Raises Fiscal Year 2021 Revenue Guidance; Added to
Russell
3000® Index
ANDOVER, Mass., June 30, 2021 /PRNewswire/ -- Byrna
Technologies Inc. (NASDAQ: BYRN) (CSE: BYRN) ("Byrna" or "the
Company") today announced results for its fiscal second quarter
ended May 31, 2021.
Second Quarter 2021 Compared to Second Quarter 2020:
- Revenues were $13.4 million
compared to $1.2 million.
- Gross margin was 56.4% compared to 43.4%.
- GAAP net income was $2.0 million
compared to a net loss of $8.1
million.
- Non-GAAP net income1 was $3.0
million compared to a non-GAAP net loss1 of
$0.8 million.
- Adjusted EBITDA1 was $3.3
million compared to ($0.7)
million.
"The year-over-year growth in revenues reflects the expansion of
consumer awareness and demand for our Byrna® HD
non-lethal personal security device, coupled with our increased
focus on marketing and advertising," stated Bryan Ganz, CEO of Byrna. "We also
demonstrated continued bottom-line improvement, as we generated
positive GAAP net income for the first time in Company history,"
Ganz added. "Excluding non-cash stock compensation expense and
non-cash financing costs, non-GAAP net income1 was
$3.0 million for the second quarter
compared to a non-GAAP net loss1 of $0.8 million in the prior year period.
Non-GAAP adjusted EBITDA1 was $3.3 million this quarter compared to
($0.7) million for the second quarter
of 2020. This marks our first quarter reporting positive GAAP net
income and our third consecutive quarter of positive non-GAAP net
income1."
Second Quarter 2021 Business Overview
Revenues were $13.4 million in the
second quarter of 2021 compared to $1.2
million in the prior year second quarter. This
increase in sales was driven by strong order growth for the
Company's flagship Byrna HD personal security device, aided by
favorable media attention and an increase in quarterly production
volumes.
Gross profit margin for the quarter was 56.4% compared to 43.4%
in the prior year period. This increase was driven by higher
production volumes.
Operating expenses were $5.5
million in the second quarter of 2021, up from $1.4 million in the prior year period. The
increase reflects greater investment in corporate infrastructure
necessary to support the Company's growth driven largely by the
addition of key management positions over the last 12 months
including but not limited to Chief Financial Officer (CFO),
Controller, Chief Revenue and Marketing Officer (CMRO), Chief
Supply Chain Officer (CSCO) and Chief People Officer (CPO), an
increase in marketing spend, and an increase in legal and public
company related costs including, in the most recent quarter, costs
related to the reverse stock split, the conversion of the "Series
A" preferred stock into common stock and the Company's up-list to
the Nasdaq Capital Market.
Financial Position as of May 31,
2021:
- Cash of $5.3 million, including
$0.9 million of restricted cash
(which is released as orders are fulfilled).
- Total assets of $22.0
million.
- $1.5 million drawn on bank line
of credit.
Outlook
For the fiscal year 2021 ending November
30, Byrna now projects revenues of $38 - $41 million,
reflecting year-over-year growth of approximately 138% at the
mid-point of the range, based on the Company's current order flow
and the growth expected from: (1) the planned introduction of new
products; (2) the planned opening of a dedicated Amazon store; and
(3) the anticipated increase in dealer sales. The Company
expects the impact of these growth initiatives on its financial
results to steadily increase over the balance of the fiscal
year.
Gross profit margin is expected to moderate in the third quarter
due to the projected increase in lower margin dealer sales. In the
fourth quarter, however, we expect gross margins to benefit from
the planned introduction of new higher margin products including
the Byrna SD, Byrna LE and the shoulder-fired launchers acquired in
the Mission acquisition.
New Products
- Byrna SD - We expect to begin offering the Byrna SD, an
update of the Byrna HD with an improved trigger, an enhanced
sighting system and honeycomb grips, later this quarter. The
Byrna SD is already in production in our Fort Wayne, Indiana manufacturing facility.
- Byrna LE - The Byrna LE, which we expect to release in Q4,
features a completely new valve system, resulting in increased
muzzle velocity, an improved sighting system, a 7+1 magazine and
extreme cold weather capabilities.
