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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 7, 2024

 

 

IDENTIV, INC.

(Exact name of Registrant as Specified in Its Charter)

 

 

 

Delaware   000-29440   77-0444317

(State or Other Jurisdiction

of Incorporation)

  

(Commission

File Number)

  

(IRS Employer

Identification No.)

 

1900-B Carnegie Avenue
Santa Ana, California		     92705
(Address of Principal Executive Offices)     (Zip Code)

Registrant’s Telephone Number, Including Area Code: (949) 250-8888

2201 Walnut Avenue,

Suite 100

Fremont, California

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

  

Trading
Symbol(s)

  

Name of exchange
on which registered

Common Stock, $0.001 par value per share   INVE   The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

Item 2.02

Results of Operations and Financial Condition

The information contained in Item 2.02 of this Current Report, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information contained in this Current Report shall not be incorporated by reference into any registration statement or other document or filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

On November 7, 2024, Identiv, Inc. (the “Company”) issued a press release announcing financial results for its third quarter ended September 30, 2024. A copy of the Company’s press release is attached hereto as Exhibit 99.1.

 

Item 8.01

Other Events

On November 7, 2024, the Company announced that its Board of Directors authorized a stock repurchase program (the “Stock Repurchase Program”), pursuant to which the Company may purchase up to $10,000,000 of its common stock, $0.001 par value per share (“Common Stock”). Under the Stock Repurchase Program, the Company intends to repurchase shares of Common Stock on a discretionary basis from time to time through open market repurchases, privately negotiated transactions, or other means.

The timing and amount of shares repurchased, if any, will depend on a number of factors, including stock price, trading volume, general market and business conditions, liquidity and capital needs, and other factors. The Stock Repurchase Program does not obligate the Company to repurchase any specific dollar amount or acquire any specific number of shares of Common Stock. The Stock Repurchase Program has no expiration date and may be suspended or discontinued at any time without notice.

 

Item 9.01

Financial Statements and Exhibits

 

Exhibit
 No. 

   

Description

99.1    Press release dated November 7, 2024 issued by Identiv, Inc.
104    Cover Page Interactive Data File (embedded within the Inline XBRL Document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    Identiv, Inc.
November 7, 2024     By:  

/s/ Justin Scarpulla

      Justin Scarpulla
      Chief Financial Officer

Exhibit 99.1

 

LOGO

Identiv Reports Third Quarter 2024 Financial Results

Closed Asset Sale Transaction on September 6, 2024

Announces $10 Million Stock Repurchase Program

Introduces Perform-Accelerate-Transform Strategy Framework

Santa Ana, Calif. — November 7, 2024 — Identiv, Inc. (NASDAQ: INVE), a global leader in RFID-enabled Internet of Things (IoT) solutions, today released its financial results for the third quarter ended September 30, 2024.

“The third quarter was transformative for Identiv, marked by the successful completion of our asset sale transaction,” said Identiv CEO Kirsten Newquist. “This has strengthened our cash position, providing resources to fund our future growth. With a clear vision for the direction of our business, our “Perform, Accelerate, and Transform” strategy serves as the framework for executing that vision. The transition of production to Thailand continues to progress, and our new product development pipeline remains strong. We are confident that Identiv is well-positioned to leverage upcoming opportunities.”

Financial Results for Fiscal Third Quarter 2024

Revenue for the third quarter of 2024 was $6.5 million, compared to $11.7 million in the third quarter of 2023. Third quarter 2024 GAAP gross margin was 3.6% and non-GAAP gross margin was 9.3%, compared to third quarter 2023 GAAP gross margin of 11.2% and non-GAAP gross margin of 14.0%.

GAAP operating expenses, including research and development, sales, and marketing, and general and administrative, were $9.8 million in the third quarter of 2024, compared to $4.6 million in the third quarter of 2023. Non-GAAP operating expenses were $5.1 million in the third quarter of 2024, compared to $4.1 million in the third quarter of 2023. Third quarter 2024 GAAP operating expenses included $3.6 million in strategic transaction-related costs and $1.1 million in stock-based compensation.

Third quarter 2024 GAAP net loss from continuing operations was ($9.3) million, or ($0.40) per basic and diluted share, compared to GAAP net loss from continuing operations of ($3.7) million, or ($0.17) per basic and diluted share, in the third quarter of 2023.

