(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Large accelerated filer ☐ | Accelerated filer ☐ | ||||
Smaller reporting company | |||||
Emerging growth company |
PART I - FINANCIAL INFORMATION | ||||||||
Item 1. Financial Statements | ||||||||
Condensed Consolidated Balance Sheets at March 31, 2024 (unaudited) and December 31, 2023 | ||||||||
Unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023 | ||||||||
Unaudited Condensed Consolidated Statements of Changes in Stockholders’ Equity for the three months ended March 31, 2024 and 2023 | ||||||||
Unaudited Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 | ||||||||
Notes to unaudited Condensed Consolidated Financial Statements | ||||||||
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||||||||
Item 3. Quantitative and Qualitative Disclosures About Market Risk | ||||||||
Item 4. Controls and Procedures | ||||||||
PART II - OTHER INFORMATION | ||||||||
Item 1. Legal Proceedings | ||||||||
Item 1A. Risk Factors | ||||||||
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | ||||||||
Item 3. Defaults Upon Senior Securities | ||||||||
Item 4. Mine Safety Disclosures | ||||||||
Item 5. Other Information | ||||||||
Item 6. Exhibits | ||||||||
Signatures |
March 31, 2024 | December 31, 2023 | ||||||||||
(Unaudited) | |||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net | |||||||||||
Inventory, net | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Operating lease - right of use asset, net | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued expenses and other current liabilities | |||||||||||
Current portion of deferred revenue | |||||||||||
Operating lease liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term liabilities: | |||||||||||
Deferred revenue, net of current portion | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (see Note 9) | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred stock Series F, convertible; $ | |||||||||||
Common stock, $ | |||||||||||
Treasury stock, | ( | ( | |||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Total stockholders' equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended | |||||||||||
March 31, | |||||||||||
2024 | 2023 | ||||||||||
Revenue | $ | $ | |||||||||
Cost of revenue (exclusive of depreciation and amortization) | |||||||||||
Gross profit | ( | ||||||||||
Operating expenses: | |||||||||||
Research and development | |||||||||||
Sales and marketing | |||||||||||
General and administrative | |||||||||||
Depreciation and amortization | |||||||||||
Total operating expenses | |||||||||||
Loss from operations | ( | ( | |||||||||
Interest and other expense, net | |||||||||||
Other income | ( | ( | |||||||||
Interest and other income, net | ( | ( | |||||||||
Loss before income taxes | ( | ( | |||||||||
Income tax expense | |||||||||||
Net loss | ( | ( | |||||||||
Preferred stock dividends | |||||||||||
Warrant modification | |||||||||||
Net loss attributable to common stockholders | $ | ( | $ | ( | |||||||
Net loss attributable to common stockholders per share: | |||||||||||
Basic and diluted net loss per share | $ | ( | $ | ( | |||||||
Weighted-average number of shares of common stock: | |||||||||||
Basic and diluted | |||||||||||
Series F Preferred Stock | Common Stock | Treasury Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Additional Paid-In Capital | Accumulated Deficit | Total | |||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2023 | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Conversions of Series F Preferred Stock including accrued dividends of $ | ( | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Series F Preferred Stock dividends | — | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2024 | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||
Series F Preferred Stock | Common Stock | Treasury Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Shares | Amount | Additional Paid-In Capital | Accumulated Deficit | Total | |||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Proceeds from private placement, net of fees and amounts held in escrow | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | $ | $ | ( | $ | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Bad debt (recovery) expense | ( | ||||||||||
Non-cash lease expense from right-of-use asset | |||||||||||
Stock-based compensation | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | |||||||||||
Inventory | |||||||||||
Prepaid expenses and other current assets | ( | ( | |||||||||
Other assets | |||||||||||
Accounts payable | |||||||||||
Accrued expenses and other current liabilities | |||||||||||
Deferred revenue | ( | ( | |||||||||
Lease liabilities | ( | ( | |||||||||
Net cash used in operating activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from private placement, net of issuance costs and amounts in escrow | |||||||||||
Net cash provided by financing activities | |||||||||||
Decrease (increase) in cash | ( | ||||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
Supplemental disclosures of cash flow information: | |||||||||||
Reconciliation of cash and cash equivalents | |||||||||||
Cash | $ | $ | |||||||||
Current certificates of deposit | |||||||||||
Total cash and cash equivalents | $ | $ | |||||||||
Cash paid during the period for interest | $ | $ | |||||||||
Cash paid for income taxes | $ | $ | |||||||||
Non-cash investing and financing activities: | |||||||||||
Preferred stock dividends | $ | $ | |||||||||
Warrant modification | $ | $ | |||||||||
March 31, | December 31, | ||||||||||
2024 | 2023 | ||||||||||
Compensation costs | $ | $ | |||||||||
Customer deposits | |||||||||||
Professional fees | |||||||||||
Taxes and regulatory fees | |||||||||||
Accrued rent | |||||||||||
Accrued dividends on Series F Preferred Stock | |||||||||||
Other accrued expenses and liabilities | |||||||||||
Accrued expenses and other liabilities | $ | $ | |||||||||
Issued Shares as of December 31, 2022 | ||||||||
Issuances from Preferred Stock conversions | ||||||||
Issuances related to warrant exercises | ||||||||
Issuances related to stock compensation | ||||||||
Common shares exchanged for prepaid warrants | ( | |||||||
Issued Shares as of December 31, 2023 | ||||||||
Issuances from Preferred Stock conversions | ||||||||
Issued Shares as of March 31, 2024 | ||||||||
