INNOTRAC CORP - FORM 8-K - EX-99.1 - EXHIBIT 99.1

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8-K - FORM 8-K - INNOTRAC CORP	t70621_8k.htm

Exhibit 99.1

INNOTRAC CORPORATION

Condensed Statements of Operations

(in thousands, except per share amounts)

		Three Months Ended March 31, (Unaudited)
	2011			2010
Service revenue	$	17,287		$	16,028
Freight revenue		3,682			3,325
Total revenue		20,969			19,353

Cost of service revenues		7,752			7,346
Freight expense		3,638			3,291
Selling, general and
administrative expenses		9,208			8,802
Depreciation and amortization		851			848
Total operating expenses		21,449			20,287
Operating loss		(480	)		(934	)
Interest expense		46			39
Total other expense		46			39
Loss before income taxes		(526	)		(973	)
Income tax		-			-
Net loss	$	(526	)	$	(973	)

Loss per share:
Basic	$	(0.04	)	$	(0.08	)
Diluted	$	(0.04	)	$	(0.08	)

Weighted average shares
outstanding:
Basic		12,861			12,607
Diluted		12,861			12,607



	March 31, 2011		December 31, 2010
ASSETS	(Unaudited)
Current Assets:
Cash	$	729	$	238
Accounts receivable (net of allowance for doubtful accounts of $139 at March 31, 2011 and $242 at December 31, 2010)		16,213		15,279
Inventory		780		3,626
Prepaid expenses and other		1,240		1,149
Total current assets		18,962		20,292

Property and equipment, net		11,076		11,380
Other assets, net		1,143		1,122
Total assets	$	31,181	$	32,794

LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable	$	5,519	$	5,920
Line of credit		-		-
Accrued expenses and other		3,351		4,076
Total current liabilities		8,870		9,996

Noncurrent Liabilities:
Other non-current liabilities		1,611		1,499
Total noncurrent liabilities		1,611		1,499

Total shareholders' equity		20,700		21,299
Total liabilities and shareholders' equity	$	31,181	$	32,794

	INNOTRAC CORPORATION
	Condensed Statements of Cash Flows
	(in thousands)


	Three Months Ended March 31,
	(Unaudited)
	2011			2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(526	)	$	(973	)
Adjustments to net loss:
Depreciation and amortization		851			848
Provision for bad debts		22			(48	)
(Gain) loss on disposal of fixed assets		-			1
Stock compensation expense-stock options		1			(5	)
Stock compensation expense-restricted stock		(74	)		19
Decrease in other long-term assets		19			12
Increase in other long-term liabilities		103			108
Changes in working capital:
Accounts receivable, gross		(956	)		1,745
Inventory		2,846			(880	)
Prepaid assets and other		(61	)		757
Accounts payable, accrued expenses and other		(1,268	)		(566	)
Net cash provided by operating activities		957			1,018

CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		(365	)		(285	)
Net change in noncurrent assets and liabilities		(6	)		(8	)
Cash used in investing activities		(371	)		(293	)

CASH FLOWS FROM FINANCING ACTIVITIES:
Net repayments under line of credit		-			-
Capital lease payments		(65	)		(59	)
Loan fees paid		(30	)		-
Cash used in financing activities		(95	)		(59	)

Net increase in cash		491			666
Cash, beginning of period		238			1,118
Cash, end of period	$	729		$	1,784

INNOTRAC CORP - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - May 16, 2011