HOUSTON, April 10,
2023 /PRNewswire/ -- Orbital Infrastructure Group,
Inc. ("OIG") (Nasdaq: OIG), today announced financial results for
the fiscal year 2022. The Company also announced that its Annual
Report on Form 10-K for the year ended December 31, 2022, was filed with the SEC on
April 6, 2023. The Annual Report on
Form 10-K is available in the "SEC Filings" section of OIG's
website at www.orbitalinfrastructure.com, as well as on the SEC's
website at www.sec.gov.
Full Year 2022 Summary Financial
Results
- Revenue of $322.2 million versus
$82.9 million in fiscal year
2021.
- Net loss from continuing operations, net of income tax of
$277.9 million for the twelve months
ended December 31, 2022, compared to
a net loss of $49.8 million for the
twelve months ended December 31,
2021. Net loss from continuing operations, net of income tax
for 2022 includes non-cash charges of $158.8
million consisting of $109.6
million impairment for goodwill and intangible assets,
$31.3 million for loss on
extinguishment of debt, $13.4 million
for loss on financial instruments and warrant liabilities, and
$4.5 million impairment of financing
leases.
- Adjusted EBITDA loss from continuing operations (a non-GAAP
measure) was $40.3 million for the
twelve months ended December 31,
2022, compared to a loss of $27.0
million for the twelve months ended December 31, 2021. The Adjusted EBITDA loss from
continuing operations for the twelve months ended December 31, 2022 was primarily attributed to
losses incurred in the renewables segment related to two utility
scale solar projects. See Table in the section entitled
"Reconciliation of non-GAAP Financial Measures."
- Net cash used in operating activities totaled $19.6 million for the twelve months ended
December 31, 2022, compared to net
cash used in operating activities of $45.7
million for the twelve months ended December 31, 2021.
Non-GAAP Financial
Measures
The financial measures not prepared in conformity with generally
accepted accounting principles in the
United States (GAAP) that are utilized in this press release
are provided to enable investors, analysts and management to
evaluate Orbital Infrastructure's performance excluding the effects
of certain items that management believes impact the comparability
of operating results between reporting periods. In addition,
management believes these measures are useful in comparing Orbital
Infrastructure's operating results with those of its competitors.
These measures should be used in addition to, and not in lieu of,
financial measures prepared in conformity with GAAP. Please see the
accompanying tables for reconciliations of the following non-GAAP
financial measures for Orbital Infrastructure's current and
historical results (as applicable): EBITDA and Adjusted EBITDA from
continuing operations (non-GAAP financial measures) to loss from
continuing operations, net of income taxes.
Additional Corporate
Update
The Company is actively exploring a range of strategic
alternatives. There can be no assurance any strategic alternative
will be completed, and would be dependent on a number of factors
that may be beyond the Company's control. The Company will provide
updates when it determines that further disclosure is appropriate
or necessary.
About Orbital Infrastructure
Group
Orbital Infrastructure Group, Inc. is a diversified
infrastructure services platform, providing engineering, design,
construction, and maintenance services to customers in three
operating segments; electric power, telecommunications, and
renewables.
Forward Looking
Statements
This press release includes "forward-looking statements" within
the meaning of the Securities Exchange Act of 1934, as amended, and
other federal securities laws. The "forward-looking statements"
include our current expectations, assumptions, estimates and
projections about our Company. They include statements relating to
our future actions or potential outcomes which the Company believes
to be reasonable at this time. You can identify forward-looking
statements by the use of words such as "outlook," "may," "should,"
"could," "estimates," "predicts," "potential," "continue,"
"anticipates," "believes," "plans," "expects," "future" and
"intends" and similar expressions which are intended to identify
forward-looking statements.
These statements are not guarantees of future performance and
are subject to risks, uncertainties, and other factors, some of
which are beyond our control and difficult to predict, including,
among others:
- the Company's EBITDA and adjusted EBITDA from continuing
operations;
- the timing of our review of any strategic alternatives;
- whether we will be able to identify or develop any strategic
alternatives;
- our ability to execute on material aspects of any strategic
alternatives;
- whether we can achieve the potential benefits of any strategic
alternatives;
- changes in macroeconomic conditions;
All forward-looking statements attributable to us or persons
acting on our behalf are expressly qualified in their entirety by
these cautionary statements and risk factors. Forward-looking
statements contained in this press release reflect our view only as
of the date of this press release. We undertake no obligation,
other than as required by law, to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Such risks and uncertainties could cause actual results to
differ materially from those expressed or forecasted by us. In
evaluating our financial results and forward-looking statements,
you should carefully consider the risks and uncertainties more
fully described in the "Risk Factors" section or other sections in
our reports filed with the SEC including the most recent annual
report on Form 10-K and any subsequent periodic reports on Form
10-Q and current reports on Form 8-K.
