UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):  April 16, 2015

 

Streamline Health Solutions, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware

 

0-28132

 

31-1455414

(State or other jurisdiction of incorporation)

 

(Commission File Number)

 

(I.R.S. Employer Identification No.)

 

1230 Peachtree Street, NE, Suite 600

Atlanta, GA 30309

(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number, including area code:   (404) 446-2052

 

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:

 

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

 

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

 

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

 

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

 

 

 



 

Item 2.02.                                        Results of Operations and Financial Condition.

 

On April 16, 2015, Streamline Health Solutions, Inc. (the “Company”) issued a press release announcing fourth quarter and fiscal year end 2014 financial results.  A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

 

The information contained in this Item 2.02, as well as Exhibit 99.1 referenced herein, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor incorporated by reference in any filing under the Securities Act of 1933, as amended, unless the Company expressly so incorporates such information by reference.

 

Item 9.01.                                        Financial Statements and Exhibits.

 

(d)  Exhibits.

 

EXHIBIT

 

 

NUMBER

 

DESCRIPTION

 

 

 

99.1

 

Press release, dated April 16, 2015, regarding Fourth Quarter and Fiscal Year End 2014 Financial Results.

 

2



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

Streamline Health Solutions, Inc.

 

 

 

 

Date: April 22, 2015

By:

/s/ Jack W. Kennedy Jr.

 

 

Name:

Jack W. Kennedy Jr.

 

 

Title:

Senior Vice President &

 

 

 

Chief Legal Counsel

 

3



 

INDEX TO EXHIBITS

 

EXHIBIT

 

 

NUMBER

 

DESCRIPTION

 

 

 

99.1

 

Press release, dated April 16, 2015, regarding Fourth Quarter and Fiscal Year End 2014 Financial Results.

 

4


Exhibit 99.1

 

 

News Release

 

STREAMLINE HEALTH® REPORTS FOURTH QUARTER 2014 REVENUES OF $6.6 MILLION; 2014 RECURRING REVENUES OF 88%

 

New CEO to Focus on Revenue Growth and Looking Glass® Platform to Improve Financial Performance in 2015 and Beyond

 

Company to Provide 2015 Guidance During Earnings Call

 

Atlanta, GA — April 16, 2015 — Streamline Health Solutions, Inc. (NASDAQ: STRM), a leading provider of transformational data-driven solutions to help healthcare providers reduce exposure to risk, enhance clinical, financial, and operational performance, and improve patient care, today announced financial results for the fourth quarter and fiscal year of 2014, which ended January 31, 2015.

 

Revenues for the three-month period ended January 31, 2015 increased approximately 1.2% to $6.6 million versus $6.5 million in the comparable period of fiscal 2013. Adjusted EBITDA for the fourth quarter was $(0.7) million, up from $(2.2) million in the same period a year ago.

 

Revenues for fiscal year 2014 were $27.6 million, a 3.1 percent decrease over the previous fiscal year.  Recurring revenues for the year were $24.4 million, up 9.4% over fiscal year 2013. Adjusted EBITDA for the fiscal year was $(1.0) million, down from $1.8 million in fiscal year 2013.

 

“2014 was a difficult year for our company, and for many other companies in our industry, as purchasing slowed down following the most recent phase of Meaningful Use,” stated David W. Sides, President and CEO, Streamline Health Solutions, Inc.  “A higher level of revenue attrition — nearly twice our historical average - comprised of the loss of some legacy GE clients along with some acquired client relationships negatively affected revenue in 2014 and will affect it in 2015 as well.”

 

“We did, however, establish a new annual record for contract bookings in 2014, and large contracts, such as the ones we signed in Q3 last year, are a very positive development for our company in the long term, although these wins usually take longer to implement and, therefore, longer to recognize revenue. Today our committed, unimplemented quarterly recurring revenue stands at approximately $1.2 million, equating to nearly $5 million in annual revenues that are unrecognized at this time,” continued Sides.

