Annual report pursuant to Section 13 and 15(d)

Guarantor and Non-Guarantor Financial Statements (Notes)

v3.8.0.1
Guarantor and Non-Guarantor Financial Statements (Notes)
12 Months Ended
Mar. 31, 2018
Condensed Financial Information of Parent Company Only Disclosure [Abstract]  
Guarantor and Non-Guarantor Financial Statements
Guarantor and Non-Guarantor Financial Statements
On September 28, 2016, the Company sold to the Initial Purchaser, $16,000 principal amount of 8.75% convertible notes maturing on September 23, 2020, unless converted, repurchased or redeemed in accordance with their terms prior to such date. The Notes were issued under the Indenture, between Digital Turbine, Inc., US Bank National Association, as trustee, and certain wholly-owned subsidiaries of the Company, specifically Digital Turbine, Inc. as the parent Company, DT USA, DT Media, and DT APAC. Given the Notes are unconditionally guaranteed as to the payment of principal, premium, if any, and interest on a senior unsecured basis by four of the wholly-owned subsidiaries of the Company, the Company is required by SEC Reg S-X 210.3-10 to include, in a footnote, condensed consolidating financial information for the same periods with a separate column for:
The parent company;
The subsidiary guarantors on a combined basis;
Any other subsidiaries of the parent company on a combined basis;
Consolidating adjustments; and
The total consolidated amounts.
The following consolidated financial information and condensed consolidated financial information include:
(1) Condensed consolidated balance sheets as of March 31, 2018 and March 31, 2017; consolidated statements of operations and condensed consolidated statements of cash flows for the years ended March 31, 2018, 2017, and 2016; of (a) Digital Turbine, Inc. as the parent, (b) the guarantor subsidiaries, (c) the non-guarantor subsidiaries, and (d) Digital Turbine, Inc. on a consolidated basis; and
(2) Elimination entries necessary to consolidate Digital Turbine, Inc., as the parent, with its guarantor and non-guarantor subsidiaries.
Digital Turbine, Inc. owns 100% of all of the guarantor subsidiaries, and as a result, in accordance with Rule 3-10(d) of Regulation S-X promulgated by the SEC, no separate financial statements are required for these subsidiaries as of and for the years ended March 31, 2018, 2017, or 2016.
 
Consolidated Balance Sheet
as of March 31, 2018
(Unaudited)
 
 
 
 
 
 
 
 
 
(dollars in thousands)
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Consolidated Total
ASSETS
 
 
 
 
 
 
 
 
Current assets
 
 
 
 
 
 
 
 
Cash
 
501

 
11,800

 
419

 
12,720

Restricted cash
 
156

 
175

 

 
331

Accounts receivable, net of allowance of $512
 

 
16,777

 
273

 
17,050

Deposits
 
34

 
113

 
4

 
151

Prepaid expenses and other current assets
 
330

 
406

 
14

 
750

Current assets held for disposal
 

 
8,610

 
143

 
8,753

Total current assets
 
1,021

 
37,881

 
853

 
39,755

Property and equipment, net
 
257

 
2,485

 
15

 
2,757

Deferred tax assets
 
596

 

 

 
596

Intangible assets, net
 

 
1,231

 

 
1,231

Goodwill
 

 
41,268

 
1,000

 
42,268

TOTAL ASSETS
 
1,874

 
82,865

 
1,868

 
86,607

INTERCOMPANY
 
 
 
 
 
 
 
 
Intercompany payable/receivable, net
 
117,873

 
(114,234
)
 
(3,639
)
 

LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
 
Accounts payable
 
1,031

 
18,841

 
23

 
19,895

Accrued license fees and revenue share
 

 
7,989

 
243

 
8,232

Accrued compensation
 
2,285

 
661

 
20

 
2,966

Short-term debt, net of debt issuance costs and discounts of $205
 
1,445

 

 

 
1,445

Other current liabilities
 
911

 
231

 

 
1,142

Current liabilities held for disposal
 
 
 
12,246

 
480

 
12,726

Total current liabilities
 
5,672

 
39,968

 
766

 
46,406

Convertible notes, net of debt issuance costs and discounts of $1,827
 
3,873

 

 

 
3,873

Convertible note embedded derivative liability
 
4,676

 

 

 
4,676

Warrant liability
 
3,980

 

 

 
3,980

Other non-current liabilities
 

 

 

 

Non-current liabilities held for disposal
 

 

 

 

Total liabilities
 
18,201

 
39,968

 
766

 
58,935

Stockholders' equity
 
 
 
 
 
 
 
 
Preferred stock
 
 
 
 
 
 
 
 
Series A convertible preferred stock at $0.0001 par value; 2,000,000 shares authorized, 100,000 issued and outstanding (liquidation preference of $1,000)
 
100

 

 

 
100

Common stock
 
 
 
 
 
 
 
 
$0.0001 par value: 200,000,000 shares authorized; 76,843,278 issued and 76,108,822 outstanding at March 31, 2018.
 
