Form 8-K - Current report

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): November 7, 2024

 

OBLONG, INC.

(Exact name of registrant as specified in its charter)

 

Delaware (State or other jurisdiction of Incorporation or organization)

001-35376 (Commission File Number)

77-0312442 (IRS Employer Identification No.)

 

110 16th Street, Suite 1400 - 1024

Denver, Colorado 80202

(Address of principal executive offices, zip code)

 

 

[phone] ext. 5

(Registrant’s telephone number, including area code)

 

 

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a‑12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.0001 per share

OBLG

Nasdaq Capital Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

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Item 2.02 Results of Operations and Financial Condition.

 

On November 7, 2024, Oblong, Inc., a Delaware corporation (the “Company”), issued a press release announcing the Company’s financial results for the three and nine months ended September 30, 2024. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated in this Item 2.02 by reference.

 

The information contained in Item 2.02 of this Current Report on Form 8-K, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be deemed incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, whether made before or after the date hereof, and regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such a filing.

 

 

9.01 Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit No.			Description
99.1			Press release of Oblong, Inc. dated November 7, 2024
104			Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

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SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

OBLONG, INC.

 

 

Date: November 7, 2024                    By:    /s/ Peter Holst        

Name: Peter Holst

Title: President & CEO

 

 

 

 

EXHIBIT 99.1

 

Oblong Announces Financial Results for Third Quarter 2024 and Provides Business Update

 

November 7, 2024 -- (BUSINESS WIRE) Oblong, Inc. (Nasdaq: OBLG) (“Oblong” or the “Company”), an innovator in collaboration solutions, today reported financial results for the three and nine months ended September 30, 2024, and provided updates on the Company’s business and strategy.

 

"As of September 30, 2024, our financial footing remains strong, with $5.6 million in cash and zero debt. We further boosted liquidity in October with an additional $231,000 from common stock warrant exercises and streamlined operations to increase efficiency, resulting in expected annual savings of $1.2 million. With this solid financial position, we believe we’re on track to maintain momentum into mid-2026. In September 2024, we proudly regained full compliance with Nasdaq's listing standards. Our focus is now on identifying impactful growth avenues, including mergers and acquisitions, to fuel a new phase of expansion. We're exploring a range of strategic possibilities—from potential business combinations and reverse mergers to a potential sale of certain assets to further expand liquidity and narrow our operating focus. Each pathway is being evaluated to maximize sustainable growth and unlock new value for our stakeholders," said Peter Holst, CEO of Oblong.

 

Third Quarter 2024 Financial Results

 

•

As of September 30, 2024, the Company had $5.6 million of cash and cash equivalents and no debt.

 

•

The Company received net cash proceeds of $0.7 million during the third quarter of 2024 from the exercise of common warrants.

 

•

Total revenue was $0.6 million for the third quarter of 2024 versus $0.9 million for the third quarter of 2023.

 

 

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•

Net loss was $1.0 million for the third quarter of 2024 compared to $0.9 million for the third quarter of 2023.

 

•

Adjusted EBITDA (“AEBITDA”) loss was $1.0 million for the third of 2024 compared to $0.8 million for the third quarter of 2023. AEBITDA loss is a non-GAAP financial measure. See “Non-GAAP Financial Information” below for additional information regarding this non-GAAP financial measure, and “GAAP to Non-GAAP Reconciliation” for a reconciliation of this non-GAAP financial measure to net loss.

 

Non-GAAP Financial Information

 

Adjusted EBITDA (“AEBITDA”) loss, a non-GAAP financial measure, is defined as net loss before amortization, stock-based compensation and expense, severance, impairment charges, casualty gain (insurance proceeds), income tax expense, and interest income, net. AEBITDA loss is not intended to replace operating loss, net loss, cash flow or other measures of financial performance reported in accordance with generally accepted accounting principles (GAAP). Rather, AEBITDA loss is an important measure used by management to assess the operating performance of the Company and to compare such performance between periods. AEBITDA loss as defined here may not be comparable to similarly titled measures reported by other companies due to differences in accounting policies. Therefore, AEBITDA loss should be considered in conjunction with net loss and other performance measures prepared in accordance with GAAP, such as operating loss or cash flow used in operating activities, and should not be considered in isolation or as a substitute for GAAP measures, such as net loss, operating loss or any other GAAP measure of liquidity or financial performance. A GAAP to non-GAAP reconciliation of net loss to AEBITDA loss is shown under “GAAP to Non-GAAP Reconciliation” later in this release.

 

About Oblong, Inc.

 

Oblong (Nasdaq:OBLG) provides innovative and patented technologies that change the way people work, create, and communicate. Oblong’s flagship product Mezzanine™ is a remote meeting technology platform that offers simultaneous content sharing to achieve situational awareness for both in-room and remote collaborators. Oblong supplies Mezzanine systems to Fortune 500 and enterprise customers. For more information, visit www.oblong.com and Oblong’s Twitter and Facebook pages.

