· | Net loss decreased to approximately $1.3 million from approximately $31.8 million in the quarter ended September 30, 2015; adjusted EBITDA deficit shrank to $342,000 from $1,042,000 in the quarter ended September 30, 2015 |
· | Increased registered users by 399,000 from 8,552,000 to over 8,951,000 |
· | Created significant new partnerships, including with Abercrombie & Fitch and Sun Life Financial, while renewing partnerships with Novartis, NY Life and others |
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
(Unaudited)
|
(Revised)
|
(Unaudited)
|
(Revised)
|
|||||||||||||
Revenues
|
||||||||||||||||
Membership fees and related services
|
$
|
3,748,334
|
$
|
5,652,873
|
$
|
13,047,652
|
$
|
18,885,308
|
||||||||
Lead generation
|
1,554,370
|
2,334,276
|
4,489,919
|
7,853,402
|
||||||||||||
Recruitment services
|
954,887
|
830,250
|
2,295,556
|
2,432,951
|
||||||||||||
Product sales and other
|
52,857
|
330,769
|
544,440
|
631,198
|
||||||||||||
Consumer advertising and marketing
solutions |
49,719
|
73,011
|
176,771
|
209,097
|
||||||||||||
Total revenues
|
6,360,167
|
9,221,179
|
20,554,338
|
30,011,956
|
||||||||||||
Costs and expenses:
|
||||||||||||||||
Cost of revenues
|
745,159
|
1,464,214
|
2,433,550
|
4,647,520
|
||||||||||||
Sales and marketing
|
3,064,454
|
5,132,077
|
10,314,145
|
17,226,640
|
||||||||||||
General and administrative
|
3,010,862
|
3,748,138
|
9,428,493
|
11,593,955
|
||||||||||||
Impairment expense
|
-
|
26,744,249
|
-
|
26,744,249
|
||||||||||||
Depreciation and amortization
|
819,894
|
925,684
|
2,498,136
|
2,730,880
|
||||||||||||
Loss on sale of property and equipment
|
-
|
32,649
|
-
|
32,649
|
||||||||||||
Total costs and expenses
|
7,640,369
|
38,047,011
|
24,674,324
|
62,975,893
|
||||||||||||
Loss from operations
|
(1,280,202
|
)
|
(28,825,832
|
)
|
(4,119,986
|
)
|
(32,963,937
|
)
|
||||||||
Other (expense) income
|
||||||||||||||||
Interest expense
|
(215,781
|
)
|
(9,229
|
)
|
(216,948
|
)
|
(84,339
|
)
|
||||||||
Interest and other income
|
150
|
2,382
|
801
|
25,566
|
||||||||||||
Other income (expense), net
|
(215,631
|
)
|
(6,847
|
)
|
(216,147
|
)
|
(58,773
|
)
|
||||||||
Change in fair value of warrant liability
|
(401,000
|
)
|
2,224
|
(401,000
|
)
|
93,784
|
||||||||||
Loss before income tax benefit
|
(1,896,833
|
)
|
(28,830,455
|
)
|
(4,737,133
|
)
|
(32,928,926
|
)
|
||||||||
Income tax expense (benefit)
|
(623,699
|
)
|
2,976,217
|
(1,218,092
|
)
|
1,509,395
|
||||||||||
Net loss
|
$
|
(1,273,134
|
)
|
$
|
(31,806,672
|
)
|
$
|
(3,519,041
|
)
|
$
|
(34,438,321
|
)
|
||||
Net loss per common share, basic and
diluted |
$
|
(0.70
|
)
|
$
|
(17.59
|
)
|
$
|
(1.94
|
)
|
$
|
(20.05
|
)
|
||||
per common share:
Weighted average shares used in
computing net loss |
||||||||||||||||
Basic and diluted
|
1,809,676
|
1,808,099
|
1,809,676
|
1,717,816
|
September 30,
|
December 31,
|
|||||||
2016
|
2015
|
|||||||
(Unaudited)
|
(Revised)
|
|||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$
