☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 95-4439334 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
5400 Trinity Road, Suite 208 Raleigh, North Carolina | 27607 |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ☐ | Accelerated filer | ☐ |
Non-accelerated filer | ☐ (Do not check if a smaller reporting company) | Smaller reporting company | ☒ |
Emerging growth company | ☐ |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
None | None | None |
Page No. | ||
PART I – FINANCIAL INFORMATION | ||
Item 1. | Financial Statements | |
Condensed Consolidated Balance Sheets as of | 3 | |
Condensed Consolidated Statements of Operations (unaudited) for the three and | 4 | |
Condensed Consolidated Statements of Cash Flows (unaudited) for the | 5 | |
Condensed Consolidated Statements of Stockholders' Deficit (unaudited) for the three and | 6 | |
Notes to Condensed Consolidated Financial Statements (unaudited) | 7 | |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | |
Item 4. | Controls and Procedures | |
PART II – OTHER INFORMATION | ||
Item 1. | Legal Proceedings | 15 |
Item 1A. | Risk Factors | 15 |
Item 2. | Unregistered Sales of Equity Security and Use of Proceeds | |
Item 6. | Exhibits | |
Signatures | ||
June 30, | December 31, | September 30, | December 31, | |
2020 | 2019 | 2020 | 2019 | |
ASSETS | (unaudited) | (unaudited) | ||
Current Assets | ||||
Cash and Cash Equivalents | $582,568 | $71,482 | $253,452 | $71,482 |
Restricted Cash and Cash Equivalents | 187,916 | 243,485 | 187,916 | 243,485 |
Accounts Receivable, Net of Allowance for Doubtful Accounts of $5,250 at June 30, 2020 and December 31, 2019 | 308,284 | 109,187 | ||
Accounts Receivable, Net of Allowance for Doubtful Accounts of $30,000 and $5,250, Respectively | 174,228 | 109,187 | ||
Prepaid Expenses and Other Current Assets | 45,235 | 75,489 | 46,359 | 75,489 |
Total Current Assets | 1,124,003 | 499,643 | 661,955 | 499,643 |
Property and Equipment, Net | 22,332 | 29,368 | 19,108 | 29,368 |
Capitalized Software, Net | - | 5,470 | - | 5,470 |
Operating Lease Right-of-Use Asset | 594,250 | 674,338 | 553,566 | 674,338 |
Total Assets | $1,740,585 | $1,208,819 | $1,234,629 | $1,208,819 |
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||
Current Liabilities | ||||
Accounts Payable | $124,975 | $242,249 | $79,535 | $242,249 |
Interest Payable | 281,861 | 1,834,694 | 1,026,647 | 1,834,694 |
Other Liabilities And Accrued Expenses | 250,353 | 263,889 | 322,131 | 263,889 |
Operating Lease Liability Current | 155,607 | 149,525 | 158,740 | 149,525 |
Contract With Customer Liability Current | 842,539 | 1,051,271 | 832,629 | 1,051,271 |
Bank Loan | - | 5,000,000 | - | 5,000,000 |
PPP Loan Current | 241,148 | - | 331,994 | - |
Subordinated Promissory Notes, Related Parties | - | 3,518,250 | - | 3,518,250 |
Convertible Notes Payable, Related Parties, Net of Discount | - | 39,230,432 | - | 39,230,432 |
Convertible Notes Payable, Net of Discount | - | 610,740 | - | 610,740 |
Total Current Liabilities | 1,896,483 | 51,901,050 | 2,751,676 | 51,901,050 |
