10-Q 1 atex-20211231x10q.htm 10-Q atex-20211231x10q
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________

FORM 10-Q

____________________________________

(Mark one)

xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2021

OR

¨TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission file number: 001-36827

____________________________________

Anterix Inc.

(Exact name of registrant as specified in its charter)

____________________________________

 

Delaware

33-0745043

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

3 Garret Mountain Plaza

Suite 401

Woodland Park, New Jersey

07424

(Address of principal executive offices)

(Zip Code)

(973771-0300

(Registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

____________________________________

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol

Name of each exchange on which registered

Common Stock, $0.0001 par value

ATEX

The Nasdaq Stock Market LLC

(Nasdaq Capital Market)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    x  Yes     No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).      Yes      No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

¨

Accelerated filer

¨

Non-accelerated filer

x  

Smaller reporting company

x

Emerging growth company

¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    ¨  Yes    x  No

At January 31, 2022, 18,374,938 shares of the registrant’s common stock were outstanding.

 

 

Anterix Inc.

FORM 10-Q

For the quarterly period ended December 31, 2021

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION

Item 1.

Consolidated Financial Statements

4

Consolidated Balance Sheets as of December 31, 2021 (Unaudited) and March 31, 2021

4

Unaudited Consolidated Statements of Operations for the three and nine months ended December 31, 2021 and December 31, 2020

5

Unaudited Consolidated Statement of Stockholders’ Equity for the three and nine months ended December 31, 2021

6

Unaudited Consolidated Statement of Stockholders’ Equity for the three and nine months ended December 31, 2020

7

Unaudited Consolidated Statements of Cash Flows for the nine months ended December 31, 2021 and December 31, 2020

8

Notes to Unaudited Consolidated Financial Statements

9

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

20

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

25

Item 4.

Controls and Procedures

26

PART II. OTHER INFORMATION

28

Item 1.

Legal Proceedings

28

Item 1A.

Risk Factors

28

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

29

Item 3.

Defaults Upon Senior Securities

29

Item 4.

Mine Safety Disclosures

29

Item 5.

Other Information

29

Item 6.

Exhibits

30

SIGNATURES

31

 

 

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (the “Quarterly Report”) includes statements of our expectations, intentions, plans, and beliefs that constitute “forward-looking statements.” These forward-looking statements are principally, but not solely, contained in the section captioned “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” These statements include, but are not limited to, statements about our strategies, plans, objectives, expectations, intentions, expenditures and assumptions and other statements contained herein that are not historical facts. Our forward-looking statements are generally, but not always, accompanied by words such as, but not limited to, “aim,” “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “goal,” “intend” “may,” “might,” “ongoing,” “plan,” “possible,” “project,” “predict,” “potential,” “seek,” “should,” “strategy,” “target,” “will,” “would” and similar expressions or phrases, or the negative of those expressions or phrases, or other words that convey the uncertainty of future events or outcomes, which are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We have based these forward-looking statements on our current expectations and projections and related assumptions, about future events and financial trends. The matters discussed in these forward-looking statements are subject to risks, uncertainties and other factors that could cause our actual results to differ materially from those projected, anticipated or implied in the forward-looking statements. Many of these risks, uncertainties and other factors are beyond our ability to control, influence, or predict. The most significant of these risks, uncertainties and other factors are described in “Item 1A—Risk Factors” in Part II of this Quarterly Report and in our Annual Report on Form 10-K for the year ended March 31, 2021, filed with the SEC on June 15, 2021. As a result, investors are urged not to place undue reliance on any forward-looking statements. These forward-looking statements reflect our views and assumptions only as of the date such forward-looking statements were made. Except to the limited extent required by applicable law, we undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

 

PART I. FINANCIAL INFORMATION

Item 1: Consolidated Financial Statements

Anterix Inc.

Consolidated Balance Sheets

(in thousands, except share data)

 

December 31, 2021

March 31, 2021

(Unaudited)

ASSETS

Current Assets

Cash and cash equivalents

$

127,764

$

117,538

Accounts receivable

4

Prepaid expenses and other current assets

7,269

3,508

Total current assets

135,033

121,050

Property and equipment, net

2,640

3,574

Right of use assets, net

4,256

5,100

Intangible assets

144,449

122,117

Other assets

1,675

1,214

Total assets

$

288,053

$

253,055

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities

Accounts payable and accrued expenses

$

6,784

$

6,256

Due to related parties

160

152

Operating lease liabilities

1,450

1,470

Deferred revenue

1,478

737

Total current liabilities

9,872

8,615

Noncurrent liabilities

Operating lease liabilities

4,534

5,601

Contingent liability

20,000

20,000

Deferred revenue

53,535

2,246

Deferred income tax

3,919

3,209

Other liabilities

569

876

Total liabilities

92,429

40,547

Commitments and contingencies

 

