Minim Reports Fourth Quarter and Full Year 2022 Financial Results
Minim, Inc. (Nasdaq: MINM) reported its fourth quarter and full-year financial results for 2022, revealing a net revenue decline of 8.7% to $50.6 million compared to 2021. The gross margin dropped to 23.6% from 34.1% in 2021, while the net loss ballooned to ($15.5) million from ($2.2) million in the prior year. For Q4 2022, revenue was $10.6 million, down 23.2% from Q3. The company has initiated a 20% cost reduction plan and successfully reduced inventory and accounts payable. Looking ahead, Minim aims to launch its new Support+ subscription service to enhance profitability.
- Executed a 20% cost reduction plan to improve profitability.
- Expanded e-commerce presence with new listings on HomeDepot.com and OfficeDepot.com.
- Significant reductions in inventories (25% down) and accounts payable (77.2% down).
- Full-year revenue fell 8.7% to $50.6 million.
- Net loss for 2022 reached ($15.5) million, significantly higher than ($2.2) million in 2021.
- Q4 revenue declined 23.2% from Q3, leading to a net loss of ($4.5) million.
MANCHESTER, NH, March 29, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire – Minim, Inc. (Nasdaq: MINM), the creator of innovative internet access products under the globally-recognized Motorola brand, today reported fourth quarter and full year financial results for the period ended December 31, 2022.
Full Year 2022 Financial Highlights:
● Net revenue of
● Gross margin of
● Net loss of (
● Improved working capital through a
Recent Business Highlights
● Executed a
● Expanded e-commerce offering on OfficeDepot.com with launch of eight Motorola home networking products expanding the WiFi 6 Motorola Mesh portfolio to one of the largest e-commerce platforms in the office supply segment
● Expanded e-commerce footprint with the launch of Motorola home network devices on HomeDepot.com bringing Motorola-branded networking solutions directly to home improvement shoppers across North America
● Launched Support+, a premium support subscription, available to app users beginning in June 2023
Q4 2022 Financial Highlights:
● Net revenue of
● Gross margin of
● Net loss of (
● Non-GAAP Adjusted EBITDA of (
● Improved working capital through a
Patel continued, “2022 revenues were down
Patel concluded, “Looking ahead to 2023, our working capital has improved, our cost structure is leaner and we are preparing to launch our high-value Support+ subscription offering, which we believe could lead to higher gross margins as the offering scales.”
Full Year 2022 Financial Summary
Net revenue in 2022 was
Net loss in 2022 was (
Non-GAAP Adjusted EBITDA in 2022 was (
Fourth Quarter 2022 Financial Summary
Net revenue in the fourth quarter of 2022 was
Net loss in the fourth quarter of 2022 was (
Non-GAAP Adjusted EBITDA in the fourth quarter of 2022 was (
At the end of the fourth quarter of 2022, the company had
Inventory at the end of Q4 2022 was
As December 31, 2022, the company had
Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with generally accepted accounting principles in the United States (“GAAP”), this news release contains the non-GAAP financial measures Adjusted EBITDA, which we define as GAAP net income (loss) plus depreciation of fixed assets and amortization of intangible assets, income tax provision, material one-time expenses (income), and stock-based compensation expenses.
We use these non-GAAP financial measures in internal forecasts and models when establishing internal operating budgets, supplementing the financial results and forecasts reported to our Board of Directors, and evaluating short-term and long-term operating trends in our operations. We believe that these measures provide an enhanced understanding of our underlying operational measures to manage the business, to evaluate performance compared to prior periods and the marketplace, and to establish operational goals.
Minim believes that these non-GAAP financial measures are also useful to investors and analysts in comparing its performance across reporting periods on a consistent basis.
These non-GAAP financial measures should not be considered in isolation or as a substitute for financial information provided in accordance with GAAP. These financial measures may not be computed in the same manner as similarly titled measures used by other companies. We expect to continue to incur expenses similar to the financial adjustments described above and investors should not infer from our presentation of these non-GAAP financial measures that these costs are unusual, infrequent or non-recurring.
Conference Call Details Date/Time:
Minim will host a conference call today, March 29, 2023, at 8:30 a.m. EST to discuss these results. To participate, please access the live webcast at https://ir.minim.co/, or by dialing: +1(844) 826-3033 and referencing the conference ID: 9331584. International dial-in number is +1(412) 317-5185.
A recording of the call will be made available following the conference call through the investor information section of the company’s website.