Operating Lease Liability Noncurrent | 514,640 | 593,994 | ||
Contract with Customer Liability Noncurrent | 47,080 | 28,100 | ||
Operating Lease Liability | 473,761 | 593,994 | ||
Contract with Customer Liability | 18,338 | 28,100 | ||
Bank Loan | 5,000,000 | - | 5,000,000 | - |
PPP Loan | 300,952 | - | 210,106 | - |
Subordinated Promissory Notes, Related Parties | 705,000 | - | 1,065,000 | - |
Convertible Notes Payable, Related Parties, Net of Discounts and Premiums | 45,327,911 | - | 45,127,680 | - |
Convertible Notes Payable, Net of Discount | 934,826 | - | ||
Convertible Notes Payable, Net of Discounts | 1,191,507 | - | ||
Total Liabilities | 54,726,892 | 52,523,144 | 55,838,068 | 52,523,144 |
Commitments and Contingencies (Note 3) | ||||
Stockholders' Deficit | ||||
Preferred Stock, $0.001 Par Value, 5,000,000 Shares Authorized, No Shares Issued and Outstanding at June 30, 2020 and December 31, 2019 | - | |||
Common Stock, $0.001 Par Value, 100,000,000 Shares Authorized At June 30, 2020 and December 31, 2019; 28,389,493 Shares Issued and Outstanding at June 30, 2020 and 28,271,598 Shares Issued and Outstanding at December 31, 2019 | 28,390 | 28,272 | ||
Preferred Stock, $0.001 Par Value, 5,000,000 Shares Authorized, No Shares Issued and Outstanding at September 30, 2020 and December 31, 2019 | - | |||
Common Stock, $0.001 Par Value, 100,000,000 Shares Authorized At September 30, 2020 and December 31, 2019; 28,389,493 Shares Issued and Outstanding at September 30, 2020 and 28,271,598 Shares Issued and Outstanding at December 31, 2019 | 28,390 | 28,272 | ||
Additional Paid-in Capital | 128,126,475 | 118,431,878 | 129,114,381 | 118,431,878 |
Accumulated Deficit | (181,141,172) | (169,774,475) | (183,746,210) | (169,774,475) |
Total Stockholders' Deficit | (52,986,307) | (51,314,325) | (54,603,439) | (51,314,325) |
Total Liabilities and Stockholders' Deficit | $1,740,585 | $1,208,819 | $1,234,629 | $1,208,819 |
3 Months Ended | 6 Months Ended | 3 Months Ended | 9 Months Ended | |||||
June 30, | September 30, | |||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |
REVENUES: | ||||||||
Subscription and Support | $ 491,367 | $ 675,202 | $ 1,010,766 | $ 1,291,319 | $464,809 | $528,145 | $1,475,575 | $1,819,464 |
Services and Other | 116,405 | 118,122 | 221,578 | 242,724 | 46,602 | 118,110 | 268,180 | 360,834 |
Total Revenue | 607,772 | 793,324 | 1,232,344 | 1,534,043 | 511,411 | 646,255 | 1,743,755 | 2,180,298 |
COST OF REVENUES: | ||||||||
Subscription and Support | 181,221 | 236,048 | 346,622 | 429,129 | 196,031 | 153,733 | 542,653 | 582,862 |
Services and Other | - | 66,955 | 93,162 | 105,795 | 3,000 | 120,766 | 96,162 | 226,561 |
Total Cost of Revenue | 181,221 | 303,003 | 439,784 | 534,924 | 199,031 | 274,499 | 638,815 | 809,423 |
GROSS PROFIT | 426,551 | 490,321 | 792,560 | 999,119 | 312,380 | 371,756 | 1,104,940 | 1,370,875 |
OPERATING EXPENSES: | ||||||||
Selling and Marketing | 301,052 | 447,123 | 668,366 | 806,904 | 249,565 | 257,947 | 917,931 | 1,064,851 |
Research and Development | 750,438 | 808,397 | 1,378,233 | 1,308,269 | 719,043 | 747,528 | 2,097,276 | 2,055,797 |
