2022 Q4 Form 10-K Financial Statement

#000110465923035161 Filed on March 21, 2023

View on sec.gov

Income Statement

Concept 2022 Q4 2022 2021
Revenue $527.0M $1.851B $0.00
YoY Change
Cost Of Revenue $243.0M $832.0M $477.0M
YoY Change 40.46% 74.42% -9.83%
Gross Profit $284.0M $1.019B $286.0M
YoY Change 149.12% 256.29% 8.33%
Gross Profit Margin 53.89% 55.05%
Selling, General & Admin $272.0M $1.038B $12.86M
YoY Change 9272.78% 7968.76% 2105.53%
% of Gross Profit 95.77% 101.86% 4.5%
Research & Development $388.0M $264.0M
YoY Change 46.97% -4.69%
% of Gross Profit 38.08% 92.31%
Depreciation & Amortization $48.00M $182.0M $154.0M
YoY Change -4.0% 18.18% 4.05%
% of Gross Profit 16.9% 17.86% 53.85%
Operating Expenses $320.0M $1.220B $12.86M
YoY Change 10926.8% 9383.52% 2105.52%
Operating Profit -$36.00M -$201.0M $273.1M
YoY Change -132.4% -173.59% 3.69%
Interest Expense -$51.00M -$90.00M $5.465K
YoY Change 115.68% -1646943.55% 1220.05%
% of Operating Profit 0.0%
Other Income/Expense, Net $4.000M $1.000M $19.06M
YoY Change 0.0% -94.75% -200.03%
Pretax Income -$85.00M -$287.0M $6.200M
YoY Change 220.17% -4729.11% -131.56%
Income Tax -$22.00M -$61.00M -$186.0M
% Of Pretax Income -3000.05%
Net Earnings -$26.00M -$25.00M $6.200M
YoY Change -2.07% -503.23% -131.56%
Net Earnings / Revenue -4.93% -1.35%
Basic Earnings Per Share -$0.50
Diluted Earnings Per Share -$0.44 -$0.49 $60.72K
COMMON SHARES
Basic Shares Outstanding 51.27M
Diluted Shares Outstanding 445.7M

Balance Sheet

Concept 2022 Q4 2022 2021
SHORT-TERM ASSETS
Cash & Short-Term Investments $303.0M $303.0M $161.3K
YoY Change 187772.02% 187772.02% -37.46%
Cash & Equivalents $303.0M $303.0M $516.0M
Short-Term Investments
Other Short-Term Assets $130.0M $130.0M $495.9K
YoY Change 26113.91% 26113.91% -55.93%
Inventory
Prepaid Expenses
Receivables $765.0M $765.0M $381.0M
Other Receivables $36.00M $36.00M $61.00M
Total Short-Term Assets $1.234B $1.234B $657.2K
YoY Change 17.3% 187669.14% -52.49%
LONG-TERM ASSETS
Property, Plant & Equipment $276.0M $276.0M $275.0M
YoY Change 27.78% 0.36% -33.09%
Goodwill $1.188B
YoY Change -12.52%
Intangibles $636.0M
YoY Change -14.75%
Long-Term Investments $14.00M $14.00M $817.4M
YoY Change -17.65% -98.29% 0.05%
Other Assets $380.0M $380.0M $323.0M
YoY Change 826.83% 17.65% 308.86%
Total Long-Term Assets $2.494B $2.494B $817.4M
YoY Change -8.28% 205.13% 0.05%
TOTAL ASSETS
Total Short-Term Assets $1.234B $1.234B $657.2K
Total Long-Term Assets $2.494B $2.494B $817.4M
Total Assets $3.728B $3.728B $818.0M
YoY Change -1.14% 355.74% -0.04%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $253.0M $253.0M $6.560M
YoY Change 84.67% 3756.45% 1612.19%
Accrued Expenses $469.0M $469.0M $435.0M
YoY Change 7.82% 19.83%
Deferred Revenue $19.00M
YoY Change 5.56%
Short-Term Debt $0.00 $0.00 $5.800M
YoY Change -100.0% -100.0% 286.67%
Long-Term Debt Due $3.000M $3.000M $3.000M
YoY Change 0.0% 0.0% -57.14%
Total Short-Term Liabilities $773.0M $773.0M $14.40M
YoY Change 7.21% 5267.82% 538.13%
LONG-TERM LIABILITIES
Long-Term Debt $1.219B $1.219B $0.00
YoY Change 19.51%
Other Long-Term Liabilities $341.0M $341.0M $84.53M
YoY Change 1382.61% 303.4% -18.11%
Total Long-Term Liabilities $1.560B $1.560B $84.53M
YoY Change 49.57% 1745.46% -18.11%
TOTAL LIABILITIES
Total Short-Term Liabilities $773.0M $773.0M $14.40M
Total Long-Term Liabilities $1.560B $1.560B $84.53M
Total Liabilities $3.576B $3.576B $98.93M
YoY Change 57.05% 3514.58% -6.21%
SHAREHOLDERS EQUITY
Retained Earnings -$175.0M
YoY Change -83.57%
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $152.0M $152.0M $719.1M
YoY Change
Total Liabilities & Shareholders Equity $3.728B $3.728B $818.0M
YoY Change -1.14% 355.74% -0.04%

