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Inseego Reports Third Quarter 2024 Financial Results

Q3 2024 revenue from continuing and discontinued operations of $61.9 million
Q3 2024 positive Adjusted EBITDA from continuing and discontinued operations of $9.3 million and GAAP Net Income of $9.0 million
Agreed to sell telematics business for $52.0 million in cash
Executed convertible debt restructuring and material reduction in debt

SAN DIEGO, Nov. 12, 2024 (GLOBE NEWSWIRE) -- Inseego Corp. (Nasdaq: INSG) (the “Company”), a technology leader in 5G mobile and fixed wireless solutions for mobile network operators, Fortune 500 enterprises and SMBs, today reported its results for the third quarter of 2024 ended September 30, 2024. 

“The third quarter had several positive, and meaningfully transformative events for Inseego, operationally, strategically and financially,” said Phil Brace, Executive Chairman of Inseego. “The closing of our convertible note restructuring and the announced sale of our Telematics business have allowed us to deliver on our commitment to improve the Company’s capital structure. In addition, our operating results in the quarter were the best they have been in several years. Our focus now is on addressing our 5G pipeline and continuing the trajectory as we develop new products and look to drive long-term growth.”

“We continue to be focused on driving stockholder value and are pleased to have restructured 91% of our outstanding convertible notes, meaningfully reducing debt and right-sizing the Company’s capital structure,” Steven Gatoff, Chief Financial Officer of Inseego, commented. “The $52 million in cash we anticipate receiving from the closing of the sale of Telematics will add additional liquidity and flexibility for the Company. On the operational front, Q3 was a pivotal quarter in which we delivered a big revenue quarter and generated strong Adjusted EBITDA and Operating Cash Flow, along with positive GAAP Operating and Net Income.”

Financial Highlights

The following financial highlights present the results of operations of the Company for the quarter ended September 30, 2024. As mentioned above, during the quarter ended September 30, 2024, the Company entered into an agreement to sell its telematics solutions business (the “Telematics Business”) for approximately $52 million in cash. Therefore, all results of operations related to the Telematics Business herein are reported as relating to ‘discontinued operations’, while the Company’s ongoing businesses are being reported as relating to ‘continuing operations’.

  • Revenue from continuing operations and discontinued operations for Q3 2024 was $61.9 million, comprised of revenue from continuing operations of $54.0 million and revenue from discontinued operations of $7.9 million.
  • Adjusted EBITDA from continuing operations and discontinued operations for Q3 2024 was $9.3 million, comprised of Adjusted EBITDA from continuing operations of $6.7 million and Adjusted EBITDA from discontinued operations of $2.6 million.
  • Gross margin from continuing operations for Q3 2024 was 34.8%, while that from discontinued operations was 59.0%, resulting in a blended rate of 37.9%.

Capital Structure Improvements

  • On November 6, 2024, the Company completed its capital structure management initiative and material debt reduction by exchanging $91.5 million of principal value of the Company’s 3.25% convertible notes due 2025 for long-term debt and equity; the Company has now repurchased or exchanged at a discount approximately $147 million, or 91% of aggregate principal amount, of the $162 million of the convertible notes that were outstanding as of December 31, 2023. See separate press release also issued on November 12, 2024 for further details.
  • Paid-down the Company’s short-term loan throughout the third quarter from an initial $19.5 million to be $6 million as of September 30,2024.

Business Highlights

  • Hosted inaugural Channel Partner Advisory Council with key, strategic partners.
  • Onboarded 12 new Inseego Ignite partners in Q3, several of which produced immediate revenue.
  • Launched the multi-carrier certified 5G indoor router FX3110 to the Inseego Ignite channel program and closed new channel deals driving immediate revenue for this program.
  • Launched the first MiFi® specifically for the Inseego Ignite channel program with all tier 1 North American operator certifications and closed the first channel deal with a new win at a Fortune 150 utility company to enable their remote workforce with secure, mobile connectivity.
  • Launched Inseego products in the new T-Mobile Virtual Inventory Program.
  • Increased MiFi® X PRO sales sequentially across carriers, including one who continues to see increased demand with an emphasis on public sector customers.

