Artificial Intelligence
iCAD Reports Financial Results for Fourth Quarter and Year Ended December 31, 2020
Fourth Quarter Revenues of $10.5 Million Represented 47% Sequential Growth Driven by 70% Growth in ProFound AI® Product Revenue
ProFound AI® Product Revenue Increased 21% in the Fourth Quarter of 2020 as Compared to 2019 Fourth Quarter Fueled by Launch of ProFound AI® Risk Assessment Offering
Recent Agreement with Solis Mammography Represents Largest Single Contract in iCAD’s History and Includes Both ProFound AI® Detection and Risk
Net Loss Declined 52% to $0.07 Per Share in the Fourth Quarter of 2020 as Compared to 2019 Fourth Quarter
Conference Call Today at 4:30 p.m. ET
NASHUA, N.H., Feb. 24, 2021 (GLOBE NEWSWIRE) — iCAD, Inc. (NASDAQ: ICAD), a global medical technology leader providing innovative cancer detection and therapy solutions, today reported its financial and operating results for the three and twelve months ended December 31, 2020.
Recent Highlights:
- Gaining market traction with ProFound AI® Risk, the first and only commercially available clinical decision support tool providing accurate two-year breast cancer risk estimation personalized for each woman, for 2D mammography in the U.S. and Europe
– Global launch for 3D mammography planned for later this year - Over 1,000 licenses sold as part of ProFound AI® Detection sales
– Significant percentage of licenses sold to facilities with GE, Siemens, and sites with multiple vendors, including Hologic and Fuji - Signed five-year partnership with Solis Mammography, the largest independent provider of mammography and breast health services in the U.S., whereby iCAD will provide the customer with its latest artificial intelligence breast health solutions, including ProFound AI® Detection and Risk
- Appointed Santosh Kesari, M.D., Ph.D., a world-renowned neuro-oncologist at the John Wayne Cancer Center, as Principal Investigator of its international multi-center clinical trial evaluating the Xoft® Axxent® Electronic Brachytherapy (eBx®) System® as the sole radiation therapy to treat recurrent glioblastoma (GBM) following surgical excision of the malignancy
- Cash increased $4.6 million or 20% to $27.2 million at December 31, 2020 as compared to September 30, 2020.
“Despite an evolving operating environment due to COVID-19, we have continued to achieve important progress throughout our business,” said Mike Klein, Chairman and CEO. “Our fourth quarter 2020 total revenue of $10.5 million represented sequential growth of 47 percent as compared to the third quarter and we generated over 70% sequential growth in AI product revenue in the fourth quarter, as ProFound AI® continues to achieve further market penetration. Our fourth quarter revenue growth was achieved while we remained diligent in managing operating expenses, resulting in a 52% decline in net loss to $0.07 per share.”
“In addition, we continue to see tremendous interest for ProFound AI® Risk in the market and remain very positive about the impact this innovative solution will have on our business moving forward,” continued Mr. Klein. “Both ProFound AI® Risk and Detection were included in our recent five-year agreement with Solis, which operates more than 80 branded centers in 11 states. We also recently signed an agreement with Wake Radiology, North Carolina’s largest provider of 3D mammography services, that covers 22 systems. These large deals help validate the clinical utility and economic value proposition for our AI breast health product portfolio.”
“We are also pleased to have appointed Dr. Kesari as Principal Investigator for our recently initiated multi-site international clinical trial of Xoft Brain IORT in the high-value indication of GBM. We continue to anticipate the availability of early progression-free survival data from this important study by the end of this year,” concluded Mr. Klein.
Fourth Quarter 2020 Financial Results
Total Detection and Therapy revenue for the fourth quarter of 2020 was $10.5 million, an increase of $1.1 million, or 11%, as compared to the fourth quarter of 2019, reflecting a 19% increase in product revenue, and a 6% decrease in service and supplies revenue.
In $000’s | |||||||||||||
Three months ended December 31, | |||||||||||||
2020 | 2019 | $ Change | % Change | ||||||||||
Product revenue | $ | 7,683 | $ | 6,436 | $ | 1,247 | 19 | % | |||||
Service and supplies revenue | 2,768 | 2,945 | (177 | ) | (6 | )% | |||||||
Total Revenue | $ | 10,451 | $ | 9,381 | $ | 1,070 | 11 | % |
Revenue: Cancer Detection revenue for the fourth quarter of 2020, which includes the Company’s mammography and breast density products, and the associated service and supplies revenue, increased by approximately $1.3 million, or 18%, as compared to the fourth quarter of 2019. Therapy revenue for the fourth quarter of 2020, which includes Xoft® Axxent® eBx® System® sales, as well as the associated service and supplies revenue, decreased by $0.2 million, or 7%, as compared to the fourth quarter of 2019.
