FINANCIAL
RESULTS BY COMPANY
The
following table shows, for the periods indicated, the financial results (dollar amounts in thousands) attributable to each of
our consolidated companies.
|
|
Six months ended June 30, 2020
|
|
|
|
OmniMetrix
|
|
|
Acorn
|
|
|
Total Continuing Operations
|
|
Revenue
|
|
$
|
2,806
|
|
|
|
$ ―
|
|
|
$
|
2,806
|
|
Cost of sales
|
|
|
862
|
|
|
|
―
|
|
|
|
862
|
|
Gross profit
|
|
|
1,944
|
|
|
|
―
|
|
|
|
1,944
|
|
Gross profit margin
|
|
|
69
|
%
|
|
|
|
|
|
|
69
|
%
|
R&D expenses
|
|
|
293
|
|
|
|
―
|
|
|
|
293
|
|
Selling, general and administrative expenses
|
|
|
1,502
|
|
|
|
445
|
|
|
|
1,947
|
|
Operating income (loss)
|
|
$
|
149
|
|
|
$
|
(445
|
)
|
|
$
|
(296
|
)
|
|
|
Six months ended June 30, 2019
|
|
|
|
OmniMetrix
|
|
|
Acorn
|
|
|
Total Continuing Operations
|
|
Revenue
|
|
$
|
2,704
|
|
|
$
|
—
|
|
|
$
|
2,704
|
|
Cost of sales
|
|
|
952
|
|
|
|
―
|
|
|
|
952
|
|
Cost of sales - other
|
|
|
30
|
|
|
|
—
|
|
|
|
30
|
|
Gross profit
|
|
|
1,722
|
|
|
|
—
|
|
|
|
1,722
|
|
Gross profit margin
|
|
|
64
|
%
|
|
|
|
|
|
|
64
|
%
|
R&D expenses
|
|
|
283
|
|
|
|
—
|
|
|
|
283
|
|
Selling, general and administrative expenses
|
|
|
1,457
|
|
|
|
452
|
|
|
|
1,909
|
|
Operating loss
|
|
$
|
(18
|
)
|
|
$
|
(452
|
)
|
|
$
|
(470
|
)
|
|
|
Three months ended June 30, 2020
|
|
|
|
OmniMetrix
|
|
|
Acorn
|
|
|
Total Continuing Operations
|
|
Revenue
|
|
$
|
1,468
|
|
|
|
$ ―
|
|
|
$
|
1,468
|
|
Cost of Sales
|
|
|
446
|
|
|
|
―
|
|
|
|
446
|
|
Gross profit
|
|
|
1,022
|
|
|
|
―
|
|
|
|
1,022
|
|
Gross profit margin
|
|
|
70
|
%
|
|
|
|
|
|
|
70
|
%
|
R&D expenses
|
|
|
138
|
|
|
|
―
|
|
|
|
138
|
|
Selling, general and administrative expenses
|
|
|
684
|
|
|
|
222
|
|
|
|
906
|
|
Operating income (loss)
|
|
$
|
200
|
|
|
$
|
(222
|
)
|
|
$
|
(22
|
)
|
|
|
Three months ended June 30, 2019
|
|
|
|
OmniMetrix
|
|
|
Acorn
|
|
|
Total Continuing Operations
|
|
Revenue
|
|
$
|
1,377
|
|
|
$
|
—
|
|
|
$
|
1,377
|
|
Cost of Sales
|
|
|
476
|
|
|
|
—
|
|
|
|
476
|
|
Gross profit
|
|
|
901
|
|
|
|
—
|
|
|
|
901
|
|
Gross profit margin
|
|
|
65
|
%
|
|
|
|
|
|
|
65
|
%
|
R&D expenses
|
|
|
139
|
|
|
|
—
|
|
|
|
139
|
|
Selling, general and administrative expenses
|
|
|
722
|
|
|
|
243
|
|
|
|
965
|
|
Operating loss
|
|
$
|
(40
|
)
|
|
$
|
(243
|
)
|
|
$
|
(203
|
)
|
BACKLOG
As
of June 30, 2020, our backlog of work to be completed (primarily deferred revenue) at our OmniMetrix subsidiary totaled approximately
$4.5 million.