Q4 2024 Guidance

As the sale of the Company’s telematics business is expected to close during the fourth quarter of 2024, that business is reported as discontinued operations, and the following guidance is reflective of solely the expected results of the Company’s continuing operations. In other words, the Company’s guidance for Q4 2024 excludes any impact of expected results from the Company’s telematics operations.

  • Total revenue from continuing operations in the range of $43.0 million to $47.0 million compared to revenue from continuing operations for Q3 2024 of $54.0 million and revenue from continuing operations for Q4 2023 of $35.9 million.
  • Adjusted EBITDA from continuing operations in the range of $3.0 million to $4.0 million compared to Adjusted EBITDA from continuing operations for Q3 2024 of $6.7 million and Adjusted EBITDA from continuing operations for Q4 2023 of $2.3 million.
  Q4 2023
ACTUAL
  Q3 2024
ACTUAL
  Q4 2024
GUIDANCE
Revenue (from continuing operations) $35.9m   $54.0m   $43.0m - $47.0m
Adjusted EBITDA (from continuing operations) $2.3m   $6.7m   $3.0m - $4.0m
           

Conference Call Information

Inseego will host a conference call and live webcast today at 5:00 p.m. ET. To access the conference call:

An audio replay of the conference call will be available one hour after the call through November 26, 2024. To hear the replay, parties in the United States may call 1-877-344-7529 and enter access code 1249014 followed by the # key. International parties may call 1-412-317-0088. In addition, the Inseego Corp. press release will be accessible from the Company’s website before the conference call begins.

About Inseego Corp.

Inseego Corp. (Nasdaq: INSG) is the industry leader in 5G Enterprise cloud WAN solutions, with millions of end customers and thousands of enterprise and SMB customers on its 4G, 5G, and cloud platforms. Inseego’s 5G Edge Cloud combines the industry’s best 5G technology, rich cloud networking features, and intelligent edge applications. Inseego powers new business experiences by connecting distributed sites and workforces, securing enterprise data, and improving business outcomes with intelligent operational visibility---all over a 5G network. For more information on Inseego, visit www.inseego.com #Putting5GtoWork

©2024. Inseego Corp. All rights reserved. MiFi and the Inseego name and logo are registered trademarks of Inseego Corp. Other company, product, or service names mentioned herein are the trademarks of their respective owners.

Cautionary Note Regarding Forward-Looking Statements

Some of the information presented in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements often address expected future business and financial performance and often contain words such as “may,” “estimate,” “anticipate,” “believe,” “expect,” “intend,” “plan,” “project,” “will” and similar words and phrases indicating future results. The information presented in this news release related to our future business outlook, the future demand for our products, and other statements that are not purely historical facts are forward-looking. These forward-looking statements are based on management’s current expectations, assumptions, estimates, and projections. They are subject to significant risks and uncertainties that could cause results to differ materially from those anticipated in such forward-looking statements. We, therefore, cannot guarantee future results, performance, or achievements. Actual results could differ materially from our expectations.

Factors that could cause actual results to differ materially from the Company’s expectations include: (1) the Company’s dependence on a small number of customers for a substantial portion of our revenues; (2) the future demand for wireless broadband access to data and asset management software and services and our ability to accurately forecast; (3) the growth of wireless wide-area networking and asset management software and services; (4) customer and end-user acceptance of the Company’s current product and service offerings and market demand for the Company’s anticipated new product and service offerings; (5) our ability to develop sales channels and to onboard channel partners; (6) increased competition and pricing pressure from participants in the markets in which the Company is engaged; (7) dependence on third-party manufacturers and key component suppliers worldwide; (8) the impact of fluctuations of foreign currency exchange rates; (9) the impact of supply chain challenges on our ability to source components and manufacture our products; (10) unexpected liabilities or expenses; (11) the Company’s ability to introduce new products and services in a timely manner, including the ability to develop and launch 5G products at the speed and functionality required by our customers; (12) litigation, regulatory and IP developments related to our products or components of our products; (13) the Company’s ability to raise additional financing when the Company requires capital for operations or to satisfy corporate obligations; (14) the Company’s plans and expectations relating to acquisitions, divestitures, strategic relationships, international expansion, software and hardware developments, personnel matters, and cost containment initiatives, including restructuring activities and the timing of their implementations; (15) the global semiconductor shortage and any related price increases or supply chain disruptions, (16) the potential impact of COVID-19 or other global public health emergencies on the business, (17) the impact of high rates of inflation and rising interest rates, (18) the impact of import tariffs on our materials and products, and (19) the impact of geopolitical instability on our business.

