PHUN - Phunware Reports Full Year 2023 Financial Results | Benzinga
AUSTIN, Texas, March 12, 2024 (GLOBE NEWSWIRE) -- Phunware, Inc. (NASDAQ:PHUN) ("Phunware" or "the Company"), the leading provider of patented wayfinding and mobile engagement solutions for mobile that enables brands to engage, manage and monetize anyone anywhere, today announced financial results for the year ended December 31, 2023.
"Our company today is dramatically stronger than the one we talked about in November," said Mike Snavely, CEO of Phunware. "With management changes, a reduction in our cost structure and marked improvements to the balance sheet we've moved into executing on our vision. We have significant traction with existing and new accounts and a new vision of how we're serving our markets. We'll share our plans on the earnings call and beyond."
Full Year 2023 Financial Results
- Net revenues from continuing operations for the year totaled $4.8 million
- Impairment of remaining goodwill of $25.8 million
- Lyte Technologies business was classified as a discontinued operation in 2023
- Net loss from continuing operations was $(41.9) million, excluding the goodwill impairment it would have been $(16.1) million.
- Net loss was $(52.8) million
- Net loss from continuing operations per share was $(17.62)
- Net loss from discontinued operations per share was $(4.56)
- 1:50 reverse stock split effectuated February 26, 2024, received retroactive treatment in the 2023 and prior financial statements, which is reflected in the loss per share numbers above
- Non-GAAP Adjusted EBITDA loss was $(15.5) million
Recent Business Highlights and Notable Corporate Developments
- On March 12, 2024, Nasdaq notified Phunware that it has demonstrated compliance with the requirements to remain listed on The Nasdaq Capital Market
- Appointed Jeremy Kidd as Senior Vice President of Sales and Marketing
- Appointed Elliot Han to its Board of Directors
- Announced and executed a Reverse Stock Split
- Expanded Hospitality Portfolio via a Multi-Year Partnership with Escapades Memphrémagog and PAL+
"In late 2023 and into early 2024, we strategically reshaped our operating costs and stabilized our balance sheet to prepare for future growth," said Phunware CFO Troy Reisner. "Our strategic cost-cutting initiatives have significantly reduced our expected cash burn for 2024, and, through equity raises in early 2024, we have significantly bolstered our balance sheet and eliminated outstanding debt. We are confident that we have the tools for supporting and investing in the business and future growth initiatives."
Conference Call Information
Phunware management will host a conference call today (March 12, 2024) at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss its financial results for the year ended December 31, 2023.
Interested parties may access the conference call by dialing 888-506-0062 in the United States, or 973-528-0011 from international locations with access code: 912114. The conference call will be broadcast live and available for replay here and via the investor relations section of the Company's website at investors.phunware.com.
Safe Harbor Clause and Forward-Looking Statements
This press release includes forward-looking statements. All statements other than statements of historical facts contained in this press release, including statements regarding our future results of operations and financial position, business strategy and plans, and our objectives for future operations, are forward-looking statements. The words "anticipate," "believe," "continue," "could," "estimate," "expect," "expose," "intend," "may," "might," "opportunity," "plan," "possible," "potential," "predict," "project," "should," "will," "would" and similar expressions that convey uncertainty of future events or outcomes are intended to identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.
The forward-looking statements contained in this press release are based on our current expectations and beliefs concerning future developments and their potential effects on us. Future developments affecting us may not be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) and other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described under the heading "Risk Factors" in our filings with the Securities and Exchange Commission (the "SEC"), including our reports on Forms 10-K, 10-Q, 8-K and other filings that we make with the SEC from time to time. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. These risks and others described under "Risk Factors" in our SEC filings may not be exhaustive.
By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. We caution you that forward-looking statements are not guarantees of future performance and that our actual results of operations, financial condition and liquidity, and developments in the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements contained in this press release. In addition, even if our results or operations, financial condition and liquidity, and developments in the industry in which we operate are consistent with the forward-looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods.
