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SANTA CLARA, Calif., May 06, 2022 (GLOBE NEWSWIRE) — Borqs Technologies, Inc. (Nasdaq: BRQS, “Borqs” or the “Company”), a global provider of 5G wireless, Internet of Things (IoT) and innovative clean energy company with global operations in the United States, India and China, filed its annual report on Form 20-F for the fiscal year ended December 31, 2021 with the SEC on May 2, 2022. stringent supply chain and Covid global challenges, revenue for the full year 2021 was $29.56 million, a 10.5% improvement from $26.75 million in 2020.
As reported in the US GAAP annual report, continuing operations resulted in a net loss of $56.60 million. Significant amounts of the expenses were non-cash convertible note discount charges from the Company’s financing transactions and debt settlement costs involved in the full repayment of Partners For Growth loans. In addition to these extraordinary non-operating and non-cash expenses, the Company’s operations achieved positive Adjusted EBITDA in 2021.
The following table provides a reconciliation of non-GAAP financial measures of EBITDA and Adjusted EBITDA for the results of our continuing operations in 2021.
|Year ended December 31, 2021|
|(USD in thousands)|
|Net income (loss) from continuing operations||(56,602)|
|Depreciation and amortization||2,664|
|Other income (non-operating)||(70)|
|Write-off of historical inventory (non-cash)||1,268|
|Write-off and provision for doubtful assets (excluding cash)||1,757|
|Stock-based compensation (non-cash)||17,533|
|Overdue debt settlement fees (non-cash)||17,199|
|One-time advisory expenses for fundraising activities||2,100|
|Possible loss on sale of subsidiary (excluding cash)||303|
|Change in fair value for acquisition (excluding cash)||111|
* According to 20-F: Interest expense: During the year ended December 31, 2021, interest expense of €12 million consisted mainly of interest expense related to the discount of our convertible notes of $9.9 million. The debt discount and related issue costs are amortized as interest expense, using the effective interest rate method, from the date of issue to the earliest maturity date. Interest charges were settled with shares of the company.
Non-US-GAAP reconciliation EBITDA and Adjusted EBITDA are supplemental non-GAAP financial measures, excluding certain items, to facilitate management’s review of the comparability of our core operating results from period to period. the other, as these items are unrelated to our ongoing core operating results as perceived by management. EBITDA and Adjusted EBITDA are not measures of net income or cash flow as determined by GAAP. We define EBITDA as net income plus income taxes, net interest expense, amortization and depreciation, and adjusted EBITDA as EBITDA less other non-operating expenses.
We believe that EBITDA and Adjusted EBITDA are useful because they allow us to more effectively assess our operating performance and compare the results of our operations from period to period without regard to our funding methods or our capital structure. We exclude the items listed above when calculating EBITDA and Adjusted EBITDA, as these amounts can vary significantly from company to company within our industry depending on accounting policies and asset book values, capital structures and the method by which the assets were acquired. EBITDA and Adjusted EBITDA should not be considered an alternative to or more meaningful than net income as determined in accordance with GAAP, or as an indicator of our operating performance or liquidity. Certain items excluded from EBITDA and Adjusted EBITDA are important elements in understanding and evaluating a company’s financial performance, such as a company’s cost of capital and tax structure, as well as the historical costs of depreciable assets, none of which is a component of EBITDA and Adjusted EBITDA. EBITDA. In prior periods, the Company excluded other items that it no longer excludes for purposes of its non-GAAP financial measures. Our calculations of EBITDA and Adjusted EBITDA may not be comparable to other similarly named measures from other companies.
About Borqs Technologies, Inc.Borqs Technologies is a global leader in software and products for the IoT, providing customizable, differentiated and scalable Android-based smart connected devices and cloud service solutions. Borqs has achieved leadership and customer recognition as an innovative end-to-end IoT solutions provider by leveraging its strategic relationships with its chipset partners as well as its extensive software and IP portfolio. Borqs unique strengths include its Android and Android Wear licenses which have enabled the company to develop a software IP library covering chipset software, Android enhancements, domain-specific usage and system performance optimization, tailored to high and low volume custom products. The Company is also currently developing 5G products for phones and hotspots.
Borqs recently acquired a majority stake in a solar energy storage systems company in the United States
Forward-Looking Statements, Non-GAAP Presentation and Additional InformationThis press release may contain “forward-looking statements” that involve risks and uncertainties that could cause actual results to differ materially from what is expected. Words such as “plans”, “expects”, “believes”, “anticipates”, “intends”, “estimates”, “predicts”, “seeks”, “may”, “might” , “plans”, “possible”, “should”, “estimates” and variations and similar words and expressions are intended to identify such forward-looking statements, but the absence of such words does not mean that a statement is not forward-looking. . This press release also contains non-GAAP financial presentations that are not the formal method of describing financial data as required by SEC rules and regulations. These forward-looking statements and non-GAAP presentations are based on currently available information and reflect the current beliefs of our management. Many factors could cause actual events or results to differ materially from the events and results discussed in the forward-looking statements and the non-GAAP presentation may not be a true description of financial conditions, including the possibility that financial results positives of business activities as described herein may not be achieved or at all, and the negative impact of the COVID-19 pandemic on the Company’s supply chain, revenues and overall operating results , so the reader is referred to the Risk Factors sections of the company’s filings with the Securities and Exchange Commission for additional information identifying important factors that could cause actual results to differ materially from those anticipated in the statements. prospective. Except as expressly required by applicable securities laws, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Source: Borqs Technologies, Inc.