Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 05, 2015 | |
Entity Registrant Name | TOWERSTREAM CORP | |
Entity Central Index Key | 1,349,437 | |
Trading Symbol | twer | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 66,777,529 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 20,308,551 | $ 38,027,509 |
Accounts receivable, net | 959,057 | 1,310,647 |
Prepaid expenses and other current assets | 1,169,648 | 926,699 |
Total Current Assets | 22,437,256 | 40,264,855 |
Property and equipment, net | 30,040,784 | 33,905,286 |
Intangible assets, net | 1,905,654 | 2,199,858 |
Goodwill | 1,674,281 | 1,674,281 |
Other assets | 3,200,142 | 4,277,558 |
Total Assets | 59,258,117 | 82,321,838 |
Current Liabilities | ||
Accounts payable | 1,005,813 | 871,251 |
Accrued expenses | 2,470,314 | 2,038,696 |
Deferred revenues | 1,233,981 | 1,384,846 |
Current | 998,986 | 845,668 |
Other | 63,040 | 57,242 |
Total Current Liabilities | 5,772,134 | 5,197,703 |
Long-Term Liabilities | ||
Long-term debt, net of debt discount of $2,316,486 and $3,194,147, respectively | 34,060,563 | 32,101,409 |
Long-term | 1,183,172 | 1,285,858 |
Other | 1,916,694 | 1,774,841 |
Total Long-Term Liabilities | 37,160,429 | 35,162,108 |
Total Liabilities | $ 42,932,563 | $ 40,359,811 |
Commitments (Note 12) | ||
Stockholders' Equity | ||
Preferred stock, par value $0.001; 5,000,000 shares authorized; none issued | ||
Common stock, par value $0.001; 200,000,000 and 95,000,000 shares authorized, respectively; 66,777,529 and 66,656,789 shares issued and outstanding, respectively | $ 66,778 | $ 66,657 |
Additional paid-in-capital | 158,278,008 | 157,631,299 |
Accumulated deficit | (142,019,232) | (115,735,929) |
Total Stockholders' Equity | 16,325,554 | 41,962,027 |
Total Liabilities and Stockholders' Equity | $ 59,258,117 | $ 82,321,838 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Debt discount | $ 2,316,486 | $ 3,194,147 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 200,000,000 | 95,000,000 |
Common stock, shares issued (in shares) | 66,777,529 | 66,656,789 |
Common stock, shares oustanding (in shares) | 66,777,529 | 66,656,789 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues | $ 7,797,291 | $ 8,301,604 | $ 23,614,519 | $ 24,946,358 |
Operating Expenses | ||||
Cost of revenues (exclusive of depreciation) | 6,186,834 | 6,210,920 | 18,906,738 | 18,168,776 |
Depreciation and amortization | 3,435,635 | 3,318,395 | 10,224,131 | 10,294,872 |
Customer support services | 1,310,794 | 1,247,791 | 3,884,506 | 3,574,461 |
Sales and marketing | 1,513,650 | 1,353,015 | 4,390,560 | 4,173,703 |
General and administrative | 2,194,122 | 2,381,586 | 7,491,513 | 7,726,523 |
Total Operating Expenses | 14,641,035 | 14,511,707 | 44,897,448 | 43,938,335 |
Operating Loss | (6,843,744) | (6,210,103) | (21,282,929) | (18,991,977) |
Other Expense | ||||
Interest expense, net | (1,665,682) | (43,970) | (5,000,374) | (166,509) |
Total Other Expense | (1,665,682) | (43,970) | (5,000,374) | (166,509) |
Net Loss | $ (8,509,426) | $ (6,254,073) | $ (26,283,303) | $ (19,158,486) |
Net loss per common share – basic and diluted (in dollars per share) | $ (0.13) | $ (0.09) | $ (0.39) | $ (0.29) |
Weighted average common shares outstanding – basic and diluted (in shares) | 67,966,261 | 66,643,804 | 67,916,211 | 66,521,267 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - 9 months ended Sep. 30, 2015 - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Dec. 31, 2014 | 66,656,789 | |||
Balance at Dec. 31, 2014 | $ 66,657 | $ 157,631,299 | $ (115,735,929) | $ 41,962,027 |
Cashless exercise of options (in shares) | 96,594 | 426,530 | ||
Cashless exercise of options | $ 97 | (97) | ||
Issuance of common stock under employee stock purchase plan (in shares) | 24,146 | |||
Issuance of common stock under employee stock purchase plan | $ 24 | 37,337 | $ 37,361 | |
Stock-based compensation for options | $ 609,469 | 609,469 | ||
Net loss | $ (26,283,303) | (26,283,303) | ||
Balance (in shares) at Sep. 30, 2015 | 66,777,529 | |||
Balance at Sep. 30, 2015 | $ 66,778 | $ 158,278,008 | $ (142,019,232) | $ 16,325,554 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash Flows From Operating Activities | ||
Net loss | $ (26,283,303) | $ (19,158,486) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Provision for doubtful accounts | 132,000 | 192,000 |
Depreciation for property, plant and equipment | 9,929,927 | 9,503,971 |
Amortization for customer based intangibles | 294,204 | $ 790,901 |
Amortization of debt issuance costs | 722,902 | |
Amortization of debt discount | 877,661 | |
Accrued interest | 1,081,493 | |
Stock-based compensation | 615,052 | $ 740,405 |
Deferred rent | 145,336 | 271,455 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 219,591 | (627,188) |
Prepaid expenses and other current assets | (242,950) | (506,133) |
Other assets | 353,451 | 213,407 |
Accounts payable | 134,562 | (637,806) |
Accrued expenses | 528,402 | 177,214 |
Deferred revenues | (150,865) | (133,324) |
Total Adjustments | 14,640,766 | 9,984,902 |
Net Cash Used In Operating Activities | (11,642,537) | (9,173,584) |
Cash Flows From Investing Activities | ||
Acquisitions of property and equipment | (5,352,183) | (6,848,919) |
Lease incentive payment from landlord | 10,626 | 380,000 |
Decrease (increase) of security deposits | 2,911 | (13,672) |
Deferred acquisition payments | (8,310) | (64,574) |
Net Cash Used In Investing Activities | (5,346,956) | (6,547,165) |
Cash Flows From Financing Activities | ||
Payments on capital leases | (761,243) | (596,649) |
Proceeds from the issuance of common stock under employee stock purchase plan | $ 31,778 | 30,430 |
Fair value of options repurchased | (3,793) | |
Net Cash Used In Financing Activities | $ (729,465) | (570,012) |
Net Decrease In Cash and Cash Equivalents | (17,718,958) | (16,290,761) |
Cash and Cash Equivalents – Beginning | 38,027,509 | 28,181,531 |
Cash and Cash Equivalents – Ending | 20,308,551 | 11,890,770 |
Supplemental Disclosures of Cash Flow Information | ||
Interest | 2,361,323 | 187,653 |
Taxes | 22,400 | 23,229 |
Under capital leases | 810,026 | 33,204 |
Included in accrued expenses | $ 427,496 | $ 386,448 |
Note 1 - Organization and Natur
Note 1 - Organization and Nature of Business | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | Note 1. Organization and Nature of Business Towerstream Corporation (referred to as “Towerstream” or the “Company”) was incorporated in Delaware in December 1999. During its first decade of operations, the Company's business activities were focused on delivering fixed wireless broadband services to commercial customers over a wireless network transmitting over both regulated and unregulated radio spectrum. The Company's fixed wireless service supports bandwidth on demand, wireless redundancy, virtual private networks, disaster recovery, bundled data and video services. The Company provides services to business customers in New York City, Boston, Chicago, Los Angeles, San Francisco, Seattle, Miami, Dallas-Fort Worth, Houston, Philadelphia, Las Vegas-Reno and Providence-Newport. The Company's “Fixed Wireless business” has historically grown both organically and through the acquisition of five other fixed wireless broadband providers in various markets. In January 2013, the Company incorporated a wholly-owned subsidiary, Hetnets Tower Corporation (“Hetnets”). Hetnets was formed to operate a new shared wireless infrastructure platform that emerged from the Company's efforts to identify opportunities to leverage its fixed wireless network in urban markets to provide other wireless technology solutions and services. Hetnets operates a carrier-class network which has been constructed on "street level rooftops" which are closer to the ground (where Wi-Fi and small cell can operate with less interference from the macro cell) than the Company's traditional fixed wireless network. The Company believes that the wireless communications industry is experiencing a fundamental shift from