DENVER, March 22, 2021 /PRNewswire/ -- Akerna (Nasdaq:
KERN), an enterprise software, leading compliance technology
provider and developer of the cannabis industry's first
seed-to-sale enterprise resource planning (ERP) software technology
(MJ Platform®), today reported its unaudited financial results for
the quarter ended December 31,
2020.
"In the December quarter we delivered strong financial results,
with 38 percent software growth year over year and 36 percent
sequential improvement in adjusted EBITDA," said Jessica Billingsley, CEO of Akerna. "With
the recent announced plans to acquire Viridian, we continue to
bolster the strength of our channel connections with existing ERP
providers. As we prepare for a post-legalization landscape
and the industry continues to consolidate and mature, we firmly
believe enterprise capabilities, including comprehensive compliance
solutions and financial reporting integrations, will become
increasingly important to the future leaders of the cannabis
industry."
Quarter Ended December 31, 2020
Financial Highlights
- Software revenue was $3.4
million, up 38% year over year
- Total revenue was $4.1 million,
up 24% year over year
- Gross profit was $2.7 million, up
60% year over year
- Net loss was $12.2 million
compared to a net loss of $3.8
million for the quarter ended December 31, 2019
- Adjusted EBITDA was ($1.9
million) compared to ($2.7
million) for the quarter ended December 31, 2019
- Cash was $17.8 million as of
December 31, 2020
See "Explanation of Non-GAAP Financial Measures"
below
Quarter Ended December 31, 2020
Key Metrics
- Total SaaS ARR of $13.8 million,
up 42% year over year
- Average new MJ Platform order up 52% year over year
- MJ Platform transaction volume up 63% year over year
- Retail order volume up 56% year over year
- Retail order value up 105% year over year
- New Bookings ARR of $0.8
million
Quarter Ended December 31, 2020
Operational Highlights
- Akerna Launches MJ Retail Point of Sale Solution
- November elections open five new markets for Akerna products
and services
- Transitioned to fully remote workforce, closed offices and
lowered operating costs
- Closed $12 million public
offering of common stock
- Transitioned fiscal year-end to December
31
Conference Call Details
Akerna will host a conference call tomorrow, Tuesday, March 23, 2021, at 8:30 a.m. Eastern Time to discuss its financial
results and business highlights. A question-and-answer session will
follow prepared remarks.
Interested parties may listen to the call by dialing:
Toll-Free: 1-877-407-3982
Toll / International: 1-201-493-6780
Conference ID: 13717601
The conference call will also be available via a live,
listen-only webcast and can be accessed through the Investor
Relations section of Akerna's website, https://ir.akerna.com/
To be included on the Company's email distribution list, please
sign up at https://ir.akerna.com/news-events/email-alerts
About Akerna
Akerna (Nasdaq: KERN) is an enterprise
software company focused on compliantly serving the cannabis, hemp,
and CBD industry. First launched in 2010, Akerna has tracked more
than $20 billion in cannabis sales to
date and is the first cannabis software company listed on Nasdaq.
The company's cornerstone technology, MJ Platform, the world's
leading infrastructure as a service platform, powers retailers,
manufacturers, brands, distributors, and cultivators.
For more information, visit https://www.akerna.com/.
Forward Looking Statements
Certain statements made in this release are "forward-looking
statements" within the meaning of the "safe harbor" provisions of
the United States Private Securities Litigation Reform Act of 1995.
When used in this press release, the words "estimates,"
"projected," "expects," "anticipates," "forecasts," "plans,"
"intends," "believes," "seeks," "may," "will," "should," "future,"
"propose" and variations of these words or similar expressions (or
the negative versions of such words or expressions) are intended to
identify forward-looking statements. Such forward-looking
statements include but are not limited to statements regarding our
preparation for a potential post-legalization landscape, our
believe enterprise capabilities, including comprehensive compliance
solutions and financial reporting integrations, will become
increasingly important to the future leaders of the cannabis
industry and the timing for management's conference call in
relation to our quarterly results. These forward-looking statements
are not guarantees of future performance, conditions or results,
and involve a number of significant known and unknown risks,
uncertainties, assumptions, and other important factors, many of
which are outside Akerna's control, that could cause actual results
or outcomes to differ materially from those discussed in the
forward-looking statements. Important factors, among others that
may affect actual results or outcomes, include (i) Akerna's ability
to maintain relationships with customers and suppliers and retain
its management and key employees, (ii) changes in applicable laws
or regulations, (iii) changes in the market place due to the
coronavirus pandemic or other market factors, (iv) and other risks
and uncertainties disclosed from time to time in Akerna's filings
with the U.S. Securities and Exchange Commission, including those
under "Risk Factors" therein. You are cautioned not to place
undue reliance on forward-looking statements. All information
herein speaks only as of the date hereof, in the case of
information about Akerna, or the date of such information, in the
case of information from persons other than Akerna. Akerna
undertakes no duty to update or revise the information contained
herein. Forecasts and estimates regarding Akerna's industry and end
markets are based on sources believed to be reliable; however,
there can be no assurance these forecasts and estimates will prove
accurate in whole or in part.
