FTE Networks, Inc.

NYSE American: FTNW

Investor Relations

Financials

v3.8.0.1
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Current Assets:    
Cash and cash equivalents $ 9,638 $ 15,642
Accounts receivable, net 78,251 62,199
Costs and estimated earnings in excess of billings on uncompleted contracts 4,552 11,226
Other Current Assets 9,782 7,256
Total Current Assets 102,223 96,323
Property and equipment, net 8,121 7,955
Intangible assets, net 25,443 27,696
Goodwill 35,672 35,672
Total Assets 171,459 167,647
Current Liabilities:    
Accounts payable 46,095 35,135
Billings in excess of costs and estimated earnings on uncompleted contracts 18,516 30,304
Due to related parties 28
Accrued expenses and other current liabilities 7,259 9,973
Notes payable, current portion, net of original issue discount and deferred costs 10,182 10,488
Notes payable, related party, current 7,603 8,526
Total Current Liabilities 89,683 94,426
Notes payable, non-current portion 1,934 1,955
Notes payable, related parties, non-current, net of debt discount 39,523 38,530
Senior note payable, non-current portion, net of original issue discount and deferred financing costs 26,408 24,143
Deferred tax liability 1,122 560
Total Liabilities 158,670 159,614
Commitments and contingencies
Stockholders’ Equity:    
Common stock; $0.001 par value, 100,000,000 shares authorized, and 6,277,630 and 5,789,281 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively 6 6
Additional paid-in capital 57,792 49,381
Shares to be issued 6,681 625
Subscriptions receivable (3,222) (3,675)
Accumulated deficit (48,468) (38,304)
Total Stockholders’ Equity 12,789 8,033
Total Liabilities and Stockholders’ Equity 171,459 167,647
Series A Convertible Preferred Stock [Member]    
Stockholders’ Equity:    
Preferred stock; $0.01 par value, 5,000,000 shares authorized:
Series A-1 Convertible Preferred Shares [Member]    
Stockholders’ Equity:    
Preferred stock; $0.01 par value, 5,000,000 shares authorized:

Source

v3.8.0.1
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Revenues, net of discounts $ 85,145 $ 5,086
Cost of revenues 73,654 2,678
Gross Profit 11,491 2,408
Operating Expenses    
Compensation expense 5,638 1,187
Selling, general and administrative expenses 4,199 974
Amortization of intangible assets 938
Travel expense 268 100
Occupancy costs 172 113
Transaction expenses 93 11
Loss on sale of asset 33
Total operating expenses 11,341 2,385
Operating income 150 23
Other (expense) income    
Interest (expense) income (913) (734)
Amortization of deferred financing costs and debt discount (5,912) (397)
Change in warrant fair market valuation (2,200)
Other income (expense) (597) (99)
Extinguishment loss (322)
Financing costs (2,002) (563)
Total other (expense) income (9,746) (3,993)
(Loss) income before provision for income taxes (9,596) (3,970)
Provision for income taxes 568
Net (loss) income (10,164) (3,970)
Preferred stock dividends (20) (20)
Net (loss) income attributable to common shareholders $ (10,184) $ (3,990)
(Loss) per common share:    
Basic and diluted $ (2.09) $ (1.09)
Weighted average number of common shares outstanding    
Basic and diluted 4,876,131 3,677,617
Predecessor [Member]    
Revenues, net of discounts   $ 39,919
Cost of revenues   32,308
Gross Profit   7,611
Operating Expenses    
Compensation expense   4,757
Selling, general and administrative expenses   1,883
Amortization of intangible assets  
Travel expense   92
Occupancy costs   112
Transaction expenses  
Loss on sale of asset  
Total operating expenses   6,844
Operating income   767
Other (expense) income    
Interest (expense) income   4
Amortization of deferred financing costs and debt discount  
Change in warrant fair market valuation  
Other income (expense)   32
Extinguishment loss  
Financing costs  
Total other (expense) income   36
(Loss) income before provision for income taxes   803
Provision for income taxes   17
Net (loss) income   786
Preferred stock dividends  
Net (loss) income attributable to common shareholders   $ 786

