ConnectM Files 10-Q, Announces Third Quarter 2024 Financial Results
16 Dicembre 2024 - 3:28PM
ConnectM Technology Solutions, Inc. (Nasdaq: CNTM) (“ConnectM” or
the “Company”), a technology company focused on the electrification
economy, has filed its 10-Q with the Securities and Exchange
Commission (the “SEC”) and released its financial results for the
quarter ended September 30, 2024.
Third Quarter and First Nine Months 2024
Financial Results
- Revenue for the
third quarter of 2024 increased to $6.1 million compared to $4.4
million in the same year ago period. Revenue in the first nine
months of 2024 increased 12% to $17.3 million, when compared to
$15.5 million in the same prior year period.
- Cost of revenue
for the third quarter of 2024 increased to $4.2 million compared to
$3.7 million in the same year ago period. Cost of revenue in the
first nine months of 2024 was $11.0 million, in line with $11.0
million in the same prior year period.
- Net loss
attributable to shareholders for the third quarter of 2024 was
$12.2 million compared to $2.6 million in the comparable prior year
period. For the first nine months of 2024, net loss attributable to
shareholders increased to $17.0 million, as compared to a net loss
of $5.0 million in the comparable prior year period.
2024 Operational Updates
- Successfully
completed De-SPAC and began trading on the Nasdaq Global Market in
July 2024.
- Launched
AI-powered heat pump integrated with ConnectM's Energy Intelligence
Network powered by the Company’s proprietary data model, for
residential and light commercial use, optimized for performance,
energy efficiency and reducing customer costs.
- Entered into
agreement to acquire a controlling interest in DeliveryCircle, a
nationwide technology enabled final mile delivery company which
connects businesses looking for a last-mile delivery solution. This
strategic acquisition expands ConnectM’s Transportation &
Logistics segment in the United States.
- Eliminated $13.7
million of debt with debt-to-equity swap to deleverage the balance
sheet.
Subsequent Events
- Entered into
Managed Services Agreement (“MSA”) with Devlin Energy, expanding
ConnectM’s business portfolio mix and revenue generation with an
array of residential and commercial distributed energy
capabilities.
- Completed
acquisition of Green Energy Gains Inc., a Massachusetts Home
Performance Contractor of energy and weatherization assessments,
and instrumental in the distribution and installation of ConnectM’s
electric heat pumps, augmenting the Company’s Building
Electrification segment.
- ConnectM’s
AI-powered heat pump received AHRI’s (Air-Conditioning Heating and
Refrigeration Institute) Cold Climate Certification, awarded to
products that demonstrate superior heating efficiency.
Outlook
For the fourth quarter and full year 2024, the
Company expects revenues of approximately $7 million and $24
million respectively.
About ConnectM Technology Solutions, Inc.
ConnectM is a technology company focused on
advancing the electrification economy by integrating electrified
energy assets with its AI-powered technology solutions platform.
The Company provides residential and light commercial buildings and
all-electric original equipment manufacturers with a proprietary
Energy Intelligence Network platform to accelerate the transition
to solar and all-electric heating, cooling, and transportation.
Leveraging technology, data, artificial intelligence, contemporary
design, and behavioral economics, ConnectM aims to make
electrification more user-friendly, affordable, precise, and
socially impactful. As a vertically integrated company with wholly
owned service networks and a comprehensive technology stack,
ConnectM empowers customers to reduce their reliance on fossil
fuels, lower overall energy costs, and minimize their carbon
footprint.
For more information, please visit:
https://www.connectm.com/
Cautionary Note Regarding
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of Section 27A of the Securities Act
and Section 21E of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”). We have based these forward-looking
statements on our current expectations and projections about future
events. All statements, other than statements of present or
historical fact included in this press release, regarding our
future financial performance and our strategy, expansion plans,
future operations, future operating results, estimated revenues,
losses, projected costs, prospects, plans and objectives of
management are forward-looking statements. In some cases, you can
identify forward-looking statements by terminology such as “may,”
“should,” “could,” “would,” “expect,” “plan,” “anticipate,”
“intend,” “believe,” “estimate,” “continue,” “project” or the
negative of such terms or other similar expressions. These
forward-looking statements are subject to known and unknown risks,
uncertainties and assumptions about us that may cause our actual
results, levels of activity, performance or achievements to be
materially different from any future results, levels of activity,
performance or achievements expressed or implied by such
forward-looking statements. Except as otherwise required by
applicable law, we disclaim any duty to update any forward-looking
statements, all of which are expressly qualified by the statements
in this section, to reflect events or circumstances after the date
of this press release. We caution you that the forward-looking
statements contained herein are subject to numerous risks and
uncertainties, most of which are difficult to predict and many of
which are beyond our control.
