2019 Q3 Form 10-Q Financial Statement

#000149523119000115 Filed on August 13, 2019

View on sec.gov

Income Statement

Concept 2019 Q3 2019 Q2 2018 Q2
Revenue $4.411M $3.924M $4.121M
YoY Change -23.7% -4.78% -40.96%
Cost Of Revenue $1.904M $1.818M $1.930M
YoY Change -20.57% -5.84% -28.89%
Gross Profit $2.507M $2.106M $2.191M
YoY Change -25.91% -3.86% -38.08%
Gross Profit Margin 56.83% 53.68% 53.16%
Selling, General & Admin $3.270M $3.595M $3.706M
YoY Change -23.49% -3.01% -8.55%
% of Gross Profit 130.46% 170.66% 169.18%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $433.1K $448.1K $210.7K
YoY Change 16.84% 112.68% -41.19%
% of Gross Profit 17.28% 21.28% 9.62%
Operating Expenses $5.608M $5.860M $5.847M
YoY Change -20.37% 0.22% -17.94%
Operating Profit -$1.197M -$1.936M -$1.726M
YoY Change -5.15% 12.18% 22.17%
Interest Expense $27.73K $86.74K $35.40K
YoY Change -69.34% 145.0% 166.75%
% of Operating Profit
Other Income/Expense, Net $23.55K -$55.94K $78.48K
YoY Change -133.02% -171.28% -333.26%
Pretax Income -$1.170M -$1.990M -$1.650M
YoY Change -12.03% 20.61% 13.79%
Income Tax
% Of Pretax Income
Net Earnings -$1.173M -$1.992M -$1.648M
YoY Change -11.99% 20.92% 13.91%
Net Earnings / Revenue -26.59% -50.78% -39.98%
Basic Earnings Per Share
Diluted Earnings Per Share -$36.09K -$89.32K -$282.5K
COMMON SHARES
Basic Shares Outstanding 34.51M shares 27.14M shares 5.845M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2019 Q3 2019 Q2 2018 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $6.810M $9.330M $1.880M
YoY Change 76.42% 396.28% -47.19%
Cash & Equivalents $6.809M $9.325M $1.878M
Short-Term Investments
Other Short-Term Assets $56.19K $130.6K $40.46K
YoY Change -33.39% 222.85% 40.89%
Inventory
Prepaid Expenses $623.0K $593.8K $626.2K
Receivables $4.498M $4.185M $2.821M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $11.99M $14.24M $5.366M
YoY Change 5.75% 165.27% -32.58%
LONG-TERM ASSETS
Property, Plant & Equipment $232.4K $176.5K $316.0K
YoY Change -24.87% -44.15% -12.1%
Goodwill $8.317M $8.317M $3.605M
YoY Change 0.0% 130.72% 0.0%
Intangibles $2.207M $2.504M $451.9K
YoY Change -36.46% 454.17% -61.14%
Long-Term Investments
YoY Change
Other Assets $140.0K $140.0K $150.0K
YoY Change -6.67% -6.67% -6.25%
Total Long-Term Assets $12.74M $13.13M $5.599M
YoY Change -5.5% 134.43% -12.04%
TOTAL ASSETS
Total Short-Term Assets $11.99M $14.24M $5.366M
Total Long-Term Assets $12.74M $13.13M $5.599M
Total Assets $24.73M $27.36M $10.97M
YoY Change -0.37% 149.52% -23.45%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.691M $1.739M $1.528M
YoY Change -40.27% 13.82% 3.56%
Accrued Expenses $1.439M $1.470M $1.112M
YoY Change -32.98% 32.21% -28.64%
Deferred Revenue $5.440M $5.834M $4.435M
YoY Change -3.39% 31.56%
Short-Term Debt $0.00 $280.0K $850.0K
YoY Change -100.0% -67.06%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $8.782M $13.43M $8.347M
YoY Change -48.06% 60.87% 15.86%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $0.00
YoY Change
Other Long-Term Liabilities $0.00 $0.00 $350.0K
YoY Change -100.0% -100.0% -62.77%
Total Long-Term Liabilities $0.00 $0.00 $350.0K
YoY Change -100.0% -100.0% -62.77%
TOTAL LIABILITIES
Total Short-Term Liabilities $8.782M $13.43M $8.347M
Total Long-Term Liabilities $0.00 $0.00 $350.0K
Total Liabilities $8.780M $13.43M $8.698M
YoY Change -48.2% 54.4% 6.82%
SHAREHOLDERS EQUITY
Retained Earnings -$58.09M -$56.92M -$51.07M
YoY Change 10.86% 11.45% 11.08%
Common Stock $3.451K $2.709K $586.00
YoY Change 185.92% 362.29% 2.99%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $15.95M $13.93M $2.267M
YoY Change
Total Liabilities & Shareholders Equity $24.73M $27.36M $10.97M
YoY Change -0.37% 149.52% -23.45%

