American Virtual Cloud Technologies, Inc.

CIK:0001704760|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenues:
Cloud subscription and software (including related party amounts of $0 and $62, respectively)	$ 3,812	$ 3,803
Managed and professional services	241	291
Other	10
Total revenues	4,063	4,094
Cost of revenue (including related party amounts of $0 and $487, respectively)	3,106	4,836
Gross profit (loss)	957	(742)
Research and development	2,878	4,510
Selling, general and administrative (including related party amounts of $0 and $1,036, respectively)	6,722	7,074
Loss from continuing operations	(8,643)	(12,326)
Other (expense) income
Change in fair value of warrant liabilities	1,140	6,911
Reorganization expenses (see note 4)	(3,102)
Gain on sale of assets (see note 6)	802
Interest expense - related parties		(764)
Interest expense - other	(9)	(8,404)
Other expense	(128)	(37)
Total other expenses	(1,297)	(2,294)
Net loss from continuing operations before income taxes	(9,940)	(14,620)
Provision for income taxes	(65)	(6)
Net loss from continuing operations, net of tax	(10,005)	(14,626)
Net income from discontinued operations, net of tax		748
Net loss	$ (10,005)	$ (13,878)
Basic and diluted (loss) income per common share
Loss from continuing operations (in Dollars per share)	$ (0.3)	$ (2.47)
Income from discontinued operations (in Dollars per share)		0.13
Loss per common share (in Dollars per share)	$ (0.3)	$ (2.34)
Weighted average shares outstanding - basic and diluted (in Shares)	33,331,942	5,929,288

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash Flows from Continuing Operations
Net loss from continuing operations	$ (10,005)	$ (14,626)
Adjustments to reconcile net loss from continuing operations to net cash used in continuing operating activities:
Depreciation	416	445
Share-based compensation	1,358	1,376
Change in fair value of warrant liabilities	(1,140)	(6,911)
Amortization of deferred financing costs and discounts		771
Noncash financing fees		708
Gain on sale of assets	(802)
Changes in operating assets and liabilities:
Accounts receivable	2,526	(322)
Prepaid expenses and other current assets	395	(2,794)
Accounts payable and accrued expenses	1,844	(3,686)
Deferred revenue	(23)	497
Other	(9)	37
Net cash used in continuing operating activities	(5,440)	(24,505)
Cash Flows from Continuing Investing Activities:
Purchase of property and equipment	(2)	(246)
Net proceeds from sale of assets	6,139
Deferred development costs		(627)
Net cash provided by (used in) continuing investing activities	6,137	(873)
Cash Flows from Continuing Financing Activities:
Payment of taxes from withheld shares		(32)
Debt repayments		(27,032)
Repayment of promissory note - related party		(5,000)
Proceeds from the issuance of securities		15,000
Proceeds from exercise of certain warrants		4
Payment of deferred financing fees		(427)
Net cash provided by (used in) continuing financing activities		(17,487)
Cash Flows from Discontinued Operations
Net cash provided by (used in) operating activities	2	(3,266)
Net cash provided by investing activities		31,949
Net cash provided by discontinued operations	2	28,683
Net change in cash	699	(14,182)
Cash, beginning of period	12,627	35,255
Cash, end of period	13,326	21,073
Supplemental Disclosures about Cash Flow Information
Cash paid for interest		7,872
Cash paid for income taxes	$ 41	$ 78

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash	$ 13,326	$ 12,627
Trade receivables, net	5,264	7,790
Prepaid expenses and other current assets	4,820	5,985
Total current assets	23,410	26,402
Property and equipment, net		4,784
Other noncurrent assets		723
TOTAL ASSETS	23,410	31,909
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses	5,606	8,651
Deferred revenue		23
Current portion of notes payable		2,315
Other current liabilities		115
Total current liabilities	5,606	11,104
Long-term liabilities
Warrant liabilities		1,873
Other liabilities		441
Total long-term liabilities		2,314
Total liabilities not subject to compromise	5,606	13,418
Liabilities subject to compromise (see note 4)	7,227
Total liabilities	12,833	13,418
Commitments and contingent liabilities (see note 16)
Stockholders’ equity:
Preferred stock, $0.0001 par value; 5,000,000 authorized; none outstanding
Common stock, $0.0001 par value; 500,000,000 shares authorized; 33,532,473 and 32,470,006 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively	3	3
Additional paid-in capital	264,206	262,115
Accumulated deficit	(253,632)	(243,627)
Total stockholders’ equity	10,577	18,491
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 23,410	$ 31,909