EXHIBIT 99.1
[BUZZTIME LOGO]
NTN BUZZTIME, INC. ANNOUNCES FULL YEAR AND
FOURTH QUARTER 2005 RESULTS
o REVENUES INCREASED BY 18% IN Q4 2005 VERSUS Q4 2004
o CASH INCREASED FOR THE SECOND CONSECUTIVE QUARTER, IMPROVING BY $1.0
MILLION IN Q4 2005
o ACHIEVED SECOND CONSECUTIVE PROFITABLE QUARTER WITH NET INCOME OF
$0.17 MILLION IN Q4 2005
o ITV NETWORK REACHED ALL-TIME HIGH OF 4,019 NORTH AMERICA SITES
o COMPANY IS THE FIRST IN THE NATION TO LAUNCH MULTI-PLAYER GAME ROOMS
ON CABLE TV
CARLSBAD, Calif., March 16 /PRNewswire-FirstCall/ -- NTN Buzztime, Inc. (Amex:
NTN), a leader in interactive communications and entertainment products for the
home and for the hospitality industry, today announced results for the fourth
quarter and year ended December 31, 2005.
RESULTS FOR THE FOURTH QUARTER ENDED DECEMBER 31, 2005
For the fourth quarter ended December 31, 2005, consolidated revenues increased
17.7% to $11.20 million, compared to revenues of $9.51 million for the fourth
quarter of 2004. NTN reported consolidated net income of $174,000, or $0.00 per
common share for the quarter, which was a $1.55 million improvement over the
consolidated net loss of $1.38 million, or $(0.03) per common share in the
fourth quarter of 2004. Consolidated net income of $174,000 represented the
combination of net income of $634,000 from NTN Hospitality Technologies Division
and net loss of $460,000 from Buzztime Entertainment, Inc., a wholly-owned
subsidiary.
CONSOLIDATED RESULTS
FOR THE THREE MONTHS ENDED DECEMBER 31,
Revenues by Segment: 2005 2004 Variance Percent
- ------------------- ---- ---- -------- -------
NTN iTV Network................................ $ 8,275,000 $ 7,035,000 $ 1,240,000 17.6%
NTN Wireless................................... 1,450,000 1,206,000 244,000 20.2%
Software Solutions............................. 1,139,000 1,173,000 (34,000) (2.9)%
------------- ----------- ------------ ---------
NTN Hospitality Technologies Division....... 10,864,000 9,414,000 1,450,000 15.4%
Buzztime Entertainment...................... 334,000 97,000 237,000 244.3%
------------- ----------- ----------- ---------
Consolidated Revenues.................... $ 11,198,000 $ 9,511,000 $ 1,687,000 17.7%
============= =========== =========== =========
CONSOLIDATED RESULTS
FOR THE THREE MONTHS ENDED DECEMBER 31,
Income (Loss) by Segment: 2005 2004 Variance Percent
- ------------------------ ---- ---- -------- -------
NTN iTV Network................................ $ 991,000 $ 171,000 $ 820,000 479.5%
NTN Wireless................................... 88,000 (52,000) 140,000 N/A
Software Solutions............................. (445,000) (495,000) 50,000 10.1%
---------------- ------------ ----------- ---------
NTN Hospitality Technologies Division....... 634,000 (376,000) 1,010,000 N/A
Buzztime Entertainment...................... (460,000) (1,003,000) 543,000 54.1%
---------------- ------------ ----------- ---------
Consolidated Net Income (Loss)........... $ 174,000 $(1,379,000) $ 1,553,000 N/A
=============== ============ =========== =========
SUBSIDIARY OPERATING RESULTS
NTN Hospitality Technologies Division
- -------------------------------------
Revenues for NTN Hospitality Technologies Division increased $1.45 million or
15.4% to $10.86 million for the fourth quarter of 2005, compared to revenues of
$9.41 million for the same period of 2004. The revenue growth arose from all
three segments in the division: NTN iTV Network both domestically and in Canada,
NTN Wireless and Software Solutions.
