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Basis of Presentation
9 Months Ended
Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation

 The accompanying unaudited condensed consolidated financial statements are presented on the same basis as the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (“2018 Form 10-K”) filed with the Securities and Exchange Commission (“SEC”).  AutoWeb has made its disclosures in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements.  In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation with respect to interim financial statements, have been included. The unaudited condensed consolidated statements of operations and comprehensive loss and cash flows for the periods ended September 30, 2019 are not necessarily indicative of the results of operations or cash flows expected for the year or any other period.  The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto in the 2018 Form 10-K.  

 

Certain amounts have been reclassified from the prior year presentation to conform to the current year presentation. References to amounts in the consolidated financial statement sections are in thousands, except shares and per share data, unless otherwise specified.

 

Restricted cash primarily consists of cash pledged pursuant to the Credit Agreement (See Note 9).

 

As of September 30, 2019, and for the nine months then ended, the Company had cash and cash equivalents of $1.1 million and a net loss of $12.1 million. The net loss is primarily attributable to operating expenses of $29.3 million during the nine months ended September 30, 2019. The Company used net cash in operations of $6.8 million for the nine months ended September 30, 2019. As of September 30, 2019, the Company had an accumulated deficit of $339.8 million and stockholders' equity of $23.6 million.

 

 The Company has developed a strategic plan focused on improving operating performance in the future that includes modernizing and upgrading its technology and systems, pursuing business objectives and responding to business opportunities, developing new or improving existing products and services, and enhancing operating infrastructure. The plan's objective is for the Company to generate sustainable profitability throughout 2020. However, there is no assurance that the Company will be able to achieve this objective. Also, the Company entered into the Credit Agreement discussed in Note 9 below that is expected to be used to partially fund operations. However, if the Company continues to experience losses and becomes unable to comply with the financial covenants in the Credit Agreement, the Company may be unable to borrow funds under this credit facility.

 

The Company believes that current cash reserves and operating cash flows will be sufficient to sustain operations through at least the third quarter of 2020. If the Company's plans are unsuccessful, it may need to seek to satisfy its future cash needs through private or public sales of securities, debt financings or partnering/licensing transactions. However, there is no assurance that the Company will be successful in satisfying its future cash needs such that the Company will be able to continue operations.