RECENT
DEVELOPMENTS
On
April 24, 2020, Acorn Energy, Inc. received Paycheck Protection Program (“PPP”) loan proceeds in the amount of $41,600.
On
April 30, 2020, OmniMetrix, LLC received PPP loan proceeds in the amount $419,800.
Under
the PPP of the Coronavirus Aid, Relief and Economic Security Act (the “Act”), up to the full principal amount of a
loan and any accrued interest can be forgiven if the borrower uses all of the loan proceeds for forgivable purposes (payroll,
benefits, lease/mortgage payments and/or utilities) required under the Act and any rule, regulation, or guidance issued by the
SBA pursuant to the Act (collectively, the “Forgiveness Provisions”). The amount of forgiveness of the PPP loan depends
on the borrower’s payroll costs over either an eight-week or twenty-four-week period beginning on the date of funding. Any
processes or procedures established under the Forgiveness Provisions must be followed and any requirements of the Forgiveness
Provisions must be fully satisfied to obtain such loan forgiveness. Pursuant to the provisions of the Act, the first six monthly
payments of principal and interest will be deferred. Interest will accrue during the deferment period. The borrower must pay principal
and interest payments on the fifth day of each month beginning seven months from the date of the applicable promissory note.
While
we fully anticipate that Acorn and OmniMetrix will each comply with their applicable Forgiveness Provisions and qualify for forgiveness
of their respective loans, there can be no assurance that such loan forgiveness will be obtained. If no portion of the Acorn PPP
loan is forgiven under the Forgiveness Provisions, the monthly payments on that loan will be in the amount of $2,330 each; if
no portion of the OmniMetrix PPP loan is forgiven under the Forgiveness Provisions, the monthly payments on that loan will be
in the amount of $23,510 each. If any portion of a loan is forgiven under the Forgiveness Provisions, the payments will be in
equal amounts which are sufficient to repay all principal and interest over the remaining term of the loan. The lender will apply
each installment payment first to pay interest accrued to the day the lender receives the payment, then to bring principal current,
then to pay any late fees, and will apply any remaining balance to reduce principal. All remaining principal and accrued interest
is due and payable two years from the date of the applicable promissory note. In any event any payment is not made within ten
days of the due date, the borrower will pay the lender a late charge in the amount not to exceed 5% of the payment. The borrower
may prepay the principal at any time without penalty. Upon default, the loan shall bear interest at 6% per year until paid in
full.
On
April 28, 2020, we entered into a new agreement for data hosting and business continuity services, replacing an expiring agreement
with the same vendor, effective May 1, 2020. The agreement has a twelve-month term and the total payments under this agreement
are $148,000 in the aggregate. This represents an increase of $21,000 for additional services under this agreement from the prior
twelve-month period.
On
May 5, 2020, 2,142,857 warrants with a book value of $1,018,000 expired in accordance with their terms.
OVERVIEW
AND TREND INFORMATION
Acorn
Energy, Inc. (“Acorn” or “the Company”) is a holding company focused on technology driven solutions for
energy infrastructure asset management. We provide the following services and products through our OmniMetrixTM, LLC
(“OmniMetrix”) subsidiary:
|
●
|
Power
Generation (“PG”) monitoring. OmniMetrix’s PG activities provide wireless remote monitoring and control
systems and services for critical assets as well as Internet of Things applications. The PG activities includes monitoring
on industrial air compressors and dryers and a new line of annunciators.
|
|
|
|
|
●
|
Cathodic
Protection (“CP”) monitoring. OmniMetrix’s CP activities provide for remote monitoring of cathodic protection
systems on gas pipelines for gas utilities and pipeline companies.
|
Each
of our PG and CP activities represents a reportable segment. The following analysis should be read together with the segment information
provided in Note 9 to the interim unaudited condensed consolidated financial statements included in this quarterly report.
