XML 55 R41.htm IDEA: XBRL DOCUMENT v3.8.0.1
Guarantor and Non-Guarantor Financial Statements (Tables)
 12 Months Ended
Mar. 31, 2018
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Condensed Balance Sheet
Consolidated Balance Sheet
as of March 31, 2018
(Unaudited)
 
 
 
 
 
 
 
 
 
(dollars in thousands)
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Consolidated Total
ASSETS
 
 
 
 
 
 
 
 
Current assets
 
 
 
 
 
 
 
 
Cash
 
501

 
11,800

 
419

 
12,720

Restricted cash
 
156

 
175

 
—

 
331

Accounts receivable, net of allowance of $512
 
—

 
16,777

 
273

 
17,050

Deposits
 
34

 
113

 
4

 
151

Prepaid expenses and other current assets
 
330

 
406

 
14

 
750

Current assets held for disposal
 
—

 
8,610

 
143

 
8,753

Total current assets
 
1,021

 
37,881

 
853

 
39,755

Property and equipment, net
 
257

 
2,485

 
15

 
2,757

Deferred tax assets
 
596

 
—

 
—

 
596

Intangible assets, net
 
—

 
1,231

 
—

 
1,231

Goodwill
 
—

 
41,268

 
1,000

 
42,268

TOTAL ASSETS
 
1,874

 
82,865

 
1,868

 
86,607

INTERCOMPANY
 
 
 
 
 
 
 
 
Intercompany payable/receivable, net
 
117,873

 
(114,234
)
 
(3,639
)
 
—

LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
 
Accounts payable
 
1,031

 
18,841

 
23

 
19,895

Accrued license fees and revenue share
 
—

 
7,989

 
243

 
8,232

Accrued compensation
 
2,285

 
661

 
20

 
2,966

Short-term debt, net of debt issuance costs and discounts of $205
 
1,445

 
—

 
—

 
1,445

Other current liabilities
 
911

 
231

 
—

 
1,142

Current liabilities held for disposal
 
 
 
12,246

 
480

 
12,726

Total current liabilities
 
5,672

 
39,968

 
766

 
46,406

Convertible notes, net of debt issuance costs and discounts of $1,827
 
3,873

 
—

 
—

 
3,873

Convertible note embedded derivative liability
 
4,676

 
—

 
—

 
4,676

Warrant liability
 
3,980

 
—

 
—

 
3,980

Other non-current liabilities
 
—

 
—

 
—

 
—

Non-current liabilities held for disposal
 
—

 
—

 
—

 
—

Total liabilities
 
18,201

 
39,968

 
766

 
58,935

Stockholders' equity
 
 
 
 
 
 
 
 
Preferred stock
 
 
 
 
 
 
 
 
Series A convertible preferred stock at $0.0001 par value; 2,000,000 shares authorized, 100,000 issued and outstanding (liquidation preference of $1,000)
 
100

 
—

 
—

 
100

Common stock
 
 
 
 
 
 
 
 
$0.0001 par value: 200,000,000 shares authorized; 76,843,278 issued and 76,108,822 outstanding at March 31, 2018.
 
10

 
—

 
—

 
10

Additional paid-in capital
 
318,066

 
—

 
—

 
318,066

Treasury stock (754,599 shares at December 31, 2017)
 
(71
)
 
—

 
—

 
(71
)
Accumulated other comprehensive loss
 
(15
)
 
(621
)
 
311

 
(325
)
Accumulated deficit
 
(216,544
)
 
(70,716
)
 
(2,848
)
 
(290,108
)
Total stockholders' equity
 
101,546

 
(71,337
)
 
(2,537
)
 
27,672

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 
119,747

 
(31,369
)
 
(1,771
)
 
86,607

Consolidated Balance Sheet
as of March 31, 2017
(Unaudited)
 
 
 
 
 
 
 
 
 
(dollars in thousands)
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Consolidated Total
ASSETS
 
 
 
 
 
 
 
 
Current assets
 
 
 
