$SMSI
SMITH MICRO SOFTWARE, INC.

2018 Q3 Form 10-Q Financial Statement

#000156459018025261 Filed on October 26, 2018

View on sec.gov

Income Statement

Concept 2018 Q3 2017 Q3
Revenue $6.525M $5.804M
YoY Change 12.42% -10.4%
Cost Of Revenue $980.0K $1.160M
YoY Change -15.52% -35.48%
Gross Profit $5.546M $4.645M
YoY Change 19.4% -0.75%
Gross Profit Margin 85.0% 80.03%
Selling, General & Admin $3.359M $3.633M
YoY Change -7.54% -28.24%
% of Gross Profit 60.57% 78.21%
Research & Development $2.049M $2.100M
YoY Change -2.43% -49.69%
% of Gross Profit 36.95% 45.21%
Depreciation & Amortization $240.0K $230.0K
YoY Change 4.35% -28.13%
% of Gross Profit 4.33% 4.95%
Operating Expenses $5.491M $5.587M
YoY Change -1.72% -39.51%
Operating Profit $55.00K -$942.0K
YoY Change -105.84% -79.33%
Interest Expense -$1.130M -$315.0K
YoY Change 258.73% -479.52%
% of Operating Profit -2054.55%
Other Income/Expense, Net -$1.000K -$2.000K
YoY Change -50.0% -77.78%
Pretax Income -$976.0K -$1.664M
YoY Change -41.35% -63.99%
Income Tax $7.000K $6.000K
% Of Pretax Income
Net Earnings -$983.0K -$1.670M
YoY Change -41.14% -61.29%
Net Earnings / Revenue -15.07% -28.77%
Basic Earnings Per Share -$0.04 -$0.12
Diluted Earnings Per Share -$0.04 -$0.12
COMMON SHARES
Basic Shares Outstanding 25.02M 14.30M
Diluted Shares Outstanding 25.02M 14.30M

Balance Sheet

Concept 2018 Q3 2017 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $8.400M $3.900M
YoY Change 115.38% -34.39%
Cash & Equivalents $8.387M $3.939M
Short-Term Investments
Other Short-Term Assets $700.0K $700.0K
YoY Change 0.0% -41.67%
Inventory $0.00
Prepaid Expenses
Receivables $6.300M $5.200M
Other Receivables $0.00 $0.00
Total Short-Term Assets $15.50M $9.900M
YoY Change 56.57% -20.55%
LONG-TERM ASSETS
Property, Plant & Equipment $900.0K $1.400M
YoY Change -35.71% -23.66%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $500.0K $100.0K
YoY Change 400.0% -35.06%
Total Long-Term Assets $5.400M $5.700M
YoY Change -5.26% -13.6%
TOTAL ASSETS
Total Short-Term Assets $15.50M $9.900M
Total Long-Term Assets $5.400M $5.700M
Total Assets $20.90M $15.60M
YoY Change 33.97% -18.14%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.100M $1.300M
YoY Change -15.38% -26.76%
Accrued Expenses $2.300M $3.200M
YoY Change -28.13% -31.4%
Deferred Revenue $120.0K
YoY Change
Short-Term Debt $0.00 $2.200M
YoY Change -100.0%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $3.540M $7.100M
YoY Change -50.14% -19.24%
LONG-TERM LIABILITIES
Long-Term Debt $3.000M $1.500M
YoY Change 100.0% -16.67%
Other Long-Term Liabilities $11.30M $2.332M
YoY Change 384.56% -24.97%
Total Long-Term Liabilities $14.30M $4.005M
YoY Change 257.05% -17.83%
TOTAL LIABILITIES
Total Short-Term Liabilities $3.540M $7.100M
Total Long-Term Liabilities $14.30M $4.005M
Total Liabilities $17.80M $11.10M
YoY Change 60.36% -18.78%
SHAREHOLDERS EQUITY
Retained Earnings -$232.8M
YoY Change 4.77%
Common Stock $14.00K
YoY Change -99.99%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $3.138M $4.562M
YoY Change
Total Liabilities & Shareholders Equity $20.90M $15.63M
YoY Change 33.68% -17.97%