its traditional macro-cellular architecture to densified small cell architecture where existing cell sites will be supplemented by many smaller base stations operating near street level. Hetnets is structured to operate like a tower company and expects to generate rental income from four separate sources including (i) rental of space on street level rooftops for the installation of customer owned small cells which includes Wi-Fi antennae, Distributed Antenna System (“DAS”), and Metro and Pico cells, (ii) rental of a channel on Hetnets’ Wi-Fi network for Internet access and the offloading of mobile data, (iii) rental of a port for backhaul or transport, and (iv) power and other related services. The Company refers to the activities of Hetnets as its “Shared Wireless Infrastructure” (or “Shared Wireless”) business. At September 30, 2015, the Company had cash and cash equivalents of approximately $20.3 million and working capital of approximately $16.7 million. Based on (i) current projections for revenues for its two business segments, (ii) operating costs to support those business segments including the effect of cost reduction measures that are being implemented, and (iii) capital expenditures to support the network infrastructure, the Company believes that its current cash balances are sufficient to maintain operations and fulfill working capital requirements for the next twelve months from the date of filing this quarterly report. The Company has historically financed operations through private and public placement of equity securities, as well as debt financings and capital leases. The Company's ability to fund its longer term cash requirements is subject to multiple risks, many of which are beyond its control. Should additional funding be required, the Company may need to raise additional capital through the sale of equity or debt securities. There can be no assurances that the Company would be successful in raising additional capital. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | Note 2. Summary of Significant Accounting Policies Basis of Presentation. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The Company’s accounting policies are described in the Notes to Consolidated Financial Statements in its Annual Report on Form 10-K for the year ended December 31, 2014, and updated, as necessary, in this Quarterly Report on Form 10-Q. Use of Estimates. Concentration of Credit Risk . Accounts Receivable Three Months Ended September 30, Nine Months Ended September 30, 201 5 201 4 201 5 201 4 Beginning of period $ 117,748 $ 161,863 $ 59,273 $ 81,009 Additions 32,000 75,000 132,000 192,000 Deductions (43,762 ) (30,995 ) (85,287 ) (67,141 ) End of period $ 105,986 $ 205,868 $ 105,986 $ 205,868 Revenue Recognition. Deferred Revenues. Intrinsic Value of Stock Options and Warrants Recent Accounting Pronouncements. The Company is currently evaluating the effect that ASU 2015-03 will have on its condensed consolidated financial statements and related disclosures. Reclassifications. Subsequent Events |
Note 3 - Property and Equipment
Note 3 - Property and Equipment | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | Note 3. Property and Equipment Property and equipment is comprised of: September 30, 2015 December 31, 2014 Network and base station equipment $ 38,731,362 $ 35,836,469 Customer premise equipment 29,616,923 26,511,691 Shared wireless infrastructure 20,899,869 21,044,189 Information technology 4,770,115 4,628,555 Furniture, fixtures and other 1,713,722 1,669,340 Leasehold improvements 1,623,071 1,599,393 97,355,062 91,289,637 Less: accumulated depreciation 67,314,278 57,384,351 Property and equipment, net $ 30,040,784 $ 33,905,286 Property acquired through capital leases included within the Company’s property and equipment consists of the following: September 30 , 201 5 December 31, 201 4 Network and base station equipment $ 1,390,593 $ 1,003,875 Shared wireless infrastructure 1,230,305 1,230,305 Customer premise equipment 669,792 246,484 Information technology 1,860,028 1,860,028 5,150,718 4,340,692 Less: accumulated depreciation 2,857,432 2,135,534 Property acquired through capital leases, net $ 2,293,286 $ 2,205,158 Depreciation expense for the three months ended September 30, 2015 and 2014 was $3,337,567 and $3,220,327, respectively. Depreciation expense for the nine months ended September 30, 2015 and 2014 was $9,929,927 and $9,503,971, respectively. |
Note 4 - Intangible Assets
Note 4 - Intangible Assets | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | Note 4. Intangible Assets Intangible assets consist of the following: September 30, 2015 December 31, 2014 Goodwill $ 1,674,281 $ 1,674,281 Customer relationships $ 11,856,127 $ 11,856,127 Less: accumulated amortization of customer relationships 11,235,028 10,940,824 Customer relationships, net 621,099 915,303 FCC licenses 1,284,555 1,284,555 Intangible assets, net $ 1,905,654 $ 2,199,858 Amortization expense for the three months ended September 30, 2015 and 2014 was $98,068 and $98,068, respectively. Amortization expense for the nine months ended September 30, 2015 and 2014 was $294,204 and $790,901, respectively. The customer contracts acquired in the Delos acquisition are being amortized over a 50 month period ending April 2017. As of September 30, 2015, the remaining amortization period for the Delos acquisition was 19 months. Balances related to the Company’s other acquisitions have been fully amortized. Future amortization expense is as follows: Remainder of 2015 $ 98,068 2016 392,272 2017 130,759 $ 621,099 The Company’s licenses with the Federal Communications Commission (the “FCC”) are not subject to amortization as they have an indefinite useful life. |
Note 5 - Accrued Expenses
Note 5 - Accrued Expenses | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Accrued Liabilities Disclosure [Text Block] | Note 5. Accrued Expenses Accrued expenses consist of the following: September 30, 2015 December 31, 2014 Payroll and related $ 946,445 $ 726,917 Property and equipment 427,496 524,280 Professional services 409,554 256,534 Network 316,258 187,440 Other 289,811 280,413 Marketing 80,750 63,112 Total $ 2,470,314 $ 2,038,696 Network represents costs incurred to provide services to the Company’s customers including tower rentals, bandwidth, troubleshooting and gear removal. |
Note 6 - Other Liabilities
Note 6 - Other Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Other Liabilities Disclosure [Text Block] | Note 6. Other Liabilities Other liabilities consist of the following: September 30, 2015 December 31, 2014 Current Deferred rent $ 59,825 $ 46,058 Deferred acquisition payments 3,215 11,184 Total $ 63,040 $ 57,242 Long-Term Deferred rent $ 1,515,357 $ 1,373,163 Deferred acquisition payments - 341 Deferred taxes 401,337 401,337 Total $ 1,916,694 $ 1,774,841 Deferred acquisition payments related to Delos Internet totaled $3,215 at September 30, 2015 and bear interest at a rate of 7%. |
Note 7 - Long-Term Debt
