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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 10-Q

 

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2024

 

OR

 

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ____________to _______________.

 

Commission File Number: 001-35988

 

Vislink Technologies, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware   20-5856795

(State or other jurisdiction

of incorporation or organization)

  

(IRS Employer

Identification No.)

 

350 Clark Drive, Suite 125,

Mt. Olive, NJ 07828

(Address of Principal Executive Offices)

 

(908) 852-3700

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
Common stock par value $0.00001 per share   VISL   The Nasdaq Capital Market

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such a shorter period than the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such a shorter period than the registrant was required to submit such files). Yes ☒ No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer ☐ Accelerated filer ☐
Non-accelerated filer ☒ Smaller reporting company ☒
  Emerging growth company ☐

 

If an emerging growth company, indicate by a checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

 

The registrant had 2,464,419 shares of its common stock outstanding as of November 12, 2024.

 

 

 

 

 

 

VISLINK TECHNOLOGIES, INC.

QUARTERLY REPORT ON FORM 10-Q

For the nine months ended September 30, 2024

 

  Page
Number
PART I: FINANCIAL INFORMATION  
Item 1. Financial Statements 1
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 20
Item 3. Quantitative and Qualitative Disclosures About Market Risk 25
Item 4. Controls and Procedures 25
   
PART II. OTHER INFORMATION  
Item 1. Legal Proceedings 26
Item 1A. Risk Factors 26
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 26
Item 3. Defaults Upon Senior Securities 26
Item 4. Mine Safety Disclosures 26
Item 5. Other Information 26
Item 6. Exhibits 27
SIGNATURES 28

 

 

 

 

PART I: FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

Index to Condensed Consolidated Financial Statements

 

Condensed Consolidated Balance Sheets as of September 30, 2024 (unaudited) and December 31, 2023 3
Unaudited Condensed Consolidated Statements of Operations and Other Comprehensive Loss for the three and nine months ended September 30, 2024, and 2023 4
Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three and nine months ended September 30, 2024 5
Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three and nine months ended September 30, 2023 6
Unaudited Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2024, and 2023 7
Notes to Unaudited Condensed Consolidated Financial Statements 9

 

1

 

 

FORWARD-LOOKING INFORMATION

 

This Quarterly Report on Form 10-Q (including the section regarding Management’s Discussion and Analysis of Financial Condition and Results of Operations) (the “Report”) contains forward-looking statements regarding our business, financial condition, results of operations, and prospects. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” and similar words and phrases are intended to identify forward-looking statements. However, this report does not include an all-inclusive list of words or phrases identifying forward-looking statements. Also, all information concerning future matters is forward-looking statements.

 

Although forward-looking statements in this Report reflect our management’s good faith judgment, such information is based on facts and circumstances the Company currently knows. Forward-looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from those discussed in or anticipated by the forward-looking statements. Without limitation, factors that could cause or contribute to such differences in results and outcomes include those discussed in this Report.

 

The Company files reports with the Securities and Exchange Commission (“SEC”), and those reports are available free of charge on our website (www.vislink.com). The reports available include our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports, which are available as soon as reasonably practicable after the Company electronically files such materials or furnishes them to the SEC. You can also read and copy any materials the Company files with the SEC at the SEC’s Public Reference Room at 100 F Street, N.E., Washington, DC 20549. You can obtain additional information about the Public Reference Room’s operation by calling the SEC at 1-800-SEC-0330. The SEC also maintains an Internet site (www.sec.gov) containing reports, proxies, information statements, and other information regarding issuers who file electronically with the SEC, including us.

 

We undertake no obligation to revise or update any forward-looking statements to reflect any event or circumstance that may arise after the date of this Report. We urge you to carefully review and consider all the disclosures made in this Report.

 

REFERENCES TO VISLINK

 

In this Quarterly Report, unless otherwise stated or the context otherwise indicates, references to “VISL,” “Vislink,” “the Company,” “the Corporation,” “we,” “us,” “our,” and similar references refer to Vislink Technologies, Inc., a Delaware corporation.

 

2

 

 

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)

 

   September 30, 2024   December 31, 2023 
   (unaudited)     
ASSETS          
Current assets          
Cash and cash equivalents  $3,213   $8,482 
Accounts receivable, net   8,252    8,680 
Inventories, net   15,265    14,029 
Investments held to maturity   5,975    5,731 
Prepaid expenses and other current assets   1,992    1,560 
Total current assets   34,697    38,482 
Right of use assets, operating leases   504    742 
Property and equipment, net   2,155    1,902 
Intangible assets, net   3,052    3,866 
Total assets  $40,408   $44,992 
LIABILITIES AND STOCKHOLDERS’ EQUITY          
Current liabilities          
Accounts payable  $3,211   $3,183 
Accrued expenses   1,675    1,578 
Notes payable   230    — 
Operating lease obligations, current   513    463 
Customer deposits and deferred revenue   1,983    1,490 
Total current liabilities   7,612    6,714 
Operating lease obligations, net of current portion   376    755 
Deferred tax liabilities   430    546 
Total liabilities   8,418    8,015 
Commitments and contingencies (See Note 12)   -    - 
Stockholders’ equity          
Series A Preferred stock, $0.00001 par value per share: -0- shares authorized on September 30, 2024, and December 31, 2023, respectively; -0- shares issued and outstanding on September 30, 2024, and December 31, 2023, respectively.   —    — 
Common stock, $0.00001 par value per share, 100,000,000 shares authorized on September 30, 2024, and December 31, 2023, respectively: Common stock, 2,464,398 and 2,439,923 were issued, and 2,464,265 and 2,439,790 were outstanding on September 30, 2024, and December 31, 2023, respectively.   —    — 
Additional paid-in capital   348,548    347,507 
Accumulated other comprehensive loss   (827)   (1,027)
Treasury stock, at cost – 133 shares as of September 30, 2024, and December 31, 2023, respectively   (277)   (277)
Accumulated deficit   (315,454)   (309,226)
Total stockholders’ equity   31,990    36,977 
Total liabilities and stockholders’ equity  $40,408   $44,992 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

3

 

 

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
OTHER COMPREHENSIVE LOSS
(IN THOUSANDS EXCEPT NET LOSS PER SHARE DATA)

 

   2024   2023   2024   2023 
   For the Three Months Ended   For the Nine Months Ended 
   September 30,   September 30, 
   2024   2023   2024   2023 
                 
Revenue, net  $7,066   $7,179   $24,366   $19,410 
Cost of revenue and operating expenses                    
Cost of components and personnel   3,485    3,302    10,846    8,977 
Inventory valuation adjustments   310    176    744    480 
General and administrative expenses   5,050    4,793    16,262    14,500 
Research and development expenses   1,160    805    2,925    2,480 
Impairment on right-of-use assets   —    83    —    83 
Depreciation and amortization   321    311    1,011    913 
Total cost of revenue and operating expenses   10,326    9,470    31,788    27,433 
Loss from operations   (3,260)   (2,291)   (7,422)   (8,023)
Other income (expense)                    
Unrealized gain (loss) on investments held to maturity   84    (4)   229    (67)
Other income (loss)   26    (36)   400    294 
Dividend income   47    104    185    323 
Interest income, net   86    202    264    555 
Total other income   243    266    1,078    1,105 
Net loss before income taxes   (3,017)   (2,025)   (6,344)   (6,918)
Income taxes                    
Deferred tax benefits   7    55    116    164 
Net loss  $(3,010)  $(1,970)  $(6,228)  $(6,754)
                     
Basic and diluted loss per share  $(1.22)  $(0.83)  $(2.54)  $(2.84)
Weighted average number of shares outstanding:                    
Basic and diluted   2,464    2,382    2,454    2,377 
Comprehensive loss:                    
Net loss  $(3,010)  $(1,970)  $(6,228)  $(6,754)
Unrealized gain (loss) on currency translation adjustment   566    (364)   200    (64)
Comprehensive loss  $(2,444)  $(2,334)  $(6,028)  $(6,818)

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

4

 

 

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024

(IN THOUSANDS, EXCEPT SHARE DATA)

 

Three months ended September 30, 2024:

 

   Shares   Amount   Shares   Amount   Capital   Income (Loss)   Stock   Deficit   Total 
                       Accumulated             
   Series A           Additional   Other             
   Preferred Stock   Common Stock   Paid In   Comprehensive   Treasury   Accumulated     
   Shares   Amount   Shares   Amount   Capital   Income (Loss)   Stock   Deficit   Total 
                                     
Balance, June 30, 2024   —   $—    2,452,482   $—   $348,349   $(1,393)  $(277)  $(312,444)  $34,235 
                                              
Net loss   —    —    —    —    —    —    —    (3,010)   (3,010)
Unrealized gain on currency translation adjustment   —    —    —    —    —    566    —    —    566 
Issuance of common stock in connection with:                                             
Compensation awards for services previously accrued   —    —    —    —    —    —    —    —    — 
Satisfaction with the conversion of restricted stock unit awards   —    —    11,916    —    —    —    —    —    — 
Stock-based compensation   —    —    —    —    199    —    —    —    199 
Balance, September 30, 2024   —   $—    2,464,398   $—   $348,548   $(827)  $(277)  $(315,454)  $31,990 

 

Nine months ended September 30, 2024:

 

                       Accumulated             
   Series A           Additional   Other             
   Preferred Stock   Common Stock   Paid In   Comprehensive   Treasury   Accumulated     
   Shares   Amount   Shares   Amount   Capital   Income (Loss)   Stock   Deficit   Total 
                                     
Balance, January 1, 2024   —   $—    2,439,923   $—   $347,507   $(1,027)  $(277)  $(309,226)  $36,977 
Net loss   —    —    —    —    —    —    —    (6,228)   (6,228)
Unrealized gain on currency translation adjustment   —    —    —    —    —    200    —    —    200 
Issuance of common stock in connection with:                                             
Compensation awards for services previously accrued   —    —    8,000    —    160    —    —    —    160 
Satisfaction with the conversion of restricted stock unit awards   —    —    16,475    —    —    —    —    —    — 
Stock-based compensation   —    —    —    —    881    —    —    —    881 
Balance, September 30, 2024   —   $—    2,464,398   $—   $348,548   $(827)  $(277)  $(315,454)  $31,990 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

5

 

 

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2023

(IN THOUSANDS, EXCEPT SHARE DATA)

 

                       Accumulated             
   Series A           Additional   Other             
   Preferred Stock   Common Stock   Paid In   Comprehensive   Treasury   Accumulated     
   Shares   Amount   Shares   Amount   Capital   Income (Loss)   Stock   Deficit   Total 
                                     
Three months ended September 30, 2023:                                                  
                                     
Balance, July 1, 2023         —   $    —    2,377,362   $—   $346,822   $(1,037)  $(277)  $(304,883)  $40,625 
Net loss   —    —    —    —    —    —    —    (1,970)   (1,970)
Unrealized loss on currency translation adjustment   —    —    —    —    —    (364)   —    —    (364)
Issuance of common stock in connection with:                                             
Satisfaction with the conversion of restricted stock unit awards   —    —    10,234    —    —    —    —    —    — 
Stock-based compensation   —    —    —    —    343    —    —    —    343 
Balance, September 30, 2023   —   $—    2,387,596   $—   $347,165   $(1,401)  $(277)  $(306,853)  $38,634 

 

Nine months ended September 30, 2023:

 

Balance, January 1, 2023*   47,419   $—    2,367,362   $—   $345,365   $(1,337)  $(277)  $(300,099)  $43,652 
Net loss                —                —                   —               —                —               —              —    (6,754)   (6,754)
Unrealized loss on currency translation adjustment   —    —    —    —    —    (64)   —    —    (64)
Elimination of Series A Preferred Stock   (47,419)   —    —    —    —    —    —    —    — 
Issuance of common stock in connection with:                                             
Compensation awards for services previously accrued   —    —    10,000    —    200    —    —                 —                200 
Satisfaction with the conversion of restricted stock unit awards   —    —    10,234    —    —    —    —    —    — 
Stock-based compensation   —    —    —    —    1,600    —    —    —    1,600 
Balance, September 30, 2023   —   $—    2,387,596   $—   $347,165   $(1,401)  $(277)  $(306,853)  $38,634 

 

* In connection with the reverse stock split implemented by the Company on May 1, 2023, the Company’s stock transfer agent calculated a de minimus adjustment to the opening quantity of shares issued.

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

6

 

 

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(IN THOUSANDS)

 

   2024   2023 
  

For the Nine Months Ended

September 30,

 
   2024   2023 
         
Cash flows used in operating activities          
Net loss  $(6,228)  $(6,754)
Adjustments to reconcile net loss to net cash used in operating activities          
Deferred tax benefits   (116)   (164)
Unrealized (gain) loss on the fair value of investments in bonds held to maturity   (229)   67 
Accretion of bond discount   (15)   (224)
Stock-based compensation   881    1,600 
Provision for bad debt   213    64 
Recovery of bad debt   —    (8)
Inventory valuation adjustments   744    480 
Amortization of right-of-use assets, operating assets   236    276 
Depreciation and amortization   1,011    913 
Impairment on right-of-use assets   —    83 
Changes in assets and liabilities          
Accounts receivable   416    (1,400)
Inventories   (1,424)   (1,598)
Prepaid expenses and other current assets   64    (278)
Accounts payable   28    505 
Accrued expenses   96    445 
Accrued director’s compensation   160    (5)
Operating lease obligations   (329)   (367)
Customer deposits and deferred revenue   493    373 
Net cash used in operating activities   (3,999)   (5,992)
Cash flows used in investing activities          
Cash used for investments held to maturity   (949)   (10,763)
Cash used in asset acquisition   —    (269)
Proceeds from bond redemption   950    — 
Cash used for property and equipment   (519)   (502)
Net cash used in investing activities   (518)   (11,534)
Cash flows used in financing activities          
Principal payments made on notes payable   (280)   (409)
Net cash used in financing activities   (280)   (409)
Effect of exchange rate changes on cash   (472)   (452)
Net decrease in cash and cash equivalents   (5,269)   (18,387)
Cash and cash equivalents, beginning of the period   8,482    25,627 
Cash and cash equivalents, end of the period  $3,213   $7,240 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

7

 

 

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (continued)

(IN THOUSANDS)

 

   2024   2023 
  

For the Nine Months Ended

September 30,

 
   2024   2023 
         
Supplemental disclosure of cash flow information:          
Cash paid during the period for interest  $12   $11 
Supplemental disclosure of non-cash information:          
Notes payable  $510   $523 
Common stock issued in connection with:          
Compensation awards previously accrued  $160   $200 
ROU assets and operating lease obligations recognized (Note 9):          
Operating lease assets recognized  $—   $— 
Less: non-cash changes to operating lease assets          
Amortization   (236)   (276)
Impairment   —    (83)
Loss on lease impairment   —    83 
ROU assets and operating lease obligations recognized  $(236)  $(276)
           
Operating lease liabilities recognized  $—   $— 
Less: non-cash changes to operating lease liabilities accretion   (329)   (367)
Operating lease liabilities recognized  $(329)  $(367)

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

8

 

 

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 1 — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Nature of Operations

 

Vislink Technologies, Inc., incorporated in Delaware in 2006, is a global technology business that collects, delivers, and manages high-quality, live video and associated data from the action scene to the viewing screen. We provide solutions for collecting live news, sports, entertainment, and news events for the broadcast, surveillance, and defense markets with real-time video intelligence solutions using various tailored transmission products. Our team also provides professional and technical services utilizing a staff of technology experts with decades of applied knowledge and real-world experience in terrestrial microwave, fiber optic, surveillance, and wireless communications systems, delivering a broad spectrum of customer solutions.

 

Basis of Presentation

 

The accompanying unaudited condensed consolidated interim financial statements, along with the notes herein, are intended to be reviewed in conjunction with Vislink Technologies, Inc.’s audited consolidated financial statements and the accompanying notes as detailed in the 2023 Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission (the “SEC”) on April 3, 2024 (the “Annual Report on Form 10-K”). The condensed consolidated balance sheet, as of December 31, 2023, originates from these audited statements without complete footnote disclosures typically found in audited annual statements. These unaudited condensed consolidated financial statements have been prepared to include all necessary adjustments, solely of a routine recurring nature, deemed essential for a fair presentation of the Company’s financial standing as of September 30, 2024, along with our results of operations for the three and nine months ending on September 30 for both 2024 and 2023, and the cash flows for these periods. However, the results and position as of September 30, 2024, may not be indicative of our full-year 2024 financial condition and operating results.

 

Given the interim nature of this 10-Q report, the detail and scope of accounting policies outlined here are less comprehensive than those found in the Annual Report on Form 10-K. Investors are encouraged to refer to NOTE 3 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES in the audited consolidated financial statements within the Annual Report on Form 10-K.

 

Principles of Consolidation

 

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America or (“U.S. GAAP”) as found in the Accounting Standards Codification (“ASC”), the Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”) and the rules and regulations of the SEC. The accompanying unaudited condensed consolidated financial statements include the Company’s accounts and wholly-owned subsidiaries. We have eliminated all intercompany accounts and transactions upon consolidating our subsidiaries.

 

Segment Reporting

 

In accordance with the Financial Accounting Standards Board’s (FASB) mandate, Vislink Technologies, Inc. adopted Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280), effective January 1, 2024. Initially issued by FASB in February 2023, this update revises the reporting requirements for operating segments of public entities to enhance the transparency and utility of segment reporting.

