Minnesota | 41-1577970 | |||||||
(State or other jurisdiction of
incorporation or organization) |
(I.R.S. Employer
Identification No.) |
|||||||
400 S 4th St, | Suite 401-412 | |||||||
Minneapolis, | Minnesota | 55415 | ||||||
(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 | |||||||
June 30,
2021 |
December 31,
2020 |
||||||||||
Assets | (unaudited) | ||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 21,328 | $ | 11,878 | |||||||
Receivables, net of allowance for credit losses of $42 and $42, respectively
|
3,833 | 5,612 | |||||||||
Contract assets | 229 | 467 | |||||||||
Income tax receivable | 280 | 479 | |||||||||
Prepaid expenses and other current assets | 2,462 | 2,302 | |||||||||
Total current assets | 28,132 | 20,738 | |||||||||
Property and equipment, net of accumulated depreciation of $1,458 and $1,376, respectively
|
431 | 249 | |||||||||
Right of use assets – operating leases | 242 | 332 | |||||||||
Intangible assets, net | 1,776 | 2,143 | |||||||||
Goodwill | 7,583 | 7,455 | |||||||||
Deferred income taxes, non-current | 19 | 19 | |||||||||
Other assets, non-current | 439 | 490 | |||||||||
Total assets | $ | 38,622 | $ | 31,426 | |||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and other accrued liabilities | $ | 2,714 | $ | 2,705 | |||||||
Accrued compensation | 842 | 2,145 | |||||||||
Deferred revenue | 10,434 | 12,918 | |||||||||
Operating lease liabilities | 711 | 735 | |||||||||
Financing obligations | 206 | 406 | |||||||||
Note payable | — | 1,800 | |||||||||
Derivative liability | — | 37 | |||||||||
Warrant liability | 975 | 2,910 | |||||||||
Total current liabilities | 15,882 | 23,656 | |||||||||
Long-term liabilities: | |||||||||||
Deferred revenue, non-current | 2,306 | 3,488 | |||||||||
Income taxes payable, non-current | 619 | 608 | |||||||||
Operating lease liabilities, non-current | 258 | 554 | |||||||||
Financing obligations, non-current | 139 | 75 | |||||||||
Other liabilities, non-current | 160 | 160 | |||||||||
Total long-term liabilities | 3,482 | 4,885 | |||||||||
Total liabilities | 19,364 | 28,541 | |||||||||
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 17,624,041
and 13,780,823, respectively
|
176 | 138 | |||||||||
Additional paid-in capital | 104,472 | 79,489 | |||||||||
Accumulated deficit | (83,099) | (74,328) | |||||||||
Accumulated other comprehensive loss | (2,291) | (2,414) | |||||||||
Total stockholders’ equity | 19,258 | 2,885 | |||||||||
Total liabilities and stockholders’ equity | $ | 38,622 | $ | 31,426 |
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Software licenses and appliances | $ | 138 | $ | 4,061 | $ | 246 | $ | 5,601 | |||||||||||||||
Service | 5,729 | 5,273 | 11,441 | 9,960 | |||||||||||||||||||
Total revenues | 5,867 | 9,334 | 11,687 | 15,561 | |||||||||||||||||||
Cost of revenues: | |||||||||||||||||||||||
Software licenses and appliances | 63 | 1,477 | 127 | 2,125 | |||||||||||||||||||
Service | 1,486 | 1,463 | 2,989 | 2,902 | |||||||||||||||||||
Total cost of revenues | 1,549 | 2,940 | 3,116 | 5,027 | |||||||||||||||||||
Gross profit | 4,318 | 6,394 | 8,571 | 10,534 | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development | 2,184 | 2,088 | 4,214 | 3,868 | |||||||||||||||||||
Sales and marketing | 5,173 | 2,181 | 9,649 | 4,399 | |||||||||||||||||||
General and administrative | 2,142 | 2,320 | 4,669 | 4,913 | |||||||||||||||||||
Amortization of purchased intangibles | 163 | 163 | 325 | 327 | |||||||||||||||||||
Total operating expenses | 9,662 | 6,752 | 18,857 | 13,507 | |||||||||||||||||||
Operating loss | (5,344) | (358) | (10,286) | (2,973) | |||||||||||||||||||
Other income (expense): | |||||||||||||||||||||||
Interest expense, net | (15) | (22) | (69) | (5) | |||||||||||||||||||
Decrease in fair value of derivative liability | — | 105 | 37 | 105 | |||||||||||||||||||
Decrease (increase) in fair value of warrant liability | 1,018 | (434) | 1,375 | (398) | |||||||||||||||||||
Other, net | (89) | (37) | (27) | (197) | |||||||||||||||||||
Total other income (expense), net | 914 | (388) | 1,316 | (495) | |||||||||||||||||||
Loss before income taxes | (4,430) | (746) | (8,970) | (3,468) | |||||||||||||||||||
