Current Report Filing (8-k)
February 08 2016 - 3:23PM
Edgar (US Regulatory)
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to
Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 8, 2016
INTRUSION INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware |
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000-20191 |
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75-1911917 |
(State or Other Jurisdiction of Incorporation) |
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(Commission File Number) |
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(IRS Employer Identification No.) |
1101 East Arapaho Road, Sutie 200, Richardson, Texas |
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75081 |
(Address of Principal Executive Offices) |
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(Zip Code) |
(972) 234-6400
(Registrants Telephone Number, Including Area Code)
NOT APPLICABLE
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
The following information is furnished pursuant to Item 2.02, Disclosure of Results of Operations and Financial Condition.
On February 8, 2016, Intrusion Inc. issued a press release announcing its financial results for the fourth quarter ended December 31, 2015. A copy of the press release is attached as Exhibit 99.1 hereto and incorporated herein by reference.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits
99.1 Press release issued by Intrusion Inc. on February 8, 2016.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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INTRUSION INC. |
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Dated: February 8, 2016 |
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By: |
/s/ MICHAEL L. PAXTON |
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Michael L. Paxton |
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Chief Financial Officer |
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EXHIBIT INDEX
Exhibit No. |
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Description of Exhibit |
99.1 |
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Press release issued by Intrusion Inc. on February 8, 2016. |
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Exhibit 99.1
NEWS RELEASE |
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1101 East Arapaho Road
Suite 200
Richardson TX 75081 USA
(972) 234-6400 main
Financial Contact
Michael L. Paxton, VP, CFO
972.301.3658, mpaxton@intrusion.com
INTRUSION INC. ANNOUNCES 2015
FOURTH QUARTER AND ANNUAL RESULTS
Richardson, Texas February 8, 2016 Intrusion Inc. (OTCQB: INTZ), (Intrusion) today announced financial results for the quarter and year ended December 31, 2015.
Intrusions net loss for the fourth quarter 2015 was $0.5 million, compared to a net loss of $0.1 million for the fourth quarter 2014. Net loss for the year 2015 was $1.2 million, compared to a net loss of $0.3 million for 2014.
Revenue for the fourth quarter 2015 was $1.5 million, compared to $1.8 million in the fourth quarter 2014. Revenue for the year 2015 was $6.8 million, compared to $7.2 million in 2014.
Gross profit margin decreased to 63% of revenue in the fourth quarter of 2015, compared to 65% of revenue in the fourth quarter 2014. For the year, the gross profit margin decreased to 63%, compared to 65% in 2014.
Intrusions fourth quarter 2015 operating expenses were $1.4 million, compared to $1.3 million in the fourth quarter 2014. For the year 2015, operating expenses were $5.4 million, compared to $4.9 million in 2014. Operating expenses increased due to planned increases in research and development, and sales and marketing expenses.
As of December 31, 2015, Intrusion reported cash and cash equivalents of $0.1 million, a working capital deficiency of $0.8 million, and debt of $1.9 million. As of December 31, 2014, Intrusion reported cash and cash equivalents of $1.0 million, working capital of $0.4 million and debt of $1.8 million.
During the fourth quarter 2015, we booked $1.9 million of orders compared to $1.4 million in the fourth quarter 2014. Orders totaled $7.4 million in 2015 compared to $7.1 million in 2014. Savant orders totaled $1.3 million in 2015 compared to $0.9 million in 2014. Of the Savant orders, $1.1 million were through resell partners in 2015 compared to $0.9 million in 2014, stated G. Ward Paxton, Chairman, President and CEO of Intrusion.
Intrusions management will host its regularly scheduled quarterly conference call to discuss the Companys financial and operational progress at 4:00 P.M., CST today. Interested investors can access the call at 1-877-258-4925. For those unable to participate in the live conference call, a replay will be accessible beginning today at 7:00 P.M., CST until February 15, 2016 by calling 1-855-859-2056 or 1-404-537-3406. At the replay prompt, enter conference identification number 47380119. Additionally, a live and archived audio webcast of the conference call will be available at www.intrusion.com.
About Intrusion Inc.
Intrusion Inc. is a global provider of entity identification systems, advanced persistent threat identification, high speed data mining, regulated information compliance, data leak prevention and data privacy protection, and network intrusion prevention and detection products. Intrusions product families include TraceCop for entity identification, Savant for advanced persistent threats and network data mining, Compliance Commander for regulated information compliance, data leak prevention and data privacy protection, and Intrusion SecureNet for network intrusion prevention and detection. Intrusions products help protect critical information assets by quickly detecting, protecting, analyzing and reporting attacks or misuse of classified, private and regulated information for government and enterprise networks. For more information, please visit www.intrusion.com.