 

Prior to this date, as disclosed in our Annual Report on Form 10-K, we had not yet formally adopted ASU 2023-07, which became mandatory for public entities in reporting periods beginning after December 15, 2023. We have concluded that we operate as a single reporting segment, and due to this structure, we believe we are only required to report in a single segment by ASU 2023-07. Accordingly, we believe the adoption of ASU 2023-07 has not significantly impacted our financial statements.

 

9

 

 

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 1 — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

 

Use of Estimates

 

Preparing the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities in the unaudited condensed consolidated financial statements. Significant accounting estimates reflected in the Company’s unaudited condensed consolidated financial statements include the useful lives of property, plant, and equipment, the useful lives of right-of-use assets, the useful lives of intangible assets, impairment of long-lived assets, allowance for accounts receivable doubtful accounts, allowance for inventory obsolescence reserve, allowance for deferred tax assets, valuation of warranty reserves, contingent consideration liabilities, and the accrual of potential liabilities. These estimates also affect the reported revenues and expenses during the reporting periods. Actual results could differ from estimates, and any such differences may be material to our financial statements.

 

Recently Issued Accounting Principles

 

Recent Accounting Pronouncements

 

On November 4, 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This amendment requires enhanced disclosures on expense disaggregation within the income statement. The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company has not yet assessed the impact of this ASU on its financial statements.

 

Other recent accounting standards issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the SEC, did not or are not believed by management to have a material impact on the Company’s present or future consolidated financial statements.

 

NOTE 2 — LIQUIDITY AND FINANCIAL CONDITION

 

For the nine months ended September 30, 2024, the Company incurred an approximate $7.4 million loss from operations and $4.0 million of cash used in operating activities. As of September 30, 2024, the Company had $27.1 million in working capital, $315.5 million in accumulated deficits, and $3.2 million in cash and cash equivalents.

 

During the first quarter of 2024, the Company invested approximately $0.9 million of its cash reserves in federal bonds intended to be held to maturity. No additional investments were made during the second and third quarters of 2024. As of September 30, 2024, the Company held investments in federal bonds valued at $6.0 million, intended to be held to maturity, primarily seeking to generate investment income.

 

Various factors influence the Company’s liquidity needs, including economic conditions such as inflation and currency exchange rates, competitive dynamics within current and target markets, potential strategic acquisitions, and market strategy adjustments. Additionally, research and development activities, regulatory developments, and technological advancements could further impact liquidity requirements. Given these considerations, management believes that the Company has sufficient resources to continue operations for at least 12 months from the filing date of these financial statements.

 

Restructuring Initiatives:

 

On November 12, 2024, the Board approved a plan to restructure certain operations of the business. The Company has initiated a series of restructuring actions that include a reduction in workforce and the termination of the U.K. and Poway, California manufacturing operations, and the transfer of these manufacturing activities to Mount Olive, New Jersey. The initiatives aim to enhance the Company’s financial position by eliminating underperforming product lines, redundant manufacturing facilities, and associated headcount.

 

The Company expects associated one-time costs saving related to severance, lease termination, and other restructuring initiatives to total approximately $4.9 million. The majority of these savings will be realized in the fourth quarter of 2024 and the first quarter of 2025. The Company expects to realize additional expense savings of approximately $1.1 million throughout 2025. There is no assurance the Company will be able to achieve these objectives. The actual results may differ from these estimates.

 

NOTE 3 — LOSS PER SHARE

 

The following table illustrates the anti-dilutive potential common stock equivalents excluded from the calculation of loss per share (in thousands):

 

   2024   2023 
   Nine Months Ended 
   September 30, 
   2024   2023 
Anti-dilutive potential common stock equivalents excluded from the calculation of loss per share:          
Stock options   71    76 
Warrants   455    456 
Total   526    532 

 

10

 

 

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 4 — FOREIGN CURRENCY AND OTHER COMPREHENSIVE (GAINS) LOSSES

 

The Company has recognized foreign exchange gains and losses and changes in accumulated comprehensive income approximately as follows:

 

   2024   2023   2024   2023 
   Three months ended   Nine months ended 
   September 30,   September 30, 
   2024   2023   2024   2023 
Net foreign exchange transactions:                    
(Gains) Losses  $40,000   $58,000   $70,000   $55,000 
                     
Accumulated comprehensive income:                    
Unrealized (gains) losses on currency translation adjustment  $(566,000)  $364,000   $(200,000)  $64,000 

 

Amounts were converted from British Pounds to U.S. Dollars and Euros to British Pounds using the following exchange rates:

 

  ● As of September 30, 2024 – £1.338690 to $1.00; €1.116020 to $1.00
     
  ● The average exchange rate for the nine months ended September 30, 2024 – £1.276856 to $1.00; €1.087081to $1.00
     
  ● As of September 30, 2023 – £1.221980 to $1.00; €1.058230 to $1.00
     
  ● The average exchange rate for the nine months ended September 30, 2023 – £1.244390 to $1.00; €1.083310 to $1.00

 

NOTE 5 — CASH AND CASH EQUIVALENTS

 

The Company considers all highly liquid investments with an original maturity of nine months or less at the time of purchase to be cash equivalents. Cash equivalents consist of unrestricted funds invested in a money market mutual fund. The following table illustrates the Company’s cash and cash equivalents:

 

  

September 30,

2024

  

December 31,

2023

 
Cash on hand  $995,000   $1,776,000 
Federally insured money market mutual funds   2,218,000    6,706,000 
Total cash and cash equivalents  $3,213,000   $8,482,000 

 

NOTE 6 — INVESTMENTS

 

The Company identified the following active debt security investment transactions:

 

  ● On February 28, 2023, the Company purchased a bond, “Federal National Mortgage Association,” with a face and par value of $950,000, which matured February 28, 2024, at an interest rate of 5.07%, totaling $950,000. The bond was redeemed on February 29, 2024.
     
  ● On October 11, 2023, the Company purchased a bond, “HSBC USA INC CP,” with a face value of $5,000,000, maturing October 11, 2024, at a 6.262291% interest rate, for a cash payment of approximately $4,711,000. The value on September 30, 2024, was $4,992,000.
     
  ● On February 27, 2024, the Company acquired the “HSBC USA INC CP” bond with a face value of $1,000,000 and a maturity date of February 12, 2025, at an interest rate of 5.48%, for a cash outlay of approximately $949,400. As of September 30, 2024, the fair value of this bond was $983,000.

 

11

 

 

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 6 — INVESTMENTS (continued)

 

The Company’s investments held to maturity are as follows as of September 30, 2024:

 

  

Amortized

Cost

  

Unrealized

Gains

   Unrealized Losses   Fair Value 
                     
 Federal Bonds  $5,678,000   $297,000   $—   $5,975,000 

 

The Company has determined the fair value of its investments held to maturity based on Level 2 input as of September 30, 2024:

 

The Company’s investments held to maturity are as follows as of September 30, 2024:

  

  

Quoted Prices in Active Market of Identical Assets/Liabilities

(Level 1)

   Significant Other Observable Inputs (Level 2)  

Significant Unobservable Inputs

(Level 3)

   Total 
                     
Federal Bonds  $—   $5,975,000   $—   $5,975,000 

 

NOTE 7 — INTANGIBLE ASSETS

 

The Company continuously monitors operating results, events, and circumstances that may indicate potential impairment of intangible assets. Management concluded that no triggering events occurred during the nine months ending on September 30, 2024.

 

The following table illustrates finite intangible assets as of September 30, 2024:

 

   Proprietary Technology   Patents and Licenses   Trade Names & Technology   Customer Relationships     
       Accumulated       Accumulated       Accumulated       Accumulated     
   Cost   Amortization   Cost   Amortization   Cost   Amortization   Cost   Amortization   Net 
                                     
Balance, January 1, 2024  $2,132,000   $(1,408,000)  $12,378,000   $(12,378,000)  $2,251,000   $(1,327,000)  $5,591,000   $(3,373,000)  $3,866,000 
Amortization   —    (393,000)   —    —    —    (104,000)   —    (317,000)   (814,000)
Balance, September 30, 2024  $2,132,000   $(1,801,000)  $12,378,000   $(12,378,000)  $2,251,000   $(1,431,000)  $5,591,000   $(3,690,000)  $3,052,000 

 

The Company’s groups of intangible assets consist primarily of:

 

Proprietary Technology:

 

Generally, the Company amortizes proprietary technology over 3 to 5 years. Mobile Viewpoint (“MVP”) uses wireless multiplex transmitters and artificial intelligence internally to produce and sell products and services to customers.

 

Patents and Licenses:

 

Patents and licenses filed by the Company are amortized for 18.5 to 20 years. The amortization of the costs associated with provisional patents and pending applications begins after successful review and filing.

 

Trade Name, Technology, and Customer Relationships:

 

Other intangible assets are amortized for 3 to 15 years. Integrated Microwave Technology (“IMT”), Vislink, MVP, and BMS assets acquisitions contributed to developing these intangible assets, including trade names, technology, and customer lists.

 

The Company has recognized net capitalized intangible costs as follows:

  

   September 30,   December 31, 
   2024   2023 
Proprietary Technology  $333,000   $726,000 
Trade Names and Technology   819,000    922,000 
Customer Relationships   1,900,000    2,218,000 
 Net capitalized intangible costs  $3,052,000   $3,866,000 

 

12

 

 

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 7 — INTANGIBLE ASSETS (continued)

 

Trade Name, Technology, and Customer Relationships: (continued)

 

The Company has recognized the amortization of intangible assets as follows:

  

   2024   2023   2024   2023 
   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2024   2023   2024   2023 
Proprietary Technology  $98,000   $149,000   $393,000   $443,000 
Trade Names and Technology   35,000    35,000    104,000    104,000 
Customer Relationships   107,000    66,000    317,000    193,000 
 Amortization of intangible assets  $240,000   $250,000   $814,000   $740,000 

 

The weighted average remaining life of the amortization of the Company’s intangible assets is approximately 4.9 years as of September 30, 2024. The following table represents the estimated amortization expense for total intangible assets for the succeeding five years:

 

Period ending September 30,     
2025  $735,000 
2026   650,000 
2027   291,000 
2028   288,000 
2029   288,000 
Thereafter   800,000 
 Intangible assets, estimated amortization expense  $3,052,000 

 

The Company continuously monitors intangible assets for potential impairments based on operating results, events, and circumstances. As of September 30, 2024, management identified no triggering events.

 

NOTE 8 — NOTES PAYABLE

 

The table below represents the Company’s notes payable as of September 30, 2024, and December 31, 2023:

 

   September 30,
2024		   December 31,
2023		 
   Principal 
   September 30,
2024		   December 31,
2023		 
         
The Company renewed its Directors and Officers (D & O) insurance policy on April 23, 2024, at a reduced premium of approximately $788,000, making a down payment of $278,000 financing the remaining balance of approximately $510,000. The financing arrangement contains a nine-month term with a 7.5% annual interest rate, resulting in a monthly principal and interest payment of approximately $58,000. The Company recognized interest expense of $6,000 and $10,000 for the three and nine months ending September 30, 2024, respectively, compared to none for the same periods in 2023.  $230,000   $— 
Notes payable  $230,000   $— 

 

NOTE 9 — LEASES

 

In addition to leasing office spaces, operational sites, and storage facilities, the Company also rents warehouse facilities internationally and within the country. As of September 30, 2024, these operating leases feature a variety of terms and conditions, with lease lengths ranging from one to four years. Certain leases contain clauses for rent increases and concessions, which result in higher rental payments during the final years of the lease term. These agreements are recognized using the straight-line method over the lease’s minimum duration.

 

13

 

 

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 9 — LEASES (continued)

 

During those periods, there were no significant adjustments to the straight-line rental expenses. Most costs accounted for in each period were reflected in the cash spent on operating activities, mainly covering payments for the basic rent of offices and warehouses. Additionally, we can renew certain leases at various intervals, though we are not obligated to. Expenses associated with short-term leases, taxes, and variable service fees were minimal.

 

As of September 30, 2024, the Company reported Right-of-Use (ROU) assets totaling approximately $0.5 million on the balance sheet net of $1.9 million in accumulated amortization. In addition, the Company recognized operating lease liabilities of approximately $0.9 million, allocating $0.5 million as current and $0.4 million as non-current, as noted on the balance sheet. The weighted average lease term remaining as of September 30, 2024, was 1.8 years, with leases expiring between January 2025 and May 2027, and the weighted average discount rate was 9.4% as of September 30, 2024.

 

Poway, CA Lease Renewal and Classification Correction

 

On February 12, 2024, Vislink Poway, LLC signed a renewal agreement with CPI Apartment Fund 10 LLC for the premises at 13475 Danielson Street, Suite 100, 130, and 160, Poway, California. The renewal agreement was initially accounted for based on preliminary terms indicating a lease commencement on March 14, 2024, with an end date of January 31, 2026. Consequently, a Right-of-Use (ROU) asset of approximately $484,000 and a lease liability of approximately $473,000 were recognized in the first quarter of 2024.

 

The final signed lease agreement was obtained during the third quarter of 2024. It confirms a one-year lease term beginning on April 1, 2024, and ending on March 31, 2025. Since the finalized lease term is 12 months, it qualifies as a short-term lease under ASC 842, and no ROU asset or lease liability is required to be recorded.

 

The Company corrected this by removing the previously recognized ROU asset and lease liability. The Poway, California lease is now accurately accounted for as a short-term lease, with monthly payments of $22,926 expensed on a straight-line basis over the lease term.

 

Dubai Studio City, UAE Renewal

 

The Company renewed its lease for 646 square feet of administrative office space in Dubai Studio City, UAE, for approximately $1,333 monthly commencing on July 3, 2024, and terminating on July 2, 2025.

 

14

 

 

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 9 — LEASES (continued)

 

Dubai Studio City, UAE Renewal (continued)

 

The following table illustrates operating lease data for the three and six months ending September 30, 2024, and 2023:

  

   2024   2023   2024   2023 
   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2024   2023   2024   2023 
Lease cost:                    
Operating lease cost  $173,000   $97,000   $465,000   $303,000 
Short-term lease cost   16,000    5,000    99,000    25,000 
Total lease cost  $189,000   $102,000   $564,000   $328,000 
Cash paid for lease liabilities:                    

Cash flows from operating leases   $581,000   $473,000 
Right of use assets obtained in exchange for new operating lease liabilities  $—   $— 
           
Weighted-average remaining lease term—operating leases    1.8 years        3.0 years   
Weighted-average discount rate—operating leases   9.4%   9.5%

 

The following table illustrates the maturities of our operating lease liabilities as of September 30, 2024:

  

   Amount 
     
2025  $575,000 
2026   280,000 
2027   121,000 
2028   — 
2029   — 
Thereafter   — 
Total lease payments   976,000 
Less: imputed interest   87,000 
Present value of lease liabilities   889,000 
Less: Current lease liabilities   513,000 
Non-current lease liabilities  $376,000 

 

The following table outlines the locations and lease termination dates for the Company’s Right-of-Use Assets under operating leases for the years 2025 to 2027:

  

Location  Square Footage  Lease-End Date  Approximate Future Payments 
Colchester, U.K. – Waterside House  13,223  Dec  2025  $324,000 
Lutton, UK  600  Jan  2025   10,000 
Billerica, MA  2,000  Dec  2026   240,000 
Mount Olive, NJ  7,979  May  2027   370,000 
Trivex, Singapore  950  Aug  2025   32,000 

 

15

 

 

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 10— STOCKHOLDERS’ EQUITY

 

Preferred stock

 

On March 22, 2023, the Company’s Board of Directors approved a resolution to eliminate the Company’s Certificate of Designation, Preferences, and Rights (the “Certificate of Elimination”) of the Series A Preferred Stock, par value of $0.00001 per share (the “Series A Preferred Stock”), which was filed with the Secretary of State of the State of Delaware on November 9, 2022.

 

Upon the effective filing of the Certificate of Elimination, the shares previously designated under the certificate of designation as Series A Preferred Stock shall resume the status of authorized but unissued shares of the Company’s preferred stock. As of September 30, 2024, -0- shares are authorized, and no Series A Preferred Stock was issued or outstanding.

 

Common stock

 

Other common stock activity

 

During the nine months that ended September 30, 2024, the Company has:

 

  ● Issued 8,000 shares of common stock to specific board members as part of a commitment agreement valued at $160,000 (the common stock’s value was determined on the agreement’s original date);
     
  ● Issued 16,475 shares of common stock in satisfaction of the conversion of restricted stock unit awards and
     
  ● Recognized approximately $881,000 of stock-based compensation costs associated with outstanding stock options in general and administrative expenses offsetting additional capital investments.

 

Common stock warrants

 

As of September 30, 2024, warrants to purchase 1,534 shares of common stock expired. On September 30, 2024, warrants to purchase 454,546 shares of common stock were outstanding and exercisable; the weighted average exercise price of warrants outstanding is $65.00, with a weighted average remaining contractual life of 1.4 years. These outstanding warrants did not have an intrinsic value as of September 30, 2024.

 

NOTE 11 — STOCK-BASED COMPENSATION

 

Inducement Awards:

 

The Company grants time-vested and performance-based stock options under inducement awards, consistent with NASDAQ Listing Rule 5653(c)(4). These inducement awards, granted outside our existing equity compensation plans, are designed to reward employees for their commitment and performance toward achieving our strategic goals.

 

Time-based and Performance-based Inducement Stock Option Awards

 

The Company’s inducement stock option awards are generally granted with vesting terms based on time or performance-based criteria. Performance-based awards are tied to achieving specific financial metrics, aligning employee rewards with the Company’s success. The Company granted time-vested stock options and performance-based stock options to various employees in connection with their employment agreements. The ten-year, non-statutory time-vested, and performance-based option inducement awards were granted under the NASDAQ Listing Rule 5653(c)(4) outside of the Company’s existing equity compensation plans (all subject to continued employment).