These factors, as well as other factors set forth as risk factors or otherwise described in the reports filed by the Company with the SEC (available at www.sec.gov), could cause results to differ materially from those expressed in the Company’s forward-looking statements. The Company assumes no obligation to update publicly any forward-looking statements, even if new information becomes available or other events occur in the future, except as otherwise required under applicable law and our ongoing reporting obligations under the Securities Exchange Act of 1934, as amended.

Non-GAAP Financial Measures

Inseego Corp. has provided financial information in this press release that has not been prepared in accordance with GAAP. Adjusted EBITDA and non-GAAP operating costs and expenses, for example, exclude preferred stock dividends, share-based compensation expense, amortization of intangible assets purchased through acquisitions, amortization of discount and issuance costs related to our 2025 Notes and revolving credit facility, fair value adjustments on derivative instruments, and other non-recurring expenses. Adjusted EBITDA excludes interest, taxes, depreciation, amortization, impairment of capitalized software, impairment of long-lived assets, debt restructuring costs and divestiture related costs, along with certain other non-recurring expenses and foreign exchange gains and losses.

Adjusted EBITDA, non-GAAP cost of revenues, and non-GAAP operating costs and expenses are supplemental measures of our performance that are not required by, or presented in accordance with, GAAP. These non-GAAP financial measures have limitations as an analytical tool. They are not intended to be used in isolation or as a substitute for cost of revenues, operating expenses, net loss, net loss per share or any other performance measure determined in accordance with GAAP. We present these non-GAAP financial measures because we consider them to be an important supplemental performance measure.

We use these non-GAAP financial measures to make operational decisions, evaluate our performance, prepare forecasts and determine compensation. Further, management and investors benefit from referring to these non-GAAP financial measures in assessing our performance when planning, forecasting and analyzing future periods. Share-based compensation expenses are expected to vary depending on the number of new incentive award grants issued to both current and new employees, the number of such grants forfeited by former employees, and changes in our stock price, stock market volatility, expected option term and risk-free interest rates, all of which are difficult to estimate. In calculating non-GAAP financial measures, we exclude certain non-cash and one-time items to facilitate comparability of our operating performance on a period-to-period basis because such expenses are not, in our view, related to our ongoing operational performance. We use this view of our operating performance to compare it with the business plan and individual operating budgets and in the allocation of resources.

We believe that these non-GAAP financial measures are helpful to investors in providing greater transparency to the information used by management in its operational decision-making. The Company believes that using these non-GAAP financial measures also facilitates comparing our underlying operating performance with other companies in our industry, which use similar non-GAAP financial measures to supplement their GAAP results.

In the future, we expect to continue to incur expenses similar to the non-GAAP adjustments described above, and the exclusion of these items in the presentation of our non-GAAP financial measures should not be construed as an inference that these costs are unusual, infrequent, or non-recurring. Investors and potential investors are cautioned that material limitations are associated with using non-GAAP financial measures as an analytical tool. The limitations of relying on non-GAAP financial measures include, but are not limited to, the fact that other companies, including other companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting their usefulness as a comparative tool.

Investors and potential investors are encouraged to review the reconciliation of our non-GAAP financial measures in this press release with our GAAP financial results.

Investor Relations Contact:
[email protected] 


