EX-99.1 2 crge_ex991.htm EARNING PRESS RELEASE crge_ex991.htm

EXHIBIT 99.1

 

  

Charge Enterprises Reports Third Quarter 2022 Financial Results

 

 

·

 Reported Revenues Increased 59% to $185.9 Million

 

 

 

 

·

 Reported Gross Profit Increased 77% to $6.9 Million

 

 

 

 

·

 Wins in High-Demand Markets and Leveraging of Subsidiary Capabilities Driving Growth

 

New York – November 14, 2022 – Charge Enterprises, Inc. (Nasdaq: CRGE) (“Charge” or the “Company”), today reported third quarter 2022 revenues of $185.9 million, compared with $117.0 million in the third quarter of 2021. Gross profit for the third quarter of 2022 increased to $6.9 million, compared with $3.9 million in the third quarter of 2021.

 

“Progress and strategic execution in our business segments are increasing as we move through the year, driving solid revenue and gross profit growth in the third quarter,” stated Andrew Fox, Founder, Chairman, and Chief Executive Officer. “As our gross profit expands, we have and intend to continue to reinvest in future growth, securing the people and processes necessary to extend our reach and refine our management capabilities and best-in-class service offering while being mindful of expense control.”

 

Fox pointed to significant progress by Charge’s segments during the third quarter, including:

 

 

·

 Auto Dealership Sector Inroads. Automakers are rolling out electric vehicle (“EV”) programs and detailing to dealers’ minimum investment expectations that include onsite EV charging systems; estimates range by manufacturer, with some investment expectations reaching $1.2 million for high-volume retailers. These announcements and the urgency created by the automakers represents a significant opportunity for Charge, as the EV charging stations comprise most of the required dealer investment in these programs.

 

·

 Monitoring Operations Expansion. Advanced Network Services (“ANS”) was awarded five contracts across five states to implement its Network Operations Center (“NOC”) monitoring, which is driving growth in monthly recurring revenue (“MRR”).

 

·

 Infrastructure segment revenue for the first nine months of 2022 was $71.8 million. Business developments during the quarter, along with Charge’s ongoing client relationships have contributed to a current overall Infrastructure segment backlog, or signed customer contracts, of approximately $90 million.

 

Mr. Fox said, “We remain focused and disciplined on aggressively cultivating new customer relationships, pursuing additional opportunities to drive future growth, and hiring, training and retaining talented team members with an emphasis on skill and safety.”

 

Powerful trends are propelling the business, mitigating the impact of macro-economic pressures. Development and demand in Charge’s addressable market are being driven by the Federal Government’s approval of the Electric Vehicle Infrastructure Deployment Plan, as well as mandates in California and New York for all new vehicle zero-emission purchases in 2035. Similarly, demand for cell towers and electrical and power engineering services is robust as the nation invests in grid infrastructure and capabilities for increased data speed, bandwidth and efficiency.”

 

Fox concluded, “Charge is expanding wallet share with large, high-value telecom and mobile operators and providing our growing base of target customers in emerging, rapid-growth markets with the guidance necessary to inform their decisions regarding custom end-to-end infrastructure solutions. We are positioning Charge Enterprises to be their trusted provider at the crossover of next-generation broadband and EV charging infrastructure.”

 

 

 

 

Third Quarter 2022 Results – Selected Financial Information

 

 

 

As Reported

Three months ended September 30,

 

 

As Reported

Nine months ended September 30,

 

 

 

 

 

 

 

 

 

Increase

 

 

 

 

 

 

 

 

Increase

 

($ in thousands)

 

2022

 

 

2021

 

 

(Decrease)

 

 

2022

 

 

2021

 

 

(Decrease)

 

Total Revenues

 

 $ 185,857

 

 

 $ 116,998

 

 

 $ 68,859

 

 

 $ 529,876

 

 

 $ 357,709

 

 

 $ 172,167

 

Gross Profit

 

 

 6,906

 

 

 

 3,904

 

 

 

 3,002

 

 

 

 20,658

 

 

 

 7,629

 

 

 

 13,029

 

Net Income / (Loss)

 

 

 14,374

 

 

 

 (25,230 )

 

 

 39,604

 

 

 

 (18,408 )

 

 

 (36,894 )

 

 

 18,486

 

Adjusted EBITDA(1)

 

 $ (1,694 )

 

 $ (1,042 )

 

 $ (652 )

 

 $ (5,129 )

 

 $ (4,170 )

 

 $ (959 )

 

 

 

Proforma

Three months ended September 30,

 

 

Proforma

Nine months ended September 30,

 

 

 

 

 

 

 

 

 

Increase

 

 

 

 

 

 

 

 

Increase

 

($ in thousands)

 

2022

 

 

2021

 

 

(Decrease)

 

 

2022

 

 

2021

 

 

(Decrease)

 

Total Revenues

 

 $ 185,857

 

 

 $ 124,683

 

 

 $ 61,174

 

 

 $ 530,108

 

 

 $ 392,851

 

 

 $ 137,257

 

Gross Profit

 

 

 6,906

 

 

 

 6,254

 

 

 

 652

 

 

 

 20,802

 

 

 

 16,905

 

 

 

 3,897

 

Net Income / (Loss)

 

 

 14,374

 

 

 

 (23,790 )

 

 

 38,164

 

 

 

 (18,334 )

 

 

 (33,163 )

 

 

 14,829

 

Adjusted EBITDA(1)

 

 $ (1,694 )

 

 $ 355

 

 

 $ (2,049 )

 

 $ (5,046 )

 

 $ (2,199 )

 

 $ (2,847 )

 

(1) Adjusted EBITDA represents income (loss) before interest, income taxes, depreciation and amortization, and amortization of debt discount and debt issue costs adjusted for stock-based compensation, loss on impairment, (income) loss from investments, net, change in fair value of derivative liabilities, other (income) expense, net, and foreign exchange adjustments. Refer to Appendix for definition and complete non-GAAP reconciliation for Adjusted EBITDA.

