Identiv, Inc. [INVE] Filings

10-Q 1 inve-10q_20220930.htm 10-Q- Q3-2022 inve-10q_20220930.htm

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, 2022

☐	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, 2022, the registrant had 22,513,129 shares of common stock outstanding.

TABLE OF CONTENTS

		Page
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021	3
	Condensed Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2022 and 2021	4
	Condensed Consolidated Statements of Stockholders’ Equity for the Three and Nine Months Ended September 30, 2022 and 2021	5
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2022 and 2021	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	36
Item 6.	Exhibits	37

SIGNATURES		38

PART I: FINANCIAL INFORMATION

Item 1. Financial Statements

IDENTIV, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands, except par value)

	September 30,			December 31,
	2022			2021
ASSETS
Current assets:
Cash and cash equivalents	$	21,202		$	28,553
Restricted cash		698			1,254
Accounts receivable, net of allowances of $2,666 and $2,745 as of September 30, 2022 and December 31, 2021, respectively		23,588			19,963
Inventories		25,060			19,924
Prepaid expenses and other current assets		3,908			3,032
Total current assets		74,456			72,726
Property and equipment, net		6,189			4,066
Operating lease right-of-use assets		3,997			2,088
Intangible assets, net		5,533			6,445
Goodwill		10,179			10,268
Other assets		1,046			1,070
Total assets	$	101,400		$	96,663
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	15,074		$	10,502
Operating lease liabilities		941			1,269
Deferred revenue		2,072			2,153
Accrued compensation and related benefits		2,753			3,150
Other accrued expenses and liabilities		2,917			3,774
Total current liabilities		23,757			20,848
Long-term operating lease liabilities		3,185			938
Long-term deferred revenue		474			280
Other long-term liabilities		24			85
Total liabilities		27,440			22,151
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, 2022 and December 31, 2021		5			5
Common stock, $0.001 par value: 50,000 shares authorized; 24,021 and 23,707 shares issued and 22,490 and 22,230 shares outstanding as of September 30, 2022 and December 31, 2021, respectively		24			24
Additional paid-in capital		495,222			492,657
Treasury stock, 1,531 and 1,477 shares as of September 30, 2022 and December 31, 2021, respectively		(12,030	)		(11,134	)
Accumulated deficit		(409,720	)		(408,989	)
Accumulated other comprehensive income		459			1,949
Total stockholders' equity		73,960			74,512
Total liabilities and stockholders' equity	$	101,400		$	96,663

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

IDENTIV, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited, in thousands, except per share data)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2022			2021			2022			2021
Net revenue	$	30,996		$	29,097		$	83,914		$	75,252
Cost of revenue		19,808			17,979			53,550			47,602
Gross profit		11,188			11,118			30,364			27,650
Operating expenses:
Research and development		2,625			2,088			7,633			6,556
Selling and marketing		5,326			4,471			15,709			12,682
General and administrative		2,639			2,400			7,623			7,120
Restructuring and severance		49			99			132			761
Total operating expenses		10,639			9,058			31,097			27,119
Income (loss) from operations		549			2,060			(733	)		531
Non-operating income (expense):
Interest expense, net		(39	)		(62	)		(101	)		(451	)
Gain on forgiveness of Paycheck Protection Program note		—			—			—			2,946
Gain on investment		—			611			30			611
Foreign currency gains (losses), net		(3	)		(48	)		111			(2	)
Income (loss) before income tax benefit (provision)		507			2,561			(693	)		3,635
Income tax benefit (provision)		12			(21	)		(38	)		(94	)
Net income (loss)		519			2,540			(731	)		3,541

Other comprehensive income (loss):
Foreign currency translation adjustment		(644	)		(229	)		(1,490	)		(449	)
Comprehensive income (loss)	$	(125	)	$	2,311		$	(2,221	)	$	3,092

Net income (loss) per common share:							`
Basic	$	0.01		$	0.10		$	(0.07	)	$	0.13
Diluted	$	0.01		$	0.09		$	(0.07	)	$	0.12
Weighted average shares used in computing net income (loss) per common share:
Basic		22,682			22,448			22,632			20,948
Diluted		23,315			29,330			22,632			21,861

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, 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, June 30, 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, December 31, 2021		5,000	$	5		22,230		$	24	$	492,657	$	(11,134	)	$	(408,989	)	$	1,949			74,512
Net loss		—		—		—			—		—		—			(731	)		—			(731	)
Unrealized loss from foreign currency translation adjustments		—		—		—			—		—		—			—			(1,490	)		(1,490	)
Issuance of common stock in connection with vesting of stock awards		—		—		314			—		—		—			—			—			—
Stock-based compensation		—		—		—			—		2,565		—			—			—			2,565
Shares withheld in payment of taxes in connection with net share settlement of restricted stock units		—		—		(54	)		—		—		(896	)		—			—			(896	)
Balances, September 30, 2022		5,000	$	5		22,490		$	24	$	495,222	$	(12,030	)	$	(409,720	)	$	459		$	73,960

	Three Months Ended September 30, 2021
	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, June 30, 2021		5,000	$	5		22,123		$	23	$	491,431	$	(10,519	)	$	(409,608	)	$	2,358			73,690
Net income		—		—		—			—		—		—			2,540			—			2,540
Unrealized income from foreign currency translation adjustments		—		—		—			—		—		—			—			(229	)		(229	)
Issuance of common stock in connection with vesting of stock awards		—		—		73			—		—		—			—			—			—
Stock-based compensation		—		—		—			—		572		—			—			—			572
Shares withheld in payment of taxes in connection with net share settlement of restricted stock units		—		—		(20	)		—		—		(334	)		—			—			(334	)
Proceeds from exercise of stock options		—		—		2			1

Identiv, Inc. [INVE] Filings
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]