Phunware, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2022

The following table sets forth our concentration of accounts receivable, net of specific allowances for doubtful accounts.


	March 31, 2022		December 31, 2021
Customer A	19	%	—	%
Customer B	14	%	—	%
Customer C	10	%	18	%
Customer D	—	%	20	%

The following table sets forth our concentration of revenue sources as a percentage of total net revenues.


	Three Months Ended March 31,
	2022		2021
Customer B	1	%	15	%
Customer E	—	%	17	%
Customer F	—	%	13	%
Customer G	1	%	10	%

Schedule of Digital Assets

The following tables set forth changes in our bitcoin and ethereum holdings:


Bitcoin	Digital Asset Original Cost Basis		Digital Asset Impairment Losses		Digital Asset Carrying Value
Balance as of December 31, 2021	$	36,963	$	(8,554)	$	28,409
Purchases	489		—		489
Received from customers, net of expenses	36		—		36
Impairment loss	—		(7,633)		(7,633)
Balance as of March 31, 2022	$	37,488	$	(16,187)	$	21,301


Ethereum	Digital Asset Original Cost Basis		Digital Asset Impairment Losses		Digital Asset Carrying Value
Balance as of December 31, 2021	$	4,714	$	(670)	$	4,044
Purchases	—		—		—
Received from customers, net of expenses	491		—		491
Impairment loss	—		(1,658)		(1,658)
Balance as of March 31, 2022	$	5,205	$	(2,328)	$	2,877

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

The following table sets forth common stock equivalents that have been excluded from the computation of dilutive weighted average shares outstanding as their inclusion would have been anti-dilutive:


	Three Months Ended March 31,
	2022	2021
Convertible notes	—	4,920,000
Warrants	5,636,801	5,996,112
Options	897,229	1,087,033
Restricted stock units	3,480,102	5,545,454
Restricted shares	—	574
Total	10,014,132	17,549,173

Financial Instruments Measured at Fair Value

Determining which category an asset or liability falls within the hierarchy requires significant judgment. Our financial instruments measured at fair value as of March 31, 2022 are set forth below:


	Level 1		Level 2		Level 3		Total
Assets:
Digital assets	$	24,244	$	—	$	—	$	24,244
Total	$	24,244	$	—	$	—	$	24,244

Liabilities:
Warrant liability	$	—	$	3,818	$	—	$	3,818
Total	$	—	$	3,818	$	—	$	3,818

Our financial instruments measured at fair value as of December 31, 2021 are set forth below:


	Level 1		Level 2		Level 3		Total
Assets:
Digital assets	$	32,581	$	—	$	—	$	32,581
Total	$	32,581	$	—	$	—	$	32,581

	Level 1		Level 2		Level 3		Total
Liabilities:
Warrant liability	$	—	$	3,605	$	—	$	3,605
Total	$	—	$	3,605	$	—	$	3,605

Summary of Calculated Aggregate Fair Values and Assumptions

The following table sets forth the assumptions used to calculate the fair values of the liability classified warrant issued in connection with our 2020 Convertible Notes as of the dates presented:


	March 31, 2022			December 31, 2021
Strike price per share	$	2.25		$	2.25
Closing price per share	$	2.78		$	2.63
Term (years)	1.28			1.53
Volatility	200		%	186		%
Risk-free rate	1.87		%	0.56		%
Dividend Yield	—			—