Annual report pursuant to Section 13 and 15(d)

Quarterly Unaudited Financial Statements (Tables)

v3.23.1
Quarterly Unaudited Financial Statements (Tables)
 12 Months Ended
Dec. 31, 2022
Accounting Changes and Error Corrections [Abstract]  
Schedule of Quarterly Revisions The following tables present the impact of the revisions on our annual consolidated financial statements for the year ended December 31, 2021, including the impact to the accumulated other comprehensive income (loss) and the accumulated deficit balances as of December 31, 2020. The revised unaudited interim consolidated financial statements are included in Note 17 to the consolidated financial statements.
KORE Group Holdings, Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands USD, except share and per share amounts)
December 31, 2021
As previously reported Income tax adjustments Indirect tax adjustments Other adjustments* As revised
Assets
Current assets
Cash $ 85,976  —  —  —  $ 85,976 
Accounts receivable, net 51,304  —  —  311  51,615 
Inventories, net 15,470  —  —  —  15,470 
Income taxes receivable 954  —  —  (20) 934 
Prepaid expenses and other receivables 7,448  —  —  (85) 7,363 
Total current assets 161,152  —  —  206  161,358 
Non-current assets
Restricted cash 367  —  —  —  367 
Property and equipment, net 12,240  —  —  —  12,240 
Intangibles assets, net 203,474  —  —  (924) 202,550 
Goodwill 381,962  —  —  1,453  383,415 
Other long-term assets 407  —  —  —  407 
Total assets $ 759,602  $ —  $ —  $ 735  $ 760,337 
Liabilities and stockholders’ equity
Current liabilities
Accounts payable $ 16,004  —  —  —  $ 16,004 
Accrued liabilities 21,311  —  —  1,042  22,353 
Income taxes payable 467  —  —  —  467 
Current portion of capital lease obligations 191  —  —  (191) — 
Deferred revenue 6,889  —  —  —  6,889 
Current portion of long-term debt and other borrowings, net 3,326  —  —  —  3,326 
Total current liabilities 48,188  —  —  851  49,039 
Non-current liabilities
Deferred tax liabilities 36,722  1,435  —  (232) 37,925 
Warrant liability 286  —  —  —  286 
Capital lease obligations 264  —  —  (264) — 
Long-term debt and other borrowings, net 399,115  —  —  —  399,115 
Other long-term liabilities 2,884  1,994  1,257  315  6,450 
Total liabilities $ 487,459  $ 3,429  $ 1,257  $ 670  $ 492,815 
Stockholders’ equity
Common stock, voting; par value $0.0001 per share; 315,000,000 shares authorized, 72,027,743 shares issued and outstanding at December 31, 2021
 $ 7  —  —  —  $ 7 
Additional paid-in capital 413,646  —  —  (331) 413,315 
Accumulated other comprehensive loss (3,331) (46) —  (86) (3,463)
Accumulated deficit (138,179) (3,383) (1,257) 482  (142,337)
Total stockholders’ equity 272,143  (3,429) (1,257) 65  267,522 
Total liabilities and stockholders’ equity $ 759,602  $ —  $ —  $ 735  $ 760,337 
*Certain reclassifications have been made to the 2021 consolidated balance sheet to conform to the 2022 presentation for leases.
KORE Group Holdings, Inc. and Subsidiaries
Consolidated Statements of Operations
(In thousands USD, except share and per share amounts)

December 31, 2021
As previously reported Income tax adjustments Indirect tax adjustments Other Adjustments As Revised
Revenue
Services $ 187,962  $ —  $ —  $ 218  $ 188,180 
Products 60,255  —  —  —  60,255 
Total revenue 248,217  —  —  218  248,435 
Cost of revenue
Cost of services 69,867  —  —  (482) 69,385 
Cost of products 52,357  —  —  (382) 51,975 
Total cost of revenue (exclusive of depreciation and amortization shown separately below) 122,224  —  —  (864) 121,360 
Operating expenses — 
Selling, general and administrative 91,733  —  457  113  92,303 
Depreciation and amortization 50,414  —  —  (83) 50,331 
Total operating expenses 142,147  —  457  30  142,634 
Operating loss (16,154) —  (457) 1,052  (15,559)
Interest expense, including amortization of deferred financing costs, net 23,260  —  —  —  23,260 
Change in fair value of warrant liability (5,267) —  —  —  (5,267)
Loss before income taxes (34,147) —  (457) 1,052  (33,552)
Income tax expense (benefit) (9,694) 732  —  186  (8,776)
Net loss $ (24,453) $ (732) $ (457) $ 866  $ (24,776)
Loss per share:
Basic $ (1.03) $ (0.02) $ (0.01) $ 0.02  $ (1.04)
Diluted $ (1.03) $ (0.02) $ (0.01) $ 0.02  $ (1.04)
Weighted average shares outstanding (in Number):
Basic 41,933,050  —  —  —  41,933,050 
Diluted 41,933,050  —  —  —  41,933,050 
KORE Group Holdings, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Loss
(In thousands USD)
December 31, 2021
As previously reported Income tax adjustments Indirect tax adjustments Other Adjustments As Revised
Net loss $ (24,453) $ (732) $ (457) $ 866  $ (24,776)
Other comprehensive income (loss):  
Foreign currency translation adjustment (1,654) 53  —  (300) (1,901)
Comprehensive loss $ (26,107) $ (679) $ (457) $ 566  $ (26,677)
KORE Group Holdings, Inc. and Subsidiaries
Consolidated Statements of Temporary Equity and Stockholders’ Equity
(In thousands, USD, except share amounts)
Series A Preferred
Stock 		Series A-1
Preferred Stock 		Series B Preferred
Stock 		Series C Convertible
Preferred Stock 		Total
Temporary
Equity 		Common Stock Additional
paid-in
capital 		Accumulated
Other
Comprehensive
Income (Loss) 		Accumulated
Deficit 		Total
Stockholders’
Equity
Temporary Equity
Shares Amount Shares Amount Shares Amount Shares Amount Amount Shares Amount Amount Amount Amount Amount
As Reported
Balance at December 31, 2020 7,756,158  $ 77,562  7,862,107  $ 78,621  9,090,975  $ 90,910  2,566,186  $ 16,802  $ 263,895  30,281,520  $ 3  $ 135,616  $ (1,677) $ (113,726) $ 20,216 
Derecognition of shares —  —  —  —  —  —  (45,818) (300) (300) —  —  —  —  —  — 
Accrued dividends payable 765,609  7,656  824,076  8,241  692,543  6,925  —  —  22,822  —  —  (22,822) —  —  (22,822)
Foreign currency translation adjustment —  —  —  —  —  —  —  —  —  —  —  —  (1,654) —  (1,654)
Share-based compensation —  —  —  —  —  —  —  —  —  200,426  —  (1,856) —  —  (1,856)
Distributions to and conversions of preferred stock (8,521,767) (85,218) (8,686,183) (86,862) (9,783,518) (97,835) (2,520,368) (16,502) (286,417) 7,120,368  1  56,502  —  —  56,503 
CTAC shares recapitalized, net of equity issuance costs of $15,943
