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Remark Holdings Announces Second Quarter 2024 Financial Results

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Remark Holdings (OTCQX: MARK) reported Q2 2024 financial results, showing significant growth. Revenue increased to $3.7 million, up 856% sequentially and 16.8% year-over-year. The company completed its first project for Clark County School District, securing a $5 million weapons detection contract with potential for nine one-year extensions. Remark AI showcased solutions at NYC Smart City Expo and completed POCs for a European railway system and a Migrant Center. Despite growth, the company reported a net loss of $5.3 million. Remark resolved debt issues with Mudrick Capital Management by exchanging non-convertible notes for convertible debentures.

Remark Holdings (OTCQX: MARK) ha riportato i risultati finanziari del secondo trimestre del 2024, evidenziando una crescita significativa. I ricavi sono aumentati a 3,7 milioni di dollari, con un incremento del 856% rispetto al trimestre precedente e del 16,8% su base annua. L'azienda ha completato il suo primo progetto per il Distretto Scolastico della Contea di Clark, garantendo un contratto per la rilevazione di armi del valore di 5 milioni di dollari con la possibilità di nove estensioni di un anno. Remark AI ha presentato soluzioni all'Expo Smart City di New York e ha completato progetti di prova per un sistema ferroviario europeo e un Centro per Migranti. Nonostante la crescita, l'azienda ha registrato una perdita netta di 5,3 milioni di dollari. Remark ha risolto questioni debitorie con Mudrick Capital Management scambiando note non convertibili per obbligazioni convertibili.

Remark Holdings (OTCQX: MARK) reportó los resultados financieros del segundo trimestre de 2024, mostrando un crecimiento significativo. Los ingresos aumentaron a 3,7 millones de dólares, un 856% más en comparación con el trimestre anterior y un 16,8% interanual. La compañía completó su primer proyecto para el Distrito Escolar del Condado de Clark, asegurando un contrato de detección de armas por 5 millones de dólares con la posibilidad de nueve extensiones anuales. Remark AI presentó soluciones en la Expo Smart City de Nueva York y completó pruebas de concepto para un sistema ferroviario europeo y un Centro para Migrantes. A pesar del crecimiento, la empresa reportó una pérdida neta de 5,3 millones de dólares. Remark resolvió problemas de deuda con Mudrick Capital Management al intercambiar notas no convertibles por bonos convertibles.

Remark Holdings (OTCQX: MARK)는 2024년 2분기 재무 결과를 발표하며 상당한 성장을 보여주었습니다. 수익은 370만 달러로 증가했으며, 이는 전분기 대비 856% 증가하고 전년 대비 16.8% 증가한 수치입니다. 이 회사는 Clark County School District를 위한 첫 프로젝트를 완료했으며, 500만 달러 규모의 무기 탐지 계약을 체결하여 9회의 1년 연장 가능성을 확보했습니다. Remark AI는 NYC 스마트 시티 엑스포에서 솔루션을 선보였고 유럽의 철도 시스템 및 이민자 센터에 대한 개념 증명을 완료했습니다. 성장에도 불구하고 이 회사는 530만 달러의 순손실을 기록했습니다. Remark는 Mudrick Capital Management와의 채무 문제를 비가역적 노트를 전환사채로 교환하여 해결했습니다.

Remark Holdings (OTCQX: MARK) a annoncé les résultats financiers du deuxième trimestre de 2024, montrant une croissance significative. Les revenus ont augmenté à 3,7 millions de dollars, soit une hausse de 856 % par rapport au trimestre précédent et de 16,8 % par rapport à l'année précédente. L'entreprise a terminé son premier projet pour le District Scolaire du Comté de Clark, garantissant un contrat de détection d'armes d'une valeur de 5 millions de dollars, avec un potentiel de neuf prolongations d'un an. Remark AI a présenté des solutions lors de l'Expo Smart City de New York et a complété des POC pour un système ferroviaire européen et un Centre pour Migrants. Malgré cette croissance, l'entreprise a enregistré une perte nette de 5,3 millions de dollars. Remark a résolu des problèmes de dette avec Mudrick Capital Management en échangeant des obligations non convertibles contre des obligations convertibles.

