Sphere 3D: Fiscal 1Q20 Financial Results

(in $ million)	1Q19	1Q20	Growth
Revenue	2.1	1.0	*-52%*
Net income (loss)	(1.8)	(1.1)

Sphere 3D Corp. reported financial results for its first fiscal quarter ended March 31, 2020.

1FQ20 Financial Results:
• Net revenue was $1.0 million, compared to $2.1 million for the 1FQ19.
• Gross margin 1FQ19was 45.8%, compared to 32.6% for 1FQ19.
• Operating expenses were $1.6 million, compared to $2.4 million for 1FQ19.
• Share-based compensation expense was $5,000, compared to $124,000 for 1FQ19. Depreciation and amortization was $247,000, compared to $267,000 for 1FQ19.
• Net loss from operations was $1.1 million, or a net loss of $0.28 per share, compared to a net loss from operations of $1.8 million, or a net loss of $0.82 per share, for 1FQ19.

Select Events Subsequent to First Quarter End:
• Between April 7, 2020 and April 24, 2020, $377,000 of convertible debentures were converted into 580,580 common shares of the Company.
• On April 30, 2020, the firm entered into an agreement to issue 1,694,000 shares of series D convertible preferred stock and warrants to purchase up to 1,694,000 common shares of the company in a private placement transaction valued $1.1 million.
• On May 15, 2020, the company entered into an equity line agreement for the purchase of up to $11.0 million of common shares, as long as certain conditions are satisfied, including the effectiveness of a resale registration statement being filed on Form S-1. It will control the timing and amount of any sales. The agreement contains a floor price of $1.58 per common share. This allows the firm to fund its needs in a more expedient and cost-effective manner, on the pricing terms set forth in the purchase agreement. The equity line is designed to provide capital to the company as it is required.
• The completion of certain transactions subsequent to the end of the quarter have increased equity balance by adding approximately $2.6 million to the equity balance that was reported as of March 31, 2020.

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Sphere 3D Regains Nasdaq Compliance on May 19, 2020
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May 21, 2020 | Press Release
Sphere 3D Secures $11 Million Equity Line
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May 20, 2020 | Press Release