Less Treasury Shares: | ( | |||||||
Outstanding Shares as of March 31, 2024 |
Issue Date | Warrants Outstanding | Exercise Price | Expiration Date | |||||||||||||||||
June 28, 2021 | $ | December 31, 2024 | ||||||||||||||||||
March 31, 2023 | $ | September 30, 2028 | ||||||||||||||||||
Outstanding and Exercisable | ||||||||||||||
Number of Warrants | Weighted Average Exercise Price | |||||||||||||
Warrants outstanding and exercisable, December 31, 2022 | $ | |||||||||||||
Granted | ||||||||||||||
Exercised | ( | |||||||||||||
Expired | ( | |||||||||||||
Forfeited | ( | |||||||||||||
Warrants outstanding and exercisable, December 31, 2023 | ||||||||||||||
Expired | ( | |||||||||||||
Warrants outstanding and exercisable, March 31, 2024 | $ |
Series F Preferred Stock Shares | Preferred Stock Dividends | Weighted Average Conversion Price | Common Shares Issued from Conversions | |||||||||||
March 31, 2023 Issuance | $ | — | ||||||||||||
2023 Accrued Dividends | — | $ | — | |||||||||||
2023 Conversions | ( | $ | ( | $ | ||||||||||
December 31, 2023 Balance | $ | |||||||||||||
2024 Accrued Dividends | — | $ | — | |||||||||||
2024 Conversions | ( | $ | ( | |||||||||||
March 31, 2024 Balance | $ | $ |
Outstanding | Exercisable | ||||||||||||||||||||||
Number of Options | Weighted Average Exercise Price | Number of Options | Weighted Average Exercise Price | ||||||||||||||||||||
Options outstanding and exercisable, December 31, 2022 | $ | $ | |||||||||||||||||||||
Vested | |||||||||||||||||||||||
Expired | ( | ( | |||||||||||||||||||||
Options outstanding and exercisable, December 31, 2023 | |||||||||||||||||||||||
Options outstanding and exercisable, March 31, 2024 | $ | $ | |||||||||||||||||||||
Restricted Stock Awards | Restricted Stock Units | |||||||||||||||||||||||||
Shares | Weighted Average Grant Price | Shares | Weighted Average Grant Price | |||||||||||||||||||||||
Unvested shares, December 31, 2022 | $ | $ | ||||||||||||||||||||||||
Granted | ||||||||||||||||||||||||||
Vested | ( | ( | ||||||||||||||||||||||||
Unvested Shares, December 31, 2023 | ||||||||||||||||||||||||||
Unvested Shares, March 31, 2024 | $ | $ |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Numerator: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Less: preferred stock dividends | ( | ||||||||||
Less: warrant modification | ( | ||||||||||
Net loss attributable to common stockholders | $ | ( | $ | ( | |||||||
Denominator: | |||||||||||
Weighted-average number of shares of common stock for basic and diluted net loss per share | |||||||||||
Basic and diluted net loss per share | $ | ( | $ | ( | |||||||
As of March 31, | |||||||||||
2024 | 2023 | ||||||||||
Unvested restricted stock awards | |||||||||||
Outstanding stock options | |||||||||||
Common stock issuable upon conversion of Series F Preferred Stock (1) | |||||||||||
Common stock issuable upon conversion of Series F Preferred Warrants (2) | |||||||||||
Common stock issuable upon conversion of Common Stock warrants |
Three Months Ended March 31, 2024 | |||||||||||||||||||||||
Managed Services | Collaboration Products | Corporate | Total | ||||||||||||||||||||
Revenue | $ | $ | $ | $ | |||||||||||||||||||
Cost of revenues | |||||||||||||||||||||||
Gross profit | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Gross profit % | % | ( | % | % | |||||||||||||||||||
Allocated operating expenses | $ | $ | $ | $ | |||||||||||||||||||
Unallocated operating expenses | |||||||||||||||||||||||
Total operating expenses | $ | $ | $ | $ | |||||||||||||||||||
Income (loss) from operations | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Interest and other income, net | ( | ( | ( | ||||||||||||||||||||
Net income (loss) before tax | ( | ( | ( | ||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
Net income (loss) | $ | $ | ( | $ | ( | $ | ( |
Three Months Ended March 31, 2023 | |||||||||||||||||||||||
Managed Services | Collaboration Products | Corporate | Total | ||||||||||||||||||||
Revenue | $ | $ | $ | $ | |||||||||||||||||||
Cost of revenues | |||||||||||||||||||||||
Gross profit | $ | $ | $ | $ | |||||||||||||||||||
Gross profit % | % | % | % | ||||||||||||||||||||
Allocated operating expenses | $ | $ | $ | $ | |||||||||||||||||||
Unallocated operating expenses | |||||||||||||||||||||||
Total operating expenses | $ | $ | $ | $ | |||||||||||||||||||
Income (loss) from operations | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Interest and other expense (income), net | ( | ( | |||||||||||||||||||||
Income (loss) before income taxes | ( | ( | ( | ||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
Net income (loss) | $ | $ | ( | $ | ( | $ | ( |
Three Months Ended March 31, | ||||||||||||||
2024 | 2023 | |||||||||||||
Domestic | $ | $ | ||||||||||||
Foreign | ||||||||||||||
$ | $ | |||||||||||||
Three Months Ended March 31, | |||||||||||||||||||||||
2024 | % of Revenue | 2023 | % of Revenue | ||||||||||||||||||||
Revenue: Managed Services | |||||||||||||||||||||||
Video collaboration services | $ | % | $ | % | |||||||||||||||||||
Network services | % | % | |||||||||||||||||||||
Professional and other services | % | % | |||||||||||||||||||||
Total Managed Services revenue | $ | % | $ | % | |||||||||||||||||||
Revenue: Collaboration Products | |||||||||||||||||||||||
Visual collaboration product offerings | $ | % | $ | % | |||||||||||||||||||
Total revenue | $ | % | $ | % |
Three Months Ended March 31, | |||||||||||||||||
2024 | 2023 | ||||||||||||||||
Segment | % of Revenue | % of Revenue | |||||||||||||||
Customer A | Managed Services | % | % | ||||||||||||||
As of March 31, 2024 | |||||||||||||||||
2024 | 2023 | ||||||||||||||||
Segment | % of Accounts Receivable | % of Accounts Receivable | |||||||||||||||
Customer A | Managed Services | % | % | ||||||||||||||
Customer B | Managed Services | % | % | ||||||||||||||
Customer C | Collaboration Products | % | % | ||||||||||||||
Customer D | Collaboration Products | % | % | ||||||||||||||
Customer E | Collaboration Products | % | % | ||||||||||||||
Three Months Ended March 31, 2024 | |||||||||||||||||||||||
Managed Services | Collaboration Products | Corporate | Total | ||||||||||||||||||||
Revenue | $ | 522 | $ | 104 | $ | — | $ | 626 | |||||||||||||||
Cost of revenues | 369 | 260 | — | 629 | |||||||||||||||||||
