QMCO Quantum Corporation

Quantum Corporation (Nasdaq: QMCO) ("Quantum" or the "Company"), a leader in solutions for AI and unstructured data, announced today financial results for its fiscal second quarter 2025 ended September 30, 2024.

Fiscal Second Quarter 2025 Financial Summary

• Revenue was $70.5 million
• GAAP gross profit was $29.3 million, or 41.5% of revenue
• GAAP net loss was $13.5 million, or ($2.82) per share
• Subscription ARR was up 28% year-over-year at $19.6 million
• Adjusted non-GAAP net loss was $8.7 million, or ($1.82) per share
• Adjusted EBITDA was approximately breakeven

“Sales bookings and customer win rates for the quarter were consistent with our overall business expectations as we continued to transform the company,” stated Jamie Lerner, Chairman and CEO of Quantum. “However, operational headwinds with the supply chain continued this quarter, resulting in exiting the quarter with higher than anticipated backlog. Evidence of our transformation can be seen in the progress of gross margin improving 490 basis points sequentially to above 41%, as well as non-GAAP operating expenses being reduced by more than 8% year-over-year. These actions contributed to our achievement of breakeven adjusted EBITDA for the quarter.

“Our business strategy remains focused on high-priority growth initiatives, particularly around Myriad and ActiveScale as we are seeing demonstrated proof points of our ability to significantly expand within our target verticals. In FQ2'25, we achieved significant pipeline growth for Myriad and ActiveScale. An existing Quantum customer who was looking for a comprehensive solution with high-speed primary storage and a secure, cost-efficient, long-term storage solution purchased our Myriad and ActiveScale Cold Storage products, as a Quantum Go subscription. Additionally, as we maintain a strong base with our data protection offerings, Quantum’s recently launched DXi T-Series is the only solution in the market offering robust cyber-resilient features in a 1U, all-flash data protection appliance. We’ve had multiple strategic wins against the competition based on the DXi T-Series fast recovery times in the face of a cyberattack due to its leading data reduction and recovery rates. This is a testament to our continued investment in innovation and our laser focus on allowing our customers to recognize the value in their data.

“While our efforts are still short of the intended results, we are seeing positive proof points through our new product introductions, including Myriad traction, combined with driving a more operationally efficient business.”

Fiscal Second Quarter 2025 vs. Prior Year Quarter

Revenue for the fiscal second quarter of 2025 was $70.5 million, compared to $75.7 million in the fiscal second quarter of 2024, largely reflecting lower revenue contribution from primary storage. GAAP gross profit in the second quarter of 2025 was $29.3 million, or 41.5% of revenue, compared to $32.7 million, or 43.3% of revenue, in the prior fiscal year quarter.

Total GAAP operating expenses in the fiscal second quarter of 2025 were $36.2 million, or 51.4% of revenue, compared to $36.4 million, or 48.1% of revenue, in the fiscal second quarter of 2024. Selling, general and administrative expenses were $27.6 million, compared to $25.9 million in the prior fiscal year primarily driven by increased non-recurring new ERP systems spend along with accounting and tax work. Research and development expenses in the fiscal second quarter of 2025 were $8.3 million, compared to $9.2 million in the prior fiscal year quarter. Non-GAAP operating expenses in the second quarter of 2025 were $30.4 million, compared to $33.3 million in the fiscal second quarter of 2024.

GAAP net loss in the second quarter of fiscal 2025 was $13.5 million, or ($2.82) per share, which included a loss on debt extinguishment of $2.3 million and negative $1.2 million non-cash intercompany foreign currency adjustment, and compared to a GAAP net loss of $3.3 million, or ($0.70) per share in the prior fiscal year quarter. Excluding the income statement impact of the warrants, stock compensation, restructuring charges, and other non-recurring costs, non-GAAP adjusted net loss in the quarter was $8.7 million, or ($1.82) per share, compared to an adjusted net loss of $4.4 million, or ($0.93) per share in the fiscal second quarter of 2024.

