8-K
SMITH MICRO SOFTWARE, INC. (SMSI)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 5, 2020
Smith Micro Software, Inc.
(Exact name of Registrant as Specified in Its Charter)
| Delaware | 001-35525 | 33-0029027 |
|---|---|---|
| (State or Other Jurisdiction<br><br><br>of Incorporation) | (Commission<br><br><br>File Number) | (IRS Employer<br><br><br>Identification No.) |
| 5800 Corporate Drive<br><br><br>Pittsburgh, PA | 15237 | |
| --- | --- | |
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant’s Telephone Number, Including Area Code: (412) 837-5300
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br><br><br>Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, par value $0.001 per share | SMSI | NASDAQ |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02.Results of Operations and Financial Condition
On March 5, 2020, Smith Micro Software, Inc. issued a press release announcing its financial results for the three and twelve months ended December 31, 2019. A copy of the press release is hereby furnished to the Securities and Exchange Commission as Exhibit 99.1 and incorporated by reference herein.
In accordance with General Instruction B.2 of Form 8-K, the information in this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.
Item 9.01.Financial Statements and Exhibits.
| (d) | Exhibits |
|---|---|
| Exhibit | Description |
| --- | --- |
| 99.1 | Press Release issued on March 5, 2020 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| Smith Micro Software, Inc. | ||
|---|---|---|
| Date: March 5, 2020 | By: | /s/ Timothy C. Huffmyer |
| Timothy C. Huffmyer | ||
| Vice President and Chief Financial Officer |
smsi-ex991_6.htm
EXHIBIT 99.1
IR INQUIRIES:
Charles Messman
Investor Relations
949-362-5800
IR@smithmicro.com
Smith Micro Reports Fourth Quarter and Fiscal Year 2019 Financial Results
Total Annual Revenue Grew to $43.3 million, a 65% Increase over Fiscal 2018
Total Fourth Quarter Revenue Grew to $12.3 million, a 67% Increase over Fourth Quarter 2018
PITTSBURGH, PA, March 5, 2020 – Smith Micro Software, Inc. (NASDAQ: SMSI) (“Smith Micro” or the “Company”) today reported financial results for its fourth quarter and fiscal year ended December 31, 2019.
“The Company’s fiscal 2019 was an extremely positive year and exciting time for us, as we delivered strong revenue growth, profits, and cash flow from operations throughout the year,” said William W. Smith, Jr., President and CEO of Smith Micro. “We begin 2020 with a strong tailwind, a more diversified customer base, and overall enhanced product portfolio for our flagship SafePath platform, as we look to expand our leadership in the value-added services market within the mobile operators space.”
Fourth Quarter 2019 Financial Results
Smith Micro reported revenue of $12.3 million for the fourth quarter ended December 31, 2019, compared to $7.4 million reported in the fourth quarter ended December 31, 2018.
Fourth quarter 2019 gross profit was $11.3 million compared to $6.4 million reported in the fourth quarter of 2018.
Gross profit as a percentage of revenue was 92 percent for the fourth quarter of 2019 compared to 87 percent for the fourth quarter of 2018.
Generally accepted accounting principles in the United States (“GAAP”) net income available to common stockholders for the fourth quarter of 2019 was $3.7 million, or $0.09 diluted earnings per share,
| Smith Micro Software Fourth Quarter and Fiscal Year 2019 Financial Results | Page 2 |
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compared to a GAAP net income available to common stockholders of $2.8 million, or $0.10 diluted earnings per share, for the fourth quarter of 2018.
Non-GAAP net income (which excludes stock-based compensation, amortization of intangibles, debt issuance and discount costs, fair value adjustments, loss on debt extinguishment, acquisitions costs, preferred stock dividends, and a normalized tax expense) for the fourth quarter of 2019 was $3.3 million, or $0.08 diluted earnings per share, compared to a non-GAAP net income of $939 thousand, or $0.03 diluted earnings per share, for the fourth quarter of 2018.
Fiscal Year 2019 Financial Results
Smith Micro reported revenue of $43.3 million for the year ended December 31, 2019, compared to $26.3 million reported for the year ended December 31, 2018.
