2013 Q1 Form 10-Q Financial Statement

#000119312513060640 Filed on February 14, 2013

View on sec.gov

Income Statement

Concept 2013 Q1 2012 Q4 2012 Q3
Revenue -$400.0K $2.049M $912.0K
YoY Change -127.78% 4.7% -52.94%
Cost Of Revenue -$280.0K $927.0K $376.0K
YoY Change -134.15% 17.34% -47.63%
Gross Profit -$120.0K $1.122M $536.0K
YoY Change -119.05% -3.86% -56.07%
Gross Profit Margin 54.76% 58.77%
Selling, General & Admin $1.830M $4.124M $3.406M
YoY Change -58.97% -39.81% 139.52%
% of Gross Profit 367.56% 635.45%
Research & Development $10.00K $577.0K $365.0K
YoY Change -98.28% 34.19% -24.59%
% of Gross Profit 51.43% 68.1%
Depreciation & Amortization $410.0K $27.00K $31.00K
YoY Change 310.0% -40.0% -41.51%
% of Gross Profit 2.41% 5.78%
Operating Expenses $1.850M $4.701M $3.771M
YoY Change -63.22% -35.44% 97.85%
Operating Profit -$1.970M -$3.579M -$3.235M
YoY Change -55.23% -41.47% 371.57%
Interest Expense $410.0K -$550.0K -$520.0K
YoY Change -102.82% -69.61% 26.83%
% of Operating Profit
Other Income/Expense, Net -$602.0K -$520.0K
YoY Change -17.65% 112.24%
Pretax Income -$1.840M -$4.181M -$3.755M
YoY Change -91.67% -38.93% 303.33%
Income Tax $70.00K $33.00K $20.00K
% Of Pretax Income
Net Earnings -$3.420M -$4.214M -$3.775M
YoY Change -84.55% -38.73% 305.48%
Net Earnings / Revenue -205.66% -413.93%
Basic Earnings Per Share
Diluted Earnings Per Share -$192.8K -$236.5K -$204.7K
COMMON SHARES
Basic Shares Outstanding 92.16M shares 88.50M shares 85.95M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2013 Q1 2012 Q4 2012 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.100M $1.600M $3.100M
YoY Change -87.5% -78.38% 416.67%
Cash & Equivalents $1.149M $1.641M $3.137M
Short-Term Investments
Other Short-Term Assets $900.0K $900.0K $300.0K
YoY Change 800.0% 125.0% -25.0%
Inventory
Prepaid Expenses
Receivables $1.995M $2.079M $2.068M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $3.992M $4.585M $5.549M
YoY Change -60.51% -52.73% 91.34%
LONG-TERM ASSETS
Property, Plant & Equipment $148.0K $201.0K $317.0K
YoY Change -35.65% -33.0% 5.67%
Goodwill $3.588M $4.537M $4.537M
YoY Change -1.43%
Intangibles $4.757M $4.976M $5.151M
YoY Change 482.25%
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets $8.493M $9.714M $10.01M
YoY Change 81.2% -3.82% -1.91%
TOTAL ASSETS
Total Short-Term Assets $3.992M $4.585M $5.549M
Total Long-Term Assets $8.493M $9.714M $10.01M
Total Assets $12.49M $14.30M $15.55M
YoY Change -15.62% -27.78% 18.73%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $3.783M $3.795M $4.054M
YoY Change 23.99% 30.86% 9.57%
Accrued Expenses $1.400M $1.500M $1.700M
YoY Change -17.65% 7.14% 6.25%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $3.777M $2.826M $2.543M
YoY Change 4936.0% 1313.0% 182.56%
Total Short-Term Liabilities $9.655M $8.779M $9.429M
YoY Change 60.38% -57.18% 29.16%
LONG-TERM LIABILITIES
Long-Term Debt $1.252M $1.750M $1.564M
YoY Change -59.31% -69.3% -66.0%
Other Long-Term Liabilities $500.0K
YoY Change -95.45%
Total Long-Term Liabilities $1.252M $1.750M $1.564M
YoY Change -59.31% -89.52% -66.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $9.655M $8.779M $9.429M
Total Long-Term Liabilities $1.252M $1.750M $1.564M
Total Liabilities $11.75M $11.33M $11.75M
YoY Change 29.14% -69.62% -1.25%
SHAREHOLDERS EQUITY
Retained Earnings -$141.6M -$138.2M -$134.0M
YoY Change 11.11%
Common Stock $7.000K $7.000K $7.000K
YoY Change 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost) $71.00K $71.00K $71.00K
YoY Change 0.0%
Treasury Stock Shares 754.6K shares 3.773M shares 3.773M shares
Shareholders Equity $737.0K $2.968M $3.803M
YoY Change
Total Liabilities & Shareholders Equity $12.49M $14.30M $15.55M
YoY Change -15.62% -27.78% 18.73%

Cashflow Statement

Concept 2013 Q1 2012 Q4 2012 Q3
OPERATING ACTIVITIES
Net Income -$3.420M -$4.214M -$3.775M
