Oblong, Inc. (Nasdaq: OBLG) (“Oblong” or the “Company”), the
award-winning maker of multi-stream collaboration solutions, today
reported financial results for the third quarter ending September
30, 2022.
“Our results for the third quarter came in as previously
expected and, while our sales and profit results do not yet reflect
the strategic and financial actions taken in recent quarters to
shift our performance, we are confident in our stated objective to
pursue growth both organically and through inorganic means that may
include a business combination or sale of the company. Lastly, I
want to thank our team for their proven dedication and resilience
during this extraordinary and important time for our organization,”
commented Pete Holst, President & CEO of Oblong.
- As of September 30, 2022, the Company had $4.1 million of cash
and no debt.
- Total revenue was $1.2 million for the third quarter of 2022
versus $1.8 million for the third quarter of 2021.
- Net loss of $7.2 million for the third quarter of 2022,
compared to a net loss of $0.7 million for the third quarter of
2021. During the third quarter of 2022, the Company recorded
non-cash impairment charges on intangible and other assets of $5.2
million.
- Adjusted EBITDA (“AEBITDA”) loss of $1.4 million for the third
quarter of 2022, compared to an AEBITDA loss of $1.7 million for
the third quarter of 2021. AEBITDA loss is a non-GAAP financial
measure. See “Non-GAAP Financial Information” below for additional
information regarding this non-GAAP financial measure, and “GAAP to
Non-GAAP Reconciliation” for a reconciliation of this non-GAAP
financial measure to net loss.
Non-GAAP Financial Information
Adjusted EBITDA (“AEBITDA”) loss, a non-GAAP financial measure,
is defined as net loss before depreciation and amortization,
stock-based compensation and expense, impairment charges, casualty
loss, gain on extinguishment of debt, severance, income tax
expense, and interest and other (income) expense, net. AEBITDA loss
is not intended to replace operating loss, net loss, cash flow or
other measures of financial performance reported in accordance with
generally accepted accounting principles (GAAP). Rather, AEBITDA
loss is an important measure used by management to assess the
operating performance of the Company and to compare such
performance between periods. AEBITDA loss as defined here may not
be comparable to similarly titled measures reported by other
companies due to differences in accounting policies. Therefore,
AEBITDA loss should be considered in conjunction with net loss and
other performance measures prepared in accordance with GAAP, such
as operating loss or cash flow used in operating activities, and
should not be considered in isolation or as a substitute for GAAP
measures, such as net loss, operating loss or any other GAAP
measure of liquidity or financial performance. A GAAP to non-GAAP
reconciliation of net loss to AEBITDA loss is shown under “GAAP to
Non-GAAP Reconciliation” later in this release.
About Oblong, Inc.
Oblong (Nasdaq:OBLG) provides innovative and patented
technologies that change the way people work, create, and
communicate. Oblong’s flagship product Mezzanine™ is a remote
meeting technology platform that offers simultaneous content
sharing to achieve situational awareness for both in-room and
remote collaborators. Oblong supplies Mezzanine systems to Fortune
500 and enterprise customers. For more information, visit
www.oblong.com and Oblong’s Twitter and Facebook pages.
Forward looking and cautionary statements
This press release and any oral statements made regarding the
subject of this release contain forward-looking statements as
defined under Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and are made under the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. All statements,
other than statements of historical facts, that address activities
that Oblong assumes, plans, expects, believes, intends, projects,
estimates or anticipates (and other similar expressions) will,
should or may occur in the future are forward-looking statements.
