2016 Q3 Form 10-Q Financial Statement

#000149523116000133 Filed on August 11, 2016

View on sec.gov

Income Statement

Concept 2016 Q3 2016 Q2 2015 Q2
Revenue $7.497M $6.914M $4.628M
YoY Change 37.75% 49.4% 135.0%
Cost Of Revenue $3.927M $3.418M $2.917M
YoY Change 19.35% 17.17% 344.28%
Gross Profit $3.570M $3.495M $1.710M
YoY Change 65.88% 104.36% 30.31%
Gross Profit Margin 47.62% 50.56% 36.96%
Selling, General & Admin $5.039M $5.137M $3.911M
YoY Change 65.83% 31.36% 55.21%
% of Gross Profit 141.16% 146.98% 228.66%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $330.0K $300.0K $220.0K
YoY Change 43.48% 36.36% 1000.0%
% of Gross Profit 9.24% 8.58% 12.86%
Operating Expenses $5.039M $5.137M $3.911M
YoY Change 65.83% 31.36% 55.21%
Operating Profit -$1.469M -$1.642M -$2.201M
YoY Change 65.71% -25.38% 82.28%
Interest Expense $25.51K $11.41K $36.39K
YoY Change -18.21% -68.65% 501.44%
% of Operating Profit
Other Income/Expense, Net -$42.45K $15.81K $215.3K
YoY Change -97.59% -92.65% -93.35%
Pretax Income -$1.510M -$1.630M -$1.990M
YoY Change -43.02% -18.09% -198.03%
Income Tax $0.00
% Of Pretax Income
Net Earnings -$1.512M -$1.626M -$1.985M
YoY Change -42.85% -18.08% -197.84%
Net Earnings / Revenue -20.16% -23.52% -42.9%
Basic Earnings Per Share -$0.03
Diluted Earnings Per Share -$278.6K -$304.7K -$0.03
COMMON SHARES
Basic Shares Outstanding 5.450M shares 5.342M shares 57.71M shares
Diluted Shares Outstanding 57.71M shares

Balance Sheet

Concept 2016 Q3 2016 Q2 2015 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $6.600M $8.020M $2.530M
YoY Change -50.26% 217.0% -74.05%
Cash & Equivalents $6.599M $8.016M $2.526M
Short-Term Investments
Other Short-Term Assets $14.54K $1.068K $21.41K
YoY Change 9.18% -95.01% -69.56%
Inventory
Prepaid Expenses $287.6K $431.0K $530.2K
Receivables $4.573M $4.668M $3.305M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $11.47M $13.12M $6.383M
YoY Change -32.82% 105.49% -43.83%
LONG-TERM ASSETS
Property, Plant & Equipment $532.4K $570.8K $592.9K
YoY Change -10.61% -3.72% 143.63%
Goodwill $3.605M $2.468M $2.844M
YoY Change 46.04% -13.21%
Intangibles $1.912M $1.420M $2.123M
YoY Change -3.15% -33.09%
Long-Term Investments
YoY Change
Other Assets $160.0K $150.0K $120.0K
YoY Change 33.33% 25.0% 140.0%
Total Long-Term Assets $7.200M $5.492M $6.110M
YoY Change 29.23% -10.12% 647.67%
TOTAL ASSETS
Total Short-Term Assets $11.47M $13.12M $6.383M
Total Long-Term Assets $7.200M $5.492M $6.110M
Total Assets $18.67M $18.61M $12.49M
YoY Change -17.56% 48.95% 2.57%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.259M $1.239M $1.063M
YoY Change 33.79% 16.53% 47.87%
Accrued Expenses $1.164M $1.224M $577.4K
YoY Change 1.1% 112.05% 26.2%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $0.00 $0.00 $30.00K
YoY Change -100.0% -100.0% -50.0%
Total Short-Term Liabilities $7.296M $7.163M $5.430M
YoY Change 37.37% 31.91% 132.49%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change -100.0%
Other Long-Term Liabilities $750.0K $80.00K $8.650M
YoY Change -31.82% -99.08% -20.71%
Total Long-Term Liabilities $750.0K $80.00K $8.650M
YoY Change -31.82% -99.08% -20.93%
TOTAL LIABILITIES
Total Short-Term Liabilities $7.296M $7.163M $5.430M
Total Long-Term Liabilities $750.0K $80.00K $8.650M
Total Liabilities $8.050M $7.243M $14.08M
YoY Change 25.65% -48.54% 6.0%
SHAREHOLDERS EQUITY
Retained Earnings -$39.98M -$38.47M -$29.20M
YoY Change 25.56% 31.75% 18.37%
Common Stock $545.00 $536.00 $5.785K
YoY Change -94.76% -90.73% 1.4%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $10.62M $11.36M -$1.584M
YoY Change
Total Liabilities & Shareholders Equity $18.67M $18.61M $12.49M
YoY Change -17.56% 48.95% 2.57%