OmniMetrix
OmniMetrix
LLC is a Georgia limited liability company based in Buford, Georgia that develops and markets wireless remote monitoring and control
systems and services for multiple markets in the Internet of Things (“IoT”) ecosystem: critical assets (including
stand-by power generators, pumps, pumpjacks, light towers, turbines, compressors, as well as other industrial equipment) as well
as cathodic protection for the pipeline industry (gas utilities and pipeline companies). Acorn owns 99% of OmniMetrix with 1%
owned by the former CEO of OmniMetrix.
Following
the emergence of machine-to-machine (M2M) and Internet of Things (IoT) applications whereby companies aggregate multiple sensors
and monitors into a simplified dashboard for customers, OmniMetrix believes it plays a key role in this new economic ecosystem.
In addition, OmniMetrix sees a rapidly growing need for backup power infrastructure to secure critical military, government, and
private sector assets against emergency events including terrorist attacks, natural disasters, and cybersecurity threats. As residential
and industrial standby generators, turbines, compressors, pumps, pumpjacks, light towers and other industrial equipment are part
of the critical infrastructure increasingly becoming monitored in Internet of Things applications, and given that OmniMetrix monitors
all major brands of critical equipment, OmniMetrix believes it is well-positioned as a competitive participant in this new market.
Sales
of OmniMetrix monitoring systems include the sale of equipment and of monitoring services. Revenue (and related costs) associated
with sale of equipment are recorded to deferred revenue (and deferred charges) upon shipment for PG and CP monitoring units. Revenue
and related costs with respect to the sale of equipment are recognized over the estimated life of the units which are currently
estimated to be three years. Revenues from the prepayment of monitoring fees (generally paid twelve months in advance) are initially
recorded as deferred revenue upon receipt of payment from the customer and then amortized to revenue over the monitoring service
period.
Results
of Operations
The
following table sets forth certain information with respect to the consolidated results of operations of the Company for the six-month
periods ended June 30, 2020 and 2019, including the percentage of total revenues during each period attributable to selected components
of the operations statement data and for the period-to-period percentage changes in such components. For segment data, see Notes
9 and 10 to the Unaudited Condensed Consolidated Financial Statements included in this quarterly report.
|
|
Six months ended June 30,
|
|
|
|
2020
|
|
|
2019
|
|
|
Change
|
|
|
|
($,000)
|
|
|
% of revenues
|
|
|
($,000)
|
|
|
% of revenues
|
|
|
from 2019 to 2020
|
|
Revenue
|
|
$
|
2,806
|
|
|
|
100
|
%
|
|
$
|
2,704
|
|
|
|
100
|
%
|
|
|
4
|
%
|
Cost of sales
|
|
|
862
|
|
|
|
31
|
%
|
|
|
982
|
|
|
|
36
|
%
|
|
|
(12
|
)%
|
Gross profit
|
|
|
1,944
|
|
|
|
69
|
%
|
|
|
1,722
|
|
|
|
64
|
%
|
|
|
13
|
%
|
R&D expense
|
|
|
293
|
|
|
|
10
|
%
|
|
|
283
|
|
|
|
10
|
%
|
|
|
4
|
%
|
SG&A expense
|
|
|
1,947
|
|
|
|
69
|
%
|
|
|
1,909
|
|
|
|
71
|
%
|
|
|
2
|
%
|
Operating loss
|
|
|
(296
|
)
|
|
|
(11
|
)%
|
|
|
(470
|
)
|
|
|
(17
|
)%
|
|
|
(37
|
)%
|
Finance expense, net
|
|
|
(20
|
)
|
|
|
* %
|
|
|
|
5
|
|
|
|
* %
|
|
|
|
(500
|
)%
|
Loss before income taxes
|
|
|
(316
|
)
|
|
|
(11
|
)%
|
|
|
(465
|
)
|
|
|
(17
|
)%
|
|
|
(32
|
)%
|
Income tax expense
|
|
|
―
|
|
|
|
―
|
|
|
|
—
|
|
|
|
—
|
%
|
|
|
―
|
|
Net loss
|
|
|
(316
|
)
|
|
|
(11
|
)%
|
|
|
(465
|
)
|
|
|
(17
|
)%
|
|
|
(32
|
)%
|
Non-controlling interests share of net loss
|
|
|
―
|
|
|
|
―%
|
|
|
|
29
|
|
|
|
1
|
%
|
|
|
(100
|
)%
|
Net loss attributable to Acorn Energy, Inc.
