Delaware | 001-35376 | 77-0312442 | ||||
(State or other jurisdiction | (Commission | (IRS Employer | ||||
of incorporation) | File Number) | Identification No.) |
1776 Lincoln Street, Suite 1300 |
Denver, Colorado 80203 |
(Address of principal executive offices) (Zip Code) |
Exhibit No. | Description | |
Press Release of Glowpoint, Inc. dated November 14, 2017. |
GLOWPOINT, INC. | |||
(registrant) | |||
Date: | November 14, 2017 | By: | /s/ David Clark |
David Clark | |||
Chief Financial Officer |
Exhibit No. | Description | |
Press Release of Glowpoint, Inc. dated November 14, 2017. |
• | Revenue of $11.4 million, net income of $5.8 million and adjusted EBITDA of $1.0 million for the nine months ended September 30, 2017, or 9% of revenue. Adjusted EBITDA is a non-GAAP financial measure, see GAAP to non-GAAP reconciliation later in this release. |
• | Generated cash flow from operations of $1.1 million for the nine months ended September 30, 2017. |
• | Completed recapitalization of the Company’s debt obligations on July 31, 2017, which reduced debt and accrued interest obligations by $9.4 million and lowered outstanding shares of common stock by 0.4 million. |
• | Cash of $1.4 million and working capital of $0.7 million as of September 30, 2017. |
• | Stockholders’ equity of $10.0 million as of September 30, 2017. The Company expects to meet the continued listing standards of the NYSE American Company Guide relating to a minimum stockholders’ equity balance of $6.0 million following filing of the Company’s 2017 Form 10-K in March 2018 (as the Company must report two consecutive quarters of being in compliance with such standards). |
• | The Company’s pro forma cash, working capital and stockholders’ equity as of September 30, 2017, when including the net proceeds of the Series B Offering, were $3.8 million, $3.0 million and $12.3 million, respectively. |
September 30, 2017 | December 31, 2016 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash | $ | 1,439 | $ | 1,140 | |||
Accounts receivable, net | 1,367 | 1,635 | |||||
Prepaid expenses and other current assets | 767 | 978 | |||||
Total current assets | 3,573 | 3,753 | |||||
Property and equipment, net | 1,339 | 2,203 | |||||
Goodwill | 7,750 | 9,225 | |||||
Intangibles, net | 658 | 1,309 | |||||
Other assets | 10 | 10 | |||||
Total assets | $ | 13,330 | $ | 16,500 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Current portion of long-term debt | $ | 1,298 | $ | 10,660 | |||
Accounts payable | 202 | 75 | |||||
Accrued expenses and other liabilities | 846 | 1,165 | |||||
Accrued dividends | 56 | 47 | |||||
Liability for common stock warrants | 165 | — | |||||
Accrued sales taxes and regulatory fees | 310 | 395 | |||||
Total current liabilities | 2,877 | 12,342 | |||||
Long term liabilities: | |||||||
Deferred tax liability | — | 230 | |||||
Long term debt, net of current portion | 490 | — | |||||
Total long term liabilities | 490 | 230 | |||||
Total liabilities | 3,367 | 12,572 | |||||
Stockholders’ equity: | |||||||
Preferred stock, Series A-2, convertible; $.0001 par value; $7,500 stated value; 7,500 shares authorized, 32 shares issued and outstanding and liquidation preference of $237 at September 30, 2017 and December 31, 2016 | 100 | 100 | |||||
Common stock, $.0001 par value; 150,000,000 shares authorized; 36,782,000 issued and 36,130,000 outstanding at September 30, 2017 and 36,659,000 issued and 36,455,000 outstanding at December 31, 2016 | 4 | 4 | |||||
Treasury stock, 652,000 and 204,000 shares at September 30, 2017 and December 31, 2016, respectively | (353 | ) | (219 | ) | |||
Additional paid-in capital | 180,656 | 180,333 | |||||
Accumulated deficit | (170,444 | ) | (176,290 | ) | |||
Total stockholders’ equity | 9,963 | 3,928 | |||||
Total liabilities and stockholders’ equity | $ | 13,330 | $ | 16,500 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenue | $ | 3,481 | $ | 4,344 | $ | 11,417 | $ | 14,950 | |||||||
Operating expenses: | |||||||||||||||
Cost of revenue (exclusive of depreciation and amortization) | 1,988 | 2,609 | 6,697 | 9,187 | |||||||||||
Research and development | 296 | 229 | 875 | 817 | |||||||||||
Sales and marketing | 69 | 70 | 369 | 576 | |||||||||||