Explanation of Non-GAAP Financial Measures:
In addition to our results determined in accordance with U.S.
generally accepted accounting principles ("GAAP"), we believe the
following non-GAAP measures are useful in evaluating our operating
performance. We use the following non-GAAP financial information to
evaluate our ongoing operations and for internal planning and
forecasting purposes. We believe that non-GAAP financial
information, when taken collectively, may be helpful to investors
because it provides consistency and comparability with past
financial performance. However, non-GAAP financial information is
presented for supplemental informational purposes only, has
limitations as an analytical tool, and should not be considered in
isolation or as a substitute for financial information presented in
accordance with GAAP.
Investors are cautioned that there are material limitations
associated with the use of non-GAAP financial measures as an
analytical tool. Other companies, including companies in our
industry, may calculate similarly titled non-GAAP measures
differently or may use other measures to evaluate their
performance, all of which could reduce the usefulness of our
non-GAAP financial measures as tools for comparison. We
attempt compensate for these limitations by providing specific
information regarding the GAAP items excluded from these non-GAAP
financial measures.
Investors are encouraged to review the related GAAP financial
measures and the reconciliation of these non-GAAP financial
measures to their most directly comparable GAAP financial measures
and not rely on any single financial measure to evaluate our
business.
Adjusted EBITDA
We believe that Adjusted EBITDA, when considered with the
financial statements determined in accordance with GAAP, is helpful
to investors in understanding our performance and allows for
comparison of our performance and credit strength to our peers.
Adjusted EBITDA should not be considered alternatives to net loss
as determined in accordance with GAAP as indicators of our
performance or liquidity.
We define EBITDA as net loss before interest expense, provision
for income taxes, depreciation and amortization. We calculate
Adjusted EBITDA as EBITDA further adjusted to exclude the effects
of the following items for the reasons set forth below:
- Impairment of long-lived assets, because it's a non-cash,
non-recurring item, which effects the comparability of results of
operations and liquidity;
- Stock-based compensation expense, because this represents a
non-cash charge and our mix of cash and share-based compensation
may differ from other companies, which effects the comparability of
results of operations and liquidity;
- Cost incurred in connection with business combinations that are
required to be expensed as incurred in accordance with GAAP,
because business combination related costs are specific to the
complexity and size of the underlying transactions as well as the
frequency of our acquisition activity these costs are not
reflective of our ongoing operations
- Costs incurred in connection with debt issuance when we elect
the fair value option to account for the debt instrument because if
we had not elected the fair value option such costs would be
recognized as an adjustment to the effective interest and excluded
from EBITDA
- Restructuring costs because we believe these costs are not
representative of operating performance;
- Equity in earnings (losses) of investees because our share of
the operations of investees is not representative of our own
operating performance and may not be monetized for a number of
years; and
- Other non-operating expenses which includes a one-time gain on
asset sale, which effects the comparability of results of
operations and liquidity;
Related Non-GAAP Expense Measure
We reference in our earnings call non-GAAP Operating Expenses.
We believe that this non-GAAP financial measure, when considered
with the financial statements determined in accordance with GAAP,
is helpful to management and investors in understanding our
performance quarter over quarter and to the comparable quarter in
our prior fiscal year by excluding the same items we exclude from
EBITDA to derive Adjusted EBITDA that are included in GAAP
operating expenses, as set forth above (impairment of long-lived
assets, stock-based compensation expense, costs incurred with
business combinations, costs incurred in connection with debt
issuance, restructuring costs and certain other non-operating
expenses, as described above) for the same reasons stated
above-- principally, that these expenses are not, in
management's opinion, easily comparable across reporting periods,
are not reflective of ongoing operations and/or are not
representative of our operating performance.