|
|
$
|
(316
|
)
|
|
|
(11
|
)%
|
|
$
|
(436
|
)
|
|
|
(16
|
)%
|
|
|
(28
|
)%
|
*result
is less than 1%.
The
following table sets forth certain information with respect to the consolidated results of operations of the Company for the three-month
periods ended June 30, 2020 and 2019, including the percentage of total revenues during each period attributable to selected components
of the operations statement data and for the period-to-period percentage changes in such components. For segment data, see Notes
9 and 10 to the unaudited condensed consolidated financial statements included in this quarterly report.
|
|
Three months ended June 30,
|
|
|
|
2020
|
|
|
2019
|
|
|
Change
|
|
|
|
($,000)
|
|
|
% of revenues
|
|
|
($,000)
|
|
|
% of revenues
|
|
|
from
2019 to 2020 favorable (unfavorable)
|
|
Revenue
|
|
$
|
1,468
|
|
|
|
100
|
%
|
|
$
|
1,377
|
|
|
|
100
|
%
|
|
|
7
|
%
|
Cost of sales
|
|
|
446
|
|
|
|
30
|
%
|
|
|
476
|
|
|
|
35
|
%
|
|
|
6
|
%
|
Gross profit
|
|
|
1,022
|
|
|
|
70
|
%
|
|
|
901
|
|
|
|
65
|
%
|
|
|
13
|
%
|
R&D expenses
|
|
|
138
|
|
|
|
9
|
%
|
|
|
139
|
|
|
|
10
|
%
|
|
|
1
|
%
|
SG&A expenses
|
|
|
906
|
|
|
|
62
|
%
|
|
|
965
|
|
|
|
70
|
%
|
|
|
6
|
%
|
Operating loss
|
|
|
(22
|
)
|
|
|
(1
|
)%
|
|
|
(203
|
)
|
|
|
(15
|
)%
|
|
|
89
|
%
|
Finance expense, net
|
|
|
(10
|
)
|
|
|
(1
|
)%
|
|
|
(1
|
)
|
|
|
* %
|
|
|
|
(900
|
)%
|
Loss before income taxes
|
|
|
(32
|
)
|
|
|
(2
|
)%
|
|
|
(204
|
)
|
|
|
(15
|
)%
|
|
|
84
|
%
|
Income tax expense
|
|
|
―
|
|
|
|
―%
|
|
|
|
—
|
|
|
|
—
|
%
|
|
|
―
|
|
Net loss
|
|
|
(32
|
)
|
|
|
(2
|
)%
|
|
|
(204
|
)
|
|
|
(15
|
)%
|
|
|
84
|
%
|
Non-controlling interests share of net loss
|
|
|
(1
|
)
|
|
|
* %
|
|
|
|
5
|
|
|
|
* %
|
|
|
|
(120
|
)%
|
Net loss attributable to Acorn Energy, Inc.
|
|
$
|
(33
|
)
|
|
|
(2
|
)%
|
|
$
|
(199
|
)
|
|
|
(14
|
)%
|
|
|
83
|
%
|
*result
is less than 1%.
Revenue.
OmniMetrix has two divisions: PG and CP. In the six months ended June 30, 2020, OmniMetrix recorded revenue of $2,806,000
($2,371,000 in its PG activities and $435,000 in its CP activities) as compared to revenue of $2,704,000 recorded in the six months
ended June 30, 2019 ($2,053,000 in its PG activities and $651,000 in its CP activities).