Cashflow Statement

Concept 2018 Q3 2017 Q3
OPERATING ACTIVITIES
Net Income -$983.0K -$1.670M
YoY Change -41.14% -61.29%
Depreciation, Depletion And Amortization $240.0K $230.0K
YoY Change 4.35% -28.13%
Cash From Operating Activities -$240.0K -$1.840M
YoY Change -86.96% -57.21%
INVESTING ACTIVITIES
Capital Expenditures -$60.00K -$10.00K
YoY Change 500.0% -94.12%
Acquisitions
YoY Change
Other Investing Activities $0.00
YoY Change -100.0%
Cash From Investing Activities -$60.00K -$10.00K
YoY Change 500.0% 0.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -60.00K 3.410M
YoY Change -101.76% -11.2%
NET CHANGE
Cash From Operating Activities -240.0K -1.840M
Cash From Investing Activities -60.00K -10.00K
Cash From Financing Activities -60.00K 3.410M
Net Change In Cash -360.0K 1.560M
YoY Change -123.08% -431.91%
FREE CASH FLOW
Cash From Operating Activities -$240.0K -$1.840M
Capital Expenditures -$60.00K -$10.00K
Free Cash Flow -$180.0K -$1.830M
YoY Change -90.16% -55.69%

Facts In Submission

Frame Concept Type Concept / XBRL Key Value Unit
CY2017Q3 us-gaap Interest Income Expense Net
InterestIncomeExpenseNet
-315000
CY2018Q3 us-gaap Deferred Tax Assets Net Noncurrent
DeferredTaxAssetsNetNoncurrent
404000
us-gaap Interest Income Expense Net
InterestIncomeExpenseNet
-928000
us-gaap Interest Income Expense Net
InterestIncomeExpenseNet
-445000
CY2018Q3 smsi Accrued Payroll And Benefits Current
AccruedPayrollAndBenefitsCurrent
1843000
CY2018Q3 us-gaap Other Accrued Liabilities Current
OtherAccruedLiabilitiesCurrent
438000
CY2018Q3 us-gaap Contract With Customer Liability Current
ContractWithCustomerLiabilityCurrent
120000
CY2018Q3 us-gaap Liabilities Current
LiabilitiesCurrent
3540000
CY2018Q3 us-gaap Notes Payable Related Parties Noncurrent
NotesPayableRelatedPartiesNoncurrent
1200000
CY2018Q3 us-gaap Warrants And Rights Outstanding
WarrantsAndRightsOutstanding
9918000
CY2017Q3 us-gaap Gains Losses On Extinguishment Of Debt
GainsLossesOnExtinguishmentOfDebt
-405000
us-gaap Gains Losses On Extinguishment Of Debt
GainsLossesOnExtinguishmentOfDebt
-405000
us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.28
CY2018Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
6525000
CY2017Q3 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
5804000
CY2018Q3 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.04
CY2018Q3 us-gaap Restructuring Charges
RestructuringCharges
83000
CY2017Q3 us-gaap Restructuring Charges
RestructuringCharges
-146000
CY2017Q3 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.12
CY2018Q3 us-gaap Fair Value Adjustment Of Warrants
FairValueAdjustmentOfWarrants
902000
us-gaap Fair Value Adjustment Of Warrants
FairValueAdjustmentOfWarrants
3126000
CY2018Q3 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
25020000
CY2017Q3 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
14297000
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
13221000
us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.49
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
20771000
CY2018Q3 us-gaap Preferred Stock Dividends Per Share Declared
PreferredStockDividendsPerShareDeclared
31.58
us-gaap Preferred Stock Dividends Per Share Declared
PreferredStockDividendsPerShareDeclared
105.54
us-gaap Profit Loss
ProfitLoss
-5541000
us-gaap Profit Loss
ProfitLoss
-6501000
us-gaap Depreciation And Amortization
DepreciationAndAmortization
651000
us-gaap Depreciation And Amortization
DepreciationAndAmortization
694000
us-gaap Amortization Of Financing Costs And Discounts
AmortizationOfFinancingCostsAndDiscounts
197000
us-gaap Amortization Of Financing Costs And Discounts
AmortizationOfFinancingCostsAndDiscounts
394000
us-gaap Restructuring Costs
RestructuringCosts
-146000
smsi Increase Decrease In Reserves Against Accounts Receivable
IncreaseDecreaseInReservesAgainstAccountsReceivable
6000
smsi Increase Decrease In Reserves Against Accounts Receivable
IncreaseDecreaseInReservesAgainstAccountsReceivable
78000
us-gaap Inventory Write Down
InventoryWriteDown
-18000
smsi Gain Loss On Disposal Of Fixed Assets
GainLossOnDisposalOfFixedAssets
6000
us-gaap Share Based Compensation
ShareBasedCompensation
