0001104659-19-022867.txt : 20190422 0001104659-19-022867.hdr.sgml : 20190422 20190422161121 ACCESSION NUMBER: 0001104659-19-022867 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20190422 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20190422 DATE AS OF CHANGE: 20190422 FILER: COMPANY DATA: COMPANY CONFORMED NAME: STREAMLINE HEALTH SOLUTIONS INC. CENTRAL INDEX KEY: 0001008586 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373] IRS NUMBER: 311455414 STATE OF INCORPORATION: DE FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-28132 FILM NUMBER: 19759551 BUSINESS ADDRESS: STREET 1: 1230 PEACHTREE STREET NE STREET 2: SUITE 600 CITY: ATLANTA STATE: GA ZIP: 30309 BUSINESS PHONE: 404-446-2052 MAIL ADDRESS: STREET 1: 1230 PEACHTREE STREET NE STREET 2: SUITE 600 CITY: ATLANTA STATE: GA ZIP: 30309 FORMER COMPANY: FORMER CONFORMED NAME: STREEAMLINE HEALTH SOLUTIONS INC. DATE OF NAME CHANGE: 20060809 FORMER COMPANY: FORMER CONFORMED NAME: LANVISION SYSTEMS INC DATE OF NAME CHANGE: 19960220 8-K 1 a19-8642_28k.htm 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):  April 22, 2019

 

Streamline Health Solutions, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware

 

0-28132

 

31-1455414

(State or other jurisdiction of incorporation)

 

(Commission File Number)

 

(I.R.S. Employer Identification No.)

 

1175 Peachtree Street NE, 10th Floor
Atlanta, GA 30361
(Address of principal executive offices) (Zip Code)

 

 

 

 

Registrant’s telephone number, including area code: (404) 446-2052

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company               o

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  o

 

 

 


 

Item 2.02.                                        Results of Operations and Financial Condition.

 

On April 22, 2019, Streamline Health Solutions, Inc. (the “Company”) issued a press release announcing fourth quarter 2018 financial results.  A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

 

The information contained in this Item 2.02, as well as Exhibit 99.1 referenced herein, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor incorporated by reference in any filing under the Securities Act of 1933, as amended, unless the Company expressly so incorporates such information by reference.

 

Item 9.01.             Financial Statements and Exhibits.

 

(d)  Exhibits.

 

EXHIBIT
NUMBER

 

DESCRIPTION

 

 

 

99.1

 

Press release, dated April 22, 2019, regarding Fourth Quarter 2018 Financial Results.

 

2


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

Streamline Health Solutions, Inc.

 

 

 

Date: April 22, 2019

By:

/s/ Thomas J. Gibson

 

Name:

Thomas J. Gibson

 

Title:

Chief Financial Officer

 

3


EX-99.1 2 a19-8642_2ex99d1.htm EX-99.1

Exhibit 99.1

 

GRAPHIC

 

News Release

 

STREAMLINE HEALTH® REPORTS FOURTH QUARTER AND FISCAL YEAR 2018 FINANCIAL PERFORMANCE

 

Fourth Quarter 2018: Revenues $5.5 Million; Net Loss ($3.1 Million); Adjusted EBITDA $1.1 Million

 

Fiscal Year 2018: Revenues $22.4 Million; Net Loss ($5.9 Million); Adjusted EBITDA $2.9 Million; Cash from Operations $1.4 Million

 

Atlanta, GA — April 22, 2019 — Streamline Health Solutions, Inc. (NASDAQ: STRM), provider of integrated solutions, technology-enabled services and analytics supporting revenue cycle optimization for healthcare enterprises, today announced financial results for the fourth quarter and fiscal year 2018, which ended January 31, 2019.

 

Revenues for the three-month period ended January 31, 2019 were approximately $5.5 million, up slightly from revenues for the quarter ended October 31, 2018, but down approximately 10% from fourth quarter of fiscal 2017.  Recurring revenue comprised 88% of total revenue in the quarter ended January 31, 2019.  Revenues for fiscal year 2018 were $22.4 million, down approximately 8% from $24.3 million the previous fiscal year.  Recurring revenues for the year constituted 80% of overall revenue.