Non-GAAP adjusted EBITDA loss in the third quarter of 2024 was ($4.5) million, compared to ($2.3) million in the third quarter of 2023.

Capital Allocation

Identiv anticipates total net proceeds from the asset sale transaction to be approximately $135 million, after taxes, transaction costs, and other one-time costs, subject to further customary

adjustments in accordance with the asset purchase agreement. Under its current capital allocation plan, Identiv intends to allocate 25% to 30% of the net proceeds for investments in its core business and key growth initiatives; 35% to 40% for strategic M&A; 25% to 30% for working capital purposes; and $10 million for a stock repurchase program.

Financial Outlook

Identiv provides guidance based on current market conditions and expectations, including macroeconomic conditions and customer demand. For fiscal Q4 2024, management currently expects net revenue to be in the range of $6.0 million to $6.3 million.

Conference Call

Identiv management will hold a conference call today, November 7, 2024, at 5:00 p.m. EST (2:00 p.m. PST) to discuss the company’s third quarter 2024 financial results. A question-and-answer session will follow management’s presentation.

Toll-Free: 888-506-0062

International Number: +1 973-528-0011

Call ID: 251228

Webcast link: Register and Join

The teleconference replay will be available through November 21, 2024, by dialing 877-481-4010 (Toll-Free Replay Number) or +1 919-882-2331 (International Replay Number) and entering passcode 51400.

If you have any difficulty connecting with the teleconference, please contact Identiv Investor Relations at IR@identiv.com.

About Identiv

Identiv’s full-circle RFID-enabled IoT solutions create digital identities for physical objects, enhancing global connectivity for businesses, people, and the planet. Its solutions, integrated into over 1.5 billion applications worldwide, drive innovation across healthcare, consumer electronics, luxury goods, smart packaging, and more. For additional information, visit identiv.com.

Non-GAAP Financial Measures

This press release includes financial information that has not been prepared in accordance with GAAP, including non-GAAP adjusted EBITDA, non-GAAP gross margin and non-GAAP operating expenses. Identiv uses non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating ongoing operational performance. Identiv believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. Non-GAAP gross margin excludes stock-based compensation and amortization and depreciation. Non-GAAP adjusted EBITDA excludes items that are included in GAAP net income (loss), GAAP operating expenses, and GAAP gross margin, and excludes income tax provision, net interest income (expense), net foreign currency gains (losses), stock-based compensation, amortization and depreciation, restructuring and severance, and strategic review-related costs. Non-GAAP operating expenses exclude stock-based compensation, amortization and depreciation, strategic review-related costs, and restructuring and severance. For historical periods, the exclusions are detailed in the reconciliation table included in this press release. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for,

financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures as detailed in this press release.

Note Regarding Forward-Looking Information

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those involving future events and future results that are based on current expectations as well as the current beliefs and assumptions of management of Identiv and can be identified by words such as “anticipate,” “believe,” “continue,” “plan,” “will,” “intend,” “expect,” “outlook,” and similar references to the future. Any statement that is not a historical fact is a forward-looking statement, including statements regarding: Identiv’s belief that the asset sale transaction is providing the resources needed to fund future growth; Identiv’s belief that it is well-positioned to leverage upcoming opportunities; Identiv’s expectations regarding future operating and financial outlook and performance, including 2024 fourth quarter guidance and outlook; Identiv’s strategy, opportunities, focus and goals; Identiv’s expectations regarding the transition of production to its Thailand facilities and progression thereof; Identiv’s beliefs regarding its new product development pipeline; the expected amount of net proceeds from the asset sale transaction; Identiv’s expectations regarding its capital allocation plan and intended use of net proceeds from the asset sale transaction; Identiv’s beliefs regarding access to future capital; and Identiv’s expectations relating to the growth of its IoT business. Forward-looking statements are only predictions and are subject to a number of risks and uncertainties, many of which are outside Identiv’s control, which could cause actual results to differ materially and adversely from those expressed in any forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: any post-closing purchase price adjustments to the amount of proceeds from the asset sale transaction; risks that the completion of the asset sale transaction disrupts current business, plans and operations of Identiv or its business prospects; the ability of Identiv to retain and hire key personnel; the effect of the change in management following the completion of the asset sale transaction; Identiv’s ability to continue the momentum in its business; Identiv’s ability to successfully execute its business strategy, including, but not limited to, its capital allocation plan and organic and inorganic growth; changes in uses of capital; Identiv’s ability to capitalize on trends in its business; Identiv’s ability to satisfy customer demand and expectations; the level and timing of customer orders and changes/cancellations; the loss of customers, suppliers or partners; the success of Identiv’s products and strategic partnerships; industry trends and seasonality; the impact of macroeconomic conditions and customer demand, inflation and increases in prices; and the other factors discussed in its periodic reports, including its Annual Report on Form 10-K for the year ended December 31, 2023, Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 and subsequent reports filed with the Securities and Exchange Commission. All forward-looking statements are based on information available to Identiv on the date hereof, and Identiv assumes no obligation to update such statements.

