Revenue Increased 24% from Q2 2022, as Remark AI Secured Major Partnerships for Smart Cities
LAS VEGAS, Aug. 14, 2023 /PRNewswire/ -- Remark Holdings, Inc. (NASDAQ: MARK), a diversified global technology company with leading artificial intelligence ("AI") solutions and digital video analytics, today announced its financial results for its second quarter fiscal 2023 ended June 30, 2023. For complete details of the consolidated financial statements and accompanying management's discussion and analysis, please see Remark's filings with the SEC (www.sec.gov).
Management Commentary
"In the second quarter of 2023, we made significant strides in synergizing with various smart city initiatives that focus on leveraging technology and innovation to enhance urban living," said Kai-Shing Tao, Chairman and Chief Executive Officer of Remark Holdings. "Notably, we successfully won an initial 30-month subscription agreement to implement our mobile SSP product in Brazil for facial and license plate recognition, showcasing efficacy and value in a real-world setting and solidifying our solutions as practical and impactful. Furthermore, we have secured several strategic technology partnerships, with more to come, that will help us quickly scale our innovative solutions and extend their reach into existing and new markets as we head into the second half of the year."
"Previously, we discussed how China's reopening would significantly bolster our revenue opportunities. Despite press reports discussing an economic downturn in China, Remark achieved a 24% year-over-year increase in revenue for Q2, reflecting the restoration of the previous growth trajectory, while we continue to pursue growth in the Americas and in the UK and European markets. Investment in AI continues to grow in all markets because customers see an immediate return on investment, reducing expenses while increasing operational efficiencies and performance. Our goal remains to be EBITDA breakeven exiting the fourth quarter of 2023," concluded Mr. Tao.
Fiscal Second Quarter 2023 Business Highlights
Fiscal Second Quarter 2023 Financial Results
Also, the company provided an update on the written notice it received from the Nasdaq Listing Qualifications Department on April 27, 2023, notifying Remark that it did not meet continued listing standards pursuant to Nasdaq Listing Rule 5550. As instructed by Nasdaq, on June 12, 2023, Remark submitted a plan to the Nasdaq Listing Qualifications Department detailing how it expected to regain compliance with the continued listing standards. After reviewing the submitted plan, Nasdaq provided the company until October 24, 2023 to regain compliance with the continued listing standards.
Conference Call Information
Management will hold a conference call this afternoon at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss the Company's financial results and provide an update on recent business developments. A question and answer session will follow management's presentation.
The live conference may be accessed via telephone or online webcast.
Date: Monday, August 14, 2023
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
Toll-Free Number: 844.826.3033
International Number: 412.317.5185
Conference ID: 10181544
Online Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1627436&tp_key=d61b36621d
Participants are advised to log in for the live webcast 10 minutes prior to the scheduled start time.
A replay of the call will be available after 7:30 p.m. Eastern time on the same day through August 18, 2023.
Toll-Free Replay Number: 844.512.2921
International Replay Number: 412.317.6671
Replay ID: 10181544
About Remark Holdings, Inc.
Remark Holdings, Inc. (NASDAQ: MARK) the industry leader in AI powered analytics computer vision and smart agent solutions, delivers an integrated suite of AI tools that help organizations understand their customer demographics and behavior, while monitoring, understanding and acting on potential security threats in real time. Remark consists of an international team of sector experienced professionals that have created award winning video analytics. The company's GDPR-compliant and CCPA-compliant solutions focus on sectors including government agencies, hospitality, public safety, retail and transportation. The company's headquarters are in Las Vegas, Nevada, USA, with operational offices in New York and international offices in London, England. For more information, please visit our home page at www.remarkholdings.com.
Forward-Looking Statements
This press release may contain forward-looking statements, including information relating to future events, future financial performance, strategies, expectations, competitive environment, and regulations. Words such as "may," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," and similar expressions, as well as statements in the future tense, identify forward-looking statements. These statements involve known and unknown risks, uncertainties, and other factors, including those discussed in Part I, Item 1A. Risk Factors in Remark Holdings' Annual Report on Form 10-K and Remark Holdings' other filings with the SEC. Any forward-looking statements reflect Remark Holdings' current views concerning future events, are based on assumptions, and are subject to risks and uncertainties. Given such uncertainties, you should not rely on any forward-looking statements, which represent Remark Holdings' estimates and assumptions only as of the date hereof. Except as required by law, Remark Holdings undertakes no obligation to update or revise publicly any forward-looking statements after the date hereof, whether as a result of new information, future events, or otherwise.