 

Net loss for the fourth quarter was approximately ($3.1 million) as compared to net income of $38,000 in the same period a year ago.  Excluding the impairment charge of ($3.7 million) described below and the adjustment to costs associated with the New York facility sublease of $0.3 million, net income for the fourth quarter of fiscal 2018 would have been $251,000, which would have been higher than the fourth quarter of fiscal 2017.  Net loss for the fiscal year 2018 was approximately ($5.9 million) as compared to a net loss of approximately ($3.1 million) in fiscal year 2017.  Net loss for fiscal 2018 would have been ($1.2 million) before the impairment charge of ($3.7 million) and exit costs of ($1.0 million).

 

Adjusted EBITDA for the fourth quarter of 2018 was approximately $1.1 million, down from approximately $1.2 million in the fourth quarter of 2017. Adjusted EBITDA for fiscal year 2018 totaled $2.9 million, up approximately 4% from the previous fiscal year.

 

“Looking at this fiscal year and next, we are excited about our growth prospects for a number of reasons,” stated David Sides, President and Chief Executive Officer, Streamline Health. “First we doubled our bookings in 2018 over 2017 which we believe is partially a result of focusing our company’s resources on solutions and services in the mid-revenue cycle portion of our industry.  This segment of the market is projected to double in size from approximately $3 billion last year to $6 billion by 2026.  Second, we have transitioned from investing in the development of new technologies, like eValuator™, to investing in the sales of those new solutions, which is the logical next phase in any normal business cycle.  Third, we have a new Chief Revenue Officer who has generated positive growth at his previous places of employment and a new Chairman of the Board with a very successful track record in our industry.  On growth, we believe the effect of attrition in our legacy solutions will be less impactful in the years ahead due to our initiative to create multi-year contracts as we grow revenue around it.

 


 

In addition, our cost containment processes have delivered significant improvement in our Adjusted EBITDA which we plan to use to fuel revenue growth.”

 

“Looking back at our fourth quarter and fiscal year 2018 performance, we met or exceeded our objectives in some areas and fell short in others.  We were pleased at the growth of our backlog, and year-over-year growth in bookings as we view these measures as a leading indicator of the foundation for growth that is expected in fiscal 2019.  During the fourth quarter we addressed the need to write off all of the assets of our Clinical Analytics solution which the Company acquired in fiscal 2013 as a move into the healthcare research arena, which resulted in an impairment charge of $3.7 milion. The determination to write off these assets is also a reflection of our efforts to focus solely on the middle of the revenue cycle.”

 

Highlights for the fourth quarter ended January 31, 2019 included:

 

·                  Revenue for the fourth quarter 2018 was $5.5 million;

 

·                  Net loss for the fourth quarter 2018 was $(3.1 million);

 

·                  Adjusted EBITDA for the fourth quarter 2018 was $1.1 million;

 

·                  Bookings for the fourth quarter 2018 were $1.1 million;

 

·                  Bookings for fiscal year 2018 were up to $8.2 million from $4.7 million in fiscal year 2017;

 

·                  Total Backlog for fiscal year 2018 was approximately $28.0 million.

 

Conference Call

 

The Company will conduct a conference call to review the results and provide Fiscal Year 2019 guidance on Tuesday, April 23, 2019 at 9:00 AM ET. Interested parties can access the call by joining the live webcast: click here to register. You can also join by phone by dialing 877-269-7756.

 

A replay of the conference call will be available from Tuesday, April 23, 2019 at 12:00 PM ET to Tuesday, April 30, 2019 at 12:00 PM ET by dialing 888-203-1112 and entering passcode 13689419. An online replay of the presentation will also be available for six months following the presentation in the Investor Relations section of the Streamline Health website, www.streamlinehealth.net.

 

*Non-GAAP Financial Measures

 

Streamline Health reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). Streamline Health’s management also evaluates and makes operating decisions using various other measures. One such measure is adjusted EBITDA, which is a non-GAAP financial measure. Streamline Health’s management believes that this measure provides useful supplemental information regarding the performance of Streamline Health’s business operations.