 

Stockholders’ equity

Preferred stock, $0.0001 par value per share, 10,000,000 shares authorized and no shares outstanding at December 31, 2021 and March 31, 2021

Common stock, $0.0001 par value per share, 100,000,000 shares

authorized and 18,364,688 shares issued and outstanding at December 31, 2021 and 17,669,905 shares issued and outstanding at March 31, 2021

2

2

Additional paid-in capital

495,465

472,854

Accumulated deficit

(299,843)

(260,348)

Total stockholders’ equity

195,624

212,508

Total liabilities and stockholders’ equity

$

288,053

$

253,055

See accompanying notes to consolidated financial statements.

 

 

Anterix Inc.

Consolidated Statements of Operations

(in thousands, except share and per share data)

(Unaudited)

Three months ended December 31,

Nine months ended December 31,

2021

2020

2021

2020

Operating revenues

Service revenue

$

$

53

$

$

193

Spectrum revenue

385

183

749

547

Total operating revenues

385

236

749

740

Operating expenses

Direct cost of revenue (exclusive of depreciation and amortization)

5

543

5

1,606

General and administrative

10,219

8,806

29,774

30,326

Sales and support

1,263

676

3,311

2,070

Product development

893

1,244

2,826

3,033

Depreciation and amortization

323

1,020

996

3,418

Impairment of long-lived assets

11

40

Total operating expenses

12,703

12,300

36,912

40,493

(Gain)/loss from disposal of intangible assets, net

(10,230)

3,849

Loss/(gain) from disposal of long-lived assets, net

57

111

(6)

Loss from operations

(12,375)

(12,064)

(26,044)

(43,596)

Interest income

9

27

55

99

Other income

63

110

197

332

Loss on equity method investment

(7)

(23)

Loss before income taxes

(12,303)

(11,934)

(25,792)

(43,188)

Income tax expense

412

155

710

311

Net loss

$

(12,715)

$

(12,089)

$

(26,502)

$

(43,499)

Net loss per common share basic and diluted

$

(0.69)

$

(0.69)

$

(1.47)

$

(2.51)

Weighted-average common shares used to compute basic
  and diluted net loss per share

18,313,193

17,492,539

18,072,904

17,350,671

See accompanying notes to consolidated financial statements.

 

 

Anterix Inc.

Consolidated Statement of Stockholders’ Equity

(in thousands)

(Unaudited)

Number of Shares

Common
stock

Common
stock

Additional
paid-in
capital

Accumulated
deficit

Total

Balance at September 30, 2021

18,334

$

2

$

488,366

$

(275,135)

$

213,233

Equity based compensation*

22

3,631

3,631

Stock option exercises

211

3,618

3,618

Shares withheld for taxes

(2)

(150)

(150)

Retirement of common stock

(200)

(11,993)

(11,993)

Net loss

(12,715)

(12,715)

Balance at December 31, 2021

18,365

$

2

$

495,465

$

(299,843)

$

195,624

Balance at March 31, 2021

17,670

$

2

$

472,854

$

(260,348)

$

212,508

Equity based compensation*

207

10,147

10,147

Stock option exercises

732

13,922

13,922

Shares withheld for taxes

(24)

(1,458)

(1,458)

Retirement of common stock

(220)

(12,993)

(12,993)

Net loss

(26,502)

(26,502)

Balance at December 31, 2021

18,365

$

2

$

495,465

$

(299,843)

$

195,624

* includes restricted shares issued.

See accompanying notes to consolidated financial statements.


Anterix Inc.

Consolidated Statement of Stockholders’ Equity

(in thousands)

(Unaudited)

Number of Shares

Common
stock

Common
stock

Additional
paid-in
capital

Accumulated
deficit

Total

Balance at September 30, 2020

17,487

$

2

$

464,620

$

(237,324)

$

227,298

Equity based compensation*

23

2,672

2,672

Equity payment of prior year accrued employee related expenses

4

Stock option exercises

70

1,286

1,286

Net loss

(12,089)

(12,089)

Balance at December 31, 2020

17,584

$

2

$

468,578

$

(249,413)

$

219,167

Balance at March 31, 2020

17,185

$

2

$

450,978

$

(205,914)

$

245,066

Equity based compensation*

229

13,245

13,245

Equity payment of prior year accrued employee related expenses

28

1,537