Minnesota | 41-1577970 | |||||||
(State or other jurisdiction of
incorporation or organization) |
(I.R.S. Employer
Identification No.) |
|||||||
510 1st Avenue North, Suite 305 | ||||||||
Minneapolis, | Minnesota | 55403 | ||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class |
Trading
Symbol |
Name of each exchange on which registered | ||||||||||||
Common Stock, $0.01 par value | QUMU | The Nasdaq Stock Market LLC |
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||||||||||
Non-accelerated filer | ☒ | Smaller reporting company | ☒ | |||||||||||
Emerging growth company | ☐ |
Description | Page | |||||||
September 30,
2020 |
December 31,
2019 |
||||||||||
Assets | (unaudited) | ||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 11,352 | $ | 10,639 | |||||||
Receivables, net of allowance for doubtful accounts of $44 and $45, respectively
|
5,699 | 4,586 | |||||||||
Contract assets | 802 | 1,089 | |||||||||
Income tax receivable | 289 | 338 | |||||||||
Prepaid expenses and other current assets | 1,882 | 1,981 | |||||||||
Total current assets | 20,024 | 18,633 | |||||||||
Property and equipment, net of accumulated depreciation of 2,741 and 2,520, respectively
|
431 | 596 | |||||||||
Right of use assets – operating leases | 1,425 | 1,746 | |||||||||
Intangible assets, net | 2,341 | 3,075 | |||||||||
Goodwill | 7,036 | 7,203 | |||||||||
Deferred income taxes, non-current | 12 | 21 | |||||||||
Other assets, non-current | 458 | 442 | |||||||||
Total assets | $ | 31,727 | $ | 31,716 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and other accrued liabilities | $ | 2,104 | $ | 2,816 | |||||||
Accrued compensation | 1,777 | 1,165 | |||||||||
Deferred revenue | 12,280 | 10,140 | |||||||||
Operating lease liabilities | 627 | 587 | |||||||||
Financing obligations | 123 | 157 | |||||||||
Note payable | 1,767 | — | |||||||||
Derivative liability | 36 | — | |||||||||
Warrant liability | 1,814 | 2,939 | |||||||||
Total current liabilities | 20,528 | 17,804 | |||||||||
Long-term liabilities: | |||||||||||
Deferred revenue, non-current | 3,612 | 1,449 | |||||||||
Income taxes payable, non-current | 602 | 585 | |||||||||
Operating lease liabilities, non-current | 1,137 | 1,587 | |||||||||
Financing obligations, non-current | 18 | 83 | |||||||||
Other liabilities, non-current | 264 | — | |||||||||
Total long-term liabilities | 5,633 | 3,704 | |||||||||
Total liabilities | 26,161 | 21,508 | |||||||||
Commitments and contingencies (Note 3) | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $0.01 par value, authorized 250,000 shares, no shares issued and outstanding
|
— | — | |||||||||
Common stock, $0.01 par value, authorized 29,750,000 shares, issued and outstanding 13,712,845
and 13,553,409, respectively
|
137 | 136 | |||||||||
Additional paid-in capital | 78,758 | 78,061 | |||||||||
Accumulated deficit | (70,350) | (65,128) | |||||||||
Accumulated other comprehensive loss | (2,979) | (2,861) | |||||||||
Total stockholders’ equity | 5,566 | 10,208 | |||||||||
Total liabilities and stockholders’ equity | $ | 31,727 | $ | 31,716 |
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Software licenses and appliances | $ | 548 | $ | 1,962 | $ | 6,149 | $ | 3,656 | |||||||||||||||
Service | 6,082 | 4,709 | 16,042 | 15,478 | |||||||||||||||||||
Total revenues | 6,630 | 6,671 | 22,191 | 19,134 | |||||||||||||||||||
Cost of revenues: | |||||||||||||||||||||||
Software licenses and appliances | 219 | 719 | 2,344 | 1,366 | |||||||||||||||||||
Service | 1,435 | 1,294 | 4,337 | 3,747 | |||||||||||||||||||
Total cost of revenues | 1,654 | 2,013 | 6,681 | 5,113 | |||||||||||||||||||
Gross profit | 4,976 | 4,658 | 15,510 | 14,021 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development | 2,105 | 1,849 | 5,973 | 5,361 | |||||||||||||||||||
Sales and marketing | 2,044 | 2,083 | 6,443 | 6,647 | |||||||||||||||||||