YoY Change -84.55% -38.73% 305.48%
Depreciation, Depletion And Amortization $410.0K $27.00K $31.00K
YoY Change 310.0% -40.0% -41.51%
Cash From Operating Activities -$1.010M -$2.570M -$1.700M
YoY Change -24.63% 1411.76% 3300.0%
INVESTING ACTIVITIES
Capital Expenditures -$10.00K -$10.00K
YoY Change 0.0% -133.33%
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00 -$3.360M
YoY Change
Cash From Investing Activities -$10.00K $10.00K -$3.370M
YoY Change 0.0% -200.0% -11333.33%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 550.0K 1.000M 0.000
YoY Change -79.7% -85.69%
NET CHANGE
Cash From Operating Activities -1.010M -2.570M -1.700M
Cash From Investing Activities -10.00K 10.00K -3.370M
Cash From Financing Activities 550.0K 1.000M 0.000
Net Change In Cash -470.0K -1.560M -5.070M
YoY Change -134.56% -122.91% 25250.0%
FREE CASH FLOW
Cash From Operating Activities -$1.010M -$2.570M -$1.700M
Capital Expenditures -$10.00K -$10.00K
Free Cash Flow -$1.000M -$1.690M
YoY Change -24.81% 2012.5%

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LicenseCosts
1885000
us-gaap Revenues From External Customers
RevenuesFromExternalCustomers
5788000
us-gaap Depreciation
Depreciation
160000
us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
69000
us-gaap Gross Profit
GrossProfit
3731000
us-gaap Repayments Of Long Term Capital Lease Obligations
RepaymentsOfLongTermCapitalLeaseObligations
11000
us-gaap Interest Paid
InterestPaid
1000
us-gaap Business Acquisitions Pro Forma Net Income Loss
BusinessAcquisitionsProFormaNetIncomeLoss
-9286000
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
41808000 shares
us-gaap Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
686000
us-gaap Net Income Loss
NetIncomeLoss
-8580000
us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-1246000
us-gaap Foreign Currency Transaction Gain Loss Before Tax
ForeignCurrencyTransactionGainLossBeforeTax
-54000
us-gaap Proceeds From Convertible Debt
ProceedsFromConvertibleDebt
7000000
us-gaap Unrealized Gain Loss On Derivatives
UnrealizedGainLossOnDerivatives
-1255000
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
64000
us-gaap Effect Of Exchange Rate On Cash And Cash Equivalents
EffectOfExchangeRateOnCashAndCashEquivalents
69000
us-gaap Increase Decrease In Fair Value Of Unhedged Derivative Instruments
IncreaseDecreaseInFairValueOfUnhedgedDerivativeInstruments
-76000
mndl Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Period Increase Decrease
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentPeriodIncreaseDecrease
93000
mndl Business Acquisition Pro Forma Income Before Taxes
BusinessAcquisitionProFormaIncomeBeforeTaxes
-9223000
mndl Provision For Reduction Of Doubtful Accounts
ProvisionForReductionOfDoubtfulAccounts
29000
mndl Interest Accretion Expense
InterestAccretionExpense
488000
mndl Business Acquisitions Pro Forma Nonoperating Income Expense
BusinessAcquisitionsProFormaNonoperatingIncomeExpense
-1492000
mndl Business Acquisitions Pro Forma Income Tax Expense Benefit
BusinessAcquisitionsProFormaIncomeTaxExpenseBenefit
63000
mndl Business Acquisition Pro Forma Operating Income Loss
BusinessAcquisitionProFormaOperatingIncomeLoss
-7731000
mndl Business Acquisition Pro Forma Cost Of Goods Sold
BusinessAcquisitionProFormaCostOfGoodsSold
10537000
mndl Business Acquisition Pro Forma Earnings Per Share Basic And Diluted
BusinessAcquisitionProFormaEarningsPerShareBasicAndDiluted
-0.22
mndl Business Acquisition Pro Forma Gross Profit
BusinessAcquisitionProFormaGrossProfit
4115000
mndl Gains Losses On Settlement And Conversion Of Debt
GainsLossesOnSettlementAndConversionOfDebt
1323000
mndl Business Acquisitions Pro Forma Operating Expenses
BusinessAcquisitionsProFormaOperatingExpenses
11846000
dei Trading Symbol
TradingSymbol
MNDL
dei Entity Registrant Name
EntityRegistrantName
MANDALAY DIGITAL GROUP, INC.
