2017 Q1 Form 10-Q Financial Statement

#000162828017001033 Filed on February 09, 2017

View on sec.gov

Income Statement

Concept 2017 Q1 2016 Q4 2015 Q4
Revenue $11.60M $11.77M $24.09M
YoY Change -49.64% -51.12% 243.83%
Cost Of Revenue -$30.75M $18.92M $20.27M
YoY Change -258.67% -6.69% 303.6%
Gross Profit $3.210M $3.317M $3.816M
YoY Change -12.1% -13.08% 92.34%
Gross Profit Margin 27.67% 28.17% 15.84%
Selling, General & Admin $390.0K $5.665M $6.343M
YoY Change -93.43% -10.69% 12.15%
% of Gross Profit 12.15% 170.79% 166.22%
Research & Development $220.0K $3.113M $2.738M
YoY Change -92.88% 13.7% 59.37%
% of Gross Profit 6.85% 93.85% 71.75%
Depreciation & Amortization -$3.720M $2.130M $1.760M
YoY Change -257.63% 21.02% 309.3%
% of Gross Profit -115.89% 64.21% 46.12%
Operating Expenses $5.977M $7.027M $9.081M
YoY Change -33.79% -22.62% 23.13%
Operating Profit -$2.767M -$3.710M -$5.265M
YoY Change -48.53% -29.53% -2.34%
Interest Expense -$3.210M $3.060M -$480.0K
YoY Change 597.83% -737.5% -1300.0%
% of Operating Profit
Other Income/Expense, Net -$92.00K $3.124M -$495.0K
YoY Change 360.0% -731.11% -2350.0%
Pretax Income -$6.083M -$568.0K -$5.760M
YoY Change 3.81% -90.14% 7.24%
Income Tax -$300.0K $300.0K $3.000K
% Of Pretax Income
Net Earnings -$6.930M -$2.586M -$5.763M
YoY Change 18.87% -55.13% 5.09%
Net Earnings / Revenue -59.75% -21.96% -23.92%
Basic Earnings Per Share
Diluted Earnings Per Share -$101.7K -$38.87K -$87.30K
COMMON SHARES
Basic Shares Outstanding 66.63M shares 66.63M shares 66.07M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2017 Q1 2016 Q4 2015 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $6.100M $5.700M $13.70M
YoY Change -45.54% -58.39% 20.18%
Cash & Equivalents $6.149M $5.705M $13.68M
Short-Term Investments
Other Short-Term Assets $1.000M $1.100M $1.000M
YoY Change 25.0% 10.0% 42.86%
Inventory
Prepaid Expenses
Receivables $10.66M $19.27M $16.74M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $23.67M $25.98M $31.37M
YoY Change -19.9% -17.2% 78.26%
LONG-TERM ASSETS
Property, Plant & Equipment $2.006M $2.480M $1.500M
YoY Change 36.46% 65.33% 275.0%
Goodwill $42.27M $76.62M $76.62M
YoY Change 0.0% 0.0%
Intangibles $2.647M $6.850M $14.57M
YoY Change -78.81% -52.98%
Long-Term Investments $0.00 $0.00 $1.000M
YoY Change -100.0% -100.0%
Other Assets $400.0K $300.0K $100.0K
YoY Change -20.0% 200.0%
Total Long-Term Assets $83.92M $86.24M $93.77M
YoY Change -9.18% -8.03% 497.27%
TOTAL ASSETS
Total Short-Term Assets $23.67M $25.98M $31.37M
Total Long-Term Assets $83.92M $86.24M $93.77M
Total Assets $107.6M $112.2M $125.1M
YoY Change -11.78% -10.33% 275.81%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $11.79M $19.81M $13.72M
YoY Change -22.96% 44.38% 261.05%
Accrued Expenses $3.011M $8.910M $10.17M
YoY Change -68.71% -12.38% 75.33%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00 $0.00 $3.150M
YoY Change -100.0% -100.0%
Total Short-Term Liabilities $30.77M $31.46M $30.89M
YoY Change -20.8% 1.84% 164.01%
LONG-TERM LIABILITIES
Long-Term Debt $9.685M $9.460M $7.445M
YoY Change 27.07%
Other Long-Term Liabilities $697.0K $1.097M
YoY Change -14.48%
Total Long-Term Liabilities $10.38M $10.56M $7.445M
YoY Change 1173.87% 41.8%
TOTAL LIABILITIES
Total Short-Term Liabilities $30.77M $31.46M $30.89M
Total Long-Term Liabilities $10.38M $10.56M $7.445M
Total Liabilities $45.54M $43.71M $38.33M
YoY Change 14.79% 14.02% 227.64%
SHAREHOLDERS EQUITY
Retained Earnings -$237.3M -$230.3M -$207.2M
YoY Change 11.39% 11.18%
Common Stock $8.000K $8.000K $8.000K
YoY Change 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost) $71.00K $71.00K $71.00K
YoY Change 0.0% 0.0%
Treasury Stock Shares 754.6K shares 754.6K shares 754.6K shares
Shareholders Equity $62.05M $68.51M $86.81M
YoY Change
Total Liabilities & Shareholders Equity $107.6M $112.2M $125.1M
YoY Change -11.78% -10.33% 275.81%

