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8-K - interCLICK, Inc. | v164819_8k.htm |
interCLICK
Announces Record Results and Accelerated Growth in Q3
Revenue
Grows 150% Year-over-Year and 35% Sequentially
Supply
Chain Efficiencies Lead to Record Gross Profit and EBITDA
Company
Raises 2009 Full-Year Outlook and Issues Preliminary 2010
Guidance
NEW YORK
– November 4, 2009 – interCLICK, Inc. (OTC.BB: INRK), the leading ad network in
data and inventory transparency, announced today its results for the quarter
ended September 30, 2009. Earlier today, the Company announced that
it has been granted approval to list its common stock on The NASDAQ Capital
Market. Effective with the commencement of trading on Thursday,
November 5, 2009, interCLICK’s common stock will trade under the NASDAQ ticker
symbol “ICLK.”
Summary
Results
|
||||||||||||
$
in millions (except per share amounts)
|
||||||||||||
Q3 2009 | Q3 2008 |
Growth
|
||||||||||
Revenue
|
$ | 14.4 | $ | 5.8 | 150 | % | ||||||
Gross
profit
|
$ | 7.3 | $ | 1.7 | 315 | % | ||||||
Gross
margin
|
50.4 | % | 30.3 | % | ||||||||
EBITDA
|
$ | 1.4 | $ | (0.8 | ) |
nm
|
||||||
Free
Cash Flow
|
$ | 1.4 | $ | (1.0 | ) |
nm
|
||||||
Operating
income (loss)
|
$ | 0.7 | $ | (1.4 | ) |
nm
|
||||||
Net
earnings (loss)
|
$ | 0.3 | $ | (3.9 | ) |
nm
|
||||||
EPS
|
$ | 0.01 | $ | (0.20 | ) |
nm
|
||||||
See
reconciliation of GAAP to non-GAAP measures on attached financial
tables.
|
Revenue
was $14.4 million, up 150% year-over-year and 35% sequentially, an acceleration
from 26% sequential growth in the prior period. Growth was driven primarily by
increased demand from existing advertisers as well as strong penetration into
new key accounts. The Company previously forecasted that revenue
would exceed $12.5 million.
Gross
profit margin was 50.4%, 20.1 percentage points higher than the year-ago-period
and 5.6 percentage points higher sequentially. Gross margin expansion
continued to be driven by supply chain management improvements and efficiencies
generated through the Company’s advanced proprietary technology
platform.
Page 1 of
4
NEW
YORK CHICAGO LOS
ANGELES SAN
FRANCISCO WEST
PALM BEACH
contact
us. Phone: 646.722.6260 Fax: 646.304.6875 email: info@interclick.com or visit us
online at www.interclick.com
EBITDA, a
non-GAAP measure, was $1.4 million, compared to an EBITDA loss of $(0.8) million
in the year-ago period and up 637% sequentially compared to $0.2 million. Free
Cash Flow was $1.4 million, compared to negative Free Cash Flow of $(1.0)
million in the year-earlier period and up 924% sequentially compared to $0.1
million. Growth was driven by improved operating efficiencies leading
to a reduction in operating expenses as a percentage of revenue versus the prior
year period.
Operating
income was $0.7 million, net income was $0.3 million, and EPS was $0.01 per
share, compared to losses in the quarters ended September 30, 2008 and June 30,
2009.
“The
third quarter was another outstanding quarter for interCLICK,” said Michael
Mathews, interCLICK’s CEO. “Our dedication to effective supply chain
management continues to drive client satisfaction and differentiate us in the
marketplace. We look forward to ending the year strong and heading into
2010 with significant momentum.”
For the
nine months ended September 30, 2009, interCLICK had revenue of $33.5 million,
an increase of 139% compared to revenue of $14.0 million in the year-earlier
period. The Company generated gross profit of $16.0 million, an increase of 336%
compared to $3.7 million in the nine months ended September 30, 2008.
interCLICK recorded a net loss of $(0.7) million, or $(0.04) per share,
compared to a net loss of $(11.4) million, or $(0.62) per share in the same nine
months in 2008.
The
Company ended the third quarter with cash and cash equivalents of $1.9 million.
During the third quarter, the Company increased its credit facility with
Crestmark Commercial Capital Lending LLC from $5.5 million to $7.0 million. As
part of the amendment to the credit facility, Crestmark also agreed to reduce
the monthly servicing fee the Company was previously paying from 0.575% to
0.375%, which translates to a 300 basis point reduction in the Company’s
effective annualized cost of capital.