Investor Relations:
TraDigital Investor Relations
Kevin McGrath
+1 (646) 418-7002
kevin@tradigitalir.com
Orbital
Infrastructure Group, Inc. Consolidated Balance
Sheets As of December 31,
|
|
(In thousands, except
share and per share amounts)
|
|
2022
|
|
|
2021
|
|
Assets:
|
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
21,489
|
|
|
$
|
26,865
|
|
Restricted cash -
current portion
|
|
|
123
|
|
|
|
150
|
|
Trade accounts
receivable, net of allowance
|
|
|
52,652
|
|
|
|
48,752
|
|
Inventories
|
|
|
1,691
|
|
|
|
1,335
|
|
Contract
assets
|
|
|
13,917
|
|
|
|
7,478
|
|
Notes receivable,
current portion
|
|
|
1,442
|
|
|
|
3,536
|
|
Prepaid expenses and
other current assets
|
|
|
7,840
|
|
|
|
6,919
|
|
Assets held for sale,
current portion
|
|
|
3,198
|
|
|
|
6,679
|
|
Total current
assets
|
|
|
102,352
|
|
|
|
101,714
|
|
|
|
|
|
|
|
|
|
|
Property and equipment,
less accumulated depreciation
|
|
|
22,930
|
|
|
|
29,638
|
|
Investment
|
|
|
1,063
|
|
|
|
1,063
|
|
Right of use assets -
Operating leases
|
|
|
16,588
|
|
|
|
18,247
|
|
Right of use assets -
Financing leases
|
|
|
8,394
|
|
|
|
14,702
|
|
Goodwill
|
|
|
7,006
|
|
|
|
100,899
|
|
Other intangible
assets, net
|
|
|
111,134
|
|
|
|
142,656
|
|
Restricted cash,
noncurrent portion
|
|
|
486
|
|
|
|
1,026
|
|
Note
receivable
|
|
|
—
|
|
|
|
836
|
|
Deposits and other
assets
|
|
|
1,618
|
|
|
|
1,558
|
|
Total assets
|
|
$
|
271,571
|
|
|
$
|
412,339
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity:
|
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
41,333
|
|
|
$
|
10,111
|
|
Notes payable,
current
|
|
|
144,708
|
|
|
|
72,774
|
|
Line of
credit
|
|
|
4,000
|
|
|
|
2,500
|
|
Operating lease
obligations - current portion
|
|
|
4,540
|
|
|
|
4,674
|
|
Financing lease
obligations - current portion
|
|
|
5,316
|
|
|
|
4,939
|
|
Accrued
expenses
|
|
|
39,065
|
|
|
|
28,301
|
|
Contract
liabilities
|
|
|
10,218
|
|
|
|
6,503
|
|
Financial instrument
liability, current portion
|
|
|
43,693
|
|
|
|
825
|
|
Liabilities held for
sale, current portion
|
|
|
—
|
|
|
|
4,367
|
|
Total current
liabilities
|
|
|
292,873
|
|
|
|
134,994
|
|
|
|
|
|
|
|
|
|
|
Financial instrument
liability, noncurrent portion
|
|
|
536
|
|
|
|
—
|
|
Warrant
liabilities
|
|
|
1,777
|
|
|
|
—
|
|
Deferred tax
liabilities
|
|
|
—
|
|
|
|
260
|
|
Notes payable, less
current portion
|
|
|
100,528
|
|
|
|
156,605
|
|
Operating lease
obligations, less current portion
|
|
|
12,350
|
|
|
|
13,555
|
|
Financing lease
obligations, less current portion
|
|
|
7,673
|
|
|
|
9,939
|
|
Contingent
consideration
|
|
|
570
|
|
|
|
720
|
|
Total
liabilities
|
|
|
416,307
|
|
|
|
316,073
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity:
|
|
|
|
|
|
|
|
|
Preferred stock, par
value $0.001; 10,000,000 shares authorized; no shares issued at
December
31, 2022 or December 31, 2021
|
|
|
—
|
|
|
|
—
|
|
Common stock, par value
$0.001; 325,000,000 shares authorized; 157,884,024 shares issued
and
157,530,961 shares outstanding at December 31, 2022 and 82,259,739
shares issued and
81,906,676 shares outstanding at December 31, 2021
|
|
|
158
|
|
|
|
82
|
|
Additional paid-in
capital
|
|
|
347,357
|
|
|
|
311,487
