2018 Q2 Form 10-Q Financial Statement

#000149523118000044 Filed on May 21, 2018

View on sec.gov

Income Statement

Concept 2018 Q2 2018 Q1 2017 Q1
Revenue $4.121M $3.896M $4.835M
YoY Change -40.96% -19.4% -11.55%
Cost Of Revenue $1.930M $2.163M $2.337M
YoY Change -28.89% -7.44% -24.64%
Gross Profit $2.191M $1.733M $3.007M
YoY Change -38.08% -42.36% 27.17%
Gross Profit Margin 53.16% 44.48% 62.2%
Selling, General & Admin $3.706M $3.371M $4.836M
YoY Change -8.55% -30.3% -2.1%
% of Gross Profit 169.18% 194.47% 160.82%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $210.7K $265.5K $362.6K
YoY Change -41.19% -26.79% 20.87%
% of Gross Profit 9.62% 15.32% 12.06%
Operating Expenses $5.847M $5.799M $7.535M
YoY Change -17.94% -23.04% 52.55%
Operating Profit -$1.726M -$1.903M -$2.701M
YoY Change 22.17% -29.55% 4.89%
Interest Expense $35.40K $21.31K $17.08K
YoY Change 166.75% 24.8% -19.98%
% of Operating Profit
Other Income/Expense, Net $78.48K -$142.2K -$18.32K
YoY Change -333.26% 676.25% 4.47%
Pretax Income -$1.650M -$2.050M -$2.720M
YoY Change 13.79% -24.63% 5.02%
Income Tax
% Of Pretax Income
Net Earnings -$1.648M -$2.045M -$2.719M
YoY Change 13.91% -24.79% 4.88%
Net Earnings / Revenue -39.98% -52.49% -56.25%
Basic Earnings Per Share
Diluted Earnings Per Share -$282.5K -$353.4K -$485.7K
COMMON SHARES
Basic Shares Outstanding 5.845M shares 5.671M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2018 Q2 2018 Q1 2017 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.880M $2.760M $4.360M
YoY Change -47.19% -36.7% -56.66%
Cash & Equivalents $1.878M $2.760M $4.355M
Short-Term Investments
Other Short-Term Assets $40.46K $39.29K $10.60K
YoY Change 40.89% 270.69% -73.52%
Inventory
Prepaid Expenses $626.2K $672.3K $298.4K
Receivables $2.821M $3.739M $4.455M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $5.366M $6.760M $9.119M
YoY Change -32.58% -25.86% -33.01%
LONG-TERM ASSETS
Property, Plant & Equipment $316.0K $369.3K $409.0K
YoY Change -12.1% -9.69% -29.75%
Goodwill $3.605M $3.605M $3.605M
YoY Change 0.0% 0.0% 46.04%
Intangibles $451.9K $532.1K $1.413M
YoY Change -61.14% -62.33% -12.28%
Long-Term Investments
YoY Change
Other Assets $150.0K $150.0K $140.0K
YoY Change -6.25% 7.14% 16.67%
Total Long-Term Assets $5.599M $5.668M $6.701M
YoY Change -12.04% -15.41% 18.94%
TOTAL ASSETS
Total Short-Term Assets $5.366M $6.760M $9.119M
Total Long-Term Assets $5.599M $5.668M $6.701M
Total Assets $10.97M $12.43M $15.82M
YoY Change -23.45% -21.44% -17.8%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.528M $1.261M $1.578M
YoY Change 3.56% -20.14% 49.5%
Accrued Expenses $1.112M $1.711M $1.854M
YoY Change -28.64% -7.71% 65.74%
Deferred Revenue $4.435M $3.262M
YoY Change
Short-Term Debt $850.0K $730.0K $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $8.347M $8.295M $7.599M
YoY Change 15.86% 9.16% 17.24%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $350.0K $440.0K $810.0K
YoY Change -62.77% -45.68% 800.0%
Total Long-Term Liabilities $350.0K $440.0K $810.0K
YoY Change -62.77% -45.68% 800.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $8.347M $8.295M $7.599M
Total Long-Term Liabilities $350.0K $440.0K $810.0K
Total Liabilities $8.698M $8.733M $8.405M
YoY Change 6.82% 3.91% 27.93%
SHAREHOLDERS EQUITY
Retained Earnings -$51.07M -$49.42M -$44.53M
YoY Change 11.08% 10.99% 20.86%
Common Stock $586.00 $582.00 $567.00
YoY Change 2.99% 2.65% 6.18%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $2.267M $3.696M $7.415M
YoY Change
Total Liabilities & Shareholders Equity $10.97M $12.43M $15.82M
YoY Change -23.45% -21.44% -17.8%

Cashflow Statement

Concept 2018 Q2 2018 Q1 2017 Q1
OPERATING ACTIVITIES
Net Income -$1.648M -$2.045M -$2.719M
YoY Change 13.91% -24.79% 4.88%
Depreciation, Depletion And Amortization $210.7K $265.5K $362.6K
YoY Change -41.19% -26.79% 20.87%
Cash From Operating Activities -$860.0K -$1.117M -$1.524M
YoY Change 8.86% -26.69% 8.47%
INVESTING ACTIVITIES
Capital Expenditures -$140.0K $140.2K $5.248K
YoY Change 2571.36% -88.78%
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00 $20.00K
YoY Change -100.0% -100.0%
Cash From Investing Activities -$140.0K -$259.2K -$67.85K
YoY Change 600.0% 282.08% -46.94%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 120.0K $230.0K -$1.926K
YoY Change 1100.0% -12042.52% -82.35%
NET CHANGE
Cash From Operating Activities -860.0K -$1.117M -$1.524M
Cash From Investing Activities -140.0K -$259.2K -$67.85K
Cash From Financing Activities 120.0K $230.0K -$1.926K
Net Change In Cash -880.0K -$1.147M -$1.594M
YoY Change 10.0% -28.07% 3.23%
FREE CASH FLOW
Cash From Operating Activities -$860.0K -$1.117M -$1.524M
Capital Expenditures -$140.0K $140.2K $5.248K
Free Cash Flow -$720.0K -$1.257M -$1.529M
YoY Change -8.86% -17.78% 5.33%