 

Streamline Health defines “adjusted EBITDA” as net earnings (loss) plus interest expense, tax expense, depreciation and amortization expense of tangible and intangible assets, stock-based compensation expense, significant non-recurring operating expenses, and transactional related expenses including: gains and losses on debt and equity conversions, associate severances and related restructuring expenses, associate inducements, and professional and advisory fees. A table illustrating this measure is included in this press release.

 

About Streamline Health

 

Streamline Health Solutions, Inc. (NASDAQ: STRM) is a healthcare industry leader in capturing, aggregating, and translating enterprise data into knowledge — actionable insights that support revenue cycle optimization for healthcare enterprises. We deliver integrated solutions and analytics that enable providers to drive reimbursement in a value-based world. We share a common calling and commitment to advance the quality of life and the quality of healthcare — for society, our clients, the communities they serve, and the individual patient. For more information, please visit our website at www.streamlinehealth.net.

 


 

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995

 

Statements made by Streamline Health Solutions, Inc. that are not historical facts are forward-looking statements that are subject to certain risks, uncertainties and important factors that could cause actual results to differ materially from those reflected in the forward-looking statements included herein. Forward-looking statements contained in this press release include, without limitation, statements regarding the Company’s growth prospects, estimates of backlog, industry trends and market growth, results of investments in sales and marketing, adjusted EBITDA, success of future products and related expectations and assumptions.  These risks and uncertainties include, but are not limited to, the timing of contract negotiations and execution of contracts and the related timing of the revenue recognition related thereto, the potential cancellation of existing contracts or clients not completing projects included in the backlog, the impact of competitive solutions and pricing, solution demand and market acceptance, new solution development and enhancement of current solutions, key strategic alliances with vendors and channel partners that resell the Company’s solutions, the ability of the Company to control costs, the effects of cost-containment measures implemented by the Company, availability of solutions from third party vendors, the healthcare regulatory environment, potential changes in legislation, regulation and government funding affecting the healthcare industry, healthcare information systems budgets, availability of healthcare information systems trained personnel for implementation of new systems, as well as maintenance of legacy systems, fluctuations in operating results, effects of critical accounting policies and judgments, changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other similar entities, changes in economic, business and market conditions impacting the healthcare industry generally and the markets in which the Company operates and nationally, and the Company’s ability to maintain compliance with the terms of its credit facilities, and other risks detailed from time to time in the Streamline Health Solutions, Inc. filings with the U. S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date hereof. The Company undertakes no obligation to publicly release the results of any revision to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law.

 

Company Contact:

Randy Salisbury

SVP, Chief Marketing Officer

(404) 229-4242

randy.salisbury@streamlinehealth.net

 


 

STREAMLINE HEALTH SOLUTIONS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(rounded to the nearest thousand dollars, except share and per share information)

 

 

 

Three Months Ended
January 31,

 

Fiscal Year Ended
January 31,

 

 

 

2019

 

2018

 

2019

 

2018

 

Revenues:

 

 

 

 

 

 

 

 

 

Systems sales

 

$

645,000

 

$

287,000

 

$

2,472,000

 

$

1,343,000

 

Professional services

 

250,000

 

951,000

 

1,336,000

 

2,744,000

 

Audit Services

 

277,000

 

297,000

 

1,118,000

 

1,216,000

 

Maintenance and support

 

3,009,000

 

3,287,000

 

12,586,000

 

13,171,000

 

Software as a service

 

1,284,000

 

1,277,000

 

4,853,000

 

5,864,000

 

Total revenues

 

5,465,000

 

6,099,000

 

22,365,000

 

24,338,000

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Cost of systems sales

 

179,000

 

350,000

 

942,000

 

1,946,000

 

Cost of professional services

 

578,000

 

586,000

 

2,657,000

 

2,401,000

 

Cost of audit services

 

356,000

 

367,000

 

1,373,000

 

1,604,000

 

Cost of maintenance and support

 

453,000

 

662,000

 

2,173,000

 

2,904,000

 

Cost of software as a service

 

