories, net | 9,864 | — | 9,864 | |||||||||||||||||
Prepaid expenses and other current assets | 14,246 | 524 | 14,770 | |||||||||||||||||
Total current assets | 80,047 | 1,214 | 68,085 | 149,346 | ||||||||||||||||
Non-current assets: | ||||||||||||||||||||
Investments held in Trust Account | — | 259,186 | (259,186 | ) | A | — | ||||||||||||||
Restricted cash | 371 | — | 371 | |||||||||||||||||
Property and equipment, net | 12,606 | — | 12,606 | |||||||||||||||||
Intangible assets, net | 221,990 | — | 221,990 | |||||||||||||||||
Goodwill | 382,428 | — | 382,428 | |||||||||||||||||
Deferred tax asset | 119 | — | 119 | |||||||||||||||||
Other long-term assets | 3,532 | (3,021 | ) | D | 511 | |||||||||||||||
Total non-current assets | 621,046 | 259,186 | (262,207 | ) | 618,025 | |||||||||||||||
TOTAL ASSETS | 701,093 | 260,400 | (194,122 | ) | 767,371 | |||||||||||||||
LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS’ DEFICIT | ||||||||||||||||||||
Revolving credit facility | 22,000 | — | (22,000 | ) | F | — | ||||||||||||||
Accounts payable | 23,181 | 156 | (418 | ) | D | 22,919 | ||||||||||||||
Accrued liabilities | 12,496 | 4,647 | (4,347 | ) | D | 17,839 | ||||||||||||||
1,050 | G | |||||||||||||||||||
4,075 | H | |||||||||||||||||||
(82 | ) | I | ||||||||||||||||||
Income taxes payable | 199 | — | 199 | |||||||||||||||||
Due to related parties | — | 772 | 772 | |||||||||||||||||
Current portion of capital lease obligations | 641 | — | 641 | |||||||||||||||||
Current portion of deferred revenue | 7,074 | — | 7,074 | |||||||||||||||||
Current portion of term loan payable | 3,153 | — | 3,153 | |||||||||||||||||
Total current liabilities | 68,744 | 5,575 | (21,722 | ) | 52,597 |
As of June 30, 2021 | ||||||||||||||||||
Maple (Historical) | CTAC (Historical) | Transaction Accounting Adjustments | Pro Forma Combined | |||||||||||||||
Non-current liabilities: | ||||||||||||||||||
Deferred tax liabilities | 38,474 | — | 38,474 | |||||||||||||||
Due to related parties | 1,565 | — | (1,565 | ) | I | — | ||||||||||||
Warrant liability | 13,561 | 14,704 | (13,561 | ) | E | 450 | ||||||||||||
(14,254 | ) | O | ||||||||||||||||
Capital lease obligations | 362 | — | 362 | |||||||||||||||
Term loan payable, net | 297,773 | — | 297,773 | |||||||||||||||
Convertible note | — | — | 93,413 | J | 93,413 | |||||||||||||
Deferred underwriting commissions | — | 9,071 | (9,071 | ) | C | — | ||||||||||||
Other long-term liabilities | 4,296 | 4,296 | ||||||||||||||||
Total non-current liabilities | 356,031 | 23,775 | 54,962 | 434,768 | ||||||||||||||
TOTAL LIABILITIES | 424,775 | 29,350 | 33,240 | 487,365 | ||||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||
Temporary equity: | ||||||||||||||||||
Common stock subject to possible redemption | — | 226,049 | (226,049 | ) | N | — | ||||||||||||
Series A Preferred Stock | 82,562 | — | (85,218 | ) | E | — | ||||||||||||
2,656 | M | |||||||||||||||||
Series A-1 Preferred Stock | 83,982 | — | (86,862 | ) | E | — | ||||||||||||
2,880 | M | |||||||||||||||||
Series B Preferred Stock | 95,474 | — | (97,835 | ) | E | — | ||||||||||||
2,361) | M | |||||||||||||||||
Series C Preferred Stock | 16,502 | — | (16,502 | ) | E | — | ||||||||||||
Total temporary equity | 278,520 | — | (278,520 | ) | — | |||||||||||||
Stockholders’ equity (deficit): | ||||||||||||||||||
Class A Common Stock | 2 | 1 | 2 | B | 7 | |||||||||||||
2 | N | |||||||||||||||||
3 | E | |||||||||||||||||
(1 | ) | L | ||||||||||||||||
(2 | ) | K | ||||||||||||||||
Class B Common Stock | — | 1 | (1 | ) | L | — | ||||||||||||
Additional paid-in-capital | 121,322 | 18,618 | 224,998 | B | 408,362 | |||||||||||||
(22,877 | ) | D | ||||||||||||||||
226,047 | N | |||||||||||||||||
70,060 | E | |||||||||||||||||
14,254 | O | |||||||||||||||||
(13,617 | ) | L | ||||||||||||||||
(118 | ) | H | ||||||||||||||||
(7,897 | ) | M | ||||||||||||||||
(222,428 | ) | K | ||||||||||||||||
Accumulated other comprehensive loss | (1,834 | ) | — | (1,834 | ) | |||||||||||||
Accumulated deficit | (121,692 | ) | (13,619 | ) | 998 | C | (126,529 | ) | ||||||||||
(828 | ) | D | ||||||||||||||||
(1,050 | ) | G | ||||||||||||||||
(3,957 | ) | H | ||||||||||||||||
13,619 | L | |||||||||||||||||
Total stockholders’ equity (deficit) | (2,202 | ) | 5,001 | 277,207 | 280,006 | |||||||||||||
TOTAL LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS’ EQUITY (DEFICIT) | 701,093 | 260,400 | (194,122 | ) | 767,371 | |||||||||||||
For the Six Months Ended June 30, 2021 | ||||||||||||||||||||
Maple (Historical) | CTAC (Historical) | Transaction Accounting Adjustments | Pro Forma Combined | |||||||||||||||||
Revenue | ||||||||||||||||||||
Revenue | 116,040 | — | — | 116,040 | ||||||||||||||||
Cost of revenues: | ||||||||||||||||||||
Cost of revenues | 53,709 | — | — | 53,709 | ||||||||||||||||
Operating expenses | ||||||||||||||||||||
Selling, general and administrative | 40,525 | 5,460 | (4,209 | ) | BB | 41,146 | ||||||||||||||
(630 | ) | DD | ||||||||||||||||||
Selling, general and administrative - related party | — | 575 | (575 | ) | BB | — | ||||||||||||||
Depreciation and amortization | 25,507 | — | 25,507 | |||||||||||||||||
Total operating expenses | 66,032 | 6,035 | �� | (5,414 | ) | 66,653 | ||||||||||||||
Operating profit (loss) | (3,701 | ) | (6,035 | ) | 5,414 | (4,322 | ) | |||||||||||||
Other income (expense) | ||||||||||||||||||||
Interest expense, including amortization of debt issuance costs, net | (10,565 | ) | — | 601 | EE | (12,717 | ) | |||||||||||||
9 | FF | |||||||||||||||||||
(2,762 | ) | GG | ||||||||||||||||||
Change in fair value of warrant liability | 2,383 | (2,674 | ) | (2,383 | ) | HH | (82 | ) | ||||||||||||
2,592 | II | |||||||||||||||||||
Investment income from Trust Account | — | 13 | (13 | ) | KK | — | ||||||||||||||
Net income (loss) before income taxes | (11,883 | ) | (8,696 | ) | 3,458 | (17,121 | ) | |||||||||||||
Income tax provision (benefit) | ||||||||||||||||||||
Current | 391 | — | 812 | LL | 1,203 | |||||||||||||||
Deferred | (4,308 | ) | — | (4,308 | ) | |||||||||||||||
Total income tax provision (benefit) | (3,917 | ) | — | 812 | (3,105 | ) | ||||||||||||||
Net income (loss) | (7,966 | ) | (8,696 | ) | 2,646 | (14,016 | ) | |||||||||||||
Basic and diluted weighted average shares outstanding of Class A ordinary shares | 227,433 | 26,735,238 | 72,242,919 | |||||||||||||||||
Basic and diluted net income per share, Class A ordinary shares | $ | (100.65 | ) | $ | — | $ | (0.19 | ) | ||||||||||||
Basic and diluted weighted average shares outstanding of Class B ordinary shares | — | 6,479,225 | — | |||||||||||||||||
Basic and diluted net income per share, Class B ordinary shares | — | (1.34 | ) | — |
For the Year Ended December 31, 2020 | ||||||||||||||||||||
Maple (Historical) | CTAC (Historical) | Transaction Accounting Adjustments | Pro Forma Combined | |||||||||||||||||
Revenue | ||||||||||||||||||||
Revenue | 213,760 | — | — | 213,760 | ||||||||||||||||
Cost of revenues: | ||||||||||||||||||||
Cost of revenues | 97,930 | — | — | 97,930 | ||||||||||||||||
Operating expenses | ||||||||||||||||||||
Selling, general and administrative | 72,883 | 515 | 2,100 | AA | 81,893 | |||||||||||||||
819 | BB | |||||||||||||||||||
5,576 | CC | |||||||||||||||||||
Selling, general and administrative - related party | — | 158 | (158 | ) | BB | — | ||||||||||||||
Depreciation and amortization | 52,488 | — | 52,488 | |||||||||||||||||
Total operating expenses | 125,371 | 673 | 8,337 | 134,381 | ||||||||||||||||
Operating profit (loss) | (9,541 | ) | (673 | ) | (8,337 | ) | (18,551 | ) | ||||||||||||
Other income (expense) | ||||||||||||||||||||
Interest expense, including amortization of debt issuance costs, net | (23,493 | ) | 40 | FF | (28,977 | ) | ||||||||||||||
(5,524 | ) | GG | ||||||||||||||||||
Change in fair value of warrant liability | (7,485 | ) | (3,779 | ) | 7,485 | HH | (116 | ) | ||||||||||||
3,663 | II | |||||||||||||||||||
Offering costs attributable to warrants | (446 | ) | 433 | JJ | (13 | ) | ||||||||||||||
Investment income from Trust Account | — | 4 | (4 | ) | KK | — | ||||||||||||||
Net income (loss) before income taxes | (40,519 | ) | (4,894 | ) | (2,244 | ) | (47,657 | ) | ||||||||||||
Income tax provision (benefit) | ||||||||||||||||||||
Current | 1,051 | — | (3,348 | ) | LL | (2,297 | ) | |||||||||||||
Deferred | (6,369 | ) | — | (6,369 | ||||||||||||||||
Total income tax provision (benefit) | (5,318 | ) | — | (3,348 | ) | (8,666 | ) | |||||||||||||
Net income (loss) | (35,201 | ) | (4,894 | ) | 1,104 | (38,991 | ) | |||||||||||||
Basic and diluted weighted average shares outstanding of Class A ordinary shares | 227,455 | 26,386,259 | 72,242,919 | |||||||||||||||||
Basic and diluted net income per share, Class A ordinary shares | $ | (273.03 | ) | $ | — | $ | (0.48 | ) | ||||||||||||
Basic and diluted weighted average shares outstanding of Class B ordinary shares | — | 6,355,484 | — | |||||||||||||||||
Basic and diluted net income per share, Class B ordinary shares | — | (0.77 | ) | — |
For the year ended December 31, 2020 | For the six months ended June 30, 2021 | |||||||
Pro forma net loss | (38,991 | ) | (14,016 | ) | ||||
Premium on preferred conversion to common shares | 4,074 | — | ||||||
(34,917 | ) | (14,016 | ) | |||||
Weighted average shares outstanding of common stock | 72,242,919 | 72,242,919 | ||||||
Net loss per share (Basic and Diluted) attributable to common stockholders | $ | (0.48 | ) | $ | (0.19 | ) |
Enablement as a Service (CEaaS) | ||||||
Management Services | ||||||
Based Services |
Three months ended | |||||||||||
(In thousands, USD) | March 31, 2023 | March 31, 2022 | |||||||||
Revenue | $ | 65,975 | $ | 68,978 | |||||||
Net loss | (18,490) | (11,572) | |||||||||
Adjusted EBITDA | 13,328 | 15,288 |
Twelve months ended | |||||||||||
(In thousands, USD) | December 31, 2023 | December 31, 2022 | |||||||||
Revenue | $ | 268,447 | $ | 248,435 | |||||||
Net loss | (106,200) | (24,776) | |||||||||
Adjusted EBITDA | 62,835 | 60,929 |
Product line | Products | Product description | Primary pricing method | |||||||||||||||||
IoT Connectivity revenue of 66% and 64% for the quarters ended March 31, 2023 and 2022, respectively. IoT Connectivity revenue of 66% and 68% for the fullyears ended 2022 and 2021, 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”) | |||||||||||||||||||
IoT Solutions revenue of 34% and 36% for the quarters ended March 31, 2023, and 2022, respectively. IoT Solutions revenue of 34% and 32% for the full years ended 2022 and 2021, respectively. | 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 SecurityPro® SaaS platform •KORE’s PositionLogic® SaaS platform and LBS APIs | Per subscriber per month |
Three months ended March 31, | Change | ||||||||||||||||||||||||||||||||||
(In thousands, USD) | 2023 | 2022 | $ | % | |||||||||||||||||||||||||||||||
Services | $ | 47,550 | 72 | % | $ | 47,543 | 69 | % | $ | 7 | — | % | |||||||||||||||||||||||
Products | 18,425 | 28 | % | 21,435 | 31 | % | (3,010) | (14) | % | ||||||||||||||||||||||||||
Total Revenue | $ | 65,975 | 100 | % | $ | 68,978 | 100 | % | $ | (3,003) | (4) | % |
Six Months Ended June 30, | Years Ended December 31, | |||||||||||||||||||||||||||||||
2021 | 2020 | 2020 | 2019 | |||||||||||||||||||||||||||||
Services | $ | 91,437 | 79 | % | $ | 83,677 | 83 | % | $ | 172,845 | 81 | % | $ | 159,425 | 94 | % | ||||||||||||||||
Products | 24,603 | 21 | % | 17,363 | 17 | % | 40,915 | 19 | % | 9,727 | 6 | % | ||||||||||||||||||||
Total revenues | $ | 116,040 | 100 | % | $ | 101,040 | 100 | % | $ | 213,760 | 100 | % | $ | 169,152 | 100 | % | ||||||||||||||||
Three months ended March 31, | Change | ||||||||||||||||||||||||||||||||||
(In thousands, USD) | 2023 | 2022 | $ | % | |||||||||||||||||||||||||||||||
IoT Connectivity | $ | 43,545 | 66 | % | $ | 44,135 | 64 | % | $ | (590) | (1) | % | |||||||||||||||||||||||
IoT Solutions | 22,430 | 34 | % | 24,843 | 36 | % | (2,413) | (10) | % | ||||||||||||||||||||||||||
Total Revenue | $ | 65,975 | 100 | % | $ | 68,978 | 100 | % | $ | (3,003) | (4) | % |
Three months ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Period End Connections | 15.1 | million | 15.3 | million | |||||||
Average Connections Count for the Period | 15.1 | million | 15.1 | million |
Three months ended March 31, | Change | ||||||||||||||||||||||||||||||||||
(In thousands, USD) | 2023 | 2022 | $ | % | |||||||||||||||||||||||||||||||
Services | $ | 16,543 | 55 | % | $ | 17,550 | 50 | % | $ | (1,007) | (6) | % | |||||||||||||||||||||||
Products | 13,774 | 45 | % | 17,723 | 50 | % | (3,949) | (22) | % | ||||||||||||||||||||||||||
Total cost of revenue | $ | 30,317 | 100 | % | $ | 35,273 | 100 | % | $ | (4,956) | (14) | % |
Three months ended March 31, | |||||||||||
Gross margin rate | 2023 | 2022 | |||||||||
Services | 65 | % | 63 | % | |||||||
Products | 25 | % | 17 | % | |||||||
Total gross margins | 54 | % | 49 | % |
Three months ended March 31, | Change | ||||||||||||||||||||||||||||||||||
(In thousands, USD) | 2023 | 2022 | $ | % | |||||||||||||||||||||||||||||||
IoT Connectivity | $ | 15,155 | 50 | % | $ | 16,891 | 48 | % | $ | (1,736) | (10) | % | |||||||||||||||||||||||
IoT Solutions | 15,162 | 50 | % | 18,382 | 52 | % | (3,220) | (18) | % | ||||||||||||||||||||||||||
Total cost of revenue | $ | 30,317 | 100 | % | $ | 35,273 | 100 | % | $ | (4,956) | (14) | % |
Three months ended March 31, | |||||||||||
Gross margin rate | 2023 | 2022 | |||||||||
IoT Connectivity | 65 | % | 62 | % | |||||||
IoT Solutions | 32 | % | 26 | % | |||||||
Total gross margins | 54 | % | 49 | % |
Three months ended March 31, | Change | ||||||||||||||||||||||
(In thousands, USD) | 2023 | 2022 | $ | % | |||||||||||||||||||
Selling, general, and administrative | 30,200 | $ | 27,717 | $ | 2,483 | 9 | % |
Three months ended March 31, | Change | ||||||||||||||||||||||
(In thousands, USD) | 2023 | 2022 | $ | % | |||||||||||||||||||
Depreciation and amortization | $ | 14,125 | $ | 13,175 | $ | 950 | 7 | % |
Three months ended March 31, | Change | ||||||||||||||||||||||
(In thousands, USD) | 2023 | 2022 | $ | % | |||||||||||||||||||
Interest expense, including amortization of deferred financing costs, net | $ | 10,195 | $ | 6,624 | $ | 3,571 | 54 | % | |||||||||||||||
Change in fair value of warrant liability | (3) | (27) | 24 | (90) | % | ||||||||||||||||||
Total other expense | $ | 10,192 | $ | 6,597 | $ | 3,595 | 54 | % |
Three months ended March 31, | Change | ||||||||||||||||||||||
(In thousands, USD) | 2023 | 2022 | $ | % | |||||||||||||||||||
Income tax benefit | $ | (369) | $ | (2,212) | $ | 1,843 | (83) | % |
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 |
Six Months Ended June 30, | Years Ended December 31, | |||||||||||||||||||||||||||||||
2021 | 2020 | 2020 | 2019 | |||||||||||||||||||||||||||||