Business
Outlook
interCLICK
expects fourth quarter revenue to exceed $18 million, which would represent
year-over-year growth of 110%, and EBITDA to exceed $1.5 million. The
Company raised its full year revenue forecast to more than $51 million, an
increase of at least 125% compared to 2008, and full year EBITDA of at least $4
million. Previously, the Company had forecasted that full year revenue would
exceed $44 million.
The
Company announced preliminary guidance for 2010, including revenue growth of at
least 55% to $80 million, and EBITDA of at least $9 million.
Page 2 of
4
NEW
YORK CHICAGO LOS
ANGELES SAN
FRANCISCO WEST
PALM BEACH
contact
us. Phone: 646.722.6260 Fax: 646.304.6875 email: info@interclick.com or visit us
online at www.interclick.com
Conference
Call
The
Company will host a conference call to discuss its third quarter financial
results and business outlook on Wednesday, November 4, 2009, at 4:30 p.m.
(EST). The conference call can be accessed by dialing toll-free (888)
819-8033 (U.S.) or (913) 312-0709 (international). A live audiocast
of the conference call can be accessed from the Company’s website at http://www.interclick.com/MarketWatchV2.aspx. A
replay of the audiocast will be available through December 3, 2009.
Reclassifications
Certain
amounts in the accompanying financial tables have been reclassified to conform
to the third quarter 2009 presentation.
Non-GAAP
Financial Measures
The
Company uses non-GAAP financial measures in evaluating its financial and
operational decision making and as a means to evaluate period-to period
comparison. Company management believes that the non-GAAP financial measures
provide meaningful supplemental information regarding our performance and
liquidity by excluding certain expenses and expenditures that may not be
indicative of the performance of our core cash operations. The Company believes
that both management and investors benefit from referring to these non-GAAP
financial measures in assessing our performance and when planning, forecasting
and analyzing future periods. The Company believes these non-GAAP financial
measures are useful to investors because they allow for greater transparency
with respect to key metrics used by management.
EBITDA. As is common in the
industry, the Company uses EBITDA as a measure of performance to demonstrate
operating income exclusive of interest, taxes, depreciation, and amortization
including stock-based compensation. The Company, in its daily management of its
business affairs and analysis of its monthly, quarterly and annual performance,
makes certain of its decisions based on EBITDA and Free Cash Flow. Since an
outside investor may base its evaluation of the Company's performance on the
Company's net income or loss, there is a limitation to the EBITDA measurement.
EBITDA is not, and should not be considered, an alternative to net income or
loss, income or loss from operations or any other measure for determining
operating performance of liquidity, as determined under GAAP.
Free Cash Flow. Free Cash
Flow measures EBITDA less capital expenditures. Management believes that Free
Cash Flow provides meaningful information about the Company’s liquidity and
future cash availability to fund its operations. A limitation of using Free Cash
Flow versus the GAAP measure of net cash provided by operating activities is
that the Free Cash Flow does not represent the total increase or decreases in
the cash balance from operations for the period.
Page 3 of
4
NEW
YORK CHICAGO LOS
ANGELES SAN
FRANCISCO WEST
PALM BEACH
contact
us. Phone: 646.722.6260 Fax: 646.304.6875 email: info@interclick.com or visit us
online at www.interclick.com
To comply
with Regulation G of the Securities and Exchange Commission, interCLICK, Inc.
attaches to this press release and will post to the Company's website (www.interclick.com)
any reconciliations of certain non-GAAP measures to the nearest comparable GAAP
measures that are presented in this press release.
About interCLICK
interCLICK,
Inc. operates the interCLICK Network, an online advertising platform that
combines advanced behavioral targeting with complete data and inventory
transparency, allowing advertisers to identify and track their desired audience
on an unprecedented level. interCLICK offers advanced proprietary demographic,
behavioral, contextual, geographic and retargeting technologies across a network
of name brand publishers to ensure the right message is delivered to a precise
audience in a brand friendly environment. For more information about the
interCLICK Network, visit http://www.interclick.com.
Safe Harbor
This
press release contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 (the “Act”) including our
expectations regarding revenue growth and EBITDA for the fourth
quarter and full year 2009, and preliminary guidance for 2010 including revenue
growth and EBITDA. Additionally, words such as “seek,” “intend,” “believe,”
“plan,” “estimate,” “expect,” “anticipate” and other similar expressions are
forward-looking statements within the meaning of the Act. Some or all of the
events or results anticipated by these forward-looking statements may not occur.
