Ø
|
Revenue grew 24% from the second quarter ended June 30, 2011
|
Ø
|
Completed the integration of CMAC
|
Ø
|
Gross margin expanded to 20.9%, versus 18.0% in third quarter of 2010
|
Ø
|
Achieved positive net income
|
September 30,
|
December 31,
|
|||||||
2011
|
2010
|
|||||||
ASSETS
|
(Restated)
|
|||||||
Current assets
|
||||||||
Cash
|
$ | 193,916 | $ | 315,169 | ||||
Accounts receivable, net
|
9,695,152 | 12,575,597 | ||||||
Other receivables
|
1,508,803 | - | ||||||
Inventory, net
|
599,788 | 898,465 | ||||||
Deferred costs
|
2,763,645 | 3,562,654 | ||||||
Deferred tax assets
|
55,000 | 55,000 | ||||||
Prepaid expenses
|
374,649 | 457,863 | ||||||
Total current assets
|
15,190,953 | 17,864,748 | ||||||
Property and equipment, net
|
95,059 | 100,070 | ||||||
Other assets, net
|
202,146 | 173,465 | ||||||
Deferred costs, net of current portion
|
1,349,528 | 1,414,851 | ||||||
Goodwill
|
5,538,466 | 5,508,864 | ||||||
Intangible assets, net
|
2,342,750 | 2,729,000 | ||||||
Total assets
|
$ | 24,718,902 | $ | 27,790,998 | ||||
LIABILITIES AND STOCKHOLDERS' DEFICIT
|
||||||||
Current liabilities
|
||||||||
Accounts payable
|
$ | 8,673,009 | $ | 10,364,368 | ||||
Accrued expenses and other current liabilities
|
2,336,787 | 5,368,060 | ||||||
Line of credit
|
2,383,649 | 4,364,221 | ||||||
Current portion of debt
|
1,000,000 | 1,000,000 | ||||||
Unearned revenue
|
4,494,422 | 5,714,434 | ||||||
Total current liabilities
|
18,887,867 | 26,811,083 | ||||||
Long term liabilities
|
||||||||
Unearned revenue, net of current portion
|
1,884,476 | 1,850,440 | ||||||
Debt, net of current portion and discount
|
1,213,766 | 1,940,000 | ||||||
Interest payable
|
60,000 | 60,000 | ||||||
Total liabilities
|
22,046,109 | 30,661,523 | ||||||
Commitments and contingencies
|
||||||||
STOCKHOLDERS' EQUITY (DEFICIT)
|
||||||||
Preferred stock, $0.001 par value, 10,000,000 shares authorized, 500,000 designated
|
||||||||
Series A Cumulative Convertible Preferred, 500,000 designated Series B
|
||||||||
Cumulative Convertible Preferred and 5,000,000 designated Series C Cumulative
|
||||||||
Convertible Preferred, 1,816,289 and 400,955 shares issued and outstanding,
|
||||||||
including cumulative and imputed preferred dividends of $308,253 and $130,738,
|
||||||||
and with a liquidation preference of $10,625,175 and $1,485,738, respectively
|
6,192,319 | 1,485,738 | ||||||
Common stock, $0.001 par value, 100,000,000 shares authorized,
|
||||||||
8,182,791 and 5,080,970 shares issued and outstanding, respectively
|
8,183 | 5,081 | ||||||
Additional paid-in capital
|
14,480,534 | 8,238,995 | ||||||
Accumulated deficit
|
(17,078,251 | ) | (11,576,776 | ) | ||||
Unearned ESOP shares
|
(929,992 | ) | (1,023,563 | ) | ||||
Total stockholders' equity (deficit)
|
2,672,793 | (2,870,525 | ) | |||||
Total liabilities and stockholders' equity (deficit)
|
$ | 24,718,902 | $ | 27,790,998 |
Three Months ended September 30,
|
Nine Months ended September 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
(Restated)
|
(Restated)
|
|||||||||||||||
Net sales
|
$ | 16,446,541 | $ | 16,414,168 | $ | 42,471,307 | $ | 40,774,472 | ||||||||
Cost of sales
|
13,007,116 | 13,463,533 | 34,042,818 | 33,260,116 | ||||||||||||
Gross profit
|
3,439,425 | 2,950,635 | 8,428,489 | 7,514,356 | ||||||||||||
Selling, general and administrative expense
|
3,274,994 | 2,469,145 | 10,267,641 | 7,389,011 | ||||||||||||
Operating income (loss)
|
164,431 | 481,490 | (1,839,152 | ) | 125,345 | |||||||||||
Other expense:
|
||||||||||||||||
Interest expense
|
230,982 | 444,047 | 1,003,597 | 1,407,445 | ||||||||||||
Loss on debt extinguishment
|
24,098 | - | 2,665,157 | - | ||||||||||||
Other (income) expense, net
|
(372,486 | ) | 116,717 | (295,702 | ) | 825,696 | ||||||||||
Total other (income) expense | (117,406 | ) | 560,764 | 3,373,052 | 2,233,141 | |||||||||||
Net income (loss) before income taxes
|
281,837 | (79,274 | ) | (5,212,204 | ) | (2,107,796 | ) | |||||||||
Provision for income taxes
|
13,450 | 23,168 | 21,173 | 75,735 | ||||||||||||
Net income (loss)
|
268,387 | (102,442 | ) | (5,233,377 | ) | (2,183,531 | ) | |||||||||
Cumulative preferred stock dividends
|
(213,898 | ) | (19,500 | ) | (268,098 | ) | (58,500 | ) | ||||||||
Net income (loss) attributable to common shareholders
|
$ | 54,489 | $ | (121,942 | ) | $ | (5,501,475 | ) | $ | (2,242,031 | ) | |||||
Net income (loss) per share -
|
||||||||||||||||
Basic
|
$ | 0.01 | $ | (0.03 | ) | $ | (1.00 | ) | $ | (0.68 | ) | |||||
Diluted
|
$ | 0.01 | $ | (0.03 | ) | $ | (1.00 | ) | $ | (0.68 | ) | |||||
|
||||||||||||||||
Weighted average shares outstanding -
|
||||||||||||||||
Basic
|
7,320,328 | 3,499,060 | 5,493,530 | 3,308,664 | ||||||||||||
Diluted
|
7,417,555 | 3,499,060 | 5,493,530 | 3,308,664 |