SANTA CLARA, Calif., May 06, 2022 (Globe Newswire) — Borax Technologies, Inc. (Nasdaq: BRQS, “Borx”, or “The Company”), a global provider of 5G wireless solutions, Internet of Things (IoT) solutions and innovative clean energy solutions with global operations in the US, India and China, on May 2, 2022 Filed its annual report on Form 20-F for the year ended December 31, 2021 with the SEC. Despite stringent supply chain disruptions and COVID challenges around the world, revenue for the year 2021 was $29.56 million which was a 10.5% improvement from $26.75 million in 2020.
As reported in the annual report under a US GAAP basis, continuing operations resulted in a net loss of $56.60 million. Significant amounts of expenses were non-cash charges of convertible note discounts from financial transactions of the company and debt settlement fees involved in full payment of loans from Partners for Growth. In addition to such exceptional non-operating and non-cash expenses, the Company’s operations achieved positive adjusted EBITDA during 2021.
The following table presents a reconciliation of non-GAAP financial measures of EBITDA and adjusted EBITDA for the results of our continuing operations in the year 2021.
|Year ended 31st December, 2021|
|(US dollars in thousands)|
|Net Income (Loss) from Continuing Operations||(56,602)|
|Depreciation & Amortization||2,664|
|Other Income (Non-Operating)||(70)|
|foreign exchange loss||2,661|
|Historical inventory write-off (non-cash)||1,268|
|Write-off and provision of doubtful assets (non-cash)||1,757|
|Stock-Based Compensation (Non-cash)||17,533|
|Default Debt Settlement Fee (Non-cash)||17,199|
|Lump sum consulting expenses for financial activities||2,100|
|Contingent loss on disposal of subsidiary (non-cash)||303|
|Change in fair value for acquisition (non-cash)||111|
*From 20-F: Interest Expense: During the year ended December 31, 2021, interest expense of $12 million consisted primarily of interest expense related to our convertible note discount of $9.9 million. The debt discount along with the associated issuance cost is amortized as an interest expense from the date of issue to the earliest maturity date, using the effective interest method. Interest expense was settled using company stock.
EBITDA and adjusted EBITDA are supplemental non-GAAP financial measures, except for certain items, to facilitate management. review Due to the comparison of our core operating results from time to time because such items are not related to our ongoing core operating results as observed 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, depreciation and amortization, and adjusted EBITDA as EBITDA minus other non-operating expenses.
We believe that EBITDA and adjusted EBITDA are useful because they allow us to more effectively evaluate our operating performance and compare the results of our operations over a period of time, regardless of our financing methods or capital structure. Huh. We exclude the items listed above in arriving at EBITDA and adjusted EBITDA because these amounts can vary substantially from company to company within our industry, depending on accounting methods and book values of assets, capital structures and the manner in which assets are used. was achieved, based on that. EBITDA and adjusted EBITDA should not be construed as a substitute for or more meaningful than net income 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 components in understanding and assessing a company’s financial performance, such as the company’s cost of capital and tax structure, as well as the historical cost of depreciable assets, any of which are EBITDA and is not an adjusted component. EBITDA. In prior periods, the company has excluded other items that it no longer excludes for the purposes of its non-GAAP financial measures. Our calculations of EBITDA and adjusted EBITDA may not be comparable with similarly titled measures of other companies.
About Borqs Technologies, Inc.
Borqs Technologies is a global leader in software and products for IoT, providing customizable, differentiated and scalable Android-based smart connected device and cloud service solutions. Borqs has achieved leadership and customer recognition as an innovative end-to-end IoT solutions provider, leveraging its strategic chipset partner relationships as well as its extensive software and IP portfolio. Borqs’ unique features include its Android and Android Wear licenses, which enabled the company to develop a software IP library covering chipset software, Android enhancements, domain specific usage, and system performance optimization, both in large and in small quantities. Suitable for customized products. The company is also currently in the development of 5G products for phones and hotspots.
Borqs recently acquired controlling interests in a solar energy storage system company in the US
Forward-looking Statements, Non-GAAP Presentations and Additional Information
This press release may contain “forward-looking statements” that involve risks and uncertainties that could cause actual results to differ materially from those expected. “forecast”, “expect”, “believe”, “estimate”, “intent”, “estimate”, “predict”, “wants”, “may”, “might”, “plan”, “possible” Words such as, “should”, “estimate” and variations and similar words and expressions are intended to identify such forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. This press release also includes non-GAAP financial presentations that are not an official way of describing financial data as required by the SEC’s rules and regulations. Such forward-looking statements and non-GAAP presentations are based on currently available information and reflect the current beliefs of our management. A number of factors could cause actual events or results to differ materially from those discussed in forward-looking statements and the non-GAAP presentation may not describe the financial conditions in a realistic manner, including the possibility that business activities Positive financial results from may not even be reached or may not occur at all, and the COVID-19 pandemic has a negative impact on the Company’s supply chain, revenue and overall results of operations, so the reader is advised that the Company See the Risk Factors section of the filing. The Securities and Exchange Commission requires additional information to identify significant factors that could cause actual results to differ materially from those anticipated in the forward-looking statements. Except as expressly required by applicable securities law, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Vice President of Corporate Finance
Borax Technologies, Inc.
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