UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q/A
Amendment No. 1
(Mark One)
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended June 30, 2012
OR
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from __________ to __________
Commission file number 001-34437
KIT digital, Inc.
(Exact Name of Registrant as Specified in Its Charter)
Delaware | 11-3447894 | |
(State or Other Jurisdiction of | (I.R.S. Employer | |
Incorporation or Organization) | Identification No.) | |
26 West 17th Street, 2nd Floor, New York, New York | 10011 | |
(Address of Principal Executive Offices) | (Zip Code) |
+1 (646) 553-4845
(Registrant’s Telephone Number, Including Area Code)
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated Filer o | Accelerated filer x |
Non-accelerated filer o | Smaller reporting company o |
(Do not check if a smaller reporting company) |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x
As of August 13, 2012, there were 57,097,255 shares of the issuer’s common stock outstanding.
EXPLANATORY NOTE
The sole purpose of this amendment to our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2012, originally filed with the Securities and Exchange Commission on August 14, 2012 (the “Form 10-Q”), is to furnish Exhibit 101 to the Form 10-Q, which contains the XBRL (eXtensible Business Reporting Language) Interactive Data File for the consolidated financial statements and related notes included in Part I, Item 1 of the Form 10-Q. As permitted by Rule 405 of Regulation S-T, Exhibit 101 is required to be furnished by amendment within 30 days of the original filing date of the Form 10-Q.
Other than the aforementioned, no other changes have been made to the Form 10-Q. This Amendment No. 1 to the Form 10-Q does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-Q.
ITEM 6. EXHIBITS.
Exhibit No. | Description | |
31.1 | * | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2 | * | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32.1 | * | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
32.2 | * |
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
101.INS | ** | XBRL Instance Document |
101.SCH | ** | XBRL Taxonomy Extension Schema |
101.CAL | ** | XBRL Taxonomy Extension Calculation Linkbase |
101.DEF | ** | XBRL Taxonomy Extension Definition Linkbase |
101.LAB | ** | XBRL Taxonomy Extension Label Linkbase |
101.PRE | ** | XBRL Taxonomy Extension Presentation Linkbase |
* Incorporated by reference to our Form 10-Q filed with the SEC on August 14, 2012.
**Pursuant to Rule 406T of Regulation S-T, the interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.
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 thereunto duly authorized.
KIT DIGITAL, INC. | |||
Dated: September 10, 2012 | By: | /s/ K. Peter Heiland | |
K. Peter Heiland | |||
Chief Executive Officer (principal executive officer) |
Dated: September 10, 2012 | By: | /s/ Fabrice Hamaide | |
Fabrice Hamaide | |||
Chief Financial Officer (principal financial and accounting officer) |
3 |
Secured Notes Payable (Tables)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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Secured Notes Payable | Secured Notes Payable
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Concentration of Credit Risk - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | ||
---|---|---|---|
Jun. 30, 2011
Customer
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Jun. 30, 2012
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Dec. 31, 2011
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Concentration Risk [Line Items] | |||
Cash and cash equivalents, held in foreign currencies | $ 4,869 | $ 9,329 | |
Amount of cash in excess of FDIC insured amounts | $ 29,785 | $ 43,366 | |
Number of customer with more than ten percent of revenue | 1 | ||
Total Revenue
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|||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 11.00% |
Nature of Business and Nature of Presentation - Additional Information (Detail)
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6 Months Ended |
---|---|
Jun. 30, 2012
Location
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|
Nature Of Business [Line Items] | |
Number of offices located globally | 20 |
Components of Derivative Liabilities (Detail) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
6 Months Ended | 12 Months Ended | 1 Months Ended | 6 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
May 2008 Warrant
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Dec. 31, 2011
May 2008 Warrant
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May 17, 2012
May 2012 Warrant
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Jun. 30, 2012
May 2012 Warrant
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|||||||||||
Derivative [Line Items] | ||||||||||||||
Fair value of warrants with anti-dilution provisions | $ (604) | $ (557) | $ (14,333) | $ (17,273) | ||||||||||
Trading market values | $ 4.29 | [1] | $ 8.45 | [1] | $ 3.50 | [1] | $ 4.29 | [1] | ||||||
Term (years) | 10 months 10 days | [2] | 1 year 4 months 6 days | [2] | 5 years 6 months | [2] | 5 years 4 months 17 days | [2] | ||||||
Volatility | 90.00% | [1] | 57.00% | [1] | 90.00% | [1] | 90.00% | [1] | ||||||
Risk-free rate | 0.27% | [3] | 0.25% | [3] | 0.78% | [3] | 0.79% | [3] | ||||||
Effective Exercise price | $ 4.17 | [2] | $ 7.00 | [2] | $ 5.00 | [2] | $ 5.00 | [2] | ||||||
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Inventory - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Schedule of Inventory [Line Items] | ||
Reserve for excess and obsolete Inventory | $ 144 | $ 146 |
Fair Value of Option Grant using Black-Scholes Model with Weighted-Average Assumptions (Detail)
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6 Months Ended | |
---|---|---|
Jun. 30, 2012
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Jun. 30, 2011
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life (in years) | 3 years 11 months 16 days | 4 years |
Risk-free interest rate | 0.61% | 1.52% |
Volatility | 102.77% | 79.40% |
Dividend yield | 0.00% | 0.00% |
Segment Reporting (Tables)
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6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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Revenue and assets by major geographical location | The following table provides revenue and assets by major geographical location.