187,000

 

404,000

 

992,000

 

1,319,000

 

Selling, general and administrative

 

2,394,000

 

2,451,000

 

10,554,000

 

11,434,000

 

Research and development

 

959,000

 

1,367,000

 

4,261,000

 

5,352,000

 

Impairment of long-lived assets

 

3,681,000

 

 

3,681,000

 

 

Loss on exit of operating lease

 

(334,000

)

 

1,034,000

 

 

Total operating expenses

 

8,453,000

 

6,187,000

 

27,667,000

 

26,960,000

 

Operating loss

 

(2,988,000

)

(88,000

)

(5,302,000

)

(2,622,000

)

Other income (expense):

 

 

 

 

 

 

 

 

 

Interest expense

 

(52,000

)

(114,000

)

(384,000

)

(474,000

)

Miscellaneous income (expense)

 

(61,000

)

148,000

 

(179,000

)

(87,000

)

Loss before income taxes

 

(3,101,000

)

(54,000

)

(5,865,000

)

(3,183,000

)

Income tax benefit

 

5,000

 

92,000

 

 

84,000

 

Net (loss) income

 

$

(3,096,000

)

$

38,000

 

$

(5,865,000

)

$

(3,099,000

)

Basic net loss per common share

 

(0.16

)

0.00

 

(0.30

)

(0.16

)

Number of shares used in basic per common share computation

 

19,676,686

 

19,168,233

 

19,540,980

 

19,090,899

 

Diluted net loss per common share

 

$

(0.16

)

$

0.00

 

$

(0.30

)

$

(0.16

)

Number of shares used in diluted per common share computation

 

19,676,686

 

22,420,293

 

19,540,980

 

19,090,899

 

 


 

STREAMLINE HEALTH SOLUTIONS, INC.

CONDENSED AND CONSOLIDATED BALANCE SHEETS

(rounded to the nearest thousand dollars, except share and per share information)

 

Assets

 

 

 

January 31,

 

January 31,

 

 

 

2019

 

2018

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

2,376,000

 

$

4,620,000

 

Accounts receivable, net

 

2,933,000

 

3,001,000

 

Contract receivables

 

1,263,000

 

224,000

 

Prepaid assets

 

901,000

 

1,255,000

 

Other current assets

 

445,000

 

547,000

 

Total current assets

 

7,918,000

 

9,647,000

 

 

 

 

 

 

 

Non-current assets:

 

 

 

 

 

Property and equipment, net

 

237,000

 

1,162,000

 

Contract Receivables, less current portion

 

407,000

 

 

Capitalized software development costs

 

5,698,000

 

4,308,000

 

Intangible assets, net

 

1,669,000

 

5,835,000

 

Goodwill

 

15,537,000

 

15,537,000

 

Other non-current assets

 

274,000

 

642,000

 

Total non-current assets

 

23,822,000

 

27,484,000

 

 

 

$

31,740,000

 

$

37,131,000

 

 


 

STREAMLINE HEALTH SOLUTIONS, INC.

CONDENSED AND CONSOLIDATED BALANCE SHEETS

(rounded to the nearest thousand dollars, except share and per share information)

 

Liabilities and Stockholders’ Equity

 

 

 

January 31,

 

January 31,

 

 

 

2019

 

2018

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

1,280,000

 

$

421,000

 

Accrued compensation

 

789,000

 

342,000

 

Accrued other expenses

 

1,025,000

 

610,000

 

Current portion of term loan

 

597,000

 

597,000

 

Deferred revenues

 

8,338,000

 

9,482,000

 

Other

 

94,000

 

 

Total current liabilities

 

12,123,000

 

11,452,000

 

 

 

 

 

 

 

Non-current liabilities:

 

 

 

 

 

Term loan, net of current portion and deferred financing cost

 

3,351,000

 

3,901,000

 

Royalty liability

 

905,000

 

2,469,000

 

Deferred revenues, less current portion

 

432,000

 

333,000

 

Other liabilities

 

41,000

 

274,000

 

Total non-current liabilities

 

4,729,000

 

6,977,000

 

Total liabilities

 

16,852,000

 

18,429,000

 

 

 

 

 

 

 

Series A 0% Convertible Redeemable Preferred Stock

 

8,686,000

 

8,850,000

 

 

 

 

 

 

 

Stockholders’ equity

 

6,202,000

 

9,852,000

 

 

 

$

31,740,000

 

$

37,131,000

 

 


 

STREAMLINE HEALTH SOLUTIONS, INC.