General and administrative | 970 | 1,664 | 2,843 | 4,009 | |||||||||||
Impairment charges | 1,707 | 605 | 1,712 | 630 | |||||||||||
Depreciation and amortization | 451 | 455 | 1,370 | 1,509 | |||||||||||
Total operating expenses | 5,481 | 5,632 | 13,866 | 16,728 | |||||||||||
Loss from operations | (2,000 | ) | (1,288 | ) | (2,449 | ) | (1,778 | ) | |||||||
Interest expense and other, net | (197 | ) | (362 | ) | (916 | ) | (1,081 | ) | |||||||
Gain on extinguishment of debt | 9,045 | — | 9,045 | — | |||||||||||
Amortization of debt discount | (28 | ) | (18 | ) | (64 | ) | (54 | ) | |||||||
Interest and other income (expense), net | 8,820 | (380 | ) | 8,065 | (1,135 | ) | |||||||||
Income (loss) before income taxes | 6,820 | (1,668 | ) | 5,616 | (2,913 | ) | |||||||||
Income tax benefit (expense) | 284 | (37 | ) | 230 | (108 | ) | |||||||||
Net income (loss) | 7,104 | (1,705 | ) | 5,846 | (3,021 | ) | |||||||||
Preferred stock dividends | 3 | 3 | 9 | 9 | |||||||||||
Net income (loss) attributable to common stockholders | $ | 7,101 | $ | (1,708 | ) | $ | 5,837 | $ | (3,030 | ) | |||||
Net income (loss) attributable to common stockholders per share: | |||||||||||||||
Basic net income (loss) per share | $ | 0.19 | $ | (0.05 | ) | $ | 0.16 | $ | (0.09 | ) | |||||
Diluted net income (loss) per share | $ | 0.19 | $ | (0.05 | ) | $ | 0.15 | $ | (0.09 | ) | |||||
GAAP to Non-GAAP Reconciliation: | |||||||||||||||
Net income (loss) | $ | 7,104 | $ | (1,705 | ) | $ | 5,846 | $ | (3,021 | ) | |||||
Depreciation and amortization | 451 | 455 | 1,370 | 1,509 | |||||||||||
Interest and other (income) expense, net | (8,820 | ) | 380 | (8,065 | ) | 1,135 | |||||||||
Income tax (benefit) expense | (284 | ) | 37 | (230 | ) | 108 | |||||||||
EBITDA * | (1,549 | ) | (833 | ) | (1,079 | ) | (269 | ) | |||||||
Stock-based compensation | 96 | 221 | 377 | 748 | |||||||||||
Stock-based expense | — | 168 | — | 168 | |||||||||||
Impairment charges | 1,707 | 605 | 1,712 | 630 | |||||||||||
Adjusted EBITDA | $ | 254 | $ | 161 | $ | 1,010 | $ | 1,277 | |||||||
* Represents a loss |
Nine Months Ended September 30, | |||||||
2017 | 2016 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | 5,846 | $ | (3,021 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation and amortization | 1,370 | 1,509 | |||||
Bad debt expense (recovery) | (8 | ) | 6 | ||||
Amortization of debt discount | 64 | 54 | |||||
Non-cash interest expense | 213 | — | |||||
Stock-based compensation expense | 377 | 748 | |||||
Gain on debt extinguishment | (9,045 | ) | — | ||||
Accrued non-cash stock-based expense | — | 168 | |||||
Impairment charges | 1,712 | 630 | |||||
Deferred tax provision (benefit) | (230 | ) | 111 | ||||
Changes in assets and liabilities: | |||||||
Accounts receivable | 276 | 953 | |||||
Prepaid expenses and other current assets | 211 | (342 | ) | ||||
Other assets | — | 1 | |||||
Accounts payable | 126 | (271 | ) | ||||
Accrued expenses and other liabilities | 246 | (281 | ) | ||||
Accrued sales taxes and regulatory fees | (85 | ) | — | ||||
Net cash provided by operating activities | 1,073 | 265 | |||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (93 | ) | (273 | ) | |||
Net cash used in investing activities | (93 | ) | (273 | ) | |||
Cash flows from financing activities: | |||||||
Principal payments under borrowing arrangements | (341 | ) | (400 | ) | |||
Proceeds from new loan agreements, net of expenses of $170 | 2,030 | — | |||||
Payment of equity issuance costs | (45 | ) | — | ||||
Purchase of treasury stock | (2,325 | ) | (13 | ) | |||
Net cash used in financing activities | (681 | ) | (413 | ) | |||
Increase (decrease) in cash and cash equivalents | 299 | (421 | ) | ||||
Cash at beginning of period | 1,140 | 1,764 | |||||
Cash at end of period | $ | 1,439 | $ | 1,343 | |||
Supplemental disclosures of cash flow information: | |||||||
Cash paid during the period for interest | $ | 777 | $ | 841 | |||
Non-cash investing and financing activities: | |||||||
Accrued preferred stock dividends | $ | 9 | $ | 9 | |||
Retired debt and accrued interest obligations in exchange for treasury stock | $ | 2,191 | $ | — | |||
Recognition of prepaid equity issuance costs as additional paid-in capital | $ | — | $ | 18 |