MALVERN, Penn.--(BUSINESS WIRE)--USA Technologies, Inc. (NASDAQ:USAT) (“USAT”), a premier payment technology service provider of integrated cashless and mobile transactions in the self-service retail market, today reported results for its fourth quarter and fiscal year ended June 30, 2017.
Fourth Quarter Financial Highlights:
- Achieved record quarterly revenue of $34.3 million, a year-over-year increase of 56% marking the 31st consecutive quarter of growth
- Record net connections of 64,000, a year-over-year increase of 129%
- Quarterly record license and transaction fee revenue of $18.7 million, a year-over-year increase of 22%
- Operating income of $432,000, compared to an operating loss of $1.6 million in the prior year period
- Ended the quarter with $12.7 million in cash, which excludes $11.0 million of short-term finance receivables
- Quarterly GAAP net income of $0.2 million, or $0.01 per share, compared to a net loss of $(872,000), or $(0.02) per share for the prior year period
- Quarterly Non-GAAP net income of $0.2 million, or $0.01 per share, compared to Non-GAAP net loss of $(1.4) million, or $(0.04) per share for the prior year period
- Quarterly Adjusted EBITDA of $2.8 million, a year-over-year increase of 344%
Fiscal Year Financial Highlights:
- Record total revenue of $104.1 million, a year-over-year increase of 35%
- Record 568,000 net connections to ePort service as of June 30, 2017, representing a year-over-year increase of 32%
- Record net connections of 139,000, a year-over-year increase of 45%
- Achieved a record 12,700 total customers, a year-over-year increase of 15%
- Net loss was $(1.9) million, or $(0.06) per share, compared to a net loss of $(6.8) million, or $(0.21) per share for the fiscal year of 2016. The net loss for the fiscal year reflected a $1.5 million non-cash charge for the change in the fair value of warrant liabilities
- Non-GAAP net loss was $(0.2) million, or $(0.02) per share, compared to non-GAAP net loss of $(0.7) million, of $(0.04) per share for the prior year period
- Adjusted EBITDA of $7.1 million, a year-over-year increase of 18%
Fourth Quarter and Fiscal Year Financial Highlights, Connections & Transaction Data:
| As of and for the three months ended | ||||||||||||
| June 30, | ||||||||||||
|
($'s in thousands, transactions in millions) |
2017 | 2016 | Change | % Change | ||||||||
| Revenues: | ||||||||||||
| License and transaction fees | $ | 18,679 | $ | 15,263 | $ | 3,416 | 22.4% | |||||
| Equipment sales | 15,610 | 6,681 | 8,929 | 133.6% | ||||||||
| Total revenues | $ | 34,289 | $ | 21,944 | $ | 12,345 | 56.3% | |||||
| License and transaction fee margin | 32.8% | 30.5% | 2.3% | |||||||||
| Equipment sales gross margin | 8.9% | 17.0% | -8.1% | |||||||||
| Overall Gross Margin | 21.9% | 26.4% | (4.5%) | |||||||||
| Operating income/(loss) | $ | 432 | $ | (1,578) | $ | 2,010 | 127.4% | |||||
| Net income/(loss) | $ | 243 | $ | (872) | $ | 1,115 | 127.9% | |||||
| Net loss per common shares - basic and diluted | $ | 0.01 | $ | (0.02) | $ | 0.03 | 150.0% | |||||
| Net cash provided by (used in) operating activities | $ | (2,476) | $ | 1,273 | $ | (3,749) | (294.5%) | |||||
| Net New Connections | 64,000 | 28,000 | 36,000 | 128.6% | ||||||||
| Total Connections (at period end) | 568,000 | 429,000 | 139,000 | 32.4% | ||||||||
| Total Number of Transactions (millions) | 114.8 | 89.3 | 25.5 | 28.6% | ||||||||
| Transaction Volume (millions) | $ | 225.6 | $ | 169.0 | $ | 56.6 | 33.5% | |||||
| Adjusted EBITDA | $ | 2,781 | $ | 626 | $ | 2,155 | 344.2% | |||||
| Non-GAAP net income (loss) | $ | 203 | $ | (1,373) | $ | 1,576 | 114.8% | |||||
| Basic weighted average number of common shares outstanding | 40,331,993 | 37,325,681 | 3,006,312 | 8.1% | ||||||||
| Diluted weighted average number of common shares outstanding | 40,772,482 | 37,325,681 | 3,446,801 | 9.2% | ||||||||
| Non-GAAP net earnings (loss) per common share - basic and diluted | 0.01 | (0.04) | 0.04 | (113.7%) | ||||||||
| As of and for the year ended | ||||||||||||
| June 30, | ||||||||||||
|
($'s in thousands, transactions in millions) |
2017 | 2016 | Change | % Change | ||||||||
| Revenues: | ||||||||||||
| License and transaction fees | $ | 69,142 | $ | 56,589 | $ | 12,553 | 22.2% | |||||
| Equipment sales | 34,951 | 20,819 | 14,132 | 67.9% | ||||||||
| Total revenues | $ | 104,093 | $ | 77,408 | $ | 26,685 | 34.5% | |||||
| License and transaction fee margin | 31.9% | 32.7% | (0.7%) | |||||||||
| Equipment sales gross margin | 13.0% | 16.7% | (3.7%) | |||||||||
| Overall Gross Margin | 25.6% | 28.4% | (2.8%) | |||||||||
| Operating (loss)/income | $ | 135 | $ | (1,467) | $ | 1,602 | (109.2%) | |||||
| Net loss | $ | (1,852) | $ | (6,806) | $ | 4,954 | 72.8% | |||||
| Net loss per common shares - basic and diluted | $ | (0.06) | $ | (0.21) | $ | 0.15 | 71.4% | |||||
| Net cash provided by (used in) operating activities | $ | (6,771) | $ | 6,468 | $ | (13,239) | (204.7%) | |||||
| Net New Connections | 139,000 | 96,000 | 43,000 | 44.8% | ||||||||
| Total Connections (at period end) | 568,000 | 429,000 | 139,000 | 32.4% | ||||||||
| Total Number of Transactions (millions) | 414.9 | 315.8 | 99.1 | 31.4% | ||||||||
| Transaction Volume (millions) | $ | 803.0 | $ | 584.4 | $ | 218.6 | 37.4% | |||||
| Adjusted EBITDA | $ | 7,077 | $ |
5,983 |
$ | 7,790 | (1092.6%) | |||||
| Non-GAAP net income (loss) | $ | (166) | $ | (713) | $ | 547 | (76.7%) | |||||
| Cumulative preferred dividends | (668) | (668) | — | 0.0% | ||||||||
| Net (loss) income applicable to common shares | (834) | (1,381) | 547 | (39.6%) | ||||||||
| Basic weighted average number of common shares outstanding |
39,860,335 |
36,309,047 |
3,551,288 |
9.8% |
||||||||
| Diluted weighted average number of common shares outstanding |
39,860,335 |
36,309,047 |
3,551,288 |
9.8% |
||||||||
| Non-GAAP net earnings (loss) per common share - basic and diluted | (0.02) | (0.04) | 0.02 |
(45.0%) |
||||||||
“Our fiscal fourth quarter performance capped a strong year for USA Technologies. We achieved record revenue, and added the highest number of connections to our ePort service in the company’s history. We are executing well in an accelerating market and have exceeded our long-term goals of attaining $100 million in annual revenue and 500,000 connections this fiscal year,” said Stephen P. Herbert, USA Technologies’ chairman and chief executive officer. “Moreover, we strengthened our balance sheet by completing a follow-on offering at the end of July, raising $43.1 million in gross proceeds, to extend our leadership in the unattended retail payments industry with the flexibility to continue our organic growth and pursue potential inorganic growth opportunities that are accretive and strategically complementary. We are excited about the opportunity ahead of us and believe that we can continue to deliver returns for shareholders through increased growth and profitability.”
