8-K
Research Solutions, Inc. (RSSS)
UNITED STATESSECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORTPursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report:
(Date of earliest event reported)
May 12, 2022
Research Solutions, Inc.
(Exact name of registrant as specified in its charter)
Nevada
(State or other Jurisdiction of Incorporation)
| 1-39256 | 11-3797644 |
|---|---|
| (Commission File Number) | (IRS Employer Identification No.) |
N/A
(Address of Principal Executive Offices and zip code)
(310) 477-0354
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of registrant under any of the following provisions:
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12(b) under the Exchange Act (17 CFR 240.14a-12(b))
¨ 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, $0.001 par value | RSSS | The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2).
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 May 12, 2022, the Registrant announced its financial results for the third quarter ended March 31, 2022. A copy of the press release is being furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information in this Item 2.02 and Exhibit 99.1 attached hereto is intended to be furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act except as expressly set forth by specific reference in such filing.
| Item 9.01. | Financial Statements and Exhibits | |
|---|---|---|
| (d) | Exhibits. | |
| --- | --- | --- |
| Exhibit<br><br> Number | Description | |
| 99.1 | Press Release issued May 12, 2022 entitled “Research Solutions Reports Fiscal Third Quarter 2022 Results”. | |
| 104 | Cover Page Interactive Data File (embedded as Inline XBRL document) |
2
SIGNATURE
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.
| RESEARCH SOLUTIONS, INC. | ||
|---|---|---|
| Date: May 12, 2022 | By: | /s/ William Nurthen |
| William Nurthen | ||
| Chief Financial Officer |
3
Exhibit 99.1
FOR IMMEDIATE RELEASE
Research Solutions Reports Fiscal Third Quarter2022 Results
Reports Record Quarterly Revenue and 32 PercentIncrease in ARR to $7.3 Million
HENDERSON, Nev.,May 12, 2022 — Research Solutions, Inc. (NASDAQ: RSSS), a pioneer in providing cloud-based workflow solutions for R&D driven organizations, reported financial results for its fiscal third quarter ended March 31, 2022.
Fiscal Third Quarter 2022 Summary
| · | Total<br>revenue of $8.8 million, a quarterly record for the Company and a 5% increase from the prior-year quarter |
|---|---|
| · | Platform<br>revenue up 33% to $1.8 million. Annual Recurring Revenue (“ARR”) up 32% to $7.3 million |
| · | Gross<br>profit up 20% from prior-year quarter. Total gross margin improved 460 basis points to 37.0% |
| · | Loss<br>of $0.01 per share, compared to breakeven in the prior-year quarter, positive Adjusted EBITDA of $0.1 million compared to $0.2M in the<br>prior-year quarter |
| · | Platform<br>incremental ARR generated in the quarter was $0.5M and a total of $1.8M in the past twelve months. |
| · | 34<br>net new platform deployments in the quarter, 168 net new on a trailing twelve months basis |
“Our third quarter results reflect the continued growth within our Platforms segment, as we posted our highest quarterly total revenue in company history and second consecutive quarter of at least $500,000 of incremental ARR,” said Roy W. Olivier, President and CEO of Research Solutions. “In addition, Q3 is seasonally a strong renewal period for us and this quarter we experienced our highest ever upsell bookings from existing customers as they continue to see the value in our Article Galaxy platform.”
Fiscal Third Quarter 2022 Results
Total revenue was $8.8 million, a 5% increase from $8.3 million in the year-ago quarter as platform revenue increased and transaction revenue was essentially unchanged from the prior period.
Platform subscription revenue increased 33% to $1.8 million compared to approximately $1.3 million in the year-ago quarter. The growth was due to an increase in ARR associated with renewals over the last twelve months as well as an increase in the total number of paid Platform deployments, including 34 net deployments added in the quarter. The quarter ended with annual recurring revenue of $7.3 million, up 32% year-over-year (see the company’s definition of annual recurring revenue below).
Transaction revenue was $7.0 million, relatively flat compared to the third quarter of fiscal 2021. Transaction customer count for the quarter was 1,193, compared to 1,108 customers in the prior-year quarter (see the company's definition of active customer accounts and transactions below).
