8-K
Zedge, Inc. (ZDGE)
UNITEDSTATES
SECURITIESAND EXCHANGE COMMISSION
Washington,D.C. 20549
FORM8-K
CURRENTREPORT
Pursuantto Section 13 or 15(d) of the Securities Exchange Act of 1934
Dateof Report (Date of earliest event reported): October 19, 2020
ZEDGE,INC.
(Exactname of registrant as specified in its charter)
| Delaware | 1-37782 | 26-3199071 |
|---|---|---|
| (State or other jurisdiction<br><br> <br>of incorporation) | (Commission File Number) | (IRS Employer<br><br> <br>Identification No.) |
| 1178 Broadway, Ste 1450 (3rd Floor), New York, NY | 10001 | |
| --- | --- | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’stelephone number, including area code: (330) 577-3424
NotApplicable
(Formername 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 Instruction A.2. below):
| ☐ | Written<br>communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting<br>material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ☐ | Pre-commencement<br>communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ☐ | Pre-commencement<br>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 |
|---|---|---|
| Class<br> B common stock, par value $.01 per share | ZDGE | NYSE<br> American |
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 October 22, 2020, Zedge, Inc. (the “Registrant”) issued a press release announcing its results of operations for its fourth fiscal quarter and fiscal year ended July 31, 2020. A copy of the press release issued by the Registrant concerning the foregoing results is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.
The Registrant is furnishing the information contained in this Report, including Exhibit 99.1, pursuant to Item 2.02 of Form 8-K promulgated by the Securities and Exchange Commission (the “SEC”). This information shall not be deemed to be “filed” with the SEC or incorporated by reference into any other filing with the SEC unless otherwise expressly stated in such filing. In addition, this Report and the press release contain statements intended as “forward-looking statements” that are subject to the cautionary statements about forward-looking statements set forth in the press release.
Item 5.02Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangementsof Certain Officers.
(e) On October 19, 2020, the Compensation Committee of the Board of Directors awarded 10,619 shares of the Registrant’s Class B Common to Elliot Gibber in connection with his fiscal 2020 service as Interim Chief Executive Officer, which he served from November 7, 2019 to August 5, 2020. Mr. Gibber is currently an independent director of the Registrant.
On October 19, 2020, the Compensation Committee of the Board of Directors extended the expiration date of 181,616 options to purchase the Registrant’s Class B Common Stock held by Jonathan Reich, the Registrant’s Chief Executive Officer, from October 31, 2021 to May 31, 2026. Such options are fully vested and were granted under the Registrants 2008 Stock Option and Incentive Plan. The options have an exercise price of $1.73 per share.
Item 9.01Financial Statements and Exhibits.
| (d) | Exhibits. |
|---|---|
| Exhibit No | Document |
| --- | --- |
| 99.1 | Earnings Release, dated October 22, 2020, reporting the results of operations for Zedge, Inc.’s fourth fiscal quarter and fiscal year ended July 31, 2020. |
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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.
| ZEDGE, INC. | |
|---|---|
| By: | /s/<br> Jonathan Reich |
| Name: | Jonathan<br> Reich |
| Title: | Chief<br> Financial Officer |
Dated: October 22, 2020
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EXHIBITINDEX
| Exhibit Number | Document |
|---|---|
| 99.1 | Earnings Release, dated October 22, 2020, reporting the results of operations for Zedge, Inc.’s fourth fiscal quarter and fiscal year ended July 31, 2020. |
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Exhibit99.1
ZedgeAnnounces 39.2% Increase in Revenue, EPS of $0.04, and a 277% Increase in Paid Subscribers for Fiscal Fourth Quarter 2020
CompanyDelivers Record Cash Flow from Operations during Fiscal 2020;
NewYork, NY – Oct 22, 2020: Zedge, Inc. (NYSE AMERICAN: ZDGE), a worldwide mobile publishing and content platform provider, today announced results for the fiscal fourth quarter and full fiscal-year 2020 ended July 31, 2020.
