Oblong, Inc. (Nasdaq: OBLG) (“Oblong” or the “Company”), an
innovator in collaboration solutions, today reported financial
results for the fourth quarter and fiscal year ending December 31,
2023, and provided updates on the Company’s business and
strategy.
During 2023, the Company diligently optimized its operations,
streamlined expenditures, and strengthened Oblong’s balance sheet
to position itself as a lean and agile innovator in the tech
landscape. Oblong raised $5.9 million in funding in 2023 that we
believe provides the Company with ample liquidity and a clear
runway through mid-2025. This strategic financing underscores the
confidence of Oblong’s investors in the Company’s vision and
long-term strategy.
"Our strategy for growth and enhancing shareholder value is
twofold. We aim to grow organically by expanding our market
presence while actively seeking inorganic growth opportunities
through strategic partnerships or acquisitions," said Peter Holst,
CEO of Oblong. "Our exploration of strategic alternatives is
diverse, encompassing the consideration of a range of
transformative actions. These include the possibility of a business
combination; a reverse merger; or outright sale of the company.
Each option is being carefully evaluated to ensure it aligns with
our overarching goal of sustainable growth and value creation.
Specifically, we are interested in early-stage technology companies
creating transformative approaches to leveraging technology for the
betterment of human life. These companies may complement our
existing offerings but could also open new avenues for expansion by
tapping into significant market opportunities. In our quest to find
the right partners, we are particularly focused on ventures that
have demonstrated their ability to innovate and capture early-stage
interest of their target markets, indicating a clear path to
scalability and a substantial market presence."
Fourth Quarter 2023 Financial
Results
- As of December 31, 2023, the Company had $6.0 million of cash
and cash equivalents and no debt.
- Total revenue was $0.9 million for the fourth quarter of 2023
versus $1.4 million for the fourth quarter of 2022.
- Net loss of $1.2 million for the fourth quarter of 2023,
compared to a net loss of $1.2 million for the fourth quarter of
2022.
- Adjusted EBITDA (“AEBITDA”) loss of $0.9 million for the fourth
quarter of 2023, compared to an AEBITDA loss of $1.2 million for
the fourth quarter of 2022. 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, severance, income tax expense (benefit), and interest and
other income, 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’s exploration of strategic
alternatives, including the Company’s goal to forge partnerships
with select early-stage technology companies and the mission to
deliver innovative technology solutions, and (ii) the Company’s
liquidity and operating expense projections. 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, 2023 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, except par
value and stated value)
December 31, 2023
December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents
$
5,990
$
3,085
Accounts receivable, net
424
415
Inventory, net
239
723
Prepaid expenses and other current
assets
243
649
Total current assets
6,896
4,872
Property and equipment, net
—
3
Intangibles, net
—
604
Operating lease, right-of-use assets
17
142
Other assets
12
40
Total assets
$
6,925
$
5,661
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
211
184
Accrued expenses and other current
liabilities
1,038
1,074
Current portion of deferred revenue
132
436
Current portion of operating lease
liabilities
17
219
Total current liabilities
1,398
1,913
Long-term liabilities:
Deferred revenue, net of current
portion
26
114
Operating lease liabilities, net of
current portion
—
17
Total long-term liabilities
26
131
Total liabilities
1,424
2,044
Commitments and contingencies
Stockholders’ equity:
Preferred stock Series F, convertible;
$.0001 par value; $2,064,063 stated value; 42,000 shares
authorized, 1,930 and zero shares issued and outstanding at
December 31, 2023 and December 31, 2022, respectively
—
—
Common stock, $.0001 par value;
150,000,000 shares authorized; 16,692,000 shares issued and
16,685,000 shares outstanding at December 31, 2023 and 2,071,000
shares issued and 2,063,000 outstanding at December 31, 2022
2
—
Treasury stock, 8,000 common shares at
December 31, 2023 and 2022
(181
)
(181
)
Additional paid-in capital
233,911
227,645
Accumulated deficit
(228,231
)
(223,847
)
Total stockholders’ equity
5,501
3,617
Total liabilities and stockholders’
equity
6,925
5,661
OBLONG, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
($ in thousands)
(Unaudited)
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
Revenue
$
944
$
1,426
$
3,810
$
5,476
Cost of revenue (exclusive of depreciation
and amortization and casualty loss)
655
1,130
2,899
3,930
Gross profit
289
296
911
1,546
Operating expenses (gains):
Research and development
4
65
20
1,699
Sales and marketing
68
270
309
1,431
General and administrative
1,147
1,174
4,870
5,278
Impairment charges
260
25
262
12,740
Casualty (gain) loss, net
—
(50
)
(400
)
483
Depreciation and amortization
86
85
345
1,903
Total operating expenses
1,565
1,569
5,406
23,534
Loss from operations
(1,276
)
(1,273
)
(4,495
)
(21,988
)
Interest and other income, net
(44
)
(41
)
(138
)
(40
)
Loss before income taxes
(1,232
)
(1,232
)
(4,357
)
(21,948
)
Income tax expense (benefit)
(11
)
(15
)
27
(7
)
Net loss
$
(1,221
)
$
(1,217
)
$
(4,384
)
$
(21,941
)
GAAP to Non-GAAP
Reconciliation:
Three Months Ended
Year Ended
December 31,
December 31,
2023
2022
2023
2022
Net loss
$
(1,221
)
$
(1,217
)
$
(4,384
)
$
(21,941
)
Depreciation and amortization
86
85
345
1,903
Interest and other income, net
(44
)
(41
)
(138
)
(40
)
Income tax (benefit) expense
(11
)
(15
)
27
(7
)
Impairment charges
260
25
262
12,740
Casualty loss (gain)
—
(50
)
(400
)
483
Severance
—
—
—
294
Stock-based compensation and expense
31
31
504
61
Adjusted EBITDA Loss
$
(899
)
$
(1,182
)
$
(3,784
)
$
(6,507
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240319264133/en/
Investor Relations Contact David Clark
investors@oblong.com (213) 683-8863 ext. 5
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