Vislink Technologies Inc
For the period ended Sep 30, 2024. Filed Nov 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.
Sep 30, 2024 · Filed Nov 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 2024-06-30; filed 2024-08-14.
0001493152-24-032103
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-14.
0001493152-24-045975
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 67 previous paragraphs and 63 current paragraphs.
37 unchanged; 17 reworded; 9 added; 13 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 4 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 (9)
Current report
This report includes forward-looking statements based on the assumptions the Company believes reasonable. However, these statements are subject to significant risks and uncertainties that could cause actual outcomes to differ materially from those anticipated, expressed, or implied by such statements. In particular, the Company’s transfer of its remaining manufacturing division to Mount Olive, New Jersey, entails operational and financial risks that may impact expected synergies, efficiencies, and results. You should carefully review this report, along with the documents referenced within and those filed as exhibits in their entirety. Additionally, please consult the Company’s subsequent SEC filings for updated factors and risks that may affect these forward-looking statements. The Company qualifies all forward-looking statements by these cautionary statements.
Current report
Comparison for the three and nine months ended September 30, 2024, and 2023
Current report
In the three months ended September 30, 2024, the revenue was $7.1 million compared to $7.2 million for the three months ended September 30, 2023, representing a decrease of $0.1 million or 1%. In the nine months ended September 30, 2024, the revenue was $24.4 million compared to $19.4 million for the nine months ended September 30, 2023, representing an increase of $5.0 million or 26%.
Current report
In the three months ended September 30, 2024, the cost of components and personnel was $3.5 million compared to $3.3 million for the three months ended September 30, 2023, representing an increase of $0.2 million or 6%. In the nine months ended September 30, 2024, the cost of components and personnel was $10.8 million compared to $9.0 million for the nine months ended September 30, 2023, representing an increase of $1.8 million or 20%.
Current report
In the three months ending September 30, 2024, the general and administrative expenses were $5.1 million compared to $4.8 million for the three months ending September 30, 2023, representing an increase of $0.3 million or 6%. In the nine months ending September 30, 2024, the general and administrative expenses were $16.3 million compared to $14.5 million for the nine months ending September 30, 2023, representing an increase of $1.8 million or 12%.
Current report
The three-month increase of $0.3 million is predominantly due to $0.5 million in salaries and benefits and $0.2 million in miscellaneous taxes. The increase was partially offset by a decrease of $0.3 million in miscellaneous expenses, $0.2 million in legal fees, and $0.1 million each in computer and consulting expenses. The nine-month increase of $1.8 million is primarily attributable to $1.6 million in salaries and benefits, $0.3 million in commissions, $0.2 million each in advertising, bad debt, and director’s fees, partially offset by a decrease of $0.7 million in stock-based compensation. The nine-month increase of $1.8 million is primarily attributable to $2.6 million in salaries and benefits, partially offset by a decrease of $0.8 million.
Current report
In the three months ending September 30, 2024, the research and development expenses were $1.2 million compared to $0.8 million for the three months ending September 30, 2023, representing an increase of $0.4 million or 50%. In the nine months ending September 30, 2024, the research and development expenses were $2.9 million compared to $2.5 million for the nine months ending September 30, 2023, representing an increase of $0.4 million or 16%.
Current report
The net loss decreased by $0.6 million for the nine months ended September 30, 2024, primarily due to an increase in revenue of $5.0 million, offset by increases of $1.8 million each in cost of components and personnel, and general and administrative expenses, as well as $0.4 million in research and development expenses.
Current report
Net cash used in operating activities of approximately $4.0 million during the nine months ended September 30, 2024, was principally attributable to a net loss of $6.2 million; an increase of $0.9 million in stock-based compensation, $1.0 million of depreciation and amortization, $0.7 million of inventory valuation adjustments, $0.5 million of deferred revenue and customer deposits, $0.2 million each of amortization of right of use assets and accrued directors compensation, $0.2 million each of prepaid expenses and other current assets and accrued expenses, offset by $1.5 million of inventory.
Removed paragraphs (13)
Previous report
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 report
Outlook:
Previous report
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 report
Vislink Technologies, Inc. is a global technology business that collects, delivers, and manages high-quality, live video and associated data from the action scene to the viewing screen. We provide solutions for collecting live news, sports, entertainment, and news events for the broadcast markets. We also provide surveillance and defense markets with real-time video intelligence solutions using various tailored transmission products. Our team also provides professional and technical services utilizing a staff of technology experts with decades of applied knowledge and real-world experience in terrestrial microwave, fiber optic, surveillance, and wireless communications systems, delivering a broad spectrum of customer solutions.
