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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

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

For the quarterly period ended June 30, 2020

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 No. 001-35806

 

The ExOne Company

(Exact name of registrant as specified in its charter)

 

 

Delaware

 

46-1684608

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

127 Industry Boulevard

North Huntingdon, Pennsylvania 15642

(Address of principal executive offices) (Zip Code)

(724) 863-9663

(Registrant’s telephone number, including area code)

 

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

Title of class

Trading symbol

Name of exchange on which registered

Common stock

XONE

The Nasdaq Stock 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.     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 August 6, 2020, 16,910,852 shares of common stock, par value $0.01, were outstanding.

 

 

 

 


PART I – FINANCIAL INFORMATION

Item 1.     Financial Statements.

The ExOne Company and Subsidiaries

Condensed Statement of Consolidated Operations and Comprehensive Loss (Unaudited)

(in thousands, except per-share amounts)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenue

 

$

11,099

 

 

$

15,279

 

 

$

24,482

 

 

$

24,858

 

Cost of sales

 

 

8,009

 

 

 

10,137

 

 

 

17,763

 

 

 

17,074

 

Gross profit

 

 

3,090

 

 

 

5,142

 

 

 

6,719

 

 

 

7,784

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Research and development

 

 

2,369

 

 

 

2,537

 

 

 

4,845

 

 

 

4,969

 

Selling, general and administrative

 

 

4,488

 

 

 

6,167

 

 

 

10,651

 

 

 

11,590

 

Gain from sale-leaseback of property and equipment

 

 

 

 

 

 

 

 

(1,462

)

 

 

 

 

 

 

6,857

 

 

 

8,704

 

 

 

14,034

 

 

 

16,559

 

Loss from operations

 

 

(3,767

)

 

 

(3,562

)

 

 

(7,315

)

 

 

(8,775

)

Other expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

53

 

 

 

71

 

 

 

117

 

 

 

142

 

Other expense  ̶  net

 

 

195

 

 

 

57

 

 

 

5

 

 

 

69

 

 

 

 

248

 

 

 

128

 

 

 

122

 

 

 

211

 

Loss before income taxes

 

 

(4,015

)

 

 

(3,690

)

 

 

(7,437

)

 

 

(8,986

)

Provision (benefit) for income taxes

 

 

8

 

 

 

99

 

 

 

234

 

 

 

(701

)

Net loss

 

$

(4,023

)

 

$

(3,789

)

 

$

(7,671

)

 

$

(8,285

)

Net loss per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.24

)

 

$

(0.23

)

 

$

(0.47

)

 

$

(0.51

)

Diluted

 

$

(0.24

)

 

$

(0.23

)

 

$

(0.47

)

 

$

(0.51

)

Comprehensive loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(4,023

)

 

$

(3,789

)

 

$

(7,671

)

 

$

(8,285

)

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

370

 

 

 

583

 

 

 

(468

)

 

 

(193

)

Comprehensive loss

 

$

(3,653

)

 

$

(3,206

)

 

$

(8,139

)

 

$

(8,478

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

2


The ExOne Company and Subsidiaries

Condensed Consolidated Balance Sheet (Unaudited)

(in thousands, except per-share and share amounts)

 

 

 

June 30,

 

 

December 31,

 

 

 

2020

 

 

2019

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

19,658

 

 

$

5,265

 

Restricted cash

 

 

508

 

 

 

978

 

Accounts receivable  ̶  net

 

 

4,531

 

 

 

6,522

 

Current portion of net investment in sales-type leases

 

 

292

 

 

 

213

 

Inventories  ̶  net

 

 

24,208

 

 

 

19,770

 

Prepaid expenses and other current assets

 

 

3,510

 

 

 

2,182

 

Total current assets

 

 

52,707

 

 

 

34,930

 

Property and equipment  ̶  net

 

 

20,609

 

 

 

38,895

 

Operating lease right-of-use assets

 

 

4,533

 

 

 

432

 

Net investment in sales-type leases  ̶  net of current portion

 

 

639

 

 

 

738

 

Other noncurrent assets

 

 

242

 

 

 

371

 

Total assets

 

$

78,730

 

 

$

75,366

 

Liabilities

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Current portion of long-term debt

 

$

1,128

 

 

$

153

 

Current portion of operating lease liabilities

 

 

1,754

 

 

 

158

 