Company Contacts
Fay Tian
Vice President of Investor Relations
[email protected]
(+1) 626-623-2000
(+65) 8715-8007
REMARK HOLDINGS, INC. AND SUBSIDIARIES | |||
Consolidated Balance Sheets | |||
(dollars in thousands, except share and per share amounts) | |||
June 30, 2023 | December 31, 2022 | ||
(Unaudited) | |||
Assets | |||
Cash | $ 208 | $ 52 | |
Trade accounts receivable, net | 3,445 | 3,091 | |
Inventory, net | 351 | 308 | |
Deferred cost of revenue | 5,598 | 7,463 | |
Prepaid expense and other current assets | 864 | 1,374 | |
Total current assets | 10,466 | 12,288 | |
Property and equipment, net | 1,422 | 1,699 | |
Operating lease assets | 783 | 180 | |
Other long-term assets | 187 | 269 | |
Total assets | $ 12,858 | $ 14,436 | |
Liabilities | |||
Accounts payable | $ 9,125 | $ 9,602 | |
Advances from related parties | 1,078 | 1,174 | |
Obligations to issue common stock | 5,597 | 1,892 | |
Accrued expense and other current liabilities | 8,189 | 7,222 | |
Contract liability | 420 | 308 | |
Notes payable | 16,480 | 14,607 | |
Total current liabilities | 40,889 | 34,805 | |
Operating lease liabilities, long-term | 398 | 56 | |
Total liabilities | 41,287 | 34,861 | |
Commitments and contingencies | |||
Stockholders' Deficit | |||
Preferred stock, $0.001 par value; 1,000,000 shares authorized; zero issued | ? | ? | |
Common stock, $0.001 par value; 175,000,000 shares authorized; 16,612,266 and | 17 | 12 | |
Additional paid-in-capital | 375,517 | 368,945 | |
Accumulated other comprehensive loss | (1,404) | (859) | |
Accumulated deficit | (402,559) | (388,523) | |
Total stockholders' deficit | (28,429) | (20,425) | |
Total liabilities and stockholders' deficit | $ 12,858 | $ 14,436 |
REMARK HOLDINGS, INC. AND SUBSIDIARIES | |||||||
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss | |||||||
(dollars in thousands, except per share amounts) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
Revenue, including amounts from China Business Partner | $ 3,167 | $ 2,558 | $ 3,993 | $ 7,225 | |||
Cost and expense | |||||||
Cost of revenue (excluding depreciation and amortization) | 2,511 | 1,847 | 2,966 | 6,117 | |||
Sales and marketing | 387 | 188 | 753 | 336 | |||
Technology and development | 567 | 508 | 736 | 963 | |||
General and administrative | 3,244 | 3,933 | 6,077 | 7,872 | |||
Depreciation and amortization | 25 | 37 | 71 | 78 | |||
Impairments | 392 | ? | 392 | ? | |||
Total cost and expense | 7,126 | 6,513 | 10,995 | 15,366 | |||
Operating loss | (3,959) | (3,955) | (7,002) | (8,141) | |||
Other income (expense) | |||||||
Interest expense | (858) | (1,774) | (2,402) | (3,960) | |||
Finance cost related to obligations to issue common stock | (1,050) | ? | (4,626) | ? | |||
Loss on investment | ? | (6,952) | ? | (26,008) | |||
Other gain, net | (7) | 152 | (6) | 151 | |||
Total other expense, net | (1,915) | (8,574) | (7,034) | (29,817) | |||
Net loss | $ (5,874) | $ (12,529) | $ (14,036) | $ (37,958) | |||
Other comprehensive income | |||||||
Foreign currency translation adjustments | (227) | (424) | (545) | (422) | |||
Comprehensive loss | $ (6,101) | $ (12,953) | $ (14,581) | $ (38,380) | |||
Weighted-average shares outstanding, basic and diluted | 14,132,862 | 10,515,777 | 13,819,643 | 10,515,777 | |||
Net loss per share, basic and diluted | $ (0.42) | $ (1.19) | $ (1.02) | $ (3.61) | |||
SOURCE Remark Holdings, Inc.
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