Fiscal Year 2018 Outlook
For the full fiscal year 2018, USA Technologies expects to add between 170,000 and 175,000 net new connections for the year, bringing total connections to a range of 738,000 to 743,000. The company expects total revenue to be between $122 million and $127 million and adjusted EBITDA to grow 35% to 50% to a range of $9.6 million to $10.6 million.
We have not reconciled our adjusted EBITDA outlook to GAAP net income (loss) due to the uncertainty and potential variability of the provision for (benefit from) income taxes, which is a reconciling item between adjusted EBITDA and GAAP net income (loss). Because this item cannot be reasonably predicted and could have a significant impact on the calculation of GAAP net income (loss), we have not provided guidance for GAAP net income (loss) or a reconciliation of our adjusted EBITDA outlook to GAAP net income (loss). Accordingly, a GAAP net income (loss) outlook and a reconciliation of adjusted EBITDA outlook to GAAP net income (loss) is not available without unreasonable effort. For information regarding the reconciliation of historical non-GAAP financial measures to the nearest comparable GAAP measures, see "Non-GAAP Financial Measures" and the reconciliation tables included in this press release under “Financial Schedules”.
Webcast and Conference Call
USA Technologies will host a conference call and webcast the event beginning at 8:30 a.m. Eastern Time today, August 22, 2017.
To participate in the conference call, please dial (866) 393-1608 approximately 10 minutes prior to the call. International callers should dial (224) 357-2194. Please reference conference ID # 67222406.
A live webcast of the conference call will be available at http://usat.client.shareholder.com/events.cfm. Please access the website 15 minutes prior to the start of the call to download and install any necessary audio software. A telephone replay of the conference call will be available from 11:30 a.m. Eastern Time on August 22, 2017 until 11:30 a.m. Eastern Time on August 25, 2017 and may be accessed by calling (855) 859-2056 (domestic dial-in) or (404) 537-3406 (international dial-in) and reference conference ID # 67222406. An archived replay of the conference call will also be available in the investor relations section of the company's website.
About USA Technologies
USA Technologies, Inc. is a premier payment technology service provider of integrated cashless and mobile transactions in the self-service retail market. The company also provides a broad line of cashless acceptance technologies including its NFC-ready ePort® G-series, ePort® Connect, ePort® Interactive, QuickConnect, an API Web service for developers, and MORE., a customizable loyalty program. USA Technologies has 73 United States and foreign patents in force; and has agreements with Verizon, Visa, Chase Paymentech and customers such as Compass, AMI Entertainment and others. For more information, please visit the website at www.usatech.com.
Discussion of Non-GAAP Financial Measures:
This press release contains certain non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP (Generally Accepted Accounting Principles). Reconciliations between non-GAAP and GAAP measures are set forth above in Financial Schedules (D) and (H).
The following non-GAAP financial measures are discussed herein: adjusted EBITDA, non-GAAP net income (loss) and non-GAAP net earnings (loss) per common share – basic and diluted. The presentation of these additional financial measures is not intended to be considered in isolation from, or superior to, or as a substitute for the financial measures prepared and presented in accordance with GAAP, including the net income or net loss of USAT or net cash provided/used by operating activities. Management recognizes that non-GAAP financial measures have limitations in that they do not reflect all of the items associated with USAT's net income or net loss as determined in accordance with GAAP. These non-GAAP financial measures are not required by or defined under GAAP and may be materially different from the non-GAAP financial measures used by other companies. USAT has provided above in Financial Schedules (D) and (H) the reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
As used herein, non-GAAP net income (loss) represents GAAP net income (loss) excluding costs or benefits relating to any adjustment for fair value of warrant liabilities and non-cash portions of the Company’s income tax benefit (provision), non-recurring fees and charges that were incurred in connection with the acquisition and integration of the VendScreen business, and professional fees incurred in connection with the class action litigation and the special litigation committee investigation. Non-GAAP net earnings (loss) per common share is calculated by dividing non-GAAP net income (loss) by the number of weighted average shares outstanding. Management believes that non-GAAP net income (loss) is an important measure of USAT’s business. Non-GAAP net income (loss) is a non-GAAP financial measure which is not required by or defined under GAAP. The presentation of this financial measure is not intended to be considered in isolation or as a substitute for the financial measures prepared and presented in accordance with GAAP, including the net income or net loss of the Company or net cash used in operating activities. Management recognizes that non-GAAP financial measures have limitations in that they do not reflect all of the items associated with the Company’s net income or net loss as determined in accordance with GAAP, and are not a substitute for or a measure of the Company’s profitability or net earnings. Management believes that non-GAAP net income (loss) and non-GAAP net earnings (loss) per share are important measures of the Company's business. Management uses the aforementioned non-GAAP measures to monitor and evaluate ongoing operating results and trends and to gain an understanding of our comparative operating performance. We believe that this non-GAAP financial measure serves as a useful metric for our management and investors because they enable a better understanding of the long-term performance of our core business and facilitate comparisons of our operating results over multiple periods, and when taken together with the corresponding GAAP financial measures and our reconciliations, enhance investors’ overall understanding of our current and future financial performance. Additionally, the Company utilizes non-GAAP net income (loss) as a metric in its executive officer and management incentive compensation plans.