This release may contain certain forward-looking statements, which reflect managements expectations regarding future events and operating performance and speak only as of the date hereof. These forward-looking statements involve a number of risks and uncertainties. Such statements include, without limitations, statements regarding future revenue growth and profitability, the difficulties in forecasting future sales caused by current economic and market conditions, the effects of sales and implementation cycles for our products on our quarterly results and difficulties in accurately estimating market growth, the effect of military actions on government and corporate spending on information security products, spending patterns of, and appropriations to, U.S. government departments, as well as other statements. These statements are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements. The factors that could cause actual results to differ materially from expectations are detailed in the Companys most recent reports on Form 10-K and Form 10-Q, particularly under the heading Risk Factors.
2
INTRUSION INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands except par value amounts)
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December 31, |
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December 31, |
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2015 |
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2014 |
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ASSETS |
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Current Assets: |
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Cash and cash equivalents |
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$ |
102 |
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$ |
1,006 |
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Accounts receivable |
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580 |
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737 |
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Inventories, net |
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45 |
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12 |
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Prepaid expenses |
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69 |
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105 |
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Total current assets |
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796 |
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1,860 |
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Property and equipment, net |
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486 |
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391 |
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Other assets |
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43 |
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61 |
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TOTAL ASSETS |
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$ |
1,325 |
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$ |
2,312 |
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LIABILITIES AND STOCKHOLDERS DEFICIT |
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Current Liabilities: |
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Accounts payable and accrued expenses |
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$ |
840 |
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$ |
862 |
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Dividends payable |
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160 |
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20 |
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Obligations under capital lease, current portion |
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197 |
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145 |
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Deferred revenue |
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386 |
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442 |
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Total current liabilities |
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1,583 |
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1,469 |
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Loan payable to officer |
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1,530 |
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1,530 |
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Obligations under capital lease, noncurrent portion |
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139 |
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130 |
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Stockholders Deficit: |
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Preferred stock, $.01 par value: |
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Authorized shares 5,000 |
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Series 1 shares issued/outstanding200 in 2015 and 2014 Liquidation preference of $1,063 as of December 31, 2015 |
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707 |
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707 |
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Series 2 shares issued/outstanding460 in 2015 and 2014 Liquidation preference of $1,212 as of December 31, 2015 |
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724 |
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724 |
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Series 3 shares issued/outstanding289 in 2015 and 2014 Liquidation preference of $665 as of December 31, 2015 |
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412 |
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412 |
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Common stock, $.01 par value: |
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Authorized shares 80,000 |
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Issued shares 12,622 in 2015 and 12,471 in 2014 Outstanding shares 12,612 in 2015 and 12,461 in 2014 |
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126 |
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125 |
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Common stock held in treasury, at cost 10 shares |
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(362 |
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(362 |
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Additional paid-in capital |
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56,520 |
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56,382 |
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Accumulated deficit |
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(59,947 |
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(58,698 |
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Accumulated other comprehensive loss |
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(107 |
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(107 |
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Total stockholders deficit |
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(1,927 |
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(817 |
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TOTAL LIABILITIES AND STOCKHOLDERS DEFICIT |
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$ |
1,325 |
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$ |
2,312 |
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INTRUSION INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share amounts)
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Three Months Ended December 31, |
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Year Ended December 31, |
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2015 |
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2014 |
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2015 |
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2014 |
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Revenue |
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$ |
1,489 |
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$ |
1,790 |
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$ |
6,824 |
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$ |
7,219 |
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Cost of revenue |
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546 |
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633 |
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2,530 |
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2,532 |
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Gross profit |
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943 |
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1,157 |
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4,294 |
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4,687 |
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Operating expenses: |
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Sales and marketing |
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463 |
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490 |
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1,894 |
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1,735 |
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Research and development |
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674 |
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499 |
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2,315 |
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1,941 |
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General and administrative |
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281 |
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273 |
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1,227 |
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1,232 |
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Operating income (loss) |
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(475 |
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(105 |
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(1,142 |
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(221 |
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Interest expense, net |
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(28 |
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(24 |
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(107 |
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(107 |
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Other income (expense) |
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54 |
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Income (loss) before income taxes |
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(503 |
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(129 |
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(1,249 |
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(274 |
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Income tax provision |
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Net income (loss) |
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$ |
(503 |
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$ |
(129 |
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$ |
(1,249 |
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$ |
(274 |
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Preferred stock dividends accrued |
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(35 |
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(35 |
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(139 |
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(141 |
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Net income (loss) attributable to common stockholders |
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$ |
(538 |
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$ |
(164 |
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$ |
(1,388 |
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$ |
(415 |
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Net income (loss) per share attributable to common stockholders: |
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Basic |
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$ |
(0.04 |
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$ |
(0.01 |
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$ |
(0.11 |
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$ |
(0.03 |
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Diluted |
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$ |
(0.04 |
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$ |
(0.01 |
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$ |
(0.11 |
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$ |
(0.03 |
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Weighted average common shares outstanding: |
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Basic |
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12,612 |
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12,432 |
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12,598 |
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12,393 |
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Diluted |
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12,612 |
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12,432 |
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12,598 |
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12,393 |
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