ai-20230906
0001577526false00015775262023-09-062023-09-06


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): September 6, 2023

C3.AI, INC.
(Exact name of Registrant as Specified in Its Charter)


Delaware
(State or Other Jurisdiction
of Incorporation)
1400 Seaport Blvd
Redwood City, CA
(Address of Principal Executive Offices)
001-39744
(Commission File Number)





26-3999357
(IRS Employer Identification No.)
94063
(Zip Code)
(650) 503-2200
(Registrant's Telephone Number, Including Area Code)

Not Applicable
(Former Name or Former Address, if Changed Since Last Report)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Common Stock, par value $0.001 per shareAINew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.




Item 2.02    Results of Operations and Financial Condition.

On September 6, 2023, C3.ai, Inc. (the “Company”) issued a press release announcing its financial results for the fiscal first quarter ended July 31, 2023. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

The information contained in this Item 2.02 and Item 9.01 in this Current Report on Form 8-K, including the accompanying Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filings, unless expressly incorporated by specific reference in such filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.Description
104Cover Page Interactive Data File (the cover page XBRL tags are embedded within the inline XBRL document).



SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

C3.ai, Inc.
Dated: September 6, 2023
By:/s/ Thomas M. Siebel
Thomas M. Siebel
Chief Executive Officer and Chairman of the Board of Directors


Document

C3 AI Announces Fiscal First Quarter 2024 Financial Results
Delivering Secure, Reliable Generative AI Solutions to the Enterprise
REDWOOD CITY, Calif. - September 6, 2023 - C3.ai, Inc. (“C3 AI,” “C3,” or the “Company”) (NYSE: AI), the Enterprise AI application software company, today announced financial results for its fiscal first quarter ended July 31, 2023.
“It is difficult to describe the scale of the increasing interest that we are seeing globally in enterprise AI adoption,” said Thomas M. Siebel, C3 AI CEO. “We are experiencing strong traction with our enterprise AI applications and especially C3 Generative AI.”

Fiscal First Quarter 2024 Financial Highlights
Revenue: Total revenue for the quarter was $72.4 million, coming in at the high end of guidance of $70.0 million to $72.5 million.
Subscription Revenue: Subscription revenue for the quarter was $61.4 million, constituting 85% of total revenue.
Gross Profit: GAAP gross profit for the quarter was $40.5 million, representing a 56% gross margin. Non-GAAP gross profit for the quarter was $49.6 million, representing a 69% non-GAAP gross margin.
Remaining Performance Obligations (“RPO”): GAAP RPO was $334.6 million.
Current RPO: Current RPO was $170.6 million.
Net Loss per Share: GAAP net loss per share was $(0.56). Non-GAAP net loss per share was $(0.09).
Cash Balance: $809.6 million in cash, cash equivalents, and investments.
Operating Cash Flow: Net cash provided by operating activities of $3.9 million.
Free Cash Flow: Free cash flow of $(8.9) million.

Customer Wins and Expansions
During the quarter, C3 AI entered into new and expanded agreements with NEOM, Nucor, Roche, Riverside County, California, Pantaleon, Ball, Cargill, Con Edison, Shell, Tyson Foods, and the U.S. Department of Defense.

C3 AI Partner Network
C3 AI’s partner ecosystem continues to yield strong results. In Q1, we closed 20 agreements with and through our partner network, including Google Cloud, AWS, Microsoft, and Booz Allen Hamilton. Over 60% of our business was closed with and through the C3 AI partner network.

C3 AI Federal
C3 AI’s Federal business is showing significant strength, with Federal bookings up 39% compared with the year-ago quarter. The company continues to expand its work with the U.S. Department of Defense with new and expanded projects with the Chief Digital and AI Office (“CDAO”), the U.S. Marines Corps, the U.S. Air Force, the Missile Defense Agency, and the Defense Counterintelligence and Security Agency. C3 AI is now engaged in more than a dozen projects through the CDAO including predictive maintenance for aircraft, commander’s dashboards, contested logistics, insider threat, and multi-domain command and control.

Customer Success Stories
C3 AI customers including Shell, Georgia-Pacific, Koch Industries, Bank of America, and the U.S. Department of Defense continue to expand their C3 AI application footprints – increasingly including C3 Generative AI – realizing outsized economic benefit from digital transformations enterprise AI.