General and administrative | 2,142 | 1,673 | 7,055 | 4,998 | |||||||||||||||||||
Amortization of purchased intangibles | 165 | 168 | 492 | 587 | |||||||||||||||||||
Total operating expenses | 6,456 | 5,773 | 19,963 | 17,593 | |||||||||||||||||||
Operating loss | (1,480) | (1,115) | (4,453) | (3,572) | |||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Gain on sale of BriefCam, Ltd. | — | 41 | — | 41 | |||||||||||||||||||
Interest expense, net | (33) | (235) | (38) | (654) | |||||||||||||||||||
Decrease (increase) in fair value of derivative liability | (1) | — | 104 | — | |||||||||||||||||||
Decrease (increase) in fair value of warrant liability | (332) | 973 | (730) | (752) | |||||||||||||||||||
Other, net | (55) | (3) | (252) | 32 | |||||||||||||||||||
Total other income (expense), net | (421) | 776 | (916) | (1,333) | |||||||||||||||||||
Loss before income taxes | (1,901) | (339) | (5,369) | (4,905) | |||||||||||||||||||
Income tax benefit | (43) | (118) | (147) | (133) | |||||||||||||||||||
Net loss | $ | (1,858) | $ | (221) | $ | (5,222) | $ | (4,772) | |||||||||||||||
Net loss per share – basic: | |||||||||||||||||||||||
Net loss per share – basic | $ | (0.14) | $ | (0.02) | $ | (0.39) | $ | (0.49) | |||||||||||||||
Weighted average shares outstanding – basic | 13,579 | 9,913 | 13,555 | 9,822 | |||||||||||||||||||
Net loss per share – diluted: | |||||||||||||||||||||||
Loss attributable to common shareholders | $ | (1,858) | $ | (1,194) | $ | (5,516) | $ | (4,772) | |||||||||||||||
Net loss per share – diluted | $ | (0.14) | $ | (0.11) | $ | (0.41) | $ | (0.49) | |||||||||||||||
Weighted average shares outstanding – diluted | 13,579 | 10,413 | 13,575 | 9,822 |
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net loss | $ | (1,858) | $ | (221) | $ | (5,222) | $ | (4,772) | |||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Net change in foreign currency translation adjustments | 380 | (254) | (118) | (289) | |||||||||||||||||||
Total other comprehensive income (loss) | 380 | (254) | (118) | (289) | |||||||||||||||||||
Total comprehensive loss | $ | (1,478) | $ | (475) | $ | (5,340) | $ | (5,061) |
Common Stock |
Additional
Paid-in Capital |
Accumulated
Deficit |
Accumulated
Other Comprehensive Loss |
Total | |||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 9,624 | $ | 96 | $ | 69,072 | $ | (58,875) | $ | (3,288) | $ | 7,005 | ||||||||||||||||||||||||
Adoption of ASC Topic 842 | — | — | — | 190 | — | 190 | |||||||||||||||||||||||||||||
Net loss | — | — | — | (950) | — | (950) | |||||||||||||||||||||||||||||
Other comprehensive income, net of taxes | — | — | — | — | 243 | 243 | |||||||||||||||||||||||||||||
Issuance of stock under employee stock plan, net of forfeitures | 156 | 2 | (1) | — | — | 1 | |||||||||||||||||||||||||||||
Redemption of stock related to tax withholdings on employee stock plan issuances | (15) | — | (36) | — | — | (36) | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | 231 | — | — | 231 | |||||||||||||||||||||||||||||
Balance at March 31, 2019 | 9,765 | $ | 98 | $ | 69,266 | $ | (59,635) | $ | (3,045) | $ | 6,684 | ||||||||||||||||||||||||
Net loss | — | — | — | (3,601) | — | (3,601) | |||||||||||||||||||||||||||||
Other comprehensive loss, net of taxes | — | — | — | — | (278) | (278) | |||||||||||||||||||||||||||||
Issuance of stock under employee stock plan, net of forfeitures | 146 | 1 | 41 | — | — | 42 | |||||||||||||||||||||||||||||
Redemption of stock related to tax withholdings on employee stock plan issuances | (4) | — | (17) | — | — | (17) | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | 194 | — | — | 194 | |||||||||||||||||||||||||||||
Balance at June 30, 2019 | 9,907 | $ | 99 | $ | 69,484 | $ | (63,236) | $ | (3,323) | $ | 3,024 | ||||||||||||||||||||||||
Net loss | — | — | — | (221) | — | (221) | |||||||||||||||||||||||||||||