The earnings and EBITDA of NTN Hospitality Technologies Division increased $1.01
million and $1.13 million, respectively, during the fourth quarter of 2005 over
the fourth quarter 2004.
Within NTN Hospitality Technologies Division, net income of the NTN iTV Network
segment increased 479.5% or $820,000, primarily as a result of increased
customer base.
The NTN Wireless segment recorded a profit for the fourth quarter of 2005
resulting from a 20.2% increase in revenue over the same period in 2004.
Buzztime Entertainment, Inc.
- ----------------------------
Buzztime Entertainment reported revenue of $334,000 in the fourth quarter of
2005 compared to $97,000 in the fourth quarter of 2004, a $237,000 increase.
The net loss for Buzztime Entertainment was $460,000 in the fourth quarter of
2005, an improvement of $543,000 from the net loss of $1.0 million in the fourth
quarter of 2004.
CONSOLIDATED RESULTS
NTN posted consolidated earnings before interest, taxes, depreciation and
amortization (EBITDA), a measurement not recognized under generally accepted
accounting principles in the United States (GAAP), of $1.38 million in the
fourth quarter of 2005 compared to negative EBITDA of $245,000 in the fourth
quarter of 2004, an improvement of $1.63 million. NTN Hospitality Technologies
Division posted EBITDA of $1.71 million in the fourth quarter of 2005 versus
$587,000 in the fourth quarter of 2004.
A detailed schedule reconciling net income and loss, the nearest GAAP measure,
to EBITDA is included in the supplemental tables below. EBITDA is included
herein because management believes that certain investors find it to be a useful
tool for measuring a company's operating performance. EBITDA should be
considered in addition to results prepared in accordance with GAAP but should
not be considered a substitute for, or superior to, GAAP results. Non-GAAP
financial information such as EBITDA, by its nature, departs from traditional
accounting conventions; accordingly, its use can make it difficult to compare
NTN's current results with results from other reporting periods and with the
results of other companies.
RESULTS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2005
Consolidated revenues increased 14.3% to $40.76 million in 2005, compared to
revenues of $35.66 million in 2004. NTN reported a consolidated net loss of
$2.02 million, or $(0.04) per common share for the 2005 period, which was a
$2.96 million improvement over the net loss of $4.98 million, or $(0.09) per
common share for the 2004 period. The consolidated net loss of $2.02 million
represented the combination of net income of $592,000 from NTN Hospitality
Technologies Division and net loss of $2.61 million from Buzztime Entertainment.
CONSOLIDATED RESULTS
FOR THE YEAR ENDED DECEMBER 31,
Revenues by Segment: 2005 2004 Variance Percent
- ------------------- ---- ---- -------- -------
NTN iTV Network................................ $ 29,374,000 $ 25,925,000 $ 3,449,000 13.3%
NTN Wireless................................... 5,689,000 5,337,000 352,000 6.6%
Software Solutions............................. 4,321,000 4,034,000 287,000 7.1%
------------- ------------- ------------- ---------
Hospitality Technologies Division........... 39,384,000 35,296,000 4,088,000 11.6%
Buzztime Entertainment...................... 1,375,000 359,000 1,016,000 283.0%
------------- ------------- ------------- ---------
Consolidated Revenues.................... $ 40,759,000 $ 35,655,000 $ 5,104,000 14.3%
============= ============= ============= =========
CONSOLIDATED RESULTS
FOR THE YEAR ENDED DECEMBER 31,
Income (Loss) by Segment: 2005 2004 Variance Percent
- ------------------------ ---- ---- -------- -------
NTN iTV Network................................ $ 1,810,000 $ 1,122,000 $ 688,000 61.3%
NTN Wireless................................... 455,000 (64,000) 519,000 N/A
Software Solutions............................. (1,673,000) (2,074,000) 401,000 19.3%
-------------- -------------- ------------- ---------
Hospitality Technologies Division........... 592,000 (1,016,000) 1,608,000 N/A
Buzztime Entertainment...................... (2,611,000) (3,963,000) 1,352,000 34.1%
-------------- -------------- ------------- ---------
Consolidated Net Income (Loss)........... $ (2,019,000) $ (4,979,000) $ 2,960,000 59.4%
============== ============== ============= =========
SUBSIDIARY OPERATING RESULTS
NTN Hospitality Technologies Division
- -------------------------------------
Revenues for NTN Hospitality Technologies Division increased $4.08 million, or
11.6%, to $39.38 million in 2005, compared to revenues of $35.30 million in
2004. The revenue growth arose from all three segments in the division: NTN iTV
Network both domestically and in Canada, NTN Wireless and Software Solutions.