C3 Generative AI
The product adoption and customer success from our initial March 2023 C3 Generative AI release has been immediate. In Q1, C3 AI closed eight new agreements for C3 Generative AI, addressing use cases across multiple industries, including Agriculture, Consumer Packaged Goods, Defense, Intelligence, Manufacturing, State and Local Government, and Utilities.
To date, we have closed 12 generative AI agreements and have a pipeline of more than 140+ qualified C3 Generative AI enterprise opportunities. Importantly, the qualified pipeline of C3 Generative AI opportunities exceeds that of any other product in our product line.

C3 Generative AI Suite
To meet market demand, C3 AI today announced the immediate availability of the new C3 Generative AI Suite including 28 new domain-specific generative AI solutions for industries, business processes, and enterprise systems, all of which can be fully deployed within 12 weeks for $250,000 and are available now on the AWS Marketplace, the GCP Marketplace, and the Azure Marketplace.
“The market response to our Generative AI offerings is staggering. C3 Generative AI provides fine-tuned tailored Generative AI solutions that address the crippling problems that prevent widespread industry adoption of LLMs,” continued Siebel. “We believe that advent of Generative AI may more than double the addressable market immediately available to C3 AI, and now with our new C3 Generative AI Suite of products out the door, you can expect that we will be investing in the coming quarters to promote, market, and support these initiatives.”
We have demonstrated in the recent quarters that have solid management and expense controls. In Q4 FY 23, cash flow from operations was $27.1 million. In Q1 FY 24, cash flow from operations was $3.9 million. Non-GAAP operating loss substantially beat market expectations in both Q4 FY 23 and Q1 FY 24. We finished Q1 FY 24 with $809.6 million in cash and investments, a decrease of $2.8 million from the prior quarter.
After careful consideration with our leadership and our marketing partners, we have made the decision to invest in lead generation, branding, market awareness, and customer success related to our Generative AI solutions. The market opportunity is immediate, and we intend to seize it. While we still expect to be cash positive in Q4 FY 24 and in FY 25, we will be investing in our Generative AI solutions and at this time do not expect to be non-GAAP profitable in Q4 FY 24.
“C3 AI was well ahead of its time in predicting the scale of the opportunity in enterprise AI applications,” Siebel continued. “We started the company when the market was nascent, and as the market has developed and expanded, we have expanded our branding and our market offerings to meet market expectations.”
“While we believed for over a decade that this market would be quite large, no one could have anticipated the size and growth rate of the AI market that we now address.”
“C3 AI has spent the past 14 years preparing for this opportunity. The technology foundation is tried, tested, and proven. A strong portfolio of applications is in place. We have a pricing and distribution model that meets the needs of the market. We have a quality brand and a long list of satisfied customers. We are armed with a battalion of talented, professional employees deployed worldwide. Our partner ecosystem with Google, AWS, Azure, Booz Allen, Baker Hughes and others is well developed and expanding. The company is well capitalized with a seasoned leadership team.”



Financial Outlook:

The Company’s guidance includes GAAP and non-GAAP financial measures.

The following table summarizes C3 AI’s guidance for the second quarter of fiscal 2024 and full-year fiscal 2024:

(in millions)
Second Quarter Fiscal 2024
Guidance
Full Year Fiscal 2024 Guidance
Total revenue
$72.0 - $76.5
$295.0 - $320.0
Non-GAAP loss from operations
($27.0) - ($40.0)
($70.0) - ($100.0)

A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, expenses that may be incurred in the future. Stock-based compensation expense-related charges, including employer payroll tax-related items on employee stock transactions, are impacted by the timing of employee stock transactions, the future fair market value of our common stock, and our future hiring and retention needs, all of which are difficult to predict and subject to constant change. We have provided a reconciliation of GAAP to non-GAAP financial measures in the financial statement tables for our historical non-GAAP results included in this press release. Our fiscal year ends April 30, and numbers are rounded for presentation purposes.




