0000948708FALSE00009487082024-05-082024-05-08


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 8, 2024
Smith Micro Software, Inc.
(Exact name of Registrant as Specified in Its Charter)
Delaware001-3552533-0029027
(State or Other Jurisdiction
of Incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
5800 Corporate Drive
Pittsburgh, PA
15237
(Address of Principal Executive Offices)
 
(Zip Code)
Registrant’s Telephone Number, Including Area Code: (412) 837-5300
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:

Title of each class 
Trading
Symbol(s)
 Name of each exchange on which registered
Common Stock, par value $0.001 per share SMSI NASDAQ
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐




Item 2.02Results of Operations and Financial Condition
On May 8, 2024, Smith Micro Software, Inc. issued a press release announcing its financial results for the three months ended March 31, 2024. A copy of the press release is hereby furnished to the Securities and Exchange Commission as Exhibit 99.1 and incorporated by reference herein.
In accordance with General Instruction B.2 of Form 8-K, the information in this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section and will not be incorporated by reference into any filing under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.
Item 7.01Regulation FD
The information set forth under Item 2.02 is incorporated into this Item 7.01 by reference.
Item 9.01.Financial Statements and Exhibits.
(d) Exhibits
ExhibitDescription
99.1
Press Release issued on May 8, 2024
104Cover Page Interactive Data File (embedded within the Inline XBRL document)


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Smith Micro Software, Inc.
Date: May 8, 2024
By:/s/ James M. Kempton
James M. Kempton
Vice President and Chief Financial Officer


Exhibit 99.1
gnyzmd4ldoop000001.jpg
IR INQUIRIES:
Charles Messman
Investor Relations
949-362-5800
IR@smithmicro.com
Smith Micro Reports First Quarter 2024 Financial Results
PITTSBURGH, PA, May 8, 2024 – Smith Micro Software, Inc. (Nasdaq: SMSI) (“Smith Micro” or the “Company”) today reported financial results for its first quarter ended March 31, 2024.
“In the first quarter, we have made progress in several key areas that we believe position us for growth in the back half of this fiscal year,” said William W. Smith, Jr., president, chief executive officer, and chairman of the board of Smith Micro. “We are pleased to announce that in the near term we plan to launch our first customer on SafePath Global™, a new rapid-deployment model of our SafePath® solution. Additionally, we have introduced our affiliate/influencer and retail store ambassador marketing programs to help drive subscriber growth of mobile operators' SafePath-based solutions, and we expect our previously announced Tier 1 MNO customer in Europe to launch in the second half of this year delivering a unique product approach to a family safety solution that has yet to be seen in the market.”

“We are keenly focused on returning the Company to growth and profitability in the near term,” Smith continued. “With our new product development initiatives, including SafePath Global™, SafePath Premium™ and SafePath OS™, and our new wave of marketing activities, we believe that the Company is poised for growth over the coming quarters. To accelerate our return to non-GAAP profitability and positive cash flow, we also plan to take steps to further reduce our cost structure. The team at Smith Micro is extremely dedicated and motivated to the mission of bringing new, innovative solutions to the market and delivering the technology necessary to keep families safe in the world we live in today, and to provide premium service, innovation, and ingenuity for our customers.”
First Quarter 2024 Financial Results
Smith Micro reported revenue of $5.8 million for the quarter ended March 31, 2024, compared to $10.9 million reported in the quarter ended March 31, 2023.
Gross profit for the quarter ended March 31, 2024 was $3.8 million, compared to $7.6 million for the quarter ended March 31, 2023.
Gross profit as a percentage of revenue was 65.7 percent for the quarter ended March 31, 2024, compared to 70.0 percent for the quarter ended March 31, 2023.
GAAP net loss for the quarter ended March 31, 2024 was $31.0 million, or $3.28 loss per share, compared to GAAP net loss of $6.9 million, or $0.97 loss per share, for the quarter ended March 31, 2023.
Non-GAAP net loss for the quarter ended March 31, 2024 was $4.2 million, or $0.45 loss per share, compared to non-GAAP net loss of $3.6 million, or $0.51 loss per share, for the quarter ended March 31, 2023. Non-GAAP net income and net loss excludes the items noted below under "Non-GAAP Measures."

