Akerna Announces Fourth Quarter and Full Year 2021 Financial Results

 

Software revenue up 59%, Total revenue up 49% year-over-year

DENVER, March 21, 2022 /PRNewswire/ -- Akerna (Nasdaq: KERN), a leading enterprise software company and developer of one of the most comprehensive technology infrastructures, ecosystems, and compliance engines powering the global cannabis industry, today reported its unaudited financial results for the quarter and year ended December 31, 2021.

Akerna experienced significant growth in 2021, with our enterprise business leading the way forward into 2022

"Akerna experienced significant growth in 2021, with our enterprise business leading the way forward into 2022," said Jessica Billingsley, CEO of Akerna. "Our platforms continued to serve our growing clients, and we continued to develop offerings that position Akerna as a differentiated provider of technology solutions to the cannabis industry. We acquired two leading enterprise solutions -- 365 Cannabis and Viridian Sciences -- that delivered robust increases in software revenue. We are pleased with the consistent uptake from our clients in a year of consolidation in the industry with limited new markets opening."

"Our clients are both getting larger and individually seeing both unit and sales transactions rise. As more of the industry runs on Akerna, we are well-positioned for expected new market expansion and US federal progress. In the meantime, we continue to grow our CARR, grow the number and amount of transactions running on Akerna, and we continue to enhance our open ecosystem of solutions that can run either independently or in conjunction with our clients' choice of our leading accounting and tax products including SAP, Microsoft, and Netsuite." 

Full Year 2021 Financial Highlights

  • Software revenue was $19.0 million, up 59% year-over-year
  • Total revenue was $20.7 million, up 49% year-over-year
  • Gross profit was $12.6 million, up 67% year-over-year. Gross profit margin was 61% in 2021 compared to 54% in 2020
  • Loss from operations was $33.4 million, up $6.6 million year-over-year
  • Net loss was $33.6 million, up $6.7 million year-over-year
  • Adjusted EBITDA* loss was $7.9 million compared with a loss of $11.7 million in 2020, a 32% improvement year-over-year
  • Cash and Restricted Cash was $14.4 million as of December 31, 2021

*See "Explanation of Non-GAAP Financial Measures" below        

2021 Metrics and Operating Highlights

  • Total SaaS ARR of $20.9 million, up 51% year-over-year
  • Average new business deal size up 15% year-over-year
  • Q4 New Bookings ARR of approximately $1.5 million, representing a quarterly record for Akerna
  • Transaction volume up 48% year-over-year
  • Retail order spend up 42% year-over-year
  • Acquisition of 365 Cannabis, cannabis business management software built on Microsoft's Dynamics Office 365 Business Central
  • Acquisition of Viridian, cannabis business management software built on SAP Business One
  • Launched Akerna Connect, enabling cannabis dispensaries to offer online ordering, loyalty programs, and text messaging
  • Secured First Federal Cannabis Regulatory Contract with St. Vincent and the Grenadines
  • Issued $20 million in convertible debt to replace existing convertible debt at more attractive terms
  • Achieved SAP® Certified Integration with SAP NetWeaver® for MJ Platform

Fourth Quarter 2021

  • Software revenue was $6.2 million, up 80% year-over-year
  • Total revenue was $6.6 million, up 61% year-over-year
  • Gross profit was $3.8 million, up 42% year-over-year. Gross profit margin was 58% in the fourth quarter compared to 66% in the fourth quarter of 2020.
  • Loss from operations was $20.1 million, up $9.9 million year-over-year
  • Net loss was $19.5 million, up $7.2 million year-over-year
  • Adjusted EBITDA* loss was $2.9 million compared with a loss of $1.9 million in the fourth quarter 2020

*See "Explanation of Non-GAAP Financial Measures" below        

NOTE:

The foregoing financial results are preliminary in nature. Final financial results and other disclosures will be reported in Akerna's annual report on Form 10-K and may differ materially from the results and disclosures today due to, among other things, the completion of final review procedures, the occurrence of subsequent events or the discovery of additional information. You are encouraged to review the Form 10-K in detail.

Conference Call Details

Akerna will host a conference call, tomorrow, Tuesday March 22, 2022 at 8:30 AM ET and will provide prepared remarks to update investors on these results, with a live Q&A Session to follow.