 

“As I look at the challenges and opportunities for our Company, I have implemented three key initiatives that we believe will lead to improved financial performance in 2015 and beyond, as follows. First, grow sales — both inside our existing client base and outside - and focus on improving our client retention.  To augment our selling efforts, besides the addition of more sales people and in-house lead generation resources already accomplished, we are looking to expand and better manage strategic channel partners to help sell our solutions to more clients faster.  Second, we will complete the links among the solutions inside our Looking Glass® platform to improve the user experience for those who have more than one of our software modules and to aid in cross-selling to our current clients.  Third, we will

 



 

improve our professional services performance to deliver a meaningful contribution to revenue and profit.”

 

“Our clients are some of the most well-regarded healthcare providers in the industry.  Our job — and our most immediate opportunity for growth — is to provide them with industry-leading solutions that help make their lives easier, and the performance of their institutions better.”

 

Highlights for the fourth quarter and fiscal year ended January 31, 2015 included:

 

·                  Revenues for the fourth quarter 2014 were $6.6 million, and for the year were $27.6 million;

·                  Adjusted EBITDA for the fourth quarter 2014 was $(0.7) million, and for the year was $(1.0) million;

·                  Recorded net loss of $(4.8) million for the three-month period ended January 31, 2015, and $(12.0) million for the fiscal year 2014;

·                  Maintenance and support revenues for the quarter increased $0.3 million over the same period one year ago, and were $16.2 million for fiscal year 2014 up 16% over fiscal year 2013;

·                  New sales bookings for the quarter were $0.3 million and $24.0 million for the fiscal year; and

·                  Backlog at the end of the quarter was $72.5 million.

 

The Company will conduct a conference call to review the results on Thursday, April 16, 2015 at 5:00 PM ET. Interested parties can access the call by dialing 888-337-8169 and then entering Conference ID 8280083. A live webcast will also be available; click here to register.

 

A replay of the conference call will be available from Thursday, April 16, 2015 at 8:00 PM ET to Tuesday, April 21, 2015 at 8:00 PM ET by dialing 888-203-1112 and entering passcode 8280083.

 

*Non-GAAP Financial Measures

 

Streamline Health reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). Streamline Health’s management also evaluates and makes operating decisions using various other measures. One such measure is adjusted EBITDA, which is a non-GAAP financial measure. Streamline Health’s management believes that this measure provides useful supplemental information regarding the performance of Streamline Health’s business operations.

 

Streamline Health defines “adjusted EBITDA” as net earnings (loss) plus interest expense, tax expense, depreciation and amortization expense of tangible and intangible assets, stock-based compensation expense, significant non-recurring operating expenses, and transactional related expenses including: gains and losses on debt and equity conversions, associate severances and related restructuring expenses, associate inducements, and professional and advisory fees . A table illustrating this measure is included in this press release.

 

About Streamline Health

Streamline Health Solutions, Inc. (NASDAQ: STRM) is a healthcare industry leader in capturing, aggregating, and translating enterprise data into knowledge —- actionable insights that reduce exposure to risk, enhance operational performance, and improve patient care. Through our Looking Glass Platform we provide clients with meaningful, intelligent SaaS-based solutions from patient engagement to reimbursement. We share a common calling and commitment to advance the quality of life and the quality of healthcare —- for society, our industry, our clients, the communities they serve, and the individual patient. For more information, please visit our website at www.streamlinehealth.net.

 



 

Safe Harbor statement under the Private Securities Litigation Reform Act of 1995

 

Statements made by Streamline Health Solutions, Inc. that are not historical facts are forward-looking statements that are subject to certain risks, uncertainties and important factors that could cause actual results to differ materially from those reflected in the forward-looking statements included herein. Forward-looking statements contained in this press release include, without limitation, statements regarding the Company’s estimates of future revenue, backlog, renewal sales, interoperability among the Company’s solutions, new client sales, success of the Company’s channel partner relationships and related expectations and assumptions.  These risks and uncertainties include, but are not limited to, the timing of contract negotiations and execution of contracts and the related timing of the revenue recognition related thereto, the potential cancellation of existing contracts or clients not completing projects included in the backlog, the impact of competitive solutions and pricing, solution demand and market acceptance, new solution development and enhancement of current solutions, key strategic alliances with vendors and channel partners that resell the Company’s solutions, the ability of the Company to control costs, availability of solutions from third party vendors, the healthcare regulatory environment, potential changes in legislation, regulation and government funding affecting the healthcare industry, healthcare information systems budgets, availability of healthcare information systems trained personnel for implementation of new systems, as well as maintenance of legacy systems, fluctuations in operating results, effects of critical accounting policies and judgments, changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other similar entities, changes in economic, business and market conditions impacting the healthcare industry generally and the markets in which the Company operates and nationally, and the Company’s ability to maintain compliance with the terms of its credit facilities, and other risks detailed from time to time in the Streamline Health Solutions, Inc. filings with the U. S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s analysis only as of the date hereof. The Company undertakes no obligation to publicly release the results of any revision to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law.