Accounts payable

 

 

5,127

 

 

 

5,818

 

Accrued expenses and other current liabilities

 

 

4,183

 

 

 

6,942

 

Current portion of contract liabilities

 

 

16,438

 

 

 

11,846

 

Total current liabilities

 

 

28,630

 

 

 

24,917

 

Long-term debt  ̶  net of current portion

 

 

2,354

 

 

 

1,211

 

Operating lease liabilities  ̶  net of current portion

 

 

2,779

 

 

 

274

 

Contract liabilities  ̶  net of current portion

 

 

213

 

 

 

286

 

Other noncurrent liabilities

 

 

223

 

 

 

96

 

Total liabilities

 

 

34,199

 

 

 

26,784

 

Contingencies and commitments

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

 

 

 

 

 

 

Common stock, $0.01 par value, 200,000,000 shares authorized,

   16,863,602 (2020) and 16,346,960 (2019) shares issued and outstanding

 

 

169

 

 

 

163

 

Additional paid-in capital

 

 

180,932

 

 

 

176,850

 

Accumulated deficit

 

 

(124,619

)

 

 

(116,948

)

Accumulated other comprehensive loss

 

 

(11,951

)

 

 

(11,483

)

Total stockholders' equity

 

 

44,531

 

 

 

48,582

 

Total liabilities and stockholders' equity

 

$

78,730

 

 

$

75,366

 

 

 

 

 

 

 

 

 

 

 

 

 

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

3


The ExOne Company and Subsidiaries

Condensed Statement of Consolidated Cash Flows (Unaudited)

(in thousands)

 

 

 

Six Months Ended

 

 

 

June 30,

 

 

 

2020

 

 

2019

 

Operating activities

 

 

 

 

 

 

 

 

Net loss

 

$

(7,671

)

 

$

(8,285

)

Adjustments to reconcile net loss to net cash used for operations:

 

 

 

 

 

 

 

 

Depreciation

 

 

2,107

 

 

 

2,349

 

Equity-based compensation

 

 

449

 

 

 

1,081

 

Amortization of debt issuance costs

 

 

29

 

 

 

47

 

Recoveries for bad debts  ̶  net

 

 

(19

)

 

 

(150

)

Provision for slow-moving, obsolete and lower of cost or

   net realizable value inventories  ̶  net

 

 

305

 

 

 

131

 

Foreign exchange (gains) losses on intercompany transactions  ̶  net

 

 

(51

)

 

 

19

 

Gain from sale-leaseback of property and equipment

 

 

(1,462

)

 

 

 

Gain from disposal of property and equipment  ̶  net

 

 

(1

)

 

 

(2

)

Deferred income taxes

 

 

195

 

 

 

 

Changes in assets and liabilities, excluding effects of foreign currency

   translation adjustments:

 

 

 

 

 

 

 

 

Decrease in accounts receivable

 

 

2,016

 

 

 

1,879

 

Decrease in net investment in sales-type leases

 

 

20

 

 

 

153

 

Increase in inventories

 

 

(5,369

)

 

 

(1,325

)

Increase in prepaid expenses and other assets

 

 

(1,034

)

 

 

(221

)

(Decrease) increase in accounts payable

 

 

(821

)

 

 

927

 

Decrease in accrued expenses and other liabilities

 

 

(458

)

 

 

(1,689

)

Increase in contract liabilities

 

 

4,428

 

 

 

3,608

 

Net cash used for operating activities

 

 

(7,337

)

 

 

(1,478

)

Investing activities

 

 

 

 

 

 

 

 

Capital expenditures

 

 

(591

)

 

 

(423

)

Proceeds from sale of property and equipment

 

 

16,229

 

 

 

3

 

Net cash provided by (used for) investing activities

 

 

15,638

 

 

 

(420

)

Financing activities

 

 

 

 

 

 

 

 

Proceeds from borrowings on long-term debt

 

 

2,194

 

 

 

 

Payments on long-term debt

 

 

(78

)

 

 

(74

)

Proceeds from at-the-market offerings of common stock, net of issuance costs

 

 

2,894

 

 

 

 

Proceeds from exercise of employee stock options

 

 

541

 

 

 

171

 

Other

 

 

(29

)

 

 

(75

)

Net cash provided by financing activities

 

 

5,522

 

 

 

22

 

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

 

 

100

 