Cashflow Statement

Concept 2016 Q3 2016 Q2 2015 Q2
OPERATING ACTIVITIES
Net Income -$1.512M -$1.626M -$1.985M
YoY Change -42.85% -18.08% -197.84%
Depreciation, Depletion And Amortization $330.0K $300.0K $220.0K
YoY Change 43.48% 36.36% 1000.0%
Cash From Operating Activities -$910.0K -$1.900M -$1.480M
YoY Change -55.17% 28.38% 8.03%
INVESTING ACTIVITIES
Capital Expenditures -$180.0K -$120.0K -$40.00K
YoY Change 125.0% 200.0% -42.86%
Acquisitions
YoY Change
Other Investing Activities -$340.0K -$30.00K $90.00K
YoY Change -133.33% -1000.0%
Cash From Investing Activities -$510.0K -$160.0K $40.00K
YoY Change 628.57% -500.0% -150.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -10.00K 20.00K 10.00K
YoY Change -100.08% 100.0% -120.0%
NET CHANGE
Cash From Operating Activities -910.0K -1.900M -1.480M
Cash From Investing Activities -510.0K -160.0K 40.00K
Cash From Financing Activities -10.00K 20.00K 10.00K
Net Change In Cash -1.430M -2.040M -1.430M
YoY Change -113.31% 42.66% -4.67%
FREE CASH FLOW
Cash From Operating Activities -$910.0K -$1.900M -$1.480M
Capital Expenditures -$180.0K -$120.0K -$40.00K
Free Cash Flow -$730.0K -$1.780M -$1.440M
YoY Change -62.56% 23.61% 10.77%