dei Amendment Flag
AmendmentFlag
false
dei Entity Filer Category
EntityFilerCategory
Smaller Reporting Company
dei Document Fiscal Period Focus
DocumentFiscalPeriodFocus
Q3
dei Document Fiscal Year Focus
DocumentFiscalYearFocus
2012
dei Document Type
DocumentType
10-Q
dei Document Period End Date
DocumentPeriodEndDate
2012-12-31
dei Entity Central Index Key
EntityCentralIndexKey
0000317788
dei Current Fiscal Year End Date
CurrentFiscalYearEndDate
--03-31
us-gaap Increase Decrease In Other Operating Liabilities
IncreaseDecreaseInOtherOperatingLiabilities
15000
us-gaap Cash Acquired From Acquisition
CashAcquiredFromAcquisition
59000
us-gaap Operating Income Loss
OperatingIncomeLoss
-9064000
us-gaap Cost Of Goods And Services Sold Amortization
CostOfGoodsAndServicesSoldAmortization
311000
us-gaap Increase Decrease In Accounts Payable
IncreaseDecreaseInAccountsPayable
-435000
us-gaap Proceeds From Issuance Of Common Stock
ProceedsFromIssuanceOfCommonStock
2000000
us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
-10696000
us-gaap Share Based Compensation
ShareBasedCompensation
167000
us-gaap Business Acquisitions Pro Forma Revenue
BusinessAcquisitionsProFormaRevenue
7167000
us-gaap Payments To Acquire Businesses Gross
PaymentsToAcquireBusinessesGross
-3416000
us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.12
us-gaap Stock Issued1
StockIssued1
787000
us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman" size="2"><b>Concentrations of Credit Risk</b></font></p> <p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman" size="2">Financial instruments which potentially subject us to concentration of credit risk consist principally of cash and cash equivalents, and accounts receivable. We have placed cash and cash equivalents with a single high credit-quality institution. Most of our sales are made directly to large national Mobile Phone Operators in the countries that we operate. We have a significant level of business and resulting significant accounts receivable balance with one operator and therefore have a high concentration of credit risk with that operator. We perform ongoing credit evaluations of our customers and maintain an allowance for potential credit losses. As of December&#xA0;31, 2012, two major customer represented approximately 35.2% and 16% of our gross accounts receivable outstanding, and 0% of gross accounts receivable outstanding as of March&#xA0;31, 2012. These customers accounted for 47.8% and 14.4% of our gross revenues during the three month period ended December&#xA0;31, 2012; and both of these customers accounted for 0% in the period ended December&#xA0;31, 2011. One other major customer 11.9% and 43% of revenues for the nine month periods ended December&#xA0;31, 2012 and December 31, 2011, respectively.</font></p> </div>
us-gaap Increase Decrease In Derivative Liabilities
IncreaseDecreaseInDerivativeLiabilities
21000
us-gaap Restructuring Costs
RestructuringCosts
0
us-gaap Depreciation And Amortization
DepreciationAndAmortization
237000
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-5862000
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-3357000
us-gaap Income Taxes Paid
IncomeTaxesPaid
28000
us-gaap Revenue Recognition Software
RevenueRecognitionSoftware
<div> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman" size="2"><b>Revenue Recognition</b></font></p> <p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman" size="2">The Company&#x2019;s revenues are derived primarily by licensing material and software in the form of products (Image Galleries, Wallpapers, video, WAP Site access, Mobile TV), developing and maintaining carrier platforms, mobile advertising, mobile billing and mobile games. License arrangements with the end user can be on a perpetual or subscription basis.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman" size="2">A perpetual license gives an end user the right to use the product, image or game on the registered handset on a perpetual basis. A subscription license gives an end user the right to use the product, image or game on the registered handset for a limited period of time, ranging from a few days to as long as one month.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman" size="2">The Company distributes products through mobile telecommunications service providers (&#x201C;carriers&#x201D;). The carrier markets the product, images or games to end users, but the Company may also participate in the marketing efforts with the carrier and is at times required to do so. License fees for perpetual and subscription licenses are usually billed upon download of the product, image or game by the end user. In the case of subscription licenses, many subscriber agreements provide for automatic renewal until the subscriber opts-out, while others provide for opt-in renewal. In either case, subsequent billings for subscription licenses are generally billed monthly. The Company applies the provisions of FASB ASC 985-605, <i>Software Revenue Recognition</i>, to all transactions.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman" size="2">Revenues are recognized from the Company&#x2019;s products, images and games when persuasive evidence of an arrangement exists, the product, image or game has been delivered, the fee is fixed or determinable, and the collection of the resulting receivable is probable. For both perpetual and subscription licenses, management considers a license agreement to be evidence of an arrangement with a carrier or aggregator and a &#x201C;clickwrap&#x201D; agreement to be evidence of an arrangement with an end user. For these licenses, the Company defines delivery as the download of the product, image or game by the end user.