- Byrna TCR - The Byrna TCR, or tactical compact rifle,
targeted for introduction in late 2021/early 2022 will be an easy
to use, semi-automatic launcher that can fire 19 rounds in rapid
succession at more than 325 feet per second. The TCR, unlike most
shoulder-fired, non-lethal launchers, will use a readily available
12-gram CO2 cartridge for propulsion.
- Byrna M-4 - The Byrna M-4, which is targeted for
introduction in 2022, will have a 120-shot capacity (in law
enforcement form), will be able to use either CO2 cartridges or
compressed air for propulsion. In civilian form, the
Mission-4 will come with two 20-round magazines and use CO2
cartridges only for propulsion.
In addition to the products outlined above, which fire
traditional round ball projectiles, Byrna plans to introduce two
new launchers next year designed to utilize Byrna's patented
fintail projectiles. These fintail rounds, which are designed to
spin-stabilize in flight, are significantly more accurate, carry
greater payloads and travel at higher speeds over longer distances
than traditional round projectiles.
- Pump Action Launcher (PAL) - Operating like a pump action
shotgun, the PAL is being designed to offer law enforcement the
ability to disarm a threat at distances of up to 150 feet without
the need to use lethal force. Byrna demonstrated the capabilities
of this launcher two weeks ago in Los Angeles County where
representatives of several Police and Sherriff's departments
test-fired a prototype PAL.
- Byrna PE - The Byrna PE will be designed to provide
civilians and security professionals with an easy to carry, compact
handheld launcher capable of firing up to ten highly accurate
payload rounds from a single magazine.
Sales Channels
In addition to the new product launches outlined above, Byrna is
focused on the development of two critical sales channels – a new
Amazon store (scheduled to open in late Q3) and an expanded dealer
network. Upon the launch of its Amazon store, Byrna expects
to offer the Byrna SD launcher on an exclusive basis for a limited
introductory period.
Working with large chain stores such as Bi-mart, C-A-L Ranch,
Big R and Murdoch's, and distributors including Davidson's,
Lipsey's, Big Rock Sports and Sports South, Byrna has built a
distribution network of approximately 1,500 brick & mortar
locations spread across the United States. The Company
expects to fill initial stocking orders for many of these locations
in Q3.
FTSE Russell Annual Index Reconstitution
Byrna has been added to the broad-market Russell 3000® Index as part of the
annual reconstitution of the Russell US indices, which was
effective upon the opening of the US equity markets on June 28, 2021.
Membership in the Russell
3000® Index, which remains in place for one year,
means automatic inclusion in either the large-cap Russell 1000® Index or
small-cap Russell
2000® Index, as well as the appropriate growth and
value style indexes. FTSE Russell determines membership for its
Russell indices primarily by
objective, market-capitalization rankings, and style
attributes.
Conference Call
Byrna Technologies will host a conference call later this
morning at 9:00 am ET to review these
results. To listen to the call live, dial (201) 493-6744 or
(877) 445-9755 and ask for the Byrna Technologies Conference
Call or go to www.byrna.com and click on the Investors
section. Please go to the website 15 minutes early to
download and install any necessary audio software. If you are
unable to listen live, a replay of the call can be accessed for
approximately 30 days after the call at Byrna Technologies'
website.
About Byrna Technologies Inc.
Byrna is a technology company, specializing in the development,
manufacture, and sale of innovative non-lethal personal security
solutions. For more information on the Company, please visit
the corporate website here or the Company's investor relations site
here. The Company is the manufacturer of the Byrna® HD personal
security device, a state-of-the-art handheld CO2 powered launcher
designed to provide a non-lethal alternative to a firearm for the
consumer, private security, and law enforcement markets. To
purchase Byrna products visit the Company's e-commerce store.