|
515,963
|
$
|
2,070,693
|
||||
Accounts receivable, net
|
1,839,474
|
2,510,530
|
||||||
Short-term investments
|
-
|
500,000
|
||||||
Incremental direct costs
|
547,616
|
1,023,916
|
||||||
Prepaid license fee
|
-
|
112,500
|
||||||
Prepaid expenses and other current assets
|
229,689
|
411,592
|
||||||
Total current assets
|
3,132,742
|
6,629,231
|
||||||
Property and equipment, net
|
313,622
|
444,398
|
||||||
Capitalized technology, net
|
240,463
|
456,523
|
||||||
Goodwill
|
20,201,190
|
20,201,190
|
||||||
Intangible assets, net
|
9,900,539
|
12,051,839
|
||||||
Merchant reserve
|
1,426,927
|
1,260,849
|
||||||
Security deposits
|
189,375
|
383,786
|
||||||
Other assets
|
1,049,026
|
-
|
||||||
Total assets
|
$
|
36,453,884
|
$
|
41,427,816
|
||||
Current Liabilities:
|
||||||||
Accounts payable
|
$
|
5,359,151
|
$
|
4,465,941
|
||||
Accrued expenses
|
1,519,491
|
837,712
|
||||||
Deferred revenue
|
6,406,542
|
9,966,893
|
||||||
Customer deposits
|
-
|
112,500
|
||||||
Promissory note
|
445,000
|
445,000
|
||||||
Total current liabilities
|
13,730,184
|
15,828,046
|
||||||
Deferred tax liability
|
3,724,816
|
4,942,908
|
||||||
Line of credit – Master Credit Facility, net of unamortized debt issuance costs
|
827,679
|
-
|
||||||
Deferred rent
|
55,434
|
45,155
|
||||||
Other liabilities
|
47,367
|
426,267
|
||||||
Total liabilities
|
18,385,480
|
21,242,376
|
||||||
Commitments and contingencies
|
||||||||
Stockholders' Equity
|
||||||||
Common stock, $0.01 par value; 45,000,000 shares authorized; 1,815,232
shares issued as of September 30, 2016 and December 31, 2015; and 1,808,628 shares outstanding as of September 30, 2016 and December 31, 2015 |
18,097
|
18,097
|
||||||
Additional paid in capital
|
64,956,199
|
63,554,194
|
||||||
Accumulated deficit
|
(46,868,775
|
)
|
(43,349,734
|
)
|
||||
Treasury stock, at cost; 1,048 shares at September 30, 2016 and
December 31, 2015 |
(37,117
|
)
|
(37,117
|
)
|
||||
Total stockholders' equity
|
18,068,404
|
20,185,440
|
||||||
Total liabilities and stockholders' equity
|
$
|
36,453,884
|
$
|
41,427,816
|
(Amounts in thousands)
|
||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Net loss
|
$
|
(1,273
|
)
|
$
|
(31,807
|
)
|
$
|
(3,519
|
)
|
$
|
(34,438
|
)
|
||||
Impairment expense
|
-
|
26,744
|
-
|
26,744
|
||||||||||||
Stock-based compensation expense
|
118
|
114
|
218
|
351
|
||||||||||||
Depreciation and amortization
|
820
|
926
|
2,498
|
2,731
|
||||||||||||
Litigation settlement
|
-
|
-
|
500
|
-
|
||||||||||||
Gain on lease cancellation
|
-
|
-
|
(424
|
)
|
-
|
|||||||||||
Change in fair value of warrant liability
|
401
|
(2
|
)
|
401
|
(94
|
)
|
||||||||||
Interest expense
|
216
|
9
|
217
|
84
|
||||||||||||
Interest and other income
|
-
|
(2
|
)
|
(1
|
)
|
(26
|
)
|
|||||||||
Income tax expense (benefit)
|
(624
|
)
|
2,976
|
(1,218
|
)
|
1,509
|
||||||||||
Adjusted EBITDA
|
$
|
(342
|
)
|
$
|
(1,042
|
)
|
$
|
(1,328
|
)
|
$
|
(3,139
|
)
|