LAS
VEGAS, Aug. 15, 2022 /PRNewswire/ -- Remark
Holdings, Inc. (NASDAQ: MARK), a diversified global technology
company with leading artificial intelligence ("AI") solutions and
digital media properties today announced its financial results for
the fiscal quarter ended June 30,
2022. For complete details of the condensed consolidated
interim financial statements and accompanying management's
discussion and analysis for the three and six months ended
June 30, 2022, please see Remark's
filings with the SEC (www.sec.gov).
Management Commentary
"The company's second quarter was highlighted by additional
partnerships and the joining of industry experts to expand its
sales channels significantly," noted Kai-Shing Tao, Chairman and Chief Executive
Officer of Remark Holdings. "Our unique value proposition and the
innovation inherent in our AI solutions continued to satisfy the
different needs of our customers. Looking ahead, we are building a
pipeline of opportunities across the U.S. with our SSP-based
products with a new streaming fee model and are continuing to
advance our deployment activities in China. Taken together, we believe these
activities lay the groundwork for continued momentum across our
businesses as we seek to deliver first-class AI solutions to our
customers."
Second Quarter 2022 Business Highlights
- During the second quarter, Remark continued to build its data
intelligence business using its Smart Safety Platform ("SSP") and
related Smart Sentry units that work with the SSP. Based on initial
trial success, the company is building a stream of business
opportunities with government agencies, public transportation
operators, railways, and sports arenas in the US and UK while
continuing to grow its business in Asia.
- China Mobile continued to
implement Remark's KanKan AI Platform and Smart Queueing System
throughout their retail locations, although the pace of
implementation has been significantly slowed due to ongoing
lockdowns and measures taken by the Chinese government to achieve a
zero-COVID status. Most stores are still closed nationwide and the
project will resume once the strict lockdowns are lifted.
- During the second quarter, Smart Campus solutions were deployed
across more than 60 campuses bringing total installations to more
than 460 campuses. New functions of the Smart Campus solutions
provided a leading management platform for student development,
providing a rich set of scenario-based software and AIoT tools for
school administrators and families to assemble comprehensive
student profiles targeting individual growth. This new product has
been installed in more than 100 schools and is helping over 100,000
students daily.
- Remark's Smart Construction solutions contributed $1.1 million of revenue as the company completed
installations at 14 construction sites, bringing total
installations to 67 sites and, thereby, not only completing the
initial contract but also securing and partially fulfilling
additional contracts on more construction sites. There are an
additional 30+ construction sites targeted to be finished in the
third quarter of 2022.
Fiscal Second Quarter 2022 Financial Results
- Revenue for the fiscal second quarter of 2022 totaled
$2.6 million, down from $4.0 million during the fiscal second quarter of
2021.
-
- Revenue contributed by Remark's U.S. businesses decreased by
approximately $2.5, primarily as a
result of $2.3 million of revenue
recorded on an AI data intelligence services project for a daily
fantasy sports client in the second quarter of 2021 that was not
repeated in the current year period.
- Revenue from China grew by
$1.0 million to $2.5 million due to the completion of larger
projects in the current-year period, including continued deployment
of smart banking systems, Smart Campus deployments at schools, as
well as construction projects.
- Gross profit decreased $1.1
million quarter over quarter to $0.7
million during the second quarter of 2022. The overall gross
profit margin for the second quarter of 2022 was 27.8%, compared to
43.9% in the same period in 2021.
- The company incurred an operating loss of $4.0 million in the second quarter of 2022
compared to an operating loss of $2.5
million in the comparable quarter of 2021.
- Net loss totaled $12.5 million,
or $0.12 per diluted share in the
second quarter ended June 30, 2022,
compared to a net loss of $1.5
million, or $0.02 per diluted
share in the second quarter ended June 30,
2021.
- On June 30, 2022, the cash
balance totaled $1.1 million,
compared to a cash balance of $14.2
million on December 31, 2021.
Net cash used in operating activities was $11.1 million during the six months ended
June 30, 2022.