Forward Looking Information
This news release contains "forward-looking statements"
within the meaning of the securities laws. All statements contained
in this news release, other than statements of current and
historical fact, are forward-looking. Often, but not always,
forward-looking statements can be identified by the use of words
such as "plans," "expects," "intends," "anticipates," and
"believes" and statements that certain actions, events or results
"may," "could," "would," "should," "might," "occur," or "be
achieved," or "will be taken." Forward-looking statements include
descriptions of currently occurring matters which may continue in
the future. Forward-looking statements in this news release include
but are not limited to the Company's statements related to its
updated revenue and gross profit margin projections, future order
fulfillment, anticipated order flow, growth expectations, dealer
stocking, plans for introduction of new products, anticipated
product features and timeline including the anticipated opening of
the Company's Amazon store and planned introduction of the Byrna SD
thereon, planned introductions of other products, the function,
utility and appeal of new product features, expected growth in
dealer sales, expected impact of growth initiatives on financial
results including revenues and gross profit margins, and the
anticipated benefits of the Company's patented fintail projectiles,
and other plans and expectations discussed. Forward-looking
statements are not, and cannot be, a guarantee of future results or
events. Forward-looking statements are based on, among other
things, opinions, assumptions, estimates, and analyses that, while
considered reasonable by the Company at the date the
forward-looking information is provided, inherently are subject to
significant risks, uncertainties, contingencies, and other factors
that may cause actual results and events to be materially different
from those expressed or implied.
Any number of risk factors could affect our actual results
and cause them to differ materially from those expressed or implied
by the forward-looking statements in this news release, including,
but not limited to, disappointing market responses to current or
future products or services or to related marketing campaigns,
shortages of materials needed by our suppliers, including suppliers
of plastic components, or by us, the potential disruption of
production, distribution, or marketing for any reason including but
not limited to competitive factors or issues related to
the pandemic (particularly with respect to our production and
suppliers in South Africa where
the province in which we and our chemical irritant supplier are
located is experiencing a severe outbreak), civil unrest, supply
chain shortages or interruptions, including material shortages,
that could affect our extended supply chain, unavailability of
parts, particularly parts sourced from limited or sole source
providers, reduced air freight capacity, or otherwise;
determinations by dealers, distributors or other third party
controlled distribution channels, including Amazon, not to carry
our products, potential cancellations of existing or future orders
including as a result of any fulfillment delays, introduction of
competing products, negative publicity, the recent safety alert,
product recalls, litigation, enforcement proceedings or other
regulatory or legal developments; changes in consumer or political
sentiment or the law regulating the Company's products or other
regulatory factors including the impact of commerce and trade laws
and regulations including export related matters or sanctions or
embargos that could affect the Company's supply chain or markets;
larger than expected demand for the previously announced technical
factory safety update, product design or manufacturing defects and
related product recalls, future restrictions on the Company's cash
resources impacting the availability of sufficient cash to meet
operating expenses, other costs of goods or sales, and increased
costs of production or sales and other events that could
potentially reduce demand for the Company's products or result in
order cancellations. The order in which these factors appear should
not be construed to indicate their relative importance or priority.
We caution that these factors may not be exhaustive; accordingly,
any forward-looking statements contained herein should not be
relied upon as a prediction of actual results. Investors
should carefully consider these and other relevant factors,
including those risk factors in Part I, Item 1A, ("Risk Factors")
in our most recent Form 10-K and the updated risk factors
delineated in Part 1, Item 1A of our Form 10-Q for the quarter
ended May 31, 2021, should
understand it is impossible to predict or identify all such factors
or risks, should not consider the foregoing list, or the risks
identified in our SEC filings, to be a complete discussion of all
potential risks or uncertainties, and should not place undue
reliance on forward-looking information. The Company assumes no
obligation to update or revise any forward-looking information,
except as required by applicable law.