Conference Call Details

What:C3 AI First Quarter Fiscal 2024 Financial Results Conference Call
When:Wednesday, September 6, 2023
Time:2:00 p.m. PT / 5:00 p.m. ET
Participant Registration:
https://register.vevent.com/register/BIc094f50f4a324a60bf341ff372659066 (live call)
Webcast:
https://edge.media-server.com/mmc/p/a92rm8gu (live and replay)
Investor Presentation Details

An investor presentation providing additional information and analysis can be found at our investor relations page at ir.c3.ai.
Statement Regarding Use of Non-GAAP Financial Measures

The Company reports the following non-GAAP financial measures, which have not been prepared in accordance with generally accepted accounting principles in the United States (GAAP), in addition to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

Non-GAAP gross profit, non-GAAP gross margin, non-GAAP loss from operations, and non-GAAP net loss per share. Our non-GAAP gross profit, non-GAAP gross margin, non-GAAP loss from operations, and non-GAAP net loss per share exclude the effect of stock-based compensation expense-related charges and employer payroll tax expense related to employee stock-based compensation. We believe the presentation of operating results that exclude these non-cash items provides useful supplemental information to investors and facilitates the analysis of our operating results and comparison of operating results across reporting periods.

Free cash flow. We believe free cash flow, a non-GAAP financial measure, is useful in evaluating liquidity and provides information to management and investors about our ability to fund future operating needs and strategic initiatives. We calculate free cash flow as net cash provided by (used in) operating activities less purchases of property and equipment and capitalized software development costs. This non-GAAP financial measure may be different than similarly titled measures used by other companies. Additionally, the utility of free cash flow is further limited as it does not represent the total increase or decrease in our cash balances for a given period.

We use these non-GAAP financial measures internally for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. Non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP financial measures and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Our presentation of non-GAAP financial measures may not be comparable to similar measures used by other companies. We encourage investors to carefully consider our results under GAAP, as well as our supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand our business. Please see the tables included at the end of this release for the reconciliation of GAAP to non-GAAP financial measures.

Other information

Baker Hughes ceased to qualify as a related party of the Company as of June 30, 2023 and the amounts disclosed related to them are accordingly presented only while they were considered a related party.



Use of Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release other than statements of historical facts, including our market leadership position, anticipated benefits from our partnerships and investments, financial outlook, our expectations relating to our new consumption-pricing model and the impact to our results of operations, the expected benefits of our offerings (including the potential benefits of our C3 Generative AI offerings), our business strategies, plans, and objectives for future operations, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “estimate,” “expect,” “intend,” “may,” “will” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks and uncertainties, including difficulties in evaluating our prospects and future results of operations given our limited operating history, our dependence on a limited number of existing customers that account for a substantial portion of our revenue, our ability to attract new customers and retain existing customers, market awareness and acceptance of enterprise AI solutions in general and our products in particular, and our history of operating losses. Some of these risks are described in greater detail in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended April 30, 2023, and other filings and reports we make with the Securities and Exchange Commission from time to time, including our Quarterly Report on Form 10-Q that will be filed for the fiscal quarter ended July 31, 2023, although new and unanticipated risks may arise. The future events and trends discussed in this press release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, achievements, or events and circumstances reflected in the forward-looking statements will occur. Except to the extent required by law, we do not undertake to update any of these forward-looking statements after the date of this press release to conform these statements to actual results or revised expectations.



About C3.ai, Inc.
C3.ai, Inc. (NYSE:AI) is the Enterprise AI application software company. C3 AI delivers a family of fully integrated products including the C3 AI Application Platform, an end-to-end platform for developing, deploying, and operating enterprise AI applications and C3 AI Applications, a portfolio of industry-specific SaaS enterprise AI applications that enable the digital transformation of organizations globally.

Investor Contact
ir@c3.ai

C3 AI Public Relations
Cheryl Sanclemente
415-988-4960
pr@c3.ai

Source: C3.ai, Inc.



C3.AI, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended July 31,
20232022
Revenue
Subscription(1)
$61,352 $57,026 
Professional services(2)
11,010 8,282 
Total revenue72,362 65,308 
Cost of revenue
Subscription30,434 14,092 
Professional services1,379 4,314 
Total cost of revenue31,813 18,406 
Gross profit40,549 46,902 
Operating expenses
Sales and marketing(3)
43,885 42,987 
Research and development50,868 55,877 
General and administrative19,889 21,247 
Total operating expenses114,642 120,111 
Loss from operations(74,093)(73,209)
Interest income10,122 2,538 
Other (expense) income, net(239)(1,021)
Loss before provision for income taxes(64,210)(71,692)
Provision for income taxes148 179 
Net loss$(64,358)$(71,871)
Net loss per share attributable to Class A and Class B common stockholders, basic and diluted$(0.56)$(0.67)
Weighted-average shares used in computing net loss per share attributable to Class A and Class B common stockholders, basic and diluted115,681 106,842 

(1)    Including related party revenue of $10,581 and $16,330 for the three months ended July 31, 2023 and 2022, respectively.
(2)    Including related party revenue of $5,804 and $129 for the three months ended July 31, 2023 and 2022, respectively.
(3)    Including related party sales and marketing expense of $810 and $3,500 for the three months ended July 31, 2023 and 2022, respectively.