 

 

(12

)

Net change in cash, cash equivalents, and restricted cash

 

 

13,923

 

 

 

(1,888

)

Cash, cash equivalents, and restricted cash at beginning of period

 

 

6,243

 

 

 

9,140

 

Cash, cash equivalents, and restricted cash at end of period

 

$

20,166

 

 

$

7,252

 

Supplemental disclosure of noncash investing and financing activities

 

 

 

 

 

 

 

 

Transfer of internally developed 3D printing machines from inventories to

   property and equipment for internal use or leasing activities

 

$

1,834

 

 

$

1,066

 

Transfer of internally developed 3D printing machines from property

   and equipment to inventories for sale

 

$

1,107

 

 

$

182

 

Property and equipment included in accounts payable

 

$

41

 

 

$

110

 

Property and equipment included in accrued expenses and other current liabilities

 

$

 

 

$

48

 

Unsettled proceeds from at-the-market offerings of common stock, net of issuance costs

 

$

204

 

 

$

 

Unsettled proceeds from exercise of employee stock options

 

$

 

 

$

91

 

 

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

4


The ExOne Company and Subsidiaries

Condensed Statement of Changes in Consolidated Stockholders’ Equity (Unaudited)

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

other

 

 

Total

 

 

 

Common stock

 

 

Additional

 

 

Accumulated

 

 

comprehensive

 

 

stockholders'

 

 

 

Shares

 

 

$

 

 

paid-in capital

 

 

deficit

 

 

loss

 

 

equity

 

Balance at December 31, 2018

 

 

16,234

 

 

$

162

 

 

$

175,214

 

 

$

(101,853

)

 

$

(10,748

)

 

$

62,775

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(4,496

)

 

 

 

 

 

(4,496

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(776

)

 

 

(776

)

Equity-based compensation

 

 

 

 

 

 

 

 

439

 

 

 

 

 

 

 

 

 

439

 

Exercise of employee stock options

 

 

23

 

 

 

1

 

 

 

164

 

 

 

 

 

 

 

 

 

165

 

Taxes related to the net share settlement of

   equity-based awards

 

 

 

 

 

 

 

 

(68

)

 

 

 

 

 

 

 

 

(68

)

Common stock issued from equity incentive plan

 

 

38

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at March 31, 2019

 

 

16,295

 

 

$

163

 

 

$

175,749

 

 

$

(106,349

)

 

$

(11,524

)

 

$

58,039

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(3,789

)

 

 

 

 

 

(3,789

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

583

 

 

 

583

 

Equity-based compensation

 

 

 

 

 

 

 

 

642

 

 

 

 

 

 

 

 

 

642

 

Exercise of employee stock options

 

 

13

 

 

 

 

 

 

97

 

 

 

 

 

 

 

 

 

97

 

Common stock issued from equity incentive plan

 

 

10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2019

 

 

16,318

 

 

$

163

 

 

$

176,488

 

 

$

(110,138

)

 

$

(10,941

)

 

$

55,572

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2019

 

 

16,347

 

 

$

163

 

 

$

176,850

 

 

$

(116,948

)

 

$

(11,483

)

 

$

48,582

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(3,648

)

 

 

 

 

 

(3,648

)

Other comprehensive loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(838

)

 

 

(838

)

Equity-based compensation

 

 

 

 

 

1

 

 

 

291

 

 

 

 

 

 

 

 

 

292

 

Common stock issued from equity incentive plan

 

 

39

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at March 31, 2020

 

 

16,386

 

 

$

164

 

 

$

177,141

 

 

$

(120,596

)

 

$

(12,321

)

 

$

44,388

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(4,023

)

 

 

 

 

 

(4,023

)

Other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

370

 

 

 

370

 

Equity-based compensation

 

 

 

 

 

 

 

 

157

 

 

 

 

 

 

 

 

 

157

 

Exercise of employee stock options

 

 

73

 

 

 

1

 

 

 

540

 

 

 

 

 

 

 

 

 

541

 

Common stock issued from equity incentive plan

 

 

22

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At-the-market offerings of common stock,

   net of issuance costs

 

 

383

 

 

 

4

 

 

 

3,094

 

 

 

 

 

 

 

 

 

3,098

 

Balance at June 30, 2020

 

 

16,864

 

 

$

169

 

 

$

180,932

 

 

$

(124,619

)