 

Company Contact:

 

Randy Salisbury

SVP, Chief Marketing Officer

(404) 229-4242

randy.salisbury@streamlinehealth.net

 



 

STREAMLINE HEALTH SOLUTIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

Three Months Ended
January 31,

 

Fiscal Year Ended

 

 

 

2015

 

2014

 

2015

 

2014

 

Revenues:

 

 

 

 

 

 

 

 

 

Systems sales

 

$

215,670

 

$

333,723

 

$

1,214,879

 

$

3,239,569

 

Professional services

 

848,279

 

716,178

 

2,580,167

 

3,641,731

 

Maintenance and support

 

3,745,952

 

3,461,971

 

16,157,371

 

13,986,566

 

Software as a service

 

1,785,622

 

2,004,600

 

7,672,990

 

7,626,837

 

Total revenues

 

6,595,523

 

6,516,472

 

27,625,407

 

28,494,703

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Cost of systems sales

 

1,031,305

 

830,587

 

3,536,495

 

3,142,525

 

Cost of services

 

1,012,518

 

948,677

 

3,458,984

 

4,052,113

 

Cost of maintenance and support

 

534,662

 

940,549

 

3,087,842

 

3,460,500

 

Cost of software as a service

 

807,013

 

909,967

 

2,920,403

 

2,523,184

 

Selling, general and administrative

 

3,299,977

 

4,228,140

 

16,225,574

 

14,546,335

 

Research and development

 

2,905,233

 

3,460,743

 

9,756,206

 

7,088,077

 

Impairment of intangible assets

 

1,952,000

 

 

1,952,000

 

 

Total operating expenses

 

11,542,708

 

11,318,663

 

40,937,504

 

34,812,734

 

Operating loss

 

(4,947,185

)

(4,802,191

)

(13,312,097

)

(6,318,031

)

Other income (expense):

 

 

 

 

 

 

 

 

 

Interest expense

 

(225,370

)

(31,049

)

(748,969

)

(1,765,813

)

Loss on early extinguishment of debt

 

(315,327

)

(160,713

)

(429,849

)

(160,713

)

Miscellaneous income (expenses)

 

(211,060

)

2,787,828

 

1,592,449

 

(3,573,091

)

Loss before income taxes

 

(5,698,942

)

(2,206,125

)

(12,898,466

)

(11,817,648

)

Income tax benefit

 

889,299

 

259,403

 

887,009

 

100,459

 

Net loss

 

$

(4,809,643

)

$

(1,946,722

)

$

(12,011,457

)

$

(11,717,190

)

Less: deemed dividends on Series A Preferred Shares

 

(286,809

)

(449,595

)

(1,038,310

)

(1,180,904

)

Net loss attributable to common shareholders

 

$

(5,096,452

)

$

(2,396,317

)

$

(13,049,767

)

$

(12,898,094

)

Basic net loss per common share

 

$

(0.28

)

$

(0.14

)

$

(0.71

)

$

(0.94

)

Number of shares used in basic per common share computation

 

18,417,100

 

16,337,000

 

18,261,800

 

13,747,700

 

Diluted net loss per common share

 

$

(0.28

)

$

(0.14

)

$

(0.71

)

$

(0.94

)

Number of shares used in diluted per common share computation

 

18,417,100

 

16,337,000

 

18,261,800

 

13,747,700

 

 



 

STREAMLINE HEALTH SOLUTIONS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

Assets

 

 

 

January 31,

 

 

 

2015

 

2014

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

6,522,600

 

$

17,924,886

 

Accounts receivable, net of allowance for doubtful accounts of $665,962 and $267,264, respectively

 

6,935,270

 

7,999,571

 

Contract receivables

 

191,465

 

1,181,606

 

Prepaid hardware and third party software for future delivery

 

55,173

 

25,640

 