|
|
Treasury stock at cost;
353,063 shares held at December 31, 2022 and December 31,
2021
|
|
|
(413)
|
|
|
|
(413)
|
|
Accumulated
deficit
|
|
|
(487,121)
|
|
|
|
(210,934)
|
|
Accumulated other
comprehensive loss
|
|
|
(691)
|
|
|
|
(3,995)
|
|
Total Orbital Energy
Group, Inc.'s stockholders' equity
|
|
|
(140,710)
|
|
|
|
96,227
|
|
Noncontrolling
interest
|
|
|
(4,026)
|
|
|
|
39
|
|
Total stockholders'
equity
|
|
|
(144,736)
|
|
|
|
96,266
|
|
Total liabilities and
stockholders' equity
|
|
$
|
271,571
|
|
|
$
|
412,339
|
|
|
|
|
|
|
|
|
|
|
Orbital
Infrastructure Group, Inc. Consolidated Statements of
Operations For the Years Ended December
31,
|
|
|
|
|
|
|
|
|
|
(In thousands, except
share and per share amounts)
|
|
|
|
|
|
|
|
|
|
|
2022
|
|
|
2021
|
|
Revenues
|
|
$
|
322,217
|
|
|
$
|
82,948
|
|
Cost of
revenues
|
|
|
328,318
|
|
|
|
78,630
|
|
Gross profit
|
|
|
(6,101)
|
|
|
|
4,318
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense
|
|
|
47,428
|
|
|
|
50,024
|
|
Depreciation and
amortization
|
|
|
20,060
|
|
|
|
6,762
|
|
Impairment of goodwill
and intangible assets
|
|
|
109,586
|
|
|
|
—
|
|
Impairment of financing
leased assets
|
|
|
4,467
|
|
|
|
—
|
|
Provision for bad
debt
|
|
|
(26)
|
|
|
|
346
|
|
Other operating
(income) expenses
|
|
|
(39)
|
|
|
|
(23)
|
|
Total operating
expenses
|
|
|
181,476
|
|
|
|
57,109
|
|
Loss from
operations
|
|
|
(187,577)
|
|
|
|
(52,791)
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on
extinguishment of debt
|
|
|
(31,258)
|
|
|
|
365
|
|
Gain (loss) on
financial instruments
|
|
|
(24,487)
|
|
|
|
33
|
|
Gain on warrant
liabilities
|
|
|
11,085
|
|
|
|
—
|
|
Other income
(expense)
|
|
|
(7,039)
|
|
|
|
379
|
|
Interest
expense
|
|
|
(37,813)
|
|
|
|
(8,337)
|
|
Loss from continuing
operations before taxes
|
|
|
(277,089)
|
|
|
|
(60,351)
|
|
Income tax expense
(benefit)
|
|
|
846
|
|
|
|
(10,508)
|
|
Loss from continuing
operations, net of income taxes
|
|
|
(277,935)
|
|
|
|
(49,843)
|
|
Discontinued operations
(Note 2)
|
|
|
|
|
|
|
|
|
Loss from operations of
discontinued businesses
|
|
|
(2,317)
|
|
|
|
(12,705)
|
|
Income tax
benefit
|
|
|
—
|
|
|
|
(1,334)
|
|
Loss from discontinued
operations, net of income taxes
|
|
|
(2,317)
|
|
|
|
(11,371)
|
|
Net loss
|
|
|
(280,252)
|
|
|
|
(61,214)
|
|
Less: net income (loss)
attributable to noncontrolling interest
|
|
|
(4,065)
|
|
|
|
39
|
|
Net loss attributable
to Orbital Infrastructure Group, Inc
|
|
$
|
(276,187)
|
|
|
$
|
(61,253)
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted
weighted average number of shares outstanding
|
|
|
108,313,369
|
|
|
|
58,348,489
|
|
Loss from continuing
operations per common share - basic and diluted
|
|
$
|
(2.53)
|
|
|
$
|
(0.86)
|
|
Loss from discontinued
operations per common share - basic and diluted
|
|
$
|
(0.02)
|
|
|
$
|
(0.19)
|
|
Loss per common share -
basic and diluted
|
|
$
|
(2.55)
|
|
|
$
|
(1.05)
|
|
|
|
|
|
|
|
|
|
|
Orbital
Infrastructure Group, Inc. Consolidated Statements
of Cash Flows For the Years Ended December
31,
|
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
2022
|
|
|
2021
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(280,252)
