Company: CTLPP
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0001628280-25-004271
Chunk: 109

Company: CANTALOUPE, INC.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 2
Chunk 109
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,597 Plus: stock-based compensation (a)943 1,111 1,830 3,043 Plus: integration and acquisition expenses (b)44 93 241 171 Plus: auditor transition costs (c)6 — 369— Plus: remediation expenses (d)— 453 — 497 Adjustments to EBITDA993 1,657 2,440 3,711 Adjusted EBITDA$10,668 $8,487 $19,615 $16,308 

(a) We have excluded stock-based compensation, as it does not reflect our cash-based operations.(b) We have excluded expenses incurred in connection with business acquisitions as it does not represent recurring costs or charges related to our core operations.

(c) Costs incurred as a result of former auditor consent procedures. See Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure of the Company's Annual Report.

(d) Consists of one-time project expenses incurred in connection with remediation of previously identified material weaknesses in our internal control over financial reporting which were remediated during fiscal year ended June 30, 2024. See Item 9A Section e - Remediation of Prior Material Weaknesses of the Company's Annual Report.

LIQUIDITY AND CAPITAL RESOURCES 

Sources of Funds

Historically, we have financed our operations primarily through cash from operating activities, debt financings, and equity issuances. The Company's primary sources of capital available are cash and cash equivalents on hand of $27.7 million as of December 31, 2024 and the cash that we expect to be provided by operating activities by the Company.

Uses of Cash

32

The Company believes that its current financial resources will be sufficient to fund its current twelve-month operating budget from the date of issuance of these condensed consolidated financial statements. Our primary focus as part of our core operations to increase cash flow from operating activities is to prioritize collection efforts to reduce outstanding accounts receivable, utilize existing inventory to support equipment sales over the next year, focusing on various operational efficiencies to improve overall profitability of the business and continued to grow our business both domestically and internationally.

Net cash used in operating activities

For the six months ended December 31, 2024, net cash used in operating activities was $11.5 million which is the result of $32.8 million of cash utilized by working capital accounts, offset by our net income of $8.5