General and Administrative | 824,517 | 989,977 | 1,649,318 | 1,703,638 | 835,775 | 927,315 | 2,485,093 | 2,630,953 |
Total Operating Expenses | 1,876,007 | 2,245,497 | 3,695,917 | 3,818,811 | 1,804,383 | 1,932,790 | 5,500,300 | 5,751,601 |
LOSS FROM OPERATIONS | (1,449,456) | (1,755,176) | (2,903,357) | (2,819,692) | (1,492,003) | (1,561,034) | (4,395,360) | (4,380,726) |
OTHER INCOME (EXPENSE): | ||||||||
Other Income | 5,682 | 5 | 11,686 | 812 | 5,387 | 788 | 17,073 | 1,600 |
Interest Expense, Net | (1,759,173) | (1,167,806) | (3,610,276) | (2,280,590) | (1,118,422) | (1,294,461) | (4,728,698) | (3,575,051) |
Loss on Debt Extinguishment | (4,864,750) | - | (4,864,750) | - | - | (4,864,750) | - | |
Total Other Expense | (6,618,241) | (1,167,801) | (8,463,340) | (2,279,778) | (1,113,035) | (1,293,673) | (9,576,375) | (3,573,451) |
- | - | |||||||
NET LOSS | $ (8,067,697) | $ (2,922,977) | $ (11,366,697) | $ (5,099,470) | $(2,605,038) | $(2,854,707) | $(13,971,735) | $(7,954,177) |
NET LOSS PER COMMON SHARE: | NET LOSS PER COMMON SHARE: | |||||||
Basic and Fully Diluted from Continuing Operations | $ (0.28) | $ (0.10) | $ (0.40) | $ (0.18) | $(0.09) | $(0.10) | $(0.49) | $(0.28) |
WEIGHTED-AVERAGE NUMBER OF SHARES USED IN | WEIGHTED-AVERAGE NUMBER OF SHARES USED IN | |||||||
COMPUTING NET LOSS PER COMMON SHARE: | COMPUTING NET LOSS PER COMMON SHARE: | |||||||
Basic And Fully Diluted | 28,389,493 | 28,271,598 | 28,389,493 | 28,271,598 | 28,389,493 | 28,271,598 | 28,389,493 | 28,271,598 |
6 Months Ended | 9 Months Ended | |||
June 30, | September 30, | |||
2020 | 2019 | 2020 | 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net Loss | $ (11,366,697) | $ (5,099,470) | $(13,971,735) | $(7,954,177) |
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: | ||||
Depreciation and Amortization | 12,506 | 57,841 | 15,730 | 64,936 |
Bad Debt Expense | - | 4,000 | - | 14,000 |
Amortization of Debt Discount | 1,585,823 | 508,745 | 2,417,888 | 855,751 |
Amortization of Debt Premium | (775,615) | - | ||
Share Based Compensation | 1,502,457 | 1,604,456 | 2,290,363 | 2,533,107 |
Loss on Debt Extinguishment | 4,864,750 | - | 4,864,750 | - |
Changes in Assets and Liabilities: | ||||
Accounts Receivable | (199,097) | 27,742 | (65,041) | (134,658) |
Prepaid Expenses and Other Assets | 30,254 | 30,920 | 29,130 | 44,370 |
Accounts Payable | (117,274) | 1,682 | (162,714) | (3,534) |
Contract Liability | (189,752) | (252,735) | (228,404) | (139,385) |
Operating Lease Right-of-use Asset | 80,088 | 94,780.00 | 120,772 | 134,326.00 |
Operating Lease Liability | (73,272) | (67,657.00) | (111,018) | (102,510.00) |
Accrued and Other Expenses | (1,559,991) | 96,164 | (743,427) | (717,978) |
Net Cash Used in Operating Activities | (5,430,205) | (2,993,532) | (6,319,321) | (5,405,752) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Proceeds From Issuance of Subordinated Promissory Notes, Related Party | 1,250,000 | 1,486,250 | 1,610,000 | 2,316,250 |
Proceeds From Issuance of Convertible Notes Payable, Related Party | 1,200,000 | 1,450,000 | 1,400,000 | 3,160,000 |