We define non-GAAP Operating Expenses, as GAAP Operating
Expenses, excluding impairment of long-lived assets, stock-based
compensation expense, costs incurred with business combinations,
costs incurred in connection with debt issuance and restructuring
costs.
This non-GAAP expense measure should not be considered an
alternative to the corresponding GAAP financial measure as
determined in accordance with GAAP as an indicator of our
performance or liquidity. Please review the tables provided
below, for a reconciliation of this non-GAAP expense measure to the
corresponding GAAP financial measure.
Akerna
Corp.
|
Consolidated Balance
Sheet
|
As of December 31,
2020, June 30, 2020 and 2019
|
|
|
December
31
|
|
June
30
|
|
June
30
|
|
2020
|
|
2020
|
|
2019
|
|
(unaudited)
|
|
|
|
|
Assets
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
Cash
|
$
17,840,640
|
|
$
24,155,828
|
|
$
21,867,289
|
Restricted
cash
|
500,000
|
|
500,000
|
|
500,000
|
Accounts
receivable, net
|
1,753,547
|
|
1,861,534
|
|
1,257,274
|
Prepaid expenses
& other current assets
|
2,458,727
|
|
1,215,341
|
|
577,674
|
Total current
assets
|
22,552,914
|
|
27,732,703
|
|
24,202,237
|
|
|
|
|
|
|
Fixed assets, net
|
1,193,433
|
|
131,095
|
|
-
|
Investment, net
|
233,665
|
|
246,308
|
|
-
|
Capitalized software,
net
|
3,925,738
|
|
2,629,304
|
|
-
|
Intangible assets,
net
|
7,388,795
|
|
7,493,975
|
|
-
|
Goodwill
|
41,874,527
|
|
20,254,309
|
|
-
|
Other noncurrent
assets
|
-
|
|
41,925
|
|
-
|
Total
assets
|
$
77,169,072
|
|
$
58,529,619
|
|
$
24,202,237
|
|
|
|
|
|
|
Liabilities and stockholders' equity
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts
Payable, accrued expenses and other current liabilities
|
$
3,188,575
|
|
$
4,861,928
|
|
$
1,818,116
|
Contingent
consideration payable
|
-
|
|
389,000
|
|
-
|
Deferred
revenue
|
843,900
|
|
368,685
|
|
624,387
|
Current portion
of long-term debt
|
11,707,363
|
|
6,135,364
|
|
-
|
Total current
liabilities
|
15,739,838
|
|
11,754,977
|
|
2,442,503
|
|
|
|
|
|
|
Long-term debt,
noncurrent
|
3,895,237
|
|
10,200,236
|
|
-
|
Total
liabilities
|
$
19,635,075
|
|
$
21,955,213
|
|
$
2,442,503
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
|
Preferred
stock
|
-
|
|
-
|
|
-
|
Exchangeable
preferred stock
|
20,405,219
|
|
-
|
|
-
|
Common
stock
|
1,990
|
|
1,321
|
|
1,059
|
Additional
paid-in capital
|
95,090,883
|
|
72,906,924
|
|
47,325,421
|
Accumulated
other comprehensive (loss) income
|
(91,496)
|
|
63,000
|
|
-
|
Accumulated
deficit
|
(57,872,599)
|
|
(41,101,091)
|
|
(25,566,746)
|
Total stockholders'
equity
|
$
57,533,997
|
|
$
31,870,154
|
|
$
21,759,734
|
Noncontrolling interests in
consolidated subsidiary
|
-
|
|
4,704,252
|
|
-
|
Total
stockholders' equity
|
57,533,997
|
|
36,574,406
|
|
21,759,734
|
Liabilities and stockholders' equity
|
$
77,169,072
|
|
$
58,529,619
|
|
$
24,202,237
|
|
|
|
|
|
|
Akerna
Corp.
