Oblong Announces Financial Results for Third Quarter 2023 and Provides Business Update
LOS ANGELES, November 14, 2023--(BUSINESS WIRE)--Oblong, Inc. (Nasdaq: OBLG) ("Oblong" or the "Company"), a burgeoning player in the technology sector, is pleased to announce significant strategic shifts and a reinforced commitment to sustainable growth. Over the past year, we believe the Company has diligently optimized its operations, enhanced efficiency, and streamlined expenditures to position itself as a lean and agile innovator in the tech landscape.
With a series of decisive cost-reduction measures, we believe Oblong has successfully rationalized its cost structure. This disciplined approach to financial management has resulted in a more robust and focused operation, ensuring that resources are aligned with the company's core mission to deliver innovative technology solutions.
In a pivotal move six months ago, Oblong raised $6.0 million in funding that we believe has fortified its balance sheet, providing the company with ample liquidity and a clear runway through mid-2025. This strategic financing underscores the confidence of our investors in Oblong's vision and the long-term strategy. At a time when the private markets are witnessing a comprehensive valuation reset, Oblong has proactively embarked on a journey to identify and forge partnerships with select early-stage technology companies. Our goal is to collaborate with innovative ventures that have not only crafted minimum viable products but have also demonstrated genuine market traction and hold the promise of considerable market opportunities.
"Oblong's strategy is rooted in a commitment to transformation and innovation," said Peter Holst, CEO of Oblong. "By tightening our operational focus and securing financing that significantly extends our financial horizon, we believe we are well-positioned to capitalize on the unique opportunities that the current market recalibration presents. Our aim is to invest in and nurture groundbreaking technologies that can redefine the marketplace."
Third Quarter 2023 Financial Results
As of September 30, 2023, the Company had $6.8 million of cash and no debt.
Total revenue was $0.9 million for the third quarter of 2023 versus $1.2 million for the third quarter of 2022.
Net loss of $0.9 million for the third quarter of 2023, compared to a net loss of $7.2 million for the third quarter of 2022.
Adjusted EBITDA ("AEBITDA") loss of $0.8 million for the third quarter of 2023, compared to an AEBITDA loss of $1.4 million for the third 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, 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’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 previously disclosed 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, 2022 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, 2023 | December 31, 2022 | |||||||
ASSETS | (Unaudited) | |||||||
Current assets: | ||||||||
Cash | $ | 6,766 | $ | 3,085 | ||||
Accounts receivable, net | 157 | 415 | ||||||
Inventory, net | 324 | 723 | ||||||
Prepaid expenses and other current assets | 330 | 649 | ||||||
Total current assets | 7,577 | 4,872 | ||||||
Property and equipment, net | — | 3 | ||||||
Intangibles, net | 345 | 604 | ||||||
Right-of-use assets, net | 41 | 142 | ||||||
Other assets | 16 | 40 | ||||||
Total assets | $ | 7,979 | $ | 5,661 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | 106 | 184 | ||||||
Accrued expenses and other current liabilities | 974 | 1,074 | ||||||
Current portion of deferred revenue | 157 | 436 | ||||||
Current portion of operating lease liabilities | 43 | 219 | ||||||
Total current liabilities | 1,280 | 1,913 | ||||||
Long-term liabilities: | ||||||||
Deferred revenue, net of current portion | 38 | 114 | ||||||
Operating lease liabilities, net of current portion | — | 17 | ||||||
Total long-term liabilities | 38 | 131 | ||||||
Total liabilities | 1,318 | 2,044 | ||||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock Series F, convertible; $.0001 par value; $5,263,100 stated value; 42,000 shares authorized, 5,146 and zero shares issued and outstanding at September 30, 2023 and December 31, 2022, respectively | — | — | ||||||
Common stock, $.0001 par value; 150,000,000 shares authorized; 4,294,455 shares issued and 4,286,902 shares outstanding at September 30, 2023 and 2,070,861 shares issued and 2,063,308 shares outstanding December 31, 2022 | — | — | ||||||
Treasury stock, 7,553 shares of common stock | (181 | ) | (181 | ) | ||||
Additional paid-in capital | 233,852 | 227,645 | ||||||
Accumulated deficit | (227,010 | ) | (223,847 | ) | ||||
Total stockholders' equity | 6,661 | 3,617 | ||||||
Total liabilities and stockholders’ equity | 7,979 | 5,661 | ||||||
OBLONG, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ($ in thousands) (Unaudited) | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Revenue | $ | 872 | $ | 1,185 | 2,866 | 4,050 | ||||||||
Cost of revenue (exclusive of depreciation and amortization and casualty loss) | 648 | 841 | 2,244 | 2,800 | ||||||||||
Gross profit | 224 | 344 | 622 | 1,250 | ||||||||||
Operating expenses (gains): | ||||||||||||||
Research and development | 5 | 232 | 16 | 1,634 | ||||||||||
Sales and marketing | 81 | 282 | 241 | 1,161 | ||||||||||
General and administrative | 977 | 1,229 | 3,723 | 4,104 | ||||||||||
Impairment charges | — | 5,169 | 2 | 12,715 | ||||||||||
Casualty loss (gain), net of insurance proceeds | — | — | (400 | ) | 533 | |||||||||
Depreciation and amortization | 86 | 592 | 259 | 1,818 | ||||||||||
Total operating expenses | 1,149 | 7,504 | 3,841 | 21,965 | ||||||||||
Loss from operations | (925 | ) | (7,160 | ) | (3,219 | ) | (20,715 | ) | ||||||
Interest and other (income) expense, net | (30 | ) | (5 | ) | (94 | ) | 1 | |||||||
Loss before income taxes | (895 | ) | (7,155 | ) | (3,125 | ) | (20,716 | ) | ||||||
Income tax (benefit) expense | — | (3 | ) | 38 | 8 | |||||||||
Net loss | $ | (895 | ) | $ | (7,152 | ) | (3,163 | ) | (20,724 | ) | ||||
GAAP to Non-GAAP Reconciliation: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Net loss | $ | (895 | ) | $ | (7,152 | ) | $ | (3,163 | ) | $ | (20,724 | ) | ||||
Depreciation and amortization | 86 | 592 | 259 | 1,818 | ||||||||||||
Interest and other expense (income), net | (30 | ) | (5 | ) | (94 | ) | 1 | |||||||||
Income tax expense (benefit) | — | (3 | ) | 38 | 8 | |||||||||||
Impairment charges | — | 5,169 | 2 | 12,715 | ||||||||||||
Severance | — | — | — | 294 | ||||||||||||
Casualty loss, net of insurance proceeds | — | — | (400 | ) | 533 | |||||||||||
Stock-based expense | 31 | 31 | 442 | 30 | ||||||||||||
Adjusted EBITDA Loss | $ | (808 | ) | $ | (1,368 | ) | $ | (2,916 | ) | $ | (5,325 | ) | ||||
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Contacts
Investor Relations Contact
David Clark
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(213) 683-8863 ext 2205