 

$

(11,951

)

 

$

44,531

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

5


The ExOne Company and Subsidiaries

Notes to the Condensed Consolidated Financial Statements (Unaudited)

(dollars in thousands, except per-share and share amounts)

Note 1. Basis of Presentation

Organization

The ExOne Company (“ExOne”) is a corporation organized under the laws of the state of Delaware. ExOne was formed on January 1, 2013, when The Ex One Company, LLC, a Delaware limited liability company, merged with and into a Delaware corporation, which survived and changed its name to The ExOne Company (the “Reorganization”). As a result of the Reorganization, The Ex One Company, LLC became ExOne, the common and preferred interest holders of The Ex One Company, LLC became holders of common stock and preferred stock, respectively, of ExOne, and the subsidiaries of The Ex One Company, LLC became the subsidiaries of ExOne. The condensed consolidated financial statements include the accounts of ExOne, its wholly-owned subsidiaries, ExOne Americas LLC (United States); ExOne GmbH (Germany); ExOne Property GmbH (Germany); and ExOne KK (Japan). Collectively, the consolidated group is referred to as the “Company”.

The Company filed a registration statement on Form S-3 (No. 333-223690) with the Securities and Exchange Commission on March 15, 2018. The purpose of the Form S-3 was to register various equity and debt securities. Subsidiaries of the Company are co-registrants with the Company (“Subsidiary Guarantors”), and the registration statement registered guarantees of debt securities by one or more of the Subsidiary Guarantors. The Subsidiary Guarantors are 100% owned by the Company and any guarantees by the Subsidiary Guarantors will be full and unconditional.

Basis of Presentation

The condensed consolidated financial statements of the Company are unaudited. The condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, considered necessary by management to fairly state the results of operations, financial position and cash flows of the Company. All material intercompany transactions and balances have been eliminated in consolidation. The results reported in these condensed consolidated financial statements are not necessarily indicative of the results that may be expected for the entire year. The December 31, 2019 condensed consolidated balance sheet data was derived from the audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America (“GAAP”). This Quarterly Report on Form 10-Q should be read in connection with the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, which includes all disclosures required by GAAP.

The preparation of these condensed consolidated financial statements requires the Company to make certain judgments, estimates and assumptions regarding uncertainties that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosure of contingent assets and liabilities. Areas that require significant judgments, estimates and assumptions include accounting for accounts receivable (including the allowance for doubtful accounts); inventories (including the allowance for slow-moving and obsolete inventories); product warranty reserves; contingencies; income taxes (including the valuation allowance on certain deferred tax assets and liabilities for uncertain tax positions); equity-based compensation (including the valuation of certain equity-based compensation awards issued by the Company); and testing for impairment of long-lived assets (including the identification of asset groups by management, estimates of future cash flows of identified asset groups and fair value estimates used in connection with assessing the valuation of identified asset groups). The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

Certain amounts relating to operating lease right-of-use assets ($432), current portion of operating lease liabilities ($158) and operating lease liabilities – net of current portion ($274) in the accompanying condensed consolidated balance sheet at December 31, 2019, have been reclassified from other noncurrent assets, accrued expenses and other current liabilities and other noncurrent liabilities, respectively, to conform to current period presentation.

Certain amounts in the accompanying condensed statement of consolidated cash flows have been reclassified to conform to current period presentation.

COVID-19

In March 2020, the World Health Organization declared the novel strain of coronavirus a global pandemic (“COVID-19”) and recommended containment and mitigation measures worldwide. The impact of COVID-19 and the related economic, business and market disruptions are evolving rapidly, and their effects are uncertain. As a result of COVID-19, the Company was required to temporarily close its operations at its North Huntingdon, Pennsylvania facility for the period from March 23 through March 30, 2020. In response to COVID-19, the Company has incurred incremental costs associated with protecting the health and safety of the Company’s global workforce, enhanced sanitization of the Company’s global operating facilities, and information technology capabilities for employees operating remotely. Beginning in March 2020, restrictions imposed by various governmental authorities on both domestic and international shipping and travel have caused a disruption to the timing of delivery and installation of the Company’s 3D printing machines, resulting in negative impacts to the Company’s financial position, results of operations and cash flows. The duration and severity of the outbreak and its long-term impact on the Company’s business are uncertain at this time. The Company is unable to predict the impact that COVID-19 will have on its future financial position, results of operations and cash flows.