Gross profit for the year ended December 31, 2019 was $39.4 million compared to $22.0 million reported for the same period in 2018.
Gross profit as a percentage of revenue was 91 percent for the year ended December 31, 2019 compared to 84 percent for the year ended December 31, 2018.
GAAP net income available to common stockholders for the year ended December 31, 2019 was $10.6 million, or $0.29 diluted earnings per share, compared to a GAAP net loss available to common stockholders of $3.1 million, or $0.14 diluted loss per share, for the same period in 2018.
Non-GAAP net income (which excludes stock-based compensation, amortization of intangibles, debt issuance and discount costs, fair value adjustments, loss on debt extinguishment, transaction gains, acquisition costs, preferred stock dividends, and a normalized tax expense) for the year ended December 31, 2019 was $9.8 million, or $0.26 diluted earnings per share, compared to a non-GAAP net loss of $67 thousand, or $0.00 diluted loss per share, for the year ended December 31, 2018.
Total cash and cash equivalents at December 31, 2019 were $28.3 million. Cash flow for the quarter is primarily a result of free cash flow from operations of $4.3 million.
To supplement our financial information presented in accordance with GAAP, the Company considers and has included in this press release certain non-GAAP financial measures, including a non-GAAP reconciliation of gross profit, income (loss) before taxes, net income (loss) available to common stockholders, and earnings (loss) per share in the presentation of financial results in this press release. Management believes this non-GAAP presentation may be more meaningful in analyzing our income
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generation and has therefore excluded the following items from GAAP earnings calculations: stock-based compensation, amortization of intangibles, debt issuance and discount costs, fair value adjustments, loss on debt extinguishment, transaction gains, acquisition costs, and preferred stock dividends. Additionally, since we are in a cumulative loss position, a non-GAAP income tax expense (benefit) was computed using a 24 percent tax rate for 2019 and 2018 using the Company’s normalized combined U.S. federal, state, and foreign statutory tax rates less various tax adjustments. This presentation may be considered more indicative of our ongoing operational performance. The table below presents the differences between non-GAAP net income (loss) and net income (loss) on an absolute and per-share basis. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and the non-financial measures as reported by Smith Micro may not be comparable to similarly titled amounts reported by other companies.
Investor Conference Call
Smith Micro will hold an investor conference call today, March 5, 2020 at 4:30 p.m. EDT, to discuss the Company’s fourth quarter and fiscal year 2019 financial results. To access the call, dial 1-844-701-1164; international participants can call 1-412-317-5492. A passcode is not required to join the call; ask the operator to be placed into the Smith Micro conference. Participants are asked to call the assigned number approximately 10 minutes before the conference call begins. In addition, the conference call will be available on the Smith Micro website in the Investor Relations section.
About Smith Micro Software, Inc.
Smith Micro develops software to simplify and enhance the mobile experience, providing solutions to some of the leading wireless service providers and cable MSOs around the world. From enabling the family digital lifestyle to providing powerful voice messaging capabilities, our solutions enrich today’s connected lifestyles while creating new opportunities to engage consumers via smartphones and consumer IoT devices. The Smith Micro portfolio also includes a wide range of products for creating, sharing and monetizing rich content, such as visual voice messaging, optimizing retail content display and performing analytics on any product set. For more information, visit www.smithmicro.com.
Smith Micro and the Smith Micro logo are registered trademarks or trademarks of Smith Micro Software, Inc. All other trademarks and product names are the property of their respective owners.
| Smith Micro Software Fourth Quarter and Fiscal Year 2019 Financial Results | Page 4 |
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Forward-Looking Statements
Certain statements in this press release are, and certain statements on the related conference call may be, forward-looking statements regarding future events or results, including statements related to our financial prospects and other projections of our outlook or performance and our future business plans, and statements using such words as “expect,” “anticipate,” “believe,” “plan,” “intend,” “could,” “will” and other similar expressions. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Among the important factors that could cause or contribute to such differences are customer concentration, given that the majority of our sales depend on a few large customer relationships, changes in demand for our products from our customers and their end-users, changes in requirements for our products imposed by our customers or by the fourth party providers of software and/or platforms that we use, our ability to effectively integrate, market and sell acquired product lines, new and changing technologies, customer acceptance and timing of deployment of those technologies, and our ability to compete effectively with other software and technology companies. These and other factors discussed in our filings with the Securities and Exchange Commission, including our filings on Forms 10-K and 10-Q, could cause actual results to differ materially from those expressed or implied in any forward-looking statements. The forward-looking statements contained in this release are made on the basis of the views and assumptions of management, and we do not undertake any obligation to update these statements to reflect events or circumstances occurring after the date of this release.
