Vislink Technologies Inc
For the period ended Jun 30, 2024. Filed Aug 14, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 14, 2024
VISL$2.00-7.0%Stored close · as of Sep 19, 2025
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-15.
0001493152-24-019750
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-14.
0001493152-24-032103
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 53 previous paragraphs and 67 current paragraphs.
34 unchanged; 12 reworded; 21 added; 7 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 3 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (21)
Current report
In the three months ended June 30, 2024, our net revenue was $8.7 million compared to $5.0 million for the three months ended June 30, 2023, representing an increase of $3.7 million or 74%. In the six months ended June 30, 2024, our net revenue was $17.3 million compared to $12.2 million for the six months ended June 30, 2023, representing an increase of $5.1 million or 42%.
Current report
This growth is attributable to our expanded market reach, improved operational efficiencies, new product development, and the benefits of integrating the U.K. manufacturing operations into our U.S. facilities.
Current report
In the three months ended June 30, 2024, the cost of components and personnel was $3.8 million compared to $2.4 million for the three months ended June 30, 2023, representing an increase of $1.4 million or 74%. In the six months ended June 30, 2024, the cost of components and personnel was $7.4 million compared to $5.7 million for the six months ended June 30, 2023, representing an increase of $1.7 million or 30%.
Current report
Our expanded market reach and new product development, have increased the cost of components and personnel, supporting the Company’s growth and operational strategy. This notable change reflects the Company’s strategic decisions and initiatives undertaken in previous periods, as well as the increase in revenue. In the latter half of 2022, the company discontinued several underperforming product lines. This decision allowed us to reallocate resources to more profitable and promising products, contributing to overall operational efficiency. Additionally, we relocated Vislink’s U.K. manufacturing division to the United States, aimed at consolidating our manufacturing operations, reducing logistics costs, and improving supply chain management. The increase in revenue has driven higher production demands, necessitating additional components and personnel to meet market needs. The expanded market reach and introduction of new products have also required investment in skilled labor and advanced components to maintain a competitive advantage and support our growth strategy.
Current report
In the three months ending June 30, 2024, the general and administrative expenses were $5.9 million compared to $4.7 million for the three months ending June 30, 2023, representing an increase of $1.2 million or 26%. In the six months ending June 30, 2024, the general and administrative expenses were $11.2 million compared to $9.7 million for the six months ending June 30, 2023, representing an increase of $1.5 million or 15%.
Current report
The three-month increase of $1.1 million is predominantly due to $0.9 million in salaries and benefits, $0.3 million in commissions, and $0.2 million in computer expenses. The increase was offset by a decrease primarily attributed to $0.2 million each of taxes, licenses, and stock-based compensation.
Current report
The six-month increase of $1.4 million is primarily attributable to $1.0 million in salaries and benefits, $0.3 million in commissions, and $0.2 million in computer expenses, other external services, and director’s fees. The increase was offset by a decrease attributed to $0.6 million in stock-based compensation and $0.2 million in consulting fees.
Current report
In the three months ending June 30, 2024, the research and development expenses were $1.0 million compared to $0.9 million for the three months ending June 30, 2023, representing an increase of $0.1 million or 11%. In the six months ending June 30, 2024, the research and development expenses were $1.8 million compared to $1.7 million for the six months ending June 30, 2023, representing an increase of $0.1 million or 6%.
Current report
Amortization and Depreciation
Current report
In the three months ending June 30, 2024, amortization and depreciation expenses remained consistent at $0.3 million, unchanged from the three months ending June 30, 2023. For the six months ended June 30, 2024, amortization and depreciation expenses increased slightly by $0.1 million to $0.7 million, compared to $0.6 million for the six months ended June 30, 2023.
Current report
This stability over the three-month period and the slight increase over the six-month period reflect minimal changes in the net book value of our intangible and fixed assets, as the Company does not regularly engage in material procurements of these assets.