|
|
|
$
|
(61,214)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation
|
|
|
15,371
|
|
|
|
5,208
|
|
Amortization of
intangibles
|
|
|
18,468
|
|
|
|
7,702
|
|
Amortization of debt
discount
|
|
|
11,037
|
|
|
|
3,392
|
|
Loss (gain) on
extinguishment of debt and loan modifications
|
|
|
31,258
|
|
|
|
(1,134)
|
|
Gain on disposal of
assets
|
|
|
(154)
|
|
|
|
(26)
|
|
Gain on sale of
businesses
|
|
|
(299)
|
|
|
|
—
|
|
Amortization of note
receivable discount
|
|
|
(63)
|
|
|
|
(319)
|
|
Stock-based
compensation and expense
|
|
|
(1,144)
|
|
|
|
12,168
|
|
Fair value adjustment
to liability for stock appreciation rights
|
|
|
(269)
|
|
|
|
2,054
|
|
Fair value adjustment
to financial instrument liabilities
|
|
|
24,487
|
|
|
|
(33)
|
|
Fair value adjustment
to warrant liabilities
|
|
|
(11,085)
|
|
|
|
—
|
|
Provision for bad
debt
|
|
|
(8)
|
|
|
|
343
|
|
Deferred income
taxes
|
|
|
(347)
|
|
|
|
(10,878)
|
|
Non-cash unrealized
foreign currency (gain) loss
|
|
|
(7)
|
|
|
|
492
|
|
Liquidated damages from
debt
|
|
|
7,969
|
|
|
|
—
|
|
Impairment of goodwill
and intangible assets
|
|
|
109,586
|
|
|
|
—
|
|
Impairment of financing
leased assets
|
|
|
4,467
|
|
|
|
—
|
|
Impairment of assets
held for sale
|
|
|
—
|
|
|
|
9,185
|
|
Inventory
reserve
|
|
|
(9)
|
|
|
|
(350)
|
|
|
|
|
|
|
|
|
|
|
Change in operating
assets and liabilities, net of acquisition:
|
|
|
|
|
|
|
|
|
Trade accounts
receivable
|
|
|
(1,844)
|
|
|
|
(19,173)
|
|
Inventories
|
|
|
58
|
|
|
|
(425)
|
|
Contract
assets
|
|
|
(5,086)
|
|
|
|
(296)
|
|
Prepaid expenses and
other current assets
|
|
|
3,540
|
|
|
|
41
|
|
Right of use
assets/lease liabilities, net of acquisitions:
|
|
|
234
|
|
|
|
49
|
|
Deposits and other
assets
|
|
|
(39)
|
|
|
|
(24)
|
|
Increase (decrease) in
operating liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
30,269
|
|
|
|
(38)
|
|
Accrued
expenses
|
|
|
19,905
|
|
|
|
4,540
|
|
Contingent
consideration
|
|
|
(150)
|
|
|
|
—
|
|
Contract
liabilities
|
|
|
4,482
|
|
|
|
3,060
|
|
NET CASH USED IN
OPERATING ACTIVITIES
|
|
|
(19,625)
|
|
|
|
(45,676)
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Cash paid for
acquisitions, net of cash received
|
|
|
(773)
|
|
|
|
(132,518)
|
|
Cash paid for working
capital adjustment on Front Line Power acquisition
|
|
|
(9,500)
|
|
|
|
—
|
|
Purchases of property
and equipment
|
|
|
(4,511)
|
|
|
|
(7,779)
|
|
Deposits on financing
lease property and equipment/ proceeds from deposits
|
|
|
158
|
|
|
|
(762)
|
|
Proceeds from sale of
businesses, net of cash included in business
|
|
|
1,027
|
|
|
|
—
|
|
Proceeds from sale of
property and equipment
|
|
|
485
|
|
|
|
141
|
|
Purchase of other
intangible assets
|
|
|
(99)
|
|
|
|
(705)
|
|
Purchase of
investments
|
|
|
(469)
|
|
|
|
(1,025)
|
|
Proceeds from notes
receivable
|
|
|
3,500
|
|
|
|
621
|
|
NET CASH USED IN
INVESTING ACTIVITIES
|
|
|
(10,182)
|
|
|
|
(142,027)
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
Proceeds from line of
credit
|
|
|
4,250
|
|
|
|
3,250
|
|
Payments on line of
credit
|
|
|
(2,750)
|
|
|
|
(1,191)
|
|
Payments on financing
lease obligations
|
|
|
(5,090)
|
|
|
|
(1,995)
|
|
Proceeds from notes