Gross profit | $ | 153 | $ | (156) | $ | — | $ | (3) | |||||||||||||||
Gross profit % | 29 | % | (150) | % | — | % | |||||||||||||||||
Allocated operating expenses | $ | — | $ | 121 | $ | — | $ | 121 | |||||||||||||||
Unallocated operating expenses | — | — | 1,060 | 1,060 | |||||||||||||||||||
Total operating expenses | $ | — | $ | 121 | $ | 1,060 | $ | 1,181 | |||||||||||||||
Income (loss) from operations | $ | 153 | $ | (277) | $ | (1,060) | $ | (1,184) | |||||||||||||||
Interest and other income, net | (32) | (16) | — | (48) | |||||||||||||||||||
Net income (loss) before tax | 185 | (261) | (1,060) | (1,136) | |||||||||||||||||||
Income tax expense | — | — | — | — | |||||||||||||||||||
Net income (loss) | $ | 185 | $ | (261) | $ | (1,060) | $ | (1,136) |
Three Months Ended March 31, 2023 | |||||||||||||||||||||||
Managed Services | Collaboration Products | Corporate | Total | ||||||||||||||||||||
Revenue | $ | 690 | $ | 348 | $ | — | $ | 1,038 | |||||||||||||||
Cost of revenues | 460 | 302 | — | 762 | |||||||||||||||||||
Gross profit | $ | 230 | $ | 46 | $ | — | $ | 276 | |||||||||||||||
Gross profit % | 33 | % | 13 | % | 27 | % | |||||||||||||||||
Allocated operating expenses | $ | — | $ | 286 | $ | — | $ | 286 | |||||||||||||||
Unallocated operating expenses | — | — | 1,193 | 1,193 | |||||||||||||||||||
Total operating expenses | $ | — | $ | 286 | $ | 1,193 | $ | 1,479 | |||||||||||||||
Income (loss) from operations | $ | 230 | $ | (240) | $ | (1,193) | $ | (1,203) | |||||||||||||||
Interest and other expense (income), net | 3 | (25) | — | (22) | |||||||||||||||||||
Income (loss) before income taxes | 227 | (215) | (1,193) | (1,181) | |||||||||||||||||||
Income tax expense | 7 | 31 | — | 38 | |||||||||||||||||||
Net income (loss) | $ | 220 | $ | (246) | $ | (1,193) | $ | (1,219) |
Three Months Ended March 31, | |||||||||||||||||||||||
2024 | % of Revenue | 2023 | % of Revenue | ||||||||||||||||||||
Revenue: Managed Services | |||||||||||||||||||||||
Video collaboration services | $ | 14 | 2 | % | $ | 64 | 6 | % | |||||||||||||||
Network services | 503 | 80 | % | 618 | 60 | % | |||||||||||||||||
Professional and other services | 5 | 1 | % | 8 | 1 | % | |||||||||||||||||
Total Managed Services revenue | $ | 522 | 83 | % | $ | 690 | 66 | % | |||||||||||||||
Revenue: Collaboration Products | |||||||||||||||||||||||
Visual collaboration product offerings | $ | 104 | 17 | % | $ | 348 | 34 | % | |||||||||||||||
Total revenue | $ | 626 | 100 | % | $ | 1,038 | 100 | % |
Three Months Ended March 31, | |||||||||||
2024 | 2023 | ||||||||||
Cost of Revenue | |||||||||||
Managed Services | $ | 369 | $ | 460 | |||||||
Collaboration Products | 260 | 302 | |||||||||
Total cost of revenue | $ | 629 | $ | 762 |
Three Months Ended March 31, | |||||||||||||||||||||||
2024 | 2023 | $ Change | % Change | ||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development | $ | 50 | $ | 6 | $ | 44 | 733 | % | |||||||||||||||
Sales and marketing | 54 | 218 | (164) | (75) | % | ||||||||||||||||||
General and administrative | 1,077 | 1,169 | (92) | (8) | % | ||||||||||||||||||
Depreciation and amortization | — | 86 | (86) | (100) | % | ||||||||||||||||||
Total operating expenses | $ | 1,181 | $ | 1,479 | $ | (298) | (20) | % |
Exhibit Number | Description | |||||||
3.1 | ||||||||
3.2 | ||||||||
4.1 | ||||||||
4.2 | ||||||||
4.3 | ||||||||
4.4 | ||||||||
4.5 | ||||||||
4.6 | ||||||||
4.7 | ||||||||
4.8 | ||||||||
4.9 | ||||||||
4.10 | ||||||||
4.11 | ||||||||
31.1* | ||||||||
31.2* | ||||||||
32.1** | ||||||||
101.INS | XBRL Instance Document | |||||||
101.SCH | XBRL Taxonomy Extension Schema | |||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase | |||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase | |||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase |
OBLONG, INC. | ||||||||
May 8, 2024 | By: | /s/ Peter Holst | ||||||
Peter Holst | ||||||||
Chief Executive Officer | ||||||||
(Principal Executive Officer) |
May 8, 2024 | By: | /s/ David Clark | ||||||
David Clark | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial and Accounting Officer) |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, convertible, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, convertible, stated value | $ 1,102,150 | $ 1,102,150 |
Preferred stock, convertible, shares authorized (in shares) | 42,000 | 42,000 |
Preferred stock, shares issued (in shares) | 1,008 | 1,930 |
Preferred stock, shares outstanding (in shares) | 1,008 | 1,930 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 20,294,228 | 16,692,124 |
Common stock, shares outstanding (in shares) | 20,285,675 | 16,683,572 |
Treasury stock, shares (in shares) | 8,000 | 8,000 |
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) - Series F Preferred Stock - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
---|---|---|---|
Preferred stock dividends | $ 94 | $ 132 | $ 0 |
Preferred Stock | |||
Preferred stock dividends | $ 82 |
Business Description and Significant Accounting Policies |
3 Months Ended |
---|---|
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Business Description and Significant Accounting Policies | Note 1 - Business Description and Significant Accounting Policies Business Description Oblong, Inc. (“Oblong” or “we” or “us” or the “Company”) was formed as a Delaware corporation in May 2000 and is a provider of patented multi-stream collaboration technologies and managed services for video collaboration and network applications. Basis of Presentation The Company's fiscal year ends on December 31 of each calendar year. The accompanying interim Condensed Consolidated Financial Statements are unaudited and have been prepared on substantially the same basis as our annual Consolidated Financial Statements for the fiscal year ended December 31, 2023. In the opinion of the Company's management, these interim Condensed Consolidated Financial Statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of our financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. The December 31, 2023 year-end Condensed Consolidated Balance Sheet data in this document was derived from audited consolidated financial statements. The Condensed Consolidated Financial Statements and notes included in this quarterly report on Form 10-Q do not include all disclosures required by