Exhibit 99.2
BORQS TECHNOLOGIES, INC.
UNAUDITED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of US dollar (“US$”), unless otherwise stated)
| December 31, 2021 | June 30, 2022 | |||||||
| US$ | US$ | |||||||
| ASSESTS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | ||||||||
| Accounts receivable | ||||||||
| Inventories - net | ||||||||
| Prepaid expenses and other current assets, net | ||||||||
| Total current assets | ||||||||
| Non-current assets: | ||||||||
| Property and equipment, net | ||||||||
| Intangible assets, net | ||||||||
| Right of Use Asset | ||||||||
| Goodwill | ||||||||
| Deferred tax assets | ||||||||
| Non-current assets | ||||||||
| Total non-current assets | ||||||||
| Total assets | ||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | ||||||||
| Accrued expenses and other payables | ||||||||
| Advances from customers | ||||||||
| Lease Liabilities- current | ||||||||
| Amount due to related parties-current | ||||||||
| Income tax payable | ||||||||
| Long-term institution borrowings - current portion | - | |||||||
| Short-term borrowings | ||||||||
| Other liabilities | - | |||||||
| Contingent consideration | ||||||||
| Convertible notes | ||||||||
| Total current liabilities | ||||||||
| Non-current liabilities: | ||||||||
| Deferred tax liability | ||||||||
| Long-term payable | ||||||||
| Non-current liabilities | ||||||||
| Total non-current liabilities | ||||||||
| Total liabilities | ||||||||
| Commitments and contingencies | ||||||||
| Shareholders’ equity | ||||||||
| Ordinary shares | - | |||||||
| Additional paid-in capital | ||||||||
| Subscription receivables | ( | ) | ( | ) | ||||
| Statutory reserve | ||||||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| Total Borqs Technologies, Inc. shareholders’ equity | ( | ) | ( | ) | ||||
| Non-controlling interest | ||||||||
| Total shareholders’ equity | ( | ) | ( | ) | ||||
| Total liabilities and shareholders’ equity | ||||||||
BORQS TECHNOLOGIES, INC.
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
(Amounts in thousands of US dollar (“US$”), unless otherwise stated)
| For the six months ended June 30, |
||||||||
| 2021 | 2022 | |||||||
| US$ | US$ | |||||||
| Net revenues: | ||||||||
| IoT | ||||||||
| Software | ||||||||
| Hardware | ||||||||
| Solar & ESS | ||||||||
| Total net revenues | ||||||||
| Cost of revenues | ||||||||
| IoT | ( |
) | ( |
) | ||||
| Software | ( |
) | ( |
) | ||||
| Hardware | ( |
) | ( |
) | ||||
| Solar & ESS | ( |
) | ||||||
| Total cost of revenues | ( |
) | ( |
) | ||||
| Total gross (loss) profit | ||||||||
| Operating expenses: | ||||||||
| Sales and marketing expenses | ( |
) | ( |
) | ||||
| General and administrative expenses | ( |
) | ( |
) | ||||
| Research and development expenses | ( |
) | ( |
) | ||||
| Total operating expenses | ( |
) | ( |
) | ||||
| Operating income (loss) | ( |
) | ( |
) | ||||
| Interest income | ||||||||
| Interest expense | ( |
) | ( |
) | ||||
| Other income | ||||||||
| Other expense | ( |
) | ( |
) | ||||
| Foreign exchange income (loss) | ( |
) | ||||||
| Income (loss) from continuing operations, before income taxes | ( |
) | ( |
) | ||||
| Less: Net income (loss) attributable to non-controlling interest | - | |||||||
| Net income (loss) attributable to Borqs Technologies, Inc. | ( |
) | ( |
) | ||||
| Net income (loss) attributable to ordinary shareholders | ( |
) | ( |
) | ||||
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Summary discussions on the results of the first half of 2022.
The Company’s revenue for the six months ended June 30, 2022 were $30.1 million, an increase of 141.2% as compared to $12.5 million for the same period in 2021. The increase in revenue reflects (i) the addition of revenue in the solar & energy storage systems (ESS) from Holu Hou Energy, LLC, which the Company acquired 51% ownership of in October, 2021; and (ii) the recovery of our IoT businesses that were affected by the COVID-19 global pandemic in 2021. The significant decrease in general and administrative expenses from $24.7 million in the first half of 2021 to $5.4 million for the same period of 2022 was primarily due to the stock-based compensation that the Company incurred in lieu of cash payments in 2021.
Geographically, our customers were mainly from the U.S., Europe and India. For the interim period ended June 30, 2022, our revenue from customers with their headquarters located in the U.S., Europe and India, and rest of the world accounted for 71.1%, 14.3%, 13.8% and 0.9% respectively.
The table below shows the reconciliation of EBITDA and Adjusted EBITDA from the US-GAAP net losses for the interim period ended June 30, 2022 and June 30, 2021 respectively.
| For the six months ended June 30, |
||||||||
| 2021 | 2022 | |||||||
| Net income (loss) from continuing operations | (29,567 | ) | (5,266 | ) | ||||
| Interest | (2,691 | ) | (151 | ) | ||||
| Depreciation | (66 | ) | (248 | ) | ||||
| Amortization | (639 | ) | (401 | ) | ||||
| EBITDA | (26,171 | ) | (4,466 | ) | ||||
| Litigation expenses | (76 | ) | (999 | ) | ||||
| Gains or losses on foreign exchange | (222 | ) | 8 | |||||
| Non-operating income or expense | (188 | ) | (930 | ) | ||||
| Share-based compensation or expense | (22,883 | ) | (970 | ) | ||||
| Adjusted EBITDA | (2,802 | ) | (1,575 | ) | ||||
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