SYMBOLIC LOGIC, INC. SPECIAL NOTE ABOUT FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q contains forward-looking statements that have
been made pursuant to the provisions of the Private Securities Litigation Reform
Act of 1995. These forward-looking statements are based on current expectations,
estimates, and projections about Symbolic Logic's industry, management's
beliefs, and certain assumptions made by management. Forward-looking statements
include our expectations regarding product, services, and maintenance revenue,
annual savings associated with the organizational changes effected in
prior years, and short- and long-term cash needs. In some cases, words such as
"anticipates," "expects," "intends," "plans," "believes," "estimates,"
variations of these words, and similar expressions are intended to identify
forward-looking statements. In addition, statements about the potential effects
of the COVID-19 pandemic on the Company's businesses, results of operations and
financial condition may constitute forward-looking statements. The statements
are not guarantees of future performance and are subject to certain risks,
uncertainties, and assumptions that are difficult to predict; therefore, actual
results may differ materially from those expressed or forecasted in any
forward-looking statements. Risks and uncertainties of our business include
those set forth in our Annual Report on Form 10-K for the year ended
OVERVIEW
On
Simultaneously with the approval by the board of directors of the Company to execute the Purchase Agreements, the board formed a subcommittee of the board (the "Investment Committee") to evaluate options to maximize the value of the Company's assets, which, following the closing of the transactions contemplated under the Purchase Agreements, will consist primarily of cash and cash equivalents. The board of directors has authorized the Investment Committee to retain such counsel, experts, consultants or other professionals as the Investment Committee shall deem appropriate from time to time to aid the Investment Committee in the performance of its duties.
Following the sale of its assets in real-time digital engagement solutions and
services in
RECENT DEVELOPMENTS
We reported a net loss from continuing operations of
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COVID-19
The COVID-19 global outbreak caused instability and volatility in multiple markets throughout the world. We have leveraged our ability to work remotely resulting in limited effect on our day to day operations.
NAME CHANGE
On
NASDAQ
On
On
TENDER OFFERING
On
GOING CONCERN
We believe our current liquidity from the Purchase Agreements will be sufficient
to fund operations and meet the Company's cash needs for future working capital
and capital expenditure requirements for at least the next twelve months from
the date of issuance of these condensed consolidated financial statements. In
making this assessment, we considered our
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RESULTS OF OPERATIONS
The following table presents our condensed consolidated statements of operations
in comparative format:
For the Three Months Ended June 30,
2022 2021 Change %
(in thousands, except percentages)
Revenue $ - $ - $ - 0.00 %
OPERATING EXPENSES
General and administrative 936 726 210 28.93 %
Depreciation 1 - 1 0.00 %
Total operating expenses 937 726 211 29.06 %
Loss from operations (937) (726) (211) 29.06 %
Other income (expense)
Interest income 243 2 241 12050.00 %
Interest expense - - - (100.00) %
Other income (expense), net (105) 318 (423) (133.02) %
Realized gain on investments, net 291 - 291 100.00 %
Unrealized loss on investments, net (1,660) - (1,660) 100.00 %
Other income (expense), net (1,231) 320 (1,551) (484.69) %
Loss from continuing operations before
income taxes (2,168) (406) (1,762) 433.99 %
Income tax expense (benefit) (6) 24 (30) (125.00) %
Net loss from continuing operations (2,162) (430) (1,732) 402.79 %
Income from discontinued operations before
income taxes - 1,505 (1,505) (100.00) %
Income tax expense (benefit) from
discontinued operations - 122 (122) (100.00) %
Net income from discontinued operations - 1,383 (1,383) (100.00) %
Net (loss) income $ (2,162) $ 953 $ (3,115) (326.86) %
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For the Six Months Ended June 30,
2022 2021 Change %
(in thousands, except percentages)
Revenue $ - $ - $ - 100.00 %
OPERATING EXPENSES
General and administrative 2,088 1,658 430 25.93 %
Depreciation 1 1 - 0.00 %
Total operating expenses 2,089 1,659 430 25.92 %
Loss from operations (2,089) (1,659) (430) 25.92 %
Other income (expense)
Interest income 579 2 577 28850.00 %
Interest expense (2) - (2) (100.00) %
Other income (expense), net (91) (1) (90) 9000.00 %
Realized gain on investments, net 394 - 394 100.00 %
Unrealized loss on investments, net (1,558) - (1,558) 100.00 %
Other income (expense), net (678) 1 (679) (67900.00) %
Loss from continuing operations before
income taxes (2,767) (1,658) (1,109) 66.89 %
Income tax expense (benefit) (65) 8 (73) (912.50) %
Net loss from continuing operations (2,702) (1,666) (1,036) 62.18 %
Income from discontinued operations before
income taxes - 1,916 (1,916) (100.00) %
Income tax expense (benefit) from
discontinued operations (49) 213 (262) (123.00) %
Net income from discontinued operations 49 1,703 (1,654) (97.12) %
Net (loss) income $ (2,653) $ 37 $ (2,690) 7270.27 %
Expenses from Continuing Operations
General and Administrative
General and administrative expenses consist principally of employee-related
costs for the following departments: finance, human resources, and certain
executive management; facilities costs; and professional and legal fees. General
and administrative expenses increased
General and administrative expenses increased
Depreciation
Depreciation expense consists of depreciation of long-lived property and
equipment. Depreciation expense remained constant at less than
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Non-Operating Income and Expenses
Interest Expense
Interest expense remained constant at less than
Interest Income and Total Other Income (Expense), net
There was interest income and other income of
For the six months ended
Realized Gain on Investments, net
Realized gain on investments, net consists of available for sale and equity
securities. Realized gain on investments, net increased
Unrealized Loss on Investments, net
Unrealized loss on investments, net increased
Income Taxes
We recorded net income tax benefit from continuing operations of less than
We use a recognition threshold and a measurement attribute for the financial
statement recognition and measurement of tax positions taken or expected to be
taken in a tax return. For those benefits to be recognized, a tax position must
be more-likely-than-not to be sustained upon examination by taxing authorities.
As of
Discontinued Operations
On
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FINANCIAL CONDITION
Our working capital position decreased by
LIQUIDITY AND CAPITAL RESOURCES
We have historically financed operations through cash flows from operations and
bank borrowings. On
Net cash used in operating activities for the six months ended
Net cash used in investing activities for the six months ended
Net cash used in financing activities for the six months ended
We believe that our current cash and cash equivalents, together with anticipated cash flow from operations will be sufficient to meet our working capital and capital expenditure requirements for at least the next twelve months from the date of issuance of this Quarterly Report on Form 10-Q. In making this assessment we considered the following:
? Our cash and cash equivalents balance at
? Our working capital balance at
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements that have a material current effect or that are reasonably likely to have a material future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.
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