INSEEGO CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
 
  Three Months Ended
September 30,
  Nine Months Ended
September 30,
  2024   2023   2024   2023
Revenues:              
Mobile solutions $ 32,282     $ 22,534     $ 73,431     $ 64,469  
Fixed wireless access solutions   9,723       11,114       37,222       42,489  
Product   42,005       33,648       110,653       106,958  
Services and other   12,027       7,709       32,504       24,409  
Total revenues   54,032       41,357       143,157       131,367  
Cost of revenues:              
Product   33,592       42,788       86,812       101,375  
Services and other   1,640       734       5,492       3,559  
Total cost of revenues   35,232       43,522       92,304       104,934  
Gross profit (loss)   18,800       (2,165 )     50,853       26,433  
Operating costs and expenses:              
Research and development   5,176       5,200       15,032       14,369  
Sales and marketing   4,125       3,893       12,176       13,703  
General and administrative   4,822       3,429       12,695       12,326  
Depreciation and amortization   3,154       3,848       10,098       13,125  
Impairment of capitalized software   507       611       927       1,115  
Total operating costs and expenses   17,784       16,981       50,928       54,638  
Operating income (loss)   1,016       (19,146 )     (75 )     (28,205 )
Other (expense) income:              
Interest expense, net   (5,731 )     (2,894 )     (9,686 )     (6,910 )
Loss on extinguishment of revolving credit facility               (788 )      
Gain on debt restructurings, net   12,366             13,690        
Other income (expense), net   (72 )     45       (864 )     50  
Income (Loss) before income taxes   7,579       (21,995 )     2,277       (35,065 )
Income tax provision   36       30       171       44  
Income (Loss) from continuing operations   7,543       (22,025 )     2,106       (35,109 )
Income from discontinued operations, net of income tax provision   1,426       220       3,032       3,263  
Net income (loss)   8,969       (21,805 )     5,138       (31,846 )
Preferred stock dividends   (827 )     (756 )     (2,425 )     (2,218 )
Net income (loss) attributable to common stockholders $ 8,142     $ (22,561 )   $ 2,713     $ (34,064 )
Per share data:              
Net earnings (loss) per share              
Basic              
Continuing operations $ 0.54     $ (1.95 )   $ (0.03 )   $ (3.33 )
Discontinued operations $ 0.12     $ 0.02     $ 0.25     $ 0.29  
Basic earnings per share (*) $ 0.66     $ (1.93 )   $ 0.23     $ (3.03 )
Diluted              
Continuing operations $ (0.16 )   $ (1.95 )   $ (0.03 )   $ (3.33 )
Discontinued operations $ 0.11     $ 0.02     $ 0.25     $ 0.29  
Diluted earnings per share (*) $ (0.06 )   $ (1.93 )   $ 0.23     $ (3.03 )
Weighted-average shares used in computation of net earnings (loss) per share              
Basic (*)   12,336,503       11,696,755       12,036,989       11,224,722  
Diluted (*)   13,218,293       11,696,755       12,036,989       11,224,722  
(*) Adjusted retroactively for reverse stock split that occurred on January 24, 2024
                               


INSEEGO CORP.
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
 
  September 30,
2024
  December 31,
2023
ASSETS      
Current assets:      
Cash and cash equivalents $ 11,972     $ 2,409  
Accounts receivable, net   15,612       18,202  
Inventories   18,118       20,555  
Prepaid expenses and other   3,627       4,937  
Current assets held for sale   35,771       12,123  
Total current assets   85,100       58,226  
Property, plant and equipment, net   1,303       2,389  
Intangible assets, net   19,465       25,718  
Goodwill   3,949       3,949  
Operating lease right-of-use assets   3,117       4,022  
Other assets   456       1,256  
Non-current assets held for sale         26,237  
Total assets $ 113,390     $ 121,797  
LIABILITIES AND STOCKHOLDERS’ DEFICIT      
Current liabilities:      
Accounts payable $ 35,457     $ 23,408  
Accrued expenses and other current liabilities   31,147       21,049  
Short-term loan   6,000        
2025 Convertible Notes, net   106,250        
Revolving credit facility         4,094  
Current liabilities held for sale   10,000       7,360  
Total current liabilities   188,854       55,911  
Long-term liabilities:      
2025 Convertible Notes, net         159,912  
Operating lease liabilities   2,979       3,972  
Deferred tax liabilities, net   121       112  
Other long-term liabilities   6,499       2,351  
Non-current liabilities held for sale         1,644  
Total liabilities   198,453       223,902  
Commitments and contingencies      
Stockholders’ deficit:      
Preferred stock (aggregate liquidation preference of $37.5 million)          
Common stock   13       12  
Additional paid-in capital   825,851       810,138  
Accumulated other comprehensive loss   (6,712 )     (5,327 )
Accumulated deficit   (904,215 )     (906,928 )
Total stockholders’ deficit   (85,063 )     (102,105 )
Total liabilities and stockholders’ deficit $ 113,390     $ 121,797  
 


