Welcome!

News Feed Item

Resonant Inc. Reports Second Quarter Financial Results

Resonant Inc. (NASDAQ: RESN), a late-stage development stage company that is creating innovative filter designs for radio frequency, or RF, front-ends for the mobile device industry, today announced financial results for the second quarter ended June 30, 2014 and provided a business update.

Highlights for the Second Quarter 2014

  • Successfully closed an initial public offering (IPO) of 3.1 million shares of common stock (including the exercise in full by the underwriter of its over-allotment option) on June 3 at a price of $6.00 per share listed on the NASDAQ Capital Market under the symbol “RESN”
  • Generated $16.2 million in net proceeds from the IPO
  • Completed the second of four milestones on the duplexer design under the Company’s existing development agreement
  • Expanded the Company’s patent portfolio to 38 issued and pending patents at June 30, 2014, up from 35 at the time of the IPO
  • Was added to the Russell Microcap® Index in early July
  • Appointed John Philpott, CPA, MBA, as Chief Financial Officer. Mr. Philpott has more than 20 years’ financial and accounting management experience including serving as Chief Financial Officer for 3 other public, early stage companies. For his full bio, visit: management bios.

“The funds from our successful IPO will enable us to aggressively pursue Resonant’s long-term vision to transform the field of RF front-ends for mobile devices,” said Chief Executive Officer, Co-Founder and Chairman Terry Lingren. “This is a market that was $2.7 billion in 2013 and is forecasted to reach $5.2 billion by 2017, according to market research firm Navian. Using our proprietary Infinite Synthesized NetworksTM technology coupled with our highly experienced design team and a substantial technology lead, we expect to disrupt the status quo and deliver next-generation designs that are not available with the current technology. This becomes especially important as we move into the Internet of Things and wireless connectivity becomes ubiquitous.”

Financial Results for the Second Quarter and YTD1

  • Ended the Second Quarter with $16.7 million of working capital. Working capital improved by $25.5 million from $8.8 million of negative working capital at December 31, 2013.
  • Converted $9.4 million of outstanding notes into 2.8 million common shares as a result of the IPO, eliminating the debt and future interest expense.
  • Research and development expenses increased $861,000 to $989,000 in the Second Quarter. The increase reflected accelerated activity on a duplexer design under development for a potential customer.
  • General and administrative expenses declined $308,000 in the Second Quarter to $455,000. The decline was a result of a non-cash accounting charge of $716,000 in the same period last year for the fair value of warrants issued for business consulting services. Excluding the effect of the accounting charge, G&A expenses increased by $420,000 in the Second Quarter.
  • Operating loss increased by $610,000 to $1.5 million for the Second Quarter. The increased loss primarily reflected increased R&D activities and G&A expenses consistent with planned growth.
  • Interest expense increased $1.8 million in the Second Quarter to $2.1 million. The increase was primarily the result of the conversion of all outstanding notes into common stock in the IPO. The conversion triggered the full write-off of related debt discounts and issuance costs. The increase also included, to a lesser degree, interest paid on the notes. The prior periods included minimal interest because the notes were issued late in the second quarter of 2013.
  • The net loss increased by $1.8 million to $3.3 million, or $0.81 per fully diluted share, for the Second Quarter.

______________________________________

1 Financial data is for the second quarter (Second Quarter) and year-to-date (YTD) ended June 30, 2014. Comparisons are to the comparable periods in 2013.

Commenting on the Company’s outlook, Terry Lingren stated, “Our primary activity in the near term will be to continue work on the duplexer design under our existing development agreement. We are actively working on the third milestone and expect to complete work on the duplexer design before the end of 2014. We also plan to start work on a tunable design before year end. We are hiring additional technical personnel to support product development and are forecasting increasing levels of cash expenditures. Even assuming no revenues, we believe our cash resources will provide sufficient funds for planned operations into 2016.”

Conference Call

Resonant will host a conference call today at 5:00 p.m. Eastern (2:00 p.m. Pacific). Investors interested in participating in the live call can dial 1-877-407-3982 from the U.S. and international callers can dial 1-201-493-6780. A telephone replay will be available approximately two hours after the call concludes through October 13 by dialing 1-877-870-5176 from the U.S., or 1-858-384-5517 from international locations, and entering Replay Pin Number 13586870.

There also will be a simultaneous, live webcast available on the Investor Relations section of the Company's web site at www.resonant.com. The webcast will be available for replay for 60 days.

About Resonant Inc.

Resonant is a late-stage development company creating innovative filter designs for radio frequency, or RF, front-ends for the mobile device industry. Resonant uses a fundamentally new technology called Infinite Synthesized Networks™, or ISN™, to configure and connect acoustic resonators, the building blocks of RF filters. Filters are a critical component of the RF front-end used to select desired signals and reject unwanted signals. ISN is a systematic process that employs a comprehensive suite of patented and proprietary circuit design methods and tools to create filters. Resonant is using ISN to develop new classes of filter designs. For information, please visit www.resonant.com.

Safe Harbor for Forward-Looking Statements

This press release contains forward-looking statements. Forward-looking statements include the following subjects, among others: the status of filter designs under development, the prospects for licensing filter designs upon completion of development, plans for other filter designs not currently in development, potential customers for our designs, the timing and amount of future royalty streams, the expected duration of our capital resources, our hiring plans, our cash flow forecast, the impact of our designs on the mobile device market, and our business strategy. Forward-looking statements are inherently subject to risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, including, without limitation, the following: our limited operating history (particularly as a new public company); management of R&D efforts; the acceptance of our filter designs by potential customers; the ability of our customers (or their manufacturers) to fabricate our designs in commercial quantities; the risk that the intense competition and rapid technological change in our industry renders our designs less useful or obsolete; our ability to find, recruit and retain the highly skilled personnel required for our design process in sufficient numbers to support our growth; our ability to manage growth; and general market, economic and business conditions. Additional factors that could cause actual results to differ materially from those anticipated by our forward-looking statements are under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our prospectus dated May 28, 2014, and our most recent Quarterly Report (Form 10-Q), both filed with the Securities and Exchange Commission. Forward-looking statements are made as of the date of this release, and we expressly disclaim any obligation or undertaking to update forward-looking statements.

