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): October 24, 2019

 

Smith Micro Software, Inc.

(Exact name of Registrant as Specified in Its Charter)

 

 

Delaware

001-35525

33-0029027

(State or Other Jurisdiction

of Incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

 

5800 Corporate Drive

Pittsburgh, PA

 

15237

(Address of Principal Executive Offices)

 

(Zip Code)

Registrant’s Telephone Number, Including Area Code: (412) 837-5300

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

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 (see General Instructions A.2. below):

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

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

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

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

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, par value $0.001 per share

 

SMSI

 

NASDAQ

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 

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. 

 

 

 

 


 

Item 2.02.Results of Operations and Financial Condition

 

On October 24, 2019, Smith Micro Software, Inc. issued a press release announcing its financial results for the three and nine months ended September 30, 2019. A copy of the press release is hereby furnished to the Securities and Exchange Commission as Exhibit 99.1 and incorporated by reference herein.

In accordance with General Instruction B.2 of Form 8-K, the information in this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section.

Item 9.01.Financial Statements and Exhibits.

(d)

Exhibits

 

Exhibit

 

Description

 

 

 

99.1

 

Press Release issued on October 24, 2019

 

 


 

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 thereunto duly authorized.

 

 

 

Smith Micro Software, Inc.

 

 

 

 

Date:  October 24, 2019

 

By:

/s/ Timothy C. Huffmyer

 

 

 

Timothy C. Huffmyer

 

 

 

Vice President and Chief Financial Officer

 

 

smsi-ex991_6.htm

EXHIBIT 99.1

 

 

 

IR INQUIRIES:

Charles Messman

Investor Relations

949-362-5800

IR@smithmicro.com

 

 

Smith Micro Reports Third Quarter 2019 Financial Results

Achieved Revenue of $11.8 Million, Net Income of

$3.5 million, and GAAP Diluted Earnings per Share of $0.09

 

 

PITTSBURGH, PA, October 24, 2019 – Smith Micro Software, Inc. (NASDAQ: SMSI) (“Smith Micro” or the “Company”) today reported financial results for its third quarter ended September 30, 2019.

“I am pleased to report a very solid third quarter for the Company. We delivered strong revenue growth, profits, and significant cash flow from operations during the quarter,” said William W. Smith, Jr., President and CEO of Smith Micro. “It is an exciting time at the Company, as we have achieved excellent results during the first nine months of this fiscal year and believe we are well positioned to finish the year strong, allowing us to enter 2020 full steam ahead.”

Third Quarter 2019 Financial Results:

Smith Micro reported revenue of $11.8 million for the third quarter ended September 30, 2019, compared to $6.5 million reported in the third quarter ended September 30, 2018.

Third quarter 2019 gross profit was $10.8 million compared to $5.5 million reported in the third quarter of 2018.

Gross profit as a percentage of revenue was 91 percent for the third quarter of 2019 compared to 85 percent for the third quarter of 2018.

Generally accepted accounting principles in the United States (“GAAP”) net income available to common stockholders for the third quarter of 2019 was $3.5 million, or $0.10 basic earnings per share and $0.09

 


Smith Micro Software Third Quarter 2019 Financial Results

Page 2

 

diluted earnings per share, compared to a GAAP net loss available to common stockholders of $1.0 million, or $0.04 loss per share, for the third quarter of 2018.

Non-GAAP net income (which excludes stock-based compensation, amortization of intangibles, debt issuance and discount costs, fair value adjustments, preferred stock dividends, and a normalized tax expense) for the third quarter of 2019 was $3.2 million, or $0.09 basic earnings per share and $0.08 diluted earnings per share, compared to a non-GAAP net income of $241 thousand, or $0.01 earnings per share, for the third quarter of 2018.

Third Quarter Year-to-Date 2019 Financial Results:

Smith Micro reported revenue of $31.1 million for the nine months ended September 30, 2019, compared to $18.9 million reported for the nine months ended September 30, 2018.

Gross profit for the nine months ended September 30, 2019 was $28.2 million compared to $15.5 million reported for the same period in 2018.

Gross profit as a percentage of revenue was 91 percent for the nine months ended September 30, 2019 compared to 82 percent for the nine months ended September 30, 2018.

