The following table reconciles Non-GAAP Adjusted EBITDA to the related GAAP measure of loss from operations for the three and nine months ended September 30, 2024 and 2023, respectively:
Three months ended Nine months ended
September 30, September 30,
--------------------- ---------------------
(in thousands) 2024 2023 2024 2023
----------------- -------- ---------- -------- ----------
U.S. GAAP loss
from operations $(14,976) $ (16,277) $(39,402) $ (39,041)
Depreciation
expense 284 205 828 595
Amortization
expense 133 133 401 409
Stock-based
compensation 1,319 1,192 4,243 9,044
CEO transition 1,229 -- 1,229 --
Non-routine
legal fees -- 98 66 181
Severance costs -- 2,088 -- 2,075
Other costs -- 3,241 -- 3,241
Other income
(expense), net 93 (50) 122 (265)
Loss from
unconsolidated
subsidiary (256) (336) (767) (336)
------- --------- ------- ---------
Adjusted EBITDA $(12,174) $ (9,706) $(33,280) $ (24,097)
======= ========= ======= =========
The following table reconciles Non-GAAP Adjusted EBITDA and Adjusted Net Loss to the related GAAP measure of net loss for the three months ended September 30, 2024 and 2023, respectively:
Three months ended September 30,
---------------------------------------------------
2024 2023
------------------------ ------------------------
(in thousands,
except shares and Adjusted Adjusted Net Adjusted Adjusted Net
per share data) EBITDA Loss EBITDA Loss
----------------- --------- ------------ --------- ------------
Net loss per U.S.
GAAP $ (15,359) $ (15,359) $ (16,937) $ (16,937)
Reconciling items
-
Provision for
(benefit from)
income taxes 244 -- 166 --
Interest
(income)
expense, net (24) -- 108 --
Amortization of
debt issue
costs in
interest
expense -- -- -- 177
Depreciation
expense 284 -- 205 --
Amortization of
intangibles 133 133 133 133
Stock-based
compensation 1,319 1,319 1,192 1,192
CEO
transition(a) 1,229 1,229 -- --
Non-routine
legal fees(b) -- -- 98 98
Severance
costs(c) -- -- 2,088 2,088
Other costs(d) -- -- 3,241 3,241
Adjusted Non-GAAP
amounts $ (12,174) $ (12,678) $ (9,706) $ (10,008)
======== =========== ======== ===========
Adjusted Non-GAAP
net loss per
share (Adjusted
EPS):
Basic and
diluted N/A $ (0.10) N/A $ (0.08)
--------- ----------- --------- -----------
Weighted-average
common shares
outstanding:
Basic and
diluted N/A 127,380,292 N/A 119,793,821
--------- ----------- --------- -----------
(a) We incurred one-time incremental recruitment fees
in connection with hiring a new CEO in August 2024.
In addition, we agreed to upfront and incremental
sign-on bonuses (collectively, the "sign-on bonuses"),
a portion of which will be paid to our CEO in 2024,
with clawback provisions over the next two years,
and a portion of which will be paid annually over
the next two years, all contingent upon continued
employment. These sign-on bonuses will be expensed
over the next two years, ending on October 1, 2026,
to reflect the required service periods. We do not
view these sign-on bonuses as being part of the normal
on-going compensation arrangements for our CEO.
(b) (Non-routine legal fees represent legal fees and other
costs incurred for specific matters that were not
ordinary or routine to the operations of the business.)
(c) (Severance costs in 2023 were due to restructuring
changes.)
(d) (Other costs in 2023 included the write-down of remaining
prepaid costs resulting from the termination of our
consulting agreement with a related party.)
The following table reconciles Non-GAAP Adjusted EBITDA and Adjusted Net Loss to the related GAAP measure of net loss for the nine months ended September 30, 2024 and 2023, respectively:
Nine months ended September 30,
---------------------------------------------------
2024 2023
------------------------ ------------------------
(in thousands,
except shares and Adjusted Adjusted Net Adjusted Adjusted Net
per share data) EBITDA Loss EBITDA Loss
----------------- --------- ------------ --------- ------------
Net loss per U.S.
GAAP $ (36,371) $ (36,371) $ (39,113) $ (39,113)
Reconciling items
-
Provision for
(benefit from)
income taxes 298 -- 175 --
Interest
expense, net 111 -- 194 --
Amortization of
debt issue
costs in
interest
expense -- 236 -- 532
Depreciation
expense 828 -- 595 --
Amortization of
intangibles 401 401 409 409
Stock-based
compensation 4,243 4,243 9,044 9,044
Gain from
disposal of
investment in
unconsolidated
subsidiary(a) (4,085) (4,085) (898) (898)
CEO
transition(b) 1,229 1,229 -- --
Non-routine
legal fees(c) 66 66 181 181
Severance
costs(d) -- -- 2,075 2,075
Other costs(e) -- -- 3,241 3,241
Adjusted
Non-GAAP
amounts $ (33,280) $ (34,281) $ (24,097) $ (24,529)
======== =========== ======== ===========
Adjusted Non-GAAP
net loss per
share (Adjusted
EPS):
Basic and
diluted N/A $ (0.27) N/A $ (0.22)
--------- ----------- --------- -----------
Weighted-average
common shares
outstanding:
Basic and
diluted N/A 126,234,997 N/A 112,794,562
--------- ----------- --------- -----------
(a) (We exclude the gain from collection of contingent
contractual amounts arising from the sale in 2021
of our investment in an unconsolidated subsidiary
as these amounts are not considered part of our normal
ongoing operations.)
(b) We incurred one-time incremental recruitment fees
in connection with hiring a new CEO in August 2024.
In addition, we agreed to upfront and incremental
sign-on bonuses (collectively, the "sign-on bonuses"),
a portion of which will be paid to our CEO in 2024,
with clawback provisions over the next two years,
and a portion of which will be paid annually over
the next two years, all contingent upon continued
employment. These sign-on bonuses will be expensed
over the next two years, ending on October 1, 2026,
to reflect the required service periods. We do not
view these sign-on bonuses as being part of the normal
on-going compensation arrangements for our CEO.
(c) (Non-routine legal fees represent legal fees and other
costs incurred for specific matters that were not
ordinary or routine to the operations of the business.)
(d) (Severance costs in 2023 were due to restructuring
changes.)
(e) (Other costs in 2023 included the write-off of remaining
prepaid costs resulting from the termination of our
consulting agreement with a related party.)
(END) Dow Jones Newswires
November 12, 2024 06:30 ET (11:30 GMT)
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