INSEEGO CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 
  Nine Months Ended
September 30,
   2024     2023 
Cash flows from operating activities:      
Net income (loss) $ 5,138     $  (31,846 )
Adjustments to reconcile net loss to net cash provided by operating activities:      
Depreciation and amortization   13,242       16,270  
Loss on extinguishment of revolving credit facility   788        
Gain on debt restructurings, net   (13,690 )      
Provision for expected credit losses   (231 )     612  
Impairment of capitalized software   927       1,115  
Provision for excess and obsolete inventory   901       7,011  
Impairment of operating lease right-of-use assets   139        
Share-based compensation expense   2,815       6,030  
Amortization of debt discount and debt issuance costs   4,435       2,048  
Deferred income taxes   9       177  
Non-cash operating lease expense   1,218       437  
Other   6        
Changes in assets and liabilities:      
Accounts receivable   2,432       7,703  
Inventories   (274 )     7,685  
Prepaid expenses and other assets   1,887       1,479  
Accounts payable   12,284       1,162  
Accrued expenses and other liabilities   14,683       2,561  
Operating lease liabilities   (1,334 )     (41 )
Net cash provided by operating activities   45,375       22,403  
Cash flows from investing activities:      
Purchases of property, plant and equipment   (46 )     (403 )
Additions to capitalized software development costs and purchases of intangible assets   (3,608 )     (6,114 )
Net cash used in investing activities   (3,654 )     (6,517 )
Cash flows from financing activities:      
Payments related to repurchases of 2025 Convertible Notes   (33,781 )      
Proceeds from issuance of short-term loan and warrants, net of issuance costs   19,350        
Proceeds from a public offering of equity, net of issuance costs         6,057  
Principal payments on financed assets    —       (360 )
Net repayments on revolving credit facility   (4,882 )     (7,851 )
Repayments on short-term loan   (13,500 )      
Other financing activities   2       128  
Net cash used in financing activities   (32,811 )     (2,026 )
Effect of exchange rates on cash   (1,682 )     (2,057 )
Net increase in cash and cash equivalents   7,228       11,803  
Cash, cash equivalents and restricted cash from continuing operations, beginning of period   2,409       3,241  
Cash, cash equivalents and restricted cash from discontinued operations, beginning of period   5,110       3,902  
Cash and cash equivalents, beginning of period   7,519       7,143  
Cash, cash equivalents and restricted cash from continuing operations, end of period   11,972       14,424  
Cash, cash equivalents and restricted cash from discontinued operations, end of period   2,775       4,522  
Cash and cash equivalents, end of period $ 14,747     $ 18,946  
 

 

INSEEGO CORP.
Supplemental 2024 Statement of Operations Data by Quarter
(In thousands)
(Unaudited)
 
As previously noted above, as a result of the share purchase agreement executed during the quarter under which we agreed to sell our Telematics Business, all results of said business have been classified within “Income from discontinued operations, net of income tax provision” in the above Statement of Operations. All other line items within the Statement of Operations consist solely of the results from the Company’s continuing operations. The company has reclassified all prior periods to conform to this presentation change. Below is a supplemental disclosure the Statement of Operations under the current presentation for each of the quarters in 2024 and 2023 (in thousands):
 