Total gross margin improved 460 basis points from the prior-year quarter to 37.0%. The increase was primarily driven by a continued revenue mix shift to the higher-margin Platform business as well as lower copyright costs in the quarter.
Total operating expenses were $3.6 million, compared to $2.7 million in the third quarter of 2021. The increase was primarily due to higher technology and product development and general and administrative costs related to strategic growth initiatives in the business.
Net loss in the third quarter was ($341,000), or ($0.01) per share, compared to net income of $50,000, or breakeven on a diluted share basis, in the prior-year quarter. Adjusted EBITDA was $94,000, compared to $238,000 in the year-ago quarter (see definition and further discussion about the presentation of Adjusted EBITDA, a non-GAAP term, below).
Conference Call
Research Solutions President and CEO Roy W. Olivier and CFO Bill Nurthen will host the conference call, followed by a question and answer period.
Date: Thursday, May 12, 2022
Time: 5:00 p.m. ET (2:00 p.m. PT)
Toll-free dial-in number: 1-800-892-9785
International dial-in number: 1-212-231-2907
Conference ID: 22018555
The conference call will be broadcast live and available for replay until June 12, 2022 by dialing 1-844-512-2921 and using the replay ID 22018555, and via the investor relations section of the company's website at http://researchsolutions.investorroom.com/.
Fiscal Third Quarter Financial and Operational Summary Tables vs.Prior-Year Quarter
| Quarter Ended March 31, | Nine Months Ended March<br> 31, | |||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | Change | %<br> Change | 2022 | 2021 | Change | %<br> Change | |||||||||||||||||
| Revenue: | ||||||||||||||||||||||||
| Platforms | $ | 1,786,224 | $ | 1,344,183 | $ | 442,041 | 32.9 | % | $ | 4,900,927 | $ | 3,706,406 | $ | 1,194,521 | 32.2 | % | ||||||||
| Transactions | $ | 6,971,128 | $ | 6,996,349 | (25,221 | ) | -0.4 | % | $ | 19,471,216 | $ | 19,832,286 | (361,070 | ) | -1.8 | % | ||||||||
| Total Revenue | 8,757,352 | 8,340,532 | 416,820 | 5.0 | % | 24,372,143 | 23,538,692 | 833,451 | 3.5 | % | ||||||||||||||
| Gross Profit: | ||||||||||||||||||||||||
| Platforms | 1,567,173 | 1,110,487 | 456,686 | 41.1 | % | 4,204,552 | 3,051,755 | 1,152,797 | 37.8 | % | ||||||||||||||
| Transactions | 1,671,324 | 1,592,153 | 79,171 | 5.0 | % | 4,531,980 | 4,492,043 | 39,937 | 0.9 | % | ||||||||||||||
| Total Gross Profit | 3,238,497 | 2,702,640 | 535,857 | 19.8 | % | 8,736,532 | 7,543,798 | 1,192,734 | 15.8 | % | ||||||||||||||
| Gross profit as a % of revenue: | ||||||||||||||||||||||||
| Platforms | 87.7 | % | 82.6 | % | 5.1 | % | 85.8 | % | 82.3 | % | 3.5 | % | ||||||||||||
| Transactions | 24.0 | % | 22.8 | % | 1.2 | % | 23.3 | % | 22.7 | % | 0.6 | % | ||||||||||||
| Total Gross Profit | 37.0 | % | 32.4 | % | 4.6 | % | 35.8 | % | 32.0 | % | 3.8 | % | ||||||||||||
| Operating Expenses: | ||||||||||||||||||||||||
| Sales and marketing | 543,496 | 566,713 | (23,217 | ) | -4.1 | % | 1,584,804 | 1,552,658 | 32,146 | 2.1 | % | |||||||||||||
| Technology and product development | 971,959 | 664,195 | 307,764 | 46.3 | % | 2,661,655 | 1,911,903 | 749,752 | 39.2 | % | ||||||||||||||
| General and administrative | 1,629,371 | 1,233,603 | 395,768 | 32.1 | % | 4,742,729 | 3,513,415 | 1,229,314 | 35.0 | % | ||||||||||||||
| Depreciation and amortization | 4,988 | 2,066 | 2,922 | 141.4 | % | 12,144 | 8,828 | 3,316 | 37.6 | % | ||||||||||||||
