Oblong, Inc. (Nasdaq: OBLG) (“Oblong” or the “Company”), an
innovator in collaboration solutions, today reported financial
results for the three and nine months ended September 30, 2024, and
provided updates on the Company’s business and strategy.
"As of September 30, 2024, our financial footing remains strong,
with $5.6 million in cash and zero debt. We further boosted
liquidity in October with an additional $231,000 from common stock
warrant exercises and streamlined operations to increase
efficiency, resulting in expected annual savings of $1.2 million.
With this solid financial position, we believe we’re on track to
maintain momentum into mid-2026. In September 2024, we proudly
regained full compliance with Nasdaq's listing standards. Our focus
is now on identifying impactful growth avenues, including mergers
and acquisitions, to fuel a new phase of expansion. We're exploring
a range of strategic possibilities—from potential business
combinations and reverse mergers to a potential sale of certain
assets to further expand liquidity and narrow our operating focus.
Each pathway is being evaluated to maximize sustainable growth and
unlock new value for our stakeholders," said Peter Holst, CEO of
Oblong.
Third Quarter 2024 Financial Results
- As of September 30, 2024, the Company had $5.6 million of cash
and cash equivalents and no debt.
- The Company received net cash proceeds of $0.7 million during
the third quarter of 2024 from the exercise of common
warrants.
- Total revenue was $0.6 million for the third quarter of 2024
versus $0.9 million for the third quarter of 2023.
- Net loss was $1.0 million for the third quarter of 2024
compared to $0.9 million for the third quarter of 2023.
- Adjusted EBITDA (“AEBITDA”) loss was $1.0 million for the third
of 2024 compared to $0.8 million for the third quarter of 2023.
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 amortization, stock-based
compensation and expense, severance, impairment charges, casualty
gain (insurance proceeds), income tax expense, and interest 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
shares, par value, and stated value)
September 30, 2024
December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents
$
5,619
$
5,990
Accounts receivable, net
33
424
Inventory, net
50
239
Prepaid expenses and other current
assets
283
243
Total current assets
5,985
6,896
Operating lease - right of use asset,
net
—
17
Other assets
8
12
Total assets
$
5,993
$
6,925
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
93
211
Accrued expenses and other current
liabilities
1,175
1,038
Current portion of deferred revenue
52
132
Operating lease liabilities
—
17
Total current liabilities
1,320
1,398
Long-term liabilities:
Deferred revenue, net of current
portion
2
26
Total liabilities
1,322
1,424
Commitments and contingencies (see Note
9)
Stockholders’ equity:
Preferred stock Series F, convertible;
$0.0001 par value; $560,884 stated value; 42,000 shares authorized,
545 and 1,930 shares issued and outstanding at September 30, 2024
and December 31, 2023, respectively
—
—
Common stock, $0.0001 par value;
150,000,000 shares authorized; 1,071,545 shares issued and
1,071,356 shares outstanding at September 30, 2024 and 573,644
shares issued and 573,455 outstanding at December 31, 2023
—
—
Treasury Stock, 189 common shares
(181
)
(181
)
Additional paid-in capital
236,242
233,913
Accumulated deficit
(231,390
)
(228,231
)
Total stockholders' equity
4,671
5,501
Total liabilities and stockholders’
equity
5,993
6,925
OBLONG, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
($ in thousands)
(Unaudited)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2024
2023
2024
2023
Revenue
$
578
$
872
$
1,815
$
2,866
Cost of revenue (exclusive of
amortization)
499
648
1,619
2,244
Gross profit
79
224
196
622
Operating expenses:
Research and development
38
5
153
16
Sales and marketing
66
81
177
241
General and administrative
1,047
977
3,140
3,723
Amortization
—
86
—
259
Impairment charges
—
—
—
2
Casualty gain (insurance proceeds)
—
—
—
(400
)
Total operating expenses
1,151
1,149
3,470
3,841
Operating loss
(1,072
)
(925
)
(3,274
)
(3,219
)
Interest income, net
(32
)
(30
)
(124
)
(94
)
Loss before income taxes
(1,040
)
(895
)
(3,150
)
(3,125
)
Income tax expense
—
—
9
38
Net loss
$
(1,040
)
$
(895
)
$
(3,159
)
$
(3,163
)
GAAP to Non-GAAP
Reconciliation:
Three Months Ended
Nine Months Ended
September 30,
September 30,
2024
2023
2024
2023
Net loss
$
(1,040
)
$
(895
)
$
(3,159
)
$
(3,163
)
Amortization
-
86
-
259
Interest income, net
(32
)
(30
)
(124
)
(94
)
Income tax expense
-
-
9
38
Impairment charges
-
-
-
2
Casualty gain (insurance proceeds)
-
-
-
(400
)
Severance
106
-
106
-
Stock-based compensation and expense
-
31
62
473
Adjusted EBITDA loss
$
(966
)
$
(808
)
$
(3,106
)
$
(2,885
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241107186008/en/
Investor Relations Contact David Clark
investors@oblong.com (213) 683-8863 ext. 5
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