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman" size="2">The Company estimates revenues from carriers in the current period when reasonable estimates of these amounts can be made. Most carriers only provide detailed sales transaction data on a one to two month lag. Estimated revenue is treated as unbilled receivables until the detailed reporting is received and the revenues can be billed. Some carriers provide reliable interim preliminary reporting and others report sales data within a reasonable time frame following the end of each month, both of which allow the Company to make reasonable estimates of revenues and therefore to recognize revenues during the reporting period when the end user licenses the product, image or game. Determination of the appropriate amount of revenue recognized involves judgments and estimates that the Company believes are reasonable, but it is possible that actual results may differ from the Company&#x2019;s estimates. The Company&#x2019;s estimates for revenues include consideration of factors such as preliminary sales data, carrier-specific historical sales trends, volume of activity on company monitored sites, seasonality, time elapsed from launch of services or product lines, the age of games and the expected impact of newly launched games, successful introduction of newer and more advanced handsets, promotions during the period and economic trends. When the Company receives the final carrier reports, to the extent not received within a reasonable time frame following the end of each month, the Company records any differences between estimated revenues and actual revenues in the reporting period when the Company determines the actual amounts. Revenues earned from certain carriers may not be reasonably estimated. If the Company is unable to reasonably estimate the amount of revenues to be recognized in the current period, the Company recognizes revenues upon the receipt of a carrier revenue report and when the Company&#x2019;s portion of licensed revenues are fixed or determinable and collection is probable. To monitor the reliability of the Company&#x2019;s estimates, management, where possible, reviews the revenues by country, by carrier and by product line on a regular basis to identify unusual trends such as differential adoption rates by carriers or the introduction of new handsets. If the Company deems a carrier not to be creditworthy, the Company defers all revenues from the arrangement until the Company receives payment and all other revenue recognition criteria have been met.</font></p> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman" size="2">In accordance with FASB ASC 605-45, <i>Reporting Revenue Gross as a Principal Versus Net as an Agent</i>, the Company recognizes as revenues the amount the carrier reports as payable upon the sale of the Company&#x2019;s products, images or games. The Company has evaluated its carrier agreements and has determined that it is not the principal when selling its products, images or games through carriers. Key indicators that it evaluated to reach this determination include:</font></p> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 6px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="9%"><font size="1">&#xA0;</font></td> <td valign="top" width="3%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2">&#x2022;</font></td> <td valign="top" width="1%"><font size="1">&#xA0;</font></td> <td valign="top" align="left"> <p align="left"><font style="FONT-FAMILY: Times New Roman" size="2">wireless subscribers directly contract with the carriers, which have most of the service interaction and are generally viewed as the primary obligor by the subscribers;</font></p> </td> </tr> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 6px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="9%"><font size="1">&#xA0;</font></td> <td valign="top" width="3%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2">&#x2022;</font></td> <td valign="top" width="1%"><font size="1">&#xA0;</font></td> <td valign="top" align="left"> <p align="left"><font style="FONT-FAMILY: Times New Roman" size="2">carriers generally have significant control over the types of content that they offer to their subscribers;</font></p> </td> </tr> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 6px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="9%"><font size="1">&#xA0;</font></td> <td valign="top" width="3%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2">&#x2022;</font></td> <td valign="top" width="1%"><font size="1">&#xA0;</font></td> <td valign="top" align="left"> <p align="left"><font style="FONT-FAMILY: Times New Roman" size="2">carriers are directly responsible for billing and collecting fees from their subscribers, including the resolution of billing disputes;</font></p> </td> </tr> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 6px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="9%"><font size="1">&#xA0;</font></td> <td valign="top" width="3%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2">&#x2022;</font></td> <td valign="top" width="1%"><font size="1">&#xA0;</font></td> <td valign="top" align="left"> <p align="left"><font style="FONT-FAMILY: Times New Roman" size="2">carriers generally pay the Company a fixed percentage of their revenues or a fixed fee for each game;</font></p> </td> </tr> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 6px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="9%"><font size="1">&#xA0;</font></td> <td valign="top" width="3%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2">&#x2022;</font></td> <td valign="top" width="1%"><font size="1">&#xA0;</font></td> <td valign="top" align="left"> <p align="left"><font style="FONT-FAMILY: Times New Roman" size="2">carriers generally must approve the price of the Company&#x2019;s content in advance of their sale to subscribers, and the Company&#x2019;s more significant carriers generally have the ability to set the ultimate price charged to their subscribers;</font></p> </td> </tr> </table> <p style="MARGIN-TOP: 0px; MARGIN-BOTTOM: 0px; FONT-SIZE: 6px"> &#xA0;</p> <table style="BORDER-COLLAPSE: collapse" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr> <td width="9%"><font size="1">&#xA0;</font></td> <td valign="top" width="3%" align="left"><font style="FONT-FAMILY: Times New Roman" size="2">&#x2022;</font></td> <td valign="top" width="1%"><font size="1">&#xA0;</font></td> <td valign="top" align="left"> <p align="left"><font style="FONT-FAMILY: Times New Roman" size="2">the Company has limited risks, including no inventory risk and limited credit risk.</font></p> </td> </tr> </table> <p style="MARGIN-TOP: 12px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman" size="2">For direct to consumer business, revenue is earned by delivering a product or service directly to the end user of that product or service. In those cases, the Company records as revenue the amount billed to that end user and recognizes the revenue when persuasive evidence of an arrangement exists, the product, image or game has been delivered, the fee is fixed or determinable, and the collection of the resulting receivable is probable. Substantially all of our discontinued operations represents direct to consumer business.</font></p> </div>