Adjusted EBITDA in fiscal second quarter 2025 was essentially breakeven at ($0.3) million, compared to $1.7 million in the second quarter of fiscal year 2024 and a $3.0 million improvement sequentially.

For a reconciliation of GAAP to non-GAAP financial results, please see the financial reconciliation tables below.

Liquidity and Debt (as of September 30, 2024)

• Cash, cash equivalents and restricted cash were $17.0 million, compared to $25.8 million as of September 30, 2023.
• Total interest expense for the second quarter was $6.1 million, compared to $3.9 million for the same period a year ago.
• Outstanding term loan debt, excluding debt issuance costs, was $104.7 million, compared to $87.9 million as of September 30, 2023. Outstanding borrowings on revolving credit facility was $28.3 million, compared to $21.5 million as of September 30, 2023.

Guidance

For the fiscal third quarter of 2025, the Company expects the following guidance:

• Revenues of $72.0 million, plus or minus $2.0 million
• Non-GAAP adjusted basic net loss per share of ($0.75), plus or minus $0.05
• Adjusted EBITDA of approximately $2.0 million

This assumes an effective annual tax rate of negative 3%; non-GAAP adjusted net loss per share assumes an average basic share count of approximately 4.8 million in the fiscal third quarter of 2025.

Conference Call and Webcast

Management will host a live conference call today, November 13, 2024, at 5:00 p.m. ET (2:00 p.m. PT) to discuss these results. The conference call will be accessible by dialing 866-424-3436 (U.S. Toll-Free) or +1-201-689-8058 (International) and entering conference ID 13749710. This conference call will be broadcast live over the Internet with a slide presentation and can be accessed by all interested parties on the investor relations section of the Company's website at investors.quantum.com under the events and presentations tab.

A telephone replay of the conference call will be available approximately two hours after the conference call and will be available through November 20, 2024. To access the replay dial 1-877-660-6853 and enter the conference ID 13749710 at the prompt. International callers should dial +1-201-612-7415 and enter the same conference ID. Following the conclusion of the live call, a replay of the webcast will be available on the Company's website at www.quantum.com for at least 90 days.

About Quantum

Quantum delivers end-to-end data management solutions designed for the AI era. With over four decades of experience, our data platform has allowed customers to extract the maximum value from their unique, unstructured data. From high-performance ingest that powers AI applications and demanding data-intensive workloads, to massive, durable data lakes to fuel AI models, Quantum delivers the most comprehensive and cost-efficient solutions. Leading organizations in life sciences, government, media and entertainment, research, and industrial technology trust Quantum with their most valuable asset – their data. Quantum is listed on Nasdaq (QMCO). For more information visit www.quantum.com.

Quantum and the Quantum logo are registered trademarks of Quantum Corporation and its affiliates in the United States and/or other countries. All other trademarks are the property of their respective owners.

Forward-Looking Information

The results reported in this press release are preliminary and unaudited, and are subject to change. As the Company completes its financial close process and finalizes its financial statements for the fiscal 2025 second quarter, and as its independent auditors complete their review of the Company’s financial statements for the fiscal 2025 second quarter, it is possible the Company may identify items that require adjustments to the preliminary financial information set forth in this earnings report, and those changes could be material. The Company does not intend to update such financial information prior to the filing of its Quarterly Report on Form 10-Q with the Securities and Exchange Commission for the fiscal 2025 second quarter, except as otherwise required by law.

The information provided in this press release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 (“Exchange Act”). These forward-looking statements are largely based on our current expectations and projections about future events and financial trends affecting our business. Such forward-looking statements include, in particular, statements related to future projections of our financial results, including for the third fiscal quarter of 2025; improving traction on securing new deals for Myriad and ActiveScale products; the anticipated benefits of our restructured financing and our restructuring plans; and our focus and our strategy.