Cashflow Statement

Concept 2017 Q1 2016 Q4 2015 Q4
OPERATING ACTIVITIES
Net Income -$6.930M -$2.586M -$5.763M
YoY Change 18.87% -55.13% 5.09%
Depreciation, Depletion And Amortization -$3.720M $2.130M $1.760M
YoY Change -257.63% 21.02% 309.3%
Cash From Operating Activities $790.0K -$4.220M -$3.790M
YoY Change -149.07% 11.35% 17.34%
INVESTING ACTIVITIES
Capital Expenditures -$40.00K -$260.0K -$400.0K
YoY Change -92.59% -35.0%
Acquisitions
YoY Change
Other Investing Activities -$180.0K $1.000M $880.0K
YoY Change 13.64% -141.51%
Cash From Investing Activities -$220.0K $740.0K $480.0K
YoY Change -59.26% 54.17% -122.64%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -60.00K -230.0K 12.48M
YoY Change -60.0% -101.84%
NET CHANGE
Cash From Operating Activities 790.0K -4.220M -3.790M
Cash From Investing Activities -220.0K 740.0K 480.0K
Cash From Financing Activities -60.00K -230.0K 12.48M
Net Change In Cash 510.0K -3.710M 9.170M
YoY Change -122.17% -140.46% -271.4%
FREE CASH FLOW
Cash From Operating Activities $790.0K -$4.220M -$3.790M
Capital Expenditures -$40.00K -$260.0K -$400.0K
Free Cash Flow $830.0K -$3.960M -$3.390M
YoY Change -177.57% 16.81%

