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Mohawk Group Holdings, Inc. (MWK)

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Previous Close7.42
Open7.45
Bid0.00 x 900
Ask0.00 x 1000
Day's Range7.22 - 7.67
52 Week Range1.42 - 9.68
Volume169,007
Avg. Volume149,530
Market Cap161.652M
Beta (5Y Monthly)N/A
PE Ratio (TTM)N/A
EPS (TTM)-2.38
Earnings DateNov 09, 2020
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est15.88
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  • Is Mohawk Group Holdings, Inc. (MWK) A Good Stock To Buy?
    Insider Monkey

    Is Mohawk Group Holdings, Inc. (MWK) A Good Stock To Buy?

    Although the masses and most of the financial media blame hedge funds for their exorbitant fee structure and disappointing performance, these investors have proved to have great stock picking abilities over the years (that’s why their assets under management continue to swell). We believe hedge fund sentiment should serve as a crucial tool of an […]

  • Mohawk Group Ranked 226th Fastest Growing Company in North America on Deloitte’s 2020 Technology Fast 500
    GlobeNewswire

    Mohawk Group Ranked 226th Fastest Growing Company in North America on Deloitte’s 2020 Technology Fast 500

    Mohawk’s E-Commerce Platform (AIMEE) Drives 531% Revenue GrowthNEW YORK, Nov. 24, 2020 (GLOBE NEWSWIRE) -- Mohawk Group Holdings, Inc. (NASDAQ: MWK) (“Mohawk”) the tech-enabled, ecommerce consumer products company, today announced it ranked 226th on Deloitte’s 2020 Technology Fast 500™, a ranking of the 500 fastest growing — public and private — technology, media, telecommunications, life sciences and energy tech companies in North America. The ranking is now in its 26th year and award winners for 2020 are selected based on percentage fiscal year revenue growth during the period from 2016 to 2020. During this period, Mohawk’s revenue grew 531%.Mohawk’s Chief Executive Officer, Yaniv Sarig, commented, “This is the second year in a row that the Mohawk team has been honored with a ranking in Deloitte’s Technology Fast 500. In these challenging times, our 531% revenue growth has been a testament to the strength of our AIMEE platform and the agility of our supply chain.”About Deloitte’s 2020Technology Fast 500™ Now in its 26th year, Deloitte’s Technology Fast 500 provides a ranking of the fastest growing technology, media, telecommunications, life sciences and energy tech companies — both public and private — in North America. Technology Fast 500 award winners are selected based on percentage fiscal year revenue growth from 2016 to 2020. In order to be eligible for Technology Fast 500 recognition, companies must own proprietary intellectual property or technology that is sold to customers in products that contribute to a majority of the company's operating revenues. Companies must have base-year operating revenues of at least $50,000, and current-year operating revenues of at least $5 million. Additionally, companies must be in business for a minimum of four years and be headquartered within North America.About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the “Deloitte” name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member firms.About Mohawk Group Holdings, Inc. Mohawk Group Holdings, Inc., together with its subsidiaries (“Mohawk”), is a rapidly growing technology-enabled consumer products company that uses machine learning, natural language processing, and data analytics to design, develop, market and sell products. Mohawk predominantly operates through online retail channels such as Amazon, and Walmart. Mohawk has seven owned and operated brands: hOme, Vremi, Xtava, Truweo, Holonix, Aussie Health and RIF6. Mohawk sells products in multiple categories, including home and kitchen appliances, kitchenware, environmental appliances (i.e., dehumidifiers and air conditioners), beauty-related products and, to a lesser extent, consumer electronics. Mohawk was founded on the premise that if a company selling consumer packaged goods was founded today, it would apply artificial intelligence and machine learning, the synthesis of massive quantities of data and the use of social proof to validate high caliber product offerings as opposed to over-reliance on brand value and other traditional marketing tactics. CONTACT: Investor Contact: Ilya Grozovsky, Mohawk Group ilya@mohawkgp.com 917-905-1699

  • Mohawk Group Reports Third Quarter 2020 Results
    GlobeNewswire

    Mohawk Group Reports Third Quarter 2020 Results