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Discontinued Operations
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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Discontinued Operations | (25) Discontinued Operations
During the second quarter of 2012, following the guidance established under “ASC 360, Impairment and Disposal of Long-Lived Assets”, the Company committed to a plan to sell its Content Solutions Businesses which includes Digital Media Productions and its Sezmi business.
Digital Media Production Acquisition
On October 3, 2011, we acquired Digital Media Production a.s. (“DMP”), a Czech company with its principal office in Prague. A former competitor of Brickbox, DMP is engaged in multimedia video production with a focus on enterprise customers. We acquired DMP in exchange for $2,750 cash and 42,500 shares of our common stock valued at a price of $7.53 for a total of $320. The consideration also includes contingent consideration of $4,284 based upon meeting revenue and profit targets for the periods ending December 31, 2011, December 31, 2012 and December 31, 2013. We have allocated the aggregate cost of the acquisition to DMP’s net tangible and identifiable intangible assets based on their estimated fair values. The excess of the aggregate cost of the acquisition over the net estimated fair value of the tangible and identifiable intangible assets and liabilities assumed was recorded as goodwill.
The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the date of acquisition.
During the second quarter of 2012, the Company decided to divest itself of the Content Solutions Businesses which include DMP, and therefore it has been recorded as discontinued operations. The Company has provided below the details of the components of the assets and liabilities held for sale as of December 31, 2011 for the Content Solutions Business. On June 26, 2012, the Company completed a sale of its Content Solutions Businesses to Netherlands-based Content Solutions International NV for $1,000 in cash and up to $18.8 million in earn-outs. Therefore, during the second quarter of 2012, the Company recorded a loss from disposal of approximately $15,462 and has provided a breakout of the loss from discontinued operations for the Content Solutions Businesses for the three and six months ended June 30, 2012 and 2011.
Sezmi Acquisition
On December 30, 2011, we acquired substantially all the assets and assumed certain liabilities of Sezmi Corporation (“Sezmi”), a Delaware corporation, pursuant to an Asset Purchase Agreement dated as of December 30, 2011. Headquartered in Belmont, CA, Sezmi is a leading global provider of broadband-broadcast hybrid TV solutions. Sezmi employs a cloud-based software-as-a-service model and its target customers are service operators, such as telecommunication companies and Internet service providers, as well as content providers who desire to provide licensed or owned video content to subscribers across mobile and Internet protocol (IP)-connected home entertainment devices. Total consideration was $7,850 in cash, the assumption of $16,525 in liabilities, $2,625 owed to the shareholders of Sezmi which will be issued in shares and held in escrow for a period of up to 12 months following the closing date. The excess of the aggregate cost of the acquisition over the net estimated fair value of the tangible and identifiable intangible assets and liabilities assumed was recorded as goodwill.
The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the date of acquisition.
During the second quarter of 2012, the Company decided to divest itself of Sezmi and therefore it has been recorded as discontinued operations. The Company has provided below the details of the components of the assets and liabilities held for sale as of December 31, 2011 for Sezmi. On June 26, 2012, the Company completed the sale of Sezmi to Total Media for $2,950 to be paid in cash and has recorded a corresponding receivable as of June 30, 2012 which was subsequently received. Due to the divesture of Sezmi during the second quarter of 2012, the Company recorded a loss from disposal of approximately $28,578 and has provided a breakout of the loss from discontinued operations for the Sezmi business for the three and six months ended June 30, 2012 and 2011.