Any interested parties who would like to participate in the call by phone are encouraged to dial Toll-Free: 1-877-407-3982, or Toll / International: +1-201-493-6780 at least 5 minutes prior to the start of the call.  The Conference ID is 13727329.  The conference call will also be available via a live, listen-only webcast and can be accessed over the internet through the Investor Relations section of Akerna's website, https://ir.akerna.com/

About Akerna
Akerna (Nasdaq: KERN) is an enterprise software company focused on compliantly serving the cannabis, hemp, and CBD industry. First launched in 2010, Akerna has tracked more than $30 billion in cannabis sales to date and is the first cannabis software company listed on Nasdaq. The company's cornerstone technology, MJ Platform, the world's leading infrastructure as a service platform, powers retailers, manufacturers, brands, distributors, and cultivators.

To be included on the Company's email distribution list, please sign up at https://ir.akerna.com/news-events/email-alerts

For more information, visit https://www.akerna.com/.

Forward Looking Statements

Certain statements made in this release are "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. Such forward-looking statements include but are not limited to statements regarding our preliminary financial results which may differ from our final financial results, our position for expected new market expansion and US federal progress, our continued growth of CARR and the number and amount of transactions running on Akerna, our continued enhancement of our open ecosystem of solutions and the timing for management's conference call in relation to our quarterly results. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of significant known and unknown risks, uncertainties, assumptions, and other important factors, many of which are outside Akerna's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others that may affect actual results or outcomes, include (i) Akerna's ability to maintain relationships with customers and suppliers and retain its management and key employees, (ii) changes in applicable laws or regulations, (iii) changes in the market place due to the coronavirus pandemic or other market factors, (iv) and other risks and uncertainties disclosed from time to time in Akerna's filings with the U.S. Securities and Exchange Commission, including those under "Risk Factors" therein.  You are cautioned not to place undue reliance on forward-looking statements. All information herein speaks only as of the date hereof, in the case of information about Akerna, or the date of such information, in the case of information from persons other than Akerna. Akerna undertakes no duty to update or revise the information contained herein. Forecasts and estimates regarding Akerna's industry and end markets are based on sources believed to be reliable; however, there can be no assurance these forecasts and estimates will prove accurate in whole or in part.

Explanation of Non-GAAP Financial Measures:

In addition to our results determined in accordance with U.S. generally accepted accounting principles ("GAAP"), we believe the following non-GAAP measures are useful in evaluating our operating performance. We use the following non-GAAP financial information to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP.

Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. Other companies, including companies in our industry, may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as tools for comparison.  We attempt compensate for these limitations by providing specific information regarding the GAAP items excluded from these non-GAAP financial measures.

Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures and not rely on any single financial measure to evaluate our business.

Adjusted EBITDA

We believe that Adjusted EBITDA, when considered with the financial statements determined in accordance with GAAP, is helpful to investors in understanding our performance and allows for comparison of our performance and credit strength to our peers. Adjusted EBITDA should not be considered alternatives to net loss as determined in accordance with GAAP as indicators of our performance or liquidity.

We define EBITDA as net loss before interest expense, provision for income taxes, depreciation and amortization. We calculate Adjusted EBITDA as EBITDA further adjusted to exclude the effects of the following items for the reasons set forth below:

  • Impairment of long-lived assets, as this is a non-cash, non-recurring item, which effects the comparability of results of operations and liquidity;
  • Stock-based compensation expense, because this represents a non-cash charge and our mix of cash and share-based compensation may differ from other companies, which effects the comparability of results of operations and liquidity;
  • Cost incurred in connection with business combinations and mergers that are required to be expensed as incurred in accordance with GAAP, because business combination and merger related costs are specific to the complexity and size of the underlying transactions as well as the frequency of our acquisition activity these costs are not reflective of our ongoing operations;
  • Costs incurred in connection with non-recurring financing, including fees incurred as a direct result of electing the fair value option to account for our debt instruments;
  • Restructuring charges, which include costs to terminate a lease and the related write off of leasehold improvements and furniture, as we believe these costs are not representative of operating performance;
  • Gain on forgiveness of PPP loan, as this is a one-time forgiveness of debt that is not recurring across all periods and we believe inclusion of the gain is not representative of operating performance;
  • Equity in losses of investees because our share of the operations of investees is not representative of our own operating performance and may not be monetized for a number of years; and
  • Changes in fair value of contingent consideration because these adjustments are not recurring across all periods and we believe these costs are not representative of operating performance.
  • Other non-operating expenses which includes a one-time gain on debt extinguishment and a one-time loss on disposal of fixed assets, which effects the comparability of results of operations and liquidity.