In addition, we caution you that the
forward-looking statements regarding the Company contained in this
press release are subject to the risks and uncertainties described
in the “Cautionary Note Regarding Forward-Looking Statements”
section of the Current Report on Form 8-K filed with the Securities
and Exchange Commission on July 18, 2024. Such filing identifies
and addresses other important risks and uncertainties that could
cause actual events and results to differ materially from those
contained in the forward-looking statements. Forward-looking
statements speak only as of the date they are made. Readers are
cautioned not to put undue reliance on forward-looking statements,
and ConnectM is under no obligation to update or revise these
forward-looking statements, whether as a result of new information,
future events, or otherwise.
Contact:MZ North America(203)
741-8811ConnectM@mzgroup.us
CONNECTM TECHNOLOGY SOLUTIONS, INC.
(SUCCESSOR TO MONTEREY CAPITAL ACQUISITION
CORPORATION) CONDENSED CONSOLIDATED BALANCE
SHEETSAS OF SEPTEMBER 30, 2024 (UNAUDITED) AND
DECEMBER 31, 2023 (AUDITED)(in thousands, except
share and per share amounts) |
|
|
|
September 30, |
|
December 31, |
|
|
2024 |
|
2023 |
Assets |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash |
|
$ |
1,882 |
|
|
$ |
1,160 |
|
Accounts receivable, net |
|
|
1,863 |
|
|
|
685 |
|
Contract asset |
|
|
— |
|
|
|
344 |
|
Convertible note receivable |
|
|
— |
|
|
|
445 |
|
Inventory |
|
|
320 |
|
|
|
277 |
|
Deferred offering costs |
|
|
— |
|
|
|
1,297 |
|
Due from Monterey Capital Acquisition Corporation |
|
|
— |
|
|
|
2,491 |
|
Forward purchase agreement |
|
|
2,196 |
|
|
|
— |
|
Prepaid expenses and other assets |
|
|
1,191 |
|
|
|
651 |
|
Total current assets |
|
|
7,452 |
|
|
|
7,350 |
|
Right-of-use asset - operating
lease |
|
|
199 |
|
|
|
284 |
|
Right-of-use asset - finance
lease |
|
|
167 |
|
|
|
252 |
|
Property, plant and equipment,
net |
|
|
996 |
|
|
|
1,138 |
|
Goodwill |
|
|
3,037 |
|
|
|
2,247 |
|
Intangible assets, net |
|
|
1,851 |
|
|
|
1,841 |
|
Investment recorded at
cost |
|
|
45 |
|
|
|
45 |
|
Total
Assets |
|
$ |
13,747 |
|
|
$ |
13,157 |
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Deficit |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable |
|
$ |
10,357 |
|
|
$ |
3,860 |
|
Accrued expenses |
|
|
4,631 |
|
|
|
1,718 |
|
Due to Libertas |
|
|
1,057 |
|
|
|
— |
|
Due to related party |
|
|
686 |
|
|
|
— |
|
Current portion of debt, related party |
|
|
85 |
|
|
|
85 |
|
Current portion of debt, net of debt discount |
|
|
15,966 |
|
|
|
11,935 |
|
Current portion of convertible debt, at fair value |
|
|
4,392 |
|
|
|
2,179 |
|
Current portion of operating lease liability |
|
|
114 |
|
|
|
115 |
|
Current portion of finance lease liability |
|
|
114 |
|
|
|
99 |
|
Current portion of contingent consideration |
|
|
199 |
|
|
|
— |
|
Contract liabilities |
|
|
662 |
|
|
|
1,121 |
|
Income taxes payable |
|
|
386 |
|
|
|
— |
|
Total current liabilities |
|
|
38,649 |
|
|
|
21,112 |
|
Non-current portion of
operating lease liability |
|
|
118 |
|
|
|
173 |
|
Non-current portion of debt,
related party |
|
|
99 |
|
|
|
— |
|
Non-current portion of finance
lease liability |
|
|
115 |
|
|
|
203 |
|
Noncurrent portion of debt,