NTN iTV Network's net site growth of 359 sites in North America in 2005 was the
strongest annual net site growth in 8 years. In 2005, the NTN Wireless segment
posted revenue growth of 6.6%, while the Software Solutions segment posted
revenue growth of 7.1%.
NTN Hospitality Technologies Division reported net income of $592,000 in 2005,
an improvement of $1.61 million from a net loss of $1.02 million in 2004.
Buzztime Entertainment, Inc.
- ----------------------------
Buzztime Entertainment reported revenue of $1.38 million in 2005 compared to
$359,000 in 2004. Net loss for Buzztime Entertainment was $2.61 million in 2005,
an improvement of $1.35 million, or 34.1%, from the net loss of $3.96 million in
2004.
CONSOLIDATED RESULTS
NTN posted consolidated earnings before interest, taxes, depreciation and
amortization (EBITDA), a measurement not recognized under generally accepted
accounting principles in the United States (GAAP), of $2.29 million in 2005
compared to negative EBITDA of $898,000 in 2004, an improvement of $3.19
million. NTN Hospitality Technologies Division posted EBITDA of $4.32 million in
2005 versus $2.50 million in 2004.
A detailed schedule reconciling net income and loss, the nearest GAAP measure,
to EBITDA is included in the supplemental tables below. EBITDA is included
herein because management believes that certain investors find it to be a useful
tool for measuring a company's operating performance. EBITDA should be
considered in addition to results prepared in accordance with GAAP but should
not be considered a substitute for, or superior to, GAAP results. Non-GAAP
financial information such as EBITDA, by its nature, departs from traditional
accounting conventions; accordingly, its use can make it difficult to compare
NTN's current results with results from other reporting periods and with the
results of other companies.
Subsequent Events
"I am very encouraged by our second consecutive quarter of net income and the
resulting generation of cash," said Stanley B. Kinsey, Chairman and Chief
Executive Officer of NTN Buzztime, Inc. "These results reflect the continued
enthusiasm in the marketplace for our iTV entertainment offerings which has
translated into an all time high of 4,019 North American sites, as well as
positive movement in other segments. In the second half of 2005 we generated
$420,000 of net income, which was an improvement of $2.8 million over the net
loss generated in the first six months of the year. This primarily reflects the
$2.5 million growth in revenue and a slight reduction in operating costs in the
second half of the year."
"Our United Kingdom expansion continues to grow nicely in 2006 as we have sold 8
additional sites in January and an additional 18 sites in February. Also, in the
first quarter of 2006, we launched the United States first multiplayer Texas
Hold'em and Billiards games to Cable iTV subscribers."
NTN is in the final stages of document compilation and review and expects to
file Form 10-K no later than March 31, 2006.
Conference Call
Management will review these results today at 4:30 p.m. EST. The call is open to
the public. Investors may access the teleconference call by dialing (800)
540-0559 approximately 15 minutes prior to the starting time and ask to be
connected to the NTN Buzztime Earnings Conference Call. International callers
please dial (785) 832-2041. This call is being simultaneously webcast and can be
accessed at NTN's web site at www.ntnbuzztime.com.
A replay of the conference call will be available beginning on March 16,
following the conclusion of the call, through April 12, 2006 at 11:59 p.m. EST.