Conference Call Information
Management will hold a conference call this afternoon at
4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss the Company's
financial results and provide an update on recent business
developments. A question and answer session will follow
management's presentation.
The live conference may be accessed via telephone or online
webcast.
Toll-Free Number: 800.289.0720
International Number: 323.701.0160
Conference ID: 7189339
Online Webcast:
https://viavid.webcasts.com/starthere.jsp?ei=1562633&tp_key=7bdfa0774e
Participants are advised to log in for the live webcast 10
minutes prior to the scheduled start time. A replay of the call
will be available after 7:30 p.m. Eastern
time on the same day through August
20, 2022.
Toll-Free Replay Number: 844.512.2921
International Replay Number: 412.317.6671
Replay ID: 7189339
About Remark Holdings, Inc.
Remark Holdings, Inc. (NASDAQ: MARK) delivers an integrated
suite of AI solutions that enable businesses and organizations to
solve problems, reduce risk and deliver positive outcomes. The
company's easy-to-install AI products are being rolled out in
various retail, public safety, and workplace applications. The
company also owns and operates an e-commerce digital media property
focused on a luxury beach lifestyle. The company's corporate
headquarters and U.S. operations are based in Las Vegas, Nevada, and it also maintains
operations in London, England, and
Shanghai, China. The operations of
the variable interest entities that the company consolidates are
headquartered in Chengdu, China,
with additional offices in Hangzhou. For more information, please visit
the company's website at www.remarkholdings.com.
Forward-Looking Statements
This press release may contain forward-looking statements,
including information relating to future events, future financial
performance, strategies, expectations, competitive environment, and
regulations. Words such as "may," "should," "could," "would,"
"predicts," "potential," "continue," "expects," "anticipates,"
"future," "intends," and "plans," "believes," "estimates," and
similar expressions, as well as statements in the future tense,
identify forward-looking statements. These statements involve known
and unknown risks, uncertainties, and other factors, including
those discussed in Part I, Item 1A. Risk Factors in Remark
Holdings' Annual Report on Form 10-K and Remark Holdings' other
filings with the SEC. Any forward-looking statements reflect Remark
Holdings' current views concerning future events, are based on
assumptions, and are subject to risks and uncertainties. Given such
uncertainties, you should not rely on any forward-looking
statements, which represent Remark Holdings' estimates and
assumptions only as of the date hereof. Except as required by law,
Remark Holdings undertakes no obligation to update or revise
publicly any forward-looking statements after the date hereof,
whether as a result of new information, future events, or
otherwise.
Company Contacts
Fay Tian
Vice President of Investor Relations
F.Tian@remarkholdings.com
(+1) 626-623-2000
(+86) 13702108000
(+65) 8715-8007
REMARK HOLDINGS,
INC. AND SUBSIDIARIES
|
Condensed Consolidated
Balance Sheets
|
(dollars in thousands,
except share and per share amounts)
|
|
|
June 30,
2022
|
|
December 31,
2021
|
|
(Unaudited)
|
|
|
Assets
|
|
|
|
Cash
|
$
1,063
|
|
$
14,187
|
Trade accounts
receivable, net
|
9,483
|
|
10,267
|
Inventory,
net
|
1,489
|
|
1,346
|
Investment in
