Digital Ally, Inc. (Nasdaq: DGLY) (the “Company” or “our”), today
announced its operating results for 2022. An investor conference
call is scheduled for 11:15 a.m. EDT on Monday, April 3, 2023 (see
details below).
All share and price per share information in
this press release has been adjusted to reflect the Company’s
1-for-20 reverse stock split, which was effective on February 6,
2023.
Highlights for the year ended December
31, 2022
● |
Total revenues increased in 2022 to $37,009,895 from $21,413,434 in
2021 an improvement of $15,596,461 (73%). The primary reason for
the overall revenue increase is an increase of $13,776,856 (113%),
in service revenues from 2021 levels. Service and other revenues
experienced a significant increase during the year ended December
31, 2022, in comparison to the same period in 2021, due to the
Company experiencing a full year of revenues generated by the
Company’s acquisitions, along with increased service revenues
through the Company’s video solutions segment. Additionally, the
Company’s subscription plan model continues to gain traction in the
marketplace, resulting in the Company building and recognizing its
recurring revenues. |
|
|
● |
On September 1, 2021, the Company formed a wholly-owned subsidiary,
TicketSmarter, Inc., through which the Company completed the
acquisition of Goody Tickets, LLC (“Goody Tickets”) and
TicketSmarter, LLC (“TicketSmarter”) (collectively the
“TicketSmarter Acquisition”). Goody Tickets and TicketSmarter®, are
ticket resale marketplaces with seats offered at over 125,000 live
events, offering over 48 million tickets for sale through its
TicketSmarter.com platform. This acquisition generated additional
revenues totaling $20,871,500 in service and product revenues for
the year ended December 31, 2022, compared to generated revenues
for the period from its acquisition on September 1, 2021 through
December 31, 2021 totaling $10,709,760 in service and product
revenues. |
|
|
● |
We entered the revenue cycle management business late in the second
quarter of 2021 with the formation of our wholly owned subsidiary,
Digital Ally Healthcare, Inc. and its majority-owned subsidiary
Nobility Healthcare, LLC (“Nobility Healthcare”). Nobility
Healthcare completed its first acquisition on June 30, 2021, when
it acquired a private medical billing company, and a second
acquisition on August 31, 2021 upon the completion of its
acquisition of another private medical billing company. On January
1, 2022, Nobility Healthcare completed the acquisition of 100% of
the capital stock of a private dental billing company.
Additionally, on February 1, 2022, Nobility Healthcare also
completed an asset purchase for a portfolio of a medical billing
company. These acquisitions further enhanced the Company’s revenue
cycle management operating segment, which provides revenue cycle
management solutions to medium to large healthcare organizations
throughout the country. These acquisitions, along with the revenue
cycle management operating segment’s acquisitions that were
previously completed in 2021, generated service revenues of
$7,886,107 during year ended December 31, 2022, compared to
$1,630,048 generated for the two acquisitions completed as of
December 31, 2021. The Company expects to see further increases in
revenues for 2023 and beyond attributable to Nobility
Healthcare. Our healthcare venture is following a roll-up
strategy in the medical billing industry. The venture’s acquisition
targets include the approximate 6,000 medical billing companies in
the United States, most of which are relatively small and
closely-held private companies. Each year a portion of these
company owners sell because they want to retire or exit the
business for other pursuits. The Company saw the opportunity to
form the venture and provide the capital to make acquisitions and
pursue the medical billing company roll-up strategy at a faster
pace. We expect our healthcare venture to continue its track record