    Net Revenue Grew 45% Year-Over-Year to $58.8 MillionNet Loss Improved to $0.8 Million, Adjusted EBITDA Improved to $5.1 MillionNEW YORK, Nov. 09, 2020 (GLOBE NEWSWIRE) -- Mohawk Group Holdings, Inc. (NASDAQ: MWK) (“Mohawk” or the “Company”) today announced results for the third quarter ended September 30, 2020. Third Quarter 2020 Highlights * 8 new products launched in the third quarter compared to 3 in the third quarter of 2019. * Net revenue grew 45% to $58.8 million, compared to $40.6 million in the third quarter of 2019. * Gross margin improved to 47.8% versus 43.2% in the third quarter of 2019. * Operating income increased to $0.1 million compared to an operating loss of $(14.1) million in the third quarter of 2019. * Contribution margin improved to 19.1% from 8.0% in the third quarter of 2019. * Excluding non-cash stock-based compensation of $4.9 million in the third quarter of 2020 and $11.4 million in the third quarter of 2019, fixed operating expenses for the third quarter decreased as a percentage of net revenue to 10.5% compared to 14.6% in the third quarter of 2019. * Net loss of $(0.8) million improved from a net loss of $(15.0) million in the third quarter of 2019. * Adjusted EBITDA improved to $5.1 million versus a loss of $(2.7) million in the third quarter of 2019. * Total cash balance at September 30, 2020 increased by $20.2 million from June 30, 2020 to $37.4 million, while reducing our revolving credit facility and term loan debt by $5.9 million.Yaniv Sarig, Co-Founder and Chief Executive Officer, commented, “The third quarter was an exciting one for Mohawk, as we saw solid revenue growth and Adjusted EBITDA profitability growth. E-commerce adoption continues to accelerate and we feel very well positioned to capitalize on this trend. In the third quarter we also successfully executed on the acquisition of Truweo, a wellness brand, and we are pleased with the integration of the brand into our portfolio. We are already expanding the brand’s offerings through our core business model by developing several new products that we expect to launch in the first quarter of 2021. We expect to continue to invest in our M&A strategy in the coming quarters by acquiring and integrating additional accretive e-commerce businesses into our platform while continuing to grow the number of new products we develop and launch.” Outlook For full year 2020, the Company continues to expect net revenue to be in the range of $175.0 million to $185.0 million driven primarily by continued growth of its existing product portfolio, new products launched in 2020, and the positive contribution from wholesale personal protective equipment (“PPE”). The Company continues to expect to generate positive Adjusted EBITDA in the fourth quarter of 2020 and for the full year 2020.The most directly comparable GAAP financial measure for Adjusted EBITDA is net loss and we expect to report a net loss for the three months ending December 31, 2020 and for the twelve months ending December 31, 2020, due primarily to quarterly interest expense, net and stock-based compensation expense.Non-GAAP Financial MeasuresFor more information on our non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, please see the “Non-GAAP Financial Measures and Reconciliations” section below. Webcast and Conference Call InformationMohawk will host a live conference call to discuss financial results today, November 9, 2020, at 5:00 p.m. Eastern Time. To access the call, participants from within the U.S. should dial (877) 295-1077 and participants from outside the U.S. should dial (470) 495-9485 and provide the conference ID: 3541208. Participants may also access the call through a live webcast at https://ir.mohawkgp.com/investor-relations. Please visit the website at least 15 minutes prior to the start of the call to register and download any necessary software. The archived online replay will be available for a limited time after the call in the Investor Relations section of Mohawk’s website.About Mohawk Group Holdings, Inc. Mohawk Group Holdings, Inc., together with its subsidiaries (“Mohawk”), is a rapidly growing technology-enabled consumer products company that uses machine learning, natural language processing, and data analytics to design, develop, market and sell products. Mohawk predominantly operates through online retail channels such as Amazon, and Walmart. Mohawk has seven owned and operated brands: hOme, Vremi, Xtava, Truweo, Holonix, Aussie Health and RIF6. Mohawk sells products in multiple categories, including home and kitchen appliances, kitchenware, environmental appliances (i.e., dehumidifiers and air conditioners), personal protective equipment, beauty-related products and, to