Remark Holdings (OTCQX: MARK) hat die finanziellen Ergebnisse des zweiten Quartals 2024 veröffentlicht und ein erhebliches Wachstum gezeigt. Der Umsatz stieg auf 3,7 Millionen Dollar, was einem Anstieg von 856 % im Vergleich zum Vorquartal und 16,8 % im Jahresvergleich entspricht. Das Unternehmen hat sein erstes Projekt für den Clark County School District abgeschlossen und einen Waffenerschwernisvertrag im Wert von 5 Millionen Dollar gesichert, mit der Möglichkeit von neun einjährigen Verlängerungen. Remark AI stellte Lösungen auf der NYC Smart City Expo vor und schloss PoCs für ein europäisches Eisenbahnsystem und ein Migrantenzentrum ab. Trotz des Wachstums berichtete das Unternehmen von einem Nettoverlust von 5,3 Millionen Dollar. Remark hat Schuldenprobleme mit Mudrick Capital Management gelöst, indem nicht wandelbare Anleihen gegen wandelbare Anleihen eingetauscht wurden.

Positive
  • Revenue increased by 856% sequentially and 16.8% year-over-year to $3.7 million
  • Secured a $5 million weapons detection contract with Clark County School District, with potential for nine one-year extensions
  • Completed successful POCs for a large European railway system and a Migrant Center in a major Sanctuary City
  • Operating loss decreased by 18.8% to $3.2 million compared to Q2 2023
  • Resolved outstanding debt issues with Mudrick Capital Management
Negative
  • Net loss of $5.3 million, or $0.12 per basic and diluted share
  • Cash balance decreased to $0.4 million from $1.1 million at the beginning of the period
  • Net cash used in operating activities increased by 17.0% to $6.1 million for the six months ended June 30, 2024

Total Revenue for Q2 2024 Increased Sequentially by $3.3 Million, an 856% improvement over Q1 2024, and 16.8% Year over Year versus Q2 2023 as Revenue from North America  Scaled Rapidly

LAS VEGAS, Aug. 19, 2024 /PRNewswire/ -- Remark Holdings, Inc. (OTCQX: MARK), a leading provider of artificial intelligence solutions, today announced its financial results for its second quarter fiscal 2024 ended June 30, 2024. For complete details of the consolidated financial statements and accompanying management's discussion and analysis, please see Remark's filings with the SEC (www.sec.gov).

Management Commentary
"We are excited to have completed our first project for the Clark County School District in Nevada,  the fifth largest school district in the U.S., which has opened the door to additional opportunities, not only with Clark County but with other educational institutions, law enforcement agencies and other government agencies throughout the U.S.," said Kai-Shing Tao, Chairman and Chief Executive Officer of Remark Holdings. "We continue to work diligently to convert those opportunities to revenue by delivering what we believe are world-class computer vision solutions and customer service that provides large cost savings and improved security processes for our target markets," concluded Mr. Tao.

Second Quarter 2024 Business Highlights 

  • Remark AI announced the Clark County School District Board of Trustees, which represents the fifth largest school district in the US including the city of Las Vegas, unanimously approved and awarded a one-year, $5 million weapons detection contract to Remark Holdings and two others. This win showcases our ability to scale and work closely with the largest school districts of comparable size in providing dependable AI-powered safety solutions. The contract includes nine one-year extension options, valued at $5 million annually.
  • Remark AI showcased its Fire and Smoke, Smart City, and Smart Agent solutions at the NYC Smart City Expo (May 22-23) in conjunction with Oracle and NVIDIA. The success and uniqueness of our AI Products has led to additional POCs to help the top 100 US cities turn into a modern 21st century smart city.
  • Remark AI completed its migration to the Microsoft Azure Platform, preparing Remark's Smart Safety Platform (SSP) to be Marketplace ready, allowing Microsoft's global salesforce to begin selling Remark's SSP across multiple industry verticals and through established systems integrators.
  • Completed POC at the headquarters train station for a large European railway system with over 600 stations, deploying our AI-powered passenger counting, fare evasion, fire and smoke detection, and unattended baggage detection analytics. The success of this POC has led to current contract negotiations to close a deal in the second half of 2024.
  • Completed successful POC for Migrant Center in one of the largest Sanctuary Cities, where we deployed our AI powered facial recognition, fight warnings, fire and smoke detection, as well as weapons detection analytics. The success of this POC has led to preparations to deploy our technology across multiple city agencies as we negotiate to close a contract for the second half of 2024.