net of debt discount |
|
|
1,417 |
|
|
|
1,150 |
|
Contingent consideration |
|
|
377 |
|
|
|
— |
|
Total
liabilities |
|
|
40,775 |
|
|
|
22,638 |
|
|
|
|
|
|
|
|
Commitments and
Contingencies (Note 9) |
|
|
|
|
|
|
Mezzanine
Equity |
|
|
|
|
|
|
Series Seed Convertible
Preferred Shares; 0 and 2,139,050 shares authorized, issued, and
outstanding as of September 30,2024 and December 31, 2023,
respectively |
|
|
— |
|
|
|
2,200 |
|
Series Seed-1 Convertible
Preferred Shares; 0 and 302,642 shares authorized, issued, and
outstanding as of September 30,2024 and December 31, 2023,
respectively |
|
|
— |
|
|
|
293 |
|
Series A-1 Convertible
Preferred Shares; 0 and 2,467,990 shares authorized, issued, and
outstanding as of September 30,2024 and December 31, 2023,
respectively |
|
|
— |
|
|
|
3,195 |
|
Series B-1 Convertible
Preferred Shares; 0 and 2,158,357 shares authorized, issued, and
outstanding as of September 30,2024 and December 31, 2023,
respectively |
|
|
— |
|
|
|
3,984 |
|
Series B-2 Convertible
Preferred Shares; 0 and 995,509 shares authorized, issued, and
outstanding as of September 30,2024 and December 31, 2023,
respectively |
|
|
— |
|
|
|
2,311 |
|
Total mezzanine
equity |
|
|
— |
|
|
|
11,983 |
|
|
|
|
|
|
|
|
Stockholders’
Deficit: |
|
|
|
|
|
|
Preferred stock Series A,
$0.001 par value, 10,000,000 and 1,000,000 shares authorized as of
September 30, 2024 and December 31, 2023, respectively, 0 shares
issued or outstanding as of September 30, 2024 and December 31,
2023, respectively |
|
|
— |
|
|
|
— |
|
Common stock, $0.0001 par
value, 100,000,000 shares authorized as of September 30, 2024 and
December 31, 2023, respectively, 21,124,057 and 5,291,381 issued
and outstanding as of September 30, 2024 and December 31, 2023,
respectively |
|
|
2 |
|
|
|
— |
|
Additional
paid-in-capital |
|
|
11,425 |
|
|
|
1,307 |
|
Accumulated deficit |
|
|
(39,910 |
) |
|
|
(22,860 |
) |
Accumulated other
comprehensive income |
|
|
144 |
|
|
|
115 |
|
Stockholders’ deficit |
|
|
(28,340 |
) |
|
|
(21,438 |
) |
Noncontrolling interests |
|
|
1,311 |
|
|
|
(26 |
) |
Total stockholders’
deficit |
|
|
(27,029 |
) |
|
|
(21,464 |
) |
Total liabilities,
mezzanine equity and stockholders’ deficit |
|
$ |
13,747 |
|
|
$ |
13,157 |
|
|
|
|
|
|
|
|
|
|
CONNECTM TECHNOLOGY SOLUTIONS,
INC.(SUCCESSOR TO MONTEREY CAPITAL ACQUISITION
CORPORATION)CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS FOR THE THREEAND
NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
(Unaudited)(in thousands, except share and per
share amounts) |
|
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Revenues |
|
$ |
6,074 |
|
|
$ |
4,384 |
|
|
$ |
17,299 |
|
|
$ |
15,484 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of revenues |
|
|
4,200 |
|
|
|
3,716 |
|
|
|
11,010 |
|
|
|
11,020 |
|
Selling, general and administrative expenses |
|
|
4,900 |
|
|
|
2,843 |
|
|
|
11,773 |
|
|
|
8,780 |
|
Loss on impairment of intangible assets |
|
|
— |
|
|
|
— |
|
|
|
406 |
|
|
|
— |
|
Loss from operations |
|
|
(3,026 |
) |
|
|
(2,175 |
) |
|
|
(5,890 |
) |
|
|
(4,316 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(667 |
) |
|
|
(472 |
) |
|
|
(1,820 |
) |
|
|
(902 |
) |
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
(592 |
) |
|
|
— |
|
Change in fair value of convertible notes |
