2017 Q4 Form 10-Q Financial Statement

#000149523117000102 Filed on November 07, 2017

View on sec.gov

Income Statement

Concept 2017 Q4 2017 Q3 2016 Q4
Revenue $3.100M $8.155M $1.360M
YoY Change 127.94% 8.77% -78.27%
Cost Of Revenue $1.190M $3.303M $30.00K
YoY Change 3866.67% -15.91% -99.16%
Gross Profit $1.910M $4.396M $1.330M
YoY Change 43.61% 23.15% -50.19%
Gross Profit Margin 61.61% 53.91% 97.79%
Selling, General & Admin $2.220M $4.045M $2.750M
YoY Change -19.27% -19.71% -44.89%
% of Gross Profit 116.23% 92.03% 206.77%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $430.0K $375.0K $370.0K
YoY Change 16.22% 13.63% 516.67%
% of Gross Profit 22.51% 8.53% 27.82%
Operating Expenses $2.640M $7.723M $3.120M
YoY Change -15.38% 53.27% -38.34%
Operating Profit -$730.0K -$633.2K -$1.790M
YoY Change -59.22% -56.9% -25.1%
Interest Expense -$20.00K $15.06K -$30.00K
YoY Change -33.33% -40.97% 50.0%
% of Operating Profit
Other Income/Expense, Net $0.00 $74.41K -$10.00K
YoY Change -100.0% -275.27%
Pretax Income -$740.0K -$560.0K -$1.830M
YoY Change -59.56% -62.91% -24.07%
Income Tax $0.00
% Of Pretax Income
Net Earnings -$740.0K -$558.8K -$1.830M
YoY Change -59.56% -63.03% -24.07%
Net Earnings / Revenue -23.87% -6.85% -134.56%
Basic Earnings Per Share
Diluted Earnings Per Share -$129.4K -$98.25K -$335.8K
COMMON SHARES
Basic Shares Outstanding 5.726M shares 5.706M shares 5.450M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2017 Q4 2017 Q3 2016 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $3.910M $3.450M $5.950M
YoY Change -34.29% -47.73% -48.75%
Cash & Equivalents $3.907M $3.448M $5.949M
Short-Term Investments
Other Short-Term Assets $9.140K $27.61K $11.94K
YoY Change -23.45% 89.86% -29.15%
Inventory
Prepaid Expenses $389.1K $414.6K $322.4K
Receivables $3.647M $5.253M $3.746M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $7.952M $9.144M $10.03M
YoY Change -20.71% -20.31% -36.27%
LONG-TERM ASSETS
Property, Plant & Equipment $286.0K $310.3K $460.7K
YoY Change -37.9% -41.72% -22.71%
Goodwill $3.605M $3.605M $3.605M
YoY Change 0.0% 0.0% 46.04%
Intangibles $667.9K $914.8K $1.663M
YoY Change -59.83% -52.17% -7.95%
Long-Term Investments
YoY Change
Other Assets $150.0K $160.0K $160.0K
YoY Change -6.25% 0.0% 33.33%
Total Long-Term Assets $5.675M $5.992M $6.994M
YoY Change -18.85% -16.77% 20.53%
TOTAL ASSETS
Total Short-Term Assets $7.952M $9.144M $10.03M
Total Long-Term Assets $5.675M $5.992M $6.994M
Total Assets $13.63M $15.14M $17.02M
YoY Change -19.95% -18.95% -20.97%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.757M $1.680M $1.438M
YoY Change 22.14% 33.47% 44.52%
Accrued Expenses $1.592M $1.889M $1.243M
YoY Change 28.12% 62.26% 36.8%
Deferred Revenue $3.071M
YoY Change
Short-Term Debt $500.0K $810.0K $0.00
YoY Change
Long-Term Debt Due $0.00 $0.00
YoY Change -100.0%
Total Short-Term Liabilities $7.707M $8.792M $7.284M
YoY Change 5.8% 20.51% 14.61%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $630.0K $510.0K $750.0K
YoY Change -16.0% -32.0% -25.0%
Total Long-Term Liabilities $630.0K $510.0K $750.0K
YoY Change -16.0% -32.0% -25.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $7.707M $8.792M $7.284M
Total Long-Term Liabilities $630.0K $510.0K $750.0K
Total Liabilities $8.334M $9.299M $8.035M
YoY Change 3.72% 15.51% 9.29%
SHAREHOLDERS EQUITY
Retained Earnings -$47.28M -$46.53M -$41.81M
YoY Change 13.08% 16.39% 22.07%
Common Stock $573.00 $571.00 $545.00
YoY Change 5.14% 4.77% 4.41%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $5.294M $5.837M $8.988M
YoY Change
Total Liabilities & Shareholders Equity $13.63M $15.14M $17.02M
YoY Change -19.95% -18.95% -20.97%