Factors that could cause or contribute to such differences include the impact of
intense competition, the continuation or worsening of current economic
conditions and the condition of the domestic and global credit and capital
markets. Further information on interCLICK’s risk factors is contained in its
filings with the Securities and Exchange Commission, including the final
prospectus dated August 31, 2009. interCLICK does not undertake any duty nor
does it intend to update the results of these forward-looking
statements.
Contact
Roger
Clark, CFO
(646)
395-1776
roger.clark@interclick.com
Page 4 of
4 (Financial Tables Attached)
NEW
YORK CHICAGO LOS
ANGELES SAN
FRANCISCO WEST
PALM BEACH
contact
us. Phone: 646.722.6260 Fax: 646.304.6875 email: info@interclick.com or visit us
online at www.interclick.com
interCLICK,
Inc.
|
For
the Three
|
For
the Three
|
For
the Three
|
For
the Three
|
For
the Three
|
For
the Three
|
For
the Three
|
|||||||||||||||||||||
(formerly
Customer Acquisition Network Holdings, Inc.)
|
Months
Ended
|
Months
Ended
|
Months
Ended
|
Months
Ended
|
Months
Ended
|
Months
Ended
|
Months
Ended
|
|||||||||||||||||||||
Quarterly
Consolidated Statements of Operations: 1Q08 to 3Q09
|
Sept.
30, 2009
|
June
30, 2009
|
March
31, 2009
|
Dec.
31, 2008
|
Sept.
30, 2008
|
June
30, 2008
|
March
31, 2008
|
|||||||||||||||||||||
Revenues
|
$ | 14,395,236 | $ | 10,648,686 | $ | 8,423,291 | $ | 8,460,030 | $ | 5,756,707 | $ | 4,673,629 | $ | 3,561,967 | ||||||||||||||
Cost
of revenue
|
7,141,926 | 5,882,655 | 4,474,279 | 5,304,078 | 4,011,020 | 3,488,190 | 2,830,807 | |||||||||||||||||||||
Gross
profit
|
7,253,310 | 4,766,031 | 3,949,012 | 3,155,952 | 1,745,687 | 1,185,439 | 731,160 | |||||||||||||||||||||
Operating
expenses:
|
||||||||||||||||||||||||||||
Sales
and marketing
|
2,317,245 | 1,734,354 | 1,416,522 | 892,187 | 886,511 | 1,127,515 | 429,749 | |||||||||||||||||||||
General
and administrative
|
3,383,752 | 2,928,162 | 1,709,193 | 2,366,567 | 1,881,513 | 2,010,278 | 2,221,568 | |||||||||||||||||||||
Technology
support
|
830,626 | 765,674 | 552,803 | 336,836 | 294,559 | 246,769 | 298,252 | |||||||||||||||||||||
Amortization
of intangible assets
|
49,760 | 49,760 | 49,760 | 104,570 | 104,571 | 104,630 | 104,738 | |||||||||||||||||||||
Total
operating expenses
|
6,581,383 | 5,477,950 | 3,728,278 | 3,700,160 | 3,167,153 | 3,489,192 | 3,054,308 | |||||||||||||||||||||
Operating
income/(loss) from continuing operations
|
671,927 | (711,919 | ) | 220,734 | (544,208 | ) | (1,421,466 | ) | (2,303,753 | ) | (2,323,148 | ) | ||||||||||||||||
Other
income (expense):
|
||||||||||||||||||||||||||||
Interest
income
|
- | - | 12 | 2,192 | 8,140 | 3,329 | 3,433 | |||||||||||||||||||||
Loss
on settlement of debt
|
- | - | - | - | - | (20,121 | ) | - | ||||||||||||||||||||
Loss
on sale of available-for-sale securities
|
- | (36,349 | ) | - | - | (116,454 | ) | - | - | |||||||||||||||||||
Loss
on disposal of fixed assets
|
- | - | - | 1,750 | (15,385 | ) | - | - | ||||||||||||||||||||
Loss
on change in warrant derivative liability
|
(124,211 | ) | (159,294 | ) | (72,767 | ) | - | - | - | - | ||||||||||||||||||
Interest
expense
|
(245,854 | ) | (126,681 | ) | (113,592 | ) | (103,413 | ) | (189,382 | ) | (534,887 | ) | (698,616 | ) | ||||||||||||||
Total
other income (expense)
|
(370,065 | ) | (322,324 | ) | (186,347 | ) | (99,471 | ) | (313,081 | ) | (551,679 | ) | (695,183 | ) | ||||||||||||||
Income/(loss)
from continuing operations before income taxes
|