of providing superior medical billing services and practice
management services, as well as executing a profitable roll-up
strategy. |
|
|
● |
Overall gross profit for the years ended December 31, 2022 and 2021
was $2,321,941 and $5,663,775, respectively, a decrease of
$3,341,834 (59%). The overall decrease is attributable to the large
overall increase in revenues for the year ended December 31, 2022
offset by an increase in the overall cost of sales as a percentage
of overall revenues to 94% for the year ended December 31, 2022
from 74% for the year ended December 31, 2021. Our goal is to
improve our margins over the longer term based on the expected
margins generated by our new revenue cycle management and ticketing
operating segments together with our video solutions operating
segment and its expected margins from our EVO-HD, DVM-800, VuLink,
FirstVu Pro, FirstVu II, and FirstVu HD. Additionally, we hold that
same goal for our ThermoVuTM, ShieldTM disinfectants, as well as
our cloud evidence storage and management offering, provided that
they gain traction in the marketplace and subject to a normalizing
economy in the wake of the COVID-19 pandemic. In addition, if
revenues from the video solutions segment increase, we will seek to
further improve our margins from this segment through expansion and
increased efficiency utilizing fixed manufacturing overhead
components. We plan to continue our initiative for more efficient
management of our supply chain through outsourcing production,
quantity purchases and more effective purchasing practices. |
|
|
● |
Selling, general and administrative expense totaled $32,055,199 and
$20,424,685 for the years ended December 31, 2022 and 2021,
respectively, an increase of $11,630,514 (57%). The increase was
primarily attributable to the recent TicketSmarter and medical
billing company acquisitions that were not applicable for the full
year ended December 31, 2021. |
|
|
● |
During 2021, the Company issued detachable warrants to purchase a
total of 2,127,500 shares of Common Stock in association with the
two underwritten public offerings that were completed which raised
total funds of approximately $66.6 million. The underlying warrant
agreement terms provide for net cash settlement outside the control
of the Company in the event of tender offers under certain
circumstances. As such, the Company was required to treat these
warrants as derivative liabilities which are valued at their
estimated fair value as of their issuance date and at each
reporting date with any subsequent changes reported in the
consolidated statements of operations as the change in fair value
of warrant derivative liabilities. The change in fair value from
the respective issuance dates to December 31, 2022 totaled
$6,726,638 which was recognized as a gain for the year ended
December 31, 2022, compared to $36,664,907 for the year ended
December 31, 2021. |
|
|
● |
On August 23, 2022, the Company entered into a Warrant Exchange
Agreement (the “Warrant Exchange Agreements”) with certain
investors (the “Investors”), pursuant to which the Company agreed
to issue to the Investors an aggregate of 303,750 shares of Common
Stock in exchange for the cancellation by the Investors of the
previously issued warrants to purchase an aggregate of up to
1,215,000 shares of common stock. |
|
|
● |
On December 8, 2022, 2022, the Company filed a Certificate of
Amendment to its Articles of Incorporation (“Articles”) with the
Secretary of State of the State of Nevada to increase the number of
authorized shares of its capital stock that the Company may issue
from 110,000,000 shares to 210,000,000 shares, of which 200,000,000
shares shall be classified as common stock, par value $0.001 per
share (the “Charter Amendment”). |
Recent Developments
● |
On January 1, 2022, the Company’s revenue cycle management segment
completed the acquisition of 100% of the capital stock of a third
medical billing company for a total purchase price of $2,100,000.