Source

v3.8.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Cash flows from operating activities:    
Net (loss) income $ (10,164) $ (3,970)
Adjustments to reconcile net (loss) income to net cash used in operating activities:    
Amortization of deferred financing costs 2,584 960
Depreciation 407 138
Amortization of original issue discount 5,107 46
Amortization of intangible assets 2,253
Payment in kind interest - senior debt 303
Payment in kind interest - note payable 297 84
Payment in kind interest - related party 435
Share-based compensation 468 214
Change in fair value of warrant derivative liability 2,200
Recovery of bad debts (34)
Deferred tax income taxes 563
Changes in operating assets and liabilities:    
Accounts receivable (11,922) (2,931)
Cost and estimated earnings in excess of billings on uncompleted contracts 6,673
Other current assets 376 (484)
Due to related party (211) 90
Accounts payable and accrued liabilities 9,326 274
Billings in excess of costs and estimated earnings on uncompleted contracts (11,788)
Net cash used in operating activities (5,293) (3,414)
Cash flows from investing activities:    
Purchase of property and equipment (541) (972)
Net cash used in investing activities (541) (972)
Cash flows from financing activities:    
Proceeds from issuance of notes payable, net 6,406 2,947
Payments on notes payable (11,431) (345)
Proceeds from issuance of notes payable – senior notes 23
Payments on notes payable - related parties (725)
Payment of deferred financing costs (80) (260)
Proceeds for shares to be issued 5,437 615
Net proceeds from sale of common stock 200 19
Net cash (used in) provided by financing activities (170) 2,976
Net change in cash (6,004) (1,409)
Cash, beginning of period 15,642 1,411
Cash, end of period 9,638 2
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Cash paid for interest 867 734
Cash paid for income taxes
Non-cash investing and financing activities:    
Common stock shares issued to settle legal matter 300 13
Common stock shares issued for notes payable and other debt 5,660 39
Common shares issued to senior lender 2,568
Common Shares Issued to Board members 447
Accrued dividends, preferred stock 20 20
Common shares issued to employees under employment agreement for future services 3,044
Common shares issued to consultants for services to be rendered $ 2,455 332
Predecessor [Member]    
Cash flows from operating activities:    
Net (loss) income   786
Adjustments to reconcile net (loss) income to net cash used in operating activities:    
Amortization of deferred financing costs  
Depreciation   5
Amortization of original issue discount  
Amortization of intangible assets  
Payment in kind interest - senior debt  
Payment in kind interest - note payable  
Payment in kind interest - related party  
Share-based compensation  
Change in fair value of warrant derivative liability  
Recovery of bad debts  
Deferred tax income taxes  
Changes in operating assets and liabilities:    
Accounts receivable   24,038
Cost and estimated earnings in excess of billings on uncompleted contracts  
Other current assets   (1,061)
Due to related party  
Accounts payable and accrued liabilities   (36,999)
Billings in excess of costs and estimated earnings on uncompleted contracts   10,545
Net cash used in operating activities   (2,685)
Cash flows from investing activities:    
Purchase of property and equipment   (29)
Net cash used in investing activities   (29)
Cash flows from financing activities:    
Proceeds from issuance of notes payable, net  
Payments on notes payable  
Proceeds from issuance of notes payable – senior notes  
Payments on notes payable - related parties  
Payment of deferred financing costs  
Proceeds for shares to be issued  
Net proceeds from sale of common stock  
Net cash (used in) provided by financing activities  
Net change in cash   (2,714)
Cash, beginning of period   4,753
Cash, end of period   2,039
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:    
Cash paid for interest  
Cash paid for income taxes   3
Non-cash investing and financing activities:    
Common stock shares issued to settle legal matter  
Common stock shares issued for notes payable and other debt  
Common shares issued to senior lender  
Common Shares Issued to Board members  
Accrued dividends, preferred stock  
Common shares issued to employees under employment agreement for future services  
Common shares issued to consultants for services to be rendered  

Source

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