The
increase in revenue of $102,000, or 4%, in the six months ended June 30, 2020 was due to an increase in monitoring revenue of
$283,000, or 18%, offset by a decrease in hardware revenue of $181,000, or 16%. The increase in monitoring revenue from $1,570,000
in the first six months of 2019 to $1,853,000 in the first six months of 2020 is the result of an increase in the number of units
being monitored. The decrease in hardware revenue is primarily due to a decrease in the CP segment of $225,000 as a result of
the longer sales and closing cycle of a CP sale compared to a PG sale and the impact of COVID-19 on our ability to meet with potential
customers and to act timely and effectively on sales leads. A CP sales cycle can take twelve to eighteen months from customer
introduction to closing. We have had a fully staffed CP sales team since the end of 2019 and our new sales director started in
January 2020; however, the length of our CP sales cycle has been negatively impacted by restrictions related to COVID-19.
Revenue
increased by $91,000 or 7%, from $1,377,000 in the second quarter of 2019 to $1,468,000 in the second quarter of 2020. OmniMetrix’s
increased revenue during the quarter was primarily attributable to increased monitoring which increased $154,000, or 19% from
$804,000 in the second quarter of 2019 to $958,000 in the second quarter of 2020. This increase was offset by a decrease in hardware
revenue of $63,000, or 11%. These fluctuations are attributed to the same reasons as the increase in the six-month period ended
June 30, 2020 discussed above.
Gross
Profit. Gross profit during the six months ended June 30, 2020 was $1,944,000 reflecting a gross margin of 69% on revenue
compared with a gross profit of $1,722,000 reflecting a 64% gross margin in the six months ended June 30, 2019. The increased
gross profit in 2020 was due to a change in the revenue mix with a higher percentage of our total revenue being monitoring revenue
which has a higher gross margin. Gross margin on hardware revenue for the six months ended June 30, 2020 was 40%, which was essentially
flat as compared to 39% for the six months ended June 30, 2019. Gross margin on monitoring revenue remained strong at 84% during
the six months ended June 30, 2020 as compared to 83% for the six months ended June 30, 2019.
OmniMetrix’s
gross profit increased $121,000, or 13%, from $901,000 in the three months ended June 30, 2019 to $1,022,000 in the three months
ended June 30, 2020.
Gross
margin on hardware revenue for the three months ended June 30, 2020 was 42%, which was a 2% improvement as compared to 40% for
the three months ended June 30, 2019. Gross margin on monitoring revenue remained strong at 84% during the three months ended
June 30, 2020, which was flat as compared to 84% for the three months ended June 30, 2019.
Research
and development expenses. During the six months ended June 30, 2020, OmniMetrix recorded $293,000 of R&D expense as compared
to $283,000 in the six months ended June 30, 2019. During the three months ended June 30, 2020 and 2019, R&D expense was $138,000
and $139,000, respectively. The increase in R&D expense in the year-to-date period of 2020 is related to the continued development
of next generation PG and CP products and exploration into new possible product lines. We expect a moderate increase in R&D
expense throughout 2020 as we continue to work on certain initiatives to redesign products and expand product lines to increase
the level of innovation and to reduce their costs in order to increase our future margins.
Selling,
general and administrative expenses “SG&A”. During the six months ended June 30, 2020, OmniMetrix recorded
$1,502,000 of SG&A costs compared to SG&A costs of $1,457,000 in the six months ended June 30, 2019, an increase of $45,000
or 3%. This increase was primarily due to increases in occupancy expense (in 2019 these expenses were primarily applied to a restructuring
accrual), and personnel costs offset by a reduction in sales tax expenses.