 
 
 
 
 
Cash
 
257

 
5,335

 
557

 
6,149

Restricted cash
 
156

 
175

 
—

 
331

Accounts receivable, net of allowance of $228
 
—

 
10,131

 
532

 
10,663

Deposits
 
—

 
121

 
—

 
121

Prepaid expenses and other current assets
 
282

 
165

 
1

 
448

Current assets held for disposal
 
—

 
5,671

 
282

 
5,953

Total current assets
 
695

 
21,598

 
1,372

 
23,665

Property and equipment, net
 
64

 
1,925

 
17

 
2,006

Cost method investment
 
—

 
—

 
—

 
—

Deferred tax assets
 
352

 
—

 
—

 
352

Intangible assets, net
 
—

 
2,647

 
—

 
2,647

Goodwill
 
—

 
41,268

 
1,000

 
42,268

Long-term assets held for disposal
 
—

 
36,642

 
—

 
36,642

TOTAL ASSETS
 
1,111

 
104,080

 
2,389

 
107,580

INTERCOMPANY
 
 
 
 
 
 
 
 
Intercompany payable/receivable, net
 
123,801

 
(119,493
)
 
(4,308
)
 
—

LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
 
Accounts payable
 
1,022

 
10,749

 
16

 
11,787

Accrued license fees and revenue share
 
—

 
2,979

 
32

 
3,011

Accrued compensation
 
33

 
487

 
—

 
520

Other current liabilities
 
768

 
273

 
—

 
1,041

Current liabilities held for disposal
 
—

 
14,097

 
318

 
14,415

Total current liabilities
 
1,823

 
28,585

 
366

 
30,774

Convertible notes, net of debt issuance costs and discounts of $6,315
 
9,685

 
—

 
—

 
9,685

Other non-current liabilities
 
697

 
—

 
—

 
697

Convertible note embedded derivative liability
 
3,218

 
—

 
—

 
3,218

Warrant liability
 
1,076

 
—

 
—

 
1,076

Non-current liabilities held for disposal
 
—

 
85

 
—

 
85

Total liabilities
 
16,499

 
28,670

 
366

 
45,535

Stockholders' equity
 
 
 
 
 
 
 
 
Preferred stock
 
 
 
 
 
 
 
 
Series A convertible preferred stock at $0.0001 par value; 2,000,000 shares authorized, 100,000 issued and outstanding (liquidation preference of $1,000)
 
100

 
—

 
—

 
100

Common stock
 
 
 
 
 
 
 
 
$0.0001 par value: 200,000,000 shares authorized; 67,329,262 issued and 66,594,806 outstanding at March 31, 2017
 
8

 
—

 
—

 
8

Additional paid-in capital
 
299,580

 
—

 
—

 
299,580

Treasury stock (754,599 shares at March 31, 2017)
 
(71
)
 
—

 
—

 
(71
)
Accumulated other comprehensive loss
 
(18
)
 
(613
)
 
310

 
(321
)
Accumulated deficit
 
(191,186
)
 
(43,470
)
 
(2,595
)
 
(237,251
)
Total stockholders' equity
 
108,413

 
(44,083
)
 
(2,285
)
 
62,045

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 
124,912

 
(15,413
)
 
(1,919
)
 
107,580
Condensed Income Statement
Consolidated Statement of Operations and Comprehensive Loss
For the year ended March 31, 2018
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
(dollars in thousands)
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Elimination
 
Consolidated Total
Net revenues
 
—

 
135,687

 
905

 
(61,841
)
 
74,751

Cost of revenues
 
 
 
 
 
 
 
 
 
 
License fees and revenue share
 
—

 
109,573

 
235

 
(61,841
)
 
47,967

Other direct cost of revenues
 
—

 
1,729

 
—

 
—

 
1,729

Total cost of revenues
 
—

 
111,302

 
235

 
(61,841
)
 
49,696

Gross profit
 
—

 
24,385

 
670

 
—

 
25,055

Operating expenses
 
 
 