  Nine Months Ended   Three Months Ended
  September 30, 2024   September 30, 2024   June 30, 2024   March 31, 2024
Revenues:              
Mobile solutions $ 73,431     $ 32,282     $ 25,879     $ 15,270  
Fixed wireless access solutions   37,222       9,723       13,317       14,182  
Product   110,653       42,005       39,196       29,452  
Services and other   32,504       12,027       12,424       8,053  
Total revenues   143,157       54,032       51,620       37,505  
Cost of revenues:              
Product   86,812       33,592       30,507       22,713  
Services and other   5,492       1,640       2,304       1,548  
Total cost of revenues   92,304       35,232       32,811       24,261  
Gross profit (loss)   50,853       18,800       18,809       13,244  
Operating costs and expenses:              
Research and development   15,032       5,176       5,173       4,683  
Sales and marketing   12,176       4,125       4,212       3,839  
General and administrative   12,695       4,822       3,918       3,955  
Depreciation and amortization   10,098       3,154       3,652       3,292  
Impairment of capitalized software   927       507             420  
Total operating costs and expenses   50,928       17,784       16,955       16,189  
Operating income (loss)   (75 )     1,016       1,854       (2,945 )
Other (expense) income:              
Interest expense, net   (9,686 )     (5,731 )     (1,776 )     (2,179 )
Loss on extinguishment of revolving credit facility   (788 )           (788 )      
Gain on debt restructurings, net   13,690       12,366       1,324        
Other income (expense), net   (864 )     (72 )     (417 )     (375 )
Income (Loss) before income taxes   2,277       7,579       197       (5,499 )
Income tax provision   171       36       118       17  
Income (Loss) from continuing operations   2,106       7,543       79       (5,516 )
Income from discontinued operations, net of income tax provision   3,032       1,426       545       1,061  
Net income (loss)   5,138       8,969       624       (4,455 )
Preferred stock dividends   (2,425 )     (827 )     (808 )     (790 )
Net income (loss) attributable to common stockholders $ 2,713     $ 8,142     $ (184 )   $ (5,245 )
 


INSEEGO CORP.
Supplemental 2023 Statement of Operations Data by Quarter
(In thousands)
(Unaudited)
 
  Twelve Months Ended   Three Months Ended
  December 31, 2023   December 31, 2023   September 30, 2023   June 30, 2023   March 31, 2023
Revenues:                  
Mobile solutions $ 80,498     $ 16,029     $ 22,534     $ 18,895     $ 23,040  
Fixed wireless access solutions   54,900       12,411       11,114       19,505       11,870  
Product   135,398       28,440       33,648       38,400       34,910  
Services and other   31,888       7,479       7,709       7,983       8,717  
Total revenues   167,286       35,919       41,357       46,383       43,627  
Cost of revenues:                  
Product   127,157       25,782       42,788       30,620       27,967  
Services and other   4,353       794       734       1,139       1,686  
Total cost of revenues   131,510       26,576       43,522       31,759       29,653  
Gross profit (loss)   35,776       9,343       (2,165 )     14,624       13,974  
Operating costs and expenses:                  
Research and development   19,725       5,356       5,200       5,822       3,347  
Sales and marketing   16,632       2,929       3,893       4,575       5,235  
General and administrative   15,853       3,527       3,429       4,281       4,616  
Depreciation and amortization   18,408       5,283       3,848       4,327       4,950  
Impairment of capitalized software   1,115             611             504  
Total operating costs and expenses   71,733       17,095       16,981       19,005       18,652  
Operating income (loss)   (35,957 )     (7,752 )     (19,146 )     (4,381 )     (4,678 )
Other (expense) income:                  
Interest expense, net   (9,086 )     (2,176 )     (2,894 )     (2,017 )     (1,999 )
Other income (expense), net   70       19       45       23       (17 )
Income (Loss) before income taxes   (44,973 )     (9,909 )     (21,995 )     (6,375 )     (6,694 )
Income tax provision   43       (1 )     30       15       (1 )
Income (Loss) from continuing operations   (45,016 )     (9,908 )     (22,025 )     (6,390 )     (6,693 )
Income from discontinued operations, net of income tax provision   (1,169 )     (4,432 )     220       1,454       1,589  
Net income (loss)   (46,185 )     (14,340 )     (21,805 )     (4,936 )     (5,104 )
Preferred stock dividends   (2,991 )     (773 )     (756 )     (739 )     (723 )
Net income (loss) attributable to common stockholders $ (49,176 )   $ (15,113 )   $ (22,561 )   $ (5,675 )   $ (5,827 )
 


INSEEGO CORP.
Supplemental 2024 Reconciliation of GAAP Income (Loss) from Continuing Operations to Adjusted EBITDA
(In thousands)
(Unaudited)
 