Cashflow Statement

Concept 2019 Q3 2019 Q2 2018 Q2
OPERATING ACTIVITIES
Net Income -$1.173M -$1.992M -$1.648M
YoY Change -11.99% 20.92% 13.91%
Depreciation, Depletion And Amortization $433.1K $448.1K $210.7K
YoY Change 16.84% 112.68% -41.19%
Cash From Operating Activities -$2.120M -$1.050M -$860.0K
YoY Change -2.75% 22.09% 8.86%
INVESTING ACTIVITIES
Capital Expenditures -$160.0K -$120.0K -$140.0K
YoY Change -33.33% -14.29%
Acquisitions
YoY Change
Other Investing Activities $40.00K $0.00 $0.00
YoY Change 300.0% -100.0%
Cash From Investing Activities -$120.0K -$110.0K -$140.0K
YoY Change -50.0% -21.43% 600.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -280.0K 8.170M 120.0K
YoY Change -106.36% 6708.33% 1100.0%
NET CHANGE
Cash From Operating Activities -2.120M -1.050M -860.0K
Cash From Investing Activities -120.0K -110.0K -140.0K
Cash From Financing Activities -280.0K 8.170M 120.0K
Net Change In Cash -2.520M 7.010M -880.0K
YoY Change -227.27% -896.59% 10.0%
FREE CASH FLOW
Cash From Operating Activities -$2.120M -$1.050M -$860.0K
Capital Expenditures -$160.0K -$120.0K -$140.0K
Free Cash Flow -$1.960M -$930.0K -$720.0K
YoY Change 1.03% 29.17% -8.86%

