2015 Q2 Form 10-Q Financial Statement

#000074621015000077 Filed on May 06, 2015

View on sec.gov

Income Statement

Concept 2015 Q2 2015 Q1 2014 Q1
Revenue $6.528M $7.163M $7.981M
YoY Change -22.91% -10.25% -6.15%
Cost Of Revenue $3.700M $3.950M $4.870M
YoY Change -23.24% -18.89% -1.81%
Gross Profit $2.820M $3.210M $3.110M
YoY Change -22.53% 3.22% -12.39%
Gross Profit Margin 43.2% 44.81% 38.97%
Selling, General & Admin $1.817M $2.111M $2.409M
YoY Change -19.28% -12.37% -42.04%
% of Gross Profit 64.43% 65.76% 77.46%
Research & Development $335.0K $300.0K $170.0K
YoY Change 15.52% 76.47% -29.17%
% of Gross Profit 11.88% 9.35% 5.47%
Depreciation & Amortization $560.0K $555.0K $688.0K
YoY Change -15.15% -19.33% -9.23%
% of Gross Profit 19.86% 17.29% 22.12%
Operating Expenses $2.152M $2.111M $2.409M
YoY Change -4.4% -12.37% -42.04%
Operating Profit $103.0K $125.0K -$478.0K
YoY Change -71.15% -126.15% -70.16%
Interest Expense $349.0K $337.0K $334.0K
YoY Change 4.49% 0.9% 14.38%
% of Operating Profit 338.83% 269.6%
Other Income/Expense, Net -$372.0K -$359.0K -$356.0K
YoY Change 4.49% 0.84% -7.05%
Pretax Income -$270.0K -$230.0K -$1.170M
YoY Change -80.34% -41.21%
Income Tax $0.00 $0.00 $0.00
% Of Pretax Income
Net Earnings -$269.0K -$234.0K -$834.0K
YoY Change -27000.0% -71.94% -57.98%
Net Earnings / Revenue -4.12% -3.27% -10.45%
Basic Earnings Per Share -$0.01 -$0.01 -$0.02
Diluted Earnings Per Share -$0.01 -$0.01 -$0.02
COMMON SHARES
Basic Shares Outstanding 35.69M shares 37.77M shares 35.17M shares
Diluted Shares Outstanding 35.40M shares 35.48M shares 34.86M shares

Balance Sheet

Concept 2015 Q2 2015 Q1 2014 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.600M $1.900M $2.200M
YoY Change -23.81% -13.64% 0.0%
Cash & Equivalents
Short-Term Investments
Other Short-Term Assets $600.0K $700.0K $400.0K
YoY Change 0.0% 75.0% -50.0%
Inventory
Prepaid Expenses
Receivables $3.356M $3.557M $3.621M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $5.537M $6.131M $6.217M
YoY Change -11.92% -1.38% -5.87%
LONG-TERM ASSETS
Property, Plant & Equipment $3.322M $3.361M $2.826M
YoY Change 4.07% 18.93% -19.3%
Goodwill $9.825M $9.825M $9.825M
YoY Change 0.0% 0.0% 1.82%
Intangibles $2.612M $2.830M $5.684M
YoY Change -51.35% -50.21% -18.11%
Long-Term Investments
YoY Change
Other Assets $189.0K $213.0K $392.0K
YoY Change -42.2% -45.66% -41.58%
Total Long-Term Assets $15.95M $16.23M $18.73M
YoY Change -14.78% -13.34% -9.81%
TOTAL ASSETS
Total Short-Term Assets $5.537M $6.131M $6.217M
Total Long-Term Assets $15.95M $16.23M $18.73M
Total Assets $21.49M $22.36M $24.94M
YoY Change -14.06% -10.36% -8.86%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $645.0K $1.421M $1.707M
YoY Change -70.55% -16.75% -18.36%
Accrued Expenses $1.676M $1.493M $2.182M
YoY Change -12.07% -31.58% 25.19%
Deferred Revenue
YoY Change
Short-Term Debt $100.0K $400.0K $901.0K
YoY Change -49.24% -55.6% -24.73%
Long-Term Debt Due $100.0K $400.0K $901.0K
YoY Change -49.24% -55.6% -24.73%
Total Short-Term Liabilities $3.025M $3.847M $5.491M
YoY Change -38.15% -29.94% -9.34%
LONG-TERM LIABILITIES
Long-Term Debt $10.79M $10.79M $10.24M
YoY Change -0.92% 5.37% 8.03%
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $10.93M $10.93M $10.26M
YoY Change 0.27% 6.5% 6.4%
TOTAL LIABILITIES
Total Short-Term Liabilities $3.025M $3.847M $5.491M
Total Long-Term Liabilities $10.93M $10.93M $10.26M
Total Liabilities $13.95M $14.77M $15.75M
YoY Change -11.63% -6.2% 0.32%
SHAREHOLDERS EQUITY
Retained Earnings -$171.1M -$170.8M -$168.7M
YoY Change 1.44% 1.28% 1.85%
Common Stock $178.7M $178.5M $177.7M
YoY Change 0.5% 0.41% 6.35%
Preferred Stock
YoY Change
Treasury Stock (at cost) $205.0K $205.0K $30.00K
YoY Change 210.61% 583.33%
Treasury Stock Shares 179.0K shares 179.0K shares 18.00M shares
Shareholders Equity $7.533M $7.586M $9.193M
YoY Change
Total Liabilities & Shareholders Equity $21.49M $22.36M $24.94M
YoY Change -14.06% -10.36% -8.86%

