Delaware
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000-15751
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56-1764501
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification No.)
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Exhibit Number
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Description
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99.1
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Press Release of eMagin Corporation dated March 11, 2013
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eMagin Corporation
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Date: March 13, 2013
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By:
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/s/ Paul Campbell | |
Paul Campbell | |||
Chief Financial Officer
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Exhibit Number
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Description
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99.1
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Press Release of eMagin Corporation dated March 11, 2013
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·
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eMagin continues to see a significant increase in demand from both military and commercial customers for the VGA OLED-XL, which was released in early 2011. We are in the final stages of completing an agreement with a new customer for a significant amount of revenue for a military program. Shipments are scheduled to begin in Q1 2013.
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·
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Signed a contract extension with Sagem (Safran Group), Paris, France, for the exclusive supply of OLED Microdisplays for the FELIN program. To date, eMagin has delivered more than 17,000 active matrix OLED microdisplays for FELIN, with an approximate 15,000 additional microdisplays to be delivered during the extended contract period.
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·
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Secured a new consumer customer, Tracking Point, Inc., who markets a precision guided firearm, integrating hardware, digital optics and tracking technology to provide a higher quality sport shooting experience. Deliveries scheduled to begin in Q1 2013.
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·
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Completed both phases of the WUXGA microdisplay program for the U.S. SOCOM on time during the fourth quarter of 2012.
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·
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Continued deliveries to BAE Systems Oasys Technology for the U.S. Army Thermal Weapon Sight Remote Viewer. Approximately 12,000 displays were delivered for this program in 2012.
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·
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Completed and finalized Phase I of the Navair program and initiated work on Phase II to complete a 2,000 by 2,000 pixel, very high brightness microdisplay for the US Navy.
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·
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Successfully delivered on both contracts for the ENVG II program, which will continue through mid-2013. The program is expected continue in the second half of 2013 through 2014.
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·
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Continuing to move toward release of the Digital SVGA (DSVGA) OLED microdisplay, which takes advantage of the improvements embodied in the Company’s SXGA and WUXGA OLED microdisplays while adding a digital interface for improved contrast and pixel-to-pixel uniformity. Early samples have been sent to key customers.
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·
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In 2012, the Company developed two new microdisplay products, an XGA specifically for the camera viewfinder market and a digital SVGA which is an upgrade of our existing analog SVGA microdisplay. The XGA will allow us to enter the camera market with an effective, efficient display that meets requirements yet is more economical to produce due to its smaller size.
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·
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eMagin is installing Eyelit’s MES system software platform to enable product traceability and precise manufacturing controls for the Company’s complex processes that combine semiconductor and display technologies for its microdisplay business.
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·
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Continuing work on direct patterning which when complete will result in displays with no color filters that are 4 to 5 times more efficient and can be much brighter than microdisplays using our current color filter technology. This will enable the Company to better meet the needs of customers with very high brightness requirements.
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·
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Continue working on the viewfinder application of our new XGA product with a large camera manufacturer. Good progress has been made in meeting the color gamut requirement and expected completion next month. First shipments could be as early as August, 2013.
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December 31,
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||||||||
2012
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2011
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|||||||
(In thousands, except
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||||||||
share and per share data)
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||||||||
ASSETS
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||||||||
Current assets:
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||||||||
Cash and cash equivalents
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$
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4,385
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$
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7,571
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||||
Investments
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8,520
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5,745
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||||||
Accounts receivable, net
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5,154
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5,576
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||||||
Inventories, net
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3,223
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2,760
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||||||
Prepaid expenses and other current assets
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653
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1,008
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||||||
Total current assets
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21,935
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22,660
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||||||
Long-term investments
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500
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1,000
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||||||
Equipment, furniture and leasehold improvements, net
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8,099
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5,980
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||||||
Other assets
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124
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127
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||||||
Deferred tax asset
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8,881
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8,165
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||||||
Total assets
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$
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39,539
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$
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37,932
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||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
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||||||||
Current liabilities:
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||||||||
Accounts payable
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$
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955
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$
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961
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||||