These forward-looking statements may be identified by the use of terms and phrases such as “anticipates”, “believes”, “can”, “could”, “estimates”, “expects”, “forecasts”, “intends”, “may”, “plans”, “projects”, “targets”, “will”, and similar expressions or variations of these terms and similar phrases. Additionally, statements concerning future matters and other statements regarding matters that are not historical are forward-looking statements. Investors are cautioned that these forward-looking statements relate to future events or our future performance and are subject to business, economic, and other risks and uncertainties, both known and unknown, that may cause actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements.

These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected, including without limitation, the following: risks related to the need to address the many challenges facing our business; the impact macroeconomic and inflationary conditions on our business, including potential disruptions to our supply chain, employees, operations, sales and overall market conditions; the competitive pressures we face; risks associated with executing our strategy; the distribution of our products and the delivery of our services effectively; the development and transition of new products and services and the enhancement of existing products and services to meet customer needs and respond to emerging technological trends; estimates and assumptions related to the cost (including any possible disruption of our business) and the anticipated benefits of the transformation and restructuring plans; the outcome of any claims and disputes; the ability to meet stock exchange continued listing standards; the possibility that the Nasdaq may delist our common stock; risks related to our ability to implement and maintain effective internal control over financial reporting in the future; and other risks that are described herein, including but not limited to the items discussed in “Risk Factors” in our filings with the Securities and Exchange Commission (the “SEC”), including our Annual Report on Form 10-K filed with the Securities and Exchange Committee on June 28, 2024, and any subsequent reports filed with the SEC. We do not intend to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

QUANTUM CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts, unaudited)

 

 

September 30, 2024

 

March 31, 2024

Assets

 

 

 

 

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

16,719

 

 

$

25,692

 

Restricted cash

 

241

 

 

 

168

 

Accounts receivable, net of allowance for credit losses of $99 and $22, respectively

 

51,073

 

 

 

67,788

 

Manufacturing inventories

 

18,965

 

 

 

17,753

 

Service parts inventories

 

9,028

 

 

 

9,783

 

Prepaid expenses

 

3,632

 

 

 

2,186

 

Other current assets

 

9,195

 

 

 

8,414

 

Total current assets

 

108,853

 

 

 

131,784

 

Property and equipment, net

 

11,334

 

 

 

12,028

 

Goodwill

 

12,969

 

 

 

12,969

 

Intangible assets, net

 

742

 

 

 

1,669

 

Right-of-use assets, net

 

9,164

 

 

 

9,425

 

Other long-term assets

 

20,084

 

 

 

19,740

 

Total assets

$

163,146

 

 

$

187,615

 

Liabilities and Stockholders’ Deficit

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

30,789

 

 

$

26,087

 

Accrued compensation

 

13,864

 

 

 

18,214

 

Deferred revenue, current portion

 

69,369

 

 

 

78,511

 

Term debt, current portion

 

1,579

 

 

 

82,496

 

Revolving credit facility

 

—

 

 

 

26,604

 

Warrant liabilities

 

2,499

 

 

 

4,046

 

Other accrued liabilities

 

16,501

 

 

 

13,986

 

Total current liabilities

 

134,601

 

 

 

249,944

 

Deferred revenue, net of current portion

 

37,164

 

 

 

38,176

 

Revolving credit facility

 

28,300

 

 

 

—

 

Term debt, net of current portion

 

94,746

 

 

 

—

 

Operating lease liabilities

 

9,366

 

 

 

9,621

 

Other long-term liabilities

 

12,372

 

 

 

11,372

 

Total liabilities

 

316,549

 

 

 

309,113

 

 

 

 

 

Stockholders' deficit

 

 

 

Preferred stock, 20,000 shares authorized; no shares issued and outstanding

 

—

 

 

 

—

 

Common stock, $0.01 par value; 225,000 shares authorized; 4,793 and 4,793 shares issued and outstanding