Other comprehensive loss, net of taxes | — | — | — | — | (254) | (254) | |||||||||||||||||||||||||||||
Issuance of stock under employee stock plan, net of forfeitures | 2 | — | 4 | — | — | 4 | |||||||||||||||||||||||||||||
Redemption of stock related to tax withholdings on employee stock plan issuances | — | — | (2) | — | — | (2) | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | 219 | — | — | 219 | |||||||||||||||||||||||||||||
Balance at September 30, 2019 | 9,909 | $ | 99 | $ | 69,705 | $ | (63,457) | $ | (3,577) | $ | 2,770 |
Common Stock |
Additional
Paid-in Capital |
Accumulated
Deficit |
Accumulated
Other Comprehensive Loss |
Total | |||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 13,553 | $ | 136 | $ | 78,061 | $ | (65,128) | $ | (2,861) | $ | 10,208 | ||||||||||||||||||||||||
Net loss | — | — | — | (2,672) | — | (2,672) | |||||||||||||||||||||||||||||
Other comprehensive loss, net of taxes | — | — | — | — | (480) | (480) | |||||||||||||||||||||||||||||
Issuance of stock under employee stock plan, net of forfeitures | 4 | — | — | — | — | — | |||||||||||||||||||||||||||||
Redemption of stock related to tax withholdings on employee stock plan issuances | (29) | — | (53) | — | — | (53) | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | 245 | — | — | 245 | |||||||||||||||||||||||||||||
Balance at March 31, 2020 | 13,528 | $ | 136 | $ | 78,253 | $ | (67,800) | $ | (3,341) | $ | 7,248 | ||||||||||||||||||||||||
Net loss | — | — | — | (692) | — | (692) | |||||||||||||||||||||||||||||
Other comprehensive loss, net of taxes | — | — | — | — | (18) | (18) | |||||||||||||||||||||||||||||
Issuance of stock under employee stock plan, net of forfeitures | 1 | (1) | — | — | — | (1) | |||||||||||||||||||||||||||||
Redemption of stock related to tax withholdings on employee stock plan issuances | — | — | (1) | — | — | (1) | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | 164 | — | — | 164 | |||||||||||||||||||||||||||||
Balance at June 30, 2020 | 13,529 | $ | 135 | $ | 78,416 | $ | (68,492) | $ | (3,359) | $ | 6,700 | ||||||||||||||||||||||||
Net loss | — | — | — | (1,858) | — | (1,858) | |||||||||||||||||||||||||||||
Other comprehensive loss, net of taxes | — | — | — | — | 380 | 380 | |||||||||||||||||||||||||||||
Issuance of stock under employee stock plan, net of forfeitures | 206 | 2 | 236 | — | — | 238 | |||||||||||||||||||||||||||||
Redemption of stock related to tax withholdings on employee stock plan issuances | (22) | — | (105) | — | — | (105) | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | 211 | — | — | 211 | |||||||||||||||||||||||||||||
Balance at September 30, 2020 | 13,713 | $ | 137 | $ | 78,758 | $ | (70,350) | $ | (2,979) | $ | 5,566 |
Nine Months Ended
September 30, |
|||||||||||
2020 | 2019 | ||||||||||
Operating activities: | |||||||||||
Net loss | $ | (5,222) | $ | (4,772) | |||||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization | 935 | 1,170 | |||||||||
Stock-based compensation | 620 | 644 | |||||||||
Accretion of debt discount and issuance costs | 52 | 403 | |||||||||
Gain on sale of BriefCam, Ltd. | — | (41) | |||||||||
Gain on lease modification | — | (21) | |||||||||
Decrease in fair value of derivative liability | (104) | — | |||||||||
Increase in fair value of warrant liability | 730 | 752 | |||||||||
Deferred income taxes | 9 | 8 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Receivables | (1,107) | 2,038 | |||||||||
Contract assets | 296 | (845) | |||||||||
Income taxes receivable / payable | 70 | 62 | |||||||||
Prepaid expenses and other assets | 268 | 573 | |||||||||
Accounts payable and other accrued liabilities | (629) | 546 | |||||||||
Accrued compensation | 617 | (732) | |||||||||
Deferred revenue | 4,338 | (431) | |||||||||
Other non-current liabilities | 264 | (24) | |||||||||
Net cash provided by (used in) operating activities | 1,137 | (670) | |||||||||