“Zedge had a strong fourth quarter and finished the year on a high note with encouraging momentum heading into our new fiscal year,” said Jonathan Reich, chief executive officer. “The investments we’ve made in product development, combined with improved ad optimization, strong paid subscription growth and the cost reductions we implemented this past year helped us generate positive earnings per share in the fourth quarter. Additionally, at the outset of fiscal 2020, we announced that one of our key goals was being cash flow positive in the fiscal fourth quarter, and we surpassed this by generating positive cash flow every quarter during the year.”
“Our fourth quarter paid subscriber count continued to grow at an impressive pace and contributed to a 50% year-over-year increase in average revenue per monthly active user, or ARPMAU. We were also encouraged to see the gross transaction value, or GTV, for our Zedge Premium marketplace return to double-digit growth after a temporary pandemic-related slowdown last quarter.”
4thFiscal Quarter Highlights
| ● | Revenue<br> increased 39.2% to $2.7 million versus $2.0 million last year; |
|---|---|
| ● | Paid<br> subscription revenue increased 378% to $0.6 million versus $0.1 million last year; |
| --- | --- |
| ● | Paid<br> subscribers increased 277% versus last year and 26.3% from the third quarter; |
| --- | --- |
| ● | More<br> than 40% of annual subscribers renewed their subscriptions; |
| --- | --- |
| ● | Operating<br> income was $0.4 million versus an operating loss of ($0.9) million last year; |
| --- | --- |
| ● | Net<br> income was $0.5 million versus a net loss of ($1.2) million last year; |
| --- | --- |
| ● | Diluted<br> Earnings per share was $0.04 versus a loss per share of ($0.12); |
| --- | --- |
| ● | Monthly<br> active users (MAU) decreased by 5.6% versus last year, but increased by 10.8% from the<br> third quarter; |
| --- | --- |
| ● | Zedge<br> Premium Gross Transaction Value (GTV) increased 13.1% versus last year. |
| --- | --- |
| Select<br> Financial Metrics: Fiscal 4th Quarter and Fulll Year 2020 Comparisons | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in<br> M except for EPS) | Q420 | Q419 | Change | FY20 | FY19 | Change | ||||||||||
| Total Revenue | 2.7 | $ | 2.0 | 39.2 | % | $ | 9.5 | $ | 8.8 | 7.4 | % | |||||
| Advertising Revenue | 2.0 | $ | 1.7 | 16.9 | % | $ | 7.4 | $ | 7.9 | -6.7 | % | |||||
| Subscription Revenue | 0.6 | $ | 0.1 | 377.7 | % | $ | 1.6 | $ | 0.2 | 931.6 | % | |||||
| Other<br> Revenue | 0.1 | $ | 0.1 | -6.4 | % | $ | 0.5 | $ | 0.7 | -36.1 | % | |||||
| Operating Income<br> (loss) | 0.4 | ($ | 0.9 | ) | - | ($ | 0.4 | ) | ($ | 2.9 | ) | 86.0 | % | |||
| Net Income<br> (loss) | 0.5 | ($ | 1.2 | ) | - | ($ | 0.6 | ) | ($ | 3.3 | ) | 83.3 | % | |||
| Diluted Earnings<br> (loss) Per Share | 0.04 | ($ | 0.12 | ) | $ | 0.16 | ($ | 0.05 | ) | ($ | 0.33 | ) | $ | 0.28 | ||
| Cash Flow from<br> Operations | 0.5 | ($ | 0.4 | ) | - | $ | 2.1 | $ | 0.1 | - | ||||||
| Zedge Premium<br> - Gross Transaction Value (GTV) | 0.19 | $ | 0.17 | 13.1 | % | $ | 0.73 | $ | 0.49 | 50.0 | % |
All values are in US Dollars.
