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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE EXCHANGE ACT OF 1934 |
Pennsylvania | 23-2679963 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
100 Deerfield Lane, | Suite 300, | Malvern, | Pennsylvania | 19355 | |||||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Trading Symbol | Name Of Each Exchange On Which Registered | ||||||
Common Stock, no par value | CTLP | The NASDAQ Global Select Market |
Large accelerated filer | ☐ | Accelerated filer |
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Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||
Emerging growth company | ☐ |
($ in thousands, except share data) | December 31, 2021 (Unaudited) |
June 30,
2021 |
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Assets | ||||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 76,309 | $ | 88,136 | ||||||||||
Accounts receivable, net | 24,990 | 27,470 | ||||||||||||
Finance receivables, net | 8,247 | 7,967 | ||||||||||||
Inventory, net | 11,752 | 5,292 | ||||||||||||
Prepaid expenses and other current assets | 2,171 | 2,414 | ||||||||||||
Total current assets | 123,469 | 131,279 | ||||||||||||
Non-current assets: | ||||||||||||||
Finance receivables due after one year, net | 10,906 | 11,632 | ||||||||||||
Property and equipment, net | 8,897 | 5,570 | ||||||||||||
Operating lease assets | 2,949 | 3,049 | ||||||||||||
Intangibles, net | 19,606 | 19,992 | ||||||||||||
Goodwill | 66,656 | 63,945 | ||||||||||||
Other assets | 2,609 | 2,205 | ||||||||||||
Total non-current assets | 111,623 | 106,393 | ||||||||||||
Total assets | $ | 235,092 | $ | 237,672 | ||||||||||
Liabilities, convertible preferred stock and shareholders’ equity | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | 31,323 | $ | 36,775 | ||||||||||
Accrued expenses | 28,721 | 26,460 | ||||||||||||
Current obligations under long-term debt | 848 | 675 | ||||||||||||
Deferred revenue | 1,745 | 1,763 | ||||||||||||
Total current liabilities | 62,637 | 65,673 | ||||||||||||
Long-term liabilities: | ||||||||||||||
Deferred income taxes | 190 | 179 | ||||||||||||
Long-term debt, less current portion | 13,124 | 13,644 | ||||||||||||
Operating lease liabilities, non-current | 3,154 | 3,645 | ||||||||||||
Total long-term liabilities | 16,468 | 17,468 | ||||||||||||
Total liabilities | 79,105 | 83,141 | ||||||||||||
Commitments and contingencies (Note 13)
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Convertible preferred stock: | ||||||||||||||
Series A convertible preferred stock, 900,000 shares authorized, 445,063 issued and outstanding, with liquidation preferences of $21,781 and $21,447 at December 31, 2021 and June 30, 2021, respectively
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3,138 | 3,138 | ||||||||||||
Shareholders’ equity: | ||||||||||||||
Preferred stock, no par value, 1,800,000 shares authorized
|
— | |||||||||||||
Common stock, no par value, 640,000,000 shares authorized, 70,987,498 and 71,258,047 shares issued and outstanding at December 31, 2021 and June 30, 2021, respectively
|
465,990 | 462,775 | ||||||||||||
Accumulated deficit | (313,141) | (311,382) | ||||||||||||
Total shareholders’ equity | 152,849 | 151,393 | ||||||||||||
Total liabilities, convertible preferred stock and shareholders’ equity | $ | 235,092 | $ | 237,672 |
Three months ended | Six months ended | |||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||
($ in thousands, except per share data) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Revenues: | ||||||||||||||||||||||||||
Subscription and transaction fees | $ | 41,188 | $ | 33,214 | $ | 81,812 | $ | 66,322 | ||||||||||||||||||
Equipment sales | 9,903 | 5,071 | 15,059 | 8,840 | ||||||||||||||||||||||
Total revenues | 51,091 | 38,285 | 96,871 | 75,162 | ||||||||||||||||||||||
Costs of sales: | ||||||||||||||||||||||||||
Cost of subscription and transaction fees | 24,919 | 20,617 | 50,944 | 39,953 | ||||||||||||||||||||||
Cost of equipment sales | 10,182 | 5,367 | 15,062 | 8,668 | ||||||||||||||||||||||
Total costs of sales | 35,101 | 25,984 | 66,006 | 48,621 | ||||||||||||||||||||||