|
Consolidated
Statement of Operations
|
For the three months
and six months ended December 31, 2020 and 2019, and years ended
June 30, 2020 and 2019
|
|
|
Three Months Ended
December 31
|
|
Six Months Ended
December 31
|
|
Year Ended June
30
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
Software
|
$
3,443,392
|
|
$
2,498,174
|
|
$
6,766,985
|
|
$
4,802,654
|
|
$
9,976,580
|
|
$
8,256,492
|
Consulting
|
583,512
|
|
725,000
|
|
916,099
|
|
1,556,363
|
|
2,379,947
|
|
2,307,129
|
Other revenue
|
83,876
|
|
83,029
|
|
141,700
|
|
140,076
|
|
216,749
|
|
259,496
|
Total
Revenue
|
4,110,780
|
|
3,306,203
|
|
7,824,784
|
|
6,499,093
|
|
12,573,276
|
|
10,823,117
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
1,401,103
|
|
1,615,239
|
|
3,141,041
|
|
2,994,940
|
|
6,209,724
|
|
4,633,844
|
Gross
profit
|
2,709,677
|
|
1,690,964
|
|
4,683,743
|
|
3,504,153
|
|
6,363,552
|
|
6,189,273
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
Product development
|
1,407,262
|
|
623,501
|
|
3,166,088
|
|
1,234,403
|
|
3,206,310
|
|
5,565,097
|
Sales and marketing
|
1,830,526
|
|
2,132,004
|
|
3,928,028
|
|
3,725,012
|
|
7,792,480
|
|
7,498,114
|
General and administrative
|
1,964,880
|
|
2,664,400
|
|
4,435,067
|
|
4,655,207
|
|
11,320,715
|
|
5,638,408
|
Depreciation and amortization
|
836,215
|
|
86,768
|
|
2,007,237
|
|
104,667
|
|
1,315,898
|
|
-
|
Impairment of long-lived assets
|
6,887,000
|
|
-
|
|
6,887,000
|
|
-
|
|
-
|
|
-
|
Total
operating expenses
|
12,925,883
|
|
5,506,673
|
|
20,423,420
|
|
9,719,289
|
|
23,635,403
|
|
18,701,619
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
(10,216,206)
|
|
(3,815,709)
|
|
(15,739,677)
|
|
(6,215,136)
|
|
(17,271,851)
|
|
(12,512,346)
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
|
Interest income (expense)
|
(189,397)
|
|
51,857
|
|
(193,084)
|
|
125,239
|
|
156,678
|
|
91,239
|
Change in fair value of
convertible notes
|
(1,739,273)
|
|
-
|
|
(961,273)
|
|
-
|
|
766,000
|
|
-
|
Other expense
|
(59,272)
|
|
157
|
|
(59,272)
|
|
(130)
|
|
(254)
|
|
17,892
|
Total other
income (expense)
|
(1,987,942)
|
|
52,014
|
|
(1,213,629)
|
|
125,109
|
|
922,424
|
|
109,131
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
before income tax
expense
|
(12,204,148)
|
|
(3,763,695)
|
|
(16,953,306)
|
|
(6,090,027)
|
|
(16,349,427)
|
|
(12,403,215)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
(200)
|
|
-
|
|
(200)
|
|
-
|
|
(30,985)
|
|
-
|
Equity in
losses of investee
|
(11,109)
|
|
-
|
|
(12,643)
|
|
-
|
|
(3,692)
|
|
-
|
Net
Loss
|
(12,215,457)
|
|
(3,763,695)
|
|
(16,966,149)
|
|
(6,090,027)
|
|
(16,384,104)
|
|
(12,403,215)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to
noncontrolling interest in
consolidated subsidiary
|
-
|
|
-
|
|
8,815
|
|
-
|
|
849,759
|
|
-
|
Net loss
attributable to Akerna
shareholders
|
$(12,215,457)
|
|
$
(3,763,695)
|
|
$(16,957,333)
|
|
$
(6,090,027)
|
|
$(15,534,345)
|
|
$(12,403,215)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
weighted average
common shares outstanding
|
18,138,921
|
|
10,958,772
|
|
16,056,030
|
|
10,918,942
|
|
11,860,212
|
|
6,045,382
|
|
$
(0.67)
|
|
$
(0.34)
|
|
$
(1.06)
|
|
$
(0.56)
|
|
$
(1.31)
|
|
$
(2.05)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Akerna
Corp.
