Date of report (Date of earliest event reported): May 14, 2012
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Commission File Number: 000-03718
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Park City Group, Inc.
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Nevada | 37-1454128 |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
3160 Pinebrook Rd., Park City, Utah 84098
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435-645-2000
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Not Applicable
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[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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SIGNATURES
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Park City Group, Inc.
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By:
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/s/ David Colbert
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Name: David Colbert
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Title: Chief Financial Officer
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Exhibit No.
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Description
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EX-99.1
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PCG Press Release May 14, 2012
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Three Months Ended
March 31,
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Nine Months Ended
March 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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|||||||||||||
Revenues:
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||||||||||||||||
Subscription
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$ | 1,682,751 | $ | 1,700,022 | $ | 5,105,882 | $ | 4,844,914 | ||||||||
Maintenance
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483,141 | 521,402 | 1,492,787 | 1,674,353 | ||||||||||||
Professional services and other revenue
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215,195 | 180,026 | 578,210 | 732,459 | ||||||||||||
Software licenses
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128,560 | 85,260 | 479,170 | 547,979 | ||||||||||||
Total revenues
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2,509,647 | 2,486,710 | 7,656,049 | 7,799,705 | ||||||||||||
Operating revenues:
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||||||||||||||||
Cost of services and product support
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1,198,421 | 1,094,229 | 3,453,795 | 2,894,630 | ||||||||||||
Sales and marketing
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712,256 | 690,804 | 1,942,801 | 2,048,339 | ||||||||||||
General and administrative
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734,523 | 668,081 | 2,284,915 | 2,380,896 | ||||||||||||
Depreciation and amortization
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226,198 | 199,005 | 670,998 | 575,611 | ||||||||||||
Total operating expenses
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2,871,398 | 2,652,119 | 8,352,509 | 7,899,476 | ||||||||||||
(Loss) Income from operations
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(361,751 | ) | (165,409 | ) | (696,460 | ) | (99,771 | ) | ||||||||
Other income (expense):
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||||||||||||||||
Interest expense
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(46,881 | ) | (80,643 | ) | (167,765 | ) | (263,820 | ) | ||||||||
Other gains
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55,995 | - | 55,995 | - | ||||||||||||
(Loss) income before income taxes
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(352,637 | ) | (246,052 | ) | (808,230 | ) | (363,591 | ) | ||||||||
(Provision) benefit for income taxes
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- | - | - | - | ||||||||||||
Net (loss) income
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(352,637 | ) | (246,052 | ) | (808,230 | ) | (363,591 | ) | ||||||||
Dividends on preferred stock
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(208,415 | ) | (205,412 | ) | (625,635 | ) | (619,483 | ) | ||||||||
Net income (loss) applicable to common
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$ | (561,052 | ) | $ | (451,464 | ) | $ | (1,433,865 | ) | $ | (983,074 | ) | ||||
shareholders
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||||||||||||||||
Weighted average shares, basic and diluted
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11,838,000 | 11,325,000 | 11,733,000 | 11,136,000 | ||||||||||||
Basic and diluted loss per share
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$ | (0.05 | ) | $ | (0.04 | ) | $ | (0.12 | ) | $ | (0.09 | ) |
March 31, 2012
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June 30,
2011
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|||||||
Assets
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(Unaudited)
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|||||||
Current assets:
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||||||||
Cash
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$ | 631,132 | $ | 2,618,229 | ||||
Receivables, net of allowance of $152,000 and $15,581
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||||||||
at March 31, 2012 and June 30, 2011, respectively
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1,426,229 | 2,059,773 | ||||||
Prepaid expenses and other current assets
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215,712 | 265,818 | ||||||
Total current assets
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2,273,073 | 4,943,820 | ||||||
Property and equipment, net
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552,414 | 651,992 | ||||||
Other assets:
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||||||||
Deposits and other assets