NM = not measurable/meaningful
| Select<br> Business Metrics: Fiscal 4th Quarter 2020 versus Fiscal 2019 | |||||||
|---|---|---|---|---|---|---|---|
| (in MM except for ARPMAU and<br> where noted) | Q420 | Q419 | Change | ||||
| Total Installs<br> - Cumulative | 449.8 | 395.9 | 13.6 | % | |||
| MAU | 31.9 | 33.8 | -5.6 | % | |||
| Well-developed Markets | 9.6 | 11.8 | -18.6 | % | |||
| Emerging<br> Markets | 22.3 | 22.0 | 1.4 | % | |||
| ARPMAU | $ | 0.028 | $ | 0.019 | 50.2 | % | |
| Paid Subscriptions (in<br> 000s) | 504 | 134 | 277.0 | % |
Full-year2020 Highlights
| ● | Revenue<br> increased 7.4% to $9.5 million versus $8.8 million last year; |
|---|---|
| ● | Revenue<br> from paid subscriptions, which we launched in January 2019, increased 932% to $1.6 million<br> versus $0.2 million last year; |
| --- | --- |
| ● | Operating<br> loss was ($0.4) million versus ($2.9) million last year; |
| --- | --- |
| ● | Net<br> loss was ($0.6) million versus ($3.3) million last year; |
| --- | --- |
| ● | Loss<br> per share was ($0.05) versus ($0.33) last year; |
| --- | --- |
| ● | Cash<br> flow from operations was positive in all four quarters and for the full year; |
| --- | --- |
| ● | At<br> fiscal year-end, cash and cash equivalents were $5.1 million and long-term debt was $0.2<br> million; |
| --- | --- |
| ● | Zedge<br> Premium Gross Transaction Value (GTV) increased 50% versus last year. |
| --- | --- |
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| Trended<br> Financial Information: Fiscal 2019 and Fiscal 2020 | ||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (in $M except for EPS, ARPMAU, Paid<br> Subscriptions) | Q119 | Q219 | Q319 | Q419 | FY19 | Q120 | Q220 | Q320 | Q420 | FY20 | ||||||||||||||||||
| Total Revenue | $ | 2.4 | $ | 2.6 | $ | 1.9 | $ | 2.0 | $ | 8.8 | $ | 2.0 | $ | 2.6 | $ | 2.1 | $ | 2.7 | $ | 9.5 | ||||||||
| Advertising<br> Revenue | $ | 2.2 | $ | 2.4 | $ | 1.7 | $ | 1.7 | $ | 7.9 | $ | 1.7 | $ | 2.3 | $ | 1.5 | $ | 2.0 | $ | 7.4 | ||||||||
| Subscription<br> Revenue | $ | 0.0 | $ | 0.0 | $ | 0.0 | $ | 0.1 | $ | 0.2 | $ | 0.2 | $ | 0.3 | $ | 0.5 | $ | 0.6 | $ | 1.6 | ||||||||
| Other<br> Revenue | $ | 0.2 | $ | 0.2 | $ | 0.2 | $ | 0.1 | $ | 0.7 | $ | 0.2 | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | 0.5 | ||||||||
| Operating<br> Income (loss) | ($ | 0.6 | ) | ($ | 0.2 | ) | ($ | 1.1 | ) | ($ | 0.9 | ) | ($ | 2.9 | ) | ($ | 0.7 | ) | $ | 0.1 | ($ | 0.1 | ) | $ | 0.4 | ($ | 0.4 | ) |
| Net Income<br> (loss) | ($ | 0.7 | ) | ($ | 0.2 | ) | ($ | 1.2 | ) | ($ | 1.2 | ) | ($ | 3.3 | ) | ($ | 0.8 | ) | $ | 0.1 | ($ | 0.3 | ) | $ | 0.5 | ($ | 0.6 | ) |
| Diluted Earnings (loss) Per<br> Share | ($ | 0.07 | ) | ($ | 0.02 | ) | ($ | 0.12 | ) | ($ | 0.12 | ) | ($ | 0.33 | ) | ($ | 0.08 | ) | $ | 0.01 | ($ | 0.03 | ) | $ | 0.04 | ($ | 0.05 | ) |
| Cash Flow<br> from Operations | $ | 0.9 | ($ | 0.4 | ) | ($ | 0.1 | ) | ($ | 0.4 | ) | $ | 0.1 | $ | 0.4 | $ | 0.6 | $ | 0.7 | $ | 0.5 | $ | 2.1 | |||||