U.S. generally accepted accounting principles and should be read in conjunction with the Company's audited consolidated financial statements as of and for the year ended December 31, 2023 and notes thereto included in the Company's fiscal 2023 Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on March 19, 2024 (the “2023 Annual Report”). The results of operations and cash flows for the interim periods included in these Condensed Consolidated Financial Statements are not necessarily indicative of the results to be expected for any future period or the entire fiscal year. Principles of Consolidation The Condensed Consolidated Financial Statements include the accounts of Oblong and our 100%-owned subsidiaries (i) GP Communications, LLC (“GP Communications”), whose business function is to provide interstate telecommunications services for regulatory purposes, and (ii) Oblong Industries, Inc. All inter-company balances and transactions have been eliminated in consolidation. The U.S. Dollar is the functional currency for all subsidiaries. Cash and Cash Equivalents As of March 31, 2024, our total cash balance of $5,360,000 is available. Of this balance $500,000 was held in short-term certificates of deposit with MidFirst Bank. As of December 31, 2023, our total cash balance of $5,990,000 was available with $500,000 held in short-term certificates of deposit with MidFirst Bank. The Company considers highly liquid investments with original maturities of three months or less to be cash equivalents. Segments The Company currently operates in two segments: (1) “Collaboration Products” which represents the business surrounding our Mezzanine™ product offerings, and (2) “Managed Services” which represents the business surrounding managed services for video collaboration and network solutions. See Note 8 - Segment Reporting for further discussion. Use of Estimates Preparation of the Condensed Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from the estimates made. We continually evaluate estimates used in the preparation of our consolidated financial statements for reasonableness. Appropriate adjustments, if any, to the estimates used are made prospectively based upon such periodic evaluation. The significant areas of estimation include determining the allowances for inventory obsolescence and estimated credit losses and the inputs used in the fair value of equity-based awards. Intangible Assets As of March 31, 2024 and December 31, 2023, we had no intangible assets. During the three months ended March 31, 2023, we recorded $86,000 in amortization expense related to intangible assets. Operating Lease Right-of-use-Assets and Liabilities In February 2024, we exited our warehouse lease in City of Industry, California, and are no longer a party to any operating leases. Right-of-use assets, net totaled $17,000 as of December 31, 2023, consisting of the warehouse lease discussed above. As of March 31, 2024, the Company had no right-of-use assets remaining. The remaining operating lease liability as of December 31, 2023 was $17,000, consisting of the warehouse lease discussed above. As of March 31, 2024, the Company had no lease liability remaining. During the three months ended March 31, 2024, we recorded $17,000 in lease expenses. During the three months ended March 31, 2023, we recorded $46,000 in lease expenses, net of common charges, and sublease proceeds of $16,000. Significant Accounting Policies The significant accounting policies used in preparation of these Condensed Consolidated Financial Statements are disclosed in our 2023 Annual Report, and there have been no changes to the Company’s significant accounting policies during the three months ended March 31, 2024. Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic280): Improvements to Reportable Segment Disclosures. The new guidance is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments are effective retrospectively for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company is in the process of evaluating the impact that the adoption of this ASU will have on the financial statements and related disclosures, which is not expected to be material. In December 2023, the FASB issued ASU No. 2023-09, Improvements to Tax Disclosures (Topic 740), to enhance the transparency and decision usefulness of income tax disclosures through changes to the rate reconciliation and income taxes paid information. This guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is evaluating the impact of adopting this new accounting guidance on its Consolidated Financial Statements.
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Liquidity |
3 Months Ended |
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Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Liquidity | Note 2 - Liquidity As of March 31, 2024, we had $5,360,000 in cash and working capital of $4,436,000. For the three months ended March 31, 2024, we incurred a net loss of $1,136,000 and used $630,000 of net cash in operating activities. We believe that our existing cash will be sufficient to fund our operations and meet our working capital requirements for at least the next 12 months from the filing date of this Report with the SEC.
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Accrued Expenses and Other Current Liabilities |
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Accrued Expenses and Other Current Liabilities | Note 3 - Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following (in thousands):
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Capital Stock |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock | Note 4 - Capital Stock Common Stock The Company’s common stock, par value $0.0001 per share (the “Common Stock”), is listed on the Nasdaq Capital Market (“Nasdaq”), under the ticker symbol “OBLG”. As of March 31, 2024, we had 150,000,000 shares of our Common Stock authorized, with 20,294,000 and 20,286,000 shares issued and outstanding, respectively. During the three months ended March 31, 2024, 922 shares of Series F Preferred Stock, plus $82,000 accrued dividends, were converted to 3,602,103 shares of the Company’s common stock. See Note 5 - Preferred Stock, for further detail. Common Stock activity for the three months ended March 31, 2024 is presented below (in thousands).