301,862 | (1,034,243 | ) | 34,387 | (643,679 | ) | (1,734,547 | ) | (2,855,432 | ) | (3,018,331 | ) | ||||||||||||||||
Income
tax benefit
|
- | - | - | 1,687,305 | - | - | - | |||||||||||||||||||||
Equity
in investee's loss, net of taxes
|
- | - | - | - | (404,103 | ) | (249,128 | ) | - | |||||||||||||||||||
Income/(loss)
from continuing operations
|
301,862 | (1,034,243 | ) | 34,387 | 1,043,626 | (2,138,650 | ) | (3,104,560 | ) | (3,018,331 | ) | |||||||||||||||||
Discontinued
operations:
|
||||||||||||||||||||||||||||
Loss
from discontinued operations, net of tax
|
- | - | - | 752,292 | (1,053,059 | ) | (218,187 | ) | (716,986 | ) | ||||||||||||||||||
Loss
on sale of discontinued operations, net of tax
|
- | - | (1,220 | ) | (2,448,147 | ) | (498,554 | ) | (624,981 | ) | - | |||||||||||||||||
Net
loss from discontinued operations
|
- | - | (1,220 | ) | (1,695,855 | ) | (1,551,613 | ) | (843,168 | ) | (716,986 | ) | ||||||||||||||||
Net
income/(loss)
|
301,862 | (1,034,243 | ) | 33,167 | (652,229 | ) | (3,690,263 | ) | (3,947,728 | ) | (3,735,317 | ) | ||||||||||||||||
Other
comprehensive loss:
|
||||||||||||||||||||||||||||
Loss
on sale of available-for-sale securities
|
- | - | - | - | (197,704 | ) | - | - | ||||||||||||||||||||
Net
loss from discontinued operations
|
- | - | - | (197,704 | ) | - | - | |||||||||||||||||||||
Comprehensive
income/(loss)
|
$ | 301,862 | $ | (1,034,243 | ) | $ | 33,167 | $ | (652,229 | ) | $ | (3,887,967 | ) | $ | (3,947,728 | ) | $ | (3,735,317 | ) | |||||||||
Loss
per share from continuing operations - basic and diluted
|
$ | 0.01 | $ | (0.05 | ) | $ | - | $ | 0.06 | $ | (0.12 | ) | $ | (0.17 | ) | $ | (0.17 | ) | ||||||||||
Loss
per share from discontinued operations - basic and diluted
|
$ | - | $ | - | $ | - | $ | (0.09 | ) | $ | (0.08 | ) | $ | (0.04 | ) | $ | (0.04 | ) | ||||||||||
Net
loss per share - basic and diluted
|
$ | 0.01 | $ | (0.05 | ) | $ | - | $ | (0.03 | ) | $ | (0.20 | ) | $ | (0.21 | ) | $ | (0.21 | ) | |||||||||
Weighted
average shares outstanding - basic
|
20,628,033 | 19,164,938 | 18,922,584 | 18,922,584 | 18,904,109 | 18,470,345 | 17,973,167 | |||||||||||||||||||||
Weighted
average shares outstanding - diluted
|
22,399,838 | 19,164,938 | 18,969,631 | 18,922,584 | 18,904,109 | 18,470,345 | 17,973,167 | |||||||||||||||||||||
Reconciliation
of non-GAAP results of operations measures to nearest comparable GAAP
measures.
|
||||||||||||||||||||||||||||
Operating
income/(loss) from continuing operations
|
671,927 | (711,919 | ) | 220,734 | (544,208 | ) | (1,421,466 | ) | (2,303,753 | ) | (2,323,148 | ) | ||||||||||||||||
Stock-based
compensation
|
600,141 | 777,173 | 576,570 | 524,160 | 439,768 | 503,090 | 474,173 | |||||||||||||||||||||
Amortization
of intangible assets
|
49,760 | 49,760 | 49,760 | 104,570 | 104,571 | 104,630 | 104,738 | |||||||||||||||||||||
Depreciation
|
77,917 | 74,978 | 72,386 | 72,817 | 66,448 | 49,476 | 56,747 | |||||||||||||||||||||
EBITDA
|
1,399,745 | 189,992 | 919,450 | 157,339 | (810,679 | ) | (1,646,556 | ) | (1,687,490 | ) | ||||||||||||||||||
Capital
expenditures
|
(12,968 | ) | (54,620 | ) | (19,263 | ) | (34,458 | ) | (151,398 | ) | (42,589 | ) | (128,561 | ) | ||||||||||||||
Free
Cash Flow
|
1,386,777 | 135,372 | 900,187 | 122,881 | (962,077 | ) | (1,689,145 | ) | (1,816,051 | ) |
interCLICK,
Inc.
|
||||||||||||||||||||||||||||
(formerly
Customer Acquisition Network Holdings, Inc.)
|
||||||||||||||||||||||||||||
Consolidated
Balance Sheet: 1Q08 to 3Q09
|
Sept.