 

49

 

 

 

49

 

Additional paid-in capital

 

709,667

 

 

 

708,026

 

Accumulated deficit

 

(861,727

)

 

 

(827,380

)

Accumulated other comprehensive loss

 

(1,392

)

 

 

(2,193

)

Total stockholders’ deficit

 

(153,403

)

 

 

(121,498

)

Total liabilities and stockholders’ deficit

$

163,146

 

 

$

187,615

 

QUANTUM CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(in thousands, except per share amounts, unaudited)

 

 

Three Months Ended September 30,

 

Six Months Ended September 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Revenue:

 

 

 

 

 

 

 

Product

$

36,785

 

 

$

42,947

 

 

$

77,779

 

 

$

101,522

 

Service and subscription

 

31,321

 

 

 

30,505

 

 

 

58,768

 

 

 

61,458

 

Royalty

 

2,363

 

 

 

2,228

 

 

 

5,265

 

 

 

5,194

 

Total revenue

 

70,469

 

 

 

75,680

 

 

 

141,812

 

 

 

168,174

 

Cost of revenue:

 

 

 

 

 

 

 

Product

 

29,774

 

 

 

30,719

 

 

 

62,330

 

 

 

75,170

 

Service and subscription

 

11,427

 

 

 

12,225

 

 

 

24,080

 

 

 

24,628

 

Total cost of revenue

 

41,201

 

 

 

42,944

 

 

 

86,410

 

 

 

99,798

 

Gross profit

 

29,268

 

 

 

32,736

 

 

 

55,402

 

 

 

68,376

 

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing

 

13,578

 

 

 

15,717

 

 

 

26,872

 

 

 

31,557

 

General and administrative

 

13,977

 

 

 

10,241

 

 

 

35,043

 

 

 

22,940

 

Research and development

 

8,264

 

 

 

9,152

 

 

 

16,572

 

 

 

20,065

 

Restructuring charges

 

383

 

 

 

1,338

 

 

 

1,574

 

 

 

2,667

 

Total operating expenses

 

36,202

 

 

 

36,448

 

 

 

80,061

 

 

 

77,229

 

Loss from operations

 

(6,934

)

 

 

(3,712

)

 

 

(24,659

)

 

 

(8,853

)

Other income (expense), net

 

(1,334

)

 

 

367

 

 

 

(1,375

)

 

 

(630

)

Interest expense

 

(6,131

)

 

 

(3,855

)

 

 

(9,921

)

 

 

(7,055

)

Change in fair value of warrant liabilities

 

3,550

 

 

 

4,402

 

 

 

5,216

 

 

 

5,128

 

Loss on debt extinguishment

 

(2,308

)

 

 

—

 

 

 

(3,003

)

 

 

—

 

Net loss before income taxes

 

(13,157

)

 

 

(2,798

)

 

 

(33,742

)

 

 

(11,410

)

Income tax provision

 

370

 

 

 

533

 

 

 

605

 

 

 

1,063

 

Net loss

$

(13,527

)

 

$

(3,331

)

 

$

(34,347

)

 

$

(12,473

)

 

 

 

 

 

 

 

 

Net loss per share attributable to common stockholders - basic

$

(2.82

)

 

$

(0.70

)

 

$

(7.17

)

 

$

(2.64

)

Net loss per share attributable to common stockholders - diluted

$

(2.82

)

 

$

(0.70

)

 

$

(7.17

)

 

$

(2.64

)

Weighted average shares - basic

 

4,793

 

 

 

4,751

 

 

 

4,793

 

 

 

4,717

 

Weighted average shares - diluted

 

4,793

 

 

 

4,751

 

 

 

4,793

 

 

 

4,717

 

 

 

 

 

 

 

 

 

Net loss

$

(13,527

)

 

$

(3,331

)

 

$

(34,347

)

 

$

(12,473

)