Common Stock Warrants Warrants outstanding as of March 31, 2024 are as follows:
Warrant activity for the three months ended March 31, 2024 and the year ended December 31, 2023 is presented below.
Treasury Shares The Company maintains treasury stock for the Common Stock shares bought back by the Company when withholding shares to cover taxes on transactions related to equity awards. There were no treasury stock transactions during the three months ended March 31, 2024 or the year ended December 31, 2023.
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Preferred Stock |
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Preferred Stock | Note 5 - Preferred Stock Our Certificate of Incorporation authorizes the issuance of up to 5,000,000 shares of preferred stock. As of March 31, 2024, we had 1,983,250 designated shares of preferred stock and 1,008 shares of preferred stock issued and outstanding. As of December 31, 2023, we had 1,930 shares of preferred stock issued and outstanding. Series F Preferred Stock On March 30, 2023, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain accredited investors (the “Investors”), pursuant to which we issued and sold, in a private placement (the “Private Placement”) (i) 6,550 shares of our newly designated Series F Preferred Stock, $0.0001 par value per share (the “Series F Preferred Stock”), (ii) preferred warrants (the “Preferred Warrants”) to acquire 32,750 shares of Series F Preferred Stock, and (iii) common warrants (“Common Warrants” and with the Preferred Warrants the “Investor Warrants”) to acquire up to 3,830,417 shares of Common Stock. Please refer to Note 4 - Capital Stock for additional detail regarding the Series F Preferred Stock and Preferred Warrants. The terms of the Series F Preferred Stock are as set forward in the Certificate of Designations of Series F Preferred Stock of Oblong, Inc. (the “Certificate of Designations”), which was filed and became effective with the Secretary of State of the State of Delaware on March 31, 2023. The Private Placement closed on March 31, 2023, in exchange for gross and net proceeds of $6,386,000 and $5,364,000, respectively. The financing fees associated with the Purchase Agreement were $1,022,000. The Series F Preferred Shares are convertible into fully paid and non-assessable shares of the Company’s Common Stock at the election of the holder at any time at an initial conversion price of $1.71 (the “Conversion Price”). The holders of the Series F Preferred Shares may also elect to convert their shares at an alternative conversion price equal to the lower of (i) 80% of the applicable Conversion Price as in effect on the date of the conversion, (ii) 80% of the closing price on the trading day immediately preceding the delivery of the conversion notice, and (iii) the greater of (a) the Floor Price (as defined in the Certificate of Designations) and (b) the quotient of (x) the sum of the five lowest Closing Bid Prices (as defined in the Certificate of Designations) for trading days in the 30 consecutive trading day period ending and including the trading day immediately preceding the delivery of the applicable Conversion Notice, divided by (y) five. The Conversion Price is subject to customary adjustments for stock splits, stock dividends, stock combination recapitalization, or other similar transactions involving the Common Stock, and subject to price-based adjustment, on a full ratchet basis, in the event of any issuances of our common stock, or securities convertible, exercisable or exchangeable for Common Stock, at a price below the then-applicable Conversion Price (subject to certain exceptions). On October 6, 2023, the Company and Investors holding a majority of the outstanding shares of the Preferred Stock agreed to waive any and all provisions, terms, covenants and obligations in the Certificate of Designations or Common Warrants to the extent such provisions permit the conversion or exercise of the Preferred Stock and the Common Warrants, respectively, to occur at a price below $0.2792. Notwithstanding anything to the contrary in the Certificate of Designations, each of the “Alternate Conversion Price” and the “Floor Price” as set forth in the Certificate of Designations shall in no event be less than $0.2792 (as adjusted for stock splits, stock dividends, stock combinations, recapitalizations and similar events). Under the Certificate of Designations, the Series F Preferred Shares have an initial stated value of $1,000 per share (the “Stated Value”). The holders of the Series F Preferred Shares are entitled to dividends of 9% per annum, which will be payable in arrears quarterly. Accrued dividends may be paid, at our option, in cash and if not paid, shall increase the stated value of the Series F Preferred Shares. Upon the occurrence and during the continuance of a Triggering Event (as defined in the Certificate of Designations), the Series F Preferred Shares will accrue dividends at the rate of 20% per annum (the “Default Rate”). The Series F Preferred Shares have no voting rights, other than with respect to certain matters affecting the rights of the Series F Preferred Shares. On matters with respect to which the holders of the Series F Preferred Shares have a right to vote, holders of the Preferred Shares will have voting rights on an as-converted basis. Our ability to settle conversions is subject to certain limitations set forth in the Certificate of Designations. Further, the Certificate of Designations contains a certain beneficial ownership limitation after giving effect to the issuance of shares of common stock issuable upon conversion of the Series F Preferred Shares. The Certificate of Designations includes certain Triggering Events (as defined in the Certificate of Designations), including, among other things, (i) the failure to file and maintain an effective registration statement covering the sale of the holder’s securities registrable pursuant to the Registration Rights Agreement, (ii) the failure to pay any amounts due to the holders of the Series F Preferred Shares when due, and (iii) if Peter Holst ceases to be the chief executive officer of the Company other than because of his death, and a qualified replacement, reasonably acceptable to a majority of the holders of the Series F Preferred Shares, is not appointed within thirty (30) business days. In connection with a Triggering Event, the Default Rate is triggered. We are subject to certain affirmative and negative covenants regarding the incurrence of indebtedness, acquisition transactions, the existence of liens, the repayment of indebtedness, the payment of cash in respect of dividends (other than dividends pursuant to the Certificate of Designations), maintenance of properties and the transfer of assets, among other matters. During the year ended December 31, 2023 and the three months ended March 31, 2024, 4,620 and 922 shares of Series F Preferred Stock, plus accrued dividends, were converted to 14,102,477 and 3,602,103 shares of the Company’s common stock, respectively. There were 1,008 shares of Series F Preferred Stock outstanding and accrued dividends of $94,000 as of March 31, 2024. Series F Preferred Stock transactions are summarized in the table below (in thousands except for shares of Series F Preferred Stock:
Series F Preferred Stock Warrants The Preferred Warrants are exercisable for Series F Preferred Shares at an exercise price of $975. The exercise price is subject to customary adjustments for stock splits, stock dividends, stock combination recapitalizations or other similar transactions involving the Common Stock. The Preferred Warrants expire three years from the date of issuance and are exercisable for cash. For each Preferred Warrant exercised, the Investors shall receive Common Warrants to purchase a number of shares of Common Stock equal to 100% of the number of shares of Common Stock the Investors would receive if the Series F Preferred Shares issuable upon exercise of such Warrant were converted at the applicable Conversion Price. The fair value of the Preferred Warrants was recorded within additional paid-in capital upon issuance. As of March 31, 2024, no Preferred Warrants have been exercised.