|
Consolidated
Statement of Cash Flows
|
For the six months
ended December 31, 2020, and year ended June 30, 2020 and
2019
|
|
|
Six Months
Ended
December 31
|
|
Year Ended
June 30
|
|
2020
|
|
2020
|
|
2019
|
|
(unaudited)
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
Net
Loss
|
$
(16,966,149)
|
|
$
(16,384,104)
|
|
$
(12,403,215)
|
Adjustment to
reconcile net loss to net cash used in operating
activities
|
|
|
|
|
|
Bad debt
expense
|
72,832
|
|
1,094,507
|
|
345,941
|
Stock-based
compensation expense
|
1,197,589
|
|
1,166,130
|
|
3,884,111
|
Depreciation and
amortization
|
2,007,237
|
|
1,315,898
|
|
-
|
Impairment of
long-lived asset
|
6,887,000
|
|
-
|
|
-
|
Non-cash
interest expense
|
32,732
|
|
-
|
|
-
|
Equity in losses
of investee
|
12,643
|
|
3,692
|
|
-
|
Gain on sale of
fixed asset
|
84,835
|
|
-
|
|
-
|
Debt issuance
costs classified as financing
|
-
|
|
1,177,390
|
|
-
|
Change in fair
value of convertible notes
|
961,272
|
|
(766,000)
|
|
-
|
Change in fair
value of contingent consideration
|
(993,000)
|
|
(998,000)
|
|
-
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
Accounts
receivable
|
1,008,775
|
|
(1,621,262)
|
|
(1,572,889)
|
Prepaid expenses
and other current assets
|
(460,964)
|
|
(592,807)
|
|
(351,144)
|
Other
assets
|
81,924
|
|
(58,925)
|
|
-
|
Accounts payable
and accrued liabilities
|
(2,749,766)
|
|
1,602,751
|
|
893,845
|
Deferred
revenue
|
(94,088)
|
|
(286,922)
|
|
154,756
|
Net cash used in
operating activities
|
(8,917,128)
|
|
(14,347,652)
|
|
(9,048,595)
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
Developed
software additions
|
(1,847,710)
|
|
(3,102,728)
|
|
-
|
Furniture,
fixtures and equipment additions
|
(12,203)
|
|
(156,636)
|
|
-
|
Cash paid for
business combinations, net of cash acquired
|
(5,067,740)
|
|
(88,720)
|
|
-
|
Investment in
equity method investee
|
-
|
|
(250,000)
|
|
-
|
Cash received in
connection with reverse merger
|
-
|
|
-
|
|
18,843,483
|
Net Cash
provided by investing activities
|
(6,927,653)
|
|
(3,598,084)
|
|
18,843,483
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
Proceeds from
the issuance of long-term debt
|
-
|
|
17,164,600
|
|
-
|
Payments on
debt
|
(1,500,000)
|
|
-
|
|
-
|
Cash paid for
debt issuance costs
|
-
|
|
(1,177,390)
|
|
-
|
Proceeds from
the exercise of warrants
|
-
|
|
4,247,065
|
|
-
|
Proceeds from
the issuance of common stock
|
11,032,380
|
|
-
|
|
10,000,000
|
Net cash
provided by financing activities
|
9,532,380
|
|
20,234,275
|
|
10,000,000
|
|
|
|
|
|
|
Effect of
exchange rate changes on cash and restricted cash
|
(2,787)
|
|
-
|
|
-
|
Net (decrease)
increase in cash and restricted cash
|
$
(6,315,188)
|
|
$
2,288,539
|
|
$
19,794,888
|
|
|
|
|
|
|
Cash and
restricted cash, beginning of period
|
24,655,828
|
|
22,367,289
|
|
2,572,401
|
|
|
|
|
|
|
Cash and
restricted cash, end of period
|
$
18,340,640
|
|
$
24,655,828
|
|
$
22,367,289
|
|
|
|
|
|
|
Cash paid for
taxes
|
$
-
|
|
$
-
|
|
$
-
|
Cash paid for
interest
|
$
150,000
|
|
$
-
|
|
$
-
|
|
|
|
|
|
|
Akerna
Corp.