As used herein, Adjusted EBITDA represents net loss before interest income, interest expense, income taxes, depreciation, amortization, non-recurring fees and charges that were incurred in connection with the acquisition and integration of the VendScreen business, professional fees incurred in connection with the class action litigation incurred during the fiscal year, impairment charges related to our EnergyMiser asset trademarks, change in fair value of warrant liabilities, and stock-based compensation expense. We have excluded the non-operating item, change in fair value of warrant liabilities, because it represents a non-cash gain or charge that is not related to the Company’s operations. We have excluded the non-cash expense, stock-based compensation, as it does not reflect the cash-based operations of the Company. We have excluded the non-recurring costs and expenses incurred in connection with the VendScreen transaction in order to allow more accurate comparison of the financial results to historical operations. We have excluded the professional fees incurred in connection with the class action litigation as well as the trademark impairment charges because we believe that they represent a charge that is not related to the Company's operations. Adjusted EBITDA is a non-GAAP financial measure which is not required by or defined under GAAP. We use these non-GAAP financial measures for financial and operational decision-making purposes and as a means to evaluate period-to-period comparisons. We believe that these non-GAAP financial measures provide useful information about our operating results, enhance the overall understanding of past financial performance and future prospects and allow for greater transparency with respect to metrics used by our management in its financial and operational decision making. The presentation of this financial measure is not intended to be considered in isolation or as a substitute for the financial measures prepared and presented in accordance with GAAP, including the net income or net loss of the Company or net cash used in operating activities. Management recognizes that non-GAAP financial measures have limitations in that they do not reflect all of the items associated with the Company’s net income or net loss as determined in accordance with GAAP, and are not a substitute for or a measure of the Company’s profitability or net earnings. Adjusted EBITDA is presented because we believe it is useful to investors as a measure of comparative operating performance. Additionally, the Company utilizes Adjusted EBITDA as a metric in its executive officer and management incentive compensation plans.
Forward-looking Statements:
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: All statements other than statements of historical fact included in this release, including without limitation the business strategy and the plans and objectives of USAT's management for future operations, are forward-looking statements. When used in this release, words such as "anticipate", "believe", "estimate", "expect", "intend", and similar expressions, as they relate to USAT or its management, identify forward looking statements. Such forward-looking statements are based on the beliefs of USAT's management, as well as assumptions made by and information currently available to USAT's management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including but not limited to, the ability of management to accurately predict or forecast future financial results, including earnings or taxable income of USAT; the incurrence by USAT of any unanticipated or unusual non-operational expenses which would require us to divert our cash resources from achieving our business plan; the ability of USAT to retain key customers from whom a significant portion of its revenues is derived; the ability of USAT to compete with its competitors to obtain market share; whether USAT's customers continue to utilize USAT's transaction processing and related services, as our customer agreements are generally cancelable by the customer on thirty to sixty days' notice; the ability of USAT to raise funds in the future through the sales of securities or debt financings in order to sustain its operations if an unexpected or unusual non-operational event would occur; the ability of USAT to use available data to predict future market conditions, consumer behavior and any level of cashless usage; the ability to prevent a security breach of our systems or services or third party services or systems utilized by us; whether any patents issued to USAT will provide USAT with any competitive advantages or adequate protection for its products, or would be challenged, invalidated or circumvented by others; the ability of USAT to operate without infringing or violating the intellectual property rights of others; the ability of the Company to sell to third party lenders all or a portion of our finance receivables; the ability of a sufficient number of our customers to utilize third party financing companies under our QuickStart program which would improve our net cash used by operating activities; whether USAT experiences material weaknesses in its internal controls over financial reporting in future periods, which would result in USAT not being able to accurately or timely report its financial condition or results of operations; and whether USAT's existing or anticipated customers purchase, rent or utilize ePort devices or our other products or services in the future at levels currently anticipated by USAT. Readers are cautioned not to place undue reliance on these forward-looking statements. Any forward-looking statement made by us in this release speaks only as of the date of this release. Unless required by law, USAT does not undertake to release publicly any revisions to these forward-looking statements to reflect future events or circumstances or to reflect the occurrence of unanticipated events.