Proceeds From Issuance of Convertible Notes Payable | 2,900,000 | - | 2,900,000 | - |
Proceeds from PPP Loan | 542,100 | - | 542,100 | - |
Repayments of Financing Lease Obligations | (6,378) | (15,886) | (6,378) | (21,634) |
Net Cash Provided by Financing Activities | 5,885,722 | 2,920,364 | 6,445,722 | 5,454,616 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 455,517 | (73,168) | 126,401 | 48,864 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD | 314,967 | 506,901 | 314,967 | 506,901 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | $ 770,484 | $ 433,733 | $441,368 | $555,765 |
Composition of Cash, Cash Equivalents and Restricted Cash Balance: | ||||
Cash and Cash Equivalents | $ 582,568 | $ 190,643 | $253,452 | $311,789 |
Restricted Cash | 187,916 | 243,090 | 187,916 | 243,976 |
Total Cash, Cash Equivalents and Restricted Cash | $ 770,484 | $ 433,733 | $441,368 | $555,765 |
Supplemental Disclosures of Cash Flow Information: | ||||
Operating Lease Payments | $ 111,550 | $ 82,908 | $127,601 | $126,057 |
Cash Paid During the Period for Interest | $ 3,825,607 | $ 1,653,249 | $3,825,607 | $3,375,856 |
Non-Cash Investing and Financing Activities: | ||||
Operating Lease Right-Of-Use Asset Obtained In Exchange For Lease Obligations | $ - | $ 883,634 | $- | $883,634 |
Recorded Debt Discount Associated with Beneficial Conversion Feature | $ 8,035,278 | $ 375,175 | $8,235,278 | $877,413 |
The Company Converted $156,980 of its Convertible Notes into Common Shares | $ 156,980 | $ - | ||
The Company Converted $156,980 of its Convertible Notes into Common Stock | $156,980 | $- |
Common Stock, Shares | Common Stock, $0.001 Par Value | Additional Paid-In Capital | Accumulated Deficit | Totals | Common Stock, Shares | Common Stock, $0.001 Par Value | Additional Paid-In Capital | Accumulated Deficit | Totals | |
BALANCES, JANUARY 1, 2019 | 28,271,598 | $28,272 | $114,082,897 | $(158,771,112) | $(44,659,943) | 28,271,598 | $28,272 | $114,082,897 | $(158,771,112) | $(44,659,943) |
Equity-Based Compensation | 504,461 | - | 504,461 | 504,461 | 504,461 | |||||
Beneficial Conversion Feature Recorded as a Result Of Issuance Of Convertible Debt | 375,175 | - | 375,175 | 375,175 | 375,175 | |||||
Cumulative Adjustment Related To Adoption Of ASC842 Guidance On Accounting For Leases | - | 2,173 | 2,173 | |||||||
Net Loss | - | (2,176,493) | (2,176,493) | |||||||
BALANCES, MARCH 31, 2019 | 28,271,598 | 28,272 | 114,962,533 | (160,945,432) | (45,954,627) | 28,271,598 | 28,272 | 114,962,533 | (160,945,432) | (45,954,627) |
Equity-Based Compensation | 1,099,995 | - | 1,099,995 | 1,099,995 | 1,099,995 | |||||
Net Loss | - | (2,922,977) | (2,922,977) | |||||||
BALANCES, JUNE 30, 2019 | 28,271,598 | $28,272 | $116,062,528 | $(163,868,409) | $(47,777,609) | 28,271,598 | $28,272 | $116,062,528 | $(163,868,409) | $(47,777,609) |
Equity-Based Compensation | 928,651 | 928,651 | ||||||||
Beneficial Conversion Feature Recorded as a Result Of Issuance Of Convertible Debt | 502,238 | 502,238 | ||||||||
Net Loss | (2,854,707) | |||||||||
