Oblong, Inc. reported significant financial challenges in its 10-Q filing for the third quarter and nine months ended September 30, 2024. The company experienced a notable decline in revenue, with total revenue for the three months ending September 30, 2024, at $578,000, down 33.7% from $872,000 in the same period of 2023. For the nine months, revenue decreased by 36.7% to $1,815,000 from $2,866,000 year-over-year. The Managed Services segment generated $510,000 in Q3 2024, a decrease from $603,000 in Q3 2023, while Collaboration Products revenue fell to $68,000 from $269,000.
Gross profit also declined sharply, with Q3 2024 gross profit at $79,000 compared to $224,000 in Q3 2023. For the nine-month period, gross profit was $196,000, down from $622,000 in the prior year. The company's operating loss for Q3 2024 increased to $(1,072,000) from $(925,000) in Q3 2023, while the nine-month operating loss was $(3,274,000), slightly worse than $(3,219,000) in the same period of 2023. The net loss for Q3 2024 was $(1,040,000), compared to $(895,000) in Q3 2023, and for the nine months, the net loss was $(3,159,000), nearly unchanged from $(3,163,000) in the previous year.
The company’s total assets decreased to $5,993,000 as of September 30, 2024, from $6,925,000 at the end of 2023, and total stockholders' equity fell to $4,671,000 from $5,501,000. Cash and cash equivalents also declined slightly to $5,619,000 from $5,990,000.
Oblong undertook a workforce reduction in September 2024, laying off nine employees, which resulted in severance costs of $106,000. The company is currently reviewing its strategic direction to enhance shareholder value, exploring options such as business combinations, reverse mergers, or outright sale. The growth strategy includes both organic growth through market presence and product adoption, as well as seeking partnerships or acquisitions with early-stage technology companies.
Despite the challenges, Oblong believes its existing cash reserves will be sufficient to fund operations into mid-2026, although it anticipates needing additional capital for future growth and operations. The company has not reported any changes in internal control over financial reporting that materially affected its operations during the fiscal quarter.
About Oblong, Inc.
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