a lesser extent, consumer electronics. Mohawk was founded on the premise that if a company selling consumer packaged goods was founded today, it would apply artificial intelligence and machine learning, the synthesis of massive quantities of data and the use of social proof to validate high caliber product offerings as opposed to over-reliance on brand value and other traditional marketing tactics.Forward Looking StatementsAll statements other than statements of historical facts included in this press release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements including, in particular, the statements about our expected 2020 net revenue, our expected Adjusted EBITDA and net loss for the fourth quarter of 2020 and full year 2020, our ability to leverage our tech enabled business model, our ability to continue to invest in our software platform to drive efficiencies, our ability to capitalize on the adoption of e-commerce and the shift to online consumer spending, our ability to expand Truweo’s product offerings, the expected timing of new product launches, including the expected launch of new products for the Truweo brand in the first quarter of 2021, expectations regarding continued investment in our M&A strategy in the future, our ability to integrate additional e-commerce businesses into our platform, our ability to acquire accretive e-commerce businesses, our ability to grow the number of new products we develop and launch and our ability to continue to maintain or grow our existing product portfolio, including our ability to maintain or grow sales of PPE.These forward-looking statements are based on management’s current expectations and beliefs and are subject to uncertainties and factors, all of which are difficult to predict and many of which are beyond our control and could cause actual results to differ materially and adversely from those described in the forward-looking statements. These risks include, but are not limited to, those related to the impact of the COVID-19 pandemic including its impact on consumer demand, our cash flows, financial condition and revenue growth rate; our supply chain including sourcing, manufacturing, warehousing and fulfillment; our ability to manage expenses, working capital and capital expenditures efficiently; our business model and our technology platform; our ability to disrupt the consumer products industry; our ability to grow market share in existing and new product categories, including PPE; our ability to generate profitability and stockholder value; international tariffs and trade measures; inventory management, product liability claims, recalls or other safety and regulatory concerns; reliance on third party online marketplaces; seasonal and quarterly variations in our revenue; acquisitions of other companies and technologies and our ability to integrate any such companies and technologies with our business and other factors discussed in the “Risk Factors” section of our most recent periodic reports filed with the Securities and Exchange Commission (“SEC”), all of which you may obtain for free on the SEC’s website at www.sec.gov.Although we believe that the expectations reflected in our forward-looking statements are reasonable, we do not know whether our expectations will prove correct. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, even if subsequently made available by us on our website or otherwise. We do not undertake any obligation to update, amend or clarify these forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.Investor Contact: Ilya Grozovsky, Mohawk Group ilya@mohawkgp.com 917-905-1699 MOHAWK GROUP HOLDINGS, INC.MOHAWK GROUP HOLDINGS, INC. Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except share and per share data  December 31, 2019  September 30, 2020  ASSETS         CURRENT ASSETS:         Cash $30,353  $37,385  Accounts receivable—net  1,059   8,516  Inventory  36,212   18,791  Prepaid and other current assets  5,395   7,343  Total current assets  73,019   72,035  PROPERTY AND EQUIPMENT—net  175   132  GOODWILL AND OTHER INTANGIBLES—net  1,055   16,700  OTHER NON-CURRENT ASSETS  175   174  TOTAL ASSETS $74,424  $89,041  LIABILITIES AND STOCKHOLDERS’ EQUITY         CURRENT LIABILITIES:         Credit facility $21,657  $13,418  Accounts payable  21,064   14,538  Term loan  3,000   6,500  Accrued and other current liabilities  7,505   12,334  Total current liabilities  53,226   46,790  OTHER LIABILITIES  4   2,480  TERM LOANS  10,467   6,350  Total liabilities  63,697   55,620  COMMITMENTS AND CONTINGENCIES         STOCKHOLDERS’ EQUITY:         Common