LAS VEGAS, Nov. 12, 2019 /PRNewswire/ -- Remark Holdings, Inc. (NASDAQ: MARK), a diversified global technology company with leading artificial intelligence (AI) solutions and digital media properties, reported its financial results for the third quarter ended September 30, 2019.
Management Commentary
"Our third quarter represented our largest win to date with China Mobile selecting our AI technology to transform all their 17,800 corporate stores into 'smart' retail outlets," said Kai-Shing Tao, Chairman and Chief Executive Officer of Remark Holdings. "This win validates our technology as it proved we can beat larger and entrenched competitors. The China Mobile project also adds to our momentum implementing our leading AI technology not only throughout China, but in other parts of Asia and the United States," Mr. Tao added. "Additionally, we are close to finalizing the monetization of our investment in Sharecare, which will immediately eliminate our debt and provide us with the growth working capital necessary to propel our AI business forward."
Recent Highlights
Three Months Ended September 30, 2019 compared to Three Months Ended September 30, 2018
Conference Call Information
Mr. Tao will hold a conference call today, November 12, 2019 at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss these financial results. A question and answer session will follow management's presentation.
Toll-Free Number: 800.263.0877
International Number: 646.828.8143
Conference ID: 6600270
Please call the conference telephone number 10 minutes prior to the start time. An operator will register your name and organization. The conference call will be broadcast simultaneously and available for replay via the investor section of the Company's website here.
A replay of the call will be available after 7:30 pm Eastern time on the same day through November 17, 2019.
Toll-Free Replay Number: 844.512.2921
International Replay Number: 412.317.6671
Replay ID: 6600270
About Remark Holdings, Inc.
Remark Holdings, Inc. (NASDAQ: MARK) delivers an integrated suite of AI solutions that enable businesses and organizations to solve problems, reduce risk and deliver positive outcomes. The company's easy-to-install AI products are being rolled out in a wide range of applications within the retail, financial, public safety and workplace arenas. The company also owns and operates digital media properties that deliver relevant, dynamic content and ecommerce solutions. The company is headquartered in Las Vegas, Nevada, with additional operations in Los Angeles, California and in Beijing, Shanghai, Chengdu and Hangzhou, China. For more information, please visit the company's website at www.remarkholdings.com.
Forward-Looking Statements
This press release may contain forward-looking statements, including information relating to future events, future financial performance, strategies, expectations, competitive environment and regulation. Words such as "may," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," and similar expressions, as well as statements in future tense, identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors, including those discussed in Part I, Item 1A. Risk Factors in Remark Holdings' Annual Report on Form 10-K and Remark Holdings' other filings with the SEC. Any forward-looking statements reflect Remark Holdings' current views with respect to future events, are based on assumptions and are subject to risks and uncertainties. Given such uncertainties, you should not place undue reliance on any forward-looking statements, which represent Remark Holdings' estimates and assumptions only as of the date hereof. Except as required by law, Remark Holdings undertakes no obligation to update or revise publicly any forward-looking statements after the date hereof, whether as a result of new information, future events or otherwise.
Company Contact:
E. Brian Harvey
Remark Holdings, Inc.