674000
us-gaap Share Based Compensation
ShareBasedCompensation
1002000
us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
1189000
us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
325000
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
145000
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
-7000
us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
-838000
us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
IncreaseDecreaseInAccountsPayableAndAccruedLiabilities
-1564000
us-gaap Increase Decrease In Contract With Customer Liability
IncreaseDecreaseInContractWithCustomerLiability
47000
us-gaap Increase Decrease In Contract With Customer Liability
IncreaseDecreaseInContractWithCustomerLiability
269000
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-3030000
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-5693000
us-gaap Payments To Acquire Productive Assets
PaymentsToAcquireProductiveAssets
172000
us-gaap Payments To Acquire Productive Assets
PaymentsToAcquireProductiveAssets
68000
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-172000
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-68000
us-gaap Proceeds From Stock Plans
ProceedsFromStockPlans
5000
us-gaap Proceeds From Stock Plans
ProceedsFromStockPlans
2000
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
10749000
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
2056000
us-gaap Proceeds From Issuance Of Preferred Stock And Preference Stock
ProceedsFromIssuanceOfPreferredStockAndPreferenceStock
2413000
us-gaap Proceeds From Repayments Of Short Term Debt
ProceedsFromRepaymentsOfShortTermDebt
-1000000
us-gaap Proceeds From Repayments Of Short Term Debt
ProceedsFromRepaymentsOfShortTermDebt
3000000
us-gaap Payments Of Dividends Preferred Stock And Preference Stock
PaymentsOfDividendsPreferredStockAndPreferenceStock
370000
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
9384000
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
7471000
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
6182000
us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect
1710000
CY2016Q4 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
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CY2018Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
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CY2017Q3 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsIncludingDisposalGroupAndDiscontinuedOperations
3939000
us-gaap Income Taxes Paid
IncomeTaxesPaid
4000
us-gaap Income Taxes Paid
IncomeTaxesPaid
5000
us-gaap Interest Paid Net
InterestPaidNet
334000
us-gaap Interest Paid Net
InterestPaidNet
552000
us-gaap Stock Issued1
StockIssued1
6792000
us-gaap Stock Issued1
StockIssued1
2292000
us-gaap Nature Of Operations
NatureOfOperations
<div> <p style="text-align:justify;margin-top:12pt;margin-bottom:0pt;text-indent:0%;font-weight:bold;font-family:Times New Roman;font-size:10pt;font-style:normal;text-transform:none;font-variant: normal;">1. The Company</p> <p style="text-align:justify;margin-top:6pt;margin-bottom:0pt;text-indent:0%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Smith Micro Software, Inc. (&#8220;Smith Micro,&#8221; &#8220;Company,&#8221; &#8220;we,&#8221; &#8220;us,&#8221; and &#8220;our&#8221;) develops software to simplify and enhance the mobile experience, providing solutions to leading wireless service providers, device manufacturers, and wireless users around the world.&nbsp;&nbsp;From optimizing wireless networks to uncovering customer experience insights, and from providing visual access to wireless voicemail to ensuring family safety, our solutions enrich connected lifestyles while creating new opportunities to engage consumers via smartphones. We also provide a services platform for the Internet of Things (&#8220;IoT&#8221;) that enables comprehensive device management and firmware over-the-air (&#8220;FOTA&#8221;) updates for various types of connected devices. Our portfolio also includes a wide range of products for creating, sharing, and monetizing rich content, such as visual messaging and 2D/3D graphics applications. With this as a focus, it is Smith Micro&#8217;s mission to help our customers thrive in a connected world.</p></div>
