SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the quarterly period ended September 30, 2003 |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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For the Transition Period from to |
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Commission File Number 1-15831 |
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MCF CORPORATION
(Exact Name of Registrant as Specified in its Charter)
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Delaware |
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11-2936371 |
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(State
or Other Jurisdiction of |
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(I.R.S. Employer Identification No.) |
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601 Montgomery Street, 18th Floor |
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94111 |
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(Address of Principal Executive Offices) |
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(Zip Code) |
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(415) 248-5600 |
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(Registrant’s Telephone Number, Including Area Code) |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2). Yes o No ý
As of November 5, 2003, 54,887,342 shares of the registrant’s common stock, $0.0001 par value, were outstanding.
MCF Corporation
Form 10-Q
For the Nine Months Ended September 30, 2003
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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Certifications |
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1
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (unaudited)
MCF CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
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Three Months Ended |
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Nine Months Ended |
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September 30, |
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September 30, |
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September 30, |
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September 30, |
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Revenue: |
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Commissions |
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$ |
2,757,379 |
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$ |
2,332,664 |
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$ |
5,759,313 |
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$ |
4,533,765 |
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Principal transactions |
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261,132 |
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79,176 |
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992,655 |
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203,952 |
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Investment banking |
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4,752,164 |
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15,833 |
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5,464,904 |
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262,249 |
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Other |
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1,646 |
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— |
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2,311 |
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28,827 |
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Total revenue |
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7,772,321 |
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2,427,673 |
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12,219,183 |
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5,028,793 |
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Operating expenses: |
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Compensation and benefits |
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4,824,660 |
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1,725,501 |
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7,991,480 |
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4,112,835 |
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Brokerage and clearing fees |
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375,849 |
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346,609 |
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941,903 |
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742,181 |
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Professional services |
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288,019 |
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145,479 |
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516,994 |
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415,515 |
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Occupancy and equipment |
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100,585 |
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48,003 |
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260,566 |
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173,223 |
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Communications and technology |
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227,193 |
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114,129 |
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612,135 |
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202,421 |
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Depreciation and amortization |
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24,823 |
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101,356 |
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57,102 |
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300,731 |
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Other |
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429,554 |
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(228,093 |
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1,209,615 |
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309,872 |
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Total operating expenses |
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6,270,683 |
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2,252,984 |
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11,589,795 |
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6,256,778 |
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Operating income (loss) |
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1,501,638 |
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174,689 |
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629,388 |
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(1,227,985 |
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Interest income |
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7,300 |
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9,563 |
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19,034 |
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37,280 |
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Interest expense |
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(122,057 |
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(363,878 |
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(1,418,118 |
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(1,091,498 |
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Gain on retirement of convertible note payable |
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— |
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3,088,230 |
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— |
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Income (loss) from continuing operations |
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1,386,881 |
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(179,626 |
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2,318,534 |
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(2,282,203 |
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Loss from discontinued operations |
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— |
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— |
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— |
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(262,843 |
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Net income (loss) |
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$ |
1,386,881 |
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$ |
(179,626 |
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$ |
2,318,534 |
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(2,545,046 |
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Net income (loss) available to common stockholders |
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$ |
1,323,422 |
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$ |
(211,514 |
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$ |
1,632,863 |
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(2,712,716 |
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Basic net income (loss) per share: |
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Income (loss) from continuing operations |
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$ |
0.05 |
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$ |
(0.01 |
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$ |
0.06 |
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$ |
(0.14 |
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Income (loss) from discontinued operations |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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Net income (loss) |
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$ |
0.05 |
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$ |
(0.01 |
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$ |
0.06 |
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$ |
(0.14 |
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Diluted net income (loss) per share: |
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Income (loss) from continuing operations |
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$ |
0.02 |
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$ |
(0.01 |
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$ |
0.05 |
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$ |
(0.14 |
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Income (loss) from discontinued operations |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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Net income (loss) |
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$ |
0.02 |
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$ |
(0.01 |
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$ |
0.05 |
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$ |
(0.14 |
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Weighted average common shares outstanding: |
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