Please dial (888) 567-0671. International callers please dial (402) 530-0413.
An archive of the webcast will also be available on the Company's Web site at
www.ntnbuzztime.com.
About NTN Buzztime, Inc.
Based in Carlsbad, CA, NTN Buzztime, Inc. is the parent corporation of NTN
Hospitality Technologies(TM) Division and Buzztime Entertainment, Inc., a
wholly-owned subsidiary. NTN Hospitality Technologies Division, which focuses on
the out-of-home hospitality industries, is comprised of the NTN interactive
Television (iTV) Network, NTN Wireless Communications, Inc., and NTN Software
Solutions, Inc. Buzztime Entertainment, Inc. produces Buzztime(R) Trivia
Channel, the play-along games channel, live sports prediction games such as
QB1(R) and many other games that allow one or many players to participate. In
addition to the NTN iTV Network, Buzztime's games are available on cable TV,
satellite TV, mobile phones and plug-n-play home versions. For more information,
please visit our website at www.ntnbuzztime.com.
THIS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS WHICH REFLECT MANAGEMENT'S
CURRENT VIEWS OF FUTURE EVENTS AND OPERATIONS INCLUDING BUT NOT LIMITED TO
TRENDS IN SUBSCRIBER PREFERENCE AND ENGAGEMENT AND RESULTS OF MARKETING
STRATEGIES. THESE STATEMENTS ARE ALL BASED ON CURRENT EXPECTATIONS AND
ASSUMPTIONS THAT ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL
RESULTS TO DIFFER MATERIALLY. THESE RISKS AND UNCERTAINTIES INCLUDE THE RISK OF
CHANGING ECONOMIC CONDITIONS, FAILURE OF PRODUCT DEMAND OR MARKET ACCEPTANCE OF
BOTH EXISTING AND NEW PRODUCTS AND SERVICES AND THE IMPACT OF COMPETITIVE
PRODUCTS AND PRICING. PLEASE SEE NTN BUZZTIME, INC.'S RECENT FILINGS WITH THE
SECURITIES AND EXCHANGE COMMISSION FOR INFORMATION ABOUT THESE AND OTHER RISKS
THAT MAY AFFECT THE COMPANY. ALL FORWARD-LOOKING STATEMENTS INCLUDED IN THIS
RELEASE ARE BASED ON INFORMATION AVAILABLE TO US ON THE DATE HEREOF. THESE
STATEMENTS SPEAK ONLY AS OF THE DATE HEREOF, AND NTN BUZZTIME, INC. DOES NOT
UNDERTAKE TO PUBLICLY UPDATE OR REVISE ANY OF ITS FORWARD-LOOKING STATEMENTS,
EVEN IF EXPERIENCE OR FUTURE CHANGES SHOW THAT THE INDICATED RESULTS OR EVENTS
WILL NOT BE REALIZED.
For additional free information on NTN Buzztime, Inc., please call toll-free
1-800-PRO-INFO and enter ticker symbol NTN.
CONTACT:
Andy Wrobel
Chief Financial Officer
NTN Buzztime, Inc.
(760) 930-1177
Andy.Wrobel@ntnbuzztime.com
NOTE TO ANALYSTS AND EDITORS: PLEASE SEE ATTACHED TABLES.