CONDENSED AND CONSOLIDATED STATEMENTS OF CASH FLOWS

(rounded to the nearest thousand dollars, except share and per share information)

 

 

 

Fiscal Year

 

 

 

2018

 

2017

 

Cash flows from operating activities:

 

 

 

 

 

Net loss

 

$

(5,865,000

)

$

(3,099,000

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

450,000

 

774,000

 

Amortization of capitalized software development costs

 

1,160,000

 

2,113,000

 

Amortization of intangible assets

 

937,000

 

1,161,000

 

Amortization of other deferred costs

 

415,000

 

341,000

 

Valuation adjustments

 

126,000

 

95,000

 

Impairment of long-lived assets

 

3,681,000

 

 

Loss on exit of operating lease

 

1,034,000

 

 

Loss (gain) on disposal of fixed assets

 

7,000

 

(16,000

)

Share-based compensation expense

 

629,000

 

1,109,000

 

Provision for accounts receivable

 

13,000

 

234,000

 

Changes in assets and liabilities

 

(1,190,000

)

(681,000

)

Net cash provided by operating activities

 

1,397,000

 

2,031,000

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

Purchases of property and equipment

 

(21,000

)

(49,000

)

Proceeds from sales of property and equipment

 

21,000

 

20,000

 

Capitalization of software development costs

 

(3,003,000

)

(1,836,000

)

Net cash used in investing activities

 

(3,003,000

)

(1,865,000

)

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

Principal payments on term loan

 

(597,000

)

(1,112,000

)

Principal payments on capital lease obligation

 

 

(91,000

)

Proceeds from exercise of stock options and stock purchase plan

 

44,000

 

45,000

 

Payments related to settlement of employee shared-based awards

 

(62,000

)

(42,000

)

Payment of deferred financing costs

 

(23,000

)

 

Net cash used in financing activities

 

(638,000

)

(1,200,000

)

Net decrease in cash and cash equivalents

 

(2,244,000

)

(1,034,000

)

Cash and cash equivalents at beginning of year

 

4,620,000

 

5,654,000

 

Cash and cash equivalents at end of year

 

$

2,376,000

 

$

4,620,000

 

 


 

STREAMLINE HEALTH SOLUTIONS, INC.

Backlog

(Unaudited)

Table A

 

 

 

January 31,
2019

 

October 31,
2018

 

Systems Sales

 

$

180,000

 

$

687,000

 

Professional Services

 

1,953,000

 

1,843,000

 

Audit Services

 

1,513,000

 

1,239,000

 

Maintenance and Support

 

15,259,000

 

12,686,000

 

Software as a Service

 

9,065,000

 

9,617,000

 

Total Backlog for fiscal 2018

 

$

27,970,000

 

$

26,072,000

 

Total Backlog for fiscal 2017

 

$

32,793,000

 

$

47,668,000

 

 

STREAMLINE HEALTH SOLUTIONS, INC.

New Bookings

(Unaudited)

Table B

 

 

 

January 31, 2019

 

 

 

Three
Months
Ended

 

Twelve
Months
Ended

 

Systems Sales

 

$

140,000

 

$

1,935,000

 

Professional Services

 

393,000

 

2,521,000

 

Audit Services

 

141,000

 

251,000

 

Maintenance and Support

 

257,000

 

1,460,000

 

Software as a Service

 

192,000

 

2,054,000

 

Total 2018 bookings

 

$

1,123,000

 

$

8,221,000

 

Total 2017 bookings

 

$

1,192,000

 

$

4,756,000

 

 


 

Reconciliation of Non-GAAP Financial Measures

(Unaudited)

Table C

 