| Zedge Premium -<br> GTV | $ | 0.04 | $ | 0.12 | $ | 0.16 | $ | 0.17 | $ | 0.49 | $ | 0.19 | $ | 0.20 | $ | 0.15 | $ | 0.19 | $ | 0.73 | ||||||||
| MAU | 34.6 | 36.7 | 34.0 | 33.8 | NM | 29.7 | 34.3 | 28.8 | 31.9 | NM | ||||||||||||||||||
| Well-developed<br> Markets | 14.0 | 14.2 | 12.6 | 11.8 | NM | 10.0 | 11.3 | 9.0 | 9.6 | NM | ||||||||||||||||||
| Emerging<br> Markets | 20.6 | 22.5 | 21.4 | 22.0 | NM | 19.7 | 23.0 | 19.8 | 22.3 | NM | ||||||||||||||||||
| ARPMAU | $ | 0.021 | $ | 0.022 | $ | 0.017 | $ | 0.019 | NM | $ | 0.021 | $ | 0.026 | $ | 0.022 | $ | 0.028 | NM | ||||||||||
| Paid Subscriptions<br> (in 000s) | 0 | 1 | 64 | 134 | NM | 200 | 298 | 399 | 504 | NM |
NM = not measurable/meaningful
| Year-over-year<br> Change: Fiscal 2020 versus Fiscal 2019 | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q120 | Q220 | Q320 | Q420 | FY20 | |||||||||||
| Total<br> Revenue | -14.6 | % | 2.8 | % | 8.7 | % | 39.2 | % | 7.4 | % | |||||
| Advertising<br> Revenue | -24.2 | % | -4.8 | % | -10.2 | % | 16.9 | % | -6.7 | % | |||||
| Subscription<br> Revenue | NM | NM | 1650 | % | 377.7 | % | 931.6 | % | |||||||
| Other<br> Revenue | -13.1 | % | -68.7 | % | -43.1 | % | -6.4 | % | -36.1 | % | |||||
| Zedge<br> Premium - GTV | 368.3 | % | 66.9 | % | -5.7 | % | 13.1 | % | 50.0 | % | |||||
| MAU | -14.2 | % | -6.5 | % | -15.3 | % | -5.7 | % | NM | ||||||
| Well-developed<br> Markets | -28.6 | % | -20.4 | % | -28.6 | % | -18.6 | % | NM | ||||||
| Emerging<br> Markets | -4.4 | % | 2.2 | % | -7.5 | % | 1.4 | % | NM | ||||||
| ARPMAU | 0.0 | % | 18.2 | % | 29.4 | % | 50.2 | % | NM | ||||||
| Paid<br> Subscriptions (in 000s) | - | - | 523.4 | % | 277.0 | % | NM |
NM = not measurable/meaningful
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Fiscal2021 Commentary
“Our momentum has continued into the first quarter, and we are excited by the opportunity of further diversifying our existing revenue streams in the future,” continued Reich, “We expect to introduce new features, products and monetization models to drive continued growth beyond the strength we are seeing in our flagship Zedge app, as well as our Zedge Premium marketplace. As we look to the full-year, we are targeting revenue growth of greater than 20%, continued positive cash flow and profitability on a quarterly and full-year basis.”
EarningsAnnouncement and Supplemental Information
Zedge’s earnings release will be filed on Form 8-K and posted on the Zedge investor relations website (https://investor.zedge.net) at approximately 4:10PM Eastern on October 22, 2020.
Zedge’s management will host an earnings conference call beginning at 4:30PM Eastern. Management’s presentation of the results, outlook and strategy will be followed by Q&A with investors.
To participate in the call, please dial Toll Free: 844-602-0380 or International: 862-298-0970 at least five minutes before the 4:30PM Eastern start and ask for the Zedge earnings conference call.