Investing activities: | |||||||||||
Proceeds from sale of BriefCam, Ltd. | — | 41 | |||||||||
Purchases of property and equipment | (68) | (137) | |||||||||
Net cash used in investing activities | (68) | (96) | |||||||||
Financing activities: | |||||||||||
Proceeds from issuance of common stock under employee stock plans | 238 | 46 | |||||||||
Principal payments on financing obligations | (286) | (242) | |||||||||
Common stock repurchases to settle employee withholding liability | (160) | (54) | |||||||||
Net cash used in financing activities | (208) | (250) | |||||||||
Effect of exchange rate changes on cash | (148) | (95) | |||||||||
Net increase (decrease) in cash and cash equivalents | 713 | (1,111) | |||||||||
Cash and cash equivalents, beginning of period | 10,639 | 8,636 | |||||||||
Cash and cash equivalents, end of period | $ | 11,352 | $ | 7,525 | |||||||
Supplemental disclosures of net cash paid (received) during the period: | |||||||||||
Income taxes, net | $ | (264) | $ | (207) | |||||||
Interest, net | $ | 12 | $ | 14 | |||||||
Non-cash investing and financing activities: | |||||||||||
Issuance of note payable and derivative liability for cancellation of warrant | $ | 1,855 | $ | — | |||||||
September 30, 2020 | |||||||||||||||||||||||
Customer Relationships | Developed Technology | Trademarks / Trade Names | Total | ||||||||||||||||||||
Original cost | $ | 4,834 | $ | 8,054 | $ | 2,181 | $ | 15,069 | |||||||||||||||
Accumulated amortization | (3,654) | (7,883) | (1,191) | (12,728) | |||||||||||||||||||
Intangibles assets, net | $ | 1,180 | $ | 171 | $ | 990 | $ | 2,341 |
December 31, 2019 | |||||||||||||||||||||||
Customer Relationships | Developed Technology | Trademarks / Trade Names | Total | ||||||||||||||||||||
Original cost | $ | 4,878 | $ | 8,135 | $ | 2,182 | $ | 15,195 | |||||||||||||||
Accumulated amortization | (3,293) | (7,741) | (1,086) | (12,120) | |||||||||||||||||||
Intangibles assets, net | $ | 1,585 | $ | 394 | $ | 1,096 | $ | 3,075 |
Nine Months Ended
September 30, 2020 |
|||||
Balance, beginning of period | $ | 3,075 | |||
Amortization expense | (704) | ||||
Currency translation | (30) | ||||
Balance, end of period | $ | 2,341 |
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Amortization expense associated with the developed technology included in cost of revenues | $ | 72 | $ | 109 | $ | 212 | $ | 340 | |||||||||||||||
Amortization expense associated with other acquired intangible assets included in operating expenses | 165 | 168 | 492 | 587 | |||||||||||||||||||
Total amortization expense | $ | 237 | $ | 277 | $ | 704 | $ | 927 |
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Operating lease cost | $ | 103 | $ | 154 | $ | 297 | $ | 432 | |||||||||||||||
Finance lease cost: | |||||||||||||||||||||||
Amortization of right of use assets | 31 | 31 | 93 | 75 | |||||||||||||||||||
Interest on lease liabilities | 2 | 3 | 6 | 8 | |||||||||||||||||||
Total finance cost | 33 | 34 | 99 | 83 | |||||||||||||||||||
Total lease cost | $ | 136 | $ | 188 | $ | 396 | $ | 515 |
Operating
leases |
Finance
leases |
||||||||||
Remainder of 2020 | $ | 237 | $ | 23 | |||||||
2021 | 711 | 80 | |||||||||
2022 | 671 | 5 | |||||||||
2023 | 294 | — | |||||||||
2024 | 114 | — | |||||||||
Total undiscounted lease payments | 2,027 | 108 | |||||||||
Less amount representing interest | (263) | (4) | |||||||||
Present value of lease liabilities | $ | 1,764 | $ | 104 |
Description | Number of underlying warrant shares |
Warrant exercise price
(per share) |
Warrant expiration date | |||||||||||||||||
Warrant issued in conjunction with October 2016 debt financing ("Hale warrant") | 314,286 | $ | 2.80 | October 21, 2026 | ||||||||||||||||
Warrant issued to sales partner, iStudy Co., Ltd. ("iStudy warrant") | 100,000 | $ | 2.43 | August 31, 2028 | ||||||||||||||||
Total warrants outstanding | 414,286 |
