Delaware
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001-33601
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74-2785449
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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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Item 2.02
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Results of Operations and Financial Condition
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Item 9.01
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Financial Statements and Exhibits
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GLOBALSCAPE, INC.
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By:
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/s/ Jim Albrecht
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Jim Albrecht, Chief Financial Officer
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Dated: November 5, 2014
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Exhibit
Number
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Document Description
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99.1
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GlobalSCAPE, Inc.
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||||||||
Condensed Consolidated Balance Sheets
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||||||||
(in thousands except share amounts)
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||||||||
(Unaudited)
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||||||||
September 30, 2014
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December 31, 2013
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|||||||
Assets
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||||||||
Current assets:
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||||||||
Cash and cash equivalents
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$ | 9,265 | $ | 9,455 | ||||
Accounts receivable (net of allowance for doubtful accounts
of $551 and $154 in 2014 and 2013, respectively)
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6,722 | 3,765 | ||||||
Federal income tax receivable
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236 | 113 | ||||||
Current deferred tax asset
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174 | 184 | ||||||
Prepaid expenses
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264 | 349 | ||||||
Total current assets
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16,661 | 13,866 | ||||||
Long term investments
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3,169 | 3,122 | ||||||
Capitalized software development costs, net
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2,697 | 1,028 | ||||||
Deferred tax asset
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745 | 1,476 | ||||||
Goodwill
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12,712 | 12,712 | ||||||
Fixed assets, net
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738 | 744 | ||||||
Other assets
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133 | 144 | ||||||
Total assets
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$ | 36,855 | $ | 33,092 | ||||
Liabilities and Stockholders’ Equity
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||||||||
Current liabilities:
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||||||||
Accounts payable
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$ | 632 | $ | 655 | ||||
Accrued expenses
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1,296 | 898 | ||||||
Deferred revenue
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11,047 | 9,092 | ||||||
Long term debt, current portion
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- | 1,397 | ||||||
Total current liabilities
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12,975 | 12,042 | ||||||
Deferred revenue, non-current portion
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3,159 | 1,708 | ||||||
Long term debt, non-current portion
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- | 2,989 | ||||||
Other long term liabilities
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51 | 60 | ||||||
Commitments and contingencies
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||||||||
Stockholders’ equity:
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||||||||
Preferred stock, par value $0.001 per share, 10,000,000
authorized, no shares issued or outstanding |
- | - | ||||||
Common stock, par value $0.001 per share, 40,000,000
authorized, 20,967,617 and 19,592,117 shares issued |
25 | 20 | ||||||
Additional paid-in capital
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18,401 | 15,834 | ||||||
Treasury stock, 403,581 shares, at cost, at
September 30, 2014 and December 31, 2013 |
(1,452 | ) | (1,452 | ) | ||||
Retained earnings
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3,696 | 1,891 | ||||||
Total stockholders’ equity
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20,670 | 16,293 | ||||||
Total liabilities and stockholders’ equity
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$ | 36,855 | $ | 33,092 |
GlobalSCAPE, Inc.
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Condensed Consolidated Statements of Operations and Comprehensive Income
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||||||||||||||||
(In thousands, except per share amounts)
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||||||||||||||||
(Unaudited)
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||||||||||||||||
Three months ended September 30,
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Nine months ended September 30,
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2014
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2013
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2014
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2013
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Operating Revenues:
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Software licenses
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$ | 2,291 | $ | 2,432 | $ | 6,789 | $ | 6,752 | ||||||||
Maintenance and support
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3,790 | 3,493 | 11,181 | 10,153 | ||||||||||||
Professional services
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409 | 412 | 933 | 1,237 | ||||||||||||
Total Revenues
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6,490 | 6,337 | 18,903 | 18,142 | ||||||||||||
Operating Expenses:
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||||||||||||||||
Cost of revenues
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277 | 250 | 679 | 782 | ||||||||||||
Selling, general and administrative
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4,173 | 3,492 | 13,077 | 11,137 | ||||||||||||
Research and development
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513 | 923 | 1,722 | 2,653 | ||||||||||||
TappIn intangible asset impairment and earnout liability elimination
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- | (128 | ) | - | (128 | ) | ||||||||||
Depreciation and amortization
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263 | 265 | 580 | 787 | ||||||||||||
Total operating expenses
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5,226 | 4,802 | 16,058 | 15,231 | ||||||||||||
Income from operations
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1,264 | 1,535 | 2,845 | 2,911 | ||||||||||||
Other expense, net
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(11 | ) | (39 | ) | (58 | ) | (130 | ) | ||||||||
Income before income taxes
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1,253 | 1,496 | 2,787 | 2,781 | ||||||||||||
Income tax expense
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471 | (791 | ) | 982 | (404 | ) | ||||||||||
Net income
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$ | 782 | $ | 2,287 | $ | 1,805 | $ | 3,185 | ||||||||
Comprehensive income
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$ | 782 | $ | 2,287 | $ | 1,805 | $ | 3,185 | ||||||||
Net income per common share -
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||||||||||||||||
Basic
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$ | 0.04 | $ | 0.12 | $ | 0.09 | $ | 0.17 | ||||||||
Diluted
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$ | 0.04 | $ | 0.12 | $ | 0.09 | $ | 0.17 |
GlobalSCAPE, Inc.