The call will also be webcast through the following link and will be live through Tuesday, December 22, 2020: https://www.webcaster4.com/Webcast/Page/2205/37697
Following the call and continuing through Thursday, November 05, 2020 a call replay will be available by dialing Toll Free: 877-481-4010 or International: 919-882-2331 and entering the replay access code: 37697
AboutZedge
Zedge offers a state-of-the-art digital publishing platform that powers our consumer-facing app availing users with a host of digital content – wallpapers, video wallpapers, ringtones, and stickers. We are evolving by developing new apps run on top of our publishing platform and generally focus on the entertainment vertical. Our creators are amateur and professional artists as well as new and major brands who can easily launch a virtual storefront in Zedge where they can market and sell their content to our user base. Our app has been downloaded 450 million times, has approximately 32 million monthly active users and has consistently been ranked as one of the most popular free apps in Google Play in the US. For more information, visit https://www.zedge.net.
ForwardLooking Statements
Allstatements above that are not purely about historical facts, including, but not limited to, those in which we use the words “believe,”“anticipate,” “expect,” “plan,” “intend,” “estimate,” “target”and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results maydiffer materially from the results expressed or implied by these statements due to numerous important factors. Our filings withthe SEC provide detailed information on such statements and risks and should be consulted along with this release. To the extentpermitted under applicable law, we assume no obligation to update any forward-looking statements.
Contact:
Hayden IR
Brian Siegel
zdge@haydenir.com
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ZEDGE,INC.
CONSOLIDATEDBALANCE SHEETS
(inthousands, except par value data)
| July 31, | 2019 | ||||
|---|---|---|---|---|---|
| Assets | |||||
| Current<br> assets: | |||||
| Cash and<br> cash equivalents | 5,111 | $ | 1,609 | ||
| Trade accounts receivable,<br> net of allowance for doubtful accounts of 0 at July 31, 2020 and 2019 | 1,407 | 1,133 | |||
| Prepaid expenses | 123 | 380 | |||
| Other<br> current assets | 113 | 103 | |||
| Total<br> current assets | 6,754 | 3,225 | |||
| Property and equipment,<br> net | 2,584 | 3,396 | |||
| Goodwill | 2,196 | 2,266 | |||
| Other<br> assets | 471 | 120 | |||
| Total<br> assets | 12,005 | $ | 9,007 | ||
| Liabilities<br> and stockholders’ equity | |||||
| Current<br> liabilities: | |||||
| Trade accounts payable | 290 | $ | 217 | ||
| Insurance premium<br> loan payable | - | 141 | |||
| Accrued expenses and<br> other current liabilities | 1,210 | 1,172 | |||
| Deferred<br> revenues | 1,338 | 517 | |||
| Total<br> current liabilities | 2,838 | 2,047 | |||
| Loans Payable | 218 | - | |||
| Other<br> liabilities | 64 | - | |||
| Total<br> liabilities | 3,120 | 2,047 | |||
| Commitments<br> and contingencies (Note 9) | |||||
| Stockholders’<br> equity: | |||||
| Preferred stock, .01<br> par value; authorized shares—2,400; no shares issued | - | - | |||
| Class A common stock,<br> .01 par value; authorized shares—2,600; 525 shares issued and outstanding at July 31, 2020 and 2019 | 5 | 5 | |||
| Class B common stock,<br> .01 par value; authorized shares—40,000; 11,789 shares issued and 11,749 shares outstanding at July 31, 2020, and 9,876<br> shares issued and 9,854 ouststanding at July 31, 2019 | 118 | 99 | |||
| Additional paid-in<br> capital | 25,725 | 23,131 | |||
| Accumulated other<br> comprehensive loss | (1,085 | ) | (985 | ) | |
| Accumulated deficit | (15,802 | ) | (15,243 | ) | |
| Treasury<br> stock, 40 shares at July 31, 2020 and 22 shares at July 31, 2019, at cost | (76 | ) | (47 | ) | |
| Total<br> stockholders’ equity | 8,885 | 6,960 | |||
| Total<br> liabilities and stockholders’ equity | 12,005 | $ | 9,007 |
All values are in US Dollars.