Foreign currency translation adjustments, net

 

659

 

 

 

(720

)

 

 

801

 

 

 

(471

)

Total comprehensive loss

$

(12,868

)

 

$

(4,051

)

 

$

(33,546

)

 

$

(12,944

)

QUANTUM CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands, unaudited)

 

 

Six Months Ended September 30,

 

 

2024

 

 

 

2023

 

Operating activities

 

 

 

Net loss

$

(34,347

)

 

$

(12,473

)

Adjustments to reconcile net loss to net cash used in operating activities

 

 

 

Depreciation and amortization

 

3,347

 

 

 

5,295

 

Amortization of debt issuance costs

 

2,081

 

 

 

1,234

 

Loss on debt extinguishment

 

3,003

 

 

 

—

 

Provision for product and service inventories

 

1,167

 

 

 

892

 

Stock-based compensation

 

1,641

 

 

 

2,831

 

Paid in kind interest

 

1,844

 

 

 

777

 

Change in fair value of warrant liabilities

 

(5,216

)

 

 

(5,127

)

Other non-cash

 

851

 

 

 

49

 

Changes in assets and liabilities:

 

 

 

Accounts receivable, net

 

16,638

 

 

 

21,109

 

Manufacturing inventories

 

(2,168

)

 

 

(2,070

)

Service parts inventories

 

543

 

 

 

(1,505

)

Prepaid expenses

 

(1,446

)

 

 

8

 

Accounts payable

 

5,253

 

 

 

(9,073

)

Accrued compensation

 

(4,350

)

 

 

(1,946

)

Deferred revenue

 

(10,153

)

 

 

(9,269

)

Other current assets

 

(780

)

 

 

115

 

Other non-current assets

 

1,280

 

 

 

(2,354

)

Other current liabilities

 

2,556

 

 

 

(1,602

)

Other non-current liabilities

 

1,062

 

 

 

1,764

 

Net cash used in operating activities

 

(17,194

)

 

 

(11,345

)

Investing activities

 

 

 

Purchases of property and equipment

 

(3,228

)

 

 

(3,925

)

Net cash used in investing activities

 

(3,228

)

 

 

(3,925

)

Financing activities

 

 

 

Borrowings of long-term debt, net of debt issuance costs

 

24,655

 

 

 

14,083

 

Repayments of long-term debt

 

(13,537

)

 

 

(3,247

)

Borrowings of credit facility

 

209,852

 

 

 

217,084

 

Repayments of credit facility

 

(209,445

)

 

 

(213,082

)

Net cash provided by financing activities

 

11,525

 

 

 

14,838

 

Effect of exchange rate changes on cash, cash equivalents and restricted cash

 

(3

)

 

 

11

 

Net change in cash, cash equivalents and restricted cash

 

(8,900

)

 

 

(421

)

Cash, cash equivalents, and restricted cash at beginning of period

 

25,860

 

 

 

26,175

 

Cash, cash equivalents, and restricted cash at end of period

$

16,960

 

 

$

25,754

 

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the statement of cash flows:

Cash and cash equivalents

$

16,719

 

 

$

25,574

 

Restricted cash, current

 

241

 

 

 

180

 

Cash and cash equivalents at the end of period

$

16,960

 

 

$

25,754

 

Supplemental disclosure of cash flow information

 

 

 

Cash paid for interest

$

5,539

 

 

$

6,079

 

Cash paid for income taxes, net

$

1,304

 

 

$

831

 

Non-cash transactions

 

 

 

Purchases of property and equipment included in accounts payable

$

312

 

 

$

689

 

Paid-in-kind interest

$

1,844

 

 

$

777

 

 

 

 

 

NON-GAAP FINANCIAL MEASURES

To provide investors with additional information regarding our financial results, we have presented certain non-GAAP financial measures in this press release, including non-GAAP adjusted net loss, adjusted EBITDA, non-GAAP gross profit and non-GAAP operational expenses.