10

 

 

 
10

Additional paid-in capital
 
318,066

 

 

 
318,066

Treasury stock (754,599 shares at December 31, 2017)
 
(71
)
 

 

 
(71
)
Accumulated other comprehensive loss
 
(15
)
 
(621
)
 
311

 
(325
)
Accumulated deficit
 
(216,544
)
 
(70,716
)
 
(2,848
)
 
(290,108
)
Total stockholders' equity
 
101,546

 
(71,337
)
 
(2,537
)
 
27,672

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 
119,747

 
(31,369
)
 
(1,771
)
 
86,607

Consolidated Balance Sheet
as of March 31, 2017
(Unaudited)
 
 
 
 
 
 
 
 
 
(dollars in thousands)
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Consolidated Total
ASSETS
 
 
 
 
 
 
 
 
Current assets
 
 
 
 
 
 
 
 
Cash
 
257

 
5,335

 
557

 
6,149

Restricted cash
 
156

 
175

 

 
331

Accounts receivable, net of allowance of $228
 

 
10,131

 
532

 
10,663

Deposits
 

 
121

 

 
121

Prepaid expenses and other current assets
 
282

 
165

 
1

 
448

Current assets held for disposal
 

 
5,671

 
282

 
5,953

Total current assets
 
695

 
21,598

 
1,372

 
23,665

Property and equipment, net
 
64

 
1,925

 
17

 
2,006

Cost method investment
 

 

 

 

Deferred tax assets
 
352

 

 

 
352

Intangible assets, net
 

 
2,647

 

 
2,647

Goodwill
 

 
41,268

 
1,000

 
42,268

Long-term assets held for disposal
 

 
36,642

 

 
36,642

TOTAL ASSETS
 
1,111

 
104,080

 
2,389

 
107,580

INTERCOMPANY
 
 
 
 
 
 
 
 
Intercompany payable/receivable, net
 
123,801

 
(119,493
)
 
(4,308
)
 

LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
 
Accounts payable
 
1,022

 
10,749

 
16

 
11,787

Accrued license fees and revenue share
 

 
2,979

 
32

 
3,011

Accrued compensation
 
33

 
487

 

 
520

Other current liabilities
 
768

 
273

 

 
1,041

Current liabilities held for disposal
 

 
14,097

 
318

 
14,415

Total current liabilities
 
1,823

 
28,585

 
366

 
30,774

Convertible notes, net of debt issuance costs and discounts of $6,315
 
9,685

 

 

 
9,685

Other non-current liabilities
 
697

 

 

 
697

Convertible note embedded derivative liability
 
3,218

 

 

 
3,218

Warrant liability
 
1,076

 

 

 
1,076

Non-current liabilities held for disposal
 

 
85

 

 
85

Total liabilities
 
16,499

 
28,670

 
366

 
45,535

Stockholders' equity
 
 
 
 
 
 
 
 
Preferred stock
 
 
 
 
 
 
 
 
Series A convertible preferred stock at $0.0001 par value; 2,000,000 shares authorized, 100,000 issued and outstanding (liquidation preference of $1,000)
 
100

 

 

 
100

Common stock
 
 
 
 
 
 
 
 
$0.0001 par value: 200,000,000 shares authorized; 67,329,262 issued and 66,594,806 outstanding at March 31, 2017
 
8

 

 

 
8

Additional paid-in capital
 
299,580

 

 

 
299,580

Treasury stock (754,599 shares at March 31, 2017)
 
(71
)
 

 

 
(71
)
Accumulated other comprehensive loss
 
(18
)
 
(613
)
 
310

 
(321
)
Accumulated deficit
 
(191,186
)
 
(43,470
)
 
(2,595
)
 
(237,251
)
Total stockholders' equity
 
108,413

 
(44,083
)
 
(2,285
)
 
62,045

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 
124,912

 
(15,413
)
 
(1,919
)
 
107,580


Consolidated Statement of Operations and Comprehensive Loss
For the year ended March 31, 2018
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
(dollars in thousands)
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Elimination
 