CY2018Q3 us-gaap Preferred Stock Dividends Income Statement Impact
PreferredStockDividendsIncomeStatementImpact
43000
us-gaap Preferred Stock Dividends Income Statement Impact
PreferredStockDividendsIncomeStatementImpact
370000
us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-5911000
us-gaap Net Income Loss Available To Common Stockholders Basic
NetIncomeLossAvailableToCommonStockholdersBasic
-6501000
smsi Number Of Geographic Location
NumberOfGeographicLocation
3
us-gaap Number Of Operating Segments
NumberOfOperatingSegments
2
smsi Allowable Sales Return Period To End Users
AllowableSalesReturnPeriodToEndUsers
P30D
us-gaap Substantial Doubt About Going Concern Managements Evaluation
SubstantialDoubtAboutGoingConcernManagementsEvaluation
In connection with preparing consolidated financial statements for the three and nine months ended September 30, 2018, management evaluated whether there were conditions and events that, when considered in the aggregate, raised substantial doubt about the Company’s ability to continue as a going concern within one year from the date that the financial statements are issued. The Company considered the historical operating loss and negative cash flow from operating activities trends. Ordinarily, conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern relate to the entity’s ability to meet its obligations as they become due. The Company evaluated its ability to meet its obligations as they become due within one year from the date that the financial statements are issued by considering the following:  In May 2017, the Company raised $2.2 million of new capital in a private placement offering of its common stock.  In September 2017, the Company closed on a $5.5 million preferred stock transaction which converted $2.8 million of long and short-term debt, and raised $2.7 million of new capital.  On March 5, 2018, the Company raised $5.0 million of new capital in a private placement offering of its common stock.  On May 3, 2018, the Company raised $7.0 million of new capital in a private placement offering of its common stock. In addition to the recent capital raised, management also believes that the Company will generate enough cash from operations to satisfy its obligations for the next twelve months from the issuance date.
CY2017Q3 smsi Shares Issued During Preferred Stock Value New Issues
SharesIssuedDuringPreferredStockValueNewIssues
5500000
CY2017Q3 us-gaap Debt Instrument Face Amount
DebtInstrumentFaceAmount
2800000
CY2017Q3 smsi Proceeds From Issuance Of Preferred Stock And Preference Stock Gross
ProceedsFromIssuanceOfPreferredStockAndPreferenceStockGross
2700000
CY2018Q3 smsi Number Of Geographic Location
NumberOfGeographicLocation
3
CY2017Q3 smsi Number Of Geographic Location
NumberOfGeographicLocation
3
smsi Number Of Geographic Location
NumberOfGeographicLocation
3
CY2018Q1 us-gaap Preferred Stock Dividend Rate Percentage
PreferredStockDividendRatePercentage
0.10
CY2018Q2 smsi Liquidation Damage Payments
LiquidationDamagePayments
48000
CY2018Q3 us-gaap Deferred Tax Assets Valuation Allowance
DeferredTaxAssetsValuationAllowance
52900000

Files In Submission

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0001564590-18-025261-index-headers.html Edgar Link pending
0001564590-18-025261-index.html Edgar Link pending
0001564590-18-025261.txt Edgar Link pending
0001564590-18-025261-xbrl.zip Edgar Link pending
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Financial_Report.xlsx Edgar Link pending
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report.css Edgar Link pending
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smsi-10q_20180930.htm Edgar Link pending
smsi-20180930.xml Edgar Link completed
smsi-20180930.xsd Edgar Link pending
smsi-20180930_cal.xml Edgar Link unprocessable
smsi-20180930_def.xml Edgar Link unprocessable
smsi-20180930_lab.xml Edgar Link unprocessable
smsi-20180930_pre.xml Edgar Link unprocessable
smsi-ex311_6.htm Edgar Link pending
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smsi-ex321_8.htm Edgar Link pending