Market Overview

Boxlight Corporation Reports Second Quarter 2018 Financial Results

  • Revenue increase of 61% year-over-year to $9.7 million
  • Over $10 million in backorders at June 30, 2018
  • Strongest sales pipeline in Company history

Boxlight Corporation (NASDAQ:BOXL) ("Boxlight"), a leading provider of
technology solutions for the global education market, today announced
the Company's financial results for the second quarter ended June 30,

Management Commentary

"Our approach continues to translate into strong financial results. In
the second quarter, we grew revenues over 61% year-over-year to $9.7
million," commented Mark Elliott, Chief Executive Officer of Boxlight.
"During the quarter, we provided our products to over 5,000 classrooms.
Our strong growth is a result of greater adoption of our existing
product suite, continued product introductions and growth in our
reseller network."

"We entered the second half of 2018 with the strongest pipeline in our
company's history including over $10 million in backorders which was
equal to our total Q3 sales last year. We expect to deliver the majority
of these orders in the third quarter, including significant
installations in Beaufort County, South Carolina and Clayton County,

Mr. Elliott concluded, "Boxlight has a clear vision to help lead and
shape the future of education in the classroom. Through our
comprehensive and integrated suite of hardware and software products,
our goal is to become the single source solution to satisfy the needs of
educators around the globe and provide a holistic approach to the modern

Second Quarter 2018 Financial Highlights

  • Revenue of $9.7 million increased 61.5% from $6.0 million in the
    second quarter of 2017. Revenue growth reflects increased sales volume
    driven by greater adoption of Boxlight's product solution suite.
  • Gross profit of $1.7 million was flat with the prior year period. As a
    percent of revenue, gross margin was 17.9% compared to 28.6% in the
    second quarter of 2017. Gross margin in the quarter was impacted by an
    estimated 10% due to lower margins on the initial deliveries of two
    large projects and an accelerated delivery schedule associated with
    those projects. We have negotiated a reduction in cost of goods with
    our key vendor for these projects that will increase the profit
    margins by approximately 10% beginning in the third quarter of 2018.
  • Operating expenses of $3.9 million increased 62% from $2.4 million in
    the second quarter of 2017, primarily driven by a $1.4 million
    increase in general and administrative expenses, which includes higher
    stock compensation of $0.7 million, contract services of $0.3 million,
    commissions of $0.2 million and professional fees primarily related to
    a management advisory agreement of $0.1 million.
  • Net loss was $(4.5) million, or $(0.45) per share, compared to a net
    loss of $(0.8) million, or $(0.18) per share, in the second quarter of
    2017. The increase in the net loss was primarily due to an increase in
    cost of sales and operating expenses.
  • Adjusted EBITDA was a loss of $(1.2) million compared to a loss of
    $(0.5) million in the second quarter of 2017. Adjusted EPS was a loss
    of $(0.13) million compared to a loss of $(0.11) million in the second
    quarter of 2017.

Operational Highlights

On June 21, 2018, Boxlight highlighted that Clayton County, Georgia's
fifth-largest school district, is installing its innovative Mimio
classroom solution suite in approximately 3,200 classrooms, including 37
elementary, 14 middle and 11 high schools. The contract with Clayton
County Public Schools (CCPS) will result in over $11 million in sales
with an anticipated completion date by the end of 2018.

On June 22, 2018, the Company announced its acquisition of Qwizdom, an
education software company, for a total consideration of approximately
$2.5 million. Qwizdom's world-class software solutions and trusted
partner relationships are expected to enhance Boxlight's existing
product suite and expand the Company's distribution network. The
acquisition also brings the expertise of Qwizdom's software development
team as well as industry software veteran and Qwizdom CEO, Darin
Beamish. Beamish will lead software development at Boxlight and manage
the global comprehensive software product roadmap for the Qwizdom and
Mimio classroom solution suite.

On June 25, 2018, the Company was added to the Russell MicroCap Index.
Boxlight's membership means automatic inclusion in the appropriate
growth and value style indexes widely used by institutional investors to
benchmark the performance of active investment strategies.

On July 2, 2018, Boxlight highlighted that its interactive touch
technology offering, MimioSpace, was named as a Best of Show winner by
Tech & Learning at the 2018 International Society for Technology in
Education (ISTE) Conference and Expo.

Second quarter 2018 Financial Results Conference Call

Management will host a conference call to discuss the second quarter
2018 financial results today, Thursday, August 16, 2018 at 4:30 p.m.
Eastern Time. The conference call details are as follows:

Date:         Thursday, August 16, 2018
Time: 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time
Dial-in: 1-877-407-9716 (Domestic)

1-201-493-6779 (International)

Conference ID: 13681838


For those unable to participate during the live broadcast, a replay of
the call will also be available from 8:00 p.m. Eastern Time on August
16, 2018 through 11:59 p.m. Eastern Time on August 30, 2018 by dialing
1-844-512-2921 (domestic) and 1-412-317-6671 (international) and
referencing the replay pin number: 13681838.

Use of Non-GAAP Financial Measures

To supplement Boxlight's financial statements presented on a GAAP
basis, Boxlight provides EBITDA, Adjusted EBITDA, and Adjusted EPS as
supplemental measures of its performance.