Previous report
Comparison for the six months ended June 30, 2024, and 2023
Previous 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%.
Previous 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%.
Previous 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%.
Previous 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.
Previous report
Research and development expenses include salary and benefits, payroll taxes, prototype development, facility costs, and travel expenditures.
Previous 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%.
Previous 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.
Previous 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.
Reworded paragraphs (17)
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.
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 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
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.
Current wording
During the quarter ending September 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 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 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.
Current wording
During the quarter ending September 30, 2024, the Company experienced no material financial or operational impacts directly attributable to geopolitical conflicts or climate change. The Company monitors these situations and may need to adjust operations and strategies to mitigate potential risks.
Previous wording
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 wording
This growth is attributable to expanded market reach, improved operational efficiencies, new product development, and the benefits of integrating the UK manufacturing operations into our U.S. facilities.
Previous wording
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 wording
The cost of components and personnel increase is driven by our expanded market reach and new product development, which supports the Company’s growth and operational strategy. This change reflects the strategic decisions and initiatives undertaken in previous periods and 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 to consolidate manufacturing operations, reduce logistics costs, and improve 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.
Previous wording
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 wording
The three-month increase of $0.4 million is predominantly due to $0.3 million each in professional fees and salaries and benefits. The increase was partially offset by a decrease in consulting fees of $0.1 million. The nine-month increase of $0.4 million is primarily attributable to $0.3 million in research and $0.2 million in professional fees, partially offset by a decrease of $0.1 million in consulting fees.
Previous wording
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 wording
In the three months ending September 30, 2024, amortization and depreciation expenses remained consistent at $0.3 million, unchanged from the three months ending September 30, 2023. For the nine months ended September 30, 2024, amortization and depreciation expenses increased slightly by $0.1 million to $1.0 million, compared to $0.9 million for the nine months ended September 30, 2023.
Previous wording
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 wording
This stability over the three-month period and the slight increase over the nine-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.
Previous wording
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 wording
In the three months ending September 30, 2024, dividend and interest income was $0.2 million, compared to $0.3 million for the three months ending September 30, 2023, representing a decrease of $0.2 million or 67%. In the nine months ended September 30, 2024, dividend and interest income were $0.5 million compared to $0.9 million for the nine months ended September 30, 2023, representing a decrease of $0.4 million or 44%.
Previous wording
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 wording
In the three months ending September 30, 2024, the Company had a net loss of $3.0 million compared to a net loss of $1.9 million in the three months ending September 30, 2023, or an increase in a net loss of $1.0 million or 53%. The Company’s net loss for the nine months ending September 30, 2024, was $6.2 million, compared to $6.8 million for the nine months ending September 30, 2023, or a decrease in a net loss of $0.6 million or 9%.
Previous wording
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 wording
The net loss increased by $1.0 million for the three months ended September 30, 2024, primarily due to a decrease in revenue of $0.1 million, an increase of $0.4 million in research and development expenses, $0.3 million in general and administrative expenses, and $0.2 million in cost of components and personnel.
Previous 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.
Current wording
For the nine months ended September 30, 2024, the Company incurred an approximate $7.4 million loss from operations and $4.0 million of cash used in operating activities. As of September 30, 2024, the Company had $27.1 million in working capital, $315.5 million in accumulated deficits, and $3.2 million in cash and cash equivalents.
Previous 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.
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 and third quarters of 2024. As of September 30, 2024, the Company held investments in federal bonds valued at $6.0 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 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.
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 nine months ended September 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 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.
Current wording
Net cash used in operating activities of approximately $6.0 million during the nine months ended September 30, 2023, was principally attributable to a net loss of $6.8 million, $1.6 million of stock-based compensation, $0.9 million of depreciation and amortization, an increase of $1.6 million in inventory, an increase of $1.4 million in accounts receivable, an increase of $0.5 million in accounts payable, offset by decreases of $0.4 million in operating lease liabilities, together with $0.4 million of deferred revenue and customer deposits, $0.2 million each in deferred tax benefits, and accretion of bond discount.
Previous 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.
Current wording
Net cash used by investing activities for the nine months ended September 30, 2024, and 2023 was $0.5 million and $11.2 million, respectively. This cash was principally related to the Company’s investment in government-backed securities and money market funds as well as capital expenditures for furniture and computer equipment and asset acquisition.
Previous 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.
Current wording
Net cash used in financing activities of approximately $0.3 million and $0.4 million during the nine months ended September 31, 2024, and 2023, respectively, was principally attributable to principal payments made towards D&O policy premiums.