Smith Micro Software First Quarter 2024 Financial Results
Page 2
All share and per share amounts for common stock herein have been retroactively adjusted for all periods presented to give effect to the one-for-eight reverse stock split (the "Reverse Stock Split") of our common stock, which became effective April 10, 2024 at 11:59 pm Eastern time.
Total cash and cash equivalents as of March 31, 2024 were $6.2 million.
Non-GAAP Measures

To supplement our financial information presented in accordance with GAAP, the Company considers, and has included in this press release, the following non-GAAP financial measures and a non-GAAP reconciliation from the equivalent GAAP metric: non-GAAP net (loss) income, non-GAAP gross profit, and non-GAAP basic and diluted (loss) earnings per share in the presentation of financial results in this press release. Management believes this non-GAAP presentation may be more meaningful in analyzing the Company's income generation and has therefore excluded the following items from GAAP earnings calculations: stock compensation, intangibles amortization, depreciation, fair value adjustments, amortization of debt issuance costs and discount, goodwill impairment, and adjustments for non-recurring items. Additionally, since the Company currently has federal and state net operating loss carryforwards that can be utilized to reduce future cash payments for income taxes, these non-GAAP adjustments have not been tax effected, and the resulting income tax expense reflects actual taxes paid or accrued during each period. This presentation may be considered more indicative of the Company's ongoing operational performance. The table below presents the differences between non-GAAP net loss and net loss on an absolute and per-share basis. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and the non-GAAP financial measures as reported by Smith Micro may not be comparable to similarly titled amounts reported by other companies.
Investor Conference Call
Smith Micro will hold an investor conference call today, May 8, 2024, at 4:30 p.m. ET, to discuss the Company’s first quarter 2024 financial results. To access the call, dial 1-844-701-1164; international participants can call 1-412-317-5492. A passcode is not required to join the call; ask the operator to be placed into the Smith Micro conference. Participants are asked to call the assigned number approximately 10 minutes before the conference call begins. An internet webcast is available at https://event.choruscall.com/mediaframe/webcast.html?webcastid=diAQPqLJ. In addition, the conference call will be available on the Smith Micro website in the Investor Relations section.

Smith Micro Software First Quarter 2024 Financial Results
Page 3
About Smith Micro Software, Inc.
Smith Micro develops software to simplify and enhance the mobile experience, providing solutions to some of the leading wireless service providers around the world. From enabling the family digital lifestyle to providing powerful voice messaging capabilities, our solutions enrich today’s connected lifestyles while creating new opportunities to engage consumers via smartphones and consumer IoT devices. The Smith Micro portfolio also includes a wide range of products for creating, sharing, and monetizing rich content, such as visual voice messaging, optimizing retail content display and performing analytics on any product set. For more information, visit www.smithmicro.com.
Smith Micro, the Smith Micro logo and SafePath are registered trademarks or trademarks of Smith Micro Software, Inc. All other trademarks and product names are the property of their respective owners.
Forward-Looking Statements
Certain statements in this press release are, and certain statements on the related conference call may be, forward-looking statements regarding future events or results within the meaning of the Private Securities Litigation Reform Act, including statements related to our financial prospects, goals and other projections of our outlook or performance our cost reduction plans and other future business plans, and statements using such words as “expect,” “anticipate,” “believe,” “plan,” “intend,” “could,” “will” and other similar expressions. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Among the important factors that could cause or contribute to such differences are customer concentration, given that the majority of our sales depend on a few large customer relationships and the loss of any of them could materially and negatively affect our business, delay or failure of our customers to accept and deploy our products and services or new or upgraded versions thereof, delay or failure of our customers’ end users to adopt our products and services or new or upgraded versions thereof, our reliance on third party operating systems for the proper operation and delivery of our solutions and any barriers to our use of such third party technology, our reliance on third party application stores for the distribution of our software applications to users and any barriers to such distribution, including any delay or failure of such third party to approve new versions of our applications or their implementation and/or application of policies that may be harmful to our business, unanticipated delays or obstacles in our development and release cycles, the degree to which competing business needs may affect our allocation of resources to planned projects, delays in our ability to fully execute on our cost reduction plans due to statutory and other requirements, the risk of harm to our business resulting from our recent and any future cost reduction efforts, our ability to attract and retain key technical personnel that are essential to our product development and support efforts, changes in demand for our products from our customers and their end users, changes in requirements for our products imposed by our customers or by the third party providers of software and/or platforms that we use, our ability to effectively integrate, market and sell acquired product lines, new and changing technologies and customer acceptance and timing of deployment of those technologies, and our ability to compete effectively with other software and technology companies. These and other factors discussed in our filings with the Securities and Exchange Commission, including our filings on Forms 10-K and 10-Q, could cause actual results to differ materially from those expressed or implied in any forward-looking statements. The forward-looking statements contained in this release are made on the basis of the views and assumptions of management, and we do not undertake any obligation to update these statements to reflect events or circumstances occurring after the date of this release.



