2019 Q4 Form 10-Q Financial Statement

#000149523119000169 Filed on November 14, 2019

View on sec.gov

Income Statement

Concept 2019 Q4 2019 Q3 2018 Q3
Revenue $5.830M $4.411M $5.781M
YoY Change -7.46% -23.7% -29.11%
Cost Of Revenue $2.700M $1.904M $2.397M
YoY Change 5.88% -20.57% -27.41%
Gross Profit $3.130M $2.507M $3.383M
YoY Change -16.53% -25.91% -23.03%
Gross Profit Margin 53.69% 56.83% 58.53%
Selling, General & Admin $5.020M $3.270M $4.274M
YoY Change 31.41% -23.49% 5.66%
% of Gross Profit 160.38% 130.46% 126.33%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $430.0K $433.1K $370.7K
YoY Change -4.44% 16.84% -1.14%
% of Gross Profit 13.74% 17.28% 10.96%
Operating Expenses $5.450M $5.608M $7.042M
YoY Change 27.63% -20.37% -8.81%
Operating Profit -$2.320M -$1.197M -$1.262M
YoY Change 346.15% -5.15% 99.22%
Interest Expense $10.00K $27.73K $90.45K
YoY Change -108.33% -69.34% 500.69%
% of Operating Profit
Other Income/Expense, Net $20.00K $23.55K -$71.32K
YoY Change -140.0% -133.02% -195.84%
Pretax Income -$2.290M -$1.170M -$1.330M
YoY Change 231.88% -12.03% 137.5%
Income Tax
% Of Pretax Income
Net Earnings -$2.290M -$1.173M -$1.333M
YoY Change 231.88% -11.99% 138.51%
Net Earnings / Revenue -39.28% -26.59% -23.06%
Basic Earnings Per Share
Diluted Earnings Per Share -$66.28K -$36.09K -$128.3K
COMMON SHARES
Basic Shares Outstanding 34.55M shares 34.51M shares 10.67M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2019 Q4 2019 Q3 2018 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $5.880M $6.810M $3.860M
YoY Change 198.48% 76.42% 11.88%
Cash & Equivalents $5.885M $6.809M $3.865M
Short-Term Investments
Other Short-Term Assets $153.0K $56.19K $84.36K
YoY Change 290.36% -33.39% 205.58%
Inventory
Prepaid Expenses $400.2K $623.0K $573.6K
Receivables $5.597M $4.498M $6.811M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $12.03M $11.99M $11.33M
YoY Change 25.26% 5.75% 23.95%
LONG-TERM ASSETS
Property, Plant & Equipment $309.8K $232.4K $309.4K
YoY Change 13.79% -24.87% -0.29%
Goodwill $8.317M $8.317M $8.317M
YoY Change 0.0% 0.0% 130.72%
Intangibles $1.612M $2.207M $3.473M
YoY Change -48.84% -36.46% 279.62%
Long-Term Investments
YoY Change
Other Assets $150.0K $140.0K $150.0K
YoY Change 7.14% -6.67% -6.25%
Total Long-Term Assets $11.91M $12.74M $13.49M
YoY Change -10.52% -5.5% 125.08%
TOTAL ASSETS
Total Short-Term Assets $12.03M $11.99M $11.33M
Total Long-Term Assets $11.91M $12.74M $13.49M
Total Assets $23.94M $24.73M $24.82M
YoY Change 4.48% -0.37% 63.99%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $2.253M $1.691M $2.832M
YoY Change -13.96% -40.27% 68.51%
Accrued Expenses $1.378M $1.439M $2.147M
YoY Change -30.02% -32.98% 13.65%
Deferred Revenue $6.467M $5.440M $5.631M
YoY Change 30.43% -3.39%
Short-Term Debt $0.00 $0.00 $1.730M
YoY Change -100.0% -100.0% 113.58%
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $10.18M $8.782M $16.91M
YoY Change -35.15% -48.06% 92.31%
LONG-TERM LIABILITIES
Long-Term Debt $50.00K $0.00 $0.00
YoY Change
Other Long-Term Liabilities $0.00 $0.00 $40.00K
YoY Change -100.0% -92.16%
Total Long-Term Liabilities $50.00K $0.00 $40.00K
YoY Change -100.0% -92.16%
TOTAL LIABILITIES
Total Short-Term Liabilities $10.18M $8.782M $16.91M
Total Long-Term Liabilities $50.00K $0.00 $40.00K
Total Liabilities $10.23M $8.780M $16.95M
YoY Change -34.86% -48.2% 82.29%
SHAREHOLDERS EQUITY
Retained Earnings -$60.00M -$58.09M -$52.40M
YoY Change 13.01% 10.86% 12.61%
Common Stock $3.464K $3.451K $1.207K
YoY Change 186.75% 185.92% 111.38%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $14.12M $15.95M $7.870M
YoY Change
Total Liabilities & Shareholders Equity $23.94M $24.73M $24.82M
YoY Change 4.48% -0.37% 63.99%