|
|
(1,623 |
) |
|
|
182 |
|
|
|
(1,623 |
) |
|
|
182 |
|
Change in fair value of forward purchase agreement |
|
|
(8,575 |
) |
|
|
— |
|
|
|
(8,575 |
) |
|
|
— |
|
Gain on forward purchase agreement modification |
|
|
1,443 |
|
|
|
— |
|
|
|
1,443 |
|
|
|
— |
|
Other income (expense), net |
|
|
270 |
|
|
|
(149 |
) |
|
|
59 |
|
|
|
4 |
|
Total other income
(expense) |
|
|
(9,152 |
) |
|
|
(439 |
) |
|
|
(11,108 |
) |
|
|
(716 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
|
(12,178 |
) |
|
|
(2,614 |
) |
|
|
(16,998 |
) |
|
|
(5,032 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax benefit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net loss |
|
$ |
(12,178 |
) |
|
$ |
(2,614 |
) |
|
$ |
(16,998 |
) |
|
$ |
(5,032 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable
to noncontrolling interests |
|
|
60 |
|
|
|
(7 |
) |
|
|
52 |
|
|
|
(28 |
) |
Net loss attributable to
shareholders’ |
|
$ |
(12,238 |
) |
|
$ |
(2,607 |
) |
|
$ |
(17,050 |
) |
|
$ |
(5,004 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation
adjustments |
|
|
19 |
|
|
|
26 |
|
|
|
29 |
|
|
|
92 |
|
Comprehensive loss |
|
$ |
(12,159 |
) |
|
$ |
(2,588 |
) |
|
$ |
(16,969 |
) |
|
$ |
(4,940 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income (loss)
attributable to noncontrolling interest |
|
|
60 |
|
|
|
(7 |
) |
|
|
52 |
|
|
|
(28 |
) |
Comprehensive loss
attributable to common stockholders |
|
$ |
(12,219 |
) |
|
$ |
(2,581 |
) |
|
$ |
(17,021 |
) |
|
$ |
(4,912 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding of common stock |
|
|
20,171,922 |
|
|
|
21,124,057 |
|
|
|
15,643,799 |
|
|
|
21,124,057 |
|
Basic and diluted net loss per
share, common stock |
|
$ |
(0.61 |
) |
|
$ |
(0.12 |
) |
|
$ |
(1.09 |
) |
|
$ |
(0.24 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONNECTM TECHNOLOGY SOLUTIONS,
INC.(SUCCESSOR TO MONTEREY CAPITAL ACQUISITION
CORPORATION)CONDENSED CONSOLIDATED STATEMENTS OF
CASH FLOWS FOR THE NINE MONTHS ENDEDSEPTEMBER 30,
2024 AND 2023 (Unaudited)(in
thousands) |
|
|
|
For the Nine Months Ended
September 30, |
|
|
2024 |
|
2023 |
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
|
|
|
Net Loss |
|
$ |
(16,998 |
) |
|
$ |
(5,032 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
|
|
|
Depreciation expense |
|
|
188 |
|
|
|
201 |
|
Amortization of intangible assets |
|
|
319 |
|
|
|
377 |
|
Amortization of debt discount |
|
|
60 |
|
|
|
250 |
|
Stock-based compensation expense |
|
|
36 |
|
|
|
— |
|
ROU amortization on finance leases |
|
|
86 |
|
|
|
134 |
|
ROU amortization on operating leases |
|
|
85 |
|
|
|
135 |
|
Gain on disposal of property and equipment |
|
|
— |
|
|
|
(22 |
) |
Loss on impairment of intangible assets |
|
|
406 |
|
|
|
— |
|
Loss on extinguishment of debt |
|
|
592 |
|
|
|
— |
|
Unrealized loss (gain) on fair value measurement of debt |
|
|
1,623 |
|
|
|
(182 |
) |
Change in fair value of forward purchase agreement |
|
|
8,575 |
|
|
|
— |
|
Gain on modification of forward purchase agreement |
|
|
(1,443 |
) |
|
|
— |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
|
(559 |
) |
|
|
(52 |
) |
Contract asset |
|
|
344 |
|
|
|
— |
|
Inventory |
|
|
(42 |
) |
|
|
(178 |
) |
Prepaid expenses |
|
|
(26 |
) |
|
|
(68 |
) |
Accounts payable |
|
|