Fair Value Measurements Using | |||||||||||||||||||||||
Total Fair
Value at September 30, 2020 |
Quoted Prices in
Active Markets (Level 1) |
Significant Other
Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Warrant liability - Hale | $ | 1,462 | $ | — | $ | — | $ | 1,462 | |||||||||||||||
Warrant liability - iStudy | 352 | — | — | 352 | |||||||||||||||||||
Warrant liability | $ | 1,814 | $ | — | $ | — | $ | 1,814 | |||||||||||||||
Derivative liability | $ | 36 | $ | — | $ | — | $ | 36 | |||||||||||||||
Total | $ | 1,850 | $ | — | $ | — | $ | 1,850 |
Fair Value Measurements Using | |||||||||||||||||||||||
Total Fair
Value at December 31, 2019 |
Quoted Prices in
Active Markets (Level 1) |
Significant Other
Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Warrant liability - ESW | $ | 2,149 | $ | — | $ | — | $ | 2,149 | |||||||||||||||
Warrant liability - Hale | 645 | — | — | 645 | |||||||||||||||||||
Warrant liability - iStudy | 145 | — | — | 145 | |||||||||||||||||||
Total | $ | 2,939 | $ | — | $ | — | $ | 2,939 |
September 30, 2020 | |||||
Probability-weighted timing of change in control | 5.1 years |
Warrant liability | Derivative liability | Total | ||||||||||||||||||
Balance at December 31, 2019 | $ | 2,939 | $ | — | $ | 2,939 | ||||||||||||||
Cancellation of ESW warrant liability (Note 3) | (1,855) | — | (1,855) | |||||||||||||||||
Issuance of derivative liability upon cancellation of ESW warrant | — | 140 | 140 | |||||||||||||||||
Change in fair value | 730 | (104) | 626 | |||||||||||||||||
Balance at September 30, 2020 | $ | 1,814 | $ | 36 | $ | 1,850 |
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Software licenses and appliances | $ | 548 | $ | 1,962 | $ | 6,149 | $ | 3,656 | |||||||||||||||
Service | |||||||||||||||||||||||
Subscription, maintenance and support | 5,349 | 4,166 | 14,182 | 13,883 | |||||||||||||||||||
Professional services and other | 733 | 543 | 1,860 | 1,595 | |||||||||||||||||||
Total service | 6,082 | 4,709 | 16,042 | 15,478 | |||||||||||||||||||
Total revenues | $ | 6,630 | $ | 6,671 | $ | 22,191 | $ | 19,134 |
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
North America | $ | 4,238 | $ | 4,916 | $ | 15,801 | $ | 12,416 | |||||||||||||||
Europe | 2,106 | 1,505 | 5,596 | 5,650 | |||||||||||||||||||
Asia | 286 | 250 | 794 | 1,068 | |||||||||||||||||||
Total | $ | 6,630 | $ | 6,671 | $ | 22,191 | $ | 19,134 |
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Stock options | 457,692 | 14,000 | 457,692 | 39,000 | |||||||||||||||||||
Restricted stock awards and restricted stock units | 511,392 | 25,900 | 564,992 | 222,588 | |||||||||||||||||||
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
|||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Stock-based compensation cost, before income tax benefit: | ||||||||||||||||||||||||||
Stock options | $ | 119 | $ | 85 | $ | 257 | $ | 255 | ||||||||||||||||||
Restricted stock awards and restricted stock units | 92 | 134 | 363 | 384 | ||||||||||||||||||||||
Performance stock units | — | — | — | 5 | ||||||||||||||||||||||
Total stock-based compensation | $ | 211 | $ | 219 | $ | 620 | $ | 644 | ||||||||||||||||||
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
|||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
Stock-based compensation cost included in: | ||||||||||||||||||||||||||
Cost of revenues | $ | 12 | $ | 6 | $ | 22 | $ | 20 | ||||||||||||||||||
Operating expenses | 199 | 213 | 598 | 624 | ||||||||||||||||||||||
Total stock-based compensation | $ | 211 | $ | 219 | $ | 620 | $ | 644 |
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Net loss per share – basic | |||||||||||||||||||||||
Net loss | $ | (1,858) | $ | (221) | $ | (5,222) | $ | (4,772) | |||||||||||||||
Weighted average shares outstanding | 13,579 | 9,913 | 13,555 | 9,822 | |||||||||||||||||||