Smith Micro Software First Quarter 2024 Financial Results
Page 4
Smith Micro Software, Inc.  
Consolidated Balance Sheets 
(in thousands except share and par value data)  
 
 March 31,
2024		December 31,
2023
 (unaudited)(audited)
Assets
Current assets:
Cash and cash equivalents$6,155 $7,125 
Accounts receivable, net of related allowances of $3 and $3 at 2024 and 2023, respectively
4,301 7,912 
Prepaid expenses and other current assets1,800 1,843 
Total current assets12,256 16,880 
Equipment and improvements, net790 883 
Right-of-use assets3,147 2,759 
Other assets480 482 
Intangible assets, net27,715 29,532 
Goodwill11,052 35,041 
Total assets$55,440 $85,577 
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable$2,218 $2,522 
Accrued payroll and benefits2,653 2,500 
Current operating lease liabilities1,272 1,483 
Other current liabilities1,048 1,137 
Total current liabilities7,191 7,642 
Non-current liabilities:
Warrant liabilities411 597 
Operating lease liabilities2,228 1,780 
Deferred tax liabilities, net168 168 
Total non-current liabilities2,807 2,545 
Commitments and contingencies
Stockholders' equity:
Common stock, par value $0.001 per share; 100,000,000 shares authorized; 9,601,504 and 9,347,979 shares issued and outstanding 2024 and 2023, respectively
10 9 
Additional paid-in capital382,387 381,329 
Accumulated comprehensive deficit(336,955)(305,948)
Total stockholders’ equity45,442 75,390 
Total liabilities and stockholders' equity$55,440 $85,577 



Smith Micro Software First Quarter 2024 Financial Results
Page 5
Smith Micro Software, Inc.
Consolidated Statements of Operations
(in thousands except share data)
For the Three Months Ended
March 31,
20242023
(unaudited)(unaudited)
Revenues$5,798 $10,930 
Cost of revenues (including depreciation of $6 and $14 in the three months ended March 31, 2024 and 2023, respectively)
1,988 3,282 
Gross profit3,810 7,648 
Operating expenses:
Selling and marketing2,614 3,554 
Research and development3,989 5,868 
General and administrative2,756 3,475 
Depreciation and amortization1,908 1,686 
Goodwill impairment
23,989 — 
Total operating expenses35,256 14,583 
Operating loss(31,446)(6,935)
Other income (expense):
Change in fair value of warrant and derivative liabilities185 2,984 
Loss on derecognition of debt— (627)
Interest income (expense), net
74 (2,260)
Other income (expense), net
219 (40)
Loss before provision for income taxes(30,968)(6,878)
Provision for income tax expense39 9 
Net loss$(31,007)$(6,887)
Loss per share:
Basic and diluted$(3.28)$(0.97)
Weighted average shares outstanding:
Basic and diluted9,466 7,121 




Smith Micro Software First Quarter 2024 Financial Results
Page 6
Smith Micro Software, Inc.
Consolidated Statements of Cash Flows
(in thousands)
 