Assets and Liabilities of Discontinued Operations
At June 30, 2012, the assets of Sezmi and Content Solutions are presented separately on our consolidated balance sheet. The components of the assets of discontinued operations are as follows (in thousands):
Results of Discontinued Operations
As Sezmi and Content Solutions represented a component of our business and its results of operations and cash flows can be separated from the rest of our operations, the results for the periods presented are disclosed as discontinued operations on the face of the consolidated statements of operations. Net revenues and (loss) from discontinued operations, net of tax, for the three months ended June 30, 2012 and 2011, and for the six months ended June 30, 2012 and 2011, respectively, are as follows (in thousands):
|
Summary of Status of Stock Option Awards (Detail) (USD $)
|
6 Months Ended |
---|---|
Jun. 30, 2012
|
|
Shares | |
Beginning Balance | 6,415,669 |
Granted | 703,857 |
Exercised | (63,283) |
Cancelled, expired, or forfeited | (1,236,049) |
Ending Balance | 5,820,194 |
Exercisable at June 30, 2012 | 2,882,048 |
Weighted Average Exercise Price | |
Beginning Balance | $ 9.90 |
Granted | $ 9.36 |
Exercised | $ 7.63 |
Cancelled, expired, or forfeited | $ 10.82 |
Ending Balance | $ 9.67 |
Exercisable at June 30, 2012 | $ 9.36 |
Weighted Average Remaining Contractual Life (Years) | |
Outstanding at June 30, 2012 | 3 years 5 months 19 days |
Exercisable at June 30, 2012 | 3 years 1 month 28 days |
Intrinsic Value | |
Outstanding at June 30, 2012 | $ 0 |
Exercisable at June 30, 2012 | $ 0 |
Reconciliation of Change in Carrying Value of Level 3 Acquisition Liabilities (Detail) (Business Acquisition Contingent Consideration, USD $)
In Thousands, unless otherwise specified |
6 Months Ended |
---|---|
Jun. 30, 2012
|
|
Business Acquisition Contingent Consideration
|
|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Balance at January 1, 2012 | $ 16,652 |
Payment of acquisition liabilities | |
Increase in earn out estimates and new acquisitions | 7,649 |
Decrease in earn out estimates and payments | (3,831) |
Balance at June 30, 2012 | $ 20,470 |
Related Party Transactions - Additional Information (Detail) (KIT Capital, USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2012
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Jun. 30, 2011
|
Jun. 30, 2012
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Jun. 30, 2011
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|
KIT Capital
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||||
Related Party Transaction [Line Items] | ||||
Related party transaction | $ 0 | $ 97 | $ 53 | $ 97 |
Goodwill and Intangible Assets - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2012
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Jun. 30, 2011
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Jun. 30, 2012
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Jun. 30, 2011
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Dec. 31, 2011
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Goodwill And Intangible Assets [Line Items] | |||||
Impairment charge of goodwill | $ 55,718 | $ 55,718 | |||
Goodwill, discountinued operation | 32,169 | ||||
Amortization expense on intangible assets | $ 2,735 | $ 1,403 | $ 5,479 | $ 2,689 |
Fair Value Measurement - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
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---|---|---|
Investment [Line Items] | ||
Cost investments | $ 1,015 | $ 563 |
Integration Expenses - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended |
---|---|---|
Jun. 30, 2011
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Jun. 30, 2011
|
|
Business Combination, Separately Recognized Transactions [Line Items] | ||
Integration charges | $ 9,710 | $ 18,398 |
Summary of Restricted Stock Activity (Detail) (Restricted stock, USD $)
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6 Months Ended |
---|---|
Jun. 30, 2012
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|
Restricted stock
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|
Shares | |
Outstanding at December 31, 2011 | 1,689,250 |
Granted | 1,170,593 |
Vested | (416,848) |
Cancelled | (328,223) |
Outstanding at June 30, 2012 | 2,114,772 |
Weighted Average Exercise Price | |
Outstanding at December 31, 2011 | $ 7.05 |
Granted | $ 6.54 |
Vested | $ 8.05 |
Cancelled | $ 10.53 |
Outstanding at June 30, 2012 | $ 6.43 |
Revenue and Assets by Major Geographical Location (Detail) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
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Jun. 30, 2011
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Jun. 30, 2012