 

16

 

 

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 11 — STOCK-BASED COMPENSATION (continued)

 

Inducement Awards (continued):

 

Time-based and Performance-Based Inducement Restricted Stock Unit Awards

 

The Company’s inducement-restricted stock units (“RSUs”) are generally granted with vesting terms based on time or performance-based criteria. Performance-based RSUs are tied to achieving specific financial metrics, and aligning employee rewards with the Company’s success.

 

The Company granted awards under the amended plan for time-based RSUs to various employees subject to continued employment. The RSUs initially vest between 25% and 33% on their one-year anniversary dates and will vest between 24 and 36 equal monthly periods thereafter. Additionally, the Company granted awards under the amended plan for performance-based restricted stock units subject to performance vesting conditions and continued employment. The RSUs will vest in three equal tranches upon reaching performance conditions for each tranche.

 

2023 Omnibus Equity Incentive Plan

 

The Company received stockholder approval on August 23, 2023, to adopt the 2023 Omnibus Equity Incentive Plan (the “2023 Plan”), which will enable it to continue to grant equity-based compensation awards under a shareholder-approved plan to employees (including officers), non-employee consultants, non-employee directors, and affiliates. The 2023 Plan replaces the 2015 Incentive Compensation Plan, 2016 Incentive Compensation Plan, and 2017 Incentive Compensation Plan. The Company has ceased granting awards under the 2015 Incentive Compensation Plan, 2016 Incentive Compensation Plan, and 2017 Incentive Compensation Plan. The Company reserves 166,415 shares of its common stock for delivery under the 2023 Plan. The 2023 Plan rewards eligible participants for contributing to the Company’s success and encourages retaining and recruiting qualified personnel. The Company’s Board of Directors and Compensation Committee will administer the 2023 Plan.

 

The 2023 Plan generally grants awards without consideration other than prior and future service. The Company’s compensation committee may grant awards under the 2023 Plan either alone or in addition to, in tandem with, or as a substitute for any other award granted under the 2023 Plan or other Company plans. It is important to note, however, that if a SAR is granted in conjunction with an ISO, the grant date and term of the SAR and ISO must be the same, and the exercise price of the SAR cannot be lower than the exercise price of the ISO. A written award agreement between us and the grantee will outline the material terms of the award.

 

Summary of stock-based compensation for all equity award plans

 

The table below shows stock-based compensation expenses, included in general and administrative expenses, under the following plans.

  

   2024   2023   2024   2023 
   Three months ended   Nine months ended 
   September 30,   September 30, 
   2024   2023   2024   2023 
Equity-based plans:                    
Time-vested option inducement awards  $—   $37,000   $113,000   $144,000 
Time-based restricted stock awards
   199,000    306,000    768,000    1,456,000 
 Stock-based compensation expense  $199,000   $343,000   $881,000   $1,600,000 

 

17

 

 

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 12 — COMMITMENTS AND CONTINGENCIES

 

Pension:

 

The Company may make a matching contribution to its employees’ 401(k) plan. Furthermore, Vislink operates a Group Personal Plan through its U.K. subsidiary, investing funds with Royal London. Employees of the Company in the United Kingdom are entitled to participate in the Company’s employee benefit plan, to which varying amounts are contributed according to their status. Additionally, the Company operates a stakeholder pension plan in the United Kingdom.

 

The table below represents the Company’s matching contributions as follows:

 

   Three months ended   Nine months ended 
   September 30,   September 30, 
   2024   2023   2024   2023 
Company matching contributions - Group Personal Pension Plan  $33,000   $42,000   $98,000   $110,000 

 

NOTE 13 — CONCENTRATIONS

 

Customer concentration risk

 

During the three months ended September 30, 2024, the Company had sales to two customers amounting to $1,310,000 (19%) and $892,000 (13%), each representing more than 10% of its consolidated sales. During the nine months ended September 30, 2024, no single customer sale represented more than 10% of the Company’s consolidated sales. For the three months ended September 30, 2023, one customer accounted for approximately $782,000, or 11%, of the Company’s consolidated sales. For the nine months ended September 30, 2023, no customer exceeded 10% of the Company’s consolidated sales.

 

As of September 30, 2024, four customers owed the Company approximately $1,235,000 (15%), $1,125,000 (14%), $1,011,000 (12%), and $981,000 (12%), each representing more than 10% of its consolidated net receivables. As of September 30, 2023, one customer owed the Company approximately $893,000, representing 12% of its consolidated net receivables.

 

Vendor concentration risk

 

During the three months ended September 30, 2024, two vendors accounted for more than 10% of the Company’s consolidated inventory purchases, with approximately $768,000 (20%) and $522,000 (14%), respectively. For the nine months ended September 30, 2024, two vendors exceeded 10% of the Company’s consolidated inventory purchases, with amounts of approximately of $2,560,000 (23%) and $1,263,000 (11%), respectively. For the three months ended September 30, 2023, two vendors accounted for more than 10% of the Company’s consolidated inventory purchases, with approximately $898,000 (26%) and $468,000 (13%). For the nine months ended September 30, 2023, two vendors accounted for more than 10% of the Company’s consolidated inventory purchases of approximately $1,458,000 (16%) and $1,055,000 (11%).

 

As of September 30, 2024, four vendors accounted for over 10% of the Company’s consolidated accounts payable, with balances of approximately $589,000 (18%), $351,000 (11%), $330,000 (10%), and $327,000 (10%), respectively. As of September 30, 2023, one vendor exceeded 10% of the Company’s consolidated accounts payable of approximately $378,000 (12%).

 

18

 

 

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 14 – REVENUE

 

The Company has one operating segment, and the decision-making group is the senior executive management team. In the following table, the Company has disaggregated revenue by the Company’s primary geographical markets and revenue sources:

 

   Three months Ended   Nine months Ended 
   September 30,   September 30, 
   2024   2023   2024   2023 
Primary geographical markets:                    
North America  $2,389,000   $4,120,000   $10,174,000   $9,008,000 
South America   2,000    137,000    20,000    364,000 
Europe   1,380,000    1,347,000    6,260,000    4,783,000 
Asia   2,812,000    1,191,000    3,921,000    3,215,000 
Rest of World   483,000    384,000    3,991,000    2,040,000 
   $7,066,000   $7,179,000   $24,366,000   $19,410,000 
Primary revenue source:                    
Equipment sales  $6,354,000   $6,234,000   $21,814,000   $16,907,000 
Installation, integration, and repairs   305,000    348,000    1,414,000    1,097,000 
Warranties   407,000    597,000    1,138,000    1,406,000 
   $7,066,000   $7,179,000   $24,366,000   $19,410,000 
Long-Lived Assets:                    
United States            $2,917,000   $2,683,000 
Netherlands             27,000    18,000 
United Kingdom             2,767,000    3,933,000 
             $5,711,000   $6,634,000 

 

NOTE 15 — REBATES

 

The Company has been applying for tax rebates related to the research costs incurred by our U.K. subsidiary. During the nine months ended September 30, 2024, the Company recognized $378,000 in tax rebates as other income. For the same period in 2023, the recognized amount was $322,000.

 

While the Company plans to continue filing rebate forms for the 2024 fiscal year, it cannot guarantee that rebates will be available at a similar level or at all in future years.

 

NOTE 16 — SUBSEQUENT EVENTS

 

Under ASC 855-10, the Company has analyzed its operations subsequent to September 30, 2024. It has determined that it does not have any other material subsequent events to disclose in these unaudited condensed consolidated financial statements.

 

19

 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

The following information should be read in conjunction with the accompanying consolidated financial statements and the associated notes thereto of this Quarterly Report, the audited consolidated financial statements and notes thereto, and our Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K.

 

Cautionary Note About Forward-Looking Statements

 

This report includes forward-looking statements based on the assumptions the Company believes reasonable. However, these statements are subject to significant risks and uncertainties that could cause actual outcomes to differ materially from those anticipated, expressed, or implied by such statements. In particular, the Company’s transfer of its remaining manufacturing division to Mount Olive, New Jersey, entails operational and financial risks that may impact expected synergies, efficiencies, and results. You should carefully review this report, along with the documents referenced within and those filed as exhibits in their entirety. Additionally, please consult the Company’s subsequent SEC filings for updated factors and risks that may affect these forward-looking statements. The Company qualifies all forward-looking statements by these cautionary statements.

 

Update on Geopolitical Conflicts and Climate Change

 

Geopolitical Risks:

 

During the quarter ending September 30, 2024, there were no significant developments in the Ukraine/Russia and Israel/Hamas conflicts that materially altered the previously disclosed risks in our Annual Report on Form 10-K for the fiscal year ending December 31, 2023, as filed with the SEC on April 3, 2024. The Company has no direct operations, revenue streams, or physical presence in these regions. The Company monitors potential indirect impacts on our global supply chain and business continuity, such as increased transportation costs or disruptions in our suppliers’ operations. Any material changes or updates will be promptly disclosed.

 

Climate Change Initiatives:

 

The Company is committed to addressing the challenges and opportunities climate change presents. While the direct financial impact of climate change on our operations has not been material in the most recent fiscal quarter, the Company plans to undertake significant efforts to improve sustainability and resilience in our operations. We have already begun enhancing energy efficiency across our facilities and are actively exploring renewable energy integration. Additionally, the Company is in the process of developing innovative solutions to reduce our carbon footprint, demonstrating our dedication to these goals.

 

Financial and Operational Impact:

 

During the quarter ending September 30, 2024, the Company experienced no material financial or operational impacts directly attributable to geopolitical conflicts or climate change. The Company monitors these situations and may need to adjust operations and strategies to mitigate potential risks.

 

20

 

 

Overview

 

Live Broadcast:

 

We deliver an extensive portfolio of solutions for live news, sports, and entertainment industries. These solutions include video collection, transmission, management, and distribution via microwave, cellular, IP (Internet Protocol), MESH, and bonded cellular/5G networks. We also provide solutions utilizing AI (Artificial Intelligence) technologies to provide automated news and sporting events coverage. With over 50 years in operation, we have the expertise and technology portfolio to deliver fully integrated, seamless, end-to-end solutions encompassing hardware components, hosted systems management platforms, related software licenses, and ancillary support services.

 

Industry-wide contributors acknowledge our live broadcast solutions. Our equipment transmits most outside wireless broadcast video content, with over 200,000 systems installed worldwide. We work closely with the majority of the world’s broadcasters. Our wireless cameras and ultra-compact encoders help bring many of the world’s most prestigious sporting and entertainment events to life. Recent examples include globally watched international sporting contests, award shows, racing events, and annual music and cultural events.

 

Military and Government:

 

We have developed high-quality solutions to meet surveillance and defense markets’ operational and industry challenges based on our knowledge of live video delivery. Our solutions are designed specifically with interagency cooperation, utilizing the internationally recognized IP platform and a web interface for video delivery. We provide comprehensive video, audio, and data communications solutions to law enforcement and the public safety community, including airborne, unmanned systems, maritime, and tactical mobile command posts. These solutions may include:

 

  ● integrated suites of airborne downlink transmitters, receivers, and antenna systems
  ● data and video connectivity for airborne, marine, and ground assets
  ● UAV video distribution
  ● flexible support for COFDM and bonded cellular/5G Networks
  ● terrestrial point-to-point
  ● tactical mobile command
  ● IP-based, high-end encryption, full-duplex, real-time connectivity at extended operating ranges
  ● high-throughput air/marine/ground-to-anywhere uplink and downlink systems
  ● secure live streaming platforms for use in mobile and fixed assets, and
  ● personal portable products

 

Our public safety and surveillance solutions are deployed worldwide, including throughout the U.S., Europe, and the Middle East, at the local, regional, and federal levels of operation for criminal investigation, crisis management, mobile command posts, and field operations. These solutions are designed to meet the demands of field operations, command centers, and central receiving sites. Short-range and long-range solutions are available in areas including established infrastructure and exceptionally remote regions, making valuable video intelligence available regardless of location.

 

Connected Edge Solutions:

 

Mobile Viewpoint (MVP) offers hardware and software solutions needed to acquire, produce, contribute to, and deliver video across all private and public networks. Connected edge solutions aid the video transport concept of ubiquitous IP networks and cloud-scale computing across 5G, WiFi6, Mesh, and COFDM-enabled networks. These solutions include:

 

  ● live video encoding, stream adaptation, decoding, and production solutions,
  ● remote production workflows,
  ● wireless cameras,
  ● AI-driven automated production and
  ● the ability to contribute video over

  ○ bonded cellular (3G and 4G)
  ○ satellite,
  ○ fiber, and
  ○ emerging networks, including 5G and Starlink.

 

21

 

 

Results of Operations

 

Comparison for the three and nine months ended September 30, 2024, and 2023

 

Revenue

 

In the three months ended September 30, 2024, the revenue was $7.1 million compared to $7.2 million for the three months ended September 30, 2023, representing a decrease of $0.1 million or 1%. In the nine months ended September 30, 2024, the revenue was $24.4 million compared to $19.4 million for the nine months ended September 30, 2023, representing an increase of $5.0 million or 26%.

 

This growth is attributable to expanded market reach, improved operational efficiencies, new product development, and the benefits of integrating the UK manufacturing operations into our U.S. facilities.

 

Cost of Revenue and Operating Expenses

 

Cost of Components and Personnel

 

In the three months ended September 30, 2024, the cost of components and personnel was $3.5 million compared to $3.3 million for the three months ended September 30, 2023, representing an increase of $0.2 million or 6%. In the nine months ended September 30, 2024, the cost of components and personnel was $10.8 million compared to $9.0 million for the nine months ended September 30, 2023, representing an increase of $1.8 million or 20%.

 

The cost of components and personnel increase is driven by our expanded market reach and new product development, which supports the Company’s growth and operational strategy. This change reflects the strategic decisions and initiatives undertaken in previous periods and the increase in revenue. In the latter half of 2022, the Company discontinued several underperforming product lines. This decision allowed us to reallocate resources to more profitable and promising products, contributing to overall operational efficiency. Additionally, we relocated Vislink’s U.K. manufacturing division to the United States to consolidate manufacturing operations, reduce logistics costs, and improve supply chain management. The increase in revenue has driven higher production demands, necessitating additional components and personnel to meet market needs. The expanded market reach and introduction of new products have also required investment in skilled labor and advanced components to maintain a competitive advantage and support our growth strategy.

 

General and Administrative Expenses

 

General and administrative expenses encompass the operational costs incurred in running the business daily, including salaries, benefits, stock-based compensation, payroll taxes, trade shows, marketing initiatives, promotional materials, professional services, facilities, general liability insurance, travel, and other expenses associated with maintaining public company status.

 

In the three months ending September 30, 2024, the general and administrative expenses were $5.1 million compared to $4.8 million for the three months ending September 30, 2023, representing an increase of $0.3 million or 6%. In the nine months ending September 30, 2024, the general and administrative expenses were $16.3 million compared to $14.5 million for the nine months ending September 30, 2023, representing an increase of $1.8 million or 12%.

 

The three-month increase of $0.3 million is predominantly due to $0.5 million in salaries and benefits and $0.2 million in miscellaneous taxes. The increase was partially offset by a decrease of $0.3 million in miscellaneous expenses, $0.2 million in legal fees, and $0.1 million each in computer and consulting expenses. The nine-month increase of $1.8 million is primarily attributable to $1.6 million in salaries and benefits, $0.3 million in commissions, $0.2 million each in advertising, bad debt, and director’s fees, partially offset by a decrease of $0.7 million in stock-based compensation. The nine-month increase of $1.8 million is primarily attributable to $2.6 million in salaries and benefits, partially offset by a decrease of $0.8 million.

 

Research and Development

 

In the three months ending September 30, 2024, the research and development expenses were $1.2 million compared to $0.8 million for the three months ending September 30, 2023, representing an increase of $0.4 million or 50%. In the nine months ending September 30, 2024, the research and development expenses were $2.9 million compared to $2.5 million for the nine months ending September 30, 2023, representing an increase of $0.4 million or 16%.

 

The three-month increase of $0.4 million is predominantly due to $0.3 million each in professional fees and salaries and benefits. The increase was partially offset by a decrease in consulting fees of $0.1 million. The nine-month increase of $0.4 million is primarily attributable to $0.3 million in research and $0.2 million in professional fees, partially offset by a decrease of $0.1 million in consulting fees.

 

22

 

 

Amortization and Depreciation

 

In the three months ending September 30, 2024, amortization and depreciation expenses remained consistent at $0.3 million, unchanged from the three months ending September 30, 2023. For the nine months ended September 30, 2024, amortization and depreciation expenses increased slightly by $0.1 million to $1.0 million, compared to $0.9 million for the nine months ended September 30, 2023.

 

This stability over the three-month period and the slight increase over the nine-month period reflect minimal changes in the net book value of our intangible and fixed assets, as the Company does not regularly engage in material procurements of these assets.

 

Other

 

Dividend and Interest Income

 

In the three months ending September 30, 2024, dividend and interest income was $0.2 million, compared to $0.3 million for the three months ending September 30, 2023, representing a decrease of $0.2 million or 67%. In the nine months ended September 30, 2024, dividend and interest income were $0.5 million compared to $0.9 million for the nine months ended September 30, 2023, representing a decrease of $0.4 million or 44%.