The purchase price includes $1.35 million in cash at closing and a
$750,000 contingent consideration promissory note bearing interest
at 3% per annum subject to adjustment based on revenues achieved
over an approximate 18-month period after closing. This
closely-held company provides revenue cycle management (RCM) and
other services for over 180 dental practices located throughout the
United States with an annual revenue run rate of approximately $3.5
million. |
|
|
● |
On February 1, 2022, the Company’s revenue cycle management segment
completed the acquisition of 100% of the assets of a fourth medical
billing company for a total purchase price of $335,000. The
purchase price includes $230,000 in cash at closing and a $105,000
contingent consideration promissory note bearing interest at 3% per
annum subject to adjustment based on revenues achieved over an
approximate 18-month period after closing. The acquisition provides
revenue cycle management (RCM) and other services throughout the
southwestern portion of United States with an annual revenue run
rate of approximately $440,000. |
|
|
● |
On December 6, 2021, the Board of Directors of the Company
authorized the repurchase of up to $10.0 million of the Company’s
outstanding common stock under the specified terms of a share
repurchase program (the “Program”). During the year ended December
31, 2022, the Company repurchased 186,299 shares of its common
stock for $4,026,523 in accordance with the Program. The Program
does not obligate the Company to acquire any specific number of
shares and shares may be repurchased in privately negotiated and/or
open market transactions, including under plans complying with Rule
10b5-1 under the Securities Exchange Act of 1934, as amended. On
June 30, 2022, the board of directors of the Company elected to
terminate the Program, effective immediately. The Program began in
December 2021, with the Company purchasing a total of 273,041
shares at a cost of $6,001,602 through June 30, 2022. |
|
|
● |
On February 6, 2023, we filed a Certificate of Amendment to the
Articles of Incorporation, as amended, with the Secretary of State
of the State of Nevada to effect a 1-for-20 reverse stock split
(the “Reverse Stock Split”) of the shares of our common stock. The
Reverse Stock Split was effective as of time of filing. No
fractional shares were issued in connection with the Reverse Stock
Split. Any fractional shares of our Common Stock that would have
otherwise resulted from the Reverse Stock Split were rounded up to
the nearest whole number. In connection with the Reverse Stock
Split, our board approved appropriate and proportional adjustments
to all outstanding securities or other rights convertible or
exercisable into shares of our Common Stock, including, without
limitation, all preferred stock, warrants, options, and other
equity compensation rights. The par value per share of our common
stock was not affected by the Reverse Stock Split. |
|
|
● |
As previously disclosed by Digital Ally, Inc. (the “Company”) in
its filings with the U.S. Securities and Exchange Commission, the
Company had received letters from The Nasdaq Stock Market LLC
(“Nasdaq”) notifying the Company of its non-compliance with Nasdaq
Listing Rule 5550(a)(2) (the “Minimum Bid Price Rule”) and granting
the Company extensions to demonstrate such compliance to Nasdaq. On
February 23, 2023, the Company received notice from Nasdaq
confirming that the Company has cured its bid price deficiency and
has fully regained compliance with the Minimum Bid Price
Requirement. |
|
|
Management Comments
Stanton E. Ross, Chief Executive Officer of
Digital Ally, stated, “We are very pleased to report a 73% increase
in total annual revenues for 2022 as compared to 2021. We are very
pleased with the traction gained in the marketplace with our new
products, consisting of our FirstVu Pro, FirstVu II, and QuickVu
docking stations; which are continuing to build upon our existing
subscription plans and deferred revenue. It is exciting to see our
deferred revenue balance nearly double throughout 2022, as our
contract liabilities went from a little over $4.3 million at
December 31, 2021, to nearly $8.0 million at December 31, 2022. We
continue to build excitement around the momentum being gained in
our Digital Ally Healthcare venture, as Nobility Healthcare, LLC
continues to complete acquisitions, as we completed two in 2021 and
two at the beginning of 2022, with the goal to maximize the
profitability of those accumulated acquisitions in 2023. The
numerous acquisitions we have already completed of medical billing
companies demonstrates our roll-up strategy is effective and
attractive to potential targets. We look forward to seeing the
growth potential of this venture come to fruition and continue
throughout 2023 and beyond.”
Ross added: “Additionally, we continue to be
thrilled with the addition of TicketSmarter to our growing holdings
of solid earnings and growth-potential businesses, as the
acquisition of TicketSmarter proved to be accretive to our revenue
growth in 2022. We are excited to maximize the profitability of
this subsidiary and have it work hand in hand with our new Kustom
440 subsidiary. Kustom 440 will be hosting its first festival on
May 13, 2022 in Kansas City, which the Company is very excited and
pleased with the sales thus far for this event. We believe
shareholders will benefit from TicketSmarter and Kustom 440’s
long-term value based on the multiples commanded by similar public
companies in the market. We continue to right size and adjust to
the nuances of each new subsidiary, as we learn to navigate and
effectively grow each of them. We will continue to inform our
investors as we attempt to take advantage of new business
opportunities and to maximize our existing business lines to
benefit the Company and its shareholders for 2023 and beyond.”