This press release contains a non-GAAP financial measure under the rules of the U.S. Securities and Exchange Commission for Adjusted EBITDA. This non-GAAP information supplements and is not intended to represent a measure of performance in accordance with disclosures required by generally accepted accounting principles. Non-GAAP financial measures are used internally to manage the business, such as in establishing an annual operating budget. Streamline Health’s management in its operating and financial decision-making uses non-GAAP financial measures because management believes these measures reflect ongoing business in a manner that allows meaningful period-to-period comparisons. Accordingly, the Company believes it is useful for investors and others to review both GAAP and non-GAAP measures in order to (a) understand and evaluate current operating performance and future prospects in the same manner as management does and (b) compare in a consistent manner the Company’s current financial results with past financial results. The primary limitations associated with the use of non-GAAP financial measures are that these measures may not be directly comparable to the amounts reported by other companies and they do not include all items of income and expense that affect operations. The Company’s management compensates for these limitations by considering the Company’s financial results and outlook as determined in accordance with GAAP and by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures in the tables attached to this press release. Streamline Health defines “adjusted EBITDA” as net earnings (loss) plus interest expense, tax expense, depreciation and amortization expense of tangible and intangible assets, stock-based compensation expense, significant non-recurring operating expenses, and transactional related expenses including: gains and losses on debt and equity conversions, associate severances and related restructuring expenses, associate inducements, and professional and advisory fees. A table illustrating this measure is included in this press release.

 

Reconciliation of net earnings (loss) to non-GAAP Adjusted EBITDA (in thousands, except share and per share data):

 

 

 

Three Months Ended,

 

Twelve Months Ended,

 

 

 

January 31,
2019

 

January 31,
2018

 

January 31,
2019

 

January 31,
2018

 

Adjusted EBITDA Reconciliation

 

 

 

 

 

 

 

 

 

Net Income (loss)

 

$

(3,095

)

$

38

 

$

(5,865

)

$

(3,099

)

Interest expense

 

52

 

114

 

384

 

475

 

Income tax benefit

 

(6

)

(92

)

 

(84

)

Depreciation

 

39

 

178

 

450

 

774

 

Amortization of capitalized software development costs

 

265

 

539

 

1,160

 

2,113

 

Amortization of intangible assets

 

232

 

239

 

937

 

1,161

 

Amortization of other costs

 

52

 

93

 

346

 

270

 

EBITDA

 

(2,461

)

1,109

 

(2,588

)

1,610

 

Share-based compensation expense

 

136

 

264

 

629

 

1,109

 

Impairment of long-lived assets

 

3,681

 

 

3,681

 

 

Loss (gain) on disposal of fixed assets

 

2

 

(1

)

7

 

(16

)

Non-cash valuation adjustments to assets and liabilities

 

55

 

(134

)

126

 

95

 

Loss on exit of operating lease

 

(334

)

 

1,034

 

 

Adjusted EBITDA

 

$

1,079

 

$

1,238

 

$

2,889

 

$

2,798

 

Adjusted EBITDA per diluted share

 

 

 

 

 

 

 

 

 

Loss per share — diluted

 

$

(0.16

)

$

0.00

 

$

(0.30

)

$

(0.16

)

Adjusted EBITDA per adjusted diluted share (1)

 

$

0.05

 

$

0.06

 

$

0.13

 

$

0.13

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average shares

 

19,676,686

 

22,420,293

 

19,540,980

 

19,090,899

 

Includable incremental shares — Adjusted EBITDA (2)

 

3,161,821

 

 

3,065,402

 

3,244,825

 

Adjusted diluted shares

 

22,838,507

 

22,420,293

 

22,606,382

 

22,335,724

 

 


(1)                            Adjusted EBITDA per adjusted diluted share for the Company’s common stock is computed using the more dilutive of the two-class method or the if-converted method.

(2)                            The number of incremental shares that would be dilutive under profit assumption, only applicable under a GAAP net loss. If GAAP profit is earned in the current period, no additional incremental shares are assumed.

 


GRAPHIC 3 g86422mm01i001.gif GRAPHIC begin 644 g86422mm01i001.gif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