us-gaap Other Nonoperating Expense
OtherNonoperatingExpense
44000
us-gaap Number Of Operating Segments
NumberOfOperatingSegments
1 Segment
us-gaap Cash And Cash Equivalents Period Increase Decrease
CashAndCashEquivalentsPeriodIncreaseDecrease
-7158000
us-gaap Increase Decrease In Employee Related Liabilities
IncreaseDecreaseInEmployeeRelatedLiabilities
-75000
us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
9386000
us-gaap Increase Decrease In Intangible Assets Current
IncreaseDecreaseInIntangibleAssetsCurrent
4489000
us-gaap Advertising Expense
AdvertisingExpense
143000
us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
IncreaseDecreaseInPrepaidDeferredExpenseAndOtherAssets
34000
us-gaap Increase Decrease In Accounts Receivable
IncreaseDecreaseInAccountsReceivable
322000
us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
46000
us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
-10676000
us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
647000
us-gaap Nature Of Operations
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<div> <table style="BORDER-COLLAPSE:COLLAPSE" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td width="4%"><font size="1">&#xA0;</font></td> <td width="4%" valign="top" align="left"><font style="font-family:Times New Roman" size="2"><b>1.</b></font></td> <td align="left" valign="top"><font style="font-family:Times New Roman" size="2"><b>Organization</b></font></td> </tr> </table> <p style="margin-top:6px;margin-bottom:0px"><font style="font-family:Times New Roman" size="2">Mandalay Digital Group, Inc. (&#x201C;we&#x201D;, &#x201C;us&#x201D;, &#x201C;our&#x201D;, the &#x201C;Company&#x201D; or &#x201C;Mandalay Digital&#x201D;), formerly NeuMedia, Inc. (&#x201C;NeuMedia&#x201D;), formerly Mandalay Media, Inc. (&#x201C;Mandalay Media&#x201D;) and formerly Mediavest, Inc. (&#x201C;Mediavest&#x201D;), was originally incorporated in the state of Delaware on November&#xA0;6, 1998 under the name eB2B Commerce, Inc. On April&#xA0;27, 2000, it merged into DynamicWeb Enterprises Inc., a New Jersey corporation, the surviving company, and changed its name to eB2B Commerce, Inc. On April&#xA0;13, 2005, the Company changed its name to Mediavest, Inc.&#xA0;Through January&#xA0;26, 2005, the Company and its former subsidiaries were engaged in providing business-to-business transaction management services designed to simplify trading between buyers and suppliers. The Company was inactive from January&#xA0;26, 2005 until its merger with Twistbox Entertainment, Inc. on February&#xA0;12, 2008.&#xA0;On&#xA0;September&#xA0;14, 2007, Mediavest was re-incorporated in the state of Delaware as Mandalay Media, Inc. On May&#xA0;11, 2010, the Company merged with a wholly-owned, newly formed subsidiary, changing its name to NeuMedia, Inc. On February&#xA0;6, 2012, the Company merged with a wholly-owned, newly formed subsidiary, changing its name to Mandalay Digital Group, Inc.</font></p> <p style="margin-top:12px;margin-bottom:0px"><font style="font-family:Times New Roman" size="2">Twistbox is a global publisher and distributor of branded entertainment content and services primarily focused on enabling the development, distribution and billing of content across mobile networks.&#xA0;Twistbox publishes and distributes its content in a number of countries.&#xA0;Since operations began in 2003, Twistbox has developed an intellectual property portfolio that includes mobile rights to global brands. Twistbox has built a proprietary mobile publishing platform that includes: tools that automate device management for the distribution and billing of images and video; a mobile games development and distribution platform that automates the porting of mobile games and applications to multiple handsets; and a content standards and ratings system globally adopted by major wireless carriers to assist with the responsible deployment of age-verified content.&#xA0;Twistbox has distribution and service agreements with some of the largest mobile operators in the world.</font></p> <p style="margin-top:12px;margin-bottom:0px"><font style="font-family:Times New Roman" size="2">Twistbox is headquartered in the Los Angeles area and has offices in Europe that provide local support for both mobile operators and third party distribution in their respective regions.</font></p> <p style="margin-top:12px;margin-bottom:0px"><font style="font-family:Times New Roman" size="2">On October&#xA0;23, 2008, the Company completed an acquisition of 100% of the issued and outstanding share capital of AMV Holding Limited, a United Kingdom private limited company (&#x201C;AMV&#x201D;), and 80% of the issued and outstanding share capital of Fierce Media Ltd (&#x201C;Fierce&#x201D;).</font></p> <p style="margin-top:12px;margin-bottom:0px"><font style="font-family:Times New Roman" size="2">AMV marketed branded services through a unique Customer Relationship Management platform that drove revenue through mobile internet, print and TV advertising. AMV was headquartered in Marlow, outside of London in the United Kingdom.</font></p> <p style="margin-top:12px;margin-bottom:0px"><font style="font-family:Times New Roman" size="2">On May&#xA0;10, 2010, an administrator was appointed over AMV Holding Limited in the UK, at the request of the Company&#x2019;s senior debt holder. As from that date, AMV and its subsidiaries&#xA0;were considered to be a discontinued operation. AMV and its subsidiaries were subsequently disposed.