BALANCES, SEPTEMBER 30, 2019 | 28,271,598 | $28,272 | $117,493,417 | $(166,723,116) | $(49,201,427) | |||||
BALANCES, JANUARY 1, 2020 | 28,271,598 | $28,272 | $118,431,878 | $(169,774,475) | $(51,314,325) | 28,271,598 | $28,272 | $118,431,878 | $(169,774,475) | $(51,314,325) |
Equity-Based Compensation | 721,681 | - | 721,681 | 721,681 | 721,681 | |||||
Beneficial Conversion Feature Recorded as a Result Of Issuance Of Convertible Debt | 2,000,000 | - | 2,000,000 | 2,000,000 | 2,000,000 | |||||
Conversion of Notes Payable to Common Stock | 48,951 | 49 | 65,191 | - | 65,240 | 48,951 | 49 | 65,191 | 65,240 | |
Net Loss | - | (3,299,000) | (3,299,000) | |||||||
BALANCES, MARCH 31, 2020 | 28,320,549 | 28,321 | 121,218,750 | (173,073,475) | (51,826,404) | 28,320,549 | 28,321 | 121,218,750 | (173,073,475) | (51,826,404) |
Equity-Based Compensation | 780,776 | 780,776 | 780,776 | 780,776 | ||||||
Beneficial Conversion Feature Recorded as a Result Of Issuance Of Convertible Debt | 6,035,278 | 6,035,278 | 6,035,278 | 6,035,278 | ||||||
Conversion of Notes Payable to Common Stock | 68,944 | 69 | 91,671 | 91,740 | 68,944 | 69 | 91,671 | 91,740 | ||
Net Loss | (8,067,697) | (8,067,697) | ||||||||
BALANCES, JUNE 30, 2020 | 28,389,493 | $28,390 | $128,126,475 | $(181,141,172) | $(52,986,307) | 28,389,493 | $28,390 | $128,126,475 | $(181,141,172) | $(52,986,307) |
Equity-Based Compensation | 787,906 | 787,906 | ||||||||
Beneficial Conversion Feature Recorded as a Result Of Issuance Of Convertible Debt | 200,000 | 200,000 | ||||||||
Net Loss | (2,605,038) | |||||||||
BALANCES, SEPTEMBER 30, 2020 | 28,389,493 | $28,390 | $129,114,381 | $(183,746,210) | $(54,603,439) |
Debt Description | June 30, | December 31, | ||
2020 | 2019 | Maturity | Rate | |
Comerica Bank Loan and Security Agreement | $5,000,000 | $5,000,000 | June 2022 | 4.08% |
PPP Loan | 542,100 | - | April 2022 | 1.00% |
Convertible notes - related parties, net of discounts and premiums of $359,570 and $1,193,801, respectively | 45,327,911 | 39,230,432 | November 2022 | 8.00% |
Convertible notes, net of discount of $2,452,353 and $45,029, respectively | 934,826 | 610,740 | November 2022 | 8.00% |
Subordinated Promissory Note, Related Party | 705,000 | 3,518,250 | November 2022 | 8.00% |
Total debt | 52,509,837 | 48,359,422 | ||
Less: current portion of long term debt | 241,148 | - | ||
Debt - long term | $52,268,689 | $48,359,422 |
Debt Description | September 30, | December 31, | ||
2020 | 2019 | Maturity | Rate | |
Comerica Bank Loan and Security Agreement | $5,000,000 | $5,000,000 | June 2022 | 4.08% |
PPP Loan | 542,100 | - | April 2022 | 1.00% |
Convertible notes - related parties, net of discounts and premiums of $759,801 and $1,193,801, respectively | 45,127,680 | 39,230,432 | November 2022 | 8.00% |
Convertible notes, net of discount of $2,195,673 and $45,029, respectively | 1,191,507 | 610,740 | November 2022 | 8.00% |
Subordinated Promissory Note, Related Party | 1,065,000 | 3,518,250 | November 2022 | 8.00% |
Total debt | 52,926,287 | 48,359,422 | ||
