LAS VEGAS, Aug. 14, 2020 /PRNewswire/ -- Remark Holdings, Inc. (NASDAQ: MARK), a diversified global technology company with leading artificial intelligence ("AI") solutions and digital media properties, today announced financial results for its fiscal second quarter ended June 30, 2020.
Management Commentary
"The second quarter of 2020 was highlighted by the initial rollout of our AI-powered thermal imaging solutions for the U.S. market that generated $1.1 million in revenue during its introduction. With China now emerging from post-COVID-19 lockdowns, we anticipate growth on both sides of the Pacific moving forward," noted Kai-Shing Tao, Chairman and Chief Executive Officer of Remark Holdings. "During the quarter we also successfully recapitalized our balance sheet by paying off over $13 million of debt and liabilities, while also ending the quarter with over $10 million of cash. These funds will help fuel our growth domestically and abroad as we grow our team, services and solutions."
Second Quarter 2020 Business Development Highlights
Second Quarter 2020 Financial Results
At June 30, 2020, the cash and cash equivalents balance was $10.2 million, compared to a cash position of $0.3 million at December 31, 2019. Cash increased primarily due to $32.1 million in proceeds from common stock issuances, which increase was partially offset by use of the proceeds to make debt principal repayments of $13.3 million, to make other liability payments and to generally operate the business.
Subsequent Event
"Our U.S. thermal business is off to a great start. We are seeing the momentum started in our second quarter carrying into our third quarter, and initial orders are leading to many new and large opportunities in various industries. Our ownership in Sharecare continues to grow more valuable each quarter, especially in light of Teladoc Health's recent acquisition of Livongo Health for $18.5 billion, which validates Sharecare's strategy of creating a platform versus a point solution. Finally, we expect our businesses to grow as the world's economies recover and reopen. Our AI-powered solutions are proven, tested and live," concluded Mr. Tao.
Conference Call Information
Management will hold a conference call this morning at 9:00 a.m. Eastern Time (6:00 a.m. Pacific Time) to discuss these financial results and provide an update on recent business developments. A question and answer session will follow management's presentation.
Toll-Free Number: 800.289.0438
International Number: 323.794.2423
Conference ID: 8269351
Participant Link: http://public.viavid.com/index.php?id=141180.
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 12:00 p.m. Eastern time on the same day through August 19, 2020.
Toll-Free Replay Number: 844.512.2921
International Replay Number: 412.317.6671
Replay ID: 8269351
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 http://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
Director of Capital Markets and Investor Relations
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) | |||||||
June 30, 2020 | December 31, | ||||||
(Unaudited) | |||||||
Assets | |||||||
Cash and cash equivalents | $ | 10,233 | $ | 272 | |||
Trade accounts receivable, net | 2,235 | 1,964 | |||||
Receivable from related parties | 531 | ? | |||||
Prepaid expense and other current assets | 5,803 | 4,623 | |||||
Total current assets | 18,802 | 6,859 | |||||
Property and equipment, net | 156 | 341 | |||||
Operating lease assets | 470 | 4,359 | |||||
Investment in unconsolidated affiliates | 1,922 | 1,935 | |||||
Intangibles, net | 472 | 509 | |||||
Other long-term assets | 1,254 | 824 | |||||
Total assets | $ | 23,076 | $ | 14,827 | |||
Liabilities and Stockholders' Deficit | |||||||
Accounts payable | $ | 7,709 | $ | 8,126 | |||
Accrued expense and other current liabilities | 13,295 | 14,326 | |||||
Contract liability | 566 | 313 | |||||
Note payable | 2,000 | 3,000 | |||||
Loans payable, current, net of unamortized discount and debt issuance cost | ? | 12,025 | |||||
Total current liabilities | 23,570 | 37,790 | |||||
Operating lease liabilities, long-term | 202 | 4,650 | |||||
Warrant liability | 6,318 | 115 | |||||
Total liabilities | 30,515 | 42,555 | |||||
Commitments and contingencies | |||||||
Preferred stock, $0.001 par value; 1,000,000 shares authorized; none issued | ? | ? | |||||
Common stock, $0.001 par value; 100,000,000 shares authorized; 99,408,916 and 51,055,159 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively | 99 | 51 | |||||
Additional paid-in-capital | 351,417 | 319,275 | |||||
Accumulated other comprehensive income | 111 | (227) | |||||
Accumulated deficit | (359,066) | (346,827) | |||||
Total stockholders' deficit | (7,439) | (27,728) | |||||
Total liabilities and stockholders' deficit | $ | 23,076 | $ | 14,827 |
REMARK HOLDINGS, INC. AND SUBSIDIARIES | |||||||||||||||
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss | |||||||||||||||
(dollars in thousands, except per share amounts) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Revenue | $ | 2,299 | $ | 2,865 | $ | 2,730 | $ | 4,074 | |||||||
Cost and expense | |||||||||||||||
Cost of revenue (excluding depreciation and amortization) | 1,210 | 1,541 | 1,231 | 3,134 | |||||||||||
Sales and marketing | 486 | 687 | 902 | 1,546 | |||||||||||
Technology and development | 1,477 | 854 | 2,125 | 2,158 | |||||||||||
General and administrative | 1,898 | 2,454 | 4,638 | 5,431 | |||||||||||
Depreciation and amortization | 66 | 260 | 156 | 585 | |||||||||||
Other operating expense | ? | ? | ? | 6 | |||||||||||
Total cost and expense | 5,137 | 5,796 | 9,052 | 12,860 | |||||||||||
Operating loss | (2,838) | (2,931) | (6,322) | (8,786) | |||||||||||
Other income (expense) | |||||||||||||||
Interest expense | (775) | (553) | (1,236) | (940) | |||||||||||
Other income (expense), net | 57 | 92 | 57 | 47 | |||||||||||
Change in fair value of warrant liability | (6,260) | 2,078 | (6,203) | 662 | |||||||||||
Gain on lease termination | ? | ? | 1,538 | ? | |||||||||||
Other loss, net | ? | 27 | (73) | 1 | |||||||||||
Total other income (expense), net | (6,978) | 1,644 | (5,917) | (230) | |||||||||||
Loss from continuing operations before income taxes | (9,816) | (1,287) | (12,239) | (9,016) | |||||||||||
Benefit from income taxes | ? | ? | ? | ? | |||||||||||
Loss from continuing operations | $ | (9,816) | $ | (1,287) | $ | (12,239) | $ | (9,016) | |||||||
Loss from discontinued operations, net of tax | ? | (1,487) | ? | (2,610) | |||||||||||
Net loss | $ | (9,816) | $ | (2,774) | $ | (12,239) | $ | (11,626) | |||||||
Other comprehensive income (loss) | |||||||||||||||
Foreign currency translation adjustments | 156 | 127 | 338 | 33 | |||||||||||
Comprehensive loss | $ | (9,660) | $ | (2,647) | $ | (11,901) | $ | (11,593) | |||||||
Weighted-average shares outstanding, basic and diluted | 89,264 | 43,335 | 71,527 | 39,994 | |||||||||||
Net loss per share, basic and diluted | |||||||||||||||
Continuing operations | $ | (0.11) | $ | (0.03) | $ | (0.17) | $ | (0.23) | |||||||
Discontinued operations | ? | (0.03) | ? | (0.07) | |||||||||||
Consolidated | $ | (0.11) | $ | (0.06) | $ | (0.17) | $ | (0.30) | |||||||
SOURCE Remark Holdings, Inc.
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