| Smith Micro Software Fourth Quarter and Fiscal Year 2019 Financial Results | Page 5 | ||||||||||||||||||||||||||
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| Smith Micro Software, Inc. | |||||||||||||||||||||||||||
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| Reconciliation of GAAP to Non-GAAP Results | |||||||||||||||||||||||||||
| (in thousands, except per share data) - unaudited | |||||||||||||||||||||||||||
| GAAP | Stock<br><br><br>Compensation | Intangibles<br><br><br>Amortization | Note<br><br><br>Issue/<br><br><br>Discount | Fair Value Adjustments | Gain on Sale of Software Product | Loss on Debt Extinguishment | Acquisition Costs | Preferred Stock Dividends | Taxes | Non-<br><br><br>GAAP | |||||||||||||||||
| Three Months Ended 12/31/19 | |||||||||||||||||||||||||||
| Gross profit | $ | 11,253 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 11,253 | |||||
| Income before provision for<br><br><br>income taxes | 3,743 | 354 | 227 | - | - | - | - | 74 | - | - | 4,398 | ||||||||||||||||
| Net income available to<br><br><br>common stockholders | 3,671 | 354 | 227 | - | - | - | - | 74 | - | (984 | ) | 3,342 | |||||||||||||||
| Earnings per share: basic | 0.10 | 0.01 | 0.01 | - | - | - | - | 0.00 | - | (0.03 | ) | 0.09 | |||||||||||||||
| Earnings per share: diluted | 0.09 | 0.01 | 0.01 | - | - | - | - | 0.00 | - | (0.02 | ) | 0.08 | |||||||||||||||
| Three Months Ended 12/31/18 | |||||||||||||||||||||||||||
| Gross profit | $ | 6,424 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 6,424 | |||||
| Income before provision for<br><br><br>income taxes | 2,783 | 261 | 60 | 42 | (2,314 | ) | - | 203 | 201 | - | - | 1,236 | |||||||||||||||
| Net income available to common<br><br><br>stockholders | 2,767 | 261 | 60 | 42 | (2,314 | ) | - | 203 | 201 | 34 | (315 | ) | 939 | ||||||||||||||
| Earnings per share: basic | 0.10 | 0.01 | 0.00 | 0.00 | (0.09 | ) | - | 0.01 | 0.01 | 0.00 | (0.01 | ) | 0.03 | ||||||||||||||
| Earnings per share: diluted | 0.10 | 0.01 | 0.00 | 0.00 | (0.08 | ) | - | 0.01 | 0.01 | 0.00 | (0.01 | ) | 0.03 | ||||||||||||||
| Year Ended 12/31/19 | |||||||||||||||||||||||||||
| Gross profit | $ | 39,419 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 39,419 | |||||
| Income before provision for<br><br><br>income taxes | 10,802 | 1,494 | 932 | - | - | (483 | ) | - | 152 | - | - | 12,897 | |||||||||||||||
| Net income available to common<br><br><br>stockholders | 10,603 | 1,494 | 932 | - | - | (483 | ) | - | 152 | 119 | (3,015 | ) | 9,802 | ||||||||||||||
| Earnings per share: basic | 0.31 | 0.04 | 0.03 | - | - | (0.01 | ) | - | 0.00 | 0.00 | (0.09 | ) | 0.28 | ||||||||||||||
| Earnings per share: diluted | 0.29 | 0.04 | 0.03 | - | - | (0.00 | ) | - | 0.00 | 0.00 | (0.08 | ) | 0.26 | ||||||||||||||
| Year Ended 12/31/18 | |||||||||||||||||||||||||||
| Gross profit | $ | 21,952 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 21,952 | |||||
| Loss before provision for<br><br><br>income taxes | (2,727 | ) | 935 | 249 | 239 | 812 | - | 203 | 201 | - | - | (88 | ) | ||||||||||||||
| Net loss available to common<br><br><br>stockholders | (3,144 | ) | 935 | 249 | 239 | 812 | - | 203 | 201 | 404 | 34 | (67 | ) | ||||||||||||||
| Loss per share: basic and<br><br><br>diluted | (0.14 | ) | 0.04 | 0.01 | 0.01 | 0.04 | - | 0.01 | 0.01 | 0.02 | 0.00 | (0.00 | ) | ||||||||||||||
