2013 Q3 Form 10-Q Financial Statement

#000114420413046007 Filed on August 14, 2013

View on sec.gov

Income Statement

Concept 2013 Q3 2013 Q2 2012 Q2
Revenue $50.00K $30.00K $30.00K
YoY Change 66.67% 0.0% -85.0%
Cost Of Revenue $40.00K $40.00K $40.00K
YoY Change 100.0% 0.0% 0.0%
Gross Profit $10.00K -$10.00K $0.00
YoY Change -100.0%
Gross Profit Margin 20.0% -33.33% 0.0%
Selling, General & Admin $780.0K $736.6K $883.5K
YoY Change -9.3% -16.63% -38.22%
% of Gross Profit 7800.0%
Research & Development $430.0K $430.0K $270.0K
YoY Change 152.94% 59.26% 50.0%
% of Gross Profit 4300.0%
Depreciation & Amortization $0.00 $0.00 $0.00
YoY Change -100.0%
% of Gross Profit 0.0%
Operating Expenses $1.210M $1.205M $1.186M
YoY Change 16.35% 1.61% -26.32%
Operating Profit -$1.200M -$1.179M -$1.153M
YoY Change 15.38% 2.25% -20.46%
Interest Expense -$70.00K -$183.3K -$767.4K
YoY Change -101.32% -76.11% -132.24%
% of Operating Profit
Other Income/Expense, Net -$5.790M -$152.8K $4.871M
YoY Change -58000.0% -103.14% -8218.17%
Pretax Income -$7.060M -$1.332M $3.718M
YoY Change -265.73% -135.84% 327.3%
Income Tax $0.00 $0.00 $1.100K
% Of Pretax Income 0.03%
Net Earnings -$7.070M -$1.334M $3.615M
YoY Change -272.44% -136.9% 315.54%
Net Earnings / Revenue -14140.0% -4446.67% 12050.67%
Basic Earnings Per Share -$0.03 $1.93
Diluted Earnings Per Share -$35.35M -$0.03 $0.51
COMMON SHARES
Basic Shares Outstanding 81.14M shares 42.69M shares 1.874M shares
Diluted Shares Outstanding 42.69M shares 7.100M shares

Balance Sheet

Concept 2013 Q3 2013 Q2 2012 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.270M $670.0K $20.00K
YoY Change 12600.0% 3250.0% -97.8%
Cash & Equivalents $1.274M $671.6K $10.90K
Short-Term Investments
Other Short-Term Assets $60.00K $100.0K $80.00K
YoY Change 0.0% 25.0% -77.14%
Inventory
Prepaid Expenses
Receivables $26.60K $12.10K $30.00K
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $1.364M $790.2K $130.0K
YoY Change 1569.4% 507.85% -90.08%
LONG-TERM ASSETS
Property, Plant & Equipment $16.80K $19.10K $20.00K
YoY Change -16.0% -4.5% -33.33%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $21.50K $22.00K $30.00K
YoY Change -8.9% -26.67% 50.0%
Total Long-Term Assets $38.30K $41.10K $60.00K
YoY Change -12.16% -31.5% 20.0%
TOTAL ASSETS
Total Short-Term Assets $1.364M $790.2K $130.0K
Total Long-Term Assets $38.30K $41.10K $60.00K
Total Assets $1.402M $831.3K $190.0K
YoY Change 1019.07% 337.53% -86.03%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.493M $3.000M $2.990M
YoY Change -19.23% 0.33% 110.56%
Accrued Expenses $790.0K $2.130M $1.090M
YoY Change -32.48% 95.41% 15.96%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $6.520M $6.840M
YoY Change -100.0% -4.68% 135.86%
Long-Term Debt Due $7.200K $7.000K $10.00K
YoY Change 38.46% -30.0% 0.0%
Total Short-Term Liabilities $3.556M $11.94M $18.10M
YoY Change -73.05% -34.05% 73.04%
LONG-TERM LIABILITIES
Long-Term Debt $10.00K $10.00K $10.00K
YoY Change 0.0% 0.0% 0.0%
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $6.000K $7.900K $10.00K
YoY Change 20.0% -21.0% 0.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $3.556M $11.94M $18.10M
Total Long-Term Liabilities $6.000K $7.900K $10.00K
Total Liabilities $3.562M $11.94M $18.11M
YoY Change -73.01% -34.04% 72.97%
SHAREHOLDERS EQUITY
Retained Earnings -$56.55M -$49.48M
YoY Change 23.9%
Common Stock $92.70K $49.80K
YoY Change 4778.95%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity -$2.160M -$11.11M -$17.92M
YoY Change
Total Liabilities & Shareholders Equity $1.402M $831.3K $190.0K
YoY Change 1019.07% 337.53% -86.03%