Gross profit | 15,990 | 12,301 | 30,865 | 26,541 | ||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Sales and marketing | 1,745 | 1,520 | 4,084 | 3,119 | ||||||||||||||||||||||
Technology and product development | 5,780 | 3,783 | 11,169 | 6,997 | ||||||||||||||||||||||
General and administrative | 7,672 | 8,528 | 14,936 | 20,525 | ||||||||||||||||||||||
Depreciation and amortization | 1,113 | 1,052 | 2,135 | 2,120 | ||||||||||||||||||||||
Total operating expenses | 16,310 | 14,883 | 32,324 | 32,761 | ||||||||||||||||||||||
Operating loss | (320) | (2,582) | (1,459) | (6,220) | ||||||||||||||||||||||
Other income (expense): | ||||||||||||||||||||||||||
Interest income | 445 | 325 | 918 | 675 | ||||||||||||||||||||||
Interest expense | (475) | (596) | (953) | (3,881) | ||||||||||||||||||||||
Other income (expense) | (16) | — | (75) | — | ||||||||||||||||||||||
Total other income (expense), net | (46) | (271) | (110) | (3,206) | ||||||||||||||||||||||
Loss before income taxes | (366) | (2,853) | (1,569) | (9,426) | ||||||||||||||||||||||
Provision for income taxes | (102) | (49) | (191) | (89) | ||||||||||||||||||||||
Net loss | (468) | (2,902) | (1,760) | (9,515) | ||||||||||||||||||||||
Preferred dividends | — | — | (334) | (334) | ||||||||||||||||||||||
Net loss applicable to common shares | $ | (468) | $ | (2,902) | $ | (2,094) | $ | (9,849) | ||||||||||||||||||
Net loss per common share | ||||||||||||||||||||||||||
Basic and diluted | $ | (0.01) | $ | (0.04) | $ | (0.03) | $ | (0.15) | ||||||||||||||||||
Weighted average number of common shares outstanding used to compute net loss per share applicable to common shares | ||||||||||||||||||||||||||
Basic and diluted | 70,969,246 | 64,913,364 | 71,072,587 | 64,886,183 |
Common Stock |
Accumulated
Deficit |
Total | ||||||||||||||||||||||||
($ in thousands, except share data) | Shares | Amount | ||||||||||||||||||||||||
Balance, June 30, 2021 | 71,258,047 | $ | 462,775 | $ | (311,382) | $ | 151,393 | |||||||||||||||||||
Stock-based compensation and exercises (net) | 20,958 | 1,762 | — | 1,762 | ||||||||||||||||||||||
Retirement of common stock | (319,823) | — | — | — | ||||||||||||||||||||||
Net loss | — | — | (1,291) | (1,291) | ||||||||||||||||||||||
Balance, September 30, 2021 | 70,959,182 | 464,537 | (312,673) | 151,864 | ||||||||||||||||||||||
Stock-based compensation and exercises (net) | 28,316 | 1,453 | — | 1,453 | ||||||||||||||||||||||
Net loss | — | — | (468) | (468) | ||||||||||||||||||||||
Balance, December 31, 2021 | 70,987,498 | $ | 465,990 | $ | (313,141) | $ | 152,849 |
Common Stock |
Accumulated
Deficit |
Total | ||||||||||||||||||||||||
($ in thousands, except share data) | Shares | Amount | ||||||||||||||||||||||||
Balance, June 30, 2020 | 65,196,882 | $ | 401,240 | $ | (303,025) | $ | 98,215 | |||||||||||||||||||
Impact of adoption of ASC 326 | — | — | 348 | 348 | ||||||||||||||||||||||
Stock-based compensation and exercises (net) | 56,083 | 1,502 | — | 1,502 | ||||||||||||||||||||||
Net loss | — | — | (6,613) | (6,613) | ||||||||||||||||||||||
Balance, September 30, 2020 | 65,252,965 | 402,742 | (309,290) | 93,452 | ||||||||||||||||||||||
Stock based compensation and exercises (net) | 32,709 | 1,691 | — | 1,691 | ||||||||||||||||||||||
Net loss | — | — | (2,902) | (2,902) | ||||||||||||||||||||||
Balance, December 31, 2020 | 65,285,674 | $ | 404,433 | $ | (312,192) | $ | 92,241 |
Six months ended | ||||||||||||||
December 31, | ||||||||||||||
($ in thousands) | 2021 | 2020 | ||||||||||||
Cash flows from operating activities: | ||||||||||||||
Net loss | $ | (1,760) | $ | (9,515) | ||||||||||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||||||||||||
Stock based compensation | 3,129 | 3,149 | ||||||||||||
Amortization of debt issuance costs and discounts | 68 | 2,657 | ||||||||||||
Provision for expected losses | 1,313 | 1,286 | ||||||||||||
Provision for inventory reserve | 342 | 768 | ||||||||||||
Depreciation and amortization included in operating expenses | 2,135 | 2,120 | ||||||||||||
Depreciation included in costs of sales for rental equipment | 518 | 1,054 | ||||||||||||
Other | 112 | 957 | ||||||||||||