Income tax benefit | (109) | (54) | (199) | (104) | |||||||||||||||||||
Net loss | $ | (4,321) | $ | (692) | $ | (8,771) | $ | (3,364) | |||||||||||||||
Net loss per share – basic: | |||||||||||||||||||||||
Net loss per share – basic | $ | (0.24) | $ | (0.05) | $ | (0.51) | $ | (0.25) | |||||||||||||||
Weighted average shares outstanding – basic | 17,741 | 13,534 | 17,096 | 13,543 | |||||||||||||||||||
Net loss per share – diluted: | |||||||||||||||||||||||
Loss attributable to common shareholders | $ | (5,339) | $ | (820) | $ | (10,146) | $ | (3,658) | |||||||||||||||
Net loss per share – diluted | $ | (0.30) | $ | (0.06) | $ | (0.59) | $ | (0.27) | |||||||||||||||
Weighted average shares outstanding – diluted | 17,899 | 13,538 | 17,299 | 13,573 |
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net loss | $ | (4,321) | $ | (692) | $ | (8,771) | $ | (3,364) | |||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Net change in foreign currency translation adjustments | 144 | (18) | 123 | (498) | |||||||||||||||||||
Total other comprehensive income (loss) | 144 | (18) | 123 | (498) | |||||||||||||||||||
Total comprehensive loss | $ | (4,177) | $ | (710) | $ | (8,648) | $ | (3,862) |
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 | ||||||||||||||||||||||||
Common Stock |
Additional
Paid-in Capital |
Accumulated
Deficit |
Accumulated
Other Comprehensive Loss |
Total | |||||||||||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | 13,780 | $ | 138 | $ | 79,489 | $ | (74,328) | $ | (2,414) | $ | 2,885 | ||||||||||||||||||||||||
Net loss | — | — | — | (4,450) | — | (4,450) | |||||||||||||||||||||||||||||
Other comprehensive loss, net of taxes | — | — | — | — | (21) | (21) | |||||||||||||||||||||||||||||
Issuance of common stock | 3,709 | 37 | 23,048 | — | — | 23,085 | |||||||||||||||||||||||||||||
Warrant exercise | 50 | — | 560 | — | — | 560 | |||||||||||||||||||||||||||||
Issuance of stock under employee stock plan, net of forfeitures | 52 | 1 | 141 | — | — | 142 | |||||||||||||||||||||||||||||
Redemption of stock related to tax withholdings on employee stock plan issuances | — | — | (3) | — | — | (3) | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | 589 | — | — | 589 | |||||||||||||||||||||||||||||
Balance at March 31, 2021 | 17,591 | $ | 176 | $ | 103,824 | $ | (78,778) | $ | (2,435) | $ | 22,787 | ||||||||||||||||||||||||
Net loss | — | — | — | (4,321) | — | (4,321) | |||||||||||||||||||||||||||||
Other comprehensive loss, net of taxes | — | — | — | — | 144 | 144 | |||||||||||||||||||||||||||||
Issuance of stock under employee stock plan, net of forfeitures | 34 | — | 85 | — | — | 85 | |||||||||||||||||||||||||||||
Redemption of stock related to tax withholdings on employee stock plan issuances | (1) | — | (3) | — | — | (3) | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | 566 | — | — | 566 | |||||||||||||||||||||||||||||
Balance at June 30, 2021 | 17,624 | $ | 176 | $ | 104,472 | $ | (83,099) | $ | (2,291) | $ | 19,258 | ||||||||||||||||||||||||
Six Months Ended
June 30, |
|||||||||||
2021 | 2020 | ||||||||||
Operating activities: | |||||||||||
Net loss | $ | (8,771) | $ | (3,364) | |||||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||||
Depreciation and amortization | 492 | 618 | |||||||||
Loss on disposal of property and equipment | 3 | — | |||||||||
Stock-based compensation | 1,155 | 409 | |||||||||
Accretion of debt discount and issuance costs | 33 | 20 | |||||||||
Decrease in fair value of derivative liability | (37) | (105) | |||||||||
Increase (decrease) in fair value of warrant liability | (1,375) | 398 | |||||||||
Deferred income taxes | — | 9 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Receivables | 1,802 | (3,685) | |||||||||
Contract assets | 238 | 140 | |||||||||
Income taxes receivable / payable | 221 | (184) | |||||||||
Prepaid expenses and other assets | (105) | 394 | |||||||||
Accounts payable and other accrued liabilities | (242) | 1,030 | |||||||||
Accrued compensation | (1,305) | 177 | |||||||||
Deferred revenue | (3,724) | 3,709 | |||||||||
Other non-current liabilities | — | 151 | |||||||||