Cashflow Statement

Concept 2013 Q3 2013 Q2 2012 Q2
OPERATING ACTIVITIES
Net Income -$7.070M -$1.334M $3.615M
YoY Change -272.44% -136.9% 315.54%
Depreciation, Depletion And Amortization $0.00 $0.00 $0.00
YoY Change -100.0%
Cash From Operating Activities -$1.000M -$740.0K -$360.0K
YoY Change 156.41% 105.56% -59.09%
INVESTING ACTIVITIES
Capital Expenditures $0.00 $0.00 -$30.00K
YoY Change -100.0% -100.0%
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00
YoY Change -100.0%
Cash From Investing Activities $0.00 $0.00 $0.00
YoY Change
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 1.590M 700.0K 200.0K
YoY Change 297.5% 250.0% -78.95%
NET CHANGE
Cash From Operating Activities -1.000M -740.0K -360.0K
Cash From Investing Activities 0.000 0.000 0.000
Cash From Financing Activities 1.590M 700.0K 200.0K
Net Change In Cash 590.0K -40.00K -160.0K
YoY Change 5800.0% -75.0% -328.57%
FREE CASH FLOW
Cash From Operating Activities -$1.000M -$740.0K -$360.0K
Capital Expenditures $0.00 $0.00 -$30.00K
Free Cash Flow -$1.000M -$740.0K -$330.0K
YoY Change 138.1% 124.24% -62.5%