 

Reported financial results include operations from the date of acquisition: ANS acquired on May 21, 2021; BW acquired on December 27, 2021; and EV Group Holdings (“EV Depot”) acquired on January 14, 2022. Due to the timing of certain acquisitions, current quarter results are not necessarily comparable to the prior periods.

 

Proforma financial results include: the full three and nine months periods for all of the Company’s operations, including acquisitions, for 2021 and 2022 as if they happened on the first day of the respective period. Management believes that presenting proforma results is important to understanding the Company’s financial performance and provides better analysis of trends in the Company’s underlying businesses as it allows for comparability to prior period results.

 

Reported revenues for the third quarter of 2022 increased $68.9 million to $185.9 million, and proforma revenues increased $61.2 million to $185.9 million, compared with the third quarter of 2021. The increase in reported and proforma revenues was driven by higher revenues in both of the Company’s business segments.

 

 

·

 Telecommunications: Reported revenues and proforma revenues increased $52.0 million, compared with the third quarter of 2021. The increase was driven by higher wholesale traffic volume.

 

 

 

 

·

 Infrastructure: Reported revenues increased $16.9 million, and proforma revenues increased $9.2 million, compared with the third quarter of 2021. The more than doubling in reported revenues was due to the Company’s acquisitions of BW and EV Depot and organic growth in ANS and the Company’s EV charging business. The 52% increase in proforma revenues demonstrates the continued success of the Company’s strategy to drive organic growth across the Company’s Infrastructure business.
 

Reported gross profit for the third quarter of 2022 increased $3.0 million to $6.9 million, and proforma gross profit increased $0.7 million to $6.9 million, compared with the third quarter of 2021. The increase in reported and proforma gross profit was primarily driven by higher revenues, partially offset by lower gross profit in the Company’s Telecommunications segment due to customer mix. Reported gross margin percentage for the third quarter of 2022 increased, compared with the third quarter of 2021, due to higher revenues in the Infrastructure segment. Proforma gross margin percentage decreased year-over-year due to the mix of revenues among the businesses, labor and cost inflation within the Infrastructure segment, and a decline in margin in the Telecommunications segment.

 

 
2

 

 

Reported net income for the third quarter of 2022 was $14.4 million, compared with a net loss of $25.2 million in the third quarter of 2021.Proforma net income was $14.4 million, compared with a net loss of $23.8 million in the third quarter of 2021. On a reported basis, the increase in net income was driven by the increase in gross profit and a non-cash mark-to-market derivative gain, offset by continued investments the Company is making in its people and processes to support Charge’s growth strategy. The largest drivers over the prior year period were:

 

 

·

 $7.8 million in stock-based compensation expense, which represented a modest $0.3 million increase. Sequentially stock-based compensation has declined in recent quarters, due to lower option grants in 2022, compared with 2021;

 

·

 $3.5 million in general and administrative expense, which represented a $1.6 million increase, due to costs associated with the Company’s uplist to the Nasdaq and higher marketing expense related to growing the business;

 

·

 $4.4 million in salaries and related benefits, which represented a $1.8 million increase, driven by incremental headcount to support the corporate organization and the growth of the Infrastructure segment; and

 

·

 $24.2 million in other (income) expense, net, which represented a $43.3 million increase in income. Included in the increase is a $28.7 million mark-to-market gain related to a derivative liability, partially offset by a $2.7 million loss on contingent liability related to a previously announced acquisition. Third quarter 2021 results included an $18.1 million impairment charge. Items reported in other (income) expense, net, are not related to Charge’s core business operations and therefore are excluded from Adjusted EBITDA.

 

The reported net income of $14.4 million in the third quarter of 2022, adjusted for non-cash and certain one-time items, resulted in an Adjusted EBITDA loss of $1.7 million, compared with an Adjusted EBITDA loss of $1.0 million in the third quarter of 2021. See the Appendix for a full reconciliation.

 

As of September 30, 2022, Charge held $42.6 million in cash, cash equivalents and marketable securities.

 

Charge’s CFO Leah Schweller commented, “Our third quarter performance was strong, and we delivered operating profitability in each of our business segments, despite a challenging macroeconomic environment, as our strategy capitalizes on tailwinds in both next-generation broadband and EV charging infrastructure and we prudently invest in expanding our foundation for growth.

 

“To extend our record of gross profit growth, we are planning projects carefully, ensuring we remain at full capacity to drive efficiencies, absorb near-term external inflationary pressures while staying nimble and opportunistic in order to expand our customer base and grow organically with existing customers. Charge is purposely structured to utilize our lower-margin, positive cash flow Telecommunications business to support our faster-growing Infrastructure segment. For the rest of the year, we remain focused on continued consistent execution, expanding our maintenance, monitoring and NOC services and managing expenses to maximize gross profit delivery.”

 

For further details of the Company’s financials, please see Charge Enterprises’ Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, filed with the Securities and Exchange Commission on November 14, 2022 and available on Charge’s website Charge | SEC Filings. Financial statements prior to December 31, 2021 were filed with the OTC Markets.

 

About Charge Enterprises, Inc.

 

Charge Enterprises, Inc. (Nasdaq: CRGE) (“Charge” or the “Company”), consisting of a portfolio of global businesses with the vision of connecting people everywhere with communications and electric vehicle (“EV”) charging infrastructure.

 

 
3

 

 

Telecommunications

 

Our Telecommunications business (“Telecommunications”) provides routing of both voice and data to Carriers and Mobile Network Operators (“MNOs”) globally for over two decades and is poised to selectively add products and services to this long-established business.

 

Infrastructure

 

Our Infrastructure business (“Infrastructure”) primarily focuses on two fast growing sectors: electric vehicle (“EV”) charging, and Telecommunications Network 5G, including cell tower, small cell, and in-building applications. Solutions for these two sectors include: Design and Engineering, Equipment Specification and Sourcing, Installation, Data and Software Solutions, and Service and Maintenance.

 

To learn more about Charge, visit Charge Enterprises, Inc. and follow us on LinkedIn and Twitter.