Adjusted EBITDA is a non-GAAP financial measure defined by us as net loss before interest expense, net, provision for income taxes, depreciation and amortization expense, stock-based compensation expense, restructuring charges, amortization of acquisition-related intangible assets, loss on debt extinguishment, non-recurring project costs, including restatement and debt-related matters and fair value of warrants adjustments.

“GAAP net loss” as referred to in this press release represents “Net loss attributable to common stockholders”. Non-GAAP adjusted net income (loss) is a non-GAAP financial measure defined by us as net loss before restructuring charges, stock-based compensation expense, amortization of acquisition-related intangible assets, loss on debt extinguishment, non-recurring project costs, including restatement and debt-related matters and fair value of warrants adjustments. We calculate adjusted net income (loss) per basic and diluted share using the above-referenced definition of adjusted net income (loss).

We have provided below reconciliations of adjusted EBITDA to adjusted net income (loss), non-GAAP gross profit and non-GAAP operational expenses, to the most directly comparable U.S. GAAP financial measures. We have presented adjusted EBITDA because it is a key measure used by our management and the board of directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short and long-term operating plans. In particular, we believe that the exclusion of the amounts eliminated in calculating adjusted EBITDA can provide a useful measure for period-to-period comparisons of our core business performance. For example, in the quarter ended September 30, 2022, we have excluded a large inventory reserve provision caused by global supply chain disruptions since the start of the pandemic and the longer associated lead times that resulted in older generation products being displaced by next-generation solutions. We do not believe an inventory adjustment of this magnitude is reasonably likely to reoccur in the foreseeable future and do not believe it is indicative of our ongoing operations; accordingly, we have excluded its impact from our non-GAAP results. We believe adjusted net income (loss) and adjusted net income (loss) per basic and diluted share serve as appropriate measures to be used in evaluating the performance of our business and help our investors better compare our operating performance over multiple periods. Accordingly, we believe that the use of non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and our board of directors.

Our use of non-GAAP financial measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our financial results as reported under U.S. GAAP. Some of these limitations are as follows:

• Although depreciation and amortization expense are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements.
• Adjusted EBITDA does not reflect: (1) interest and tax payments that may represent a reduction in cash available to us; (2) capital expenditures, future requirements for capital expenditures or contractual commitments; (3) changes in, or cash requirements for, working capital needs; (4) the potentially dilutive impact of stock-based compensation expense; (5) potential future costs related to our long-term debt; (6) potential future restructuring expenses; (7) potential future costs related to business acquisitions; (8) gain (loss) on debt extinguishment, (9) and acquisition-related amortization of intangibles assets from business combinations, or (10) fair market adjustments related to the Company’s warrants.
• Adjusted net income (loss) does not reflect: (1) potential future restructuring activities; (2) the potentially dilutive impact of stock-based compensation expense; (3) potential future costs related to our long-term debt; (4) potential future costs related to business acquisitions; (5) gain (loss) on debt extinguishment; (6) acquisition-related amortization of intangibles assets from business combinations; or (7) fair market adjustments related to the Company’s warrants.

Other companies, including companies in our industry, may calculate non-GAAP financial measures differently, which reduces its usefulness as a comparative measure. Because of these and other limitations, you should consider adjusted EBITDA and adjusted net income (loss) along with other U.S. GAAP-based financial performance measures, including various cash flow metrics and our U.S. GAAP financial results.

In addition, this press release includes forward-looking non-GAAP adjusted earnings or net loss per share and adjusted EBITDA, each a non-GAAP measure used to describe our expected performance. We have not presented a reconciliation of these anticipated non-GAAP measures to our most comparable GAAP financial measures, because the reconciliation could not be prepared without unreasonable effort. The information necessary to prepare the reconciliations is not available on a forward-looking basis and cannot be accurately predicted. The unavailable information could have a significant impact on the calculation of the comparable GAAP financial measure.