 
 
 
 
 
 
 
Product development
 
46

 
9,448

 
159

 
—

 
9,653

Sales and marketing
 
630

 
5,007

 
450

 
—

 
6,087

General and administrative
 
10,971

 
3,767

 
386

 
—

 
15,124

Total operating expenses
 
11,647

 
18,222

 
995

 
—

 
30,864

Income / (loss) from operations
 
(11,647
)
 
6,163

 
(325
)
 
—

 
(5,809
)
Interest and other income / (expense), net
 
 
 
 
 
 
 
 
 
 
Interest income / (expense), net
 
(2,071
)
 
4

 
—

 
—

 
(2,067
)
Foreign exchange transaction gain / (loss)
 
2

 
(159
)
 
9

 
—

 
(148
)
Change in fair value of convertible note embedded derivative liability
 
(7,559
)
 
—

 
—

 
—

 
(7,559
)
Change in fair value of warrant liability
 
(3,208
)
 
—

 
—

 
—

 
(3,208
)
Gain / (loss) on extinguishment of debt
 
(1,787
)
 
2

 
—

 
—

 
(1,785
)
Other income / (expense)
 
3

 
(75
)
 
—

 
—

 
(72
)
Total interest and other income / (expense), net
 
(14,620
)
 
(228
)
 
9

 
—

 
(14,839
)
Income / (loss) from operations before income taxes
 
(26,267
)
 
5,935

 
(316
)
 
—

 
(20,648
)
Income tax benefit
 
(951
)
 
—

 
—

 
—

 
(951
)
Net income / (loss) from operations, net of taxes
 
(25,316
)
 
5,935

 
(316
)
 
—

 
(19,697
)
Discontinued operations, net of taxes
 
 
 
 
 
 
 
 
 
 
Income / (loss) from operations of discontinued components
 
—

 
(33,168
)
 
8

 
—

 
(33,160
)
Net income / (loss) from discontinued operations, net of taxes
 
—

 
(33,168
)
 
8

 
—

 
(33,160
)
Net loss
 
(25,316
)
 
(27,233
)
 
(308
)
 
—

 
(52,857
)
Other comprehensive loss
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustment
 
—

 
(4
)
 
—

 
—

 
(4
)
Comprehensive loss
 
(25,316
)
 
(27,237
)
 
(308
)
 
—

 
(52,861
)
Consolidated Statement of Operations and Comprehensive Loss
For the year ended March 31, 2017
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
(dollars in thousands)
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Elimination
 
Consolidated Total
Net revenues
 
—

 
70,703

 
1,126

 
(31,622
)
 
40,207

Cost of revenues
 
 
 
 
 
 
 
 
 
 
License fees and revenue share
 
—

 
57,936

 
60

 
(31,622
)
 
26,374

Other direct cost of revenues
 
—

 
1,518

 
1,057

 
—

 
2,575

Total cost of revenues
 
—

 
59,454

 
1,117

 
(31,622
)
 
28,949

Gross profit
 
—

 
11,249

 
9

 
—

 
11,258

Operating expenses
 
 
 
 
 
 
 
 
 
 
Product development
 
30

 
9,171

 
82

 
—

 
9,283

Sales and marketing
 
452

 
3,623

 
105

 
—

 
4,180

General and administrative
 
11,009

 
3,889

 
(132
)
 
—

 
14,766

Total operating expenses
 
11,491

 
16,683

 
55

 
—

 
28,229

Loss from operations
 
(11,491
)
 
(5,434
)
 
(46
)
 
—

 
(16,971
)
Interest and other income / (expense), net
 
 
 
 
 
 
 
 
 
 
Interest expense, net
 
(1,329
)
 
(1,296
)
 
—

 
—

 
(2,625
)
Foreign exchange transaction loss
 
—

 
(22
)
 
(4
)
 