Net cash used in operating activities | (11,615) | (283) | |||||||||
Investing activities: | |||||||||||
Purchases of property and equipment | (216) | (29) | |||||||||
Net cash used in investing activities | (216) | (29) | |||||||||
Financing activities: | |||||||||||
Principal payments on financing obligations | (219) | (185) | |||||||||
Principal payment on line of credit | (1,840) | — | |||||||||
Proceeds from line of credit | 1,840 | — | |||||||||
Principal payment on term loan | (1,833) | — | |||||||||
Net proceeds from common stock issuance | 23,085 | — | |||||||||
Proceeds from issuance of common stock under employee stock plans | 226 | — | |||||||||
Common stock repurchases to settle employee withholding liability | (6) | (54) | |||||||||
Net cash provided by (used in) financing activities | 21,253 | (239) | |||||||||
Effect of exchange rate changes on cash | 28 | (201) | |||||||||
Net increase (decrease) in cash and cash equivalents | 9,450 | (752) | |||||||||
Cash and cash equivalents, beginning of period | 11,878 | 10,639 | |||||||||
Cash and cash equivalents, end of period | $ | 21,328 | $ | 9,887 | |||||||
Supplemental disclosures of net cash paid (received) during the period: | |||||||||||
Income taxes, net | $ | (413) | $ | 27 | |||||||
Interest, net | $ | 31 | $ | 7 | |||||||
Non-cash financing activity: | |||||||||||
Issuance of note payable and derivative liability for cancellation of warrant | $ | — | $ | 1,855 | |||||||
Reclassification from warrant liability to additional paid-in capital for non-cash exercise | $ | 560 | $ | — | |||||||
June 30, 2021 | |||||||||||||||||||||||
Customer Relationships | Developed Technology | Trademarks / Trade Names | Total | ||||||||||||||||||||
Original cost | $ | 4,978 | $ | 8,318 | $ | 2,185 | $ | 15,481 | |||||||||||||||
Accumulated amortization | (4,140) | (8,264) | (1,301) | (13,705) | |||||||||||||||||||
Intangibles assets, net | $ | 838 | $ | 54 | $ | 884 | $ | 1,776 |
December 31, 2020 | |||||||||||||||||||||||
Customer Relationships | Developed Technology | Trademarks / Trade Names | Total | ||||||||||||||||||||
Original cost | $ | 4,945 | $ | 8,256 | $ | 2,184 | $ | 15,385 | |||||||||||||||
Accumulated amortization | (3,861) | (8,151) | (1,230) | (13,242) | |||||||||||||||||||
Intangibles assets, net | $ | 1,084 | $ | 105 | $ | 954 | $ | 2,143 |
Six Months Ended
June 30, 2021 |
|||||
Balance, beginning of period | $ | 2,143 | |||
Amortization expense | (379) | ||||
Currency translation | 12 | ||||
Balance, end of period | $ | 1,776 |
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Amortization expense associated with the developed technology included in cost of revenues | $ | 27 | $ | 68 | $ | 54 | $ | 140 | |||||||||||||||
Amortization expense associated with other acquired intangible assets included in operating expenses | 163 | 163 | 325 | 327 | |||||||||||||||||||
Total amortization expense | $ | 190 | $ | 231 | $ | 379 | $ | 467 |
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Operating lease cost | $ | 46 | $ | 98 | $ | 91 | $ | 194 | |||||||||||||||
Finance lease cost: | |||||||||||||||||||||||
Amortization of right of use assets | 26 | 31 | 55 | 62 | |||||||||||||||||||
Interest on lease liabilities | 3 | 2 | 5 | 4 | |||||||||||||||||||
Total finance cost | 29 | 33 | 60 | 66 | |||||||||||||||||||
Total lease cost | $ | 75 | $ | 131 | $ | 151 | $ | 260 |
Operating
leases |
Finance
leases |
||||||||||
Remainder of 2021 | $ | 385 | $ | 64 | |||||||
2022 | 627 | 63 | |||||||||
2023 | 21 | 58 | |||||||||
2024 | — | 57 | |||||||||
2025 | — | 3 | |||||||||
Total undiscounted lease payments | 1,033 | 245 | |||||||||
Less amount representing interest | (64) | (19) | |||||||||
Present value of lease liabilities | $ | 969 | $ | 226 |
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") | 238,583 | $ | 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 | 338,583 |
Fair Value Measurements Using | |||||||||||||||||||||||
Total Fair
Value at June 30, 2021 |
Quoted Prices in
Active Markets (Level 1) |
Significant Other
Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Warrant liability - Hale | $ | 780 | $ | — | $ | — | $ | 780 | |||||||||||||||