BYRNA TECHNOLOGIES
INC.
|
Condensed
Consolidated Statements of Operations and Comprehensive Income
(Loss)
|
(Amounts in
thousands except share and per share data)
|
(Unaudited)
|
|
|
|
For the Three
Months
Ended
|
|
|
For the Six
Months
Ended
|
|
|
|
May
31,
|
|
|
May
31,
|
|
|
|
2021
|
|
|
2020
|
|
|
2021
|
|
|
2020
|
|
Net
revenue
|
|
$
|
13,401
|
|
|
$
|
1,190
|
|
|
$
|
22,294
|
|
|
$
|
1,339
|
|
Cost of goods
sold
|
|
|
(5,839)
|
|
|
|
(674)
|
|
|
|
(9,991)
|
|
|
|
(857)
|
|
Gross
profit
|
|
|
7,562
|
|
|
|
516
|
|
|
|
12,303
|
|
|
|
482
|
|
Operating
expenses
|
|
|
5,539
|
|
|
|
1,369
|
|
|
|
10,691
|
|
|
|
2,959
|
|
INCOME (LOSS) FROM
OPERATIONS
|
|
|
2,023
|
|
|
|
(853)
|
|
|
|
1,612
|
|
|
|
(2,477)
|
|
OTHER (EXPENSE)
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
transaction gain (loss)
|
|
|
214
|
|
|
|
(5)
|
|
|
|
192
|
|
|
|
(9)
|
|
Accretion of debt
discounts
|
|
|
—
|
|
|
|
(257)
|
|
|
|
—
|
|
|
|
(755)
|
|
Interest
expense
|
|
|
(9)
|
|
|
|
(74)
|
|
|
|
(37)
|
|
|
|
(233)
|
|
Loss on
extinguishment of debt
|
|
|
—
|
|
|
|
(6,027)
|
|
|
|
—
|
|
|
|
(6,027)
|
|
Warrant inducement
expense
|
|
|
—
|
|
|
|
(845)
|
|
|
|
—
|
|
|
|
(845)
|
|
Forgiveness of
Paycheck Protection Program loan
|
|
|
—
|
|
|
|
—
|
|
|
|
190
|
|
|
|
—
|
|
Other financing
costs
|
|
|
(8)
|
|
|
|
—
|
|
|
|
(9)
|
|
|
|
—
|
|
INCOME (LOSS) BEFORE
INCOME TAXES
|
|
|
2,220
|
|
|
|
(8,061)
|
|
|
|
1,948
|
|
|
|
(10,346)
|
|
Income tax
provision
|
|
|
183
|
|
|
|
—
|
|
|
|
183
|
|
|
|
—
|
|
NET INCOME
(LOSS)
|
|
|
2,037
|
|
|
|
(8,061)
|
|
|
|
1,765
|
|
|
|
(10,346)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange
translation gain for the period
|
|
|
120
|
|
|
|
132
|
|
|
|
178
|
|
|
|
96
|
|
COMPREHENSIVE INCOME
(LOSS)
|
|
$
|
2,157
|
|
|
$
|
(7,929)
|
|
|
$
|
1,943
|
|
|
$
|
(10,250)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) PER
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per share
|
|
$
|
0.06
|
|
|
$
|
(0.66)
|
|
|
$
|
0.04
|
|
|
$
|
(0.91)
|
|
Diluted net income
(loss) per share
|
|
$
|
0.05
|
|
|
$
|
(0.66)
|
|
|
$
|
0.04
|
|
|
$
|
(0.91)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of common shares outstanding — basic
|
|
|
17,800,749
|
|
|
|
12,068,759
|
|
|
|
16,359,496
|
|
|
|
11,271,719
|
|
Weighted-average
number of common shares outstanding — diluted
|
|
|
18,989,231
|
|
|
|
12,068,759
|
|
|
|
17,604,131
|
|
|
|
11,271,719
|
|
BYRNA TECHNOLOGIES
INC.