</font></p> <p style="margin-top:12px;margin-bottom:0px"><font style="font-family:Times New Roman" size="2">On May&#xA0;11, 2010, Mandalay Media merged into its wholly-owned, newly formed subsidiary, NeuMedia Inc. (&#x201C;NeuMedia&#x201D;), with NeuMedia as the surviving corporation. NeuMedia issued: (1)&#xA0;one new share of common stock&#xA0;in exchange for each share of Mandalay Media&#x2019;s outstanding common stock and (2)&#xA0;one new share of preferred stock&#xA0;in exchange for each share of Mandalay Media&#x2019;s outstanding preferred stock as of May&#xA0;11, 2010. NeuMedia&#x2019;s preferred and common stock&#xA0;had the same status and par value as the respective stock of Mandalay Media and NeuMedia acceded to all the rights, acquired all the assets and assumed all of the liabilities of Mandalay Media.</font></p> <p style="margin-top:12px;margin-bottom:0px"><font style="font-family:Times New Roman" size="2">On June&#xA0;21, 2010, the Company signed and closed an agreement whereby ValueAct and the AMV Founders, acting through a newly formed company, acquired the operating subsidiaries of AMV (the &#x201C;Assets&#x201D;) in exchange for the release of $23,231 of secured indebtedness, comprising a release of all amounts due and payable under the AMV Note and all of the amounts due and payable under the ValueAct Note (as defined below) except for $3,500 in principal. The Company retained all assets and liabilities of Twistbox and the Company.</font></p> <p style="margin-top:12px;margin-bottom:0px"><font style="font-family:Times New Roman" size="2">On December&#xA0;28, 2011, the Company issued 50,000 shares of the Company&#x2019;s common stock as part of the consideration for in exchange for the assets of Digital Turbine Group, LLC, the developer of Digital Turbine (&#x201C;DT&#x201D;), a technology platform that allows media companies, mobile carriers, and their OEM handset partners to take advantage of multiple mobile operating systems across multiple networks, and offers solutions that allow them to maintain their own branding and personalized, one-to-one relationships with each end-user. DT&#x2019;s cross-platform user interface and multimedia management system for carriers and OEMs can be integrated with different operating systems to provide a more organized and unified experience for end-users of mobile content across search, social media, discovery, billing, and delivery. Other aspects of the platform, such as a smart content discovery toolbar, allows carriers and OEMs to control the data presented to their users while giving the end-user a more efficient way of finding and purchasing desired content.</font></p> <p style="font-size:1px;margin-top:12px;margin-bottom:0px"> &#xA0;</p> <p style="margin-top:0px;margin-bottom:0px"><font style="font-family:Times New Roman" size="2">On July&#xA0;27, 2012, the Company set up a wholly-owned Israeli acquisition/holding company, M.D.G. Logia Holdings LTD (&#x201C;MDG&#x201D;).</font></p> <p style="margin-top:12px;margin-bottom:0px"><font style="font-family:Times New Roman" size="2">On August&#xA0;15, 2012, the Company amended its charter with the state of Delaware to increase its total number of shares of common stock of the Company to 200,000,000 and preferred shares of the Company to 2,000,000.</font></p> <p style="margin-top:12px;margin-bottom:0px"><font style="font-family:Times New Roman" size="2">On September&#xA0;13, 2012, the Company completed an acquisition of 100% of the issued and outstanding share capital of three operating subsidiaries of Logia Group Ltd (&#x201C;Sellers&#x201D;) (Logia Content Development and Management Ltd. (&#x201C;Logia Content&#x201D;), Volas Entertainment Ltd. (&#x201C;Volas&#x201D;) and Mail Bit Logia (2008)&#xA0;Ltd. (&#x201C;Mail Bit&#x201D;), (collectively, the &#x201C;Targets&#x201D;)). In addition, the Company, by assignment to the acquisition entity, M.D.G. Logia Holdings Ltd (&#x201C;MDG&#x201D;), acquired the assets of LogiaDeck Ltd (an affiliate of the Seller, &#x201C;LogiaDeck&#x201D;), comprised of the &#x201C;LogiaDeck&#x201D; software, which the Company has rebranded &#x201C;Ignite&#x201D;, and certain operator and other contracts related to the business of the Logia companies that were originally entered into by the Sellers. Pursuant to the Logia purchase agreement, Mandalay Digital Group, Inc. purchased 23% of the outstanding shares of the Targets and MDG purchased 77% of such shares. On November&#xA0;7, 2012, Mandalay Digital Group, Inc. contributed all of its shares of the Targets to MDG pursuant to a Contribution Agreement among Mandalay Digital Group, Inc., Digital Turbine Group, Inc. and MDG. The acquired business of the Targets and Ignite are collectively referred to as &#x201C;Logia&#x201D; in this quarterly report.</font></p> <p style="margin-top:12px;margin-bottom:0px"><font style="font-family:Times New Roman" size="2">Logia is a mobile content development and management solutions provider of innovative mobile monetization solutions. It provides solutions for top-tier mobile operators and content providers, including device application management solutions, white label app&#xA0;and media stores, app-based value added services, and mobile social music and TV offerings.</font></p> </div>
us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
1308000
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
2000000
us-gaap Cost Of Revenue
CostOfRevenue
1975000
us-gaap Interest Income Expense Net
InterestIncomeExpenseNet
-1490000
us-gaap Preferred Stock Contract Terms
PreferredStockContractTerms
The Series A holders are entitled to (1) vote on an equal per share basis as common stock, (2) dividends paid to the common stock holders on an as if-converted basis and (3) a liquidation preference equal to the greater of $10 per share of Series A (subject to adjustment) or such amount that would have been paid to the common stock holders on an as if-converted basis.