In $000’s | |||||||||||||
Three months ended December 31, | |||||||||||||
2020 | 2019 | $ Change | % Change | ||||||||||
Detection revenue | |||||||||||||
Product revenue | $ | 6,600 | $ | 5,441 | $ | 1,159 | 21 | % | |||||
Service and supplies revenue | 1,512 | 1,414 | 98 | 7 | % | ||||||||
Detection Revenue | $ | 8,112 | $ | 6,855 | $ | 1,257 | 18 | % | |||||
Therapy revenue | |||||||||||||
Product revenue | $ | 1,083 | $ | 995 | $ | 88 | 9 | % | |||||
Service and supplies revenue | 1,256 | 1,531 | (275 | ) | (18 | )% | |||||||
Therapy Revenue | $ | 2,339 | $ | 2,526 | $ | (187 | ) | (7 | )% | ||||
Total Revenue | $ | 10,451 | $ | 9,381 | $ | 1,070 | 11 | % |
Gross Profit: Gross profit for the fourth quarter of 2020 was $7.5 million, or 71% of revenue, as compared to $7.2 million, or 76% of revenue, in the fourth quarter of 2019.
Operating Expenses: Total operating expenses for the fourth quarter of 2020 were $9.0 million, a $0.1 million, or 2%, decrease from $9.1 million in the fourth quarter of 2019.
GAAP Net Loss: Net loss for the fourth quarter of 2020 was ($1.6) million, or ($0.07) per diluted share, as compared to a net loss of ($3.3) million, or ($0.17) per diluted share, for the fourth quarter of 2019.
Non-GAAP Adjusted Net Loss: Non-GAAP adjusted net loss, a non-GAAP financial measure as defined below, for the fourth quarter of 2020 was ($1.4) million, or ($0.06) per diluted share, as compared to a non-GAAP adjusted net loss of ($1.9) million, or ($0.10) per diluted share, for the fourth quarter of 2019. Please refer to the section entitled “Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Measures” and the accompanying financial table included at the end of this release for a reconciliation of GAAP Net Loss to Non-GAAP Adjusted Net Loss results for the three-month periods ended December 31, 2020 and 2019, respectively.
Non-GAAP Adjusted EBITDA: Non-GAAP adjusted EBITDA, a non-GAAP financial measure as defined below, for the fourth quarter of 2020 was a loss of ($0.9) million, a $0.5 million decrease as compared to the fourth quarter 2019 non-GAAP adjusted EBITDA loss of ($1.4) million. Please refer to the section entitled “Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Measures” and the accompanying financial table included at the end of this release for a reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA results for the three-month periods ended December 31, 2020 and 2019, respectively.
Twelve months ended December 31, 2020 Financial Results
Revenue: Total Detection and Therapy revenue for the year ended December 31, 2020 was $29.7 million, a decrease of $1.6 million, or 5%, as compared to the same period of 2019, reflecting a 4% decrease in product revenue, and a 7% decrease in service and supplies revenue.
In $000’s | |||||||||||||
Twelve months ended December 31, | |||||||||||||
2020 | 2019 | $ Change | % Change | ||||||||||
Product revenue | $ | 18,903 | $ | 19,767 | $ | (864 | ) | (4 | )% | ||||
Service revenue | 10,795 | 11,573 | (778 | ) | (7 | )% | |||||||
Total Revenue | $ | 29,698 | $ | 31,340 | $ | (1,642 | ) | (5 | )% |
Cancer Detection revenue for the year ended December 31, 2020, which includes the Company’s mammography and breast density products, and the associated service and supplies revenue, decreased by approximately $0.3 million, or 1%, as compared to the same period of 2019. Therapy revenue for the year ended December 31, 2020, which includes Xoft® Axxent® eBx® System® sales, as well as the associated service and supplies revenue, decreased by $1.3 million, or 15%, as compared to the same period of 2019.
In $000’s | |||||||||||||
Twelve months ended December 31, | |||||||||||||
2020 | 2019 | $ Change | % Change | ||||||||||
Detection revenue | |||||||||||||
Product revenue | $ | 16,291 | $ | 16,788 | $ | (497 | ) | (3 | )% | ||||
Service revenue | 5,706 | 5,531 | 175 | 3 | % | ||||||||
Detection Revenue | $ | 21,997 | $ | 22,319 | $ | (322 | ) | (1 | )% | ||||
Therapy revenue | |||||||||||||
Product revenue | $ | 2,612 | $ | 2,979 | $ | (367 | ) | (12 | )% | ||||
Service revenue | 5,089 | 6,042 | (953 | ) | (16 | )% | |||||||
Therapy Revenue | $ | 7,701 | $ | 9,021 | $ | (1,320 | ) | (15 | )% | ||||
Total Revenue | $ | 29,698 | $ | 31,340 | $ | (1,642 | ) | (5 | )% |
Gross Profit: Gross profit for the year ended December 31, 2020 was $21.4 million, or 72% of revenue, as compared to $24.2 million, or 77% of revenue, in the same period of 2019.
Operating Expenses: Total operating expenses for the year ended December 31, 2020 were $30.7 million, essentially flat as compared to $30.6 million in the same period of 2019.
GAAP Net Loss: Net loss for the year ended December 31, 2020 was ($17.6) million, or ($0.80) per diluted share, as compared to a net loss of ($13.6) million, or ($0.74) per diluted share, for the same period of 2019.