—

 
(26
)
Change in fair value of convertible note embedded derivative liability
 
475

 
—

 
—

 
—

 
475

Change in fair value of warrant liability
 
147

 
—

 
—

 
—

 
147

Loss on extinguishment of debt
 
—

 
(293
)
 
—

 
—

 
(293
)
Other income / (expense)
 
58

 
(47
)
 
—

 
—

 
11

Total interest and other income / (expense), net
 
(649
)
 
(1,658
)
 
(4
)
 
—

 
(2,311
)
Loss from operations before income taxes
 
(12,140
)
 
(7,092
)
 
(50
)
 
—

 
(19,282
)
Income tax benefit
 
(144
)
 
—

 
—

 
—

 
(144
)
Net loss from operations, net of taxes
 
(11,996
)
 
(7,092
)
 
(50
)
 
—

 
(19,138
)
Discontinued operations, net of taxes
 
 
 
 
 
 
 
 
 
 
Income / (loss) from operations of discontinued components
 
—

 
(5,237
)
 
111

 
—

 
(5,126
)
Net income / (loss) from discontinued operations, net of taxes
 
—

 
(5,237
)
 
111

 
—

 
(5,126
)
Net income / (loss)
 
(11,996
)
 
(12,329
)
 
61

 
—

 
(24,264
)
Other comprehensive loss
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustment
 
—

 
(119
)
 
—

 
—

 
(119
)
Comprehensive income / (loss)
 
(11,996
)
 
(12,448
)
 
61

 
—

 
(24,383
)
Consolidated Statement of Operations and Comprehensive Loss
For the year ended March 31, 2016
(Unaudited)
 
 
 
 
 
 
 
 
 
(dollars in thousands)
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Consolidated Total
Net revenues
 
—

 
39,432

 
124

 
22,251

Cost of revenues
 
 
 
 
 
 
 
 
License fees and revenue share
 
—

 
30,619

 
—

 
13,314

Other direct cost of revenues
 
—

 
9,775

 
(2,298
)
 
7,477

Total cost of revenues
 
—

 
40,394

 
(2,298
)
 
20,791

Gross profit / (loss)
 
—

 
(962
)
 
2,422

 
1,460

Operating expenses
 
 
 
 
 
 
 
 
Product development
 
(582
)
 
4,943

 
522

 
4,883

Sales and marketing
 
46

 
2,718

 
144

 
2,908

General and administrative
 
11,457

 
4,182

 
564

 
16,203

Total operating expenses
 
10,921

 
11,843

 
1,230

 
23,994

Income / (loss) from operations
 
(10,921
)
 
(12,805
)
 
1,192

 
(22,534
)
Interest and other income / (expense), net
 
 
 
 
 
 
 
 
Interest income / (expense), net
 
1

 
(1,717
)
 
—

 
(1,716
)
Foreign exchange transaction loss
 
(6
)
 
(12
)
 
(6
)
 
(24
)
Other income / (expense)
 
18

 
(22
)
 
—

 
(4
)
Total interest and other income / (expense), net
 
13

 
(1,751
)
 
(6
)
 
(1,744
)
Income / (loss) from operations before income taxes
 
(10,908
)
 
(14,556
)
 
1,186

 
(24,278
)
Income tax provision
 
130

 
84

 
—

 
214

Net income / (loss) from operations, net of taxes
 
(11,038
)
 
(14,640
)
 
1,186

 
(24,492
)
Discontinued operations, net of taxes
 
 
 
 
 
 
 
 
Loss from operations of discontinued components
 
—

 
(923
)
 
(2,617
)
 
(3,540
)
Net loss from discontinued operations, net of taxes
 
—

 
(923
)
 
(2,617
)
 
(3,540
)
Net loss
 
(11,038
)
 
(15,563
)
 
(1,431
)
 
(28,032
)
Other comprehensive loss
 
 
 
 
 
 
 
 
Foreign currency translation adjustment
 
—

 
(150
)
 
—

 
(150
)
Comprehensive loss
 
(11,038
)
 
(15,713
)
 
(1,431
)
 