GAAP net income available to common stockholders for the nine months ended September 30, 2019 was $6.9 million, or $0.21 basic earnings per share and $0.20 diluted earnings per share, compared to a GAAP net loss available to common stockholders of $5.9 million, or $0.28 loss per share, for the same period in 2018.

Non-GAAP net income (which excludes stock-based compensation, amortization of intangibles, debt issuance and discount costs, fair value adjustments, transaction gains, acquisition costs, preferred stock dividends, and a normalized tax expense) for the nine months ended September 30, 2019 was $6.5 million, or $0.19 basic earnings per share and $0.18 diluted earnings per share, compared to a non-GAAP net loss of $1.0 million, or $0.05 loss per share, for the nine months ended September 30, 2018.

Total cash and cash equivalents at September 30, 2019 were $23.9 million. Cash flow for the quarter is primarily a result of $11.4 million in proceeds from the exercise of common stock warrants and free cash flow from operations of $5.9 million.

To supplement our financial information presented in accordance with GAAP, the Company considers and has included in this press release certain non-GAAP financial measures, including a non-GAAP reconciliation of gross profit, income (loss) before taxes, net income (loss) available to common

 


Smith Micro Software Third Quarter 2019 Financial Results

Page 3

 

stockholders, and earnings (loss) per share in the presentation of financial results in this press release. Management believes this non-GAAP presentation may be more meaningful in analyzing our income generation and has therefore excluded the following items from GAAP earnings calculations: stock-based compensation, amortization of intangibles, debt issuance and discount costs, fair value adjustments, transaction gains, acquisition costs, and preferred stock dividends. Additionally, since we are in a cumulative loss position, a non-GAAP income tax expense (benefit) was computed using a 24 percent tax rate for 2019 and 2018 using the Company’s normalized combined U.S. federal, state, and foreign statutory tax rates less various tax adjustments. This presentation may be considered more indicative of our ongoing operational performance. The table below presents the differences between non-GAAP net income (loss) and net income (loss) on an absolute and per-share basis. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and the non-financial measures as reported by Smith Micro may not be comparable to similarly titled amounts reported by other companies.

Investor Conference Call:

Smith Micro will hold an investor conference call today, October 24, 2019 at 4:30 p.m. EDT, to discuss the Company’s third quarter 2019 financial results. To access the call, dial 1-844-701-1164; international participants can call 1-412-317-5492. A passcode is not required to join the call; ask the operator to be placed into the Smith Micro conference. Participants are asked to call the assigned number approximately 10 minutes before the conference call begins. In addition, the conference call will be available on the Smith Micro website in the Investor Relations section.

About Smith Micro Software, Inc.:

Smith Micro develops software to simplify and enhance the mobile experience, providing solutions to some of the leading wireless service providers and cable MSOs around the world. From enabling the family digital lifestyle to providing powerful voice messaging capabilities, our solutions enrich today’s connected lifestyles while creating new opportunities to engage consumers via smartphones and consumer IoT devices. The Smith Micro portfolio also includes a wide range of products for creating, sharing and monetizing rich content, such as visual voice messaging, optimizing retail content display and performing analytics on any product set. For more information, visit www.smithmicro.com.

Smith Micro and the Smith Micro logo are registered trademarks or trademarks of Smith Micro Software, Inc. All other trademarks and product names are the property of their respective owners.

 


Smith Micro Software Third Quarter 2019 Financial Results

Page 4

 

Forward-Looking Statements:

Certain statements in this press release are, and certain statements on the related conference call may be, forward-looking statements regarding future events or results, including statements related to our financial prospects and other projections of our outlook or performance and our future business plans, and statements using such words as “expect,” “anticipate,” “believe,” “plan,” “intend,” “could,” “will” and other similar expressions. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those expressed or implied in the forward-looking statements. Among the important factors that could cause or contribute to such differences are customer concentration, given that the majority of our sales depend on a few large customer relationships, changes in demand for our products from our customers and their end-users, changes in requirements for our products imposed by our customers or by the third party providers of software and/or platforms that we use, our ability to effectively integrate, market and sell acquired product lines, new and changing technologies, customer acceptance and timing of deployment of those technologies, and our ability to compete effectively with other software and technology companies. These and other factors discussed in our filings with the Securities and Exchange Commission, including our filings on Forms 10-K and 10-Q, could cause actual results to differ materially from those expressed or implied in any forward-looking statements. The forward-looking statements contained in this release are made on the basis of the views and assumptions of management, and we do not undertake any obligation to update these statements to reflect events or circumstances occurring after the date of this release.