Related Non-GAAP Expense Measure

We reference in our earnings call certain non-GAAP expense measures, including non-GAAP Operating Expenses, non-GAAP Product Development Expense, non-GAAP Sales and Marketing Expenses, and non-GAAP General and Administrative Expenses.  We believe that these non-GAAP financial measures, when considered with the financial statements determined in accordance with GAAP, are helpful to management and investors in understanding our performance quarter over quarter and to the comparable quarter in our prior fiscal year by excluding the same items we exclude from EBITDA to derive Adjusted EBITDA, as set forth above (stock-based compensation expense, costs incurred with business combinations and mergers, costs incurred in connection with non-recurring financing fees, restructuring charges, equity in earnings (losses) of investees and changes in fair value of contingent consideration) for the same reasons stated above, principally, that these expenses are not, in management's opinion, easily comparable across reporting periods, are not reflective of ongoing operations and/or are not representative of our operating performance.

We define non-GAAP Operating Expenses, non-GAAP Product Development Expense, non-GAAP Sales and Marketing Expenses and non-GAAP General and Administrative Expenses as, in each case, the corresponding GAAP financial measure (Operating Expenses, Product Development Expense, Sales and Marketing Expenses and General and Administrative Expenses) excluding that portion of depreciation and amortization, stock-based compensation expense, business combinations and merger related costs, non-recurring financing fees, restructuring charges, impairment of long-lived assets, and equity in losses of investees and changes in fair value of contingent consideration that is attributable to that specific GAAP financial measure.

This non-GAAP expense measure should not be considered an alternative to the corresponding GAAP financial measure as determined in accordance with GAAP as an indicator of our performance or liquidity.  Please review the tables provided below, for a reconciliation of this non-GAAP expense measure to the corresponding GAAP financial measure.

The reconciliation of the above non-GAAP financial measures for the quarter ended December 31, 2021 are presented in the tables below.  For comparative purposes, the reconciliation of these non-GAAP financial measures in the prior quarter ended September 30, 2021 are contained in our press release for that quarter dated November 8, 2021 and available on our website at www.akerna.com or in our current report on Form 8-K filed with the Securities and Exchange Commission on November 8, 2021 and available here: https://www.sec.gov/Archives/edgar/data/1755953/000121390021058240/ea150400ex99-1_akernacorp.htm

 

 

AKERNA CORP.

Consolidated Balance Sheets

(unaudited)

 
 

December 31,

   

December 31,

 
 

2021

   

2020

 

Assets

             

Current assets:

             

Cash

$

13,934,265

   

$

17,840,640

 

Restricted cash

 

508,261

     

500,000

 

Accounts receivable, net

 

1,403,774

     

1,753,547

 

Prepaid expenses and other current assets

 

2,383,764

     

2,458,727

 

             Total current assets

 

18,230,064

     

22,552,914

 
               

Fixed assets, net

 

153,151

     

1,193,433

 

Investment, net

 

226,101

     

233,664

 

Capitalized software, net

 

7,311,676

     

3,925,739

 

Intangible assets, net

 

21,609,794

     

7,388,795

 

Goodwill

 

44,692,195

     

41,874,527

 

Other noncurrent assets

 

9,700

     

 

Total assets

$

92,232,681

   

$

77,169,072

 
               

Liabilities and Equity

             
               

Current liabilities:

             

Accounts payable, accrued expenses and other current liabilities

$

6,063,520

   

$

3,188,576

 

Contingent consideration payable

 

6,300,000

     

 

Deferred revenue

 

3,543,819

     

843,900

 

Current portion of long-term debt

 

13,200,000

     

11,707,363

 

Derivative liability

 

63,178

     

311,376

 

            Total current liabilities

 

29,170,517

     

16,051,215

 
               

 Long-term portion of deferred revenue

 

582,676

     

 

 Long-term debt, less current portion

 

4,105,000

     

3,895,237

 

 Deferred tax liabilities

 

675,291

     

 
               

Total liabilities

 

34,533,484

     

19,946,452

 
               

Commitments and contingencies (Note 14)

             
               

Equity:

             