Current report
Other
Current report
Dividend and Interest Income
Current report
In the three months ending June 30, 2024, dividend and interest income was $0.2 million, compared to $0.4 million for the three months ending June 30, 2023, representing an increase of $0.2 million or 50%. In the six months ending June 30, 2024, dividend and interest income were $0.3 million, compared to $0.6 million for the six months ending June 30, 2023, representing a decrease of $0.3 million or 50%.
Current report
The decrease in dividend and interest income is partly due to the redemption of government-backed bonds during the first quarter of 2024.
Current report
In the three months ending June 30, 2024, the Company had a net loss of $2.2 million compared to a net loss of $3.1 million in the three months ending June 30, 2023, or a decrease in a net loss of $0.8 million or 26%. The Company’s net loss for the six months ending June 30, 2024, was $3.4 million, compared to $4.9 million for the six months ending June 30, 2023, or a decrease in a net loss of $1.5 million or 31%.
Current report
The decrease in the net loss of $0.8 million for the three months ended June 30, 2024, was primarily the result of an increase in revenue of $3.7 million, offset by an increase in component and personal costs of $1.4 million, general and administrative expenses of $1.1 million.
Current report
The decrease in the net loss of $1.5 million for the six months ended June 30, 2024, was primarily the result of an increase in revenue of $5.1 million offset by an increase in cost of component and personal costs of $1.7 million and $1.4 million in general and administrative expenses.
Current report
This improvement is attributable to more efficient expense management, including renegotiating contracts with suppliers, optimizing our workforce, implementing cost-saving measures, and increasing revenue.
Current report
Net cash used in operating activities of approximately $1.7 million during the six months ended June 30, 2024, was principally attributable to a net loss of $3.1 million; an increase in inventory of $1.0 million, accounts receivable of $.08 million, and operating lease liabilities of $0.3 million; and was principally offset by stock-based compensation and depreciation and amortization of $0.7 million each, inventory valuation adjustments of $0.4 million, an increase in accounts payable of $1.0 million, and deferred revenue and customer deposits of $0.8 million.
Current report
Net cash used in operating activities of approximately $3.2 million during the six months ended June 30, 2023, was principally attributable to a net loss of $4.8 million, $1.3 million of stock-based compensation, $0.6 million of depreciation and amortization, an increase in $1.2 million of inventory, $0.7 million of accounts payable, and $0.6 million of prepaid expenses and other current assets; offset by $0.4 million of bad debt recovery, decreases of $0.3 million of accounts receivable, and operating lease liabilities each.
Removed paragraphs (7)
Previous report
For the quarter ending March 31, 2024, net revenues were $8.6 million, an increase of $1.4 million or 20% from $7.2 million for the same period in 2023. This increase is attributable to expanded market reach resulting in $1.1 million of net revenues from product lines we acquired in an acquisition of the assets of Broadcast Microwave Services, LLC. (“BMS”) in 2023 and operational efficiencies following the integration of our U.K. manufacturing operations into our U.S. facilities.
Previous report
The costs related to components and personnel increased to $3.6 million, up from $3.3 million in the prior year, an increase of $0.3 million or 9%. This change reflects the Company’s strategic decision to streamline its product offerings by discontinuing several underperforming product lines in the latter half of 2022, relocating Vislink’s U.K. manufacturing division to the United States in 2023, and new BMS-related costs of $0.2 million.
Previous report
For the quarter ending March 31, 2024, general and administrative expenses totaled $5.3 million, up from $5.0 million recorded for the same period in 2023. This represents a $0.3 million or 6% increase, and is attributable to a multifaceted investment in the Company’s potential growth and operational scaling. The increase also includes multiple minor incidental expenses incurred in administering a public company totaling $0.6 million and $0.2 million in rent and utilities. Counterbalancing these increases, stock-based compensation expenses and consulting fees were $0.4 million and $0.2 million lower than in the prior year period.
Previous report
For the quarter ending March 31, 2024, research and development expenses totaled $0.8 million compared to $0.8 million in 2023. Research and development expenses remained stable at $0.8 million, consistent with the Company’s strategic focus on key technology projects.
Previous report
During the quarter ending March 31, 2024, the Company experienced a net loss of $1.0 million, a decrease from the net loss of $1.8 million recorded for the same period in 2023, reflecting a reduction of $0.8 million or 44%. This improvement is due to more efficient expense management and increased revenue.