| Note: Earnings (loss) per share: basic and diluted - may be impacted by rounding to allow rows to calculate. | |||||||||||||||||||||||||||
| Smith Micro Software Fourth Quarter and Fiscal Year 2019 Financial Results | Page 6 | ||||||||||||||||||||||||||
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| Smith Micro Software, Inc. | |||||||||||||||||||||||||||
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| Consolidated Statements of Operations | |||||||||||||||||||||||||||
| (in thousands, except per share data) | |||||||||||||||||||||||||||
| unaudited | audited | ||||||||||||||||||||||||||
| For the Three Months | For the Year | ||||||||||||||||||||||||||
| Ended December 31, | Ended December 31, | ||||||||||||||||||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||
| Revenues | $ | 12,278 | $ | 7,352 | $ | 43,346 | $ | 26,285 | |||||||||||||||||||
| Cost of revenues | 1,025 | 928 | 3,927 | 4,333 | |||||||||||||||||||||||
| Gross profit | 11,253 | 6,424 | 39,419 | 21,952 | |||||||||||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||||
| Selling and marketing | 1,988 | 1,296 | 7,517 | 5,784 | |||||||||||||||||||||||
| Research and development | 3,194 | 2,103 | 11,682 | 8,602 | |||||||||||||||||||||||
| General and administrative | 2,400 | 2,308 | 9,921 | 8,607 | |||||||||||||||||||||||
| Restructuring expense | 40 | 38 | 194 | 173 | |||||||||||||||||||||||
| Total operating expenses | 7,622 | 5,745 | 29,314 | 23,166 | |||||||||||||||||||||||
| Operating income (loss) | 3,631 | 679 | 10,105 | (1,214 | ) | ||||||||||||||||||||||
| Non-operating income (expense): | |||||||||||||||||||||||||||
| Interest income (expense), net | 111 | (29 | ) | 228 | (472 | ) | |||||||||||||||||||||
| Change in fair value of warrant liability | — | 2,314 | — | (812 | ) | ||||||||||||||||||||||
| Gain on sale of software product | — | — | 483 | — | |||||||||||||||||||||||
| Loss on debt extinguishment | — | (203 | ) | — | (203 | ) | |||||||||||||||||||||
| Other income (expense), net | 1 | 22 | (14 | ) | (26 | ) | |||||||||||||||||||||
| Income (loss) before provision for income taxes | 3,743 | 2,783 | 10,802 | (2,727 | ) | ||||||||||||||||||||||
| Income tax expense (benefit) | 72 | (18 | ) | 80 | 13 | ||||||||||||||||||||||
| Net income (loss) | 3,671 | 2,801 | 10,722 | (2,740 | ) | ||||||||||||||||||||||
| Less preferred stock dividends | — | (34 | ) | (119 | ) | (404 | ) | ||||||||||||||||||||
| Net income (loss) available to common stockholders | $ | 3,671 | $ | 2,767 | $ | 10,603 | $ | (3,144 | ) | ||||||||||||||||||
| Earnings (loss) per share: | |||||||||||||||||||||||||||
| Basic | $ | 0.10 | $ | 0.10 | $ | 0.31 | $ | (0.14 | ) | ||||||||||||||||||
| Diluted | $ | 0.09 | $ | 0.10 | $ | 0.29 | $ | (0.14 | ) | ||||||||||||||||||
| Weighted average shares outstanding: | |||||||||||||||||||||||||||
| Basic | 38,501 | 26,925 | 34,513 | 22,322 | |||||||||||||||||||||||
| Diluted | 41,767 | 27,395 | 36,991 | 22,322 | |||||||||||||||||||||||
| Smith Micro Software Fourth Quarter and Fiscal Year 2019 Financial Results | Page 7 | ||||||||||||||||||||||||||
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| Smith Micro Software, Inc. | |||||||||||||||||||||||||||