Note 7 - Long-Term Debt | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 7. Long-Term Debt In October 2014, the Company entered into a loan agreement (the "Loan Agreement") with Melody Business Finance, LLC (the "Lender") which provided the Company with a five-year $35 million term loan (the "Financing" or "Note"). The Note was issued at a 3% discount totaling $1,050,000 which is being amortized over the term of the Note. The Company recognized interest expense of $83,076 and $262,307 in connection with the amortization of this discount for the three and nine months ended September 30, 2015, respectively, and the unamortized balance totaled $692,328 at September 30, 2015. The Note bears interest payable in cash at a rate equal to the greater of (i) the sum of the one month Libor rate on each payment date plus 7% or (ii) 8% per annum, and additional paid in kind (“PIK”), or deferred, interest that accrues at 4% per annum. The Company paid $736,183 of interest and accrued $368,092 of PIK interest for the three months ended September 30, 2015. The Company paid $2,162,986 of interest and accrued $1,081,493 of PIK interest for the nine months ended September 30, 2015. PIK interest is included in Interest expense in the accompanying condensed consolidated statements of operations. As of September 30, 2015, the Company was in compliance with all of the debt covenants. In connection with the Loan Agreement and pursuant to a Warrant and Registration Rights Agreement, the Company issued warrants (the “Warrants”) to purchase 3,600,000 shares of common stock of which two-thirds have an exercise price of $1.26 and one-third have an exercise price of $0.01, subject to customary adjustments under certain circumstances. The Warrants have a term of seven and a half years. The fair value of the warrants granted to the Lender of $2,463,231 was calculated using the Black-Scholes option pricing model and recorded as a debt discount. The debt discount is being amortized over the term of the Note using the effective interest rate. The Company recognized interest expense of $194,890 and $615,355 in connection with the amortization of this discount for the three and nine months ended September 30, 2015, respectively, and the unamortized balance totaled $1,624,157 at September 30, 2015. The Company incurred costs, primarily professional services, of approximately $2,900,000 related to the Loan Agreement. These costs were recorded as other assets in the Company’s consolidated balance sheet and are being amortized over the term of the Loan Agreement using the effective interest rate. Amortization expense totaled $228,952 and $722,902 for the three and nine months ended September 30, 2015, respectively, and the unamortized balance totaled $1,908,017 at September 30, 2015. |
Note 8 - Stock Options and Warr
Note 8 - Stock Options and Warrants | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 8. Stock Options and Warrants Stock Options The Company uses the Black-Scholes option pricing model to value options issued to employees, directors and consultants. Compensation expense, including on the date of grant the effect of forfeitures, is recognized over the period of service, generally the vesting period. Stock compensation expense and the weighted average assumptions used to calculate the fair values of stock options granted during the periods indicated were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Risk-free interest rate 1.5 % - 1.6 % 1.7 % - 1.8 % 1.5 % - 1.6 % 1.6 % - 1.8 % Expected volatility 57.8 % - 59.3 % 59 % 57.8 % - 59.3 % 47 % - 59 % Expected life (in years) 4.2 5.3 4.2 5.3 Expected dividend yield - - - - Weighted average per share grant date fair value $ 0.63 $ 0.75 $ 0.71 $ 0.80 Stock-based compensation $ 191,170 $ 183,844 $ 609,469 $ 735,076 TOWERSTREAM CORPORATION AND SUBSIDIARIES NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED The risk-free interest rate was based on rates established by the Federal Reserve. The Company’s expected volatility was based upon the historical volatility for its common stock. Beginning in the fourth quarter of 2014, the Company began utilizing historical data to determine the expected life of stock options. Prior to that date, the Company utilized the simplified method as there was limited historical data then available. The dividend yield is based upon the fact that the Company has not historically paid dividends, and does not expect to pay dividends in the foreseeable future. Stock-based compensation is included in general and administrative expenses in the accompanying condensed consolidated statements of operations. The unamortized amount of stock options expense totaled $1,012 ,437 as of September 30, 2015 which will be recognized over a weighted-average period of 1.0 years. Option transactions under the stock option plans during the nine months ended September 30, 2015 were as follows: Number Weighted Average Exercise Price Outstanding as of January 1, 2015 3,997,695 $ 2.73 Granted during 2015 828,750 $ 1.52 Exercised (426,530 ) $ 1.58 Cancelled /expired (74,124 ) $ 1.72 Outstanding as of September 30, 2015 4,325,791 $ 2.63 Exercisable as of September 30, 2015 2,711,299 $ 2.99 In June 2015, the Company made its annual grant to the Board of Directors consisting of 200,000 options with an exercise price of $2.07 vesting monthly through May 2016. In July 2015, the Company granted to its two executive officers a total of 81 ,250 options with an exercise price of $1.55 vesting quarterly over one year period. In September 2015, the Company granted to its employees and two executive officers a total of 547 ,500 options with an exercise price of $1.31. 50% of the options vest on the one year anniversary date with the remaining 50% vesting quarterly over the following 12 months. Employees with 1,000 share grants vest 100% on the one year anniversary. A total of 426,530 options were exercised on a cashless basis during the nine months ended September 30, 2015 resulting in the net issuance of 96,594 shares. Cancellations for the three and nine months ended September 30, 2015 were 15 ,000 and 74,124, respectively. Cancellations principally related to employee terminations except for 27,500 options which expired during the nine months ended September 30, 2015 under its terms. The weighted average remaining contractual life of the outstanding options as of September 30, 2015 was 7 years. The aggregate intrinsic value associated with the options outstanding and exercisable as of September 30, 2015 was $8,950 and $8,950, respectively. The closing price of the Company’s common stock at September 30, 2015 was $1.07 per share . Stock Warrants There were 4,050,000 warrants outstanding and exercisable at September 30, 2015 with a weighted average exercise price of $1.31 per share. The weighted average remaining contractual life of the warrants was 6 years. During the nine months ended September 30, 2015, no stock warrants were issued, exercised, expired or cancelled. The aggregate intrinsic value associated with the warrants outstanding and exercisable as of September 30, 2015 was $1,272,000. Cashless Exercises The number of shares issuable upon the exercise of an option or a warrant will be lower if a holder exercises on a cashless basis. Under a cashless exercise, the holder uses a portion of the shares that would otherwise be issuable upon exercise, rather than cash, as consideration for the exercise. The amount of net shares issuable in connection with a cashless exercise will vary based on the exercise price of the option or warrant compared to the market price of the Company’s common stock on the date of exercise. |
Note 9 - Employee Stock Purchas
Note 9 - Employee Stock Purchase Plan | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Employee Stock Purchase Plan Disclosure [Text Block] | Note 9. Employee Stock Purchase Plan Under the Company’s 2010 Employee Stock Purchase Plan (“ESPP Plan”), participants can purchase shares of the Company’s stock at a 15% discount. A maximum of 200,000 shares of common stock can be issued under the ESPP Plan of which 135,726 shares have been issued to date and 64,274 shares are available for future issuance. During the three and nine months ended September 30, 2015, a total of 11,268 and 24,146 shares were issued under the ESPP Plan with a fair value of $12,057 and $37,361, respectively. The Company recognized $1,803 and $5,583 of stock-based compensation related to the 15% discount for the three and nine months ended September 30, 2015, respectively. The Company recognized $1,529 and $5,329 of stock-based compensation related to the 15% discount for the three and nine months ended September 30, 2014, respectively. |
Note 10 - Fair Value Measuremen