C3.AI, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except for share and per share data)
(Unaudited)
July 31, 2023April 30, 2023
Assets
Current assets
Cash and cash equivalents$206,442 $284,829 
Short-term investments544,433 446,155 
Accounts receivable, net of allowance of $359 and $359 as of July 31, 2023 and April 30, 2023, respectively(1)
122,568 134,586 
Prepaid expenses and other current assets(2)
21,352 23,309 
Total current assets894,795 888,879 
Property and equipment, net88,666 84,578 
Goodwill625 625 
Long-term investments58,706 81,418 
Other assets, non-current(3)
46,611 47,528 
Total assets$1,089,403 $1,103,028 
Liabilities and stockholders’ equity
Current liabilities
Accounts payable(4)
$26,885 $24,610 
Accrued compensation and employee benefits32,454 46,513 
Deferred revenue, current(5)
40,943 47,846 
Accrued and other current liabilities(6)
10,429 17,070 
Total current liabilities110,711 136,039 
Deferred revenue, non-current17 
Other long-term liabilities46,233 37,320 
Total liabilities156,961 173,363 
Commitments and contingencies
Stockholders’ equity
Class A common stock, $0.001 par value. 1,000,000,000 shares authorized as of July 31, 2023 and April 30, 2023; 114,424,588 and 110,442,569 shares issued and outstanding as of July 31, 2023 and April 30, 2023, respectively
114 110 
Class B common stock, $0.001 par value; 3,500,000 shares authorized as of July 31, 2023 and April 30, 2023; 3,499,992 and 3,499,992 shares issued and outstanding as of July 31, 2023 and April 30, 2023, respectively
Additional paid-in capital1,807,678 1,740,174 
Accumulated other comprehensive loss(758)(385)
Accumulated deficit(874,595)(810,237)
Total stockholders’ equity932,442 929,665 
Total liabilities and stockholders’ equity$1,089,403 $1,103,028 
(1)     Including amounts from a related party of $74,620 as of April 30, 2023.
(2)     Including amounts from a related party of $4,983 as of April 30, 2023.
(3)     Including amounts from a related party of $11,279 as of April 30, 2023.
(4)     Including amounts from a related party of $2,200 as of April 30, 2023.
(5)     Including amounts from a related party of $249 as of April 30, 2023.
(6)     Including amounts from a related party of $2,448 as of April 30, 2023.



C3.AI, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three Months Ended July 31,
20232022
Cash flows from operating activities:
Net loss$(64,358)$(71,871)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities
Depreciation and amortization3,056 1,461 
Non-cash operating lease cost274 1,862 
Stock-based compensation expense50,880 56,630 
Other(3,949)78 
Changes in operating assets and liabilities
Accounts receivable(1)
12,017 (927)
Prepaid expenses, other current assets and other assets(2)
3,051 2,910 
Accounts payable(3)
(564)(21,318)
Accrued compensation and employee benefits(39)491 
Operating lease liabilities8,204 (991)
Other liabilities(4)
2,254 (1,106)
Deferred revenue(5)
(6,890)(5,477)
Net cash provided by (used in) operating activities3,936 (38,258)
Cash flows from investing activities:
Purchases of property and equipment(11,338)(15,536)
Capitalized software development costs
(1,500)(1,000)
Purchases of investments(322,534)(226,367)
Maturities and sales of investments250,572 162,429 
Net cash used in investing activities(84,800)(80,474)
Cash flows from financing activities:
Proceeds from exercise of Class A common stock options9,595 1,087 
Taxes paid related to net share settlement of equity awards(7,118)— 
Net cash provided by financing activities2,477 1,087 
Net decrease in cash, cash equivalents and restricted cash(78,387)(117,645)
Cash, cash equivalents and restricted cash at beginning of period297,395 352,519 
Cash, cash equivalents and restricted cash at end of period$219,008 $234,874 
Cash and cash equivalents$206,442 $221,883 
Restricted cash included in other assets12,566 12,566 
Restricted cash included in prepaid expenses and other current assets— 425 
Total cash, cash equivalents and restricted cash$219,008 $234,874 
Supplemental disclosure of cash flow information—cash paid for income taxes$150 $66 
Supplemental disclosures of non-cash investing and financing activities:
Purchases of property and equipment included in accounts payable and accrued liabilities$5,764 $19,326 
Right-of-use assets obtained in exchange for lease obligations (including remeasurement of right-of-use assets and lease liabilities due to changes in the timing of receipt of lease incentives)$778 $— 
Unpaid liabilities related to intangible purchases$— $1,500 
Vesting of early exercised stock options$— $333 
(1)Including changes in related party balances of $12,444 and $(2,240) for the three months ended July 31, 2023 and 2022, respectively.
(2)Including changes in related party balances of $(810) and $(1,216) for the three months ended July 31, 2023 and 2022, respectively.
(3)Including changes in related party balances of $248 and $(13,861) for the three months ended July 31, 2023 and 2022, respectively.
(4)Including changes in related party balances of $(2,448) and $(2,536) for the three months ended July 31, 2023 and 2022, respectively.
(5)Including changes in related party balances of $(46) and $(51) for the three months ended July 31, 2023 and 2022, respectively.