Prepaid client maintenance contracts

 

935,858

 

909,464

 

Other prepaid assets

 

1,437,680

 

1,407,515

 

Deferred income taxes

 

220,004

 

95,498

 

Other current assets

 

207,673

 

144,049

 

Total current assets

 

16,505,723

 

29,688,229

 

 

 

 

 

 

 

Non-current assets:

 

 

 

 

 

Property and equipment:

 

 

 

 

 

Computer equipment

 

2,381,923

 

3,769,564

 

Computer software

 

964,857

 

2,239,654

 

Office furniture, fixtures and equipment

 

683,443

 

889,080

 

Leasehold improvements

 

724,015

 

697,570

 

 

 

4,754,238

 

7,595,868

 

Accumulated depreciation and amortization

 

(1,617,423

)

(6,676,824

)

Property and equipment, net

 

3,136,815

 

919,044

 

 

 

 

 

 

 

Contract receivables, less current portion

 

43,553

 

78,395

 

Capitalized software development costs, net of accumulated amortization of $11,846,468 and $7,949,352 respectively

 

9,197,118

 

10,238,357

 

Intangible assets, net of accumulated amortization of $13,677 and $98,102, respectively

 

9,500,317

 

12,175,634

 

Deferred financing costs

 

387,199

 

44,898

 

Goodwill

 

16,184,667

 

11,933,683

 

Other

 

823,723

 

500,634

 

Total non-current assets

 

39,273,392

 

35,890,645

 

 

 

$

55,779,115

 

$

65,578,874

 

 



 

STREAMLINE HEALTH SOLUTIONS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

Liabilities and Stockholders’ Equity

 

 

 

January 31,

 

 

 

2015

 

2014

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

2,298,851

 

$

1,796,418

 

Accrued compensation

 

865,865

 

1,782,599

 

Accrued other expenses

 

563,838

 

554,877

 

Current portion of long-term debt

 

500,000

 

1,214,280

 

Deferred revenues

 

9,289,076

 

9,658,232

 

Current portion of note payable

 

 

300,000

 

Current portion of capital lease obligation

 

781,961

 

105,573

 

Total current liabilities

 

14,299,591

 

15,411,979

 

 

 

 

 

 

 

Non-current liabilities:

 

 

 

 

 

Term loans

 

9,500,000

 

6,971,767

 

Warrants liability

 

1,834,380

 

4,117,725

 

Royalty liability

 

2,385,826

 

2,264,000

 

Swap contract

 

 

111,086

 

Note payable

 

 

600,000

 

Lease incentive liability, less current portion

 

342,129

 

74,434

 

Capital lease obligation

 

582,911

 

121,089

 

Deferred revenues, less current portion

 

964,933

 

 

Deferred income tax liability, less current portion

 

229,579

 

816,079

 

Total non-current liabilities

 

15,839,758

 

15,076,180

 

Total liabilities

 

30,139,349

 

30,488,159

 

 

 

 

 

 

 

Series A 0% Convertible Redeemable Preferred stock, $.01 par value per share, $8,849,985 redemption value, 4,000,000 shares authorized, 2,949,995 issued and outstanding, net of unamortized preferred stock discount of $2,212,007 and $3,250,317, respectively

 

6,637,978

 

5,599,668

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Common stock, $.01 par value per share, 45,000,000 shares authorized, 18,553,389 and 18,175,787 shares issued and outstanding, respectively

 

185,534

 

181,758

 

Convertible redeemable preferred stock, $.01 par value per

 

 

 

 

 

Additional paid in capital

 

78,390,424

 

76,983,088

 

Accumulated deficit

 

(59,574,170

)

(47,562,713

)

Accumulated other comprehensive loss

 

 

(111,086

)

Total stockholders’ equity

 

19,001,788

 

29,491,047

 

 

 

$

55,779,115

 

$

65,578,874

 

 



 

STREAMLINE HEALTH SOLUTIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

Fiscal Year

 

 

 

2014

 

2013

 

Operating activities:

 

 

 

 

 

Net loss

 

$

(12,011,457

)

$

(11,717,190

)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

 

 

 

 

 

Depreciation

 

1,005,283

 

718,097

 

Amortization of capitalized software development costs

 

3,677,991

 

3,192,157

 

Amortization of intangible assets

 