30, 2009
|
Jun.
30, 2009
|
Mar.
31, 2009
|
Dec.
31, 2008
|
Sep.
30, 2008
|
Jun.
30, 2008
|
Mar.
31, 2008
|
|||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||
Current
assets:
|
||||||||||||||||||||||||||||
Cash
and cash equivalents
|
$ | 1,929,094 | $ | 2,784,986 | $ | 191,002 | $ | 183,871 | $ | 611,189 | $ | 448,024 | $ | 1,142,369 | ||||||||||||||
Accounts
receivable, gross
|
14,734,371 | 10,434,167 | 8,651,433 | 7,545,311 | 5,049,037 | 3,625,713 | 2,549,594 | |||||||||||||||||||||
Allowance
for doubtful accounts
|
(258,100 | ) | (185,032 | ) | (216,532 | ) | (425,000 | ) | (345,208 | ) | (201,248 | ) | (150,000 | ) | ||||||||||||||
Accounts
receivable, net of allowance
|
14,476,271 | 10,249,135 | 8,434,901 | 7,120,311 | 4,703,829 | 3,424,465 | 2,399,594 | |||||||||||||||||||||
Note
receivable
|
- | - | - | - | - | 1,000,000 | - | |||||||||||||||||||||
Due
from factor
|
1,114,698 | 1,034,712 | 798,424 | 637,705 | - | - | - | |||||||||||||||||||||
Prepaid
expenses and other current assets
|
373,505 | 372,187 | 186,851 | 94,164 | 205,796 | 43,291 | 78,329 | |||||||||||||||||||||
Total
current assets
|
17,893,568 | 14,441,020 | 9,611,178 | 8,036,051 | 5,520,814 | 4,915,780 | 3,620,292 | |||||||||||||||||||||
Property
and equipment, net
|
458,483 | 523,432 | 543,790 | 596,913 | 633,523 | 570,799 | 583,845 | |||||||||||||||||||||
Intangible
assets, net
|
460,833 | 510,593 | 560,353 | 610,113 | 714,683 | 819,254 | 923,883 | |||||||||||||||||||||
Goodwill
|
7,909,571 | 7,909,571 | 7,909,571 | 7,909,571 | 7,909,571 | 7,909,571 | 7,909,571 | |||||||||||||||||||||
Investment
in OPMG
|
728,572 | 728,572 | 1,650,000 | 1,650,000 | 1,694,000 | 3,500,872 | - | |||||||||||||||||||||
Deferred
deferred debt issue costs, gross
|
40,000 | 40,000 | 40,000 | 40,000 | - | - | 91,437 | |||||||||||||||||||||
Accumulated
amortization
|
(31,639 | ) | (28,250 | ) | (21,111 | ) | (6,667 | ) | - | - | (60,959 | ) | ||||||||||||||||
Deferred
debt issue costs, net
|
8,361 | 11,750 | 18,889 | 33,333 | - | - | 30,478 | |||||||||||||||||||||
Deferred
acquisition costs
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Other
assets
|
192,179 | 191,664 | 191,664 | 191,664 | 211,943 | 105,602 | 66,937 | |||||||||||||||||||||
Assets
held for sale - discontinued operations
|
- | - | - | - | - | - | 8,302,381 | |||||||||||||||||||||
Total
assets
|
$ | 27,651,567 | $ | 24,316,602 | $ | 20,485,445 | $ | 19,027,645 | $ | 16,684,534 | $ | 17,821,878 | $ | 21,437,387 | ||||||||||||||
Liabilities
and Stockholders’ Equity (Deficit)
|
||||||||||||||||||||||||||||
Current
liabilities:
|
||||||||||||||||||||||||||||
Accounts
payable
|
$ | 7,508,531 | $ | 6,372,241 | $ | 5,123,171 | $ | 5,288,807 | $ | 3,937,095 | $ | 2,711,468 | $ | 2,434,127 | ||||||||||||||
Line
of credit
|
5,559,011 | 5,160,291 | 3,992,119 | 3,188,425 | - | - | - | |||||||||||||||||||||
Senior
secured notes payable, net of debt discount
|
