2019 Q3 Form 10-Q Financial Statement

#000162828019013190 Filed on November 04, 2019

View on sec.gov

Income Statement

Concept 2019 Q3 2018 Q3
Revenue $32.80M $23.85M
YoY Change 37.48% 49.98%
Cost Of Revenue $20.49M $16.31M
YoY Change 25.63% 58.43%
Gross Profit $12.31M $7.544M
YoY Change 63.11% 34.47%
Gross Profit Margin 37.52% 31.63%
Selling, General & Admin $6.455M $4.592M
YoY Change 40.57% -5.03%
% of Gross Profit 52.46% 60.87%
Research & Development $2.735M $2.637M
YoY Change 3.72% 17.67%
% of Gross Profit 22.23% 34.95%
Depreciation & Amortization $482.0K $371.0K
YoY Change 29.92% 27.05%
% of Gross Profit 3.92% 4.92%
Operating Expenses $9.190M $7.229M
YoY Change 27.13% 2.16%
Operating Profit $3.115M $315.0K
YoY Change 888.89% -121.49%
Interest Expense $41.00K $135.0K
YoY Change -69.63% -79.61%
% of Operating Profit 1.32% 42.86%
Other Income/Expense, Net -$4.380M $1.730M
YoY Change -353.18% -128.73%
Pretax Income -$1.265M $2.045M
YoY Change -161.86% -127.31%
Income Tax $72.00K -$23.00K
% Of Pretax Income -1.12%
Net Earnings -$1.425M $1.712M
YoY Change -183.24% -126.51%
Net Earnings / Revenue -4.35% 7.18%
Basic Earnings Per Share -$0.02
Diluted Earnings Per Share -$0.02 $21.71K
COMMON SHARES
Basic Shares Outstanding 83.91M shares 77.19M shares
Diluted Shares Outstanding 83.91M shares 78.78M shares

Balance Sheet

Concept 2019 Q3 2018 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $25.20M $8.300M
YoY Change 203.61% 40.68%
Cash & Equivalents $25.15M $8.349M
Short-Term Investments
Other Short-Term Assets $3.000M $5.000M
YoY Change -40.0% 525.0%
Inventory
Prepaid Expenses
Receivables $25.30M $20.86M
Other Receivables $0.00 $0.00
Total Short-Term Assets $53.53M $34.18M
YoY Change 56.6% 11.9%
LONG-TERM ASSETS
Property, Plant & Equipment $4.278M $3.053M
YoY Change 40.12% 19.03%
Goodwill $42.27M $42.27M
YoY Change 0.0% -44.84%
Intangibles $561.0K
YoY Change -83.47%
Long-Term Investments
YoY Change
Other Assets $0.00 $700.0K
YoY Change -100.0% 0.0%
Total Long-Term Assets $48.69M $46.54M
YoY Change 4.64% -44.11%
TOTAL ASSETS
Total Short-Term Assets $53.53M $34.18M
Total Long-Term Assets $48.69M $46.54M
Total Assets $102.2M $80.72M
YoY Change 26.64% -29.08%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $22.31M $26.75M
YoY Change -16.59% 14.93%
Accrued Expenses $11.63M $5.717M
YoY Change 103.45% -45.25%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $1.500M
YoY Change -100.0% -31.82%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $51.55M $41.92M
YoY Change 22.95% 7.5%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $3.418M
YoY Change -100.0% -47.49%
Other Long-Term Liabilities $2.110M $3.200M
YoY Change -34.06% 1227.8%
Total Long-Term Liabilities $2.110M $3.418M
YoY Change -38.27% -49.36%
TOTAL LIABILITIES
Total Short-Term Liabilities $51.55M $41.92M
Total Long-Term Liabilities $2.110M $3.418M
Total Liabilities $53.66M $48.55M
YoY Change 10.51% -9.37%
SHAREHOLDERS EQUITY
Retained Earnings -$299.4M -$287.9M
YoY Change 3.98% 16.15%
Common Stock $10.00K $10.00K
YoY Change 0.0% 0.0%
Preferred Stock
YoY Change
Treasury Stock (at cost) $71.00K $71.00K
YoY Change 0.0% 0.0%
Treasury Stock Shares 754.6K shares 754.6K shares
Shareholders Equity $48.57M $32.17M
YoY Change
Total Liabilities & Shareholders Equity $102.2M $80.72M
YoY Change 26.64% -29.08%