NTN BUZZTIME, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31 DECEMBER 31
2005 2004 2005 2004
------------ ------------ ------------ ------------
Revenues:
NTN Hospitality Technologies Division .......... $ 10,864,000 $ 9,416,000 $ 39,384,000 $ 35,296,000
Buzztime Entertainment ......................... 334,000 95,000 1,375,000 359,000
------------ ------------ ------------ ------------
Total revenues ......................... 11,198,000 9,511,000 40,759,000 35,655,000
------------ ------------ ------------ ------------
Operating expenses:
Direct operating costs of services ............. 3,696,000 3,564,000 13,803,000 12,732,000
Selling, general and administrative ............ 6,331,000 6,515,000 25,992,000 24,836,000
Litigation, legal and professional fees ........ 578,000 291,000 1,415,000 1,641,000
Stock based compensation ....................... 51,000 140,000 290,000 293,000
Depreciation and amortization .................. 222,000 234,000 854,000 880,000
Research and development ....................... 53,000 73,000 248,000 329,000
------------ ------------ ------------ ------------
Total operating expenses ............... 10,931,000 10,817,000 42,602,000 40,711,000
------------ ------------ ------------ ------------
Operating income / (loss) ........................ 267,000 (1,306,000) (1,843,000) (5,056,000)
Other income (expense):
Interest income ................................ 24,000 32,000 95,000 98,000
Interest expense ............................... (57,000) (56,000) (185,000) (152,000)
Other .......................................... -- -- -- 225,000
------------ ------------ ------------ ------------
Total other income (expense) ........... (33,000) (24,000) (90,000) 171,000
------------ ------------ ------------ ------------
Loss before income taxes ...................... 234,000 (1,330,000) (1,933,000) (4,885,000)
Provision for income taxes ....................... (60,000) (49,000) (86,000) (94,000)
------------ ------------ ------------ ------------
Net income / (loss) .............................. $ 174,000 $ (1,379,000) $ (2,019,000) $ (4,979,000)
============ ============ ============ ============
Net loss per common share - basic ................ $ -- $ (0.03) $ (0.04) $ (0.09)
Weighted average shares outstanding -- basic ..... 53,769,000 52,941,000 53,501,000 52,599,000
Net loss per common share - diluted .............. $ -- $ (0.03) $ (0.04) $ (0.09)
Weighted average shares outstanding - diluted .... 60,819,000 52,941,000 53,501,000 52,599,000
EBITDA Reconciliation:
Net income / (loss) .............................. $ 174,000 $ (1,379,000) $ (2,019,000) $ (4,979,000)
Add back:
Interest expense, net .......................... 33,000 24,000 90,000 54,000
Provision for income taxes ..................... 60,000 49,000 86,000 94,000
Depreciation and amortization .................. 1,117,000 1,061,000 4,135,000 3,933,000
------------ ------------ ------------ ------------
EBITDA ........................................... $ 1,384,000 $ (245,000) $ 2,292,000 $ (898,000)
============ ============ ============ ============
EBITDA (earnings before interest, taxes, depreciation and amortization) is not
intended to represent a measure of performance in accordance with generally
accepted accounting principles (GAAP). EBITDA is included herein because
management believes that certain investors find it to be a useful tool for
measuring the Company's operating performance.
NTN BUZZTIME, INC. AND SUBSIDIARIES
STATEMENTS OF OPERATIONS BY BUSINESS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2005
--------------------------------------------
NTN HOSPITALITY
TECHNOLOGIES BUZZTIME TOTAL
DIVISION ENTERTAINMENT
Revenues................................. $ 10,864,000 $ 334,000 $ 11,198,000
Operating expenses....................... 10,273,000 658,000 10,931,000
--------------- ---------------- ---------------
Operating income (loss).................. 591,000 (324,000) 267,000
Other income (expense)................... 103,000 (136,000) (33,000)
--------------- ----------------- ----------------
Income (loss) before income tax.......... 694,000 (460,000) 234,000
Provision for income taxes............... (60,000) --- (60,000)
---------------- ---------------- ----------------
Net income (loss)........................ $ 634,000 $ (460,000) $ 174,000
=============== ================= ===============
EBITDA Reconciliation:
Net income / (loss)...................... $ 634,000 $ (460,000) $ 174,000
Add back:
Interest expense, net.................. 32,000 1,000 33,000
Provision for income taxes............. 60,000 --- 60,000
Depreciation and amortization.......... 987,000 130,000 1,117,000
--------------- ---------------- ---------------
EBITDA................................... $ 1,713,000 $ (329,000) $ 1,384,000