 

Notice Regarding Forward-Looking Information

 

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect current expectations or beliefs regarding future events or Charge’s future performance. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “continues”, “forecasts”, “projects”, “predicts”, “intends”, “anticipates”, “targets” or “believes”, or variations of, or the negatives of, such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “should”, “might” or “will” be taken, occur or be achieved. All forward-looking statements, including those herein, are qualified by this cautionary statement.

Although Charge believes that the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements involve risks and uncertainties, and actual results may differ materially from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties include the business plans and strategies of Charge, Charge’s future business development, market acceptance of electric vehicles, Charge’s ability to generate profits and positive cash flow, changes in government regulations and government incentives, subsidies, or other favorable government policies, rising interest rates and the impact on investments by our customers, and other risks discussed in Charge’s filings with the U.S. Securities and Exchange Commission (“SEC”). Readers are cautioned that the foregoing list of risks and uncertainties is not exhaustive of the factors that may affect forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this press release speak only as of the date of this press release or as of the date or dates specified in such statements. For more information on us, investors are encouraged to review our public filings with the SEC, including the factors described in the section captioned “Risk Factors” of Charge’s Annual Report on Form 10-K filed with the SEC on March 29, 2022, as well as subsequent reports we file from time to time with the SEC which are available on the SEC’s website at www.sec.gov. Charge disclaims any intention or obligation to update or revise any forward- looking information, whether as a result of new information, future events or otherwise, other than as required by law.

 

Notice Regarding Non-GAAP Measures

 

The press release includes both financial measures in accordance with U.S. generally accepted accounting principles (“GAAP”), as well as non-GAAP financial measures. These non-GAAP financial measures are in addition to, and not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. See the Appendix for a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures. These non-GAAP financial measures may be different from non-GAAP financial measures used by other companies.

 

Contacts:

 

Investor Relations:

Christine Cannella (954) 298-6518

Ccannella@charge.enterprises

 

Carolyn Capaccio, CFA (212) 838-3777

Ccapaccio@lhai.com

 

Media:

Jeff Kuhlman (571) 246-3857

jkuhlman@charge.enterprises

 

APPENDIX

 

 
4

 

 

CHARGE ENTERPRISES, INC.

CONSOLIDATED RESULTS OF OPERATIONS

 

 

 

As Reported

 

 

As Reported

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

 

 

 

 

 

 

Increase

 

 

 

 

 

 

 

 

Increase

 

(in thousands)

 

2022

 

 

2021

 

 

(Decrease)

 

 

2022

 

 

2021

 

 

(Decrease)

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Telecommunications

 

 $ 159,105

 

 

 $ 107,108

 

 

 $ 51,997

 

 

 $ 458,072

 

 

 $ 344,195

 

 

 $ 113,877

 

Infrastructure

 

 

 26,752

 

 

 

 9,890

 

 

 

 16,862

 

 

 

 71,804

 

 

 

 13,514

 

 

 

 58,290

 

Total revenues

 

 

 185,857

 

 

 

 116,998

 

 

 

 68,859

 

 

 

 529,876

 

 

 

 357,709

 

 

 

 172,167

 

Cost of goods sold

 

 

 178,951

 

 

 

 113,094

 

 

 

 65,857

 

 

 

 509,218

 

 

 

 350,080

 

 

 

 159,138

 

Gross profit

 

 

 6,906

 

 

 

 3,904

 

 

 

 3,002

 

 

 

 20,658

 

 

 

 7,629

 

 

 

 13,029

 

Stock based compensation

 

 

 7,847

 

 

 

 7,558

 

 

 

 289

 

 

 

 28,352

 

 

 

 21,351

 

 

 

 7,001

 

General and administrative

 

 

 3,516

 

 

 

 1,929

 

 

 

 1,587

 

 

 

 10,420

 

 

 

 5,325

 

 

 

 5,095

 

Salaries and related benefits

 

 

 4,417

 

 

 

 2,587

 

 

 

 1,830

 

 

 

 12,787

 

 

 

 5,210

 

 

 

 7,577

 

Professional fees

 

 

 667

 

 

 

 432

 

 

 

 235

 

 

 

 2,580

 

 

 

 1,264

 

 

 

 1,316

 

Depreciation expense

 

 

 433

 

 

 

 166

 

 

 

 267

 

 

 

 1,745

 

 

 

 314

 

 

 

 1,431

 

Income (loss) from operations

 

 

 (9,974 )

 

 

 (8,768 )

 

 

 (1,206 )

 

 

 (35,226 )

 

 

 (25,835 )

 

 

 (9,391 )

Other (income) expenses

 

 

 (24,165 )

 

 

 19,178

 

 

 

 (43,343 )

 

 

 (15,045 )

 

 

 16,967

 

 

 

 (32,012 )

Income tax expense (benefit)

 

 

 (183 )

 

 

 (2,716 )

 

 

 2,533

 

 

 

 (1,773 )

 

 

 (5,908 )

 

 

 4,135

 

Net income (loss)

 

 $ 14,374

 

 

 $ (25,230 )

 

 $ 39,604

 

 

 $ (18,408 )

 

 $ (36,894 )

 

 $ 18,486

 

  

 

 

Proforma

 

 

Proforma

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

 

 

 

 

 

 

Increase

 

 

 

 

 

 

 

 

Increase

 

(in thousands)

 

2022

 

 

2021

 

 

(Decrease)

 

 

2022

 

 

2021

 

 

(Decrease)

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Telecommunications

 

 $ 159,105

 

 

 $ 107,108

 

 

 $ 51,997

 

 

 $ 458,072

 

 

 $ 344,195

 

 

 $ 113,877

 

Infrastructure

 

 

 26,752

 

 

 

 17,575

 

 

 

 9,177

 

 

 

 72,036

 

 

 

 48,656

 

 

 

 23,380

 

Total revenues

 

 

 185,857

 

 

 

 124,683

 

 

 

 61,174

 

 

 

 530,108

 

 

 

 392,851

 

 

 

 137,257

 

Cost of goods sold

 

 

 178,951

 

 

 

 118,429

 