Changes in operating assets and liabilities: | ||||||||||||||
Accounts receivable | 1,378 | (2,987) | ||||||||||||
Finance receivables | 245 | 429 | ||||||||||||
Inventory | (6,802) | (434) | ||||||||||||
Prepaid expenses and other assets | (160) | 243 | ||||||||||||
Accounts payable and accrued expenses | (4,555) | 195 | ||||||||||||
Operating lease liabilities | (192) | (526) | ||||||||||||
Deferred revenue | (18) | (50) | ||||||||||||
Net cash (used in) provided by operating activities | (4,247) | (654) | ||||||||||||
Cash flows from investing activities: | ||||||||||||||
Cash paid for acquisition | (2,900) | — | ||||||||||||
Purchase of property and equipment | (4,359) | (970) | ||||||||||||
Proceeds from sale of property and equipment | — | 11 | ||||||||||||
Net cash used in investing activities | (7,259) | (959) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||
Proceeds from debt facilities, net of issuance costs | — | 14,550 | ||||||||||||
Repayment of debt facilities | (407) | (15,364) | ||||||||||||
Proceeds from exercise of common stock options | 86 | 76 | ||||||||||||
Payment of Antara prepayment penalty and commitment termination fee | — | (1,200) | ||||||||||||
Net cash used in financing activities | (321) | (1,938) | ||||||||||||
Net (decrease) increase in cash and cash equivalents | (11,827) | (3,551) | ||||||||||||
Cash and cash equivalents at beginning of year | 88,136 | 31,713 | ||||||||||||
Cash and cash equivalents at end of period | $ | 76,309 | $ | 28,162 | ||||||||||
Supplemental disclosures of cash flow information:
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Interest paid in cash | $ | 376 | $ | 615 |
Revised presentation: | Three months ended |
Year ended
June 30, 2021
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($ in thousands) | September 30, 2020 | December 31, 2020 | March 31, 2021 | June 30, 2021 | ||||||||||||||||||||||||||||
Sales and marketing | $ | 1,599 | $ | 1,520 | $ | 1,754 | $ | 2,062 | $ | 6,935 | ||||||||||||||||||||||
Technology and product development | 3,214 | 3,783 | 4,425 | 4,513 | 15,935 | |||||||||||||||||||||||||||
General and administrative | 11,997 | 8,528 | 7,552 | 7,677 | 35,754 | |||||||||||||||||||||||||||
Depreciation and amortization | 1,068 | 1,052 | 991 | 996 | 4,107 | |||||||||||||||||||||||||||
Total operating expenses | $ | 17,878 | $ | 14,883 | $ | 14,722 | $ | 15,248 | $ | 62,731 |
As previously reported: | Three months ended |
Year ended
June 30, 2021
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($ in thousands) | September 30, 2020 | December 31, 2020 | March 31, 2021 | June 30, 2021 | ||||||||||||||||||||||||||||
Selling, general, and administrative | $ | 16,810 | $ | 13,831 | $ | 13,731 | $ | 14,252 | $ | 58,624 | ||||||||||||||||||||||
Depreciation and amortization | 1,068 | 1,052 | 991 | 996 | 4,107 | |||||||||||||||||||||||||||
Total operating expenses | $ | 17,878 | $ | 14,883 | $ | 14,722 | $ | 15,248 | $ | 62,731 |
Six months ended December 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
($ in thousands) | Accounts Receivable | Finance Receivable | Accounts Receivable | Finance Receivable | |||||||||||||||||||
Beginning balance of allowance as of June 30, | $ | 6,614 | $ | 1,109 | $ | 7,676 | $ | 150 | |||||||||||||||
Impact of adoption of ASC 326*
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— | — | (757) | 409 | |||||||||||||||||||
Provision for expected losses | 312 | 100 | 394 | — | |||||||||||||||||||
Balance at September 30, | $ | 6,926 | $ | 1,209 | $ | 7,313 | $ | 559 | |||||||||||||||
Provision for expected losses | 801 | 100 | 542 | 350 | |||||||||||||||||||
Write-offs | (566) | (247) | — | — | |||||||||||||||||||
Balance at December 31, | $ | 7,161 | $ | 1,062 | $ | 7,855 | $ | 909 |
($ in thousands) | Balance Sheet Classification | As of December 31, 2021 | As of June 30, 2021 | |||||||||||||||||
Assets: | Operating lease assets | $ | 2,949 | $ | 3,049 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Current | Accrued expenses | $ | 1,465 | $ | 1,166 | |||||||||||||||
Long-term | Operating lease liabilities, non-current | 3,154 | 3,645 | |||||||||||||||||
Total lease liabilities | $ | 4,619 | $ | 4,811 |