Accrued compensation
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1,188
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1,283
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||||||
Other accrued expenses
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1,360
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963
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||||||
Advance payments
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72
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177
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||||||
Deferred revenue
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60
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138
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||||||
Other current liabilities
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277
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299
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||||||
Total current liabilities
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3,912
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3,821
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||||||
Commitments and contingencies (Note 11)
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||||||||
Shareholders’ equity:
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||||||||
Preferred stock, $.001 par value: authorized 10,000,000 shares:
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||||||||
Series B Convertible Preferred stock, (liquidation preference of $5,659,000) stated value $1,000 per share, $.001 par value: 10,000 shares designated and 5,659 issued and outstanding as of December 31, 2012 and 2011
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—
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—
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||||||
Common stock, $.001 par value: authorized 200,000,000 shares, issued and outstanding, 23,674,541 shares as of December 31, 2012 and 23,513,978 shares as of December 31, 2011
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24
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24
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||||||
Additional paid in capital
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223,575
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220,838
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||||||
Accumulated deficit
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(187,509
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)
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(186,656
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)
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Treasury stock, 150,000 shares as of December 31, 2012 and 25,000 shares as of December 31, 2011
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(463
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)
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(95
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)
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||||
Total shareholders’ equity
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35,627
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34,111
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||||||
Total liabilities and shareholders’ equity
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$
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39,539
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$
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37,932
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||||
eMagin Corporation
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Consolidated Statements of Operations
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(In thousands, except share and per share data)
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||||||||||||||||
Three Months Ended December 31 (unaudited)
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For the Year Ended December 31
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2012
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2011
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2012
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2011
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Revenue:
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Product
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$ | 6,848 | $ | 6,943 | $ | 26,112 | $ | 23,507 | ||||||||
Contract
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1,478 | 1,085 | 4,448 | 5,674 | ||||||||||||
Total revenue, net
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8,326 | 8,028 | 30,560 | 29,181 | ||||||||||||
Cost of goods sold:
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||||||||||||||||
Product
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3,612 | 2,527 | 13,526 | 11,080 | ||||||||||||
Contract
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612 | 259 | 2,089 | 2,627 | ||||||||||||
Cost of goods sold
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4,224 | 2,785 | 15,615 | 13,707 | ||||||||||||
Gross Profit
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4,102 | 5,243 | 14,945 | 15,474 | ||||||||||||
Operating expenses:
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||||||||||||||||
Research and development
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1,168 | 991 | 4,738 | 3,063 | ||||||||||||
Selling, general and administrative
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2,058 | 2,775 | 8,584 | 9,136 | ||||||||||||
Total operating expenses
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3,226 | 3,766 | 13,322 | 12,199 | ||||||||||||
Income from operations
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876 | 1,477 | 1,623 | 3,275 | ||||||||||||
Other income (expense):
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||||||||||||||||
Interest expense
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(11 | ) | (18 | ) | (29 | ) | (103 | ) | ||||||||
Other income
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11 | 9 | 43 | 41 | ||||||||||||
Change in fair value of warrant liability
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— | — | — | 2,548 | ||||||||||||
Total other income (expense), net
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— | (9 | ) | 14 | 2,486 | |||||||||||
Income (loss) before provision for income taxes
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876 | 1,467 | 1,637 | 5,761 | ||||||||||||
Income tax (benefit) expense
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(910 | ) | 252 | (615 | ) | 795 | ||||||||||
Net income
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$ | 1,786 | $ | 1,215 | $ | 2,252 | $ | 4,966 | ||||||||
Income (loss) per common shares, basic
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$ | 0.04 | $ | 0.04 | $ | 0.06 | $ | 0.17 | ||||||||
Income (loss) per common shares, diluted
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$ | 0.04 | $ | 0.04 | $ | 0.06 | $ | 0.07 | ||||||||
Weighted average number of shares outstanding:
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||||||||||||||||
Basic
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23,524,541 | 23,331,975 | 23,486,463 | 22,448,138 | ||||||||||||
Diluted
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25,445,909 | 25,371,771 | 25,382,125 | 25,574,522 | ||||||||||||
Cash dividends declared per common share
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$ | 0.10 | $ | — | $ | 0.10 | $ | — |
Three Months Ended
December 31,
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For the Year Ended
December 31,
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|||||||||||||||
Adjusted EBITDA:
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2012
|
2011
|
2012
|
2011
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||||||||||||
Net income
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$ | 1,786 | $ | 1,215 | $ | 2,252 | $ | 4,966 | ||||||||
Change in fair value of warrant liability
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- | - | - | (2,548 | ) | |||||||||||
Severance
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- | (94 | ) | (53 | ) | (84 | ) | |||||||||
Adjusted net income
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1,786 | 1,121 | 2,199 | 2,334 | ||||||||||||
Non-cash compensation
|
524 | 1,130 | 2,483 | 2,907 | ||||||||||||
Depreciation and amortization expense
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200 | 53 | 368 | 170 | ||||||||||||
Interest expense
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11 | 18 | 29 | 103 | ||||||||||||
Adjusted provision for income taxes
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(910 | ) | 252 | (615 | ) | 795 | ||||||||||
Adjusted EBITDA
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$ | 1,611 | $ | 2,574 | $ | 4,464 | $ | 6,309 |