 For the Three Months Ended
March 31,
 20242023
 (unaudited)(unaudited)
Operating activities:
Net loss$(31,007)$(6,887)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization1,914 1,700 
Goodwill impairment charge
23,989 — 
Non-cash lease expense(151)(27)
Change in fair value of warrant and derivative liabilities(185)(2,984)
Loss on derecognition of debt— 627 
Amortization of debt discount and issuance costs— 2,117 
Stock based compensation1,136 945 
Gain on license of patents, net
(198)— 
Gain on disposal of assets
— (3)
Changes in operating accounts:
Accounts receivable3,611 (685)
Prepaid expenses and other assets44 164 
Accounts payable and accrued liabilities(469)(65)
Other liabilities(29)(237)
Net cash used in operating activities
(1,345)(5,335)
Investing activities:
Acquisitions, net— — 
Capital expenditures, net(4)3 
Proceeds from license of patents, net
198 — 
Net cash provided by investing activities
194 3 
Financing activities:
Proceeds from financing arrangements468 442 
Repayments of financing arrangements(289)(420)
Other financing activities2 8 
Net cash provided by financing activities
181 30 
Net decrease in cash and cash equivalents
(970)(5,302)
Cash and cash equivalents, beginning of period$7,125 14,026 
Cash and cash equivalents, end of period$6,155 $8,724 

Smith Micro Software First Quarter 2024 Financial Results
Page 7
Smith Micro Software, Inc.
Reconciliation of GAAP to Non-GAAP Results
(in thousands, except per share data) - unaudited
 GAAPStock CompensationIntangibles AmortizationDepreciationFair Value AdjustmentsAmortization of Debt Issuance Costs and Discount
Goodwill Impairment
Adjustments for Non-Recurring Items
Non-GAAP
Three Months Ended
March 31, 2024		   
Gross profit$3,810 $— $— $6 $— $— $— $— $3,816 
Selling and marketing2,614 (309)— — — — — (13)2,292 
Research and development3,989 (264)— — — — — (18)3,707 
General and administrative2,756 (563)— — — — — (104)2,089 
Depreciation and amortization1,908 — (1,816)(92)— — — — — 
Goodwill impairment23,989 — — — — — (23,989)— — 
Total operating expenses$35,256 $(1,136)$(1,816)$(92)$— $— $(23,989)$(135)$8,088 
(Loss) Income before provision for income taxes
$(30,968)$1,136 $1,816 $98 $(185)$— $23,989 $(63)$(4,177)
Net (Loss) Income
$(31,007)$1,136 $1,816 $98 $(185)$— $23,989 $(63)$(4,216)
(Loss) earnings per share: basic and diluted
$(3.28)$0.12 $0.19 $0.01 $(0.02)$— $2.53 $(0.01)$(0.45)
     
Three Months Ended
March 31, 2023		   
Gross profit$7,648 $— $— $14 $— $— $— $183 $7,845 
Selling and marketing3,554 (162)— — — — — (93)3,299 
Research and development5,868 (224)— — — — — (462)5,182 
General and administrative3,475 (559)— — — — — (135)2,781 
Depreciation and amortization1,686 — (1,474)(212)— — — — — 
Total operating expenses$14,583 $(945)$(1,474)$(212)$— $— $— $(690)$11,262 
(Loss) Income before provision for income taxes
$(6,878)$945 $1,474 $226 $(2,357)$2,117 $— $873 $(3,600)
Net (Loss) Income$(6,887)$945 $1,474 $226 $(2,357)$2,117 $— $873 $(3,609)
(Loss) earnings per share: basic and diluted
$(0.97)$0.13 $0.21 $0.03 $(0.33)$0.30 $— $0.12 $(0.51)

Note: (Loss) earnings per share: basic and diluted - may be impacted by rounding to allow rows to calculate.




v3.24.1.u1
Cover
May 08, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date May 08, 2024
Entity Registrant Name Smith Micro Software, Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-35525
Entity Tax Identification Number 33-0029027
Entity Address, Address Line One 5800 Corporate Drive
Entity Address, City or Town Pittsburgh
Entity Address, State or Province PA
Entity Address, Postal Zip Code 15237
City Area Code 412
Local Phone Number 837-5300
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.001 per share
Trading Symbol SMSI
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0000948708
Amendment Flag false
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