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Jun. 30, 2011
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Dec. 31, 2011
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||||
Segment Reporting Information [Line Items] | ||||||||
Revenue | $ 51,149 | $ 44,952 | $ 107,267 | $ 75,739 | ||||
Assets | 357,063 | 357,063 | 473,181 | [1] | ||||
EMEA
|
||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenue | 29,235 | 27,124 | 59,999 | 40,055 | ||||
Assets | 177,215 | 177,215 | 176,929 | |||||
Asia Pac
|
||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenue | 8,746 | 8,579 | 17,659 | 17,986 | ||||
Assets | 28,449 | 28,449 | 10,344 | |||||
Americas
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||||||||
Segment Reporting Information [Line Items] | ||||||||
Revenue | 13,168 | 9,249 | 29,609 | 17,698 | ||||
Assets | 65,027 | 65,027 | 122,989 | |||||
Corporate
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||||||||
Segment Reporting Information [Line Items] | ||||||||
Assets | $ 86,372 | $ 86,372 | $ 162,919 | |||||
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Stock-Based Compensation - Additional Information (Detail) (USD $)
In Thousands, except Share data, unless otherwise specified |
6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | |||||||||||
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Jun. 30, 2012
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Jun. 30, 2011
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Dec. 31, 2011
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Jun. 30, 2012
Scenario 1
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Jun. 30, 2012
Scenario 2
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Jun. 30, 2012
Stock options
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Jun. 30, 2012
Stock options
Employee
|
Dec. 31, 2011
Stock options
Employee
|
Jun. 30, 2012
Stock options
Officers and Directors
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Dec. 31, 2011
Stock options
Officers and Directors
|
Jun. 30, 2012
Restricted stock
|
Jun. 30, 2012
Restricted stock units ("RSUs") with time-based vesting conditions
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Jun. 30, 2012
Performance-contingent restricted stock
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Jun. 30, 2012
Performance-contingent restricted stock
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Jun. 30, 2012
Maximum
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Jun. 30, 2012
Maximum
Restricted stock
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Jun. 30, 2012
Minimum
Restricted stock
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Dec. 31, 2010
Stock Incentive Plan 2008
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Jun. 30, 2012
Stock Incentive Plan 2008
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Jun. 30, 2012
Stock Incentive Plan 2004
|
Dec. 31, 2010
Stock Incentive Plan 2004
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Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||
Increase in number of shares to be issued | 1,500,000 | ||||||||||||||||||||
Aggregate number of shares to be issued | 5,000,000 | 9,500,000 | 342,858 | ||||||||||||||||||
Shares of common stock available for future grant | 772,417 | 264,108 | |||||||||||||||||||
Options contractual term | 5 years | ||||||||||||||||||||
Share base compensation, vesting period | 4 years | 48 months | 48 months | 36 months | |||||||||||||||||
Unrecognized compensation cost related to unvested share-based compensation grants | $ 17,732 | $ 26,513 | |||||||||||||||||||
Unrecognized compensation cost related to unvested share-based compensation grants, weighted average period | 2 years 7 months 6 days | 2 years 9 months 18 days | |||||||||||||||||||
Forfeiture rate using historical exercise experience | 25.00% | 25.00% | 0.00% | 0.00% | |||||||||||||||||
Weighted-average grant-date fair value of option awards granted | $ 6.19 | ||||||||||||||||||||
Share-Based compensation arrangement by share-based payment award, award vesting rights, Volume Weighted Average stock price, period | 20 days | 90 days | |||||||||||||||||||
Percentage of Volume Weighted Average stock price to grant date closing Price | 115.00% | 130.00% | |||||||||||||||||||
Share-Based compensation arrangement by share based payment award vesting rights, percentage of grant | 50.00% | 50.00% | |||||||||||||||||||
Restricted Stock Granted Value | $ 11,915 | ||||||||||||||||||||
Fair Value Of Restricted Stock | 7,655 | ||||||||||||||||||||
Risk free rate | 0.61% | 1.52% | 0.66% | ||||||||||||||||||
Volatility rate | 102.77% | 79.40% | 85.00% | ||||||||||||||||||
Termination of executives expenses | $ 3,400 |
Other Current Liabilities (Detail) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