As is the case with the supplemental quarterly statement of operations tables above, we have split out the reconciliation of Adjusted EBITDA between Adjusted EBITDA from continuing operations, meaning that not related to the Telematics Business, and Adjusted EBITDA from discontinued operations, meaning that related to the Telematics Business. The company has reclassified all prior periods to conform to this presentation change. Below is a reconciliation of Adjusted EBITDA from continuing and discontinued operations for each of the quarters in 2024 and 2023 (in thousands):
 
  Nine Months Ended   Three Months Ended
  September 30, 2024   September 30, 2024   June 30, 2024   March 31, 2024
Income (Loss) from continuing operations $ 2,106     $ 7,543     $ 79     $ (5,516 )
Income tax provision (benefit)   171       36       118       17  
Interest expense, net   9,686       5,731       1,776       2,179  
Loss on extinguishment of revolving credit facility   788             788        
Gain/(loss) on debt restructurings, net   (13,690 )     (12,366 )     (1,324 )      
Other (income) expense, net   864       72       417       375  
Depreciation and amortization   10,221       3,193       3,691       3,337  
Share-based compensation expense   2,714       1,193       834       687  
Debt restructuring costs   1,121       669       452        
Impairment of operating lease right-of-use assets   139       139              
Impairment of capitalized software   927       507             420  
Adjusted EBITDA from continuing operations   15,047        6,717       6,831       1,499  
               
Income from discontinued operations, net of tax   3,032       1,426       545       1,061  
Income tax provision (benefit)   674       266       188       220  
Interest expense, net   (10 )     (3 )     (2 )     (5 )
Other (income) expense, net   (1,124 )     (873 )     (236 )     (15 )
Depreciation and amortization   3,021       980       1,003       1,038  
Share-based compensation expense   100       35       35       30  
Divestiture related costs   764       764              
Adjusted EBITDA from discontinued operations   6,457       2,595       1,533       2,329  
               
Adjusted EBITDA from continuing and discontinued operations $ 21,504     $ 9,312     $ 8,364     $ 3,828  
 

See “Non-GAAP Financial Measures” for information regarding our use of Non-GAAP financial measures.


INSEEGO CORP.
Supplemental 2023 Reconciliation of GAAP Income (Loss) from Continuing Operations to Adjusted EBITDA
(In thousands)
(Unaudited)
 
  Twelve
Months Ended
  Three Months Ended
  December 31,
2023
  December 31, 2023   September 30, 2023   June 30, 2023   March 31, 2023
Income (Loss) from continuing operations $ (45,016 )   $ (9,908 )   $ (22,025 )   $ (6,390 )   $ (6,693 )
Income tax provision (benefit)   43       (1 )     30       15       (1 )
Interest expense, net   9,086       2,176       2,894       2,017       1,999  
Other (income) expense, net   (70 )     (19 )     (45 )     (23 )     17  
Depreciation and amortization   18,713       5,350       4,421       4,438       4,504  
Share-based compensation expense   6,972       1,333       2,123       1,820       1,696  
Impairment of operating lease right-of-use assets   469                   469        
Inventory adjustments - E&O and contract manufacturer liability **   16,427       3,370       13,057              
Write-off of capitalized inventory order fees **   924             924              
Impairment of capitalized software   1,115             611             504  
Adjusted EBITDA from continuing operations   8,663       2,301       1,990       2,346       2,026  
                   
Income from discontinued operations, net of tax   (1,169 )     (4,432 )     220       1,454       1,589  
Income tax provision (benefit)   842       287       (46 )     289       312  
Interest expense, net   (14 )     (6 )     (3 )     (3 )     (2 )
Other (income) expense, net   16       840       623       (635 )     (812 )
Depreciation and amortization   3,849       939       1,032       951       927  
Share-based compensation expense   473       83       144       144       102  
ROU Asset Impairment                            
Impairment of capitalized software   4,124       4,124                    
Adjusted EBITDA from discontinued operations   8,121       1,835       1,970       2,200       2,116  
                   
Adjusted EBITDA from continuing and discontinued operations $  16,784     $ 4,136     $ 3,960     $ 4,546     $ 4,142  
** These items are not adjusted from the period ending December 31, 2023 going forward
 

See “Non-GAAP Financial Measures” for information regarding our use of Non-GAAP financial measures.


Source: Inseego Corp.


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Source: Inseego Corp.

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