|
Earnings Before
Interest, Taxes, Depreciation and Amortization, and Adjusted
EBITDA
|
For the three months
and six months ended December 31, 2020 and 2019, and years ended
June 30, 2020 and 2019
|
The reconciliation of
net income to EBITDA and Adjusted EBITDA is as follows:
|
(unaudited)
|
|
|
Three Months Ended
December 31
|
|
Six Months Ended
December 31
|
|
Year Ended June
30
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss
|
$(12,215,457)
|
|
$
(3,763,695)
|
|
$(16,966,149)
|
|
$
(6,090,027)
|
|
$(16,384,104)
|
|
$(12,403,215)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest (income)
expense and
change in fair value of convertible
notes
|
1,928,670
|
|
(51,857)
|
|
1,154,356
|
|
(125,239)
|
|
(922,678)
|
|
(91,239)
|
Depreciation and
amortization
|
836,215
|
|
86,768
|
|
2,007,237
|
|
104,667
|
|
1,315,898
|
|
-
|
Income tax
provision
|
200
|
|
-
|
|
200
|
|
-
|
|
30,985
|
|
-
|
EBITDA
|
$
(9,450,372)
|
|
$
(3,728,784)
|
|
$(13,804,355)
|
|
$
(6,110,599)
|
|
$(15,959,899)
|
|
$(12,494,454)
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of
long-lived assets
|
6,887,000
|
|
-
|
|
6,887,000
|
|
-
|
|
-
|
|
-
|
Stock-based
compensation
expense
|
516,170
|
|
331,485
|
|
1,197,589
|
|
492,650
|
|
1,166,130
|
|
3,884,110
|
Business combination
and merger
related costs
|
142,639
|
|
733,867
|
|
1,094,503
|
|
733,867
|
|
2,979,228
|
|
1,080,870
|
Debt issuance costs
related to fair
value option debt instruments
|
96,427
|
|
-
|
|
139,594
|
|
-
|
|
1,177,390
|
|
-
|
Restructuring
charges
|
421,957
|
|
-
|
|
490,146
|
|
-
|
|
-
|
|
-
|
Changes in fair value
of
contingent consideration
|
(604,000)
|
|
-
|
|
(993,000)
|
|
-
|
|
(998,000)
|
|
-
|
Equity in losses of
investee
|
11,109
|
|
-
|
|
12,643
|
|
-
|
|
3,692
|
|
-
|
Other non-operating
expenses
|
59,272
|
|
(157)
|
|
59,272
|
|
130
|
|
-
|
|
-
|
Adjusted
EBITDA
|
$
(1,919,798)
|
|
$
(2,663,589)
|
|
$
(4,916,607)
|
|
$
(4,883,952)
|
|
$(11,631,459)
|
|
$
(7,529,474)
|
|
|
|
|
|
|
|
|
|
|
|
|
Akerna
Corp.
|
The reconciliation of
operating expenses to non-GAAP operating expenses is as
follows:
|
(unaudited)
|
|
|
Three Months Ended
December 31
|
|
Six Months Ended
December 31
|
|
Year Ended June
30
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
$
12,925,883
|
|
$
5,506,673
|
|
$
20,423,420
|
|
$
9,719,289
|
|
$
23,635,403
|
|
$
18,701,619
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
836,215
|
|
86,768
|
|
2,007,237
|
|
104,667
|
|
1,315,898
|
|
-
|
Impairment of
long-lived assets
|
6,887,000
|
|
-
|
|
6,887,000
|
|
-
|
|
-
|
|
-
|
Stock-based
compensation
expense
|
474,196
|
|
331,485
|
|
1,137,905
|
|
492,650
|
|
1,166,130
|
|
3,884,110
|
Business combination
and
merger related costs
|
142,639
|
|
733,867
|
|
1,094,503
|
|
733,867
|
|
2,979,228
|
|
1,080,870
|
Debt issuance costs
related to
fair value option debt instruments
|
96,427
|
|
-
|
|
139,594
|
|
-
|
|
1,177,390
|
|
-
|
Restructuring
charges
|
421,957
|
|
-
|
|
490,146
|
|
-
|
|
-
|
|
-
|
Changes in fair value
of
contingent consideration
|
(604,000)
|
|
-
|
|
(993,000)
|
|
-
|
|
(998,000)
|
|
-
|
Non-GAAP operating
expenses
|
$
4,671,449
|
|
$
4,354,553
|
|
$
9,660,035
|
|
$
8,388,105
|
|
$
17,994,757
|
|
$
13,736,639
|
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SOURCE Akerna