($ in thousands) | Three months ended December 31, 2021 | Three months ended December 31, 2020 | |||||||||
Operating lease costs* | 443 | 535 |
($ in thousands) | Six months ended December 31, 2021 | Six months ended December 31, 2020 | |||||||||
Operating lease costs* | 885 | 1,064 |
($ in thousands) | Six months ended December 31, 2021 | Six months ended December 31, 2020 | |||||||||
Supplemental cash flow information: | |||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 840 | $ | 802 | |||||||
Non-cash activity: | |||||||||||
Lease assets obtained in exchange for new operating lease liabilities | $ | 471 | $ | — |
($ in thousands) |
Operating
Leases |
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Remainder of 2022 | $ | 861 | |||
2023 | 1,758 | ||||
2024 | 1,029 | ||||
2025 | 707 | ||||
2026 | 628 | ||||
Thereafter | 265 | ||||
Total lease payments | $ | 5,248 | |||
Less: Imputed interest | (629) | ||||
Present value of lease liabilities | $ | 4,619 |
($ in thousands) |
December 31,
2021 |
June 30,
2021 |
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Cost | $ | 22,205 | 26,753 | |||||||||||
Accumulated depreciation | (20,409) | (24,487) | ||||||||||||
Net | $ | 1,796 | $ | 2,266 |
Three months ended December 31, | Six months ended December 31, | ||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Transaction fees | $ | 26,775 | $ | 20,454 | $ | 53,195 | $ | 40,131 | |||||||||||||||
Subscription fees | 14,413 | 12,760 | 28,617 | 26,191 | |||||||||||||||||||
Subscription and transaction fees | $ | 41,188 | $ | 33,214 | $ | 81,812 | $ | 66,322 | |||||||||||||||
Equipment sales | 9,903 | 5,071 | 15,059 | 8,840 | |||||||||||||||||||
Total revenues | $ | 51,091 | $ | 38,285 | $ | 96,871 | $ | 75,162 |
Three months ended |
Year ended June 30, 2021 |
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($ in thousands) | September 30, 2020 | December 31, 2020 | March 31, 2021 | June 30, 2021 | ||||||||||||||||||||||||||||
Transaction fees | $ | 19,677 | $ | 20,454 | $ | 21,002 | $ | 24,365 | $ | 85,498 | ||||||||||||||||||||||
Subscription fees | 13,431 | 12,760 | 13,684 | 13,869 | 53,744 | |||||||||||||||||||||||||||
Subscription and transaction fees | $ | 33,108 | $ | 33,214 | $ | 34,686 | $ | 38,234 | $ | 139,242 | ||||||||||||||||||||||
Equipment sales | 3,769 | 5,071 | 8,074 | 10,783 | 27,697 | |||||||||||||||||||||||||||
Total revenues | $ | 36,877 | $ | 38,285 | $ | 42,760 | $ | 49,017 | $ | 166,939 |
($ in thousands) | As of December 31, 2021 | ||||
2022 | $ | 7,016 | |||
2023 | 12,609 | ||||
2024 | 8,489 | ||||
2025 | 4,792 | ||||
2026 | 2,892 | ||||
Thereafter | 503 | ||||
Total | $ | 36,301 |
Three months ended December 31, | Three months ended December 31, | |||||||||||||
($ in thousands) | 2021 | 2020 | ||||||||||||
Deferred revenue, beginning of the period | $ | 1,720 | $ | 1,639 | ||||||||||
Deferred revenue, end of the period | 1,745 | 1,648 | ||||||||||||
Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period | $ | 120 | $ | 95 |
Six months ended December 31, | Six months ended December 31, | |||||||||||||
($ in thousands) | 2021 | 2020 | ||||||||||||
Deferred revenue, beginning of the period | $ | 1,763 | $ | 1,698 | ||||||||||
Deferred revenue, end of the period | 1,745 | 1,648 | ||||||||||||
Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period | $ | 215 | $ | 184 |
($ in thousands) | Amount | ||||
Consideration | |||||
Cash | $ | 2,966 | |||
Contingent consideration arrangement | $ | 1,000 | |||
Fair value of total consideration transferred | $ | 3,966 | |||
Recognized amounts of identifiable assets | |||||
Total net assets acquired | $ | 21 | |||
Identifiable intangible assets | $ | 1,235 | |||
Total identifiable net assets | $ | 1,256 | |||
Goodwill | $ | 2,710 |
($ in thousands) |
December 31,
2021 |
June 30,
2021 |
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Current finance receivables, net | $ | 8,247 | $ | 7,967 | ||||||||||
Finance receivables due after one year, net | 10,906 | 11,632 | ||||||||||||
Total finance receivables, net of allowance of $1,062 and $1,109, respectively
|
$ | 19,153 | $ | 19,599 |