Cashflow Statement

Concept 2019 Q3 2018 Q3
OPERATING ACTIVITIES
Net Income -$1.425M $1.712M
YoY Change -183.24% -126.51%
Depreciation, Depletion And Amortization $482.0K $371.0K
YoY Change 29.92% 27.05%
Cash From Operating Activities $6.760M $360.0K
YoY Change 1777.78% 1700.0%
INVESTING ACTIVITIES
Capital Expenditures -$1.030M -$680.0K
YoY Change 51.47% 51.11%
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00
YoY Change
Cash From Investing Activities -$1.030M -$680.0K
YoY Change 51.47% 51.11%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 3.610M 120.0K
YoY Change 2908.33% -1300.0%
NET CHANGE
Cash From Operating Activities 6.760M 360.0K
Cash From Investing Activities -1.030M -680.0K
Cash From Financing Activities 3.610M 120.0K
Net Change In Cash 9.340M -200.0K
YoY Change -4770.0% -54.55%
FREE CASH FLOW
Cash From Operating Activities $6.760M $360.0K
Capital Expenditures -$1.030M -$680.0K
Free Cash Flow $7.790M $1.040M
YoY Change 649.04% 121.28%

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2045000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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3537000 USD
CY2019Q3 us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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-1265000 USD
us-gaap Income Tax Expense Benefit Continuing Operations Discontinued Operations Extraordinary Items
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6857000 USD
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7401000 USD
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4166000 USD
us-gaap Increase Decrease In Accounts Receivable
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2754000 USD
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59000 USD
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-33000 USD
us-gaap Increase Decrease In Derivative Assets And Liabilities
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2572000 USD
us-gaap Increase Decrease In Derivative Assets And Liabilities
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0 USD
us-gaap Increase Decrease In Derivative Liabilities
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-2496000 USD
us-gaap Increase Decrease In Derivative Liabilities
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9731000 USD
us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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us-gaap Income Loss From Continuing Operations Per Basic And Diluted Share
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0.05
CY2019Q3 us-gaap Income Loss From Continuing Operations Per Basic And Diluted Share
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-0.02
us-gaap Income Loss From Continuing Operations Per Basic And Diluted Share
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us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Reporting Entity
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-1400000 USD
CY2019Q3 us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Reporting Entity
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-88000 USD
us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Reporting Entity
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-0.01
us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic And Diluted Share
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0.00
us-gaap Income Loss From Discontinued Operations Net Of Tax Per Basic And Diluted Share
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0.00
CY2018Q3 us-gaap Income Tax Expense Benefit Continuing Operations Discontinued Operations Extraordinary Items
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us-gaap Income Tax Expense Benefit Continuing Operations Discontinued Operations Extraordinary Items
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-59000 USD
CY2019Q3 us-gaap Income Tax Expense Benefit Continuing Operations Discontinued Operations Extraordinary Items
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72000 USD
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us-gaap Increase Decrease In Employee Related Liabilities
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-2515000 USD
us-gaap Increase Decrease In Other Accrued Liabilities
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-4575000 USD
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us-gaap Increase Decrease In Other Noncurrent Liabilities
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1928000 USD
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411000 USD
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2554000 USD
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us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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86000 USD
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135000 USD
us-gaap Interest Expense
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454000 USD
us-gaap Interest Expense
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us-gaap Interest Income Expense Nonoperating Net
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41000 USD
us-gaap Interest Income Expense Nonoperating Net
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59000 USD
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264000 USD
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409000 USD
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297000 USD
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203000 USD
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520000 USD
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688000 USD
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338000 USD
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51545000 USD
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3924000 USD
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3516000 USD
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us-gaap Net Cash Provided By Used In Financing Activities
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110000 USD
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us-gaap Net Cash Provided By Used In Investing Activities Continuing Operations
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us-gaap Net Cash Provided By Used In Operating Activities
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us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
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484000 USD
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us-gaap Net Income Loss
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us-gaap Net Income Loss
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CY2018Q3 us-gaap Nonoperating Income Expense
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1730000 USD
us-gaap Nonoperating Income Expense
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4482000 USD
CY2019Q3 us-gaap Nonoperating Income Expense
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us-gaap Nonoperating Income Expense
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us-gaap Number Of Reportable Segments
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7229000 USD
us-gaap Operating Expenses
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14878000 USD
CY2019Q3 us-gaap Operating Expenses