 

The decrease in dividend and interest income is partly due to the redemption of government-backed bonds during the first quarter of 2024.

 

Net Loss

 

In the three months ending September 30, 2024, the Company had a net loss of $3.0 million compared to a net loss of $1.9 million in the three months ending September 30, 2023, or an increase in a net loss of $1.0 million or 53%. The Company’s net loss for the nine months ending September 30, 2024, was $6.2 million, compared to $6.8 million for the nine months ending September 30, 2023, or a decrease in a net loss of $0.6 million or 9%.

 

The net loss increased by $1.0 million for the three months ended September 30, 2024, primarily due to a decrease in revenue of $0.1 million, an increase of $0.4 million in research and development expenses, $0.3 million in general and administrative expenses, and $0.2 million in cost of components and personnel.

 

The net loss decreased by $0.6 million for the nine months ended September 30, 2024, primarily due to an increase in revenue of $5.0 million, offset by increases of $1.8 million each in cost of components and personnel, and general and administrative expenses, as well as $0.4 million in research and development expenses.

 

This improvement is attributable to more efficient expense management, including renegotiating contracts with suppliers, optimizing our workforce, implementing cost-saving measures, and increasing revenue.

 

Liquidity and Capital Resources

 

For the nine months ended September 30, 2024, the Company incurred an approximate $7.4 million loss from operations and $4.0 million of cash used in operating activities. As of September 30, 2024, the Company had $27.1 million in working capital, $315.5 million in accumulated deficits, and $3.2 million in cash and cash equivalents.

 

23

 

 

During the first quarter of 2024, the Company invested approximately $0.9 million of its cash reserves in federal bonds intended to be held to maturity. No additional investments were made during the second and third quarters of 2024. As of September 30, 2024, the Company held investments in federal bonds valued at $6.0 million, intended to be held to maturity, primarily seeking to generate investment income.

 

Many factors may impact the Company’s liquidity requirements. These may include, but are not limited to, economic conditions, including inflation, foreign exchange, fluctuations, the markets in which we compete or wish to enter, strategic acquisitions, our market strategy, our research and development activities, regulatory matters, and technology and product innovations. The Company believes it will have sufficient funds to continue its operations for at least 12 months from the filing date of these financial statements.

 

Critical Accounting Policies

 

As of the date of the filing of this quarterly report, we believe there have been no material changes to our critical accounting policies during the nine months ended September 30, 2024, compared to those disclosed in our Annual Report on Form 10-K. The location of additional information about these critical accounting policies is in the “Management’s Discussion & Analysis of Financial Condition and Results of Operations” section included in our Annual Report on Form 10-K.

 

Cash Flows

 

The following table sets forth the major components of our consolidated statements of cash flow data for the periods presented (in thousands).

 

   Nine Month Ended 
   September 30, 
   2024   2023 
         
Net cash used in operating activities  $(3,999)  $(5,992)
Net cash used in investment activities   (518)   (11,534)
Net cash provided by financing activities   (280)   (409)
Effect of exchange rate changes on cash   (472)   (452)
Net decrease in cash  $(5,269)  $(18,387)

 

Operating Activities

 

Net cash used in operating activities of approximately $4.0 million during the nine months ended September 30, 2024, was principally attributable to a net loss of $6.2 million; an increase of $0.9 million in stock-based compensation, $1.0 million of depreciation and amortization, $0.7 million of inventory valuation adjustments, $0.5 million of deferred revenue and customer deposits, $0.2 million each of amortization of right of use assets and accrued directors compensation, $0.2 million each of prepaid expenses and other current assets and accrued expenses, offset by $1.5 million of inventory.

 

Net cash used in operating activities of approximately $6.0 million during the nine months ended September 30, 2023, was principally attributable to a net loss of $6.8 million, $1.6 million of stock-based compensation, $0.9 million of depreciation and amortization, an increase of $1.6 million in inventory, an increase of $1.4 million in accounts receivable, an increase of $0.5 million in accounts payable, offset by decreases of $0.4 million in operating lease liabilities, together with $0.4 million of deferred revenue and customer deposits, $0.2 million each in deferred tax benefits, and accretion of bond discount.

 

Investing Activities

 

Net cash used by investing activities for the nine months ended September 30, 2024, and 2023 was $0.5 million and $11.2 million, respectively. This cash was principally related to the Company’s investment in government-backed securities and money market funds as well as capital expenditures for furniture and computer equipment and asset acquisition.

 

Financing Activities

 

Net cash used in financing activities of approximately $0.3 million and $0.4 million during the nine months ended September 31, 2024, and 2023, respectively, was principally attributable to principal payments made towards D&O policy premiums.

 

24

 

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

 

As of September 30, 2024, there have been no material changes to the information related to quantitative and qualitative disclosures about the market risk provided in the Company’s Annual Report on Form 10-K.

 

Item 4. Controls and Procedures.

 

Evaluation of Disclosure Controls and Procedures

 

We maintain disclosure controls and procedures designed to ensure that information required to be disclosed in our reports under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms. These controls and procedures also ensure that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decision-making regarding required disclosures.

 

In designing and evaluating our disclosure controls and procedures, we recognize that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. We apply our judgment in evaluating whether the benefits of the controls and procedures that we adopt outweigh their costs.

 

As required by Rule 13a-15(b) of the Exchange Act, an evaluation as of September 30, 2024, was conducted under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act). Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures, as of September 30, 2024, were not effective due to the material weakness described below.

 

Management’s Report on Internal Control Over Financial Reporting

 

As of the fiscal quarter ended September 30, 2024, our management, including the Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our internal control over financial reporting as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. In their assessment of the effectiveness of internal control over financial reporting as of September 30, 2024, our Chief Executive Officer and Chief Financial Officer concluded that such control was ineffective and that there continue to be control deficiencies that constituted material weaknesses because (i) we currently do not employ the appropriate number of accounting personnel to ensure (a) we maintain proper segregation of duties, and (b) conduct a tolerable risk assessment, and (ii) we have not adequately documented a complete assessment of the effectiveness of the design and operation of our internal control over financial reporting. Considering these material weaknesses, we performed additional procedures and analyses as deemed necessary to ensure that our financial statements were prepared following U.S. generally accepted accounting principles (“GAAP”).

 

Changes to Internal Control Over Financial Reporting

 

Although we have continued our un-remediated efforts in connection with identified material weaknesses, the material weakness, as discussed in our Annual Report on Form 10-K for the period ended December 31, 2023, has not been fully remediated. As we continue to remediate the material weakness in our internal controls, we made changes to our internal controls during our most recently completed fiscal quarter, including changes to enhance the supervisory review of our accounting procedures.

 

Notwithstanding the continuing and unresolved material weakness, management, including our Chief Executive Officer and Chief Financial Officer, believes that the unaudited condensed consolidated financial statements contained in this Quarterly Report fairly present, in all material respects, our financial condition, results of operations, and cash flows for the fiscal periods presented in this Quarterly Report in conformity with GAAP.

 

Except for the material weakness and remediation efforts, there was no change in our internal control over financial reporting as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, that occurred during the three months ended September 30, 2024, that has materially affected or is reasonably likely to materially affect, our internal control over financial reporting.

 

25

 

 

PART II: OTHER INFORMATION

 

Item 1. Legal Proceedings.

 

None

 

Item 1A. Risk Factors.

 

There have been no material changes from the risk factors disclosed in Item 1A of our Annual Report on Form 10-K.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

 

None.

 

Item 3. Defaults Upon Senior Securities.

 

None.

 

Item 4. Mine Safety Disclosures.

 

Not applicable.

 

Item 5. Other Information.

 

(a) Not applicable

 

(b) Not applicable.

 

(c) Trading Plans.

 

During the quarter ended September 30, 2024, no director or Section 16 officer adopted or terminated any Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements (in each case, as defined in Item 408(a) of Regulation S-K promulgated by the Securities and Exchange Commission).

 

26

 

 

Item 6. Exhibits. (TO BE UPDATED BY OUTSIDE ATTORNEYS)

 

Exhibit

Number

   Description of Exhibit
31.1*   Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2*   Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1*   Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2*   Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS   Inline XBRL Instance Document
101.SCH   Inline XBRL Taxonomy Schema
101.CAL   Inline XBRL Taxonomy Calculation Linkbase
101.DEF   Inline XBRL Taxonomy Definition Linkbase
101.LAB   Inline XBRL Taxonomy Label Linkbase
101.PRE   Inline XBRL Taxonomy Presentation Linkbase
104   Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

27

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

  VISLINK TECHNOLOGIES, INC.
     
Date: November 14, 2024 By: /s/ Carleton M. Miller
    Carleton M. Miller
    Chief Executive Officer
    (Duly Authorized Officer and Principal Executive Officer)
     
Date: November 14, 2024 By: /s/ Michael C. Bond
    Michael C. Bond
    Chief Financial Officer
    (Duly Authorized Officer and Principal Financial Officer)

 

28

 

 

Exhibit 31.1

 

CERTIFICATION PURSUANT TO 18 USC. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

 

I, Carleton M. Miller, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q of Vislink Technologies, Inc. (the “registrant”):

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements and other financial information included in this report fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13-a13a-15(f) and 15d-15(f)) for the registrant and have:

 

a) Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures; and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

 

d) Disclosed in this report is any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: November 14, 2024 /s/ Carleton M. Miller
  Carleton M. Miller
  Chief Executive Officer

 

 

 

 

Exhibit 31.2

 

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

 

I, Michael C. Bond, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q of Vislink Technologies, Inc. (the “registrant”):

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13-a13a-15(f) and 15d-15(f)) for the registrant and have:

 

a) Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures; and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

 

d) Disclosed in this report is any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: November 14, 2024 /s/ Michael C. Bond
  Michael C. Bond
  Chief Financial Officer

 

 

 

 

Exhibit 32.1

 

CERTIFICATION

OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of Vislink Technologies, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2024 (the “Report”), I, Carleton M. Miller, Chief Executive Officer of the Company, hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

 

1. The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

 

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Date: November 14, 2024 /s/ Carleton M. Miller
  Carleton M. Miller
  Chief Executive Officer

 

A signed original of this written statement required by Section 906 or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

 

 

 

Exhibit 32.2

 

CERTIFICATION

OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report of Vislink Technologies, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2024 (the “Report”), I, Michael C. Bond, Chief Financial Officer of the Company, hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

 

1. The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and

 

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

 

Date: November 14, 2024 /s/ Michael C. Bond
  Michael C. Bond
  Chief Financial Officer

 

A signed original of this written statement required by Section 906 or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

 

 

 

v3.24.3
Cover - shares
 9 Months Ended
Sep. 30, 2024
Nov. 12, 2024
Cover [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Quarterly Report true  
Document Transition Report false  
Document Period End Date Sep. 30, 2024  
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2024  
Current Fiscal Year End Date --12-31  
Entity File Number 001-35988  
Entity Registrant Name Vislink Technologies, Inc.  
Entity Central Index Key 0001565228  
Entity Tax Identification Number 20-5856795  
Entity Incorporation, State or Country Code DE  
Entity Address, Address Line One 350 Clark Drive  
Entity Address, Address Line Two Suite 125  
Entity Address, City or Town Mt. Olive  
Entity Address, State or Province NJ  
Entity Address, Postal Zip Code 07828  
City Area Code (908)  
Local Phone Number 852-3700  
Title of 12(b) Security Common stock par value $0.00001 per share  
Trading Symbol VISL  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   2,464,419
v3.24.3
Condensed Consolidated Balance Sheets - USD ($)
Sep. 30, 2024
Dec. 31, 2023
Current assets    
Cash and cash equivalents $ 3,213,000 $ 8,482,000
Accounts receivable, net 8,252,000 8,680,000
Inventories, net 15,265,000 14,029,000
Investments held to maturity 5,975,000 5,731,000
Prepaid expenses and other current assets 1,992,000 1,560,000
Total current assets 34,697,000 38,482,000
Right of use assets, operating leases 504,000 742,000
Property and equipment, net 2,155,000 1,902,000
Intangible assets, net 3,052,000 3,866,000
Total assets 40,408,000 44,992,000
Current liabilities    
Accounts payable 3,211,000 3,183,000
Accrued expenses 1,675,000 1,578,000
Notes payable 230,000
Operating lease obligations, current 513,000 463,000
Customer deposits and deferred revenue 1,983,000 1,490,000
Total current liabilities 7,612,000 6,714,000
Operating lease obligations, net of current portion 376,000 755,000
Deferred tax liabilities 430,000 546,000
Total liabilities 8,418,000 8,015,000
Commitments and contingencies (See Note 12)
Stockholders’ equity    
Series A Preferred stock, $0.00001 par value per share: -0- shares authorized on September 30, 2024, and December 31, 2023, respectively; -0- shares issued and outstanding on September 30, 2024, and December 31, 2023, respectively.
Common stock, $0.00001 par value per share, 100,000,000 shares authorized on September 30, 2024, and December 31, 2023, respectively: Common stock, 2,464,398 and 2,439,923 were issued, and 2,464,265 and 2,439,790 were outstanding on September 30, 2024, and December 31, 2023, respectively.
Additional paid-in capital 348,548,000 347,507,000
Accumulated other comprehensive loss (827,000) (1,027,000)
Treasury stock, at cost – 133 shares as of September 30, 2024, and December 31, 2023, respectively (277,000) (277,000)
Accumulated deficit (315,454,000) (309,226,000)
Total stockholders’ equity 31,990,000 36,977,000
Total liabilities and stockholders’ equity $ 40,408,000 $ 44,992,000
v3.24.3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Sep. 30, 2024
Dec. 31, 2023
Statement of Financial Position [Abstract]    
Preferred stock, par value $ 0.00001 $ 0.00001
Preferred stock, shares authorized 0 0
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value $ 0.00001 $ 0.00001
Common stock, shares authorized 100,000,000 100,000,000
Common stock, shares issued 2,464,398 2,439,923
Common stock, shares outstanding 2,464,265 2,439,790
Treasury stock, shares 133 133
v3.24.3
Condensed Consolidated Statements of Operations and Other Comprehensive Loss (Unaudited) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Income Statement [Abstract]        
Revenue, net $ 7,066,000 $ 7,179,000 $ 24,366,000 $ 19,410,000
Cost of revenue and operating expenses        
Cost of components and personnel 3,485,000 3,302,000 10,846,000 8,977,000
Inventory valuation adjustments 310,000 176,000 744,000 480,000
General and administrative expenses 5,050,000 4,793,000 16,262,000 14,500,000
Research and development expenses 1,160,000 805,000 2,925,000 2,480,000
Impairment on right-of-use assets 83,000 83,000
Depreciation and amortization 321,000 311,000 1,011,000 913,000
Total cost of revenue and operating expenses 10,326,000 9,470,000 31,788,000 27,433,000
Loss from operations (3,260,000) (2,291,000) (7,422,000) (8,023,000)
Other income (expense)        
Unrealized gain (loss) on investments held to maturity 84,000 (4,000) 229,000 (67,000)
Other income (loss) 26,000 (36,000) 400,000 294,000
Dividend income 47,000 104,000 185,000 323,000
Interest income, net 86,000 202,000 264,000 555,000
Total other income 243,000 266,000 1,078,000 1,105,000
Net loss before income taxes (3,017,000) (2,025,000) (6,344,000) (6,918,000)
Income taxes        
Deferred tax benefits 7,000 55,000 116,000 164,000
Net loss $ (3,010,000) $ (1,970,000) $ (6,228,000) $ (6,754,000)
Basic loss per share $ (1.22) $ (0.83) $ (2.54) $ (2.84)
Diluted loss per share $ (1.22) $ (0.83) $ (2.54) $ (2.84)
Weighted average number of shares outstanding:        
Basic 2,464 2,382 2,454 2,377
Diluted 2,464 2,382 2,454 2,377
Comprehensive loss:        
Net loss $ (3,010,000) $ (1,970,000) $ (6,228,000) $ (6,754,000)
Unrealized gain (loss) on currency translation adjustment 566,000 (364,000) 200,000 (64,000)
Comprehensive loss $ (2,444,000) $ (2,334,000) $ (6,028,000) $ (6,818,000)
v3.24.3
Consolidated Statement of Changes in Stockholders' Equity (Unaudited) - USD ($)
Preferred Stock [Member]
Series A Preferred Stock [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
AOCI Attributable to Parent [Member]
Treasury Stock, Common [Member]
Retained Earnings [Member]
Total
Balance at Dec. 31, 2022 [1] $ 345,365,000 $ (1,337,000) $ (277,000) $ (300,099,000) $ 43,652,000
Balance, shares at Dec. 31, 2022 [1] 47,419 2,367,362          
Net loss (6,754,000) (6,754,000)
Unrealized loss on currency translation adjustment (64,000) (64,000)
Issuance of common stock in connection with:              
Compensation awards for services previously accrued 200,000 200,000
Satisfaction with the conversion of restricted stock unit awards
Satisfaction with the conversion of restricted stock unit awards, shares   10,234          
Stock-based compensation 1,600,000 1,600,000
Compensation awards for services previously accrued, shares   10,000          
Elimination of Series A Preferred Stock
Elimination of Series A Preferred Stock, shares (47,419)            
Balance at Sep. 30, 2023 347,165,000 (1,401,000) (277,000) (306,853,000) 38,634,000
Balance, shares at Sep. 30, 2023 2,387,596          
Balance at Jun. 30, 2023 346,822,000 (1,037,000) (277,000) (304,883,000) 40,625,000
Balance, shares at Jun. 30, 2023 2,377,362          
Net loss (1,970,000) (1,970,000)
Unrealized loss on currency translation adjustment (364,000) (364,000)
Issuance of common stock in connection with:              
Satisfaction with the conversion of restricted stock unit awards
Satisfaction with the conversion of restricted stock unit awards, shares   10,234          
Stock-based compensation 343,000 343,000
Balance at Sep. 30, 2023 347,165,000 (1,401,000) (277,000) (306,853,000) 38,634,000
Balance, shares at Sep. 30, 2023 2,387,596          
Balance at Dec. 31, 2023 347,507,000 (1,027,000) (277,000) (309,226,000) 36,977,000
Balance, shares at Dec. 31, 2023 2,439,923          
Net loss (6,228,000) (6,228,000)
Unrealized loss on currency translation adjustment 200,000 200,000
Issuance of common stock in connection with:              
Compensation awards for services previously accrued 160,000 160,000
Satisfaction with the conversion of restricted stock unit awards
Satisfaction with the conversion of restricted stock unit awards, shares   16,475          
Stock-based compensation 881,000 881,000
Compensation awards for services previously accrued, shares   8,000          
Balance at Sep. 30, 2024 348,548,000 (827,000) (277,000) (315,454,000) 31,990,000
Balance, shares at Sep. 30, 2024 2,464,398          
Balance at Jun. 30, 2024 348,349,000 (1,393,000) (277,000) (312,444,000) 34,235,000
Balance, shares at Jun. 30, 2024 2,452,482          
Net loss (3,010,000) (3,010,000)
Unrealized loss on currency translation adjustment 566,000 566,000
Issuance of common stock in connection with:              
Compensation awards for services previously accrued
Satisfaction with the conversion of restricted stock unit awards
Satisfaction with the conversion of restricted stock unit awards, shares   11,916          
Stock-based compensation 199,000 199,000
Balance at Sep. 30, 2024 $ 348,548,000 $ (827,000) $ (277,000) $ (315,454,000) $ 31,990,000
Balance, shares at Sep. 30, 2024 2,464,398          
[1] In connection with the reverse stock split implemented by the Company on May 1, 2023, the Company’s stock transfer agent calculated a de minimus adjustment to the opening quantity of shares issued.
v3.24.3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Cash flows used in operating activities    
Net loss $ (6,228) $ (6,754)
Adjustments to reconcile net loss to net cash used in operating activities    
Deferred tax benefits (116) (164)
Unrealized (gain) loss on the fair value of investments in bonds held to maturity (229) 67
Accretion of bond discount (15) (224)
Stock-based compensation 881 1,600
Provision for bad debt 213 64
Recovery of bad debt (8)
Inventory valuation adjustments 744 480
Amortization of right-of-use assets, operating assets 236 276
Depreciation and amortization 1,011 913
Impairment on right-of-use assets 83
Changes in assets and liabilities    
Accounts receivable 416 (1,400)
Inventories (1,424) (1,598)
Prepaid expenses and other current assets 64 (278)
Accounts payable 28 505
Accrued expenses 96 445
Accrued director’s compensation 160 (5)
Operating lease obligations (329) (367)
Customer deposits and deferred revenue 493 373
Net cash used in operating activities (3,999) (5,992)
Cash flows used in investing activities    
Cash used for investments held to maturity (949) (10,763)
Cash used in asset acquisition (269)
Proceeds from bond redemption 950
Cash used for property and equipment (519) (502)
Net cash used in investing activities (518) (11,534)
Cash flows used in financing activities    
Principal payments made on notes payable (280) (409)
Net cash used in financing activities (280) (409)
Effect of exchange rate changes on cash (472) (452)
Net decrease in cash and cash equivalents (5,269) (18,387)
Cash and cash equivalents, beginning of the period 8,482 25,627
Cash and cash equivalents, end of the period 3,213 7,240
Supplemental disclosure of cash flow information:    
Cash paid during the period for interest 12 11
Supplemental disclosure of non-cash information:    
Notes payable 510 523
Common stock issued in connection with:    
Compensation awards previously accrued 160 200
ROU assets and operating lease obligations recognized (Note 9):    
Operating lease assets recognized
Less: non-cash changes to operating lease assets    
Amortization (236) (276)
Impairment (83)
Loss on lease impairment 83
ROU assets and operating lease obligations recognized (236) (276)
Operating lease liabilities recognized
Less: non-cash changes to operating lease liabilities accretion (329) (367)
Operating lease liabilities recognized $ (329) $ (367)
v3.24.3
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Pay vs Performance Disclosure [Table]        
Net Income (Loss) $ (3,010) $ (1,970) $ (6,228) $ (6,754)
v3.24.3
Insider Trading Arrangements
 3 Months Ended
Sep. 30, 2024
Insider Trading Arrangements [Line Items]  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.3
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 9 Months Ended
Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1 — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Nature of Operations