Leases by Origination | ||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | Up to 1 Year Ago | Between 1 and 2 Years Ago | Between 2 and 3 Years Ago | Between 3 and 4 Years Ago | Between 4 and 5 Years Ago | More than 5 Years Ago | Total | |||||||||||||||||||||||||||||||||||||
Current | $ | 6,587 | $ | 3,417 | $ | 4,570 | $ | 2,555 | $ | 1,319 | $ | 17 | $ | 18,465 | ||||||||||||||||||||||||||||||
30 days and under | 5 | 13 | 47 | 45 | 5 | — | 115 | |||||||||||||||||||||||||||||||||||||
31-60 days | 20 | 32 | 74 | 51 | 20 | — | 197 | |||||||||||||||||||||||||||||||||||||
61-90 days | 12 | 25 | 64 | 44 | 18 | 1 | 164 | |||||||||||||||||||||||||||||||||||||
Greater than 90 days | 26 | 121 | 484 | 492 | 87 | 64 | 1,274 | |||||||||||||||||||||||||||||||||||||
Total finance receivables | $ | 6,650 | $ | 3,608 | $ | 5,239 | $ | 3,187 | $ | 1,449 | $ | 82 | $ | 20,215 |
Leases by Origination | ||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | Up to 1 Year Ago | Between 1 and 2 Years Ago | Between 2 and 3 Years Ago | Between 3 and 4 Years Ago | Between 4 and 5 Years Ago | More than 5 Years Ago | Total | |||||||||||||||||||||||||||||||||||||
Current | $ | 6,736 | $ | 3,970 | $ | 3,942 | $ | 3,081 | $ | 1,358 | $ | 31 | $ | 19,118 | ||||||||||||||||||||||||||||||
30 days and under | 19 | 67 | 90 | 93 | 11 | 1 | 281 | |||||||||||||||||||||||||||||||||||||
31-60 days | 4 | 9 | 22 | 2 | 1 | — | 38 | |||||||||||||||||||||||||||||||||||||
61-90 days | 10 | 42 | 66 | 54 | 10 | — | 182 | |||||||||||||||||||||||||||||||||||||
Greater than 90 days | 46 | 69 | 490 | 419 | 54 | 11 | 1,089 | |||||||||||||||||||||||||||||||||||||
Total finance receivables | $ | 6,815 | $ | 4,157 | $ | 4,610 | $ | 3,649 | $ | 1,434 | $ | 43 | $ | 20,708 |
Leases by Origination | ||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | Up to 1 Year Ago | Between 1 and 2 Years Ago | Between 2 and 3 Years Ago | Between 3 and 4 Years Ago | Between 4 and 5 Years Ago | More than 5 Years Ago | Total | |||||||||||||||||||||||||||||||||||||
High ratio customers | $ | 6,334 | $ | 3,194 | $ | 4,462 | $ | 2,273 | $ | 1,209 | $ | 11 | $ | 17,483 | ||||||||||||||||||||||||||||||
Low ratio customers | 316 | 414 | 777 | 914 | 240 | 71 | 2,732 | |||||||||||||||||||||||||||||||||||||
Total finance receivables | $ | 6,650 | $ | 3,608 | $ | 5,239 | $ | 3,187 | $ | 1,449 | $ | 82 | $ | 20,215 |
Leases by Origination | ||||||||||||||||||||||||||||||||||||||||||||
($ in thousands) | Up to 1 Year Ago | Between 1 and 2 Years Ago | Between 2 and 3 Years Ago | Between 3 and 4 Years Ago | Between 4 and 5 Years Ago | More than 5 Years Ago | Total | |||||||||||||||||||||||||||||||||||||
High ratio customers | $ | 6,415 | $ | 3,824 | $ | 3,793 | $ | 2,920 | $ | 1,290 | $ | 24 | $ | 18,266 | ||||||||||||||||||||||||||||||
Low ratio customers | 400 | 333 | 817 | 729 | 144 | 19 | 2,442 | |||||||||||||||||||||||||||||||||||||
Total finance receivables | $ | 6,815 | $ | 4,157 | $ | 4,610 | $ | 3,649 | $ | 1,434 | $ | 43 | $ | 20,708 |
Six months ended December 31, | Six months ended December 31, | |||||||||||||
($ in thousands) | 2021 | 2020 | ||||||||||||
Balance at June 30 | $ | 1,109 | $ | 150 | ||||||||||
Impact of adoption of ASC 326* | — | 409 | ||||||||||||
Provision for expected losses | 100 | — | ||||||||||||
Balance at September 30 | $ | 1,209 | $ | 559 | ||||||||||
Provision for expected losses | 100 | 350 | ||||||||||||
Write-offs | (247) | — | ||||||||||||
Balance at December 31 | $ | 1,062 | $ | 909 |
Three months ended
December 31, |
||||||||||||||
($ in thousands, except per share data) | 2021 | 2020 | ||||||||||||
Numerator for basic and diluted loss per share | ||||||||||||||
Net loss | $ | (468) | $ | (2,902) | ||||||||||
Preferred dividends | — | — | ||||||||||||
Net loss applicable to common shareholders | (468) | (2,902) | ||||||||||||
Denominator for basic loss per share - Weighted average shares outstanding
|
70,969,246 | 64,913,364 | ||||||||||||
Effect of dilutive potential common shares | — | — | ||||||||||||
Denominator for diluted loss per share - Adjusted weighted average shares outstanding
|
70,969,246 | 64,913,364 | ||||||||||||