stock, par value $0.0001 per share—500,000,000 shares authorized and 17,736,649 shares outstanding at December 31, 2019; 500,000,000 shares authorized and 21,844,944 shares outstanding at September 30, 2020  2   2  Additional paid-in capital  140,477   181,971  Accumulated deficit  (129,809)  (148,581) Accumulated other comprehensive income  57   29  Total stockholders’ equity  10,727   33,421  TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $74,424  $89,041            MOHAWK GROUP HOLDINGS, INC. Condensed Consolidated Statements of Operations (Unaudited) (in thousands, except share and per share data)   Three Months Ended September 30,  Nine Months Ended September 30,    2019  2020  2019  2020  NET REVENUE $40,603  $58,783  $88,817  $144,212  COST OF GOODS SOLD  23,076   30,688   52,859   78,218  GROSS PROFIT  17,527   28,095   35,958   65,994  OPERATING EXPENSES:                 Sales and distribution  18,111   18,944   41,094   51,472  Research and development  3,226   1,846   7,731   6,578  General and administrative  10,261   7,199   23,932   23,554  TOTAL OPERATING EXPENSES:  31,598   27,989   72,757   81,604  OPERATING INCOME (LOSS)  (14,071)  106   (36,799)  (15,610) INTEREST EXPENSE—net  875   934   3,368   3,120  OTHER EXPENSE (INCOME)—net  21   (23)  53   (4) LOSS BEFORE INCOME TAXES  (14,967)  (805)  (40,220)  (18,726) PROVISION FOR INCOME TAXES  8   —   23   46  NET LOSS $(14,975) $(805) $(40,243) $(18,772) Net loss per share, basic and diluted $(0.99) $(0.05) $(3.10) $(1.18) Weighted-average number of shares outstanding, basic and diluted  15,134,422   17,090,050   12,971,641   15,903,517                    MOHAWK GROUP HOLDINGS, INC. Condensed Consolidated Statements of Cash Flows (Unaudited) (in thousands)   Nine Months Ended September 30,    2019  2020  OPERATING ACTIVITIES:         Net loss $(40,243) $(18,772) Adjustments to reconcile net loss to net cash used in operating activities:         Depreciation and amortization  136   179  Provision for sales returns  236   77  Amortization of deferred financing costs and debt discounts  914   914  Stock-based compensation  24,747   17,472  Other  101   5  Changes in assets and liabilities:         Accounts receivable  (1,784)  (7,492) Inventory  4,944   17,235  Prepaid and other current assets  (2,307)  (320) Accounts payable, accrued and other liabilities  110   (1,698) Cash (used in) provided by operating activities  (13,146)  7,600  INVESTING ACTIVITIES:         Purchase of Truweo assets  —   (14,032) Purchase of fixed assets  (48)  (33) Purchase of Aussie Health Co. assets  (1,105)  —  Proceeds on sale of fixed assets  6   —  Cash used in investing activities  (1,147)  (14,065) FINANCING ACTIVITIES:         Proceeds from exercise of stock options  2   12  Proceeds from initial public offering, net of issuance costs  30,554   —  Proceeds from issuance of common stock from follow-on public offering, net of issuance costs  —   23,416  Repayment of note payable related to Aussie Health acquisition  —   (207) Taxes paid related to net settlement upon vesting of restricted common stock  —   (112) Borrowings from Mid Cap credit facility  69,740   99,508  Repayments from Mid Cap credit facility  (71,082)  (108,278) Repayments from Horizon term loan  —   (1,000) Debt issuance costs from Mid Cap credit facility  (581)  —  Debt issuance costs from Horizon term loan  (900)  —  Deferred offering costs  —   (139) Insurance obligation payments  (1,818)  (2,357) Insurance financing proceeds  3,833   2,660  Capital lease obligation payments  (42)  (4) Cash provided by financing activities  29,706   13,499  EFFECT OF EXCHANGE RATE ON CASH  1   3  NET CHANGE IN CASH AND RESTRICTED CASH FOR PERIOD  15,414   7,037  CASH AND RESTRICTED CASH AT BEGINNING OF PERIOD  20,708   30,789  CASH AND RESTRICTED CASH AT END OF PERIOD $36,122  $37,826  RECONCILIATION OF CASH AND RESTRICTED CASH         CASH $35,686  $37,385  RESTRICTED CASH—Prepaid and other assets  307   312  RESTRICTED CASH—Other non-current assets  129   129  TOTAL CASH AND RESTRICTED CASH $36,122  $37,826  SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION         Cash paid for interest $2,467  $2,321  Cash paid for taxes $15  $45  Non-cash consideration paid to contractors $—  $1,013  Non-cash barter exchange of inventory for advertising credits $—  $889  NON-CASH INVESTING AND FINANCING ACTIVITIES:         Note payable on acquisition of Truweo $—  $2,455  Note payable on acquisition of Aussie Health $195  $—            Non-GAAP Financial Measures and ReconciliationsIn addition to disclosing financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), this press release and accompanying tables include certain non-GAAP financial measures. The non-GAAP financial measures contained herein are a supplement to the corresponding financial measures prepared in accordance with U.S. GAAP. The non-GAAP financial measures presented exclude the items described below. Management believes that adjustments for these items assist investors in making comparisons of period-to-period operating results. Furthermore, management also believes that these items are not indicative of the Company’s on-going core operating performance. These non-GAAP financial measures have certain limitations in that they do not reflect all of the costs associated with the operations of the Company’s business as determined in accordance with GAAP.Therefore, investors should consider non-GAAP financial measures in addition to, and not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. The non-GAAP financial measures presented by the Company may be different from the non-GAAP financial measures used by other companies.The Company has presented the following non-GAAP measures to assist investors in understanding the Company’s core net operating results on an on-going basis: (i) Contribution margin; (ii) Contribution margin as a percentage of net revenue; (iii) Adjusted EBITDA; (iv) Adjusted EBITDA as a percentage of net revenue and (v) cash burn. These non-GAAP financial measures may also assist investors in making comparisons of the Company’s core operating results with those of other companies.As used herein, Contribution margin represents operating loss plus general and administrative expenses, research and development expenses and fixed sales and distribution expenses including stock-based compensation expense. As used herein, Contribution margin as a percentage of net revenue represents Contribution margin divided by net revenue. As used herein, EBITDA represents net loss plus depreciation and amortization, interest expense, net and income tax expense. As used herein, Adjusted EBITDA represents EBITDA plus stock-based compensation expense and other expense, net. As used herein, Adjusted EBITDA as a percentage of net revenue represents Adjusted EBITDA divided by net revenue. Contribution margin, EBITDA and Adjusted EBITDA do not represent and should not be considered as alternatives to loss from operations or net loss, as determined under GAAP.We present Contribution margin, Contribution margin as a percentage of net revenue, EBITDA, Adjusted EBITDA and Adjusted EBITDA as a percentage of net revenue because we believe each of these measures provides an additional metric to evaluate our operations and, when considered with both our GAAP results and the reconciliation to net loss, provides useful supplemental information for investors. We use Contribution margin, Contribution margin as a percentage of net revenue, EBITDA, Adjusted EBITDA and Adjusted EBITDA as a percentage of net revenue, together with financial measures prepared in accordance with GAAP, such as sales and gross margins, to assess our historical and prospective operating performance, to provide meaningful comparisons of operating performance across periods, to enhance our understanding of our operating performance and to compare our performance to that of our peers and competitors.We believe EBITDA, Adjusted EBITDA and Adjusted EBITDA as a percentage of net revenue are useful to investors in assessing the operating performance of our business without the effect of non-cash items, while Contribution margin and Contribution margin as a percentage of net revenue are useful to investors in assessing the operating performance of our products as they represent our operating results without the effects of fixed costs and non-cash items. Contribution margin, Contribution margin as a percentage of net revenue, EBITDA, Adjusted EBITDA and Adjusted EBITDA as a percentage of net revenue, should not be considered in isolation or as alternatives to net loss, loss from operations or any other measure of financial performance calculated and prescribed in accordance with GAAP. Neither EBITDA, Adjusted EBITDA nor Adjusted EBITDA as a percentage of net revenue should be considered a measure of discretionary cash available to us to invest in the growth of our business. Our Contribution margin, Contribution margin as a percentage of net revenue, EBITDA, Adjusted EBITDA and Adjusted EBITDA as a percentage of net revenue may not be comparable to similar titled measures in other organizations because other organizations may not calculate Contribution