Connectivity | $ | 84,048 | 72 | % | $ | 75,577 | 75 | % | $ | 158,748 | 74 | % | $ | 150,358 | 89 | % | ||||||||||||||||
IoT Solutions | 31,992 | 28 | % | 25,463 | 25 | % | 55,012 | 26 | % | 18,794 | 11 | % | ||||||||||||||||||||
Total revenues | $ | 116,040 | 100 | % | $ | 101,040 | 100 | % | $ | 213,760 | 100 | % | $ | 169,152 | 100 | % | ||||||||||||||||
Period End Connections Count | 13.2 million | 10.2 million | 11.8 million | 9.7 million | ||||||||||||||||||||||||||||
Average Connections Count for the Period | 13.1 million | 10.0 million | 10.7 million | 9.2 million |
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 | % |
(in ‘000) | For six months ended | For the years ended | ||||||||||||||||||||||||||||||
June 30, | Change | December 31, | Change | |||||||||||||||||||||||||||||
2021 | 2020 | Dollars | % | 2020 | 2019 | Dollars | % | |||||||||||||||||||||||||
Cost of services | $ | 34,037 | $ | 31,918 | 2,119 | 7 | % | $ | 64,520 | $ | 57,621 | 6,899 | 12 | % | ||||||||||||||||||
Cost of products | 19,672 | 13,068 | 6,604 | 51 | % | 33,410 | 6,044 | 27,366 | 453 | % | ||||||||||||||||||||||
Total cost of revenues | $ | 53,709 | $ | 44,986 | 8,723 | 19 | % | $ | 97,930 | $ | 63,665 | 34,265 | 54 | % | ||||||||||||||||||
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 | % |
(in ‘000) | For six months ended | For the years ended | ||||||||||||||||||||||||||||||
June 30, | Change | December 31, | Change | |||||||||||||||||||||||||||||
2021 | 2020 | Dollars | % | 2020 | 2019 | Dollars | % | |||||||||||||||||||||||||
Cost of connectivity | $ | 32,618 | $ | 30,500 | 2,118 | 7 | % | $ | 63,706 | $ | 56,139 | 7,567 | 13 | % | ||||||||||||||||||
Cost of IoT Solutions | 21,091 | 14,486 | 6,605 | 46 | % | 34,224 | 7,526 | 26,698 | 355 | % | ||||||||||||||||||||||
Total cost of revenues | $ | 53,709 | $ | 44,986 | $ | 8,723 | 19 | % | $ | 97,930 | $ | 63,665 | 34,265 | 54 | % | |||||||||||||||||
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 | % |
(in ‘000 | For six months ended | For the years ended | ||||||||||||||||||||||||||||||
June 30, | Change | December 31, | Change | |||||||||||||||||||||||||||||
2021 | 2020 | Dollars | % | 2020 | 2019 | Dollars | % | |||||||||||||||||||||||||
Selling, general and administrative expenses | $ | 40,525 | $ | 32,115 | 8,410 | 26 | % | $ | 72,883 | $ | 65,298 | 7,585 | 12 | % |
Years Ended | Change 2022 | ||||||||||||||||||||||
(in thousands USD) | December 31, 2022 | December 31, 2021 | $ | % | |||||||||||||||||||
Depreciation and amortization | $ | 54,499 | $ | 50,331 | $ | 4,168 | 8 | % |
(in ‘000 | For six months ended | For the years ended | ||||||||||||||||||||||||||||||
June 30, | Change | December 31, | Change | |||||||||||||||||||||||||||||
2021 | 2020 | Dollars | % | 2020 | 2019 | Dollars | % | |||||||||||||||||||||||||
Depreciation and amortization | $ | 25,507 | $ | 25,708 | (201 | ) | (1 | )% | $ | 52,488 | $ | 48,131 | 4,357 | 9 | % |
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 | % |
For six months ended | For the years ended | |||||||||||||||||||||||||||||||
June 30, | Change | December 31, | Change | |||||||||||||||||||||||||||||
2021 | 2020 | Dollars | % | 2020 | 2019 | Dollars | % | |||||||||||||||||||||||||
Intangible asset impairment loss | $ | — | $ | — | — | % | $ | — | $ | (3,892 | ) | (3,892 | ) | (100 | )% |
For six months ended | For the years ended | |||||||||||||||||||||||||||||||
June 30, | Change | December 31, | Change | |||||||||||||||||||||||||||||
2021 | 2020 | Dollars | % | 2020 | 2019 | Dollars | % | |||||||||||||||||||||||||
Interest expense including amortization of debt issuance costs, net | $ | (10,565 | ) | $ | (13,084 | ) | 2,519 | (19 | )% | $ | (23,493 | ) | $ | (24,785 | ) | 1,292 | (5 | )% | ||||||||||||||
Change in fair value of warrant liability | 2,383 | (2,831 | ) | 5,214 | (184 | )% | (7,485 | ) | 235 | (7,720 | ) | (3,285 | )% | |||||||||||||||||||
Total other expense | $ | (8,182 | ) | $ | (15,915 | ) | 7,733 | 49 | % | $ | (30,978 | ) | $ | (24,550 | ) | (6,428 | ) | (26 | )% | |||||||||||||
Years Ended | Change 2022 | ||||||||||||||||||||||
(in thousands USD) | December 31, 2022 | December 31, 2021 | $ | % | |||||||||||||||||||
Income tax benefit | $ | (10,417) | $ | (8,776) | $ | (1,641) | 19 | % |
For six months ended | For the years ended | |||||||||||||||||||||||||||||||
June 30, | Change | December 31, | Change | |||||||||||||||||||||||||||||
2021 | 2020 | Dollars | % | 2020 | 2019 | Dollars | % | |||||||||||||||||||||||||
Income tax benefit | $ | (3,917 | ) | $ | (3,858 | ) | (59 | ) | 2 | % | $ | (5,318 | ) | $ | (12,941 | ) | 7,623 | (59 | )% |
Three months ended March 31, | |||||||||||
(In thousands, USD) | 2023 | 2022 | |||||||||
Net loss | $ | (18,490) | $ | (11,572) | |||||||
Income tax benefit | (369) | (2,212) | |||||||||
Interest expense | 10,195 | 6,624 | |||||||||
Depreciation and amortization | 14,125 | 13,175 | |||||||||
EBITDA | 5,461 | 6,015 | |||||||||
Change in fair value of warrant liability (non-cash) | (3) | (27) | |||||||||
Transformation expenses | 1,864 | 1,565 | |||||||||
Acquisition and integration-related restructuring costs | 3,207 | 5,293 | |||||||||
Stock-based compensation (non-cash) | 2,570 | 2,050 | |||||||||
Foreign currency loss (non-cash) | 112 | (3) | |||||||||
Other | 117 | 395 | |||||||||
Adjusted EBITDA | $ | 13,328 | $ | 15,288 |
(in 000’s) | For the six months ended June 30, | |||||||
2021 | 2020 | |||||||
Net loss | $ | (7,966 | ) | $ | (13,826 | ) | ||
Income tax expense (benefit) | (3,917 | ) | (3,858 | ) | ||||
Interest expense | 10,565 | 13,084 | ||||||
Depreciation and amortization | 25,507 | 25,708 | ||||||
EBITDA | 24,189 | 21,108 | ||||||
Change in fair value of warrant liabilities (non-cash) | (2,383 | ) | 2,831 | |||||
Transformation expense | 3,750 | 3,840 | ||||||
Acquisition and integration-related restructuring costs | 4,518 | 2,397 | ||||||
Stock-based compensation (non-cash) | 630 | 531 | ||||||
Foreign currency loss (gain) (non-cash) | 77 | (1,684 | ) | |||||
Other | 296 | 110 | ||||||
Adjusted EBITDA | $ | 31,077 | $ | 29,133 | ||||
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, | ||||||||
(in 000’s) | 2020 | 2019 | ||||||
Net loss | $ | (35,201 | ) | $ | (23,443 | ) | ||
Income tax expense (benefit) | (5,318 | ) | (12,941 | ) | ||||
Interest expense | 23,493 | 24,785 | ||||||
Depreciation and amortization | 52,488 | 48,131 | ||||||
EBITDA | 35,462 | 36,532 | ||||||
Intangible asset impairment loss | — | 3,892 | ||||||
Change in fair value of warrant liabilities (non-cash) | 7,485 | (235 | ) | |||||
Transformation expense | 7,354 | 8,959 | ||||||
Acquisition and integration-related restructuring costs | 5,709 | 6,475 | ||||||
Contingent carrier liability reversal (non-cash) | — | (3,984 | ) | |||||
Sales tax liability reversal (non-cash) | — | (2,200 | ) | |||||
VAT liability reversal (non-cash) | — | (1,456 | ) | |||||
Stock-based compensation (non-cash) | 1,161 | 1,682 | ||||||
Other income tax liability reversal (non-cash) | 80 | 121 | ||||||
Foreign currency loss (gain) (non-cash) | 233 | 1,440 | ||||||
Other | 335 | (341 | ) | |||||
Adjusted EBITDA | $ | 57,819 | $ | 50,885 | ||||
Name | Age | Title | ||||||||||||
Romil Bahl | 54 | President, Chief Executive Officer and Director | ||||||||||||
Paul Holtz | 46 | Executive Vice President and Chief Financial Officer and Treasurer | ||||||||||||
Tushar Sachdev | 50 | Executive Vice President and Chief Technology Officer | ||||||||||||
Louise Winstone | 44 | Executive Vice President and Chief Human Resources Officer | ||||||||||||
Bryan Lubel | 58 | Executive Vice President, Connected Health | ||||||||||||
Jack W. Kennedy Jr. | 47 | Executive Vice President, Chief Legal Officer and Secretary | ||||||||||||
Cheemin Bo-Linn | 69 | Director | ||||||||||||
Timothy M. Donahue | 74 | Director (Chair) | ||||||||||||
H. Paulett Eberhart | 69 | Director | ||||||||||||
James Geisler | 56 | Director | ||||||||||||
Robert P. MacInnis | 56 | Director | ||||||||||||
Michael K. Palmer | 37 | Director | ||||||||||||
Mark Neporent | 65 | Director | ||||||||||||
Tomer Yosef-Or | 43 | Director |
Name and Principal Position | Year | Salary ($) | Bonus ($)(1) | Stock Awards ($)(2) | Non-Equity Incentive Plan Compensation ($) | All Other Compensation ($)(3) | Total ($) | |||||||||||||||||||||||||||||||||||||
Romil Bahl | 2022 | 750,000 | 281,250 | 14,344,674 | — | 16,366 | 15,392,290 | |||||||||||||||||||||||||||||||||||||
President and Chief Executive Officer | 2021 | 750,000 | — | 2,000,000 | 978,750 | 2,015,538 | 5,744,288 | |||||||||||||||||||||||||||||||||||||
Bryan Lubel | 2022 | 330,000 | — | 1,963,372 | — | 17,450 | 2,310,822 | |||||||||||||||||||||||||||||||||||||
Executive Vice President, Connected Health | 2021 | 330,000 | — | 375,000 | 430,650 | 389,808 | 1,525,458 | |||||||||||||||||||||||||||||||||||||
Tushar Sachdev | 2022 | 300,000 | 112,500 | 1,963,372 | — | 7,082 | 2,382,954 | |||||||||||||||||||||||||||||||||||||
Executive Vice President and Chief Technology Officer | 2021 | 300,000 | — | 375,000 | 391,500 | 388,588 | 1,455,088 |
Stock awards | ||||||||||||||||||||||||||||||||||||||
Name | Grant date | Number of shares or units of stock that have not vested (#) | Market value of shares or units of stock that have not vested ($)(1) | Equity incentive plan awards: number of unearned shares, units or other rights that have not vested (#) | Equity incentive plan awards: market value of unearned shares, units or other rights that have not vested ($)(1) | |||||||||||||||||||||||||||||||||
Romil Bahl | 1/4/2022 | 800,000 | (2) | 1,008,000 | ||||||||||||||||||||||||||||||||||
1/4/2022 | 200,000 | (3) | 252,000 | |||||||||||||||||||||||||||||||||||
1/4/2022 | 200,000 | (4) | 252,000 | |||||||||||||||||||||||||||||||||||
1/4/2022 | 200,000 | (5) | 252,000 | |||||||||||||||||||||||||||||||||||
1/4/2022 | 200,000 | (6) | 252,000 | |||||||||||||||||||||||||||||||||||
1/4/2022 | 171,761 | (7) | 216,419 | |||||||||||||||||||||||||||||||||||
6/30/2022 | 216,666 | (8) | 272,999 | |||||||||||||||||||||||||||||||||||
6/30/2022 | 216,667 | (9) | 273,000 | |||||||||||||||||||||||||||||||||||
6/30/2022 | 216,667 | (10) | 273,000 | |||||||||||||||||||||||||||||||||||
Bryan Lubel | 1/4/2022 | 140,845 | (2) | 177,465 | ||||||||||||||||||||||||||||||||||
1/4/2022 | 35,211 | (3) | 44,366 | |||||||||||||||||||||||||||||||||||
1/4/2022 | 35,211 | (4) | 44,366 | |||||||||||||||||||||||||||||||||||
1/4/2022 | 35,211 | (5) | 44,366 | |||||||||||||||||||||||||||||||||||
1/4/2022 | 35,211 | (6) | 44,366 | |||||||||||||||||||||||||||||||||||
Tushar Sachdev | 1/4/2022 | 140,845 | (2) | 177,465 | ||||||||||||||||||||||||||||||||||
1/4/2022 | 35,211 | (3) | 44,366 | |||||||||||||||||||||||||||||||||||
1/4/2022 | 35,211 | (4) | 44,366 | |||||||||||||||||||||||||||||||||||
1/4/2022 | 35,211 | (5) | 44,366 | |||||||||||||||||||||||||||||||||||
1/4/2022 | 35,211 | (6) | 44,366 |
Name and Address of Beneficial Owner ) | Number of PubCo Shares | % | ||||||
CTAC Sponsor (our sponsor) (1) | 6,970,342 | 9.7 | % | |||||
Entities affiliated with ABRY Partners LLC (2)(3) | 24,252,912 | 33.6 | % | |||||
Dotmar Investments Limited (4) | 4,000,711 | 5.6 | % | |||||
TDJ Company LLC (5) | 4,983,527 | 6.9 | % | |||||
Directors and Executive Officers | ||||||||
Romil Bahl | 158,804 | * | ||||||
Puneet Pamnani | 38,065 | * | ||||||
Bryan Lubel | 18,171 | * | ||||||
Cheemin Bo-Linn | — | — | ||||||
Timothy M. Donahue | — | — | ||||||
Chan W. Galbato | — | — | ||||||
Robert P. MacInnis | — | — | ||||||
Michael K. Palmer | — | — | ||||||
Tomer Yosef-Or | — | — | ||||||
All Pubco directors and executive officers as a group (9 individuals) | 40,422,532 | 56.0 | % |
Name and Principal Position | Year | Salary ($) | Bonus ($)(1) | Stock Awards ($)(2) | Non-Equity Incentive Plan Compensation ($) | All Other Compensation ($)(3) | Total ($) | |||||||||||||||||||||||||||||||||||||
Romil Bahl | 2022 | 750,000 | 281,250 | 14,344,674 | — | 16,366 | 15,392,290 | |||||||||||||||||||||||||||||||||||||
President and Chief Executive Officer | 2021 | 750,000 | — | 2,000,000 | 978,750 | 2,015,538 | 5,744,288 | |||||||||||||||||||||||||||||||||||||
Bryan Lubel | 2022 | 330,000 | — | 1,963,372 | — | 17,450 | 2,310,822 | |||||||||||||||||||||||||||||||||||||
Executive Vice President, Connected Health | 2021 | 330,000 | — | 375,000 | 430,650 | 389,808 | 1,525,458 | |||||||||||||||||||||||||||||||||||||
Tushar Sachdev | 2022 | 300,000 | 112,500 | 1,963,372 | — | 7,082 | 2,382,954 | |||||||||||||||||||||||||||||||||||||
Executive Vice President and Chief Technology Officer | 2021 | 300,000 | — | 375,000 | 391,500 | 388,588 | 1,455,088 |
Stock awards | ||||||||||||||||||||||||||||||||||||||
Name | Grant date | Number of shares or units of stock that have not vested (#) | Market value of shares or units of stock that have not vested ($)(1) | Equity incentive plan awards: number of unearned shares, units or other rights that have not vested (#) | Equity incentive plan awards: market value of unearned shares, units or other rights that have not vested ($)(1) | |||||||||||||||||||||||||||||||||
Romil Bahl | 1/4/2022 | 800,000 | (2) | 1,008,000 | ||||||||||||||||||||||||||||||||||
1/4/2022 | 200,000 | (3) | 252,000 | |||||||||||||||||||||||||||||||||||
1/4/2022 | 200,000 | (4) | 252,000 | |||||||||||||||||||||||||||||||||||
1/4/2022 | 200,000 | (5) | 252,000 | |||||||||||||||||||||||||||||||||||
1/4/2022 | 200,000 | (6) | 252,000 | |||||||||||||||||||||||||||||||||||
1/4/2022 | 171,761 | (7) | 216,419 | |||||||||||||||||||||||||||||||||||
6/30/2022 | 216,666 | (8) | 272,999 | |||||||||||||||||||||||||||||||||||
6/30/2022 | 216,667 | (9) | 273,000 | |||||||||||||||||||||||||||||||||||
6/30/2022 | 216,667 | (10) | 273,000 | |||||||||||||||||||||||||||||||||||
Bryan Lubel | 1/4/2022 | 140,845 | (2) | 177,465 | ||||||||||||||||||||||||||||||||||
1/4/2022 | 35,211 | (3) | 44,366 | |||||||||||||||||||||||||||||||||||
1/4/2022 | 35,211 | (4) | 44,366 | |||||||||||||||||||||||||||||||||||
1/4/2022 | 35,211 | (5) | 44,366 | |||||||||||||||||||||||||||||||||||
1/4/2022 | 35,211 | (6) | 44,366 | |||||||||||||||||||||||||||||||||||
Tushar Sachdev | 1/4/2022 | 140,845 | (2) | 177,465 | ||||||||||||||||||||||||||||||||||
1/4/2022 | 35,211 | (3) | 44,366 | |||||||||||||||||||||||||||||||||||
1/4/2022 | 35,211 | (4) | 44,366 | |||||||||||||||||||||||||||||||||||
1/4/2022 | 35,211 | (5) | 44,366 | |||||||||||||||||||||||||||||||||||
1/4/2022 | 35,211 | (6) | 44,366 |
Name and Principal Position | Salary ($) | Bonus ($)(1) | Option Awards ($) | Non-Equity Incentive Plan Compensation ($)(2) | All Other Compensation ($)(3) | Total ($) | Name and Principal Position | Year | Salary ($) | Bonus ($)(1) | Stock Awards ($)(2) | Non-Equity Incentive Plan Compensation ($) | All Other Compensation ($)(3) | Total ($) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Romil Bahl | 750,000 | 100,000.00 | 0.00 | 982,969.00 | 36,201.00 | 1,869,170 | Romil Bahl | 2022 | 750,000 | 281,250 | 14,344,674 | — | 16,366 | 15,392,290 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