Net loss per share – basic | $ | (0.14) | $ | (0.02) | $ | (0.39) | $ | (0.49) | |||||||||||||||
Net loss per share – diluted | |||||||||||||||||||||||
Loss attributable to common shareholders: | |||||||||||||||||||||||
Net loss | $ | (1,858) | $ | (221) | $ | (5,222) | $ | (4,772) | |||||||||||||||
Numerator effect of dilutive securities | |||||||||||||||||||||||
Warrants | — | (973) | (294) | — | |||||||||||||||||||
Loss attributable to common shareholders | $ | (1,858) | $ | (1,194) | $ | (5,516) | $ | (4,772) | |||||||||||||||
Weighted average shares outstanding – diluted: | |||||||||||||||||||||||
Weighted average shares outstanding – basic | 13,579 | 9,913 | 13,555 | 9,822 | |||||||||||||||||||
Denominator effect of dilutive securities | |||||||||||||||||||||||
Warrants | — | 500 | 20 | — | |||||||||||||||||||
Diluted potential common shares | — | 500 | 20 | — | |||||||||||||||||||
Weighted average shares outstanding – diluted | 13,579 | 10,413 | 13,575 | 9,822 | |||||||||||||||||||
Net loss per share – diluted | $ | (0.14) | $ | (0.11) | $ | (0.41) | $ | (0.49) |
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
Stock options | 1,218 | 1,268 | 1,110 | 1,337 | |||||||||||||||||||
Warrants | 414 | — | 414 | 1,339 | |||||||||||||||||||
Restricted stock units | 282 | 109 | 204 | 124 | |||||||||||||||||||
Total anti-dilutive | 1,914 | 1,377 | 1,728 | 2,800 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||
Percentage of Revenues | Percent Increase (Decrease) | Percentage of Revenues | Percent Increase (Decrease) | ||||||||||||||||||||||||||||||||
2020 | 2019 | 2019 to 2020 | 2020 | 2019 | 2019 to 2020 | ||||||||||||||||||||||||||||||
Revenues | 100.0 | % | 100.0 | % | (1) | % | 100.0 | % | 100.0 | % | 16 | % | |||||||||||||||||||||||
Cost of revenues | (24.9) | (30.2) | (18) | (30.1) | (26.7) | 31 | |||||||||||||||||||||||||||||
Gross profit | 75.1 | 69.8 | 7 | 69.9 | 73.3 | 11 | |||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
Research and development | 31.8 | 27.7 | 14 | 27.0 | 28.0 | 11 | |||||||||||||||||||||||||||||
Sales and marketing | 30.8 | 31.2 | (2) | 29.0 | 34.7 | (3) | |||||||||||||||||||||||||||||
General and administrative | 32.3 | 25.1 | 28 | 31.8 | 26.1 | 41 | |||||||||||||||||||||||||||||
Amortization of purchased intangibles | 2.5 | 2.5 | (2) | 2.2 | 3.2 | (16) | |||||||||||||||||||||||||||||
Total operating expenses | 97.4 | 86.5 | 12 | 90.0 | 92.0 | 13 | |||||||||||||||||||||||||||||
Operating loss | (22.3) | (16.7) | 33 | (20.1) | (18.7) | 25 | |||||||||||||||||||||||||||||
Other expense, net | (6.3) | 11.6 | (154) | (4.1) | (6.9) | (31) | |||||||||||||||||||||||||||||
Loss before income taxes | (28.6) | (5.1) | 461 | (24.2) | (25.6) | 9 | |||||||||||||||||||||||||||||
Income tax benefit | (0.6) | (1.8) | (64) | (0.7) | (0.7) | 11 | |||||||||||||||||||||||||||||
Net loss | (28.0) | % | (3.3) | % | 741 | % | (23.5) | % | (24.9) | % | 9 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
Increase (Decrease) | Percent Increase (Decrease) | Increase | Percent Increase | ||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2019 to 2020 | 2019 to 2020 | 2020 | 2019 | 2019 to 2020 | 2019 to 2020 | ||||||||||||||||||||||||||||||||||||||||
Software licenses and appliances | $ | 548 | $ | 1,962 | $ | (1,414) | (72) | % | $ | 6,149 | $ | 3,656 | $ | 2,493 | 68 | % | |||||||||||||||||||||||||||||||
Service | |||||||||||||||||||||||||||||||||||||||||||||||
Subscription, maintenance and support | 5,349 | 4,166 | 1,183 | 28 | 14,182 | 13,883 | 299 | 2 | |||||||||||||||||||||||||||||||||||||||
Professional services and other | 733 | 543 | 190 | 35 | 1,860 | 1,595 | 265 | 17 | |||||||||||||||||||||||||||||||||||||||