Cashflow Statement

Concept 2022 Q4 2022 2021
OPERATING ACTIVITIES
Net Income -$26.00M -$25.00M $6.200M
YoY Change -2.07% -503.23% -131.56%
Depreciation, Depletion And Amortization $48.00M $182.0M $154.0M
YoY Change -4.0% 18.18% 4.05%
Cash From Operating Activities -$4.000M -$394.0M -$4.025M
YoY Change 463.19% 9689.24% 64.87%
INVESTING ACTIVITIES
Capital Expenditures $21.00M $94.00M -$44.00M
YoY Change -231.25% -313.64% -6.38%
Acquisitions
YoY Change
Other Investing Activities -$1.000M -$1.000M $0.00
YoY Change -100.0%
Cash From Investing Activities -$22.00M -$95.00M $0.00
YoY Change -100.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $0.00 -$168.0M
YoY Change
Debt Paid & Issued, Net $3.000M $551.0M
YoY Change -99.46% 13675.0%
Cash From Financing Activities -1.000M 292.0M 3.928M
YoY Change 7333.37% -99.52%
NET CHANGE
Cash From Operating Activities -4.000M -394.0M -4.025M
Cash From Investing Activities -22.00M -95.00M 0.000
Cash From Financing Activities -1.000M 292.0M 3.928M
Net Change In Cash -27.00M -197.0M -96.60K
YoY Change 3701.53% 203844.3% -137.46%
FREE CASH FLOW
Cash From Operating Activities -$4.000M -$394.0M -$4.025M
Capital Expenditures $21.00M $94.00M -$44.00M
Free Cash Flow -$25.00M -$488.0M $39.98M
YoY Change -263.51% -1320.76% -10.29%

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<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt 0pt 12pt 0pt;"><i style="font-style:italic;">Use of Estimates</i></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">The preparation of consolidated financial statements in conformity with U.S. GAAP requires estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures in the consolidated financial statements and accompanying notes. Estimates are used for, but not limited to, supplier revenue, allowance for credit losses, depreciable lives of property and equipment, acquisition purchase price allocations including valuation of acquired intangible assets and goodwill and contingent consideration, fair value determination of equity-based compensation, valuation of operating lease right-of-use (“ROU”) assets, impairment of goodwill, other intangible assets, long-lived assets, capitalized client incentives and investments in equity method investments, valuation allowances on deferred income taxes, valuation of pensions, interest rate swaps, warrants and Earnout Shares and accrual of contingent liabilities. Actual results could differ materially from those estimates.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">The COVID-19 pandemic has created and may continue to create significant uncertainty in macroeconomic conditions, which may cause further business disruptions and adversely impact the Company’s results of operations. As a result, many of the Company’s estimates and assumptions require increased judgment. As events continue to evolve and additional information becomes available, the Company’s estimates may change materially in future periods.</p>
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<p style="font-family:'Times New Roman','Times','serif';font-size:10pt;margin:0pt 0pt 12pt 0pt;"><i style="font-style:italic;">Certain Risks and Concentrations</i></p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">Financial instruments, which potentially subject the Company to concentration of credit risk, consist primarily of cash and cash equivalents and accounts receivable.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">The Company maintains cash and cash equivalents balances with financial institutions that are in excess of Federal Deposit Insurance Corporation (or equivalent) insurance limits. The Company’s cash and cash equivalents are primarily composed of current account balances in banks, are mainly non-interest bearing and are primarily denominated in U.S. dollar, British pound sterling and Euro currencies. As of December 31, 2022, approximately 35% of our cash balance is with a single bank.</p><p style="font-family:'Times New Roman','Times','serif';font-size:10pt;text-indent:36pt;margin:0pt 0pt 12pt 0pt;">Concentrations of credit risk associated with accounts receivable are considered minimal due to the Company’s diverse customer base spread across different countries.</p>
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