 


Smith Micro Software Third Quarter 2019 Financial Results

Page 5

 

Smith Micro Software, Inc.

Reconciliation of GAAP to Non-GAAP Results

(in thousands, except per share amounts) – unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP

 

 

Stock

Compensation

 

 

Intangibles

Amortization

 

 

Note

Issue/

Discount

 

 

Fair Value Adjustments

 

 

Gain on Sale of Software Product

 

 

Acquisition Costs

 

 

Preferred Stock Dividends

 

 

Taxes

 

 

Non-

GAAP

 

Three Months Ended 9/30/19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Gross profit

$

10,771

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

10,771

 

  Income before provision for

    income taxes

 

3,567

 

 

 

351

 

 

 

240

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

4,158

 

  Net income available to

     common stockholders

 

3,515

 

 

 

351

 

 

 

240

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

52

 

 

 

(998

)

 

 

3,160

 

  Earnings per share: basic

 

0.10

 

 

 

0.01

 

 

 

0.01

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

0.00

 

 

 

(0.03

)

 

 

0.09

 

  Earnings per share: diluted

 

0.09

 

 

 

0.01

 

 

 

0.01

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

0.00

 

 

 

(0.03

)

 

 

0.08

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended 9/30/18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Gross profit

$

5,546

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

5,546

 

  Income (loss) before provision for

    income taxes

 

(976

)

 

 

264

 

 

 

61

 

 

 

66

 

 

 

902

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

317

 

  Net income (loss) available to common

     stockholders

 

(1,026

)

 

 

264

 

 

 

61

 

 

 

66

 

 

 

902

 

 

 

-

 

 

 

-

 

 

 

43

 

 

 

(69

)

 

 

241

 

  Earnings (loss) per share: basic and

     diluted

 

(0.04

)

 

 

0.01

 

 

 

0.00

 

 

 

0.00

 

 

 

0.04

 

 

 

-

 

 

 

-

 

 

 

0.00

 

 

 

(0.00

)

 

 

0.01

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended 9/30/19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Gross profit

$

28,166

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

28,166

 

  Income before provision for

    income taxes

 

7,059

 

 

 

1,139

 

 

 

705

 

 

 

-

 

 

 

-

 

 

 

(483

)

 

 

76

 

 

 

-

 

 

 

-

 

 

 

8,496

 

  Net income available to common

     stockholders

 

6,932

 

 

 

1,139

 

 

 

705

 

 

 

-

 

 

 

-

 

 

 

(483

)

 

 

76

 

 

 

119

 

 

 

(2,031

)

 

 

6,457

 

  Earnings per share: basic

 

0.21

 

 

 

0.03

 

 

 

0.02

 

 

 

-

 

 

 

-

 

 

 

(0.01

)

 

 

0.00

 

 

 

0.00

 

 

 

(0.06

)

 

 

0.19

 

  Earnings per share: diluted

 

0.20

 

 

 

0.03

 

 

 

0.02

 

 

 

-

 

 

 

-

 

 

 

(0.00

)

 

 

0.00

 

 

 

0.00

 

 

 

(0.06

)

 

 

0.18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended 9/30/18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Gross profit

$

15,529

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

15,529

 

  Loss before provision for

    income taxes

 

(5,511

)

 

 

674

 

 

 

189

 

 

 

197

 

 

 

3,126

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,325

)

  Net loss available to common

     stockholders

 

(5,911

)

 

 

674

 

 

 

189

 

 

 

197

 

 

 

3,126

 

 

 

-

 

 

 

-

 

 

 

370

 

 

 

348

 

 

 

(1,007

)

  Loss per share: basic and

     diluted

 

(0.28

)

 

 

0.03

 

 

 

0.01

 