(28,182
)
Condensed Cash Flow Statement
Consolidated Statement of Cash Flows
For the year ended March 31, 2018
(Unaudited)
 
 
 
 
 
 
 
 
 
(dollars in thousands)
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Consolidated Total
Cash flows from operating activities
 
 
 
 
 
 
 
 
Net loss
 
(25,316
)
 
5,935

 
(316
)
 
(19,697
)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
 
 
 
 
 
Depreciation and amortization
 
21

 
2,629

 
10

 
2,660

Change in allowance for doubtful accounts
 
—

 
299

 
—

 
299

Amortization of debt discount and debt issuance costs
 
1,018

 
—

 
—

 
1,018

Stock-based compensation
 
2,844

 
(189
)
 
—

 
2,655

Stock-based compensation for services rendered
 
323

 
—

 
—

 
323

Change in fair value of convertible note embedded derivative liability
 
7,559

 
—

 
—

 
7,559

Change in fair value of warrant liability
 
3,208

 
—

 
—

 
3,208

Loss on extinguishment of debt
 
1,787

 
(2
)
 
—

 
1,785

(Increase) / decrease in assets:
 
 
 
 
 
 
 
 
Accounts receivable
 
—

 
(7,094
)
 
23

 
(7,071
)
Deposits
 
(34
)
 
8

 
(4
)
 
(30
)
Deferred tax assets
 
(244
)
 
—

 
—

 
(244
)
Prepaid expenses and other current assets
 
(85
)
 
(209
)
 
(12
)
 
(306
)
Increase / (decrease) in liabilities:
 
 
 
 
 
 
 
 
Accounts payable
 
8

 
8,092

 
8

 
8,108

Accrued license fees and revenue share
 
—

 
5,010

 
211

 
5,221

Accrued compensation
 
2,252

 
173

 
20

 
2,445

Accrued interest
 
(26
)
 
—

 
—

 
(26
)
Other current liabilities
 
6,078

 
(5,381
)
 
(619
)
 
78

Other non-current liabilities
 
(679
)
 
(16
)
 
—

 
(695
)
Net cash provided by / (used in) operating activities - continuing operations
 
(1,286
)
 
9,255

 
(679
)
 
7,290

Net cash provided by / (used in) operating activities - discontinued operations
 
—

 
(873
)
 
549

 
(324
)
Net cash used in operating activities
 
(1,286
)
 
8,382

 
(130
)
 
6,966

 
 
 
 
 
 
 
 
 
Cash flows from investing activities
 
 
 
 
 
 
 
 
Capital expenditures
 
(213
)
 
(1,770
)
 
(9
)
 
(1,992
)
Net cash provided by / (used in) investing activities - continuing operations
 
(213
)
 
(1,770
)
 
(9
)
 
(1,992
)
Net cash provided by / (used in) investing activities - discontinued operations
 
—

 
(142
)
 
—

 
(142
)
Net cash used in investing activities
 
(213
)
 
(1,912
)
 
(9
)
 
(2,134
)
 
 
 
 
 
 
 
 
 
Cash flows from financing activities
 
 
 
 
 
 
 
 
Proceeds from short-term borrowings
 
2,500

 
—

 
—

 
2,500

Repayment of debt obligations
 
(1,098
)
 
—

 
—

 
(1,098
)
Payment for debt issuance costs
 
(346
)
 
—

 
—

 
(346
)
Options exercised
 
337

 
—

 
—

 
337

Warrant exercised
 
350

 
—

 
—

 
350

Net cash provided in financing activities
 
1,743

 
—

 
—

 
1,743

 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash
 
—

 
(5
)
 
1

 
(4
)
 
 
 
 
 
 
 
 
 
Net change in cash
 
244

 
6,465

 
(138
)
 
6,571

 
 
 
 
 
 
 
 
 
Cash, beginning of period
 
257

 
5,335

 
557

 
6,149

 
 
 
 
 
 
 
 