us-gaap Operating Expenses
OperatingExpenses
11341000
us-gaap Increase Decrease In Other Accrued Liabilities
IncreaseDecreaseInOtherAccruedLiabilities
-155000
us-gaap Operating Leases Rent Expense Net
OperatingLeasesRentExpenseNet
155000
us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
26591 shares
us-gaap Impairment Of Intangible Assets Excluding Goodwill
ImpairmentOfIntangibleAssetsExcludingGoodwill
us-gaap Other Cost Of Operating Revenue
OtherCostOfOperatingRevenue
1018000
us-gaap Revenues
Revenues
4252000
us-gaap License Costs
LicenseCosts
957000
us-gaap Revenues From External Customers
RevenuesFromExternalCustomers
4252000
us-gaap Depreciation
Depreciation
83000
us-gaap Allocated Share Based Compensation Expense
AllocatedShareBasedCompensationExpense
630000
us-gaap Gross Profit
GrossProfit
2277000
us-gaap Business Acquisitions Pro Forma Net Income Loss
BusinessAcquisitionsProFormaNetIncomeLoss
-10253000
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
86917000 shares
us-gaap Amortization Of Debt Discount Premium
AmortizationOfDebtDiscountPremium
1070000
us-gaap Net Income Loss
NetIncomeLoss
-10742000
us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-1612000
us-gaap Foreign Currency Transaction Gain Loss Before Tax
ForeignCurrencyTransactionGainLossBeforeTax
-52000
us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
66000
us-gaap Effect Of Exchange Rate On Cash And Cash Equivalents
EffectOfExchangeRateOnCashAndCashEquivalents
61000
us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
us-gaap Use Of Estimates
UseOfEstimates
<div> <p style="MARGIN-TOP: 18px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman" size="2"><b>Use of Estimates</b></font></p> <p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px"><font style="FONT-FAMILY: Times New Roman" size="2">The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent asset and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. The most significant estimates relate to revenues for periods not yet reported by Carriers, liabilities recorded for future minimum guarantee payments under content licenses, accounts receivable allowances, and stock-based compensation expense.</font></p> </div>
us-gaap Increase Decrease In Fair Value Of Unhedged Derivative Instruments
IncreaseDecreaseInFairValueOfUnhedgedDerivativeInstruments
-22000
mndl Compensation Expense Related Restricted Shares
CompensationExpenseRelatedRestrictedShares
4515000
mndl Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Period Increase Decrease
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentPeriodIncreaseDecrease
46000
mndl Business Acquisition Pro Forma Income Before Taxes
BusinessAcquisitionProFormaIncomeBeforeTaxes
-10186000
mndl Supplemental Exercise Of Warrants To Purchase Common Stock
SupplementalExerciseOfWarrantsToPurchaseCommonStock
473000
mndl Interest Accretion Expense
InterestAccretionExpense
335000
mndl Business Acquisitions Pro Forma Nonoperating Income Expense
BusinessAcquisitionsProFormaNonoperatingIncomeExpense
-1634000
mndl Business Acquisitions Pro Forma Income Tax Expense Benefit
BusinessAcquisitionsProFormaIncomeTaxExpenseBenefit
67000
mndl Business Acquisition Pro Forma Operating Income Loss
BusinessAcquisitionProFormaOperatingIncomeLoss
-8552000
mndl Business Acquisition Pro Forma Cost Of Goods Sold
BusinessAcquisitionProFormaCostOfGoodsSold
3742000
CY2012 us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
9700000
mndl Issuance Of Common Stock For Acquired Company Assets
IssuanceOfCommonStockForAcquiredCompanyAssets
533000
CY2012Q3 us-gaap Business Acquisition Equity Interests Issued Or Issuable Number Of Shares Issued
BusinessAcquisitionEquityInterestsIssuedOrIssuableNumberOfSharesIssued
937500 shares
mndl Share Based Compensation Arrangement By Share Based Payment Award Award Vesting Description
ShareBasedCompensationArrangementByShareBasedPaymentAwardAwardVestingDescription
(i) one third vested upon the completion our most recent equity financing; (ii) one third shall vest if on any date during the term or within 12 months following the term, our total enterprise value equals or exceeds $100,000; and (iii) one third shall vest immediately if on any date during the term or within 12 months following the term our total enterprise value equals or exceeds $200,000;
mndl Business Acquisition Pro Forma Earnings Per Share Basic And Diluted
BusinessAcquisitionProFormaEarningsPerShareBasicAndDiluted
-0.12
mndl Business Acquisition Pro Forma Gross Profit
BusinessAcquisitionProFormaGrossProfit
3425000
mndl Gains Losses On Settlement And Conversion Of Debt
GainsLossesOnSettlementAndConversionOfDebt
-4000
mndl Number Of Shares Granted Against Share Limits
NumberOfSharesGrantedAgainstShareLimits
500000 shares
mndl Contingent Consideration For Acquisition
ContingentConsiderationForAcquisition
758000
mndl Business Acquisitions Pro Forma Operating Expenses
BusinessAcquisitionsProFormaOperatingExpenses
11977000
CY2012Q4 us-gaap Adjustments To Additional Paid In Capital Warrant Issued
AdjustmentsToAdditionalPaidInCapitalWarrantIssued
82000
CY2012Q4 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
93000
CY2012Q4 us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
-4165000
CY2012 us-gaap Impairment Of Intangible Assets Excluding Goodwill
ImpairmentOfIntangibleAssetsExcludingGoodwill
2319000
CY2012 us-gaap Indefinite Lived Intangible Assets Impairment Losses
IndefiniteLivedIntangibleAssetsImpairmentLosses
2319000
CY2012 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
2969000
CY2012 us-gaap Unrealized Gain Loss On Derivatives
UnrealizedGainLossOnDerivatives
21000
CY2012 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Forfeited In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsForfeitedInPeriod
134990 shares
CY2012 mndl Stock Issued During Period Shares Share Warrants Exercised