To provide investors with additional insight and allow for a more
comprehensive understanding of the information used by management in its
financial and decision-making surrounding pro forma operations, we
supplement our consolidated financial statements presented on a basis
consistent with U.S. generally accepted accounting principles, or GAAP,
with EBITDA and Adjusted EBITDA, non-GAAP financial measures of
earnings. EBITDA represents net income before income tax expense
(benefit), interest income, interest expense, depreciation and
amortization. Adjusted EBITDA represents EBITDA plus stock-based
compensation and non-recurring IPO expenses. Our management uses EBITDA
and Adjusted EBITDA as financial measures to evaluate the profitability
and efficiency of our business model. We use these non-GAAP financial
measures to access the strength of the underlying operations of our
business. These adjustments, and the non-GAAP financial measures that
are derived from them, provide supplemental information to analyze our
operations between periods and over time. We find this especially useful
when reviewing pro forma results of operations, which include large
non-cash amortizations of intangible assets from acquisitions and
stock-based compensation. Investors should consider our non-GAAP
financial measures in addition to, and not as a substitute for,
financial measures prepared in accordance with GAAP.

About Boxlight Corporation

Boxlight Corporation (NASDAQ:BOXL) ("Boxlight") is a leading provider
of technology solutions for the global education market. The company
aims to improve learning and engagement in classrooms and to help
educators enhance student outcomes, by developing the products they
need. The company develops, sells, and services its integrated,
interactive solution suite including software, classroom technologies,
professional development and support services. For more information
about the Boxlight story, visit

Forward Looking Statements

This press release may contain information about Boxlight's view of its
future expectations, plans and prospects that constitute forward-looking
statements. Actual results may differ materially from historical results
or those indicated by these forward-looking statements as a result of a
variety of factors including, but not limited to, risks and
uncertainties associated with its ability to maintain and grow its
business, variability of operating results, its development and
introduction of new products and services, marketing and other business
development initiatives, competition in the industry, etc. Boxlight
encourages you to review other factors that may affect its future
results in Boxlight's filings with the Securities and Exchange


Boxlight Corporation
Consolidated Balance Sheets

        June 30,     December 31,
2018 2017
Current assets:
Cash and cash equivalents $ 1,799,024 $ 2,010,325
Accounts receivable – trade, net of allowances 5,019,988 3,089,932
Inventories, net of reserve 3,487,210 4,626,569
Prepaid expenses and other current assets   1,978,291     388,006  
Total current assets 12,284,513 10,114,832
Property and equipment, net of accumulated depreciation 323,777 29,752
Intangible assets, net of accumulated amortization 6,850,135 6,126,558
Goodwill 4,404,658 4,181,991
Other assets   295     292  
Total assets $ 23,863,378 $ 20,453,425
Current liabilities:
Accounts payable and accrued expenses $ 3,057,354 $ 2,502,962
Accounts payable and accrued expenses – related parties 5,110,792 4,391,713
Warranty reserve 627,177


Short-term debt 1,581,754 752,449
Short-term debt – related party 163,333 54,000
Other current liabilities – related party 136,667 -
Convertible notes payable – related party 50,000 50,000
Deferred revenues – short-term 1,726,717 1,127,423
Derivative liabilities   1,891,704     1,857,252  
Total current liabilities   14,345,498     11,227,755  
Long term debt – related party 546,667 -
Other long-term liabilities – related party 273,333 -
Deferred revenues – long-term   167,573     175,294  
Total liabilities   15,333,071     11,403,049  
Commitments and contingencies
Stockholders' equity:
Preferred stock, $0.0001 par value, 50,000,000 shares authorized; 25 25
Common stock, $0.0001 par value, 200,000,000 shares authorized;
9,558,998 and 4,621,687 Class A shares issued and outstanding,
1,006 956
Additional paid-in capital 25,993,583 21,125,956
Subscriptions receivable (325 ) (325 )
Accumulated deficit (17,390,448 ) (12,028,388 )
Other comprehensive loss   (73,534 )   (47,848 )
Total stockholders' equity   8,530,307     9,050,376  
Total liabilities and stockholders' equity $ 23,863,378   $ 20,453,425  

Boxlight Corporation
Consolidated Statements of
Operations and Comprehensive Loss


        Three Months Ended June 30,
2018     2017
Revenues $ 9,663,657 $ 5,984,440
Cost of revenues   7,938,340     4,273,396  
Gross profit   1,725,317     1,711,044  
Operating expense:
General and administrative expenses 3,726,585 2,302,981
Research and development   177,098     107,107  
Total operating expense   3,903,683     2,410,088  
Loss from operations   (2,178,366 )   (699,044 )
Other income (expense):
Interest expense, net (207,271 ) (106,607 )
Other income (expense), net 16,732 (8,482 )
Change in fair value of derivative liability (2,191,677 ) -
Gain on settlement of liabilities   103,560     -  
Total other income (expense)   (2,278,656 )   (115,089 )
Net loss $ (4,457,022 ) $ (814,133 )
Comprehensive loss:
Net loss $ (4,457,022 ) $ (814,133 )
Other comprehensive loss:
Foreign currency translation gain (loss)   (30,549 )   7,187  
Total comprehensive loss $ (4,487,571 ) $ (806,946 )
Net loss per common share – basic and diluted $ (0.45 ) $ (0.18 )

Weighted average number of common shares outstanding – basic and

  9,810,905     4,621,687  

Boxlight Corporation
Reconciliation of Net Loss to

        Three Months Ended June 30,
2018     2017
Net loss $ (4,457 ) $ (814 )
Depreciation and amortization 194 183
Interest expense   207     106  
EBITDA $ (4,056 ) $ (525 )

Boxlight Corporation
Reconciliation of Net Loss to
Adjusted EBITDA

Three Months Ended June 30,
2018   2017
Net loss $ (4,457 ) $ (814 )
Depreciation and amortization 194 183
Interest expense 207 106
Stock compensation expense 636 38
Change in fair value of derivative liability   2,192     -  
Adjusted EBITDA $ (1,228 ) $ (487 )

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