Strong Global Entertainment, Inc.

CIK:0001893448|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Total net revenues	$ 8,121	$ 6,843	$ 15,804	$ 13,360
Total cost of revenues	6,597	5,882	12,973	11,380
Gross profit	1,524	961	2,831	1,980
Selling and administrative expenses:
Selling	369	161	655	397
Administrative	1,866	2,372	3,588	3,212
Total selling and administrative expenses	2,235	2,533	4,243	3,609
Loss from operations	(711)	(1,572)	(1,412)	(1,629)
Other income (expense):
Interest expense, net	(21)	(17)	(55)	(31)
Foreign currency transaction loss	(6)		(5)	(4)
Other income, net	2	1	28	11
Total other expense	(25)	(16)	(32)	(24)
Loss from continuing operations before income taxes	(736)	(1,588)	(1,444)	(1,653)
Income tax (benefit) expense	(6)	279	(6)	(81)
Net loss from continuing operations	(742)	(1,309)	(1,450)	(1,734)
Net income from discontinued operations (Note 3)	150	893	785	1,694
Net loss	$ (592)	$ (416)	$ (665)	$ (40)
Basic net (loss) income per share:
Continuing operations	$ (0.09)	$ (0.20)	$ (0.18)	$ (0.28)
Discontinued operations	0.02	0.14	0.10	0.27
Basic net loss per share	(0.07)	(0.06)	(0.08)	(0.01)
Diluted net (loss) income per share:
Continuing operations	(0.09)	(0.20)	(0.18)	(0.28)
Discontinued operations	0.02	0.14	0.10	0.27
Diluted net loss per share	$ (0.07)	$ (0.06)	$ (0.08)	$ (0.01)
Weighted-average shares used in computing net (loss) income per share:
Basic	7,904	6,553	7,891	6,278
Diluted	7,904	6,553	7,891	6,278
Product [Member]
Total net revenues	$ 4,782	$ 3,794	$ 9,417	$ 7,564
Total cost of revenues	3,973	3,542	7,874	6,875
Service [Member]
Total net revenues	3,339	3,049	6,387	5,796
Total cost of revenues	$ 2,624	$ 2,340	$ 5,099	$ 4,505

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Cash flows from operating activities:
Net loss from continuing operations	$ (1,450)	$ (1,734)
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Provision for (recovery of) doubtful accounts	30	(26)
(Benefit from) provision for obsolete inventory	(38)	30
Provision for warranty	3	6
Depreciation and amortization	207	126
Gain on acquisition of ICS assets	(17)
Amortization and accretion of operating leases	94	32
Deferred income taxes		(432)
Stock-based compensation expense	147	766
Changes in operating assets and liabilities:
Accounts receivable	(387)	(45)
Inventories	(1,027)	395
Current income taxes	(51)	9
Other assets	1	438
Accounts payable and accrued expenses	1,262	2,594
Deferred revenue and customer deposits	304	(569)
Operating lease obligations	(100)	(38)
Net cash (used in) provided by operating activities from continuing operations	(1,022)	1,552
Net cash used in operating activities from discontinued operations	(572)	(2,139)
Net cash used in operating activities	(1,594)	(587)
Cash flows from investing activities:
Capital expenditures	(20)	(119)
Net cash used in investing activities from continuing operations	(20)	(119)
Net cash used in investing activities from discontinued operations	(59)	(283)
Net cash used in investing activities	(79)	(402)
Cash flows from financing activities:
Principal payments on short-term debt	(32)
Principal payments on long-term debt	(135)	(18)
Payments of withholding taxes for net share settlement of equity awards	(6)	(104)
Proceeds from initial public offering		2,411
Payments on finance lease obligations	(124)	(60)
Net cash transferred to parent		(2,283)
Net cash used in financing activities from continuing operations	(297)	(54)
Net cash provided by financing activities from discontinued operations	477	1,930
Net cash provided by financing activities	180	1,876
Effect of exchange rate changes on cash and cash equivalents from discontinued operations	(11)	(132)
Net (decrease) increase in cash and cash equivalents from continuing operations	(1,339)	1,379
Net decrease in cash and cash equivalents from discontinued operations	(165)	(624)
Net (decrease) increase in cash and cash equivalents	(1,504)	755
Cash and cash equivalents from continuing operations at beginning of period	4,822	2,889
Cash and cash equivalents from continuing operations at end of period	$ 3,483	$ 4,268

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 3,483	$ 4,822
Accounts receivable (net of credit allowances of $53 and $40, respectively)	4,308	3,528
Inventories, net	2,548	1,482
Assets of discontinued operations	12,730	14,329
Other current assets	399	317
Total current assets	23,468	24,478
Property, plant and equipment, net	429	487
Operating lease right-of-use assets	267	350
Finance lease right-of-use asset	1,071	1,201
Other long-term assets		10
Total assets	25,235	26,526
Current liabilities:
Accounts payable	3,448	2,569
Accrued expenses	2,302	1,712
Payable to Fundamental Global Inc. (Note 14)		129
Short-term debt	43	18
Current portion of long-term debt	271	270
Current portion of operating lease obligations	180	183
Current portion of finance lease obligations	264	253
Deferred revenue and customer deposits	1,151	849
Liabilities of discontinued operations	9,503	11,257
Total current liabilities	17,162	17,240
Operating lease obligations, net of current portion	129	216
Finance lease obligations, net of current portion	836	971
Long-term debt, net of current portion	166	301
Other long-term liabilities	5	4
Total liabilities	18,298	18,732
Commitments, contingencies and concentrations (Note 13)
Stockholders’ Equity:
Preferred stock, no par value; 150,000,000 shares authorized, none issued and outstanding as of June 30, 2024 and December 31, 2023
Paid-in-capital related to:
Accumulated deficit	(3,377)	(2,712)
Accumulated other comprehensive loss	(5,567)	(5,234)
Total stockholders’ equity	6,937	7,794
Total liabilities and stockholders’ equity	25,235	26,526
Common Class A [Member]
Paid-in-capital related to:
Paid-in-capital related to common stock, value
Common Class B [Member]
Paid-in-capital related to:
Paid-in-capital related to common stock, value	$ 15,881	$ 15,740