Altigen Communications : Fiscal 2022 2nd Quarter Report

ALTIGEN COMMUNICATIONS, INC.

State of Incorporation: Delaware

670 N McCarthy Blvd, Suite 200

Milpitas, CA 95035

1. 597-9000
   www.altigen.com

SIC Code: 7373

QUARTERLY REPORT

For the quarterly period ended March 31, 2022

(the "Reporting Period")

The number of shares outstanding of our common stock, par value $0.001 per share ("common stock"), is 23,972,182 shares as of March 31, 2022.

The number of shares outstanding of our common stock was 23,748,432 shares as of September 30, 2021.

Indicate by check mark whether the company is a shell company (as defined in Rule 405 of the Securities Act of 1933 and Rule

12b-2 of the Exchange Act of 1934):

Yes:  No: 

Indicate by check mark whether the company's shell status has changed since the previous reporting period: Yes:  No: 

Indicate by check mark whether a change in control of the company has occurred over this reporting period: Yes:  No: 

For more information:

www.OTCQB.comTicker: ATGN

or

www.altigen.com

ALTIGEN COMMUNICATIONS, INC.

QUARTERLY REPORT

FOR SECOND QUARTER ENDED MARCH 31, 2022

TABLE OF CONTENTS

Item 1.	Exact Name of the Issuer and the Address of its Principal Executive Offices	3
Item 2.	Shares Outstanding	4
Item 3.	Consolidated Financial Statements (Unaudited)	5
	Consolidated Balance Sheets as of March 31, 2022 and September 30, 2021	5
	Consolidated Statement of Operations for the Three and Six Months Ended March 31, 2022 and	6
	2021
	Consolidated Statement of Stockholders' Equity as of March 31, 2022	7
	Consolidated Statement of Cash Flows for the Three and Six Months Ended March 31, 2022 and	8
	2021
Item 4.	Management Discussion and Analysis of Plan of Operation	18
Item 5.	Legal Proceedings	24
Item 6.	Defaults upon Senior Securities	25
Item 7.	Other Information	25
Item 8.	Exhibits	25
Item 9.	Certifications	26

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FORWARD-LOOKING STATEMENTS

Certain statements made in this Quarterly Report are "forward-looking statements" regarding the plans and objectives of management for future operations and market trends and expectations. Such statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward- looking statements included herein are based on current expectations that involve numerous risks and uncertainties. Our plans and objectives are based, in part, on assumptions involving the continued expansion of our business. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Although we believe that our assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the forward-looking statements included in this report will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved.

These forward-looking statements rely on assumptions, estimates and predictions that could be inaccurate and that are subject to risks and uncertainties that could cause actual results to differ materially from expected results. We cannot guarantee future results, outcomes, levels of activity, performance, or achievements, and there can be no assurance that our expectations, intentions, anticipations, beliefs, or projections will result or be achieved or accomplished. Forward-looking statements speak only as of the date of this report. Except as required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements, or to update the reasons actual results could differ significantly from those anticipated in these forward-looking statements, even if new information becomes available in the future.

Item 1. Exact Name of the Issuer and the Address of its Principal Executive Offices.

Exact name of issuer:	Altigen Communications, Inc.
Principal Executive Offices:	670 N McCarthy Blvd, Suite 200
	Milpitas, CA 95035
	Telephone: [phone]
	Facsimile: [phone]
	Website:www.altigen.com
Investor Relations Officer:	Carolyn David, Vice President of Finance
	670 N McCarthy Blvd, Suite 200
	Milpitas, CA 95035
	Telephone: [phone]
	Email Address: [e-mail]

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Item 2. Shares Outstanding.

The following tables sets forth the number of shares outstanding for each class of securities authorized as of the dates set forth below:

Common Stock

	March 31,	September 30,	September 30,
	2022	2021	2020
Number of Shares Authorized	50,000,000	50,000,000	50,000,000
Number of Shares Outstanding	23,972,182	23,748,432	23,019,456
Freely Tradable Shares (Public Float) (1)	17,782,761	17,553,911	16,809,557
Number of Beneficial Shareholders Owning at Least 100 Shares (2)	2,000	1,766	1,732
Total Number of Stockholders of Record	61	71	76

1. For purposes of this calculation only, shares of common stock held by each of Altigen's directors and officers on the given date and by each person who Altigen knows beneficially owned 5% or more of the outstanding common stock on that date have been excluded in that such persons may be deemed to be affiliates of Altigen. This determination of affiliate status is not necessarily a conclusive determination for other purposes.
2. Estimate based on beneficial share range analysis, received from Broadridge Financial Solutions, Inc.

Preferred Stock

	March 31,	September 30,	September 30,
	2022	2021	2020
Number of Shares Authorized	5,000,000	5,000,000	5,000,000
Number of Shares Outstanding	-	-	-
Freely Tradable Shares (Public Float)	-	-	-
Number of Beneficial Shareholders Owning at Least 100 Shares	-	-	-
Total Number of Stockholders of Record	-	-	-

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Item 3. Interim Financial Statements.

ALTIGEN COMMUNICATIONS, INC.

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except shares and per share data)

						March 31,	September 30,
					2022				2021
						(unaudited)		(1)
	ASSETS
	Current assets:
	Cash and cash equivalents	$			7,227			$			6,799
	Accounts receivables, net			391				491
	Unbilled accounts receivables				98						105
	Prepaid expenses and other current assets			260			145
	Total current assets				7,976						7,540
	Property and equipment, net			18				27
	Operating lease, right-of-use assets				621						826
	Capitalized software development costs, net			1,473			1,669
	Intangible assets, net				418						433
	Deferred tax assets			6,597			6,597
	Long-term deposit				37						45
	Total assets	$		17,140		$	17,137
	LIABILITIES AND STOCKHOLDERS' EQUITY
	Current liabilities:
	Accounts payable	$		157			$	86
	Accrued compensation and benefits				207						251
	Accrued expenses			546				587
	Operating lease liabilities, current				288						311
	Deferred revenue, short-term			697				696
	Total current liabilities				1,895						1,931
	Operating lease liabilities, long-term			384				570
	Deferred revenue, long-term				211						166
	Total liabilities			2,490			2,667
	Commitments and contingencies (Note 3)
	Stockholders' equity:
	Convertible preferred stock, $0.001 par value: 5,000,000 shares				-						-
	authorized; none issued
	Common stock, $0.001 par value: 50,000,000 shares authorized; 23,972,182			24			24
	and 23,748,432 shares issued and outstanding at March 31, 2022 and
	September 30, 2021, respectively
	Treasury stock, at cost: 1,918,830 shares at March 31, 2022 and				(1,565)						(1,565)
	September 30, 2021
	Additional paid-in capital			72,347			72,243
	Accumulated deficit				(56,156)						(56,232)
	Total stockholders' equity			14,650			14,470
	Total liabilities and stockholders' equity	$			17,140			$			17,137

1. The information in this column was derived from the Company's audited consolidated financial statements as of and for the year ended September 30, 2021.

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

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