2022 Operating Results
For the year ended December 31, 2022, our total
revenue increased by 73% to approximately $37.0 million, compared
to revenue of approximately $21.4 million for the year ended
December 31, 2021.
Gross profit decreased 59% to $2,321,941 for the
year ended December 31, 2022 versus $5,663,775 in 2021. The overall
decrease is attributable to the large overall increase in revenues
for the year ended December 31, 2022 offset by an increase in the
overall cost of sales as a percentage of overall revenues to 94%
for the year ended December 31, 2022 from 74% for the year ended
December 31, 2021.
Selling, General and Administrative (“SG&A”)
expenses increased approximately 57% to $32,055,199 in the year
ended December 31, 2022 versus $20,424,685 in 2021. The increase
was primarily attributable to the recent acquisitions completed in
2021. Our selling, general and administrative expenses as a
percentage of sales decreased to 87% for 2022 compared to 96% in
the same period in 2021.
We reported an operating loss of $29,733,258 for
the year ended December 31, 2022, compared to an operating loss of
$14,760,910 in 2021.
Total other income decreased to $10,859,500 for
the year ended December 31, 2022, compared to total other income of
$40,291,871 in 2021. The decrease in other income was largely
attributable to the $6,726,638 change in fair value of warrant
derivative liabilities for the year ended December 31, 2022,
compared to the $36,664,907 change for the year ended December 31,
2021. The change in fair value of warrant derivative liabilities
was related to reductions in the value of the detachable common
stock purchase warrants issued in conjunction with the two
registered direct offerings we completed in 2021.
We reported a net loss attributable to common
stockholders of ($21,666,691), or ($8.50) per share, in the year
ended December 31, 2022 compared to a prior-year net income of
$25,474,508, or $10.14 per share. No income tax provision or
benefit was recorded in either 2022 or 2021 as the Company has
maintained a full valuation reserve on its deferred tax assets.
Investor Conference Call
The Company will host an investor
conference call at 11:15 a.m. EDT on Monday, April 3, 2023, to
discuss its 2022 financial results, corporate and individual
subsidiary outlook, and previously announced corporate spin-off.
Shareholders and other interested parties may participate in the
conference call by dialing 888-886-7786 and entering conference ID
#35877546 a few minutes before 11:15 a.m. Eastern on Monday, April
3, 2023.
A replay of the conference call will be
available two hours after its completion, from April 3, 2023 until
11:59 p.m. on June 4, 2023 through our company
website.
For additional news and information please visit
DigitalAllyCompanies.com or follow additional Digital Ally Inc.
