Increased Revenue by 48% Year-Over-Year; Finished the Year with Two Consecutive

Quarters of Positive Cash Flow (Exclusive of Non-Recurring Items)

Mt. Olive, NJ, March 31, 2022 (GLOBE NEWSWIRE) -- Vislink (NASDAQ:VISL), a global technology leader in the capture, delivery and management of high quality, live video and associated data in the media & entertainment, law enforcement and defense markets, announced its results for the year ended December 31, 2021. Company management will host a live video conference call to discuss its 2021 results on Friday, April 1, 2022, at 10:00 a.m. Eastern (9:00 a.m. Central) which will be followed by Q&A. The conference call will be accessible at the following link: https://marketscale.com/live/vislink/. An archived replay will be made available following the conclusion of the call.

Financial Update:

For the year ended December 31, 2021, revenue was $33.8 million, compared to $22.9 million for the year ended December 31, 2020.
Gross margins were 55.2% of revenue for the year ended December 31, 2021, compared to 39.4% of revenue for the year ended December 31, 2020.
For the year ended December 31, 2021, net loss attributable to common shareholders was $15.4 million, or $(0.35) per share, compared to net loss of $17.6 million, or $(1.19) per share for the year ended December 31, 2020.
Non-recurring items accounted for $13.5 million of the $15.4 million net loss. These included the following:
- Two non-cash items, a write-off of goodwill necessitated by accounting rules, and a charge for the value of vested options and restricted shares associated with the company's long-term employee incentive plan, together represented $11.9 million, or $(0.27) per share.
- One-time advisory fees associated with the Mobile Viewpoint acquisition represented $1.6 million, or $(0.04) per share.
EBITDA (earnings before interest, taxes depreciation and amortization) for December 31, 2021 was negative $14 million compared to negative $16 million for the year ended December 31, 2020.
Ended the fourth quarter 2021 with $36.2 million in cash, compared to $5.2 million at the end of the fourth quarter of 2020.

"We are pleased to report that revenues for the full year 2021 were 48% higher than in the previous year," said Mickey Miller, CEO of Vislink. "We also ended the year on a strong note, with revenue reaching $11 million in the fourth quarter, which represented a 64% increase over the prior year. In addition, our quoting activity accelerated during the year, with new bookings growing over 100% in 2021 compared to the corresponding period in 2020. This solid sales growth, together with our commitment to controlling costs and judicious use of our finances, helped us end the year with two consecutive quarters of positive cash flow, exclusive of non-recurring items."

Mr. Miller continued, "In 2021, we finalized the acquisition of Mobile Viewpoint and successfully completed the integration of its personnel, products and technology platform into Vislink's operations. We also delivered technology to key worldwide events and customers during the year, including the U.S. Department of Defense, the Tokyo Summer Olympics, the NFL Super Bowl, Alabama Public Television, and the Extreme-E Racing Circuit. Our focus on technology leadership continued to drive strategic investment in new products, and we released several key products in 2021 that comprised almost 25% of our revenue for the entire year."

He concluded, "Looking forward, we foresee expanding growth opportunities in the sports, media and entertainment sectors. In these markets, our 5G and AI-powered solutions have the potential to drive the creation, distribution and monetization of completely new event content. In addition, there is the potential for significant opportunities in large-scale surveillance and reconnaissance projects in the MilGov space. In this sector, our real-time video transmission capabilities deliver the actionable information and situational awareness required by law enforcement and defense personnel. As a result, we believe we are well-positioned to capitalize on opportunities across our key markets throughout 2022, with the goal of realizing profitable and sustainable growth in our business."

Non-GAAP Financial Measure: EBITDA

To supplement our financial results presented in accordance with Generally Accepted Accounting Principles (GAAP), we are presenting EBITDA in this earning release and the related earning conference call. EBITDA is a non-GAAP financial measure that is not based on any standardized methodology prescribed by GAAP and is not necessarily comparable to similarly titled measures presented by other companies. We define EBITDA as our net income (loss), excluding the impact of depreciation and amortization expense and interest income (expense). We have presented EBITDA because it is a key measure used by our management and board of directors to understand and evaluate our operating performance, to establish budgets and to develop operational goals for managing our business. In particular, we believe that excluding the impact of these expenses in calculating EBITDA can provide a useful measure for period-to-period comparisons of our core operating performance.

About Vislink Technologies, Inc.

Vislink is a global technology business specializing in the collection, delivery, and management of high quality, live video and associated data from the scene of the action to the viewing screen. For the broadcast markets, Vislink provides solutions for the collection of live news, sports, and entertainment events. Vislink also furnishes the surveillance and defense markets with real-time video intelligence solutions using a variety of tailored transmission products. The Vislink team also provides professional and technical services utilizing a staff of technology experts with decades of applied knowledge and real-world experience to the areas of a terrestrial microwave, satellite, fiber optic, surveillance, and wireless communications systems, to deliver a broad spectrum of customer solutions. Vislink's shares of Common Stock are publicly traded on the Nasdaq Capital Market under the ticker symbol "VISL." For more information, visit www.vislink.com.