 

 

0.01

 

 

 

0.15

 

 

 

-

 

 

 

-

 

 

 

0.02

 

 

 

0.02

 

 

 

(0.05

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Note: Earnings (loss) per share: basic and diluted - may be impacted by rounding to allow rows to calculate.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Smith Micro Software Third Quarter 2019 Financial Results

Page 6

 

 

Smith Micro Software, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except per share amounts) - unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months

 

 

For the Nine Months

 

 

Ended September 30,

 

 

Ended September 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenues

$

11,782

 

 

$

6,525

 

 

$

31,068

 

 

$

18,933

 

Cost of revenues

 

1,011

 

 

 

979

 

 

 

2,902

 

 

 

3,404

 

Gross profit

 

10,771

 

 

 

5,546

 

 

 

28,166

 

 

 

15,529

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing

 

1,793

 

 

 

1,311

 

 

 

5,529

 

 

 

4,488

 

Research and development

 

3,063

 

 

 

2,049

 

 

 

8,487

 

 

 

6,499

 

General and administrative

 

2,396

 

 

 

2,048

 

 

 

7,522

 

 

 

6,299

 

Restructuring expense

 

39

 

 

 

83

 

 

 

154

 

 

 

135

 

Total operating expenses

 

7,291

 

 

 

5,491

 

 

 

21,692

 

 

 

17,421

 

Operating income (loss)

 

3,480

 

 

 

55

 

 

 

6,474

 

 

 

(1,892

)

Non-operating income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income (expense), net

 

87

 

 

 

(128

)

 

 

117

 

 

 

(445

)

Change in fair value of warrant liability

 

 

 

 

(902

)

 

 

 

 

 

(3,126

)

Gain on sale of software product

 

 

 

 

 

 

 

483

 

 

 

 

Other expense, net

 

 

 

 

(1

)

 

 

(15

)

 

 

(48

)

Income (loss) before provision for income taxes

 

3,567

 

 

 

(976

)

 

 

7,059

 

 

 

(5,511

)

Provision for income tax expense

 

 

 

 

7

 

 

 

8

 

 

 

30

 

Net income (loss)

 

3,567

 

 

 

(983

)

 

 

7,051

 

 

 

(5,541

)

Less preferred stock dividends

 

(52

)

 

 

(43

)

 

 

(119

)

 

 

(370

)

Net income (loss) available to common stockholders

$

3,515

 

 

$

(1,026

)

 

$

6,932

 

 

$

(5,911

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Basic

$

0.10

 

 

$

(0.04

)

 

$

0.21

 

 

$

(0.28

)

  Diluted

$

0.09

 

 

$

(0.04

)

 

$

0.20

 

 

$

(0.28

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Basic

 

36,094

 

 

 

25,020

 

 

 

33,170

 

 

 

20,771

 

  Diluted

 

39,472

 

 

 

25,020

 

 

 

35,287

 

 

 

20,771

 

 


Smith Micro Software Third Quarter 2019 Financial Results

Page 7

 

 

Smith Micro Software, Inc.

 

 

 

 

 

 

 

Consolidated Balance Sheets

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

unaudited

 

 

 

 

 

 

September 30,

 

 

December 31,

 

 

2019

 

 

2018

 

ASSETS

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

Cash & cash equivalents

$

23,870

 

 

$

12,159

 

Accounts receivable, net

 

11,087

 

 

 

7,130

 

Prepaid and other assets

 

763

 

 

 

795

 

  Total current assets

 

35,720

 

 

 

20,084

 

Equipment & improvements, net

 

1,392

 

 

 

865

 

Right-of-use assets

 

6,459

 

 

 

 

Deferred tax asset, net

 

191

 

 

 

191

 

Other assets

 

239

 

 

 

140

 

Intangible assets, net

 

4,761

 

 

 

238

 

Goodwill

 

7,797

 

 

 

3,685

 

TOTAL ASSETS

$

56,559

 

 

$

25,203

 

 

 

 

 

 

 

 

 

LIABILITIES & STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

  Accounts payable

$

1,536

 

 

$

1,160

 

  Accrued payroll and benefits

 

2,128

 

 

 

1,745

 