1,396,317

 

1,341,734

 

Amortization of other deferred costs

 

189,107

 

385,461

 

Amortization of debt discounts

 

47,552

 

4,327

 

Valuation adjustment for warrants liability

 

(2,283,345

)

(140,928

)

Deferred tax expense (benefit)

 

(720,582

)

20,885

 

Valuation adjustment for contingent earn-out

 

 

3,580,441

 

Other valuation adjustments

 

128,855

 

(95,368

)

Loss on impairment of intangible assets

 

1,952,000

 

 

 

Loss from early extinguishment of debt

 

315,327

 

160,713

 

Loss on disposal of fixed assets

 

180,793

 

 

Loss on exit of operating lease

 

234,823

 

 

Share-based compensation expense

 

1,934,298

 

1,660,598

 

Provision for accounts receivable

 

440,771

 

330,907

 

Changes in assets and liabilities, net of assets acquired:

 

 

 

 

 

Accounts and contract receivables

 

2,157,977

 

827,435

 

Other assets

 

(637,348

)

(439,477

)

Accounts payable

 

600,263

 

275,360

 

Accrued expenses

 

(1,422,571

)

259,771

 

Deferred revenues

 

(197,698

)

(152,210

)

Net cash (used in) provided by operating activities

 

(3,011,644

)

212,713

 

 

 

 

 

 

 

Investing activities:

 

 

 

 

 

Purchases of property and equipment

 

(2,125,240

)

(152,283

)

Capitalization of software development costs

 

(619,752

)

(614,028

)

Payment for acquisition, net of cash acquired

 

(6,058,225

)

(3,000,000

)

Net cash used in investing activities

 

(8,803,217

)

(3,766,311

)

 

 

 

 

 

 

Financing activities:

 

 

 

 

 

Proceeds from term loan

 

10,000,000

 

4,958,333

 

Principal repayments on term loan

 

(8,297,620

)

(10,348,214

)

Principal repayments on note payable

 

(900,000

)

 

Principal payments on capital lease obligation

 

(368,386

)

(34,391

)

Payment of deferred financing costs

 

(573,002

)

(115,900

)

Proceeds from exercise of stock options and stock purchase plan

 

551,583

 

1,356,060

 

Settlement of earn-out consideration

 

 

(1,300,000

)

Proceeds from the sale of common stock

 

 

20,586,619

 

Payment of debt success fee

 

 

(1,124,279

)

Net cash provided by (used in) financing activities

 

412,575

 

13,978,228

 

(Decrease) increase in cash and cash equivalents

 

(11,402,286

)

10,424,630

 

Cash and cash equivalents at beginning of year

 

17,924,886

 

7,500,256

 

Cash and cash equivalents at end of year

 

$

6,522,600

 

$

17,924,886

 

 



 

STREAMLINE HEALTH SOLUTIONS, INC.

Backlog

(Unaudited)

Table A

 

 

 

January 31,
2015

 

October 31,
2014

 

January 31, 
2014

 

Streamline Health Software Licenses

 

$

20,888,000

 

$

21,103,000

 

$

2,230,000

 

Hardware and Third Party Software

 

244,000

 

126,000

 

79,000

 

Professional Services

 

7,485,000

 

8,095,000

 

7,255,000

 

Maintenance and Support

 

21,304,000

 

21,657,000

 

25,936,000

 

Software as a Service

 

22,574,000

 

24,928,000

 

21,073,000

 

Total

 

$

72,495,000

 

$

75,909,000

 

$

56,573,000

 

 

STREAMLINE HEALTH SOLUTIONS, INC.

New Bookings

(Unaudited)

Table B

 

 

 

Fiscal Year Ended

 

 

 

January 31, 2015

 

 

 

Value

 

% of 
Total 
Bookings

 

Streamline Health Software licenses

 

$

19,842,000

 

83

%

Software as a service

 

1,163,000

 

5

%

Maintenance and support

 

102,000

 

0

%

Professional services

 

2,882,000

 

12

%

Hardware & third party software

 

52,000

 

0

%

Total bookings

 

$

24,041,000

 

100

%

 



 

Reconciliation of Non-GAAP Financial Measures

Table C

 