Note on Forward-looking Statements

Certain statements in this press release are forward-looking statements that involve substantial risks and uncertainties for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. This press release contains forward-looking statements that involve substantial risks and uncertainties for purposes of the safe harbor provided by the Private Securities Litigation Reform Act of 1995. Any statements, other than statements of historical fact included in this press release, including those regarding the Company's strategy, future operations, future financial position, projected expenses, prospects, plans, objectives of management, new capabilities, product and solutions launches, expected contract values, acquisitions integration, and expected market opportunities across the Company's operating segments, the effects of the COVID-19 pandemic, the sufficiency of the Company's capital resources to fund the Company's operations and any statements regarding future results are forward-looking statements. Vislink may not actually achieve the plans, carry out the intentions or meet the expectations or projections disclosed in any forward-looking statements such as the foregoing and you should not place undue reliance on such forward-looking statements. Such statements are based on management's current expectations and involve risks and uncertainties, including those discussed in Vislink's Annual Report on Form 10-K for the fiscal year ended December 31, 2021, filed with the SEC on March 31, 2022 and in subsequent filings with, or submissions to, the SEC.

The statements made in this press release speak only as of the date stated herein, and subsequent events and developments may cause the Company's expectations and beliefs to change. While the Company may elect to update these forward-looking statements publicly at some point in the future, the Company specifically disclaims any obligation to do so, whether as a result of new information, future events or otherwise, except as required by law. These forward-looking statements should not be relied upon as representing the Company's views as of any date after the date stated herein.

Contacts

Investor Relations:

investors@vislink.com

Media Relations:

Charlotte van Hertum

Charlotte.vanhertum@vislink.com

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(IN THOUSANDS EXCEPT NET LOSS PER SHARE DATA)

	For the Years Ended
	December 31,
	2021			2020
Revenue, net	$	33,882		$	22,882
Cost of Revenue and operating expenses
Cost of components and personnel		15,164			13,867
Inventory valuation adjustments		843			415
General and administrative expenses		22,039			17,024
Gain on lease termination		—			(21	)
Research and development		3,051			2,698
Loss on the abandonment of property and equipment		—			680
Impairment of inventory		—			3,801
Impairment of right-of-use assets		—			895
Impairment of goodwill		8,211			—
Amortization and depreciation		1,343			1,411
Total cost of revenue and operating expenses		50,651			40,770
Loss from operations		(16,769	)		(17,888	)
Other income (expenses)
Changes in fair value of derivative liabilities		22			8
Gain on settlement of related party obligations		—			331
Gain on settlement of debt		1,362			90
Other income		—			5
Interest expense, net		(29	)		(121	)
Total other income (expenses)		1,355			313
Net loss	$	(15,414	)	$	(17,575	)

Basic and diluted loss per share	$	(0.35	)	$	(1.19	)

Weighted average number of shares outstanding:
Basic and Diluted		43,484			14,811

Comprehensive loss:
Net loss	$	(15,414	)	$	(17,575	)
Unrealized loss on currency translation adjustment		(445	)		(59	)
Comprehensive loss	$	(15,859	)	$	(17,634	)

The accompanying notes are an integral part of these consolidated financial statements.

VISLINK TECHNOLOGIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)

	December 31,
	2021			2020
ASSETS
Current assets
Cash	$	36,231		$	5,190
Accounts receivable, net		9,069			4,525
Inventories, net		11,894			5,986
Prepaid expenses and other current assets		2,470			814
Total current assets		59,664			16,515
Right of use assets, operating leases		1,362			1,077
Property and equipment, net		1,173			1,138
Intangible assets, net		5,921			1,921
Total assets	$	68,120		$	20,651
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable	$	3,075		$	4,104
Accrued expenses		3,155			2,340
Notes payable		99			25
Current portion of the PPP loan		—			905
Operating lease obligations, current		560			475
Due to related parties		—			—
Customer deposits and deferred revenue		2,113			975
Derivative liabilities		—			22
Total current liabilities		9,002			8,846
Long-term portion of PPP loan		—			263
Operating lease obligations, net of current portion		1,507			1,545
Total liabilities		10,509			10,654
Commitments and contingencies (See Note 17)
Stockholders' equity
Preferred stock – $0.00001 par value per share: 10,000,000 shares authorized at December 31, 2021 and 2020; -0- shares issued and outstanding as of December 31, 2021 and 2020		—			—
Common stock, – $0.00001 par value per share, 100,000,000 shares authorized, 45,825,089 and 21,382,290 shares issued and 45,822,430 and 21,379,631 outstanding at December 31, 2021 and 2020, respectively		—			—
Additional paid-in capital		343,746			280,273
Accumulated other comprehensive income		(297	)		148
Treasury stock, at cost – 2,659 shares as of December 31, 2021 and 2020, respectively		(277	)		(277	)
Accumulated deficit		(285,561	)		(270,147	)
Total stockholders' equity		57,611			9,997
Total liabilities and stockholders' equity	$	68,120		$	20,651

The accompanying notes are an integral part of these consolidated financial statements.

Reconciliation of GAAP to Non-GAAP Results

VISLINK TECHNOLOGIES, INC.

RECONCILIATION OF GAAP to NON-GAAP RESULTS

YEAR ENDING DECEMBER 31, 2021

(IN THOUSANDS)

Reconciliation of net income to EBITDA
	Net loss	$	(15,414	)
	Interest expense		(29	)
	Amortization and depreciation		1,343
	EBITDA	$	(13,974	)

Vislink Reports Full Year 2021 Financial Results