· |
Net loss for the full year 2016 improved from a loss of $38.26 million for the full year 2015 to a loss of $4.11 million for the full year 2016; Adjusted EBITDA for the full year 2016 improved from a $5.15 million loss for the full year 2015 to a $1.66 million loss for the full year 2016
|
· |
Net loss for Q4 2016 improved to a loss of $0.59 million from a loss of $3.82 million for Q4 2015; Adjusted EBITDA for Q4 2016 improved to a loss of $0.33 million from a loss of $2.02 million in Q4 2015
|
· |
Operational enhancements during 2016 resulted in a 44.7% reduction in cost of revenues, although revenues declined by 31.3%
|
Year Ended December 31,
|
||||||||
2016
|
2015
|
|||||||
(revised)
|
||||||||
Revenues:
|
||||||||
Membership fees and related services
|
$
|
16,254,932
|
$
|
24,530,170
|
||||
Lead generation
|
6,239,057
|
9,499,203
|
||||||
Recruitment services
|
2,931,642
|
3,123,537
|
||||||
Product sales and other
|
578,466
|
748,648
|
||||||
Consumer advertising and marketing solutions
|
222,969
|
280,043
|
||||||
Total revenues
|
26,227,066
|
38,181,601
|
||||||
Costs and expenses:
|
||||||||
Cost of revenues
|
3,082,467
|
5,576,184
|
||||||
Sales and marketing
|
13,315,008
|
22,501,594
|
||||||
General and administrative
|
11,332,640
|
15,670,331
|
||||||
Gain on litigation settlements, net
|
(1,240,297
|
)
|
-
|
|||||
Goodwill impairment expense
|
-
|
27,140,126
|
||||||
Depreciation and amortization
|
3,323,711
|
3,650,747
|
||||||
Loss on sale of property and equipment
|
-
|
34,147
|
||||||
Total costs and expenses
|
29,813,529
|
74,573,129
|
||||||
Loss from operations
|
(3,586,463
|
)
|
(36,391,528
|
)
|
||||
Other income (expense):
|
||||||||
Interest expense
|
(1,567,317
|
)
|
(84,728
|
)
|
||||
Interest and other income
|
8,532
|
26,532
|
||||||
Gain on settlement of debt
|
148,112
|
20,161
|
||||||
Other expense, net
|
(1,410,673
|
)
|
(38,035
|
)
|
||||
Change in fair value of warrant liability
|
(401,000
|
)
|
93,789
|
|||||
Loss before income tax expense (benefit)
|
(5,398,136
|
)
|
(36,335,774
|
)
|
||||
Income tax expense (benefit)
|
(1,289,634
|
)
|
1,919,497
|
|||||
Net loss
|
$
|
(4,108,502
|
)
|
$
|
(38,255,271
|
)
|
||
Net loss per common share, basic and diluted
|
$
|
(1.98
|
)
|
$
|
(21.99
|
)
|
||
Weighted average shares used in computing net loss per common share:
|
||||||||
Basic and diluted
|
2,076,724
|
1,739,824
|
December 31,
|
||||||||
2016
|
2015
|
|||||||
(revised)
|
||||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$
|
6,068,973
|
$
|
2,070,693
|
||||
Accounts receivable, net
|
2,170,529
|
2,510,530
|
||||||
Short-term investments
|
-
|
500,000
|
||||||
Incremental direct costs
|
423,023
|
1,023,916
|
||||||
Prepaid license fee
|
-
|
112,500
|
||||||
Prepaid expenses and other current assets
|
957,140
|
411,592
|
||||||
Total current assets
|
9,619,665
|
6,629,231
|
||||||
Property and equipment, net
|
277,534
|
444,398
|
||||||