 —  —  —  —  —  —  —  —  —  10,373,491  1  6,428  —  —  6,429 
Conversion of KORE warrants —  —  —  —  —  —  —  —  —  1,365,612  —  10,663  —  —  10,663 
Private offering and merger financing, net of equity issuance costs of $8123
 —  —  —  —  —  —  —  —  —  22,686,326  2  216,875  —  —  216,877 
Equity portion of convertible debt, net of deferred financing costs of $384, net of sponsor shares of $683, net of deferred tax liability of $3,999
 —  —  —  —  —  —  —  —  —  —  —  12,240  —  —  12,240 
Net loss —  —  —  —  —  —  —  —  —  —  —  —  —  (24,453) (24,453)
Balance at December 31, 2021 —  $ —  —  $ —  —  $ —  —  $ —  $ —  72,027,743  $ 7  $ 413,646  $ (3,331) $ (138,179) $ 272,143 
Adjustments
Balance, December 31, 2020 —  —  —  —  —  —  (45,818) (300) (300) —  —  —  115  (3,835) (3,720)
Derecognition of shares —  —  —  —  —  —  45,818  300  300  —  —  —  —  —  — 
Foreign currency translation adjustment —  —  —  —  —  —  —  —  —  —  —  —  (247) —  (247)
Private offering and merger financing —  —  —  —  —  —  —  —  —  —  —  (331) —  —  (331)
Net loss —  —  —  —  —  —  —  —  —  —  —  —  —  (323) (323)
Total Adjustments —  —  —  —  —  —  —  —  —  —  —  $ (331) $ (132) $ (4,158) $ (4,621)
As Revised
Balance at December 31, 2020 7,756,158  77,562  7,862,107  78,621  9,090,975  90,910  2,520,368  16,502  263,595  30,281,520  3  135,616  (1,562) (117,561) 16,496 
Derecognition of shares —  —  —  —  —  —  —  —  —  —  —  —  —  —  — 
Accrued dividends payable 765,609  7,656  824,076  8,241  692,543  6,925  —  —  22,822  —  —  (22,822) —  —  (22,822)
Foreign currency translation adjustment —  —  —  —  —  —  —  —  —  —  —  —  (1,901) —  (1,901)
Share-based compensation —  —  —  —  —  —  —  —  —  200,426  —  (1,856) —  —  (1,856)
Distributions to and conversions of preferred stock (8,521,767) (85,218) (8,686,183) (86,862) (9,783,518) (97,835) (2,520,368) (16,502) (286,417) 7,120,368  1  56,502  —  —  56,503 
CTAC shares recapitalized, net of equity issuance costs of $15,943
 —  —  —  —  —  —  —  —  —  10,373,491  1  6,428  —  —  6,429 
Conversion of KORE warrants —  —  —  —  —  —  —  —  —  1,365,612  —  10,663  —  —  10,663 
Private offering and merger financing, net of equity issuance costs of $8123
 —  —  —  —  —  —  —  —  —  22,686,326  2  216,544  —  —  216,546 
Equity portion of convertible debt, net of deferred financing costs of $384, net of sponsor shares of $683, net of deferred tax liability of $3,999
 —  —  —  —  —  —  —  —  —  —  —  12,240  —  —  12,240 
Net loss —  —  —  —  —  —  —  —  —  —  —  —  —  (24,776) (24,776)
Balance at December 31, 2021 —  $ —  —  $ —  —  $ —  —  $ —  $ —  72,027,743  $ 7  $ 413,315  $ (3,463) $ (142,337) $ 267,522 
KORE Group Holdings, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(In thousands USD)
December 31, 2021
As previously reported Income tax adjustments Indirect tax adjustments Other adjustments As Revised
Cash flows from operating activities
Net loss $ (24,453) $ (732) $ (457) $ 866  $ (24,776)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities
Depreciation and amortization 50,414  —  —  (83) 50,331 
Amortization of deferred financing costs 2,097  —  —  —  2,097 
Amortization of discount on Backstop Notes 424  —  —  —  424 
Deferred income taxes (9,871) 323  (143) (9,691)
Non-cash foreign currency loss 344  —  —  —  344 
Share-based compensation 4,564  —  —  —  4,564 
Provision for doubtful accounts 322  —  —  —  322 
Change in fair value of warrant liability (5,267) —  —  —  (5,267)
Change in operating assets and liabilities, net of operating assets and liabilities acquired:
Accounts receivable (11,884) —  —  (218) (12,102)
Inventories (9,875) —  —  —  (9,875)
Prepaid expenses and other receivables (1,700) —  —  456  (1,244)
Accounts payable and accrued liabilities (8,371) 409  457  (914) (8,419)
Deferred revenue (805) —  —  —  (805)
Income taxes payable (697) —  —  36  (661)
Cash used in operating activities $ (14,758) $ —  $ —  $ —  $ (14,758)
Cash flows used in investing activities  
Additions to intangible assets (9,247) —  —  —  (9,247)
Additions to property and equipment (4,172) (4,172)
Net cash (used) in investing activities $ (13,419) $ —  $ —  $ —  $ (13,419)
Cash flows from financing activities
Proceeds from revolving credit facility 25,000  —  —  —  25,000 
Repayment on revolving credit facility (25,000) —  —  —  (25,000)
Repayment of term loan (3,161) —  —  —  (3,161)
Repayment of other borrowings - notes payable (173) —  —  —  (173)
Proceeds from convertible debt 104,167  —  —  —  104,167 
Proceeds from equity portion of convertible debt, net of issuance costs 15,697  —  —  —  15,697 
Payment of deferred financing costs (1,579) —  —  —  (1,579)
Repayment of related party note (1,538) —  —  —  (1,538)
Proceeds from CTAC and PIPE financing, net of issuance costs 223,688  —  —  —  223,688 
Settlements of preferred shares (229,915) —  —  —  (229,915)
Payment of capital lease obligations (828) —  —  —  (828)
Payment of stock option share employee withholding taxes (2,305) —  —  —  (2,305)
Cash provided by/(used in) financing activities $ 104,053  $ —  $ —  $ —  $ 104,053 
Effect of Exchange Rate Change on Cash (226) —  —  —  (226)
December 31, 2021
As previously reported Income tax adjustments Indirect tax adjustments Other adjustments As Revised
Change in Cash and Restricted Cash 75,650  —  —  —  75,650 
Cash and Restricted Cash, beginning of period 10,693  —  —  —  10,693 
Cash and Restricted Cash, end of period $ 86,343  $ —  $ —  $ —  $ 86,343 
Non-cash investing and financing activities:
Equity financing fees accrued $ 3,602  $ —  $ —  $ —  $ 3,602 
Common shares issued to preferred shareholders 56,502  —  —  —  56,502 
Equity financing fees settled in common shares 1,863  —  —  —  1,863 
Common shares issued to warrant holders 10,663  —  —  —  10,663 
Common shares issued to option holders pursuant to the Cancellation Agreements 1,072  —  —  —  1,072 
Sponsor shares distributed to lender under Backstop Agreement 683  —  —  —  683 
Supplemental cash flow information:
Interest paid $ 19,874  $ —  $ —  $ —  $ 19,874 
Taxes paid (net of refunds) 957  —  —  —  957 
The following tables present the impact of the revisions on the unaudited interim consolidated financial statements.