Note 10 - Fair Value Measurement | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 10. Fair Value Measurement Valuation Hierarchy The accounting standard of the FASB for fair value measurements establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. Cash and cash equivalents are measured at fair value using quoted market prices and are classified within Level 1 of the valuation hierarchy. The carrying amounts of accounts receivable, accounts payable and accrued liabilities approximate their fair value due to their short maturities. There were no changes in the valuation techniques during the nine months ended September 30, 2015. Total Carrying Value Quoted prices in active markets Significant Significant September 30, 2015 $ 20,308,551 $ 20,308,551 $ - $ - December 31, 2014 $ 38,027,509 $ 38,027,509 $ - $ - |
Note 11 - Net Loss Per Common S
Note 11 - Net Loss Per Common Share | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 11. Net Loss Per Common Share Basic and diluted net loss per share has been calculated by dividing net loss by the weighted average number of common shares outstanding during the period and the inclusion of 1,200,000 warrants to purchase shares of common stock at an exercise price of $0.01. For the three and nine months ended September 30, 2015 and 2014, the following common stock equivalents were excluded from the computation of diluted net loss per common share because they were anti-dilutive. The exercise or issuance of these common stock equivalents outstanding at September 30, 2015 would dilute earnings per share if the Company becomes profitable in the future. The exercise of those stock options and warrants outstanding at September 30, 2015 could potentially generate proceeds up to approximately $17 million if exercised by the holder for cash. Three and Nine Months Ended September 30, 201 5 201 4 Stock options 4,325,791 3,901,314 Warrants 2,850,000 450,000 Total 7,175,791 4,351,314 |
Note 12 - Commitments
Note 12 - Commitments | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Commitments Disclosure [Text Block] | Note 12. Commitments Operating Lease Obligations The Company has entered into operating leases related to roof rights, cellular towers, office space, and equipment leases under various non-cancelable agreements expiring through April 2025. Certain of these operating leases include extensions, at the Company's option, for additional terms ranging from 1 to 25 years. Amounts associated with the extension periods have not been included in the table below as it is not presently determinable which options, if any, the Company will elect to exercise. As of September 30, 2015, total future operating lease obligations were as follows: Remainder of 2015 $ 5,268,066 2016 19,388,526 2017 14,114,624 2018 6,832,370 2019 3,314,230 Thereafter 1,284,645 $ 50,202,461 Rent expenses were as follows: Three Months Ended September 30, Nine Months Ended September 30, 201 5 201 4 201 5 201 4 Points of Presence $ 2,079,322 $ 1,939,574 $ 6,174,386 $ 5,732,922 Street level rooftops 3,240,996 3,359,804 10,099,784 9,752,720 Corporate offices 96,558 84,109 285,419 252,328 Other 113,171 88,211 302,111 273,928 $ 5,530,047 $ 5,471,698 $ 16,861,700 $ 16,011,898 Rent expenses related to Points of Presence, street level rooftops and other were included in cost of revenues in the Company’s condensed consolidated statements of operations. Rent expense related to our corporate offices was included in general and administrative expenses in the Company’s condensed consolidated statements of operations. In September 2013, the Company entered into a new lease agreement for its corporate offices and new warehouse space. The lease commenced on January 1, 2014 and expires on December 31, 2019 with an option to renew for an additional five year term through December 31, 2024. The Company spent approximately $600,000 in leasehold improvements in connection with consolidating its corporate based employees from two buildings into one building. The Landlord agreed to contribute $380,000 in funding towards qualified leasehold improvements and made such payment to the Company in February 2014. Total annual rent payments began at $359,750 for 2014 and escalate by 3% annually reaching $416,970 for 2019. In December 2014, the Company entered into a new lease agreement in Florida, primarily for a second sales center. The lease commenced in February 2015 for 38 months with an option to renew for an additional 60 month period. Total annual rent payments begin at $53,130 and escalate by 3% annually. Capital Lease Obligations The Company has entered into capital leases to acquire property and equipment expiring through June 2018. As of September 30, 2015, total future capital lease obligations were as follows: Remainder of 2015 $ 315,910 2016 1,110,428 2017 837,811 2018 143,796 $ 2,407,945 Less: interest expense 225,787 Total capital lease obligations $ 2,182,158 Current $ 998,986 Long-term $ 1,183,172 Other Under the terms of a one year information technology support agreement, the Company is making quarterly payments of approximately $68,000 through the first quarter of 2016. |
Note 13 - Segment Information
Note 13 - Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | Note 13. Segment Information The Company has two reportable segments: Fixed Wireless and Shared Wireless Infrastructure. Management evaluates performance and allocates resources based on the operating performance of each segment as well as the long-term growth potential for each segment. Costs reported for each segment include costs directly associated with a segment’s operations. Intersegment revenues and expenses are eliminated in consolidation. The balance of the Company’s operations is in the Corporate group which includes centralized operations. This group includes operations related to corporate overhead and centralized activities which support our overall operations. Corporate overhead includes administrative personnel, including executive management, and other support functions such as information technology and facilities. Centralized operations include network operations, customer care, and the management of network assets. The Corporate group is treated as a separate segment consistent with how management monitors and analyzes financial results. Corporate costs are not allocated to the segments because such costs are managed and controlled on a functional basis that encompasses all markets, with centralized, functional management held accountable for corporate results. Management also believes that not allocating these centralized costs provides a better reflection of the direct operating performance of each segment. The table below presents information about our operating segments: Three Months Ended September 30 , 201 5 (Unaudited) Fixed Wireless Shared Wireless Infrastructure Corporate Eliminations Total Revenues $ 6,995,168 $ 849,824 $ - $ (47,701 ) $ 7,797,291 Operating Expenses Cost of revenues (exclusive of depreciation) 2,734,708 3,483,763 16,064 (47,701 ) 6,186,834 Depreciation and amortization 2,214,143 1,005,185 216,307 - 3,435,635 Customer support services 379,168 179,660 751,966 - 1,310,794 Sales and marketing 1,400,507 35,793 77,350 - 1,513,650 General and administrative 110,137 99,356 1,984,629 - 2,194,122 Total Operating Expenses 6,838,663 4,803,757 3,046,316 (47,701 ) 14,641,035 Operating Income (Loss) $ 156,505 $ (3,953,933 ) $ (3,046,316 ) $ - $ (6,843,744 ) Capital expenditures $ 1,778,844 $ 46,058 $ 31,390 $ - $ 1,856,292 Three Months Ended September 30, 2014 (Unaudited) Fixed Wireless Shared Wireless Infrastructure Corporate Eliminations Total Revenues $ 7,553,609 $ 793,964 $ - $ (45,969 ) $ 8,301,604 Operating Expenses Cost of revenues (exclusive of depreciation) 2,631,572 3,609,807 15,510 (45,969 ) 6,210,920 Depreciation and amortization 1,980,519 1,013,693 324,183 - 3,318,395 Customer support services 345,918 147,379 754,494 - 1,247,791 Sales and marketing 1,239,446 38,261 75,308 - 1,353,015 General and administrative 63,686 163,125 2,154,775 - 2,381,586 Total Operating Expenses 6,261,141 4,972,265 3,324,270 (45,969 ) 14,511,707 Operating Income (Loss) $ 1,292,468 $ (4,178,301 ) $ (3,324,270 ) $ - $ (6,210,103 ) Capital expenditures $ 1,154,281 $ 589,883 $ 21,603 $ - $ 1,765,767 TOWERSTREAM CORPORATION AND