The tables below reconcile the non-GAAP financial measures of adjusted EBITDA, net income, diluted EPS, operating expenses and gross margin with the most directly comparable GAAP financial measures (in thousands, unaudited).

Adjusted EBITDA

 

 

Three Months Ended September 30,

 

Six Months Ended September 30,

(in thousands)

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

GAAP net loss

$

(13,527

)

 

$

(3,331

)

 

$

(34,347

)

 

$

(12,473

)

Provision for income taxes​

 

370

 

 

 

533

 

 

 

605

 

 

 

1,063

 

Interest expense, net​

 

6,255

 

 

 

3,855

 

 

 

10,160

 

 

 

7,056

 

Depreciation expense​

 

1,952

 

 

 

1,561

 

 

 

3,270

 

 

 

3,173

 

Amortization of acquisition-related intangible assets​

 

465

 

 

 

982

 

 

 

927

 

 

 

2,122

 

Stock-based compensation expense​

 

716

 

 

 

939

 

 

 

1,641

 

 

 

2,831

 

Fair value of warrants adjustments​

 

(3,550

)

 

 

(4,402

)

 

 

(5,216

)

 

 

(5,128

)

Restructuring charges​

 

1,419

 

 

 

1,338

 

 

 

2,611

 

 

 

2,667

 

Loss on debt extinguishment

 

2,308

 

 

 

—

 

 

 

3,003

 

 

 

—

 

Debt costs

 

1,227

 

 

 

—

 

 

 

1,227

 

 

 

—

 

Non-recurring project costs​

 

2,078

 

 

 

219

 

 

 

12,728

 

 

 

1,853

 

Adjusted EBITDA

$

(287

)

 

$

1,694

 

 

$

(3,391

)

 

$

3,164

 

Non-GAAP adjusted net loss and net loss per share

 

 

Three Months Ended September 30,

 

Six Months Ended September 30,

(in thousands)

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

GAAP net loss

$

(13,527

)

 

$

(3,331

)

 

$

(34,347

)

 

$

(12,473

)

Amortization of acquisition-related intangible assets​

 

465

 

 

 

982

 

 

 

927

 

 

 

2,122

 

Fair value of warrants adjustments​

 

(3,550

)

 

 

(4,402

)

 

 

(5,216

)

 

 

(5,128

)

Stock-based compensation expense​

 

716

 

 

 

939

 

 

 

1,641

 

 

 

2,831

 

Restructuring charges​

 

1,419

 

 

 

1,338

 

 

 

2,611

 

 

 

2,667

 

Loss on debt extinguishment

 

2,308

 

 

 

—

 

 

 

3,003

 

 

 

—

 

Non-recurring interest expense

 

124

 

 

 

—

 

 

 

240

 

 

 

—

 

Debt costs

 

1,227

 

 

 

—

 

 

 

1,227

 

 

 

—

 

Non-recurring project costs​

 

2,078

 

 

 

95

 

 

 

12,728

 

 

 

1,447

 

Adjusted net loss

$

(8,740

)

 

$

(4,379

)

 

$

(17,186

)

 

$

(8,534

)

 

 

 

 

 

 

 

 

​​Adjusted net loss per share – basic

$

(1.82

)

 

$

(0.93

)

 

$

(3.59

)

 

$

(1.81

)

Adjusted net loss per share - diluted

$

(1.82

)

 

$

(0.93

)

 

$

(3.59

)

 

$

(1.81

)

Weighted average shares – basic

 

4,793

 

 

 

4,751

 

 

 

4,793

 

 

 

4,717

 

Weighted average shares - diluted

 

4,793

 

 

 

4,751

 

 

 

4,793

 

 

 

4,717

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20241113528030/en/

Investor Relations Contacts: Shelton Group Leanne K. Sievers | Brett L. Perry P: 214-272-0070 E: sheltonir@sheltongroup.com