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| Consolidated Balance Sheets | |||||||||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||||||
| December 31, | December 31, | ||||||||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||||
| Current Assets: | |||||||||||||||||||||||||||
| Cash & cash equivalents | $ | 28,268 | $ | 12,159 | |||||||||||||||||||||||
| Accounts receivable, net | 10,894 | 7,130 | |||||||||||||||||||||||||
| Prepaid and other assets | 802 | 795 | |||||||||||||||||||||||||
| Total current assets | 39,964 | 20,084 | |||||||||||||||||||||||||
| Equipment & improvements, net | 2,109 | 865 | |||||||||||||||||||||||||
| Right-of-use assets | 6,464 | — | |||||||||||||||||||||||||
| Deferred tax asset, net | 94 | 191 | |||||||||||||||||||||||||
| Other assets | 234 | 140 | |||||||||||||||||||||||||
| Intangible assets, net | 4,535 | 238 | |||||||||||||||||||||||||
| Goodwill | 7,797 | 3,685 | |||||||||||||||||||||||||
| TOTAL ASSETS | $ | 61,197 | $ | 25,203 | |||||||||||||||||||||||
| LIABILITIES & STOCKHOLDERS' EQUITY | |||||||||||||||||||||||||||
| Current Liabilities: | |||||||||||||||||||||||||||
| Accounts payable | $ | 2,050 | $ | 1,160 | |||||||||||||||||||||||
| Accrued payroll and benefits | 2,107 | 1,745 | |||||||||||||||||||||||||
| Current operating lease liabilities | 1,221 | — | |||||||||||||||||||||||||
| Other accrued liabilities | 244 | 450 | |||||||||||||||||||||||||
| Deferred revenue | 98 | 28 | |||||||||||||||||||||||||
| Total current liabilities | 5,720 | 3,383 | |||||||||||||||||||||||||
| Operating lease liabilities | 5,774 | — | |||||||||||||||||||||||||
| Deferred rent | 885 | 723 | |||||||||||||||||||||||||
| Other long-term liabilities | 134 | 534 | |||||||||||||||||||||||||
| Total non-current liabilities | 6,793 | 1,257 | |||||||||||||||||||||||||
| Stockholders' Equity: | |||||||||||||||||||||||||||
| Preferred stock | — | — | |||||||||||||||||||||||||
| Common stock | 38 | 28 | |||||||||||||||||||||||||
| Additional paid in capital | 274,041 | 256,626 | |||||||||||||||||||||||||
| Accumulated comprehensive deficit | (225,395 | ) | (236,091 | ) | |||||||||||||||||||||||
| Total stockholders' equity | 48,684 | 20,563 | |||||||||||||||||||||||||
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ | 61,197 | $ | 25,203 | |||||||||||||||||||||||
| Smith Micro Software Fourth Quarter and Fiscal Year 2019 Financial Results | Page 8 | ||||||||||||||||||||||||||
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| Smith Micro Software, Inc. | |||||||||||||||||||||||||||
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| Consolidated Statements of Cash Flows | |||||||||||||||||||||||||||
| (in thousands) | unaudited | audited | |||||||||||||||||||||||||
| For the Three Months | For the Year Ended | ||||||||||||||||||||||||||
| Ended December 31, | December 31, | ||||||||||||||||||||||||||
| 2019 | 2019 | 2018 | |||||||||||||||||||||||||
| Operating activities: | |||||||||||||||||||||||||||
| Net income (loss) | $ | 3,671 | $ | 10,722 | $ | (2,740 | ) | ||||||||||||||||||||
| Adjustments to reconcile net income (loss) to net cash provided<br><br><br>by (used in) operating activities: | |||||||||||||||||||||||||||
| Depreciation and amortization | 344 | 1,341 | 779 | ||||||||||||||||||||||||
| Non-cash lease expense | 224 | 954 | — | ||||||||||||||||||||||||