 Preferred stock, par value $0.0001; 5,000,000 shares authorized, 1 share special voting preferred
stock issued and outstanding at December 31, 2021 and December 31, 2020

 

     

 

 Special voting preferred stock, par value $0.0001; 1 share authorized, issued and outstanding as of December 31, 2021 and December 31, 2020, with $1 preference in liquidation; exchangeable shares, no par value, 309,286 and 2,667,349 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively (See Note 4)

 

2,366,038

     

20,405,219

 

 Common stock, par value $0.0001; 75,000,000 shares authorized, 31,001,884 and 19,901,248, issued and outstanding at December 31, 2021 and December 31, 2020, respectively

 

3,100

     

1,990

 

Additional paid-in capital

 

146,027,258

     

94,086,433

 

Accumulated other comprehensive loss

 

61,523

     

(91,497)

 

Accumulated deficit

 

(90,758,722)

     

(57,179,525)

 

            Total equity

 

57,699,197

     

57,222,620

 

Total liabilities and equity

$

92,232,681

   

$

77,169,072

 

 

 

AKERNA CORP.

 Condensed Consolidated Statements of Operations

(unaudited)

 
 

For the Three Months Ended

 

For the Year Ended

 
 

December 31,

 

December 31,

 
 

2021

   

2020

 

2021

   

2020

 

Revenue

                   

      Software

$

6,188,569

   

$

3,443,392

 

$

18,998,409

   

$

11,963,028

 

      Consulting

 

375,380

     

583,512

   

1,510,413

     

1,739,683

 

      Other revenue

 

64,612

     

83,876

   

176,152

     

196,257

 

     Total revenue

 

6,628,561

     

4,110,780

   

20,684,974

     

13,898,968

 

Cost of revenue

 

2,779,558

     

1,401,103

   

8,119,487

     

6,355,825

 

Gross profit

 

3,849,003

     

2,709,677

   

12,565,487

     

7,543,143

 
                             

Operating expenses

                           

        Product development

 

1,754,130

     

1,407,263

   

6,271,966

     

5,129,814

 

      Sales and marketing

 

3,543,653

     

1,830,526

   

9,108,173

     

8,085,897

 

      General and administrative

 

2,115,790

     

1,964,880

   

10,422,207

     

11,018,356

 

      Depreciation and amortization

 

2,129,715

     

836,215

   

5,735,150

     

3,223,844

 

      Impairment of long-lived assets

 

14,383,310

     

6,887,000

   

14,383,310

     

6,887,000

 

     Total operating expenses

 

23,926,598

     

12,925,884

   

45,920,806

     

34,344,911

 

Loss from operations

 

(20,077,595)

     

(10,216,207)

   

(33,355,319)

     

(26,801,768)

 
                             
                             

Other (expense) income:

                           

      Interest (expense) income, net

 

(355,710)

     

(189,397)

   

(1,531,497)

     

(161,646)

 

      Change in fair value of convertible notes

 

665,000

     

(1,739,273)

   

(1,365,904)

     

(195,273)

 

      Change in fair value of derivative liability  

 

97,023

     

(15,794)

   

248,198

     

376,811

 

       Gain on forgiveness of PPP Loan

 

     

   

2,234,730

     

 

      Other (expense) income, net

 

186,177

     

(59,273)

   

186,420

     

(59,397)

 

     Total other (expense) income

 

592,490

     

(2,003,737)

   

(228,053)

     

(39,505)

 
                             

Net loss before income taxes and equity in losses of investee

 

(19,485,105)

     

(12,219,944)

   

(33,583,372)

     

(26,841,273)

 

       Income tax expense

 

22,309

     

(200)

   

11,739

     

(31,185)

 

Equity in losses of investee

 

     

(11,109)

   

(7,564)

     

(16,335)

 
                             

Net loss

 

(19,485,796)

     

(12,231,253)

   

(33,579,197)

     

(26,888,793)

 

Net loss attributable to noncontrolling interest in consolidated subsidiary  

 

     

   

     

858,574

 

Net loss attributable to Akerna shareholders

$

(19,462,796)

   

$

(12,231,253)

 

$

(33,579,197)

   

$

(26,030,219)

 
                             

Basic and diluted weighted average common stock outstanding

 

30,741,422

     

18,138,921

   

25,641,950

     

14,414,503

 

Basic and diluted net loss per common share

$

(0.63)

   

$

(0.67)

 

$

(1.31)

   

$

(1.81)

 

 

 

AKERNA CORP.

