LAS VEGAS, Aug. 15, 2022 /PRNewswire/ -- Remark Holdings, Inc. (NASDAQ: MARK), a diversified global technology company with leading artificial intelligence ("AI") solutions and digital media properties today announced its financial results for the fiscal quarter ended June 30, 2022. For complete details of the condensed consolidated interim financial statements and accompanying management's discussion and analysis for the three and six months ended June 30, 2022, please see Remark's filings with the SEC (www.sec.gov).
"The company's second quarter was highlighted by additional partnerships and the joining of industry experts to expand its sales channels significantly," noted Kai-Shing Tao, Chairman and Chief Executive Officer of Remark Holdings. "Our unique value proposition and the innovation inherent in our AI solutions continued to satisfy the different needs of our customers. Looking ahead, we are building a pipeline of opportunities across the U.S. with our SSP-based products with a new streaming fee model and are continuing to advance our deployment activities in China. Taken together, we believe these activities lay the groundwork for continued momentum across our businesses as we seek to deliver first-class AI solutions to our customers."
Second Quarter 2022 Business Highlights
During the second quarter, Remark continued to build its data intelligence business using its Smart Safety Platform ("SSP") and related Smart Sentry units that work with the SSP. Based on initial trial success, the company is building a stream of business opportunities with government agencies, public transportation operators, railways, and sports arenas in the US and UK while continuing to grow its business in Asia.
China Mobile continued to implement Remark's KanKan AI Platform and Smart Queueing System throughout their retail locations, although the pace of implementation has been significantly slowed due to ongoing lockdowns and measures taken by the Chinese government to achieve a zero-COVID status. Most stores are still closed nationwide and the project will resume once the strict lockdowns are lifted.
During the second quarter, Smart Campus solutions were deployed across more than 60 campuses bringing total installations to more than 460 campuses. New functions of the Smart Campus solutions provided a leading management platform for student development, providing a rich set of scenario-based software and AIoT tools for school administrators and families to assemble comprehensive student profiles targeting individual growth. This new product has been installed in more than 100 schools and is helping over 100,000 students daily.
Remark's Smart Construction solutions contributed $1.1 million of revenue as the company completed installations at 14 construction sites, bringing total installations to 67 sites and, thereby, not only completing the initial contract but also securing and partially fulfilling additional contracts on more construction sites. There are an additional 30+ construction sites targeted to be finished in the third quarter of 2022.
Fiscal Second Quarter 2022 Financial Results
Revenue for the fiscal second quarter of 2022 totaled $2.6 million, down from $4.0 million during the fiscal second quarter of 2021.
Gross profit decreased $1.1 million quarter over quarter to $0.7 million during the second quarter of 2022. The overall gross profit margin for the second quarter of 2022 was 27.8%, compared to 43.9% in the same period in 2021.
The company incurred an operating loss of $4.0 million in the second quarter of 2022 compared to an operating loss of $2.5 million in the comparable quarter of 2021.
Net loss totaled $12.5 million, or $0.12 per diluted share in the second quarter ended June 30, 2022, compared to a net loss of $1.5 million, or $0.02 per diluted share in the second quarter ended June 30, 2021.
On June 30, 2022, the cash balance totaled $1.1 million, compared to a cash balance of $14.2 million on December 31, 2021. Net cash used in operating activities was $11.1 million during the six months ended June 30, 2022.
Conference Call Information
Management will hold a conference call this afternoon at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) to discuss the Company's financial results and provide an update on recent business developments. A question and answer session will follow management's presentation.
The live conference may be accessed via telephone or online webcast.
Toll-Free Number: 800.289.0720
International Number: 323.701.0160
Conference ID: 7189339
Online Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1562633&tp_key=7bdfa0774e
Participants are advised to log in for the live webcast 10 minutes prior to the scheduled start time. A replay of the call will be available after 7:30 p.m. Eastern time on the same day through August 20, 2022.
Toll-Free Replay Number: 844.512.2921
International Replay Number: 412.317.6671
Replay ID: 7189339
About Remark Holdings, Inc.
Remark Holdings, Inc. (NASDAQ: MARK) delivers an integrated suite of AI solutions that enable businesses and organizations to solve problems, reduce risk and deliver positive outcomes. The company's easy-to-install AI products are being rolled out in various retail, public safety, and workplace applications. The company also owns and operates an e-commerce digital media property focused on a luxury beach lifestyle. The company's corporate headquarters and U.S. operations are based in Las Vegas, Nevada, and it also maintains operations in London, England, and Shanghai, China. The operations of the variable interest entities that the company consolidates are headquartered in Chengdu, China, with additional offices in Hangzhou. For more information, please visit the company's website at www.remarkholdings.com.
This press release may contain forward-looking statements, including information relating to future events, future financial performance, strategies, expectations, competitive environment, and regulations. Words such as "may," "should," "could," "would," "predicts," "potential," "continue," "expects," "anticipates," "future," "intends," and "plans," "believes," "estimates," and similar expressions, as well as statements in the future tense, identify forward-looking statements. These statements involve known and unknown risks, uncertainties, and other factors, including those discussed in Part I, Item 1A. Risk Factors in Remark Holdings' Annual Report on Form 10-K and Remark Holdings' other filings with the SEC. Any forward-looking statements reflect Remark Holdings' current views concerning future events, are based on assumptions, and are subject to risks and uncertainties. Given such uncertainties, you should not rely on any forward-looking statements, which represent Remark Holdings' estimates and assumptions only as of the date hereof. Except as required by law, Remark Holdings undertakes no obligation to update or revise publicly any forward-looking statements after the date hereof, whether as a result of new information, future events, or otherwise.
Vice President of Investor Relations
REMARK HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(dollars in thousands, except share and per share amounts)
June 30, 2022
December 31, 2021
Trade accounts receivable, net
Investment in marketable securities
Prepaid expense and other current assets
Total current assets
Property and equipment, net
Operating lease assets
Other long-term assets
Advances from related parties
Accrued expense and other current liabilities
Notes payable, net of unamortized discount and debt issuance cost of $320 and
Total current liabilities
Operating lease liabilities, long-term
Commitments and contingencies
Stockholders' Equity (Deficit)
Preferred stock, $0.001 par value; 1,000,000 shares authorized; zero issued
Common stock, $0.001 par value; 175,000,000 shares authorized; 105,157,769
Accumulated other comprehensive loss
Total stockholders' equity (deficit)
Total liabilities and stockholders' equity (deficit)
REMARK HOLDINGS, INC. AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss
(dollars in thousands, except per share amounts)
Three Months Ended June 30,
Six Months Ended June 30,
Revenue, including amounts from China Business
Cost and expense
Cost of revenue (excluding depreciation and
Sales and marketing
Technology and development
General and administrative
Depreciation and amortization
Total cost and expense
Other income (expense)
Change in fair value of warrant liability
Loss on investment
Other gain (loss), net
Total other income (expense), net
Loss before income taxes
Provision for income taxes
Other comprehensive income
Foreign currency translation adjustments
Weighted-average shares outstanding, basic and
Net loss per share, basic and diluted
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SOURCE Remark Holdings, Inc.