social media channels here:
Facebook | Instagram | LinkedIn | Twitter
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Act of 1934. These
forward-looking statements are based largely on the expectations or
forecasts of future events, can be affected by inaccurate
assumptions, and are subject to various business risks and known
and unknown uncertainties, a number of which are beyond the control
of management. Therefore, actual results could differ materially
from the forward-looking statements contained in this press
release. A wide variety of factors that may cause actual results to
differ from the forward-looking statements include, but are not
limited to, the following: (1) our losses in recent years,
including fiscal years 2022 and 2021; (2) economic and other risks
for our business from the effects of the COVID-19 pandemic,
including the impacts on our law-enforcement and commercial
customers, suppliers and employees and on our ability to raise
capital as required; (3) our ability to increase revenues, increase
our margins and return to consistent profitability in the current
economic and competitive environment; (4) our operation in
developing markets and uncertainty as to market acceptance of our
technology and new products; (5) the availability of funding from
federal, state and local governments to facilitate the budgets of
law enforcement agencies, including the timing, amount and
restrictions on such funding; (6) our ability to deliver our new
product offerings as scheduled in 2023, and whether new products
perform as planned or advertised and whether they will help
increase our revenues; (7) whether we will be able to increase the
sales, domestically and internationally, for our products in the
future; (8) our ability to maintain or expand our share of the
market for our products in the domestic and international markets
in which we compete, including increasing our international
revenues; (9) our ability to produce our products in a
cost-effective manner; (10) competition from larger, more
established companies with far greater economic and human
resources; (11) our ability to attract and retain quality
employees; (12) risks related to dealing with governmental entities
as customers; (13) our expenditure of significant resources in
anticipation of sales due to our lengthy sales cycle and the
potential to receive no revenue in return; (14) characterization of
our market by new products and rapid technological change; (15)
that stockholders may lose all or part of their investment if we
are unable to compete in our markets and return to profitability;
(16) defects in our products that could impair our ability to sell
our products or could result in litigation and other significant
costs; (17) our dependence on key personnel; (18) our reliance on
third-party distributors and sales representatives for part of our
marketing capability; (19) our dependence on a few manufacturers
and suppliers for components of our products and our dependence on
domestic and foreign manufacturers for certain of our products;
(20) our ability to protect technology through patents and to
protect our proprietary technology and information, such as trade
secrets, through other similar means; (21) our ability to generate
more recurring cloud and service revenues; (22) risks related to
our license arrangements; (23) our revenues and operating results
may fluctuate unexpectedly from quarter to quarter; (24) sufficient
voting power by coalitions of a few of our larger stockholders,
including directors and officers, to make corporate governance
decisions that could have a significant effect on us and the other
stockholders; (25) the sale of substantial amounts of our Common
Stock that may have a depressive effect on the market price of the
outstanding shares of our Common Stock; (26) the possible issuance
of Common Stock subject to options and warrants that may dilute the
interest of stockholders; (27) our nonpayment of dividends and lack
of plans to pay dividends in the future; (28) future sale of a
substantial number of shares of our Common Stock that could depress
the trading price of our common stock, lower our value and make it
more difficult for us to raise capital; (29) our additional
securities available for issuance, which, if issued, could
adversely affect the rights of the holders of our Common Stock;
(30) our stock price is likely to be highly volatile due to a
number of factors, including a relatively limited public float;
(31) whether such technology will have a significant impact on our
revenues in the long-term; (32) whether we will be able to meet the
standards for continued listing on the Nasdaq Capital Market; (33)
indemnification of our officers and directors; and (34) risks
related to our proposed spin-off, including our ability to
consummate the transactions and our ability to realize some or all
of the anticipated benefits therefrom. These cautionary statements
should not be construed as exhaustive or as any admission as to the
adequacy of the Company’s disclosures. The Company cannot predict
or determine after the fact what factors would cause actual results
to differ materially from those indicated by the forward-looking
statements or other statements. The reader should consider
statements that include the words “believes,” “expects,”
“anticipates,” “intends,” “estimates,” “plans,” “projects,”
“should,” or other expressions that are predictions of or indicate
future events or trends, to be uncertain and forward-looking. It
does not undertake to publicly update or revise forward-looking
statements, whether because of new information, future events or
otherwise. Additional information respecting factors that could
materially affect the Company and its operations are contained in
its filings with the SEC.