KORE Group Holdings, Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands USD, except share amounts)
March 31, 2022
As previously reported Income tax adjustments Indirect tax adjustments Other adjustments Revised
Assets
Current assets
Cash $ 31,914  $ —  $ —  $ —  $ 31,914 
Accounts receivable, net 57,073  —  —  366  57,439 
Inventories, net 12,069  —  —  (280) 11,789 
Income taxes receivable 1,239  —  —  (14) 1,225 
Prepaid expenses and other current assets 7,660  —  —  (386) 7,274 
Total current assets $ 109,955  $ —  $ —  $ (314) $ 109,641 
Non-current assets
Restricted cash 370  —  —  —  370 
Property and equipment, net 12,167  —  —  —  12,167 
Intangibles assets, net 222,759  —  —  (903) 221,856 
Goodwill 426,700  —  —  1,453  428,153 
Operating lease right-of-use assets 9,050  —  —  (485) 8,565 
Other long-term assets 401  —  —  —  401 
Total assets $ 781,402  $ —  $ —  $ (249) $ 781,153 
Liabilities and stockholders’ equity
Current liabilities
Accounts payable $ 19,901  $ —  $ —  $ —  $ 19,901 
Accrued liabilities 11,424  —  —  252  11,676 
Current portion of operating lease liabilities 2,027  —  —  (384) 1,643 
Income taxes payable 959  —  —  (405) 554 
Deferred revenue 7,020  —  —  —  7,020 
Current portion of long-term debt and other borrowings, net 3,206  —  —  —  3,206 
Total current liabilities $ 44,537  $ —  $ —  $ (537) $ 44,000 
Non-current liabilities
Deferred tax liabilities 36,443  1,627  —  126  38,196 
Warrant liability 259  —  —  —  259 
Non-current portion of operating lease liabilities 7,430  —  —  —  7,430 
Long-term debt and other borrowings, net 414,026  —  —  —  414,026 
Other long-term liabilities 3,624  2,112  1,335  313  7,384 
Total liabilities $ 506,319  $ 3,739  $ 1,335  $ (98) $ 511,295 
Stockholders’ equity
Common stock $ 8  $ —  $ —  $ —  $ 8 
Additional paid-in capital 427,377  —  —  (331) 427,046 
Accumulated other comprehensive loss (3,515) 15  —  (86) (3,586)
Accumulated deficit (148,787) (3,754) (1,335) 266  (153,610)
Total stockholders’ equity $ 275,083  $ (3,739) $ (1,335) $ (151) $ 269,858 
Total liabilities and stockholders’ equity $ 781,402  $ —  $ —  $ (249) $ 781,153 
KORE Group Holdings, Inc. and Subsidiaries
Consolidated Statements of Operations
(In thousands USD, except share and per share amounts) (unaudited)
For the three months ended
March 31, 2022
As previously reported Income tax adjustments Indirect tax adjustments Other adjustments Revised
Revenue
Services $ 47,506  $ —  $ —  $ 37  $ 47,543 
Products 21,435  —  —  —  21,435 
Total revenue 68,941  —  —  37  68,978 
Cost of revenue
Cost of services 17,529  —  —  21  17,550 
Cost of products 17,443  —  —  280  17,723 
Total cost of revenue (exclusive of depreciation and amortization shown separately below) 34,972  —  —  301  35,273 
Operating expenses
Selling, general and administrative 27,628  —  79  10  27,717 
Depreciation and amortization 13,196  —  —  (21) 13,175 
Total operating expenses 40,824  —  79  (11) 40,892 
Operating income (loss) (6,855) —  (79) (253) (7,187)
Interest expense, including amortization of deferred financing costs, net 6,624  —  —  —  6,624 
Change in fair value of warrant liability (27) —  —  —  (27)
Loss before income taxes (13,452) —  (79) (253) (13,784)
Income tax expense (benefit) (2,545) 371  —  (38) (2,212)
Net loss $ (10,907) $ (371) $ (79) $ (215) $ (11,572)
Loss per share:
Basic $(0.15) $(0.01) $0.00 $0.00 $(0.16)
Diluted $(0.15) $(0.01) $0.00 $0.00 $(0.16)
Weighted average number of shares outstanding:
Basic 74,040,261 —  —  —  74,040,261 
Diluted 74,040,261 —  —  —  74,040,261 
KORE Group Holdings, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Loss
(In thousands USD) (unaudited)

For the three months ended
March 31, 2022
As previously reported Income tax adjustments Indirect tax adjustments Other adjustments Revised
Net loss $ (10,907) $ (371) $ (79) $ (215) $ (11,572)
Other comprehensive loss:  
Foreign currency translation adjustment (184) 61  —  —  (123)
Comprehensive loss $ (11,091) $ (310) $ (79) $ (215) $ (11,695)
KORE Group Holdings, Inc. and Subsidiaries
Consolidated Statements of Stockholders’ Equity
(In thousands, USD, except share amounts) (unaudited)
Common Stock Additional
paid-in capital 		Accumulated
Other
Comprehensive
Loss 		Accumulated
Deficit 		Total
Stockholders’
Equity
Shares Amount Amount Amount Amount Amount
As Reported
Balance at December 31, 2021 72,027,743  $ 7  $ 413,646  $ (3,331) $ (138,179) $ 272,143 
Opening balance sheet adjustment (as previously reported) —  —  (11,613) —  299  (11,314)
Balance at December 31, 2021 - Adjusted 72,027,743  7  402,033  (3,331) (137,880) 260,829 
Foreign currency translation adjustment —  —  —  (184) —  (184)
Stock-based compensation —  —  2,050  —  —  2,050 
Common stock issued pursuant to acquisition 4,212,246  1  23,294  —  —  23,295 
Net loss —  —  —  —  (10,907) (10,907)
Balance at March 31, 2022 76,239,989  $ 8  $ 427,377  $ (3,515) $ (148,787) $ 275,083 
Adjustments
Balance, December 31, 2021 —  —  (331) (132) (4,158) (4,621)
March 31, 2022 —  —  —  —  —  — 
Foreign currency translation adjustment —  —  —  61  —  61 
Net loss —  —  —  —  (665) (665)
Total Adjustments - March 31, 2022 —  $ —  $ (331) $ (71) $ (4,823) $ (5,225)
As Revised
Balance at December 31, 2021 72,027,743  7  413,315  (3,463) (142,337) 267,522 
Opening balance sheet adjustment (as previously reported) —  —  (11,613) —  299  (11,314)
Balance at December 31, 2021 72,027,743  7  401,702  (3,463) (142,038) 256,208 
Foreign currency translation adjustment —  —  —  (123) —  (123)
Stock-based compensation —  —  2,050  —  —  2,050 
Common stock issued pursuant to acquisition 4,212,246  1  23,294  —  —  23,295 
Net loss —  —  —  —  (11,572) (11,572)
Balance at March 31, 2022 76,239,989  $ 8  $ 427,046  $ (3,586) $ (153,610) $ 269,858 