 

 

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Forward looking and cautionary statements

 

This press release and any oral statements made regarding the subject of this release contain forward-looking statements as defined under Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, that address activities that Oblong assumes, plans, expects, believes, intends, projects, estimates or anticipates (and other similar expressions) will, should or may occur in the future are forward-looking statements. Oblong’s actual results may differ materially from its expectations, estimates and projections, and consequently you should not rely on these forward-looking statements as predictions of future events. Without limiting the generality of the foregoing, forward-looking statements contained in this press release include statements relating to (i) the Company's exploration of strategic alternatives, including the Company’s goal to forge partnerships with select early-stage technology companies and the mission to deliver innovative technology solutions, and (ii) the Company’s liquidity and operating expense projections. There can be no assurance that the strategic review being undertaken will result in a merger, sale or other business combination involving the Company. The forward-looking statements are based on management’s current belief, based on currently available information, as to the outcome and timing of future events, and involve factors, risks, and uncertainties, including the volatility of market price for our securities, that may cause actual results in future periods to differ materially from such statements. A list and description of these and other risk factors can be found in the Company’s Annual Report on Form 10-K for the year ending December 31, 2023 and in other filings made by the Company with the SEC from time to time. Any of these factors could cause Oblong’s actual results and plans to differ materially from those in the forward-looking statements. Therefore, the Company can give no assurance that its future results will be as estimated. The Company does not intend to, and disclaims any obligation to, correct, update, or revise any information contained herein.

 

Investor Relations Contact

David Clark

[e-mail]

[phone] ext. 5

 

 

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OBLONG, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

($ in thousands, except shares, par value, and stated value)

 

		September 30, 2024				December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents		$	5,619			$	5,990
Accounts receivable, net			33				424
Inventory, net			50				239
Prepaid expenses and other current assets			283				243
Total current assets			5,985				6,896
Operating lease - right of use asset, net			—				17
Other assets			8				12
Total assets		$	5,993			$	6,925
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable			93				211
Accrued expenses and other current liabilities			1,175				1,038
Current portion of deferred revenue			52				132
Operating lease liabilities			—				17
Total current liabilities			1,320				1,398
Long-term liabilities:
Deferred revenue, net of current portion			2				26
Total liabilities			1,322				1,424
Commitments and contingencies (see Note 9)
Stockholders’ equity:
Preferred stock Series F, convertible; $0.0001 par value; $560,884 stated value; 42,000 shares authorized, 545 and 1,930 shares issued and outstanding at September 30, 2024 and December 31, 2023, respectively			—				—
Common stock, $0.0001 par value; 150,000,000 shares authorized; 1,071,545 shares issued and 1,071,356 shares outstanding at September 30, 2024 and 573,644 shares issued and 573,455 outstanding at December 31, 2023			—				—
Treasury Stock, 189 common shares			(181	)			(181	)
Additional paid-in capital			236,242				233,913
Accumulated deficit			(231,390	)			(228,231	)
Total stockholders' equity			4,671				5,501
Total liabilities and stockholders’ equity			5,993				6,925

 

 

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OBLONG, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in thousands) (Unaudited)

 

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2024				2023				2024				2023
Revenue		$	578			$	872			$	1,815			$	2,866
Cost of revenue (exclusive of amortization)			499				648				1,619				2,244
Gross profit			79				224				196				622
Operating expenses:
Research and development			38				5				153				16
Sales and marketing			66				81				177				241
General and administrative			1,047				977				3,140				3,723
Amortization			—				86				—				259
Impairment charges			—				—				—				2
Casualty gain (insurance proceeds)			—				—				—				(400	)
Total operating expenses			1,151				1,149				3,470				3,841
Operating loss			(1,072	)			(925	)			(3,274	)			(3,219	)
Interest income, net			(32	)			(30	)			(124	)			(94	)
Loss before income taxes			(1,040	)			(895	)			(3,150	)			(3,125	)
Income tax expense			—				—				9				38
Net loss		$	(1,040	)		$	(895	)		$	(3,159	)		$	(3,163	)

 

GAAP to Non-GAAP Reconciliation:

 

		Three Months Ended								Nine Months Ended
		September 30,								September 30,
		2024				2023				2024				2023
Net loss		$	(1,040	)		$	(895	)		$	(3,159	)		$	(3,163	)
Amortization			-				86				-				259
Interest income, net			(32	)			(30	)			(124	)			(94	)
Income tax expense			-				-				9				38
Impairment charges			-				-				-				2
Casualty gain (insurance proceeds)			-				-				-				(400	)
Severance			106				-				106				-
Stock-based compensation and expense			-				31				62				473
Adjusted EBITDA loss		$	(966	)		$	(808	)		$	(3,106	)		$	(2,885	)

 

 

Document And Entity Information	Nov. 07, 2024
Document Information [Line Items]
Entity, Registrant Name	OBLONG, INC.
Document, Type	8-K
Document, Period End Date	Nov. 07, 2024
Entity, Incorporation, State or Country Code	DE
Entity, File Number	001-35376
Entity, Tax Identification Number	77-0312442
Entity, Address, Address Line One	110 16th Street
Entity, Address, Address Line Two	Suite 1400 - 1024
Entity, Address, City or Town	Denver
Entity, Address, State or Province	CO
Entity, Address, Postal Zip Code	80202
City Area Code	213
Local Phone Number	683-8863
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock
Trading Symbol	OBLG
Security Exchange Name	NASDAQ
Entity, Emerging Growth Company	false
Amendment Flag	false
Entity, Central Index Key	0000746210

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