F-USAT
Financial Schedules:
A. Statements of Operations for the 3 Months and Fiscal Years Ended June 30, 2017 and June 30, 2016
B. Five Quarter Select Key Performance Indicators
C. Comparative Balance Sheets at June 30, 2017 and at June 30, 2016
D. Five Quarter Statements of Operations and Adjusted EBITDA
E. Five Quarter and YTD Selling, General, & Administrative Expenses
F. Five Quarter Condensed Balance Sheets
G. Five Quarter Statements of Cash Flows
H. Five Quarter Reconciliation of Net Income/(Loss) to Non-GAAP Net Income (Loss) and Net Earnings/(Loss) Per Common Share - Basic and Diluted to Non-GAAP Net Earnings/(Loss) Per Common Share - Basic and Diluted
I. Annual Reconciliation of Net Loss to Non-GAAP Net Loss and Net Loss Per Common Share - Basic and Diluted to Non-GAAP Net Loss Per Common Share - Basic and Diluted
(A) Statement of Operations for the 3 Months and Fiscal Years Ended June 30, 2017 and June 30, 2016
| For the three months ended June 30, | |||||||||||||||
| ($ in thousands, except shares and per share data) | 2017 | % of Sales | 2016 | % of Sales | Change | % Change | |||||||||
| Revenues: | |||||||||||||||
| License and transaction fees | $ | 18,679 | 54.5% | $ | 15,263 | 69.6% | $ | 3,416 | 22.4% | ||||||
| Equipment sales | 15,610 | 45.5% | 6,681 | 30.4% | 8,929 | 133.6% | |||||||||
| Total revenues | 34,289 | 100.0% | 21,944 | 100.0% | 12,345 | 56.3% | |||||||||
| Costs of sales/revenues: | |||||||||||||||
| Cost of services | 12,545 | 67.2% | 10,613 | 69.5% | 1,932 | 18.2% | |||||||||
| Cost of equipment | 14,224 | 91.1% | 5,548 | 83.0% | 8,676 | 156.4% | |||||||||
| Total costs of sales/revenues | 26,769 | 158.3% | 16,161 | 152.6% | 10,608 | 65.6% | |||||||||
| Gross profit | 7,520 | 21.9% | 5,783 | 26.4% | 1,737 | 30.0% | |||||||||
| Operating expenses: | |||||||||||||||
| Selling, general and administrative | 6,844 | 20.0% | 6,721 | 30.6% | 123 | 1.8% | |||||||||
| Depreciation and amortization | 244 | 0.7% | 208 | 0.9% | 36 | 17.3% | |||||||||
| Impairment of intangible asset | — | 0.0% | 432 | 2.0% | (432) | (100.0%) | |||||||||
| Total operating expenses | 7,088 | 20.7% | 7,361 | 33.5% | (273) | (3.7%) | |||||||||
| Operating income (loss) | 432 | 1.3% | (1,578) | (7.2%) | 2,010 | (127.4%) | |||||||||
| Other income (expense): | |||||||||||||||
| Interest income | 95 | 0.3% | 182 | 0.8% | (87) | (47.8%) | |||||||||
| Interest expense | (291) | (0.8%) | (197) | (0.9%) | (94) | (47.7%) | |||||||||
| Change in fair value of warrant liabilities | — | 0.0% | 18 | 0.1% | (18) | 100.0% | |||||||||
| Total other expense, net | (196) | (0.6%) | 3 | 0.0% | (199) | (6633.3%) | |||||||||
| Loss before (provision) benefit for income taxes | 236 | 0.7% | (1,575) | (7.2%) | 1,811 | 115.0% | |||||||||
| Benefit (provision) for income taxes | 7 | 0.0% | 703 | 3.2% | (696) | 99.0% | |||||||||
| Net income (loss) | 243 | 0.7% | (872) | (4.0%) | 1,115 | 127.9% | |||||||||
| Cumulative preferred dividends | — | 0.0% | — | 0.0% | — | 0.0% | |||||||||
| Net income (loss) applicable to common shares | $ | 243 | 0.7% | $ | (872) | (4.0%) | $ | 1,115 | 127.9% | ||||||
| Net income (loss) per common share - basic | $ | 0.01 | $ | (0.02) | $ | 0.03 | 150.0% | ||||||||
| Net income (loss) per common share - diluted | $ | 0.01 | $ | (0.02) | $ | 0.03 | 150.0% | ||||||||
| Basic weighted average number of common shares outstanding | 40,331,993 | 37,325,681 | 3,006,312 | 8.1% | |||||||||||
| Diluted weighted average number of common shares outstanding | 40,772,482 | 37,325,681 | 3,446,801 | 9.2% | |||||||||||
| For the year ended June 30, | |||||||||||||||
| ($ in thousands, except shares and per share data) | 2017 | % of Sales | 2016 | % of Sales | Change | % Change | |||||||||
| Revenues: | |||||||||||||||
| License and transaction fees | $ | 69,142 | 66.4% | $ | 56,589 | 73.1% | $ | 12,553 | 22.2% | ||||||
| Equipment sales | 34,951 | 33.6% | 20,819 | 26.9% | 14,132 | 67.9% | |||||||||
| Total revenues | 104,093 | 100.0% | 77,408 | 100.0% | 26,685 | 34.5% | |||||||||
| Costs of sales/revenues: | |||||||||||||||
| Cost of services | $ | 47,053 | 68.1% | $ | 38,089 | 67.3% | 8,964 | 23.5% | |||||||
| Cost of equipment | 30,394 | 87.0% | 17,334 | 83.3% | 13,060 | 75.3% | |||||||||
| Total costs of sales/revenues | 77,447 | 74.4% | 55,423 | 71.6% | 22,024 | 39.7% | |||||||||
| Gross profit | 26,646 | 25.6% | 21,985 | 28.4% | 4,661 | 21.2% | |||||||||
| Operating expenses: | |||||||||||||||
| Selling, general and administrative | 25,493 | 24.5% | 22,373 | 28.9% | 3,120 | 13.9% | |||||||||
| Depreciation and amortization | 1,018 | 1.0% | 647 | 0.8% | 371 | 57.3% | |||||||||
| Impairment of intangible asset | — | 0.0% | 432 | 0.6% | (432) | (100.0%) | |||||||||
| Total operating expenses | 26,511 | 25.5% | 23,452 | 30.3% | 3,059 | 13.0% | |||||||||
| Operating (loss) income | 135 | 0.1% | (1,467) | (1.9%) | 1,602 | (109.2%) | |||||||||
| Other income (expense): | |||||||||||||||
| Interest income | 482 | 0.5% | 320 | 0.4% | 162 | 50.6% | |||||||||
| Interest expense | (892) | (0.9%) | (600) | (0.8%) | (292) | (48.7%) | |||||||||
