\nBoxlight Corporation (Nasdaq: BOXL) (\u201cBoxlight\u201d), a leading provider of interactive technology solutions, today announced the Company’s financial results for the third quarter ended September 30, 2020.\n<\/p>\n
Key Financial Highlights for Q3 2020<\/b><\/p>\n Key Business Highlights for Q3 2020<\/b><\/p>\n Management Commentary<\/b><\/p>\n \n\u201cOur progress during the third quarter was the most significant in our history, and we are one step closer to our vision of market leadership,\u201d commented Michael Pope, Chairman and Chief Executive Officer. \u201cDuring the quarter, we closed on fundraising of over $60 million in debt and equity, acquired Sahara Presentation Systems \u2013 a leading provider of interactive solutions with significant penetration in the EMEA region, augmented our sales leadership, formalized our partnership with Samsung, and steadied our balance sheet with a proper inventory profile and significant working capital.\n<\/p>\n \nAlthough sales and gross profit lagged our expectations in Q3 due to several factors including the effects of COVID-19, we are seeing increased demand in the fourth quarter and expect to generate greater than $27 million in revenue and positive Adjusted EBITDA.\n<\/p>\n \nWe are committed to a tremendous fourth quarter and FY 2021, and we have a renewed focus on strong revenue growth, improving gross margins and positive earnings.\u201d\n<\/p>\n Financial Results for the Three Months Ended September 30, 2020<\/b><\/p>\n \nRevenues for the three months ended September 30, 2020 was $9,476,956, as compared to $11,304,731 for the three months ended September 30, 2019, resulting in a 16% decrease. The decreased in revenues in 2020 is related to the reduction in sales of panels, software and STEM primarily attributable to the school closures as a result of the ongoing COVID-19 global pandemic.\n<\/p>\n \nGross profit for the three months ended September 30, 2020 was $2,024,503, as compared to $3,233,801 for the three months ended September 30, 2019. The decrease in gross margin from 29% to 21% related to changes in the Company\u2019s product mix with a reduction in higher margin products such as software and STEM coupled with a 33% increase in distributor sales compared to 2019.\n<\/p>\n \nGeneral and administrative expenses for the three months ended September 30, 2020 was $3,306,845 as compared to $4,230,372 for the three months ended September 30, 2019. The decrease is primarily driven by reductions in compensation and benefits of $0.7 million, travel and entertainment of $0.2 million and stock compensation of $0.2 million.\n<\/p>\n \nResearch and development expenses were $471,129 and $351,104 for the three months ended September 30, 2020 and 2019, respectively. The change in research and development expense is primarily driven by the increase in contract services related to software consultants.\n<\/p>\n \nOther income (expense) for the three months ended September 30, 2020 was ($2,457,433), as compared to $875,863 for the three months ended September 30, 2019. The increase in other expense is related to a change in fair value of derivative liabilities of $1.6 million and loss from settlement of liabilities of $1.7 million.\n<\/p>\n \nNet loss was $4,210,904 and $471,812 for the three months ended September 30, 2020 and 2019, respectively. The increase in the net loss was primarily driven by a decrease of gross profit, decrease in operating expenses and increase in other expense. The resulting EPS loss for the three months ended September 30, 2020 was $(0.10) per diluted share, compared to $(0.04) per diluted share for the three months ended September 30, 2019.\n<\/p>\n \nAdjusted EBITDA loss for the three months ended September 30, 2020 was $0.9 million, an increase of $0.3 million or 66% compared to $0.5 million for the three months ended September 30, 2019.\n<\/p>\n \nAt September 30, 2020, Boxlight had $9.6 million of cash, $124 million of total assets, $22.3 debt, and 50.9 million shares issued and outstanding.\n<\/p>\n Financial Results for the Nine Months Ended September 30, 2020<\/b><\/p>\n \nRevenues for the nine months ended September 30, 2020 were $23,027,723, as compared to $27,099,654 for the nine months ended September 30, 2019, resulting in a 15% decrease. The decrease in revenues in 2020 is related to the reduction in sales of panels, projectors, software and STEM primarily attributable to school closures as a result of the ongoing COVID-19 global pandemic.\n<\/p>\n \nGross profit for the nine months ended September 30, 2020 was $6,306,113 as compared to $7,895,312 for the nine months ended September 30, 2019. Gross margin decrease from 29% to 27% was related to changes in the Company\u2019s product mix with a reduction in higher margin products such as software and STEM coupled with a 15% increase in distributor sales compared to 2019.\n<\/p>\n \nGeneral and administrative expenses for the nine months ended September 30, 2020 were $10,444,060 as compared to $11,892,814 for the nine months ended September 30, 2019. The decrease was driven primarily by reductions in tradeshows of $0.3 million, contract services of $0.6 million, compensation and benefits of $0.4 million and travel and entertainment of $0.4 million.\n<\/p>\n \nResearch and development expenses were $1,073,095 and $911,682 for the nine months ended September 30, 2020 and 2019, respectively. The increase in research and development expense was driven primarily by an increase in contact services for software consultants.\n<\/p>\n \nOther income (expense) for the nine months ended September 30, 2020 was ($2,375,481), as compared to ($1,591,684) for the nine months ended September 30, 2019. The increase in other expense is related to loss on settlement of the Lind debt $2.3 million, increased interest expense of $0.3 million offset by a gain on settlement of EDI accounts payable by $1.7 million and a decrease in the change in fair value of derivative liabilities of $0.3 million.\n<\/p>\n \nNet loss was $7,586,523 and $6,500,868 for the nine months ended September 30, 2020 and 2019, respectively. The increase in the net loss was primarily driven by a decrease of gross profit, decrease in operating expenses and increase in other expense. The resulting EPS loss for the nine months ended September 30, 2020 was ($0.31) per diluted share, compared to ($0.62) per diluted share for the nine months ended September 30, 2019.\n<\/p>\n \nAdjusted EBITDA loss for the nine months ended September 30, 2020 was $1.6 million, a decrease of $1.5 million compared to $3.1 million for the nine months ended September 30, 2019.\n<\/p>\n \nAdjusted EPS for the nine months ended September 30, 2020 was ($0.06) per diluted share, compared to ($0.37) per diluted share for the nine months ended September 30, 2019.\n<\/p>\n 3rd Quarter 2020 Financial Results Conference Call<\/b><\/p>\n \nManagement will host a conference call to discuss the third quarter 2020 financial results on Monday, November 16, 2020 at 4:30 p.m. Eastern Time. The conference call details are as follows:\n<\/p>\n\n
\n