KORE Group Holdings, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(In thousands USD) (unaudited)
For the three months ended
March 31, 2022
As previously reported Income tax adjustments Indirect tax adjustments Other adjustments Revised
Cash flows from operating activities
Net loss $ (10,907) $ (371) $ (79) $ (215) $ (11,572)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization 13,196  —  —  (21) 13,175 
Amortization of deferred financing costs 587  —  —  —  587 
Non-cash reduction to the operating lease right-of-use assets 587  —  —  —  587 
Deferred income taxes (3,851) 196  —  359  (3,296)
Non-cash foreign currency loss (3) —  —  —  (3)
Share-based compensation 2,050  —  —  —  2,050 
Provision for doubtful accounts 55  —  —  —  55 
Change in fair value of warrant liability (27) —  —  —  (27)
Change in operating assets and liabilities, net of operating assets and liabilities acquired:
Accounts receivable (2,580) —  —  (55) (2,635)
Inventories 4,714  —  —  280  4,994 
Prepaid expenses and other receivables 806  —  —  785  1,591 
Accounts payable and accrued liabilities (8,428) 175  79  (337) (8,511)
Deferred revenue 132  —  —  —  132 
Income taxes payable 199  —  —  (412) (213)
Operating lease liabilities (510) —  —  (384) (894)
Net cash used in operating activities $ (3,980) $ —  $ —  $ —  $ (3,980)
Net cash used in investing activities $ (48,503) $ —  $ —  $ —  $ (48,503)
Net cash used in financing activities $ (1,550) $ —  $ —  $ —  $ (1,550)
Effect of Exchange Rate Change on Cash and Restricted Cash (26) —  —  —  (26)
Change in Cash and Restricted Cash (54,059) —  —  —  (54,059)
Cash and Restricted Cash, beginning of period 86,343  —  —  —  86,343 
Cash and Restricted Cash, end of period $ 32,284  $ —  $ —  $ —  $ 32,284 
KORE Group Holdings, Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands USD, except share amounts)
June 30, 2022
As previously reported Income tax adjustments Indirect tax adjustments Other adjustments Revised
Assets
Current assets
Cash $ 40,441  $ —  $ —  $ —  $ 40,441 
Accounts receivable, net 50,767  —  —  277  51,044 
Inventories, net 9,897  —  —  —  9,897 
Income taxes receivable 712  —  —  189  901 
Prepaid expenses and other receivables 9,089  —  —  (386) 8,703 
Total current assets 110,906  —  —  80  110,986 
Non-current assets
Restricted cash 363  —  —  —  363 
Property and equipment, net 11,890  —  —  —  11,890 
Intangibles assets, net 211,829  —  —  (883) 210,946 
Goodwill 426,126  —  —  1,453  427,579 
Operating lease right-of-use assets 7,914  —  —  196  8,110 
Other long-term assets 381  —  —  —  381 
Total assets $ 769,409  $ —  $ —  $ 846  $ 770,255 
Liabilities and stockholders’ equity
Current liabilities
Accounts payable $ 19,288  $ —  $ —  $ —  $ 19,288 
Accrued liabilities 15,348  —  —  312  15,660 
Current portion of operating lease liabilities 1,764  —  —  212  1,976 
Income taxes payable 502  —  —  (502) — 
Deferred revenue 7,698  —  —  (684) 7,014 
Current portion of long-term debt and other borrowings, net 3,165  —  —  —  3,165 
Total current liabilities 47,765  —  —  (662) 47,103 
Non-current liabilities
Deferred tax liabilities 32,618  1,801  —  615  35,034 
Warrant liability 153  —  —  —  153 
Non-current portion of operating lease liabilities 6,852  —  —  —  6,852 
Long-term debt and other borrowings, net 413,788  —  —  —  413,788 
Other long-term liabilities 4,349  2,102  1,414  264  8,129 
Total liabilities $ 505,525  $ 3,903  $ 1,414  $ 217  $ 511,059 
Stockholders’ equity
Common stock $ 8  $ —  $ —  $ —  $ 8 
Additional paid-in capital 429,878  —  —  (331) 429,547 
Accumulated other comprehensive loss (6,074) 201  —  (86) (5,959)
Accumulated deficit (159,928) (4,104) (1,414) 1,046  (164,400)
Total stockholders’ equity $ 263,884  $ (3,903) $ (1,414) $ 629  $ 259,196 
Total liabilities and stockholders’ equity $ 769,409  $ —  $ —  $ 846  $ 770,255 
KORE Group Holdings, Inc. and Subsidiaries
Consolidated Statements of Operations
(In thousands USD, except share and per share amounts) (unaudited)
For the three months ended
June 30, 2022
As previously reported Income tax adjustments Indirect tax adjustments Other adjustments Revised
Revenue
Services $ 47,778  $ —  $ —  $ 27  $ 47,805 
Products 22,575  —  —  541  23,116 
Total revenue 70,353  —  —  568  70,921 
Cost of revenue
Cost of services 16,577  —  —  33  16,610 
Cost of products 17,298  —  —  (280) 17,018 
Total cost of revenue (exclusive of depreciation and amortization shown separately below) 33,875  —  —  (247) 33,628 
Operating expenses
Selling, general and administrative 29,413  —  79  (85) 29,407 
Depreciation and amortization 13,774  —  —  (21) 13,753 
Total operating expenses 43,187  —  79  (106) 43,160 
Operating income (loss) (6,709) —  (79) 921  (5,867)
Interest expense, including amortization of deferred financing costs, net 7,297  —  —  —  7,297 
Change in fair value of warrant liability (106) —  —  —  (106)
Loss before income taxes (13,900) —  (79) 921  (13,058)
Income tax expense (benefit) (2,759) 350  —  141  (2,268)
Net loss $ (11,141) $ (350) $ (79) $ 780  $ (10,790)
Loss per share:
Basic $(0.15) $0.00 $0.00 $0.01 $(0.14)
Diluted $(0.15) $0.00 $0.00 $0.01 $(0.14)
Weighted average number of shares outstanding:
Basic 76,239,989 —  —  —  76,239,989
Diluted 76,239,989 —  —  —  76,239,989
KORE Group Holdings, Inc. and Subsidiaries
Consolidated Statements of Operations
(In thousands USD, except share and per share amounts) (unaudited)
For the six months ended
June 30, 2022
As previously reported Income tax adjustments Indirect tax adjustments Other adjustments Revised
Revenue
Services $ 95,284  $ —  $ —  $ 64  $ 95,348 
Products 44,010  —  —  541  44,551 
Total revenue 139,294  —  —  605  139,899 
Cost of revenue
Cost of services 34,105  —  —  54  34,159 
Cost of products 34,741  —  —  —  34,741 