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9190000 USD
us-gaap Operating Expenses
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18150000 USD
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315000 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
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CY2019Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
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us-gaap Operating Income Loss
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P4Y6M18D
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2000 USD
us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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2000 USD
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98000 USD
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us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
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3249000 USD
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182000 USD
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2110000 USD
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us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
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CY2019Q3 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
84000 USD
us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
474000 USD
us-gaap Payments For Proceeds From Productive Assets
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1085000 USD
us-gaap Payments For Proceeds From Productive Assets
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1805000 USD
CY2019Q1 us-gaap Preferred Stock Liquidation Preference Value
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1000000 USD
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1000000 USD
CY2019Q1 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.0001
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PreferredStockParOrStatedValuePerShare
0.0001
CY2019Q1 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
2000000 shares
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PreferredStockSharesAuthorized
2000000 shares
CY2019Q1 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
100000 shares
CY2019Q3 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
100000 shares
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100000 shares
CY2019Q3 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
100000 shares
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100000 USD
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100000 USD
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1331000 USD
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160000 USD
us-gaap Proceeds From Stock Options Exercised
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4813000 USD
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7858000 USD
CY2019Q3 us-gaap Property Plant And Equipment Gross
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9351000 USD
CY2019Q1 us-gaap Property Plant And Equipment Net
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3430000 USD
CY2019Q3 us-gaap Property Plant And Equipment Net
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4278000 USD
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
354000 USD
us-gaap Provision For Doubtful Accounts
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158000 USD
us-gaap Repayments Of Long Term Debt
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50000 USD
us-gaap Repayments Of Long Term Debt
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0 USD
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165000 USD
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5.00
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6.45
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us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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45966000 USD
us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Vested In Period Fair Value1
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953000 USD
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2.15
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us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
5746000 USD
CY2019Q3 us-gaap Research And Development Expense
ResearchAndDevelopmentExpense
2735000 USD
us-gaap Research And Development Expense
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5529000 USD
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165000 USD
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32795000 USD
us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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63348000 USD
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us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
3749000 USD
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SellingAndMarketingExpense
2441000 USD
us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
4719000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
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us-gaap Share Based Compensation
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1300000 USD
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162000 USD
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ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisesInPeriodTotalIntrinsicValue
6881000 USD
CY2019Q3 us-gaap Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Number Of Exercisable Options
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4879562 shares
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2.24
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P7Y3M10D
us-gaap Stock Issued1
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us-gaap Stock Issued1
StockIssued1
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121000 USD
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910000 USD
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1891000 USD
CY2018Q1 us-gaap Stockholders Equity
StockholdersEquity
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StockholdersEquity
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CY2018Q3 us-gaap Stockholders Equity
StockholdersEquity
32165000 USD
CY2019Q1 us-gaap Stockholders Equity
StockholdersEquity
36358000 USD
CY2019Q2 us-gaap Stockholders Equity
StockholdersEquity
37233000 USD
CY2019Q3 us-gaap Stockholders Equity
StockholdersEquity
48567000 USD
CY2019Q1 us-gaap Treasury Stock Shares
TreasuryStockShares
754599 shares
CY2019Q3 us-gaap Treasury Stock Shares
TreasuryStockShares
754599 shares
CY2019Q1 us-gaap Treasury Stock Value
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71000 USD
CY2019Q3 us-gaap Treasury Stock Value
TreasuryStockValue
71000 USD
CY2019Q1 us-gaap Unbilled Receivables Current
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2019Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2018Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
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us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2019Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
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us-gaap Weighted Average Number Of Shares Outstanding Basic