Consolidated Total
Net revenues
 

 
135,687

 
905

 
(61,841
)
 
74,751

Cost of revenues
 
 
 
 
 
 
 
 
 
 
License fees and revenue share
 

 
109,573

 
235

 
(61,841
)
 
47,967

Other direct cost of revenues
 

 
1,729

 

 

 
1,729

Total cost of revenues
 

 
111,302

 
235

 
(61,841
)
 
49,696

Gross profit
 

 
24,385

 
670

 

 
25,055

Operating expenses
 
 
 
 
 
 
 
 
 
 
Product development
 
46

 
9,448

 
159

 

 
9,653

Sales and marketing
 
630

 
5,007

 
450

 

 
6,087

General and administrative
 
10,971

 
3,767

 
386

 

 
15,124

Total operating expenses
 
11,647

 
18,222

 
995

 

 
30,864

Income / (loss) from operations
 
(11,647
)
 
6,163

 
(325
)
 

 
(5,809
)
Interest and other income / (expense), net
 
 
 
 
 
 
 
 
 
 
Interest income / (expense), net
 
(2,071
)
 
4

 

 

 
(2,067
)
Foreign exchange transaction gain / (loss)
 
2

 
(159
)
 
9

 

 
(148
)
Change in fair value of convertible note embedded derivative liability
 
(7,559
)
 

 

 

 
(7,559
)
Change in fair value of warrant liability
 
(3,208
)
 

 

 

 
(3,208
)
Gain / (loss) on extinguishment of debt
 
(1,787
)
 
2

 

 

 
(1,785
)
Other income / (expense)
 
3

 
(75
)
 

 

 
(72
)
Total interest and other income / (expense), net
 
(14,620
)
 
(228
)
 
9

 

 
(14,839
)
Income / (loss) from operations before income taxes
 
(26,267
)
 
5,935

 
(316
)
 

 
(20,648
)
Income tax benefit
 
(951
)
 

 

 

 
(951
)
Net income / (loss) from operations, net of taxes
 
(25,316
)
 
5,935

 
(316
)
 

 
(19,697
)
Discontinued operations, net of taxes
 
 
 
 
 
 
 
 
 
 
Income / (loss) from operations of discontinued components
 

 
(33,168
)
 
8

 

 
(33,160
)
Net income / (loss) from discontinued operations, net of taxes
 

 
(33,168
)
 
8

 

 
(33,160
)
Net loss
 
(25,316
)
 
(27,233
)
 
(308
)
 

 
(52,857
)
Other comprehensive loss
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustment
 

 
(4
)
 

 

 
(4
)
Comprehensive loss
 
(25,316
)
 
(27,237
)
 
(308
)
 

 
(52,861
)
Consolidated Statement of Operations and Comprehensive Loss
For the year ended March 31, 2017
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
(dollars in thousands)
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Elimination
 
Consolidated Total
Net revenues
 

 
70,703

 
1,126

 
(31,622
)
 
40,207

Cost of revenues
 
 
 
 
 
 
 
 
 
 
License fees and revenue share
 

 
57,936

 
60

 
(31,622
)
 
26,374

Other direct cost of revenues
 

 
1,518

 
1,057

 

 
2,575

Total cost of revenues
 

 
59,454

 
1,117

 
(31,622
)
 
28,949

Gross profit
 

 
11,249

 
9

 

 
11,258

Operating expenses
 
 
 
 
 
 
 
 
 
 
Product development
 
30

 
9,171

 
82

 

 
9,283

Sales and marketing
 
452

 
3,623

 
105

 

 
4,180

General and administrative
 
11,009

 
3,889

 
(132
)
 

 
14,766

Total operating expenses
 
11,491

 
16,683

 
55

 

 
28,229

Loss from operations
 
(11,491
)
 
(5,434
)
 
(46
)
 

 
(16,971
)
Interest and other income / (expense), net
 
 
 
 
 
 
 
 
 
 
Interest expense, net
 
(1,329
)
 
(1,296
)
 

 

 
(2,625
)
Foreign exchange transaction loss
 

 
(22
)
 
(4
)
 

 
(26
)
Change in fair value of convertible note embedded derivative liability
 
475

 

 

 

 
475

Change in fair value of warrant liability
 
147

 

 

 

 
147

Loss on extinguishment of debt
 

 
(293
)
 

 

 
(293
)
Other income / (expense)
 
58

 
(47
)
 

 

 
11

Total interest and other income / (expense), net
 
(649
)
 