For
the three months ended June 30, 2020, SG&A expenses decreased $38,000, or 5%, to $684,000 from $722,000 for the three months
ended June 30, 2019, primarily due to a decrease in travel expenses related to the restrictions of COVID-19. We anticipate that
our annual SG&A costs throughout 2020 will increase approximately 15% due to having a fully staffed sales team and because
of our continuing investments in our IT infrastructure.
Corporate
Corporate
selling, general and administrative (“SG&A”) expense of $445,000 in the first six months of 2020 reflected a decrease
of $7,000, or 2%, from the $452,000 of SG&A expense reported in the first six months of 2019, which is essentially flat year
over year. SG&A expense for the three months ended June 30, 2020 decreased $21,000, or 9%, to $222,000 from $243,000 for the
three months ended June 30, 2019, primarily due to the timing of certain expenses. Second quarter 2020 SG&A expense was $222,000,
compared to first quarter 2020 SG&A expense of $223,000. We do not expect the quarterly corporate overhead to change materially
except as may be required to support the growth of our OmniMetrix subsidiary.
Net
loss attributable to Acorn Energy. We recognized a net loss attributable to Acorn shareholders of $316,000 in the first six
months of 2020 compared to a net loss of $436,000 in the first six months of 2019. Our loss in 2020 is comprised of net income
at OmniMetrix of $133,000 plus corporate expense of $449,000.
We
recognized a net loss attributable to Acorn shareholders of $33,000 in the three months ended June 30, 2020 compared to a net
loss of $199,000 in the three months ended June 30, 2019. Our loss in the second quarter 2020 is comprised of net income at OmniMetrix
of $190,000 offset by corporate expense of $222,000 plus a $1,000 attributed to the non-controlling interest share of our income
in Omnimetrix.
Liquidity
and Capital Resources
At
June 30, 2020, we had negative working capital of $282,000. Our working capital includes approximately $1,760,000 of cash, deferred
revenue of approximately $3,115,000 and $180,000 representing the current portion of our PPP loan which we expect to be substantially
forgiven. The deferred revenue does not require significant cash outlay for the revenue to be recognized.
During
the first six months of 2020, our OmniMetrix subsidiary provided $528,000 from operations while our corporate headquarters
used $450,000 during the same period.
We
invested $88,000 in software and $3,000 in patent related expenses.
Net
cash of $526,000 was provided by financing activities during the first six months of 2020 which was $19,000 in proceeds from the
exercise of stock options, net proceeds from borrowings on our line of credit of $45,000 and proceeds from our PPP loan of $462,000.
See
discussion of the proceeds we received from the PPP loan above under Recent Developments.
Omnimetrix
Line of Credit
In
March 2019, OmniMetrix reinstated its Loan and Security Agreement providing OmniMetrix with access to accounts receivable formula-based
financing of the lesser of 75% of eligible receivables or $1 million. Debt incurred under this financing arrangement bears interest
at the greater of 6% and prime (3.25% at August 9, 2020) plus 1.5% per year. In addition, OmniMetrix is to pay a monthly service
charge of 0.75% of the average aggregate principal amount outstanding for the prior month, for a current effective rate of interest
on advances of 15%. OmniMetrix also agreed to continue to maintain a minimum loan balance of $150,000 in its line-of-credit with
the lender for a minimum of two years beginning March 1, 2019. The monthly service charge and interest is calculated on the greater
of the outstanding balance or $150,000. From time to time, the balance outstanding may fall below $150,000 based on collections
applied against the loan balance and the timing of loan draws.
OmniMetrix
had an outstanding balance of $181,000 at June 30, 2020, pursuant to the Loan and Security Agreement.
Rights
Offering
On
June 28, 2019, we completed a rights offering, raising $2,186,000 in proceeds, net of $210,000 in expenses. Pursuant to the rights
offering, our securityholders and parties to a backstop agreement purchased 9,975,553 shares of our common stock for $0.24 per
share.
Under
the terms of the rights offering, each right entitled securityholders as of June 3, 2019, the record date for the rights offering,
to purchase 0.312 shares of our common stock at a subscription price of $0.24 per whole share. No fractional shares were issued.