 

 

 60,522

 

 

 

 509,306

 

 

 

 375,946

 

 

 

 133,360

 

Gross profit

 

 

 6,906

 

 

 

 6,254

 

 

 

 652

 

 

 

 20,802

 

 

 

 16,905

 

 

 

 3,897

 

Stock based compensation

 

 

 7,847

 

 

 

 7,558

 

 

 

 289

 

 

 

 28,352

 

 

 

 21,351

 

 

 

 7,001

 

General and administrative

 

 

 3,516

 

 

 

 2,112

 

 

 

 1,404

 

 

 

 10,469

 

 

 

 7,100

 

 

 

 3,369

 

Salaries and related benefits

 

 

 4,417

 

 

 

 3,310

 

 

 

 1,107

 

 

 

 12,800

 

 

 

 10,536

 

 

 

 2,264

 

Professional fees

 

 

 667

 

 

 

 478

 

 

 

 189

 

 

 

 2,580

 

 

 

 1,467

 

 

 

 1,113

 

Depreciation expense

 

 

 433

 

 

 

 167

 

 

 

 266

 

 

 

 1,745

 

 

 

 549

 

 

 

 1,196

 

Income (loss) from operations

 

 

 (9,974 )

 

 

 (7,371 )

 

 

 (2,603 )

 

 

 (35,144 )

 

 

 (24,098 )

 

 

 (11,046 )

Other (income) expense

 

 

 (24,165 )

 

 

 19,069

 

 

 

 (43,234 )

 

 

 (15,037 )

 

 

 14,775

 

 

 

 (29,812 )

Income tax expense (benefit)

 

 

 (183 )

 

 

 (2,650 )

 

 

 2,467

 

 

 

 (1,773 )

 

 

 (5,710 )

 

 

 3,937

 

Net income (loss)

 

 $ 14,374

 

 

 $ (23,790 )

 

 $ 38,164

 

 

 $ (18,334 )

 

 $ (33,163 )

 

 $ 14,829

 

 

 
5

 

 

CHARGE ENTERPRISES, INC.

SEGMENT RESULTS OF OPERATIONS

 

Telecommunications

 

 

 

As Reported and Proforma

 

 

As Reported and Proforma

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

 

 

 

 

 

 

Increase

 

 

 

 

 

 

 

 

Increase

 

(in thousands)

 

2022

 

 

2021

 

 

(Decrease)

 

 

2022

 

 

2021

 

 

(Decrease)

 

Revenues

 

 $ 159,105

 

 

 $ 107,108

 

 

 $ 51,997

 

 

 $ 458,072

 

 

 $ 344,195

 

 

 $ 113,877

 

Cost of goods sold

 

 

 158,153

 

 

 

 105,881

 

 

 

 52,272

 

 

 

 454,604

 

 

 

 339,901

 

 

 

 114,703

 

Gross profit

 

 

 952

 

 

 

 1,227

 

 

 

 (275 )

 

 

 3,468

 

 

 

 4,294

 

 

 

 (826 )

General and administrative

 

 

 468

 

 

 

 534

 

 

 

 (66 )

 

 

 1,477

 

 

 

 1,321

 

 

 

 156

 

Salaries and related benefits

 

 

 132

 

 

 

 585

 

 

 

 (453 )

 

 

 630

 

 

 

 1,472

 

 

 

 (842 )

Professional fees

 

 

 28

 

 

 

 18

 

 

 

 10

 

 

 

 63

 

 

 

 34

 

 

 

 29

 

Depreciation expense

 

 

 42

 

 

 

 49

 

 

 

 (7 )

 

 

 128

 

 

 

 149

 

 

 

 (21 )

Income (loss) from operations

 

 

 282

 

 

 

 41

 

 

 

 241

 

 

 

 1,170

 

 

 

 1,318

 

 

 

 (148 )

Other (income) expenses

 

 

 5

 

 

 

 (1,426 )

 

 

 1,431

 

 

 

 (68 )

 

 

 (885 )

 

 

 817

 

Income tax expense (benefit)

 

 

 255

 

 

 

 (1,062 )

 

 

 1,317

 

 

 

 3

 

 

 

 (1,237 )

 

 

 1,240

 

Net income (loss)

 

 $ 22

 

 

 $ 2,529

 

 

 $ (2,507 )

 

 $ 1,235

 

 

 $ 3,440

 

 

 $ (2,205 )

 

Infrastructure

 

 

 

As Reported

 

 

As Reported

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

 

 

 

 

 

 

Increase

 

 

 

 

 

 

 

 

Increase

 

(in thousands)

 

2022

 

 

2021

 

 

(Decrease)

 

 

2022

 

 

2021

 

 

(Decrease)

 

Revenues

 

 $ 26,752

 

 

 $ 9,890

 

 

 $ 16,862

 

 

 $ 71,804

 

 

 $ 13,514

 

 

 $ 58,290

 

Cost of goods sold

 

 

 20,798

 

 

 

 7,213

 

 

 

 13,585

 

 

 

 54,614

 

 

 

 10,179

 

 

 

 44,435

 

Gross profit

 

 

 5,954

 

 

 

 2,677

 

 

 

 3,277

 

 

 

 17,190

 

 

 

 3,335

 

 

 

 13,855

 

General and administrative

 

 

 1,437

 

 

 

 696

 

 

 

 741

 

 

 

 3,644

 

 

 

 1,594

 

 

 

 2,050

 

Salaries and related benefits

 

 

 2,694

 

 

 

 991

 

 

 

 1,703

 

 

 

 7,062

 

 

 

 1,424

 

 

 

 5,638

 

Professional fees

 

 

 70

 

 

 

 32

 

 

 

 38

 

 

 

 211

 

 

 

 51

 

 

 

 160

 

Depreciation expense

 

 

 391

 

 

 

 117

 

 

 

 274

 

 

 

 1,617

 

 

 

 165

 

 

 

 1,452

 

Income (loss) from operations

 

 

 1,362

 

 

 

 841

 

 

 

 521

 

 

 

 4,656

 

