Delaware
(State or other
jurisdiction of incorporation or organization)
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87-0543981
(IRS Employer
Identification No.)
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Title of each class
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Trading Symbol(s)
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Name of exchange on which registered
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Common
Stock, par value $0.0001 per share
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TRCK
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OTCQX
Marketplace
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Exhibit No.
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Description
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99.1
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Press Release,
dated February 13, 2020.
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TRACK
GROUP, INC.
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Date: February 13, 2020
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By:
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/s/ Peter K.
Poli
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Peter K. Poli
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Chief Financial Officer
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5th Avenue
Station
200 E. 5thAvenue, Suite
100
Naperville, IL
60563
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877.260.2010
trackgrp.com
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Actual
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Outlook
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FY
2018
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FY
2019
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FY
2020
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Revenue:
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$30.6M
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$34.0M
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$36-40M
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Adjusted
EBITDA Margin:
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19.2%
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21.9%
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21-26%
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(Unaudited)
December
31,
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September
30,
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Assets
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2019
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2019
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Current assets:
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Cash
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$8,493,550
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$6,896,711
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Accounts
receivable, net of allowance for doubtful accounts of $2,556,393
and $2,454,281, respectively
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5,321,396
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6,763,236
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Prepaid expense,
deposits and right of use assets
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1,692,887
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1,339,465
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Inventory, net of
reserves of $62,147 and $26,934, respectively
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442,570
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274,501
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Total current
assets
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15,950,403
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15,273,913
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Property and
equipment, net of accumulated depreciation of $2,316,172 and
$2,248,913, respectively
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636,619
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675,037
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Monitoring
equipment, net of accumulated amortization of $6,325,027 and
$6,322,768, respectively
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2,568,379
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2,624,900
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Intangible assets,
net of accumulated amortization of $14,729,536 and $14,157,090,
respectively
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21,829,868
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21,955,679
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Goodwill
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8,227,025
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8,187,911
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Deferred tax
asset
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526,833
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540,563
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Other
assets
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451,696
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124,187
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Total
assets
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$50,190,823
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$49,382,190
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Liabilities
and Stockholders’ Equity (Deficit)
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Current liabilities:
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Accounts
payable
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2,616,049
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2,628,003
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Accrued
liabilities
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14,607,777
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13,828,696
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Current portion of
long-term debt
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33,818,587
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33,827,689
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Total current
liabilities
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51,042,413
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50,284,388
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Long-term
liabilities
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327,644
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-
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Total
liabilities
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51,370,057
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50,284,388
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Commitments and
contingencies
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-
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-
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Stockholders’
equity (deficit):
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Common stock,
$0.0001 par value: 30,000,000 shares authorized; 11,414,150 and
11,401,650 shares outstanding, respectively
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1,141
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1,140
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Series A
Convertible Preferred stock, $0.0001 par value: 1,200,000 shares
authorized; 0 shares outstanding
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-
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-
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Paid in
capital
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302,270,242
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302,250,556
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Accumulated
deficit
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(302,384,917)
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(302,152,292)
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Accumulated other
comprehensive loss
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(1,065,700)
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(1,001,602)
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Total equity
(deficit)
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(1,179,234)
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(902,198)
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Total liabilities
and stockholders’ equity (deficit)
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$50,190,823
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$49,382,190
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Three
Months Ended December 31,
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2019
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2018
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Revenue:
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Monitoring and
other related services
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$8,268,423
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$8,060,328
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Product sales and
other
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152,408
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151,207
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Total
revenue
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8,420,831
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8,211,535
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Cost
of revenue:
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Monitoring,
products and other related services
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3,266,909
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3,100,193
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Depreciation &
amortization included in cost of revenue
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487,442
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478,289
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Total cost of
revenue
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3,754,351
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3,578,482
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Gross
profit
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4,666,480
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4,633,053
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Operating
expense:
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General &
administrative
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3,011,854
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3,422,272
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Selling &
marketing
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541,549
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503,930
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Research &
development
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296,155
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248,865
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Depreciation &
amortization
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515,939
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514,981
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Total operating
expense
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4,365,497
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4,690,048
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Operating
income (loss)
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300,983
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(56,995)
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Other
income (expense):
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Interest expense,
net
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(602,533)
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(601,239)
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Currency exchange
gain (loss)
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143,308
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(932,677)
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Total
other expense
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(459,225)
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(1,533,916)
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Loss
before income taxes
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(158,242)
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(1,590,911)
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Income
tax expense
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74,383
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144,007
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Net
loss attributable to common stockholders
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(232,625)
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(1,734,918)
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Foreign currency
translation adjustments
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(64,098)
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96,673
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Comprehensive
loss
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$(296,723)
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$(1,638,245)
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Net loss per common
share, basic and diluted
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$(0.02)
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$(0.16)
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Weighted average
common shares outstanding, basic and diluted
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11,411,704
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11,101,650
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Three
Months Ended December
31,
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2019
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2018
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Non-GAAP
Adjusted EBITDA
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Net
loss attributable to common shareholders
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$(233)
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$(1,735)
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Interest expense,
net
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603
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601
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Depreciation and
amortization
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1,003
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993
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Income taxes
(1)
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74
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144
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Board compensation
and stock-based compensation
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95
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158
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Foreign exchange
expense
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(143)
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933
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Other charges, net
(2)
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374
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624
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Non
GAAP Adjusted EBITDA
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$1,773
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$1,718
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Non
GAAP Adjusted EBITDA, percent of revenue
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21.1%
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20.9%
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Weighted average
common shares outstanding
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11,411,704
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11,101,650
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Non-GAAP
earnings per share
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$0.16
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$0.15
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