Previous report
Net cash used in operating activities of approximately $0.1 million during the three months ended March 31, 2024, was principally attributable to a decrease of $0.9 million in deferred revenue and customer deposits, $0.8 million of operating lease liabilities, and $1.1 million in stock-based compensation. Other changes in the net cash used in public company administration are de minimis.
Previous report
Net cash used in operating activities of approximately $1.0 million during the three months ended March 31, 2023, was principally attributable to a net loss of $1.8 million and $0.9 million in stock-based compensation. Other changes in the net cash used in public company administration are de minimis.
Reworded paragraphs (12)
Previous wording
The following information should be read in conjunction with the accompanying consolidated financial statements and the associated notes thereto of this Quarterly Report, the audited consolidated financial statements and the notes thereto, and our Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as filed with the U.S. Securities and Exchange Commission on April 3, 2024.
Current wording
The following information should be read in conjunction with the accompanying consolidated financial statements and the associated notes thereto of this Quarterly Report, the audited consolidated financial statements and the notes thereto, and our Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K.
Previous wording
This report includes forward-looking statements that, although based on assumptions that the Company considers reasonable, are subject to risks and uncertainties, which could cause actual events or conditions to differ materially from those currently anticipated, expressed, or implied by such forward-looking statements. You should read this report and the documents the Company references in this report and have filed as exhibits to this report entirely and understand that our actual future results may materially differ from what the Company expects. You should also review the factors and risks the Company describes in reports the Company will file or submit from time to time with the SEC after this report’s date. The Company qualifies all of our forward-looking statements by these cautionary statements.
Current wording
This report includes forward-looking statements that, although based on assumptions that the Company considers reasonable, are subject to risks and uncertainties, which could cause actual events or conditions to differ materially from those currently anticipated, expressed, or implied by such forward-looking statements. You should read this report and the documents the Company references in this report and have filed as exhibits to this report entirely and understand that our actual future results may materially differ from what the Company expects. You should also review the factors and risks the Company describes in reports the Company will file or submit from time to time with the SEC after this report’s date. The Company qualifies all of our forward-looking statements with these cautionary statements.
Previous wording
No significant developments in the Ukraine/Russia and Israel/Hamas conflicts during the quarter ending March 31, 2024, materially altered previously disclosed risks in our Annual Report on Form 10-K for the year ending December 31, 2023, as filed with the SEC on April 3, 2024. The Company maintains no direct operations, revenue streams, or physical presence in these regions. The Company monitors the situation closely for potential indirect impacts on our global supply chain and business continuity. Any material changes or updates will be promptly disclosed.
Current wording
During the quarter ending June 30, 2024, there were no significant developments in the Ukraine/Russia and Israel/Hamas conflicts that materially altered the previously disclosed risks in our Annual Report on Form 10-K for the fiscal year ending December 31, 2023, as filed with the SEC on April 3, 2024. The Company has no direct operations, revenue streams, or physical presence in these regions. The Company monitors the situation for potential indirect impacts on our global supply chain and business continuity, such as increased transportation costs or disruptions in our suppliers’ operations. Any material changes or updates will be promptly disclosed.
Previous wording
During the quarter that ended March 31, 2024, the Company continued implementing strategies to minimize our environmental impact and adapt to changing regulatory landscapes, particularly regarding the Paris Climate Accords and evolving U.S. climate policies. The Company is committed to addressing the challenges and opportunities climate change presents. While the direct financial impact of climate change on our operations has not been material in the most recent fiscal quarter, the Company may need to undertake significant planning and expenditures to improve sustainability and resilience in our operations. Our efforts may include enhancing energy efficiency across our facilities and exploring innovative solutions to reduce our carbon footprint.
Current wording
The Company is committed to addressing the challenges and opportunities climate change presents. While the direct financial impact of climate change on our operations has not been material in the most recent fiscal quarter, the Company plans to undertake significant efforts to improve sustainability and resilience in our operations. We have already begun enhancing energy efficiency across our facilities and are actively exploring renewable energy integration. Additionally, the Company is in the process of developing innovative solutions to reduce our carbon footprint, demonstrating our dedication to these goals.