Cashflow Statement

Concept 2017 Q4 2017 Q3 2016 Q4
OPERATING ACTIVITIES
Net Income -$740.0K -$558.8K -$1.830M
YoY Change -59.56% -63.03% -24.07%
Depreciation, Depletion And Amortization $430.0K $375.0K $370.0K
YoY Change 16.22% 13.63% 516.67%
Cash From Operating Activities $860.0K -$650.0K -$500.0K
YoY Change -272.0% -28.57% -51.46%
INVESTING ACTIVITIES
Capital Expenditures -$110.0K $0.00 -$160.0K
YoY Change -31.25% -100.0% -67.35%
Acquisitions
YoY Change
Other Investing Activities $10.00K $0.00 $0.00
YoY Change -100.0% -100.0%
Cash From Investing Activities -$100.0K $0.00 -$170.0K
YoY Change -41.18% -100.0% -74.24%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -300.0K 540.0K 30.00K
YoY Change -1100.0% -5500.0% 0.0%
NET CHANGE
Cash From Operating Activities 860.0K -650.0K -500.0K
Cash From Investing Activities -100.0K 0.000 -170.0K
Cash From Financing Activities -300.0K 540.0K 30.00K
Net Change In Cash 460.0K -110.0K -640.0K
YoY Change -171.87% -92.31% -61.45%
FREE CASH FLOW
Cash From Operating Activities $860.0K -$650.0K -$500.0K
Capital Expenditures -$110.0K $0.00 -$160.0K
Free Cash Flow $970.0K -$650.0K -$340.0K
YoY Change -385.29% -10.96% -37.04%