Total cost of revenue (exclusive of depreciation and amortization shown separately below) 68,846  —  —  54  68,900 
Operating expenses
Selling, general and administrative 57,042  —  158  (75) 57,125 
Depreciation and amortization 26,970  —  —  (42) 26,928 
Total operating expenses 84,012  —  158  (117) 84,053 
Operating income (loss) (13,564) —  (158) 668  (13,054)
Interest expense, including amortization of deferred financing costs, net 13,921  —  —  —  13,921 
Change in fair value of warrant liability (133) —  —  —  (133)
Loss before income taxes (27,352) —  (158) 668  (26,842)
Income tax expense (benefit) (5,304) 721  —  103  (4,480)
Net loss $ (22,048) $ (721) $ (158) $ 565  $ (22,362)
Loss per share:
Basic $(0.29) $(0.01) $0.00 $0.01 $(0.30)
Diluted $(0.29) $(0.01) $0.00 $0.01 $(0.30)
Weighted average number of shares outstanding:
Basic 75,146,201 —  —  —  75,146,201 
Diluted 75,146,201 —  —  —  75,146,201 
KORE Group Holdings, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Loss
(In thousands USD) (unaudited)
For the three months ended
June 30, 2022
As previously reported Income tax adjustments Indirect tax adjustments Other adjustments Revised
Net loss $ (11,141) $ (350) $ (79) $ 780  $ (10,790)
Other comprehensive loss:  
Foreign currency translation adjustment (2,559) 186  —  —  (2,373)
Comprehensive loss $ (13,700) $ (164) $ (79) $ 780  $ (13,163)



For the six months ended
June 30, 2022
As previously reported Income tax adjustments Indirect tax adjustments Other adjustments Revised
Net loss $ (22,048) $ (721) $ (158) $ 565  $ (22,362)
Other comprehensive loss:  
Foreign currency translation adjustment (2,743) 247  —  —  (2,496)
Comprehensive loss $ (24,791) $ (474) $ (158) $ 565  $ (24,858)
KORE Group Holdings, Inc. and Subsidiaries
Consolidated Statements of Stockholders’ Equity
(In thousands, USD, except share amounts) (unaudited)
Common Stock Additional
paid-in capital 		Accumulated
Other
Comprehensive
Loss 		Accumulated
Deficit 		Total
Stockholders’
Equity
Shares Amount Amount Amount Amount Amount
As Reported
Balance at December 31, 2021 72,027,743  7  413,646  (3,331) (138,179) 272,143 
Opening balance sheet adjustment (as previously reported) —  —  (11,613) —  299  (11,314)
Balance at December 31, 2021 - Adjusted 72,027,743  7  402,033  (3,331) (137,880) 260,829 
Foreign currency translation adjustment —  —  —  (184) —  (184)
Stock-based compensation —  —  2,050  —  —  2,050 
Common stock issued pursuant to acquisition 4,212,246  1  23,294  —  —  23,295 
Net loss —  —  —  —  (10,907) (10,907)
Balance at March 31, 2022 76,239,989  8  427,377  (3,515) (148,787) 275,083 
Foreign currency translation adjustment —  —  —  (2,559) —  (2,559)
Stock-based compensation —  —  2,501  —  —  2,501 
Net loss —  —  —  —  (11,141) (11,141)
Balance at June 30, 2022 76,239,989  8  429,878  (6,074) (159,928) 263,884 
Adjustments
Balance, December 31, 2021 —  —  (331) (132) (4,158) (4,621)
March 31, 2022 —  —  —  —  —  — 
Foreign currency translation adjustment —  —  —  61  —  61 
Net loss —  —  —  —  (665) (665)
Total Adjustments - March 31, 2022 —  —  (331) (71) (4,823) (5,225)
June 30, 2022
Foreign currency translation adjustment —  —  —  186  —  186 
Net loss —  —  —  —  351  351 
Total Adjustments - June 30, 2022 —  —  (331) 115  (4,472) (4,688)
As Revised
Balance at December 31, 2021 72,027,743  7  413,315  (3,463) (142,337) 267,522 
Opening balance sheet adjustment (as previously reported) —  —  (11,613) —  299  (11,314)
Balance at December 31, 2021 72,027,743  7  401,702  (3,463) (142,038) 256,208 
Foreign currency translation adjustment —  —  —  (123) —  (123)
Stock-based compensation —  —  2,050  —  —  2,050 
Common stock issued pursuant to acquisition 4,212,246  1  23,294  —  —  23,295 
Net loss —  —  —  —  (11,572) (11,572)
Balance at March 31, 2022 76,239,989  8  427,046  (3,586) (153,610) 269,858 
Foreign currency translation adjustment —  —  —  (2,373) —  (2,373)
Stock-based compensation —  —  2,501  —  —  2,501 
Net loss —  —  —  —  (10,790) (10,790)
Balance at June 30, 2022 76,239,989  $ 8  $ 429,547  $ (5,959) $ (164,400) $ 259,196 
KORE Group Holdings, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(In thousands USD) (unaudited)
For the six months ended
June 30, 2022
As previously reported Income tax adjustments Indirect tax adjustments Other adjustments Revised
Cash flows from operating activities
Net loss $ (22,048) $ (721) $ (158) $ 565  $ (22,362)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization 26,970  —  —  (42) 26,928 
Amortization of deferred financing costs 1,188  —  —  —  1,188 
Non-cash reduction to the operating lease right-of-use assets 1,129  —  —  —  1,129 
Deferred income taxes (7,666) 398  —  847  (6,421)
Non-cash foreign currency loss 489  —  —  —  489 
Share-based compensation 4,551  —  —  —  4,551 
Provision for doubtful accounts 183  —  —  —  183 
Change in fair value of warrant liability (133) —  —  —  (133)
Change in operating assets and liabilities, net of operating assets and liabilities acquired:
Accounts receivable 2,421  —  —  33  2,454 
Inventories 6,661  —  —  —  6,661 
Prepaid expenses and other receivables (769) —  —  105  (664)
Accounts payable and accrued liabilities (2,674) 323  158  (325) (2,518)
Deferred revenue 872  —  —  (684) 188 
Income taxes payable 269  —  —  (711) (442)
Operating lease liabilities (752) —  —  212  (540)
Net cash provided by operating activities $ 10,691  $ —  $ —  $ —  $ 10,691 
Net cash used in investing activities $ (53,201) $ —  $ —  $ —  $ (53,201)
Net cash used in financing activities $ (2,454) $ —  $ —  $ —  $ (2,454)
Effect of exchange rate change on cash and restricted cash (575) —  —  —  (575)
Change in cash and restricted cash (45,539) —  —  —  (45,539)
Cash and restricted cash, beginning of period 86,343  —  —  —  86,343 