Total service | 6,082 | 4,709 | 1,373 | 29 | 16,042 | 15,478 | 564 | 4 | |||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 6,630 | $ | 6,671 | $ | (41) | (1) | % | $ | 22,191 | $ | 19,134 | $ | 3,057 | 16 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) | Percent Increase (Decrease) | Increase (Decrease) | Percent Increase (Decrease) | ||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2019 to 2020 | 2019 to 2020 | 2020 | 2019 | 2019 to 2020 | 2019 to 2020 | ||||||||||||||||||||||||||||||||||||||||
Gross profit: | |||||||||||||||||||||||||||||||||||||||||||||||
Software licenses and appliances | $ | 329 | $ | 1,243 | $ | (914) | (74) | % | $ | 3,805 | $ | 2,290 | $ | 1,515 | 66 | % | |||||||||||||||||||||||||||||||
Service | 4,647 | 3,415 | 1,232 | 36 | 11,705 | 11,731 | (26) | — | |||||||||||||||||||||||||||||||||||||||
Total gross profit | $ | 4,976 | $ | 4,658 | $ | 318 | 7 | % | $ | 15,510 | $ | 14,021 | $ | 1,489 | 11 | % | |||||||||||||||||||||||||||||||
Gross margin: | |||||||||||||||||||||||||||||||||||||||||||||||
Software licenses and appliances | 60.0 | % | 63.4 | % | (3.4) | % | 61.9 | % | 62.6 | % | (0.7) | % | |||||||||||||||||||||||||||||||||||
Service | 76.4 | % | 72.5 | % | 3.9 | % | 73.0 | % | 75.8 | % | (2.8) | % | |||||||||||||||||||||||||||||||||||
Total gross margin | 75.1 | % | 69.8 | % | 5.3 | % | 69.9 | % | 73.3 | % | (3.4) | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
Increase (Decrease) | Percent Increase (Decrease) | Increase (Decrease) | Percent Increase (Decrease) | ||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2019 to 2020 | 2019 to 2020 | 2020 | 2019 | 2019 to 2020 | 2019 to 2020 | ||||||||||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
Research and development | $ | 2,105 | $ | 1,849 | $ | 256 | 14 | % | $ | 5,973 | $ | 5,361 | $ | 612 | 11 | % | |||||||||||||||||||||||||||||||
Sales and marketing | 2,044 | 2,083 | (39) | (2) | 6,443 | 6,647 | (204) | (3) | |||||||||||||||||||||||||||||||||||||||
General and administrative | 2,142 | 1,673 | 469 | 28 | 7,055 | 4,998 | 2,057 | 41 | |||||||||||||||||||||||||||||||||||||||
Amortization of purchased intangibles | 165 | 168 | (3) | (2) | 492 | 587 | (95) | (16) | |||||||||||||||||||||||||||||||||||||||
Total operating expenses | $ | 6,456 | $ | 5,773 | $ | 683 | 12 | % | $ | 19,963 | $ | 17,593 | $ | 2,370 | 13 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
Increase | Percent Increase | Increase (Decrease) | Percent Increase (Decrease) | ||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2019 to 2020 | 2019 to 2020 | 2020 | 2019 | 2019 to 2020 | 2019 to 2020 | ||||||||||||||||||||||||||||||||||||||||
Compensation and employee-related | $ | 1,420 | $ | 1,239 | $ | 181 | 15 | % | $ | 4,121 | $ | 3,653 | $ | 468 | 13 | % | |||||||||||||||||||||||||||||||
Overhead and other expenses | 465 | 464 | 1 | — | 1,266 | 1,184 | 82 | 7 | |||||||||||||||||||||||||||||||||||||||
Outside services and consulting | 183 | 113 | 70 | 62 | 499 | 423 | 76 | 18 | |||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 1 | — | 1 | n/m | 3 | 2 | 1 | 50 | |||||||||||||||||||||||||||||||||||||||
Equity-based compensation | 36 | 33 | 3 | 9 | 84 | 99 | (15) | (15) | |||||||||||||||||||||||||||||||||||||||
Total research and development expenses | $ | 2,105 | $ | 1,849 | $ | 256 | 14 | % | $ | 5,973 | $ | 5,361 | $ | 612 | 11 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
Increase (Decrease) | Percent Increase (Decrease) | Increase (Decrease) | Percent Increase (Decrease) | ||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2019 to 2020 | 2019 to 2020 | 2020 | 2019 | 2019 to 2020 | 2019 to 2020 | ||||||||||||||||||||||||||||||||||||||||
Compensation and employee-related | $ | 1,182 | $ | 754 | $ | 428 | 57 | % | $ | 2,757 | $ | 2,212 | $ | 545 | 25 | % | |||||||||||||||||||||||||||||||
Overhead and other expenses | 230 | 268 | (38) | (14) | 790 | 848 | (58) | (7) | |||||||||||||||||||||||||||||||||||||||