Second Quarter 2024 Financial Results 

  • Revenue for the second quarter of 2024 totaled $3.7 million, reflecting a 16.8% increase from $3.2 million during the same quarter in 2023.
    • Remark recognized $3.7 million of revenue from a project for a large school district in the U.S.
  • The company's operating loss decreased by 18.8% to $3.2 million in the 2024 second quarter compared to $4.0 million during the same period of 2023.
    • During the three months ended June 30, 2024, payroll-related expenses comprising Technology and development expenses decreased by $0.2 million due to staff reductions in China.
    • During the three months ended June 30, 2023, Remark recorded an impairment of approximately $0.4 million related to certain prepaid expense amounts that were deemed unrecoverable. No such impairments were recorded during the three months ended June 30, 2024.
  • Net loss totaled $5.3 million, or $0.12 per basic and diluted share, for the 2024 second quarter, compared to a net loss of $5.9 million, or $0.42 per basic and diluted share, in the same quarter of 2023.
  • On June 30, 2024, the company's cash balance totaled $0.4 million, compared to a cash balance of $0.1 million at the beginning of the period. Net cash used in operating activities was $6.1 million for the six months ended June 30, 2024, a 17.0% increase compared to the $5.2 million Remark used in operating activities during the same period in 2023.
  • In August 2024, the company resolved all outstanding events of default regarding their debt agreement with Mudrick Capital Management by entering into an agreement with Mudrick to exchange the existing non-convertible notes for convertible debentures.

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.
Date: Monday, August 19, 2024
Time: 4:30 p.m. Eastern time (1:30 p.m. Pacific time)
Toll-Free Number: 844.826.3033
International Number: 412.317.5185
Conference ID: 10191801
Online Webcast: https://viavid.webcasts.com/starthere.jsp?ei=1684192&tp_key=c15745df1b

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 September 2, 2024.
Toll-Free Replay Number: 844.512.2921
International Replay Number: 412.317.6671
Replay ID: 10191801

Remark Holdings, Inc. (PRNewsFoto/Remark Media, Inc.)

About Remark Holdings, Inc.
Remark Holdings, Inc. (OTCQX: MARK) a member of the Oracle Partner Network, is a U.S.-based company that developed and sells the AI-powered analytics platform that brings valuable insights to the video feeds provided by current cameras and computer vision solutions through its integrated suite of AI tools that help organizations understand their customer behavior and demographics while providing real-time alerts to predetermined inspection and security parameters. Remark's international team of sector-experienced professionals has created award-winning GDPR-compliant and CCPA-compliant video analytics solutions that service the government agencies, hospitality, public safety, retail, and transportation sectors. The company's headquarters are in Las Vegas, Nevada, USA, with operational offices in New York and international offices in London, England. For more information, please visit our home page at www.remarkholdings.com.

Forward-Looking Statements
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," "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 with respect to future events, are based on assumptions, and are subject to risks and uncertainties. Given such uncertainties, you should not place undue reliance 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.