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Dec. 31, 2011
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---|---|---|---|---|---|
Other Current Liabilities [Line Items] | |||||
Accrued salaries and benefits | $ 19,348 | $ 13,827 | |||
Liabilities assumed and to be paid related to acquisitions | 5,564 | 9,756 | |||
Other | 2,790 | 1,963 | |||
Other current liabilities | $ 27,702 | $ 25,546 | [1] | ||
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Fair Value Measurement
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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Fair Value Measurement | (17) Fair Value Measurement
The following table provides the assets and liabilities carried at fair value measured on a recurring basis:
A reconciliation of the change in the carrying value of the level 3 acquisition liabilities is as follows:
The amount of total gains or losses for the six months ended June 30, 2012 included in losses attributable to the change in unrealized gains or losses relating to liabilities still held at June 30, 2012:
A reconciliation of the change in the carrying value of the level 3 derivative liability is as follows:
The amount of total gains or losses for the six months included in losses attributable to the change in unrealized gains or losses relating to liabilities still held at June 30, 2012:
As of June 30, 2012 and December 31, 2012, the Company has approximately $1,015 and $563, respectively, of cost investments recorded on the balance sheet. |
Components Used in Computation of Basic and Diluted Net Income Per Common Share (Detail) (USD $)
In Thousands, except Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2012
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Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
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Numerator: | ||||
Net loss from continuing operations | $ (102,576) | $ (18,981) | $ (124,067) | $ (30,889) |
Loss from discontinued operations | (48,506) | (822) | (51,894) | (1,415) |
Net loss | $ (151,082) | $ (19,803) | $ (175,961) | $ (32,304) |
Denominator: | ||||
Denominator for basic net loss per common share | 51,418,613 | 40,063,874 | 48,513,809 | 38,316,369 |
Effect of dilutive securities: | ||||
Stock options | ||||
Warrants | ||||
RSAs | ||||
Denominator for diluted net income (loss) per common share | 51,418,613 | 40,063,874 | 48,513,809 | 38,316,369 |
Basic net loss from continuing operations per common share | $ (1.99) | $ (0.47) | $ (2.56) | $ (0.81) |
Basic net loss from discontinued operations per common share | $ (0.95) | $ (0.02) | $ (1.07) | $ (0.03) |
Basic net loss per common share | $ (2.94) | $ (0.49) | $ (3.63) | $ (0.84) |
Diluted net loss from continuing operations per common share | $ (1.99) | $ (0.47) | $ (2.56) | $ (0.81) |
Diluted net loss from discontinued operations per common share | $ (0.95) | $ (0.02) | $ (1.07) | $ (0.03) |
Diluted net loss per common share | $ (2.94) | $ (0.49) | $ (3.63) | $ (0.84) |
Other Current Liabilities (Tables)
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6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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Other Current Liabilities | Other current liabilities consisted of the following:
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Reconciliation of Change in Carrying Value of Level 3 Derivative Liability (Detail) (Derivative Financial Instruments, Liabilities, USD $)
In Thousands, unless otherwise specified |
6 Months Ended |
---|---|
Jun. 30, 2012
|
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Derivative Financial Instruments, Liabilities
|
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Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Balance at January 1, 2012 | $ 557 |
Initial valuation of May 2012 warrants (Note 19) | 14,333 |
Valuation of May 2012 stock price reset provision | 10,512 |
Change in valuation | 2,986 |
Balance at June 30, 2012 | $ 28,388 |
Acquisitions (Tables)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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Digital Media Production
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Acquisition Preliminary Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the date of acquisition.
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Sezmi
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Acquisition Preliminary Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the date of acquisition.
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Hyro Limited
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Acquisition Preliminary Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the date of acquisition.