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Stock Based Compensation |
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Stock Based Compensation | Note 6 - Stock Based Compensation 2019 Equity Incentive Plan On December 19, 2019, the Oblong, Inc. 2019 Equity Incentive Plan (the “2019 Plan”) was approved by the Company’s stockholders at the Company’s 2019 Annual Meeting of Stockholders. The 2019 Plan is an omnibus equity incentive plan pursuant to which the Company may grant equity and cash incentive awards to certain key service providers of the Company and its subsidiaries. As of December 31, 2023, the share pool available for new grants under the 2019 Plan was 3. Stock Options A summary of stock option activity under our plans, and options outstanding as of, and changes made during the three months ended March 31, 2024 and year ended December 31, 2023 is presented below:
The intrinsic value of vested and unvested options was not significant for all periods presented. Stock compensation expense related to stock options for the three months ended March 31, 2024 and 2023 was $31,000 and was recorded as a general and administrative expense on our Condensed Consolidated Statements of Operations. The remaining unrecognized stock-based compensation expense for options as of March 31, 2024 is $30,000, which will be recognized over a weighted average period of 3 months. Restricted Stock As of March 31, 2024 and December 31, 2023, there were no outstanding restricted stock awards or restricted stock units (“Restricted Stock”). For the three months ended March 31, 2024 and 2023, there was no stock compensation expense recorded for Restricted Stock and there was no unamortized expense related to Restricted Stock. The following table shows a summary of Restricted Stock activity for the year ended December 31, 2023. There was no Restricted Stock activity during the three months ended March 31, 2024.
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Net Loss Per Share |
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Net Loss Per Share | Note 7 - Net Loss Per Share Basic net loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. The weighted-average number of shares of common stock outstanding does not include any potentially dilutive securities or unvested Restricted Stock. Unvested Restricted Stock, although classified as issued and outstanding at March 31, 2023, was considered contingently returnable until the restrictions lapsed and was not included in the basic net loss per share calculation for the three months ended March 31, 2023. Unvested Restricted Stock does not contain non-forfeitable rights to dividends and dividend equivalents. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including stock options, preferred stock, warrants, and unvested Restricted Stock, to the extent they are dilutive. For the three months ended March 31, 2024 and 2023, all such common stock equivalents have been excluded from diluted net loss per share as the effect to net loss per share would be anti-dilutive (due to the net loss). The following table sets forth the computation of the Company’s basic and diluted net loss per share (in thousands, except per share data):
The following table represents the potential shares that were excluded from the computation of weighted-average number of shares of common stock in computing the diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect (due to the net loss):
(1) Calculation assumes conversion of the stated value, and accrued dividends, of the Series F Preferred Stock into Common Stock at the Floor Price as of March 31, 2024, and at the initial conversion price of $1.71 as of March 31, 2023. (2) Calculation assumes exercise of the Series F Preferred Warrants for cash into Series F Preferred Stock and subsequent conversion of the Series F Preferred Stock into Common Stock at the Floor Price as of March 31, 2024. The Series F Preferred Stock Warrants were not exercisable as of March 31, 2023.
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Segment Reporting |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | Note 8 - Segment Reporting The Company currently operates in two segments: (1) “Managed Services”, which represents the business surrounding managed services for video collaboration and network applications; and (2) “Collaboration Products” which represents the business surrounding our Mezzanine™ product offerings. Certain information concerning the Company’s segments for the three months ended March 31, 2024 and 2023 is presented in the following tables (in thousands):
Unallocated operating expenses in Corporate include costs for the three months ended March 31, 2024 and 2023 that are not specific to a particular segment but are general to the group; included are expenses incurred for administrative and accounting staff, general liability and other insurance, professional fees, and other similar corporate expenses. For the three months ended March 31, 2024, and 2023, there was no material revenue attributable to any individual foreign country. Revenue by geographic area is allocated as follows (in thousands):
Disaggregated information for the Company’s revenue has been recognized in the accompanying Condensed Consolidated Statements of Operations and is presented below according to contract type (in thousands):
The Company considers a significant customer to be one that comprises more than 10% of the Company’s consolidated revenues or accounts receivable. The loss of or a reduction in sales or anticipated sales to our most significant or several of our smaller customers could have a material adverse effect on our business, financial condition, and results of operations. Concentration of consolidated revenues was as follows:
Concentration of accounts receivable was as follows:
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Commitments and Contingencies |
3 Months Ended |
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Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9 - Commitments and Contingencies From time to time, we are subject to various legal proceedings arising in the ordinary course of business, including proceedings for which we have insurance coverage. As of the date hereof, we are not party to any legal proceedings that we currently believe will have a material adverse effect on our business, financial position, results of operations or liquidity. COVID-19 On March 11, 2020, the World Health Organization (“WHO”) announced that infections of the novel Coronavirus (COVID-19) had become pandemic, and on March 13, 2020, the U.S. President announced a National Emergency relating to the disease. In May 2023, the WHO declared COVID-19 over as a global health emergency. Customers generally use our Mezzanine™ products in traditional office and operating center environments such as conference rooms or other presentation spaces. Revenue declines for our Collaboration Products business are primarily due to lower demand, largely a consequence of the commercial reactions to the COVID-19 pandemic and its prolonged effects. We believe the COVID-19 pandemic fundamentally altered the way businesses consider the use of physical office spaces and, consequently, the demand for technologies that enable in-person collaboration within these spaces. Our analysis indicates that the reduced demand for our Mezzanine™ products, particularly in the aftermath of COVID-19, reflects a broader reassessment among our customers regarding the necessity and investment in collaboration solutions tailored for traditional office environments. Continuation of this trend could cause further declines in our revenue for this business. Although the Company cannot presently quantify the future financial impacts of this trend, such impacts will likely continue to have a material adverse impact on the Company’s consolidated financial condition, results of operations, and cash flows.