Cashflow Statement

Concept 2015 Q2 2015 Q1 2014 Q1
OPERATING ACTIVITIES
Net Income -$269.0K -$234.0K -$834.0K
YoY Change -27000.0% -71.94% -57.98%
Depreciation, Depletion And Amortization $560.0K $555.0K $688.0K
YoY Change -15.15% -19.33% -9.23%
Cash From Operating Activities $370.0K $600.0K $530.0K
YoY Change -48.61% 13.21% 100.76%
INVESTING ACTIVITIES
Capital Expenditures -$300.0K $533.0K $434.0K
YoY Change -53.85% 22.81% 250.0%
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00
YoY Change
Cash From Investing Activities -$290.0K -$530.0K -$434.0K
YoY Change -55.38% 22.12% 250.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $139.0K $30.00K
YoY Change 363.33%
Debt Paid & Issued, Net $0.00 $49.00K
YoY Change -100.0%
Cash From Financing Activities -310.0K -$139.0K -$208.0K
YoY Change 106.67% -33.17% 8.33%
NET CHANGE
Cash From Operating Activities 370.0K 600.0K 530.0K
Cash From Investing Activities -290.0K -$530.0K -$434.0K
Cash From Financing Activities -310.0K -$139.0K -$208.0K
Net Change In Cash -230.0K -$669.0K -$642.0K
YoY Change 187.5% 4.21% 1134.62%
FREE CASH FLOW
Cash From Operating Activities $370.0K $600.0K $530.0K
Capital Expenditures -$300.0K $533.0K $434.0K
Free Cash Flow $670.0K $67.00K $96.00K
YoY Change -51.09% -30.21% -31.43%

