(All currency is rounded to the nearest thousands, except share and per share amounts.)
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When comparing Creative Realities to other digital signage providers, our customers value the following competitive advantages:
? Breadth of solutions – Creative Realities is one of only a few companies in
the industry capable of providing the full portfolio of products and services
required to implement and run an effective digital signage network. We
leverage a ‘single vendor’ approach, providing clients with a one-stop-shop
for sourcing digital signage solutions from design through day two services.
? Managed labor pool – Unlike most companies in our industry, we have a curated
labor pool including thousands of qualified and vetted field technicians
available to service clients quickly nationwide. We can meet tight schedules
content for digital signage experiences or creating new content, an activity
for which the Company has won several design awards in recent years. In each
? Network scalability and reliability – Our software as a service (“SaaS”)
content management platforms power some of the largest and most complex
digital signage networks in
enterprise scale projects. This also provides us purchasing power to source
products and services for our customers, enabling us to deliver cost
effective, reliable and powerful solutions to small and medium size business
However, efficiently scheduling advertising content into digital signage
playlists to meet campaign objectives can be a challenging and labor-intensive
process. AdLogic, our home-grown, content management-agnostic platform,
automates this process, allowing network owners to capture more revenue with
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? Media sales – Few, if any other digital signage solution providers, can offer
their clients media sales as a service. We have in-house media sales expertise
to elevate conversations with clients interested in better understanding
network monetization. We believe this meaningful differentiation in the sales
process provides an additional revenue stream to Creative Realities compared
? Market sector expertise – Creative Realities has in-house experts in key
market segments such as automotive, retail, quick-serve restaurants (QSR),
convenience stores, and Digital Out of Home (DOOH) advertising. Our expertise
in these business segments enables our teams to provide meaningful business
conversations and offer tailored solutions with prospects and customers to
their unique business objectives. These experts build industry relationships
and create thought leadership that drives lead flow and new opportunities for
? Logistics – Implementing a large digital signage project can be a logistics
nightmare that can stall an initiative even before deployment. Our expertise
in logistics improves deployment efficiency, reduces delays and problems, and
? Technical support – Digital signage networks present unique challenges for
corporate IT departments. Creative Realities helps simplify and improve end
user support by leveraging our own
support is required, it can be dispatched from the NOC, leveraging our managed
? Integrations and Application Development – The future of digital signage is
not still images and videos on a screen. Interactive applications and
integrations with other data sources will dominate the future. From social
media feeds to corporate data stores to Point of Sale (“POS”) systems, our
? Hardware support – A number of digital signage providers sell a proprietary
media player or align themselves with just one operating system. We utilize a
range of media players including Windows, Android and BrightSign to provide
clients the flexibility they need to select the appropriate hardware for any
application knowing the entire network can still be served by a single digital
signage platform, reducing complexity and improving the productivity of their
The three primary sources of revenue for the company are:
? Hardware sales from reselling digital signage hardware from original equipment
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? Recurring subscription licensing and support revenue from our digital signage
software platforms, which are generally sold via a SaaS model. These include:
o Reflect Xperience, a web-based interface that allows customers to give content
scheduling access to local users via the web or mobile devices, while still
o Reflect AdLogic, the Company’s ad management platform for digital signage
o Reflect Clarity, the Company’s menu board solution, which has become a market
interactive experience by allowing guests to engage using their mobile device
o iShowroomProX, an omni-channel digital sales support platform targeted at
original equipment manufacturers in the transportation sector, which
integrates with dozens of key data services including dealer inventory at the
delivery of new vehicles in the transportation sector, providing measurable
lift in customer satisfaction scores and connected vehicle enrollments and
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Rejection of unsolicited offer
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Critical Accounting Policies and Estimates
? Allocate the transaction price to the identified performance obligations
See Note 2 Summary of Significant Accounting Policies and Note 4
Allowance for Doubtful Accounts
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We recognize in income the effect of a change in tax rates on deferred tax assets and liabilities in the period that includes the enactment date.
Impact of Recently Issued Accounting Pronouncements
Note: All dollar amounts reported in Results of Operations are in thousands, except per-share information.
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Year Ended
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Research and Development Expenses
General and Administrative Expenses
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Depreciation and Amortization Expenses
See Note 8 Loans Payable to the Consolidated Financial Statements for a discussion of the Company’s debt and related interest expense obligations.
Changes in Fair Value of Warrant Liability
Change in Fair Value of Equity Guarantee
Change in fair value of Convertible Loan
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Gain/Loss on Settlement of Obligations
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Supplemental Operating Results on a Non-GAAP Basis
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Liquidity and Capital Resources
See Note 1 Nature of Organization and Operations to the accompanying Consolidated Financial Statements for a detailed discussion of liquidity and financial resources.
Off-Balance Sheet Arrangements
During the year ended
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