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CY2013Q2 us-gaap Income Loss From Continuing Operations Per Diluted Share
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CY2012Q2 us-gaap Income Loss From Continuing Operations Per Diluted Share
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us-gaap Income Loss From Continuing Operations Per Diluted Share
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us-gaap Income Loss From Continuing Operations Per Diluted Share
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CY2013Q2 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
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CY2012Q2 us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
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us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
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us-gaap Income Loss From Discontinued Operations Net Of Tax Per Diluted Share
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CY2013Q2 us-gaap Earnings Per Share Diluted
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CY2012Q2 us-gaap Earnings Per Share Diluted
EarningsPerShareDiluted
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us-gaap Earnings Per Share Diluted
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us-gaap Earnings Per Share Diluted
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CY2013Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2012Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
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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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CY2013Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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CY2012Q2 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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us-gaap Weighted Average Number Of Diluted Shares Outstanding
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us-gaap Share Based Compensation
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cnso Issuance Of Warrants For Financing Services
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cnso Issuance Of Warrants For Financing Services
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us-gaap Extinguishment Of Debt Amount
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us-gaap Extinguishment Of Debt Amount
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cnso Noncash Interest Expense
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cnso Noncash Interest Expense
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us-gaap Increase Decrease In Accounts Receivable
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us-gaap Increase Decrease In Accounts Receivable
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us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Noncontrolling Interest
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us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Noncontrolling Interest
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us-gaap Other Depreciation And Amortization
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us-gaap Share Based Compensation
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us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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us-gaap Increase Decrease In Deferred Compensation
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us-gaap Increase Decrease In Security Deposits
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us-gaap Increase Decrease In Security Deposits
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us-gaap Payments To Acquire Furniture And Fixtures
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us-gaap Payments To Acquire Furniture And Fixtures
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us-gaap Proceeds From Sale Of Productive Assets
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us-gaap Proceeds From Sale Of Productive Assets
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us-gaap Payments To Acquire Intangible Assets
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us-gaap Net Cash Provided By Used In Investing Activities
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us-gaap Net Cash Provided By Used In Investing Activities
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us-gaap Repayments Of Long Term Capital Lease Obligations
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us-gaap Proceeds From Warrant Exercises
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cnso Fair Value Of Equipment Acquired Through Lease
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cnso Placement Agent Warrants Issued
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cnso Offering Costs Cash Flow Noncash Investing And Financing Activities
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cnso Shares Issued For Promissory Notes
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cnso Shares Issued For Officer Salaries
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dei Entity Incorporation State Country Name
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CY2013Q2 us-gaap Preferred Stock Capital Shares Reserved For Future Issuance
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us-gaap Nature Of Operations
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The Company has limited ability to meet its current obligations as they become due and it is in arrears on paying most of its creditors.&#160;</div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> <font size="2">&#160;</font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> To date, the Company has financed its cash requirements primarily from debt and equity financings. It will be necessary for the Company to raise additional funds immediately to continue its operations and to raise substantial additional funds before the Company can increase demand for its PEER Online services (formerly known as rEEG services). Until it can generate a sufficient amount of revenues to finance its cash requirements, which it may never do, the Company has to finance future cash needs primarily through public or private equity offerings, debt financings, borrowings or strategic collaborations. The Company&#8217;s liquidity and capital requirements depend on several factors, including the rate of market acceptance of its services, the future profitability of the Company, the rate of growth of the Company&#8217;s business and other factors described elsewhere in this report. The Company continues to explore additional sources of capital but there is substantial doubt as to whether any financing arrangement will be available in amounts and on terms acceptable to the Company to permit it to continue operations. The Company was unsuccessful in consummating the public offering of securities it had been pursuing in 2012. The accompanying condensed&#160;consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.</div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"><font size="2">&#160;</font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> As of November 30, 2012 the Company closed on a $2 million round of bridge financing and has approval from the majority of note holders in each tranche to raise an additional $1 million of debt.</div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"><font size="2">&#160;</font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> Between February 22, 2013 and April 1, 2013, the Company issued an aggregate of 4,180,000 shares of its common stock, par value $0.001 per share, at a per share price of $0.25, in a private placement to an aggregate of <font style=" FONT-SIZE: 10pt">19</font> accredited investors, including 450,000 shares issued to two affiliates of the Company, for gross cash proceeds to the Company of $1,045,000.</div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"><font size="2">&#160;</font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> Between May 2, 2013 and June 30, 2013, the Company issued an aggregate of <font style=" FONT-SIZE: 10pt">1,710,000</font> shares of its common stock, par value $<font style=" FONT-SIZE: 10pt">0.001</font> per share at a per share price of $<font style=" FONT-SIZE: 10pt">0.25</font>, in a private placement to an aggregate of <font style=" FONT-SIZE: 10pt">9</font> accredited investors for gross cash proceeds to the Company of $<font style=" FONT-SIZE: 10pt">427,500</font>.</div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"> &#160;</div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"><font style="TEXT-INDENT: 0.5in; MARGIN: 0in" size="2">The private placements were made pursuant to an exemption from registration afforded by Section 4(2) of the Securities Act of 1933, as amended (the &#8220;Securities Act&#8221;), and Regulation D thereunder, as the shares of common stock were issued to accredited investors, without a view to distribution, and not through any general solicitation or advertisement. The shares of common stock have not been, and will not be, registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.</font></div> </div>
us-gaap Use Of Estimates
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<div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> <strong>Use of Estimates</strong></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt"><font size="2">&#160;</font></div> <div style="clear:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;TEXT-ALIGN: justify; TEXT-INDENT: 0.5in; MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif"> The preparation of the condensed consolidated financial statements requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expense, and related disclosure of contingent assets and liabilities. On an ongoing basis, the Company evaluates its estimates, including those related to revenue recognition, doubtful accounts, intangible assets, income taxes, valuation of equity instruments, accrued liabilities, contingencies and litigation. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ materially from these estimates.</div> </div>
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us-gaap Debt Conversion Converted Instrument Shares Issued1
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CY2013Q2 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
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CY2012Q2 us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
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cnso Net Income Loss Available To Common Stockholders Basic From Continuing Operations
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cnso Net Income Loss Available To Common Stockholders Basic From Discontinuing Operations
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us-gaap Weighted Average Number Diluted Shares Outstanding Adjustment
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CY2013Q2 cnso Capital Leases Future Minimum Payments Due In Three To Five Years
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us-gaap Debt Conversion Converted Instrument Warrants Or Options Issued1
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713631 shares

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