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-98822 USD
CY2017Q1 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-18321 USD
CY2018Q1 us-gaap Nonoperating Income Expense
NonoperatingIncomeExpense
-142216 USD
CY2018Q1 us-gaap Number Of Reporting Units
NumberOfReportingUnits
1 operating_units
CY2017Q1 us-gaap Operating Expenses
OperatingExpenses
7535404 USD
CY2018Q1 us-gaap Operating Expenses
OperatingExpenses
5799345 USD
CY2017Q1 us-gaap Operating Income Loss
OperatingIncomeLoss
-2700899 USD
CY2018Q1 us-gaap Operating Income Loss
OperatingIncomeLoss
-1902904 USD
CY2015 us-gaap Other Asset Impairment Charges
OtherAssetImpairmentCharges
0 USD
CY2016 us-gaap Other Asset Impairment Charges
OtherAssetImpairmentCharges
0 USD
CY2018Q1 us-gaap Other Asset Impairment Charges
OtherAssetImpairmentCharges
0 USD
CY2017Q4 us-gaap Other Assets Current
OtherAssetsCurrent
9140 USD
CY2018Q1 us-gaap Other Assets Current
OtherAssetsCurrent
39286 USD
CY2017Q1 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
-627 USD
CY2018Q1 us-gaap Other Nonoperating Income Expense
OtherNonoperatingIncomeExpense
4690 USD
CY2017Q1 us-gaap Payment Of Financing And Stock Issuance Costs
PaymentOfFinancingAndStockIssuanceCosts
1926 USD
CY2018Q1 us-gaap Payment Of Financing And Stock Issuance Costs
PaymentOfFinancingAndStockIssuanceCosts
616 USD
CY2017Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
5248 USD
CY2017Q1 us-gaap Payments To Develop Software
PaymentsToDevelopSoftware
82355 USD
CY2018Q1 us-gaap Payments To Develop Software
PaymentsToDevelopSoftware
119352 USD
CY2017Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.0001
CY2018Q1 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.0001
CY2018Q1 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.0001
CY2017Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
10000000 shares
CY2018Q1 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
10000000 shares
CY2018Q1 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
10000000 shares
CY2017Q4 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2018Q1 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
0 shares
CY2017Q4 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2018Q1 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
0 shares
CY2017Q4 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2018Q1 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2017Q4 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
389104 USD
CY2018Q1 us-gaap Prepaid Expense Current
PrepaidExpenseCurrent
672273 USD
CY2017Q1 us-gaap Proceeds From Lines Of Credit
ProceedsFromLinesOfCredit
0 USD
CY2018Q1 us-gaap Proceeds From Lines Of Credit
ProceedsFromLinesOfCredit
230629 USD
CY2017Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
286043 USD
CY2018Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
369345 USD
CY2017Q1 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
8333 USD
CY2018Q1 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
0 USD
CY2017Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-47277420 USD
CY2018Q1 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-49421362 USD
CY2018Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
3896441 USD
CY2017Q1 us-gaap Sales Revenue Net
SalesRevenueNet
4834505 USD
CY2018Q1 us-gaap Sales Revenue Net
SalesRevenueNet
3896441 USD
CY2017Q4 us-gaap Security Deposit
SecurityDeposit
148638 USD
CY2018Q1 us-gaap Security Deposit
SecurityDeposit
148330 USD
CY2017Q1 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
2388820 USD
CY2018Q1 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
1755526 USD
CY2017Q1 us-gaap Share Based Compensation
ShareBasedCompensation
158976 USD
CY2018Q1 us-gaap Share Based Compensation
ShareBasedCompensation
146281 USD
CY2018Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingIntrinsicValue
89540 USD
CY2018Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Options Exercisable Intrinsic Value1
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableIntrinsicValue1
13393 USD
CY2017Q1 us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
0 shares
CY2018Q1 us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
0 shares
CY2018Q1 us-gaap Stock Issued During Period Value Issued For Services
StockIssuedDuringPeriodValueIssuedForServices
125000 USD
CY2017Q4 us-gaap Stockholders Equity
StockholdersEquity
5293585 USD
CY2018Q1 us-gaap Stockholders Equity
StockholdersEquity
3695839 USD
CY2017Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
5598200 shares
CY2018Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
5802099 shares
CY2018Q1 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;color:#000000;text-decoration:none;">three months</font><font style="font-family:inherit;font-size:10pt;"> ended </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2018</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">2017</font><font style="font-family:inherit;font-size:10pt;"> were approximately </font><font style="font-family:inherit;font-size:10pt;">$102,000</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">$82,000</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>
CY2018Q1 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;">two</font><font style="font-family:inherit;font-size:10pt;"> customers that accounted for </font><font style="font-family:inherit;font-size:10pt;">24%</font><font style="font-family:inherit;font-size:10pt;"> of total accounts receivable at </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2018</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;"> customer 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 total accounts receivable at </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2017</font><font style="font-family:inherit;font-size:10pt;">. The Company had </font><font style="font-family:inherit;font-size:10pt;">no</font><font style="font-family:inherit;font-size:10pt;"> customer 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;">three months</font><font style="font-family:inherit;font-size:10pt;"> ended </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2018</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;">15%</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;">three months</font><font style="font-family:inherit;font-size:10pt;"> ended </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2017</font></div></div>
CY2018Q1 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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