margin, EBITDA, Adjusted EBITDA or Adjusted EBITDA as a percentage of net revenue in the same manner as we do. Our presentation of Contribution margin and Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by the expenses that are excluded from such terms or by unusual or non-recurring items.We recognize that EBITDA, Adjusted EBITDA and Adjusted EBITDA as a percentage of net revenue, have limitations as analytical financial measures. For example, neither EBITDA nor Adjusted EBITDA reflects: * our capital expenditures or future requirements for capital expenditures or mergers and acquisitions; * the interest expense or the cash requirements necessary to service interest expense or principal payments, associated with indebtedness; * depreciation and amortization, which are non-cash charges, although the assets being depreciated and amortized will likely have to be replaced in the future, or any cash requirements for the replacement of assets; or * changes in cash requirements for our working capital needs.Additionally, Adjusted EBITDA excludes non-cash expense for stock-based compensation, which is and will remain a key element of our overall long-term incentive compensation package.The following table represents a reconciliation of EBITDA and Adjusted EBITDA to net loss, which is the most directly comparable financial measure presented in accordance with GAAP (in thousands):  Three Months Ended September 30,  Nine Months Ended September 30,    2019  2020  2019  2020    (in thousands)  (in thousands)  Net loss $(14,975) $(805) $(40,243) $(18,772) Add:                 Provision for income taxes  8   —   23   46  Interest expense, net  875   934   3,368   3,120  Depreciation and amortization  41   100   136   179  EBITDA  (14,051)  229   (36,716)  (15,427) Other expense (income), net  21   (23)  53   (4) Stock-based compensation expense  11,374   4,861   24,747   17,472  Adjusted EBITDA $(2,656) $5,067  $(11,916) $2,041  Adjusted EBITDA as a percentage of net revenue  (6.5)%  8.6%  (13.4)%  1.4%                   We also recognize that Contribution margin and Contribution margin as a percentage of net revenue have limitations as analytical financial measures. For example, Contribution margin does not reflect: * general and administrative expenses necessary to operate our business; * research and development expenses necessary for the development, operation and support of our software platform; or * the fixed costs portion of our sales and distribution expenses including stock-based compensation expenseThe following table provides a reconciliation of Contribution Margin to operating loss, which is the most directly comparable financial measure presented in accordance with GAAP (in thousands):  Three Months Ended September 30,  Nine Months Ended September 30,    2019  2020  2019  2020    (in thousands)  (in thousands)  Operating (loss) income $(14,071) $106  $(36,799) $(15,610) Add:                 General and administrative expenses  10,261   7,199   23,932   23,554  Research and development expenses  3,226   1,846   7,731   6,578  Sales and distribution fixed expenses, including stock-based compensation expense  3,814   2,058   9,308   5,970  Contribution margin $3,230  $11,209  $4,172  $20,492  Contribution margin as a percentage of net revenue  8.0%  19.1%  4.7%  14.2%                   We believe each of our products goes through three core phases as follows: 1. Launch phase: During this phase, we leverage our technology to target opportunities identified using AIMEE. During this period of time, and due to the combination of discounts and investment in marketing, our net margin for a product could be as low as negative 35%. In general, a product may stay in the launch phase on average for 3 months. 2. Sustain phase: Our goal is for every product we launch to enter the sustain phase and become profitable, with a target average of positive 10% net margin (i.e. contribution margin). Over time, our products benefit from economies of scale stemming from purchasing power both with manufacturers and with fulfillment providers. 