 

Vislink Technologies, Inc., incorporated in Delaware in 2006, is a global technology business that collects, delivers, and manages high-quality, live video and associated data from the action scene to the viewing screen. We provide solutions for collecting live news, sports, entertainment, and news events for the broadcast, surveillance, and defense markets with real-time video intelligence solutions using various tailored transmission products. Our team also provides professional and technical services utilizing a staff of technology experts with decades of applied knowledge and real-world experience in terrestrial microwave, fiber optic, surveillance, and wireless communications systems, delivering a broad spectrum of customer solutions.

 

Basis of Presentation

 

The accompanying unaudited condensed consolidated interim financial statements, along with the notes herein, are intended to be reviewed in conjunction with Vislink Technologies, Inc.’s audited consolidated financial statements and the accompanying notes as detailed in the 2023 Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission (the “SEC”) on April 3, 2024 (the “Annual Report on Form 10-K”). The condensed consolidated balance sheet, as of December 31, 2023, originates from these audited statements without complete footnote disclosures typically found in audited annual statements. These unaudited condensed consolidated financial statements have been prepared to include all necessary adjustments, solely of a routine recurring nature, deemed essential for a fair presentation of the Company’s financial standing as of September 30, 2024, along with our results of operations for the three and nine months ending on September 30 for both 2024 and 2023, and the cash flows for these periods. However, the results and position as of September 30, 2024, may not be indicative of our full-year 2024 financial condition and operating results.

 

Given the interim nature of this 10-Q report, the detail and scope of accounting policies outlined here are less comprehensive than those found in the Annual Report on Form 10-K. Investors are encouraged to refer to NOTE 3 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES in the audited consolidated financial statements within the Annual Report on Form 10-K.

 

Principles of Consolidation

 

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America or (“U.S. GAAP”) as found in the Accounting Standards Codification (“ASC”), the Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”) and the rules and regulations of the SEC. The accompanying unaudited condensed consolidated financial statements include the Company’s accounts and wholly-owned subsidiaries. We have eliminated all intercompany accounts and transactions upon consolidating our subsidiaries.

 

Segment Reporting

 

In accordance with the Financial Accounting Standards Board’s (FASB) mandate, Vislink Technologies, Inc. adopted Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280), effective January 1, 2024. Initially issued by FASB in February 2023, this update revises the reporting requirements for operating segments of public entities to enhance the transparency and utility of segment reporting.

 

Prior to this date, as disclosed in our Annual Report on Form 10-K, we had not yet formally adopted ASU 2023-07, which became mandatory for public entities in reporting periods beginning after December 15, 2023. We have concluded that we operate as a single reporting segment, and due to this structure, we believe we are only required to report in a single segment by ASU 2023-07. Accordingly, we believe the adoption of ASU 2023-07 has not significantly impacted our financial statements.

 

 

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 1 — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

 

Use of Estimates

 

Preparing the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities in the unaudited condensed consolidated financial statements. Significant accounting estimates reflected in the Company’s unaudited condensed consolidated financial statements include the useful lives of property, plant, and equipment, the useful lives of right-of-use assets, the useful lives of intangible assets, impairment of long-lived assets, allowance for accounts receivable doubtful accounts, allowance for inventory obsolescence reserve, allowance for deferred tax assets, valuation of warranty reserves, contingent consideration liabilities, and the accrual of potential liabilities. These estimates also affect the reported revenues and expenses during the reporting periods. Actual results could differ from estimates, and any such differences may be material to our financial statements.

 

Recently Issued Accounting Principles

 

Recent Accounting Pronouncements

 

On November 4, 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This amendment requires enhanced disclosures on expense disaggregation within the income statement. The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company has not yet assessed the impact of this ASU on its financial statements.

 

Other recent accounting standards issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the SEC, did not or are not believed by management to have a material impact on the Company’s present or future consolidated financial statements.

 
v3.24.3
LIQUIDITY AND FINANCIAL CONDITION
 9 Months Ended
Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
LIQUIDITY AND FINANCIAL CONDITION

NOTE 2 — LIQUIDITY AND FINANCIAL CONDITION

 

For the nine months ended September 30, 2024, the Company incurred an approximate $7.4 million loss from operations and $4.0 million of cash used in operating activities. As of September 30, 2024, the Company had $27.1 million in working capital, $315.5 million in accumulated deficits, and $3.2 million in cash and cash equivalents.

 

During the first quarter of 2024, the Company invested approximately $0.9 million of its cash reserves in federal bonds intended to be held to maturity. No additional investments were made during the second and third quarters of 2024. As of September 30, 2024, the Company held investments in federal bonds valued at $6.0 million, intended to be held to maturity, primarily seeking to generate investment income.

 

Various factors influence the Company’s liquidity needs, including economic conditions such as inflation and currency exchange rates, competitive dynamics within current and target markets, potential strategic acquisitions, and market strategy adjustments. Additionally, research and development activities, regulatory developments, and technological advancements could further impact liquidity requirements. Given these considerations, management believes that the Company has sufficient resources to continue operations for at least 12 months from the filing date of these financial statements.

 

Restructuring Initiatives:

 

On November 12, 2024, the Board approved a plan to restructure certain operations of the business. The Company has initiated a series of restructuring actions that include a reduction in workforce and the termination of the U.K. and Poway, California manufacturing operations, and the transfer of these manufacturing activities to Mount Olive, New Jersey. The initiatives aim to enhance the Company’s financial position by eliminating underperforming product lines, redundant manufacturing facilities, and associated headcount.

 

The Company expects associated one-time costs saving related to severance, lease termination, and other restructuring initiatives to total approximately $4.9 million. The majority of these savings will be realized in the fourth quarter of 2024 and the first quarter of 2025. The Company expects to realize additional expense savings of approximately $1.1 million throughout 2025. There is no assurance the Company will be able to achieve these objectives. The actual results may differ from these estimates.

 
v3.24.3
LOSS PER SHARE
 9 Months Ended
Sep. 30, 2024
Earnings Per Share [Abstract]  
LOSS PER SHARE

NOTE 3 — LOSS PER SHARE

 

The following table illustrates the anti-dilutive potential common stock equivalents excluded from the calculation of loss per share (in thousands):

 

   2024   2023 
   Nine Months Ended 
   September 30, 
   2024   2023 
Anti-dilutive potential common stock equivalents excluded from the calculation of loss per share:          
Stock options   71    76 
Warrants   455    456 
Total   526    532 

 

 

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 
v3.24.3
FOREIGN CURRENCY AND OTHER COMPREHENSIVE (GAINS) LOSSES
 9 Months Ended
Sep. 30, 2024
Foreign Currency [Abstract]  
FOREIGN CURRENCY AND OTHER COMPREHENSIVE (GAINS) LOSSES

NOTE 4 — FOREIGN CURRENCY AND OTHER COMPREHENSIVE (GAINS) LOSSES

 

The Company has recognized foreign exchange gains and losses and changes in accumulated comprehensive income approximately as follows:

 

   2024   2023   2024   2023 
   Three months ended   Nine months ended 
   September 30,   September 30, 
   2024   2023   2024   2023 
Net foreign exchange transactions:                    
(Gains) Losses  $40,000   $58,000   $70,000   $55,000 
                     
Accumulated comprehensive income:                    
Unrealized (gains) losses on currency translation adjustment  $(566,000)  $364,000   $(200,000)  $64,000 

 

Amounts were converted from British Pounds to U.S. Dollars and Euros to British Pounds using the following exchange rates:

 

  ● As of September 30, 2024 – £1.338690 to $1.00; €1.116020 to $1.00
     
  ● The average exchange rate for the nine months ended September 30, 2024 – £1.276856 to $1.00; €1.087081to $1.00
     
  ● As of September 30, 2023 – £1.221980 to $1.00; €1.058230 to $1.00
     
  ● The average exchange rate for the nine months ended September 30, 2023 – £1.244390 to $1.00; €1.083310 to $1.00

 
v3.24.3
CASH AND CASH EQUIVALENTS
 9 Months Ended
Sep. 30, 2024
Cash and Cash Equivalents [Abstract]  
CASH AND CASH EQUIVALENTS

NOTE 5 — CASH AND CASH EQUIVALENTS

 

The Company considers all highly liquid investments with an original maturity of nine months or less at the time of purchase to be cash equivalents. Cash equivalents consist of unrestricted funds invested in a money market mutual fund. The following table illustrates the Company’s cash and cash equivalents:

 

  

September 30,

2024

  

December 31,

2023

 
Cash on hand  $995,000   $1,776,000 
Federally insured money market mutual funds   2,218,000    6,706,000 
Total cash and cash equivalents  $3,213,000   $8,482,000 

 
v3.24.3
INVESTMENTS
 9 Months Ended
Sep. 30, 2024
Investments, All Other Investments [Abstract]  
INVESTMENTS

NOTE 6 — INVESTMENTS

 

The Company identified the following active debt security investment transactions:

 

  ● On February 28, 2023, the Company purchased a bond, “Federal National Mortgage Association,” with a face and par value of $950,000, which matured February 28, 2024, at an interest rate of 5.07%, totaling $950,000. The bond was redeemed on February 29, 2024.
     
  ● On October 11, 2023, the Company purchased a bond, “HSBC USA INC CP,” with a face value of $5,000,000, maturing October 11, 2024, at a 6.262291% interest rate, for a cash payment of approximately $4,711,000. The value on September 30, 2024, was $4,992,000.
     
  ● On February 27, 2024, the Company acquired the “HSBC USA INC CP” bond with a face value of $1,000,000 and a maturity date of February 12, 2025, at an interest rate of 5.48%, for a cash outlay of approximately $949,400. As of September 30, 2024, the fair value of this bond was $983,000.

 

 

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 6 — INVESTMENTS (continued)

 

The Company’s investments held to maturity are as follows as of September 30, 2024:

 

  

Amortized

Cost

  

Unrealized

Gains

   Unrealized Losses   Fair Value 
                     
 Federal Bonds  $5,678,000   $297,000   $—   $5,975,000 

 

The Company has determined the fair value of its investments held to maturity based on Level 2 input as of September 30, 2024:

 

The Company’s investments held to maturity are as follows as of September 30, 2024:

  

  

Quoted Prices in Active Market of Identical Assets/Liabilities

(Level 1)

   Significant Other Observable Inputs (Level 2)  

Significant Unobservable Inputs

(Level 3)

   Total 
                     
Federal Bonds  $—   $5,975,000   $—   $5,975,000 

 
v3.24.3
INTANGIBLE ASSETS
 9 Months Ended
Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS

NOTE 7 — INTANGIBLE ASSETS

 

The Company continuously monitors operating results, events, and circumstances that may indicate potential impairment of intangible assets. Management concluded that no triggering events occurred during the nine months ending on September 30, 2024.

 

The following table illustrates finite intangible assets as of September 30, 2024:

 

   Proprietary Technology   Patents and Licenses   Trade Names & Technology   Customer Relationships     
       Accumulated       Accumulated       Accumulated       Accumulated     
   Cost   Amortization   Cost   Amortization   Cost   Amortization   Cost   Amortization   Net 
                                     
Balance, January 1, 2024  $2,132,000   $(1,408,000)  $12,378,000   $(12,378,000)  $2,251,000   $(1,327,000)  $5,591,000   $(3,373,000)  $3,866,000 
Amortization   —    (393,000)   —    —    —    (104,000)   —    (317,000)   (814,000)
Balance, September 30, 2024  $2,132,000   $(1,801,000)  $12,378,000   $(12,378,000)  $2,251,000   $(1,431,000)  $5,591,000   $(3,690,000)  $3,052,000 

 

The Company’s groups of intangible assets consist primarily of:

 

Proprietary Technology:

 

Generally, the Company amortizes proprietary technology over 3 to 5 years. Mobile Viewpoint (“MVP”) uses wireless multiplex transmitters and artificial intelligence internally to produce and sell products and services to customers.

 

Patents and Licenses:

 

Patents and licenses filed by the Company are amortized for 18.5 to 20 years. The amortization of the costs associated with provisional patents and pending applications begins after successful review and filing.

 

Trade Name, Technology, and Customer Relationships:

 

Other intangible assets are amortized for 3 to 15 years. Integrated Microwave Technology (“IMT”), Vislink, MVP, and BMS assets acquisitions contributed to developing these intangible assets, including trade names, technology, and customer lists.

