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Captivision Reports Half-Year Results for 2024
CAPTCaptivision(CAPT) GlobeNewswire News Room·2024-09-30 11:00

Core Viewpoint - Captivision Inc. reported a strong financial performance for the first half of 2024, with significant revenue growth and improved gross margins, while also restructuring its operations and strengthening its balance sheet through various financing activities [2][4][8]. Financial Performance - Revenue for the first half of 2024 increased by 22% to 15.3millioncomparedto15.3 million compared to 12.6 million in the same period of 2023 [2][4]. - Gross margin improved to 56% in the first half of 2024, up from 50% in the same period of 2023, primarily due to the completion of significant projects [2][6]. - Cost of sales rose by 7% to 6.8million,drivenbyhigherproductsalesandcompletedinstallations[5].−Sellingandadministrativeexpensessurgedby2236.8 million, driven by higher product sales and completed installations [5]. - Selling and administrative expenses surged by 223% to 16.1 million, largely due to increased legal, accounting, and compliance costs associated with the company's transition to a public entity [7]. - The net loss for the first half of 2024 was 9.3million,comparedtoanetprofitof9.3 million, compared to a net profit of 0.5 million in the same period of 2023, primarily due to increased selling and administrative expenses [8]. Financing Activities - Captivision raised approximately 8.3millionthroughequityanddebtfinancings,including8.3 million through equity and debt financings, including 4.1 million from three equity financings at an average price of 3.68pershare[2].−Thecompanyconvertedapproximately3.68 per share [2]. - The company converted approximately 4.2 million of outstanding debt into equity at a price of 3.00pershare[2].−Additionalfinancingincludedapproximately3.00 per share [2]. - Additional financing included approximately 2.2 million in debt financing and 2.0millionthroughanequitylineofcredit[2].OperationalDevelopments−ThecompanystreamlineditsEuropeanandMiddleEasternsalesfunctionsbydisposingofitsEuropeansalesaffiliateandpartiallyownedsubsidiary,G−SMATTEurope,whileconvertingoutstandingdebtandthird−partyequityholderstoCaptivisionequity[2].−Captivisionisfocusingonpartnershipswithleadingcompaniesinentertainment,hospitality,andgaming,withnotablecollaborationsincludingtheMoheganINSPIREEntertainmentResortandActivision′sCallofDuty:Mobile[3].LiquidityPosition−AsofJune30,2024,Captivisionhadcashandcashequivalentsof2.0 million through an equity line of credit [2]. Operational Developments - The company streamlined its European and Middle Eastern sales functions by disposing of its European sales affiliate and partially owned subsidiary, G-SMATT Europe, while converting outstanding debt and third-party equity holders to Captivision equity [2]. - Captivision is focusing on partnerships with leading companies in entertainment, hospitality, and gaming, with notable collaborations including the Mohegan INSPIRE Entertainment Resort and Activision's Call of Duty: Mobile [3]. Liquidity Position - As of June 30, 2024, Captivision had cash and cash equivalents of 0.7 million and net trade receivables of $9.4 million, indicating a need for careful liquidity management [9]. Company Overview - Captivision is a manufacturer of architectural media glass and LED solutions, with applications across various sectors including entertainment, marketing, and cultural content [10]. - The company's media glass solutions have been implemented in numerous global locations, including sports stadiums, casinos, and hotels [11].