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Cash and Cash Equivalents - Additional Information (Detail) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
Jun. 30, 2011
|
Dec. 31, 2010
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Cash and Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents in financial institutions outside the United States | $ 30,562 | $ 44,229 | [1] | $ 37,162 | $ 140,585 | ||
Outside United States
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Cash and Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents in financial institutions outside the United States | $ 5,333 | $ 24,379 | |||||
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Acquisition Liabilities (Detail) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
Jun. 30, 2012
Benchmark
|
Dec. 31, 2011
Benchmark
|
Jun. 30, 2012
WWB
|
Dec. 31, 2011
WWB
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Jun. 30, 2012
ioko
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Dec. 31, 2011
ioko
|
Jun. 30, 2012
Polymedia
|
Dec. 31, 2011
Polymedia
|
Jun. 30, 2012
Hyro Limited
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Jun. 22, 2012
Hyro Limited
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Jun. 30, 2012
Peerset
|
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Business Acquisition, Contingent Consideration [Line Items] | ||||||||||||||||
Acquisition liabilities, current portion | $ 17,032 | $ 8,648 | [1] | $ 4,047 | $ 3,960 | $ 2,377 | $ 1,427 | $ 1,374 | $ 1,482 | $ 2,573 | $ 1,779 | $ 6,461 | $ 6,461 | $ 200 | ||
Acquisition liabilities, net of current | $ 3,438 | $ 8,004 | [1] | $ 1,671 | $ 2,421 | $ 3,907 | $ 1,359 | $ 1,017 | $ 1,067 | |||||||
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Hyro Acquisition Estimated Fair Values of Assets Acquired And Liabilities Assumed (Detail) (Hyro Limited, USD $)
In Thousands, unless otherwise specified |
Jun. 22, 2012
|
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Hyro Limited
|
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Business Acquisition [Line Items] | |
Current assets | $ 3,107 |
Property and equipment | 818 |
Purchased Software | 151 |
Goodwill | 15,390 |
Total assets acquired | 19,466 |
Current liabilities | 4,166 |
Net assets acquired | $ 15,300 |
Discontinued Operations (Tables)
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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Components of Assets of Discontinued Operations | At June 30, 2012, the assets of Sezmi and Content Solutions are presented separately on our consolidated balance sheet. The components of the assets of discontinued operations are as follows (in thousands):
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Net Revenues and (Loss) From Discontinued Operations, Net Of Tax | As Sezmi and Content Solutions represented a component of our business and its results of operations and cash flows can be separated from the rest of our operations, the results for the periods presented are disclosed as discontinued operations on the face of the consolidated statements of operations. Net revenues and (loss) from discontinued operations, net of tax, for the three months ended June 30, 2012 and 2011, and for the six months ended June 30, 2012 and 2011, respectively, are as follows (in thousands):
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Nature of Business and Nature of Presentation
|
6 Months Ended |
---|---|
Jun. 30, 2012
|
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Nature of Business and Nature of Presentation | (1) Nature of Business and Nature of Presentation
KIT digital, Inc. (“we,” “us,” “our,” the “Company” or “KIT digital”), through our operating subsidiaries, provides software solutions that enable our customers to manage and distribute video content through Internet websites, mobile and tablet devices and both closed network Internet Protocol television (“IPTV”) and over-the-top (“OTT”) connected television environments. Our core video asset management software suite, marketed under the “KIT Platform” brand (and “KIT Cosmos” and “KIT Cloud” sub-brands), includes online and mobile video players, ingestion and trans-coding for Internet and mobile connected devices, live and video-on-demand OTT and IPTV video serving, editing and content transformation, content meta-tagging, content localization and syndication, digital rights management, hosting, storage, content delivery and content syndication. We currently provide IP video solutions internationally through over 20 offices globally, including principal locations in Atlanta, Beijing, Boston, Chennai, Cologne, Delhi, Dubai, Ely (UK), Grenoble (France), London, Madrid, Melbourne (Australia), Mumbai, New York, Paris, Prague, San Francisco, Singapore, and Sydney. In support of our KIT Platform deployments, we provide systems integration, broadcast engineering services, content transformation services and integrated marketing services.
The accompanying interim consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, for interim financial information. These financial statements include the accounts of KIT digital and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in the accompanying financial statements.
Certain information and footnote disclosures normally included in the Company’s annual audited consolidated financial statements and accompanying notes have been condensed or omitted in these interim financial statements. Accordingly, the unaudited consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and accompanying notes included in KIT digital’s annual report on Form 10-K for the year ended December 31, 2011, filed with the U.S. Securities and Exchange Commission.
The results of operations presented in this quarterly report on Form 10-Q are not necessarily indicative of the results of operations that may be expected for any future periods. In the opinion of management, these unaudited consolidated financial statements include all adjustments and accruals, consisting only of normal recurring adjustments, that are necessary for a fair statement of the results of all interim periods reported herein. |
Summary of Other Receivable (Detail) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
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---|---|---|---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan receivable on sale of subsidiary, net of reserves | $ 2,158 | $ 8,632 | |||
Other receivables | 8,200 | ||||
Total other receivables | 10,358 | 8,632 | |||
Less: current | (1,690) | (2,756) | [1] | ||
Other receivables, net of current | $ 8,668 | $ 5,876 | [1] | ||
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