Cash and restricted cash, end of period $ 40,804  $ —  $ —  $ —  $ 40,804 
KORE Group Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Temporary Equity and Stockholders’ Equity
(In thousands, USD, except share amounts) (unaudited)
Series A Preferred
Stock 		Series A-1
Preferred Stock 		Series B Preferred
Stock 		Series C Convertible
Preferred Stock 		Total
Temporary
Equity 		Common Stock Additional
paid-in
capital 		Accumulated
Other
Comprehensive
Income (Loss) 		Accumulated
Deficit 		Total
Stockholders’
Equity
Temporary Equity
Shares Amount Shares Amount Shares Amount Shares Amount Amount Shares Amount Amount Amount Amount Amount
As Reported
Balance at December 31, 2020 (as previously reported) 7,756,158  $ 77,562  7,862,107  $ 78,621  9,090,975  $ 90,910  2,566,186  $ 16,802  $ 263,895  30,281,520  $ 3  $ 135,616  $ (1,677) $ (113,726) $ 20,216 
Accrued dividends payable 248,622  2,486  266,558  2,666  224,161  2,241  —  —  7,393  —  —  (7,393) —  —  (7,393)
Foreign currency translation adjustment —  —  —  —  —  —  —  —  —  —  —  —  (900) —  (900)
Stock-based compensation —  —  —  —  —  —  —  —  —  —  —  315  —  —  315 
Net loss —  —  —  —  —  —  —  —  —  —  —  —  —  (1,081) (1,081)
Balance at March 31, 2021 8,004,780  80,048  8,128,665  81,287  9,315,136  93,151  2,566,186  16,802  271,288  30,281,520  3  128,538  (2,577) (114,807) 11,157 
Adjustments
Balance, December 31, 2020 —  —  —  —  —  —  (45,818) (300) (300) —  —  —  115  (3,835) (3,720)
March 31, 2021 —  —  —  —  —  — 
Foreign currency translation adjustment —  —  —  —  —  —  —  —  —  —  —  —  4  —  4 
Net loss —  —  —  —  —  —  —  —  —  —  —  —  —  (918) (918)
Total Adjustments - March 31, 2021 —  —  —  —  —  —  (45,818) (300) (300) —  —  —  119  (4,753) (4,634)
As Revised
Balance at December 31, 2020 7,756,158  77,562  7,862,107  78,621  9,090,975  90,910  2,520,368  16,502  263,595  30,281,520  3  135,616  (1,562) (117,561) 16,496 
Accrued dividends payable 248,622  2,486  266,558  2,666  224,161  2,241  —  —  7,393  —  —  (7,393) —  —  (7,393)
Foreign currency translation adjustment —  —  —  —  —  —  —  —  —  —  —  —  (896) —  (896)
Stock-based compensation —  —  —  —  —  —  —  —  —  —  —  315  —  —  315 
Net loss —  —  —  —  —  —  —  —  —  —  —  —  —  (1,999) (1,999)
Balance at March 31, 2021 8,004,780  $ 80,048  8,128,665  $ 81,287  9,315,136  $ 93,151  2,520,368  $ 16,502  $ 270,988  30,281,520  $ 3  $ 128,538  $ (2,458) $ (119,560) $ 6,523 
KORE Group Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands USD) (unaudited)
For the three months ended
March 31, 2021
As previously reported Income tax adjustments Indirect tax adjustments Other adjustments Revised
Cash flows from operating activities
Net loss $ (1,081) $ (238) $ (114) $ (566) $ (1,999)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization 13,114  —  —  (21) 13,093 
Amortization of deferred financing costs 524  —  —  —  524 
Deferred income taxes (1,366) 238  —  (259) (1,387)
Non-cash foreign currency loss (70) —  —  —  (70)
Share-based compensation 315  —  —  —  315 
Provision for doubtful accounts (18) —  —  —  (18)
Change in fair value of warrant liability (2,424) —  —  —  (2,424)
Change in operating assets and liabilities, net of operating assets and liabilities acquired:
Accounts receivable (1,855) —  —  (55) (1,910)
Inventories (878) —  —  —  (878)
Prepaid expenses and other receivables (5,375) —  —  1,274  (4,101)
Accounts payable and accrued liabilities (13,311) —  114  (365) (13,562)
Deferred revenue (81) —  —  —  (81)
Income taxes payable 186  —  —  (8) 178 
Net cash used in operating activities $ (12,320) $ —  $ —  $ —  $ (12,320)
Net cash used in investing activities $ (3,091) $ —  $ —  $ —  $ (3,091)
Net cash provided financing activities $ 18,291  $ —  $ —  $ —  $ 18,291 
Effect of Exchange Rate Change on Cash and Restricted Cash (67) —  —  —  (67)
Change in Cash and Restricted Cash 2,813  —  —  —  2,813 
Cash and Restricted Cash, beginning of period 10,693  —  —  —  10,693 
Cash and Restricted Cash, end of period $ 13,506  $ —  $ —  $ —  $ 13,506 
KORE Group Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Stockholders’ Equity
(In thousands, USD, except share amounts) (unaudited)
Series A Preferred
Stock 		Series A-1
Preferred Stock 		Series B Preferred
Stock 		Series C Convertible
Preferred Stock 		Total
Temporary
Equity 		Common Stock Additional
paid-in
capital 		Accumulated
Other
Comprehensive
Income (Loss) 		Accumulated
Deficit 		Total
Stockholders’
Equity
Temporary Equity
Shares Amount Shares Amount Shares Amount Shares Amount Amount Shares Amount Amount Amount Amount Amount
As Reported
Balance at December 31, 2020 7,756,158  $ 77,562  7,862,107  $ 78,621  9,090,975  $ 90,910  2,566,186  $ 16,802  $ 263,895  30,281,520  $ 3  $ 135,616  $ (1,677) $ (113,726) $ 20,216 
Accrued dividends payable 248,622  2,486  266,558  2,666  224,161  2,241  —  —  7,393  —  —  (7,393) —  —  (7,393)
Foreign currency translation adjustment —  —  —  —  —  —  —  —  —  —  —  —  (900) —  (900)
Stock-based compensation —  —  —  —  —  —  —  —  —  —  —  315  —  —  315 
Net loss —  —  —  —  —  —  —  —  —  —  —  —  —  (1,081) (1,081)
Balance at March 31, 2021 8,004,780  80,048  8,128,665  81,287  9,315,136  93,151  2,566,186  16,802  271,288  30,281,520  3  128,538  (2,577) (114,807) 11,157 
Derecognition of shares —  —  —  —  —  —  (45,818) (300) (300) —  —  —  —  —  — 
Accrued dividends payable 251,385  2,514  269,520  2,695  232,240  2,323  —  —  7,532  —  —  (7,532) —  —  (7,532)
Foreign currency translation adjustment —  —  —  —  —  —  —  —  —  —  —  —  743  —  743 
Stock-based compensation —  —  —  —  —  —  —  —  —  —  —  315  —  —  315 
Net loss —  —  —  —  —  —  —  —  —  —  —  —  —  (6,885) (6,885)
