2015 Q2 Form 10-Q Financial Statement

#000074621015000092 Filed on August 05, 2015

View on sec.gov

Income Statement

Concept 2015 Q2 2014 Q2
Revenue $6.528M $8.468M
YoY Change -22.91% -3.07%
Cost Of Revenue $3.700M $4.820M
YoY Change -23.24% -1.43%
Gross Profit $2.820M $3.640M
YoY Change -22.53% -5.45%
Gross Profit Margin 43.2% 42.99%
Selling, General & Admin $1.817M $2.251M
YoY Change -19.28% -16.88%
% of Gross Profit 64.43% 61.84%
Research & Development $335.0K $290.0K
YoY Change 15.52% 70.59%
% of Gross Profit 11.88% 7.97%
Depreciation & Amortization $560.0K $660.0K
YoY Change -15.15% -5.71%
% of Gross Profit 19.86% 18.13%
Operating Expenses $2.152M $2.251M
YoY Change -4.4% -16.88%
Operating Profit $103.0K $357.0K
YoY Change -71.15% 32.71%
Interest Expense $349.0K $334.0K
YoY Change 4.49% 4.38%
% of Operating Profit 338.83% 93.56%
Other Income/Expense, Net -$372.0K -$356.0K
YoY Change 4.49% -15.04%
Pretax Income -$270.0K $0.00
YoY Change -100.0%
Income Tax $0.00 $0.00
% Of Pretax Income
Net Earnings -$269.0K $1.000K
YoY Change -27000.0% -100.67%
Net Earnings / Revenue -4.12% 0.01%
Basic Earnings Per Share -$0.01 $0.00
Diluted Earnings Per Share -$0.01 $0.00
COMMON SHARES
Basic Shares Outstanding 35.69M shares 35.49M shares
Diluted Shares Outstanding 35.40M shares 34.96M shares

Balance Sheet

Concept 2015 Q2 2014 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.600M $2.100M
YoY Change -23.81% -25.0%
Cash & Equivalents
Short-Term Investments
Other Short-Term Assets $600.0K $600.0K
YoY Change 0.0% -14.29%
Inventory
Prepaid Expenses
Receivables $3.356M $3.603M
Other Receivables $0.00 $0.00
Total Short-Term Assets $5.537M $6.286M
YoY Change -11.92% -6.71%
LONG-TERM ASSETS
Property, Plant & Equipment $3.322M $3.192M
YoY Change 4.07% 1.04%
Goodwill $9.825M $9.825M
YoY Change 0.0% 1.34%
Intangibles $2.612M $5.369M
YoY Change -51.35% -18.98%
Long-Term Investments
YoY Change
Other Assets $189.0K $327.0K
YoY Change -42.2% -45.95%
Total Long-Term Assets $15.95M $18.71M
YoY Change -14.78% -6.84%
TOTAL ASSETS
Total Short-Term Assets $5.537M $6.286M
Total Long-Term Assets $15.95M $18.71M
Total Assets $21.49M $25.00M
YoY Change -14.06% -6.8%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $645.0K $2.190M
YoY Change -70.55% 6.93%
Accrued Expenses $1.676M $1.906M
YoY Change -12.07% 32.82%
Deferred Revenue
YoY Change
Short-Term Debt $100.0K $197.0K
YoY Change -49.24% -85.04%
Long-Term Debt Due $100.0K $197.0K
YoY Change -49.24% -85.04%
Total Short-Term Liabilities $3.025M $4.891M
YoY Change -38.15% -19.65%
LONG-TERM LIABILITIES
Long-Term Debt $10.79M $10.89M
YoY Change -0.92% 19.44%
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $10.93M $10.90M
YoY Change 0.27% 17.92%
TOTAL LIABILITIES
Total Short-Term Liabilities $3.025M $4.891M
Total Long-Term Liabilities $10.93M $10.90M
Total Liabilities $13.95M $15.79M
YoY Change -11.63% 3.0%
SHAREHOLDERS EQUITY
Retained Earnings -$171.1M -$168.7M
YoY Change 1.44% 1.75%
Common Stock $178.7M $177.8M
YoY Change 0.5% 6.4%
Preferred Stock
YoY Change
Treasury Stock (at cost) $205.0K $66.00K
YoY Change 210.61%
Treasury Stock Shares 179.0K shares 40.00K shares
Shareholders Equity $7.533M $9.210M
YoY Change
Total Liabilities & Shareholders Equity $21.49M $25.00M
YoY Change -14.06% -6.8%