payable, net of debt discounts and issuances costs
|
|
|
90,522
|
|
|
|
143,045
|
|
Payments on notes
payable
|
|
|
(83,162)
|
|
|
|
(9,941)
|
|
Proceeds from sales of
common stock and warrants
|
|
|
20,395
|
|
|
|
78,046
|
|
NET CASH PROVIDED BY
FINANCING ACTIVITIES
|
|
|
24,165
|
|
|
|
211,214
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate
changes on cash
|
|
|
(301)
|
|
|
|
6
|
|
Net (decrease) increase
in cash, cash equivalents and restricted cash
|
|
|
(5,943)
|
|
|
|
23,517
|
|
Cash, cash equivalents
and restricted cash at beginning of year
|
|
|
28,041
|
|
|
|
4,524
|
|
CASH, CASH EQUIVALENTS
AND RESTRICTED CASH AT END OF YEAR
|
|
$
|
22,098
|
|
|
$
|
28,041
|
|
Orbital Infrastructure Group,
Inc.Reconciliation of Non-GAAP Financial Measures
EBITDA and Adjusted EBITDA from Continuing Operations
(Unaudited)
The following table presents reconciliations of the non-GAAP
financial measures of EBITDA and Adjusted EBITDA from continuing
operations to loss from continuing operations, net of income taxes
for the year ended December 31, 2022
and 2021. These reconciliations are intended to provide useful
information to investors and analysts as they evaluate the
Company's performance. EBITDA from continuing operations is defined
as loss from continuing operations before interest, taxes,
depreciation and amortization, and Adjusted EBITDA from continuing
operations is defined as EBITDA from continuing operations adjusted
for certain other items as described below. We believe that the
exclusion of these items from loss from continuing operations
enables management and investors to more effectively evaluate the
Company's operations period over period and to identify operating
trends that might not be apparent when including the excluded
items. However, these measures should not be considered as an
alternative to loss from continuing operations, net of income taxes
or other measures of performance that are derived in accordance
with GAAP.
As to certain of the items in the table below: (i) stock-based
compensation and expense may vary from period to period due to fair
value adjustments from changes in market conditions, forfeiture
rates, accelerated vesting and the amount stock-based awards
granted; (ii) acquisition costs vary from period to period
depending on the level of the Company's acquisition activity; (iii)
gains and losses on the disposal of assets varies from period to
period depending on the utilization and condition of the Company's
long-lived assets; (iv) gains and losses on extinguishment and
modification of debt varies from period to period depending on
changes in the Company's financing activities; and (v) gains and
losses on financials instruments varies from period to period
depending on changes in the market price of the Company's common
stock and other factors; (vi) impairments of goodwill and other
intangible assets can vary from period to period depending on
changes in the Company's market capitalization, operational
performance, macroeconomic conditions other factors; (vii)
impairments of financed lease assets can vary from period to period
depending on changes in the Company's operations and use of
equipment.