Balance at June 30, 2021 8,256,165  82,562  8,398,185  83,982  9,547,376  95,474  2,520,368  16,502  278,520  30,281,520  3  121,321  (1,834) (121,692) (2,202)
Adjustments
Balance, December 31, 2020 —  —  —  —  —  —  (45,818) (300) (300) —  —  —  115  (3,835) (3,720)
March 31, 2021 —  —  —  —  —  — 
Foreign currency translation adjustment —  —  —  —  —  —  —  —  —  —  —  —  4  —  4 
Net loss —  —  —  —  —  —  —  —  —  —  —  —  —  (918) (918)
Total Adjustments - March 31, 2021 —  —  —  —  —  —  (45,818) (300) (300) —  —  —  119  (4,753) (4,634)
June 30, 2021 —  —  —  —  —  — 
Derecognition of shares —  —  —  —  —  —  45,818  300  300  —  —  —  —  —  — 
Foreign currency translation adjustment —  —  —  —  —  —  —  —  —  —  —  —  (325) —  (325)
Net loss —  —  —  —  —  —  —  —  —  —  —  —  —  683  683 
Total Adjustments - June 30, 2021 —  —  —  —  —  —  —  —  —  —  —  —  (206) (4,070) (4,276)
As Revised
Balance at December 31, 2020 7,756,158  77,562  7,862,107  78,621  9,090,975  90,910  2,520,368  16,502  263,595  30,281,520  3  135,616  (1,562) (117,561) 16,496 
Accrued dividends payable 248,622  2,486  266,558  2,666  224,161  2,241  —  —  7,393  —  —  (7,393) —  —  (7,393)
Foreign currency translation adjustment —  —  —  —  —  —  —  —  —  —  —  —  (896) —  (896)
Stock-based compensation —  —  —  —  —  —  —  —  —  —  —  315  —  —  315 
Net loss —  —  —  —  —  —  —  —  —  —  —  —  —  (1,999) (1,999)
Balance at March 31, 2021 8,004,780  80,048  8,128,665  81,287  9,315,136  93,151  2,520,368  16,502  270,988  30,281,520  3  128,538  (2,458) (119,560) 6,523 
Accrued dividends payable 251,385  2,514  269,520  2,695  232,240  2,323  —  —  7,532  —  —  (7,532) —  —  (7,532)
Foreign currency translation adjustment —  —  —  —  —  —  —  —  —  —  —  —  418  —  418 
Stock-based compensation —  —  —  —  —  —  —  —  —  —  —  315  —  —  315 
Net loss —  —  —  —  —  —  —  —  —  —  —  —  —  (6,202) (6,202)
Balance at June 30, 2021 8,256,165  $ 82,562  8,398,185  $ 83,982  9,547,376  $ 95,474  2,520,368  $ 16,502  $ 278,520  30,281,520  $ 3  $ 121,321  $ (2,040) $ (125,762) $ (6,478)
KORE Group Holdings, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(In thousands USD) (unaudited)
For the six months ended
June 30, 2021
As previously reported Income tax adjustments Indirect tax adjustments Other adjustments Revised
Cash flows from operating activities
Net loss $ (7,966) $ (403) $ (228) $ 396  $ (8,201)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation and amortization 25,507  —  —  (42) 25,465 
Amortization of deferred financing costs 1,047  —  —  —  1,047 
Deferred income taxes (4,308) 237  —  694  (3,377)
Non-cash foreign currency loss 77  —  —  —  77 
Share-based compensation 630  —  —  —  630 
Provision for doubtful accounts 11  —  —  —  11 
Change in fair value of warrant liability (2,383) —  —  —  (2,383)
Change in operating assets and liabilities, net of operating assets and liabilities acquired:
Accounts receivable (7,049) —  —  (109) (7,158)
Inventories (4,089) —  —  —  (4,089)
Prepaid expenses and other receivables (9,016) —  —  (109) (9,125)
Accounts payable and accrued liabilities (6,103) 166  228  (563) (6,272)
Deferred revenue (671) —  —  —  (671)
Income taxes payable (32) —  —  (267) (299)
Net cash used in operating activities $ (14,345) $ —  $ —  $ —  $ (14,345)
Net cash used in investing activities $ (5,973) $ —  $ —  $ —  $ (5,973)
Net cash provided by financing activities $ 18,375  $ —  $ 18,375 
Effect of exchange rate change on cash and restricted cash (82) —  —  —  (82)
Change in cash and restricted cash (2,025) —  —  —  (2,025)
Cash and restricted cash, beginning of period 10,693  —  —  —  10,693 
Cash and restricted cash, end of period $ 8,668  $ —  $ —  $ —  $ 8,668 
KORE Group Holdings, Inc. and Subsidiaries
Consolidated Statements of Stockholders’ Equity (Unaudited)
(In thousands, USD)
Series A Preferred Series A-1 Series B Preferred Series C Convertible Total Common Stock Additional Accumulated Accumulated Total
Stock Preferred Stock Stock Preferred Stock Temporary paid-in Other Deficit Stockholders’
Equity capital Comprehensive Equity
Income (Loss)
Temporary Equity
Shares Amount Shares Amount Shares Amount Shares Amount Amount Shares Amount Amount Amount Amount Amount
As Reported
Balance at December 31, 2020 7,756,158  $ 77,562  7,862,107  $ 78,621  9,090,975  $ 90,910  2,566,186  $ 16,802  $ 263,895  30,281,520  $ 3  $ 135,616  $ (1,677) $ (113,726) $ 20,216 
Accrued dividends payable 248,622  2,486  266,558  2,666  224,161  2,241  —  —  7,393  —  —  (7,393) —  —  (7,393)
Foreign currency translation adjustment —  —  —  —  —  —  —  —  —  —  —  —  (900) —  (900)
Stock-based compensation —  —  —  —  —  —  —  —  —  —  —  315  —  —  315 
Net loss —  —  —  —  —  —  —  —  —  —  —  —  —  (1,081) (1,081)
Balance at March 31, 2021 8,004,780  80,048  8,128,665  81,287  9,315,136  93,151  2,566,186  16,802  271,288  30,281,520  3  128,538  (2,577) (114,807) 11,157 
Derecognition of shares —  —  —  —  —  —  (45,818) (300) (300) —  —  —  —  —  — 
Accrued dividends payable 251,385  2,514  269,520  2,695  232,240  2,323  —  —  7,532  —  —  (7,532) —  —  (7,532)
Foreign currency translation adjustment —  —  —  —  —  —  —  —  —  —  —  —  743  —  743 
Stock-based compensation —  —  —  —  —  —  —  —  —  —  —  315  —  —  315 
Net loss —  —  —  —  —  —  —  —  —  —  —  —  —  (6,885) (6,885)
Balance at June 30, 2021 8,256,165  82,562  8,398,185  83,982  9,547,376  95,474  2,520,368  16,502  278,520  30,281,520  3  121,321  (1,834) (121,692) (2,202)
Accrued dividends payable 265,602  2,656  287,998  2,880  236,142  2,361  —  —  7,897  —  —  (7,897) —  —  (7,897)
Foreign currency translation adjustment —  —  —  —  —  —  —  —  —  —  —  —  (1,322) —  (1,322)
Stock-based compensation —  —  —  —  —  —  —  —  —  —  —  (3,519) —  —  (3,519)