|
Condensed
Consolidated Balance Sheets
|
(Amounts in thousands
except share and per share data)
|
(Unaudited)
|
|
|
May
31,
|
|
|
November
30,
|
|
|
|
2021
|
|
|
2020
|
|
|
|
Unaudited
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
Cash
|
|
$
|
4,391
|
|
|
$
|
3,175
|
|
Restricted
cash
|
|
|
862
|
|
|
|
6,389
|
|
Accounts receivable,
net
|
|
|
1,235
|
|
|
|
834
|
|
Inventory,
net
|
|
|
6,607
|
|
|
|
4,817
|
|
Net investment in
sales-type lease, current
|
|
|
51
|
|
|
|
—
|
|
Prepaid expenses and
other current assets
|
|
|
1,282
|
|
|
|
1,391
|
|
Total current
assets
|
|
|
14,428
|
|
|
|
16,606
|
|
|
|
|
|
|
|
|
|
|
Patent rights,
net
|
|
|
3,626
|
|
|
|
811
|
|
Deposits for
equipment
|
|
|
678
|
|
|
|
619
|
|
Right-of-use asset,
net
|
|
|
1,224
|
|
|
|
1,200
|
|
Net investment in
sales-type lease, non-current
|
|
|
56
|
|
|
|
—
|
|
Property and
equipment, net
|
|
|
1,187
|
|
|
|
1,220
|
|
Goodwill
|
|
|
651
|
|
|
|
651
|
|
Restricted
cash
|
|
|
92
|
|
|
|
92
|
|
Other
assets
|
|
|
91
|
|
|
|
17
|
|
TOTAL
ASSETS
|
|
$
|
22,033
|
|
|
$
|
21,216
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
|
Accounts payable and
accrued liabilities
|
|
$
|
4,571
|
|
|
$
|
6,629
|
|
Operating lease
liabilities, current
|
|
|
232
|
|
|
|
257
|
|
Deferred
revenue
|
|
|
1,675
|
|
|
|
4,902
|
|
Notes payable,
current
|
|
|
—-
|
|
|
|
76
|
|
Line of
credit
|
|
|
1,500
|
|
|
|
—
|
|
Total current
liabilities
|
|
|
7,978
|
|
|
|
11,864
|
|
Notes payable,
non-current
|
|
|
—
|
|
|
|
115
|
|
Operating lease
liabilities, noncurrent
|
|
|
905
|
|
|
|
828
|
|
Total
liabilities
|
|
|
8,883
|
|
|
|
12,807
|
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES (NOTE 22)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY (DEFICIT)
|
|
|
|
|
|
|
|
|
Preferred stock,
$0.001 par value, 5,000,000 shares authorized, no shares
issued
|
|
|
—
|
|
|
|
—
|
|
Series A Preferred
Stock, 1,500 shares designated, 0 and 1,391 shares issued and
outstanding, respectively
|
|
|
—
|
|
|
|
—
|
|
Common stock, $0.001
par value, 300,000,000 shares authorized, 20,693,521 and 14,852,023
shares issued and outstanding, respectively
|
|
|
20
|
|
|
|
15
|
|
Additional paid-in
capital
|
|
|
61,374
|
|
|
|
58,581
|
|
Accumulated
deficit
|
|
|
(48,450)
|
|
|
|
(50,215)
|
|
Accumulated other
comprehensive income
|
|
|
206
|
|
|
|
28
|
|
Total Stockholders'
Equity (Deficit)
|
|
|
13,150
|
|
|
|
8,409
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIT)
|
|
$
|
22,033
|
|
|
$
|
21,216
|
|
Non-GAAP Financial Metrics
In addition to providing financial measurements based on generally
accepted accounting principles in the
United States (GAAP), we provide the following additional
financial metrics that are not prepared in accordance with GAAP
(non-GAAP): adjusted EBITDA, non-GAAP net income (loss), and
non-GAAP net income (loss) per share (basic and diluted).
Management uses these non-GAAP financial measures, in addition to
GAAP financial measures, to understand and compare operating
results across accounting periods, for financial and operational
decision making, for planning and forecasting purposes and to
evaluate our financial performance. We believe that these non-GAAP
financial measures help us to identify underlying trends in our
business that could otherwise be masked by the effect of certain
expenses that we exclude in the calculations of the non-GAAP
financial measures.
Accordingly, we believe that these non-GAAP financial measures
reflect our ongoing business in a manner that allows for meaningful
comparisons and analysis of trends in the business and provides
useful information to investors and others in understanding and
evaluating our operating results, enhancing the overall
understanding of our past performance and future prospects.
These non-GAAP financial measures do not replace the
presentation of our GAAP financial results and should only be used
as a supplement to, not as a substitute for, our financial results
presented in accordance with GAAP. There are limitations in the use
of non-GAAP measures, because they do not include all the expenses
that must be included under GAAP and because they involve the
exercise of judgment concerning exclusions of items from the
comparable non-GAAP financial measure. In addition, other companies
may use other non-GAAP measures to evaluate their performance, or
may calculate non-GAAP measures differently, all of which could
reduce the usefulness of our non-GAAP financial measures as tools
for comparison.