Non-GAAP Adjusted Net Loss: Non-GAAP adjusted net loss, a non-GAAP financial measure as defined below, for the year ended December 31, 2020 was ($9.5) million, or ($0.43) per diluted share, as compared to a Non-GAAP adjusted net loss of ($6.7) million, or ($0.37) per diluted share, for the same period of 2019. Please refer to the section entitled “Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Measures” and the accompanying financial table included at the end of this release for a reconciliation of GAAP Net Loss to Non-GAAP Adjusted Net Loss results for the years ended December 31, 2020 and 2019, respectively.
Non-GAAP Adjusted EBITDA: Non-GAAP adjusted EBITDA, a non-GAAP financial measure as defined below, for the year ended December 31, 2020 was a loss of ($5.7) million, a $1.4 million increase compared to the year ended December 31, 2019 non-GAAP adjusted EBITDA loss of ($4.3) million. Please refer to the section entitled “Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Measures” and the accompanying financial table included at the end of this release for a reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA results for the years ended December 31, 2020 and 2019, respectively.
Cash and Cash Equivalents: As of December 31, 2020, the Company had cash and cash equivalents of $27.2 million, which includes the receipt of $6.1 in net proceeds from sales of common stock pursuant to our at-the-market program, compared to cash and cash equivalents of $22.6 million at September 30, 2020.
Use of Non-GAAP Financial Measures
In its quarterly news releases, conference calls, slide presentations or webcasts, the Company may use or discuss non-GAAP financial measures as defined by SEC Regulation G. The GAAP financial measures most directly comparable to each non-GAAP financial measure used or discussed, and a reconciliation of the differences between each non-GAAP financial measure and the comparable GAAP financial measure, are included in this press release after the condensed consolidated financial statements. When analyzing the Company’s operating performance, investors should not consider these non-GAAP measures as a substitute for the comparable financial measures prepared in accordance with GAAP. The Company’s quarterly news releases containing such non-GAAP reconciliations can be found on the Investors section of the Company’s website at www.icadmed.com.
About iCAD, Inc.
Headquartered in Nashua, NH, iCAD is a global medical technology leader providing innovative cancer detection and therapy solutions. For more information, visit www.icadmed.com.
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995
Certain statements contained in this News Release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. For example, when the Company discusses the potential of ProFound AI Risk, the benefits of the Company’s products, and clinical plans and updates, it is using forward-looking statements. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited, to the Company’s ability to achieve business and strategic objectives, increase sales and acceptance of products, adoption by CMS of a new payment model, and that such model will prove beneficial to the Company, which is not assured, implement expansion plans, the risks of uncertainty of patent protection, the impact of supply and manufacturing constraints or difficulties, uncertainty of future sales levels, protection of patents and other proprietary rights, the impact of supply and manufacturing constraints or difficulties, product market acceptance, possible technological obsolescence of products, increased competition, to successfully defend itself in litigation matters, government regulation, changes in Medicare or other reimbursement policies, risks relating to our existing and future debt obligations, competitive factors, the effects of a decline in the economy or markets served by the Company; the effects of a global pandemic, and other risks detailed in the Company’s filings with the Securities and Exchange Commission. The words “believe,” “demonstrate,” “intend,” “expect,” “estimate,” “will,” “continue,” “anticipate,” “likely,” “seek,” and similar expressions identify forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date the statement was made. The Company is under no obligation to provide any updates to any information contained in this release. For additional disclosure regarding these and other risks faced by iCAD, please see the disclosure contained in our public filings with the Securities and Exchange Commission, available on the Investors section of our website at http://www.icadmed.com and on the SEC’s website at http://www.sec.gov.