=============== ================= ===============
FOR THE THREE MONTHS ENDED DECEMBER 31, 2004
--------------------------------------------
NTN HOSPITALITY
TECHNOLOGIES BUZZTIME TOTAL
DIVISION ENTERTAINMENT
Revenues................................. $ 9,414,000 $ 97,000 $ 9,511,000
Operating expenses....................... 9,721,000 1,096,000 10,817,000
--------------- ---------------- ---------------
Operating income (loss).................. (307,000) (999,000) (1,306,000)
Other income (expense)................... (20,000) (4,000) (24,000)
--------------- ---------------- ---------------
Income (loss) before income tax.......... (327,000) (1,003,000) (1,330,000)
Provision for income taxes............... (49,000) --- (49,000)
--------------- ---------------- ---------------
Net income (loss)........................ $ (376,000) $ (1,003,000) $ (1,379,000)
=============== ================ ===============
EBITDA Reconciliation:
Net income / (loss)...................... $ (376,000) $ (1,003,000) $ (1,379,000)
Add back:
Interest expense, net.................. 20,000 4,000 24,000
Provision for income taxes............. 49,000 --- 49,000
Depreciation and amortization.......... 894,000 167,000 1,061,000
--------------- ---------------- ---------------
EBITDA................................... $ 587,000 $ (832,000) $ (245,000)
=============== ================ ===============
EBITDA (earnings before interest, taxes, depreciation and amortization) is not
intended to represent a measure of performance in accordance with generally
accepted accounting principles (GAAP). EBITDA is included herein because
management believes that certain investors find it to be a useful tool for
measuring the Company's operating performance.
NTN BUZZTIME, INC. AND SUBSIDIARIES
STATEMENTS OF OPERATIONS BY BUSINESS
FOR THE YEAR ENDED DECEMBER 31, 2005
------------------------------------
NTN HOSPITALITY
TECHNOLOGIES BUZZTIME TOTAL
DIVISION ENTERTAINMENT
Revenues................................. $ 39,384,000 $ 1,375,000 $ 40,759,000
Operating expenses....................... 38,622,000 3,980,000 42,602,000
--------------- ---------------- ---------------
Operating income (loss).................. 762,000 (2,605,000) (1,843,000)
Other income (expense)................... (84,000) (6,000) (90,000)
---------------- ----------------- ----------------
Income (loss) before income tax.......... 678,000 (2,611,000) (1,933,000)
Provision for income taxes............... (86,000) --- (86,000)
---------------- ---------------- ----------------
Net income (loss)........................ $ 592,000 $ (2,611,000) $ (2,019,000)
=============== ================= ================
EBITDA Reconciliation:
Net income / (loss)...................... $ 592,000 $ (2,611,000) $ (2,019,000)
Add back:
Interest expense, net.................. 84,000 6,000 90,000
Provision for income taxes............. 86,000 --- 86,000
Depreciation and amortization.......... 3,560,000 575,000 4,135,000
--------------- ---------------- ---------------
EBITDA................................... $ 4,322,000 $ (2,030,000) $ 2,292,000
=============== ================= ===============
FOR THE YEAR ENDED DECEMBER 31, 2004
------------------------------------
NTN HOSPITALITY
TECHNOLOGIES BUZZTIME TOTAL
DIVISION ENTERTAINMENT
Revenues................................. $ 35,296,000 $ 359,000 $ 35,655,000
Operating expenses....................... 36,393,000 4,318,000 40,711,000
--------------- ---------------- ---------------
Operating income (loss).................. (1,097,000) (3,959,000) (5,056,000)
Other income (expense)................... 175,000 (4,000) 171,000
--------------- ----------------- ---------------
Income (loss) before income tax.......... (922,000) (3,963,000) (4,885,000)
Provision for income taxes............... (94,000) --- (94,000)
---------------- ---------------- ----------------
Net income (loss)........................ $ (1,016,000) $ (3,963,000) $ (4,979,000)
================ ================= ================
EBITDA Reconciliation:
Net income / (loss)...................... $ (1,016,000) $ (3,963,000) $ (4,979,000)
Add back:
Interest expense, net.................. 50,000 4,000 54,000
Provision for income taxes............. 94,000 --- 94,000
Depreciation and amortization.......... 3,373,000 560,000 3,933,000
--------------- ---------------- ---------------
EBITDA................................... $ 2,501,000 $ (3,399,000) $ (898,000)
=============== ================= ================
EBITDA (earnings before interest, taxes, depreciation and amortization) is not
intended to represent a measure of performance in accordance with generally
accepted accounting principles (GAAP). EBITDA is included herein because
management believes that certain investors find it to be a useful tool for
measuring the Company's operating performance.
