Identiv, Inc. [INVE] Filings

10-Q 1 inve-20230930.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

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

For the quarterly period ended September 30, 2023

☐ 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: 000-29440

IDENTIV, INC.

(Exact Name of Registrant as Specified in its Charter)


Delaware	77-0444317
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

2201 Walnut Avenue, Suite 100 Fremont, California	94538
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (949) 250-8888

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


Title of each class	Trading Symbol(s)	Name of exchange on which registered
Common Stock, $0.001 par value per share	INVE	The Nasdaq Stock Market LLC

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. 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	☐	Smaller reporting company	☐
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 ☐ No ☑

As of November 2, 2023, the registrant had 23,174,351 shares of common stock outstanding.

TABLE OF CONTENTS


		Page
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Comprehensive Loss	4
	Condensed Consolidated Statements of Stockholders’ Equity	5
	Condensed Consolidated Statements of Cash Flows	7
	Notes to Unaudited Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	33
Item 4.	Controls and Procedures	33

PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	35
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	35
Item 5.	Other Information	35
Item 6.	Exhibits	36

SIGNATURES		37

PART I: FINANCIAL INFORMATION

Item 1. Financial Statements

IDENTIV, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands, except par value)


	September 30, 2023			December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents	$	19,674		$	16,650
Restricted cash		1,254			487
Accounts receivable, net of allowances of $2,677 and $2,666 as of September 30, 2023 and December 31, 2022, respectively		25,892			24,826
Inventories		29,423			28,958
Prepaid expenses and other current assets		5,238			4,177
Total current assets		81,481			75,098
Property and equipment, net		8,518			6,719
Operating lease right-of-use assets		5,525			4,373
Intangible assets, net		4,483			5,265
Goodwill		10,189			10,190
Other assets		1,261			1,120
Total assets	$	111,457		$	102,765
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	12,099		$	14,760
Financial liabilities, net of debt issuance costs of $61 as of September 30, 2023		9,939			—
Operating lease liabilities		1,708			1,190
Deferred revenue		2,474			2,068
Accrued compensation and related benefits		2,580			2,757
Other accrued expenses and liabilities		2,872			2,618
Total current liabilities		31,672			23,393
Long-term operating lease liabilities		4,037			3,366
Long-term deferred revenue		904			587
Other long-term liabilities		25			25
Total liabilities		36,638			27,371
Commitments and contingencies (see Note 15)
Stockholders' equity:
Preferred stock, $0.001 par value: 10,000 shares authorized; 5,000 shares issued and outstanding as of September 30, 2023 and December 31, 2022		5			5
Common stock, $0.001 par value: 50,000 shares authorized; 24,751 and 24,168 shares issued and 23,150 and 22,623 shares outstanding as of September 30, 2023 and December 31, 2022, respectively		24			24
Additional paid-in capital		499,754			495,818
Treasury stock, 1,601 and 1,545 shares as of September 30, 2023 and December 31, 2022, respectively		(12,588	)		(12,173	)
Accumulated deficit		(413,266	)		(409,381	)
Accumulated other comprehensive income		890			1,101
Total stockholders' equity		74,819			75,394
Total liabilities and stockholders' equity	$	111,457		$	102,765

The accompanying notes are an integral part of these condensed consolidated financial statements.

IDENTIV, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited, in thousands, except per share data)


	Three Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Net revenue	$	31,846		$	30,996		$	87,398		$	83,914
Cost of revenue		19,905			19,808			55,398			53,550
Gross profit		11,941			11,188			32,000			30,364
Operating expenses:
Research and development		2,916			2,625			8,638			7,633
Selling and marketing		5,641			5,326			17,617			15,709
General and administrative		2,939			2,639			8,790			7,623
Restructuring and severance		104			49			376			132
Total operating expenses		11,600			10,639			35,421			31,097
Income (loss) from operations		341			549			(3,421	)		(733	)
Non-operating income (expense):
Interest expense, net		(211	)		(39	)		(351	)		(101	)
Gain on investment		132			—			132			30
Foreign currency gains (losses), net		(264	)		(3	)		(184	)		111
Income (loss) before income tax benefit (provision)		(2	)		507			(3,824	)		(693	)
Income tax benefit (provision)		(20	)		12			(61	)		(38	)
Net income (loss)		(22	)		519			(3,885	)		(731	)

Other comprehensive loss:
Foreign currency translation adjustment		(312	)		(644	)		(211	)		(1,490	)
Comprehensive loss	$	(334	)	$	(125	)	$	(4,096	)	$	(2,221	)

Net income (loss) per common share:
Basic	$	(0.01	)	$	0.01		$	(0.21	)	$	(0.07	)
Diluted	$	(0.01	)	$	0.01		$	(0.21	)	$	(0.07	)
Weighted average shares used in computing net income (loss) per common share:
Basic		23,174			22,682			23,008			22,632
Diluted		23,174			23,315			23,008			22,632

The accompanying notes are an integral part of these condensed consolidated financial statements.