Basic and diluted loss per share | $ | (0.01) | $ | (0.04) |
Six months ended December 31, | ||||||||||||||
($ in thousands, except per share data) | 2021 | 2020 | ||||||||||||
Numerator for basic and diluted loss per share | ||||||||||||||
Net loss | $ | (1,760) | $ | (9,515) | ||||||||||
Preferred dividends | (334) | (334) | ||||||||||||
Net loss applicable to common shareholders | (2,094) | (9,849) | ||||||||||||
Denominator for basic loss per share - Weighted average shares outstanding
|
71,072,587 | 64,886,183 | ||||||||||||
Effect of dilutive potential common shares | ||||||||||||||
Denominator for diluted loss per share - Adjusted weighted average shares outstanding
|
71,072,587 | 64,886,183 | ||||||||||||
Basic and diluted loss per share | $ | (0.03) | $ | (0.15) |
As of December 31, 2021 | ||||||||||||||||||||||||||
($ in thousands) | Gross |
Accumulated
Amortization |
Net |
Amortization
Period |
||||||||||||||||||||||
Intangible assets: | ||||||||||||||||||||||||||
Brand and tradenames | $ | 1,705 | $ | (982) | $ | 723 |
1 - 7 years
|
|||||||||||||||||||
Developed technology | 11,819 | (7,815) | 4,004 |
5 - 6 years
|
||||||||||||||||||||||
Customer relationships | 19,339 | (4,460) | 14,879 |
5 - 18 years
|
||||||||||||||||||||||
Total intangible assets | $ | 32,863 | $ | (13,257) | $ | 19,606 | ||||||||||||||||||||
Goodwill | 66,656 | — | 66,656 | Indefinite |
As of June 30, 2021 | ||||||||||||||||||||||||||
($ in thousands) | Gross |
Accumulated
Amortization |
Net |
Amortization
Period |
||||||||||||||||||||||
Intangible assets: | ||||||||||||||||||||||||||
Brand and tradenames | 1,640 | (840) | 800 |
3 - 7 years
|
||||||||||||||||||||||
Developed technology | 10,939 | (6,890) | 4,049 |
5 - 6 years
|
||||||||||||||||||||||
Customer relationships | 19,049 | (3,906) | 15,143 |
10 - 18 years
|
||||||||||||||||||||||
Total intangible assets | $ | 31,628 | $ | (11,636) | $ | 19,992 | ||||||||||||||||||||
Goodwill | 63,945 | — | 63,945 | Indefinite |
As of December 31, | As of June 30, | |||||||||||||
($ in thousands) | 2021 | 2021 | ||||||||||||
2021 JPMorgan Credit Facility | 14,063 | 14,437 | ||||||||||||
Other obligations | 81 | 113 | ||||||||||||
Less: unamortized issuance costs and debt discount | (172) | (231) | ||||||||||||
Total | 13,972 | 14,319 | ||||||||||||
Less: debt and other financing arrangements, current | (848) | (675) | ||||||||||||
Debt and other financing arrangements, noncurrent | $ | 13,124 | $ | 13,644 |
Three months ended | Six months ended | |||||||||||||||||||||||||
December 31, | December 31, | |||||||||||||||||||||||||
($ in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
2020 Antara Term Facility | $ | — | $ | — | $ | — | $ | 2,779 | ||||||||||||||||||
2021 JPMorgan Credit Facility | 227 | 303 | 457 | 475 | ||||||||||||||||||||||
Other interest expense | 248 | 293 | 496 | 627 | ||||||||||||||||||||||
Total interest expense | $ | 475 | $ | 596 | $ | 953 | $ | 3,881 |
As of December 31, | As of June 30, | |||||||||||||
($ in thousands) | 2021 | 2021 | ||||||||||||
Sales tax reserve | $ | 17,635 | $ | 17,099 | ||||||||||
Accrued compensation and related sales commissions | 3,225 | 4,233 | ||||||||||||
Operating lease liabilities, current | 1,465 | 1,166 | ||||||||||||
Accrued professional fees | 2,839 | 1,739 | ||||||||||||
Accrued taxes and filing fees payable | 1,743 | 1,450 | ||||||||||||
Contingent consideration arrangement for the Yoke acquisition* | 1,000 | — | ||||||||||||
Other accrued expenses | 814 | 773 | ||||||||||||
Total accrued expenses | $ | 28,721 | $ | 26,460 |
Six months ended December 31, | ||||||||||||||
2021 | 2020 | |||||||||||||
Expected volatility (percent) |
73.2% - 73.6%
|
76.3% - 77.3%
|
||||||||||||
Weighted average expected life (years) | 4.5 | 4.5 | ||||||||||||
Dividend yield (percent) | 0.0 | % | 0.0 | % | ||||||||||
Risk-free interest rate (percent) |
1.0% - 1.2%
|
0.2% - 0.4%
|
||||||||||||
Number of options granted | 495,000 | 650,000 | ||||||||||||
Weighted average exercise price | $ | 9.98 | $ | 8.00 | ||||||||||
Weighted average grant date fair value | $ | 5.72 | $ | 4.69 |
As of and for the three months ended | |||||||||||||||||||||||||||||