SUBSIDIARIES NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - CONTINUED Nine Months Ended September 30 , 201 5 (Unaudited) Fixed Wireless Shared Wireless Infrastructure Corporate Eliminations Total Revenues $ 21,293,373 $ 2,463,678 $ - $ (142,532 ) $ 23,614,519 Operating Expenses Cost of revenues (exclusive of depreciation) 8,140,524 10,862,526 46,220 (142,532 ) 18,906,738 Depreciation and amortization 6,516,596 3,052,554 654,981 - 10,224,131 Customer support services 1,066,175 536,021 2,282,310 - 3,884,506 Sales and marketing 4,038,582 122,704 229,274 - 4,390,560 General and administrative 411,031 302,889 6,777,593 - 7,491,513 Total Operating Expenses 20,172,908 14,876,694 9,990,378 (142,532 ) 44,897,448 Operating Income (Loss) $ 1,120,465 $ (12,413,016 ) $ (9,990,378 ) $ - $ (21,282,929 ) Capital expenditures $ 5,635,054 $ 220,751 $ 209,620 $ - $ 6,065,425 As of September 30, 2015 Property and equipment, net $ 20,813,961 $ 7,561,436 $ 1,665,387 $ - $ 30,040,784 Total assets $ 25,173,164 $ 9,544,523 $ 24,540,430 $ - $ 59,258,117 Nine Months Ended September 30, 2014 (Unaudited) Fixed Wireless Shared Wireless Infrastructure Corporate Eliminations Total Revenues $ 22,811,582 $ 2,272,683 $ - $ (137,907 ) $ 24,946,358 Operating Expenses Cost of revenues (exclusive of depreciation) 7,750,725 10,512,098 43,860 (137,907 ) 18,168,776 Depreciation and amortization 6,598,893 2,932,592 763,387 - 10,294,872 Customer support services 889,654 502,342 2,182,465 - 3,574,461 Sales and marketing 3,754,707 177,874 241,122 - 4,173,703 General and administrative 374,164 467,290 6,885,069 - 7,726,523 Total Operating Expenses 19,368,143 14,592,196 10,115,903 (137,907 ) 43,938,335 Operating Income (Loss) $ 3,443,439 $ (12,319,513 ) $ (10,115,903 ) $ - $ (18,991,977 ) Capital expenditures $ 4,044,135 $ 2,018,334 $ 338,791 $ - $ 6,401,260 As of September 30, 2014 Property and equipment, net $ 21,340,927 $ 11,753,330 $ 2,287,890 $ - $ 35,382,147 Total assets $ 26,293,518 $ 14,232,594 $ 14,948,568 $ - $ 55,474,680 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The Company’s accounting policies are described in the Notes to Consolidated Financial Statements in its Annual Report on Form 10-K for the year ended December 31, 2014, and updated, as necessary, in this Quarterly Report on Form 10-Q. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk . |
Receivables, Policy [Policy Text Block] | Accounts Receivable Three Months Ended September 30, Nine Months Ended September 30, 201 5 201 4 201 5 201 4 Beginning of period $ 117,748 $ 161,863 $ 59,273 $ 81,009 Additions 32,000 75,000 132,000 192,000 Deductions (43,762 ) (30,995 ) (85,287 ) (67,141 ) End of period $ 105,986 $ 205,868 $ 105,986 $ 205,868 |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition. |
Revenue Recognition, Deferred Revenue [Policy Text Block] | Deferred Revenues. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Intrinsic Value of Stock Options and Warrants |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements. The Company is currently evaluating the effect that ASU 2015-03 will have on its condensed consolidated financial statements and related disclosures. |
Reclassification, Policy [Policy Text Block] | Reclassifications. |
Subsequent Events, Policy [Policy Text Block] | Subsequent Events |
Note 2 - Summary of Significa21
Note 2 - Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Schedule Of Allowance For Doubtful Accounts Receivable [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 201 5 201 4 201 5 201 4 Beginning of period $ 117,748 $ 161,863 $ 59,273 $ 81,009 Additions 32,000 75,000 132,000 192,000 Deductions (43,762 ) (30,995 ) (85,287 ) (67,141 ) End of period $ 105,986 $ 205,868 $ 105,986 $ 205,868 |
Note 3 - Property and Equipme22
Note 3 - Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | September 30, 2015 December 31, 2014 Network and base station equipment $ 38,731,362 $ 35,836,469 Customer premise equipment 29,616,923 26,511,691 Shared wireless infrastructure 20,899,869 21,044,189 Information technology 4,770,115 4,628,555 Furniture, fixtures and other 1,713,722 1,669,340 Leasehold improvements 1,623,071 1,599,393 97,355,062 91,289,637 Less: accumulated depreciation 67,314,278 57,384,351 Property and equipment, net $ 30,040,784 $ 33,905,286 |
Schedule of Capital Leased Assets [Table Text Block] | September 30 , 201 5 December 31, 201 4 Network and base station equipment $ 1,390,593 $ 1,003,875 Shared wireless infrastructure 1,230,305 1,230,305 Customer premise equipment 669,792 246,484 Information technology 1,860,028 1,860,028 5,150,718 4,340,692 Less: accumulated depreciation 2,857,432 2,135,534 Property acquired through capital leases, net $ 2,293,286 $ 2,205,158 |
Note 4 - Intangible Assets (Tab
Note 4 - Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | September 30, 2015 December 31, 2014 Goodwill $ 1,674,281 $ 1,674,281 Customer relationships $ 11,856,127 $ 11,856,127 Less: accumulated amortization of customer relationships 11,235,028 10,940,824 Customer relationships, net 621,099 915,303 FCC licenses 1,284,555 1,284,555 Intangible assets, net $ 1,905,654 $ 2,199,858 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Remainder of 2015 $ 98,068 2016 392,272 2017 130,759 $ 621,099 |
Note 5 - Accrued Expenses (Tabl
Note 5 - Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | September 30, 2015 December 31, 2014 Payroll and related $ 946,445 $ 726,917 Property and equipment 427,496 524,280 Professional services 409,554 256,534 Network 316,258 187,440 Other 289,811 280,413 Marketing 80,750 63,112 Total $ 2,470,314 $ 2,038,696 |
Note 6 - Other Liabilities (Tab
Note 6 - Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Other Liabilities [Table Text Block] | September 30, 2015 December 31, 2014 Current Deferred rent $ 59,825 $ 46,058 Deferred acquisition payments 3,215 11,184 Total $ 63,040 $ 57,242 Long-Term Deferred rent $ 1,515,357 $ 1,373,163 Deferred acquisition payments - 341 Deferred taxes 401,337 401,337 Total $ 1,916,694 $ 1,774,841 |
Note 8 - Stock Options and Wa26
Note 8 - Stock Options and Warrants (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Risk-free interest rate 1.5 % - 1.6 % 1.7 % - 1.8 % 1.5 % - 1.6 % 1.6 % - 1.8 % Expected volatility 57.8 % - 59.3 % 59 % 57.8 % - 59.3 % 47 % - 59 % Expected life (in years) 4.2 5.3 4.2 5.3 Expected dividend yield - - - - Weighted average per share grant date fair value $ 0.63 $ 0.75 $ 0.71 $ 0.80 Stock-based compensation $ 191,170 $ 183,844 $ 609,469 $ 735,076 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Number Weighted Average Exercise Price Outstanding as of January 1, 2015 3,997,695 $ 2.73 Granted during 2015 828,750 $ 1.52 Exercised (426,530 ) $ 1.58 Cancelled /expired (74,124 ) $ 1.72 Outstanding as of September 30, 2015 4,325,791 $ 2.63 Exercisable as of September 30, 2015 2,711,299 $ 2.99 |
Note 10 - Fair Value Measurem27
Note 10 - Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Total Carrying Value Quoted prices in active markets Significant Significant September 30, 2015 $ 20,308,551 $ 20,308,551 $ - $ - December 31, 2014 $ 38,027,509 $ 38,027,509 $ - $ - |
Note 11 - Net Loss Per Common28
Note 11 - Net Loss Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three and Nine Months Ended September 30, 201 5 201 4 Stock options 4,325,791 3,901,314 Warrants 2,850,000 450,000 Total 7,175,791 4,351,314 |
Note 12 - Commitments (Tables)
Note 12 - Commitments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Remainder of 2015 $ 5,268,066 2016 19,388,526 2017 14,114,624 2018 6,832,370 2019 3,314,230 Thereafter 1,284,645 $ 50,202,461 |
Schedule of Rent Expense [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 201 5 201 4 201 5 201 4 Points of Presence $ 2,079,322 $ 1,939,574 $ 6,174,386 $ 5,732,922 Street level rooftops 3,240,996 3,359,804 10,099,784 9,752,720 Corporate offices 96,558 84,109 285,419 252,328 Other 113,171 88,211 302,111 273,928 $ 5,530,047 $ 5,471,698 $ 16,861,700 $ 16,011,898 |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | Remainder of 2015 $ 315,910 2016 1,110,428 2017 837,811 2018 143,796 $ 2,407,945 Less: interest expense 225,787 Total capital lease obligations $ 2,182,158 Current $ 998,986 Long-term $ 1,183,172 |