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Condensed Consolidated Statements of Cash Flows
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(in thousands)
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(Unaudited)
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For the Nine Months Ended September 30,
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2014
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2013
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Operating Activities:
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Net income
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$ | 1,805 | $ | 3,185 | ||||
Adjustments to reconcile net income to net cash provided by operating activities:
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Bad debt expense
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318 | 29 | ||||||
Depreciation and amortization
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580 | 787 | ||||||
Stock-based compensation
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380 | 522 | ||||||
Deferred taxes
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740 | (1,030 | ) | |||||
Excess tax deficiency from share-based
compensation |
367 | 83 | ||||||
TappIn intangible asset impairment and earnout liability elimination
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- | (128 | ) | |||||
Subtotal before changes in operating assets and liabilities
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4,190 | 3,448 | ||||||
Changes in operating assets and liabilities:
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Deferred revenue
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3,405 | 948 | ||||||
Accrued expenses
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398 | (149 | ) | |||||
Income tax receivable and payable
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(490 | ) | (107 | ) | ||||
Prepaid expenses
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85 | 8 | ||||||
Other assets
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10 | (62 | ) | |||||
Other long-term liabilities
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(6 | ) | (2 | ) | ||||
Accounts payable
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(24 | ) | (6 | ) | ||||
Accounts receivable
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(3,275 | ) | (251 | ) | ||||
Net cash provided by operating activities
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4,293 | 3,827 | ||||||
Investing Activities:
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Software development costs
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(2,028 | ) | (686 | ) | ||||
Purchase of property and equipment
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(215 | ) | (65 | ) | ||||
Purchase of TappIn, Inc. and earnout payments
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- | (500 | ) | |||||
Interest on long term investments
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(47 | ) | (47 | ) | ||||
Net cash (used in) investing activities
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(2,290 | ) | (1,298 | ) | ||||
Financing Activities:
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Proceeds from exercise of stock options
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2,559 | 231 | ||||||
Tax deficiency (benefit) from stock-based compensation
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(367 | ) | (83 | ) | ||||
Notes payable principle payments
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(4,385 | ) | (999 | ) | ||||
Net cash provided by (used in) financing activities
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(2,193 | ) | (851 | ) | ||||
Net increase (decrease) in cash
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(190 | ) | 1,678 | |||||
Cash at beginning of period
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9,455 | 8,079 | ||||||
Cash at end of period
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$ | 9,265 | $ | 9,757 | ||||
Supplemental disclosure of cash flow information:
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Cash paid during the period for:
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Interest
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$ | 117 | $ | 182 | ||||
Income taxes
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$ | 642 | $ | 731 |
GlobalSCAPE, Inc.
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Adjusted EBITDA Excluding Infrequent Items
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(in thousands)
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(Unaudited)
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Three Months Ended
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Nine Months Ended
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September 30,
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September 30,
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2014
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2013
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2014
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2013
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Net income (loss)
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$ | 782 | $ | 2,287 | $ | 1,805 | $ | 3,185 | ||||||||
Add (subtract) items to determine adjusted EBITDA:
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Income tax expense
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471 | (791 | ) | 982 | (404 | ) | ||||||||||
Interest expense, net
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12 | 39 | 59 | 130 | ||||||||||||
Depreciation and amortization:
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Total depreciation and amortization
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263 | 265 | 580 | 787 | ||||||||||||
Amortization of capitalized software development costs
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(186 | ) | (47 | ) | (359 | ) | (151 | ) | ||||||||
Stock-based compensation expense
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120 | 225 | 380 | 522 | ||||||||||||
Infrequent item:
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TappIn intangible asset impairment and earnout liability elimination
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- | (128 | ) | - | (128 | ) | ||||||||||
Adjusted EBITDA Excluding Infrequent Items
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$ | 1,462 | $ | 1,850 | $ | 3,447 | $ | 3,941 |