December 31, 2021 | September 30, 2021 |
June 30,
2021 |
March 31,
2021 |
December 31, 2020 | |||||||||||||||||||||||||
Devices: | |||||||||||||||||||||||||||||
Active Devices (thousands) | 1,123 | 1,115 | 1,094 | 1,085 | 1,083 | ||||||||||||||||||||||||
Customers: | |||||||||||||||||||||||||||||
Active Customers | 21,315 | 20,738 | 19,834 | 18,763 | 18,304 | ||||||||||||||||||||||||
Volumes: | |||||||||||||||||||||||||||||
Total Number of Transactions (millions) | 261.7 | 257.9 | 241.6 | 213.4 | 211.8 | ||||||||||||||||||||||||
Total Dollar Volume of Transactions (millions) | 555.3 | 553.4 | 515.0 | 412.7 | 422.6 |
Three months ended December 31, |
Percent
Change |
|||||||||||||||||||
($ in thousands) | 2021 | 2020 | ||||||||||||||||||
Revenues: | ||||||||||||||||||||
Subscription and transaction fees | $ | 41,188 | $ | 33,214 | 24.0 | % | ||||||||||||||
Equipment sales | 9,903 | 5,071 | 95.3 | % | ||||||||||||||||
Total revenues | 51,091 | 38,285 | 33.4 | % | ||||||||||||||||
Costs of sales: | ||||||||||||||||||||
Cost of subscription and transaction fees | 24,919 | 20,617 | 20.9 | % | ||||||||||||||||
Cost of equipment sales | 10,182 | 5,367 | 89.7 | % | ||||||||||||||||
Total costs of sales | 35,101 | 25,984 | 35.1 | % | ||||||||||||||||
Gross profit: | ||||||||||||||||||||
Subscription and transaction fees | 16,269 | 12,597 | 29.1 | % | ||||||||||||||||
Equipment sales | (279) | (296) | (5.7) | % | ||||||||||||||||
Total gross profit | $ | 15,990 | $ | 12,301 | 30.0 | % | ||||||||||||||
Gross margin: | ||||||||||||||||||||
Subscription and transaction fees | 39.5 | % | 37.9 | % | ||||||||||||||||
Equipment sales | (2.8) | % | (5.8) | % | ||||||||||||||||
Total gross margin | 31.3 | % | 32.1 | % |
Three months ended December 31, |
Percent
Change |
|||||||||||||||||||
Category ($ in thousands) | 2021 | 2020 | ||||||||||||||||||
Sales and marketing | $ | 1,745 | $ | 1,520 | 14.8 | % | ||||||||||||||
Technology and product development | 5,780 | 3,783 | 52.8 | % | ||||||||||||||||
General and administrative expenses | 7,672 | 8,528 | (10.0) | % | ||||||||||||||||
Depreciation and amortization | 1,113 | 1,052 | 5.8 | % | ||||||||||||||||
Total operating expenses | $ | 16,310 | $ | 14,883 | 9.6 | % |
Three months ended December 31, |
Percent
Change |
|||||||||||||||||||
($ in thousands) | 2021 | 2020 | ||||||||||||||||||
Other income (expense): | ||||||||||||||||||||
Interest income | $ | 445 | $ | 325 | 36.9 | % | ||||||||||||||
Interest expense | (475) | (596) | (20.3) | % | ||||||||||||||||
Other income (expense) | (16) | — | (100.0) | % | ||||||||||||||||
Total other income (expense), net | $ | (46) | $ | (271) | 83.0 | % |
Six months ended December 31, |
Percent
Change |
|||||||||||||||||||
($ in thousands) | 2021 | 2020 | ||||||||||||||||||
Revenues: | ||||||||||||||||||||
Subscription and transaction fees | $ | 81,812 | $ | 66,322 | 23.4 | % | ||||||||||||||
Equipment sales | 15,059 | 8,840 | 70.4 | % | ||||||||||||||||
Total revenues | 96,871 | 75,162 | 28.9 | % | ||||||||||||||||
Costs of sales: | ||||||||||||||||||||
Cost of subscription and transaction fees | 50,944 | 39,953 | 27.5 | % | ||||||||||||||||
Cost of equipment sales | 15,062 | 8,668 | 73.8 | % | ||||||||||||||||
Total costs of sales | 66,006 | 48,621 | 35.8 | % | ||||||||||||||||
Gross profit: | ||||||||||||||||||||
Subscription and transaction fees | 30,868 | 26,369 | 17.1 | % | ||||||||||||||||
Equipment sales | (3) | 172 | (101.7) | % | ||||||||||||||||
Total gross profit | $ | 30,865 | $ | 26,541 | 16.3 | % | ||||||||||||||
Gross margin: | ||||||||||||||||||||
Subscription and transaction fees | 37.7 | % | 39.8 | % | ||||||||||||||||
Equipment sales | (0.02) | % | 1.9 | % | ||||||||||||||||
Total gross margin | 31.9 | % | 35.3 | % |
Six months ended December 31, |
Percent
Change |
|||||||||||||||||||
Category ($ in thousands) | 2021 | 2020 | ||||||||||||||||||
Sales and marketing | $ | 4,084 | $ | 3,119 | 30.9 | % | ||||||||||||||
Technology and product development | 11,169 | 6,997 | 59.6 | % | ||||||||||||||||
General and administrative expenses | 14,936 | 20,525 | (27.2) | % | ||||||||||||||||