Distributions to and conversions of preferred stock (8,521,767) (85,218) (8,686,183) (86,862) (9,783,518) (97,835) (2,520,368) (16,502) (286,417) 7,120,368  1  56,502  —  —  56,503 
CTAC shares recapitalized, net of equity issuance costs of $15,912
 —  —  —  —  —  —  —  —  —  10,373,491  1  6,456  —  —  6,457 
Conversion of KORE warrants —  —  —  —  —  —  —  —  —  1,365,612  10,663  —  —  10,663 
Private offering and merger financing, net of equity issuance costs of $7,718
 —  —  —  —  —  —  —  —  —  22,686,326  2  217,280  —  —  217,282 
Equity portion of convertible debt, net of issuance costs of $224
 —  —  —  —  —  —  —  —  —  —  —  12,510  —  —  12,510 
Net loss —  —  —  —  —  —  —  —  —  —  —  —  —  (4,508) (4,508)
Balance at September 30, 2021 —  —  —  —  —  —  —  —  —  71,827,317  7  413,316  (3,156) (126,200) 283,967 
Adjustments
Balance, December 31, 2020 —  —  —  —  —  —  (45,818) (300) (300) —  —  —  115  (3,835) (3,720)
March 31, 2021
Foreign currency translation adjustment —  —  —  —  —  —  —  —  —  —  —  —  4  —  4 
Net loss —  —  —  —  —  —  —  —  —  —  —  —  —  (918) (918)
Total Adjustments - March 31, 2021 —  —  —  —  —  —  (45,818) (300) (300) —  —  —  119  (4,753) (4,634)
June 30, 2021
Derecognition of shares —  —  —  —  —  —  45,818  300  300  —  —  —  —  —  — 
Foreign currency translation adjustment —  —  —  —  —  —  —  —  —  —  —  —  (325) —  (325)
Net loss —  —  —  —  —  —  —  —  —  —  —  —  —  683  683 
Total Adjustments - June 30, 2021 —  —  —  —  —  —  —  —  —  —  —  —  (206) (4,070) (4,276)
September 30, 2021
Foreign currency translation adjustment —  —  —  —  —  —  —  —  —  —  —  —  67  —  67 
Private offering and merger financing —  —  —  —  —  —  —  —  —  —  —  (331) —  —  (331)
Net loss —  —  —  —  —  —  —  —  —  —  —  —  —  135  135 
Total Adjustments - September 30, 2021 —  —  —  —  —  —  —  —  —  —  —  (331) (139) (3,935) (4,405)
As Revised
Balance at December 31, 2020 7,756,158  77,562  7,862,107  78,621  9,090,975  90,910  2,520,368  16,502  263,595  30,281,520  3  135,616  (1,562) (117,561) 16,496 
Accrued dividends payable 248,622  2,486  266,558  2,666  224,161  2,241  —  —  7,393  —  —  (7,393) —  —  (7,393)
Foreign currency translation adjustment —  —  —  —  —  —  —  —  —  —  —  —  (896) —  (896)
Stock-based compensation —  —  —  —  —  —  —  —  —  —  —  315  —  —  315 
Net loss —  —  —  —  —  —  —  —  —  —  —  —  —  (1,999) (1,999)
Balance at March 31, 2021 8,004,780  80,048  8,128,665  81,287  9,315,136  93,151  2,520,368  16,502  270,988  30,281,520  3  128,538  (2,458) (119,560) 6,523 
Accrued dividends payable 251,385  2,514  269,520  2,695  232,240  2,323  —  —  7,532  —  —  (7,532) —  —  (7,532)
Foreign currency translation adjustment —  —  —  —  —  —  —  —  —  —  —  —  418  —  418 
Stock-based compensation —  —  —  —  —  —  —  —  —  —  —  315  —  —  315 
Net loss —  —  —  —  —  —  —  —  —  —  —  —  —  (6,202) (6,202)
Balance at June 30, 2021 8,256,165  82,562  8,398,185  83,982  9,547,376  95,474  2,520,368  16,502  278,520  30,281,520  3  121,321  (2,040) (125,762) (6,478)
Accrued dividends payable 265,602  2,656  287,998  2,880  236,142  2,361  —  —  7,897  —  —  (7,897) —  —  (7,897)
Foreign currency translation adjustment —  —  —  —  —  —  —  —  —  —  —  —  (1,255) —  (1,255)
Stock-based compensation —  —  —  —  —  —  —  —  —  —  —  (3,519) —  —  (3,519)
Distributions to and conversions of preferred stock (8,521,767) (85,218) (8,686,183) (86,862) (9,783,518) (97,835) (2,520,368) (16,502) (286,417) 7,120,368  1  56,502  —  —  56,503 
CTAC shares recapitalized, net of equity issuance costs of $15,912
 —  —  —  —  —  —  —  —  —  10,373,491  1  6,456  —  —  6,457 
Conversion of KORE warrants —  —  —  —  —  —  —  —  —  1,365,612  —  10,663  —  —  10,663 
Private offering and merger financing, net of equity issuance costs of $7,718
 —  —  —  —  —  —  —  —  —  22,686,326  2  216,949  —  —  216,951 
Equity portion of convertible debt, net of issuance costs of $224
 —  —  —  —  —  —  —  —  —  —  —  12,510  —  —  12,510 
Net loss —  —  —  —  —  —  —  —  —  —  —  —  —  (4,373) (4,373)
Balance at September 30, 2021 —  —  —  —  —  —  —  —  —  71,827,317  $ 7  $ 412,985  $ (3,295) $ (130,135) $ 279,562 
KORE Group Holdings, Inc. and Subsidiaries
Consolidated Statements of Cash Flows (Unaudited)
(In thousands USD)

For nine months ended
September 30, 2021
As previously reported Income tax adjustments Indirect tax adjustments Other adjustments Revised
Cash flows from operating activities
Net loss $ (12,474) $ (702) $ (342) $ 944  $ (12,574)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Depreciation and amortization 37,947  —  —  (63) 37,884 
Amortization of deferred financing costs 1,569  —  —  —  1,569 
Deferred income taxes (8,197) 293  —  463  (7,441)
Non-cash foreign currency loss (gain) (163) —  —  —  (163)
Stock-based compensation 4,564  —  —  —  4,564 
Provision for doubtful accounts 117  —  —  —  117 
Change in fair value of warrant liability (5,281) —  —  —  (5,281)
Change in operating assets and liabilities, net of operating assets and liabilities acquired:
Accounts receivable (12,792) —  —  (164) (12,956)
Inventories (6,461) —  —  —  (6,461)
Prepaid expenses and other current assets (5,054) —  —  (51) (5,105)
Accounts payable and accrued liabilities (2,366) 409  342  (749) (2,364)
Deferred revenue (911) —  —  —  (911)
Income taxes payable 63  —  —  (380) (317)
Net cash used in operating activities $ (9,439) $ —  $ —  $ —  $ (9,439)
Net cash used in investing activities $ (9,782) $ —  $ —  $ —  $ (9,782)
Net cash provided by financing activities $ 81,772  $ —  $ —  $ —  $ 81,772 
Effect of exchange rate change on cash (188) (188)
Change in cash and restricted cash 62,363  —  —  —  62,363 
Cash and restricted cash, beginning of period $ 10,693  —  —  —  $ 10,693 
Cash and restricted cash, end of period $ 73,056  $ —  $ —  $ —  $ 73,056