Disclosure Information
Phunware uses and intends to continue to use its Investor Relations website as a means of disclosing material nonpublic information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor the Company's Investor Relations website, in addition to following the Company's press releases, SEC filings, public conference calls, presentations and webcasts.
About Phunware, Inc.
Phunware's mission is to foster an ecosystem where digital interactions enable a more engaged, interactive, and valuable experience for all stakeholders. We are redefining connectivity by ensuring the widespread adoption of our technologies amongst brands, mobile consumers, partners, digital asset holders, and market participants.
Phunware PR & Media Inquiries:
Email: press@phunware.com
Phone: (512) 693-4199
Phunware Investor Relations:
Matt Glover and John Yi
Gateway Investor Relations
Email: PHUN@gatewayir.com
Phone: (949) 574-3860
| Consolidated Balance Sheets (In thousands, except share and per share information) |
| December 31, 2023 |
| December 31, 2022 |
| Assets |
| Current assets: |
| Cash |
| $ |
| 3,934 |
| $ |
| 1,955 |
| Accounts receivable, net of allowance for doubtful accounts of $86 and $10 at December 31, 2023 and 2022, respectively |
| 550 |
| 835 |
| Digital assets |
| 75 |
| 10,137 |
| Prepaid expenses and other current assets |
| 374 |
| 608 |
| Current assets of discontinued operation |
| 28 |
| 3,328 |
| Total current assets |
| 4,961 |
| 16,863 |
| Property and equipment, net |
| 40 |
| 192 |
| Goodwill |
| — |
| 25,766 |
| Right-of-use asset |
| 1,451 |
| 2,301 |
| Other assets |
| 276 |
| 325 |
| Non-current assets of discontinued operation |
| — |
| 9,388 |
| Total assets |
| 6,728 |
| 54,835 |
| Liabilities and stockholders' equity |
| Current liabilities: |
| Accounts payable |
| $ |
| 7,836 |
| $ |
| 7,278 |
| Accrued expenses |
| 437 |
| 2,741 |
| Lease liability |
| 629 |
| 696 |
| Deferred revenue |
| 1,258 |
| 1,531 |
| PhunCoin deposits |
| 1,202 |
| 1,202 |
| Current maturities of long-term debt, net |
| 4,936 |
| 9,667 |
| Warrant liability |
| — |
| 256 |
| Current liabilities of discontinued operation |
| 205 |
| 2,206 |
| Total current liabilities |
| 16,503 |
| 25,577 |
| Deferred tax liability |
| — |
| — |
| Deferred revenue |
| 651 |
| 1,274 |
| Lease liability |
| 1,031 |
| 1,928 |
| Non-current liabilities of discontinued operation |
| — |
| 1,175 |
| Total liabilities |
| 18,185 |
| 29,954 |
| Commitments and contingencies |
| Stockholders' equity |
| Common stock, $0.0001 par value; 1,000,000,000 shares authorized at December 31, 2023 and 2022; 3,851,448 and 2,063,074 shares issued and outstanding as of December 31, 2023 and 2022, respectively |
| — |
| — |
| Treasury stock at cost; 10,130 and 0 shares at December 31, 2023 and 2022, respectively |
| (502 |
| ) |
| — |
| Additional paid-in capital |
| 292,467 |
| 275,572 |
| Accumulated other comprehensive loss |
| (418 |
| ) |
| (472 |
| ) |
| Accumulated deficit |
| (303,004 |
| ) |
| (250,219 |
| ) |
| Total stockholders' equity |
| (11,457 |
| ) |
| 24,881 |
| Total liabilities and stockholders' equity |
| 6,728 |
| 54,835 |
| Consolidated Statements of Operations and Comprehensive Loss (In thousands, except share and per share information) |
| Year Ended December 31, |
| 2023 |
| 2022 |
| Net revenues |
| $ |
| 4,832 |
| $ |
| 6,521 |
| Cost of revenues |