Contact:
Media Inquiries:
Amy Cook, iCAD
+1-925-200-2125
[email protected]
Investor Relations:
Jeremy Feffer, LifeSci Advisors
+ 1-212-915-2568
[email protected]
iCAD, INC. AND SUBSIDIARIES | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(Unaudited) | ||||||||
(In thousands) | ||||||||
December 31, | December 31, | |||||||
Assets | 2020 | 2019 | ||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 27,186 | $ | 15,313 | ||||
Trade accounts receivable, net of allowance for doubtful | ||||||||
accounts of $111 in 2020 and $136 in 2019 | 10,027 | 9,819 | ||||||
Inventory, net | 3,144 | 2,611 | ||||||
Prepaid expenses and other current assets | 1,945 | 1,453 | ||||||
Total current assets | 42,302 | 29,196 | ||||||
Property and equipment, net of accumulated depreciation | ||||||||
of $6,778 in 2020 and $6,510 in 2019 | 744 | 551 | ||||||
Operating lease assets | 1,758 | 2,406 | ||||||
Contract and Other assets | 1,527 | 50 | ||||||
Intangible assets, net of accumulated amortization | ||||||||
of $8,494 in 2020 and $8,186 in 2019 | 889 | 1,183 | ||||||
Goodwill | 8,362 | 8,362 | ||||||
Total assets | $ | 55,582 | $ | 41,748 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 2,869 | $ | 1,990 | ||||
Accrued and other expenses | 7,039 | 6,590 | ||||||
Notes payable – current portion | – | 4,250 | ||||||
Lease payable – current portion | 726 | 758 | ||||||
Deferred revenue | 6,117 | 5,248 | ||||||
Total current liabilities | 16,751 | 18,836 | ||||||
Notes payable, long-term portion | 6,960 | 2,003 | ||||||
Convertible debentures payable to non-related parties, at fair value | – | 12,409 | ||||||
Convertible debentures payable to related parties, at fair value | – | 1,233 | ||||||
Lease payable – long-term portion | 1,075 | 1,837 | ||||||
Deferred revenue, long-term portion | 267 | 356 | ||||||
Deferred tax | 4 | 3 | ||||||
Total Liabilities | 25,057 | 36,677 | ||||||
Stockholders’ Equity: | ||||||||
Preferred stock, $ 0.01 par value: authorized 1,000,000 shares; | ||||||||
none issued. | – | – | ||||||
Common stock, $0.01 par value: authorized 30,000,000 | ||||||||
shares; issued 23,693,735 in 2020 and 19,546,151 in 2019. | ||||||||
Outstanding 23,508,575 in 2020 and 19,360,320 in 2019. | 236 | 196 | ||||||
Additional paid-in capital | 273,639 | 230,615 | ||||||
Accumulated deficit | (241,935 | ) | (224,325 | ) | ||||
Treasury stock at cost, 185,831 shares in 2020 and 2019 | (1,415 | ) | (1,415 | ) | ||||
Total Stockholders’ Equity | 30,525 | 5,071 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 55,582 | $ | 41,748 | ||||
iCAD, INC. AND SUBSIDIARIES | |||||||||||||||
Condensed Consolidated Statements of Operations | |||||||||||||||
(Unaudited) | |||||||||||||||
(In thousands except for per share data) | |||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Revenue: | |||||||||||||||
Products | $ | 7,683 | $ | 6,436 | $ | 18,903 | $ | 19,767 | |||||||
Service and supplies | 2,768 | 2,945 | 10,795 | 11,573 | |||||||||||
Total revenue | 10,451 | 9,381 | 29,698 | 31,340 | |||||||||||
Cost of revenue: | |||||||||||||||
Products | 2,101 | 1,144 | 5,000 | 3,278 | |||||||||||
Service and supplies | 796 | 972 | 2,965 | 3,438 | |||||||||||
Amortization and depreciation | 92 | 100 | 379 | 397 | |||||||||||
Total cost of revenue | 2,989 | 2,216 | 8,344 | 7,113 | |||||||||||
Gross profit | 7,462 | 7,165 | 21,354 | 24,227 | |||||||||||
Operating expenses: | |||||||||||||||
Engineering and product development | 2,176 | 2,520 | 8,114 | 9,271 | |||||||||||
Marketing and sales | 4,094 | 4,353 | 13,312 | 13,634 | |||||||||||
General and administrative | 2,641 | 2,167 | 9,117 | 7,443 | |||||||||||
Amortization and depreciation | 46 | 70 | 199 | 276 | |||||||||||
Total operating expenses | 8,957 | 9,110 | 30,742 | 30,624 | |||||||||||
Loss from operations | (1,495 | ) | (1,945 | ) | (9,388 | ) | (6,397 | ) | |||||||
Interest expense | (116 | ) | (180 | ) | (476 | ) | (784 | ) | |||||||
Loss on fair value of convertible debentures | – | (1,331 | ) | (7,464 | ) | (6,671 | ) | ||||||||
Loss on extinguishment of debt | – | – | (341 | ) | – | ||||||||||
Other income | 12 | 118 | 97 | 344 | |||||||||||
Other expense, net | (104 | ) | (1,393 | ) | (8,184 | ) | (7,111 | ) | |||||||
Loss before income tax expense | (1,599 | ) | (3,338 | ) | (17,572 | ) | (13,508 | ) | |||||||
Tax expense | (4 | ) | (10 | ) | (38 | ) | (43 | ) | |||||||
Net loss and comprehensive loss | $ | (1,603 | ) | $ | (3,348 | ) | $ | (17,610 | ) | $ | (13,551 | ) | |||
Net loss per share: | |||||||||||||||
Basic | $ | (0.07 | ) | $ | (0.17 | ) | $ | (0.80 | ) | $ | (0.74 | ) | |||
Diluted | $ | (0.07 | ) | $ | (0.17 | ) | $ | (0.80 | ) | $ | (0.74 | ) | |||
Weighted average number of shares | |||||||||||||||
used in computing loss per share: | |||||||||||||||
Basic | 23,072 | 19,320 | 22,140 | 18,378 | |||||||||||
Diluted | 23,072 | 19,320 | 22,140 | 18,378 | |||||||||||
iCAD, INC. AND SUBSIDIARIES | |||||||
Condensed Consolidated Statements of Cash Flows | |||||||
(Unaudited) | |||||||
(In thousands) | |||||||
For the twelve months ended December 31, | |||||||
2020 | 2019 | ||||||
Cash flow from operating activities: | |||||||
Net loss | $ | (17,610 | ) | $ | (13,551 | ) | |
Adjustments to reconcile net loss to net cash | |||||||
used for operating activities: | |||||||
Amortization | 309 | 377 | |||||
Depreciation | 268 | 297 | |||||
Bad debt provision | 94 | 62 | |||||
Stock-based compensation expense | 2,844 | 1,169 | |||||