Capitalized technology, net
|
173,368
|
456,523
|
||||||
Goodwill
|
20,201,190
|
20,201,190
|
||||||
Intangible assets, net
|
9,183,439
|
12,051,839
|
||||||
Merchant reserve
|
1,426,927
|
1,260,849
|
||||||
Security deposits
|
220,754
|
383,786
|
||||||
Other assets
|
35,000
|
-
|
||||||
Total assets
|
$
|
41,137,877
|
$
|
41,427,816
|
||||
Current Liabilities:
|
||||||||
Accounts payable
|
$
|
2,172,332
|
$
|
4,465,941
|
||||
Accrued expenses
|
962,172
|
837,712
|
||||||
Deferred revenue
|
5,485,599
|
9,966,893
|
||||||
Customer deposits
|
-
|
112,500
|
||||||
Promissory note
|
-
|
445,000
|
||||||
Total current liabilities
|
8,620,103
|
15,828,046
|
||||||
Deferred rent
|
55,718
|
45,155
|
||||||
Deferred tax liability
|
3,653,274
|
4,942,908
|
||||||
Other liabilities
|
33,159
|
426,267
|
||||||
Total liabilities
|
12,362,254
|
21,242,376
|
||||||
Commitments and contingencies
|
||||||||
Stockholders' Equity
|
||||||||
Common stock, $0.01 par value, 45,000,000 shares authorized,
3,623,899 shares and 1,815,232 shares issued as of December 31,
2016 and 2015, respectively, and 3,619,338 and 1,808,628 shares
outstanding as of December 31, 2016 and 2015, respectively
|
36,204
|
18,097
|
||||||
Additional paid in capital
|
76,234,772
|
63,554,194
|
||||||
Accumulated deficit
|
(47,458,236
|
)
|
(43,349,734
|
)
|
||||
Treasury stock, at cost; 1,048 shares at December 31, 2016 and 2015
|
(37,117
|
)
|
(37,117
|
)
|
||||
Total stockholders' equity
|
28,775,623
|
20,185,440
|
||||||
Total liabilities and stockholders' equity
|
$
|
41,137,877
|
$
|
41,427,816
|
|
Year Ended
|
|||||||
|
December 31,
|
|||||||
|
2016
|
2015
|
||||||
(Amount in thousands)
|
||||||||
Net loss
|
$
|
(4,109
|
)
|
$
|
(38,255
|
)
|
||
Goodwill impairment expense
|
-
|
27,140
|
||||||
Stock-based compensation expense
|
264
|
446
|
||||||
Gain on litigation settlements, net
|
(1,240
|
)
|
-
|
|||||
Gain on settlement of debt
|
(148
|
)
|
(20
|
)
|
||||
Gain on lease cancellation
|
(424
|
)
|
-
|
|||||
Depreciation and amortization
|
3,324
|
3,651
|
||||||
Change in fair value of warrant liability
|
401
|
(94
|
)
|
|||||
Interest expense
|
1,567
|
85
|
||||||
Interest and other income
|
(9
|
)
|
(27
|
)
|
||||
Income tax expense (benefit)
|
(1,290
|
)
|
1,919
|
|||||
Adjusted EBITDA
|
$
|
(1,664
|
)
|
$
|
(5,155
|
)
|
|
Three Months Ended
|
|||||||
|
December 31,
|
|||||||
|
2016
|
2015
|
||||||
(Amount in thousands)
|
||||||||
Net loss
|
$
|
(589
|
)
|
(3,817
|
)
|
|||
Goodwill impairment expense
|
-
|
396
|
||||||
Stock-based compensation expense
|
47
|
95
|
||||||
Gain on litigation settlements, net
|
(1,740
|
)
|
-
|
|||||
Gain on settlement of debt
|
(148
|
)
|
(20
|
)
|
||||
Depreciation and amortization
|
826
|
920
|
||||||
Interest expense
|
1,350
|
-
|
||||||
Interest and other income
|
(8
|
)
|
(1
|
)
|
||||
Income tax expense (benefit)
|
(72
|
)
|
410
|
|||||
Adjusted EBITDA
|
$
|
(334
|
)
|
(2,017
|
)
|