6


Recently Issued Accounting Guidance

The Company considers the applicability and impact of all Accounting Standards Updates (“ASUs”) issued by the Financial Accounting Standards Board (the “FASB”). Recently issued ASUs not listed below either were assessed and determined to be not applicable or are currently expected to have no impact on the consolidated financial statements of the Company.

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses.” This ASU added a new impairment model (known as the current expected credit loss (“CECL”) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses. The CECL model applies to most debt instruments, trade receivables, lease receivables, financial guarantee contracts, and other loan commitments. The CECL model does not have a minimum threshold for recognition of impairment losses and entities will need to measure expected credit losses on assets that have a low risk of loss. As a smaller reporting company pursuant to Rule 12b-2 of the Securities Exchange Act of 1934, as amended, these changes become effective for the Company on January 1, 2023. Management is currently evaluating the potential impact of these changes on the consolidated financial statements of the Company.

Note 2. Liquidity

The Company has incurred a net loss in each of its annual periods since its inception. As shown in the accompanying condensed statement of consolidated operations and comprehensive loss, the Company incurred a net loss of $4,023 and $7,671 for the three months and six months ended June 30, 2020, respectively. At June 30, 2020, the Company had $19,658 in unrestricted cash and cash equivalents. In addition to its unrestricted cash and cash equivalents, the Company also has access to additional capital through its $10,000 related party revolving credit facility (Note 12).

Since its inception, the Company has received cumulative unrestricted net proceeds from the sale of its common stock (through its initial public offering and subsequent public offerings) of $168,361 to fund its operations. The Company maintains additional access to capital through its active shelf registration statement (Note 1) which allows for the sale of various equity or debt instruments up to an aggregate amount of $125,000. In June 2020, the Company entered into an Equity Distribution Agreement with Oppenheimer & Company, Inc. (“Oppenheimer”) pursuant to which Oppenheimer agreed to act as sales agent in the sale of up to $25,000 in the aggregate of ExOne common stock in “at-the-market offerings” as defined in Rule 415 under the Securities Act of 1933, as amended. Terms of the Equity Distribution Agreement require a 3.0% commission on the sale of ExOne common stock as well as reimbursement of certain expenses incurred by Oppenheimer. During the three months ended June 30, 2020, the Company sold 382,601 shares of common stock in at-the-market offerings at an average selling price of $8.86 per share resulting in net proceeds to the Company (after deducting commissions) of $3,288 (of which, at June 30, 2020, $362 remained unsettled and was included in prepaid expenses and other current assets in the accompanying condensed consolidated balance sheet, such net proceeds received by the Company in July 2020). During the three months ended June 30, 2020, the Company incurred expenses (other than commissions) associated with the at-the-market offerings of $190 (of which, at June 30, 2020, $158 were unpaid and included in accounts payable in the accompanying condensed consolidated balance sheet). There have been no sales of shares of common stock in at-the-market offerings subsequent to June 30, 2020. Future sales of securities in at-the-market offerings and the Company’s active shelf registration, if any, are dependent on market conditions, which may restrict the timing and extent of any future offering of securities by the Company.

In addition to net proceeds from the sale of its common stock, on April 18, 2020, the Company received additional unrestricted cash proceeds of $2,194 in connection with a Paycheck Protection Program loan (Note 13).

The Company has previously exhibited its ability to modify its operating structure and support its liquidity position through various restructuring and other actions, including its 2018 global cost realignment program. In response to adverse market conditions associated with COVID-19, beginning in March 2020 and through April 2020, the Company initiated various cost savings actions including a mix of employee terminations, furloughs and pay rate reductions, as well as reductions in consulting and other expenses, all in an effort to conserve cash and maintain adequate liquidity.  

Management believes that the Company’s existing capital resources will be sufficient to support the Company’s operating plan. If management anticipates that the Company’s actual results will differ from its operating plan, management believes it has sufficient capabilities to enact cost savings measures to preserve capital (in addition to those further discussed above). The Company may also seek to raise additional capital to support its growth through additional debt, equity or other alternatives (including asset sales) or a combination thereof.

7


Note 3. Accumulated Other Comprehensive Loss

The following table summarizes changes in the components of accumulated other comprehensive loss for the periods indicated:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Foreign currency translation adjustments