This press release contains a non-GAAP financial measure under the rules of the U.S. Securities and Exchange Commission for adjusted EBITDA. This non-GAAP information supplements and is not intended to represent a measure of performance in accordance with disclosures required by generally accepted accounting principles. Non-GAAP financial measures are used internally to manage the business, such as in establishing an annual operating budget. Non-GAAP financial measures are used by Streamline Health’s management in its operating and financial decision-making because management believes these measures reflect ongoing business in a manner that allows meaningful period-to-period comparisons. Accordingly, the Company believes it is useful for investors and others to review both GAAP and non-GAAP measures in order to (a) understand and evaluate current operating performance and future prospects in the same manner as management does and (b) compare in a consistent manner the Company’s current financial results with past financial results. The primary limitations associated with the use of non-GAAP financial measures are that these measures may not be directly comparable to the amounts reported by other companies and they do not include all items of income and expense that affect operations. The Company’s management compensates for these limitations by considering the company’s financial results and outlook as determined in accordance with GAAP and by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures in the tables attached to this press release. Streamline Health defines “adjusted EBITDA” as net earnings (loss) plus interest expense, tax expense, depreciation and amortization expense of tangible and intangible assets, stock-based compensation expense, significant non-recurring operating expenses, and transactional related expenses including: gains and losses on debt and equity conversions, associate severances and related restructuring expenses, associate inducements, professional and advisory fees, and internal direct costs incurred to complete transactions.

 

Reconciliation of net earnings (loss) to non-GAAP adjusted EBITDA (in thousands):

 

 

 

Three Months Ended,

 

Twelve Months Ended,

 

 

 

January 
31, 2015

 

January 
31, 2014

 

January 
31, 2015

 

January 
31, 2014

 

Adjusted EBITDA Reconciliation

 

 

 

 

 

 

 

 

 

Net loss

 

$

(4,809

)

$

(1,947

)

$

(12,011

)

$

(11,717

)

Interest expense

 

225

 

31

 

749

 

1,766

 

Income tax benefit

 

(889

)

(259

)

(887

)

(100

)

Depreciation

 

334

 

228

 

1,005

 

718

 

Amortization of capitalized software development costs

 

942

 

1,105

 

3,678

 

3,192

 

Amortization of intangible assets

 

345

 

398

 

1,396

 

1,342

 

Amortization of other costs

 

45

 

24

 

166

 

74

 

EBITDA

 

(3,807

)

(419

)

(5,904

)

(4,725

)

Share-based compensation expense

 

648

 

457

 

1,934

 

1,661

 

Loss on impairment of intangibles

 

1,952

 

 

1,952

 

 

Loss on early extinguishment of debt

 

315

 

161

 

430

 

161

 

Loss on disposal of fixed assets

 

70

 

 

181

 

 

Non-cash valuation adjustments to assets and liabilities

 

52

 

(2,796

)

(2,154

)

3,427

 

Transaction related professional fees, advisory fees and other internal direct costs

 

6

 

406

 

182

 

769

 

Associate severances and other costs relating to transactions or corporate restructuring

 

70

 

32

 

901

 

415

 

Other non-recurring operating expenses

 

0

 

9

 

1,491

 

62

 

Adjusted EBITDA

 

$

(694

)

$

(2,150

)

$

(987

)

$

1,771

 

Adjusted EBITDA per diluted share

 

 

 

 

 

 

 

 

 

Loss per share — diluted

 

$

(0.28

)

$

(0.15

)

$

(0.71

)

$

(0.94

)

Adjusted EBITDA per adjusted diluted share (1)

 

$

(0.04

)

$

(0.13

)

$

(0.05

)

$

0.10

 

 

 

 

 

 

 

 

 

 

 

Diluted weighted average shares

 

18,417,100

 

16,336,668

 

18,261,800

 

13,747,700

 

Includable incremental shares — adjusted EBITDA (2)

 

 

 

 

4,863,140

 

Adjusted diluted shares

 

18,417,100

 

16,336,668

 

18,261,800

 

18,610,840

 

 



 


(1)         Adjusted EBITDA per adjusted diluted share for the Company’s common stock is computed using the more dilutive of the two-class method or the if-converted method.

(2)         The number of incremental shares that would be dilutive under profit assumption, only applicable under a GAAP net loss. If GAAP profit is earned in the current period, no additional incremental shares are assumed.