- | - | - | - | - | 1,652,754 | 4,549,164 | |||||||||||||||||||||
Note
Payable, current portion
|
- | 288,500 | 400,000 | 400,000 | 1,300,000 | - | - | |||||||||||||||||||||
Settlement
payable
|
- | - | - | 248,780 | 1,090,230 | - | - | |||||||||||||||||||||
Accrued
expenses
|
1,688,013 | 603,501 | 599,915 | 310,685 | 610,390 | 1,602,154 | 1,137,981 | |||||||||||||||||||||
Warrant
derivative liability
|
267,789 | 143,578 | 492,781 | - | - | - | - | |||||||||||||||||||||
Deferred
Revenue
|
151,465 | 143,548 | 95,098 | 9,972 | 100,935 | 83 | - | |||||||||||||||||||||
Accrued
interest expense
|
6,296 | 5,028 | 22,866 | 16,948 | 1,068 | 121,964 | 101,470 | |||||||||||||||||||||
Capital
lease obligation, current portion
|
10,239 | 10,098 | 9,959 | 10,615 | 10,319 | 10,319 | 9,290 | |||||||||||||||||||||
Deferred
rent, current portion
|
3,207 | 2,906 | 2,605 | - | - | - | - | |||||||||||||||||||||
Total
current liabilities
|
15,194,551 | 12,729,691 | 10,738,514 | 9,474,232 | 7,050,037 | 6,098,742 | 8,232,032 | |||||||||||||||||||||
Deferred
rent
|
83,062 | 81,047 | 79,033 | - | - | - | - | |||||||||||||||||||||
Capital
lease obligation
|
1,763 | 4,376 | 6,953 | 82,191 | 10,286 | 14,474 | 17,791 | |||||||||||||||||||||
Deferred
tax liability
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Liabilities
held for sale - discontinued operations
|
- | - | - | - | - | - | 768,631 | |||||||||||||||||||||
Total
liabilities
|
15,279,376 | 12,815,114 | 10,824,500 | 9,556,423 | 7,060,323 | 6,113,216 | 9,018,454 | |||||||||||||||||||||
Stockholders’
equity (deficit)
|
||||||||||||||||||||||||||||
Common
Stock, $0.001 par value
|
20,645 | 20,611 | 18,923 | 18,923 | 18,923 | 18,823 | 18,090 | |||||||||||||||||||||
Additional
paid-in capital
|
27,926,168 | 27,357,362 | 23,620,613 | 24,908,509 | 24,409,269 | 22,756,772 | 19,468,803 | |||||||||||||||||||||
Accumulated
other comprehensive loss
|
(1,061,354 | ) | (1,061,354 | ) | (197,704 | ) | (197,704 | ) | (197,704 | ) | - | - | ||||||||||||||||
Deferred
equity-based expense
|
- | - | - | - | - | (150,919 | ) | (99,676 | ) | |||||||||||||||||||
Accumulated
deficit
|
(14,513,268 | ) | (14,815,130 | ) | (13,780,887 | ) | (15,258,506 | ) | (14,606,277 | ) | (10,916,014 | ) | (6,968,284 | ) | ||||||||||||||
Total
stockholders’ equity
|
12,372,191 | 11,501,488 | 9,660,945 | 9,471,222 | 9,624,211 | 11,708,662 | 12,418,933 | |||||||||||||||||||||
Total
liabilities and stockholders’ equity
|
$ | 27,651,567 | $ | 24,316,602 | $ | 20,485,445 | $ | 19,027,645 | $ | 16,684,534 | $ | 17,821,878 | $ | 21,437,387 |
interCLICK,
Inc.
|
||||||||||||||||||||||||||||
(formerly
Customer Acquisition Network Holdings, Inc.)
|
For
the
|
For
the
|
For
the
|
For
the
|
For
the
|
For
the
|
For
the
|
|||||||||||||||||||||
Consolidated
Statement of Cash Flows: 1Q08 to 3Q09
|
Nine
Months Ended
|
Six
Months Ended
|
Three
Months Ended
|
Year
Ended
|
Nine
Months Ended
|
Six
Months Ended
|
Three
Months Ended
|
|||||||||||||||||||||
Sept.