President and Chief Executive Officer | President and Chief Executive Officer | 2021 | 750,000 | — | 2,000,000 | 978,750 | 2,015,538 | 5,744,288 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Puneet Pamnani | 330,000 | 0.00 | 0.00 | 490,174.00 | 23,213.00 | 843,387 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Executive Vice President and Chief Financial Officer | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bryan Lubel | 330,000 | 0.00 | 0.00 | 417,966.00 | 8,137.00 | 756,103 | Bryan Lubel | 2022 | 330,000 | — | 1,963,372 | — | 17,450 | 2,310,822 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Executive Vice President, Connected Health | Executive Vice President, Connected Health | 2021 | 330,000 | — | 375,000 | 430,650 | 389,808 | 1,525,458 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tushar Sachdev | Tushar Sachdev | 2022 | 300,000 | 112,500 | 1,963,372 | — | 7,082 | 2,382,954 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Executive Vice President and Chief Technology Officer | Executive Vice President and Chief Technology Officer | 2021 | 300,000 | — | 375,000 | 391,500 | 388,588 | 1,455,088 |
Option Awards | ||||||||||||||||||||||||
Name | Grant Date | Vesting Commencement Date | Number of Securities Underlying Unexercised Options (#) Exercisable (1) | Number of Securities Underlying Unexercised Options (#) Unexercisable | Option Exercise Price ($) | Option Expiration Date | ||||||||||||||||||
Romil Bahl | May 7, 2018 | April 1, 2018 | 1,840 | 2,760 | 1,000 | May 7, 2028 | ||||||||||||||||||
1,840 | 2,760 | 1,750 | ||||||||||||||||||||||
1,840 | 2,760 | 2,500 | ||||||||||||||||||||||
Puneet Pamnani | May 7, 2018 | April 1, 2018 | 460 | 690 | 1,000 | May 7, 2028 | ||||||||||||||||||
460 | 690 | 1,750 | ||||||||||||||||||||||
460 | 690 | 2,500 | ||||||||||||||||||||||
Bryan Lubel | November 22, 2019 | November 22, 2019 | 184 | 736 | 1,000 | November 22, 2029 | ||||||||||||||||||
184 | 736 | 1,750 | ||||||||||||||||||||||
184 | 736 | 2,500 |
Stock awards | ||||||||||||||||||||||||||||||||||||||
Name | Grant date | Number of shares or units of stock that have not vested (#) | Market value of shares or units of stock that have not vested ($)(1) | Equity incentive plan awards: number of unearned shares, units or other rights that have not vested (#) | Equity incentive plan awards: market value of unearned shares, units or other rights that have not vested ($)(1) | |||||||||||||||||||||||||||||||||
Romil Bahl | 1/4/2022 | 800,000 | (2) | 1,008,000 | ||||||||||||||||||||||||||||||||||
1/4/2022 | 200,000 | (3) | 252,000 | |||||||||||||||||||||||||||||||||||
1/4/2022 | 200,000 | (4) | 252,000 | |||||||||||||||||||||||||||||||||||
1/4/2022 | 200,000 | (5) | 252,000 | |||||||||||||||||||||||||||||||||||
1/4/2022 | 200,000 | (6) | 252,000 | |||||||||||||||||||||||||||||||||||
1/4/2022 | 171,761 | (7) | 216,419 | |||||||||||||||||||||||||||||||||||
6/30/2022 | 216,666 | (8) | 272,999 | |||||||||||||||||||||||||||||||||||
6/30/2022 | 216,667 | (9) | 273,000 | |||||||||||||||||||||||||||||||||||
6/30/2022 | 216,667 | (10) | 273,000 | |||||||||||||||||||||||||||||||||||
Bryan Lubel | 1/4/2022 | 140,845 | (2) | 177,465 | ||||||||||||||||||||||||||||||||||
1/4/2022 | 35,211 | (3) | 44,366 | |||||||||||||||||||||||||||||||||||
1/4/2022 | 35,211 | (4) | 44,366 | |||||||||||||||||||||||||||||||||||
1/4/2022 | 35,211 | (5) | 44,366 | |||||||||||||||||||||||||||||||||||
1/4/2022 | 35,211 | (6) | 44,366 | |||||||||||||||||||||||||||||||||||
Tushar Sachdev | 1/4/2022 | 140,845 | (2) | 177,465 | ||||||||||||||||||||||||||||||||||
1/4/2022 | 35,211 | (3) | 44,366 | |||||||||||||||||||||||||||||||||||
1/4/2022 | 35,211 | (4) | 44,366 | |||||||||||||||||||||||||||||||||||
1/4/2022 | 35,211 | (5) | 44,366 | |||||||||||||||||||||||||||||||||||
1/4/2022 | 35,211 | (6) | 44,366 |
Name | Fees earned or paid in cash ($) | Stock Award(1) ($) | Total ($) | |||||||||||||||||
Cheemin Bo-Linn | 70,000 | 333,137 | 403,137 | |||||||||||||||||
Timothy M. Donahue | 110,000 | 313,487 | 423,487 | |||||||||||||||||
H. Paulett Eberhart(2) | 60,000 | 303,520 | 363,520 | |||||||||||||||||
James Geisler(3) | 50,000 | 303,520 | 353,520 | |||||||||||||||||
Chan W. Galbato(4)(5) | — | — | — | |||||||||||||||||
Robert P. MacInnis(5) | — | — | — | |||||||||||||||||
Michael K. Palmer(5) | — | — | — | |||||||||||||||||
Mark Neporent(5)(6) | — | — | — | |||||||||||||||||
Tomer Yosef-Or(5) | — | — | — |
Name and Address of Beneficial Owner | Number of KORE Shares | % | ||||||||||||
Entities affiliated with ABRY Partners LLC(1)(2) | 24,252,912 | 28.0 | % | |||||||||||
Wood River Capital, LLC(3) | 10,000,000 | 11.6 | % | |||||||||||
Twilio | 10,000,000 | 11.6 | % | |||||||||||
Fortress Investment Group LLC(4)(5) | 8,343,954 | 9.6 | % | |||||||||||
CTAC Sponsor(6) | 6,970,342 | 8.1 | % | |||||||||||
Terrdian CCPC(7) | 4,983,527 | 5.8 | % | |||||||||||
Dotmar Investments Limited(8) | 4,018,575 | 4.6 | % | |||||||||||
Directors and Executive Officers | ||||||||||||||
Romil Bahl | 330,004 | * | ||||||||||||
Paul Holtz | 19,736 | * | ||||||||||||
Tushar Sachdev | 48,236 | * | ||||||||||||
Bryan Lubel | 31,817 | * | ||||||||||||
Cheemin Bo-Linn | 67,562 | * | ||||||||||||
Timothy M. Donahue | 67,562 | * | ||||||||||||
H. Paulett Eberhart | 50,477 | * | ||||||||||||
James Geisler | 50,477 | * | ||||||||||||
Robert P. MacInnis | 104,500 | * | ||||||||||||
Tomer Yosef-Or | 50,263 | * | ||||||||||||
Michael K. Palmer | — | * | ||||||||||||
Mark Neporent | — | * | ||||||||||||
All current KORE directors and executive officers as a group (15 individuals) | 637,494 | * |
Name and Address of Beneficial Owner ) | Number of PubCo Shares | % | ||||||
CTAC Sponsor (our sponsor) (1) | 6,970,342 | 9.7 | % | |||||
Entities affiliated with ABRY Partners LLC (2)(3) | 24,252,912 | 33.6 | % | |||||
Dotmar Investments Limited (4) | 4,000,711 | 5.6 | % | |||||
TDJ Company LLC (5) | 4,983,527 | 6.9 | % | |||||
Directors and Executive Officers | ||||||||
Romil Bahl | 158,804 | * | ||||||
Puneet Pamnani | 38,065 | * | ||||||
Bryan Lubel | 18,171 | * | ||||||
Cheemin Bo-Linn | — | — | ||||||
Timothy M. Donahue | — | — | ||||||
Chan W. Galbato | — | — | ||||||
Robert P. MacInnis | — | — | ||||||
Michael K. Palmer | — | — | ||||||
Tomer Yosef-Or | — | — | ||||||
All Pubco directors and executive officers as a group (9 individuals) | 40,422,532 | 56.0 | % |
Before the Offering | After the Offering | |||||||||||||||||||||||||||||||
Name of Selling Security holders | Number of Shares of Common Stock | Percentage of Outstanding Shares of Common Stock | Number of Shares of Common Stock Being Offered | Number of Shares of Common Stock | Percentage of Outstanding Shares of Common Stock | |||||||||||||||||||||||||||
Twilio Inc.(1) | 10,000,000 | 11.6 | % | 10,000,000 | — | — | % |
Before the Offering | After the Offering | |||||||||||||||
Name of Selling Security holders | Number of Shares of Common Stock | Number of Shares of Common Stock Being Offered | Number of Shares of Common Stock | Percentage of Outstanding Shares of Common Stock | ||||||||||||
Spring Creek Capital, LLC (1) | 10,000,000 | 10,000,000 | — | — | ||||||||||||
Mudrick Capital Management, L.P. (2) | 4,000,000 | 4,000,000 | — | — | ||||||||||||
Marathon Asset Management LP (3) | 2,000,000 | 2,000,000 | — | — | ||||||||||||
Liberty Mutual Investment Holdings LLC (4) | 1,300,000 | 1,300,000 | | — | | — | ||||||||||
BlackRock, Inc. (5) | 1,000,000 | 1,000,000 | — | — | ||||||||||||
CVI Investments, Inc. (6) | 488,458 | 250,000 | | 238,458 | | * | ||||||||||
Monashee Investment Management, LLC (7) | 600,000 | 600,000 | | — | | — | ||||||||||
Jane Street Global Trading, LLC (8) | 451,165 | 150,000 | | 301,165 | | * | ||||||||||
Owl Creek Investments III, LLC (9) | 450,000 | 450,000 | | — | | — | ||||||||||
Ellington Warlander Partners LP (10) | 400,000 | 400,000 | | — | | — | ||||||||||
Venor Capital Master Fund Ltd. (11) | 400,000 | 400,000 | | — | | — | ||||||||||
Linden Capital L.P. (12) | 350,000 | 350,000 | | — | | — | ||||||||||
Walleye Opportunities Master Fund, Ltd. (13) | 350,315 | 350,000 | 315 | * | ||||||||||||
Destinations Global Fixed Income Opportunities Fund (14) | 220,946 | 60,732 | | 160,214 | | * | ||||||||||
Marshall Wace, LLP (15) | 200,000 | 200,000 | — | — | ||||||||||||
Tech Opportunities LLC (16) | 200,000 | 200,000 | | — | | — | ||||||||||
RiverPark Strategic Income Fund (17) | 83,931 | 31,668 | | 52,263 | | * | ||||||||||
Beryl Capital Partners II LP (18) | 41,917 | 41,917 | — | — | ||||||||||||
Cohanzick Absolute Return Master Fund, Ltd (19) | 7,600 | 7,600 | | — | | — | ||||||||||
Beryl Capital Partners LP (20) | 3,407 | 3,407 | — | — | ||||||||||||
Corbin Hedged Equity Fund, L.P. (21) | 3,290 | 3,290 | — | — | ||||||||||||
Pinehurst Partners, L.P. (22) | 1,386 | 1,386 | — | — | ||||||||||||
Arena Investors, LP (23) | 500,000 | 500,000 | — | — | ||||||||||||
PlusTick Partners (QP) LP (24) | 250,000 | 200,000 | 50,000 | * | ||||||||||||
Total | 23,302,415 | 22,500,000 | | 802,415 | | | 1.1% | |
June 30, 2021 | December 31, 2020 | |||||||
Interfusion B.V. | $ | 954 | $ | 985 | ||||
T-Fone B.V. | $ | 611 | $ | 630 |
Redemption Date (period to expiration of warrants) | Fair Market Value of Our Common Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
$10.00 | 11.00 | 12.00 | 13.00 | 14.00 | 15.00 | 16.00 | 17.00 | 18.00 | ||||||||||||||||||||||||||||||||||||||||||||||||
60 months | 0.261 | 0.281 | 0.297 | 0.311 | 0.324 | 0.337 | 0.348 | 0.358 | 0.361 | |||||||||||||||||||||||||||||||||||||||||||||||
57 months | 0.257 | 0.277 | 0.294 | 0.310 | 0.324 | 0.337 | 0.348 | 0.358 | 0.361 | |||||||||||||||||||||||||||||||||||||||||||||||
54 months | 0.252 | 0.272 | 0.291 | 0.307 | 0.322 | 0.335 | 0.347 | 0.357 | 0.361 | |||||||||||||||||||||||||||||||||||||||||||||||
51 months | 0.246 | 0.268 | 0.287 | 0.304 | 0.320 | 0.333 | 0.346 | 0.357 | 0.361 | |||||||||||||||||||||||||||||||||||||||||||||||
48 months | 0.241 | 0.263 | 0.283 | 0.301 | 0.317 | 0.332 | 0.344 | 0.356 | 0.361 | |||||||||||||||||||||||||||||||||||||||||||||||
45 months | 0.235 | 0.258 | 0.279 | 0.298 | 0.315 | 0.330 | 0.343 | 0.356 | 0.361 | |||||||||||||||||||||||||||||||||||||||||||||||
42 months | 0.228 | 0.252 | 0.274 | 0.294 | 0.312 | 0.328 | 0.342 | 0.355 | 0.361 | |||||||||||||||||||||||||||||||||||||||||||||||
39 months | 0.221 | 0.246 | 0.269 | 0.290 | 0.309 | 0.325 | 0.340 | 0.354 | 0.361 | |||||||||||||||||||||||||||||||||||||||||||||||
36 months | 0.213 | 0.239 | 0.263 | 0.285 | 0.305 | 0.323 | 0.339 | 0.353 | 0.361 | |||||||||||||||||||||||||||||||||||||||||||||||
33 months | 0.205 | 0.232 | 0.257 | 0.280 | 0.301 | 0.320 | 0.337 | 0.352 | 0.361 | |||||||||||||||||||||||||||||||||||||||||||||||
30 months | 0.196 | 0.224 | 0.250 | 0.274 | 0.297 | 0.316 | 0.335 | 0.351 | 0.361 | |||||||||||||||||||||||||||||||||||||||||||||||
27 months | 0.185 | 0.214 | 0.242 | 0.268 | 0.291 | 0.313 | 0.332 | 0.350 | 0.361 | |||||||||||||||||||||||||||||||||||||||||||||||
24 months | 0.173 | 0.204 | 0.233 | 0.260 | 0.285 | 0.308 | 0.329 | 0.348 | 0.361 | |||||||||||||||||||||||||||||||||||||||||||||||
21 months | 0.161 | 0.193 | 0.223 | 0.252 | 0.279 | 0.304 | 0.326 | 0.347 | 0.361 | |||||||||||||||||||||||||||||||||||||||||||||||
18 months | 0.146 | 0.179 | 0.211 | 0.242 | 0.271 | 0.298 | 0.322 | 0.345 | 0.361 | |||||||||||||||||||||||||||||||||||||||||||||||
15 months | 0.130 | 0.164 | 0.197 | 0.230 | 0.262 | 0.291 | 0.317 | 0.342 | 0.361 | |||||||||||||||||||||||||||||||||||||||||||||||
12 months | 0.111 | 0.146 | 0.181 | 0.216 | 0.250 | 0.282 | 0.312 | 0.339 | 0.361 | |||||||||||||||||||||||||||||||||||||||||||||||
9 months | 0.090 | 0.125 | 0.162 | 0.199 | 0.237 | 0.272 | 0.305 | 0.336 | 0.361 | |||||||||||||||||||||||||||||||||||||||||||||||
6 months | 0.065 | 0.099 | 0.137 | 0.178 | 0.219 | 0.259 | 0.296 | 0.331 | 0.361 | |||||||||||||||||||||||||||||||||||||||||||||||
3 months | 0.034 | 0.065 | 0.104 | 0.150 | 0.197 | 0.243 | 0.286 | 0.326 | 0.361 | |||||||||||||||||||||||||||||||||||||||||||||||
0 months | — | — | 0.042 | 0.115 | 0.179 | 0.233 | 0.281 | 0.323 | 0.361 |
Redemption Date | Fair Market Value of Our Common Stock | |||||||||||||||||||||||||||||||||||
(period to expiration of warrants) | $10.00 | $11.00 | $12.00 | $13.00 | $14.00 | $15.00 | $16.00 | $17.00 | $18.00 | |||||||||||||||||||||||||||
60 months | 0.261 | 0.281 | 0.297 | 0.311 | 0.324 | 0.337 | 0.348 | 0.358 | 0.361 | |||||||||||||||||||||||||||
57 months | 0.257 | 0.277 | 0.294 | 0.310 | 0.324 | 0.337 | 0.348 | 0.358 | 0.361 | |||||||||||||||||||||||||||
54 months | 0.252 | 0.272 | 0.291 | 0.307 | 0.322 | 0.335 | 0.347 | 0.357 | 0.361 | |||||||||||||||||||||||||||
51 months | 0.246 | 0.268 | 0.287 | 0.304 | 0.320 | 0.333 | 0.346 | 0.357 | 0.361 | |||||||||||||||||||||||||||
48 months | 0.241 | 0.263 | 0.283 | 0.301 | 0.317 | 0.332 | 0.344 | 0.356 | 0.361 | |||||||||||||||||||||||||||
45 months | 0.235 | 0.258 | 0.279 | 0.298 | 0.315 | 0.330 | 0.343 | 0.356 | 0.361 | |||||||||||||||||||||||||||
42 months | 0.228 | 0.252 | 0.274 | 0.294 | 0.312 | 0.328 | 0.342 | 0.355 | 0.361 | |||||||||||||||||||||||||||
39 months | 0.221 | 0.246 | 0.269 | 0.290 | 0.309 | 0.325 | 0.340 | 0.354 | 0.361 | |||||||||||||||||||||||||||
36 months | 0.213 | 0.239 | 0.263 | 0.285 | 0.305 | 0.323 | 0.339 | 0.353 | 0.361 | |||||||||||||||||||||||||||
33 months | 0.205 | 0.232 | 0.257 | 0.280 | 0.301 | 0.320 | 0.337 | 0.352 | 0.361 | |||||||||||||||||||||||||||
30 months | 0.196 | 0.224 | 0.250 | 0.274 | 0.297 | 0.316 | 0.335 | 0.351 | 0.361 | |||||||||||||||||||||||||||
27 months | 0.185 | 0.214 | 0.242 | 0.268 | 0.291 | 0.313 | 0.332 | 0.350 | 0.361 | |||||||||||||||||||||||||||
24 months | 0.173 | 0.204 | 0.233 | 0.260 | 0.285 | 0.308 | 0.329 | 0.348 | 0.361 | |||||||||||||||||||||||||||
21 months | 0.161 | 0.193 | 0.223 | 0.252 | 0.279 | 0.304 | 0.326 | 0.347 | 0.361 | |||||||||||||||||||||||||||
18 months | 0.146 | 0.179 | 0.211 | 0.242 | 0.271 | 0.298 | 0.322 | 0.345 | 0.361 | |||||||||||||||||||||||||||
15 months | 0.130 | 0.164 | 0.197 | 0.230 | 0.262 | 0.291 | 0.317 | 0.342 | 0.361 | |||||||||||||||||||||||||||
12 months | 0.111 | 0.146 | 0.181 | 0.216 | 0.250 | 0.282 | 0.312 | 0.339 | 0.361 | |||||||||||||||||||||||||||
9 months | 0.090 | 0.125 | 0.162 | 0.199 | 0.237 | 0.272 | 0.305 | 0.336 | 0.361 | |||||||||||||||||||||||||||
6 months | 0.065 | 0.099 | 0.137 | 0.178 | 0.219 | 0.259 | 0.296 | 0.331 | 0.361 | |||||||||||||||||||||||||||
3 months | 0.034 | 0.065 | 0.104 | 0.150 | 0.197 | 0.243 | 0.286 | 0.326 | 0.361 | |||||||||||||||||||||||||||
0 months | — | — | 0.042 | 0.115 | 0.179 | 0.233 | 0.281 | 0.323 | 0.361 |