Cashflow Statement

Concept 2015 Q2 2014 Q2
OPERATING ACTIVITIES
Net Income -$269.0K $1.000K
YoY Change -27000.0% -100.67%
Depreciation, Depletion And Amortization $560.0K $660.0K
YoY Change -15.15% -5.71%
Cash From Operating Activities $370.0K $720.0K
YoY Change -48.61% -33.94%
INVESTING ACTIVITIES
Capital Expenditures -$300.0K -$650.0K
YoY Change -53.85% 441.67%
Acquisitions
YoY Change
Other Investing Activities $0.00 $0.00
YoY Change
Cash From Investing Activities -$290.0K -$650.0K
YoY Change -55.38% 490.91%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -310.0K -150.0K
YoY Change 106.67% -57.14%
NET CHANGE
Cash From Operating Activities 370.0K 720.0K
Cash From Investing Activities -290.0K -650.0K
Cash From Financing Activities -310.0K -150.0K
Net Change In Cash -230.0K -80.00K
YoY Change 187.5% -112.7%
FREE CASH FLOW
Cash From Operating Activities $370.0K $720.0K
Capital Expenditures -$300.0K -$650.0K
Free Cash Flow $670.0K $1.370M
YoY Change -51.09% 13.22%

Facts In Submission

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OtherAccruedLiabilitiesCurrent
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us-gaap Other Asset Impairment Charges
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CY2014Q4 us-gaap Other Assets Noncurrent
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262000 USD
CY2015Q2 us-gaap Other Assets Noncurrent
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165000 USD
us-gaap Other Significant Noncash Transaction Value Of Consideration Given1
OtherSignificantNoncashTransactionValueOfConsiderationGiven1
0 USD
us-gaap Payments For Repurchase Of Common Stock
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us-gaap Payments For Repurchase Of Common Stock
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6.54
us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures In Period
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us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Gross
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us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Forfeitures And Expirations In Period
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsForfeituresAndExpirationsInPeriod
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us-gaap Payments Of Debt Issuance Costs
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0 USD
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3000 USD
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CY2014Q2 us-gaap Preferred Stock Dividends Income Statement Impact
PreferredStockDividendsIncomeStatementImpact
5000 USD
us-gaap Preferred Stock Dividends Income Statement Impact
PreferredStockDividendsIncomeStatementImpact
10000 USD
CY2015Q2 us-gaap Preferred Stock Dividends Income Statement Impact
PreferredStockDividendsIncomeStatementImpact
5000 USD
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PreferredStockLiquidationPreferenceValue
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PreferredStockParOrStatedValuePerShare
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CY2014Q4 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
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CY2015Q2 us-gaap Preferred Stock Shares Authorized
PreferredStockSharesAuthorized
7500 shares
CY2014Q4 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
53 shares
CY2015Q2 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
53 shares
CY2014Q4 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
53 shares
CY2015Q2 us-gaap Preferred Stock Shares Outstanding
PreferredStockSharesOutstanding
53 shares
CY2014Q4 us-gaap Preferred Stock Value
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167000 USD
CY2015Q2 us-gaap Preferred Stock Value
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167000 USD
CY2014Q4 us-gaap Prepaid Expense And Other Assets Current
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1025000 USD
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550000 USD
us-gaap Proceeds From Repurchase Of Equity
ProceedsFromRepurchaseOfEquity
0 USD
us-gaap Proceeds From Repurchase Of Equity
ProceedsFromRepurchaseOfEquity
18000 USD
us-gaap Proceeds From Sale Of Property Plant And Equipment
ProceedsFromSaleOfPropertyPlantAndEquipment
4000 USD
us-gaap Proceeds From Sale Of Property Plant And Equipment
ProceedsFromSaleOfPropertyPlantAndEquipment
3000 USD
CY2014Q4 us-gaap Property Plant And Equipment Net
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3246000 USD
CY2015Q2 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
3322000 USD
us-gaap Repayments Of Long Term Capital Lease Obligations
RepaymentsOfLongTermCapitalLeaseObligations
131000 USD
us-gaap Repayments Of Long Term Capital Lease Obligations
RepaymentsOfLongTermCapitalLeaseObligations
30000 USD
us-gaap Repayments Of Long Term Debt
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102000 USD
us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
300000 USD
CY2015Q2 us-gaap Restricted Cash And Cash Equivalents
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148000 USD
CY2014Q4 us-gaap Retained Earnings Accumulated Deficit
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CY2015Q2 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
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us-gaap Sales Revenue Services Net