Consolidated Statements of Cash Flows

(unaudited)

 
   

Year Ended
December 31,

   

Year Ended
December 31,

 
   

2021

     

2020

 

Cash flows from operating activities

               

Net Loss

$

(33,579,197)

     

$

(26,888,791)

 

Adjustment to reconcile net loss to net cash used in operating activities

               

Equity in losses of investment

 

7,564

       

16,335

 

Bad debt expense

 

556,890

       

442,986

 

Stock-based compensation expense

 

2,070,359

       

1,958,173

 

Loss on write off of fixed assets

 

1,045,179

       

 

Gain on forgiveness of PPP loan

 

(2,234,730)

       

 

Depreciation and amortization

 

5,735,149

       

3,223,844

 

Amortization of deferred contract costs

 

492,683

       

228,766

 

Non-cash interest expense

 

1,517,273

       

32,727

 

Foreign currency loss

 

21,497

       

 

Impairment of long-lived assets

 

14,383,310

       

6,887,000

 

Gain on debt extinguishment

 

(186,177)

       

 

Loss on sale of fixed asset

 

       

84,835

 

            Debt issuance costs

 

       

1,177,390

 

Change in fair value of convertible notes

 

1,365,904

       

195,273

 

Change in fair value of derivative liability

 

(248,198)

       

(376,811)

 

Change in fair value of contingent consideration 

 

       

(1,991,000)

 

Changes in operating assets and liabilities:

               

Accounts receivable

 

888,745

       

608,524

 

Prepaid expenses and other current assets

 

(85,623)

       

(810,218)

 

Other assets

 

       

41,925

 

Accounts payable, accrued expenses and other current liabilities

 

1,522,527

       

(1,523,253)

 

Deferred revenue

 

(1,010,118)

       

(601,177)

 

Net cash used in operating activities

 

(7,736,963)

       

(17,293,472)

 
                 

Cash flows from investing activities

               

Developed software additions

 

(5,427,229)

       

(3,838,294)

 

Furniture, fixtures, and equipment additions

 

(39,263)

       

(168,839)

 

Cash paid for business combinations, net of cash acquired

 

(4,941,592)

       

(5,156,459)

 

Investment in equity method investee

 

       

 

Net cash used by investing activities

 

(10,408,084)

       

(9,163,592)

 
                 

Cash flows from financing activities

               

Value of shares withheld related to tax withholdings

 

(520,395)

       

 

Proceeds from stock offering, net

 

1,828,119

       

 

Proceeds from the issuance of long term debt

 

18,000,000

       

 

Payments of principal amounts of debt

 

       

 

Payments on debt

 

(5,079,412)

       

(1,500,000)

 

Proceeds from the issuance of common stock

 

       

29,164,600

 

Offering costs from the issuance of common stock

 

       

(2,145,010)

 

Net cash provided by financing activities

 

14,228,312

       

25,519,590

 

Effect of exchange rate changes on cash and restricted cash

 

18,621

   

(2,783)

 

Net (decrease) increase in cash and restricted cash

$

(3,898,114)

 

$

(940,257)

 

Cash and restricted cash - beginning of period

 

18,340,640

   

19,280,897

 
             

Cash and restricted cash - end of period

$

14,442,526

 

$

18,340,640

 

Cash paid for taxes

$

10,570

 

$

 

Cash paid for interest

$

461,764

 

$

150,000

 
                     

 

 

Akerna Corp.

Earnings Before Interest, Taxes, Depreciation and Amortization, and Adjusted EBITDA

The reconciliation of net loss to EBITDA and Adjusted EBITDA is as follows:

(unaudited)

 
 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

2021

 

2020

 

2021

 

2020

Net loss

$ (19,462,796)

 

$  (12,231,252)

 

$ (33,579,197)

 

$ (26,888,791)

Adjustments:

             

 Interest expense (income)

355,710

 

189,397

 

1,531,497

 

161,646

 Change in fair value of convertible notes 

(665,000)

 

1,739,273

 

1,365,904

 

195,273

 Change in fair value of derivative liability

(97,023)

 

15,794

 

(248,198)

 

(376,811)

      Income tax expense

(22,309)

 

200

 

(11,739)

 

31,185

     Depreciation and amortization

2,129,715

 

836,215

 