 

The Company has recognized net capitalized intangible costs as follows:

  

   September 30,   December 31, 
   2024   2023 
Proprietary Technology  $333,000   $726,000 
Trade Names and Technology   819,000    922,000 
Customer Relationships   1,900,000    2,218,000 
 Net capitalized intangible costs  $3,052,000   $3,866,000 

 

 

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 7 — INTANGIBLE ASSETS (continued)

 

Trade Name, Technology, and Customer Relationships: (continued)

 

The Company has recognized the amortization of intangible assets as follows:

  

   2024   2023   2024   2023 
   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2024   2023   2024   2023 
Proprietary Technology  $98,000   $149,000   $393,000   $443,000 
Trade Names and Technology   35,000    35,000    104,000    104,000 
Customer Relationships   107,000    66,000    317,000    193,000 
 Amortization of intangible assets  $240,000   $250,000   $814,000   $740,000 

 

The weighted average remaining life of the amortization of the Company’s intangible assets is approximately 4.9 years as of September 30, 2024. The following table represents the estimated amortization expense for total intangible assets for the succeeding five years:

 

Period ending September 30,     
2025  $735,000 
2026   650,000 
2027   291,000 
2028   288,000 
2029   288,000 
Thereafter   800,000 
 Intangible assets, estimated amortization expense  $3,052,000 

 

The Company continuously monitors intangible assets for potential impairments based on operating results, events, and circumstances. As of September 30, 2024, management identified no triggering events.

 
v3.24.3
NOTES PAYABLE
 9 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
NOTES PAYABLE

NOTE 8 — NOTES PAYABLE

 

The table below represents the Company’s notes payable as of September 30, 2024, and December 31, 2023:

 

   September 30,
2024		   December 31,
2023		 
   Principal 
   September 30,
2024		   December 31,
2023		 
         
The Company renewed its Directors and Officers (D & O) insurance policy on April 23, 2024, at a reduced premium of approximately $788,000, making a down payment of $278,000 financing the remaining balance of approximately $510,000. The financing arrangement contains a nine-month term with a 7.5% annual interest rate, resulting in a monthly principal and interest payment of approximately $58,000. The Company recognized interest expense of $6,000 and $10,000 for the three and nine months ending September 30, 2024, respectively, compared to none for the same periods in 2023.  $230,000   $— 
Notes payable  $230,000   $— 

 
v3.24.3
LEASES
 9 Months Ended
Sep. 30, 2024
Leases  
LEASES

NOTE 9 — LEASES

 

In addition to leasing office spaces, operational sites, and storage facilities, the Company also rents warehouse facilities internationally and within the country. As of September 30, 2024, these operating leases feature a variety of terms and conditions, with lease lengths ranging from one to four years. Certain leases contain clauses for rent increases and concessions, which result in higher rental payments during the final years of the lease term. These agreements are recognized using the straight-line method over the lease’s minimum duration.

 

 

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 9 — LEASES (continued)

 

During those periods, there were no significant adjustments to the straight-line rental expenses. Most costs accounted for in each period were reflected in the cash spent on operating activities, mainly covering payments for the basic rent of offices and warehouses. Additionally, we can renew certain leases at various intervals, though we are not obligated to. Expenses associated with short-term leases, taxes, and variable service fees were minimal.

 

As of September 30, 2024, the Company reported Right-of-Use (ROU) assets totaling approximately $0.5 million on the balance sheet net of $1.9 million in accumulated amortization. In addition, the Company recognized operating lease liabilities of approximately $0.9 million, allocating $0.5 million as current and $0.4 million as non-current, as noted on the balance sheet. The weighted average lease term remaining as of September 30, 2024, was 1.8 years, with leases expiring between January 2025 and May 2027, and the weighted average discount rate was 9.4% as of September 30, 2024.

 

Poway, CA Lease Renewal and Classification Correction

 

On February 12, 2024, Vislink Poway, LLC signed a renewal agreement with CPI Apartment Fund 10 LLC for the premises at 13475 Danielson Street, Suite 100, 130, and 160, Poway, California. The renewal agreement was initially accounted for based on preliminary terms indicating a lease commencement on March 14, 2024, with an end date of January 31, 2026. Consequently, a Right-of-Use (ROU) asset of approximately $484,000 and a lease liability of approximately $473,000 were recognized in the first quarter of 2024.

 

The final signed lease agreement was obtained during the third quarter of 2024. It confirms a one-year lease term beginning on April 1, 2024, and ending on March 31, 2025. Since the finalized lease term is 12 months, it qualifies as a short-term lease under ASC 842, and no ROU asset or lease liability is required to be recorded.

 

The Company corrected this by removing the previously recognized ROU asset and lease liability. The Poway, California lease is now accurately accounted for as a short-term lease, with monthly payments of $22,926 expensed on a straight-line basis over the lease term.

 

Dubai Studio City, UAE Renewal

 

The Company renewed its lease for 646 square feet of administrative office space in Dubai Studio City, UAE, for approximately $1,333 monthly commencing on July 3, 2024, and terminating on July 2, 2025.

 

 

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 9 — LEASES (continued)

 

Dubai Studio City, UAE Renewal (continued)

 

The following table illustrates operating lease data for the three and six months ending September 30, 2024, and 2023:

  

   2024   2023   2024   2023 
   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2024   2023   2024   2023 
Lease cost:                    
Operating lease cost  $173,000   $97,000   $465,000   $303,000 
Short-term lease cost   16,000    5,000    99,000    25,000 
Total lease cost  $189,000   $102,000   $564,000   $328,000 
Cash paid for lease liabilities:                    

Cash flows from operating leases   $581,000   $473,000 
Right of use assets obtained in exchange for new operating lease liabilities  $—   $— 
           
Weighted-average remaining lease term—operating leases    1.8 years        3.0 years   
Weighted-average discount rate—operating leases   9.4%   9.5%

 

The following table illustrates the maturities of our operating lease liabilities as of September 30, 2024:

  

   Amount 
     
2025  $575,000 
2026   280,000 
2027   121,000 
2028   — 
2029   — 
Thereafter   — 
Total lease payments   976,000 
Less: imputed interest   87,000 
Present value of lease liabilities   889,000 
Less: Current lease liabilities   513,000 
Non-current lease liabilities  $376,000 

 

The following table outlines the locations and lease termination dates for the Company’s Right-of-Use Assets under operating leases for the years 2025 to 2027:

  

Location  Square Footage  Lease-End Date  Approximate Future Payments 
Colchester, U.K. – Waterside House  13,223  Dec  2025  $324,000 
Lutton, UK  600  Jan  2025   10,000 
Billerica, MA  2,000  Dec  2026   240,000 
Mount Olive, NJ  7,979  May  2027   370,000 
Trivex, Singapore  950  Aug  2025   32,000 

 

 

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 
v3.24.3
STOCKHOLDERS’ EQUITY
 9 Months Ended
Sep. 30, 2024
Equity [Abstract]  
STOCKHOLDERS’ EQUITY

NOTE 10— STOCKHOLDERS’ EQUITY

 

Preferred stock

 

On March 22, 2023, the Company’s Board of Directors approved a resolution to eliminate the Company’s Certificate of Designation, Preferences, and Rights (the “Certificate of Elimination”) of the Series A Preferred Stock, par value of $0.00001 per share (the “Series A Preferred Stock”), which was filed with the Secretary of State of the State of Delaware on November 9, 2022.

 

Upon the effective filing of the Certificate of Elimination, the shares previously designated under the certificate of designation as Series A Preferred Stock shall resume the status of authorized but unissued shares of the Company’s preferred stock. As of September 30, 2024, -0- shares are authorized, and no Series A Preferred Stock was issued or outstanding.

 

Common stock

 

Other common stock activity

 

During the nine months that ended September 30, 2024, the Company has:

 

  ● Issued 8,000 shares of common stock to specific board members as part of a commitment agreement valued at $160,000 (the common stock’s value was determined on the agreement’s original date);
     
  ● Issued 16,475 shares of common stock in satisfaction of the conversion of restricted stock unit awards and
     
  ● Recognized approximately $881,000 of stock-based compensation costs associated with outstanding stock options in general and administrative expenses offsetting additional capital investments.

 

Common stock warrants

 

As of September 30, 2024, warrants to purchase 1,534 shares of common stock expired. On September 30, 2024, warrants to purchase 454,546 shares of common stock were outstanding and exercisable; the weighted average exercise price of warrants outstanding is $65.00, with a weighted average remaining contractual life of 1.4 years. These outstanding warrants did not have an intrinsic value as of September 30, 2024.

 
v3.24.3
STOCK-BASED COMPENSATION
 9 Months Ended
Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION

NOTE 11 — STOCK-BASED COMPENSATION

 

Inducement Awards:

 

The Company grants time-vested and performance-based stock options under inducement awards, consistent with NASDAQ Listing Rule 5653(c)(4). These inducement awards, granted outside our existing equity compensation plans, are designed to reward employees for their commitment and performance toward achieving our strategic goals.

 

Time-based and Performance-based Inducement Stock Option Awards

 

The Company’s inducement stock option awards are generally granted with vesting terms based on time or performance-based criteria. Performance-based awards are tied to achieving specific financial metrics, aligning employee rewards with the Company’s success. The Company granted time-vested stock options and performance-based stock options to various employees in connection with their employment agreements. The ten-year, non-statutory time-vested, and performance-based option inducement awards were granted under the NASDAQ Listing Rule 5653(c)(4) outside of the Company’s existing equity compensation plans (all subject to continued employment).

 

 

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 11 — STOCK-BASED COMPENSATION (continued)

 

Inducement Awards (continued):

 

Time-based and Performance-Based Inducement Restricted Stock Unit Awards

 

The Company’s inducement-restricted stock units (“RSUs”) are generally granted with vesting terms based on time or performance-based criteria. Performance-based RSUs are tied to achieving specific financial metrics, and aligning employee rewards with the Company’s success.

 

The Company granted awards under the amended plan for time-based RSUs to various employees subject to continued employment. The RSUs initially vest between 25% and 33% on their one-year anniversary dates and will vest between 24 and 36 equal monthly periods thereafter. Additionally, the Company granted awards under the amended plan for performance-based restricted stock units subject to performance vesting conditions and continued employment. The RSUs will vest in three equal tranches upon reaching performance conditions for each tranche.

 

2023 Omnibus Equity Incentive Plan

 

The Company received stockholder approval on August 23, 2023, to adopt the 2023 Omnibus Equity Incentive Plan (the “2023 Plan”), which will enable it to continue to grant equity-based compensation awards under a shareholder-approved plan to employees (including officers), non-employee consultants, non-employee directors, and affiliates. The 2023 Plan replaces the 2015 Incentive Compensation Plan, 2016 Incentive Compensation Plan, and 2017 Incentive Compensation Plan. The Company has ceased granting awards under the 2015 Incentive Compensation Plan, 2016 Incentive Compensation Plan, and 2017 Incentive Compensation Plan. The Company reserves 166,415 shares of its common stock for delivery under the 2023 Plan. The 2023 Plan rewards eligible participants for contributing to the Company’s success and encourages retaining and recruiting qualified personnel. The Company’s Board of Directors and Compensation Committee will administer the 2023 Plan.

 

The 2023 Plan generally grants awards without consideration other than prior and future service. The Company’s compensation committee may grant awards under the 2023 Plan either alone or in addition to, in tandem with, or as a substitute for any other award granted under the 2023 Plan or other Company plans. It is important to note, however, that if a SAR is granted in conjunction with an ISO, the grant date and term of the SAR and ISO must be the same, and the exercise price of the SAR cannot be lower than the exercise price of the ISO. A written award agreement between us and the grantee will outline the material terms of the award.

 

Summary of stock-based compensation for all equity award plans

 

The table below shows stock-based compensation expenses, included in general and administrative expenses, under the following plans.

  

   2024   2023   2024   2023 
   Three months ended   Nine months ended 
   September 30,   September 30, 
   2024   2023   2024   2023 
Equity-based plans:                    
Time-vested option inducement awards  $—   $37,000   $113,000   $144,000 
Time-based restricted stock awards
   199,000    306,000    768,000    1,456,000 
 Stock-based compensation expense  $199,000   $343,000   $881,000   $1,600,000 

 

 

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 
v3.24.3
COMMITMENTS AND CONTINGENCIES
 9 Months Ended
Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES

NOTE 12 — COMMITMENTS AND CONTINGENCIES

 

Pension:

 

The Company may make a matching contribution to its employees’ 401(k) plan. Furthermore, Vislink operates a Group Personal Plan through its U.K. subsidiary, investing funds with Royal London. Employees of the Company in the United Kingdom are entitled to participate in the Company’s employee benefit plan, to which varying amounts are contributed according to their status. Additionally, the Company operates a stakeholder pension plan in the United Kingdom.

 

The table below represents the Company’s matching contributions as follows:

 

   Three months ended   Nine months ended 
   September 30,   September 30, 
   2024   2023   2024   2023 
Company matching contributions - Group Personal Pension Plan  $33,000   $42,000   $98,000   $110,000 

 
v3.24.3
CONCENTRATIONS
 9 Months Ended
Sep. 30, 2024
Risks and Uncertainties [Abstract]  
CONCENTRATIONS

NOTE 13 — CONCENTRATIONS

 

Customer concentration risk

 

During the three months ended September 30, 2024, the Company had sales to two customers amounting to $1,310,000 (19%) and $892,000 (13%), each representing more than 10% of its consolidated sales. During the nine months ended September 30, 2024, no single customer sale represented more than 10% of the Company’s consolidated sales. For the three months ended September 30, 2023, one customer accounted for approximately $782,000, or 11%, of the Company’s consolidated sales. For the nine months ended September 30, 2023, no customer exceeded 10% of the Company’s consolidated sales.

 

As of September 30, 2024, four customers owed the Company approximately $1,235,000 (15%), $1,125,000 (14%), $1,011,000 (12%), and $981,000 (12%), each representing more than 10% of its consolidated net receivables. As of September 30, 2023, one customer owed the Company approximately $893,000, representing 12% of its consolidated net receivables.

 

Vendor concentration risk

 

During the three months ended September 30, 2024, two vendors accounted for more than 10% of the Company’s consolidated inventory purchases, with approximately $768,000 (20%) and $522,000 (14%), respectively. For the nine months ended September 30, 2024, two vendors exceeded 10% of the Company’s consolidated inventory purchases, with amounts of approximately of $2,560,000 (23%) and $1,263,000 (11%), respectively. For the three months ended September 30, 2023, two vendors accounted for more than 10% of the Company’s consolidated inventory purchases, with approximately $898,000 (26%) and $468,000 (13%). For the nine months ended September 30, 2023, two vendors accounted for more than 10% of the Company’s consolidated inventory purchases of approximately $1,458,000 (16%) and $1,055,000 (11%).

 

As of September 30, 2024, four vendors accounted for over 10% of the Company’s consolidated accounts payable, with balances of approximately $589,000 (18%), $351,000 (11%), $330,000 (10%), and $327,000 (10%), respectively. As of September 30, 2023, one vendor exceeded 10% of the Company’s consolidated accounts payable of approximately $378,000 (12%).

 

 

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 
v3.24.3
REVENUE - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Disaggregation of Revenue [Line Items]        
REVENUE    

NOTE 14 – REVENUE

 

The Company has one operating segment, and the decision-making group is the senior executive management team. In the following table, the Company has disaggregated revenue by the Company’s primary geographical markets and revenue sources:

 

   Three months Ended   Nine months Ended 
   September 30,   September 30, 
   2024   2023   2024   2023 
Primary geographical markets:                    
North America  $2,389,000   $4,120,000   $10,174,000   $9,008,000 
South America   2,000    137,000    20,000    364,000 
Europe   1,380,000    1,347,000    6,260,000    4,783,000 
Asia   2,812,000    1,191,000    3,921,000    3,215,000 
Rest of World   483,000    384,000    3,991,000    2,040,000 
   $7,066,000   $7,179,000   $24,366,000   $19,410,000 
Primary revenue source:                    
Equipment sales  $6,354,000   $6,234,000   $21,814,000   $16,907,000 
Installation, integration, and repairs   305,000    348,000    1,414,000    1,097,000 
Warranties   407,000    597,000    1,138,000    1,406,000 
   $7,066,000   $7,179,000   $24,366,000   $19,410,000 
Long-Lived Assets:                    
United States            $2,917,000   $2,683,000 
Netherlands             27,000    18,000 
United Kingdom             2,767,000    3,933,000 
             $5,711,000   $6,634,000 

 

  
Revenue, net $ 7,066,000 $ 7,179,000 $ 24,366,000 $ 19,410,000
Long-Lived Assets 5,711,000 6,634,000 5,711,000 6,634,000
Equipment Sales [Member]        
Disaggregation of Revenue [Line Items]        
Revenue, net 6,354,000 6,234,000 21,814,000 16,907,000
Installation, Integration and Repairs [Member]        
Disaggregation of Revenue [Line Items]        
Revenue, net 305,000 348,000 1,414,000 1,097,000
Warranties [Member]        
Disaggregation of Revenue [Line Items]        
Revenue, net 407,000 597,000 1,138,000 1,406,000
North America [Member]        
Disaggregation of Revenue [Line Items]        
Revenue, net 2,389,000 4,120,000 10,174,000 9,008,000
South America [Member]        
Disaggregation of Revenue [Line Items]        
Revenue, net 2,000 137,000 20,000 364,000
Europe [Member]        
Disaggregation of Revenue [Line Items]        
Revenue, net 1,380,000 1,347,000 6,260,000 4,783,000
Asia [Member]        
Disaggregation of Revenue [Line Items]        
Revenue, net 2,812,000 1,191,000 3,921,000 3,215,000
Rest of World [Member]        
Disaggregation of Revenue [Line Items]        
Revenue, net 483,000 384,000 3,991,000 2,040,000
UNITED STATES        
Disaggregation of Revenue [Line Items]        
Long-Lived Assets 2,917,000 2,683,000 2,917,000 2,683,000
NETHERLANDS        
Disaggregation of Revenue [Line Items]        
Long-Lived Assets 27,000 18,000 27,000 18,000
UNITED KINGDOM        
Disaggregation of Revenue [Line Items]        
Long-Lived Assets $ 2,767,000 $ 3,933,000 $ 2,767,000 $ 3,933,000
v3.24.3
REBATES
 9 Months Ended
Sep. 30, 2024
Rebates  
REBATES

NOTE 15 — REBATES

 

The Company has been applying for tax rebates related to the research costs incurred by our U.K. subsidiary. During the nine months ended September 30, 2024, the Company recognized $378,000 in tax rebates as other income. For the same period in 2023, the recognized amount was $322,000.