| Change in fair value of warrant liabilities | (1,490) | (1.4%) | (5,674) | (7.3%) | 4,184 | 73.7% | |||||||||
| Total other expense, net | (1,900) | (1.8%) | (5,954) | (7.7%) | 4,054 | 68.1% | |||||||||
| Loss before (provision) benefit for income taxes | (1,765) | (1.7%) | (7,421) | (9.6%) | 5,656 | 76.2% | |||||||||
| (Provision) benefit for income taxes | (87) | (0.1%) | 615 | 0.8% | (702) | 114.1% | |||||||||
| Net loss | (1,852) | (1.8%) | (6,806) | (8.8%) | 4,954 | 72.8% | |||||||||
| Cumulative preferred dividends | (668) | (0.6%) | (668) | (0.9%) | — | 0.0% | |||||||||
| Net loss applicable to common shares | (2,520) | (2.4%) | (7,474) | (9.7%) | $ | 4,954 | 66.3% | ||||||||
| Net loss per common share - basic and diluted | (0.06) | (0.21) | $ | 0.15 | 71.4% | ||||||||||
| Weighted average number of common shares outstanding - basic and diluted | 39,860,335 | 36,309,047 | 3,551,288 | 9.8% | |||||||||||
(B) Five Quarter Select Key Performance Indicators
| As of and for the three months ended | |||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||
| 2017 | 2017 | 2016 | 2016 | 2016 | |||||||||||
| Connections: | |||||||||||||||
| Gross New Connections | 70,000 | 40,000 | 25,000 | 22,000 | 33,000 | ||||||||||
| % from Existing Customer Base | 93% | 88% | 80% | 86% | 83% | ||||||||||
| Net New Connections | 64,000 | 35,000 | 21,000 | 19,000 | 28,000 | ||||||||||
| Total Connections | 568,000 | 504,000 | 469,000 | 448,000 | 429,000 | ||||||||||
| Customers: | |||||||||||||||
| New Customers Added | 300 | 500 | 500 | 350 | 300 | ||||||||||
| Total Customers | 12,700 | 12,400 | 11,900 | 11,400 | 11,050 | ||||||||||
| Volumes: | |||||||||||||||
| Total Number of Transactions (millions) | 114.8 | 104.9 | 100.1 | 95.1 | 89.3 | ||||||||||
| Transaction Volume (millions) | $ | 225.6 | $ | 202.5 | $ | 191.5 | $ | 183.4 | $ | 169.0 | |||||
| Financing Structure of Connections: | |||||||||||||||
| JumpStart | 6.7% | 8.6% | 6.8% | 7.7% | 6.5% | ||||||||||
| QuickStart & All Others * | 93.3% | 91.4% | 93.2% | 92.3% | 93.5% | ||||||||||
| Total | 100.0% | 100.0% | 100.0% | 100.0% | 0.0% | ||||||||||
(C) Comparative Balance Sheets at June 30, 2017 and June 30, 2016
| June 30, | June 30, | ||||||||||
| ($ in thousands) | 2017 | 2016 | Change | % Change | |||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and Cash Equivalents | $ | 12,745 | $ | 19,272 | $ | (6,527) | (33.9%) | ||||
| Accounts receivable, less allowance for doubtful accounts of $3,149 and $2,814, respectively | 7,193 | 4,899 | 2,294 | 46.8% | |||||||
| Finance receivables, less allowance for doubtful accounts of $19 and $0, respectively | 11,010 | 3,588 | 7,422 | 206.9% | |||||||
| Inventory | 4,586 | 2,031 | 2,555 | 125.8% | |||||||
| Prepaid expenses and other current assets | 968 | 987 | (19) | (0) | |||||||
| Total current assets | 36,502 | 30,777 | 5,725 | 18.6% | |||||||
| Finance receivables, less current portion | 8,607 | 3,718 | 4,889 | 131.5% | |||||||
| Other assets | 687 | 348 | 339 | 97.4% | |||||||
| Property and equipment, net | 12,111 | 9,765 | 2,346 | 24.0% | |||||||
| Deferred income taxes | 27,670 | 27,724 | (54) | (0.2%) | |||||||
| Intangibles, net | 622 | 798 | (176) | (22.1%) | |||||||
| Goodwill | 11,492 | 11,703 | (211) | (1.8%) | |||||||
| Total assets | $ | 97,691 | $ | 84,833 | $ | 12,858 | 15.2% | ||||
| Liabilities and shareholders’ equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 16,054 | $ | 12,354 | $ | 3,700 | 29.9% | ||||
| Accrued expenses | 4,130 | 3,458 | 672 | 19.4% | |||||||
| Line of credit, net | 7,036 | 7,119 | (83) | (1.2%) | |||||||
| Capital lease obligations and current obligations under long term debt | 3,230 | 629 | 2,601 | 413.5% | |||||||
| Income taxes payable | 10 | 18 | (8) | (44.4%) | |||||||
| Warrant liabilities | — | 3,739 | (3,739) | (100.0%) | |||||||
| Deferred gain from sale-leaseback transactions | 239 | 860 | (621) | (72.2%) | |||||||
| Total current liabilities | 30,699 | 28,177 | 2,522 | 9.0% | |||||||
| Long-term liabilities | |||||||||||
| Capital lease obligations and long term debt, less current portion | 1,061 | 1,576 | (515) | (32.7%) | |||||||
| Accrued expenses, less current portion | 53 | 15 | 38 | 253.3% | |||||||
| Deferred gain from sale-leaseback transactions, less current portion | 100 | 40 | 60 | 150.0% | |||||||
| Total long-term liabilities | 1,214 | 1,631 | (417) | (25.6%) | |||||||
| Total liabilities | 31,913 | 29,808 | 2,105 | 7.1% | |||||||
| Shareholders' equity: | |||||||||||
| Preferred stock, no par value | — | — | — | 0.0% | |||||||
| Series A convertible preferred stock | 3,138 | 3,138 | 3,138 | 100.0% | |||||||
| Common stock, no par value | 245,999 | 233,394 | 12,605 | 5.4% | |||||||
| Accumulated deficit | (183,359) | (181,507) | (1,852) | (1.0%) | |||||||
| Total shareholders' equity | 65,778 | 55,025 | 13,891 | 25.2% | |||||||
| Total liabilities and shareholders' equity | $ | 97,691 | $ | 84,833 | $ | 15,996 | 18.9% | ||||
| Net working capital | $ | 5,803 | $ | 2,600 | $ | 3,203 | 123.2% | ||||
(D) Five Quarter Statements of Operations and Adjusted EBITDA
| For the three months ended | |||||||||||||||||||||||||
| ($ in thousands) | June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||||||||
| (unaudited) | 2017 | % of Sales | 2017 | % of Sales | 2016 | % of Sales | 2016 | % of Sales | 2016 | % of Sales | |||||||||||||||
| Revenues: | |||||||||||||||||||||||||
| License and transaction fees | $ | 18,679 | 54.5% | $ | 17,459 | 76.5% | $ | 16,639 | 75.8% | $ | 16,365 | 69.6% | $ | 15,263 | 72.3% | ||||||||||
