Delaware
|
|
001-36280
|
|
05-0502529
|
(State
or other jurisdiction of Incorporation or
Organization)
|
|
(Commission
File Number)
|
|
(I.R.S.
Employer Identification No.)
|
5001 Celebration Pointe Avenue,
Suite
410, Gainesville, FL
|
|
32608
|
(Address
of principal executive offices)
|
|
(Zip
Code)
|
Title
of each class
|
|
Trading
Symbol(s)
|
|
Name of
exchange on which registered
|
Common Stock, $0.001 par value
per share
|
|
SHSP
|
|
The NASDAQ Stock Market LLC
|
Exhibit No.
|
Description
|
99.1 |
Press
Release
|
|
SHARPSPRING, INC.
|
|
|
|
|
|
|
Dated:
May 14, 2020
|
By:
|
/s/
Michael Power
|
|
|
|
Michael
Power,
|
|
|
|
Chief
Financial Officer
|
|
|
Three Months Ended
|
|
|
March 31,
|
|
|
2020
|
2019
|
Revenue
|
$7,052,729
|
$5,326,285
|
|
|
|
Cost
of services
|
2,367,642
|
1,548,381
|
Gross
profit
|
4,685,087
|
3,777,904
|
|
|
|
Operating
expenses:
|
|
|
Sales
and marketing
|
3,034,121
|
3,008,203
|
Research
and development
|
1,578,139
|
1,258,728
|
General
and administrative
|
2,413,842
|
2,227,675
|
Intangible
asset amortization
|
152,801
|
95,250
|
|
|
|
Total
operating expenses
|
7,178,903
|
6,589,856
|
|
|
|
Operating
loss
|
(2,493,816)
|
(2,811,952)
|
|
|
|
Other
expense, net
|
(56,778)
|
(104,126)
|
Gain
on embedded derivative
|
-
|
24,574
|
|
|
|
Loss
before income taxes
|
(2,550,594)
|
(2,891,504)
|
Provision
(benefit) for income taxes
|
(1,562,517)
|
2,339
|
|
|
|
Net
loss
|
$(988,077)
|
$(2,893,843)
|
|
|
|
Basic
net loss per share
|
$(0.09)
|
$(0.33)
|
Diluted
net loss per share
|
$(0.09)
|
$(0.33)
|
|
|
|
Weighted
average common shares outstanding
|
|
|
Basic
|
11,521,192
|
8,840,281
|
Diluted
|
11,521,192
|
8,840,281
|
|
March 31,
|
December 31,
|
|
2020
|
2019
|
Assets
|
|
|
Cash
and cash equivalents
|
$11,625,049
|
$11,881,949
|
Accounts
receivable
|
425,918
|
340,344
|
Unbilled
receivables
|
1,091,122
|
998,048
|
Income
taxes receivable
|
1,577,927
|
15,010
|
Other
current assets
|
1,500,627
|
1,363,366
|
Total
current assets
|
16,220,643
|
14,598,717
|
|
|
|
Property
and equipment, net
|
2,206,156
|
1,996,722
|
Goodwill
|
10,919,403
|
10,922,814
|
Intangibles,
net
|
4,505,199
|
4,658,000
|
Right-of-use
assets
|
5,687,249
|
5,281,530
|
Other
long-term assets
|
547,333
|
549,022
|
Total
assets
|
$40,085,983
|
$38,006,805
|
|
|
|
Liabilities
and Shareholders' Equity
|
|
|
Accounts
payable
|
$2,942,268
|
$2,052,538
|
Accrued
expenses and other current liabilities
|
524,844
|
919,089
|
Line
of credit
|
1,900,000
|
-
|
Deferred
revenue
|
766,715
|
860,820
|
Income
taxes payable
|
12,284
|
13,944
|
Lease
liability, current portion
|
420,977
|
370,340
|
Total
current liabilities
|
6,567,088
|
4,216,731
|
|
|
|
Lease
liability, net of current portion
|
5,347,179
|
4,976,727
|
Total
liabilities
|
11,914,267
|
9,193,458
|
|
|
|
Shareholders'
equity:
|
|
|
Preferred
stock, $0.001 par value
|
-
|
-
|
Common
stock, $0.001 par value
|
11,546
|
11,537
|
Additional
paid in capital
|
59,206,549
|
58,851,285
|
Accumulated
other comprehensive loss
|
(233,620)
|
(224,793)
|
Accumulated
deficit
|