Note 13 - Segment Information (
Note 13 - Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended September 30 , 201 5 (Unaudited) Fixed Wireless Shared Wireless Infrastructure Corporate Eliminations Total Revenues $ 6,995,168 $ 849,824 $ - $ (47,701 ) $ 7,797,291 Operating Expenses Cost of revenues (exclusive of depreciation) 2,734,708 3,483,763 16,064 (47,701 ) 6,186,834 Depreciation and amortization 2,214,143 1,005,185 216,307 - 3,435,635 Customer support services 379,168 179,660 751,966 - 1,310,794 Sales and marketing 1,400,507 35,793 77,350 - 1,513,650 General and administrative 110,137 99,356 1,984,629 - 2,194,122 Total Operating Expenses 6,838,663 4,803,757 3,046,316 (47,701 ) 14,641,035 Operating Income (Loss) $ 156,505 $ (3,953,933 ) $ (3,046,316 ) $ - $ (6,843,744 ) Capital expenditures $ 1,778,844 $ 46,058 $ 31,390 $ - $ 1,856,292 Three Months Ended September 30, 2014 (Unaudited) Fixed Wireless Shared Wireless Infrastructure Corporate Eliminations Total Revenues $ 7,553,609 $ 793,964 $ - $ (45,969 ) $ 8,301,604 Operating Expenses Cost of revenues (exclusive of depreciation) 2,631,572 3,609,807 15,510 (45,969 ) 6,210,920 Depreciation and amortization 1,980,519 1,013,693 324,183 - 3,318,395 Customer support services 345,918 147,379 754,494 - 1,247,791 Sales and marketing 1,239,446 38,261 75,308 - 1,353,015 General and administrative 63,686 163,125 2,154,775 - 2,381,586 Total Operating Expenses 6,261,141 4,972,265 3,324,270 (45,969 ) 14,511,707 Operating Income (Loss) $ 1,292,468 $ (4,178,301 ) $ (3,324,270 ) $ - $ (6,210,103 ) Capital expenditures $ 1,154,281 $ 589,883 $ 21,603 $ - $ 1,765,767 Nine Months Ended September 30 , 201 5 (Unaudited) Fixed Wireless Shared Wireless Infrastructure Corporate Eliminations Total Revenues $ 21,293,373 $ 2,463,678 $ - $ (142,532 ) $ 23,614,519 Operating Expenses Cost of revenues (exclusive of depreciation) 8,140,524 10,862,526 46,220 (142,532 ) 18,906,738 Depreciation and amortization 6,516,596 3,052,554 654,981 - 10,224,131 Customer support services 1,066,175 536,021 2,282,310 - 3,884,506 Sales and marketing 4,038,582 122,704 229,274 - 4,390,560 General and administrative 411,031 302,889 6,777,593 - 7,491,513 Total Operating Expenses 20,172,908 14,876,694 9,990,378 (142,532 ) 44,897,448 Operating Income (Loss) $ 1,120,465 $ (12,413,016 ) $ (9,990,378 ) $ - $ (21,282,929 ) Capital expenditures $ 5,635,054 $ 220,751 $ 209,620 $ - $ 6,065,425 As of September 30, 2015 Property and equipment, net $ 20,813,961 $ 7,561,436 $ 1,665,387 $ - $ 30,040,784 Total assets $ 25,173,164 $ 9,544,523 $ 24,540,430 $ - $ 59,258,117 Nine Months Ended September 30, 2014 (Unaudited) Fixed Wireless Shared Wireless Infrastructure Corporate Eliminations Total Revenues $ 22,811,582 $ 2,272,683 $ - $ (137,907 ) $ 24,946,358 Operating Expenses Cost of revenues (exclusive of depreciation) 7,750,725 10,512,098 43,860 (137,907 ) 18,168,776 Depreciation and amortization 6,598,893 2,932,592 763,387 - 10,294,872 Customer support services 889,654 502,342 2,182,465 - 3,574,461 Sales and marketing 3,754,707 177,874 241,122 - 4,173,703 General and administrative 374,164 467,290 6,885,069 - 7,726,523 Total Operating Expenses 19,368,143 14,592,196 10,115,903 (137,907 ) 43,938,335 Operating Income (Loss) $ 3,443,439 $ (12,319,513 ) $ (10,115,903 ) $ - $ (18,991,977 ) Capital expenditures $ 4,044,135 $ 2,018,334 $ 338,791 $ - $ 6,401,260 As of September 30, 2014 Property and equipment, net $ 21,340,927 $ 11,753,330 $ 2,287,890 $ - $ 35,382,147 Total assets $ 26,293,518 $ 14,232,594 $ 14,948,568 $ - $ 55,474,680 |
Note 1 - Organization and Nat31
Note 1 - Organization and Nature of Business (Details Textual) | 9 Months Ended | |||
Sep. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2013USD ($) | |
Cash and Cash Equivalents, at Carrying Value | $ 20,308,551 | $ 38,027,509 | $ 11,890,770 | $ 28,181,531 |
Working Capital | $ 16,700,000 | |||
Number of Operating Segments | 2 |
Note 2 - Summary of Significa32
Note 2 - Summary of Significant Accounting Policies (Details Textual) | Sep. 30, 2015USD ($) |
Cash, Uninsured Amount | $ 19,791,000 |
Cash, FDIC Insured Amount | $ 250,000 |
Note 2 - Summary of Significa33
Note 2 - Summary of Significant Accounting Policies - Changes in Allowance for Doubtful Accounts (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Beginning of period | $ 117,748 | $ 161,863 | $ 59,273 | $ 81,009 |
Additions | 32,000 | 75,000 | 132,000 | 192,000 |
Deductions | (43,762) | (30,995) | (85,287) | (67,141) |
End of period | $ 105,986 | $ 205,868 | $ 105,986 | $ 205,868 |
Note 3 - Property and Equipme34
Note 3 - Property and Equipment (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Depreciation | $ 3,337,567 | $ 3,220,327 | $ 9,929,927 | $ 9,503,971 |
Note 3 - Property and Equipme35
Note 3 - Property and Equipment (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Network and Base Station Equipment [Member] | ||
Property, Plant, and Equipment Gross | $ 38,731,362 | $ 35,836,469 |
Customer Premise Equipment [Member] | ||
Property, Plant, and Equipment Gross | 29,616,923 | 26,511,691 |
Shared Wireless Infrastructure [Member] | ||
Property, Plant, and Equipment Gross | 20,899,869 | 21,044,189 |
Information Technology [Member] | ||
Property, Plant, and Equipment Gross | 4,770,115 | 4,628,555 |
Furniture and Fixtures [Member] | ||
Property, Plant, and Equipment Gross | 1,713,722 | 1,669,340 |
Leasehold Improvements [Member] | ||
Property, Plant, and Equipment Gross | 1,623,071 | 1,599,393 |
Property, Plant, and Equipment Gross | 97,355,062 | 91,289,637 |
Less: accumulated depreciation | 67,314,278 | 57,384,351 |
Property and equipment, net | $ 30,040,784 | $ 33,905,286 |
Note 3 - Property Acquired Thro
Note 3 - Property Acquired Through Capital Leases (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Network and Base Station Equipment [Member] | ||
Capital Leased Assets Gross | $ 1,390,593 | $ 1,003,875 |
Shared Wireless Infrastructure [Member] | ||
Capital Leased Assets Gross | 1,230,305 | 1,230,305 |
Customer Premise Equipment [Member] | ||
Capital Leased Assets Gross | 669,792 | 246,484 |
Information Technology [Member] | ||
Capital Leased Assets Gross | 1,860,028 | 1,860,028 |
Capital Leased Assets Gross | 5,150,718 | 4,340,692 |
Less: accumulated depreciation | 2,857,432 | 2,135,534 |
Property acquired through capital leases, net | $ 2,293,286 | $ 2,205,158 |
Note 4 - Intangible Assets (Det
Note 4 - Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Delos Internet [Member] | ||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years 60 days | |||
Finite-Lived Intangible Assets, Remaining Amortization Period | 1 year 210 days | |||
Amortization of Intangible Assets | $ 98,068 | $ 98,068 | $ 294,204 | $ 790,901 |
Note 4 - Intangible Assets and
Note 4 - Intangible Assets and Goodwill (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Goodwill | $ 1,674,281 | $ 1,674,281 |
Customer relationships | 11,856,127 | 11,856,127 |
Less: accumulated amortization of customer relationships | 11,235,028 | 10,940,824 |
621,099 | 915,303 | |
FCC licenses | 1,284,555 | 1,284,555 |
Intangible assets, net | $ 1,905,654 | $ 2,199,858 |
Note 4 - Future Amortization Ex
Note 4 - Future Amortization Expense (Details) | Sep. 30, 2015USD ($) |
Remainder of 2015 | $ 98,068 |
2,016 | 392,272 |
2,017 | 130,759 |
$ 621,099 |
Note 5 - Accrued Expenses (Deta
Note 5 - Accrued Expenses (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Payroll and Related [Member] | ||
Accrued Liabilities, Current | $ 946,445 | $ 726,917 |
Property and Equipment [Member] | ||
Accrued Liabilities, Current | 427,496 | 524,280 |
Professional Services [Member] | ||
Accrued Liabilities, Current | 409,554 | 256,534 |
Network [Member] | ||
Accrued Liabilities, Current | 316,258 | 187,440 |
Other Accrued Liabilities [Member] | ||