Company Contacts
Fay Tian
Vice President of Investor Relations
F.Tian@remarkholdings.com
(+1) 626-623-2000
(+65) 8715-8007

REMARK HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(dollars in thousands, except share and per share amounts)



June 30, 2024


December 31, 2023


(Unaudited)



Assets




Cash

$                        438


$                        145

Trade accounts receivable, net

4,361


1,287

Inventory, net

646


750

Deferred cost of revenue, current


6,644

Prepaid expense and other current assets

492


614

Total current assets

5,937


9,440

Deferred cost of revenue, long-term

6,290


Property and equipment, net

634


189

Operating lease assets

372


517

Other long-term assets

71


90

Total assets

$                  13,304


$                  10,236

Liabilities




Accounts payable

$                  13,023


$                    9,348

Advances from related parties

1,036


1,595

Obligations to issue common stock

12,548


10,033

Accrued expense and other current liabilities (including $1,356 and $495 of delinquent payroll taxes as of June 30,
2024 and December 31, 2023, respectively)

13,203


11,531

Contract liability

418


570

Notes payable (including a past due amount of $16,307 as of each of  June 30, 2024, and December 31, 2023)

16,496


16,463

Funds received in advance of potential financing

2,750


Total current liabilities

59,474


49,540

Operating lease liabilities, long-term

179


286

Total liabilities

59,653


49,826





Commitments and contingencies








Stockholders' 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; 49,872,060 and 22,038,855 shares issued and
outstanding at June 30, 2024 and December 31, 2023, respectively

50


22

Additional paid-in-capital

391,538


379,244

Accumulated other comprehensive loss

(1,217)


(1,186)

Accumulated deficit

(436,720)


(417,670)

Total stockholders' deficit

(46,349)


(39,590)

Total liabilities and stockholders' deficit

$                  13,304


$                  10,236

 

REMARK HOLDINGS, INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

(dollars in thousands, except per share amounts)



Three Months Ended June 30,


Six Months Ended June 30,


2024


2023


2024


2023

Revenue

$                    3,699


$                    3,167


$                    4,086


$                    3,993

Cost and expense








Cost of revenue (excluding depreciation and amortization)

2,925


2,511


3,275


2,966

Sales and marketing

269


387


569


753

Technology and development

366


567


712


736

General and administrative

3,294


3,244


6,317


6,077

Depreciation and amortization

58


25


122


71

Impairments


392



392

Total cost and expense

6,912


7,126


10,995


10,995

Operating loss

(3,213)


(3,959)


(6,909)


(7,002)

Other expense








Interest expense

(961)


(858)


(1,904)


(2,402)

Finance cost related to obligations to issue common stock

(925)


(1,050)


(10,072)


(4,626)

Other loss, net

(160)


(7)


(165)


(6)

Total other expense, net

(2,046)


(1,915)


(12,141)


(7,034)

Net loss

$                  (5,259)


$                  (5,874)


$                (19,050)


$                (14,036)

Other comprehensive income








Foreign currency translation adjustments

46


(227)


(31)


(545)

Comprehensive loss

$                  (5,213)


$                  (6,101)


$                (19,081)


$                (14,581)









Weighted-average shares outstanding, basic and diluted

45,683,329


14,132,862


39,928,507


13,819,643









Net loss per share, basic and diluted

$                     (0.12)


$                     (0.42)


$                     (0.48)


$                     (1.02)









 

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SOURCE Remark Holdings, Inc.

FAQ

What was Remark Holdings' revenue for Q2 2024?

Remark Holdings' revenue for Q2 2024 was $3.7 million, representing an 856% increase from Q1 2024 and a 16.8% increase year-over-year.

What major contract did Remark Holdings (MARK) secure in Q2 2024?

Remark Holdings secured a one-year, $5 million weapons detection contract with the Clark County School District, with the potential for nine one-year extensions valued at $5 million annually.

How did Remark Holdings (MARK) perform financially in Q2 2024 compared to Q2 2023?

While revenue increased by 16.8%, Remark Holdings still reported a net loss of $5.3 million in Q2 2024, compared to a net loss of $5.9 million in Q2 2023. The operating loss decreased by 18.8% to $3.2 million.

What strategic partnerships or showcases did Remark AI participate in during Q2 2024?

Remark AI showcased its Fire and Smoke, Smart City, and Smart Agent solutions at the NYC Smart City Expo in May 2024, in conjunction with Oracle and NVIDIA.

REMARK HOLDINGS INC

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Software - Infrastructure
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United States of America
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