  Current operating lease liabilities

 

1,154

 

 

 

 

  Other accrued liabilities

 

212

 

 

 

450

 

  Deferred revenue

 

105

 

 

 

28

 

   Total current liabilities

 

5,135

 

 

 

3,383

 

 

 

 

 

 

 

 

 

Operating lease liabilities

 

5,809

 

 

 

 

Deferred rent

 

677

 

 

 

723

 

Other long-term liabilities

 

151

 

 

 

534

 

   Total non-current liabilities

 

6,637

 

 

 

1,257

 

 

 

 

 

 

 

 

 

Stockholders' Equity:

 

 

 

 

 

 

 

  Preferred stock

 

 

 

 

 

  Common stock

 

38

 

 

 

28

 

  Additional paid in capital

 

273,815

 

 

 

256,626

 

  Accumulated comprehensive deficit

 

(229,066

)

 

 

(236,091

)

   Total stockholders' equity

 

44,787

 

 

 

20,563

 

TOTAL LIABILITIES & STOCKHOLDERS' EQUITY

$

56,559

 

 

$

25,203

 

 

 

 

 

 

 

 

 

 

 


 


Smith Micro Software Third Quarter 2019 Financial Results

Page 8

 

Smith Micro Software, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Cash Flows

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands) - unaudited

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months

 

 

For the Nine Months Ended

 

 

 

Ended September 30,

 

 

September 30,

 

 

 

2019

 

 

2019

 

 

2018

 

Operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

3,567

 

 

$

7,051

 

 

$

(5,541

)

Adjustments to reconcile net income (loss) to net cash provided

   by (used in) operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

316

 

 

 

997

 

 

 

651

 

Non-cash lease expense

 

 

249

 

 

 

730

 

 

 

 

Amortization of debt discounts and financing issuance

   costs

 

 

 

 

 

 

 

 

197

 

Restructuring costs

 

 

39

 

 

 

154

 

 

 

135

 

Provision for doubtful accounts and other adjustments to

   accounts receivable

 

 

119

 

 

 

127

 

 

 

6

 

Provision for excess and obsolete inventory

 

 

 

 

 

1

 

 

 

(18

)

Loss on disposal of fixed assets

 

 

 

 

 

6

 

 

 

 

Stock based compensation

 

 

351

 

 

 

1,139

 

 

 

674

 

Change in fair value of warrant liability

 

 

 

 

 

 

 

 

3,126

 

Gain on sale of software product

 

 

 

 

 

(483

)

 

 

 

Change in operating accounts:

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

1,811

 

 

 

(4,031

)

 

 

(1,189

)

Prepaid expenses and other assets

 

 

190

 

 

 

52

 

 

 

(145

)

Accounts payable and accrued liabilities

 

 

(175

)

 

 

(701

)

 

 

(973

)

Deferred revenue

 

 

(78

)

 

 

(214

)

 

 

47

 

Net cash provided by (used in) operating activities

 

 

6,389

 

 

 

4,828

 

 

 

(3,030

)

Investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition of Smart Retail business, net

 

 

 

 

 

(3,974

)

 

 

 

Proceeds from sale of software product

 

 

13

 

 

 

363

 

 

 

 

Capital expenditures

 

 

(537

)

 

 

(824

)

 

 

(172

)

Net cash used in investing activities

 

 

(524

)

 

 

(4,435

)

 

 

(172

)

Financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

Proceeds from stock sale for employee stock purchase plan

 

 

5

 

 

 

10

 

 

 

5

 

Proceeds from (payments related to) the issuance of

   common stock

 

 

 

 

 

(14

)

 

 

10,749

 

Proceeds from exercise of common stock warrants

 

 

11,403

 

 

 

11,403

 

 

 

 

Proceeds from exercise of stock options

 

 

38

 

 

 

38

 

 

 

 

Repayments of short-term secured promissory notes

 

 

 

 

 

 

 

 

(1,000

)

Dividends paid on preferred stock

 

 

(52

)

 

 

(119

)

 

 

(370

)

Net cash provided by financing activities

 

 

11,394

 

 

 

11,318

 

 

 

9,384

 

Net increase in cash and cash equivalents