30, 2009
|
Jun.
30. 2009
|
Mar.
31, 2009
|
Dec.
31, 2008
|
Sep.
30, 2008
|
Jun.
30, 2008
|
Mar.
31, 2008
|
||||||||||||||||||||||
Cash
flows from operating activities:
|
||||||||||||||||||||||||||||
Net
income (loss)
|
$ | (699,214 | ) | $ | (1,001,076 | ) | $ | 33,167 | $ | (12,025,539 | ) | $ | (11,373,310 | ) | $ | (7,683,047 | ) | $ | (3,735,317 | ) | ||||||||
Add
back loss from discontinued operations
|
1,220 | 1,220 | 1,220 | 4,807,622 | 3,111,767 | 1,560,154 | 716,986 | |||||||||||||||||||||
Income
(loss) from continuing operations
|
(697,994 | ) | (999,856 | ) | 34,387 | (7,217,917 | ) | (8,261,543 | ) | (6,122,893 | ) | (3,018,331 | ) | |||||||||||||||
Adjustments
to reconcile income (loss) from continuing
|
||||||||||||||||||||||||||||
operations
to net cash used in operating activities:
|
||||||||||||||||||||||||||||
Stock-based
compensation
|
1,953,884 | 1,353,743 | 576,570 | 3,063,009 | 1,441,240 | 976,553 | 474,174 | |||||||||||||||||||||
Change
in fair value of warrant derivative liability
|
356,272 | 232,061 | 72,767 | - | - | - | - | |||||||||||||||||||||
Amortization
of debt discount
|
12,000 | 500 | - | 1,239,061 | 1,239,061 | 1,118,242 | 676,248 | |||||||||||||||||||||
Equity
method pick up from investment
|
- | - | - | 653,231 | 653,231 | 249,128 | - | |||||||||||||||||||||
Amortization
of intangible assets
|
149,280 | 99,520 | 49,760 | 418,508 | 313,938 | 209,367 | 104,738 | |||||||||||||||||||||
Provision
for bad debts
|
(87,084 | ) | (160,392 | ) | (207,767 | ) | 414,737 | 252,236 | 102,236 | 4,800 | ||||||||||||||||||
Depreciation
|
225,282 | 147,364 | 72,386 | 245,489 | 172,671 | 106,223 | 53,461 | |||||||||||||||||||||
Common
stock issued for services
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Amortization
of deferred equity based expense
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Loss
on sale of marketable securities
|
36,349 | 36,349 | - | 116,454 | 116,454 | - | - | |||||||||||||||||||||
Write
off of deferred acquisition costs
|
- | - | - | 96,954 | 96,954 | 96,954 | 96,954 | |||||||||||||||||||||
Amortization
of debt issue costs
|
24,972 | 21,583 | 14,444 | 44,172 | 77,505 | 77,505 | 47,027 | |||||||||||||||||||||
Loss
on settlement of debt
|
- | - | - | 20,121 | 20,121 | 20,121 | - | |||||||||||||||||||||
Loss
on disposal of property and equipment
|
- | - | - | 13,635 | 15,385 | - | - | |||||||||||||||||||||
Changes
in operating assets and liabilities:
|
||||||||||||||||||||||||||||
Accounts
receivable
|
(7,268,876 | ) | (2,968,432 | ) | (1,106,823 | ) | (4,144,746 | ) | (1,565,763 | ) | (136,399 | ) | 985,908 | |||||||||||||||
Prepaid
expenses and other current assets
|
(155,341 | ) | (107,523 | ) | (92,687 | ) | (38,414 | ) | (150,046 | ) | 12,459 | (22,579 | ) | |||||||||||||||
Other
assets
|
(515 | ) | - | - | (124,727 | ) | (145,006 | ) | (38,665 | ) | - | |||||||||||||||||
Accounts
payable
|
2,219,724 | 1,083,434 | (165,636 | ) | 2,843,814 | 1,492,102 | 211,864 | (65,477 | ) | |||||||||||||||||||
Accrued
expenses
|
1,377,328 | 292,816 | 289,230 | (736,034 | ) | (436,329 | ) | 53,989 | (188,441 | ) | ||||||||||||||||||
Accrued
interest
|
2,614 | 1,346 | 5,918 | (19,225 | ) | (35,105 | ) | 85,791 | 65,297 | |||||||||||||||||||
Deferred
rent
|
13,573 | 11,257 | 8,942 | 72,696 | - | - | - | |||||||||||||||||||||
Deferred
revenue
|
141,493 | 133,576 | 85,126 | 9,972 | 100,935 | 83 | - | |||||||||||||||||||||
