Delaware
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001-36280
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05-0502529
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(State
or other jurisdiction of Incorporation or
Organization)
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(Commission
File Number)
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(I.R.S.
EmployerIdentification No.)
|
550 SW 2nd Avenue, Gainesville, FL
|
|
32601
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(Address
of principal executive offices)
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|
(Zip
Code)
|
|
Emerging
growth company ☐
|
|
SHARPSPRING, INC.
|
|
|
|
|
|
By:
|
/s/
Edward S. Lawton
|
|
|
Edward
S. Lawton,
|
|
|
Chief Financial Officer
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|
SharpSpring, Inc.
|
||
CONSOLIDATED STATEMENTS OF OPERATIONS
|
||
(Unaudited)
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||
|
|
|
|
Three Months Ended
|
|
|
March 31,
|
|
|
2018
|
2017
|
Revenue
|
$4,184,663
|
$3,023,433
|
|
|
|
Cost
of services
|
1,400,297
|
1,271,321
|
Gross
profit
|
2,784,366
|
1,752,112
|
|
|
|
Operating
expenses:
|
|
|
Sales
and marketing
|
2,371,030
|
1,549,522
|
Research
and development
|
950,675
|
659,731
|
General
and administrative
|
1,426,234
|
1,356,198
|
Intangible
asset amortization
|
115,000
|
131,523
|
|
|
|
Total
operating expenses
|
4,862,939
|
3,696,974
|
|
|
|
Operating
loss
|
(2,078,573)
|
(1,944,862)
|
|
|
|
Other
income (expense), net
|
68,628
|
66,844
|
|
|
|
Loss
before income taxes
|
(2,009,945)
|
(1,878,018)
|
Provision
(benefit) for income tax
|
41,997
|
(498,746)
|
|
|
|
Net
loss
|
$(2,051,942)
|
$(1,379,272)
|
|
|
|
Basic
net loss per share
|
$(0.24)
|
$(0.16)
|
Diluted
net loss per share
|
$(0.24)
|
$(0.16)
|
|
|
|
Weighted
average common shares outstanding
|
|
|
Basic
|
8,443,455
|
8,369,249
|
Diluted
|
8,443,455
|
8,369,249
|
SharpSpring, Inc.
|
||
CONSOLIDATED BALANCE SHEETS
|
||
(Unaudited)
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||
|
|
|
|
March 31,
|
December 31,
|
|
2018
|
2017
|
Assets
|
|
|
Cash
and cash equivalents
|
$12,259,169
|
$5,399,747
|
Accounts
receivable
|
729,036
|
639,959
|
Income
taxes receivable
|
2,034,668
|
2,132,616
|
Other
current assets
|
957,354
|
899,127
|
Total
current assets
|
15,980,227
|
9,071,449
|
|
|
|
Property
and equipment, net
|
795,982
|
799,145
|
Goodwill
|
8,882,393
|
8,872,898
|
Intangibles,
net
|
2,211,000
|
2,326,000
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Other
long-term assets
|
774,049
|
612,631
|
Total
assets
|
$28,643,651
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$21,682,123
|
|
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Liabilities
and Shareholders' Equity
|
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Accounts
payable
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$1,263,329
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$504,901
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Accrued
expenses and other current liabilities
|
563,870
|
625,680
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Deferred
revenue
|
303,004
|
279,818
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Income
taxes payable
|
200,820
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171,384
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Total
current liabilities
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2,331,023
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1,581,783
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|
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Deferred
income taxes
|
168,132
|
168,132
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Convertible
notes
|
8,048,787
|
-
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Total
liabilities
|
10,547,942
|
1,749,915
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Shareholders'
equity:
|
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Preferred
stock, $0.001 par value
|
-
|
-
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Common
stock, $0.001 par value
|
8,467
|
8,456
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Additional
paid in capital
|
28,608,357
|
28,362,397
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Accumulated
other comprehensive loss
|
(511,289)
|
(480,762)
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Accumulated
deficit
|
(9,925,826)
|
(7,873,883)
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Treasury
stock
|
(84,000)
|
(84,000)
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Total
shareholders' equity
|
18,095,709
|
19,932,208
|
|
|
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Total
liabilities and shareholders' equity
|
$28,643,651
|
$21,682,123
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SharpSpring, Inc.