Amortization of debt discount and debt costs | 78 | 149 | |||||
Change in fair value of convertible debentures | 7,464 | 6,671 | |||||
Deferred tax | 1 | 1 | |||||
Loss on extinguishment of debt | 341 | – | |||||
Changes in operating assets and liabilities | |||||||
Accounts receivable | (302 | ) | (3,478 | ) | |||
Inventory | (533 | ) | (1,024 | ) | |||
Prepaid and other current assets | (1,390 | ) | 294 | ||||
Accounts payable | 878 | 836 | |||||
Accrued expenses | (207 | ) | 982 | ||||
Deferred revenue | 780 | 108 | |||||
Total adjustments | 10,625 | 6,444 | |||||
Net cash used for operating activities | (6,985 | ) | (7,107 | ) | |||
Cash flow from investing activities: | |||||||
Additions to patents, technology and other | (13 | ) | (10 | ) | |||
Additions to property and equipment | (461 | ) | (296 | ) | |||
Net cash (used for) provided by investing activities | (474 | ) | (306 | ) | |||
Cash flow from financing activities: | |||||||
Issuance of common stock pursuant to stock option plans | 729 | 1,400 | |||||
Issuance of common stock pursuant to Employee Stock Purchase Plan | 266 | – | |||||
Taxes paid related to restricted stock issuance | (225 | ) | (196 | ) | |||
Principal payments of capital lease obligations | – | (16 | ) | ||||
Principal repayment of debt financing | (4,638 | ) | (2,000 | ) | |||
Proceeds from Line of Credit | 775 | 3,000 | |||||
Repayment to Line of Credit | (2,775 | ) | (1,000 | ) | |||
Proceeds from debt financing | 6,957 | – | |||||
Debt issuance costs | (42 | ) | – | ||||
Proceeds from issuance of common stock, net | 18,285 | 9,353 | |||||
Net cash provided by (used for) financing activities | 19,332 | 10,541 | |||||
Increase in cash and equivalents | 11,873 | 3,128 | |||||
Cash and equivalents, beginning of period | 15,313 | 12,185 | |||||
Cash and equivalents, end of period | $ | 27,186 | $ | 15,313 | |||
Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Measures
The Company reports its financial results in accordance with United States generally accepted accounting principles, or GAAP. However, management believes that in order to understand the Company’s short-term and long-term financial and operational trends, investors may wish to consider the impact of certain non-cash or non-recurring items, when used as a supplement to financial performance measures in accordance with GAAP. These items result from facts and circumstances that vary in frequency and/or impact on continuing operations. Management also uses results of operations before such items to evaluate the operating performance of the Company and compare it against past periods, make operating decisions, and serve as a basis for strategic planning. These non-GAAP financial measures provide management with additional means to understand and evaluate the operating results and trends in the Company’s ongoing business by eliminating certain non-cash expenses and other items that management believes might otherwise make comparisons of the Company’s ongoing business with prior periods more difficult, obscure trends in ongoing operations or reduce management’s ability to make useful forecasts. Management believes that these non-GAAP financial measures provide additional means of evaluating period-over-period operating performance. In addition, management understands that some investors and financial analysts find this information helpful in analyzing the Company’s financial and operational performance and comparing this performance to its peers and competitors.
Management defines “Non-GAAP Adjusted EBITDA” as the sum of GAAP Net Loss before provisions for interest expense, other income, stock-based compensation expense, depreciation and amortization, tax expense, severance, gain on sale of assets, loss on disposal of assets, acquisition and litigation related expenses. Management considers this non-GAAP financial measure to be an indicator of the Company’s operational strength and performance of its business and a good measure of its historical operating trends, in particular the extent to which ongoing operations impact the Company’s overall financial performance.
The non-GAAP financial measures do not replace the presentation of the Company’s GAAP financial results and should only be used as a supplement to, not as a substitute for, the Company’s financial results presented in accordance with GAAP. The Company has provided a reconciliation of each non-GAAP financial measure used in its financial reporting and investor presentations to the most directly comparable GAAP financial measure.
Management excludes each of the items identified below from the applicable non-GAAP financial measure referenced above for the reasons set forth with respect to that excluded item:
- Interest expense: The Company excludes interest expense which includes interest from the facility agreement, interest on capital leases and interest on the convertible debentures from its non-GAAP Adjusted EBITDA calculation.
- Stock-based compensation expense: excluded as these are non-cash expenses that management does not consider part of ongoing operating results when assessing the performance of the Company’s business, and also because the total amount of expense is partially outside of the Company’s control as it is based on factors such as stock price volatility and interest rates, which may be unrelated to our performance during the period in which the expense is incurred.