2,722 |
|
|
|
531 |
|
Accrued expenses |
|
|
1,296 |
|
|
|
386 |
|
Operating lease liabilities |
|
|
(56 |
) |
|
|
(133 |
) |
Contract liabilities |
|
|
(459 |
) |
|
|
130 |
|
Net cash used in operating activities |
|
|
(3,251 |
) |
|
|
(3,523 |
) |
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
|
|
Purchase of property and
equipment |
|
|
(59 |
) |
|
|
(49 |
) |
Proceeds from the sale of
property and equipment |
|
|
— |
|
|
|
57 |
|
Investment in cost method
investment |
|
|
— |
|
|
|
(45 |
) |
Issuance of convertible
note |
|
|
— |
|
|
|
(375 |
) |
Cash paid for noncontrolling
interest |
|
|
(60 |
) |
|
|
— |
|
Cash acquired in Delivery
Circle Acquisition |
|
|
699 |
|
|
|
— |
|
Cash paid for capitalized
software development costs |
|
|
(129 |
) |
|
|
(35 |
) |
Net cash provided by (used in) investing
activities |
|
|
451 |
|
|
|
(447 |
) |
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
|
|
Gross proceeds from the
business combination |
|
|
80,095 |
|
|
|
— |
|
Cash paid in connection with
forward purchase agreement |
|
|
(37,624 |
) |
|
|
— |
|
Proceeds from forward purchase
agreement |
|
|
766 |
|
|
|
— |
|
Proceeds from the issuance of
debt |
|
|
5,874 |
|
|
|
6,828 |
|
Proceeds from the issuance of
convertible notes |
|
|
740 |
|
|
|
900 |
|
Proceeds from related party
debt |
|
|
99 |
|
|
|
— |
|
Cash paid for debt issuance
costs |
|
|
(788 |
) |
|
|
(731 |
) |
Payments of deferred offering
costs |
|
|
(1,243 |
) |
|
|
(1,782 |
) |
Payments of debt |
|
|
(1,765 |
) |
|
|
— |
|
Advance to Monterey Capital
Acquisition Corporation |
|
|
(1,934 |
) |
|
|
— |
|
Advance from lender |
|
|
1,057 |
|
|
|
(1,840 |
) |
Payments on convertible
notes |
|
|
(50 |
) |
|
|
— |
|
Payments for redemptions of
preferred stock |
|
|
(41,653 |
) |
|
|
— |
|
Payment on finance leases |
|
|
(73 |
) |
|
|
(111 |
) |
Net cash provided by financing activities |
|
|
3,501 |
|
|
|
3,264 |
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash and cash equivalents |
|
|
21 |
|
|
|
102 |
|
Increase (decrease) in cash
and cash equivalents |
|
|
722 |
|
|
|
(604 |
) |
Cash, beginning of year |
|
|
1,160 |
|
|
|
1,923 |
|
Cash, end of
year |
|
$ |
1,882 |
|
|
$ |
1,319 |
|
|
|
|
|
|
|
|
Supplemental
disclosures of cash flow information: |
|
|
|
|
|
|
Cash paid for interest |
|
$ |
486 |
|
|
|
275 |
|
Cash paid for taxes |
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
Supplemental
disclosures of noncash financing information: |
|
|
|
|
|
|
Recognition of right-of-use
asset, operating |
|
$ |
— |
|
|
$ |
200 |
|
Recognition of right-of-use
asset, finance |
|
$ |
— |
|
|
$ |
56 |
|
Vehicles acquired through
issuance of debt |
|
$ |
— |
|
|
$ |
316 |
|
Conversion of preferred stock
to common stock |
|
$ |
11,982 |
|
|
$ |
— |
|
Conversion of convertible debt
to common stock |
|
$ |
3,779 |
|
|
$ |
— |
|
Recapitalization of ACA
noncontrolling interests |
|
$ |
111 |
|
|
$ |
— |
|
Prepaid insurance financed
through funding agreement |
|
$ |
435 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
Grafico Azioni ConnectM Technology Solu... (NASDAQ:CNTM)
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Grafico Azioni ConnectM Technology Solu... (NASDAQ:CNTM)
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Da Gen 2024 a Gen 2025