Warrant liability - iStudy | 195 | — | — | 195 | |||||||||||||||||||
Warrant liability | $ | 975 | $ | — | $ | — | $ | 975 | |||||||||||||||
Derivative liability | — | — | — | — | |||||||||||||||||||
Total | $ | 975 | $ | — | $ | — | $ | 975 |
Fair Value Measurements Using | |||||||||||||||||||||||
Total Fair
Value at December 31, 2020 |
Quoted Prices in
Active Markets (Level 1) |
Significant Other
Observable Inputs (Level 2) |
Significant
Unobservable Inputs (Level 3) |
||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Warrant liability - Hale | $ | 2,245 | $ | — | $ | — | $ | 2,245 | |||||||||||||||
Warrant liability - iStudy | 665 | — | — | 665 | |||||||||||||||||||
Warrant liability | $ | 2,910 | $ | — | $ | — | $ | 2,910 | |||||||||||||||
Derivative liability | 37 | — | — | 37 | |||||||||||||||||||
Total | $ | 2,947 | $ | — | $ | — | $ | 2,947 |
June 30, 2021 | |||||
Probability-weighted timing of change in control | 4.9 years |
Warrant liability | Derivative liability | Total | ||||||||||||||||||
Balance at December 31, 2020 | $ | 2,910 | $ | 37 | $ | 2,947 | ||||||||||||||
Reduction in warrant liability for partial exercise of Hale warrant | (560) | — | (560) | |||||||||||||||||
Change in fair value | (1,375) | (37) | (1,412) | |||||||||||||||||
Balance at June 30, 2021 | $ | 975 | $ | — | $ | 975 |
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Software licenses and appliances | $ | 138 | $ | 4,061 | $ | 246 | $ | 5,601 | |||||||||||||||
Service | |||||||||||||||||||||||
Subscription, maintenance and support | 5,082 | 4,673 | 10,061 | 8,833 | |||||||||||||||||||
Professional services and other | 647 | 600 | 1,380 | 1,127 | |||||||||||||||||||
Total service | 5,729 | 5,273 | 11,441 | 9,960 | |||||||||||||||||||
Total revenues | $ | 5,867 | $ | 9,334 | $ | 11,687 | $ | 15,561 |
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
North America | $ | 3,710 | $ | 7,513 | $ | 7,648 | $ | 11,563 | |||||||||||||||
Europe | 303 | 1,616 | 1,924 | 3,490 | |||||||||||||||||||
Asia | 1,854 | 205 | 2,115 | 508 | |||||||||||||||||||
Total | $ | 5,867 | $ | 9,334 | $ | 11,687 | $ | 15,561 |
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Restricted stock awards and restricted stock units | 253,802 | — | 352,302 | 53,600 | |||||||||||||||||||
Performance stock units | 140,060 | — | 303,700 | — |
Three Months Ended
June 30, |
Six Months Ended
June 30, |
|||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Stock-based compensation cost, before income tax benefit: | ||||||||||||||||||||||||||
Stock options | $ | 182 | $ | 69 | $ | 353 | $ | 138 | ||||||||||||||||||
Restricted stock awards and restricted stock units | 384 | 95 | 802 | 271 | ||||||||||||||||||||||
Total stock-based compensation | $ | 566 | $ | 164 | $ | 1,155 | $ | 409 | ||||||||||||||||||
Three Months Ended
June 30, |
Six Months Ended
June 30, |
|||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Stock-based compensation cost included in: | ||||||||||||||||||||||||||
Cost of revenues | $ | 17 | $ | 5 | $ | 32 | $ | 10 | ||||||||||||||||||
Operating expenses | 549 | 159 | 1,123 | 399 | ||||||||||||||||||||||
Total stock-based compensation | $ | 566 | $ | 164 | $ | 1,155 | $ | 409 |
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net loss per share – basic | |||||||||||||||||||||||
Net loss | $ | (4,321) | $ | (692) | $ | (8,771) | $ | (3,364) | |||||||||||||||
Weighted average shares outstanding | 17,741 | 13,534 | 17,096 | 13,543 | |||||||||||||||||||
Net loss per share – basic | $ | (0.24) | $ | (0.05) | $ | (0.51) | $ | (0.25) | |||||||||||||||
Net loss per share – diluted | |||||||||||||||||||||||
Loss attributable to common shareholders: | |||||||||||||||||||||||
Net loss | $ | (4,321) | $ | (692) | $ | (8,771) | $ | (3,364) | |||||||||||||||
Numerator effect of dilutive securities | |||||||||||||||||||||||
Warrants | (1,018) | (128) | (1,375) | (294) | |||||||||||||||||||
Loss attributable to common shareholders | $ | (5,339) | $ | (820) | $ | (10,146) | $ | (3,658) | |||||||||||||||
Weighted average shares outstanding – diluted: | |||||||||||||||||||||||