Schedule | ||||||||
March 31, 2023 | December 31, 2022 | ||||||||||
(unaudited) | |||||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash | $ | 30,600 | $ | 34,645 | |||||||
Accounts receivable, net | 48,055 | 44,538 | |||||||||
Inventories, net | 8,774 | 10,051 | |||||||||
Income taxes receivable | 424 | 502 | |||||||||
Prepaid expenses and other current assets | 12,625 | 13,484 | |||||||||
Total current assets | 100,478 | 103,220 | |||||||||
Non-current assets | |||||||||||
Restricted cash | 361 | 362 | |||||||||
Property and equipment, net | 12,137 | 11,899 | |||||||||
Intangibles assets, net | 183,252 | 192,504 | |||||||||
Goodwill | 369,870 | 369,706 | |||||||||
Operating lease right-of-use assets | 9,501 | 10,019 | |||||||||
Deferred tax assets | 54 | 55 | |||||||||
Other long-term assets | 876 | 971 | |||||||||
Total assets | $ | 676,529 | $ | 688,736 | |||||||
Liabilities and stockholders’ equity | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 23,264 | $ | 17,835 | |||||||
Accrued liabilities | 15,850 | 15,793 | |||||||||
Current portion of operating lease liabilities | 1,649 | 1,811 | |||||||||
Income taxes payable | 1,212 | 207 | |||||||||
Deferred revenue | 7,732 | 7,817 | |||||||||
Current portion of long-term debt and other borrowings, net | 5,370 | 5,345 | |||||||||
Total current liabilities | 55,077 | 48,808 | |||||||||
Non-current liabilities | |||||||||||
Deferred tax liabilities | 23,272 | 25,248 | |||||||||
Warrant liability | 30 | 33 | |||||||||
Non-current portion of operating lease liabilities | 8,961 | 9,275 | |||||||||
Long-term debt and other borrowings, net | 413,090 | 413,910 | |||||||||
Other long-term liabilities | 11,404 | 10,790 | |||||||||
Total liabilities | $ | 511,834 | $ | 508,064 | |||||||
Stockholders’ equity | |||||||||||
Common stock, voting; par value $0.0001 per share; 315,000,000 shares authorized, 76,552,595 and 76,292,241 shares issued and outstanding at March 31, 2023, and December 31, 2022, respectively | $ | 8 | $ | 8 | |||||||
Additional paid-in capital | 437,677 | 435,292 | |||||||||
Accumulated other comprehensive loss | (6,262) | (6,390) | |||||||||
Accumulated deficit | (266,728) | (248,238) | |||||||||
Total stockholders’ equity | 164,695 | 180,672 | |||||||||
Total liabilities and stockholders’ equity | $ | 676,529 | $ | 688,736 |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2023 | 2022 | ||||||||||
Revenue | |||||||||||
Services | $ | 47,550 | $ | 47,543 | |||||||
Products | 18,425 | 21,435 | |||||||||
Total revenue | 65,975 | 68,978 | |||||||||
Cost of revenue | |||||||||||
Cost of services | 16,543 | 17,550 | |||||||||
Cost of products | 13,774 | 17,723 | |||||||||
Total cost of revenue (exclusive of depreciation and amortization shown separately below) | 30,317 | 35,273 | |||||||||
Operating expenses | |||||||||||
Selling, general and administrative | 30,200 | 27,717 | |||||||||
Depreciation and amortization | 14,125 | 13,175 | |||||||||
Total operating expenses | 44,325 | 40,892 | |||||||||
Operating loss | (8,667) | (7,187) | |||||||||
Interest expense, including amortization of deferred financing costs, net | 10,195 | 6,624 | |||||||||
Change in fair value of warrant liability | (3) | (27) | |||||||||
Loss before income taxes | (18,859) | (13,784) | |||||||||
Income tax benefit | (369) | (2,212) | |||||||||
Net loss | $ | (18,490) | $ | (11,572) | |||||||
Loss per share: | |||||||||||
Basic | $ | (0.24) | $ | (0.16) | |||||||
Diluted | $ | (0.24) | $ | (0.16) | |||||||
Weighted average number of shares outstanding: | |||||||||||
Basic | 76,524,735 | 74,040,261 | |||||||||
Diluted | 76,524,735 | 74,040,261 |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2023 | 2022 | ||||||||||
Net loss | $ | (18,490) | $ | (11,572) | |||||||
Other comprehensive loss: | |||||||||||
Foreign currency translation adjustment | 128 | (123) | |||||||||
Comprehensive loss | $ | (18,362) | $ | (11,695) |
Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||
Shares | Amount | Amount | Amount | Amount | Amount | ||||||||||||||||||||||||||||||
Balance at December 31, 2022 | 76,292,241 | $ | 8 | $ | 435,292 | $ | (6,390) | $ | (248,238) | $ | 180,672 | ||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | 128 | — | 128 | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | 2,570 | — | — | 2,570 | |||||||||||||||||||||||||||||
Vesting of restricted stock units | 395,067 | — | — | — | — | — | |||||||||||||||||||||||||||||
Shares withheld related to net share settlement | (134,713) | — | (185) | — | — | (185) | |||||||||||||||||||||||||||||
Net loss | — | — | — | — | (18,490) | (18,490) | |||||||||||||||||||||||||||||
Balance at March 31, 2023 | 76,552,595 | $ | 8 | $ | 437,677 | $ | (6,262) | $ | (266,728) | $ | 164,695 | ||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||
Shares | Amount | Amount | Amount | Amount | Amount | ||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Three Months Ended | |||||||||||
March 31, | |||||||||||
2023 | 2022 | ||||||||||
Cash flows from operating activities | |||||||||||
Net loss | $ | (18,490) | $ | (11,572) | |||||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities | |||||||||||
Depreciation and amortization | 14,125 | 13,175 | |||||||||
Amortization of deferred financing costs | 625 | 587 | |||||||||
Non-cash reduction to the operating lease right-of-use assets | 539 | 587 | |||||||||
Deferred income taxes | (1,994) | (3,296) | |||||||||
Non-cash foreign currency loss (gain) | (395) | (3) | |||||||||
Stock-based compensation | 2,570 | 2,050 | |||||||||
Allowance for credit losses | (129) | 55 | |||||||||
Change in fair value of warrant liability | (3) | (27) | |||||||||
Change in operating assets and liabilities, net of operating assets and liabilities acquired: | |||||||||||
Accounts receivable | (3,227) | (2,635) | |||||||||
Inventories | 1,302 | 4,994 | |||||||||
Prepaid expenses and other current assets | 926 | 1,591 | |||||||||
Accounts payable and accrued liabilities | 5,589 | (8,511) | |||||||||
Deferred revenue | (108) | 132 | |||||||||
Income taxes payable | 1,079 | (213) | |||||||||
Operating lease liabilities | (496) | (894) | |||||||||
Net cash provided by (used in) operating activities | $ | 1,912 | $ | (3,980) | |||||||
Cash flows used in investing activities | |||||||||||
Additions to intangible assets | (3,814) | (2,790) | |||||||||
Additions to property and equipment | (1,025) | (635) | |||||||||
Payments for acquisitions, net of cash acquired | — | (45,078) | |||||||||
Net cash used in investing activities | $ | (4,839) | $ | (48,503) | |||||||
Cash flows from financing activities | |||||||||||
Repayment of term loan | (788) | (788) | |||||||||
Repayment of other borrowings—notes payable | (536) | (118) | |||||||||
Equity financing fees | — | (126) | |||||||||
Payment of deferred financing costs | — | (452) | |||||||||
Payment of financing lease obligations | — | (66) | |||||||||
Net cash used in financing activities | $ | (1,324) | $ | (1,550) | |||||||
Effect of exchange rate changes on cash | 202 | (26) | |||||||||
Change in cash and restricted cash | (4,049) | (54,059) |
Cash and restricted cash, beginning of period | 35,007 | 86,343 | |||||||||
Cash and restricted cash, end of period | 30,961 | 32,284 | |||||||||
Supplemental cash flow information: | |||||||||||
Interest paid | $ | 11,357 | $ | 7,717 | |||||||
Income taxes paid | 45 | 317 | |||||||||
Non-cash investing and financing activities: | |||||||||||
Fair value of KORE common stock issued pursuant to acquisitions | — | 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 | — | 420 |
Three Months Ended | ||||||||||||||||||||||||||
(In thousands, USD) | March 31, | |||||||||||||||||||||||||
2023 | 2022 | |||||||||||||||||||||||||
IoT Connectivity* | $ | 43,244 | $ | 43,053 | ||||||||||||||||||||||
Hardware Sales | 16,444 | 19,012 | ||||||||||||||||||||||||
Hardware Sales—bill-and-hold | 2,197 | 2,422 | ||||||||||||||||||||||||
Deployment services, professional services, referral services and other | 4,090 | 4,491 | ||||||||||||||||||||||||
Total | $ | 65,975 | $ | 68,978 |
(In thousands, USD) | 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 thousands, USD) | March 31, 2023 | December 31, 2022 | ||||||||||||
Accounts receivable | $ | 48,483 | $ | 45,097 | ||||||||||
Allowance for credit losses | (428) | (559) | ||||||||||||
Accounts receivable, net | $ | 48,055 | $ | 44,538 |
Number of awards outstanding (in thousands) | Weighted- average grant date fair value (per share) | Aggregate intrinsic value (in thousands) | |||||||||||||||
Unvested RSUs at December 31, 2022 | 5,515 | $ | 6.69 | $ | 34,191 | ||||||||||||
Granted | 4,230 | 1.72 | 7,297 | ||||||||||||||
Vested | (395) | 6.78 | (2,680) | ||||||||||||||
Forfeited and canceled | (123) | 6.97 | (859) | ||||||||||||||
Unvested RSUs at March 31, 2023 | 9,227 | $ | 5.54 | $ | 37,949 |
Three Months Ended | |||||||||||
March 31, | |||||||||||
(In thousands, USD) | 2023 | 2022 | |||||||||
Total Stock Compensation Expense | $ | 2,570 | $ | 2,050 | |||||||
Income tax benefit related to share-based compensation expense | 246 | 264 | |||||||||
Three Months Ended | ||||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||||
(In thousands, USD, except share and per share amounts) | 2023 | 2022 | ||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||
Net loss | $ | (18,490) | $ | (11,572) | ||||||||||||||||||||||
Denominator: | ||||||||||||||||||||||||||
Weighted average common shares outstanding | ||||||||||||||||||||||||||
Basic (in number) | 76,524,735 | 74,040,261 | ||||||||||||||||||||||||
Diluted (in number) | 76,524,735 | 74,040,261 | ||||||||||||||||||||||||
Net loss per unit | ||||||||||||||||||||||||||
Basic | $ | (0.24) | $ | (0.16) | ||||||||||||||||||||||
Diluted | $ | (0.24) | $ | (0.16) |
Three Months Ended | ||||||||||||||||||||
(Number of shares) | March 31, | |||||||||||||||||||
2023 | 2022 | |||||||||||||||||||
Common stock issued under the Backstop Agreement | 9,600,031 | 9,600,031 | ||||||||||||||||||
Restricted stock grants with only service conditions | 4,529,117 | 3,108,277 | ||||||||||||||||||
Private placement warrants | 272,779 | 272,779 |
June 30, 2021 (unaudited) | March 31, 2021 | |||||||
Assets | ||||||||
Total assets | $ | 0 | $ | 0 | ||||
Liabilities and Stockholder’s Equity | ||||||||
Total liabilities | $ | 0 | $ | 0 | ||||
Commitments and contingencies | 0 | 0 | ||||||
Stockholder’s equity: | ||||||||
Common stock, $0.01 par value; 1,000 shares authorized; 1,000 shares issued and outstanding as of June 30, 2021 and March 31, 2021 | 10 | 10 | ||||||
Due from stockholder | (10 | ) | (10 | ) | ||||
Total stockholder’s equity | 0 | 0 | ||||||
Total liabilities and stockholder’s equity | $ | 0 | $ | 0 | ||||
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 |
Assets: | ||||
Current assets: | ||||
Cash | $ | 1,936,020 | ||
Prepaid expenses | 725,671 | |||
Total current assets | 2,661,691 | |||
Investments held in Trust Account | 259,173,294 | |||
Total Assets | $ | 261,834,985 | ||
Liabilities and Shareholders’ Equity: | ||||
Current liabilities: | ||||
Accounts payable | $ | 67,232 | ||
Due to related party | 167,405 | |||
Accrued expenses | 724,099 | |||
Total current liabilities | 958,736 | |||
Deferred underwriting commissions | 9,070,915 | |||
Warrant liability | 12,030,850 | |||
Total liabilities | 22,060,501 | |||
Commitments and Contingencies | 0 | |||
Class A ordinary shares, $0.0001 par value; 23,477,448 shares subject to possible redemption at $10.00 per share | 234,774,480 | |||
Shareholders’ Equity: | ||||
Preference shares, $0.0001 par value; 5,000,000 shares authorized; NaN issued and outstanding | 0— | |||
Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized; 3,257,790 shares issued and outstanding (excluding 23,477,448 shares subject to possible redemption) | 326 | |||
Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 6,479,225 shares issued and outstanding | 648 | |||
Additional paid — in capital | 9,893,025 | |||
Accumulated deficit | (4,893,995 | ) | ||
Total shareholders’ equity | 5,000,004 | |||
Total Liabilities and Shareholders’ Equity | $ | 261,834,985 | ||
General and administrative expenses | $ | 514,538 | ||
General and administrative expenses — related party | 158,430 | |||
Loss from operations | (672,968 | ) | ||
Other (expense) income: | ||||
Change in fair value of warrants | (3,779,050 | ) | ||
Offering costs attributable to warrants | (446,271 | ) | ||
Net gain from investments held in Trust Account | 4,294 | |||
Net loss | $ | (4,893,995 | ) | |
Basic and diluted weighted average shares outstanding of Class A ordinary shares | 26,386,269 | |||
Basic and diluted net income per ordinary share, Class A ordinary shares | $ | 0.00 | ||
Basic and diluted weighted average shares outstanding of Class B ordinary shares | 6,355,484 | |||
Basic and diluted net loss per ordinary share, Class B ordinary shares | $ | (0.77 | ) | |
Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Total Shareholder’s Equity | |||||||||||||||||||||||||
Class A | Class B | |||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance — September 8, 2020 (inception) | 0— | $ | 0— | 0— | $ | 0— | $ | 0— | $ | 0— | $ | 0— | ||||||||||||||||
Issuance of Class B ordinary shares to Sponsor | — | — | 7,187,500 | 719 | 24,281 | — | 25,000 | |||||||||||||||||||||
Sale of units in initial public offering, less fair value of public warrants | 25,916,900 | 2,592 | — | — | 251,166,603 | — | 251,169,195 | |||||||||||||||||||||
Offering costs | — | — | — | — | (14,457,101 | ) | — | (14,457,101 | ) | |||||||||||||||||||
Sale of private placement units, less fair value of private placement warrants | 818,338 | 82 | — | — | 7,931,303 | — | 7,931,385 | |||||||||||||||||||||
Forfeiture of Class B ordinary shares | — | — | (708,275 | ) | (71 | ) | 71 | — | — | |||||||||||||||||||
Class A ordinary shares subject to possible redemption | (23,477,448 | ) | (2,348 | ) | — | — | (234,772,132 | ) | — | (234,774,480 | ) | |||||||||||||||||
Net loss | — | — | — | — | — | (4,893,995 | ) | (4,893,995 | ) | |||||||||||||||||||
Balance — December 31, 2020 | 3,257,790 | $ | 326 | 6,479,225 | $ | 648 | $ | 9,893,025 | $ | (4,893,995 | ) | $ | 5,000,004 | |||||||||||||||
Cash Flows from Operating Activities: | ||||
Net loss | $ | (4,893,995 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
General and administrative expenses paid by Sponsor in exchange for Class B ordinary shares | 25,000 | |||
Change in fair value of warrant liability | 3,779,050 | |||
Offering costs attributable to warrants | 446,271 | |||
Net gain from investments held in Trust Account | (4,294 | ) | ||
Changes in operating assets and liabilities: | ||||
Prepaid expenses | (725,671 | ) | ||
Accounts payable | 45,087 | |||
Due to related party | 167,405 | |||
Accrued expenses | 319,099 | |||