- Amortization and Depreciation: Purchased assets and intangibles are amortized over a period of several years and generally cannot be changed or influenced by management after they are acquired. Accordingly, these non-cash items are not considered by management in making operating decisions, and management believes that such expenses do not have a direct correlation to future business operations. Thus, including such charges does not accurately reflect the performance of the Company’s ongoing operations for the period in which such charges are incurred.
- Severance and furlough relates to costs incurred due to the termination of certain employees. The Company provides compensation to certain employees as an accommodation upon termination of employment without cause. Management believes that excluding severance and furlough costs from operating results provides investors with a better means for measuring current Company performance.
- Loss on fair value of convertible debentures. The Company excludes this non-cash item as it is not considered by management in making operating decisions, and management believes that such item does not have a direct correlation to future business operations.
- Litigation related: These expenses consist primarily of settlement, legal and other professional fees related to litigation. The Company excludes these costs from its non-GAAP measures primarily because the Company believes that these costs have no direct correlation to the core operations of the Company.
- Cares Credit: The company excluded the one-time tax credit as management believes the item does not have a direct correlation to future business operations.
- Loss on extinguishment of debt: The Company excludes this non-cash item as it is not considered by management in making operating decisions, and management believes that such item does not have a direct correlation to future business operations.
On occasion in the future, there may be other items, such as loss on extinguishment of debt, the Cares tax credit, significant asset impairments, restructuring charges or significant gains or losses from contingencies that the Company may exclude if it believes that doing so is consistent with the goal of providing useful information to investors and management.
Non-GAAP Adjusted EBITDA | ||||||||||||||||
Set forth below is a reconciliation of the Company’s “Non-GAAP Adjusted EBITDA” | ||||||||||||||||
(Unaudited) | ||||||||||||||||
(In thousands except for per share data) | ||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
GAAP Net Loss | $ | (1,603 | ) | $ | (3,348 | ) | $ | (17,610 | ) | $ | (13,551 | ) | ||||
Interest Expense | 116 | 180 | 476 | 784 | ||||||||||||
Other income | (12 | ) | (118 | ) | (97 | ) | (344 | ) | ||||||||
Stock Compensation | 286 | 314 | 2,828 | 1,169 | ||||||||||||
Depreciation | 62 | 77 | 269 | 297 | ||||||||||||
Amortization | 76 | 93 | 310 | 376 | ||||||||||||
Tax expense | 4 | 10 | 38 | 43 | ||||||||||||
Severance and Furlough | 35 | 38 | 224 | 86 | ||||||||||||
Cares Credit | – | – | (283 | ) | – | |||||||||||
Loss on extinguishment of debt | – | – | 341 | – | ||||||||||||
Loss of fair value of convertible debentures | – | 1,331 | 7,464 | 6,671 | ||||||||||||
Litigation related | 104 | 36 | 322 | 125 | ||||||||||||
Non-GAAP Adjusted EBITDA | $ | (932 | ) | $ | (1,387 | ) | $ | (5,718 | ) | $ | (4,344 | ) | ||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
GAAP Net Loss | $ | (1,603 | ) | $ | (3,348 | ) | $ | (17,610 | ) | $ | (13,551 | ) | ||||
Adjustments to Net Loss: | ||||||||||||||||
Severance and Furlough | 67 | 38 | 256 | 86 | ||||||||||||
Cares Credit | – | – | (283 | ) | – | |||||||||||
Loss from extinguishment of debt | – | – | 341 | – | ||||||||||||
Litigation related | 104 | 36 | 322 | 125 | ||||||||||||
Loss of fair value of convertible debentures | – | 1,331 | 7,464 | 6,671 | ||||||||||||
Non-GAAP Adjusted Net Loss | $ | (1,432 | ) | $ | (1,943 | ) | $ | (9,510 | ) | $ | (6,669 | ) | ||||
Net Loss per share | ||||||||||||||||
GAAP Net Loss per share | $ | (0.07 | ) | $ | (0.17 | ) | $ | (0.80 | ) | $ | (0.74 | ) | ||||
Adjustments to Net Loss (as detailed above) | 0.01 | 0.07 | 0.37 | 0.37 | ||||||||||||
Non-GAAP Adjusted Net Loss per share | $ | (0.06 | ) | $ | (0.10 | ) | $ | (0.43 | ) | $ | (0.37 | ) | ||||
Artificial Intelligence
Unlock an Exclusive Olympic Experience: Celebrating Live4Well’s Sold-Out Genesis NFT
HONG KONG, May 25, 2024 /PRNewswire/ — The buzz surrounding Live4Well’s successful Genesis NFT membership launch on May 23 has captivated both traditional and web3 communities. Combining the power of AI technology and decentralized physical infrastructure (DePin) concept, Live4Well has infused new life into the NFT market. The overwhelming response to their first NFT sales, showcases the project’s immense potential. Renowned web3 community leaders from Azuki, Bored Ape, Pudgy Penguins, WELL3, etc have joined forces with Live4Well, propelling the Genesis NFT membership collection to its resounding success.
Live4Well aims to transform the wellness industry by creating a reward-based infrastructure that connects global fitness data, enhances their AI database, and drives the development of sports and wellness. Backed by a multi-billion family office, which recently invested $20 million in Live4Well, the project has gained support in both web3 and traditional spaces. The team believes that every drop of sweat and effort toward better health should be rewarded, fostering motivation and integrating exercise into daily lives for enhanced well-being.