Weighted average shares outstanding – basic | 17,741 | 13,534 | 17,096 | 13,543 | |||||||||||||||||||
Denominator effect of dilutive securities | |||||||||||||||||||||||
Warrants | 158 | 4 | 203 | 30 | |||||||||||||||||||
Diluted potential common shares | 158 | 4 | 203 | 30 | |||||||||||||||||||
Weighted average shares outstanding – diluted | 17,899 | 13,538 | 17,299 | 13,573 | |||||||||||||||||||
Net loss per share – diluted | $ | (0.30) | $ | (0.06) | $ | (0.59) | $ | (0.27) |
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Stock options | 1,174 | 1,054 | 1,199 | 1,055 | |||||||||||||||||||
Warrants | — | 414 | — | 414 | |||||||||||||||||||
Restricted stock units | 476 | 172 | 505 | 164 | |||||||||||||||||||
Total anti-dilutive | 1,650 | 1,640 | 1,704 | 1,633 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||
Percentage of Revenues | Percent Increase (Decrease) | Percentage of Revenues | Percent Increase (Decrease) | ||||||||||||||||||||||||||||||||
2021 | 2020 | 2020 to 2021 | 2021 | 2020 | 2020 to 2021 | ||||||||||||||||||||||||||||||
Revenues | 100.0 | % | 100.0 | % | (37) | % | 100.0 | % | 100.0 | % | (25) | % | |||||||||||||||||||||||
Cost of revenues | (26.4) | (31.5) | (47) | (26.7) | (32.3) | (38) | |||||||||||||||||||||||||||||
Gross profit | 73.6 | 68.5 | (32) | 73.3 | 67.7 | (19) | |||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
Research and development | 37.2 | 22.4 | 5 | 36.1 | 24.8 | 9 | |||||||||||||||||||||||||||||
Sales and marketing | 88.2 | 23.4 | 137 | 82.5 | 28.3 | 119 | |||||||||||||||||||||||||||||
General and administrative | 36.5 | 24.8 | (8) | 39.9 | 31.6 | (5) | |||||||||||||||||||||||||||||
Amortization of purchased intangibles | 2.8 | 1.7 | — | 2.8 | 2.1 | (1) | |||||||||||||||||||||||||||||
Total operating expenses | 164.7 | 72.3 | 43 | 161.3 | 86.8 | 40 | |||||||||||||||||||||||||||||
Operating loss | (91.1) | (3.8) | 1,393 | (88.0) | (19.1) | 246 | |||||||||||||||||||||||||||||
Other income (expense), net | 15.6 | (4.2) | n/a | 11.3 | (3.2) | n/a | |||||||||||||||||||||||||||||
Loss before income taxes | (75.5) | (8.0) | 494 | (76.7) | (22.3) | 159 | |||||||||||||||||||||||||||||
Income tax benefit | (1.9) | (0.6) | 102 | (1.7) | (0.7) | 91 | |||||||||||||||||||||||||||||
Net loss | (73.6) | % | (7.4) | % | 524 | % | (75.0) | % | (21.6) | % | 161 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
Increase (Decrease) | Percent Increase (Decrease) |
Increase
(Decrease) |
Percent Increase
(Decrease) |
||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2020 to 2021 | 2020 to 2021 | 2021 | 2020 | 2020 to 2021 | 2020 to 2021 | ||||||||||||||||||||||||||||||||||||||||
Software licenses and appliances | $ | 138 | $ | 4,061 | $ | (3,923) | (97) | % | $ | 246 | $ | 5,601 | $ | (5,355) | (96) | % | |||||||||||||||||||||||||||||||
Service | |||||||||||||||||||||||||||||||||||||||||||||||
Subscription, maintenance and support | 5,082 | 4,673 | 409 | 9 | 10,061 | 8,833 | 1,228 | 14 | |||||||||||||||||||||||||||||||||||||||
Professional services and other | 647 | 600 | 47 | 8 | 1,380 | 1,127 | 253 | 22 | |||||||||||||||||||||||||||||||||||||||
Total service | 5,729 | 5,273 | 456 | 9 | 11,441 | 9,960 | 1,481 | 15 | |||||||||||||||||||||||||||||||||||||||
Total revenues | $ | 5,867 | $ | 9,334 | $ | (3,467) | (37) | % | $ | 11,687 | $ | 15,561 | $ | (3,874) | (25) | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) | Percent Increase (Decrease) | Increase (Decrease) | Percent Increase (Decrease) | ||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2020 to 2021 | 2020 to 2021 | 2021 | 2020 | 2020 to 2021 | 2020 to 2021 | ||||||||||||||||||||||||||||||||||||||||
Gross profit: | |||||||||||||||||||||||||||||||||||||||||||||||
Software licenses and appliances | $ | 75 | $ | 2,584 | $ | (2,509) | (97) | % | $ | 119 | $ | 3,476 | $ | (3,357) | (97) | % | |||||||||||||||||||||||||||||||
Service | 4,243 | 3,810 | 433 | 11 | 8,452 | 7,058 | 1,394 | 20 | |||||||||||||||||||||||||||||||||||||||
Total gross profit | $ | 4,318 | $ | 6,394 | $ | (2,076) | (32) | % | $ | 8,571 | $ | 10,534 | $ | (1,963) | (19) | % | |||||||||||||||||||||||||||||||