Facts In Submission

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CY2016Q2 us-gaap Interest Expense
InterestExpense
11411 USD
us-gaap Interest Expense
InterestExpense
32750 USD
us-gaap Issuance Of Stock And Warrants For Services Or Claims
IssuanceOfStockAndWarrantsForServicesOrClaims
72470 USD
us-gaap Interest Paid
InterestPaid
47045 USD
us-gaap Interest Paid
InterestPaid
4578 USD
CY2015Q4 us-gaap Liabilities
Liabilities
7352010 USD
CY2016Q2 us-gaap Liabilities
Liabilities
7243037 USD
CY2015Q4 us-gaap Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
21539051 USD
CY2016Q2 us-gaap Liabilities And Stockholders Equity
LiabilitiesAndStockholdersEquity
18607930 USD
CY2015Q4 us-gaap Liabilities Current
LiabilitiesCurrent
6355205 USD
CY2016Q2 us-gaap Liabilities Current
LiabilitiesCurrent
7163402 USD
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
-4 USD
us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
5575 USD
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-983282 USD
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-285044 USD
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-3012835 USD
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
-3313299 USD
CY2015Q2 us-gaap Net Income Loss
NetIncomeLoss
-1985291 USD
us-gaap Net Income Loss
NetIncomeLoss
-6256203 USD
CY2016Q2 us-gaap Net Income Loss
NetIncomeLoss
-1626345 USD
us-gaap Net Income Loss
NetIncomeLoss
-4218965 USD
CY2015Q2 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
215256 USD
us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-2307658 USD
CY2016Q2 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
15813 USD
us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-1724 USD
CY2015Q2 us-gaap Operating Expenses
OperatingExpenses
3910929 USD
us-gaap Operating Expenses
OperatingExpenses
7352930 USD
CY2016Q2 us-gaap Operating Expenses
OperatingExpenses
5137460 USD
us-gaap Operating Expenses
OperatingExpenses
10077124 USD
CY2015Q2 us-gaap Operating Income Loss
OperatingIncomeLoss
-2200547 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
-3948545 USD
CY2016Q2 us-gaap Operating Income Loss
OperatingIncomeLoss
-1642158 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
-4217241 USD
CY2015Q4 us-gaap Other Assets Current
OtherAssetsCurrent
16853 USD
CY2016Q2 us-gaap Other Assets Current
OtherAssetsCurrent
1068 USD
CY2015Q2 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
1142 USD
us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
2949 USD
CY2016Q2 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
803 USD
us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
1753 USD
us-gaap Payment Of Financing And Stock Issuance Costs
PaymentOfFinancingAndStockIssuanceCosts
0 USD
us-gaap Payment Of Financing And Stock Issuance Costs
PaymentOfFinancingAndStockIssuanceCosts
21721 USD
CY2015Q1 us-gaap Payments To Acquire Businesses Gross
PaymentsToAcquireBusinessesGross
1200000 USD
us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
905586 USD
us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
0 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
73296 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
100060 USD
us-gaap Payments To Develop Software
PaymentsToDevelopSoftware
0 USD
us-gaap Payments To Develop Software
PaymentsToDevelopSoftware
153084 USD
CY2016Q2 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.0001
CY2016Q2 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
10000000 shares
CY2015Q4 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
193455 USD
CY2016Q2 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
430978 USD
CY2015Q1 us-gaap Proceeds From Issuance Of Warrants
ProceedsFromIssuanceOfWarrants
100 USD
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
29865 USD
us-gaap Proceeds From Stock Options Exercised
ProceedsFromStockOptionsExercised
34587 USD
CY2015Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
596008 USD
CY2016Q2 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
570836 USD
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
0 USD
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
105000 USD
us-gaap Repayments Of Notes Payable
RepaymentsOfNotesPayable
29869 USD
us-gaap Repayments Of Notes Payable
RepaymentsOfNotesPayable
7291 USD
CY2015Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-34249521 USD
CY2016Q2 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-38468486 USD
CY2015Q2 us-gaap Sales Revenue Net
SalesRevenueNet
4627742 USD
us-gaap Sales Revenue Net
SalesRevenueNet
8763236 USD
CY2016Q2 us-gaap Sales Revenue Net
SalesRevenueNet
6913689 USD
us-gaap Sales Revenue Net
SalesRevenueNet
12379639 USD
CY2015Q4 us-gaap Security Deposit
SecurityDeposit
117946 USD
CY2016Q2 us-gaap Security Deposit
SecurityDeposit
149846 USD
CY2015Q2 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
1746549 USD
us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
3328036 USD
CY2016Q2 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
2612714 USD
us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
4972377 USD
us-gaap Share Based Compensation
ShareBasedCompensation
322744 USD
us-gaap Share Based Compensation
ShareBasedCompensation
405326 USD
CY2016Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
7.62
CY2016Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue
1149482 USD
CY2016Q2 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Intrinsic Value1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1
784073 USD
us-gaap Stock Issued During Period Shares Employee Stock Purchase Plans
StockIssuedDuringPeriodSharesEmployeeStockPurchasePlans
5340 shares
CY2016Q2 us-gaap Stock Issued During Period Shares Restricted Stock Award Gross
StockIssuedDuringPeriodSharesRestrictedStockAwardGross
749 shares
us-gaap Stock Issued During Period Value Acquisitions
StockIssuedDuringPeriodValueAcquisitions
848832 USD
us-gaap Stock Issued During Period Value Employee Stock Purchase Plan
StockIssuedDuringPeriodValueEmployeeStockPurchasePlan
34587 USD
us-gaap Stock Issued During Period Value Issued For Services