For Additional Information, Please
Contact:Stanton E. Ross, CEO, at (913) 814-7774
orThomas J. Heckman, CFO, at (913)
814-7774
(Financial Highlights Follow)
DIGITAL ALLY,
INC.CONSOLIDATED BALANCE
SHEETSDECEMBER 31, 2022 AND 2021
|
|
2022 |
|
|
2021 |
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
3,532,199 |
|
|
$ |
32,007,792 |
|
Accounts receivable-trade, less allowance for doubtful accounts of
$152,736 – 2022 and $113,234 – 2021 |
|
|
2,044,056 |
|
|
|
2,727,052 |
|
Other receivables (including $138,384 due from related parties –
2022 and $158,384– 2021, refer to Note 19) |
|
|
4,076,522 |
|
|
|
2,021,813 |
|
Inventories, net |
|
|
6,839,406 |
|
|
|
9,659,536 |
|
Prepaid expenses |
|
|
8,466,413 |
|
|
|
9,728,782 |
|
|
|
|
|
|
|
|
|
|
Total current assets |
|
|
24,958,596 |
|
|
|
56,144,975 |
|
|
|
|
|
|
|
|
|
|
Property, plant, and
equipment, net |
|
|
7,898,686 |
|
|
|
6,841,026 |
|
Goodwill and other intangible
assets, net |
|
|
17,872,970 |
|
|
|
16,902,513 |
|
Operating lease right of use
assets, net |
|
|
782,129 |
|
|
|
993,384 |
|
Other assets |
|
|
5,155,681 |
|
|
|
2,107,299 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
56,668,062 |
|
|
$ |
82,989,197 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
9,477,355 |
|
|
$ |
4,569,106 |
|
Accrued expenses |
|
|
1,090,967 |
|
|
|
1,175,998 |
|
Current portion of operating lease obligations |
|
|
294,617 |
|
|
|
373,371 |
|
Contract liabilities – current |
|
|
2,154,874 |
|
|
|
1,665,519 |
|
Debt obligations – current |
|
|
485,373 |
|
|
|
389,934 |
|
Warrant derivative liabilities |
|
|
— |
|
|
|
14,846,932 |
|
Income taxes payable |
|
|
8,097 |
|
|
|
1,827 |
|
|
|
|
|
|
|
|
|
|
Total current liabilities |
|
|
13,511,283 |
|
|
|
23,022,687 |
|
|
|
|
|
|
|
|
|
|
Long-term liabilities: |
|
|
|
|
|
|
|
|
Debt obligations – long term |
|
|
442,467 |
|
|
|
727,278 |
|
Operating lease obligation – long term |
|
|
555,707 |
|
|
|
688,207 |
|
Contract liabilities – long term |
|
|
5,818,082 |
|
|
|
2,687,786 |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
20,327,539 |
|
|
|
27,125,958 |
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mezzanine equity: |
|
|
|
|
|
|
|
|
Series A Convertible Redeemable Preferred stock, $0.001 par value;
shares issued: 0 – 2022 and 0 – 2021 |
|
|
— |
|
|
|
— |
|
Series B Convertible Redeemable Preferred stock, $0.001 par value;
shares issued: 0 – 2022 and 0 – 2021 |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
Equity: |
|
|
|
|
|
|
|
|
Common stock, $0.001 par value; 200,000,000 shares authorized;
shares issued: 2,720,170 – 2022 and 2,545,220 – 2021 |
|
|
2,721 |
|
|
|
2,545 |
|
Additional paid in capital |
|
|
127,869,342 |
|
|
|
124,476,447 |
|
Noncontrolling interest in consolidated subsidiary |
|
|
448,694 |
|
|
|
56,453 |
|
Accumulated deficit |
|
|
(91,980,234 |
) |
|
|
(68,672,206 |
) |
|
|
|
|
|
|
|
|
|
Total equity |
|
|
36,340,523 |
|
|
|
55,863,239 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and
equity |
|
$ |
56,668,062 |
|
|
$ |
82,989,197 |
|
(FOR ADDITIONAL INFORMATION, PLEASE REFER TO THE
COMPANY’S ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER
31, 2022 FILED WITH THE SEC ON MARCH 31, 2023)
DIGITAL ALLY,