| Stock-based compensation | 399,234 | 179,345 | 219,889 | 122.6 | % | 870,883 | 786,084 | 84,799 | 10.8 | % | ||||||||||||||
| Foreign currency translation loss | 29,394 | 6,648 | 22,746 | 342.1 | % | 52,619 | (35,070 | ) | 87,689 | NM | ||||||||||||||
| Total Operating Expenses | 3,578,442 | 2,652,570 | 925,872 | 34.9 | % | 9,924,834 | 7,737,818 | 2,187,016 | 28.3 | % | ||||||||||||||
| Income (loss) from operations | (339,945 | ) | 50,070 | (390,015 | ) | NM | (1,188,302 | ) | (194,020 | ) | (994,282 | ) | NM | |||||||||||
| Other Income (Expenses): | ||||||||||||||||||||||||
| Other income (expense) | 237 | 250 | (13 | ) | 777 | 884 | (107 | ) | -12.1 | % | ||||||||||||||
| Provision for income taxes | (822 | ) | (572 | ) | (250 | ) | 0.0 | % | (6,592 | ) | (3,077 | ) | (3,515 | ) | NM | |||||||||
| Gain on sale of disc'd operations | - | - | - | - | - | - | ||||||||||||||||||
| Total Other Income (Expenses): | (585 | ) | (322 | ) | (263 | ) | 81.7 | % | (5,815 | ) | (2,193 | ) | (3,622 | ) | NM | |||||||||
| Net income (loss) | $ | (340,530 | ) | $ | 49,748 | (390,278 | ) | NM | $ | (1,194,117 | ) | $ | (196,213 | ) | (997,904 | ) | NM | |||||||
| NM | NM | |||||||||||||||||||||||
| Adjusted EBITDA | $ | 93,671 | $ | 238,129 | $ | (144,458 | ) | NM | $ | (252,656 | ) | $ | 565,822 | $ | (818,478 | ) | NM | |||||||
| Quarter Ended March 31, | Nine Months Ended March<br> 31, | |||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||
| 2022 | 2021 | Change | %<br> Change | 2022 | 2021 | Change | %<br> Change | |||||||||||||||||
| Platforms: | ||||||||||||||||||||||||
| ARR (Annual recurring revenue): | ||||||||||||||||||||||||
| Beginning of Period | $ | 6,848,613 | $ | 5,021,053 | $ | 1,827,560 | 36.4 | % | $ | 5,880,179 | $ | 4,446,088 | $ | 1,434,091 | 32.3 | % | ||||||||
| Incremental ARR | 500,233 | 533,542 | (33,309 | ) | -6.2 | % | 1,468,668 | 1,108,507 | 360,161 | 32.5 | % | |||||||||||||
| End of Period | $ | 7,348,847 | $ | 5,554,595 | $ | 1,794,252 | 32.3 | % | $ | 7,348,847 | $ | 5,554,595 | $ | 1,794,252 | 32.3 | % | ||||||||
| Deployments: | ||||||||||||||||||||||||
| Beginning of Period | 646 | 461 | 185 | 40.1 | % | 553 | 401 | 152 | 37.9 | % | ||||||||||||||
| Incremental Deployments | 34 | 51 | (17 | ) | -33.3 | % | 127 | 111 | 16 | 14.4 | % | |||||||||||||
| End of Period | 680 | 512 | 168 | 32.8 | % | 680 | 512 | 168 | 32.8 | % | ||||||||||||||
| ASP (Average sales price): | ||||||||||||||||||||||||
| Beginning of Period | $ | 10,602 | $ | 10,892 | $ | (290 | ) | -2.7 | % | $ | 10,633 | $ | 11,088 | $ | (454 | ) | -4.1 | % | ||||||
| End of Period | $ | 10,807 | $ | 10,849 | $ | (42 | ) | -0.4 | % | $ | 10,807 | $ | 10,849 | $ | (42 | ) | -0.4 | % | ||||||
| Transaction Customers: | ||||||||||||||||||||||||
| Corporate customers | 904 | 841 | 63 | 7.5 | % | 875 | 818 | 56 | 6.9 | % | ||||||||||||||
| Academic customers | 289 | 267 | 22 | 8.2 | % | 300 | 284 | 16 | 5.8 | % | ||||||||||||||
| Total customers | 1,193 | 1,108 | 85 | 7.7 | % | 1,175 | 1,102 | 73 | 6.6 | % |
Active Customer Accounts, Transactions and Annual Recurring Revenue
The company defines active customer accounts as the sum of the total quantity of customers per month for each month in the period divided by the respective number of months in the period. The quantity of customers per month is defined as customers with at least one transaction during the month.