Adjusted EBITDA
Adjusted EBITDA is defined as comprehensive income (loss) as
reported in our consolidated statements of income excluding the
impact of (i) depreciation and amortization; (ii) income
tax provision (benefit); (iii) interest expense;
(iv) stock-based compensation expense; (v) accretion of debt
discounts; (vi) loss on extinguishment of debt; and (vii) warrant
inducement expense. Our Adjusted EBITDA measure eliminates
potential differences in performance caused by variations in
capital structures (affecting finance costs), tax positions, the
cost and age of tangible assets (affecting relative depreciation
expense) and the extent to which intangible assets are identifiable
(affecting relative amortization expense). We also exclude certain
one-time and non-cash costs. Reconciliation to the most directly
comparable GAAP measure of all non-GAAP measures included in this
report is as follows (in thousands):
|
|
For the Three
Months
Ended
May 31,
|
|
|
|
|
2021
|
|
|
2020
|
|
|
Comprehensive
income (loss)
|
|
$
|
2,157
|
|
|
$
|
(7,929)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
9
|
|
|
|
74
|
|
|
Income tax
provision
|
|
|
183
|
|
|
|
—
|
|
|
Depreciation and
amortization
|
|
|
129
|
|
|
|
40
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
EBITDA
|
|
|
2,478
|
|
|
|
(7,815)
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation expense
|
|
|
853
|
|
|
|
11
|
|
|
Accretion of debt
discounts
|
|
|
—
|
|
|
|
257
|
|
|
Loss on extinguishment
of debt
|
|
|
—
|
|
|
|
6,027
|
|
|
Warrant inducement
expense
|
|
|
—
|
|
|
|
845
|
|
|
Other financing
costs
|
|
|
8
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted
EBITDA
|
|
$
|
3,339
|
|
|
$
|
(675)
|
|
|
Non-GAAP net income (loss) and non-GAAP net income (loss) per
share
Non-GAAP net income (loss) is defined as comprehensive income
(loss) as reported in our consolidated statements of income
excluding the impact of (i) stock-based compensation expense; (ii)
accretion of debt discounts; (iii) loss on extinguishment of debt;
and (iv) warrant inducement expense. Our non-GAAP net income (loss)
measure eliminates potential differences in performance caused by
certain non-cash and one-time costs. We also provide non-GAAP net
income (loss) per share by dividing non-GAAP net income (loss) by
the average basic or diluted shares outstanding for the period.
Reconciliation to the most directly comparable GAAP measure of all
non-GAAP measures included in this report is as follows (in
thousands):
|
|
For the Three
Months
Ended
May 31,
|
|
|
|
|
2021
|
|
|
2020
|
|
|
Comprehensive
income (loss)
|
|
$
|
2,157
|
|
|
$
|
(7,929)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
|
853
|
|
|
|
11
|
|
|
Accretion of debt
discounts
|
|
|
—
|
|
|
|
257
|
|
|
Loss on extinguishment
of debt
|
|
|
—
|
|
|
|
6,027
|
|
|
Warrant inducement
expense
|
|
|
—
|
|
|
|
845
|
|
|
Other financing
costs
|
|
|
8
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
Non-GAAP net
income (loss)
|
|
$
|
3,018
|
|
|
$
|
(789)
|
|
|
Non-GAAP net
income (loss) per share – basic
|
|
$
|
0.17
|
|
|
$
|
(0.07)
|
|
|
Non-GAAP net
income (loss) per share – diluted
|
|
$
|
0.16
|
|
|
$
|
(0.07)
|
|
|
Weighted-average
number of common shares outstanding during the period —
basic
|
|
|
17,800,749
|
|
|
|
12,068,759
|
|
|
Weighted-average
number of common shares outstanding during the period —
diluted
|
|
|
18,989,231
|
|
|
|
12,068,759
|
|
|
Adjusted EBITDA
Adjusted EBITDA is defined as comprehensive income (loss) as
reported in our consolidated statements of income excluding the