Facts In Submission

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us-gaap Net Income Loss
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us-gaap New Accounting Pronouncement Or Change In Accounting Principle Effect Of Change On Net Income
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us-gaap Number Of Reporting Units
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us-gaap Operating Expenses
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us-gaap Payments To Acquire Property Plant And Equipment
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CY2018Q4 us-gaap Preferred Stock Shares Authorized
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us-gaap Proceeds From Issuance Of Shares Under Incentive And Share Based Compensation Plans Including Stock Options
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us-gaap Proceeds From Issuance Of Shares Under Incentive And Share Based Compensation Plans Including Stock Options
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us-gaap Proceeds From Repayments Of Lines Of Credit
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us-gaap Provision For Doubtful Accounts
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us-gaap Provision For Doubtful Accounts
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CY2018Q4 us-gaap Retained Earnings Accumulated Deficit
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CY2019Q2 us-gaap Retained Earnings Accumulated Deficit
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CY2018Q2 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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CY2019Q2 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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us-gaap Revenue From Contract With Customer Excluding Assessed Tax
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us-gaap Revenues
Revenues
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CY2019Q2 us-gaap Revenues
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us-gaap Revenues
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CY2018Q4 us-gaap Security Deposit
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CY2019Q2 us-gaap Security Deposit
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CY2018Q2 us-gaap Selling And Marketing Expense
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us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
3491122 USD
CY2019Q2 us-gaap Selling And Marketing Expense
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us-gaap Selling And Marketing Expense
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us-gaap Share Based Compensation
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349632 USD
us-gaap Share Based Compensation
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318205 USD
CY2019Q2 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value
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0 USD
us-gaap Stock Option Plan Expense
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us-gaap Stock Issued During Period Value Employee Stock Purchase Plan
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us-gaap Stock Issued During Period Value Acquisitions
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CY2018Q2 us-gaap Stock Issued During Period Value Employee Stock Purchase Plan
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3096 USD
us-gaap Stock Issued During Period Value Issued For Services
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125000 USD
CY2019Q2 us-gaap Stock Issued During Period Value Issued For Services
StockIssuedDuringPeriodValueIssuedForServices
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us-gaap Stock Issued During Period Value Issued For Services
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us-gaap Stock Option Plan Expense
StockOptionPlanExpense
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CY2019Q2 us-gaap Stock Option Plan Expense
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CY2017Q4 us-gaap Stockholders Equity
StockholdersEquity
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CY2018Q1 us-gaap Stockholders Equity
StockholdersEquity
3695839 USD
CY2018Q2 us-gaap Stockholders Equity
StockholdersEquity
2267314 USD
CY2018Q4 us-gaap Stockholders Equity
StockholdersEquity
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CY2019Q1 us-gaap Stockholders Equity
StockholdersEquity
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CY2019Q2 us-gaap Stockholders Equity
StockholdersEquity
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CY2018Q2 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
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5837476 shares
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
5819883 shares
CY2019Q2 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
22277677 shares
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
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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:8px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Concentrations of credit risk with respect to accounts receivable were typically limited because a large number of geographically diverse customers make up the Company&#8217;s customer base, thus spreading the trade credit risk. However, with the Company&#8217;s acquisition of TapInfluence, it has increased credit exposure on certain customers who carry significant credit balances related to their marketplace spend. The Company 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. </font></div><div style="line-height:120%;padding-top:8px;text-align:left;text-indent:48px;font-size:10pt;"><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;">26%</font><font style="font-family:inherit;font-size:10pt;"> of total accounts receivable at </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2019</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">two</font><font style="font-family:inherit;font-size:10pt;"> customers that together accounted for </font><font style="font-family:inherit;font-size:10pt;">36%</font><font style="font-family:inherit;font-size:10pt;"> at </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2018</font><font style="font-family:inherit;font-size:10pt;">. </font></div><div style="line-height:120%;padding-top:8px;text-align:left;text-indent:48px;font-size:10pt;"><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 more than </font><font style="font-family:inherit;font-size:10pt;">10%</font><font style="font-family:inherit;font-size:10pt;"> of its revenue during the three months ended </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2019</font><font style="font-family:inherit;font-size:10pt;"> and had </font><font style="font-family:inherit;font-size:10pt;">one</font><font style="font-family:inherit;font-size:10pt;"> customer that accounted for more than </font><font style="font-family:inherit;font-size:10pt;">10%</font><font style="font-family:inherit;font-size:10pt;"> of its revenue during the three months ended </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 2018</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 more than </font><font style="font-family:inherit;font-size:10pt;">10%</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, 2019</font><font style="font-family:inherit;font-size:10pt;"> and had </font><font style="font-family:inherit;font-size:10pt;">one</font><font style="font-family:inherit;font-size:10pt;"> customer that accounted for more than </font><font style="font-family:inherit;font-size:10pt;">10%</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, 2018</font><font style="font-family:inherit;font-size:10pt;">. </font></div></div>
us-gaap Derivatives Reporting Of Derivative Activity
DerivativesReportingOfDerivativeActivity
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">Derivative Financial Instruments</font></div><div style="line-height:120%;padding-top:8px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Derivative financial instruments are defined as financial instruments or other contracts that contain a notional amount and one or more underlying factors (e.g., interest rate, security price or other variable), require no initial net investment and permit net settlement. Derivative financial instruments may be free-standing or embedded in other financial instruments. Further, derivative financial instruments are initially, and subsequently, measured at fair value and recorded as liabilities or assets. The Company accounts for derivative instruments in accordance with ASC 815,&#160;Derivatives and Hedging&#160;(&#8220;ASC 815&#8221;), which requires additional disclosures about the Company&#8217;s objectives and strategies for using derivative instruments, how the derivative instruments and related hedged items are accounted for, and how the derivative instruments and related hedging items affect the financial statements. The Company does not use derivative instruments to hedge exposures to cash flow, market or foreign currency risk. Terms of equity instruments are reviewed to determine whether or not they contain embedded derivative instruments that are required under ASC 815 to be accounted for separately from the host contract, and recorded on the balance sheet at fair value. The fair value of derivative liabilities, if any, is required to be revalued at each reporting date, with corresponding changes in fair value recorded in current period operating results. Pursuant to ASC 815, an evaluation of specifically identified conditions is made to determine whether the fair value of warrants issued is required to be classified as equity or as a derivative liability.</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:left;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%;padding-top:8px;text-align:left;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 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:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"></font></div></div>

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