 

 

 101

 

 

 

 4,555

 

Other (income) expenses

 

 

 92

 

 

 

 18,132

 

 

 

 (18,040 )

 

 

 906

 

 

 

 18,103

 

 

 

 (17,197 )

Income tax expense (benefit)

 

 

 91

 

 

 

 (22 )

 

 

 113

 

 

 

 (14 )

 

 

 (67 )

 

 

 53

 

Net income (loss)

 

 $ 1,179

 

 

 $ (17,269 )

 

 $ 18,448

 

 

 $ 3,764

 

 

 $ (17,935 )

 

 $ 21,699

 

 

 
6

 

 

 

 

Proforma

 

 

Proforma

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

 

 

 

 

 

Increase

 

 

 

 

 

 

 

Increase

 

(in thousands)

 

 2022

 

 

2021

 

 

(Decrease)

 

 

 2022

 

 

2021

 

 

(Decrease)

 

Revenues

 

 $ 26,752

 

 

 $ 17,575

 

 

 $ 9,177

 

 

 $ 72,036

 

 

 $ 48,656

 

 

 $ 23,380

 

Cost of goods sold

 

 

 20,798

 

 

 

 12,548

 

 

 

 8,250

 

 

 

 54,702

 

 

 

 36,045

 

 

 

 18,657

 

Gross profit

 

 

 5,954

 

 

 

 5,027

 

 

 

 927

 

 

 

 17,334

 

 

 

 12,611

 

 

 

 4,723

 

General and administrative

 

 

 1,437

 

 

 

 879

 

 

 

 558

 

 

 

 3,693

 

 

 

 3,369

 

 

 

 324

 

Salaries and related benefits

 

 

 2,694

 

 

 

 1,714

 

 

 

 980

 

 

 

 7,075

 

 

 

 6,750

 

 

 

 325

 

Professional fees

 

 

 70

 

 

 

 78

 

 

 

 (8 )

 

 

 211

 

 

 

 254

 

 

 

 (43 )

Depreciation expense

 

 

 391

 

 

 

 118

 

 

 

 273

 

 

 

 1,617

 

 

 

 400

 

 

 

 1,217

 

Income (loss) from operations

 

 

 1,362

 

 

 

 2,238

 

 

 

 (876 )

 

 

 4,738

 

 

 

 1,838

 

 

 

 2,900

 

Other (income) expense

 

 

 92

 

 

 

 18,023

 

 

 

 (17,931 )

 

 

 915

 

 

 

 15,911

 

 

 

 (14,996 )

Income tax expense (benefit)

 

 

 91

 

 

 

 44

 

 

 

 47

 

 

 

 (14 )

 

 

 131

 

 

 

 (145 )

Net income (loss)

 

 $ 1,179

 

 

 $ (15,829 )

 

 $ 17,008

 

 

 $ 3,837

 

 

 $ (14,204 )

 

 $ 18,041

 

 

Non-Operating Corporate

 

 

 

As Reported and Proforma

 

 

As Reported and Proforma

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

 

 

 

 

 

 

Increase

 

 

 

 

 

 

 

 

Increase

 

(in thousands)

 

2022

 

 

2021

 

 

(Decrease)

 

 

2022

 

 

2021

 

 

(Decrease)

 

Revenues

 

 $ -

 

 

 $ -

 

 

 $ -

 

 

 $ -

 

 

 $ -

 

 

 $ -

 

Cost of goods sold

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Gross profit

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Stock based compensation

 

 

 7,847

 

 

 

 7,558

 

 

 

 289

 

 

 

 28,352

 

 

 

 21,351

 

 

 

 7,001

 

General and administrative

 

 

 1,611

 

 

 

 699

 

 

 

 912

 

 

 

 5,299

 

 

 

 2,410

 

 

 

 2,889

 

Salaries and related benefits

 

 

 1,591

 

 

 

 1,011

 

 

 

 580

 

 

 

 5,095

 

 

 

 2,314

 

 

 

 2,781

 

Professional fees

 

 

 569

 

 

 

 382

 

 

 

 187

 

 

 

 2,306

 

 

 

 1,179

 

 

 

 1,127

 

Depreciation expense

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Income (loss) from operations

 

 

 (11,618 )

 

 

 (9,650 )

 

 

 (1,968 )

 

 

 (41,052 )

 

 

 (27,254 )

 

 

 (13,798 )

Other (income) expenses

 

 

 (24,262 )

 

 

 2,472

 

 

 

 (26,734 )

 

 

 (15,883 )

 

 

 (251 )

 

 

 (15,632 )

Income tax expense (benefit)

 

 

 (529 )

 

 

 (1,632 )

 

 

 1,103

 

 

 

 (1,762 )

 

 

 (4,604 )

 

 

 2,842

 

Net income (loss)

 

 $ 13,173

 

 

 $ (10,490 )

 

 $ 23,663

 

 

 $ (23,407 )

 

 $ (22,399 )

 

 $ (1,008 )

 

 
7

 

 

CHARGE ENTERPRISES, INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

September 30,

 

 

December 31,

 

 

 

2022

 

 

2021

 

ASSETS

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

 $ 36,235,710

 

 

 $ 18,238,264

 

Accounts receivable net of allowances of $171,078 and $176,949, respectively

 

 

 74,984,606

 

 

 

 73,334,183

 

Inventory

 

 

 183,849

 

 

 

 111,070

 

Deposits, prepaids and other current assets

 

 

 4,511,644

 

 

 

 1,721,222

 

Investments in marketable securities

 

 

 6,404,567

 

 

 

 9,618,743

 

Investments in non-marketable securities

 

 

 175,416

 

 

 

 100,000

 

Cost in excess of billings

 

 

 7,853,793

 

 

 

 4,812,483

 

Total current assets

 

 

 130,349,585

 

 

 

 107,935,965

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

 

 1,661,043

 

 

 

 2,011,668

 

Intangible assets, net

 

 

 10,864,651

 

 

 

 -

 

Finance lease asset

 

 

 390,345

 

 

 

 469,645

 