 

While the Company plans to continue filing rebate forms for the 2024 fiscal year, it cannot guarantee that rebates will be available at a similar level or at all in future years.

 
v3.24.3
SUBSEQUENT EVENTS
 9 Months Ended
Sep. 30, 2024
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

NOTE 16 — SUBSEQUENT EVENTS

 

Under ASC 855-10, the Company has analyzed its operations subsequent to September 30, 2024. It has determined that it does not have any other material subsequent events to disclose in these unaudited condensed consolidated financial statements.
v3.24.3
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 9 Months Ended
Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Nature of Operations

Nature of Operations

 

Vislink Technologies, Inc., incorporated in Delaware in 2006, is a global technology business that collects, delivers, and manages high-quality, live video and associated data from the action scene to the viewing screen. We provide solutions for collecting live news, sports, entertainment, and news events for the broadcast, surveillance, and defense markets with real-time video intelligence solutions using various tailored transmission products. Our team also provides professional and technical services utilizing a staff of technology experts with decades of applied knowledge and real-world experience in terrestrial microwave, fiber optic, surveillance, and wireless communications systems, delivering a broad spectrum of customer solutions.

 
Basis of Presentation

Basis of Presentation

 

The accompanying unaudited condensed consolidated interim financial statements, along with the notes herein, are intended to be reviewed in conjunction with Vislink Technologies, Inc.’s audited consolidated financial statements and the accompanying notes as detailed in the 2023 Annual Report on Form 10-K, which was filed with the Securities and Exchange Commission (the “SEC”) on April 3, 2024 (the “Annual Report on Form 10-K”). The condensed consolidated balance sheet, as of December 31, 2023, originates from these audited statements without complete footnote disclosures typically found in audited annual statements. These unaudited condensed consolidated financial statements have been prepared to include all necessary adjustments, solely of a routine recurring nature, deemed essential for a fair presentation of the Company’s financial standing as of September 30, 2024, along with our results of operations for the three and nine months ending on September 30 for both 2024 and 2023, and the cash flows for these periods. However, the results and position as of September 30, 2024, may not be indicative of our full-year 2024 financial condition and operating results.

 

Given the interim nature of this 10-Q report, the detail and scope of accounting policies outlined here are less comprehensive than those found in the Annual Report on Form 10-K. Investors are encouraged to refer to NOTE 3 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES in the audited consolidated financial statements within the Annual Report on Form 10-K.

 
Principles of Consolidation

Principles of Consolidation

 

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America or (“U.S. GAAP”) as found in the Accounting Standards Codification (“ASC”), the Accounting Standards Update (“ASU”) of the Financial Accounting Standards Board (“FASB”) and the rules and regulations of the SEC. The accompanying unaudited condensed consolidated financial statements include the Company’s accounts and wholly-owned subsidiaries. We have eliminated all intercompany accounts and transactions upon consolidating our subsidiaries.

 
Segment Reporting

Segment Reporting

 

In accordance with the Financial Accounting Standards Board’s (FASB) mandate, Vislink Technologies, Inc. adopted Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280), effective January 1, 2024. Initially issued by FASB in February 2023, this update revises the reporting requirements for operating segments of public entities to enhance the transparency and utility of segment reporting.

 

Prior to this date, as disclosed in our Annual Report on Form 10-K, we had not yet formally adopted ASU 2023-07, which became mandatory for public entities in reporting periods beginning after December 15, 2023. We have concluded that we operate as a single reporting segment, and due to this structure, we believe we are only required to report in a single segment by ASU 2023-07. Accordingly, we believe the adoption of ASU 2023-07 has not significantly impacted our financial statements.

 

 

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 1 — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

 
Use of Estimates

Use of Estimates

 

Preparing the unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities in the unaudited condensed consolidated financial statements. Significant accounting estimates reflected in the Company’s unaudited condensed consolidated financial statements include the useful lives of property, plant, and equipment, the useful lives of right-of-use assets, the useful lives of intangible assets, impairment of long-lived assets, allowance for accounts receivable doubtful accounts, allowance for inventory obsolescence reserve, allowance for deferred tax assets, valuation of warranty reserves, contingent consideration liabilities, and the accrual of potential liabilities. These estimates also affect the reported revenues and expenses during the reporting periods. Actual results could differ from estimates, and any such differences may be material to our financial statements.

 
Recently Issued Accounting Principles

Recently Issued Accounting Principles

 

Recent Accounting Pronouncements

 

On November 4, 2024, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This amendment requires enhanced disclosures on expense disaggregation within the income statement. The amendments are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company has not yet assessed the impact of this ASU on its financial statements.

 

Other recent accounting standards issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the SEC, did not or are not believed by management to have a material impact on the Company’s present or future consolidated financial statements.
v3.24.3
LOSS PER SHARE (Tables)
 9 Months Ended
Sep. 30, 2024
Earnings Per Share [Abstract]  
SCHEDULE OF ANTI-DILUTIVE POTENTIAL COMMON STOCK EQUIVALENTS EXCLUDE FROM CALCULATION OF LOSS PER SHARE

The following table illustrates the anti-dilutive potential common stock equivalents excluded from the calculation of loss per share (in thousands):

 

   2024   2023 
   Nine Months Ended 
   September 30, 
   2024   2023 
Anti-dilutive potential common stock equivalents excluded from the calculation of loss per share:          
Stock options   71    76 
Warrants   455    456 
Total   526    532 
v3.24.3
FOREIGN CURRENCY AND OTHER COMPREHENSIVE (GAINS) LOSSES (Tables)
 9 Months Ended
Sep. 30, 2024
Foreign Currency [Abstract]  
SCHEDULE OF FOREIGN EXCHANGE AND CHANGE IN ACCUMULATED COMPREHENSIVE INCOME

The Company has recognized foreign exchange gains and losses and changes in accumulated comprehensive income approximately as follows:

 

   2024   2023   2024   2023 
   Three months ended   Nine months ended 
   September 30,   September 30, 
   2024   2023   2024   2023 
Net foreign exchange transactions:                    
(Gains) Losses  $40,000   $58,000   $70,000   $55,000 
                     
Accumulated comprehensive income:                    
Unrealized (gains) losses on currency translation adjustment  $(566,000)  $364,000   $(200,000)  $64,000 
v3.24.3
CASH AND CASH EQUIVALENTS (Tables)
 9 Months Ended
Sep. 30, 2024
Cash and Cash Equivalents [Abstract]  
SCHEDULE OF CASH AND CASH EQUIVALENTS

 

  

September 30,

2024

  

December 31,

2023

 
Cash on hand  $995,000   $1,776,000 
Federally insured money market mutual funds   2,218,000    6,706,000 
Total cash and cash equivalents  $3,213,000   $8,482,000 
v3.24.3
INVESTMENTS (Tables)
 9 Months Ended
Sep. 30, 2024
Investments, All Other Investments [Abstract]  
SCHEDULE OF INVESTMENTS HELD TO MATURITY

The Company’s investments held to maturity are as follows as of September 30, 2024:

 

  

Amortized

Cost

  

Unrealized

Gains

   Unrealized Losses   Fair Value 
                     
 Federal Bonds  $5,678,000   $297,000   $—   $5,975,000 
SCHEDULE OF FAIR VALUE OF ITS INVESTMENTS

The Company’s investments held to maturity are as follows as of September 30, 2024:

  

  

Quoted Prices in Active Market of Identical Assets/Liabilities

(Level 1)

   Significant Other Observable Inputs (Level 2)  

Significant Unobservable Inputs

(Level 3)

   Total 
                     
Federal Bonds  $—   $5,975,000   $—   $5,975,000 
v3.24.3
INTANGIBLE ASSETS (Tables)
 9 Months Ended
Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
SCHEDULE OF INTANGIBLE ASSETS

The following table illustrates finite intangible assets as of September 30, 2024:

 

   Proprietary Technology   Patents and Licenses   Trade Names & Technology   Customer Relationships     
       Accumulated       Accumulated       Accumulated       Accumulated     
   Cost   Amortization   Cost   Amortization   Cost   Amortization   Cost   Amortization   Net 
                                     
Balance, January 1, 2024  $2,132,000   $(1,408,000)  $12,378,000   $(12,378,000)  $2,251,000   $(1,327,000)  $5,591,000   $(3,373,000)  $3,866,000 
Amortization   —    (393,000)   —    —    —    (104,000)   —    (317,000)   (814,000)
Balance, September 30, 2024  $2,132,000   $(1,801,000)  $12,378,000   $(12,378,000)  $2,251,000   $(1,431,000)  $5,591,000   $(3,690,000)  $3,052,000 
SCHEDULE OF CAPITALIZED INTANGIBLE COSTS

The Company has recognized net capitalized intangible costs as follows:

  

   September 30,   December 31, 
   2024   2023 
Proprietary Technology  $333,000   $726,000 
Trade Names and Technology   819,000    922,000 
Customer Relationships   1,900,000    2,218,000 
 Net capitalized intangible costs  $3,052,000   $3,866,000 
SCHEDULE OF AMORTIZATION OF INTANGIBLE ASSETS

The Company has recognized the amortization of intangible assets as follows:

  

   2024   2023   2024   2023 
   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2024   2023   2024   2023 
Proprietary Technology  $98,000   $149,000   $393,000   $443,000 
Trade Names and Technology   35,000    35,000    104,000    104,000 
Customer Relationships   107,000    66,000    317,000    193,000 
 Amortization of intangible assets  $240,000   $250,000   $814,000   $740,000 
SCHEDULE OF ESTIMATED AMORTIZATION EXPENSE FOR INTANGIBLE ASSETS

The weighted average remaining life of the amortization of the Company’s intangible assets is approximately 4.9 years as of September 30, 2024. The following table represents the estimated amortization expense for total intangible assets for the succeeding five years:

 

Period ending September 30,     
2025  $735,000 
2026   650,000 
2027   291,000 
2028   288,000 
2029   288,000 
Thereafter   800,000 
 Intangible assets, estimated amortization expense  $3,052,000 
v3.24.3
NOTES PAYABLE (Tables)
 9 Months Ended
Sep. 30, 2024
Debt Disclosure [Abstract]  
SCHEDULE OF NOTES PAYABLE

The table below represents the Company’s notes payable as of September 30, 2024, and December 31, 2023:

 

   September 30,
2024		   December 31,
2023		 
   Principal 
   September 30,
2024		   December 31,
2023		 
         
The Company renewed its Directors and Officers (D & O) insurance policy on April 23, 2024, at a reduced premium of approximately $788,000, making a down payment of $278,000 financing the remaining balance of approximately $510,000. The financing arrangement contains a nine-month term with a 7.5% annual interest rate, resulting in a monthly principal and interest payment of approximately $58,000. The Company recognized interest expense of $6,000 and $10,000 for the three and nine months ending September 30, 2024, respectively, compared to none for the same periods in 2023.  $230,000   $— 
Notes payable  $230,000   $— 
v3.24.3
LEASES (Tables)
 9 Months Ended
Sep. 30, 2024
Leases  
SCHEDULE OF OPERATING LEASE DATA

 

Dubai Studio City, UAE Renewal

 

The Company renewed its lease for 646 square feet of administrative office space in Dubai Studio City, UAE, for approximately $1,333 monthly commencing on July 3, 2024, and terminating on July 2, 2025.

 

 

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 9 — LEASES (continued)

 

Dubai Studio City, UAE Renewal (continued)

 

The following table illustrates operating lease data for the three and six months ending September 30, 2024, and 2023:

  

   2024   2023   2024   2023 
   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2024   2023   2024   2023 
Lease cost:                    
Operating lease cost  $173,000   $97,000   $465,000   $303,000 
Short-term lease cost   16,000    5,000    99,000    25,000 
Total lease cost  $189,000   $102,000   $564,000   $328,000 
Cash paid for lease liabilities:                    

Cash flows from operating leases   $581,000   $473,000 
Right of use assets obtained in exchange for new operating lease liabilities  $—   $— 
           
Weighted-average remaining lease term—operating leases    1.8 years        3.0 years   
Weighted-average discount rate—operating leases   9.4%   9.5%
SCHEDULE OF OPERATING LEASE DATA

The following table illustrates operating lease data for the three and six months ending September 30, 2024, and 2023:

  

   2024   2023   2024   2023 
   Three Months Ended   Nine Months Ended 
   September 30,   September 30, 
   2024   2023   2024   2023 
Lease cost:                    
Operating lease cost  $173,000   $97,000   $465,000   $303,000 
Short-term lease cost   16,000    5,000    99,000    25,000 
Total lease cost  $189,000   $102,000   $564,000   $328,000 
Cash paid for lease liabilities:                    

Cash flows from operating leases   $581,000   $473,000 
Right of use assets obtained in exchange for new operating lease liabilities  $—   $— 
           
Weighted-average remaining lease term—operating leases    1.8 years        3.0 years   
Weighted-average discount rate—operating leases   9.4%   9.5%
SCHEDULE OF FUTURE MINIMUM RENTAL PAYMENTS FOR OPERATING LEASES

The following table illustrates the maturities of our operating lease liabilities as of September 30, 2024:

  

   Amount 
     
2025  $575,000 
2026   280,000 
2027   121,000 
2028   — 
2029   — 
Thereafter   — 
Total lease payments   976,000 
Less: imputed interest   87,000 
Present value of lease liabilities   889,000 
Less: Current lease liabilities   513,000 
Non-current lease liabilities  $376,000 
SCHEDULE OF LEASE OBLIGATIONS ASSUMED

The following table outlines the locations and lease termination dates for the Company’s Right-of-Use Assets under operating leases for the years 2025 to 2027:

  

Location  Square Footage  Lease-End Date  Approximate Future Payments 
Colchester, U.K. – Waterside House  13,223  Dec  2025  $324,000 
Lutton, UK  600  Jan  2025   10,000 
Billerica, MA  2,000  Dec  2026   240,000 
Mount Olive, NJ  7,979  May  2027   370,000 
Trivex, Singapore  950  Aug  2025   32,000 
v3.24.3
STOCK-BASED COMPENSATION (Tables)
 9 Months Ended
Sep. 30, 2024
Share-Based Payment Arrangement [Abstract]  
SCHEDULE OF STOCK BASED COMPENSATION EXPENSE

The table below shows stock-based compensation expenses, included in general and administrative expenses, under the following plans.

  

   2024   2023   2024   2023 
   Three months ended   Nine months ended 
   September 30,   September 30, 
   2024   2023   2024   2023 
Equity-based plans:                    
Time-vested option inducement awards  $—   $37,000   $113,000   $144,000 
Time-based restricted stock awards
   199,000    306,000    768,000    1,456,000 
 Stock-based compensation expense  $199,000   $343,000   $881,000   $1,600,000 
v3.24.3
COMMITMENTS AND CONTINGENCIES (Tables)
 9 Months Ended
Sep. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
SCHEDULE OF MATCHING CONTRIBUTIONS

The table below represents the Company’s matching contributions as follows:

 