Oblong’s actual results may differ materially from its
expectations, estimates and projections, and consequently you
should not rely on these forward-looking statements as predictions
of future events. Without limiting the generality of the foregoing,
forward-looking statements contained in this press release include
statements relating to (i) the Company exploring strategic
alternatives to maximize value for our shareholders and the timing
and results thereof, (ii) the Company’s potential future growth and
financial performance, and (iii) the success of its products and
services. There can be no assurance that the strategic review being
undertaken will result in a merger, sale or other business
combination involving the Company. The forward-looking statements
are based on management’s current belief, based on currently
available information, as to the outcome and timing of future
events, and involve factors, risks, and uncertainties, including
the volatility of market price for our securities, that may cause
actual results in future periods to differ materially from such
statements. A list and description of these and other risk factors
can be found in the Company’s Annual Report on Form 10-K for the
year ending December 31, 2021 and in other filings made by the
Company with the SEC from time to time. Any of these factors could
cause Oblong’s actual results and plans to differ materially from
those in the forward-looking statements. Therefore, the Company can
give no assurance that its future results will be as estimated. The
Company does not intend to, and disclaims any obligation to,
correct, update, or revise any information contained herein.
OBLONG, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
($ in thousands)
September 30, 2022
December 31, 2021
(Unaudited)
ASSETS
Current assets:
Cash
$
4,143
$
8,939
Restricted cash
—
61
Accounts receivable, net
357
849
Inventory
1,027
1,821
Prepaid expenses and other current
assets
868
1,081
Total current assets
6,395
12,751
Property and equipment, net
25
159
Goodwill
—
7,367
Intangibles, net
690
7,562
Right-of-use assets, net
201
659
Other assets
53
109
Total assets
$
7,364
$
28,607
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
401
259
Accrued expenses and other current
liabilities
1,088
959
Current portion of deferred revenue
571
783
Current portion of operating lease
liabilities
306
492
Total current liabilities
2,366
2,493
Long-term liabilities:
Operating lease liabilities, net of
current portion
43
236
Deferred revenue, net of current
portion
152
381
Total long-term liabilities
195
617
Total liabilities
2,561
3,110
Commitments and contingencies
Stockholders’ equity:
Common stock, $.0001 par value;
150,000,000 shares authorized; 30,929,331 shares issued and
30,816,048 outstanding at September 30, 2022 and December 31,
2021
3
3
Treasury stock, 113,283 shares of common
stock at September 30, 2022 and December 31, 2021
(181
)
(181
)
Additional paid-in capital
227,611
227,581
Accumulated deficit
(222,630
)
(201,906
)
Total stockholders' equity
4,803
25,497
Total liabilities and stockholders’
equity
$
7,364
$
28,607
OBLONG, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
($ in thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2022
2021
2022
2021
Revenue
$
1,185
$
1,799
4,050
5,766
Cost of revenue (exclusive of depreciation
and amortization and casualty loss)
841
1,228
2,800
3,767
Gross profit
344
571
1,250
1,999
Operating expenses:
Research and development
232
693
1,634
1,984
Sales and marketing
282
438
1,161
1,537
General and administrative
1,229
1,628
4,104
5,078
Impairment charges
5,169
254
12,715
302
Casualty loss
—
—
533
—
Depreciation and amortization
592
669
1,818
2,098
Total operating expenses
7,504
3,682
21,965
10,999
Loss from operations
(7,160
)
(3,111
)
(20,715
)
(9,000
)
Interest and other expense (income),
net
(5
)
(2,449
)
1
(2,659
)
Loss before income taxes
(7,155
)
(662
)
(20,716
)
(6,341
)
Income tax expense (benefit)
(3
)
—
8
—
Net loss
$
(7,152
)
$
(662
)
(20,724
)
(6,341
)
GAAP to Non-GAAP
Reconciliation:
Three Months Ended
Nine Months Ended
September 30,
September 30,
2022
2021
2022
2021
Net loss
$
(7,152
)
$
(662
)
$
(20,724
)
$
(6,341
)
Depreciation and amortization
592
669
1,818
2,098
Interest and other expense (income),
net
(5
)
(2,449
)
1
(2,659
)
Income tax expense (benefit)
(3
)
—
8
—
Impairment charges
5,169
254
12,715
302
Severance
—
12
294
23
Casualty loss
—
—
533
—
Stock-based expense
31
502
30
925
Adjusted EBITDA Loss
$
(1,368
)
$
(1,674
)
$
(5,325
)
$
(5,652
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221110005966/en/
David Clark investors@oblong.com (213) 683-8863 ext 2205
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