Gross margin: | |||||||||||||||||||||||||||||||||||||||||||||||
Software licenses and appliances | 54.3 | % | 63.6 | % | (9.3) | % | 48.4 | % | 62.1 | % | (13.7) | % | |||||||||||||||||||||||||||||||||||
Service | 74.1 | % | 72.3 | % | 1.8 | % | 73.9 | % | 70.9 | % | 3.0 | % | |||||||||||||||||||||||||||||||||||
Total gross margin | 73.6 | % | 68.5 | % | 5.1 | % | 73.3 | % | 67.7 | % | 5.6 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
Increase (Decrease) | Percent Increase (Decrease) | Increase (Decrease) | Percent Increase (Decrease) | ||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2020 to 2021 | 2020 to 2021 | 2021 | 2020 | 2020 to 2021 | 2020 to 2021 | ||||||||||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
Research and development | $ | 2,184 | $ | 2,088 | $ | 96 | 5 | % | $ | 4,214 | $ | 3,868 | $ | 346 | 9 | % | |||||||||||||||||||||||||||||||
Sales and marketing | 5,173 | 2,181 | 2,992 | 137 | 9,649 | 4,399 | 5,250 | 119 | |||||||||||||||||||||||||||||||||||||||
General and administrative | 2,142 | 2,320 | (178) | (8) | 4,669 | 4,913 | (244) | (5) | |||||||||||||||||||||||||||||||||||||||
Amortization of purchased intangibles | 163 | 163 | — | — | 325 | 327 | (2) | (1) | |||||||||||||||||||||||||||||||||||||||
Total operating expenses | $ | 9,662 | $ | 6,752 | $ | 2,910 | 43 | % | $ | 18,857 | $ | 13,507 | $ | 5,350 | 40 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
Increase
(Decrease) |
Percent Increase
(Decrease) |
Increase (Decrease) | Percent Increase (Decrease) | ||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2020 to 2021 | 2020 to 2021 | 2021 | 2020 | 2020 to 2021 | 2020 to 2021 | ||||||||||||||||||||||||||||||||||||||||
Compensation and employee-related | $ | 1,335 | $ | 1,453 | $ | (118) | (8) | % | $ | 2,603 | $ | 2,701 | $ | (98) | (4) | % | |||||||||||||||||||||||||||||||
Overhead and other expenses | 542 | 407 | 135 | 33 | 1,006 | 801 | 205 | 26 | |||||||||||||||||||||||||||||||||||||||
Outside services and consulting | 278 | 203 | 75 | 37 | 552 | 316 | 236 | 75 | |||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 1 | 2 | (1) | (50) | 2 | 2 | — | — | |||||||||||||||||||||||||||||||||||||||
Equity-based compensation | 28 | 23 | 5 | 22 | 51 | 48 | 3 | 6 | |||||||||||||||||||||||||||||||||||||||
Total research and development expenses | $ | 2,184 | $ | 2,088 | $ | 96 | 5 | % | $ | 4,214 | $ | 3,868 | $ | 346 | 9 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
Increase (Decrease) | Percent Increase (Decrease) | Increase (Decrease) | Percent Increase (Decrease) | ||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2020 to 2021 | 2020 to 2021 | 2021 | 2020 | 2020 to 2021 | 2020 to 2021 | ||||||||||||||||||||||||||||||||||||||||
Compensation and employee-related | $ | 3,538 | $ | 1,818 | $ | 1,720 | 95 | % | $ | 6,193 | $ | 3,589 | $ | 2,604 | 73 | % | |||||||||||||||||||||||||||||||
Overhead and other expenses | 322 | 190 | 132 | 69 | 564 | 427 | 137 | 32 | |||||||||||||||||||||||||||||||||||||||
Outside services and consulting | 1,148 | 145 | 1,003 | 692 | 2,633 | 317 | 2,316 | 731 | |||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 9 | 5 | 4 | 80 | 16 | 16 | — | — | |||||||||||||||||||||||||||||||||||||||
Equity-based compensation | 156 | 23 | 133 | 578 | 243 | 50 | 193 | 386 | |||||||||||||||||||||||||||||||||||||||
Total sales and marketing expenses | $ | 5,173 | $ | 2,181 | $ | 2,992 | 137 | % | $ | 9,649 | $ | 4,399 | $ | 5,250 | 119 | % |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
Increase (Decrease) | Percent Increase (Decrease) | Increase (Decrease) | Percent Increase (Decrease) | ||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2020 to 2021 | 2020 to 2021 | 2021 | 2020 | 2020 to 2021 | 2020 to 2021 | ||||||||||||||||||||||||||||||||||||||||
Compensation and employee-related | $ | 979 | $ | 877 | $ | 102 | 12 | % | $ | 1,892 | $ | 1,575 | $ | 317 | 20 | % | |||||||||||||||||||||||||||||||
Overhead and other expenses | 354 | 252 | 102 | 40 | 659 | 560 | 99 | 18 | |||||||||||||||||||||||||||||||||||||||