 
Cash, end of period
 
501

 
11,800

 
419

 
12,720


Consolidated Statement of Cash Flows
For the year ended March 31, 2017
(Unaudited)
 
 
 
 
 
 
 
 
 
(dollars in thousands)
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Consolidated Total
Cash flows from operating activities
 
 
 
 
 
 
 
 
Net loss
 
(11,996
)
 
(7,092
)
 
(50
)
 
(19,138
)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
 
 
 
 
 
Depreciation and amortization
 
14

 
663

 
1,929

 
2,606

Change in allowance for doubtful accounts
 
—

 
33

 
15

 
48

Amortization of debt discount and debt issuance costs
 
1,256

 
—

 
—

 
1,256

Stock-based compensation
 
3,748

 
(386
)
 
—

 
3,362

Stock-based compensation for services rendered
 
398

 
—

 
—

 
398

Impairment of intangible assets
 
—

 
—

 
757

 
757

Change in fair value of convertible note embedded derivative liability
 
(475
)
 
—

 
—

 
(475
)
Change in fair value of warrant liability
 
(147
)
 
—

 
—

 
(147
)
Loss on extinguishment of debt
 
—

 
293

 
—

 
293

(Increase) / decrease in assets:
 
 
 
 
 
 
 
 
Restricted cash transferred to / (from) operating cash
 
(156
)
 
(177
)
 
2

 
(331
)
Accounts receivable
 
25

 
(3,076
)
 
(831
)
 
(3,882
)
Deposits
 
—

 
(57
)
 
80

 
23

Deferred tax assets
 
148

 
—

 
—

 
148

Prepaid expenses and other current assets
 
(80
)
 
150

 
11

 
81

Increase / (decrease) in liabilities:
 
 
 
 
 
 
 
 
Accounts payable
 
(233
)
 
4,701

 
(34
)
 
4,434

Accrued license fees and revenue share
 
—

 
(21
)
 
17

 
(4
)
Accrued compensation
 
575

 
(94
)
 
(96
)
 
385

Accrued interest
 
133

 
(97
)
 
—

 
36

Other current liabilities
 
(1,091
)
 
270

 
(502
)
 
(1,323
)
Other non-current liabilities
 
(31
)
 
(85
)
 
—

 
(116
)
Intercompany movement of cash
 
(15,146
)
 
16,684

 
(1,538
)
 
—

Net cash provided by / (used in) operating activities - continuing operations
 
(23,058
)
 
11,709

 
(240
)
 
(11,589
)
Net cash provided by / (used in) operating activities - discontinued operations
 
—

 
4,067

 
527

 
4,594

Net cash used in operating activities
 
(23,058
)
 
15,776

 
287

 
(6,995
)
 
 
 
 
 
 
 
 
 
Cash flows from investing activities
 
 
 
 
 
 
 
 
Capital expenditures
 
—

 
(1,418
)
 
—

 
(1,418
)
Proceeds from sale of cost method investment in Sift
 
999

 
—

 
—

 
999

Net cash provided by / (used in) investing activities - continuing operations
 
999

 
(1,418
)
 
—

 
(419
)
Net cash provided by / (used in) investing activities - discontinued operations
 
—

 
(177
)
 
—

 
(177
)
Net cash used in investing activities
 
999

 
(1,595
)
 
—

 
(596
)
 
 
 
 
 
 
 
 
 
Cash flows from financing activities
 
 
 
 
 
 
 
 
Cash received from issuance of convertible notes
 
16,000

 
—

 
—

 
16,000

Repayment of debt obligations
 
—

 
(11,000
)
 
—

 
(11,000
)
Payment for debt issuance costs
 
(407
)
 
(1,976
)
 
—

 
(2,383
)
Options exercised
 
11

 
—

 
—

 
11

Net cash provided in financing activities
 
15,604

 
(12,976
)
 
—

 
2,628

 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash
 
—

 
(336
)
 
217

 
(119
)
 
 
 
 
 
 
 
 
 
Net change in cash
 
(6,455
)
 