Investor Relations Contact:

IR@identiv.com

Media Contact:

press@identiv.com

Identiv, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

 

     Three Months Ended     Nine Months Ended  
     September 30,
2024		     September 30,
2023		     September 30,
2024		     September 30,
2023		  

Net revenue

    $ 6,532     $  11,732     $ 19,931     $ 32,097  

Cost of revenue

      6,294       10,413       18,596       27,928  
  

 

 

    

 

 

    

 

 

    

 

 

  

Gross profit

      238       1,319       1,335       4,169  
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating expenses:

         

Research and development

      1,102       1,019       2,965       3,150  

Selling and marketing

      1,657       1,404       4,654       4,525  

General and administrative

      7,032       2,215       15,052       6,577  

Restructuring and severance

      —        —        —        46  
  

 

 

    

 

 

    

 

 

    

 

 

  

Total operating expenses

      9,791       4,638       22,671       14,298  
  

 

 

    

 

 

    

 

 

    

 

 

  

Loss from continuing operations

      (9,553 )      (3,319 )      (21,336 )      (10,129 ) 

Non-operating income (expense):

         

Interest income (expense), net

      244       (211 )      8       (351 ) 

Gain on investment

      —        132       —        132  

Foreign currency gains (losses), net

      340       (249 )      55       (187 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Loss from continuing operations before income tax provision

      (8,969 )      (3,647 )      (21,273 )      (10,535 ) 

Income tax provision

      (360 )      (13 )      (361 )      (15 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net loss from continuing operations

      (9,329 )      (3,660 )      (21,634 )      (10,550 ) 

Income from discontinued operations, net of tax:

         

Income (loss) from Physical Security Business, net of tax

      (4,268 )      3,638       (2,737 )      6,665  

Gain on sale of Physical Security Business, net of tax

      99,546       —        99,546       —   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total income from discontinued operations, net of tax

      95,278       3,638       96,809       6,665  
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss)

      85,949       (22 )      75,175       (3,885 ) 

Cumulative dividends on Series B convertible preferred stock

      (201 )      (319 )      (682 )      (947 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss) available to common stockholders

    $  85,748     $ (341)     $ 74,493     $  (4,832)  
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss) per common share:

         

Basic and diluted - continuing operations

    $ (0.40)     $ (0.17)     $ (0.95)     $ (0.50 ) 

Basic and diluted - discontinued operations

    $ 4.03     $ 0.16     $ 4.12     $ 0.29  

Basic and diluted - net income (loss)

    $ 3.62     $ (0.01)     $ 3.17     $ (0.21 ) 

Weighted average common shares outstanding:

         

Basic and diluted

      23,660       23,174       23,496       23,008  

Identiv, Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

     September 30,
2024		      December 31,
2023		  

ASSETS

      

Current assets:

      

Cash and cash equivalents

    $  145,361      $ 23,312  

Restricted cash

      384        1,072  

Accounts receivable, net of allowances

      4,848        7,404  

Inventories

      10,710        13,560  

Prepaid expenses and other current assets

      4,700        1,222  

Current assets held-for-sale

      —         32,916  
  

 

 

     

 

 

  

Total current assets

      166,003        79,486  

Property and equipment, net

      8,203        8,472  

Operating lease right-of-use assets

      2,110        2,289  

Other assets

      713        678  

Non-current assets held-for-sale

      —         18,798  
  

 

 

     

 

 

  

Total assets

    $ 177,029      $  109,723  
  

 

 

     

 

 

  

LIABILITIES AND STOCKHOLDERS’ EQUITY

      