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OtherAssetsNoncurrent
262000 USD
CY2015Q1 us-gaap Payments For Repurchase Of Common Stock
PaymentsForRepurchaseOfCommonStock
139000 USD
CY2014Q1 us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
59000 USD
CY2015Q1 us-gaap Payments Of Debt Issuance Costs
PaymentsOfDebtIssuanceCosts
0 USD
CY2014Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
434000 USD
CY2015Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
533000 USD
CY2014Q1 us-gaap Preferred Stock Dividends Income Statement Impact
PreferredStockDividendsIncomeStatementImpact
5000 USD
CY2015Q1 us-gaap Preferred Stock Dividends Income Statement Impact
PreferredStockDividendsIncomeStatementImpact
5000 USD
CY2014Q4 us-gaap Preferred Stock Liquidation Preference Value
PreferredStockLiquidationPreferenceValue
396000 USD
CY2015Q1 us-gaap Preferred Stock Liquidation Preference Value
PreferredStockLiquidationPreferenceValue
396000 USD
CY2014Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.0001
CY2015Q1 us-gaap Preferred Stock Par Or Stated Value Per Share
PreferredStockParOrStatedValuePerShare
0.0001
CY2014Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
7500 shares
CY2015Q1 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
7500 shares
CY2014Q4 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
53 shares
CY2015Q1 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
53 shares
CY2014Q4 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
53 shares
CY2015Q1 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
53 shares
CY2014Q4 us-gaap Preferred Stock Value
PreferredStockValue
167000 USD
CY2015Q1 us-gaap Preferred Stock Value
PreferredStockValue
167000 USD
CY2014Q4 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
1025000 USD
CY2015Q1 us-gaap Prepaid Expense And Other Assets Current
PrepaidExpenseAndOtherAssetsCurrent
703000 USD
CY2014Q1 us-gaap Proceeds From Repurchase Of Equity
ProceedsFromRepurchaseOfEquity
0 USD
CY2015Q1 us-gaap Proceeds From Repurchase Of Equity
ProceedsFromRepurchaseOfEquity
18000 USD
CY2014Q1 us-gaap Proceeds From Sale Of Property Plant And Equipment
ProceedsFromSaleOfPropertyPlantAndEquipment
0 USD
CY2015Q1 us-gaap Proceeds From Sale Of Property Plant And Equipment
ProceedsFromSaleOfPropertyPlantAndEquipment
3000 USD
CY2014Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
3246000 USD
CY2015Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
3361000 USD
CY2014Q1 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
-107000 USD
CY2015Q1 us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
-3000 USD
CY2014Q1 us-gaap Repayments Of Long Term Capital Lease Obligations
RepaymentsOfLongTermCapitalLeaseObligations
65000 USD
CY2015Q1 us-gaap Repayments Of Long Term Capital Lease Obligations
RepaymentsOfLongTermCapitalLeaseObligations
18000 USD
CY2014Q1 us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
49000 USD
CY2015Q1 us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
0 USD
CY2015Q1 us-gaap Restricted Cash And Cash Equivalents
RestrictedCashAndCashEquivalents
148000 USD
CY2014Q4 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-170614000 USD
CY2015Q1 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
-170848000 USD
CY2014Q1 us-gaap Sales Revenue Services Net
SalesRevenueServicesNet
7981000 USD
CY2015Q1 us-gaap Sales Revenue Services Net
SalesRevenueServicesNet
7163000 USD
CY2014Q1 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
825000 USD
CY2015Q1 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
708000 USD
CY2014Q1 us-gaap Share Based Compensation
ShareBasedCompensation
233000 USD
CY2015Q1 us-gaap Share Based Compensation
ShareBasedCompensation
113000 USD
CY2014Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
729000 shares
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableNumber
796000 shares
CY2014Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
2.05
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Exercisable Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsExercisableWeightedAverageExercisePrice
2.06
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures And Expirations In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod
3000 shares
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures And Expirations In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriodWeightedAverageExercisePrice
7.68
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresInPeriod
26000 shares
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsGrantsInPeriodGross
0 shares
CY2014Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
1350000 shares
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
1321000 shares
CY2014Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
2.02
CY2015Q1 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Weighted Average Exercise Price
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingWeightedAverageExercisePrice
2.00
CY2015Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Exercises In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsExercisesInPeriodWeightedAverageExercisePrice
0.00
CY2015Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Forfeitures In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsForfeituresInPeriodWeightedAverageExercisePrice
2.10
CY2015Q1 us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
ShareBasedCompensationArrangementsByShareBasedPaymentAwardOptionsGrantsInPeriodWeightedAverageExercisePrice
0.00
CY2014Q4 us-gaap Short Term Borrowings
ShortTermBorrowings
400000 USD
CY2015Q1 us-gaap Short Term Borrowings
ShortTermBorrowings
400000 USD
CY2015Q1 us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
0 shares
CY2015Q1 us-gaap Stock Issued During Period Value New Issues
StockIssuedDuringPeriodValueNewIssues
-82000 USD
CY2015Q1 us-gaap Stock Issued During Period Value Share Based Compensation Forfeited
StockIssuedDuringPeriodValueShareBasedCompensationForfeited
0 USD
CY2014Q4 us-gaap Stockholders Equity
StockholdersEquity
7967000 USD
CY2015Q1 us-gaap Stockholders Equity
StockholdersEquity
7586000 USD
CY2014Q4 us-gaap Taxes Payable Current
TaxesPayableCurrent
444000 USD
CY2015Q1 us-gaap Taxes Payable Current
TaxesPayableCurrent
463000 USD
CY2014Q4 us-gaap Treasury Stock Shares
TreasuryStockShares
40000 shares
CY2015Q1 us-gaap Treasury Stock Shares
TreasuryStockShares
179000 shares
CY2014Q4 us-gaap Treasury Stock Value
TreasuryStockValue
66000 USD
CY2015Q1 us-gaap Treasury Stock Value
TreasuryStockValue
205000 USD
CY2015Q1 us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
139000 USD
CY2014Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
34858000 shares
CY2015Q1 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
35482000 shares
CY2014Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
34858000 shares
CY2015Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
35482000 shares
CY2014Q1 us-gaap Weighted Average Number Of Shares Issued Basic
WeightedAverageNumberOfSharesIssuedBasic
34858000 shares
CY2015Q1 us-gaap Weighted Average Number Of Shares Issued Basic
WeightedAverageNumberOfSharesIssuedBasic
35482000 shares
CY2015Q1 us-gaap Nature Of Operations
NatureOfOperations