Accrued Liabilities, Current | 289,811 | 280,413 |
Marketing [Member] | ||
Accrued Liabilities, Current | 80,750 | 63,112 |
Accrued Liabilities, Current | $ 2,470,314 | $ 2,038,696 |
Note 6 - Other Liabilities (Det
Note 6 - Other Liabilities (Details Textual) - Delos Internet [Member] | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Deferred Acquisition Payments Gross | $ 3,215 |
Delos Interest Rate | 7.00% |
Note 6 - Other Liabilities, Cur
Note 6 - Other Liabilities, Current and Noncurrent (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Deferred rent | $ 59,825 | $ 46,058 |
Deferred acquisition payments | 3,215 | 11,184 |
Total | 63,040 | 57,242 |
Long-Term | ||
Deferred rent | $ 1,515,357 | 1,373,163 |
Deferred acquisition payments | 341 | |
Deferred taxes | $ 401,337 | 401,337 |
Total | $ 1,916,694 | $ 1,774,841 |
Note 7 - Long-Term Debt (Detail
Note 7 - Long-Term Debt (Details Textual) - USD ($) | Oct. 16, 2014 | Sep. 30, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Melody Business Finance LLC [Member] | Secured Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 7.00% | ||||
Melody Business Finance LLC [Member] | Secured Debt [Member] | If Rate Is Greater Than LIBOR Rate [Member] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||
Melody Business Finance LLC [Member] | Secured Debt [Member] | First Two Thirds Of Shares Under Warrants [Member] | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 1.26 | $ 1.26 | |||
Melody Business Finance LLC [Member] | Secured Debt [Member] | Remaining One Third Of Shares Under Warrants [Member] | |||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1,200,000 | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.01 | $ 0.01 | $ 0.01 | ||
Melody Business Finance LLC [Member] | Secured Debt [Member] | Interest Expense [Member] | |||||
Paid-in-Kind Interest | $ 368,092 | $ 1,081,493 | |||
Melody Business Finance LLC [Member] | Secured Debt [Member] | Warrant [Member] | |||||
Debt Instrument, Unamortized Discount | 1,624,157 | 1,624,157 | |||
Interest Expense, Debt | 194,890 | 615,355 | |||
Melody Business Finance LLC [Member] | Secured Debt [Member] | Other Assets [Member] | |||||
Debt Issuance Cost | $ 2,900,000 | ||||
Melody Business Finance LLC [Member] | Secured Debt [Member] | |||||
Debt Instrument, Term | 5 years | ||||
Debt Instrument, Face Amount | $ 35,000,000 | ||||
Debt Instrument Discount Rate | 3.00% | ||||
Debt Instrument, Unamortized Discount | $ 1,050,000 | 692,328 | 692,328 | ||
Interest Expense, Debt | $ 83,076 | $ 262,307 | |||
Paid In Kind Interest Stated Rate | 4.00% | 4.00% | |||
Interest Paid | $ 736,183 | $ 2,162,986 | |||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 3,600,000 | 3,600,000 | |||
Warrants and Rights Outstanding | $ 2,463,231 | $ 2,463,231 | |||
Amortization of Financing Costs | 228,952 | 722,902 | |||
Debt Instrument, Unamortized Discount | $ 2,316,486 | $ 2,316,486 | $ 3,194,147 | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 1.31 | $ 1.31 | |||
Amortization of Financing Costs | $ 722,902 | ||||
Deferred Finance Costs, Net | $ 1,908,017 | $ 1,908,017 |
Note 8 - Stock Options and Wa44
Note 8 - Stock Options and Warrants (Details Textual) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($)$ / sharesshares | Jul. 30, 2015$ / sharesshares | Jun. 30, 2015$ / sharesshares | Sep. 30, 2015USD ($)$ / sharesshares | Sep. 30, 2015USD ($)$ / sharesshares | |
Employee Stock Option [Member] | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 1,012,437 | $ 1,012,437 | $ 1,012,437 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year | ||||
Cashless Exercise of Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 426,530 | ||||
Board of Directors [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 200,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | $ / shares | $ 2.07 | ||||
Executive Officer [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 81,250 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | $ / shares | $ 1.55 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Granted Number of Employees | 2 | ||||
Two Executive Officers and Company Employees [Member] | Share-based Compensation Award, Tranche One [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 50.00% | ||||
Two Executive Officers and Company Employees [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 547,500 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Exercise Price | $ / shares | $ 1.31 | $ 1.31 | $ 1.31 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Minimum Required Share Grants, Gross | 1,000 | ||||
Warrant [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Outstanding | $ | $ 1,272,000 | $ 1,272,000 | $ 1,272,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 828,750 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 426,530 | ||||
Stock Issued During Period Shares Stock Options Exercised Net of Shares in Lieu of Cash | 96,594 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 15,000 | 74,124 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 27,500 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 7 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ | 8,950 | $ 8,950 | $ 8,950 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ | $ 8,950 | $ 8,950 | $ 8,950 | ||
Share Price | $ / shares | $ 1.07 | $ 1.07 | $ 1.07 | ||
Class of Warrant or Right, Outstanding | 4,050,000 | 4,050,000 | 4,050,000 | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 1.31 | $ 1.31 | $ 1.31 | ||
Class Of Warrant Or Right Weighted Warrants Exercisable, Average Remaining Contractual Life | 6 |
Note 8 - Black-Scholes Option P
Note 8 - Black-Scholes Option Pricing Model Assumptions (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 15 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | |
Minimum [Member] | |||||
Risk-free interest rate | 1.50% | 1.70% | 1.50% | 1.60% | |
Expected volatility | 57.80% | 57.80% | 47.00% | ||
Maximum [Member] | |||||
Risk-free interest rate | 1.60% | 1.60% | 1.80% | 1.80% | |
Expected volatility | 59.30% | 59.30% | 59.00% | ||
Expected volatility | 59.00% | ||||
Expected life (in years) | 4 years 73 days | 5 years 109 days | 4 years 73 days | 5 years 109 days | |
Weighted average per share grant date fair value (in dollars per share) | $ 0.63 | $ 0.75 | $ 0.71 | $ 0.80 | |
Allocated Share-based Compensation Expense | $ 191,170 | $ 183,844 | $ 609,469 | $ 735,076 |
Note 8 - Option Transactions Un
Note 8 - Option Transactions Under the Stock Option Plans (Details) - $ / shares | 9 Months Ended |
Sep. 30, 2015 | |
Outstanding (in shares) | 3,997,695 |
Outstanding (in dollars per share) | $ 2.73 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 828,750 |
Granted during 2015 (in dollars per share) | $ 1.52 |
Exercised (in shares) | (426,530) |
Exercised (in dollars per share) | $ 1.58 |
Cancelled /expired (in shares) | (74,124) |
Cancelled /expired (in dollars per share) | $ 1.72 |
Outstanding (in shares) | 4,325,791 |
Outstanding (in dollars per share) | $ 2.63 |
Exercisable as of September 30, 2015 (in shares) | 2,711,299 |
Exercisable as of September 30, 2015 (in dollars per share) | $ 2.99 |
Note 9 - Employee Stock Purch47
Note 9 - Employee Stock Purchase Plan (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | 57 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | |
2010 Employee Stock Purchase Plan [Member] | |||||
Percentage Of Discount Allowed For Shares Issued Under Employee Stock Purchase Plan | 15.00% | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 200,000 | 200,000 | 200,000 | ||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 11,268 | 24,146 | 135,726 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 64,274 | 64,274 | 64,274 | ||
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 12,057 | $ 37,361 | |||
Allocated Share-based Compensation Expense | 1,803 | $ 1,529 | 5,583 | $ 5,329 | |
Stock Issued During Period, Value, Employee Stock Purchase Plan | 37,361 | ||||