Net cash used in operating activities | (842,048 | ) | ||
Cash Flows from Investing Activities: | ||||
Cash deposited in Trust Account | (259,169,000 | ) | ||
Net cash used in investing activities | (259,169,000 | ) | ||
Cash Flows from Financing Activities: | ||||
Repayment of note payable to related parties | (127,686 | ) | ||
Proceeds received from initial public offering, gross | 259,169,000 | |||
Proceeds received from private placement | 8,183,380 | |||
Offering costs paid | (5,277,626 | ) | ||
Net cash provided by financing activities | 261,947,068 | |||
Net change in cash | 1,936,020 | |||
Cash — beginning of the period | 0 | |||
Cash — ending of the period | $ | 1,936,020 | ||
Supplemental disclosure of non — cash investing and financing activities: | ||||
Offering costs included in accounts payable | $ | 22,145 | ||
Offering costs included in accrued expenses | $ | 405,000 | ||
Offering costs included in note payable | $ | 127,686 | ||
Initial Fair Value of Warrant Liability | $ | 7,912,000 | ||
Deferred underwriting commissions | $ | 9,070,915 | ||
Initial value of Class A ordinary shares subject to possible redemption | $ | 230,663,390 | ||
Change in value of Class A ordinary shares subject to possible redemption | $ | 4,111,090 |
As Filed | Restatement Adjustment | As Restated | ||||||||||
Balance Sheet as of October 26, 2020 | ||||||||||||
Warrant liability | 0 | 7,912,000 | 7,912,000 | |||||||||
Ordinary shares subject to possible redemption | 238,575,390 | (7,912,000 | ) | 230,663,390 | ||||||||
Class A ordinary shares | 194 | 79 | 273 | |||||||||
Additional paid-in capital | 5,049,620 | 444,588 | 5,494,208 | |||||||||
Accumulated deficit | (50,529 | ) | (444,667 | ) | (495,196 | ) | ||||||
Pro Forma Balance Sheet as of October 26, 2020 (unaudited) | ||||||||||||
Warrant Liability | 0 | 9,713,800 | 9,713,800 | |||||||||
Ordinary shares subject to possible redemption | 247,423,470 | (9,713,800 | ) | 237,709,670 | ||||||||
Class A ordinary shares | 200 | 97 | 297 | |||||||||
Additional paid-in capital | 5,049,620 | 1,908,173 | 6,957,793 | |||||||||
Accumulated deficit | (50,529 | ) | (1,908,270 | ) | (1,958,799 | ) | ||||||
Balance Sheet as of December 31, 2020 | ||||||||||||
Warrant Liability | 0 | 12,030,850 | 12,030,850 | |||||||||
Ordinary shares subject to possible redemption | 246,805,330 | (12,030,850 | ) | 234,774,480 | ||||||||
Class A ordinary shares | 206 | 120 | 326 | |||||||||
Additional paid-in capital | 5,667,824 | 4,225,201 | 9,893,025 | |||||||||
Accumulated deficit | (668,674 | ) | (4,225,321 | ) | (4,893,995 | ) |
As Filed | Restatement Adjustment | As Restated | ||||||||||
Period from September 8, 2020 (inception) to December 31, 2020 | ||||||||||||
Income (Loss) from change in FV of warrants | 0 | (3,779,050 | ) | (3,779,050 | ) | |||||||
Offering costs attributable to warrants | 0 | (446,271 | ) | (446,271 | ) | |||||||
Net loss | (668,674 | ) | (4,225,321 | ) | (4,893,995 | ) | ||||||
Basic and diluted net loss per ordinary share, Class B ordinary shares | (0.11 | ) | (0.66 | ) | (0.77 | ) | ||||||
Cash Flow Statement for the period from September 8, 2020 (inception) to December 31, 2020 | ||||||||||||
Net Loss | (668,674 | ) | (4,225,321 | ) | (4,893,995 | ) | ||||||
Offering costs attributable to warrants | 0 | 446,271 | 446,271 | |||||||||
Change in fair value of warrant liability | 0 | 3,779,050 | 3,779,050 | |||||||||
Initial classification of warrant liability | 0 | 7,912,000 | 7,912,000 | |||||||||
Initial value of Class A ordinary shares subject to possible redemption | 238,575,390 | (7,912,000 | ) | 230,663,390 | ||||||||
Change in value of Class A ordinary shares to possible redemption | 8,229,940 | (4,118,850 | ) | 4,111,090 |
Description | December 31, 2020 | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | ||||||||||||
Assets: | ||||||||||||||||
Investments held in Trust Account — U.S. Treasury Securities | $ | 259,173,294 | $ | 259,173,294 | $ | 0 | $ | 0 | ||||||||
Liabilities: | ||||||||||||||||
Warrant Liability — Public Warrants | $ | 11,662,600 | $ | 11,662,600 | $ | 0 | $ | 0 | ||||||||
Warrant Liability — Private Placement Warrants | $ | 368,250 | $ | 0 | $ | 368,250 | $ | 0 |
At October 26, 2020 (Initial Public Offering) | At November 10, 2020 (Over-allotment) | |||||||
Stock price | $ | n/a | $ | n/a | ||||
Strike price | $ | 11.50 | $ | 11.50 | ||||
Term (in years) | 5.0 | 5.0 | ||||||
Volatility | 16.5 | % | 18.2 | % | ||||
Risk-free rate | 0.41 | % | 0.52 | % | ||||
Dividend yield | 0.0 | % | 0.0 | % | ||||
Fair value of warrants | $ | 0.92 | $ | 1.09 |
Public | Private Placement | Warrant Liabilities | ||||||||||
Fair value as of September 8, 2020 (inception) | $ | 0 | $ | 0 | $ | 0 | ||||||
Initial measurement on October 26, 2020 (IPO) | $ | 7,666,666 | $ | 245,334 | $ | 7,912,000 | ||||||
Change in valuation inputs or other assumptions(1) | $ | 1,416,667 | $ | 45,333 | $ | 1,462,000 | ||||||
Initial measurement on November 10, 2020 (Over-allotment) | $ | 333,139 | $ | 6,661 | $ | 339,800 | ||||||
Fair value as of November 10, 2020(2) | $ | 9,416,472 | $ | 297,328 | $ | 9,713,800 | ||||||
Change in valuation inputs or other assumptions(1) | $ | 2,246,128 | $ | 70,922 | $ | 2,317,050 | ||||||
Fair value as of December 31, 2020 | $ | 11,662,600 | $ | 368,250 | $ | 12,030,850 |
June 30, 2021 | December 31, 2020 | |||||||
(unaudited) | ||||||||
Assets: | ||||||||
Current assets: | ||||||||
Cash | $ | 690,065 | $ | 1,936,020 | ||||
Prepaid expenses | 523,795 | 725,671 | ||||||
Total current assets | 1,213,860 | 2,661,691 | ||||||
Investments held in Trust Account | 259,186,362 | 259,173,294 | ||||||
Total Assets | $ | 260,400,222 | $ | 261,834,985 | ||||
Liabilities and Shareholders’ Equity: | ||||||||
Current liabilities: | ||||||||
Accounts payable | 157,088 | 67,232 | ||||||
Due to related party | 771,968 | 167,405 | ||||||
Accrued expenses | 4,646,702 | 724,099 | ||||||
Total current liabilities | 5,575,758 | 958,736 | ||||||
Deferred underwriting commissions | 9,070,915 | 9,070,915 | ||||||
Warrant liability | 14,704,375 | 12,030,850 | ||||||
Total liabilities | 29,351,048 | 22,060,501 | ||||||
Commitments and Contingencies | ||||||||
Class A ordinary shares, $0.0001 par value; 22,604,917 and 23,477,448 shares subject to possible redemption at $10.00 per share as of June 30, 2021 and December 31, 2020, respectively | 226,049,170 | 234,774,480 | ||||||
Shareholders’ Equity: | 0 | 0 | ||||||
Preference shares, $0.0001 par value; 5,000,000 shares authorized; NaN issued and outstanding as of June 30, 2021 and December 31, 2020 | 0— | 0— | ||||||
Class A ordinary shares, $0.0001 par value; 500,000,000 shares authorized; 4,130,321 and 3,257,790 shares issued and outstanding (excluding 22,604,917 and 23,477,448 shares subject to possible redemption) as of June 30, 2021 and December 31, 2020, respectively | 414 | 326 | ||||||
Class B ordinary shares, $0.0001 par value; 50,000,000 shares authorized; 6,479,225 shares issued and outstanding as of June 30, 2021 and December 31, 2020 | 648 | 648 | ||||||
Additional paid — in capital | 18,618,247 | 9,893,025 | ||||||
Accumulated deficit | (13,619,305 | ) | (4,893,995 | ) | ||||
Total shareholders’ equity | 5,000,004 | 5,000,004 | ||||||
Total Liabilities and Shareholders’ Equity | $ | 260,400,222 | $ | 261,834,985 | ||||
Three Months Ended June 30, 2021 | Six Months Ended June 30, 2021 | |||||||
General and administrative expenses | $ | 3,176,951 | $ | 5,477,840 | ||||
General and administrative expenses – related party | 151,951 | 587,013 | ||||||
Loss from operations | (3,328,902 | ) | (6,064,853 | ) | ||||
Other (expense) income: | ||||||||
Change in fair value of warrants | (5,347,045 | ) | (2,673,525 | ) | ||||
Interest income from investments held in Trust Account | 6,498 | 13,068 | ||||||
Net income (loss) | $ | (8,669,449 | ) | $ | (8,725,310 | ) | ||
Basic and diluted weighted average shares outstanding of Class A ordinary shares | 26,735,238 | 26,735,238 | ||||||
Basic and diluted net income per ordinary share, Class A ordinary shares | $ | 0— | $ | 0— | ||||
Basic and diluted weighted average shares outstanding of Class B ordinary shares | 6,479,225 | 6,479,225 | ||||||
Basic and diluted net loss per ordinary share, Class B ordinary shares | $ | (1.34 | ) | $ | (1.35 | ) |
Ordinary Shares | Additional Paid-in Capital | Accumulated Deficit | Total Shareholder’s Equity | |||||||||||||||||||||||||
Class A | Class B | |||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||
Balance – January 1, 2021 | 3,257,790 | $ | 326 | 6,479,225 | $ | 648 | $ | 9,893,025 | $ | (4,893,995 | ) | $ | 5,000,004 | |||||||||||||||
Class A ordinary shares subject to redemption | 5,586 | 1 | — | — | 55,859 | — | 55,860 | |||||||||||||||||||||
Net loss | — | — | — | — | — | (55,861 | ) | (55,861 | ) | |||||||||||||||||||
Balance - March 31, 2021 (unaudited) | 3,263,376 | $ | 327 | 6,479,225 | $ | 648 | $ | 9,948,884 | $ | (4,949,856 | ) | $ | 5,000,003 | |||||||||||||||
Class A ordinary shares subject to redemption | 866,945 | 87 | — | — | 8,669,363 | — | 8,639,450 | |||||||||||||||||||||
Net loss | — | — | — | — | — | (8,669,449 | ) | (8,669,449 | ) | |||||||||||||||||||
Balance – June 30, 2021 (unaudited) | 4,130,321 | $ | 414 | 6,479,225 | $ | 648 | $ | 18,618,247 | $ | (13,619,305 | ) | $ | 5,000,004 | |||||||||||||||
Three Months Ended June 30, 2021 | Six Months Ended June 30, 2021 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net loss | $ | (8,669,449 | ) | $ | (8,725,310 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Change in fair value of warrant liability | 5,347,045 | 2,673,525 | ||||||
Interest income from investments held in Trust Account | (6,498 | ) | (13,068 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses | 102,348 | 201,874 | ||||||
Accounts payable | 11,482 | 89,857 | ||||||
Due to related party | 169,501 | 604,563 | ||||||
Accrued expenses | 2,000,001 | 3,922,604 | ||||||
Net cash used in operating activities | (1,045,570 | ) | (1,245,955 | ) | ||||
Net change in cash | (1,045,570 | ) | (1,245,955 | ) | ||||
Cash – beginning of the period | 1,735,635 | 1,936,020 | ||||||
Cash – ending of the period | $ | 690,065 | $ | 690,065 | ||||
Supplemental disclosure of non-cash investing and financing activities | ||||||||
Change in value of Class A ordinary shares subject to possible redemption | $ | (8,669,450 | ) | $ | (8,725,310 | ) | ||
June 30, 2021 | Quoted Prices in Active Markets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Unobservable Inputs (Level 3) | |||||||||||||
Description | ||||||||||||||||
Assets: | ||||||||||||||||
Investments held in Trust Account - U.S. Treasury Securities | $ | 259,186,362 | $ | 259,183,362 | $ | 0— | $ | 0— | ||||||||
Liabilities: | ||||||||||||||||
Warrant Liability - Public Warrants | $ | 14,254,292 | $ | 14,254,292 | $ | 0— | $ | 0— | ||||||||
Warrant Liability - Private Placement | $ | 450,083 | $ | 0— | $ | 450,083 | $ | 0— |
Public | Private Placement | Warrant Liabilities | ||||||||||
Fair value as of December 31, 2020 | $ | 11,662,600 | $ | 368,250 | $ | 12,030,850 | ||||||
Changes in valuation inputs or other assumptions | 2,591,692 | 81,833 | 2,673,525 | |||||||||
Fair value as of June 30, 2021 | $ | 14,254,292 | $ | 450,083 | $ | 14,704,375 |
As filed | Restatement Adjustment | As Restated | ||||||||||
Balance Sheet as of December 31, 2020 | ||||||||||||
Warrant Liability | 0 | 12,030,850 | 12,030,850 | |||||||||
Ordinary shares subject to possible redemption | 246,805,330 | 12,030,850 | 234,774,480 | |||||||||
Class A ordinary shares | 206 | 120 | 326 | |||||||||
Additional paid-in capital | 5,667,824 | 4,225,201 | 9,893,025 | |||||||||
Accumulated deficit | (668,674 | ) | (4,225,321 | ) | (4,893,995 | ) |
December 31, 2020 | December 31, 2019 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 10,321 | $ | 8,295 | ||||
Accounts receivable, net of allowances for credits and doubtful accounts of $2,804 and $2,700, respectively | 40,661 | 34,803 | ||||||
Inventories, net | 5,842 | 2,710 | ||||||
Prepaid expenses and other receivables | 5,429 | 3,331 | ||||||
Total current assets | 62,253 | 49,139 | ||||||
Non-current assets | ||||||||
Restricted cash | 372 | 397 | ||||||
Property and equipment, net | 13,709 | 15,311 | ||||||
Intangible assets, net | 240,203 | 276,902 | ||||||
Goodwill | 382,749 | 382,247 | ||||||
Deferred tax assets | 122 | 37 | ||||||
Other long-term assets | 611 | 813 | ||||||
Total assets | $ | 700,019 | $ | 724,846 | ||||
Liabilities, temporary equity and stockholders’ equity | ||||||||
Current liabilities | ||||||||
Bank indebtedness | $ | — | $ | 8,300 | ||||
Accounts payable | 22,978 | 15,962 | ||||||
Accrued liabilities | 17,209 | 11,934 | ||||||
Income taxes payable | 244 | 290 | ||||||
Current portion of capital lease obligations | 856 | 828 | ||||||
Deferred revenue | 7,772 | 6,068 | ||||||
Current portion of term loan payable | 3,161 | 3,248 | ||||||
Total current liabilities | 52,220 | 46,630 | ||||||
Long-term liabilities | ||||||||
Deferred tax liabilities | 42,840 | 48,915 | ||||||
Due to related parties | 1,615 | 1,472 | ||||||
Warrant liability | 15,944 | 8,459 | ||||||
Capital lease obligations | 508 | 484 | ||||||
Term-loan payable, net | 298,404 | 299,734 | ||||||
Other long-term liabilities | 4,377 | 2,917 | ||||||
Total liabilities | $ | 415,908 | $ | 408,611 | ||||
Commitments and contingencies (note 9) |
December 31, 2020 | December 31, 2019 | |||||||
Temporary equity | ||||||||
Series A Preferred Stock; par value $1,000 per share; 42,800 shares authorized; 42,750 shares issued and outstanding at December 31, 2020 and December 31, 2019, respectively | $ | 77,562 | $ | 68,360 | ||||
Series A-1 Preferred Stock; par value $1,000 per share; 80,000 shares authorized; 60,013 shares issued and outstanding at December 31, 2020 and December 31, 2019, respectively | 78,621 | 69,495 | ||||||
Series B Preferred Stock; par value $1,000 per share; 57,000 shares authorized; 57,000 shares issued and outstanding at December 31, 2020 and December 31, 2019, respectively | 90,910 | 82,338 | ||||||
Series C Convertible Preferred Stock; par value $1,000 per share; 45,000 shares authorized; 16,802 shares issued and outstanding at December 31, 2020 and December 31, 2019, respectively | 16,802 | 16,802 | ||||||
Total temporary equity | 263,895 | 236,995 | ||||||
Stockholders’ equity | ||||||||
Common stock, voting; par value $0.01 per share; 400,000 shares authorized; 217,619 and 217,819 shares issued and outstanding at December 31, 2020 and December 31, 2019, respectively | 2 | 2 | ||||||
Additional paid-in capital | 135,617 | 161,556 | ||||||
Accumulated other comprehensive loss | (1,677 | ) | (3,793 | ) | ||||
Accumulated deficit | (113,726 | ) | (78,525 | ) | ||||
Total stockholders’ equity | 20,216 | 79,240 | ||||||