[email protected]
702-701-9514
REMARK HOLDINGS, INC. AND SUBSIDIARIES | |||||
Condensed Consolidated Balance Sheets | |||||
(dollars in thousands, except share and per share amounts) | |||||
September 30, | December 31, | ||||
(Unaudited) | |||||
Assets | |||||
Cash and cash equivalents | $ | 656 | $ | 1,410 | |
Trade accounts receivable, net | 3,792 | 5,762 | |||
Prepaid expense and other current assets | 6,233 | 7,907 | |||
Notes receivable, current | ? | 100 | |||
Assets of disposal group, current | ? | 28,966 | |||
Total current assets | 10,681 | 44,145 | |||
Property and equipment, net | 1,591 | 2,075 | |||
Operating lease assets | 5,294 | ? | |||
Investment in unconsolidated affiliates | 1,920 | 2,005 | |||
Intangibles, net | 752 | 1,010 | |||
Other long-term assets | 1,245 | 450 | |||
Assets of disposal group, long-term | ? | 44,123 | |||
Total assets | $ | 21,483 | $ | 93,808 | |
Liabilities and Stockholders' Deficit | |||||
Accounts payable | $ | 7,585 | $ | 5,675 | |
Accrued expense and other current liabilities | 12,861 | 16,812 | |||
Contract liability | 312 | 132 | |||
Note payable | 3,000 | 3,000 | |||
Loans payable, current, net of unamortized discount and debt issuance cost | 11,632 | 35,314 | |||
Liabilities of disposal group, current | ? | 41,648 | |||
Total current liabilities | 35,390 | 102,581 | |||
Operating lease liabilities, long-term | 5,436 | ? | |||
Warrant liability | 881 | 1,383 | |||
Other liabilities | ? | 2,934 | |||
Liabilities of disposal group, long-term | ? | 34 | |||
Total liabilities | 41,707 | 106,932 | |||
Preferred stock, $0.001 par value; 1,000,000 shares authorized; none issued | ? | ? | |||
Common stock, $0.001 par value; 100,000,000 shares authorized; 48,430,159 and 39,053,312 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively | 48 | 39 | |||
Additional paid-in-capital | 317,732 | 308,018 | |||
Accumulated other comprehensive income | (224) | 32 | |||
Accumulated deficit | (337,780) | (321,213) | |||
Total stockholders' deficit | (20,224) | (13,124) | |||
Total liabilities and stockholders' deficit | $ | 21,483 | $ | 93,808 |
REMARK HOLDINGS, INC. AND SUBSIDIARIES | |||||||||||
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss | |||||||||||
(dollars in thousands, except per share amounts) | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||
Revenue | $ | 686 | $ | 1,755 | $ | 4,760 | $ | 7,468 | |||
Cost and expense | |||||||||||
Cost of revenue (excluding depreciation and amortization) | 189 | 1,231 | 3,323 | 5,778 | |||||||
Sales and marketing | 736 | 1,108 | 2,282 | 3,165 | |||||||
Technology and development | 752 | 1,459 | 2,910 | 3,550 | |||||||
General and administrative | 3,052 | 3,760 | 8,483 | 25,410 | |||||||
Depreciation and amortization | 229 | 520 | 814 | 1,657 | |||||||
Other operating expense | ? | 47 | 6 | 93 | |||||||
Total cost and expense | 4,958 | 8,125 | 17,818 | 39,653 | |||||||
Operating loss | (4,272) | (6,370) | (13,058) | (32,185) | |||||||
Other income (expense) | |||||||||||
Interest expense | (457) | (345) | (1,397) | (1,017) | |||||||
Other income (expense), net | (24) | ? | 23 | 44 | |||||||
Change in fair value of warrant liability | (160) | 3,525 | 502 | 22,190 | |||||||
Other gain (loss), net | (28) | (16) | (27) | 507 | |||||||
Total other income (expense), net | (669) | 3,164 | (899) | 21,724 | |||||||
Loss from continuing operations before income taxes | (4,941) | (3,206) | (13,957) | (10,461) | |||||||
Benefit from income taxes | ? | 442 | ? | 1,437 | |||||||
Loss from continuing operations | $ | (4,941) | $ | (2,764) | $ | (13,957) | $ | (9,024) | |||
Loss from discontinued operations, net of tax | ? | (1,001) | (2,610) | (5,415) | |||||||
Net loss | $ | (4,941) | $ | (3,765) | $ | (16,567) | $ | (14,439) | |||
Other comprehensive income (loss) | |||||||||||
Foreign currency translation adjustments | (289) | (82) | (256) | (67) | |||||||
Comprehensive loss | $ | (5,230) | $ | (3,847) | $ | (16,823) | $ | (14,506) | |||
Weighted-average shares outstanding, basic and diluted | 46,282 | 35,463 | 43,085 | 33,608 | |||||||
Net loss per share, basic and diluted | |||||||||||
Continuing operations | $ | (0.11) | $ | (0.08) | $ | (0.32) | $ | (0.27) | |||
Discontinued operations | ? | (0.03) | (0.06) | (0.16) | |||||||
Consolidated | $ | (0.11) | $ | (0.11) | $ | (0.38) | $ | (0.43) | |||
SOURCE Remark Holdings, Inc.
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