A transaction is an order for a unit of copyrighted content fulfilled or managed in the Platform.
The company defines annual recurring revenue (“ARR”) as the value of contracted Platform subscription recurring revenue normalized to a one-year period.
Use of Non-GAAP Measure – Adjusted EBITDA
Research Solutions’ management evaluates and makes operating decisions using various financial metrics. In addition to the company’s GAAP results, management also considers the non-GAAP measure of Adjusted EBITDA. Management believes that this non-GAAP measure provides useful information about the company’s operating results.
The tables below provide a reconciliation of this non-GAAP financial measure with the most directly comparable GAAP financial measure. Adjusted EBITDA is defined as net income (loss), plus interest expense, other income (expense), foreign currency transaction loss, provision for income taxes, depreciation and amortization, stock-based compensation, gain on sale of discontinued operations, and other potential adjustments that may arise. Set forth below is a reconciliation of Adjusted EBITDA to net income (loss):
| Quarter Ended March 31, | Nine Months Ended March<br> 31, | |||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | Change | %<br> Change | 2022 | 2021 | Change | %<br> Change | |||||||||||||||||
| Net Income (loss) | $ | (340,530 | ) | $ | 49,748 | $ | (390,278 | ) | NM | $ | (1,194,117 | ) | $ | (196,213 | ) | $ | (997,904 | ) | NM | |||||
| Add (deduct): | - | |||||||||||||||||||||||
| Other income (expense) | (237 | ) | (250 | ) | 13 | 5.2 | % | (777 | ) | (884 | ) | 107 | 12.1 | % | ||||||||||
| Foreign currency translation loss | 29,394 | 6,648 | 22,746 | 342.1 | % | 52,619 | (35,070 | ) | 87,689 | NM | ||||||||||||||
| Provision for income taxes | 822 | 572 | 250 | 43.7 | % | 6,592 | 3,077 | 3,515 | 114.2 | % | ||||||||||||||
| Depreciation and amortization | 4,988 | 2,066 | 2,922 | 141.4 | % | 12,144 | 8,828 | 3,316 | 37.6 | % | ||||||||||||||
| Stock-based compensation | 399,234 | 179,345 | 219,889 | 122.6 | % | 870,883 | 786,084 | 84,799 | 10.8 | % | ||||||||||||||
| Gain on sale of disc. ops. | - | - | - | - | - | - | ||||||||||||||||||
| Adjusted EBITDA | $ | 93,671 | $ | 238,129 | $ | (144,458 | ) | -60.7 | % | $ | (252,656 | ) | $ | 565,822 | $ | (818,478 | ) | NM |
About Research Solutions
Research Solutions, Inc. (NASDAQ: RSSS) provides cloud-based technologies to streamline the process of obtaining, managing, and creating intellectual property. Founded in 2006 as Reprints Desk, the company was a pioneer in developing solutions to serve researchers. Today, more than 70 percent of the top pharmaceutical companies, prestigious universities, and emerging businesses rely on Article Galaxy, the company's SaaS research platform, to streamline access to the latest scientific research and data with 24/7 customer support. For more information and details, please visitwww.researchsolutions.com and www.reprintsdesk.com
Important Cautions Regarding Forward-Looking Statements
Certain statements in this press release may contain "forward-looking statements" regarding future events and our future results. All statements other than statements of historical facts are statements that could be deemed to be forward-looking statements. These statements are based on current expectations, estimates, forecasts, and projections about the markets in which we operate and the beliefs and assumptions of our management. Words such as "expects," "anticipates," "targets," "goals," "projects", "intends," "plans," "believes," "seeks," "estimates," "endeavors," "strives," "may," or variations of such words, and similar expressions are intended to identify such forward-looking statements. Readers are cautioned that these forward-looking statements are subject to a number of risks, uncertainties and assumptions that are difficult to predict, estimate or verify. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. Such risks and uncertainties include those factors described in the Company's most recent annual report on Form 10-K, as such may be amended or supplemented by subsequent quarterly reports on Form 10-Q, or other reports filed with the Securities and Exchange Commission. Examples of forward-looking statements in this release include statements regarding additional customers, potential acquisitions and the Company’s prospects for growth. Readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements. For more information, please refer to the Company's filings with the Securities and Exchange Commission.