Net
cash used in operating activities
|
(1,697,039 | ) | (822,654 | ) | (363,383 | ) | (3,029,210 | ) | (4,601,959 | ) | (2,977,442 | ) | (786,221 | ) | ||||||||||||||
Cash
flows from investing activities:
|
||||||||||||||||||||||||||||
Purchases
of property & equipment
|
(86,852 | ) | (73,883 | ) | (19,263 | ) | (357,006 | ) | (322,548 | ) | (177,991 | ) | (138,275 | ) | ||||||||||||||
Proceeds
from sales of property & equipment
|
- | - | - | 13,000 | 13,000 | 13,000 | 13,000 | |||||||||||||||||||||
Acquisition
of business, net of cash acquired
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Proceeds
from sales of marketable securities
|
21,429 | 21,429 | - | 1,078,000 | 1,034,000 | - | - | |||||||||||||||||||||
Deferred
acquisition costs
|
- | - | - | (10,619 | ) | (10,619 | ) | (10,619 | ) | (10,619 | ) | |||||||||||||||||
Net
cash provided by investing activities
|
(65,423 | ) | (52,454 | ) | (19,263 | ) | 723,375 | 713,833 | (175,610 | ) | (135,894 | ) | ||||||||||||||||
Cash
flows from financing activities:
|
||||||||||||||||||||||||||||
Proceeds
from issuance of notes payable
|
- | - | - | 1,300,000 | 1,300,000 | - | - | |||||||||||||||||||||
Principal
payments on notes payable
|
(400,000 | ) | (100,000 | ) | - | (5,423,573 | ) | (4,523,573 | ) | (2,750,000 | ) | - | ||||||||||||||||
Proceeds
from common stock and warrants issued for cash
|
2,257,000 | 2,257,000 | - | 2,912,500 | 2,912,500 | 2,536,500 | 475,000 | |||||||||||||||||||||
Proceeds
from line of credit, net
|
1,893,593 | 1,574,859 | 642,975 | 2,550,720 | - | - | - | |||||||||||||||||||||
Debt
issue costs
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Proceeds
from convertible promissory notes
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Proceeds
from issuance of common stock to founders
|
- | - | - | - | - | - | - | |||||||||||||||||||||
Proceeds
from exercise of options and warrants
|
15,200 | - | - | - | - | - | - | |||||||||||||||||||||
Principal
payments on capital leases
|
(8,108 | ) | (5,636 | ) | (3,198 | ) | (8,497 | ) | (8,002 | ) | (3,814 | ) | (1,526 | ) | ||||||||||||||
Net
cash provided by financing activities
|
3,757,685 | 3,726,223 | 639,777 | 1,331,150 | (319,075 | ) | (217,314 | ) | 473,474 | |||||||||||||||||||
Cash
flows from discontinued operations:
|
||||||||||||||||||||||||||||
Cash
flows from operating activities
|
- | - | - | (1,933,382 | ) | (1,563,145 | ) | (1,251,172 | ) | (435,553 | ) | |||||||||||||||||
Cash
flows from investing activities-acquisition
|
- | - | - | (1,885,624 | ) | (1,885,624 | ) | (1,605,921 | ) | (1,648,920 | ) | |||||||||||||||||
Cash
flows from investing activities-divestiture
|
(250,000 | ) | (250,000 | ) | (250,000 | ) | 1,302,079 | 4,591,676 | 3,000,000 | - | ||||||||||||||||||
Net
cash used in discontinued operations
|
(250,000 | ) | (250,000 | ) | (250,000 | ) | (2,516,927 | ) | 1,142,907 | 142,907 | (2,084,473 | ) | ||||||||||||||||
Net
(decrease) increase in cash and cash equivalents
|
1,745,223 | 2,601,115 | 7,131 | (3,491,612 | ) | (3,064,294 | ) | (3,227,459 | ) | (2,533,114 | ) | |||||||||||||||||
Cash
and cash equivalents at beginning of period
|
183,871 | 183,871 | 183,871 | 3,675,483 | 3,675,483 | 3,675,483 | 3,675,483 | |||||||||||||||||||||
Cash
and cash equivalents at end of period
|
$ | 1,929,094 | $ | 2,784,986 | $ | 191,002 | $ | 183,871 | $ | 611,189 | $ | 448,024 | $ | 1,142,369 |