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Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2024 |
Mar. 31, 2023 |
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Pay vs Performance Disclosure | ||
Net loss | $ (1,136) | $ (1,219) |
Insider Trading Arrangements |
3 Months Ended |
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Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
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 |
Business Description and Significant Accounting Policies (Policies) |
3 Months Ended |
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Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company's fiscal year ends on December 31 of each calendar year. The accompanying interim Condensed Consolidated Financial Statements are unaudited and have been prepared on substantially the same basis as our annual Consolidated Financial Statements for the fiscal year ended December 31, 2023. In the opinion of the Company's management, these interim Condensed Consolidated Financial Statements reflect all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of our financial position, results of operations and cash flows for the periods presented. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the Condensed Consolidated Financial Statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from these estimates. The December 31, 2023 year-end Condensed Consolidated Balance Sheet data in this document was derived from audited consolidated financial statements. The Condensed Consolidated Financial Statements and notes included in this quarterly report on Form 10-Q do not include all disclosures required by U.S. generally accepted accounting principles and should be read in conjunction with the Company's audited consolidated financial statements as of and for the year ended December 31, 2023 and notes thereto included in the Company's fiscal 2023 Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on March 19, 2024 (the “2023 Annual Report”). The results of operations and cash flows for the interim periods included in these Condensed Consolidated Financial Statements are not necessarily indicative of the results to be expected for any future period or the entire fiscal year.
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Principles of Consolidation | Principles of Consolidation The Condensed Consolidated Financial Statements include the accounts of Oblong and our 100%-owned subsidiaries (i) GP Communications, LLC (“GP Communications”), whose business function is to provide interstate telecommunications services for regulatory purposes, and (ii) Oblong Industries, Inc. All inter-company balances and transactions have been eliminated in consolidation. The U.S. Dollar is the functional currency for all subsidiaries.
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Segments | Segments The Company currently operates in two segments: (1) “Collaboration Products” which represents the business surrounding our Mezzanine™ product offerings, and (2) “Managed Services” which represents the business surrounding managed services for video collaboration and network solutions. See Note 8 - Segment Reporting for further discussion.
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Use of Estimates | Use of Estimates Preparation of the Condensed Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from the estimates made. We continually evaluate estimates used in the preparation of our consolidated financial statements for reasonableness. Appropriate adjustments, if any, to the estimates used are made prospectively based upon such periodic evaluation. The significant areas of estimation include determining the allowances for inventory obsolescence and estimated credit losses and the inputs used in the fair value of equity-based awards.
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Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic280): Improvements to Reportable Segment Disclosures. The new guidance is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. The amendments are effective retrospectively for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. The Company is in the process of evaluating the impact that the adoption of this ASU will have on the financial statements and related disclosures, which is not expected to be material. In December 2023, the FASB issued ASU No. 2023-09, Improvements to Tax Disclosures (Topic 740), to enhance the transparency and decision usefulness of income tax disclosures through changes to the rate reconciliation and income taxes paid information. This guidance is effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is evaluating the impact of adopting this new accounting guidance on its Consolidated Financial Statements.
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Accrued Expenses and Other Current Liabilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Expenses and Other Liabilities | Accrued expenses and other current liabilities consisted of the following (in thousands):
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Capital Stock (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Common Stock Activity | Common Stock activity for the three months ended March 31, 2024 is presented below (in thousands).
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Schedule of Warrants Activity | Warrants outstanding as of March 31, 2024 are as follows:
Warrant activity for the three months ended March 31, 2024 and the year ended December 31, 2023 is presented below.
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Preferred Stock (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Series F Preferred Stock Transactions | Series F Preferred Stock transactions are summarized in the table below (in thousands except for shares of Series F Preferred Stock:
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Stock Based Compensation (Tables) |
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Options Granted, Exercised, Expired and Forfeited | A summary of stock option activity under our plans, and options outstanding as of, and changes made during the three months ended March 31, 2024 and year ended December 31, 2023 is presented below:
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Schedule of Restricted Stock and Restricted Stock Unit Activity | The following table shows a summary of Restricted Stock activity for the year ended December 31, 2023. There was no Restricted Stock activity during the three months ended March 31, 2024.
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Net Loss Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of the Company’s basic and diluted net loss per share (in thousands, except per share data):
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following table represents the potential shares that were excluded from the computation of weighted-average number of shares of common stock in computing the diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect (due to the net loss):
(1) Calculation assumes conversion of the stated value, and accrued dividends, of the Series F Preferred Stock into Common Stock at the Floor Price as of March 31, 2024, and at the initial conversion price of $1.71 as of March 31, 2023. (2) Calculation assumes exercise of the Series F Preferred Warrants for cash into Series F Preferred Stock and subsequent conversion of the Series F Preferred Stock into Common Stock at the Floor Price as of March 31, 2024. The Series F Preferred Stock Warrants were not exercisable as of March 31, 2023.