3. Liquidate phase: If a product does not enter the sustain phase or if the customer satisfaction of the product (i.e., ratings) are not satisfactory, then it will go to the liquidate phase and we will sell the remaining inventory.The following table breaks out our quarterly results of operations by our product phases including our SaaS business line :  Three months ended September 30, 2020 (in thousands) (unaudited)   Sustain Launch SaaS Liquidate Other Fixed Costs Stock-based compensation expense Total NET REVENUE $41,598 $5,029 $340 $2,496 $9,320 $ - $ - $58,783 COST OF GOODS SOLD 19,849 2,753 - 1,806 6,280 - - 30,688 GROSS PROFIT 21,749 2,276 340 690 3,040 - - $28,095 OPERATING EXPENSES:                 Sales and distribution 11,898 2,023 147 1,042 1,833 1,253 748 18,944 Research and development - - - - - 1,068 778 1,846 General and administrative - - - - - 3,864 3,335 7,199                     Three months ended September 30, 2019 (in thousands) (unaudited)   Sustain Launch SaaS Liquidate Other Fixed Costs Stock-based compensation expense Total NET REVENUE $36,162 $2,771 $316 $1,341 $13  $ - $ - $40,603 COST OF GOODS SOLD 21,801 1,983 - 420 (1,128) - - 23,076 GROSS PROFIT 14,361 788 316 $921 $1,141  - - $17,527 OPERATING EXPENSES:                 Sales and distribution 11,249 1,637 138 480 793  1,393 2,421 18,111 Research and development - - - - -  1,306 1,920 3,226 General and administrative - - - - -  3,228 7,033 10,261                      Nine months ended September 30, 2020 (in thousands) (unaudited)   Sustain Launch SaaS Liquidate Other Fixed Costs Stock-based compensation expense Total NET REVENUE $102,549 $16,838 $1,048 $8,568 $15,209 $ - $ - $144,212 COST OF GOODS SOLD 52,726 9,390 - 6,190 9,912 - - 78,218 GROSS PROFIT 49,823 7,448 1,048 $2,378 $5,297 - - $65,994 OPERATING EXPENSES:                 Sales and distribution 30,178 7,502 364 4,269 3,247 4,151 1,761 51,472 Research and development - - - - - 3,347 3,231 6,578 General and administrative - - - - - 11,074 12,480 23,554                     Nine months ended September 30, 2019 (in thousands) (unaudited)   Sustain Launch SaaS Liquidate Other Fixed Costs Stock-based compensation expense Total NET REVENUE $76,922 $6,875 $1,274 $3,706 $40  $ - $ - $88,817 COST OF GOODS SOLD 46,933 4,658 - 2,394 (1,126) - - 52,859 GROSS PROFIT 29,989 $2,217 $1,274 1,312 1,166  - - $35,958 OPERATING EXPENSES:                 Sales and distribution 24,977 3,570 414 2,044 782  4,089 5,218 41,094 Research and development - - - - -  3,779 3,952 7,731 General and administrative - - - - -  8,355 15,577 23,932                    The following table provides summarized quarterly information from our condensed statement of cash flows for three months ended March 31, 2019 and 2020, three months ended June 30, 2019 and 2020, three months ended September 30, 2019 and 2020, and nine months ended September 30, 2019 and 2020:  Three months ended Nine Months Ended   March 31, 2019 June 30, 2019 September 30, 2019 September 30, 2019 Operating activities:         Net loss $(8,389) $(16,879) $(14,975) $(40,243) Total adjustments to reconcile net loss to net cash used in operating activities  1,879   12,473   11,782   26,134  Cash (used in) provided by working capital (changes in assets and liabilities)  (5,414)  41   6,336   963  Cash (used in) provide by operating activities  (11,924)  (4,365)  3,143   (13,146)           Cash used in investing activities  (10)  (11)  (1,126)  (1,147)           Financing activities:         Proceeds from initial public offering, less issuance costs  —   30,902   (348)  30,554  Net proceeds from (payments to) MidCap Credit Facility, including debt issuance costs  5,520   (1,618)  (5,244)  (1,342) All other financing activities  (892)  1,652   (266)  494  Cash provided by (used in) financing activities  4,628   30,936   (5,858)  29,706  Effect of exchange rate on cash  1   —   (1)  1  Net change in cash and restricted cash for period $(7,305) $26,560  $(3,842) $15,414                      Three months ended Nine Months Ended   March 31, 2020 June 30, 2020 September 30, 2020 September 30, 2020 Operating activities:         Net loss $(15,030) $(2,937) $(805) $(18,772) Total adjustments to reconcile net loss to net cash used in operating activities  7,901   5,450   5,296   18,647  Cash (used in) provided by working capital (changes in assets and liabilities)  (9,962)  5,655   12,032   7,725  Cash (used in) provide by operating activities  (17,091)  8,168   16,523   7,600            Cash used in investing activities  (18)  (1)  (14,046)  (14,065)           Financing activities:         Proceeds from equity offering, less issuance costs  (139)  139   23,416   23,416  Net proceeds from (payments to) MidCap Credit Facility, including debt issuance costs  2,021   (5,863)  (4,928)  (8,770) Payments to term loan with Horizon  —   —   (1,000)  (1,000) All other financing activities  (1,079)  703   229   (147) Cash provided by (used in) financing activities  803   (5,021)  17,717   13,499  Effect of exchange rate on cash  3   (2)  2   3  Net change in cash and restricted cash for period $(16,303) $3,144  $20,196  $7,037