Outside services and consulting | 395 | 312 | 83 | 27 | 1,194 | 834 | 360 | 43 | |||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 49 | 67 | (18) | (27) | 95 | 133 | (38) | (29) | |||||||||||||||||||||||||||||||||||||||
Equity-based compensation | 365 | 113 | 252 | 223 | 829 | 301 | 528 | 175 | |||||||||||||||||||||||||||||||||||||||
Transaction-related expenses | — | 699 | (699) | (100) | — | 1,510 | (1,510) | (100) | |||||||||||||||||||||||||||||||||||||||
Total general and administrative expenses | $ | 2,142 | $ | 2,320 | $ | (178) | (8) | % | $ | 4,669 | $ | 4,913 | $ | (244) | (5) | % |
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | $ | (15) | $ | (22) | $ | (69) | $ | (5) | |||||||||||||||||||||||||||||||||||||||
Decrease in fair value of derivative liability | — | 105 | 37 | 105 | |||||||||||||||||||||||||||||||||||||||||||
Decrease (increase) in fair value of warrant liability | 1,018 | (434) | 1,375 | (398) | |||||||||||||||||||||||||||||||||||||||||||
Other, net | (89) | (37) | (27) | (197) | |||||||||||||||||||||||||||||||||||||||||||
Total other income (expense), net | $ | 914 | $ | (388) | $ | 1,316 | $ | (495) |
June 30,
2021 |
December 31,
2020 |
||||||||||
Cash and cash equivalents | $ | 21,328 | $ | 11,878 | |||||||
Working capital | $ | 12,250 | $ | (2,918) | |||||||
Financing obligations | $ | 345 | $ | 481 | |||||||
Operating lease liabilities | 969 | 1,289 | |||||||||
Note payable | — | 1,800 | |||||||||
Financing obligations, operating lease liabilities and note payable | $ | 1,314 | $ | 3,570 |
Six Months Ended
June 30, |
|||||||||||
2021 | 2020 | ||||||||||
Cash flows provided by (used in): | |||||||||||
Operating activities | $ | (11,615) | $ | (283) | |||||||
Investing activities | (216) | (29) | |||||||||
Financing activities | 21,253 | (239) | |||||||||
Effect of exchange rate changes on cash | 28 | (201) | |||||||||
Net change in cash and cash equivalents | $ | 9,450 | $ | (752) |
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) | ||||||||||||||||||||||
April 2021 | 413 | $5.94 | — | 778,365 | ||||||||||||||||||||||
May 2021 | — | $— | — | 778,365 | ||||||||||||||||||||||
June 2021 | 32 | $3.09 | — | 778,365 |
QUMU CORPORATION | ||||||||||||||
Registrant | ||||||||||||||
Date: | August 9, 2021 | By: | /s/ TJ Kennedy | |||||||||||
TJ Kennedy | ||||||||||||||
President and Chief Executive Officer | ||||||||||||||
(Principal Executive Officer) | ||||||||||||||
Date: | August 9, 2021 | By: | /s/ David G. Ristow | |||||||||||
David G. Ristow | ||||||||||||||
Chief Financial Officer | ||||||||||||||
(Principal Financial Officer) | ||||||||||||||
(Principal Accounting Officer) |
Trailing Three-Month Period Ending | Recurring Revenue | ||||
June 30, 2021 | $5,000,000 | ||||
September 30, 2021 | $4,500,000 | ||||
December 31, 2021 | $4,750,000 | ||||
March 31, 2022 | $5,000,000 | ||||
June 30, 2022 | $5,500,000 | ||||
September 30, 2022 | $6,000,000 | ||||
December 31, 2022 | $6,500,000 |
Borrowing Base Calculation | |||||
1. Total trailing three (3) month Recurring Revenue
|
$_______ | ||||
2. Less: (i) Revenue for which the corresponding Accounts Receivable are Aged more than 90 days from the due date, but in any case, not later than 150 Days from Invoice Date, (ii) Revenue derived in connection with credit balances owed to Account Debtors
|
|||||
3. Total Trailing 3 Month Recurring Revenue from Eligible Customer Accounts (Item 1 minus Item 2)
|
$_______ | ||||
4. Average Monthly Recurring Revenue (Item 3, divided by three (3))
|
$_______ | ||||
Borrowing Base (Item 4, multiplied by (i) four (4) if Monthly Recurring Revenue declined from the preceding calendar quarter, (ii) five (5) if Monthly Recurring Revenue increased up to five percent (5%) over the preceding calendar quarter, or (iii) six (6) if Monthly Recurring Revenue increased at least five percent (5%) over the preceding calendar quarter)
|
$_______ | ||||
Available Amount ((i) $7,500,000 until receipt and review of financial statements for the calendar quarter ending September 30, 2021, then the lesser of (a) the Borrowing Base or (b) $10,000,000)
|
$_______ | ||||
Borrowing Availability:
|
|||||