Outside services and consulting | 419 | 417 | 2 | — | 1,253 | 1,222 | 31 | 3 | |||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 68 | 82 | (14) | (17) | 201 | 236 | (35) | (15) | |||||||||||||||||||||||||||||||||||||||
Equity-based compensation | 130 | 152 | (22) | (14) | 431 | 480 | (49) | (10) | |||||||||||||||||||||||||||||||||||||||
Transaction-related expenses | 113 | — | 113 | n/m | 1,623 | — | 1,623 | n/m | |||||||||||||||||||||||||||||||||||||||
Total general and administrative expenses | $ | 2,142 | $ | 1,673 | $ | 469 | 28 | % | $ | 7,055 | $ | 4,998 | $ | 2,057 | 41 | % |
Three Months Ended
September 30, |
Nine Months Ended
September 30, |
||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of BriefCam, Ltd. | $ | — | $ | 41 | $ | — | $ | 41 | |||||||||||||||||||||||||||||||||||||||
Interest expense, net | (33) | (235) | $ | (38) | $ | (654) | |||||||||||||||||||||||||||||||||||||||||
Decrease (increase) in fair value of derivative liability | (1) | — | 104 | — | |||||||||||||||||||||||||||||||||||||||||||
Decrease (increase) in fair value of warrant liability | (332) | 973 | (730) | (752) | |||||||||||||||||||||||||||||||||||||||||||
Other, net | (55) | (3) | (252) | 32 | |||||||||||||||||||||||||||||||||||||||||||
Total other income (expense), net | $ | (421) | $ | 776 | $ | (916) | $ | (1,333) |
September 30,
2020 |
December 31,
2019 |
||||||||||
Cash and cash equivalents | $ | 11,352 | $ | 10,639 | |||||||
Working capital | $ | (504) | $ | 829 | |||||||
Financing obligations | $ | 141 | $ | 240 | |||||||
Operating lease liabilities | 1,764 | 2,174 | |||||||||
Note payable | 1,767 | — | |||||||||
Financing obligations, operating lease liabilities and note payable | $ | 3,672 | $ | 2,414 |
Nine Months Ended
September 30, |
|||||||||||
2020 | 2019 | ||||||||||
Cash flows provided by (used in): | |||||||||||
Operating activities | $ | 1,137 | $ | (670) | |||||||
Investing activities | (68) | (96) | |||||||||
Financing activities | (208) | (250) | |||||||||
Effect of exchange rate changes on cash | (148) | (95) | |||||||||
Net change in cash and cash equivalents | $ | 713 | $ | (1,111) |
Monthly Period |
Total Number of
Shares Purchased |
Average Price
Paid per Share |
Total Number of Shares Purchased as part of Publicly Announced Plans or Programs | Maximum Number of Shares that may yet be Purchased under the Plans or Programs (at end of period) | ||||||||||||||||||||||
July 2020 | 194 | $4.90 | — | 778,365 | ||||||||||||||||||||||
August 2020 | 90,656 | $5.31 | — | 778,365 | ||||||||||||||||||||||
September 2020 | 36 | $5.22 | — | 778,365 |
QUMU CORPORATION | ||||||||||||||
Registrant | ||||||||||||||
Date: | November 3, 2020 | By: | /s/ TJ Kennedy | |||||||||||
TJ Kennedy | ||||||||||||||
President and Chief Executive Officer | ||||||||||||||
(Principal Executive Officer) | ||||||||||||||
Date: | November 3, 2020 | By: | /s/ David G. Ristow | |||||||||||
David G. Ristow | ||||||||||||||
Chief Financial Officer | ||||||||||||||
(Principal Financial Officer) | ||||||||||||||
(Principal Accounting Officer) |
OPTIONEE:
|
TJ Kennedy
|
||||
GRANT DATE:
|
July 22, 2020
|
||||
NUMBER OF OPTION SHARES:
|
457,692 shares of common stock
|
||||
OPTION PRICE PER SHARE:
|
$4.90 per Share
|
||||
EXPIRATION DATE:
|
July 22, 2027
|
||||
COMPANY: |
QUMU CORPORATION
|
|||||||
By: | /s/ David G. Ristow | |||||||
David G. Ristow | ||||||||
Chief Financial Officer | ||||||||
|
||||||||
OPTIONEE:
|
/s/ TJ Kennedy | |||||||
TJ Kennedy |
Date: | November 3, 2020 | /s/ TJ Kennedy | |||||||||
TJ Kennedy | |||||||||||
President and Chief Executive Officer |
Date: | November 3, 2020 | /s/ David G. Ristow | |||||||||
David G. Ristow | |||||||||||
Chief Financial Officer |
Date: | November 3, 2020 | /s/ TJ Kennedy | |||||||||
TJ Kennedy | |||||||||||
President and Chief Executive Officer | |||||||||||
Date: | November 3, 2020 | /s/ David G. Ristow | |||||||||
David G. Ristow | |||||||||||
Chief Financial Officer |