IDENTIV, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited, in thousands)


	Three Months Ended September 30, 2023
	Series B Convertible Preferred Stock				Common Stock					Additional Paid-in		Treasury			Accumulated			Accumulated Other Comprehensive			Total Stockholders'
	Shares		Amount		Shares			Amount		Capital		Stock			Deficit			Income			Equity
Balances, July 1, 2023		5,000	$	5		23,112		$	24	$	498,765	$	(12,457	)	$	(413,244	)	$	1,202		$	74,295
Net loss		—		—		—			—		—		—			(22	)		—			(22	)
Unrealized loss from foreign currency translation adjustments		—		—		—			—		—		—			—			(312	)		(312	)
Issuance of common stock in connection with vesting of stock awards		—		—		54			—		—		—			—			—			—
Stock-based compensation		—		—		—			—		989		—			—			—			989
Shares withheld in payment of taxes in connection with net share settlement of restricted stock units		—		—		(16	)		—		—		(131	)		—			—			(131	)
Balances, September 30, 2023		5,000	$	5		23,150		$	24	$	499,754	$	(12,588	)	$	(413,266	)	$	890		$	74,819

	Nine Months Ended September 30, 2023
	Series B Convertible Preferred Stock				Common Stock					Additional Paid-in		Treasury			Accumulated			Accumulated Other Comprehensive			Total Stockholders'
	Shares		Amount		Shares			Amount		Capital		Stock			Deficit			Income			Equity
Balances, January 1, 2023		5,000	$	5		22,623		$	24	$	495,818	$	(12,173	)	$	(409,381	)	$	1,101		$	75,394
Net loss		—		—		—			—		—		—			(3,885	)		—			(3,885	)
Unrealized income from foreign currency translation adjustments		—		—		—			—		—		—			—			(211	)		(211	)
Issuance of common stock in connection with vesting of stock awards		—		—		308			—		—		—			—			—			—
Stock-based compensation		—		—		—			—		2,973		—			—			—			2,973
Shares withheld in payment of taxes in connection with net share settlement of restricted stock units		—		—		(56	)		—		—		(415	)		—			—			(415	)
Proceeds from exercise of warrants		—		—		275			—		963		—			—			—			963
Balances, September 30, 2023		5,000	$	5		23,150		$	24	$	499,754	$	(12,588	)	$	(413,266	)	$	890		$	74,819


	Three Months Ended September 30, 2022
	Series B Convertible Preferred Stock				Common Stock					Additional Paid-in		Treasury			Accumulated			Accumulated Other Comprehensive			Total Stockholders'
	Shares		Amount		Shares			Amount		Capital		Stock			Deficit			Income			Equity
Balances, July 1, 2022		5,000	$	5		22,444		$	24	$	494,370	$	(11,757	)	$	(410,239	)	$	1,103		$	73,506
Net income		—		—		—			—		—		—			519			—			519
Unrealized loss from foreign currency translation adjustments		—		—		—			—		—		—			—			(644	)		(644	)
Issuance of common stock in connection with vesting of stock awards		—		—		64			—		—		—			—			—			—
Stock-based compensation		—		—		—			—		852		—			—			—			852
Shares withheld in payment of taxes in connection with net share settlement of restricted stock units		—		—		(18	)		—		—		(273	)		—			—			(273	)
Balances, September 30, 2022		5,000	$	5		22,490		$	24	$	495,222	$	(12,030	)	$	(409,720	)	$	459		$	73,960

	Nine Months Ended September 30, 2022
	Series B Convertible Preferred Stock				Common Stock					Additional Paid-in		Treasury			Accumulated			Accumulated Other Comprehensive			Total Stockholders'
	Shares		Amount		Shares			Amount		Capital		Stock			Deficit			Income			Equity
Balances, January 1, 2022		5,000	$	5		22,230		$	24	$	492,657	$	(11,134	)	$	(408,989	)	$	1,949		$	74,512	<

Identiv, Inc. [INVE] Filings
10-Q	[2023-11-08]
10-Q	[2023-08-08]
10-Q	[2023-05-09]
10-K	[2023-03-16]
10-Q	[2022-11-08]
10-Q	[2022-08-09]
10-Q	[2022-05-10]
10-K	[2022-03-14]
10-Q	[2021-11-12]
10-Q	[2021-08-12]
10-Q	[2021-05-11]
10-K	[2021-03-12]
10-Q	[2020-11-13]
10-Q	[2020-08-11]
10-Q	[2020-05-11]
10-K	[2020-03-18]
10-Q	[2019-11-12]
10-Q	[2019-08-14]
10-Q	[2019-05-13]
10-K	[2019-03-15]
10-Q	[2018-11-13]
10-Q	[2018-08-13]
10-Q	[2018-05-15]
10-K	[2018-03-29]
10-Q	[2017-11-13]
10-Q	[2017-08-11]
10-Q	[2017-05-15]
10-K	[2017-03-28]
10-Q	[2016-11-14]
10-Q	[2016-08-15]
10-Q	[2016-05-13]
10-K	[2016-03-31]
10-Q	[2016-03-29]
10-Q	[2016-03-29]
10-Q	[2016-03-29]
10-K	[2015-03-23]
10-Q	[2014-11-14]
10-Q	[2014-08-14]
10-Q	[2014-05-15]
10-K	[2014-03-31]
10-Q	[2013-11-13]
10-Q	[2013-08-14]
10-Q	[2013-05-10]
10-K	[2013-03-19]
10-Q	[2012-11-09]
10-Q	[2012-08-08]
10-Q	[2012-05-15]
10-K	[2012-03-29]