Current liabilities:

      

Accounts payable

    $ 6,035      $ 4,652  

Financial liabilities

      —         9,949  

Operating lease liabilities

      880        782  

Accrued compensation and related benefits

      1,321        1,376  

Accrued income taxes payable

      7,180        104  

Other accrued expenses and liabilities

      3,595        917  

Current liabilities held-for-sale

      —         13,002  
  

 

 

     

 

 

  

Total current liabilities

      19,011        30,782  

Long-term operating lease liabilities

      1,251        1,507  

Other long-term liabilities

      27        26  

Non-current liabilities held-for-sale

      —         3,136  
  

 

 

     

 

 

  

Total liabilities

      20,289        35,451  

Total stockholders’ equity

      156,740        74,272  
  

 

 

     

 

 

  

Total liabilities and stockholders’ equity

    $ 177,029      $ 109,723  
  

 

 

     

 

 

  

Identiv, Inc.

Reconciliation of GAAP to Non-GAAP Financial Information - Continuing Operations

(in thousands)

(unaudited)

 

     Three Months Ended     Nine Months Ended  
     September 30,
2024		     September 30,
2023		     September 30,
2024		     September 30,
2023		  

Reconciliation of GAAP gross margin to non-GAAP gross margin

         

GAAP gross profit

    $ 238     $  1,319     $ 1,335     $ 4,169  
  

 

 

    

 

 

    

 

 

    

 

 

  

Reconciling items included in GAAP gross profit:

         

Stock-based compensation

      5       8       17       27  

Amortization and depreciation

      362       314       1,130       823  
  

 

 

    

 

 

    

 

 

    

 

 

  

Total reconciling items included in GAAP gross profit

      367       322       1,147       850  
  

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP gross profit

    $ 605     $ 1,641     $ 2,482     $ 5,019  
  

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP gross margin

      9 %      14 %      12 %      16 % 
  

 

 

    

 

 

    

 

 

    

 

 

  

Reconciliation of GAAP operating expenses to non-GAAP operating expenses

         

GAAP operating expenses

    $ 9,791     $ 4,638     $  22,671     $  14,298  
  

 

 

    

 

 

    

 

 

    

 

 

  

Reconciling items included in GAAP operating expenses:

         

Stock-based compensation

      (1,090 )      (506 )      (2,583 )      (1,478 ) 

Amortization and depreciation

      (64 )      (52 )      (154 )      (132 ) 

Strategic review-related costs

      (3,551 )      —        (6,120 )      —   

Restructuring and severance

      —        —        —        (46 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total reconciling items included in GAAP operating expenses

      (4,705 )      (558 )      (8,857 )      (1,656 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP operating expenses

    $ 5,086     $ 4,080     $ 13,814     $ 12,642  
  

 

 

    

 

 

    

 

 

    

 

 

  

Reconciliation of GAAP net loss from continuing operations to non-GAAP adjusted EBITDA

         

GAAP net loss

    $ (9,329 )    $ (3,660 )    $ (21,634 )    $ (10,550 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Reconciling items included in GAAP net loss:

         

Income tax provision

      360       13       361       15  

Interest income (expense), net

      (244 )      211       (8 )      351  

Foreign currency gains (losses), net

      (340 )      249       (55 )      187  

Stock-based compensation

      1,095       514       2,600       1,505  

Amortization and depreciation

      426       366       1,284       955  

Strategic review-related costs

      3,551       —        6,120       —   

Restructuring and severance

      —        —        —        (46 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total reconciling items included in GAAP net loss from continuing operations

      4,848       1,353       10,302       2,967  
  

 

 

    

 

 

    

 

 

    

 

 

  

Non-GAAP adjusted EBITDA

    $ (4,481 )    $ (2,307 )    $ (11,332 )    $ (7,583 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  
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Document and Entity Information
Nov. 07, 2024
Document And Entity Information [Line Items]  
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Entity Central Index Key 0001036044
Document Type 8-K
Document Period End Date Nov. 07, 2024
Entity Registrant Name IDENTIV, INC.
Entity Incorporation State Country Code DE
Entity File Number 000-29440
Entity Tax Identification Number 77-0444317
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Entity Address, City or Town Santa Ana
Entity Address, State or Province CA
Entity Address, Postal Zip Code 92705
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Trading Symbol INVE
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