| Equipment Sales | 15,610 | 45.5% | 9,001 | 23.5% | 5,117 | 24.2% | 5,223 | 30.4% | 6,681 | 27.7% | |||||||||||||||
| Total revenue | 34,289 | 100.0% | 26,460 | 100.0% | 21,756 | 100.0% | 21,588 | 100.0% | 21,944 | 100.0% | |||||||||||||||
| Costs of sales/revenues: | |||||||||||||||||||||||||
| License and transaction fees | 12,545 | 67.2% | 11,876 | 68.4% | 11,389 | 68.7% | 11,243 | 69.5% | 10,614 | 65.9% | |||||||||||||||
| Equipment sales | 14,224 | 91.1% | 7,959 | 78.8% | 4,033 | 80.0% | 4,178 | 83.0% | 5,547 | 88.5% | |||||||||||||||
| Total costs of sales/revenues | 26,769 | 78.1% | 19,835 | 70.9% | 15,422 | 71.4% | 15,421 | 73.6% | 16,161 | 72.1% | |||||||||||||||
| Gross Profit: | |||||||||||||||||||||||||
| License and transaction fees | 6,134 | 32.8% | 5,583 | 31.6% | 5,250 | 31.3% | 5,122 | 30.5% | 4,649 | 34.1% | |||||||||||||||
| Equipment sales | 1,386 | 8.9% | 1,042 | 21.2% | 1,084 | 20.0% | 1,045 | 17.0% | 1,134 | 11.5% | |||||||||||||||
| Total gross profit | 7,520 | 21.9% | 6,625 | 29.1% | 6,334 | 28.6% | 6,167 | 26.4% | 5,783 | 27.9% | |||||||||||||||
| Operating expenses: | |||||||||||||||||||||||||
| Selling, general and administrative | 6,844 | 20.0% | 5,947 | 26.6% | 5,793 | 32.0% | 6,909 | 30.6% | 6,721 | 29.9% | |||||||||||||||
| Depreciation | 244 | 0.7% | 259 | 1.4% | 307 | 1.0% | 208 | 0.9% | 208 | 0.8% | |||||||||||||||
| Impairment of intangible asset | — | 0.0% | — | 0.0% | — | 0.0% |
|
— | 2.0% | 432 | 0.0% | ||||||||||||||
| Total operating expenses | 7,088 | 20.7% | 6,206 | 28.0% | 6,100 | 33.0% | 7,117 | 33.5% | 7,361 | 30.8% | |||||||||||||||
| Operating income (loss) | 432 | 1.3% | 419 | 1.1% | 234 | -4.4% | (950) | -7.2% | (1,578) | -2.9% | |||||||||||||||
| Other income (expense): | |||||||||||||||||||||||||
| Interest income | 95 | 0.3% | 114 | 0.9% | 200 | 0.3% | 73 | 0.8% | 182 | 0.3% | |||||||||||||||
| Interest expense | (291) | -0.8% | (188) | -0.9% | (201) | -1.0% | (212) | -0.9% | (197) | -0.9% | |||||||||||||||
| Change in fair value of warrant liabilities | — | 0.0% | — | 0.0% | — | -6.9% | (1,490) | 0.1% | 18 | -23.6% | |||||||||||||||
| Total other (expense) income , net | (196) | -0.6% | (74) | 0.0% | (1) | -7.5% | (1,629) | 0.0% | 3 | -24.2% | |||||||||||||||
| Income (loss) before provision for income taxes | 236 | 0.7% | 345 | 1.1% | 233 | -11.9% | (2,579) | -7.2% | (1,575) | -27.1% | |||||||||||||||
| (Provision) benefit for income taxes | 7 | 0.0% | (209) | 0.0% | — | 0.5% | 115 | 3.2% | 703 | 0.5% | |||||||||||||||
| Net income (loss) | 243 | 0.7% | 136 | 1.1% | 233 | -11.4% | (2,464) | -4.0% | (872) | -26.6% | |||||||||||||||
| Less interest income | (95) | -0.3% | (114) | -0.9% | (200) | -0.3% | (73) | -0.8% | (182) | -0.3% | |||||||||||||||
| Plus interest expenses | 291 | 0.8% | 188 | 0.9% | 201 | 1.0% | 212 | 0.9% | 197 | 0.9% | |||||||||||||||
| Plus income tax expense | (7) | 0.0% | 209 | 0.0% | — | -0.5% | (115) | -3.2% | (703) | -0.5% | |||||||||||||||
| Plus depreciation expense | 1,768 | 5.2% | 1,165 | 5.6% | 1,220 | 5.8% | 1,257 | 5.8% | 1,272 | 5.8% | |||||||||||||||
| Plus amortization expense | 43 | 0.1% | 45 | 0.2% | 43 | 0.2% | 44 | 0.2% | 44 | 0.2% | |||||||||||||||
| Plus (less) change in fair value of warrant liabilities | — | 0.0% | — | 0.0% | — | 6.9% | 1,490 | -0.1% | (18) | 23.6% | |||||||||||||||
| Plus stock-based compensation | 538 | 1.6% | 233 | 1.1% | 233 | 1.0% | 211 | 0.9% | 198 | 0.7% | |||||||||||||||
| Plus intangible asset impairment | — | 0.0% | — | 0.0% | — | 0.0% | — | 2.0% | 432 | 0.0% | |||||||||||||||
| Plus VendScreen non-recurring charges | — | 0.0% | — | 0.0% | 8 | 0.5% | 101 | 1.2% | 258 | 2.3% | |||||||||||||||
| Plus litigation related professional fees | — | 0.0% | — | 0.0% | — | 0.2% | 33 | 0.0% | — | 0.5% | |||||||||||||||
| Adjusted EBITDA | $ | 2,781 | 8.1% | $ | 1,862 | 8.0% | $ | 1,738 | 3.2% | $ | 696 | 2.9% | $ | 626 | 6.6% | ||||||||||
(E) Five Quarter and YTD Selling, General, & Administrative Expenses
| Three months ended | |||||||||||||||||||||||||
| June 30, | % of | March 31, | % of | December 31, | % of | September 30, | % of | June 30, | % of | ||||||||||||||||
| ($ in thousands) | 2017 | SG&A | 2017 | SG&A | 2016 | SG&A | 2016 | SG&A | 2016 | SG&A | |||||||||||||||
| Salaries and benefit costs | $ | 3,027 | 44.2% | $ | 3,060 | 49.2% | $ | 2,849 | 49.2% | $ | 3,129 | 45.3% | $ | 3,050 | 45.4% | ||||||||||
| Marketing related expenses | 731 | 10.7% | 569 | 10.0% | 578 | 10.0% | 329 | 4.8% | 635 | 9.4% | |||||||||||||||
| Professional services | 2,092 | 30.6% | 1,472 | 20.9% | 1,213 | 20.9% | 2,520 | 36.5% | 1,533 | 22.8% | |||||||||||||||
| Bad debt expense | 187 | 2.7% | 127 | 6.1% | 352 | 6.1% | 97 | 1.4% | 470 | 7.0% | |||||||||||||||
| Premises, equipment and insurance costs | 630 | 9.2% | 482 | 8.6% | 498 | 8.6% | 499 | 7.2% | 555 | 8.3% | |||||||||||||||
| Research and development expenses | 53 | 0.8% | 95 | 3.0% | 173 | 3.0% | 124 | 1.8% | 123 | 1.8% | |||||||||||||||
| VendScreen non-recurring charges | — | 0.0% | — | 0.1% | 8 | 0.1% | 101 | 1.5% | 258 | 3.8% | |||||||||||||||
| Litigation related professional fees | — | 0.0% | — | 0.0% | — | 0.0% | 33 | 0.5% | 51 | 0.8% | |||||||||||||||
| Other expenses | 123 | 1.8% | 142 | 2.1% | 122 | 2.1% | 77 | 1.1% | 46 | 0.7% | |||||||||||||||
| Total SG&A expenses | $ | 6,843 | 100% | $ | 5,947 | 100% | $ | 5,793 | 100% | $ | 6,909 | 100% | $ | 6,721 | 100% | ||||||||||
| Total Revenue | $ | 34,289 | $ | 26,460 | $ | 21,756 | $ | 21,588 | $ | 21,944 | |||||||||||||||