Total liabilities, temporary equity and stockholders’ equity | $ | 700,019 | $ | 724,846 | ||||
For the years ended | December 31, 2020 | December 31, 2019 | ||||||
Revenues | ||||||||
Services | $ | 172,845 | $ | 159,425 | ||||
Products | 40,915 | 9,727 | ||||||
Total revenues | 213,760 | 169,152 | ||||||
Cost of revenues | ||||||||
Cost of services | 64,520 | 57,621 | ||||||
Cost of products | 33,410 | 6,044 | ||||||
Total cost of revenues (exclusive of depreciation and amortization shown separately below) | 97,930 | 63,665 | ||||||
Operating expenses | ||||||||
Selling, general and administrative | 72,883 | 65,298 | ||||||
Depreciation and amortization | 52,488 | 48,131 | ||||||
Intangible asset impairment loss | — | 3,892 | ||||||
Total operating expenses | 125,371 | 117,321 | ||||||
Operating loss | (9,541 | ) | (11,834 | ) | ||||
Interest expense, including amortization of debt issuance costs, net | (23,493 | ) | (24,785 | ) | ||||
Change in fair value of warrant liability | (7,485 | ) | 235 | |||||
Loss before income taxes | (40,519 | ) | (36,384 | ) | ||||
Income tax provision (benefit) | ||||||||
Current | 1,051 | (1,450 | ) | |||||
Deferred | (6,369 | ) | (11,491 | ) | ||||
Total income tax benefit | (5,318 | ) | (12,941 | ) | ||||
Net loss | $ | (35,201 | ) | $ | (23,443 | ) | ||
Loss per share: | ||||||||
Basic | $ | (273.03 | ) | $ | (201.29 | ) | ||
Diluted | (273.03 | ) | (201.29 | ) | ||||
Weighted average shares outstanding (in Number): | ||||||||
Basic | 227,455 | 224,000 | ||||||
Diluted | 227,455 | 224,000 |
For the years ended | December 31, 2020 | December 31, 2019 | ||||||
Net loss | $ | (35,201 | ) | $ | (23,443 | ) | ||
Other comprehensive income (loss): | ||||||||
Foreign currency translation adjustment | 2,116 | 517 | ||||||
Comprehensive loss | $ | (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 Income (Loss) | Accumulated Deficit | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||
Temporary Equity | Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Amount | Shares | Amount | Amount | Amount | Amount | Amount | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 43 | $ | 60,270 | 60 | $ | 61,444 | 57 | $ | 76,832 | 17 | $ | 16,802 | $ | 215,348 | 214 | $ | 2 | $ | 174,601 | $ | (4,310 | ) | $ | (55,082 | ) | $ | 115,211 | |||||||||||||||||||||||||||||||||
Issuance of stock | — | — | — | — | — | — | — | — | — | 4 | — | 7,000 | — | — | 7,000 | |||||||||||||||||||||||||||||||||||||||||||||
Repurchase of stock | — | — | — | — | — | — | — | — | — | — | — | (80 | ) | — | — | (80 | ) | |||||||||||||||||||||||||||||||||||||||||||
Accrued dividends payable | — | 8,090 | — | 8,051 | — | 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 | 43 | $ | 68,360 | 60 | $ | 69,495 | 57 | $ | 82,338 | 17 | $ | 16,802 | $ | 236,995 | 218 | $ | 2 | $ | 161,556 | $ | (3,793 | ) | $ | (78,525 | ) | $ | 79,240 | |||||||||||||||||||||||||||||||||
Repurchase of stock | — | — | — | — | — | — | — | — | — | — | — | (200 | ) | — | — | (200 | ) | |||||||||||||||||||||||||||||||||||||||||||
Accrued dividends payable | — | 9,202 | — | 9,126 | — | 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 | 43 | $ | 77,562 | 60 | $ | 78,621 | 57 | $ | 90,910 | 17 | $ | 16,802 | $ | 263,895 | 218 | $ | 2 | $ | 135,617 | $ | (1,677 | ) | $ | (113,726 | ) | $ | 20,216 | |||||||||||||||||||||||||||||||||
For the years ended | December 31, 2020 | December 31, 2019 | ||||||
Cash flows from operating activities | ||||||||
Net loss | $ | (35,201 | ) | $ | (23,443 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities | ||||||||
Depreciation and amortization | 52,488 | 48,131 | ||||||
Intangible asset impairment loss | — | 3,892 | ||||||
Amortization of deferred financing costs | 2,313 | 2,063 | ||||||
Deferred income taxes | (6,178 | ) | (11,419 | ) | ||||
Non-cash foreign currency loss (gain) | 233 | 1,440 | ||||||
Share-based compensation | 1,161 | 1,682 | ||||||
Change in fair value of warrant liability | 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 | (5,432 | ) | 1,765 | |||||
Inventories | (3,027 | ) | (566 | ) | ||||
Prepaid expenses and other receivables | (2,020 | ) | 169 | |||||
Accounts payable and accrued liabilities | 13,100 | (2,458 | ) | |||||
Deferred revenue | 1,583 | (44 | ) | |||||
Income taxes payable | (34 | ) | (1,158 | ) | ||||
Change in minimum carrier commitment liability | — | (3,297 | ) | |||||
Cash provided by operating activities | $ | 26,471 | $ | 14,253 | ||||
Cash flows from investing activities | ||||||||
Additions to intangible assets | (10,135 | ) | (10,491 | ) | ||||
Additions to property and equipment | (1,834 | ) | (2,391 | ) | ||||
Acquisition Integron, LLC, net of cash acquired | 366 | (37,488 | ) | |||||
Cash used in investing activities | $ | (11,603 | ) | $ | (50,370 | ) | ||
Cash flows from financing activities | ||||||||
Proceeds from revolving credit facility | — | 8,135 | ||||||
Repayment of revolving credit facility | (8,300 | ) | — | |||||
Repayment of term loan | (3,526 | ) | (2,888 | ) | ||||
Proceeds from term loan | — | 35,000 | ||||||
Deferred finance fees | — | (2,089 | ) | |||||
Repurchase of common stock | (200 | ) | (80 | ) | ||||
Repayment of capital lease obligations | (692 | ) | (1,080 | ) | ||||
Cash (used in)/provided by financing activities | $ | (12,718 | ) | $ | 36,998 | |||
Effect of Exchange Rate Change on Cash and Cash Equivalents | (149 | ) | (162 | ) | ||||
Change in Cash and Cash Equivalents and Restricted Cash | 2,001 | 719 | ||||||
Cash and Cash Equivalents and Restricted Cash, beginning of year | 8,692 | 7,973 | ||||||
Cash and Cash Equivalents and Restricted Cash, end of year | $ | 10,693 | $ | 8,692 | ||||
Non-cash investing and financing activities: | ||||||||
Equity issued for acquisition of Integron LLC | $ | — | $ | 7,000 | ||||
Capital leases | 622 | 1,120 | ||||||
Supplemental cash flow information: | ||||||||
Interest paid | $ | 21,544 | $ | 23,977 | ||||
Taxes paid (net of refunds) | 379 | 417 |
Computer hardware | 30 | % | |||||
20 | % | ||||||
Furniture and fixtures | 20 | % | |||||
Customer relationships | ||||||||
Technology | ||||||||
Carrier contracts | 10 years | |||||||
Trademarks | ||||||||
Internally developed |
(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) |
December 31, 2021 | |||||||||||||||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | As Revised | |||||||||||||||||||||||||
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) | ||||||||||||||||||||||||
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 |
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, plant 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 |
(in ‘000) | December 31, 2020 | December 31, 2019 | ||||||
Connectivity* | $ | 152,996 | $ | 147,927 | ||||
Hardware Sales | 29,601 | 8,767 | ||||||
Hardware Sales – bill-and-hold | 11,314 | 960 | ||||||
Deployment services, professional services and other | 19,849 | 11,498 | ||||||
Total | $ | 213,760 | $ | 169,152 | ||||
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 |
(in ‘000) | December 31, 2020 | December 31, 2019 | ||||||
Computer hardware | $ | 13,634 | $ | 11,383 | ||||
Computer software | 8,211 | 7,907 | ||||||
Furniture and fixtures | 2,284 | 2,170 | ||||||
Networking equipment | 8,151 | 6,537 | ||||||
Leasehold improvements | 2,803 | 2,739 | ||||||
Total property and equipment | 35,083 | 30,736 | ||||||
Less: accumulated depreciation | (21,374 | ) | (15,425 | ) | ||||
Property and equipment (Net) | $ | 13,709 | $ | 15,311 | ||||
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 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 | $ | 376,000 | ||
Integron acquisition | 6,527 | |||
Measurement period adjustment – Aspider | (98 | ) | ||
Currency translation | (182 | ) | ||
December 31, 2019 | $ | 382,247 | ||
Measurement period adjustment – Integron | (366 | ) | ||
Currency translation | 868 | |||
December 31, 2020 | $ | 382,749 | ||
(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) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Value | |||||||||
Customer relationships | $ | 307,355 | $ | (143,230 | ) | $ | 164,125 | |||||
Technology | 46,229 | (33,394 | ) | 12,835 | ||||||||
Carrier contracts | 65,700 | (33,918 | ) | 31,782 | ||||||||
Trademarks | 15,828 | (7,608 | ) | 8,220 | ||||||||
Internally developed and acquired computer software | 45,148 | (21,908 | ) | 23,240 | ||||||||
Total as of December 31, 2020 | $ | 480,260 | $ | (240,058 | ) | $ | 240,203 | |||||
(in ‘000) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Value | |||||||||
Customer relationships | $ | 306,656 | $ | (116,655 | ) | $ | 190,001 | |||||
Technology | 45,953 | (26,927 | ) | 19,026 | ||||||||
Carrier contracts | 65,700 | (27,348 | ) | 38,352 | ||||||||
Trademarks | 15,721 | (5,955 | ) | 9,766 | ||||||||
Internally developed and acquired computer software | 34,176 | (14,419 | ) | 19,757 | ||||||||
Total as of December 31, 2019 | $ | 468,206 | $ | (191,304 | ) | $ | 276,902 | |||||
Years | ||||||||
Customer relationships | 5.0 | |||||||
Technology | 2.6 | |||||||
Carrier contracts | 3.6 | |||||||
Trademarks | 4.3 | |||||||
Internally developed | 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 |
(in ‘000) | Amount | |||
2021 | $ | 46,304 | ||
2022 | 44,615 | |||
2023 | 41,735 | |||
2024 | 37,020 | |||
2025 | 34,482 | |||
Thereafter | 36,047 | |||
Total | $ | 240,203 | ||
(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, 2020 | December 31, 2019 | ||||||
Term Loan – UBS | $ | 308,959 | $ | 312,112 | ||||
Term Loan – BNP Paribas | 9 | 103 | ||||||
Total | 308,968 | 312,215 | ||||||
Less – current portion | 3,161 | 3,248 | ||||||
Less – debt issuance cost, net of accumulated amortization of $3.7 million and $1.8 million, respectively | 7,403 | 9,233 | ||||||
Total – Long-term, net | $ | 298,404 | $ | 299,734 | ||||
(In thousands, USD) | Amount | ||||
2023 | $ | 5,345 | |||
2024 | 300,063 | ||||
2025 | — | ||||
2026 | — | ||||
2027 | — | ||||
Thereafter | 120,000 | ||||
Total | $ | 425,408 |
(in ‘000) | Amount | |||
2021 | $ | 3,161 | ||
2022 | 3,153 | |||
2023 | 3,153 | |||
2024 | 299,501 | |||
2025 | — | |||
Total | $ | 308,968 | ||
(in ‘000) | December 31, 2020 | December 31, 2019 | ||||||
United States | $ | (25,283 | ) | $ | (27,728 | ) | ||
Foreign | (15,236 | ) | (8,656 | ) | ||||
Total loss before income taxes | $ | (40,519 | ) | $ | (36,384 | ) | ||
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) |
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) |
(in ‘000) | December 31, 2020 | December 31, 2019 | ||||||
Current: | ||||||||
Federal | $ | — | $ | (1,136 | ) | |||
State | 546 | (44 | ) | |||||
Foreign | 505 | (270 | ) | |||||
Total current provision (benefit) | 1,051 | (1,450 | ) | |||||
Deferred: | ||||||||
Federal | (7,120 | ) | (8,626 | ) | ||||
State | 2,285 | (2,117 | ) | |||||
Foreign | (1,534 | ) | (748 | ) | ||||
Total deferred benefit | $ | (6,369 | ) | $ | (11,491 | ) | ||
Total benefit | $ | (5,318 | ) | $ | (12,941 | ) | ||
(in ‘000) | December 31, 2020 | December 31, 2019 | ||||||
Benefit for income taxes at 21% rate | $ | (8,509 | ) | $ | (7,641 | ) | ||
State taxes, net of federal benefit | (947 | ) | (2,161 | ) | ||||
Change in valuation allowance | 1,016 | — | ||||||
Rate change | 2,856 | — | ||||||
Credits | (811 | ) | (541 | ) | ||||
Permanent differences and other | 307 | (41 | ) | |||||
Revaluation of warrants | 1,572 | (49 | ) | |||||
Uncertain tax provision | 226 | (984 | ) | |||||
Foreign withholding tax | 420 | — | ||||||
Foreign rate differential | (1,448 | ) | (1,524 | ) | ||||
Benefit for income taxes | $ | (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 | % |
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) |
(in ‘000) | December 31, 2020 | December 31, 2019 | ||||||
Deferred tax assets: | ||||||||
Net operating loss carry-forward | $ | 10,604 | $ | 11,618 | ||||
Credit carry-forward | 2,468 | 1,476 | ||||||
Interest expense limitation carry-forward | 7,811 | 7,087 | ||||||
Non-deductible reserves | 520 | 444 | ||||||
Accruals and other temporary differences | 1,047 | 423 | ||||||
Stock compensation | 698 | 439 | ||||||
Property and equipment | 1,089 | 855 | ||||||
Gross deferred tax assets | $ | 24,237 | $ | 22,342 | ||||
Less valuation allowance | (7,164 | ) | (6,148 | ) | ||||
Total deferred tax assets (after valuation allowance) | $ | 17,073 | $ | 16,194 | ||||
Deferred tax liabilities: | ||||||||
Property and equipment | (4,089 | ) | (3,849 | ) | ||||
Intangible assets | (49,461 | ) | (56,329 | ) | ||||
Goodwill | (6,241 | ) | (4,894 | ) | ||||
Total deferred tax liabilities | $ | (59,791 | ) | $ | (65,072 | ) | ||
Net deferred tax liabilities | $ | (42,718 | ) | $ | (48,878 | ) | ||
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 |
(in ‘000) | December 31, 2020 | December 31, 2019 | ||||||
Unrecognized tax benefits at the beginning of the year | $ | 3,658 | $ | 4,508 | ||||
Additions for tax positions of current year | ||||||||
Additions for tax positions of prior years | 209 | |||||||
Reductions for tax positions of prior years | (850 | ) | ||||||
Expirations statutes of limitation | ||||||||
Unrecognized tax benefits at the end of the year | $ | 3,867 | $ | 3,658 | ||||
(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 ‘000) | Amount | ||||||||
2021 | $ | 2,401 | |||||||
(In thousands, USD) | (In thousands, USD) | Amount | |||||||
2022 | 1,895 | 2022 | $ | 2,924 | |||||
2023 | 942 | 2023 | 1,904 | ||||||
2024 | 566 | 2024 | 1,495 | ||||||
2025 | 218 | 2025 | 1,170 | ||||||
2026 | 2026 | 958 | |||||||
Thereafter | Thereafter | 3,412 | |||||||
Total | $ | 6,022 | Total | $ | 11,863 | ||||
(in ‘000) | Amount | |||
2021 | $ | 903 | ||
2022 | 243 | |||
2023 | 155 | |||
2024 | 130 | |||
2025 | 30 | |||
Total minimum lease payments | $ | 1,461 | ||
Interest expense | (97 | ) | ||
Total | $ | 1,364 | ||
(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) | Amount | |||
2021 | $ | 24,317 | ||
2022 | 8,351 | |||
2023 | 1,351 | |||
2024 | 1,351 | |||
2025 | 1,351 | |||
Total | $ | 36,721 | ||
(in ‘000) | Series A | Series A-1 | Series B | |||||||||
Accumulated and unpaid, December 31, 2018 | $ | 17,520 | $ | 226 | $ | 17,594 | ||||||
Accumulated | 8,090 | 8,568 | 7,744 | |||||||||
Distributed | — | — | — | |||||||||
Accumulated and unpaid, December 31, 2019 | $ | 25,610 | $ | 8,794 | $ | 25,338 | ||||||
Accumulated | 9,202 | 9,814 | 8,572 | |||||||||
Distributed | — | — | — | |||||||||
Accumulated and unpaid, December 31, 2020 | $ | 34,812 | $ | 18,608 | $ | 33,910 | ||||||
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 |
December 31, 2020 | December 31, 2019 | |||||||
Risk-free interest rate | 1.58 | % | 1.58 – 2.47 | % | ||||
Expected term (life) of options (in years) | 2 | 2 – 4 | ||||||
Expected dividends | 0 | % | 0 | % | ||||
Expected volatility | 86.3 | % | 67.9 – 86.3 | % |
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 |