Facts In Submission

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NetIncomeLoss
-558805 USD
us-gaap Net Income Loss
NetIncomeLoss
-4724623 USD
CY2016Q3 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-42454 USD
us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
22444 USD
CY2016Q3 us-gaap Operating Expenses
OperatingExpenses
5038842 USD
us-gaap Operating Expenses
OperatingExpenses
15115966 USD
CY2017Q3 us-gaap Operating Expenses
OperatingExpenses
5029268 USD
us-gaap Operating Expenses
OperatingExpenses
15688140 USD
CY2016Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
-1469149 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
-5686390 USD
CY2017Q3 us-gaap Operating Income Loss
OperatingIncomeLoss
-633215 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
-4747067 USD
CY2016Q3 us-gaap Other Asset Impairment Charges
OtherAssetImpairmentCharges
0 USD
us-gaap Other Asset Impairment Charges
OtherAssetImpairmentCharges
0 USD
CY2017Q3 us-gaap Other Asset Impairment Charges
OtherAssetImpairmentCharges
0 USD
us-gaap Other Asset Impairment Charges
OtherAssetImpairmentCharges
0 USD
CY2016Q4 us-gaap Other Assets Current
OtherAssetsCurrent
11940 USD
CY2017Q3 us-gaap Other Assets Current
OtherAssetsCurrent
27606 USD
CY2016Q3 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
-2238 USD
us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
-485 USD
CY2017Q3 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
44308 USD
us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
31728 USD
us-gaap Payment Of Financing And Stock Issuance Costs
PaymentOfFinancingAndStockIssuanceCosts
22493 USD
us-gaap Payment Of Financing And Stock Issuance Costs
PaymentOfFinancingAndStockIssuanceCosts
10913 USD
us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
329468 USD
us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
0 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
121651 USD
us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
7762 USD
us-gaap Payments To Develop Software
PaymentsToDevelopSoftware
304790 USD
us-gaap Payments To Develop Software
PaymentsToDevelopSoftware
85460 USD
CY2016Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.0001
CY2017Q3 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.0001
CY2017Q3 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.0001
CY2016Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
10000000 shares
CY2017Q3 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
10000000 shares
CY2017Q3 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
10000000 shares
CY2016Q4 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2017Q3 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2016Q4 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2017Q3 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2016Q4 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2017Q3 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2017Q3 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
310277 USD
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
155000 USD
CY2016Q4 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
322377 USD
CY2017Q3 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
414619 USD
us-gaap Proceeds From Issuance Of Shares Under Incentive And Share Based Compensation Plans Including Stock Options
ProceedsFromIssuanceOfSharesUnderIncentiveAndShareBasedCompensationPlansIncludingStockOptions
34587 USD
us-gaap Proceeds From Issuance Of Shares Under Incentive And Share Based Compensation Plans Including Stock Options
ProceedsFromIssuanceOfSharesUnderIncentiveAndShareBasedCompensationPlansIncludingStockOptions
16232 USD
us-gaap Proceeds From Lines Of Credit
ProceedsFromLinesOfCredit
0 USD
us-gaap Proceeds From Lines Of Credit
ProceedsFromLinesOfCredit
810376 USD
CY2016Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
460650 USD
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
44827 USD
us-gaap Repayments Of Notes Payable
RepaymentsOfNotesPayable
7291 USD
us-gaap Repayments Of Notes Payable
RepaymentsOfNotesPayable
0 USD
CY2016Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-41809721 USD
CY2017Q3 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-46534344 USD
CY2016Q3 us-gaap Sales Revenue Net
SalesRevenueNet
7496972 USD
us-gaap Sales Revenue Net
SalesRevenueNet
19876611 USD
CY2017Q3 us-gaap Sales Revenue Net
SalesRevenueNet
8154674 USD
us-gaap Sales Revenue Net
SalesRevenueNet
21337401 USD
CY2016Q4 us-gaap Security Deposit
SecurityDeposit
161736 USD
CY2017Q3 us-gaap Security Deposit
SecurityDeposit
157427 USD
CY2016Q3 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
2584287 USD
us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
7556664 USD
CY2017Q3 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
2342002 USD
us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
7666720 USD
us-gaap Share Based Compensation
ShareBasedCompensation
576144 USD
us-gaap Share Based Compensation
ShareBasedCompensation
509642 USD
CY2017Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
7.10
CY2017Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue
1354688 USD
CY2016Q4 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Intrinsic Value1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1
815179 USD
us-gaap Stock Issued During Period Value Acquisitions
StockIssuedDuringPeriodValueAcquisitions
928041 USD
us-gaap Stock Issued During Period Value Employee Stock Purchase Plan
StockIssuedDuringPeriodValueEmployeeStockPurchasePlan
16232 USD
us-gaap Stock Issued During Period Value Issued For Services
StockIssuedDuringPeriodValueIssuedForServices
130524 USD
CY2016Q4 us-gaap Stockholders Equity
StockholdersEquity
8987863 USD
CY2017Q3 us-gaap Stockholders Equity
StockholdersEquity
5836766 USD
CY2016Q1 us-gaap Stockholders Equity Reverse Stock Split
StockholdersEquityReverseStockSplit
ratio of one share for every 20 shares outstanding prior to the effective date of the reverse stock split. All current and historical information contained herein related to the share and per share information for the Company's common stock or stock equivalents reflects the 1-for-20 reverse stock split of the Company's outstanding shares of common stock that became market effective on January 11, 2016. There was no change in the number of the Company's authorized shares of common stock.
CY2016Q3 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
5420020 shares
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
5357119 shares
CY2017Q3 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
5702297 shares
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
5659423 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 costs 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;">September&#160;30, 2017</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">2016</font><font style="font-family:inherit;font-size:10pt;"> were approximately </font><font style="font-family:inherit;font-size:10pt;">$79,000</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$74,000</font><font style="font-family:inherit;font-size:10pt;">, respectively. Advertising costs charged to operations for the </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">nine 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;">September&#160;30, 2017</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">2016</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;">$248,000</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">$291,000</font><font style="font-family:inherit;font-size:10pt;">, respectively. Advertising costs are included in sales and marketing expense in the accompanying unaudited 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. The Company had </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 total accounts receivable at </font><font style="font-family:inherit;font-size:10pt;">September&#160;30, 2017</font><font style="font-family:inherit;font-size:10pt;"> and no 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 accounts receivable at </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2016</font><font style="font-family:inherit;font-size:10pt;">. The Company had </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;">11%</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;">September&#160;30, 2017</font><font style="font-family:inherit;font-size:10pt;"> and </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;">September&#160;30, 2016</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;">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;color:#000000;text-decoration:none;">nine months</font><font style="font-family:inherit;font-size:10pt;"> ended </font><font style="font-family:inherit;font-size:10pt;">September&#160;30, 2017</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;">11%</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;">nine months</font><font style="font-family:inherit;font-size:10pt;"> ended </font><font style="font-family:inherit;font-size:10pt;">September&#160;30, 2016</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 GAAP 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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