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us-gaap Gross Profit
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3000 USD
us-gaap Income Tax Expense Benefit Continuing Operations Discontinued Operations Extraordinary Items
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300000 USD
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159000 USD
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5000 USD
us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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us-gaap Other Nonoperating Income Expense
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101000 USD
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1381000 USD
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2319000 USD
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2000000 shares
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100000 shares
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100000 shares
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100000 shares
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PreferredStockSharesOutstanding
100000 shares
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100000 USD
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553000 USD
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22285000 USD
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69156000 USD
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16000000 USD
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875000 USD
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us-gaap Research And Development Expense
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us-gaap Research And Development Expense
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us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested In Period Fair Value1
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us-gaap Concentration Risk Credit Risk
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Concentrations of Credit Risk</font></div><div style="line-height:120%;padding-bottom:6px;padding-top:16px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and accounts receivable. A significant portion of the Company&#8217;s cash is held at one&#160;major financial institution that the Company's management has assessed to be of high credit quality. The Company has not experienced any losses in such accounts.</font></div><div style="line-height:120%;padding-bottom:6px;padding-top:16px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company mitigates its credit risk with respect to accounts receivable by performing credit evaluations and monitoring advertisers' and carriers' accounts receivable balances. The Company counts all advertisers and carriers within a single corporate structure as one customer, even in cases where multiple brands, branches, or divisions of an organization enter into separate contracts with the Company. As of </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2016</font><font style="font-family:inherit;font-size:10pt;">, one major Advertising customer represented approximately </font><font style="font-family:inherit;font-size:10pt;">22.4%</font><font style="font-family:inherit;font-size:10pt;"> of the Company&#8217;s net accounts receivable balance. As of&#160;</font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2016</font><font style="font-family:inherit;font-size:10pt;">, one major Content customer represented </font><font style="font-family:inherit;font-size:10pt;">15.6%</font><font style="font-family:inherit;font-size:10pt;"> of the Company&#8217;s net accounts receivable balance, and the previously mentioned major Advertising customer represented </font><font style="font-family:inherit;font-size:10pt;">5.5%</font><font style="font-family:inherit;font-size:10pt;"> of the Company's net accounts receivable balance.</font></div><div style="line-height:120%;padding-bottom:6px;padding-top:16px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">With respect to revenue concentration, the Company defines a customer as an advertiser or a carrier that is a distinct source of revenue and is legally bound to pay for the services that the Company delivers on the advertiser&#8217;s or carrier's behalf. During the </font><font style="font-family:inherit;font-size:10pt;">three and nine months ended December 31, 2016</font><font style="font-family:inherit;font-size:10pt;">, the previously mentioned major Advertising customer represented </font><font style="font-family:inherit;font-size:10pt;">16.2%</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">13.4%</font><font style="font-family:inherit;font-size:10pt;">, respectively, of net revenues, another major Advertising customer represented </font><font style="font-family:inherit;font-size:10pt;">13.9%</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">11.4%</font><font style="font-family:inherit;font-size:10pt;">, respectively, of net revenues, and another major Content customer represented </font><font style="font-family:inherit;font-size:10pt;">16.2%</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">23.7%</font><font style="font-family:inherit;font-size:10pt;">, respectively, of net revenues. During the </font><font style="font-family:inherit;font-size:10pt;">three and nine months ended December 31, 2015</font><font style="font-family:inherit;font-size:10pt;">, the previously mentioned major Advertising customer represented </font><font style="font-family:inherit;font-size:10pt;">1.9%</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">1.6%</font><font style="font-family:inherit;font-size:10pt;">, respectively, of net revenues, the previously mentioned second major Advertising customer represented </font><font style="font-family:inherit;font-size:10pt;">9.3%</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">8.7%</font><font style="font-family:inherit;font-size:10pt;">, respectively, of net revenues, and the previously mentioned major Content customer represented </font><font style="font-family:inherit;font-size:10pt;">22.0%</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">26.6%</font><font style="font-family:inherit;font-size:10pt;">, respectively, of net revenues.</font></div><div style="line-height:120%;padding-bottom:6px;padding-top:16px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company may not continue to receive significant revenues from any of these or from other large customers. A reduction or delay in operating activity from any of the Company&#8217;s significant customers, or a delay or default in payment by any significant customer could materially harm the Company&#8217;s business and prospects. Because of the Company&#8217;s significant customer concentration, its net sales and operating income could fluctuate significantly due to changes in political or economic conditions, or the loss, reduction of business, or less favorable terms for any of the Company's significant customers.</font></div></div>
us-gaap Nature Of Operations
NatureOfOperations
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Description of Business</font></div><div style="line-height:120%;padding-top:16px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Digital Turbine, through its subsidiaries, innovates at the convergence of media and mobile communications, delivering end-to-end products and solutions for mobile operators, application advertisers, device original equipment manufacturers ("OEMs") and other third parties to enable them to effectively monetize mobile content and generate higher value user acquisition. The Company operates its business in </font><font style="font-family:inherit;font-size:10pt;">two</font><font style="font-family:inherit;font-size:10pt;"> reportable segments &#8211; Advertising and Content.</font></div><div style="line-height:120%;padding-top:16px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company's Advertising business is comprised of </font><font style="font-family:inherit;font-size:10pt;">two</font><font style="font-family:inherit;font-size:10pt;"> businesses:</font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:112px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:88px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Operator and OEM ("O&amp;O"), an advertiser solution for unique and exclusive carrier and OEM inventory which is comprised of services including:</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:160px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:136px;"><font style="font-family:inherit;font-size:10pt;">&#9702;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Ignite&#8482; ("Ignite"), a mobile device management platform with targeted application distribution capabilities, </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:160px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:136px;"><font style="font-family:inherit;font-size:10pt;">&#9702;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Discover&#8482; ("Discover"), an intelligent application discovery platform, and</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:160px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:136px;"><font style="font-family:inherit;font-size:10pt;">&#9702;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Other professional services directly related to the Ignite platform.</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:112px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:88px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Advertiser and Publisher ("A&amp;P"), a worldwide mobile user acquisition network which is comprised of services including:</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:160px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:136px;"><font style="font-family:inherit;font-size:10pt;">&#9702;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Syndicated network, and</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:160px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:136px;"><font style="font-family:inherit;font-size:10pt;">&#9702;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Real Time Bidding ("RTB" or "programmatic advertising").</font></div></td></tr></table><div style="line-height:120%;padding-top:16px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company's Content business is comprised of services including:</font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:112px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:88px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Marketplace&#8482; ("Marketplace"), an application and content store, and</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt;"><tr><td style="width:112px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:88px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Pay&#8482; ("Pay"), a content management and mobile payment solution.</font></div></td></tr></table><div style="line-height:120%;padding-top:16px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">With global headquarters in Austin, Texas and offices in Durham, North Carolina, San Francisco, California, Singapore, Sydney, and Tel Aviv, Digital Turbine&#8217;s solutions are available worldwide.</font></div><div style="line-height:120%;padding-top:16px;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Unless the context otherwise indicates, the use of the terms &#8220;we,&#8221; &#8220;our,&#8221; &#8220;us,&#8221; &#8220;Digital Turbine,&#8221; &#8220;DT,&#8221; or the &#8220;Company&#8221; refer to the collective business and operations of Digital Turbine, Inc. through its operating and wholly-owned subsidiaries, Digital Turbine USA, Inc. (&#8220;DT USA&#8221;), Digital Turbine (EMEA) Ltd. (&#8220;DT EMEA&#8221;), Digital Turbine Australia Pty Ltd (&#8220;DT APAC&#8221;), Digital Turbine Singapore Pte. Ltd. (&#8220;DT Singapore&#8221;), Digital Turbine Luxembourg S.a.r.l. (&#8220;DT Luxembourg&#8221;), Digital Turbine Germany, GmbH (&#8220;DT Germany&#8221;), and Digital Turbine Media, Inc. (&#8220;DT Media&#8221; or "DTM"). We refer to all the Company's subsidiaries collectively as "wholly-owned subsidiaries." We refer to Appia, Inc., a company we acquired on March 6, 2015, as &#8220;DT Media&#8221; or "DTM."</font></div></div>

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