5,735,150

 

3,223,844

EBITDA

$ (17,761,703)

 

$  (9,450,373)

 

$ (25,206,583)

 

$ (23,653,654)

Impairment of long-lived assets

14,383,310

 

6,887,000

 

14,383,310

 

6,887,000

Stock-based compensation expense

465,476

 

516,169

 

1,967,817

 

1,871,069

Business combination and merger related costs 

159,583

 

142,639

 

449,940

 

3,339,864

Non-recurring financing fees

48,328

 

96,427

 

458,691

 

1,316,984

Restructuring charges

(33,868)

 

421,957

 

2,419,908

 

490,146

Changes in fair value of contingent consideration

 

(604,000)

 

 

(1,991,000)

Gain on forgiveness of PPP loan

 

 

(2,234,730)

 

Equity in losses of investee

 

11,109

 

7,564

 

16,335

Other non-operating expenses

(186,177)

 

59,273

 

(186,177)

 

59,397

 Adjusted EBITDA

$ (2,925,051)

 

$  (1,919,799)

 

$ (7,940,260)

 

$ (11,663,859)

 

 

Akerna Corp.

The reconciliation of operating expenses to non-GAAP operating expenses is as follows:

(unaudited)

 
 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

2021

 

2020

 

2021

 

2020

Operating Expenses

$ 23,926,599

 

$ 12,925,883

 

$ 45,920,806

 

$ 34,344,910

Adjustments:

             

Depreciation and amortization

2,129,715

 

836,215

 

5,735,150

 

3,223,844

Stock-based compensation expense

440,772

 

474,196

 

1,832,692

 

1,784,532

Business combination and merger related costs 

159,583

 

142,639

 

449,940

 

3,339,864

Non-recurring financing fees

48,328

 

96,427

 

458,691

 

1,316,984

Restructuring charges

(33,868)

 

421,957

 

2,420,151

 

490,146

    Impairment of long-lived assets

14,383,310

 

6,887,000

 

14,383,310

 

6,887,000

Changes in fair value of contingent consideration

 

(604,000)

 

 

(1,991,000)

Non-GAAP Operating Expenses

$ 6,798,759

 

$ 4,671,449

 

$ 20,640,872

 

$ 19,293,540

 

 

Akerna Corp.

The reconciliation of product development expense to non-GAAP product development expense is as follows:

(unaudited)

 
 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

2021

 

2020

 

2021

 

2020

Product development expense

$1,754,130

 

$1,407,263

 

$6,271,966

 

$5,129,814

Stock-based compensation expense

258,415

 

229,650

 

833,079

 

548,233

Non-GAAP product development expense

$1,495,715

 

$1,177,613

 

$5,438,887

 

$4,581,581

 

 

Akerna Corp.

The reconciliation of sales and marketing expense to non-GAAP sales and marketing expenses is as follows:

(unaudited)

 
 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

2021

 

2020

 

2021

 

2020

Sales and marketing expense

$3,543,653

 

$1,830,526

 

$9,108,173

 

$8,085,897

Stock-based compensation expense

149,960

 

91,521

 

516,751

 

390,810

Non-GAAP sales and marketing expense

$3,393,693

 

$1,739,005

 

$8,591,422

 

$7,695,087

 

 

Akerna Corp.

The reconciliation of general and administrative expense to non-GAAP general and administrative expenses is as follows:

(unaudited)

 

 
 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

2021

 

2020

 

2021

 

2020

General and administrative expense

$   2,115,790

 

$ 1,964,880

 

$ 10,422,207

 

$ 11,018,356

Adjustments:

             

Stock-based compensation expense

32,397

 

153,026

 

482,862

 

845,492

Business combination and merger related costs 

159,583

 

142,639

 

449,940

 

3,339,864

Non-recurring financing fees

48,328

 

96,427

 

458,691

 

1,316,984

Restructuring charges

(33,868)

 

421,957

 

2,420,151

 

490,146

Changes in fair value of contingent consideration

 

(604,000)

 

 

(1,991,000)

Non-GAAP general and administrative expense

$1,909,350

 

$ 1,754,831

 

$ 6,610,563

 

$ 7,016,870

 

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/akerna-announces-fourth-quarter-and-full-year-2021-financial-results-301507041.html

SOURCE Akerna

 
 
Company Codes: NASDAQ-NMS:KERN
 

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