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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;">September&#160;30, 2019</font><font style="font-family:inherit;font-size:10pt;">, one major customer represented approximately </font><font style="font-family:inherit;font-size:10pt;">27.0%</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, 2019</font><font style="font-family:inherit;font-size:10pt;">, one major customer represented </font><font style="font-family:inherit;font-size:10pt;">25.7%</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 customer 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 six months ended September 30, 2019</font><font style="font-family:inherit;font-size:10pt;">, Verizon Communications Inc., primarily through its subsidiary Oath Inc., represented </font><font style="font-family:inherit;font-size:10pt;">20.6%</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">19.6%</font><font style="font-family:inherit;font-size:10pt;"> of net revenues, respectively, and GSN Games, Inc. represented </font><font style="font-family:inherit;font-size:10pt;">10.1%</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">10.9%</font><font style="font-family:inherit;font-size:10pt;"> of net revenues, respectively. During the </font><font style="font-family:inherit;font-size:10pt;">three and six months ended September 30, 2018</font><font style="font-family:inherit;font-size:10pt;">, Oath Inc. represented </font><font style="font-family:inherit;font-size:10pt;">39.0%</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">32.7%</font><font style="font-family:inherit;font-size:10pt;"> of net revenues, respectively.</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 partner revenue concentration, the Company partners with mobile carriers and OEMs to deliver applications on our Ignite platform through the carrier network. During the </font><font style="font-family:inherit;font-size:10pt;">three and six months ended September 30, 2019</font><font style="font-family:inherit;font-size:10pt;">, Verizon Wireless, a carrier partner, generated </font><font style="font-family:inherit;font-size:10pt;">43.3%</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">43.5%</font><font style="font-family:inherit;font-size:10pt;">, respectively, and AT&amp;T Inc., a carrier partner, including its Cricket subsidiary, generated </font><font style="font-family:inherit;font-size:10pt;">31.4%</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">32.7%</font><font style="font-family:inherit;font-size:10pt;">, respectively, of our net revenues. During the </font><font style="font-family:inherit;font-size:10pt;">three and six months ended September 30, 2018</font><font style="font-family:inherit;font-size:10pt;">, Verizon Wireless, a carrier partner, generated </font><font style="font-family:inherit;font-size:10pt;">49.7%</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">50.2%</font><font style="font-family:inherit;font-size:10pt;">, respectively, and AT&amp;T Inc., a carrier partner, including its Cricket subsidiary, generated </font><font style="font-family:inherit;font-size:10pt;">38.8%</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">38.3%</font><font style="font-family:inherit;font-size:10pt;">, respectively, of our 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;">There is no assurance that the Company will continue to receive significant revenues from any of these or 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, or a termination of agreements with significant customers, could materially harm the Company&#8217;s business and prospects. Because of the Company&#8217;s significant customer concentrations, its net sales and operating income could fluctuate significantly due to changes in political or economic conditions, or the loss of, reduction of business from, or less favorable terms with 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:8px;text-indent:73px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Digital Turbine, Inc., through its subsidiaries, innovates at the convergence of media and mobile communications, delivering an end-to-end platform solution for mobile operators, application developers, device original equipment manufacturers ("OEMs"), and other third parties to enable them to effectively monetize mobile content and generate higher-value user acquisition. Historically through September 30, 2019, Digital Turbine has delivered over </font><font style="font-family:inherit;font-size:10pt;">2 billion</font><font style="font-family:inherit;font-size:10pt;"> application pre-loads on over </font><font style="font-family:inherit;font-size:10pt;">325 million</font><font style="font-family:inherit;font-size:10pt;"> devices across over </font><font style="font-family:inherit;font-size:10pt;">thirty</font><font style="font-family:inherit;font-size:10pt;"> Operator and OEM ("O&amp;O") partnerships. The Company operates this business as </font><font style="font-family:inherit;font-size:10pt;">one</font><font style="font-family:inherit;font-size:10pt;"> reportable segment &#8211; Advertising.</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:8px;text-indent:73px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company's Advertising segment operates the Operator and OEM (O&amp;O) business, an advertiser solution for unique and exclusive carrier and OEM inventory, which is comprised of services including:</font></div><table cellpadding="0" cellspacing="0" style="padding-bottom:8px;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;">Ignite&#8482; ("Ignite"), a software platform with targeted media delivery and management capabilities, 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;">Other recurring and life-cycle products, features, and professional services delivered on the Ignite platform.</font></div></td></tr></table><div style="line-height:120%;padding-top:8px;text-indent:73px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Prior to the sale of the Advertiser and Publisher ("A&amp;P") Assets described below under Note 4. "Discontinued Operations," the Advertising reporting segment also included the A&amp;P Assets as an operating segment within Advertising.</font></div><div style="line-height:120%;padding-top:16px;text-indent:73px;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; and Tel Aviv, Israel, 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;), which we acquired on March 6, 2015. We refer to all of the Company's subsidiaries collectively as "wholly-owned subsidiaries."</font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<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;">Use of Estimates</font></div><div style="line-height:120%;padding-top:16px;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with GAAP requires management to make certain estimates that impact the reported amounts in the consolidated financial statements and accompanying notes. These estimates are recurring in nature and relate to transactions occurring in the normal course of business. In the opinion of management, these are appropriate estimates for arrangements to be settled at a later date based on the facts and circumstances available at the time of filing. Actual results could differ materially from those estimates.</font></div></div>

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