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CONSOLIDATED STATEMENTS OF CASH FLOWS
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(Unaudited)
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||
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Three Months Ended
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|
|
March 31,
|
|
|
2018
|
2017
|
Net
loss
|
$(2,051,942)
|
$(1,379,272)
|
|
|
|
Adjustments
to reconcile loss from operations:
|
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Depreciation
and amortization
|
190,983
|
196,606
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Non-cash
stock compensation
|
237,415
|
184,346
|
Deferred
income taxes
|
-
|
(29,558)
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Non-cash
interest
|
274
|
-
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Amortization
of debt issuance costs
|
4,301
|
-
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Unearned
foreign currency gain/loss
|
(49,397)
|
(33,865)
|
Changes
in assets and liabilities:
|
|
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Accounts
receivable
|
(84,896)
|
214,873
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Other
assets
|
(32,991)
|
(40,440)
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Income
taxes, net
|
124,866
|
(75,294)
|
Accounts
payable
|
751,502
|
155,471
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Accrued
expenses and other current liabilities
|
(61,837)
|
(41,091)
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Deferred
revenue
|
20,623
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(339)
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Net
cash used in operating activities
|
(951,099)
|
(848,563)
|
|
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Cash
flows from investing activities
|
|
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Purchases
of property and equipment
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(72,820)
|
(83,787)
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Acquisitions
of customer assets from resellers
|
-
|
(3,116)
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Net
cash used in investing activities
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(72,820)
|
(86,903)
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Cash
flows used in financing activities:
|
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Proceeds
from issance of convertible note
|
8,000,000
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-
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Debt
issuance costs
|
(141,657)
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-
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Proceeds
from exercise of stock options
|
8,555
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-
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Net
cash provided by financing activities
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7,866,898
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-
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Effect
of exchange rate on cash
|
16,443
|
13,011
|
|
|
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Change
in cash and cash equivalents
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$6,859,422
|
$(922,455)
|
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Cash
and cash equivalents, beginning of period
|
$5,399,747
|
$8,651,374
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|
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Cash
and cash equivalents, end of period
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$12,259,169
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$7,728,919
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SharpSpring, Inc.
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RECONCILIATION TO ADJUSTED EBITDA
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(Unaudited, in Thousands)
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Three Months Ended
|
|
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March 31,
|
|
|
2018
|
2017
|
Net
loss from operations
|
$(2,052)
|
$(1,379)
|
Provision
(benefit) for income tax
|
42
|
(499)
|
Other
(income) expense, net
|
(69)
|
(67)
|
Depreciation
& amortization
|
191
|
197
|
Non-cash
stock compensation
|
237
|
184
|
Adjusted EBITDA
|
(1,651)
|
(1,564)
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SharpSpring, Inc.
|
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RECONCILIATION TO CORE NET LOSS AND CORE LOSS PER
SHARE
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||
(Unaudited, in Thousands)
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||
|
|
|
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Three Months Ended
|
|
|
March 31,
|
|
|
2018
|
2017
|
Net
loss from operations
|
$(2,052)
|
$(1,379)
|
Amortization
of intangible assets
|
115
|
132
|
Non-cash
stock compensation
|
237
|
184
|
Tax
adjustment
|
7
|
(80)
|
Core net loss from operations
|
$(1,693)
|
$(1,143)
|
|
|
|
Core net loss per share from operations
|
$(0.20)
|
$(0.14)
|
Weighted
average common shares outstanding
|
8,443
|
8,369
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