<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;">Business Description and Basis of Presentation</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Business Description</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Glowpoint, Inc. (&#8220;</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Glowpoint</font><font style="font-family:inherit;font-size:10pt;">&#8221; or &#8220;</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">we</font><font style="font-family:inherit;font-size:10pt;">&#8221; or &#8220;</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">us</font><font style="font-family:inherit;font-size:10pt;">&#8221; or the &#8220;</font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Company</font><font style="font-family:inherit;font-size:10pt;">&#8221;) is a provider of video collaboration services and network services. Our services enable our customers to use videoconferencing as an efficient and effective method of communication for their business meetings. Our customers include Fortune 1000 companies, along with small and medium enterprises in a variety of industries. We market our services globally through a multi-channel sales approach that includes direct sales and channel partners. </font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company was formed as a Delaware corporation in May 2000. The Company operates in </font><font style="font-family:inherit;font-size:10pt;">one</font><font style="font-family:inherit;font-size:10pt;"> segment and therefore segment information is not presented. </font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Principles of Consolidation</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The condensed consolidated financial statements include the accounts of Glowpoint and our </font><font style="font-family:inherit;font-size:10pt;">100%</font><font style="font-family:inherit;font-size:10pt;">-owned subsidiary, GP Communications, LLC, whose business function is to provide interstate telecommunications services for regulatory purposes. All material inter-company balances and transactions have been eliminated in consolidation. </font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Quarterly Financial Information and Results of Operations</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The condensed consolidated financial statements as of </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2015</font><font style="font-family:inherit;font-size:10pt;"> and for the </font><font style="font-family:inherit;font-size:10pt;">three</font><font style="font-family:inherit;font-size:10pt;"> months ended </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2015</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">2014</font><font style="font-family:inherit;font-size:10pt;"> are unaudited and, in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary to present fairly the financial position as of </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2015</font><font style="font-family:inherit;font-size:10pt;">, and the results of operations for the </font><font style="font-family:inherit;font-size:10pt;">three</font><font style="font-family:inherit;font-size:10pt;"> months ended </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2015</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">2014</font><font style="font-family:inherit;font-size:10pt;">, the statement of stockholders' equity for the </font><font style="font-family:inherit;font-size:10pt;">three</font><font style="font-family:inherit;font-size:10pt;"> months ended </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2015</font><font style="font-family:inherit;font-size:10pt;"> and the statement of cash flows for the </font><font style="font-family:inherit;font-size:10pt;">three</font><font style="font-family:inherit;font-size:10pt;"> months ended </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2015</font><font style="font-family:inherit;font-size:10pt;"> and </font><font style="font-family:inherit;font-size:10pt;">2014</font><font style="font-family:inherit;font-size:10pt;">. The results of operations and cash flows for the </font><font style="font-family:inherit;font-size:10pt;">three</font><font style="font-family:inherit;font-size:10pt;"> months ended </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2015</font><font style="font-family:inherit;font-size:10pt;"> are not necessarily indicative of the results to be expected for the entire year. The condensed balance sheet as of </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2014</font><font style="font-family:inherit;font-size:10pt;"> was derived from audited financial statements as of </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2014</font><font style="font-family:inherit;font-size:10pt;">. While management of the Company believes that the disclosures presented are adequate to make the information not misleading, these condensed consolidated financial statements should be read in conjunction with audited consolidated financial statements and the footnotes thereto, together with Management's Discussion and Analysis of Financial Condition and Results of Operations, contained in the Company's Annual Report on Form 10-K for the year ended </font><font style="font-family:inherit;font-size:10pt;">December&#160;31, 2014</font><font style="font-family:inherit;font-size:10pt;">. </font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Reclassifications</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Certain prior year amounts have been reclassified to conform with the current year presentation.</font></div></div>
CY2015Q1 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Reclassifications</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Certain prior year amounts have been reclassified to conform with the current year presentation.</font></div></div>
CY2015Q1 us-gaap Revenue Recognition Accounting Policy Gross And Net Revenue Disclosure
RevenueRecognitionAccountingPolicyGrossAndNetRevenueDisclosure
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Taxes Billed to Customers and Remitted to Taxing Authorities</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We recognize taxes billed to customers in revenue and taxes remitted to taxing authorities in our cost of revenue.</font></div></div>
CY2015Q1 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Preparation of the condensed consolidated 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 condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual amounts could differ from the estimates made. We continually evaluate estimates used in the preparation of the condensed consolidated financial statements for reasonableness. Appropriate adjustments, if any, to the estimates used are made prospectively based upon such periodic evaluation. The significant areas of estimation include determining the allowance for doubtful accounts, deferred tax valuation allowance, accrued sales taxes, the valuation of goodwill, the valuation of intangible assets and their estimated lives, and the estimated lives and recoverability of property and equipment. </font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div></div>

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