(30,728,759)
|
(29,740,682)
|
Treasury
stock
|
(84,000)
|
(84,000)
|
Total
shareholders' equity
|
28,171,716
|
28,813,347
|
|
|
|
Total
liabilities and shareholders' equity
|
$40,085,983
|
$38,006,805
|
|
Three Months Ended
|
|
|
March 31,
|
|
|
2020
|
2019
|
Net
loss
|
$(988,077)
|
$(2,893,843)
|
|
|
|
Adjustments
to reconcile loss from operations:
|
|
|
Depreciation
and amortization
|
356,579
|
227,253
|
Amortization
of costs to acquire contracts
|
202,439
|
202,945
|
Non-cash
stock compensation
|
370,632
|
303,517
|
Non-cash
interest
|
-
|
100,000
|
Amortization
of debt issuance costs and embedded derivative
|
-
|
(2,000)
|
Gain
on embedded derivative
|
-
|
(24,574)
|
Unrealized
foreign currency loss
|
80,727
|
10,739
|
Changes
in assets and liabilities:
|
|
|
Accounts
receivable
|
(85,272)
|
14,448
|
Unbilled
receivables
|
(92,496)
|
(93,772)
|
Right-of-use
assets
|
(405,719)
|
106,215
|
Other
assets
|
(342,872)
|
(42,855)
|
Income
taxes, net
|
(1,562,944)
|
2,339
|
Accounts
payable
|
890,013
|
(274,640)
|
Lease
liabilities
|
421,089
|
(92,035)
|
Other
liabilities
|
(394,239)
|
(69,280)
|
Deferred
revenue
|
(94,289)
|
39,585
|
Net
cash used in operating activities
|
(1,644,429)
|
(2,485,958)
|
|
|
|
Cash
flows from investing activities
|
|
|
Purchases
of property and equipment
|
(140,930)
|
(169,976)
|
Capitalization
of software development costs
|
(272,282)
|
(177,198)
|
Net
cash used in investing activities
|
(413,212)
|
(347,174)
|
|
|
|
Cash
flows used in financing activities:
|
|
|
Proceeds
from line of credit
|
1,900,000
|
-
|
Proceeds
from exercise of stock options, net
|
11,174
|
603,865
|
Proceeds
from issuance of common stock, net
|
-
|
10,672,444
|
Payments
for taxes related to net share settlement of equity
awards
|
(26,533)
|
-
|
Net
cash provided by financing activities
|
1,884,641
|
11,276,309
|
|
|
|
Effect
of exchange rate on cash
|
(83,900)
|
(11,285)
|
|
|
|
Change
in cash and cash equivalents
|
$(256,900)
|
$8,431,892
|
|
|
|
Cash
and cash equivalents, beginning of period
|
$11,881,949
|
$9,320,866
|
|
|
|
Cash
and cash equivalents, end of period
|
$11,625,049
|
$17,752,758
|
|
Three Months Ended
|
|
|
March 31,
|
|
|
2020
|
2019
|
Net
loss
|
$(988)
|
$(2,894)
|
Provision
(benefit) for income taxes
|
(1,563)
|
2
|
Other
expense, net
|
57
|
104
|
Non-cash
gain on embedded derivative
|
-
|
(25)
|
Depreciation
& amortization
|
357
|
227
|
Non-cash
stock compensation
|
371
|
304
|
Restructuring
|
-
|
133
|
Franchise
tax settlement
|
-
|
318
|
Adjusted EBITDA
|
(1,766)
|
(1,831)
|
|
Three Months Ended
|
|
|
March 31,
|
|
|
2020
|
2019
|
Net
loss
|
$(988)
|
$(2,894)
|
Amortization
of intangible assets
|
153
|
95
|
Non-cash
stock compensation
|
371
|
304
|
Non-cash
gain on embedded derivative
|
-
|
(25)
|
Restructuring
|
-
|
133
|
Franchise
tax settlement
|
-
|
318
|
Tax
adjustment
|
(321)
|
1
|
Core net loss
|
$(785)
|
$(2,068)
|
|
|
|
Core net loss per share
|
$(0.07)
|
$(0.23)
|
Weighted
average common shares outstanding
|
11,521
|
8,840
|
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