Live4Well’s announcement of an Olympic-themed raffle for Genesis NFT holders reflects their commitment to connecting wellness between Web2 and Web3 platforms. This testament to Live4Well’s demand and innovative vision solidifies their position as a promising leader in the industry. Their integration of the Olympic signifies their determination to inspire a global audience, leveraging blockchain technology to create an immersive ecosystem that revolutionizes how individuals engage with fitness on a daily basis for better health. Live4Well’s dedication to bridging the gap between traditional practices and the digital landscape sets them apart as pioneers in promoting well-being on a global scale.
What is Genesis NFT membership?
The Genesis NFT unlocks a multitude of benefits for holders, including the opportunity to cash out their sportive income and access a range of exclusive physical products and services. In addition to future airdrops and angel round whitelist privileges, Genesis holders will receive VIP tailor-made product packs from an innovative German sportswear company, elevating their exercise performance to new heights. With over 400 million sweat points farmed by their users, they are eager to redeem through the Genesis NFT membership. These enticing incentives explain why there was a widespread eagerness to participate in this thrilling event.
Unlike typical projects that raise funds before launching products or services, Live4Well has already released its AI-powered app, amassing over 250,000 users as a community base actively engaging in daily exercise. This early success has fostered a promising community within the wellness industry, as users trust Live4Well’s roadmap and collaborative ventures. The growing traction from both ordinary individuals and web3 enthusiasts has intensified the demand for redeeming and cashing out sweat points, the project’s exercise-based rewards. Obtaining the Genesis NFT membership is now seen as an essential step for accessing the highest tier of benefits and cashing out sportive income.
What’s next for Live4Well?
Following the Genesis sales, Live4Well’s team will shift their focus to the upcoming token generation event (TGE) and a series of farming events. They also have exciting plans for partnerships and other collaborations in the global wellness and fitness industries. If you missed the initial launch, be sure to stay updated on Live4Well’s journey and join this extraordinary revolution.
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Artificial Intelligence
Overseas Expansion Strategy of K-OTT Introduced in France, KOCCA holds the ‘2024 Korea-France Content Forum’
– The ‘Korea-France Content Forum’ held to establish the Foundation for K-OTT’s oversea expansion
PARIS, May 24, 2024 /PRNewswire/ — The Ministry of Culture, Sports and Tourism (Minister Yu In-chon) and the Korea Creative Content Agency (President, Jo Hyun-rae, hereafter KOCCA) held the ‘2024 Korea-France Content Forum’ on May 24th during the Korea Expo in Paris, France.
The ‘2024 Korea-France Content Forum’ featured a keynote session (K-OTT’s Strategies in Global market) presenting K-OTT’s strategies for international expansion and a roundtable session (Strategies in the Era of Streaming) discussing the growth of OTT platforms and collaborative approaches with production companies.
The forum featured participation from various industry leaders including Kun hee Park (CEO, Wavve Americas), Sangjin Lee (Head of content IP Business, LG U+), Seung ae Sohn (Executive Director, Showbox), Ji ae Sohn (Ambassador for Cultural Cooperation), Moonju Kim (General Director, France Business Center, KOCCA), Isabelle Degeorges (President, Gaumont Television France) which produced the French Netflix original series, participated.
Strategy announcement by Wavve Americas (KOCAWA), the first K-OTT’s launched in Europe
During the Keynote Session, Park Kun Hee – CEO of Wavve Americas, the first domestic OTT Platform to launch services in Europe, Took the stage to discuss the international expansion strategy of KOCOWA, which started offering services in 39 countries including Europe since April of this year. Following this, Lee Sangjin, Head of Content IP Business of LG U+, presented the expansion strategy of LG U+ Mobile TV, encompassing diverse original content.
During the round-table session, participants shared thoughts and solutions regarding the survival strategies of local OTT platforms and production companies amidst the rapid waves of change brought about by the emergence of global OTT platforms.
In particular, through this forum, we were able to observe the proactive implementation of IP protection policies by local production companies in France, aimed at sustainable content creation. Isabelle Degeorges, CEO of Gaumont Television France, noted, “With the introduction of the European Audiovisual Media Services Directive (AVMSD), platforms and production companies can share IPs three years after supplying the content.” Kim Moon-joo, Director of the Korea Creative Content Agency’s France Business Center, participated as a panelist, introducing policies aimed at enhancing the competitiveness of K-OTT and fostering collaboration with production companies.
Park Kun Hee, CEO of Wavve Americas, who participated in the event, stated, “It was a meaningful opportunity to introduce our platform locally in Europe in line with KOCOWA’s expansion into the region”. Additionally, Kyoungbon Koo, Director Broadcasting & Video Content Division at KOCCA commented, “It was a meaningful occasion to not only introduce K-OTT’s strategies to Europe but also to exchange ideas on collaboration between Korea and France. We will continue to focus on activating various forms of collaboration with major international partners in the future”.