Operating lease right-of-use asset

 

 

 3,471,459

 

 

 

 1,558,052

 

Non-current assets

 

 

 232,000

 

 

 

 -

 

 

 

 

 36,017,209

 

 

 

 26,054,522

 

Deferred tax asset

 

 

 4,558,166

 

 

 

 5,579,660

 

Total assets

 

 $ 187,544,458

 

 

 $ 143,609,512

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

 $ 82,059,741

 

 

 $ 71,428,301

 

Accrued liabilities

 

 

 10,000,762

 

 

 

 5,739,475

 

Deferred revenue

 

 

 9,065,856

 

 

 

 7,017,392

 

Derivative liability

 

 

 11,773,452

 

 

 

 -

 

Convertible notes payable, net of discount

 

 

 -

 

 

 

 2,700,337

 

Line of credit

 

 

 2,152,388

 

 

 

 1,898,143

 

Finance lease liability

 

 

 134,099

 

 

 

 159,215

 

Operating lease liability

 

 

 1,340,849

 

 

 

 125,191

 

Total current liabilities

 

 

 116,527,147

 

 

 

 89,068,054

 

 

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

 

Finance lease liability, non-current

 

 

 165,653

 

 

 

 218,825

 

Operating lease liability, non-current

 

 

 2,208,909

 

 

 

 1,442,743

 

Notes payable, net of discount

 

 

 22,747,991

 

 

 

 26,087,523

 

Convertible notes payable, net of discount

 

 

 -

 

 

 

 4,475,260

 

Total liabilities

 

 

 141,649,700

 

 

 

 121,292,405

 

 

 

 

 

 

 

 

 

 

Mezzanine Equity

 

 

 

 

 

 

 

 

Series B Preferred Stock (0 and 2,395,105 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively)

 

 

 -

 

 

 

 6,850,000

 

Series C Preferred Stock (6,226,370 shares issued and outstanding at September 30, 2022)

 

 

 16,571,656

 

 

 

 -

 

Total Mezzanine Equity

 

 

 16,571,656

 

 

 

 6,850,000

 

 

 

 

 

 

 

 

 

 

Commitments, contingencies and concentration risk (Note 16)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ Equity

 

 

 

 

 

 

 

 

Preferred stock, $0.0001 par value, 20,000,000 shares authorized;          

 

 

 

 

 

 

 

 

Series C: 2,370,370 shares issued and outstanding at December 31, 2021

 

 

 -

 

 

 

 237

 

Series D: 1,177,023 shares issued and outstanding at September 30, 2022

 

 

 118

 

 

 

 -

 

Common stock, $0.0001 par value; 750,000,000 shares authorized 206,482,414 and 184,266,934 issued and outstanding at September 30, 2022 and December 31, 2021, respectively

 

 

 20,648

 

 

 

 18,426

 

Common stock to be issued, 0 shares at September 30, 2022 and 6,587,897 December 31, 2021

 

 

 -

 

 

 

 658

 

Additional paid in capital

 

 

 190,521,417

 

 

 

 126,869,604

 

Accumulated other comprehensive income (loss)

 

 

 -

 

 

 

 (32,289 )

Accumulated deficit

 

 

 (161,219,081 )

 

 

 (111,389,529 )

Total stockholders’ equity

 

 

 29,323,102

 

 

 

 15,467,107

 

Total liabilities and stockholders’ equity

 

 $ 187,544,458

 

 

 $ 143,609,512

 

 

 
8

 

 

CHARGE ENTERPRISES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

For Three Months Ended September 30,

 

 

For Nine Months Ended September 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

 $ 185,857,129

 

 

 $ 116,998,086

 

 

 $ 529,875,631

 

 

 $ 357,708,784

 

Cost of Goods Sold

 

 

 178,950,754

 

 

 

 113,094,330

 

 

 

 509,218,015

 

 

 

 350,079,862

 

Gross Profit

 

 

 6,906,375

 

 

 

 3,903,756

 

 

 

 20,657,616

 

 

 

 7,628,922

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock based compensation

 

 

 7,847,636

 

 

 

 7,557,616

 

 

 

 28,351,975

 

 

 

 21,351,212

 

General and administrative

 

 

 3,515,727

 

 

 

 1,928,391

 

 

 

 10,420,242

 

 

 

 5,324,092

 

Salaries and related benefits

 

 

 4,416,656

 

 

 

 2,586,680

 

 

 

 12,786,665

 

 

 

 5,210,140

 

Professional fees

 

 

 667,411

 

 

 

 431,698

 

 

 

 2,580,020

 

 

 

 1,264,299

 

Depreciation and amortization expense

 

 

 432,921

 

 

 

 166,431

 

 

 

 1,745,040

 

 

 

 314,334

 

Total operating expenses

 

 

 16,880,351

 

 

 

 12,670,816

 

 

 

 55,883,942

 

 

 

 33,464,077

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) from operations

 

 

 (9,973,976 )

 

 

 (8,767,060 )

 

 

 (35,226,326 )

 

 

 (25,835,155 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss on impairment

 

 

 -

 

 

 

 (18,119,592 )

 

 

 -

 

 

 

 (18,119,592 )

Income (loss) from investments, net

 

 

 (117,715 )

 

 

 (840,911 )

 

 

 (1,140,090 )

 

 

 3,420,417

 

Amortization of debt discount

 

 

 (494,561 )

 

 

 (1,164,806 )

 

 

 (7,938,229 )

 

 

 (2,147,594 )

Amortization of debt discount, related party

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (95,127 )

Change in fair value of derivative liabilities

 

 

 28,669,066

 

 

 

 -

 

 

 

 28,669,066

 

 

 

 (400 )

Interest expense

 

 

 (520,834 )

 

 

 (485,542 )

 

 

 (2,001,615 )

 

 

 (934,225 )

Other income (expense), net

 

 

 (3,346,462 )

 

 

 1,181,781

 

 

 

 (2,432,871 )

 

 

 1,171,343

 

Foreign exchange adjustments

 

 

 (24,347 )

 