INC.CONSOLIDATED STATEMENTS OF
OPERATIONSFOR THE YEARS
ENDEDDECEMBER 31, 2022 AND 2021
|
|
2022 |
|
|
2021 |
|
Revenue: |
|
|
|
|
|
|
|
|
Product |
|
$ |
10,999,892 |
|
|
$ |
9,180,287 |
|
Service and other |
|
|
26,010,003 |
|
|
|
12,233,147 |
|
|
|
|
|
|
|
|
|
|
Total revenue |
|
|
37,009,895 |
|
|
|
21,413,434 |
|
|
|
|
|
|
|
|
|
|
Cost of revenue: |
|
|
|
|
|
|
|
|
Product |
|
|
14,372,115 |
|
|
|
8,635,047 |
|
Service and other |
|
|
20,315,839 |
|
|
|
7,114,612 |
|
|
|
|
|
|
|
|
|
|
Total cost of revenue |
|
|
34,687,954 |
|
|
|
15,749,659 |
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
2,321,941 |
|
|
|
5,663,775 |
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses: |
|
|
|
|
|
|
|
|
Research and development expense |
|
|
2,290,293 |
|
|
|
1,930,784 |
|
Selling, advertising and promotional expense |
|
|
9,312,204 |
|
|
|
5,717,824 |
|
General and administrative expense |
|
|
20,452,702 |
|
|
|
12,776,077 |
|
|
|
|
|
|
|
|
|
|
Total selling, general and
administrative expenses |
|
|
32,055,199 |
|
|
|
20,424,685 |
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
|
(29,733,258 |
) |
|
|
(14,760,910 |
) |
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
Interest income |
|
|
131,025 |
|
|
|
310,200 |
|
Interest expense |
|
|
(37,196 |
) |
|
|
(28,600 |
) |
Other expense |
|
|
(230,744 |
) |
|
|
— |
|
Change in fair value of
short-term investments |
|
|
(84,818 |
) |
|
|
(101,645 |
) |
Change in fair value of
warrant derivative liabilities |
|
|
6,726,638 |
|
|
|
36,664,907 |
|
Change in fair value of
contingent consideration promissory notes and earn-out
agreements |
|
|
516,970 |
|
|
|
3,732,789 |
|
Warrant modification
expense |
|
|
— |
|
|
|
(295,780 |
) |
Gain on the extinguishment of
debt |
|
|
— |
|
|
|
10,000 |
|
Gain on extinguishment of
warrant derivative liabilities |
|
|
3,624,794 |
|
|
|
— |
|
Gain on sale of property,
plant and equipment |
|
|
212,831 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
Total other income |
|
|
10,859,500 |
|
|
|
40,291,871 |
|
|
|
|
|
|
|
|
|
|
Income (loss) before income
tax expense (benefit) |
|
|
(18,873,758 |
) |
|
|
25,530,961 |
|
Income tax expense
(benefit) |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
|
(18,873,758 |
) |
|
|
25,530,961 |
|
|
|
|
|
|
|
|
|
|
Net income attributable to
noncontrolling interests of consolidated subsidiary |
|
|
(407,933 |
) |
|
|
(56,453 |
) |
|
|
|
|
|
|
|
|
|
Loss on redemption – Series A
& B convertible redeemable preferred stock |
|
|
(2,385,000 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable
to common stockholders |
|
$ |
(21,666,691 |
) |
|
$ |
25,474,508 |
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share
attributable to common information: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(8.50 |
) |
|
$ |
10.14 |
|
Diluted |
|
$ |
(8.50 |
) |
|
$ |
10.14 |
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
|
2,548,549 |
|
|
|
2,511,114 |
|
Diluted |
|
|
2,548,549 |
|
|
|
2,511,114 |
|
(FOR ADDITIONAL INFORMATION, PLEASE REFER TO THE
COMPANY’S ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER
31, 2022 FILED WITH THE SEC ON MARCH 31, 2023)
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