| SG&A expenses as a percentage of revenue | 20.0% | 22.5% | 26.6% | 32.0% | 30.6% | ||||||||||||||||||||
| For the year ended | ||||||||||
| June 30, | % of | June 30, | % of | |||||||
| ($ in thousands) | 2017 | SG&A | 2016 | SG&A | ||||||
| Salaries and benefit costs | $ | 12,065 | 47.3% | $ | 11,282 | 50.4% | ||||
| Marketing related expenses | 2,207 | 8.7% | 1,665 | 7.4% | ||||||
| Professional services | 7,297 | 28.6% | 4,410 | 19.7% | ||||||
| Bad debt expense | 764 | 3.0% | 1,450 | 6.5% | ||||||
| Premises, equipment and insurance costs | 2,109 | 8.3% | 1,761 | 7.9% | ||||||
| Research and development expenses | 445 | 1.7% | 482 | 2.2% | ||||||
| VendScreen non-recurring charges | 109 | 0.4% | 842 | 3.8% | ||||||
| Litigation related professional fees | 33 | 0.1% | 156 | 0.7% | ||||||
| Other expenses | 464 | 1.8% | 325 | 1.5% | ||||||
| Total SG&A expenses | $ | 25,493 | 100.0% | $ | 22,373 | 100.0% | ||||
| Total Revenue | $ | 104,093 | $ | 77,408 | ||||||
| SG&A expenses as a percentage of revenue | 24.5% | 28.9% | ||||||||
(F) Five Quarter Condensed Balance Sheets
| ($ in thousands) | June 30, | March 31, | December 31, | September 30 | June 30, | ||||||||||
| (unaudited) | 2017 | 2017 | 2016 | 2016 | 2016 | ||||||||||
| Assets | |||||||||||||||
| Current assets: | |||||||||||||||
| Cash and Cash Equivalents | $ | 12,745 | $ | 17,780 | $ | 18,034 | $ | 18,198 | $ | 19,272 | |||||
| Accounts receivable, less allowance for doubtful accounts | 7,193 | 6,734 | 6,796 | 5,840 | 4,899 | ||||||||||
| Finance receivables, less allowance for credit losses | 11,010 | 2,057 | 1,442 | 3,349 | 3,588 | ||||||||||
| Inventory, net | 4,586 | 4,147 | 4,786 | 4,264 | 2,031 | ||||||||||
| Other current assets | 968 | 1,628 | 1,764 | 1,439 | 987 | ||||||||||
| Total current assets | 36,502 | 32,346 | 32,822 | 33,090 | 30,777 | ||||||||||
| Finance receivables, less current portion | 8,607 | 7,548 | 3,956 | 3,962 | 3,718 | ||||||||||
| Other assets | 687 | 137 | 145 | 163 | 348 | ||||||||||
| Property and equipment, net | 12,111 | 9,173 | 9,433 | 9,570 | 9,765 | ||||||||||
| Deferred income taxes | 27,670 | 27,630 | 27,839 | 27,839 | 27,724 | ||||||||||
| Intangibles, Net | 622 | 666 | 711 | 754 | 798 | ||||||||||
| Goodwill | 11,492 | 11,492 | 11,492 | 11,703 | 11,703 | ||||||||||
| Total assets | $ | 97,691 | $ | 88,992 | $ | 86,398 | $ | 87,081 | $ | 84,833 | |||||
| Liabilities and shareholders' equity | |||||||||||||||
| Current liabilities: | |||||||||||||||
| Accounts payable and accrued expenses | $ | 20,184 | $ | 14,640 | $ | 12,002 | $ | 12,605 | $ | 15,812 | |||||
| Line of credit, net | 7,036 | 7,021 | 7,078 | 7,258 | 7,119 | ||||||||||
| Warrant Liabilities | - | - | - | - | 3,739 | ||||||||||
| Other current liabilities | 3,479 | 1,041 | 1,242 | 1,527 | 1,507 | ||||||||||
| Total current liabilities | 30,699 | 22,702 | 20,322 | 21,390 | 28,177 | ||||||||||
| Long-term liabilities | |||||||||||||||
| Total long-term liabilities | 1,214 | 1,291 | 1,446 | 1,528 | 1,631 | ||||||||||
| Total liabilities | 31,913 | 23,993 | 21,768 | 22,918 | 29,808 | ||||||||||
| Shareholders' equity: | |||||||||||||||
| Total shareholders' equity | 65,778 | 64,999 | 64,630 | 64,163 | 55,025 | ||||||||||
| Total liabilities and shareholders' equity | $ | 97,691 | $ | 88,992 | $ | 86,398 | $ | 87,081 | $ | 84,833 | |||||
| Total current assets | $ | 36,502 | $ | 32,346 | $ | 32,822 | $ | 33,090 | $ | 30,777 | |||||
| Total current liabilities | 30,699 | 22,702 | 20,322 | 21,390 | 28,177 | ||||||||||
| Net working capital | $ | 5,803 | $ | 9,644 | $ | 12,500 | $ | 11,700 | $ | 2,600 | |||||
(G) Five Quarter Statements of Cash Flows
| Three months ended | |||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||
| ($ in thousands) | 2017 | 2017 | 2016 | 2016 | 2016 | ||||||||||
| OPERATING ACTIVITIES: | |||||||||||||||
| Net (loss) income | $ | 243 | $ | 136 | $ | 233 | $ | (2,464) | $ | (872) | |||||
| Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities: | |||||||||||||||
| Non-cash stock-based compensation | 536 | 233 | 233 | 211 | 198 | ||||||||||
| Gain on disposal of property and equipment | (118) | (28) | (31) | — | (110) | ||||||||||
| Non-cash interest and amortization of debt discount | 15 | 72 | (79) | 105 | 13 | ||||||||||
| Bad debt expense | 187 | 127 | 352 | 97 | 470 | ||||||||||
| Depreciation and amortization | 1,817 | 1,210 | 1,263 | 1,301 | 1,315 | ||||||||||
| Impairment of intangible asset | — | — | — | — | 432 | ||||||||||
| Change in fair value of warrant liabilities | — | — | — | 1,490 | (18) | ||||||||||
| Deferred income taxes, net | (40) | 209 | — | (115) | (748) | ||||||||||
| Recognition of deferred gain from sale-leaseback transactions | 86 | (216) | (215) | (215) | (215) | ||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||
| Accounts receivable | (600) | (41) | (1,309) | (1,038) | 2,977 | ||||||||||
| Finance receivables | (10,006) | (4,232) | 2,125 | (5) | (2,587) | ||||||||||
| Inventory | (357) | 647 | (467) | (2,223) | (82) | ||||||||||
| Prepaid expenses and other assets | 102 | 136 | (318) | (224) | (397) | ||||||||||
| Accounts payable and accrued expenses | 5,649 | 2,601 | (664) | (3,175) | 444 | ||||||||||
| Income taxes payable | 10 | (6) | (1) | (10) | 453 | ||||||||||
| Net change in operating assets and liabilities | (5,202) | (895) | (634) | (6,675) | 808 | ||||||||||
| Net cash provided (used) by operating activities | (2,476) | 848 | 1,122 | (6,265) | 1,273 | ||||||||||
| INVESTING ACTIVITIES: | |||||||||||||||
