Investor Relations

Financials

v3.3.0.814
Unaudited Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Sep. 30, 2015
Dec. 31, 2014
Current assets    
Cash $ 260 $ 1,616
Accounts receivable, net 4,907 10,354
Inventory, net 208 1,998
Deferred costs $ 2,104 2,532
Deferred tax assets 19
Prepaid expenses and other current assets $ 148 79
Assets of discontinued operations 1,829
Total current assets $ 7,627 18,427
Property and equipment, net 189 145
Other assets, net 33 109
Deferred costs, net of current portion 951 1,004
Goodwill $ 5,304 7,524
Intangible assets, net 1,414
Assets of discontinued operations 1,634
Total assets $ 14,104 30,257
Current liabilities    
Accounts payable 7,018 9,736
Accrued expenses and other current liabilities 2,528 2,028
Lines of credit 3,329 5,811
Current portion of debt 1,626 813
Due to related parties 170 73
Unearned revenue $ 3,273 5,915
Liabilities related to discontinued operations 1,993
Total current liabilities $ 17,944 26,369
Long term liabilities    
Unearned revenue, net of current portion $ 1,320 1,560
Debt, net of current portion and discount 1,580
Deferred tax liabilities $ 88 461
Warrant liability 82 519
Other long term liabilities $ 166 194
Liabilities related to discontinued operations 487
Total liabilities $ 19,600 $ 31,170
Commitments and contingencies
STOCKHOLDERS' DEFICIT    
Cumulative Convertible Preferred stock, $0.001 par value, 10,000,000 shares authorized, 1,547,845 shares issued and outstanding, including cumulative and imputed preferred dividends of $2,376 and $2,295, and with a liquidation preference of $14,663 and $13,640 at September 30, 2015 and December 31, 2014, respectively $ 12,903 $ 12,822
Common stock, $0.001 par value, 100,000,000 shares authorized, 12,883,446 issued and 12,729,563 outstanding as of September 30, 2015, and as of December 31, 2014 13 13
Additional paid-in capital 17,257 17,252
Treasury stock, 153,883 shares of common stock (205) (205)
Accumulated deficit (35,367) (30,292)
Unearned ESOP shares (369) (484)
Accumulated other comprehensive income 272 (19)
Total stockholders' deficit (5,496) (913)
Total liabilities and stockholders' deficit $ 14,104 $ 30,257
v3.3.0.814
Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
Income Statement [Abstract]        
Net sales $ 8,240 $ 11,608 $ 27,410 $ 37,809
Cost of sales 6,562 9,205 21,848 29,724
Gross profit 1,678 2,403 5,562 8,085
Selling, general and administrative expense $ 1,730 $ 2,419 6,160 $ 8,246
Goodwill and intangible asset impairment 3,047
Operating loss $ (52) $ (16) (3,645) $ (161)
Other expense:        
Interest expense 178 229 580 658
Fair market value adjustment of warrant liabilities (205) (88) (437) (254)
Other (income) expense, net 58 17 106 (12)
Total other (income) expense 31 158 249 392
Net loss from continuing operations, before income taxes (83) (174) (3,894) (553)
Benefit for income taxes from continuing operations (312) (307) (277) (327)
Net (loss) income from continuing operations $ 229 133 (3,617) (226)
Discontinued operations:        
Loss on sale of discontinued operations, net of tax     (89)  
Loss from discontinued operations, net of tax (696) (94) (469)
Net (loss) income $ 229 (563) (3,800) (695)
Cumulative and imputed dividends on Series A and B preferred stock $ (27) (27) $ (81) (81)
Cash and imputed dividends on Series D and E preferred stock (307) (921)
Accrued paid-in-kind dividends on Series D and Series E preferred stock $ (454)   $ (1,194)  
Net loss attributable to common shareholders $ (252) $ (897) $ (5,075) $ (1,697)
Basic and diluted net loss per common share:        
Continuing operations $ (0.02) $ (0.02) $ (0.39) $ (0.10)
Discontinued operations (0.05) (0.02) (0.04)
Net loss per share $ (0.02) $ (0.07) $ (0.41) $ (0.14)
Weighted average shares outstanding - Basic and diluted 12,480,524 12,369,840 12,453,055 12,342,371
Other comprehensive (loss) income, net of tax        
Net (loss) income $ 229 $ (563) $ (3,800) $ (695)
Foreign currency translation adjustment 272 291 (24)
Comprehensive (loss) income $ 501 $ (563) $ (3,509) $ (719)
v3.3.0.814
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Cash flows from operating activities:    
Net loss from continuing operations $ (3,617) $ (226)
Net loss from discontinued operations (183) $ (469)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Loss on sale of discontinued operations, net of tax 89
Depreciation and amortization 404 $ 996
Amortization of deferred financing costs and note discount 46 117
Employee and Director stock-based compensation 101 89
Change in fair value of warrants (437) (254)
ESOP compensation expense 20 37
Gain/loss on disposal (2) $ 2
Goodwill and intangible asset impairment charges 3,047
Allowance for doubtful accounts 1 $ (42)
Deferred taxes. net (306) (9)
Changes in operating assets and liabilities:    
Accounts receivable $ 5,408 2,925
Due from related party 184
Inventory, net $ 1,790 581
Deferred costs 479 710
Prepaid expenses and other current assets 6 (308)
Other assets, net 62 10
Accounts payable (2,701) (1,314)
Accrued expenses and other current liabilities (417) 164
Due to related parties 97 69
Unearned revenue (2,826) (2,177)
Operating activities from discontinued operations 616 1,126
Net cash provided by operating activities 1,677 2,211
Cash flows from investing activities    
Purchases of property and equipment (78) $ (42)
Proceeds from the sale of CMAC 302
Net cash provided by (used in) investing activities 224 $ (42)
Cash flows from financing activities    
(Repayments) borrowings from lines of credit, net (2,467) 165
Repayment of debt (527) (819)
Paid financing costs (100) (100)
Dividends paid $ (252) (499)
Payments for contingent acquisition liability (83)
Net cash used in financing activities $ (3,346) (1,336)
Effect on cash of foreign currency translation 89 (3)
Net (decrease) increase in cash (1,356) 830
Cash at beginning of period 1,616 641
Cash at end of period 260 1,471
Supplemental disclosures of cash flow information:    
Interest paid 451 634
Income taxes paid 67 32
Supplemental disclosure of non-cash financing activities:    
Accrued and imputed dividends on preferred stock 81 $ 1,002
Accrued PIK dividends on Series D and Series E preferred stock 1,194  
Liabilities forgiven by CMAC purchaser $ 348