About Minim
Minim, Inc. (NASDAQ: MINM) was born in 1977 as a networking company and now delivers intelligent software to protect and improve the WiFi connections we depend on to work, learn, and live. Minim’s cloud platform powers intuitive apps and a variety of routers, helping customers take control of their connected experience and privacy. Headquartered in Manchester, N.H., Minim holds the exclusive global license to design and manufacture consumer networking products under the Motorola brand. To learn more, visit https://www.minim.com.
MOTOROLA and the Stylized M Logo are trademarks or registered trademarks of Motorola Trademark Holdings, LLC and are used under license.
About Motorola Strategic Brand Partnerships
For over 90 years, the Motorola brand has been known around the world for high quality, innovative and trusted products. Motorola’s Strategic Brand Partnership program seeks to leverage the power of this iconic brand by teaming with dynamic companies who offer unique, high-quality products that enrich consumers’ lives. Strategic brand partners work closely with Motorola engineers while developing and manufacturing their products, ensuring that their products meet the exacting safety, quality, and reliability standards that consumers have come to expect from Motorola. To learn more about Motorola strategic brand partnerships, follow us @ShopMotorola.
Forward-Looking Statements
This press release contains “forward-looking statements”, within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to Minim’s plans, expectations, and intentions. Actual results may be materially different from expectations as a result of known and unknown risks, including: risks associated with Minim’s potential inability to realize intended benefits of the acquisition by merger of Zoom Connectivity, Inc.; the potential increase in tariffs on the company’s imports; the potential difficulties and supply interruptions from moving the manufacturing the company’s products in Vietnam; risks relating to global semiconductor shortages; potential changes in NAFTA; the potential need for additional funding which Minim may be unable to obtain; declining demand for certain of Minim’s products; delays, unanticipated costs, interruptions or other uncertainties associated with Minim’s production and shipping; Minim’s reliance on several key outsourcing partners; uncertainty of key customers’ plans and orders; risks relating to product certifications; Minim’s dependence on key employees; uncertainty of new product development, including certification and overall project delays, budget overruns; the risk that newly introduced products may contain undetected errors or defects or otherwise not perform as anticipated; costs and senior management distractions due to patent related matters; risks from a material weakness in our internal control over financial reporting; the impact of the COVID-19 pandemic; risks associated with macroeconomic factors including supply chain issues, inflation, tightening of money markets and labor shortages; and other risks set forth in Minim’s filings with the Securities and Exchange Commission. Minim cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. Minim expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any such statements to reflect any change in Minim’s expectations or any change in events, conditions or circumstance on which any such statement is based.
Investor Relations Contact:
James Carbonara
james@haydenir.com
(646) 755-7412
| Minim, Inc. | ||||||||||
| Consolidated Balance Sheets | ||||||||||
| (in thousands) | ||||||||||
| ASSETS | December 31, | December 31, | ||||||||
| 2022 | 2021 | |||||||||
| Current assets | ||||||||||
| Cash and cash equivalents | $ | 530 | $ | 12,570 | ||||||
| Restricted cash | 500 | 500 | ||||||||
| Accounts receivable, net | 2,759 | 4,881 | ||||||||
| Inventories, net | 25,415 | 33,891 | ||||||||
| Prepaid expenses and other current assets | 361 | 588 | ||||||||
| Total current assets | 29,565 | 52,430 | ||||||||
| Equipment, net | 637 | 763 | ||||||||
| Operating lease right-of-use assets, net | 173 | 242 | ||||||||
| Goodwill | - | 59 | ||||||||
| Intangible assets, net | 73 | 262 | ||||||||
| Other assets | 512 | 545 | ||||||||