| Purchase and additions of property and equipment, including rentals | (1,223) | (874) | (1,134) | (810) | (207) | ||||||||||
| Proceeds from sale of property and equipment | 243 | 44 | 61 | — | 265 | ||||||||||
| Cash paid for assets acquired from VendScreen | — | — | — | — | — | ||||||||||
| Net cash provided by (used in) investing activities | (980) | (830) | (1,073) | (810) | 58 | ||||||||||
| FINANCING ACTIVITIES: | |||||||||||||||
| Cash used for the retirement of common stock | — | — | — | (31) | (173) | ||||||||||
| Proceeds from exercise of common stock warrants | — | — | — | 6,193 | 138 | ||||||||||
| Deferred financing costs | — | (90) | — | — | 3,237 | ||||||||||
| Proceeds (payments) from line of credit, net | (106) | — | — | — | — | ||||||||||
| Repayment of long-term debt | (1,473) | (182) | (213) | (161) | (162) | ||||||||||
| Net cash (used in) provided by financing activities | (1,579) | (272) | (213) | 6,001 | 3,040 | ||||||||||
| Net (decrease) increase in cash | (5,035) | (254) | (164) | (1,074) | 4,371 | ||||||||||
| Cash at beginning of period | 17,780 | 18,034 | 18,198 | 19,272 | 14,901 | ||||||||||
| Cash at end of period | $ | 12,745 | $ | 17,780 | $ | 18,034 | $ | 18,198 | $ | 19,272 | |||||
| Supplemental disclosures of cash flow information: | |||||||||||||||
| Interest paid in cash | $ | 207 | $ | 59 | $ | 382 | $ | 87 | $ | 147 | |||||
| Income taxes paid in cash (refund), net | $ | (305) | $ | — | $ | — | $ | — | $ | 501 | |||||
| Reclass of rental program property to inventory, net | $ | 82 | $ | 8 | $ | (55) | $ | (11) | $ | 415 | |||||
| Prepaid items financed with debt | $ | — | $ | — | $ | — | $ | 54 | $ | — | |||||
| Equipment and property acquired under capital lease | $ | 3,573 | $ | 54 | $ | 18 | $ | 254 | $ | — | |||||
(H) Five Quarter Reconciliation of Net Income/(Loss) to Non-GAAP Net Income (Loss) and Net Income/(Loss) Per Common Share – Basic and Diluted to Non-GAAP Net Income/(Loss) Per Common Share – Basic and Diluted
| Three months ended | |||||||||||||||||||
| ($ in thousands) | June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||
| (unaudited) | 2017 | 2017 | 2016 | 2016 | 2016 | ||||||||||||||
| Net income (loss) | $ | 243 | $ | 136 | $ | 233 | $ | (2,464 | ) | $ | (872 | ) | |||||||
| Non-GAAP adjustments: | |||||||||||||||||||
| Non-cash portion of income tax provision | (40 | ) | 209 | - | (115 | ) | (792 | ) | |||||||||||
| Change in fair value of warrant adjustment | - | - | - | 1,490 | (18 | ) | |||||||||||||
| VendScreen non-recurring charges | - | - | 8 | 101 | 258 | ||||||||||||||
| Litigation related professional fees | - | - | - | 33 | 51 | ||||||||||||||
| Non-GAAP net income (loss) | $ | 203 | $ | 345 | $ | 241 | $ | (955 | ) | $ | (1,373 | ) | |||||||
| Net income (loss) | $ | 243 | $ | 136 | $ | 233 | $ | (2,464 | ) | $ | (872 | ) | |||||||
| Cumulative preferred dividends | - | (334 | ) | - | (334 | ) | - | ||||||||||||
| Net (loss) income applicable to common shares | $ | 243 | $ | (198 | ) | $ | 233 | $ | (2,798 | ) | $ | (872 | ) | ||||||
| Non-GAAP net income (loss) | $ | 203 | $ | 345 | $ | 241 | $ | (955 | ) | $ | (1,373 | ) | |||||||
| Cumulative preferred dividends | - | (334 | ) | - | (334 | ) | - | ||||||||||||
| Non-GAAP net income (loss) applicable to common shares | $ | 203 | $ | 11 | $ | 241 | $ | (1,289 | ) | $ | (1,373 | ) | |||||||
| Net earnings (loss) per common share - basic and diluted | $ | 0.01 | $ | (0.00 | ) | $ | 0.01 | $ | (0.07 | ) | $ | (0.02 | ) | ||||||
| Non-GAAP net earnings (loss) per common share - basic and diluted | $ | 0.01 | $ | (0.00 | ) | $ | 0.01 | $ | (0.03 | ) | $ | (0.04 | ) | ||||||
| Basic weighted average number of common shares outstanding | 40,331,993 | 40,327,697 | 40,308,934 | 38,488,005 | 37,325,681 | ||||||||||||||
| Diluted weighted average number of common shares outstanding | 40,772,482 | 40,327,697 | 40,730,712 | 38,488,005 | 37,325,681 | ||||||||||||||
|
|
|||||||||||||||||||
(I) Annual Reconciliation of Net Loss to Non-GAAP Net Loss and Net Loss Per Common Share - Basic and Diluted to Non-GAAP Net Loss Per Common Share - Basic and Diluted
| Year ended | ||||||||
| ($ in thousands) | June 30, | June 30, | ||||||
| (unaudited) | 2017 | 2016 | ||||||
| Net Loss | $ | (1,852 | ) | $ | (6,806 | ) | ||
| Non-GAAP adjustments: | ||||||||
| Non-cash portion of income tax provision | 54 | (579 | ) | |||||
| Change in fair value of warrant adjustment | 1,490 | 5,674 | ||||||
| VendScreen non-recurring charges | 109 | 842 | ||||||
| Litigation related professional fees | 33 | 156 | ||||||
| Non-GAAP net income (loss) | $ | (166 | ) | $ | (713 | ) | ||
| Net income (loss) | $ | (1,852 | ) | $ | (6,806 | ) | ||
| Cumulative preferred dividends | (668 | ) | (668 | ) | ||||
| Net (loss) income applicable to common shares | $ | (2,520 | ) | $ | (7,474 | ) | ||
| Non-GAAP net income (loss) | $ | (166 | ) | $ | (713 | ) | ||
| Cumulative preferred dividends | (668 | ) | (668 | ) | ||||
| Non-GAAP net income (loss) applicable to common shares | $ | (834 | ) | $ | (1,381 | ) | ||
| Net earnings (loss) per common share - basic and diluted | $ | (0.06 | ) | $ |
(0.21 |
) | ||
| Non-GAAP net earnings (loss) per common share - basic and diluted | $ | (0.02 | ) | $ | (0.04 | ) | ||
| Basic weighted average number of common shares outstanding |
39,860,335 |
36,309,047 |
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| Diluted weighted average number of common shares outstanding |
39,860,335 |
36,309,047 |
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|
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