KOCCA supports the overseas expansion of excellent domestic OTT content and platforms through the newly established Local OTT Specialized Support Program this year. This initiative aims to enhance the competitiveness of domestic OTT platforms and content by adapting to the changing industrial environment.
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Artificial Intelligence
IoT Node and Gateway Market worth $604.7 billion by 2029 – Exclusive Report by MarketsandMarkets™
CHICAGO, May 24, 2024 /PRNewswire/ — The IoT Node and Gateway market is projected to grow from USD 424.6 billion in 2024 and is estimated to reach USD 604.7 billion by 2029; it is expected to grow at a Compound Annual Growth Rate (CAGR) of 7.3% from 2024 to 2029 according to a new report by MarketsandMarkets™. The growth of the IoT Node and Gateway market is driven by the Provision of increased IP address space through IPv6, Emergence of 5G technology, and Increasing need for data centers.
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Browse in-depth TOC on “IoT Node and Gateway Market”
410 – Tables70 – Figures390 – Pages
IoT Node and Gateway Market Report Scope:
Report Coverage
Details
Market Revenue in 2024
$ 424.6 billion
Estimated Value by 2029
$ 604.7 billion
Growth Rate
Poised to grow at a CAGR of 7.3%
Market Size Available for
2020–2029
Forecast Period
2024–2029
Forecast Units
Value (USD Million/Billion)
Report Coverage
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Segments Covered
By Hardware, End-use Application and Region
Geographies Covered
North America, Europe, Asia Pacific, and Rest of World
Key Market Challenge
Requirement for wireless spectrum and licensed spectrum
Key Market Opportunities
Accelerated IoT adoption in healthcare sector
Key Market Drivers
Rising use of wireless smart sensors and networks
By Hardware, the Logic Devices are projected to grow at a high CAGR of IoT Node and Gateway market during the forecast period.
Logic devices can adapt to changing requirements even after deployment. As new features or functionalities are needed, the logic within the device can be reprogrammed to accommodate these changes, extending the useful life of the product and reducing the need for hardware revisions. The integration of FPGA technology into IoT devices further enhances these advantages. The integration of FPGAs into IoT nodes and gateways empowers manufacturers to develop highly optimized, customizable, and scalable solutions that meet the diverse needs of IoT applications. Tesla’s Full Self-Driving (FSD) computer utilizes FPGAs to handle complex neural network computations for autonomous driving algorithms. This allows them to potentially improve their FSD capabilities through software updates that reconfigure the logic within the FPGAs.
BFSI segment in IoT Node and Gateway Market is projected to grow at a highest CAGR during the forecast period.
BFSI sector can use IoT technology to provide more convenient solutions for customers. IoT can be used to perform data collection in real time and for instant communication between devices. For instance, it can facilitate cashless payments using an RFID scanner to identify products in the shopping cart and mobile wallet. The adoption of mobile point of sale (mPOS) systems and kiosks is fundamentally reshaping the landscape of the BFSI market. mPOS facilitates transactions anytime, anywhere, benefiting unbanked populations and enabling temporary service points for events. Kiosks offer convenient banking functionalities, reducing wait times and freeing up staff for complex inquiries. These technologies drive cost savings by requiring less investment and automating routine tasks, allowing resources to be reallocated strategically. They provide rich data for personalized services, fraud detection, and operational optimization. mPOS systems and kiosks promote financial inclusion by extending services to remote areas, fostering economic activity and well-being.
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North America accounts for the largest share in IoT Node and Gateway Industry.
The North American IoT market is poised to grow, driven by government efforts to transition cities into smart urban centers. The growing need for sophisticated IoT solutions, fueled by the widespread availability of high-speed data, will further propel market expansion in this region. Furthermore, North America’s dynamic IoT node and gateway ecosystem features established players like Intel Corporation (US), Texas Instruments Incorporated (US), Dell (US), and Cisco Systems (US), driving competition, innovation, and affordability. Increasing research and development at industry levels is broadening the application areas of IoT in various industries, such as retail, consumer electronics, automotive and transportation, and healthcare, especially in the US. The increased demand for effective solutions and focus on early, accurate, and fast diagnosis of diseases has led to huge investments in technological developments in the healthcare sector.
Key Players
Key companies operating in the IoT Node and Gateway companies are Intel Corporation (US), Qualcomm Technologies, Inc. (US), Texas Instruments Incorporated (US), STMicroelectronics (Switzerland), Microchip Technology Inc. (US), Huawei Technologies Co., Ltd. (China), NXP Semiconductors N.V. (Netherlands), Cisco Systems, Inc. (US), Hewlett Packard Enterprise Development LP (US), TE Connectivity Ltd (Switzerland), Advantech Co., Ltd. (Taiwan), Dell Technologies (US), among others.
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IoT Technology Market by Node Component (Sensor, Memory Device, Connectivity IC, Processor, Logic Devices), Software Solution (Remote Monitoring, Data Management), Platform, Service, End-use Application, Geography – Global Forecast to 2029
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The B2B economy is witnessing the emergence of $25 trillion of new revenue streams that are substituting existing revenue streams in this decade alone. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines – TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing.
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