NTN BUZZTIME, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2005 AND 2004
2005 2004
---------------- ----------------
ASSETS
Current Assets:
Cash and cash equivalents............................................... $ 5,982,000 $ 6,710,000
Restricted cash......................................................... 69,000 66,000
Accounts receivable, net of allowance for doubtful accounts
of $563,000 in 2005 and $762,000 in 2004.............................. 3,630,000 3,405,000
Inventory............................................................... 371,000 399,000
Investments available-for-sale.......................................... 258,000 304,000
Deposits on broadcast equipment......................................... 799,000 534,000
Deferred costs.......................................................... 1,118,000 960,000
Prepaid expenses and other current assets............................... 955,000 1,128,000
---------------- ----------------
Total current assets............................................. 13,182,000 13,506,000
Broadcast equipment and fixed assets, net................................. 8,085,000 6,451,000
Software development costs, net of accumulated amortization
of $1,170,000 in 2005 and $993,000 in 2004.............................. 706,000 763,000
Deferred costs............................................................ 1,256,000 922,000
Goodwill.................................................................. 3,658,000 3,658,000
Intangible assets, net.................................................... 2,946,000 4,011,000
Other assets.............................................................. 185,000 77,000
---------------- ----------------
Total assets..................................................... $ 30,018,000 $ 29,388,000
================ ================
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable........................................................ $ 725,000 $ 1,590,000
Accrued expenses........................................................ 1,959,000 1,125,000
Sales tax payable....................................................... 714,000 465,000
Accrued salaries........................................................ 483,000 447,000
Accrued vacation........................................................ 619,000 635,000
Income taxes payable.................................................... 147,000 93,000
Obligations under capital leases - current portion...................... 436,000 148,000
Equipment note payable.................................................. --- 620,000
Revolving line of credit................................................ 700,000 ---
Deferred revenue........................................................ 2,024,000 1,448,000
Deferred revenue-Buzztime............................................... 632,000 291,000
---------------- ----------------
Total current liabilities........................................ 8,439,000 6,862,000
Obligations under capital leases, excluding current portion............... 366,000 123,000
Deferred revenue.......................................................... 321,000 368,000
---------------- ----------------
Total liabilities................................................ 9,126,000 7,353,000
---------------- ----------------
Commitments and contingencies
Shareholders' equity:
Series A 10% cumulative convertible preferred stock, $.005 par value,
$161,000 liquidation preference, 5,000,000 shares authorized; 161,000
shares issued and outstanding at December 31, 2005 and
December 31, 2004..................................................... 1,000 1,000
Common stock, $.005 par value, 84,000,000 shares
authorized; 53,877,000 and 53,026,000 shares issued and
outstanding at December 31, 2005 and December 31, 2004,
respectively.......................................................... 268,000 264,000
Additional paid-in capital.............................................. 109,860,000 109,008,000
Accumulated deficit..................................................... (88,788,000) (86,769,000)
Accumulated other comprehensive loss.................................... (449,000) (469,000)
----------------- -----------------
Total shareholders' equity....................................... 20,892,000 22,035,000
---------------- ----------------
Total liabilities and shareholders' equity....................... $ 30,018,000 $ 29,388,000
================ ================