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Segment Reporting (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information | Certain information concerning the Company’s segments for the three months ended March 31, 2024 and 2023 is presented in the following tables (in thousands):
Concentration of consolidated revenues was as follows:
Concentration of accounts receivable was as follows:
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Schedule of Revenue from External Customers by Geographic Areas | Revenue by geographic area is allocated as follows (in thousands):
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Schedule of Disaggregated Revenue Information | Disaggregated information for the Company’s revenue has been recognized in the accompanying Condensed Consolidated Statements of Operations and is presented below according to contract type (in thousands):
|
Business Description and Significant Accounting Policies (Details) |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2024
USD ($)
segment
|
Mar. 31, 2023
USD ($)
|
Dec. 31, 2023
USD ($)
|
Dec. 31, 2022
USD ($)
|
|
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 5,360,000 | $ 3,714,000 | $ 5,990,000 | $ 3,085,000 |
Current certificates of deposit | $ 500,000 | 0 | 500,000 | |
Number of operating segments | segment | 2 | |||
Intangibles, net | $ 0 | 0 | ||
Amortization expense | 86,000 | |||
Operating lease - right of use asset, net | 0 | 17,000 | ||
Total operating lease liabilities | 0 | $ 17,000 | ||
Non-cash lease expense | $ 17,000 | 46,000 | ||
Sublease income | $ 16,000 |
Liquidity (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Cash and cash equivalents | $ 5,360 | $ 3,714 | $ 5,990 | $ 3,085 |
Working capital | 4,436 | |||
Net loss | 1,136 | 1,219 | ||
Net cash used in operating activities | $ 630 | $ 844 |
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Other Liabilities Disclosure [Abstract] | ||
Compensation costs | $ 526 | $ 448 |
Customer deposits | 86 | 118 |
Professional fees | 129 | 104 |
Taxes and regulatory fees | 19 | 22 |
Accrued rent | 170 | 202 |
Accrued dividends on Series F Preferred Stock | 94 | 136 |
Other accrued expenses and liabilities | 7 | 8 |
Accrued expenses and other current liabilities | $ 1,031 | $ 1,038 |
Capital Stock - Common Stock Activity (Details) - shares |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2024 |
Dec. 31, 2023 |
|
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Treasury stock, shares (in shares) | 8,000 | 8,000 |
Common stock, shares outstanding (in shares) | 20,285,675 | 16,683,572 |
Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance (in shares) | 16,692,000 | 2,071,000 |
Issuances from Preferred Stock Conversions (in shares) | 3,602,000 | 14,102,000 |
Issuances related to warrant exercises (in shares) | 746,000 | |
Issuances related to stock compensation (in shares) | 180,000 | |
Common shares exchanged for prepaid warrants (in shares) | (407,000) | |
Ending Balance (in shares) | 20,294,000 | 16,692,000 |
Ending Balance (in shares) | 20,294,000 | 16,692,000 |
Treasury stock, shares (in shares) | (8,000) | |
Common stock, shares outstanding (in shares) | 20,286,000 |
Capital Stock - Warrants Outstanding (Details) - $ / shares |
Mar. 31, 2024 |
Dec. 31, 2023 |
Mar. 31, 2023 |
Dec. 31, 2022 |
Jun. 28, 2021 |
---|---|---|---|---|---|
Equity [Abstract] | |||||
Warrants issued (in shares) | 4,137,600 | 4,136,850 | 750 | ||
Exercise price (in dollars per share) | $ 1.72 | $ 1.72 | $ 1.71 | $ 66.34 | $ 66.00 |
Stock Based Compensation - Narrative (Details) - USD ($) |
3 Months Ended | |||
---|---|---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options, intrinsic value, vested | $ 0 | $ 0 | ||
Unrecognized stock-based compensation expense for stock options | $ 30,000 | |||
Unvested restricted shares outstanding (in shares) | 0 | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option compensation expense | $ 31,000 | 31,000 | ||
Cost not yet recognized, period for recognition | 3 months | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock option compensation expense | $ 0 | 0 | ||
Unamortized expense related to restricted stock | $ 0 | $ 0 | ||
Unvested restricted shares outstanding (in shares) | 0 | 0 | 42 | |
2019 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for grant (in shares) | 3 |
Net Loss Per Share - Narrative (Details) - $ / shares |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2024 |
Oct. 06, 2023 |
Mar. 31, 2023 |
|
Earnings Per Share [Abstract] | |||
Weighted-average shares common stock outstanding, potentially dilutive securities or unvested restricted stock (in shares) | 0 | ||
Weighted average conversion price (in dollars per share) | $ 0.2792 | $ 1.71 |
Net Loss Per Share - Schedule of Computation of Basic and Diluted Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Numerator: | ||
Net loss | $ (1,136) | $ (1,219) |
Less: preferred stock dividends | (44) | 0 |
Less: warrant modification | 0 | (25) |
Net loss attributable to common stockholders | $ (1,180) | $ (1,244) |
Denominator: | ||
Weighted-average number of shares of common stock - basic (in shares) | 17,123 | 2,065 |
Weighted-average number of shares of common stock - diluted (in shares) | 17,123 | 2,065 |
Basic net loss per share (in dollars per share) | $ (0.07) | $ (0.60) |
Diluted net loss per share (in dollars per share) | $ (0.07) | $ (0.60) |
Segment Reporting - Schedule of Concentration Percentage (Details) - Customer Concentration Risk |
3 Months Ended | |
---|---|---|
Mar. 31, 2024 |
Mar. 31, 2023 |
|
Customer A | Managed Services | Revenue | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage (in percent) | 82.00% | 52.00% |
Customer A | Managed Services | Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage (in percent) | 0.00% | 41.00% |
Customer B | Managed Services | Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage (in percent) | 0.00% | 11.00% |
Customer C | Collaboration Products | Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage (in percent) | 0.00% | 14.00% |
Customer D | Collaboration Products | Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage (in percent) | 0.00% | 15.00% |
Customer E | Collaboration Products | Accounts Receivable | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage (in percent) | 73.00% | 0.00% |
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