Depreciation and amortization | 2,135 | 2,120 | 0.7 | % | ||||||||||||||||
Total operating expenses | $ | 32,324 | $ | 32,761 | (1.3) | % |
Six months ended December 31, |
Percent
Change |
|||||||||||||||||||
($ in thousands) | 2021 | 2020 | ||||||||||||||||||
Other income (expense): | ||||||||||||||||||||
Interest income | $ | 918 | $ | 675 | 36.0 | % | ||||||||||||||
Interest expense | (953) | (3,881) | (75.4) | % | ||||||||||||||||
Other income (expense) | (75) | — | (100.0) | % | ||||||||||||||||
Total other income (expense), net | $ | (110) | $ | (3,206) | 96.6 | % |
Three months ended December 31, | ||||||||||||||
($ in thousands) | 2021 | 2020 | ||||||||||||
U.S. GAAP net loss | $ | (468) | $ | (2,902) | ||||||||||
Less: interest income | (445) | (325) | ||||||||||||
Plus: interest expense | 475 | 596 | ||||||||||||
Plus: income tax provision | 102 | 49 | ||||||||||||
Plus: depreciation expense included in costs of sales for rentals | 254 | 515 | ||||||||||||
Plus: depreciation and amortization expense in operating expenses | 1,113 | 1,052 | ||||||||||||
EBITDA | 1,031 | (1,015) | ||||||||||||
Plus: stock-based compensation (a)
|
1,368 | 1,640 | ||||||||||||
Plus: asset impairment charge (b)
|
— | 333 | ||||||||||||
Adjustments to EBITDA | 1,368 | 1,973 | ||||||||||||
Adjusted EBITDA | $ | 2,399 | $ | 958 | ||||||||||
Six months ended December 31, | ||||||||||||||
($ in thousands) | 2021 | 2020 | ||||||||||||
U.S. GAAP net loss | $ | (1,760) | $ | (9,515) | ||||||||||
Less: interest income | (918) | (675) | ||||||||||||
Plus: interest expense | 953 | 3,881 | ||||||||||||
Plus: income tax provision | 191 | 89 | ||||||||||||
Plus: depreciation expense included in costs of sales for rentals | 518 | 1,054 | ||||||||||||
Plus: depreciation and amortization expense in operating expenses | 2,135 | 2,120 | ||||||||||||
EBITDA | 1,119 | (3,046) | ||||||||||||
Plus: stock-based compensation (a)
|
3,129 | 3,149 | ||||||||||||
Plus: asset impairment charge (b)
|
— | 333 | ||||||||||||
Adjustments to EBITDA | 3,129 | 3,482 | ||||||||||||
Adjusted EBITDA | $ | 4,248 | $ | 436 | ||||||||||
Exhibit
Number |
Description | |||||||
3.1* | ||||||||
3.2 | ||||||||
31.1* | ||||||||
31.2* | ||||||||
32.1** | ||||||||
32.2** | ||||||||
101 |
The following financial information from our Quarterly Report on Form 10-Q for the quarter ended December 31, 2021, filed with the SEC on February 4, 2022, is formatted in Inline Extensible Business Reporting Language (“iXBRL”): (1) the Condensed Consolidated Balance Sheets as of December 31, 2021 and June 30, 2021, (2) the Condensed Consolidated Statements of Operations for the three-month and six-month periods ended December 31, 2021 and 2020, (3) the Condensed Consolidated Statements of Shareholders’ Equity for the three-month and six-month periods ended December 31, 2021 and 2020, (4) the Condensed Consolidated Statements of Cash Flows for the six-month periods ended December 30, 2021 and 2020, and (5) the Notes to Consolidated Financial Statements.
|
|||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema | |||||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase | |||||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase | |||||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase | |||||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase | |||||||
104 |
The cover page from our Quarterly Report on Form 10-Q for the quarter ended December 31, 2021, filed with the SEC on February 4, 2022, is formatted as Inline iXBRL and contained in Exhibit 101.
|
Cantaloupe, Inc. | |||||
Date: February 4, 2022 | /s/ Sean Feeney | ||||
Sean Feeney | |||||
Chief Executive Officer | |||||
Date: February 4, 2022 | /s/ R. Wayne Jackson | ||||
R. Wayne Jackson | |||||
Chief Financial Officer |
Date: February 4, 2022 | /s/ Sean Feeney | ||||
Sean Feeney | |||||
Chief Executive Officer |
Date: February 4, 2022 | /s/ R. Wayne Jackson | ||||
R. Wayne Jackson | |||||
Chief Financial Officer |
Date: February 4, 2022 | /s/ Sean Feeney | ||||
Sean Feeney | |||||
Chief Executive Officer |
Date: February 4, 2022 | /s/ R. Wayne Jackson | ||||
R. Wayne Jackson | |||||
Chief Financial Officer |