Boxlight IPO: Everything You Need to Know

Boxlight IPOBoxlight Corporation (NASDAQ:BOXL) becomes public on Friday, August 14th. The company has submitted an S-1 filing to the Security and Exchange commission (SEC) on June 8, 2015. Here’s what investors need to know prior to the Boxlight initial public offering (IPO). (Source: SEC, last accessed August 6, 2015.)

Who is Boxlight?

The company was incorporated for the purpose of selling sophisticated educational products. They intended to enter into LED production by producing interactive LED panels that primarily target the education industry. Currently, the company has 140 employees and is located in Lawrenceville, Georgia.

What is Boxlight’s Business Model?

Boxlight is actually three companies molded into one. Globisens is an Israel-based company that mainly focuses on designing, producing and distributing science and technology data-logging products. Genesis is a traditional vendor that is responsible for sales and support for education and learning solution technologies. And finally, there’s Boxlight Holdings, which is the core of the overall business that focuses on design, production, sales, and marketing of LED panels.

Boxlight controls every step of the business from manufacturing to distribution. This gives the company a huge advantage over competitors. By decreasing transportation expenses and reducing turnaround time, Boxlight can reduce costs and improve efficiency.

What is Boxlight’s Revenue?

Boxlight generated nearly $25.0 million in sales in 2014, 6.3% higher from the $23.5 million in 2013. The company recorded a net loss of $1.13 million compared to $304,000 in 2013 due to their expansion strategy.

Net income continued to decline, but at a much slower pace. Net income decreased to nearly $800,000 in the first three months of this year compared to slightly higher than $600,000 in the same period last year.

Net income is expected to decline further as the company plans to expand its operations. In the first three months of 2015, the company recorded $5.2 million in revenue—significantly higher than the $4.3 million in the same period in 2014.

What is Boxlight’s IPO Price?

The shares prices are expected to range between $10.00 and $12.00. The company hopes to raise $20.0 million in its IPO. Aegis Capital Corp is the underwriter and nearly two million shares are expected to be issued.

What is Boxlight’s Stock Symbol?

Boxlight has requested to be listed on the NASDAQ under the ticker symbol “BOXL.”

How Will Boxlight Use the Money?

The company plans to use the net proceeds for the IPO to expand its operations; in particular, introducing a new software platform for its products. The rest will be allocated to increase working capital and acquisitions.