$INSG
NOVATEL WIRELESS INC
CIK:0001022652|SEC Filings
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands |
6 Months Ended | |
|---|---|---|
Jun. 30, 2026 |
Jun. 30, 2025 |
|
| Cash flows from operating activities: | ||
| Net income (loss) | $ (12,974) | $ (1,063) |
| Adjustments to reconcile net loss to net cash used in operating activities: | ||
| (Income) Loss from discontinued operations, net of tax | 0 | 400 |
| Depreciation and amortization | 4,075 | 3,890 |
| Provision for expected credit losses | 42 | 103 |
| Impairment of capitalized software | 341 | 384 |
| Provision for excess and obsolete inventory | 1,090 | 1,194 |
| Share-based compensation expense | 5,353 | 3,255 |
| Amortization of debt discount (premium) and debt issuance costs, net | (238) | (65) |
| Deferred income taxes | 6 | 6 |
| Non-cash operating lease expense | 435 | 527 |
| Other | 147 | 0 |
| Changes in assets and liabilities: | ||
| Accounts receivable | (15,085) | (10,370) |
| Inventories | (2,287) | (2,664) |
| Prepaid expenses and other assets | (879) | 1,355 |
| Accounts payable | 6,237 | 4,051 |
| Accrued expenses and other liabilities | (7,853) | (7,404) |
| Operating lease liabilities | (472) | (654) |
| Operating cash flows from continuing operations | (22,062) | (7,055) |
| Operating cash flows from discontinued operations | 0 | (881) |
| Net cash used in operating activities | (22,062) | (7,936) |
| Cash flows from investing activities: | ||
| Purchases of property, plant and equipment | (479) | (220) |
| Additions to capitalized software development costs and purchases of intangible assets | (7,808) | (4,371) |
| Investing cash flows from continuing operations | (8,287) | (4,591) |
| Investing cash flows from discontinued operations | 0 | 710 |
| Net cash used in investing activities | (8,287) | (3,881) |
| Cash flows from financing activities: | ||
| Payments related to repayments of 2025 Convertible Notes | 0 | (14,949) |
| Draws on Working Capital Facility | 10,000 | 0 |
| Cash payments as part of preferred stock exchange | (3,334) | 0 |
| Proceeds from stock option exercises and employee stock purchase plan, net of taxes | 699 | 272 |
| Financing cash flows from continuing operations | 7,365 | (14,677) |
| Financing cash flows from discontinued operations | 0 | 0 |
| Net cash provided by (used in) financing activities | 7,365 | (14,677) |
| Effect of exchange rates on cash | (24) | 119 |
| Net decrease in cash and cash equivalents | (23,008) | (26,375) |
| Cash and cash equivalents, beginning of period | 24,886 | 39,596 |
| Cash and cash equivalents, end of period | 1,878 | 13,221 |
| Cash paid during the year for: | ||
| Interest | 2,227 | 2,092 |
| Income taxes | (12) | 1,414 |
| Supplemental disclosures of non-cash investing and financing activities: | ||
| Capital expenditures financed through accounts payable or accrued liabilities | 674 | 225 |
| Fair value of common stock, debt, and cash payables issued as part of preferred stock exchange | 23,532 | 0 |
| Carrying value of preferred stock removed as part of preferred stock exchange | $ 41,966 | $ 0 |
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands |
Jun. 30, 2026 |
Dec. 31, 2025 |
|---|---|---|
| Current assets: | ||
| Cash and cash equivalents | $ 1,878 | $ 24,886 |
| Accounts receivable, net of allowance for expected credit losses of $201 and $159, respectively | 40,129 | 25,086 |
| Inventories | 8,923 | 7,726 |
| Prepaid expenses and other current assets | 7,168 | 6,389 |
| Total current assets | 58,098 | 64,087 |
| Property, plant and equipment, net of accumulated depreciation of $12,445 and $26,063, respectively | 1,318 | 1,087 |
| Intangible assets, net of accumulated amortization of $34,839 and $32,336, respectively | 23,350 | 20,676 |
| Goodwill | 3,949 | 3,949 |
| Operating lease right-of-use assets | 3,016 | 3,451 |
| Other assets | 657 | 557 |
| Total assets | 90,388 | 93,807 |
| Current liabilities: | ||
| Accounts payable | 28,687 | 23,583 |
| Accrued expenses and other current liabilities | 25,645 | 24,856 |
| Total current liabilities | 54,332 | 48,439 |
| Long-term liabilities: | ||
| Operating lease liabilities | 2,381 | 2,910 |
| Deferred tax liabilities, net | 192 | 186 |
| Working Capital Facility | 10,000 | 0 |
| 2029 Senior Secured Notes, net | 50,291 | 41,611 |
| Other long-term liabilities | 3,754 | 4,705 |
| Total liabilities | 120,950 | 97,851 |
| Commitments and contingencies (Note 9.) | ||
| Preferred stock, par value $0.001; 2,000,000 shares authorized: | ||
| Preferred stock, par value $0.001; 39,500 shares designated, no shares outstanding as of June 30, 2026, 25,000 issued and outstanding as of December 31, 2025 (aggregate liquidation preference of $41,966 as of December 31, 2025) | 0 | 0 |
| Common stock, par value $0.001; 150,000,000 shares authorized, 16,401,284 and 15,388,978 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively | 16 | 15 |
| Additional paid-in capital | 875,237 | 903,899 |
| Accumulated other comprehensive loss | 420 | 403 |
| Accumulated deficit | (906,235) | (908,361) |
| Total stockholders’ deficit | (30,562) | (4,044) |
| Total liabilities and stockholders’ deficit | $ 90,388 | $ 93,807 |