StockIssuedDuringPeriodSharesShareWarrantsExercised
365010 shares
CY2012Q2 us-gaap Adjustments To Additional Paid In Capital Warrant Issued
AdjustmentsToAdditionalPaidInCapitalWarrantIssued
473000
CY2012Q2 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
31000
CY2012Q2 us-gaap Stock Issued During Period Value Issued For Cash
StockIssuedDuringPeriodValueIssuedForCash
1000000
CY2012Q2 us-gaap Stock Issued During Period Value Restricted Stock Award Net Of Forfeitures
StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures
929000
CY2012Q2 us-gaap Net Income Loss
NetIncomeLoss
-2753000
CY2012Q2 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
CY2011Q4 us-gaap Operating Income Loss
OperatingIncomeLoss
-6115000
CY2011Q4 us-gaap Comprehensive Income Net Of Tax
ComprehensiveIncomeNetOfTax
-6832000
CY2011Q4 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.16
CY2011Q4 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
6648000
CY2011Q4 us-gaap Advertising Expense
AdvertisingExpense
1000
CY2011Q4 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
-6846000
CY2011Q4 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
204000
CY2011Q4 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
430000
CY2011Q4 us-gaap Cost Of Revenue
CostOfRevenue
790000
CY2011Q4 us-gaap Interest Income Expense Net
InterestIncomeExpenseNet
-1693000
CY2011Q4 us-gaap Operating Expenses
OperatingExpenses
7282000
CY2011Q4 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
41390 shares
CY2011Q4 us-gaap Other Cost Of Operating Revenue
OtherCostOfOperatingRevenue
57000
CY2011Q4 us-gaap Revenues
Revenues
1957000
CY2011Q4 us-gaap License Costs
LicenseCosts
733000
CY2011Q4 us-gaap Depreciation
Depreciation
45000
CY2011Q4 us-gaap Gross Profit
GrossProfit
1167000
CY2011Q4 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
41966000 shares
CY2011Q4 us-gaap Net Income Loss
NetIncomeLoss
-6878000
CY2011Q4 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-731000
CY2011Q4 us-gaap Foreign Currency Transaction Gain Loss Before Tax
ForeignCurrencyTransactionGainLossBeforeTax
-71000
CY2011Q4 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
32000
CY2011Q4 us-gaap Increase Decrease In Fair Value Of Unhedged Derivative Instruments
IncreaseDecreaseInFairValueOfUnhedgedDerivativeInstruments
-49000
CY2011Q4 mndl Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Period Increase Decrease
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentPeriodIncreaseDecrease
46000
CY2011Q4 mndl Gains Losses On Settlement And Conversion Of Debt
GainsLossesOnSettlementAndConversionOfDebt
1082000
CY2012Q3 us-gaap Adjustments To Additional Paid In Capital Sharebased Compensation Requisite Service Period Recognition Value
AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue
23000
CY2012Q3 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
-34000
CY2012Q3 us-gaap Stock Issued During Period Value Acquisitions
StockIssuedDuringPeriodValueAcquisitions
788000
CY2012Q3 us-gaap Stock Issued During Period Value Restricted Stock Award Net Of Forfeitures
StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures
1356000
CY2012Q3 us-gaap Net Income Loss
NetIncomeLoss
-3775000
CY2012Q3 us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
66000
CY2012Q3 mndl Goodwill Acquisitions
GoodwillAcquisitions
897000
CY2012Q4 us-gaap Operating Income Loss
OperatingIncomeLoss
-3579000
CY2012Q4 us-gaap Earnings Per Share Basic And Diluted
EarningsPerShareBasicAndDiluted
-0.05
CY2012Q4 us-gaap Other Nonoperating Expense
OtherNonoperatingExpense
44000
CY2012Q4 us-gaap General And Administrative Expense
GeneralAndAdministrativeExpense
3795000
CY2012Q4 us-gaap Advertising Expense
AdvertisingExpense
143000
CY2012Q4 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
49000
CY2012Q4 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
-4181000
CY2012Q4 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
329000
CY2012Q4 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
577000
CY2012Q4 us-gaap Cost Of Revenue
CostOfRevenue
927000
CY2012Q4 us-gaap Interest Income Expense Net
InterestIncomeExpenseNet
-536000
CY2012Q4 us-gaap Operating Expenses
OperatingExpenses
4701000
CY2012Q4 us-gaap Stock Issued During Period Value Issued For Cash
StockIssuedDuringPeriodValueIssuedForCash
1000000
CY2012Q4 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
WeightedAverageNumberDilutedSharesOutstandingAdjustment
25458 shares
CY2012Q4 us-gaap Other Cost Of Operating Revenue
OtherCostOfOperatingRevenue
737000
CY2012Q4 us-gaap Revenues
Revenues
2049000
CY2012Q4 us-gaap License Costs
LicenseCosts
190000
CY2012Q4 us-gaap Depreciation
Depreciation
27000
CY2012Q4 us-gaap Gross Profit
GrossProfit
1122000
CY2012Q4 us-gaap Stock Issued During Period Value Acquisitions
StockIssuedDuringPeriodValueAcquisitions
533000
CY2012Q4 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
88987000 shares
CY2012Q4 us-gaap Stock Issued During Period Value Restricted Stock Award Net Of Forfeitures
StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures
1317000
CY2012Q4 us-gaap Net Income Loss
NetIncomeLoss
-4214000
CY2012Q4 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-602000
CY2012Q4 us-gaap Foreign Currency Transaction Gain Loss Before Tax
ForeignCurrencyTransactionGainLossBeforeTax
-18000
CY2012Q4 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
33000
CY2012Q4 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
CY2012Q4 us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
305000
CY2012Q4 mndl Other Comprehensive Income Foreign Currency Transaction And Translation Adjustment Period Increase Decrease
OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentPeriodIncreaseDecrease
49000
CY2012Q4 mndl Gains Losses On Settlement And Conversion Of Debt
GainsLossesOnSettlementAndConversionOfDebt
-4000

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