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 | 33,516 | $ | 195 | $ | 1,750 | 9.3 | ||||||||||
Granted | 4,212 | 197 | 1,750 | |||||||||||||
Exercised | — | — | — | |||||||||||||
Forfeited | (5,448 | ) | 195 | 1,750 | ||||||||||||
Expired | — | — | — | |||||||||||||
Balance, December 31, 2019 | 32,280 | 196 | 1,750 | 8.4 | ||||||||||||
Granted | 5,181 | 167 | 1,750 | |||||||||||||
Exercised | — | — | — | |||||||||||||
Forfeited | (2,484 | ) | 195 | 1,750 | ||||||||||||
Expired | — | — | — | |||||||||||||
Balance, December 31, 2020 | 34,977 | $ | 191 | $ | 1,750 | 7.7 | ||||||||||
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 | — |
(in ‘000) | December 31, 2020 | December 31, 2019 | ||||||
Total share-based compensation expense | $ | 1,161 | $ | 1,682 | ||||
Unrecognized compensation cost | 3,416 | 3,793 | ||||||
Remaining recognition period (in years) | 2.7 | 3.4 |
December 31, 2020 | December 31, 2019 | |||||||
Range of exercise prices | $ | 1000 – $2500 | $ | 1000 – $2500 | ||||
Number | 12,446 | 6,883 | ||||||
Weighted average remaining contractual term (in years) | 7.3 | 8.3 | ||||||
Weighted average exercise price | $ | 1,750 | $ | 1,750 |
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, 2020 | December 31, 2019 | ||||||
Numerator: | ||||||||
Net loss attributable to the Company | $ | (35,201 | ) | $ | (23,443 | ) | ||
Less dividends to preferred shareholder | 26,899 | 21,647 | ||||||
Net loss attributable to common shareholders | $ | (62,100 | ) | $ | (45,090 | ) | ||
Denominator: | ||||||||
Weighted average common shares, basic and diluted (in number) | 227,455 | 224,000 | ||||||
Net loss per share attributable to common shareholder, basic and diluted | $ | (273.03 | ) | $ | (201.29 | ) | ||
(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 |
(number of shares) | December 31, 2020 | December 31, 2019 | ||||||
Series C Convertible Preferred Stock | 16,802 | 16,802 | ||||||
Stock Options | 34,977 | 32,280 |
(in ‘000) | December 31, 2020 | December 31, 2019 | ||||||
Interfusion B.V. | $ | 985 | $ | 898 | ||||
T-Fone B.V. | $ | 630 | $ | 574 |
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 |
June 30, 2021 (unaudited) | December 31, 2020 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 8,297 | $ | 10,321 | ||||
Accounts receivable, net of allowances for credits and doubtful accounts of $2,257 and $2,804, at June 30, 2021, and December 31, 2020, respectively | 47,640 | 40,661 | ||||||
Inventories, net | 9,864 | 5,842 | ||||||
Prepaid expenses and other receivables | 14,246 | 5,429 | ||||||
Total current assets | 80,047 | 62,253 | ||||||
Non-current assets | ||||||||
Restricted cash | 371 | 372 | ||||||
Property and equipment, net | 12,606 | 13,709 | ||||||
Intangible assets, net | 221,990 | 240,203 | ||||||
Goodwill | 382,428 | 382,749 | ||||||
Deferred tax assets | 119 | 122 | ||||||
Other long-term assets | 3,532 | 611 | ||||||
Total assets | $ | 701,093 | $ | 700,019 | ||||
Liabilities, temporary equity and stockholders’ (deficit) equity | ||||||||
Current liabilities | ||||||||
Revolving credit facility | $ | 22,000 | $ | — �� | ||||
Accounts payable | 23,181 | 22,978 | ||||||
Accrued liabilities | 12,496 | 17,209 | ||||||
Income taxes payable | 199 | 244 | ||||||
Current portion of capital lease obligations | 641 | 856 | ||||||
Deferred revenue | 7,074 | 7,772 | ||||||
Current portion of term loan payable | 3,153 | 3,161 | ||||||
Total current liabilities | 68,744 | 52,220 | ||||||
Long-term liabilities | ||||||||
Deferred tax liabilities | 38,474 | 42,840 | ||||||
Due to related parties | 1,565 | 1,615 | ||||||
Warrant liability | 13,561 | 15,944 | ||||||
Capital lease obligations | 362 | 508 | ||||||
Term loan payable, net | 297,773 | 298,404 | ||||||
Other long-term liabilities | 4,296 | 4,377 | ||||||
Total liabilities | $ | 424,775 | $ | 415,908 | ||||
Commitments and contingencies (note 6) |
June 30, 2021 (unaudited) | December 31, 2020 | |||||||
Temporary equity | ||||||||
Series A Preferred Stock; par value $1,000 per share; 42,800 shares authorized; 42,750 shares issued and outstanding at June 30, 2021, and December 31, 2020, respectively | $ | 82,562 | $ | 77,562 | ||||
Series A-1 Preferred Stock; par value $1,000 per share; 80,000 shares authorized; 60,013 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively | 83,982 | 78,621 | ||||||
Series B Preferred Stock; par value $1,000 per share; 57,000 shares authorized, issued and outstanding at June 30, 2021 and December 31, 2020, respectively | 95,474 | 90,910 | ||||||
Series C Convertible Preferred Stock; par value $1,000 per share; 45,000 shares authorized; 16,502 and 16,802 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively | 16,502 | 16,802 | ||||||
Total temporary equity | 278,520 | 263,895 | ||||||
Stockholders’ equity (deficit) | ||||||||
Common stock, voting; par value $0.01 per share; 400,000 shares authorized; 217,619 shares issued and outstanding at June 30, 2021, and December 31, 2020, respectively | 2 | 2 | ||||||
Additional paid-in capital | 121,322 | 135,617 | ||||||
Accumulated other comprehensive loss | (1,834 | ) | (1,677 | ) | ||||
Accumulated deficit | (121,692 | ) | (113,726 | ) | ||||
Total stockholders’ (deficit) equity | (2,202 | ) | 20,216 | |||||
Total liabilities, temporary equity and stockholders’ (deficit) equity | $ | 701,093 | $ | 700,019 | ||||
For the three months ended June 30, | For the six months ended June 30, | For the three months ended | |||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | March 31, 2022 | |||||||||||||||||||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||||||||||||||||||
As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue | ||||||||||||||||||||||||||||||||||||||||||||
Services | $ | 46,375 | $ | 41,372 | $ | 91,437 | $ | 83,677 | Services | $ | 47,506 | $ | — | $ | — | $ | 37 | $ | 47,543 | ||||||||||||||||||||||||||
Products | 14,368 | 9,690 | 24,603 | 17,363 | Products | 21,435 | — | — | — | 21,435 | |||||||||||||||||||||||||||||||||||
Total revenues | 60,743 | 51,062 | 116,040 | 101,040 | |||||||||||||||||||||||||||||||||||||||||
Cost of revenues | |||||||||||||||||||||||||||||||||||||||||||||
Total revenue | Total revenue | 68,941 | — | — | 37 | 68,978 | |||||||||||||||||||||||||||||||||||||||
Cost of revenue | Cost of revenue | ||||||||||||||||||||||||||||||||||||||||||||
Cost of services | 17,826 | 15,095 | 34,037 | 31,918 | Cost of services | 17,529 | — | — | 21 | 17,550 | |||||||||||||||||||||||||||||||||||
Cost of products | 11,511 | 7,449 | 19,672 | 13,068 | Cost of products | 17,443 | — | — | 280 | 17,723 | |||||||||||||||||||||||||||||||||||
Total cost of revenues (exclusive of depreciation and amortization shown separately below) | 29,337 | 22,544 | 53,709 | 44,986 | |||||||||||||||||||||||||||||||||||||||||
Total cost of revenue (exclusive of depreciation and amortization shown separately below) | Total cost of revenue (exclusive of depreciation and amortization shown separately below) | 34,972 | — | — | 301 | 35,273 | |||||||||||||||||||||||||||||||||||||||
Operating expenses | Operating expenses | ||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative | 23,004 | 16,792 | 40,525 | 32,115 | Selling, general and administrative | 27,628 | — | 79 | 10 | 27,717 | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 12,393 | 13,650 | 25,507 | 25,708 | Depreciation and amortization | 13,196 | — | — | (21) | 13,175 | |||||||||||||||||||||||||||||||||||
Total operating expenses | 35,397 | 30,442 | 66,032 | 57,823 | Total operating expenses | 40,824 | — | 79 | (11) | 40,892 | |||||||||||||||||||||||||||||||||||
Operating loss | (3,991 | ) | (1,924 | ) | (3,701 | ) | (1,769 | ) | |||||||||||||||||||||||||||||||||||||
Operating income (loss) | Operating income (loss) | (6,855) | — | (79) | (253) | (7,187) | |||||||||||||||||||||||||||||||||||||||
Interest expense, including amortization of deferred financing costs, net | 5,506 | 6,501 | 10,565 | 13,084 | Interest expense, including amortization of deferred financing costs, net | 6,624 | — | — | — | 6,624 | |||||||||||||||||||||||||||||||||||
Change in fair value of warrant liability | 41 | 4,743 | (2,383 | ) | 2,831 | Change in fair value of warrant liability | (27) | — | — | — | (27) | ||||||||||||||||||||||||||||||||||
Loss before income taxes | (9,538 | ) | (13,168 | ) | (11,883 | ) | (17,684 | ) | Loss before income taxes | (13,452) | — | (79) | (253) | (13,784) | |||||||||||||||||||||||||||||||
Income tax provision (benefit) | |||||||||||||||||||||||||||||||||||||||||||||
Current | 289 | 279 | 391 | 510 | |||||||||||||||||||||||||||||||||||||||||
Deferred | (2,942 | ) | (2,389 | ) | (4,308 | ) | (4,368 | ) | |||||||||||||||||||||||||||||||||||||
Total income tax benefit | (2,653 | ) | (2,110 | ) | (3,917 | ) | (3,858 | ) | |||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | Income tax expense (benefit) | (2,545) | 371 | — | (38) | (2,212) | |||||||||||||||||||||||||||||||||||||||
Net loss | $ | (6,885 | ) | $ | (11,058 | ) | $ | (7,966 | ) | $ | (13,826 | ) | Net loss | $ | (10,907) | $ | (371) | $ | (79) | $ | (215) | $ | (11,572) | ||||||||||||||||||||||
Loss per share: | Loss per share: | ||||||||||||||||||||||||||||||||||||||||||||
Basic | $ | (63.39 | ) | $ | (78.10 | ) | $ | (100.65 | ) | $ | (119.48 | ) | Basic | $ | (0.15) | $ | (0.01) | $ | 0.00 | $ | 0.00 | $ | (0.16) | ||||||||||||||||||||||
Diluted | (63.39 | ) | (78.10 | ) | (100.65 | ) | (119.48 | ) | Diluted | $ | (0.15) | $ | (0.01) | $ | 0.00 | $ | 0.00 | $ | (0.16) | ||||||||||||||||||||||||||
Weighted average shares outstanding (in Number): | |||||||||||||||||||||||||||||||||||||||||||||
Weighted average number of shares outstanding: | Weighted average number of shares outstanding: | ||||||||||||||||||||||||||||||||||||||||||||
Basic | 227,433 | 227,433 | 227,433 | 227,478 | Basic | 74,040,261 | — | — | — | 74,040,261 | |||||||||||||||||||||||||||||||||||
Diluted | 227,433 | 227,433 | 227,433 | 227,478 | 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) | $ | — | $ | — | $ | 0.01 | $ | (0.14) | |||||||||||||||||||
Diluted | $ | (0.15) | $ | — | $ | — | $ | 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) | $ | — | $ | 0.01 | $ | (0.30) | |||||||||||||||||||
Diluted | $ | (0.29) | $ | (0.01) | $ | — | $ | 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) | $ | — | $ | — | $ | (0.19) | |||||||||||||||||||
Diluted | $ | (0.17) | $ | (0.01) | $ | — | $ | — | $ | (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) | $ | — | $ | — | $ | (0.48) | |||||||||||||||||||
Diluted | $ | (0.46) | $ | (0.02) | $ | — | $ | — | $ | (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) | $ | — | $ | (0.02) | $ | (0.30) | |||||||||||||||||||
Diluted | $ | (0.27) | $ | (0.01) | $ | — | $ | (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 | |||||||||||||||||||||||||||||||||||||||||||||
For the three months ended June 30, | For the six months ended June 30, | March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | As previously reported | Income tax adjustments | Indirect tax adjustments | Other adjustments | Revised | |||||||||||||||||||||||||||||||||||||
Net loss | $ | (6,885 | ) | $ | (11,058 | ) | $ | (7,966 | ) | $ | (13,826 | ) | Net loss | $ | (1,081) | $ | (238) | $ | (114) | $ | (566) | $ | (1,999) | ||||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss: | Other comprehensive loss: | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | 743 | 830 | (157 | ) | (2,283 | ) | Foreign currency translation adjustment | (900) | 4 | — | — | (896) | |||||||||||||||||||||||||||||||||
Comprehensive loss | $ | (6,142 | ) | $ | (10,228 | ) | $ | (8,123 | ) | $ | (16,109 | ) | 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 Loss | Accumulated Deficit | Total Stockholders’ (Deficit) Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||
Temporary Equity | Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Amount | Shares | Amount | Amount | Amount | Amount | Amount | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 43 | $ | 77,562 | 60 | $ | 78,621 | 57 | $ | 90,910 | 17 | $ | 16,802 | $ | 263,895 | 218 | $ | 2 | $ | 135,617 | $ | (1,677 | ) | $ | (113,726 | ) | $ | 20,216 | |||||||||||||||||||||||||||||||||
Accrued dividends payable | — | 2,486 | — | 2,666 | — | 2,241 | — | — | 7,393 | — | — | (7,393 | ) | — | — | (7,393 | ) | |||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | (900 | ) | — | (900 | ) | |||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | — | — | — | — | 315 | — | — | 315 | |||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | (1,081 | ) | (1,081 | ) | |||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | 43 | $ | 80,048 | 60 | $ | 81,287 | 57 | $ | 93,151 | 17 | $ | 16,802 | $ | 271,288 | 218 | $ | 2 | $ | 128,539 | $ | (2,577 | ) | $ | (114,807 | ) | $ | 11,157 | |||||||||||||||||||||||||||||||||
Accrued dividends payable | — | 2,514 | — | 2,695 | — | 2,323 | — | — | 7,532 | — | — | (7,532 | ) | — | — | (7,532 | ) | |||||||||||||||||||||||||||||||||||||||||||
Derecognition of shares | — | — | — | — | — | — | — | (300 | ) | (300 | ) | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | 743 | — | 743 | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | — | — | — | — | 315 | — | — | 315 | |||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | (6,885 | ) | (6,885 | ) | |||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2021 | 43 | $ | 82,562 | 60 | $ | 83,982 | 57 | $ | 95,474 | 17 | $ | 16,502 | $ | 278,520 | 218 | $ | 2 | $ | 121,322 | $ | (1,834 | ) | $ | (121,692 | ) | $ | (2,202 | ) | ||||||||||||||||||||||||||||||||
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’ (Deficit) Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||
Temporary Equity | Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Shares | Amount | Amount | Shares | Amount | Amount | Amount | Amount | Amount | ||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 43 | $ | 68,360 | 60 | $ | 69,495 | 57 | $ | 82,338 | 17 | $ | 16,802 | $ | 236,995 | 218 | $ | 2 | $ | 161,556 | $ | (3,792 | ) | $ | (78,526 | ) | $ | 79,240 | |||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | — | — | — | — | — | — | (200 | ) | — | — | (200 | ) | |||||||||||||||||||||||||||||||||||||||||||
Accrued dividends payable | — | 2,216 | — | 2,383 | — | 2,053 | — | — | 6,652 | — | — | (6,652 | ) | — | — | (6,652 | ) | |||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | (3,113 | ) | — | (3,113 | ) | |||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | — | — | — | — | 216 | — | — | 216 | |||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | (2,768 | ) | (2,768 | ) | |||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | 43 | $ | 70,576 | 60 | $ | 71,878 | 57 | $ | 84,391 | 17 | $ | 16,802 | $ | 243,647 | 218 | $ | 2 | $ | 154,920 | $ | (6,905 | ) | $ | (81,294 | ) | $ | 66,723 | |||||||||||||||||||||||||||||||||