Because EBITDA and adjusted EBITDA from continuing operations,
as defined, exclude some, but not all, items that affect loss from
continuing operations, such measures may not be comparable to
similarly titled measures of other companies. The most comparable
GAAP financial measure, loss from continuing operations, net of
income taxes and information reconciling the GAAP and non-GAAP
financial measures, are included below.
|
|
For the Year
Ended
|
|
(In
thousands)
|
|
December 31,
|
|
|
|
|
2022
|
|
|
|
2021
|
|
Loss from continuing
operations, net of income taxes (GAAP)
|
|
$
|
(277,935)
|
|
|
$
|
(49,843)
|
|
Interest expense,
net
|
|
|
37,675
|
|
|
|
7,999
|
|
Income tax expense
(benefit)
|
|
|
846
|
|
|
|
(10,508)
|
|
Depreciation and
amortization
|
|
|
33,839
|
|
|
|
11,272
|
|
EBITDA loss from
continuing operations
|
|
|
(205,575)
|
|
|
|
(41,080)
|
|
Stock-based
compensation and expense (a)
|
|
|
(1,413)
|
|
|
|
13,130
|
|
Acquisition costs
(b)
|
|
|
32
|
|
|
|
1,323
|
|
(Gain) loss on disposal
of assets (c)
|
|
|
(39)
|
|
|
|
(23)
|
|
(Gain) loss on
extinguishment and modification of debt (d)
|
|
|
39,227
|
|
|
|
(365)
|
|
(Gain) loss on
financial instruments and warrant liabilities, net (e)
|
|
|
13,402
|
|
|
|
(33)
|
|
Impairment of goodwill
and intangible assets (f)
|
|
|
109,586
|
|
|
|
—
|
|
Impairment of financing
leased assets (g)
|
|
|
4,467
|
|
|
|
—
|
|
Adjusted EBITDA loss
from continuing operations (h)
|
|
$
|
(40,313)
|
|
|
$
|
(27,048)
|
|
|
Orbital Infrastructure
Group, Inc.
Reconciliation of Non-GAAP Financial Measures
EBITDA and Adjusted EBITDA from Continuing Operations
(Unaudited)
|
|
|
(a)
|
The amounts include
non-cash expenses recognized from the vesting of stock-based
compensation awards issued to employees, executives, directors
and consultants for services provided, net of forfeitures. The
amount for the year ended December 31, 2022 includes non-cash
expenses recognized
on the modification of the Company's executive stock appreciation
rights (SARS) compensation awards.
|
(b)
|
The amount for the year
ended December 31, 2022 includes costs incurred on the acquisition
of Coax Fiber Solutions. The amount for the year
ended December 31, 2021 includes costs incurred on the acquisition
of Front Line Power Construction, LLC, Gibson Technical Services,
IMMCO,
Inc. and Full Moon Telecom, LLC.
|
(c)
|
The amounts relate to
net gains and losses recognized on the disposal of the Company's
long-lived assets.
|
(d)
|
The amount for the year
ended December 31, 2022 includes losses incurred from the
modification of the Company's seller financed notes payable
related to the acquisition of Front Line Power Construction, LLC,
the extinguishment of certain notes payable through the issuance of
common
stock at a discount to market value and liquidated damages incurred
from the failure to meet certain debt reduction requirements. The
amounts for
the year ended December 31, 2021 include a loss on the modification
of convertible notes payable partially offset by gains recognized
on the
forgiveness of payroll protection loans by the U.S.
government.
|
(e)
|
The amount for the year
ended December 31, 2022 includes losses on the fair value
remeasurement of financial instruments associated with the
Company's Front Line Power Construction seller financed notes
payable and syndicated debt agreements, partially offset by a gain
on the fair value
remeasurement of the Company's warrant liabilities.
|
(f)
|
The amount for the year
ended December 31, 2022 includes impairments of goodwill and other
intangible assets of $96.0 million and $13.6 million,
respectively, resulting from a significant decline in value of the
Company's equity security and debt instruments, macroeconomic
conditions, and
other factors. Impairment charges recognized on intangible assets
other than goodwill related to trade name assets in the Electric
Power
and Telecommunications segments and customer relationship assets in
the Renewables segment.
|
(g)
|
The amounts for the
year ended December 31, 2022 includes asset impairment charges
related to the discontinued use of certain financed leased
equipment associated with the restructuring of Eclipse Foundation
Group.
|
(h)
|
The calculations of
Adjusted EBITDA from continuing operations for the year ended
December 31, 2021 have been amended to conform to the
current period calculations.
|
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SOURCE Orbital Infrastructure Group, Inc.