Liquidity, Going Concern and Management Plans

6 Months Ended

Jun. 30, 2024

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Liquidity, Going Concern and Management Plans

Liquidity, Going Concern and Management Plans

The accompanying unaudited condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business.

The Company had cash and cash equivalents and restricted cash of $161.3 million (excluding discontinued operations), a working capital deficit (excluding discontinued operations) of $165.3 million and an accumulated deficit of $1,926.8 million as of June 30, 2024. The Company incurred a net loss from continuing operations of $25.8 million and $82.2 million for the three and six months ended June 30, 2024, respectively. Since inception, the Company’s operations have been financed primarily through the sale of equity and debt securities. The Company has incurred losses from operations and negative cash flows from operating activities since inception and expects to incur substantial losses.

As discussed further in Note 12, during the six months ended June 30, 2024, the Company received net proceeds of approximately $36.9 million (after deducting $0.8 million in commissions and expenses) from sale of 28,791,969 shares of its common stock, at a weighted average gross sales price of $1.31 per share pursuant to an at-the-market sales agreement with its sales agents.

As discussed further in Note 10, during the six months ended June 30, 2024, the Company completed the repurchase of $27.1 million principal amount of the 2026 Notes for $15.0 million, including accrued interest. An additional $19.9 million principal amount was repurchased for $12.1 million including accrued interest that settled in July 2024.

The Company believes that its current cash and cash equivalents provide it with the necessary liquidity to continue as a going concern for at least one year from the date of issuance of these financial statements. Our future capital requirements and the adequacy of our available funds will depend on many factors, including our ability to successfully attract and retain subscribers and compete in a rapidly changing market with many competitors, actions by certain competitors that we assert are anticompetitive (see Note 13 - Commitments and Contingencies - Legal Proceedings), and our ability to repay or restructure our outstanding debt upon or prior to their maturities. In addition to the foregoing, the Company cannot predict the potential impact on its development timelines, revenue levels and its liquidity due to macroeconomic factors, including inflationary cost pressures and potential recession indicators, which depend on factors beyond the Company's knowledge or control. Based upon the Company’s current assessment, it does not expect the impact of macroeconomic factors to materially impact the Company’s operations. However, the Company is continuing to assess the impact that the macroeconomic factors may have on its operations, financial condition and liquidity.