 

 251,280

 

 

 

 (110,538 )

 

 

 (261,432 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total other expenses, net

 

 

 24,165,147

 

 

 

 (19,177,790 )

 

 

 15,045,723

 

 

 

 (16,966,610 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

 14,191,171

 

 

 

 (27,944,850 )

 

 

 (20,180,603 )

 

 

 (42,801,765 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax benefit (expense)

 

 

 183,184

 

 

 

 2,715,260

 

 

 

 1,772,804

 

 

 

 5,908,091

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

 $ 14,374,355

 

 

 $ (25,229,590 )

 

 $ (18,407,799 )

 

 $ (36,893,674 )

Less: Deemed dividend

 

 

 -

 

 

 

 -

 

 

 

 (36,697,317 )

 

 

 -

 

Less: Preferred dividends

 

 

 (302,441 )

 

 

 -

 

 

 

 (922,254 )

 

 

 -

 

Net income (loss) available to common stockholders

 

 $ 14,071,914

 

 

 $ (25,229,590 )

 

 $ (56,027,370 )

 

 $ (36,893,674 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic income (loss) per share available to common stockholders

 

 $ 0.06

 

 

 $ (0.17 )

 

 $ (0.29 )

 

 $ (0.25 )

Diluted income (loss) per share available to common stockholders

 

 $ 0.05

 

 

 $ (0.17 )

 

 $ (0.29 )

 

 $ (0.25 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding, basic

 

 

 206,224,561

 

 

 

 152,222,589

 

 

 

 196,126,428

 

 

 

 150,397,062

 

Weighted average number of shares outstanding, diluted

 

 

 231,388,387

 

 

 

 152,222,589

 

 

 

 196,126,428

 

 

 

 150,397,062

 

 

 
9

 

 

CHARGE ENTERPRISES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Nine Months Ended September 30,

 

 

 

2022

 

 

2021

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net loss

 

 $ (18,407,799 )

 

 $ (36,893,674 )

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Amortization

 

 

 1,059,966

 

 

 

 -

 

Depreciation

 

 

 685,074

 

 

 

 314,334

 

Stock-based compensation

 

 

 28,351,975

 

 

 

 21,351,212

 

Stock issued for services

 

 

 -

 

 

 

 353,903

 

Change in fair value of derivative liabilities

 

 

 (28,669,066 )

 

 

 400

 

Amortization of debt discount

 

 

 7,938,229

 

 

 

 2,147,594

 

Amortization of debt discount, related party

 

 

 -

 

 

 

 95,127

 

Amortization of debt issue costs

 

 

 -

 

 

 

 10,438

 

Loss on foreign currency exchange

 

 

 110,538

 

 

 

 261,432

 

Loss on impairment

 

 

 -

 

 

 

 18,119,592

 

Net (income) loss from investments

 

 

 1,140,090

 

 

 

 (3,420,417 )

Other (income) expense, net

 

 

 2,465,068

 

 

 

 (1,268,155 )

Income tax (benefit) expense

 

 

 (1,772,804 )

 

 

 (5,908,091 )

Changes in working capital requirements:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

 (1,899,791 )

 

 

 18,536,022

 

Accrued revenue

 

 

 -

 

 

 

 (1,717,395 )

Inventory

 

 

 (72,779 )

 

 

 14,144

 

Deposits, prepaids and other current assets

 

 

 (1,761,407 )

 

 

 2,258,191

 

Other assets

 

 

 (43,147 )

 

 

 117,476

 

Costs in excess of billings

 

 

 (3,041,310 )

 

 

 -

 

Accounts payable

 

 

 10,147,863

 

 

 

 (11,205,660 )

Other current liabilities

 

 

 (1,196,067 )

 

 

 424,506

 

Deferred revenue

 

 

 2,048,463

 

 

 

 -

 

Other comprehensive income

 

 

 -

 

 

 

 (88,023 )

Net cash (used in) provided by operating activities

 

 

 (2,916,904 )

 

 

 3,502,956

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Acquisition of fixed assets

 

 

 (204,893 )

 

 

 (1,274,687 )

Disposal of fixed assets

 

 

 -

 

 

 

 837,120

 

Sale of intellectual property

 

 

 179,466

 

 

 

 -

 

Purchase of marketable securities

 

 

 (45,430,216 )

 

 

 (62,031,435 )

Sale of marketable securities

 

 

 47,428,885

 

 

 

 55,872,437

 

Purchase of non-marketable securities

 

 

 -

 

 

 

 (100,000 )

Acquisition of ANS

 

 

 (362,962 )

 

 

 (12,948,324 )

Acquisition of EV Depot

 

 

 (1,231,250 )

 

 

 -

 

Cash acquired in acquisition

 

 

 104,485

 

 

 

 (282,101 )

Net cash provided by (used in) investing activities

 

 

 483,515

 

 

 

 (19,926,990 )

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Cash receipts from issuance of notes payable

 

 

 -

 

 

 

 10,000,000

 

Cash receipts from issuance of convertible notes payable

 

 

 -

 

 

 

 5,000,000

 

Proceeds from sale of Common Stock

 

 

 10,000,025

 

 

 

 -

 

Proceeds from sale of Series C Preferred Stock

 

 

 10,845,000

 

 

 

 -

 

Proceeds from exercise of warrants

 

 

 1,121,818

 

 

 

 -

 

Proceeds from exercise of stock options

 

 

 164,076

 

 

 

 -

 

Draws from revolving line of credit, net

 

 

 254,245

 

 

 

 (270,727 )

Employee taxes paid for stock-based compensation

 

 

 (417,959 )

 

 

 

 

Cash paid for contingent liability

 

 

 -

 

 

 

 (61,232 )

Payment on financing lease

 

 

 (78,288 )

 

 

 (81,272 )

Payment of dividends

 

 

 (818,343 )

 

 

 -

 

Redemption of Series B Preferred Stock

 

 

 (685,000 )

 

 

 -

 

Net cash provided by financing activities

 

 

 20,385,574

 

 

 

 14,586,769

 