Cashflow Statement

Concept 2019 Q4 2019 Q3 2018 Q3
OPERATING ACTIVITIES
Net Income -$2.290M -$1.173M -$1.333M
YoY Change 231.88% -11.99% 138.51%
Depreciation, Depletion And Amortization $430.0K $433.1K $370.7K
YoY Change -4.44% 16.84% -1.14%
Cash From Operating Activities -$630.0K -$2.120M -$2.180M
YoY Change -55.63% -2.75% 235.38%
INVESTING ACTIVITIES
Capital Expenditures -$100.0K -$160.0K -$240.0K
YoY Change -65.52% -33.33%
Acquisitions
YoY Change
Other Investing Activities $10.00K $40.00K $10.00K
YoY Change 0.0% 300.0%
Cash From Investing Activities -$100.0K -$120.0K -$240.0K
YoY Change -62.96% -50.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -190.0K -280.0K 4.400M
YoY Change -5.0% -106.36% 714.81%
NET CHANGE
Cash From Operating Activities -630.0K -2.120M -2.180M
Cash From Investing Activities -100.0K -120.0K -240.0K
Cash From Financing Activities -190.0K -280.0K 4.400M
Net Change In Cash -920.0K -2.520M 1.980M
YoY Change -51.32% -227.27% -1900.0%
FREE CASH FLOW
Cash From Operating Activities -$630.0K -$2.120M -$2.180M
Capital Expenditures -$100.0K -$160.0K -$240.0K
Free Cash Flow -$530.0K -$1.960M -$1.940M
YoY Change -53.1% 1.03% 198.46%

Facts In Submission

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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 Revenues
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us-gaap Revenues
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us-gaap Selling And Marketing Expense
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CY2019Q3 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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us-gaap Share Based Compensation
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CY2019Q3 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Vested And Expected To Vest Exercisable Weighted Average Exercise Price
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us-gaap Stock Issued During Period Shares Employee Stock Purchase Plans
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3500000 USD
CY2019Q3 us-gaap Stock Repurchase Program Expiration Date
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2020-12-31
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CY2018Q3 us-gaap Stockholders Equity
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CY2019Q3 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;">four</font><font style="font-family:inherit;font-size:10pt;"> customers that accounted for </font><font style="font-family:inherit;font-size:10pt;">32%</font><font style="font-family:inherit;font-size:10pt;"> of total gross accounts receivable at </font><font style="font-family:inherit;font-size:10pt;">September&#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 accounted for </font><font style="font-family:inherit;font-size:10pt;">36%</font><font style="font-family:inherit;font-size:10pt;"> of total gross accounts receivable 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 </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 three months ended </font><font style="font-family:inherit;font-size:10pt;">September&#160;30, 2019</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">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 </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;">nine months</font><font style="font-family:inherit;font-size:10pt;"> ended </font><font style="font-family:inherit;font-size:10pt;">September&#160;30, 2019</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">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
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<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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