C3.AI, INC.
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands, except percentages)
(Unaudited)

Three Months Ended July 31,
20232022
Reconciliation of GAAP gross profit to non-GAAP gross profit:
Gross profit on a GAAP basis$40,549$46,902
Stock-based compensation expense (1)
8,5165,343
Employer payroll tax expense related to employee stock-based compensation (2)
541386
Gross profit on a non-GAAP basis$49,606$52,631
Gross margin on a GAAP basis56%72%
Gross margin on a non-GAAP basis69%81%
Reconciliation of GAAP loss from operations to non-GAAP loss from operations:
Loss from operations on a GAAP basis$(74,093)$(73,209)
Stock-based compensation expense (1)
50,88056,630
Employer payroll tax expense related to employee stock-based compensation (2)
2,5002,042
Loss from operations on a non-GAAP basis$(20,713)$(14,537)
Reconciliation of GAAP net loss per share to non-GAAP net loss per share:
Net loss on a GAAP basis$(64,358)$(71,871)
Stock-based compensation expense (1)
50,88056,630
Employer payroll tax expense related to employee stock-based compensation (2)
2,5002,042
Net loss on a non-GAAP basis$(10,978)$(13,199)
GAAP net loss per share attributable common shareholders, basic and diluted$(0.56)$(0.67)
Non-GAAP net loss per share attributable common shareholders, basic and diluted$(0.09)$(0.12)
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted115,681 106,842 

(1)Stock-based compensation expense for gross profits and gross margin includes costs of subscription and cost of professional services as follows. Stock-based compensation expense for loss from operations includes total stock-based compensation expense as follows:

Three Months Ended July 31,
20232022
Cost of subscription$8,056 $4,272 
Cost of professional services460 1,071 
Sales and marketing16,779 16,779 
Research and development17,033 25,217 
General and administrative8,552 9,291 
Total stock-based compensation expense$50,880 $56,630 




(2)    Employer payroll tax expense related to employee stock-based compensation for gross profits and gross margin includes costs of subscription and cost of professional services as follows. Employer payroll tax expense related to employee stock-based compensation for loss from operations includes total employer payroll tax expense related to employee stock-based compensation as follows:

Three Months Ended July 31,
20232022
Cost of subscription$509 $286 
Cost of professional services32 100 
Sales and marketing1,005 530 
Research and development817 943 
General and administrative137 183 
Total employer payroll tax expense$2,500 $2,042 

Reconciliation of free cash flow to the GAAP measure of net cash provided by (used in) operating activities:

The following table below provides a reconciliation of free cash flow to the GAAP measure of net cash provided by (used in) operating activities for the periods presented:

Three Months Ended July 31,
20232022
Net cash provided by (used in) operating activities$3,936 $(38,258)
Less:
Purchases of property and equipment(11,338)(15,536)
Capitalized software development costs(1,500)(1,000)
Free cash flow$(8,902)$(54,794)