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20,697 | 24,026 | ||||||
Customer relationships
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2,868,230 | 3,184,967 | ||||||
Goodwill
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4,805,933 | 4,805,933 | ||||||
Capitalized software costs, net
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255,789 | 365,413 | ||||||
Total other assets
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7,950,649 | 8,380,339 | ||||||
Total assets
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$ | 10,776,136 | $ | 13,976,151 | ||||
Liabilities and Stockholders’ Equity
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||||||||
Current liabilities:
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||||||||
Accounts payable
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$ | 507,108 | $ | 790,914 | ||||
Accrued liabilities
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1,363,048 | 1,162,775 | ||||||
Deferred revenue
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1,198,069 | 1,663,232 | ||||||
Capital lease obligations
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56,372 | 107,547 | ||||||
Lines of credit
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1,200,000 | 1,200,000 | ||||||
Note payable
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789,984 | 2,414,853 | ||||||
Total current liabilities
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5,114,581 | 7,339,321 | ||||||
Long-term liabilities:
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||||||||
Notes payable, less current portion
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859,377 | 1,271,691 | ||||||
Capital lease obligations, less current portion
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- | 41,202 | ||||||
Total liabilities
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5,973,958 | 8,652,214 |
March 31, 2012
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June 30,
2011
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|||||||
(Unaudited)
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||||||||
Stockholders’ equity:
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||||||||
Series A Convertible Preferred stock, $0.01 par value, 30,000,000 shares authorized; 680,559 and 667,955 shares issued and outstanding at March 31, 2012 and June 30, 2011, respectively
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6,806 | 6,680 | ||||||
Series B Convertible Preferred stock, $0.01 par value, 30,000,000 shares authorized; 411,927 shares issued and outstanding at March 31, 2012 and June 30, 2011
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4,119 | 4,119 | ||||||
Common stock, $0.01 par value, 50,000,000 shares authorized; 11,862,031 and 11,612,460 issued and outstanding at March 31, 2012 and June 30, 2011,
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||||||||
respectively
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118,620 | 116,125 | ||||||
Additional paid-in capital
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36,998,069 | 36,088,584 | ||||||
Accumulated deficit
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(32,325,436 | ) | (30,891,571 | ) | ||||
Total stockholders’ equity
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4,802,178 | 5,323,937 | ||||||
Total liabilities and stockholders’ equity
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$ | 10,776,136 | $ | 13,976,151 |
Nine Months Ended
March 31,
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||||||||
2012
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2011
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|||||||
Cash Flows From Operating Activities:
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||||||||
Net loss
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$ | (808,230 | ) | $ | (363,591 | ) | ||
Adjustments to reconcile net loss to net cash provided by operating activities:
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||||||||
Depreciation and amortization
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670,997 | 575,611 | ||||||
Bad debt expense
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173,194 | 13,596 | ||||||
Stock compensation expense
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811,171 | 653,211 | ||||||
Stock issued for litigation settlement
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- | 375,000 | ||||||
Other gains
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(55,995 | ) | - | |||||
Decrease (increase) in:
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||||||||
Receivables
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460,350 | 299,655 | ||||||
Prepaids and other assets
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53,435 | (161,139 | ) | |||||
(Decrease) increase in:
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||||||||
Accounts payable
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(227,811 | ) | 27,710 | |||||
Accrued liabilities
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31,559 | (483,699 | ) | |||||
Deferred revenue
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(465,163 | ) | (25,201 | ) | ||||
Net cash provided by operating activities
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643,507 | 911,153 | ||||||
Cash Flows From Investing Activities:
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||||||||
Purchase of property and equipment
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(145,058 | ) | (43,904 | ) | ||||
Capitalization of software costs
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- | (197,051 | ) | |||||
Net cash used in investing activities
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(145,058 | ) | (240,955 | ) | ||||
Cash Flows From Financing Activities:
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||||||||
