Wi-LAN Inc.

CIK:0001518419|SEC Filings

Consolidated Statements of Operations - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Revenues
Revenues	$ 77,401	$ 134,711
Cost of revenues (excluding depreciation and amortization)
Cost of revenues (excluding depreciation and amortization)	58,574	49,309
Gross Profit excluding Depreciation and Amortization	18,827	85,402
Operating expenses
Depreciation of property, plant and equipment (Note 9)	1,517	1,057
Amortization of intangibles (Note 10)	25,633	24,922
Selling, general and administrative expenses	26,992	19,970
Research and development expenses	3,571	3,255
Loss on disposal of intangibles (Note 10)		21,916
Impairment losses on intangibles (Note 10)	509	4,350
Impairment loss on goodwill (Note 11)	16,066
Special charges, net (Note 21)	2,991	(294)
Operating expenses	77,279	75,176
Results from operations	(58,452)	10,226
Finance income	(959)	(703)
Finance expense	220	1,053
Foreign exchange gain	(192)	(204)
Other income	(1,134)	(390)
(Loss) income before taxes	(56,387)	10,470
Current income tax expense (Note 16)	1,078	7,195
Deferred income tax recovery (Note 16)	(8,345)	(6,951)
Income tax (recovery) expense	(7,267)	244
Net (loss) income	$ (49,120)	$ 10,226
Net (loss) income per share (Note 14)
Basic	$ (0.41)	$ 0.09
Diluted	$ (0.41)	$ 0.09
Weighted average number of common shares (Note 14)
Basic	118,768,728	118,607,569
Diluted	118,768,728	118,615,683
License [Member]
Revenues
Revenues	$ 23,544	$ 101,553
Cost of revenues (excluding depreciation and amortization)
Cost of revenues (excluding depreciation and amortization)	27,702	29,559
Systems [Member]
Revenues
Revenues	29,252	17,641
Cost of revenues (excluding depreciation and amortization)
Cost of revenues (excluding depreciation and amortization)	18,945	11,880
Services [Member]
Revenues
Revenues	2,629	2,086
Cost of revenues (excluding depreciation and amortization)
Cost of revenues (excluding depreciation and amortization)	1,276	1,091
Recurring [Member]
Revenues
Revenues	21,976	13,431
Cost of revenues (excluding depreciation and amortization)
Cost of revenues (excluding depreciation and amortization)	$ 10,651	$ 6,779

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Cash generated from (used in):
Net (loss) income	$ (49,120)	$ 10,226
Non-cash items
Stock-based compensation	468	663
Depreciation and amortization	27,150	25,979
Foreign exchange loss (gain)	299	(267)
Equity in earnings from joint venture	(942)	(390)
Loss on disposal of intangibles		21,916
Impairment losses on intangibles	509	4,350
Impairment loss on goodwill	16,066
Contingent consideration adjustment (Note 15)	(3,545)	(1,976)
Gain on disposal of assets	(24)	(9)
Deferred income tax expense (recovery)	(8,345)	(6,951)
Accrued investment income		1,772
Embedded derivatives	(78)	39
Changes in non-cash working capital balances
Accounts receivable	8,328	12,826
Unbilled revenue	4,755	1,850
Inventories	(983)	1,399
Prepaid expenses and deposits	1,621	(558)
Deferred revenue	(1,624)	1,272
Payments associated with success fee obligation		(492)
Accounts payable and accrued liabilities	(2,264)	(2,205)
Income taxes payable	(655)	511
Cash (used in) generated from operations	(8,384)	69,955
Financing
Dividends paid (Note 14(c))	(4,605)	(4,563)
Long term accounts receivable	(415)
Bank indebtedness	(970)	1,348
Repayment of long-term debt	(44)	(434)
Common shares repurchased under normal course issuer bid		(552)
Common shares issued for cash from Employee Share Purchase Plan	27	68
Cash used in financing	(6,007)	(4,133)
Investing
Business combinations (Note 4)		67,415
Dividends received from joint venture (Note 8)	317	176
Sale (purchase) of restricted short-term investments	1,300	(3,500)
Proceeds from sale of property, plant and equipment	54	13
Purchase of property and equipment	(575)	(399)
Repayment of patent finance obligations	(4,167)	(19,556)
Purchase of intangibles	(133)	(150)
Cash used in investing	(3,204)	(90,831)
Foreign exchange (loss) gain on cash held in foreign currency	(294)	274
Net decrease in cash and cash equivalents	(17,889)	(24,735)
Cash and cash equivalents, beginning of year	81,818	106,553
Cash and cash equivalents, end of year	$ 63,929	$ 81,818

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 63,929	$ 81,818
Short-term investments	1,139	1,236
Restricted short-term investments	2,200	3,500
Accounts receivable (net of allowance for doubtful accounts) (Note 18)	10,812	19,298
Other current assets	91	13
Unbilled revenue	3,990	3,045
Income taxes receivable	198	144
Inventories (net of obsolescence) (Note 7)	5,960	5,083
Prepaid expenses and deposits	2,332	4,129
Total Current Assets	90,651	118,266
Non-current assets
Accounts receivable (Note 18)	415
Property, plant and equipment (Note 9)	2,655	3,801
Intangible assets (Note 10)	87,425	114,944
Investment in joint venture (Note 8)	3,822	3,383
Deferred income tax assets (Note 16)	27,141	20,195
Goodwill (Note 11)	25,303	42,587
Total non-current assets	146,761	184,910
TOTAL ASSETS	237,412	303,176
Current liabilities
Bank indebtedness (Note 13)	2,598	3,568
Accounts payable and accrued liabilities (Note 12)	18,103	20,487
Income taxes payable (Note 16)		599
Contingent consideration (Note 4)	929
Current portion of patent finance obligation		4,090
Current portion of deferred revenue (Note 6)	4,670	6,733
Current portion of long-term debt	299	115
Total Current Liabilities	26,599	35,592
Non-current liabilities
Contingent consideration (Note 4)		4,474
Deferred revenue (Note 6)	1,435	884
Long-term debt	173	401
Deferred income tax liabilities (Note 16)	4,337	7,291
Total non-current liabilities	5,945	13,050
TOTAL LIABILITIES	32,544	48,642
Shareholders’ equity
Capital stock (Note 14)	419,111	418,873
Additional paid-in capital (Note 14)	22,957	22,489
Accumulated other comprehensive income	16,243	20,111
Deficit	(253,443)	(206,939)
Total Stockholders' Equity	204,868	254,534
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 237,412	$ 303,176