Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

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Consolidated Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Operating activities:    
Net loss $ (167,042,000) $ (106,200,000)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities    
Depreciation and amortization 58,363,000 54,499,000
Amortization of deferred financing costs 2,204,000 2,427,000
Loss on extinguishment of debt 2,584,000 0
Goodwill impairment 78,257,000 58,074,000
Stock-based compensation expense 11,251,000 10,296,000
Deferred income taxes (11,412,000) (16,189,000)
Amortization of operating lease right-of-use assets 2,331,000 2,218,000
Other 100,000 429,000
Changes in operating assets and liabilities, net of acquisitions:    
Accounts receivable (7,707,000) 8,962,000
Inventories 1,973,000 6,542,000
Prepaid expenses and other assets (87,000) (1,992,000)
Accounts payable and accrued liabilities 12,968,000 (1,968,000)
Deferred revenue 1,175,000 980,000
Operating lease liabilities (1,847,000) (1,468,000)
Other assets and liabilities 1,504,000 0
Net cash (used in) provided by operating activities (6,419,000) 16,356,000
Investing activities:    
Purchases of property and equipment (4,433,000) (3,307,000)
Additions to intangible assets (15,797,000) (13,238,000)
Acquisitions of business combinations, net of cash acquired 0 (46,002,000)
Net cash used in investing activities (20,230,000) (62,547,000)
Financing activities:    
Proceeds from issuance of debt 185,000,000 0
Payment of original issue discount (4,200,000) 0
Payment of deferred financing costs (6,853,000) (356,000)
Repayment of debt (304,847,000) (4,188,000)
Purchase of treasury stock (2,754,000) 0
Principal payments under finance lease obligations (123,000) (150,000)
Private offering and merger financing refund 231,000 0
Payment of employee tax withholdings through cancelled shares of stock (405,000) 0
Net cash provided by (used in) financing activities 18,906,000 (4,694,000)
Effect of exchange rate changes on cash 173,000 (451,000)
Net decrease in cash and restricted cash (7,570,000) (51,336,000)
Cash and restricted cash, beginning of year 35,007,000 86,343,000
Cash and restricted cash, end of year 27,437,000 35,007,000
Supplemental cash flow information:    
Cash paid for interest 35,330,000 29,199,000
Cash paid for income taxes (net of refunds) 5,718,000 2,119,000
Non-cash investing and financing activities:    
Fair value of KORE common stock issued pursuant to acquisition 14,700,000 23,295,000
Issuance of penny warrants 5,195,000 0
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities 1,636,000 3,409,000
ASU 2020-06 Adoption 0 15,163,000
Operating lease right-of-use assets obtained in exchange for new operating lease liabilities upon the adoption of ASC 842 0 9,604,000
Premium finance agreement 0 3,621,000
Affiliate    
Adjustments to reconcile net loss to net cash (used in) provided by operating activities    
Change in fair value of warrant liabilities to affiliates 6,436,000 (254,000)
Changes in operating assets and liabilities, net of acquisitions:    
Accrued interest due to affiliate 2,530,000 0
Financing activities:    
Proceeds from mandatorily redeemable preferred stock due to affiliate $ 152,857,000 $ 0