impact of (i) depreciation and amortization; (ii) income
tax provision (benefit); (iii) interest expense;
(iv) stock-based compensation expense; (v) accretion of debt
discounts; (vi) loss on extinguishment of debt; and (vii) warrant
inducement expense. Our Adjusted EBITDA measure eliminates
potential differences in performance caused by variations in
capital structures (affecting finance costs), tax positions, the
cost and age of tangible assets (affecting relative depreciation
expense) and the extent to which intangible assets are identifiable
(affecting relative amortization expense). We also exclude certain
one-time and non-cash costs. Reconciliation to the most directly
comparable GAAP measure of all non-GAAP measures included in this
report is as follows (in thousands):
|
|
For the Six
Months
Ended
May 31,
|
|
|
|
|
2021
|
|
|
2020
|
|
|
Comprehensive
income (loss)
|
|
$
|
1,943
|
|
|
$
|
(10,250)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
37
|
|
|
|
233
|
|
|
Income tax
provision
|
|
|
183
|
|
|
|
—
|
|
|
Depreciation and
amortization
|
|
|
217
|
|
|
|
78
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP
EBITDA
|
|
|
2,380
|
|
|
|
(9,939)
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation expense
|
|
|
1,546
|
|
|
|
648
|
|
|
Accretion of debt
discounts
|
|
|
—
|
|
|
|
755
|
|
|
Loss on extinguishment
of debt
|
|
|
—
|
|
|
|
6,027
|
|
|
Warrant inducement
expense
|
|
|
—
|
|
|
|
845
|
|
|
Other income:
forgiveness of PPP loan
|
|
|
(190)
|
|
|
|
|
|
|
Other financing
costs
|
|
|
9
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted
EBITDA
|
|
$
|
3,745
|
|
|
$
|
(1,664)
|
|
|
Non-GAAP net income (loss) and non-GAAP net income (loss) per
share
Non-GAAP net income (loss) is defined as comprehensive income
(loss) as reported in our consolidated statements of income
excluding the impact of (i) stock-based compensation expense; (ii)
accretion of debt discounts; (iii) loss on extinguishment of debt;
and (iv) warrant inducement expense. Our non-GAAP net income (loss)
measure eliminates potential differences in performance caused by
certain non-cash and one-time costs. We also provide non-GAAP net
income (loss) per share by dividing non-GAAP net income (loss) by
the average basic or diluted shares outstanding for the period.
Reconciliation to the most directly comparable GAAP measure of all
non-GAAP measures included in this report is as follows (in
thousands):
|
|
For the Six
Months
Ended
May 31,
|
|
|
|
|
2021
|
|
|
2020
|
|
|
Comprehensive
income (loss)
|
|
$
|
1,943
|
|
|
$
|
(10,250)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
|
1,546
|
|
|
|
648
|
|
|
Accretion of debt
discounts
|
|
|
—
|
|
|
|
755
|
|
|
Loss on extinguishment
of debt
|
|
|
—
|
|
|
|
6,027
|
|
|
Warrant inducement
expense
|
|
|
—
|
|
|
|
845
|
|
|
Other income
|
|
|
(190)
|
|
|
|
|
|
|
Other financing
costs
|
|
|
9
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
Non-GAAP net
income (loss)
|
|
$
|
3,308
|
|
|
$
|
(1,975)
|
|
|
Non-GAAP net
income (loss) per share – basic
|
|
$
|
0.20
|
|
|
$
|
(0.18)
|
|
|
Non-GAAP net
income (loss) per share – diluted
|
|
$
|
0.14
|
|
|
$
|
(0.18)
|
|
|
Weighted-average
number of common shares outstanding during the period —
basic
|
|
|
16,359,496
|
|
|
|
11,271,719
|
|
|
Weighted-average
number of common shares outstanding during the period —
diluted
|
|
|
18,989,231
|
|
|
|
11,271,719
|
|
|
(1) This is a Non-GAAP measure. Refer to the Non-GAAP
Reconciliation section on page 8 of this news release.
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SOURCE Byrna Technologies Inc.