Proceeds from issuance of note payable
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255,334 | - | ||||||
Proceeds from exercise of warrants
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14,748 | 75,712 | ||||||
Proceeds from issuance of stock
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- | 140,800 | ||||||
Dividends paid
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(370,734 | ) | (247,153 | ) | ||||
Payments on notes payable and capital leases
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(2,384,894 | ) | (526,493 | ) | ||||
Net cash used in financing activities
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(2,485,546 | ) | (557,137 | ) | ||||
Net (decrease) increase in cash
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(1,987,097 | ) | 113,061 | |||||
Cash at beginning of period
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2,618,229 | 1,157,431 | ||||||
Cash at end of period
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$ | 631,132 | $ | 1,270,492 | ||||
Supplemental Disclosure of Cash Flow Information
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||||||||
Cash paid for income taxes
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$ | - | $ | - | ||||
Cash paid for interest
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$ | 238,264 | $ | 272,987 | ||||
Supplemental Disclosure of Non-cash Investing and Financing Activities
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||||||||
Common stock to pay accrued liabilities
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$ | 645,398 | $ | 604,274 | ||||
Dividends accrued on preferred stock
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$ | 625,635 | $ | 619,483 | ||||
Dividends paid with preferred stock
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$ | 251,960 | $ | 245,490 |
Three Months Ended
March 31,
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Nine Months Ended
March 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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Net Income (loss)
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$ | (353 | ) | $ | (246 | ) | $ | (808 | ) | $ | (364 | ) | ||||
Adjusted EBITDA Reconciliation Adjustments:
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||||||||||||||||
Depreciation and amortization
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226 | 199 | 671 | 576 | ||||||||||||
Bad debt expense
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103 | 11 | 173 | 14 | ||||||||||||
Interest, net
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47 | 81 | 168 | 264 | ||||||||||||
Stock based compensation
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248 | 290 | 811 | 653 | ||||||||||||
One-time expenses (stock and cash)
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- | - | 60 | 450 | ||||||||||||
Adjusted EBITDA
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$ | 271 | $ | 335 | $ | 1,075 | $ | 1,593 | ||||||||
Three Months Ended
March 31,
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Nine Months Ended
March 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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|||||||||||||
Net Income (loss)
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$ | (353 | ) | $ | (246 | ) | $ | (808 | ) | $ | (363 | ) | ||||
Non-GAAP Net Income (Loss) Reconciliation Adjustments:
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||||||||||||||||
Stock based compensation
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248 | 290 | 811 | 653 | ||||||||||||
One-time expenses (stock and cash)
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- | - | 60 | 450 | ||||||||||||
Acquisition related amortization
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126 | 126 | 378 | 378 | ||||||||||||
Non-GAAP Net Income
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$ | 21 | $ | 170 | $ | 441 | $ | 1,118 | ||||||||
Preferred dividends
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(208 | ) | (205 | ) | (626 | ) | (619 | ) | ||||||||
Non-GAAP Net Income to Common Shareholders
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$ | (187 | ) | $ | (35 | ) | $ | (185 | ) | $ | 499 | |||||
Weighted average shares, diluted
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11,838,000 | 11,325,000 | 11,733,000 | 11,136,000 | ||||||||||||
Non-GAAP EPS, diluted
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$ | (0.02 | ) | $ | (0.00 | ) | $ | (0.02 | ) | $ | 0.05 |
Three Months Ended
March 31,
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Nine Months Ended
March 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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Net Cash Provided by Operating Activities
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$ | 252 | $ | 270 | $ | 644 | $ | 911 | ||||||||
Non-GAAP Free Cash Flow Reconciliation Adjustments:
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||||||||||||||||
Purchase of property and equipment
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(91 | ) | (19 | ) | (145 | ) | (44 | ) | ||||||||
Capitalized software costs
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- | - | - | (197 | ) | |||||||||||
Non-GAAP Free Cash Flow
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$ | 161 | $ | 251 | $ | 499 | $ | 670 | ||||||||
As of March 31
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||||||||
2012
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2011
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|||||||
Total Debt
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$ | 2,849 | $ | 3,859 | ||||
Less Total Cash
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$ | 631 | $ | 1,270 | ||||
Non-GAAP Net Debt
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$ | 2,218 | $ | 2,589 |