Previous wording
During the quarter ended March 31, 2024, the Company experienced no material financial or operational impacts directly attributable to the geopolitical conflicts mentioned or climate change. The Company monitors these situations and may need to adjust operations and strategies to mitigate risks.
Current wording
During the quarter ending June 30, 2024, the Company experienced no material financial or operational impacts directly attributable to the geopolitical conflicts or climate change. The Company monitors these situations and may need to adjust operations and strategies to mitigate potential risks.
Previous wording
Vislink Technologies, Inc. is dedicated to navigating the complexities of the global geopolitical landscape and the evolving challenges of climate change. The Company’s focus remains on safeguarding operations, supporting customers, and delivering value to shareholders while upholding the Company’s commitment to corporate responsibility and environmental sustainability.
Current wording
Vislink Technologies Inc. remains dedicated to navigating the complexities of the global geopolitical landscape and the evolving challenges of climate change. Our focus continues to be safeguarding operations, supporting customers, and delivering value to shareholders while upholding our commitment to corporate responsibility and environmental sustainability.
Previous wording
Comparison for the three months ended March 31, 2024, and 2023
Current wording
Comparison for the six months ended June 30, 2024, and 2023
Previous wording
The Company incurred an approximate $1.6 million loss from operations and $0.1 million of cash used in operating activities for the three months ended March 31, 2024. As of March 31, 2024, the Company had $31.2 million in working capital, $310.2 million in accumulated deficits, and $8.0 million in cash and cash equivalents.
Current wording
For the six months ended June 30, 2024, the Company incurred an approximate $4.2 million loss from operations and $1.7 million of net cash used in operating activities. As of June 30, 2024, the Company had $29.0 million in working capital, $312.4 million in accumulated deficits, and $5.6 million in cash and cash equivalents.
Previous wording
During the first quarter of 2024, the Company invested a portion of its cash reserves of approximately $0.9 million in federal bonds intended to be held to maturity and $5.4 million in federally backed money market mutual funds, primarily seeking to increase investment income.
Current wording
During the first quarter of 2024, the Company invested approximately $0.9 million of its cash reserves in federal bonds intended to be held to maturity. No additional investments were made during the second quarter of 2024. As of June 30, 2024, the Company held investments in federal bonds valued at $5.9 million, intended to be held to maturity, primarily seeking to generate investment income.
Previous wording
As of the date of the filing of this quarterly report, we believe there have been no material changes to our critical accounting policies during the three months ended March 31, 2024, compared to those disclosed in our Annual Report on Form 10-K. The location of additional information about these critical accounting policies is in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” section included in our Annual Report on Form 10-K.
Current wording
As of the date of the filing of this quarterly report, we believe there have been no material changes to our critical accounting policies during the six months ended June 30, 2024, compared to those disclosed in our Annual Report on Form 10-K. The location of additional information about these critical accounting policies is in the “Management’s Discussion & Analysis of Financial Condition and Results of Operations” section included in our Annual Report on Form 10-K.
Previous wording
Net cash used by investing activities for the three months ended March 31, 2024, and 2023 were $0.1 million and $10.9 million, respectively. This cash was principally related to the Company’s investment in government-backed securities, money market funds, and capital expenditures for furniture and computer equipment.
Current wording
Net cash used by investing activities for the six months ended June 30, 2024, and 2023 were $0.3 million and $11.2 million, respectively. This cash was principally related to the Company’s investment in government-backed securities and money market funds and capital expenditures for furniture and computer equipment.
Previous wording
Net cash used in financing activities of approximately $0.0 million and $0.1 million during the three months ended March 31, 2024, and 2023, respectively, was principally attributable to principal payments made towards D&O policy premiums.
Current wording
Net cash used in financing activities of approximately $0.1 million and $0.2 million during the six months ended June 31, 2024, and 2023, respectively, was principally attributable to principal payments made towards D&O policy premiums.