StockIssuedDuringPeriodValueIssuedForServices
129794 USD
CY2016Q2 us-gaap Stock Issued During Period Value Restricted Stock Award Gross
StockIssuedDuringPeriodValueRestrictedStockAwardGross
4794 USD
CY2015Q4 us-gaap Stockholders Equity
StockholdersEquity
14187041 USD
CY2016Q2 us-gaap Stockholders Equity
StockholdersEquity
11364893 USD
CY2015Q2 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
2885721 shares
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
2885305 shares
CY2016Q2 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
5350128 shares
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
5320962 shares
us-gaap Advertising Cost Policy Expensed Advertising Cost
AdvertisingCostPolicyExpensedAdvertisingCost
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">Advertising Costs</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Advertising costs are charged to expense as they are incurred, including payments to content creators to promote the Company. Advertising expense charged to operations for the </font><font style="font-family:inherit;font-size:10pt;">three months</font><font style="font-family:inherit;font-size:10pt;"> ended </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2016</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">2015</font><font style="font-family:inherit;font-size:10pt;"> were approximately </font><font style="font-family:inherit;font-size:10pt;">$106,000</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$94,000</font><font style="font-family:inherit;font-size:10pt;">, respectively. Advertising expense charged to operations for the </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">six months</font><font style="font-family:inherit;font-size:10pt;"> ended </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">June&#160;30, 2016</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">2015</font><font style="font-family:inherit;font-size:10pt;"> were approximately </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">$217,000</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">$212,000</font><font style="font-family:inherit;font-size:10pt;">, respectively. Advertising costs are included in sales and marketing expense in the accompanying consolidated statements of operations.</font></div></div>
us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Concentrations of credit risk with respect to accounts receivable are typically limited because a large number of geographically diverse customers make up the Company&#8217;s customer base, thus spreading the trade credit risk. The Company also controls credit risk through credit approvals, credit limits and monitoring procedures. The Company performs credit evaluations of its customers but generally does not require collateral to support accounts receivable. At </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">June&#160;30, 2016</font><font style="font-family:inherit;font-size:10pt;">, the Company had </font><font style="font-family:Times New Roman;font-size:10pt;color:#000000;text-decoration:none;">no</font><font style="font-family:inherit;font-size:10pt;"> customers which accounted for </font><font style="font-family:inherit;font-size:10pt;">more than 10%</font><font style="font-family:inherit;font-size:10pt;"> of total accounts receivable in the aggregate. At </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2015</font><font style="font-family:inherit;font-size:10pt;">, the Company had </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">one</font><font style="font-family:inherit;font-size:10pt;"> customer which accounted for </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">13%</font><font style="font-family:inherit;font-size:10pt;"> of total accounts receivable in the aggregate. The Company had </font><font style="font-family:inherit;font-size:10pt;">no</font><font style="font-family:inherit;font-size:10pt;"> customers that accounted for </font><font style="font-family:inherit;font-size:10pt;">more than 10%</font><font style="font-family:inherit;font-size:10pt;"> of its revenue during the </font><font style="font-family:inherit;font-size:10pt;">three months</font><font style="font-family:inherit;font-size:10pt;"> ended </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2016</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">one</font><font style="font-family:inherit;font-size:10pt;"> customer that accounted for </font><font style="font-family:inherit;font-size:10pt;">17%</font><font style="font-family:inherit;font-size:10pt;"> of its revenue during the </font><font style="font-family:inherit;font-size:10pt;">three months</font><font style="font-family:inherit;font-size:10pt;"> ended </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2015</font><font style="font-family:inherit;font-size:10pt;">. The Company had </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">one</font><font style="font-family:inherit;font-size:10pt;"> customer that accounted for </font><font style="font-family:inherit;font-size:10pt;">11%</font><font style="font-family:inherit;font-size:10pt;"> of its revenue during the </font><font style="font-family:inherit;font-size:10pt;">six months</font><font style="font-family:inherit;font-size:10pt;"> ended </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2016</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">one</font><font style="font-family:inherit;font-size:10pt;"> customer that accounted for </font><font style="font-family:inherit;font-size:10pt;">14%</font><font style="font-family:inherit;font-size:10pt;"> of its revenue during the </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">six months</font><font style="font-family:inherit;font-size:10pt;"> ended </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">June&#160;30, 2015</font><font style="font-family:inherit;font-size:10pt;">.</font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">Use of Estimates</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"></font></div></div>

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