Less: current portion of long term debt | 331,994 | - | ||
Debt - long term | $52,594,293 | $48,359,422 |
Convertible Notes Type: | Balance | Balance | ||
2007 NPA notes, net of discount | $20,260,070 | $20,405,588 | $20,261,974 | $20,405,588 |
2014 NPA notes, net of discounts and premiums | 26,002,667 | 19,435,584 | 26,057,213 | 19,435,584 |
Total convertible notes, net of discount | $46,262,737 | $39,841,172 | $46,319,187 | $39,841,172 |
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (years) | Aggregate Intrinsic Value | Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | Aggregate Intrinsic Value | |
Outstanding, December 31, 2019 | $12,345,796 | $1.73 | 8.3 | $13,823,410 | 12,345,796 | $1.73 | 8.3 | $13,823,410 |
Cancelled | (2,770,065) | 1.76 | (2,770,065) | 1.76 | ||||
Issued | 840,000 | 2.73 | 840,000 | 2.73 | ||||
Outstanding, June 30, 2020 | 10,415,731 | 1.80 | 7.9 | $4,352,418 | ||||
Vested and exercisable, June 30, 2020 | $4,346,208 | $1.70 | 6.6 | $2,253,917 | ||||
Outstanding, September 30, 2020 | 10,415,731 | 1.80 | 6.7 | $7,268,822 | ||||
Vested and exercisable, September 30, 2020 | 4,838,681 | $1.72 | 6.0 | $3,783,524 |
6 Months Ended June 30, 2020 | 6 Months Ended June 30, 2019 | 9 Months Ended September 30, 2020 | 9 Months Ended September 30, 2019 | |||||
Billings | GAAP Revenue | Billings | GAAP Revenue | Billings | GAAP Revenue | Billings | GAAP Revenue | |
Top 5 customers (measured by amounts billed) | $433,010 | $455,541 | $595,720 | $516,258 | $527,160 | $611,026 | $1,002,040 | $596,210 |
All other Customers | 615,259 | 767,676 | 693,337 | 1,017,785 | 993,869 | 1,132,729 | 1,045,873 | 1,584,088 |
$1,048,269 | $1,223,217 | $1,289,057 | $1,534,043 | $1,521,029 | $1,743,755 | $2,047,913 | $2,180,298 |
6 Months Ended June 30, 2020 | 6 Months Ended June 30, 2019 | 9 Months Ended September 30, 2020 | 9 Months Ended September 30, 2019 | |||||
Billings | GAAP Revenue | Billings | GAAP Revenue | Billings | GAAP Revenue | Billings | GAAP Revenue | |
Customers in existence as of the beginning of the period (including upgrades) | $1,036,182 | $1,223,217 | $1,096,682 | $1,534,043 | $1,387,693 | $1,711,012 | $1,476,663 | $2,175,245 |
Customers acquired during the period | 12,087 | - | 192,375 | - | 133,336 | 32,743 | 571,250 | 5,053 |
$1,048,269 | $1,223,217 | $1,289,057 | $1,534,043 | $1,521,029 | $1,743,755 | $2,047,913 | $2,180,298 |
Operating lease expense | $ |
Weighted Average Remaining Lease Term (Years) | 5 years |
Weighted Average Discount Rate | 8% |
Operating Lease Expense | Variable Lease Expense | Total Lease Expense | Operating Lease Expense | Variable Lease Expense | Total Lease Expense | |
2020 | 95,183 | 6,618 | 101,801 | |||
2020 (remaining 3 months) | 47,590 | 3,310 | 50,900 | |||
2021 | 189,994 | 13,609 | 203,603 | 189,994 | 13,609 | 203,603 |
2022 | 189,615 | 13,988 | 203,603 | 189,615 | 13,988 | 203,603 |
2023 | 189,225 | 14,378 | 203,603 | 189,225 | 14,378 | 203,603 |
2024 | 63,074 | 4,793 | 67,867 | 63,074 | 4,793 | 67,867 |
Total lease payments | $727,091 | $53,386 | 780,477 | $679,498 | $50,078 | 729,576 |