5. Less Aggregate amount of outstanding face amount on all Letters of Credit
|
$_______ | ||||
6. Less outstanding principal balance of any Advances
|
$_______ | ||||
Availability Amount (Available Amount less Items 5 and 6) | $_______ | ||||
A security interest has been granted to Wells Fargo Bank N.A. in accordance with terms and conditions of the existing continuing security agreement between the undersigned and Wells Fargo Bank N.A. to which reference is made. We hereby certify that the forgoing is true and correct in all particulars and the accounts describe above as collateral for loans represent accounts which conform to all representations and warranties set forth in said agreement. | |||||
QUMU CORPORATION | |||||
Company Address: ________________________________ |
By: ________________________________
Name:
Date:
|
|||||
QUMU, INC. | |||||
Company Address: ________________________________ | |||||
By: ________________________________
Name:
Date:
|
The greater of Minimum Liquidity or
Remaining Months Minimum Liquidity
|
$5,000,000 or
≥ 6.00x
|
$___________
____
|
Yes | No | ||||||||||||||||
Remaining Months Minimum Liquidity ((i) divided by the sum of (ii), less (iii), less (iv), divided by three (3), rounded down to the nearest whole month):* | ||||||||||||||||||||
(i) Liquidity
(ii) Adjusted EBITDA (the sum of items (a) through (i), less (j)):
|
||||||||||||||||||||
Total Cash Flow/Cash Burn | _______ _______ | ___________ | ____ | _____ | ||||||||||||||||
Comments Regarding Exceptions: See Attached.
|
LENDER USE ONLY | |||||||||||||||||||
Received by: | ||||||||||||||||||||
Sincerely, | AUTHORIZED SIGNER | |||||||||||||||||||
Date: | ||||||||||||||||||||
___________________________________________ | Verified: | |||||||||||||||||||
SIGNATURE | AUTHORIZED SIGNER | |||||||||||||||||||
___________________________________________ | Date: | |||||||||||||||||||
TITLE | ||||||||||||||||||||
Compliance Status | Yes No | |||||||||||||||||||
___________________________________________ | ||||||||||||||||||||
DATE |
Q1 | Q2 | Q3 | Q4 | LTM | |||||||||||||
(a) Net Income | ___________ | ___________ | ___________ | ___________ | ___________ | ||||||||||||
(b) Interest Expenses | ___________ | ___________ | ___________ | ___________ | ___________ | ||||||||||||
(c) Taxes | ___________ | ___________ | ___________ | ___________ | ___________ | ||||||||||||
(d) Depreciation and Amortization | ___________ | ___________ | ___________ | ___________ | ___________ | ||||||||||||
(e) Stock-based compensation | ___________ | ___________ | ___________ | ___________ | ___________ | ||||||||||||
(f) Changes in deferred revenue | ___________ | ___________ | ___________ | ___________ | ___________ | ||||||||||||
(g) Changes in deferred commissions | ___________ | ___________ | ___________ | ___________ | ___________ | ||||||||||||
(h) Changes in warrant liabilities | ___________ | ___________ | ___________ | ___________ | ___________ | ||||||||||||
(i) Changes in other non-cash items including but not limited to unrealized gains and losses | ___________ | ___________ | ___________ | ___________ | ___________ | ||||||||||||
(j) Capitalized software | ___________ | ___________ | ___________ | ___________ | ___________ | ||||||||||||
(ii) Total Adjusted EBITDA | ___________ | ___________ | ___________ | ___________ | ___________ | ||||||||||||
(iii) less, Capital expenditures | ___________ | ___________ | ___________ | ___________ | ___________ | ||||||||||||
(iv) less, Cash interest paid | ___________ | ___________ | ___________ | ___________ | ___________ | ||||||||||||
TOTAL CASH FLOW/CASH BURN | ___________ | ___________ | ___________ | ___________ | ___________ |
Date: | August 9, 2021 | /s/ TJ Kennedy | |||||||||
TJ Kennedy | |||||||||||
President and Chief Executive Officer |
Date: | August 9, 2021 | /s/ David G. Ristow | |||||||||
David G. Ristow | |||||||||||
Chief Financial Officer |
Date: | August 9, 2021 | /s/ TJ Kennedy | |||||||||
TJ Kennedy | |||||||||||
President and Chief Executive Officer | |||||||||||
Date: | August 9, 2021 | /s/ David G. Ristow | |||||||||
David G. Ristow | |||||||||||
Chief Financial Officer |