Allocated Share-based Compensation Expense | $ 191,170 | $ 183,844 | $ 609,469 | $ 735,076 |
Note 10 - Fair Value of Assets
Note 10 - Fair Value of Assets and Liabilities (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Inputs, Level 1 [Member] | ||
Cash and cash equivalents | $ 20,308,551 | $ 38,027,509 |
Cash and cash equivalents | $ 20,308,551 | $ 38,027,509 |
Note 11 - Net Loss Per Common49
Note 11 - Net Loss Per Common Share (Details Textual) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Jun. 30, 2015 | |
Melody Business Finance LLC [Member] | Secured Debt [Member] | Remaining One Third Of Shares Under Warrants [Member] | ||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1,200,000 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.01 | $ 0.01 |
Melody Business Finance LLC [Member] | Secured Debt [Member] | ||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 3,600,000 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 1.31 | |
Maximum Potential Proceeds From Stock Option And Warrant Exercise | $ 17 |
Note 11 - Anti-dilutive Securit
Note 11 - Anti-dilutive Securities (Details) - shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Employee Stock Option [Member] | ||
Antidilutive securities (in shares) | 4,325,791 | 3,901,314 |
Warrant [Member] | ||
Antidilutive securities (in shares) | 2,850,000 | 450,000 |
Antidilutive securities (in shares) | 7,175,791 | 4,351,314 |
Note 12 - Commitments (Details
Note 12 - Commitments (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Dec. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Feb. 28, 2014 | |
Minimum [Member] | ||||||||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 1 year | |||||||
Maximum [Member] | ||||||||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 25 years | |||||||
Corporate Offices [Member] | Due in 2014 [Member] | ||||||||
Operating Leases, Rent Expense | $ 359,750 | |||||||
Corporate Offices [Member] | Due in 2019 [Member] | ||||||||
Operating Leases, Rent Expense | $ 416,970 | |||||||
Corporate Offices [Member] | ||||||||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 5 years | |||||||
Leasehold Improvements, Gross | $ 600,000 | |||||||
Operating Lease, Leasehold Improvements to be Made by Lessor | $ 380,000 | |||||||
Operating Leases, Rent Expense | $ 96,558 | $ 84,109 | 285,419 | $ 252,328 | ||||
Annual Increase in Operating Lease Rent Expense | 3.00% | |||||||
Sales Center [Member] | ||||||||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 5 years | |||||||
Operating Leases, Rent Expense | $ 53,130 | |||||||
Annual Increase in Operating Lease Rent Expense | 3.00% | |||||||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 3 years 60 days | |||||||
Operating Leases, Rent Expense | $ 5,530,047 | $ 5,471,698 | $ 16,861,700 | $ 16,011,898 | ||||
Information Technology Infrastructure Support Agreement, Term | 1 year | |||||||
Other Obligations Quarterly Payments | $ 68,000 |
Note 12 - Total Future Operatin
Note 12 - Total Future Operating Lease Obligations (Details) | Sep. 30, 2015USD ($) |
Remainder of 2015 | $ 5,268,066 |
2,016 | 19,388,526 |
2,017 | 14,114,624 |
2,018 | 6,832,370 |
2,019 | 3,314,230 |
Thereafter | 1,284,645 |
$ 50,202,461 |
Note 12 - Rent Expenses (Detail
Note 12 - Rent Expenses (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Points of Presence [Member] | ||||
Lease and Rental Expense | $ 2,079,322 | $ 1,939,574 | $ 6,174,386 | $ 5,732,922 |
Street Level Rooftops [Member] | ||||
Lease and Rental Expense | 3,240,996 | 3,359,804 | 10,099,784 | 9,752,720 |
Corporate Offices [Member] | ||||
Lease and Rental Expense | 96,558 | 84,109 | 285,419 | 252,328 |
Other Leased Property [Member] | ||||
Lease and Rental Expense | 113,171 | 88,211 | 302,111 | 273,928 |
Lease and Rental Expense | $ 5,530,047 | $ 5,471,698 | $ 16,861,700 | $ 16,011,898 |
Note 12 - Total Future Capital
Note 12 - Total Future Capital Lease Obligations (Details) | Sep. 30, 2015USD ($) |
Remainder of 2015 | $ 315,910 |
2,016 | 1,110,428 |
2,017 | 837,811 |
2,018 | 143,796 |
2,407,945 | |
Less: interest expense | 225,787 |
Total capital lease obligations | 2,182,158 |
Current | 998,986 |
Long-term | $ 1,183,172 |
Note 13 - Segment Information55
Note 13 - Segment Information (Details Textual) | 9 Months Ended |
Sep. 30, 2015 | |
Number of Reportable Segments | 2 |
Note 13 - Segment Information56
Note 13 - Segment Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Fixed Wireless [Member] | Operating Segments [Member] | ||||
Revenues | $ 6,995,168 | $ 7,553,609 | $ 21,293,373 | $ 22,811,582 |
Cost of revenues (exclusive of depreciation) | 2,734,708 | 2,631,572 | 8,140,524 | 7,750,725 |
Depreciation and amortization | 2,214,143 | 1,980,519 | 6,516,596 | 6,598,893 |
Customer support services | 379,168 | 345,918 | 1,066,175 | 889,654 |
Sales and marketing | 1,400,507 | 1,239,446 | 4,038,582 | 3,754,707 |
General and administrative | 110,137 | 63,686 | 411,031 | 374,164 |
Total Operating Expenses | 6,838,663 | 6,261,141 | 20,172,908 | 19,368,143 |
Operating Income (Loss) | 156,505 | 1,292,468 | 1,120,465 | 3,443,439 |
Capital expenditures | 1,778,844 | 1,154,281 | 5,635,054 | 4,044,135 |
Property and equipment, net | 20,813,961 | 21,340,927 | 20,813,961 | 21,340,927 |
Total assets | 25,173,164 | 26,293,518 | 25,173,164 | 26,293,518 |
Shared Wireless Infrastructure [Member] | Operating Segments [Member] | ||||
Revenues | 849,824 | 793,964 | 2,463,678 | 2,272,683 |
Cost of revenues (exclusive of depreciation) | 3,483,763 | 3,609,807 | 10,862,526 | 10,512,098 |
Depreciation and amortization | 1,005,185 | 1,013,693 | 3,052,554 | 2,932,592 |
Customer support services | 179,660 | 147,379 | 536,021 | 502,342 |
Sales and marketing | 35,793 | 38,261 | 122,704 | 177,874 |
General and administrative | 99,356 | 163,125 | 302,889 | 467,290 |
Total Operating Expenses | 4,803,757 | 4,972,265 | 14,876,694 | 14,592,196 |
Operating Income (Loss) | (3,953,933) | (4,178,301) | (12,413,016) | (12,319,513) |
Capital expenditures | 46,058 | 589,883 | 220,751 | 2,018,334 |
Property and equipment, net | 7,561,436 | 11,753,330 | 7,561,436 | 11,753,330 |
Total assets | 9,544,523 | 14,232,594 | 9,544,523 | 14,232,594 |
Consolidation, Eliminations [Member] | ||||
Revenues | (47,701) | (45,969) | (142,532) | (137,907) |
Cost of revenues (exclusive of depreciation) | (47,701) | (45,969) | (142,532) | (137,907) |
Total Operating Expenses | (47,701) | (45,969) | (142,532) | (137,907) |
Corporate, Non-Segment [Member] | ||||
Cost of revenues (exclusive of depreciation) | 16,064 | 15,510 | 46,220 | 43,860 |
Depreciation and amortization | 216,307 | 324,183 | 654,981 | 763,387 |
Customer support services | 751,966 | 754,494 | 2,282,310 | 2,182,465 |
Sales and marketing | 77,350 | 75,308 | 229,274 | 241,122 |
General and administrative | 1,984,629 | 2,154,775 | 6,777,593 | 6,885,069 |
Total Operating Expenses | 3,046,316 | 3,324,270 | 9,990,378 | 10,115,903 |
Operating Income (Loss) | (3,046,316) | (3,324,270) | (9,990,378) | (10,115,903) |
Capital expenditures | 31,390 | 21,603 | 209,620 | 338,791 |
Property and equipment, net | 1,665,387 | 2,287,890 | 1,665,387 | 2,287,890 |
Total assets | 24,540,430 | 14,948,568 | 24,540,430 | 14,948,568 |
Revenues | 7,797,291 | 8,301,604 | 23,614,519 | 24,946,358 |
Cost of revenues (exclusive of depreciation) | 6,186,834 | 6,210,920 | 18,906,738 | 18,168,776 |
Depreciation and amortization | 3,435,635 | 3,318,395 | 10,224,131 | 10,294,872 |
Customer support services | 1,310,794 | 1,247,791 | 3,884,506 | 3,574,461 |
Sales and marketing | 1,513,650 | 1,353,015 | 4,390,560 | 4,173,703 |
General and administrative | 2,194,122 | 2,381,586 | 7,491,513 | 7,726,523 |
Total Operating Expenses | 14,641,035 | 14,511,707 | 44,897,448 | 43,938,335 |
Operating Income (Loss) | (6,843,744) | (6,210,103) | (21,282,929) | (18,991,977) |
Capital expenditures | 1,856,292 | 1,765,767 | 6,065,425 | 6,401,260 |
Property and equipment, net | 30,040,784 | 35,382,147 | 30,040,784 | 35,382,147 |
Total assets | $ 59,258,117 | $ 55,474,680 | $ 59,258,117 | $ 55,474,680 |