| Amortization of debt discounts and financing issuance<br><br><br>costs | — | — | 239 | ||||||||||||||||||||||||
| Restructuring costs | 40 | 194 | 173 | ||||||||||||||||||||||||
| Provision for doubtful accounts and other adjustments to<br><br><br>accounts receivable | 16 | 143 | (82 | ) | |||||||||||||||||||||||
| Provision for excess and obsolete inventory | — | 1 | (16 | ) | |||||||||||||||||||||||
| Loss on disposal of fixed assets | — | 6 | 7 | ||||||||||||||||||||||||
| Stock based compensation | 355 | 1,494 | 935 | ||||||||||||||||||||||||
| Deferred income taxes | 97 | 97 | 213 | ||||||||||||||||||||||||
| Change in fair value of warrant liability | — | — | 812 | ||||||||||||||||||||||||
| Gain on sale of software product | — | (483 | ) | — | |||||||||||||||||||||||
| Loss on debt extinguishment | — | — | 203 | ||||||||||||||||||||||||
| Change in operating accounts: | |||||||||||||||||||||||||||
| Accounts receivable | 220 | (3,811 | ) | (1,903 | ) | ||||||||||||||||||||||
| Prepaid expenses and other assets | (84 | ) | (32 | ) | (197 | ) | |||||||||||||||||||||
| Accounts payable and accrued liabilities | 284 | (417 | ) | (1,252 | ) | ||||||||||||||||||||||
| Deferred revenue | (7 | ) | (221 | ) | (45 | ) | |||||||||||||||||||||
| Net cash provided by (used in) operating activities | 5,160 | 9,988 | (2,874 | ) | |||||||||||||||||||||||
| Investing activities: | |||||||||||||||||||||||||||
| Acquisition of Smart Retail business, net | — | (3,974 | ) | — | |||||||||||||||||||||||
| Proceeds from sale of software product | 7 | 370 | — | ||||||||||||||||||||||||
| Capital expenditures | (835 | ) | (1,659 | ) | (173 | ) | |||||||||||||||||||||
| Net cash used in investing activities | (828 | ) | (5,263 | ) | (173 | ) | |||||||||||||||||||||
| Financing activities: | |||||||||||||||||||||||||||
| Proceeds from stock sale for employee stock purchase plan | — | 10 | 5 | ||||||||||||||||||||||||
| Proceeds from (payments related to) the issuance of<br><br><br>common stock | — | (14 | ) | 17,600 | |||||||||||||||||||||||
| Proceeds from exercise of common stock warrants | 54 | 11,457 | — | ||||||||||||||||||||||||
| Proceeds from exercise of stock options | 12 | 50 | — | ||||||||||||||||||||||||
| Repayments of short-term secured promissory notes | — | — | (1,000 | ) | |||||||||||||||||||||||
| Repayments of related party notes payable | — | — | (1,200 | ) | |||||||||||||||||||||||
| Repayments of notes payable | — | — | (2,000 | ) | |||||||||||||||||||||||
| Dividends paid on preferred stock | — | (119 | ) | (404 | ) | ||||||||||||||||||||||
| Net cash provided by financing activities | 66 | 11,384 | 13,001 | ||||||||||||||||||||||||
| Net increase in cash and cash equivalents | 4,398 | 16,109 | 9,954 | ||||||||||||||||||||||||
| Cash and cash equivalents, beginning of period | 23,870 | 12,159 | 2,205 | ||||||||||||||||||||||||
| Cash and cash equivalents, end of period | $ | 28,268 | $ | 28,268 | $ | 12,159 | |||||||||||||||||||||
| Free cash flow: | |||||||||||||||||||||||||||
| Net cash provided by (used in) operating activities | $ | 5,160 | $ | 9,988 | $ | (2,874 | ) | ||||||||||||||||||||
| Capital expenditures | (835 | ) | (1,659 | ) | (173 | ) | |||||||||||||||||||||
| Free cash flow | $ | 4,325 | $ | 8,329 | $ | (3,047 | ) |