Research Solutions, Inc. and Subsidiaries
Consolidated Balance Sheets
| June 30, | |||||
| 2021 | |||||
| Assets | |||||
| Current assets: | |||||
| Cash and cash equivalents | 10,640,521 | $ | 11,004,337 | ||
| Accounts receivable, net of allowance of 80,655 and 51,495, respectively | 5,622,368 | 4,717,453 | |||
| Prepaid expenses and other current assets | 338,236 | 270,252 | |||
| Prepaid royalties | 959,208 | 904,921 | |||
| Total current assets | 17,560,333 | 16,896,963 | |||
| Other assets: | |||||
| Property and equipment, net of accumulated depreciation of 836,339 and 824,123, respectively | 43,671 | 20,755 | |||
| Deposits and other assets | 905 | 906 | |||
| Total assets | 17,604,909 | $ | 16,918,624 | ||
| Liabilities and Stockholders’ Equity | |||||
| Current liabilities: | |||||
| Accounts payable and accrued expenses | 7,084,276 | $ | 6,687,188 | ||
| Deferred revenue | 5,342,828 | 4,804,351 | |||
| Total current liabilities | 12,427,104 | 11,491,539 | |||
| Commitments and contingencies | |||||
| Stockholders’ equity: | |||||
| Preferred stock; 0.001 par value; 20,000,000 shares authorized; no shares issued and outstanding | — | — | |||
| Common stock; 0.001 par value; 100,000,000 shares authorized; 27,000,844 and 26,498,215 shares issued and outstanding, respectively | 27,001 | 26,498 | |||
| Additional paid-in capital | 27,927,567 | 26,982,052 | |||
| Accumulated deficit | (22,656,005 | ) | (21,461,888 | ) | |
| Accumulated other comprehensive loss | (120,758 | ) | (119,577 | ) | |
| Total stockholders’ equity | 5,177,805 | 5,427,085 | |||
| Total liabilities and stockholders’ equity | 17,604,909 | $ | 16,918,624 |
All values are in US Dollars.
Research Solutions, Inc. and Subsidiaries
Consolidated Statements of Operations and OtherComprehensive Loss
(Unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31, | March 31, | |||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||
| Revenue: | ||||||||||||
| Platforms | $ | 1,786,224 | $ | 1,344,183 | $ | 4,900,927 | $ | 3,706,406 | ||||
| Transactions | 6,971,128 | 6,996,349 | 19,471,216 | 19,832,286 | ||||||||
| Total revenue | 8,757,352 | 8,340,532 | 24,372,143 | 23,538,692 | ||||||||
| Cost of revenue: | ||||||||||||
| Platforms | 219,051 | 233,696 | 696,375 | 654,651 | ||||||||
| Transactions | 5,299,804 | 5,404,196 | 14,939,236 | 15,340,243 | ||||||||
| Total cost of revenue | 5,518,855 | 5,637,892 | 15,635,611 | 15,994,894 | ||||||||
| Gross profit | 3,238,497 | 2,702,640 | 8,736,532 | 7,543,798 | ||||||||
| Operating expenses: | ||||||||||||
| Selling, general and administrative | 3,573,454 | 2,650,504 | 9,912,690 | 7,728,990 | ||||||||
| Depreciation and amortization | 4,988 | 2,066 | 12,144 | 8,828 | ||||||||
| Total operating expenses | 3,578,442 | 2,652,570 | 9,924,834 | 7,737,818 | ||||||||
| Income (loss) from operations | (339,945 | ) | 50,070 | (1,188,302 | ) | (194,020 | ) | |||||
| Other income | 237 | 250 | 777 | 884 | ||||||||
| Income (loss) from operations before provision for income taxes | (339,708 | ) | 50,320 | (1,187,525 | ) | (193,136 | ) | |||||
| Provision for income taxes | (822 | ) | (572 | ) | (6,592 | ) | (3,077 | ) | ||||