| Total assets | $ | 30,960 | $ | 54,301 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||
| Current liabilities | ||||||||||
| Bank credit line | $ | 4,759 | $ | 5,065 | ||||||
| Accounts payable | 2,837 | 12,458 | ||||||||
| Current maturities of government loan | 1,000 | 34 | ||||||||
| Current maturities of operating lease liabilities | 151 | 143 | ||||||||
| Accrued expenses | 4,441 | 5,280 | ||||||||
| Deferred revenue, current | 634 | 292 | ||||||||
| Total current liabilities | $ | 13,822 | $ | 23,272 | ||||||
| Operating lease liabilities, less current maturities | 22 | 99 | ||||||||
| Deferred revenue, noncurrent | 772 | 443 | ||||||||
| Total liabilities | $ | 14,616 | $ | 23,814 | ||||||
| Stockholders' equity | ||||||||||
| Common stock: Authorized: 60,000,000 shares at | ||||||||||
| value; issued and outstanding: 46,949,240 shares at December 31, | ||||||||||
| 2022 and 45,885,043 shares at December 31, 2021, respectively | 469 | 459 | ||||||||
| Additional paid in capital | 90,710 | 89,313 | ||||||||
| Accumulated deficit | (74,835 | ) | (59,285 | ) | ||||||
| Total stockholders' equity | 16,344 | 30,487 | ||||||||
| Total liabilities and stockholders' equity | $ | 30,960 | $ | 54,301 | ||||||
| MINIM INC. | ||||||||||||||||||
| Consolidated Statement of Operations | ||||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||||
| Three Months Ended December 31, (unaudited) | Twelve Months Ended December 31, | |||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||||
| Net sales | $ | 10,626 | $ | 10,476 | $ | 50,622 | $ | 55,423 | ||||||||||
| Cost of goods sold | 8,513 | 5,633 | 38,696 | 36,505 | ||||||||||||||
| Gross profit | 2,113 | 4,843 | 11,926 | 18,918 | ||||||||||||||
| Operating expenses: | ||||||||||||||||||
| Selling and marketing | 3,736 | 3,865 | 15,023 | 13,748 | ||||||||||||||
| General and administrative | 1,132 | 1,114 | 6,124 | 4,890 | ||||||||||||||
| Research and development | 1,598 | 1,601 | 5,825 | 6,164 | ||||||||||||||
| Total operating expenses | 6,466 | 6,580 | 26,972 | 24,802 | ||||||||||||||
| Sale of trademark, net | - | - | - | (3,956 | ) | |||||||||||||
| Operating loss | (4,353 | ) | (1,737 | ) | (15,046 | ) | (1,928 | ) | ||||||||||
| Other income (expense): | ||||||||||||||||||
| Interest expense, net | (130 | ) | (39 | ) | (394 | ) | (226 | ) | ||||||||||
| Other, net | - | - | 2 | 20 | ||||||||||||||
| Total other income (expense) | (130 | ) | (39 | ) | (392 | ) | (206 | ) | ||||||||||
| Loss before income taxes | (4,483 | ) | (1,776 | ) | (15,438 | ) | (2,134 | ) | ||||||||||
| Income taxes | 39 | 23 | 112 | 64 | ||||||||||||||
| Net loss | $ | (4,522 | ) | $ | (1,799 | ) | $ | (15,550 | ) | $ | (2,198 | ) | ||||||
| Net loss per share: | ||||||||||||||||||
| Basic and diluted | $ | (0.10 | ) | $ | (0.04 | ) | $ | (0.34 | ) | $ | (0.06 | ) | ||||||
| Weighted average common and common equivalent shares: | ||||||||||||||||||
| Basic and diluted | 46,700 | 45,862 | 46,399 | 39,761 | ||||||||||||||
| MINIM, INC. | |||||||||||||||||
| Reconciliation of GAAP Measures to Non-GAAP Adjusted Measures | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| (in thousands) | |||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||||
| Net loss, as reported | $ | (4,522 | ) | $ | (1,799 | ) | $ | (15,550 | ) | $ | (2,198 | ) | |||||
| Add: Interest income (expense), net, as reported | 130 | 39 | 394 | 226 | |||||||||||||
| Add: Income tax, as reported | 39 | 23 | 112 | 64 | |||||||||||||
| Add: Depreciation and Amortization | 227 | 208 | 868 | 957 | |||||||||||||
| EBITDA | (4,126 | ) | (1,529 | ) | (14,176 | ) | (951 | ) | |||||||||
| Adjustments to EBITDA: | |||||||||||||||||
| Add: Stock-based compensation expense | 199 | 223 | 1,171 | 997 | |||||||||||||
| Add: Executive severance expense | - | - | 243 | - | |||||||||||||
| Add: Sale of trademark, net | - | - | - | (3,956 | ) | ||||||||||||
| Total adjustments | 199 | 223 | 1,414 | (2,959 | ) | ||||||||||||
| Non-GAAP-based Adjusted EBITDA | $ | (3,927 | ) | $ | (1,306 | ) | $ | (12,762 | ) | $ | (3,910 | ) | |||||
FAQ
What were Minim's fourth quarter 2022 financial results?
How did Minim's full-year 2022 revenue compare to 2021?
What cost reduction strategies did Minim implement?
How did Minim's gross margin change in 2022?
What new products did Minim launch in 2023?