                       

Resonant Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

 

Three Months

Ended June 30,

2014

     

Six Months

Ended June 30,

2014

Three Months

Ended June 30,

2013

     

Six Months

Ended June 30,

2013

REVENUE $ - $ - $ - $ -
OPERATING EXPENSES
R&D expenses 968,807 1,403,666 108,499 225,336
G&A expenses 454,632 976,547 763,386 886,414
Depreciation and amortization   62,003           75,344     2,575           4,905  
TOTAL OPERATING EXPENSES   1,485,442           2,455,557     874,460           1,116,655  
OPERATING LOSS   (1,485,442 )         (2,455,557 )   (874,460 )         (1,116,655 )
OTHER INCOME (EXPENSE)
Interest income 1,640 2,193 231 231
Interest expense (2,098,832 ) (2,807,862 ) (314,294 ) (369,065 )
Fair value adjustments to warrant and derivative liabilities (928,021 ) (3,195,387 ) - -
Bridge warrant expense - - (312,486 ) (560,155 )
Other income   1,163,772           1,163,772     -           -  
TOTAL OTHER EXPENSE   (1,861,441 )         (4,837,284 )   (626,549 )        

(928,989

)

LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

  (3,346,883 )         (7,292,841 )   (1,501,009 )        

(2,046,644

)
Provision for income taxes   -           (800 )   (800 )         (800 )
NET LOSS $ (3,346,883 )       $ (7,293,641 ) $ (1,501,809 )       $ (2,046,444 )
                   

NET LOSS PER SHARE — BASIC AND DILUTED*

$ (0.81 )       $ (2.37 ) $ -         $ -  

Weighted average shares outstanding — basic and diluted*

  4,136,954           3,074,379     -           -  
 

*Loss per share is not presented for the 2013 periods because the Company was accounted for as a limited liability company prior to June 17, 2013.

                     
Resonant Inc.

Condensed Consolidated Balance Sheets

                   

June 30,

2014

               

December 31,

2013

(Unaudited) (Audited)
ASSETS
Cash and cash equivalents $ 17,353,866 $ 3,338,979
TOTAL CURRENT ASSETS 17,434,965 4,266,948
PROPERTY AND EQUIPMENT, NET 698,226 223,760
TOTAL NONCURRENT ASSETS   447,178                     391,485  
TOTAL ASSETS $ 18,580,369                   $ 4,882,193  
 
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
TOTAL CURRENT LIABILITIES $ 762,617 $ 13,066,198
TOTAL LONG-TERM LIABILITIES 4,905,982 3,279,960
STOCKHOLDERS’ EQUITY
Common stock 6,897 1,000
Additional paid-in capital 31,664,479 1,000
Accumulated deficit   (18,759,606 )                   (11,465,965 )

TOTAL STOCKHOLDERS’ EQUITY (DEFICIT)

12,911,770 (11,463,965 )
                   
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 18,580,369                   $ 4,882,193  
 

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. Big Data at Cloud Expo - to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is...
Digital innovation is the next big wave of business transformation based on digital technologies of which IoT and Big Data are key components, For example: Business boundary innovation is a challenge to excavate third-party business value using IoT and BigData, like Nest Business structure innovation may propose re-building business structure from scratch, as Uber does in the taxicab industry The social model innovation is also a big challenge to the new social architecture with the design fr...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
IoT is fundamentally transforming the auto industry, turning the vehicle into a hub for connected services, including safety, infotainment and usage-based insurance. Auto manufacturers – and businesses across all verticals – have built an entire ecosystem around the Connected Car, creating new customer touch points and revenue streams. In his session at @ThingsExpo, Macario Namie, Head of IoT Strategy at Cisco Jasper, will share real-world examples of how IoT transforms the car from a static p...
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the protocols that communicate data and the emerging data analy...
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...
I’m going to cry tonight, long and hard. I’ll do so as I remember and mourn Jeremy Geelan. I knew Jeremy for almost 20 years, from the time he showed up one day at Cloud Expo’s headquarters in Bergen County, New Jersey, and went to work. The show wasn’t called Cloud Expo then, of course – it was still known as Java Edge, a pioneering event that grabbed developers, architects, and enterprise IT users alike for twice-yearly confabs. Jeremy didn’t have a job there, or even a job offer. He was s...
SYS-CON Events announced today that China Unicom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE F...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
In his session at @DevOpsSummit at 19th Cloud Expo, Robert Doyle, lead architect at eCube Systems, will examine the issues and need for an agile infrastructure and show the advantages of capturing developer knowledge in an exportable file for migration into production. He will introduce the use of NXTmonitor, a next-generation DevOps tool that captures application environments, dependencies and start/stop procedures in a portable configuration file with an easy-to-use GUI. In addition to captu...
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of So...
Big Data has been changing the world. IoT fuels the further transformation recently. How are Big Data and IoT related? In his session at @BigDataExpo, Tony Shan, a renowned visionary and thought leader, will explore the interplay of Big Data and IoT. He will anatomize Big Data and IoT separately in terms of what, which, why, where, when, who, how and how much. He will then analyze the relationship between IoT and Big Data, specifically the drilldown of how the 4Vs of Big Data (Volume, Variety,...