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ZEDGE,INC.CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS(in thousands, except per share data)
| Year<br> ended July 31, | 2020 | 2019 | ||||
|---|---|---|---|---|---|---|
| Revenues | $ | 9,470 | $ | 8,816 | ||
| Costs and expenses: | ||||||
| Direct cost of revenues<br> (exclusive of amortization of capitalized software and technology development costs included below) | 1,195 | 1,379 | ||||
| Selling, general<br> and administrative | 7,110 | 8,897 | ||||
| Depreciation and<br> amortization | 1,568 | 1,427 | ||||
| Loss from operations | (403 | ) | (2,887 | ) | ||
| Interest and other<br> income (expense), net | 11 | (199 | ) | |||
| Net loss resulting<br> from foreign exchange transactions | (152 | ) | (242 | ) | ||
| Loss before income taxes | (544 | ) | (3,328 | ) | ||
| Provision for income<br> taxes | 15 | 16 | ||||
| Net loss | (559 | ) | (3,344 | ) | ||
| Other comprehensive<br> loss: | ||||||
| Changes in foreign currency<br> translation adjustment | (100 | ) | (283 | ) | ||
| Total other comprehensive loss | (100 | ) | (283 | ) | ||
| Total comprehensive loss | $ | (659 | ) | $ | (3,627 | ) |
| Loss<br> per share attributable to Zedge, Inc. common stockholders: | ||||||
| Basic and diluted | $ | (0.05 | ) | $ | (0.33 | ) |
| Weighted-average<br> number of shares used in calculation of loss per share: | ||||||
| Basic and diluted | 11,086 | 10,083 |
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ZEDGE,INC.CONSOLIDATED STATEMENTS OF CASH FLOWS(in thousands)
| Year<br> ended July 31, | 2020 | 2019 | ||||
|---|---|---|---|---|---|---|
| Operating activities | ||||||
| Net loss | $ | (559 | ) | $ | (3,344 | ) |
| Adjustments to reconcile net loss to<br> net cash provided by operating activities: | ||||||
| Depreciation and amortization | 1,568 | 1,427 | ||||
| Impairment of investment<br> in privately-held company | - | 250 | ||||
| Loss on disposal of furniture<br> and fixtures | - | 3 | ||||
| Stock-based compensation | 492 | 619 | ||||
| Change in assets and liabilities: | ||||||
| Trade accounts receivable | (274 | ) | 644 | |||
| Prepaid expenses and other<br> current assets | 247 | 277 | ||||
| Other assets | (55 | ) | 5 | |||
| Trade accounts payable<br> and accrued expenses | (118 | ) | (311 | ) | ||
| Deferred revenue | 821 | 506 | ||||
| Net cash provided by operating activities | 2,122 | 76 | ||||
| Investing activities | ||||||
| Capitalized software and<br> technology development costs and purchase of equipment | (759 | ) | (1,490 | ) | ||
| Investment in privately-held<br> company | - | (250 | ) | |||
| Net cash used in investing activities | (759 | ) | (1,740 | ) | ||
| Financing activities | ||||||
| Proceeds from sales of<br> Class B Common Stock | 2,250 | - | ||||
| Payment of issuance costs | (141 | ) | - | |||
| Proceeds from PPP loan<br> payable | 218 | - | ||||
| Repayment of insurance<br> premium loan payable | (141 | ) | - | |||
| Proceeds from exercise<br> of stock options | 12 | 5 | ||||
| Purchase of treasury stock<br> in connection with restricted stock vesting | (29 | ) | (47 | ) | ||
| Net cash provided by (used in) financing<br> activities | 2,169 | (42 | ) | |||
| Effect of exchange rate changes on<br> cash and cash equivalents | (30 | ) | (93 | ) | ||
| Net increase (decrease) in cash and<br> cash equivalents | 3,502 | (1,799 | ) | |||
| Cash and cash equivalents at beginning<br> of year | 1,609 | 3,408 | ||||
| Cash and cash equivalents at end of<br> year | $ | 5,111 | $ | 1,609 | ||
| SUPPLEMENTAL DISCLOSURE<br> OF CASH FLOW INFORMATION | ||||||
| Cash payments made for income taxes | $ | 1 | $ | 1 | ||
| Cash payments made for interest expenses | $ | 3 | $ | - | ||
| SUPPLEMENTAL SCHEDULE<br> OF NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||||
| Note payable issued for insurance premium<br> financing | $ | - | $ | 141 |
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