marketable securities
|
12,532
|
|
42,349
|
Prepaid expense and
other current assets
|
6,812
|
|
6,363
|
Total current
assets
|
31,379
|
|
74,512
|
Property and
equipment, net
|
1,442
|
|
357
|
Operating lease
assets
|
181
|
|
194
|
Other long-term
assets
|
359
|
|
440
|
Total
assets
|
$
33,361
|
|
$
75,503
|
Liabilities
|
|
|
|
Accounts
payable
|
$
8,568
|
|
$
10,094
|
Advances from related
parties
|
1,517
|
|
—
|
Accrued expense and
other current liabilities
|
5,665
|
|
5,963
|
Contract
liability
|
415
|
|
576
|
Notes payable, net of
unamortized discount and debt issuance cost of $320 and
$2,189 at June 30, 2022 and December 31, 2021,
respectively
|
23,478
|
|
27,811
|
Total current
liabilities
|
39,643
|
|
44,444
|
Long-term
debt
|
—
|
|
—
|
Operating lease
liabilities, long-term
|
40
|
|
25
|
Total
liabilities
|
39,683
|
|
44,469
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
Stockholders' Equity
(Deficit)
|
|
|
|
Preferred stock,
$0.001 par value; 1,000,000 shares authorized; zero
issued
|
—
|
|
—
|
Common stock, $0.001
par value; 175,000,000 shares authorized; 105,157,769
shares issued and outstanding at each of June 30, 2022 and December
31, 2021
|
105
|
|
105
|
Additional
paid-in-capital
|
365,263
|
|
364,239
|
Accumulated other
comprehensive loss
|
(692)
|
|
(270)
|
Accumulated
deficit
|
(370,998)
|
|
(333,040)
|
Total stockholders'
equity (deficit)
|
(6,322)
|
|
31,034
|
Total liabilities and
stockholders' equity (deficit)
|
$
33,361
|
|
$
75,503
|
REMARK HOLDINGS,
INC. AND SUBSIDIARIES
|
Unaudited Condensed
Consolidated Statements of Operations and Comprehensive
Loss
|
(dollars in thousands,
except per share amounts)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Revenue, including
amounts from China Business
Partner
|
$
2,558
|
|
$
4,016
|
|
$
7,225
|
|
$
8,422
|
Cost and
expense
|
|
|
|
|
|
|
|
Cost of revenue
(excluding depreciation and
amortization)
|
1,847
|
|
2,252
|
|
6,117
|
|
5,004
|
Sales and
marketing
|
188
|
|
398
|
|
336
|
|
1,399
|
Technology and
development
|
508
|
|
1,305
|
|
963
|
|
2,855
|
General and
administrative
|
3,933
|
|
2,482
|
|
7,872
|
|
5,179
|
Depreciation and
amortization
|
37
|
|
49
|
|
78
|
|
115
|
Total cost and
expense
|
6,513
|
|
6,486
|
|
15,366
|
|
14,552
|
Operating
loss
|
(3,955)
|
|
(2,470)
|
|
(8,141)
|
|
(6,130)
|
Other income
(expense)
|
|
|
|
|
|
|
|
Interest
expense
|
(1,774)
|
|
(380)
|
|
(3,960)
|
|
(615)
|
Change in fair value
of warrant liability
|
—
|
|
1,322
|
|
—
|
|
(288)
|
Loss on
investment
|
(6,952)
|
|
—
|
|
(26,008)
|
|
—
|
Other gain (loss),
net
|
152
|
|
(24)
|
|
151
|
|
20
|
Total other income
(expense), net
|
(8,574)
|
|
918
|
|
(29,817)
|
|
(883)
|
Loss before income
taxes
|
(12,529)
|
|
(1,552)
|
|
(37,958)
|
|
(7,013)
|
Provision for income
taxes
|
—
|
|
(9)
|
|
—
|
|
(9)
|
Net loss
|
$
(12,529)
|
|
$
(1,561)
|
|
$
(37,958)
|
|
$
(7,022)
|
Other comprehensive
income
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
(424)
|
|
13
|
|
(422)
|
|
55
|
Comprehensive
loss
|
$
(12,953)
|
|
$
(1,548)
|
|
$
(38,380)
|
|
$
(6,967)
|
|
|
|
|
|
|
|
|
Weighted-average shares
outstanding, basic and
diluted
|
105,157,769
|
|
99,917,452
|
|
105,157,769
|
|
99,838,456
|
|
|
|
|
|
|
|
|
Net loss per share,
basic and diluted
|
$
(0.12)
|
|
$
(0.02)
|
|
$
(0.36)
|
|
$
(0.07)
|
|
|
|
|
|
|
|
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/remark-holdings-announces-fiscal-second-quarter-2022-financial-results-301606018.html
SOURCE Remark Holdings, Inc.