Accrued dividends payable | — | 2,215 | — | 2,382 | — | 2,104 | — | — | 6,701 | — | — | (6,701 | ) | — | — | (6,701 | ) | |||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | — | — | — | — | — | — | — | — | 830 | — | 830 | |||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | — | — | — | — | — | 315 | — | — | 315 | |||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | — | — | — | — | — | — | (11,058 | ) | (11,058 | ) | |||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | 43 | $ | 72,791 | 60 | $ | 74,260 | 57 | $ | 86,495 | 17 | $ | 16,802 | $ | 250,348 | 218 | $ | 2 | $ | 148,534 | $ | (6,075 | ) | $ | (92,352 | ) | $ | 50,109 | |||||||||||||||||||||||||||||||||
Six months ended June 30, | ||||||||
2021 | 2020 | |||||||
Cash flows from operating activities | ||||||||
Net loss | $ | (7,966 | ) | $ | (13,826 | ) | ||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities | ||||||||
Depreciation and amortization | 25,507 | 25,708 | ||||||
Amortization of deferred financing costs | 1,047 | 1,057 | ||||||
Deferred income taxes | (4,308 | ) | (4,368 | ) | ||||
Non-cash foreign currency loss (gain) | 77 | (1,684 | ) | |||||
Share-based compensation | 630 | 531 | ||||||
Provision for doubtful accounts | 11 | 861 | ||||||
Change in fair value of warrant liability | (2,383 | ) | 2,831 | |||||
Change in operating assets and liabilities, net of operating assets and liabilities acquired: | ||||||||
Accounts receivable | (7,049 | ) | 1,473 | |||||
Inventories | (4,089 | ) | (2,450 | ) | ||||
Prepaid expenses and other receivables | (9,016 | ) | (1,355 | ) | ||||
Accounts payable and accrued liabilities | (6,103 | ) | 2,821 | |||||
Deferred revenue | (671 | ) | 214 | |||||
Income taxes payable | (32 | ) | 227 | |||||
Cash (used in) provided by operating activities | $ | (14,345 | ) | $ | 12,040 | |||
Cash flows used in investing activities | ||||||||
Additions to intangible assets | (4,754 | ) | (5,543 | ) | ||||
Additions to property and equipment | (1,219 | ) | (428 | ) | ||||
Acquisition of Integron LLC, net of cash acquired | — | 366 | ||||||
Net cash used in investing activities | $ | (5,973 | ) | $ | (5,605 | ) | ||
Cash flows from financing activities | ||||||||
Proceeds from revolving credit facility | 22,000 | 21,700 | ||||||
Repayments on revolving credit facility | — | (15,000 | ) | |||||
Repayment of term loan | (1,584 | ) | (1,623 | ) | ||||
Repurchase of common stock | — | (200 | ) | |||||
Equity financing fees | (1,373 | ) | — | |||||
Payment of capital lease obligations | (668 | ) | (385 | ) | ||||
Cash provided by financing activities | $ | 18,375 | $ | 4,492 | ||||
Effect of Exchange Rate Change on Cash and Cash Equivalents | (82 | ) | (236 | ) | ||||
Change in Cash and Cash Equivalents and Restricted Cash | (2,025 | ) | 10,691 | |||||
Cash and Cash Equivalents and Restricted Cash, beginning of period | 10,693 | 8,692 | ||||||
Cash and Cash Equivalents and Restricted Cash, end of period | $ | 8,668 | $ | 19,383 | ||||
Non-cash financing activities: | ||||||||
Capital leases | $ | 346 | $ | 66 | ||||
Equity financing fees accrued | 1,648 | — | ||||||
Supplemental cash flow information: | ||||||||
Interest paid | $ | 9,329 | $ | 11,888 |
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) | $ | — | $ | 0.03 | $ | (0.43) | |||||||||||||||||||
Diluted | $ | (0.46) | $ | (0.01) | $ | — | $ | 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) | $ | — | $ | 0.02 | $ | (0.26) | |||||||||||||||||||
Diluted | $ | (0.26) | $ | (0.01) | $ | — | $ | 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 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 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) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 |
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 Other Comprehensive Income (Loss) | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Temporary Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 |
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 Other Comprehensive Income (Loss) | Accumulated Deficit | Total Stockholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Temporary Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(in ‘000) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Connectivity* | $ | 41,114 | $ | 36,050 | $ | 81,705 | $ | 73,651 | ||||||||
Hardware Sales | 13,584 | 8,173 | 21,381 | 13,931 | ||||||||||||
Hardware Sales - bill-and-hold | 784 | 1,517 | 3,222 | 3,432 | ||||||||||||
Deployment services, professional services and other | 5,261 | 5,322 | 9,732 | 10,026 | ||||||||||||
Total | $ | 60,743 | $ | 51,062 | $ | 116,040 | $ | 101,040 | ||||||||
(in ‘000) | Amount | |||
From July 1, 2021 to December 31, 2021 | $ | 1,472 | ||
2022 | 2,434 | |||
2023 | 1,464 | |||
2024 | 1,084 | |||
2025 | 753 | |||
Thereafter | 2,157 | |||
Total | $ | 9,364 | ||
(in ‘000) | Amount | |||
From July 1, 2021 to December 31, 2021 | $ | 25,020 | ||
2022 | 1,513 | |||
2023 | 1,328 | |||
2024 | 1,328 | |||
2025 | 1,328 | |||
Total | $ | 30,517 | ||
June 30, 2021 | December 31, 2020 | |||||||
Prepaid Deposits | $ | 10,007 | $ | 1,734 | ||||
Prepaid Expenses and Other Receivables | 4,239 | 3,695 | ||||||
Total Prepaid Expenses and Other Receivables | $ | 14,246 | $ | 5,429 | ||||
June 30, 2021 | December 31, 2020 | |||||||
Unamortized Revolver Financing Fees | $ | 510 | $ | 611 | ||||
Deferred Equity Issuance Costs | 3,022 | — | ||||||
Total Other Long-term Assets | $ | 3,532 | $ | 611 | ||||
(in ‘000) | Series A | Series A-1 | Series B | |||||||||
Accumulated and unpaid, December 31, 2020 | $ | 34,812 | $ | 18,608 | $ | 33,910 | ||||||
Accumulated | 2,486 | 2,666 | 2,241 | |||||||||
Distributed | — | — | — | |||||||||
Accumulated and unpaid, March 31, 2021 | $ | 37,298 | $ | 21,274 | $ | 36,151 | ||||||
Accumulated | 2,514 | 2,695 | 2,323 | |||||||||
Distributed | — | — | — | |||||||||
Accumulated and unpaid, June 30, 2021 | $ | 39,812 | $ | 23,969 | $ | 38,474 | ||||||
(in ‘000) | Series A | Series A-1 | Series B | |||||||||
Accumulated and unpaid, December 31, 2019 | $ | 25,610 | $ | 8,794 | $ | 25,338 | ||||||
Accumulated | 2,216 | 2,359 | 2,053 | |||||||||
Distributed | — | — | — | |||||||||
Accumulated and unpaid, March 31, 2020 | $ | 27,826 | $ | 11,153 | $ | 27,391 | ||||||
Accumulated | 2,215 | 2,359 | 2,104 | |||||||||
Distributed | — | — | — | |||||||||
Accumulated and unpaid, June 30, 2020 | $ | 30,041 | $ | 13,512 | $ | 29,495 | ||||||
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 | 34,977 | 191 | $ | 1,750 | 7.7 | |||||||||||
Granted | — | — | — | — | ||||||||||||
Exercised | — | — | — | — | ||||||||||||
Forfeited | — | — | — | — | ||||||||||||
Expired | — | — | — | — | ||||||||||||
Balance, June 30, 2021 | 34,977 | $ | 191 | $ | 1,750 | 7.2 | ||||||||||
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, 2019 | 32,280 | 196 | $ | 1,750 | 8.4 | |||||||||||
Granted | 5,181 | 167 | 1,750 | — | ||||||||||||
Exercised | — | — | — | — | ||||||||||||
Forfeited | (2,484 | ) | 195 | 1,750 | — | |||||||||||
Expired | — | — | — | — | ||||||||||||
Balance, June 30, 2020 | 34,977 | $ | 191 | $ | 1,750 | 8.2 | ||||||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(in ‘000) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Total share-based compensation expense | $ | 315 | $ | 315 | $ | 630 | $ | 531 |
June 30, 2021 | June 30, 2020 | |||||||
Range of exercise prices | $ | $1,000 -$2,500 | $ | $1,000 -$2,500 | ||||
Number of stock options | 18,493 | 11,894 | ||||||
Weighted average remaining contractual term (in years) | 6.9 | 7.8 | ||||||
Weighted average exercise price | $ | 1,750 | $ | 1,750 |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
(in ‘000) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Numerator: | ||||||||||||||||
Net loss attributable to the Company | $ | (6,885 | ) | $ | (11,058 | ) | $ | (7,966 | ) | $ | (13,826 | ) | ||||
Less dividends to preferred shareholder | 7,532 | 6,701 | 14,925 | 13,353 | ||||||||||||
Net loss attributable to common shareholders | $ | (14,417 | ) | $ | (17,759 | ) | $ | (22,891 | ) | $ | (27,179 | ) | ||||
Denominator: | ||||||||||||||||
Weighted average common shares, basic and diluted (in number) | 227,433 | 227,433 | 227,433 | 227,478 | ||||||||||||
Net loss per share attributable to common shareholder, basic and diluted | $ | (63.39 | ) | $ | (78.10 | ) | $ | (100.65 | ) | $ | (119.48 | ) | ||||
(number of shares) | June 30, 2021 | June 30, 2020 | ||||||
Series C Convertible Preferred Stock | 16,502 | 16,802 | ||||||
Stock Options | 34,977 | 34,977 |
For the period ended (in ‘000) | June 30, 2021 | December 31, 2020 | ||||||
Interfusion B.V. | $ | 954 | $ | 985 | ||||
T-Fone B.V. | $ | 611 | $ | 630 |
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, 2020 | December 31, 2019 | |||||||
Assets | ||||||||
Non-current assets | ||||||||
Investment in subsidiaries | $ | 300,055 | $ | 324,694 | ||||
Total non-current assets | 300,055 | 324,694 | ||||||
Total assets | $ | 300,055 | $ | 324,694 | ||||
Liabilities, temporary equity and stockholders’ equity | ||||||||
Long-term liabilities | ||||||||
Warrant liability | $ | 15,944 | $ | 8,459 | ||||
Total liabilities | 15,944 | 8,459 | ||||||
Temporary equity | ||||||||
Series A Preferred Stock; par value $1,000 per share; 42,800 shares authorized; 42,750 shares issued and outstanding at December 31, 2020 and 2019 | 77,562 | 68,360 | ||||||
Series A-1 Preferred Stock; par value $1,000 per share; 80,000 shares authorized; 60,013 shares issued and outstanding at December 31, 2020 and 2019 | 78,621 | 69,495 | ||||||
Series B Preferred Stock; par value $1,000 per share; 57,000 shares authorized; 57,000 shares issued and outstanding at December 31, 2020 and 2019 | 90,910 | 82,338 | ||||||
Series C Convertible Preferred Stock; par value $1,000 per share; 45,000 shares authorized; 16,802 shares issued and outstanding at December 31, 2020 and 2019 | 16,802 | 16,802 | ||||||
Total temporary equity | 263,895 | 236,995 | ||||||
Stockholders’ equity | ||||||||
Common stock, voting; par value $0.01 per share; 400,000 shares authorized; 217,619 and 217,819 shares issued and outstanding at December 31, 2020 and 2019, respectively | 2 | 2 | ||||||
Additional paid-in capital | 135,617 | 161,556 | ||||||
Accumulated other comprehensive loss | (1,677 | ) | (3,793 | ) | ||||
Accumulated deficit | (113,726 | ) | (78,525 | ) | ||||
Total stockholders’ equity | 20,216 | 79,240 | ||||||
Total liabilities, temporary equity and stockholders’ equity | $ | 300,055 | $ | 324,694 | ||||
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, 2020 | December 31, 2019 | ||||||
Equity in net loss of subsidiaries | $ | (27,716 | ) | $ | (23,678 | ) | ||
Change in fair value of warrant liability | (7,485 | ) | 235 | |||||
Loss before income taxes | (35,201 | ) | (23,443 | ) | ||||
Income tax provision (benefit) | — | — | ||||||
Net loss | $ | (35,201 | ) | $ | (23,443 | ) | ||
Other comprehensive loss: | ||||||||
Foreign currency translation adjustment | 2,116 | 517 | ||||||
Comprehensive loss | $ | (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, 2020 | December 31, 2019 | ||||||
Cash flows from operating activities | ||||||||
Net loss | $ | (35,201 | ) | $ | (23,443 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities | ||||||||
Equity in net loss of subsidiaries | 27,716 | 23,678 | ||||||
Change in fair value of warrant liability | 7,485 | (235 | ) | |||||
Cash provided by operating activities | — | — | ||||||
Cash flows from investing activities | ||||||||
Distribution from subsidiary | 200 | 80 | ||||||
Cash provided by investing activities | 200 | 80 | ||||||
Cash flows from financing activities | ||||||||
Repurchase of common stock | (200 | ) | (80 | ) | ||||
Cash used in financing activities | (200 | ) | (80 | ) | ||||
Effect of exchange rate change on cash and cash equivalents | — | — | ||||||
Change in cash and cash equivalents and restricted cash | — | — | ||||||
Cash and cash equivalents and restricted cash, beginning of year | — | — | ||||||
Cash and cash equivalents and restricted cash, end of year | $ | — | $ | — | ||||
Non-cash investing and financing activities: | ||||||||
Equity issued for acquisition of Integron, LLC | $ | — | $ | 7,000 | ||||
Share-based payment awards issued to employees of subsidiaries | $ | 1,161 | $ | 1,682 |
SEC registration fee | $ | 1,669.53 | |||
Accounting fees and expenses | * | ||||
Legal fees and expenses | * | ||||
Financial printing and miscellaneous expenses | * | ||||
Total | * |
Securities and Exchange Commission registration fee | $ | 13,181.94 | ||
Accounting fees and expenses | * | |||
Legal fees and expenses | * | |||
Financial printing and miscellaneous expenses | * | |||
Total | * |
Exhibit | Description | |||||||
2.1* | ||||||||
2.3* | ||||||||
2.4* | ||||||||
3.1* | ||||||||
3.2* | ||||||||
Number | ||||||||
4.1* | ||||||||
4.2* | ||||||||
4.3* | ||||||||
5.1 | ||||||||
10.1* | ||||||||
10.2* | ||||||||
10.3* | ||||||||
10.4* |
10.6* | ||||||||
10.7* | ||||||||
10.8* | ||||||||
10.9* | ||||||||
10.10* | ||||||||
10.11* | ||||||||
10.12* | ||||||||
10.13* | ||||||||
10.14* | ||||||||
10.15* | ||||||||
10.16* | ||||||||
10.17* | ||||||||
10.18* | ||||||||
21.1* | ||||||||
23.1 | ||||||||
23.2 | ||||||||
24.1 | ||||||||
101.INS | ||||||||
Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) | ||||||||
101.SCH | ||||||||
Inline XBRL Taxonomy Extension Schema Document. | ||||||||
101.CAL | ||||||||
InlineXBRL Taxonomy Extension Calculation Linkbase Document. |
101.DEF | InlineXBRL Taxonomy Extension Definition Linkbase Document. | |||||||
101.LAB | ||||||||
Inline XBRL Taxonomy Extension Label Linkbase Document. | ||||||||
101.PRE | ||||||||
InlineXBRL Taxonomy Extension Presentation Linkbase Document. | ||||||||
104 | ||||||||
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | ||||||||
107 |
KORE GROUP HOLDINGS, INC. | ||
/s/ Romil Bahl | ||
Name: Romil Bahl | ||
Title: President, Chief Executive Officer and Director |
Signature | Title | Date | ||||||||||||
/s/Romil Bahl | President, Chief Executive Officer and Director | |||||||||||||
Romil Bahl | ||||||||||||||
/s/ | Executive Vice President and Chief Financial Officer and Treasurer | |||||||||||||
Paul Holtz | ||||||||||||||
/s/ Cheemin Bo-Linn | Director | |||||||||||||
Cheemin Bo-Linn | ||||||||||||||
/s/ Timothy | Director | |||||||||||||
Timothy Donahue | ||||||||||||||
Director | ||||||||||||||
H. Paulett Eberhart | ||||||||||||||
Director | ||||||||||||||
James Geisler | ||||||||||||||
Director | ||||||||||||||
Robert P. MacInnis | ||||||||||||||
Director | June 8, 2023 | |||||||||||||
Michael K. Palmer | ||||||||||||||
/s/ Mark Neporent | Director | June 8, 2023 | ||||||||||||
Mark Neporent | ||||||||||||||
/s/ Tomer Yosef-Or | Director | June 8, 2023 | ||||||||||||
Tomer Yosef-Or |