   Three months ended   Nine months ended 
   September 30,   September 30, 
   2024   2023   2024   2023 
Company matching contributions - Group Personal Pension Plan  $33,000   $42,000   $98,000   $110,000 
v3.24.3
LIQUIDITY AND FINANCIAL CONDITION (Details Narrative) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Mar. 31, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]            
Loss from operations $ 3,260,000 $ 2,291,000 $ 7,422,000 $ 8,023,000    
Cash used in operating activities     3,999,000 $ 5,992,000    
Working capital 27,100,000   27,100,000      
Accumulated deficits 315,454,000   315,454,000     $ 309,226,000
Cash and cash equivalents 3,213,000   3,213,000     $ 8,482,000
Cash reserves         $ 900,000  
Investments $ 6,000,000.0   6,000,000.0      
Severance costs     4,900,000      
Additional expense     $ 1,100,000      
v3.24.3
SCHEDULE OF ANTI-DILUTIVE POTENTIAL COMMON STOCK EQUIVALENTS EXCLUDE FROM CALCULATION OF LOSS PER SHARE (Details) - shares
shares in Thousands
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Anti-dilutive potential common stock equivalents excluded from the calculation of loss per share:    
Total 526 532
Share-Based Payment Arrangement, Option [Member]    
Anti-dilutive potential common stock equivalents excluded from the calculation of loss per share:    
Total 71 76
Warrant [Member]    
Anti-dilutive potential common stock equivalents excluded from the calculation of loss per share:    
Total 455 456
v3.24.3
SCHEDULE OF FOREIGN EXCHANGE AND CHANGE IN ACCUMULATED COMPREHENSIVE INCOME (Details) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Foreign Currency [Abstract]        
(Gains) Losses $ 40,000 $ 58,000 $ 70,000 $ 55,000
Unrealized (gains) losses on currency translation adjustment $ (566,000) $ 364,000 $ (200,000) $ 64,000
v3.24.3
FOREIGN CURRENCY AND OTHER COMPREHENSIVE (GAINS) LOSSES (Details Narrative)
Sep. 30, 2024
Sep. 30, 2023
GBP to USD [Member]    
Trading Activity, Gains and Losses, Net [Line Items]    
Foreign currency exchange rate, translation 1.00 1.00
Average foreign currency exchange rate remeasurement 1.00 1.00
Euro to GBP [Member] | GBP [Member]    
Trading Activity, Gains and Losses, Net [Line Items]    
Foreign currency exchange rate, translation 1.00 1.00
Average foreign currency exchange rate remeasurement 1.00 1.00
Period End GBP to $1 Exchange Rate [Member]    
Trading Activity, Gains and Losses, Net [Line Items]    
Foreign currency exchange rate, translation 1.338690 1.221980
Period End EUR to $1 Exchange Rate [Member]    
Trading Activity, Gains and Losses, Net [Line Items]    
Foreign currency exchange rate, translation 1.116020 1.058230
Period Average GBP to $1 Exchange Rate [Member]    
Trading Activity, Gains and Losses, Net [Line Items]    
Foreign currency exchange rate, translation 1.276856 1.244390
Period Average EUR to $1 Exchange Rate [Member]    
Trading Activity, Gains and Losses, Net [Line Items]    
Foreign currency exchange rate, translation 1.087081 1.083310
v3.24.3
SCHEDULE OF CASH AND CASH EQUIVALENTS (Details) - USD ($)
Sep. 30, 2024
Dec. 31, 2023
Cash and Cash Equivalents [Abstract]    
Cash on hand $ 995,000 $ 1,776,000
Federally insured money market mutual funds 2,218,000 6,706,000
Total cash and cash equivalents $ 3,213,000 $ 8,482,000
v3.24.3
SCHEDULE OF INVESTMENTS HELD TO MATURITY (Details) - Federal Bonds [Member]
Sep. 30, 2024
USD ($)
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items]  
Investments held to maturity, amortized cost $ 5,678,000
Investments held to maturity, unrealized gain 297,000
Investments held to maturity, unrealized loss
Investments held to maturity, fair value $ 5,975,000
v3.24.3
SCHEDULE OF FAIR VALUE OF ITS INVESTMENTS (Details)
Sep. 30, 2024
USD ($)
Platform Operator, Crypto Asset [Line Items]  
Investments, fair value disclosure $ 5,975,000
Fair Value, Inputs, Level 1 [Member]  
Platform Operator, Crypto Asset [Line Items]  
Investments, fair value disclosure
Fair Value, Inputs, Level 2 [Member]  
Platform Operator, Crypto Asset [Line Items]  
Investments, fair value disclosure 5,975,000
Fair Value, Inputs, Level 3 [Member]  
Platform Operator, Crypto Asset [Line Items]  
Investments, fair value disclosure
v3.24.3
INVESTMENTS (Details Narrative) - USD ($)
Sep. 30, 2024
Feb. 27, 2024
Oct. 11, 2023
Feb. 28, 2023
Federal National Mortgage Association [Member]        
Schedule of Investments [Line Items]        
Investment owned, balance, principal amount       $ 950,000
Investment owned, fair value       $ 950,000
Investment maturity date       Feb. 28, 2024
Investment interest rate       5.07%
HSBC USA INC CP [Member]        
Schedule of Investments [Line Items]        
Investment owned, balance, principal amount     $ 5,000,000  
Investment owned, fair value $ 4,992,000   $ 4,711,000  
Investment maturity date     Oct. 11, 2024  
Investment interest rate     6.26229%  
HSBC USA INC CP One [Member]        
Schedule of Investments [Line Items]        
Investment owned, balance, principal amount   $ 1,000,000    
Investment owned, fair value $ 983,000 $ 949,400    
Investment maturity date   Feb. 12, 2025    
Investment interest rate   5.48%    
v3.24.3
SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Finite-Lived Intangible Assets [Line Items]        
Beginning balance net     $ 3,866,000  
Intangible assets, net Amortization $ (240,000) $ (250,000) (814,000) $ (740,000)
Ending balance net 3,052,000   3,052,000  
Proprietary Technology [Member]        
Finite-Lived Intangible Assets [Line Items]        
Beginning balance cost     2,132,000  
Beginning balance, accumulated amortization     (1,408,000)  
Intangible assets, net Amortization (98,000) (149,000) (393,000) (443,000)
Ending balance cost 2,132,000   2,132,000  
Ending balance, accumulated Amortization (1,801,000)   (1,801,000)  
Patents and Licenses [Member]        
Finite-Lived Intangible Assets [Line Items]        
Beginning balance cost     12,378,000  
Beginning balance, accumulated amortization     (12,378,000)  
Ending balance cost 12,378,000   12,378,000  
Ending balance, accumulated Amortization (12,378,000)   (12,378,000)  
Trade Names and Technology [Member]        
Finite-Lived Intangible Assets [Line Items]        
Beginning balance cost     2,251,000  
Beginning balance, accumulated amortization     (1,327,000)  
Intangible assets, net Amortization (35,000) (35,000) (104,000) (104,000)
Ending balance cost 2,251,000   2,251,000  
Ending balance, accumulated Amortization (1,431,000)   (1,431,000)  
Customer Relationships [Member]        
Finite-Lived Intangible Assets [Line Items]        
Beginning balance cost     5,591,000  
Beginning balance, accumulated amortization     (3,373,000)  
Intangible assets, net Amortization (107,000) $ (66,000) (317,000) $ (193,000)
Ending balance cost 5,591,000   5,591,000  
Ending balance, accumulated Amortization $ (3,690,000)   $ (3,690,000)  
v3.24.3
SCHEDULE OF CAPITALIZED INTANGIBLE COSTS (Details) - USD ($)
 9 Months Ended 12 Months Ended
Sep. 30, 2024
Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]    
 Net capitalized intangible costs $ 3,052,000 $ 3,866,000
Proprietary Technology [Member]    
Finite-Lived Intangible Assets [Line Items]    
 Net capitalized intangible costs 333,000 726,000
Trade Names and Technology [Member]    
Finite-Lived Intangible Assets [Line Items]    
 Net capitalized intangible costs 819,000 922,000
Customer Relationships [Member]    
Finite-Lived Intangible Assets [Line Items]    
 Net capitalized intangible costs $ 1,900,000 $ 2,218,000
v3.24.3
SCHEDULE OF AMORTIZATION OF INTANGIBLE ASSETS (Details) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Finite-Lived Intangible Assets [Line Items]        
 Amortization of intangible assets $ 240,000 $ 250,000 $ 814,000 $ 740,000
Proprietary Technology [Member]        
Finite-Lived Intangible Assets [Line Items]        
 Amortization of intangible assets 98,000 149,000 393,000 443,000
Trade Names and Technology [Member]        
Finite-Lived Intangible Assets [Line Items]        
 Amortization of intangible assets 35,000 35,000 104,000 104,000
Customer Relationships [Member]        
Finite-Lived Intangible Assets [Line Items]        
 Amortization of intangible assets $ 107,000 $ 66,000 $ 317,000 $ 193,000
v3.24.3
SCHEDULE OF ESTIMATED AMORTIZATION EXPENSE FOR INTANGIBLE ASSETS (Details) - USD ($)
Sep. 30, 2024
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]    
2025 $ 735,000  
2026 650,000  
2027 291,000  
2028 288,000  
2029 288,000  
Thereafter 800,000  
 Intangible assets, estimated amortization expense $ 3,052,000 $ 3,866,000
v3.24.3
INTANGIBLE ASSETS (Details Narrative)
Sep. 30, 2024
Finite-Lived Intangible Assets [Line Items]  
Finite-lived intangible assets, remaining amortization period 4 years 10 months 24 days
Proprietary Technology [Member] | Minimum [Member]  
Finite-Lived Intangible Assets [Line Items]  
Finite-lived intangible asset, useful life 3 years
Proprietary Technology [Member] | Maximum [Member]  
Finite-Lived Intangible Assets [Line Items]  
Finite-lived intangible asset, useful life 5 years
Patents and Licenses [Member] | Minimum [Member]  
Finite-Lived Intangible Assets [Line Items]  
Finite-lived intangible asset, useful life 18 years 6 months
Patents and Licenses [Member] | Maximum [Member]  
Finite-Lived Intangible Assets [Line Items]  
Finite-lived intangible asset, useful life 20 years
Trade Names and Technology [Member] | Minimum [Member]  
Finite-Lived Intangible Assets [Line Items]  
Finite-lived intangible asset, useful life 3 years
Trade Names and Technology [Member] | Maximum [Member]  
Finite-Lived Intangible Assets [Line Items]  
Finite-lived intangible asset, useful life 15 years
v3.24.3
SCHEDULE OF NOTES PAYABLE (Details) - USD ($)
 3 Months Ended 9 Months Ended
Apr. 23, 2024
Sep. 30, 2024
Sep. 30, 2024
Dec. 31, 2023
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]        
Notes payable   $ 230,000 $ 230,000
Interest expense   $ 6,000,000 $ 10,000,000  
D And O Insurance Policy Renewed [Member]        
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]        
Debt instrument, face amount $ 788,000,000      
Debt instrument down payment 278,000,000      
Notes Payable $ 510,000,000      
Debt instrument, interest rate, stated percentage 7.50%      
Debt monthly principal and interest payment $ 58,000,000      
v3.24.3
SCHEDULE OF OPERATING LEASE DATA (Details) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Leases        
Operating lease cost $ 173,000 $ 97,000 $ 465,000 $ 303,000
Short-term lease cost 16,000 5,000 99,000 25,000
Total lease cost 189,000 102,000 564,000 328,000
Cash flows from operating leases 581,000 473,000    
Right of use assets obtained in exchange for new operating lease liabilities
Weighted-average remaining lease term-operating leases 1 year 9 months 18 days 3 years 1 year 9 months 18 days 3 years
Weighted-average discount rate-operating leases 9.40% 9.50% 9.40% 9.50%
v3.24.3
SCHEDULE OF FUTURE MINIMUM RENTAL PAYMENTS FOR OPERATING LEASES (Details) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Leases    
2025 $ 575  
2026 280  
2027 121  
2028  
2029  
Thereafter  
Total lease payments 976  
Less: imputed interest 87  
Present value of lease liabilities 889  
Less: Current lease liabilities 513 $ 463
Non-current lease liabilities $ 376 $ 755
v3.24.3
SCHEDULE OF LEASE OBLIGATIONS ASSUMED (Details)
 9 Months Ended
Sep. 30, 2024
USD ($)
ft²
Approximate Future Payments $ 976,000
Colchester, U.K. - Waterside House [Member]  
Area of land | ft² 13,223
Lease-End Month Dec
Lease-End Year 2025
Approximate Future Payments $ 324,000
Lutton, UK [Member]  
Area of land | ft² 600
Lease-End Month Jan
Lease-End Year 2025
Approximate Future Payments $ 10,000
Billerica, MA [Member]  
Area of land | ft² 2,000
Lease-End Month Dec
Lease-End Year 2026
Approximate Future Payments $ 240,000
Mount Olive, NJ [Member]  
Area of land | ft² 7,979
Lease-End Month May
Lease-End Year 2027
Approximate Future Payments $ 370,000
Trivex Singapore [Member]  
Area of land | ft² 950
Lease-End Month Aug
Lease-End Year 2025
Approximate Future Payments $ 32,000
v3.24.3
LEASES (Details Narrative) - USD ($)
 3 Months Ended 9 Months Ended
Feb. 12, 2024
Sep. 30, 2024
Sep. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Sep. 30, 2023
Operating lease liabilities   $ 504,000 $ 504,000   $ 742,000  
Right of use of assets   1,900,000 1,900,000      
Operating lease liability   889,000 889,000      
Current operating lease liabilities   513,000 513,000   463,000  
Non-current operating lease liabilities   $ 376,000 $ 376,000   $ 755,000  
Weighted-average remaining term   1 year 9 months 18 days 1 year 9 months 18 days     3 years
Lease maturity description     January 2025 and May 2027      
Weighted-average discount rate   9.40% 9.40%     9.50%
Lease expiration date Jan. 31, 2026          
Weighted-average remaining term   12 months 12 months      
Payments for Rent   $ 22,926        
Previously Reported [Member]            
Operating lease liabilities       $ 484,000    
Operating lease liability       $ 473,000    
v3.24.3
STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
Mar. 22, 2023
Class of Stock [Line Items]            
Preferred stock par value $ 0.00001   $ 0.00001   $ 0.00001  
Preferred stock, shares authorized 0   0   0  
Preferred stock, shares issued 0   0   0  
Preferred stock, shares outstanding 0   0   0  
Stock compensation costs $ 199,000 $ 343,000 $ 881,000 $ 1,600,000    
Common Stock Warrants [Member]            
Class of Stock [Line Items]            
Warrants expired     1,534      
Number of warrants outstanding and exercisable 454,546   454,546      
Weighted average exercise price ending exercisable $ 65.00   $ 65.00      
Weighted average remaining contractual life     1 year 4 months 24 days      
Restricted Stock Units (RSUs) [Member]            
Class of Stock [Line Items]            
Shares attributable to withholding tax     8,000      
Conversion of restricted stock unit     16,475      
Restricted Stock Units (RSUs) [Member] | Common Stock [Member]            
Class of Stock [Line Items]            
Restricted stock options, granted     $ 160,000      
Series A Preferred Stock [Member]            
Class of Stock [Line Items]            
Preferred stock par value           $ 0.00001
Preferred stock, shares authorized 0   0      
Preferred stock, shares issued 0   0      
Preferred stock, shares outstanding 0   0      
v3.24.3
SCHEDULE OF STOCK BASED COMPENSATION EXPENSE (Details) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
 Stock-based compensation expense $ 199,000 $ 343,000 $ 881,000 $ 1,600,000
Time Vested Option Inducement Awards [Member]        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
 Stock-based compensation expense 37,000 113,000 144,000
Time Based Restricted Stock Awards [Member]        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
 Stock-based compensation expense $ 199,000 $ 306,000 $ 768,000 $ 1,456,000
v3.24.3
STOCK-BASED COMPENSATION (Details Narrative)
Aug. 23, 2023
shares
2023 Plan [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Shares reserved 166,415
v3.24.3
SCHEDULE OF MATCHING CONTRIBUTIONS (Details) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Group Personal Pension Plan, UK [Member]        
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]        
Company matching contributions $ 33,000 $ 42,000 $ 98,000 $ 110,000
v3.24.3
CONCENTRATIONS (Details Narrative) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
Concentration Risk [Line Items]          
Revenue from Contract with Customer, Excluding Assessed Tax $ 7,066,000 $ 7,179,000 $ 24,366,000 $ 19,410,000  
Accounts payable 3,211,000   3,211,000   $ 3,183,000
Inventory Purchase [Member] | Supplier Concentration Risk [Member] | Vendor One [Member]          
Concentration Risk [Line Items]          
Revenue from Contract with Customer, Excluding Assessed Tax $ 768,000 $ 898,000 $ 2,560,000 $ 1,458,000  
Concentration risk, percentage 20.00% 26.00% 23.00% 16.00%  
Inventory Purchase [Member] | Supplier Concentration Risk [Member] | Vendor Two [Member]          
Concentration Risk [Line Items]          
Revenue from Contract with Customer, Excluding Assessed Tax $ 522,000 $ 468,000 $ 1,263,000 $ 1,055,000  
Purchase [Member] | Supplier Concentration Risk [Member] | Vendor Two [Member]          
Concentration Risk [Line Items]          
Concentration risk, percentage 14.00% 13.00% 11.00% 11.00%  
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Vendor One [Member]          
Concentration Risk [Line Items]          
Concentration risk, percentage     18.00% 12.00%  
Accounts payable $ 589,000 $ 378,000 $ 589,000 $ 378,000  
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Vendor Two [Member]          
Concentration Risk [Line Items]          
Concentration risk, percentage     11.00%    
Accounts payable 351,000   $ 351,000    
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Vendor Three [Member]          
Concentration Risk [Line Items]          
Concentration risk, percentage     10.00%    
Accounts payable 330,000   $ 330,000    
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Vendor Four [Member]          
Concentration Risk [Line Items]          
Concentration risk, percentage     10.00%    
Accounts payable 327,000   $ 327,000    
One Customers [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]          
Concentration Risk [Line Items]          
Revenue from Contract with Customer, Excluding Assessed Tax $ 1,310,000 $ 782,000      
Concentration risk, percentage 19.00% 11.00%      
One Customers [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member]          
Concentration Risk [Line Items]          
Concentration risk, percentage     15.00% 12.00%  
Accounts receivable $ 1,235,000 $ 893,000 $ 1,235,000 $ 893,000  
Two Customers [Member] | Revenue Benchmark [Member] | Customer Concentration Risk [Member]          
Concentration Risk [Line Items]          
Revenue from Contract with Customer, Excluding Assessed Tax $ 892,000        
Concentration risk, percentage 13.00%        
Two Customers [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member]          
Concentration Risk [Line Items]          
Concentration risk, percentage     14.00%    
Accounts receivable $ 1,125,000   $ 1,125,000    
Three Customers [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member]          
Concentration Risk [Line Items]          
Concentration risk, percentage     12.00%    
Accounts receivable 1,011,000   $ 1,011,000    
Four Customers [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member]          
Concentration Risk [Line Items]          
Concentration risk, percentage     12.00%    
Accounts receivable $ 981,000   $ 981,000    
v3.24.3
REBATES (Details Narrative) - USD ($)
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
UK Subsidiary [Member]    
Tax rebates $ 378,000 $ 322,000
Vislink Technologies (NASDAQ:VISL)
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