869

 
504

 
(5,082
)
 
 
 
 
 
 
 
 
 
Cash, beginning of period
 
6,712

 
4,466

 
53

 
11,231

 
 
 
 
 
 
 
 
 
Cash, end of period
 
257

 
5,335

 
557

 
6,149

Consolidated Statement of Cash Flows
For the year ended March 31, 2016
(Unaudited)
 
 
 
 
 
 
 
 
 
(dollars in thousands)
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Consolidated Total
Cash flows from operating activities
 
 
 
 
 
 
 
 
Net loss
 
(11,038
)
 
(14,640
)
 
1,186

 
(24,492
)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
 
 
 
 
 
Depreciation and amortization
 
9

 
9,707

 
(1,843
)
 
7,873

Change in allowance for doubtful accounts
 
—

 
(495
)
 
—

 
(495
)
Amortization of debt discount and debt issuance costs
 
470

 
—

 
—

 
470

Stock-based compensation
 
5,095

 
—

 
—

 
5,095

Stock-based compensation for services rendered
 
867

 
—

 
—

 
867

Stock issued for settlement of liability
 
283

 
—

 
—

 
283

(Increase) / decrease in assets:
 
 
 
 
 
 
 
 
Restricted cash transferred to / (from) operating cash
 
200

 
—

 
—

 
200

Accounts receivable
 
(24
)
 
(4,988
)
 
(85
)
 
(5,097
)
Deposits
 
9

 
74

 
(118
)
 
(35
)
Deferred tax assets
 
(418
)
 
—

 
—

 
(418
)
Prepaid expenses and other current assets
 
(171
)
 
111

 
39

 
(21
)
Increase / (decrease) in liabilities:
 
 
 
 
 
 
 
 
Accounts payable
 
(797
)
 
7,821

 
(3,644
)
 
3,380

Accrued license fees and revenue share
 
—

 
2,743

 
(30
)
 
2,713

Accrued compensation
 
(1,070
)
 
1,316

 
(1,346
)
 
(1,100
)
Accrued interest
 
—

 
12

 
—

 
12

Other current liabilities
 
(398
)
 
262

 
(670
)
 
(806
)
Intercompany movement of cash
 
(4,014
)
 
(2,475
)
 
6,489

 
—

Net cash provided by / (used in) operating activities - continuing operations
 
(10,997
)
 
(552
)
 
(22
)
 
(11,571
)
Net cash provided by / (used in) operating activities - discontinued operations
 
—

 
4,515

 
(13
)
 
4,502

Net cash used in operating activities
 
(10,997
)
 
3,963

 
(35
)
 
(7,069
)
 
 
 
 
 
 
 
 
 
Cash flows from investing activities
 
 
 
 
 
 
 
 
Capital expenditures
 
—

 
(1,549
)
 
—

 
(1,549
)
Net cash proceeds from cost method investment in Sift
 
875

 
—

 
—

 
875

Net cash provided by / (used in) investing activities - continuing operations
 
875

 
(1,549
)
 
—

 
(674
)
Net cash used in investing activities
 
875

 
(1,549
)
 
—

 
(674
)
 
 
 
 
 
 
 
 
 
Cash flows from financing activities
 
 
 
 
 
 
 
 
Repayment of debt obligations
 
—

 
(600
)
 
—

 
(600
)
Options exercised
 
51

 
—

 
—

 
51

Stock issued for cash in stock offering, net
 
12,627

 
—

 
—

 
12,627

Net cash provided in financing activities
 
12,678

 
(600
)
 
—

 
12,078

 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash
 
—

 
(173
)
 
—

 
(173
)
 
 
 
 
 
 
 
 
 
Net change in cash
 
2,556

 
1,641

 
(35
)
 
4,162

 
 
 
 
 
 
 
 
 
Cash, beginning of period
 
4,156

 
2,825

 
88

 
7,069

 
 
 
 
 
 
 
 
 
Cash, end of period
 
6,712

 
4,466

 
53

 
11,231