| Net income (loss) | (340,530 | ) | 49,748 | (1,194,117 | ) | (196,213 | ) | |||||
| Other comprehensive income (loss): | ||||||||||||
| Foreign currency translation | 1,609 | (3,333 | ) | (1,181 | ) | 3,348 | ||||||
| Comprehensive income (loss) | $ | (338,921 | ) | $ | 46,415 | $ | (1,195,298 | ) | $ | (192,865 | ) | |
| Basic income (loss) per common share: | ||||||||||||
| Net income (loss) per share | $ | (0.01 | ) | $ | — | $ | (0.05 | ) | $ | (0.01 | ) | |
| Weighted average common shares outstanding | 26,512,195 | 26,027,665 | 26,392,949 | 25,966,072 | ||||||||
| Diluted income (loss) per common share: | ||||||||||||
| Net income (loss) per share | $ | (0.01 | ) | $ | — | $ | (0.05 | ) | $ | (0.01 | ) | |
| Weighted average common shares outstanding | 26,512,195 | 26,565,892 | 26,392,949 | 25,966,072 |
Research Solutions, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
| Nine Months Ended | ||||||
|---|---|---|---|---|---|---|
| March 31, | ||||||
| 2022 | 2021 | |||||
| Cash flow from operating activities: | ||||||
| Net loss | $ | (1,194,117 | ) | $ | (196,213 | ) |
| Adjustment to reconcile net loss to net cash provided by (used in) operating activities: | ||||||
| Depreciation and amortization | 12,144 | 8,828 | ||||
| Amortization of lease right | — | 72,331 | ||||
| Fair value of vested stock options | 424,450 | 504,936 | ||||
| Fair value of vested restricted common stock | 446,433 | 281,148 | ||||
| Changes in operating assets and liabilities: | ||||||
| Accounts receivable | (904,915 | ) | (563,829 | ) | ||
| Prepaid expenses and other current assets | (67,984 | ) | (75,473 | ) | ||
| Prepaid royalties | (54,287 | ) | (23,146 | ) | ||
| Deposits and other assets | — | 5,360 | ||||
| Accounts payable and accrued expenses | 397,088 | 1,208,474 | ||||
| Deferred revenue | 538,477 | 1,076,966 | ||||
| Lease liability | — | (79,326 | ) | |||
| Net cash provided by (used in) operating activities | (402,711 | ) | 2,220,056 | |||
| Cash flow from investing activities: | ||||||
| Purchase of property and equipment | (34,251 | ) | (11,853 | ) | ||
| Net cash used in investing activities | (34,251 | ) | (11,853 | ) | ||
| Cash flow from financing activities: | ||||||
| Proceeds from the exercise of stock options | 97,688 | 88,850 | ||||
| Proceeds from the exercise of warrants | 59,500 | 81,251 | ||||
| Common stock repurchase | (82,053 | ) | (150,386 | ) | ||
| Repurchase of stock options and warrants | — | (308,313 | ) | |||
| Net cash provided by (used in) financing activities | 75,135 | (288,598 | ) | |||
| Effect of exchange rate changes | (1,989 | ) | 2,401 | |||
| Net increase (decrease) in cash and cash equivalents | (363,816 | ) | 1,922,006 | |||
| Cash and cash equivalents, beginning of period | 11,004,337 | 9,311,556 | ||||
| Cash and cash equivalents, end of period | $ | 10,640,521 | $ | 11,233,562 | ||
| Supplemental disclosures of cash flow information: | ||||||
| Cash paid for income taxes | $ | 6,592 | $ | 3,077 |
Contact
Steven Hooser or John Beisler
Three Part Advisors
(214) 872-2710
shooser@threepa.com; jbeisler@threepa.com