The closing price of our common stock on the record date of the rights offering was $0.2925. Distribution of the rights commenced
on June 6, 2019 and were exercisable through June 24, 2019.
In
connection with the rights offering, we entered into a backstop agreement with certain of our directors and Leap Tide Capital
Management LLC, the sole manager of which is our President and CEO, pursuant to which they agreed to purchase from us any and
all unsubscribed shares of common stock in the rights offering, subject to the terms, conditions and limitations of the backstop
agreement. The backstop purchasers did not receive any compensation or other consideration for entering into or consummating the
backstop agreement.
On
July 1, 2019, we utilized a portion of the rights offering proceeds to complete the planned reacquisition of a 19% interest in
our OMX Holdings, Inc. subsidiary (“Holdings”) for $1,273,000 discussed below.
The
balance of the rights offering net proceeds provided OmniMetrix with additional sales and marketing resources to facilitate expansion
into additional geographic markets and new product applications, to support next-generation product development and for general
working capital purposes.
Purchase
of Non-Controlling Interest
In
2015, one of our then-current directors (the “Investor”) acquired a 20% interest in our OMX Holdings, Inc. subsidiary
(“Holdings”) through the purchase of $1,000,000 of OmniMetrix Preferred Stock (“Preferred Stock”). Holdings
is the holder of 100% of the membership interests of OmniMetrix, LLC through which we operate our Power Generation and Cathodic
Protection monitoring activities. The $1,000,000 investment by the Investor was recorded as an increase in non-controlling interests.
On
July 1, 2019, in accordance with terms established in 2015 at the time of the original investment, the Company utilized a portion
of the rights offering proceeds, as discussed above, to repurchase from the Investor the shares of Preferred Stock then held by
the Investor for a purchase price of $1,273,000 (which included $323,000 of unpaid accrued dividends through June 30, 2019). The
repurchase raised the Company’s ownership in Holdings from 80% to 99%, with the remaining 1% owned by the former CEO of
OmniMetrix, LLC.
Other
Liquidity Matters
OmniMetrix
owes Acorn approximately $4,582,000 for loans, accrued interest and expenses advanced to it by Acorn. Such amounts will only be
repaid to Acorn when OmniMetrix is generating sufficient cash to allow such repayment.
We
had approximately $1,760,000 of cash on June 30, 2020, and approximately $1,775,000 on August 9, 2020. On August 9, 2020,
we had $145,000 outstanding on our line of credit and $208,000 available to borrow. We believe that our current
cash plus the cash expected to be generated from operations and borrowing from available lines of credit will provide sufficient
liquidity to finance the operating activities of Acorn and the operations of its operating subsidiaries for at least the next
twelve months.
Contractual
Obligations and Commitments
The
table below provides information concerning obligations under certain categories of our contractual obligations as of June 30,
2020.
CASH
PAYMENTS DUE TO CONTRACTUAL OBLIGATIONS
|
|
Twelve Month Periods Ending June 30,
(in thousands)
|
|
|
|
Total
|
|
|
2020
|
|
|
2021-2022
|
|
|
2023-2024
|
|
|
2025 and thereafter
|
|
Debt *
|
|
$
|
642
|
|
|
$
|
360
|
|
|
$
|
282
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Software agreements
|
|
|
133
|
|
|
|
71
|
|
|
|
62
|
|
|
|
―
|
|
|
|
―
|
|
Operating leases
|
|
|
642
|
|
|
|
100
|
|
|
|
249
|
|
|
|
260
|
|
|
|
33
|
|
Contractual services
|
|
|
157
|
|
|
|
148
|
|
|
|
9
|
|
|
|
—
|
|
|
|
—
|
|
Total contractual cash obligations
|
|
$
|
1,574
|
|
|
$
|
679
|
|
|
$
|
602
|
|
|
$
|
260
|
|
|
$
|
33
|
|
* Includes $462,000 in proceeds from the PPP loan
which we expect to be substantially forgiven.