Less imputed interest | (110,230) | (97,075) | ||||
Total | $670,247 | $632,501 |
Three Months ended June 30, 2020 | Three months ended June 30, 2019 | Increase (Decrease) $ | Increase (Decrease)% | |
Revenue | $607,772 | $793,324 | $(185,552) | -23% |
Cost of Revenue | 181,221 | 303,003 | (121,782) | -40% |
Gross Profit | 426,551 | 490,321 | (63,770) | -13% |
Selling and Marketing | 301,052 | 447,123 | (146,071) | -33% |
Research and Development | 750,438 | 808,397 | (57,959) | -7% |
General and Administrative | 824,517 | 989,977 | (165,460) | -17% |
Interest Expense | 1,759,173 | 1,167,806 | 591,367 | 51% |
Loss on Debt Extinguishment | $4,864,750 | $- | $4,864,750 |
Three Months ended September 30, 2020 | Three Months ended September 30, 2019 | Increase (Decrease) $ | Increase (Decrease) % | |
Revenue | $511,411 | $646,255 | $(134,844) | -21% |
Cost of Revenue | 199,031 | 274,499 | (75,468) | -27% |
Gross Profit | 312,380 | 371,756 | (59,376) | -16% |
Selling and Marketing | 249,565 | 257,947 | (8,382) | -3% |
Research and Development | 719,043 | 747,528 | (28,485) | -4% |
General and Administrative | 835,775 | 927,315 | (91,540) | -10% |
Interest Expense | 1,118,422 | 1,294,461 | (176,039) | -14% |
Six months ended June 30, 2020 | Six months ended June 30, 2019 | Increase (Decrease) $ | Increase (Decrease)% | Nine months ended September 30, 2020 | Nine months ended September 30, 2019 | Increase (Decrease) $ | Increase (Decrease) % | |
Revenue | $1,232,344 | $1,534,043 | $(301,699) | -20% | $1,743,755 | $2,180,298 | $(436,543) | -20% |
Cost of Revenue | 439,784 | 534,924 | (95,140) | -18% | 638,815 | 809,423 | (170,608) | -21% |
Gross Profit | 792,560 | 999,119 | (206,559) | -21% | 1,104,940 | 1,370,875 | (265,935) | -19% |
Sales and Marketing | 668,366 | 806,904 | (138,538) | -17% | ||||
Selling and Marketing | 917,931 | 1,064,851 | (146,920) | -14% | ||||
Research and Development | 1,378,233 | 1,308,269 | 69,964 | 5% | 2,097,276 | 2,055,797 | 41,479 | 2% |
General and Administrative | 1,649,318 | 1,703,638 | (54,320) | -3% | 2,485,093 | 2,630,953 | (145,860) | -6% |
Interest Expense | 3,610,276 | 2,280,590 | 1,329,686 | 58% | 4,728,698 | 3,575,051 | 1,153,647 | 32% |
Loss on Debt Extinguishment | $4,864,750 | $- | $4,864,750 | 4,864,750 | - | 4,864,750 |
Exhibit No. | Description |
31.1 | Certification of Principal Executive Officer Pursuant to Rule 13a-14(a) (Filed herewith) |
31.2 | Certification of Principal Financial and Accounting Officer Pursuant to Rule 13a-14(a) (Filed herewith) |
32.1 | Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350 (Furnished herewith) |
32.2 | Certification of Principal Financial and Accounting Officer Pursuant to 18 U.S.C. Section 1350 (Furnished herewith) |
101.1 | The following materials from the Company’s Quarterly Report on Form 10-Q for the period ended |
MOBILESMITH, INC. | |||
By: | /s/ Jerry Lepore | ||
Jerry Lepore | |||
Chief Executive Officer (Principal Executive Officer) |
By: | /s/ Gleb Mikhailov | ||
Gleb Mikhailov | |||
Chief Financial Officer (Principal Financial and Accounting Officer) | |