 

 

 

 

 

 

 

 

 

Foreign currency adjustment

 

 

 45,261

 

 

 

 (366,306 )

 

 

 

 

 

 

 

 

 

NET INCREASE IN CASH AND CASH EQUIVALENTS

 

 

 17,997,446

 

 

 

 (2,203,571 )

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

 

 18,238,264

 

 

 

 11,629,303

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

 $ 36,235,710

 

 

 $ 9,425,732

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information

 

 

 

 

 

 

 

 

Cash paid for interest expense

 

 $ 2,138,386

 

 

 $ 247,900

 

Cash paid for income taxes

 

 $ 485,401

 

 

 $ -

 

 

 

 

 

 

 

 

 

 

Non-cash investing and financing activities:

 

 

 

 

 

 

 

 

Issuance of Series B Preferred Stock for acquisition

 

 $ -

 

 

 $ 6,850,000

 

Issuance of common stock for acquisition

 

 $ 17,530,278

 

 

 $ -

 

Debt discount associated with promissory notes

 

 $ -

 

 

 $ 4,296,911

 

 

 
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Non-GAAP Measures

 

In this press release, the Company has supplemented the presentation of its financial results calculated in accordance with U.S. generally accepted accounting principles (“GAAP”) with the following financial measures that are not calculated in accordance with GAAP: EBITDA and Adjusted EBITDA. Management uses both GAAP and non-GAAP measures to assist in making business decisions and assessing overall performance. The Company’s measurement of these non-GAAP financial measures may be different from similarly titled financial measures used by others and therefore may not be comparable. These non-GAAP financial measures should not be considered superior to the GAAP measures in the tables included within this material.

 

Certain information presented in this press release reflects adjustments to GAAP measures such as EBITDA and Adjusted EBITDA as an additional way of assessing certain aspects of the Company’s operations that, when viewed with the GAAP financial measures, provide a more complete understanding of its on-going business. EBITDA is defined as income (loss) before interest, income taxes, depreciation and amortization, and amortization of debt discount and debt issue costs. Adjusted EBITDA represents EBITDA adjusted for stock-based compensation, income (loss) from investments, net, other (income) expense, net, and foreign exchange adjustments.

 

CHARGE ENTERPRISES, INC.

NON-GAAP RECONCILIATION

 

 

 

As Reported

Three months ended September 30,

 

 

As Reported

Nine months ended September 30,

 

($ in thousands)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

 $ 14,374

 

 

 $ (25,230 )

 

 $ (18,408 )

 

 $ (36,894 )

Income tax expense (benefit)

 

 

 (183 )

 

 

 (2,715 )

 

 

 (1,773 )

 

 

 (5,908 )

Interest expense

 

 

 521

 

 

 

 486

 

 

 

 2,002

 

 

 

 934

 

Depreciation & Amortization

 

 

 433

 

 

 

 166

 

 

 

 1,745

 

 

 

 314

 

Amortization of debt discount

 

 

 495

 

 

 

 1,165

 

 

 

 7,938

 

 

 

 2,148

 

Amortization of debt discount, related party

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 95

 

EBITDA

 

 

 15,640

 

 

 

 (26,128 )

 

 

 (8,496 )

 

 

 (39,311 )

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock based compensation

 

 

 7,847

 

 

 

 7,558

 

 

 

 28,352

 

 

 

 21,351

 

Loss on impairment

 

 

 -

 

 

 

 18,120

 

 

 

 -

 

 

 

 18,120

 

(Income) loss from investments, net

 

 

 118

 

 

 

 841

 

 

 

 1,140

 

 

 

 (3,420 )

Change in fair value of derivative liabilities

 

 

 (28,669 )

 

 

 -

 

 

 

 (28,669 )

 

 

 -

 

Other (income) expense, net

 

 

 3,346

 

 

 

 (1,182 )

 

 

 2,433

 

 

 

 (1,171 )

Foreign exchange adjustments

 

 

 24

 

 

 

 (251 )

 

 

 111

 

 

 

 261

 

Adjusted EBITDA

 

 $ (1,694 )

 

 $ (1,042 )

 

 $ (5,129 )

 

 $ (4,170 )

 

 

 

Proforma

Three months ended September 30,

 

 

Proforma

Nine months ended September 30,

 

($ in thousands)

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Adjusted EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

 $ 14,374

 

 

 $ (23,790 )

 

 $ (18,334 )

 

 $ (33,163 )

Income tax expense (benefit)

 

 

 (183 )

 

 

 (2,649 )

 

 

 (1,773 )

 

 

 (5,710 )

Interest expense

 

 

 521

 

 

 

 486

 

 

 

 2,011

 

 

 

 956

 

Depreciation & Amortization

 

 

 433

 

 

 

 166

 

 

 

 1,745

 

 

 

 548

 

Amortization of debt discount

 

 

 495

 

 

 

 1,165

 

 

 

 7,938

 

 

 

 2,148

 

Amortization of debt discount, related party

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 95

 

EBITDA

 

 

 15,640

 

 

 

 (24,622 )

 

 

 (8,413 )

 

 

 (35,126 )

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock based compensation

 

 

 7,847

 

 

 

 7,558

 

 

 

 28,352

 

 

 

 21,351

 

Loss on impairment

 

 

 -

 

 

 

 18,120

 

 

 

 -

 

 

 

 18,120

 

(Income) loss from investments, net

 

 

 118

 

 

 

 841

 

 

 

 1,140

 

 

 

 (3,420 )

Change in fair value of derivative liabilities

 

 

 (28,669 )

 

 

 -

 

 

 

 (28,669 )

 

 

 -

 

Other (income) expense, net

 

 

 3,346

 

 

 

 (1,291 )

 

 

 2,433

 

 

 

 (3,385 )

Foreign exchange adjustments

 

 

 24

 

 

 

 (251 )

 

 

 111

 

 

 

 261

 

Adjusted EBITDA

 

 $ (1,694 )

 

 $ 355

 

 

 $ (5,046 )

 

 $ (2,199 )

 

 
11