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16449000 USD
CY2015Q2 us-gaap Sales Revenue Services Net
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us-gaap Sales Revenue Services Net
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13691000 USD
CY2014Q2 us-gaap Selling And Marketing Expense
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us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
1743000 USD
CY2015Q2 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
431000 USD
us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
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us-gaap Share Based Compensation
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729000 shares
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us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Forfeitures In Period Weighted Average Exercise Price
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1.99
us-gaap Share Based Compensation Arrangements By Share Based Payment Award Options Grants In Period Weighted Average Exercise Price
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0.00
CY2014Q4 us-gaap Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Number
ShareBasedCompensationArrangementByShareBasedPaymentAwardOptionsOutstandingNumber
1350000 shares
CY2014Q4 us-gaap Short Term Borrowings
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400000 USD
CY2015Q2 us-gaap Short Term Borrowings
ShortTermBorrowings
100000 USD
us-gaap Stock Issued During Period Shares Stock Options Exercised
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0 shares
us-gaap Stock Issued During Period Value New Issues
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us-gaap Stock Issued During Period Value Share Based Compensation Forfeited
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CY2014Q4 us-gaap Stockholders Equity
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7967000 USD
CY2015Q2 us-gaap Stockholders Equity
StockholdersEquity
7533000 USD
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444000 USD
CY2015Q2 us-gaap Taxes Payable Current
TaxesPayableCurrent
541000 USD
CY2014Q4 us-gaap Treasury Stock Shares
TreasuryStockShares
40000 shares
CY2015Q2 us-gaap Treasury Stock Shares
TreasuryStockShares
179000 shares
CY2014Q4 us-gaap Treasury Stock Value
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66000 USD
CY2015Q2 us-gaap Treasury Stock Value
TreasuryStockValue
205000 USD
us-gaap Treasury Stock Value Acquired Cost Method
TreasuryStockValueAcquiredCostMethod
139000 USD
CY2014Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
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34958000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
34912000 shares
CY2015Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
35400000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
35466000 shares
CY2014Q2 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
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us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
34912000 shares
CY2015Q2 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
35400000 shares
us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
35466000 shares
CY2014Q2 us-gaap Weighted Average Number Of Shares Issued Basic
WeightedAverageNumberOfSharesIssuedBasic
34958000 shares
us-gaap Weighted Average Number Of Shares Issued Basic
WeightedAverageNumberOfSharesIssuedBasic
34912000 shares
CY2015Q2 us-gaap Weighted Average Number Of Shares Issued Basic
WeightedAverageNumberOfSharesIssuedBasic
35400000 shares
us-gaap Weighted Average Number Of Shares Issued Basic
WeightedAverageNumberOfSharesIssuedBasic
35466000 shares
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 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;">June&#160;30, 2015</font><font style="font-family:inherit;font-size:10pt;"> and for the </font><font style="font-family:inherit;font-size:10pt;">three and six</font><font style="font-family:inherit;font-size:10pt;"> months ended </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 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;">June&#160;30, 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 and six</font><font style="font-family:inherit;font-size:10pt;"> months ended </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 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;">six</font><font style="font-family:inherit;font-size:10pt;"> months ended </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 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;">six</font><font style="font-family:inherit;font-size:10pt;"> months ended </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 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 and six</font><font style="font-family:inherit;font-size:10pt;"> months ended </font><font style="font-family:inherit;font-size:10pt;">June&#160;30, 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 consolidated 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>
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>
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>
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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