(1,658
)
 
(4
)
 

 
(2,311
)
Loss from operations before income taxes
 
(12,140
)
 
(7,092
)
 
(50
)
 

 
(19,282
)
Income tax benefit
 
(144
)
 

 

 

 
(144
)
Net loss from operations, net of taxes
 
(11,996
)
 
(7,092
)
 
(50
)
 

 
(19,138
)
Discontinued operations, net of taxes
 
 
 
 
 
 
 
 
 
 
Income / (loss) from operations of discontinued components
 

 
(5,237
)
 
111

 

 
(5,126
)
Net income / (loss) from discontinued operations, net of taxes
 

 
(5,237
)
 
111

 

 
(5,126
)
Net income / (loss)
 
(11,996
)
 
(12,329
)
 
61

 

 
(24,264
)
Other comprehensive loss
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustment
 

 
(119
)
 

 

 
(119
)
Comprehensive income / (loss)
 
(11,996
)
 
(12,448
)
 
61

 

 
(24,383
)
Consolidated Statement of Operations and Comprehensive Loss
For the year ended March 31, 2016
(Unaudited)
 
 
 
 
 
 
 
 
 
(dollars in thousands)
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Consolidated Total
Net revenues
 

 
39,432

 
124

 
22,251

Cost of revenues
 
 
 
 
 
 
 
 
License fees and revenue share
 

 
30,619

 

 
13,314

Other direct cost of revenues
 

 
9,775

 
(2,298
)
 
7,477

Total cost of revenues
 

 
40,394

 
(2,298
)
 
20,791

Gross profit / (loss)
 

 
(962
)
 
2,422

 
1,460

Operating expenses
 
 
 
 
 
 
 
 
Product development
 
(582
)
 
4,943

 
522

 
4,883

Sales and marketing
 
46

 
2,718

 
144

 
2,908

General and administrative
 
11,457

 
4,182

 
564

 
16,203

Total operating expenses
 
10,921

 
11,843

 
1,230

 
23,994

Income / (loss) from operations
 
(10,921
)
 
(12,805
)
 
1,192

 
(22,534
)
Interest and other income / (expense), net
 
 
 
 
 
 
 
 
Interest income / (expense), net
 
1

 
(1,717
)
 

 
(1,716
)
Foreign exchange transaction loss
 
(6
)
 
(12
)
 
(6
)
 
(24
)
Other income / (expense)
 
18

 
(22
)
 

 
(4
)
Total interest and other income / (expense), net
 
13

 
(1,751
)
 
(6
)
 
(1,744
)
Income / (loss) from operations before income taxes
 
(10,908
)
 
(14,556
)
 
1,186

 
(24,278
)
Income tax provision
 
130

 
84

 

 
214

Net income / (loss) from operations, net of taxes
 
(11,038
)
 
(14,640
)
 
1,186

 
(24,492
)
Discontinued operations, net of taxes
 
 
 
 
 
 
 
 
Loss from operations of discontinued components
 

 
(923
)
 
(2,617
)
 
(3,540
)
Net loss from discontinued operations, net of taxes
 

 
(923
)
 
(2,617
)
 
(3,540
)
Net loss
 
(11,038
)
 
(15,563
)
 
(1,431
)
 
(28,032
)
Other comprehensive loss
 
 
 
 
 
 
 
 
Foreign currency translation adjustment
 

 
(150
)
 

 
(150
)
Comprehensive loss
 
(11,038
)
 
(15,713
)
 
(1,431
)
 
(28,182
)

Consolidated Statement of Cash Flows
For the year ended March 31, 2018
(Unaudited)
 
 
 
 
 
 
 
 
 
(dollars in thousands)
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Consolidated Total
Cash flows from operating activities
 
 
 
 
 
 
 
 
Net loss
 
(25,316
)
 
5,935

 
(316
)
 
(19,697
)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
 
 
 
 
 
Depreciation and amortization
 
21

 
2,629

 
10

 
2,660

Change in allowance for doubtful accounts
 

 
299

 

 
299

Amortization of debt discount and debt issuance costs
 
1,018

 

 

 
1,018

Stock-based compensation
 
2,844

 
(189
)
 

 
2,655

Stock-based compensation for services rendered
 
323

 

 

 
323

Change in fair value of convertible note embedded derivative liability
 
7,559

 

 

 
7,559

Change in fair value of warrant liability
 
3,208

 

 

 
3,208

Loss on extinguishment of debt
 
1,787

 
(2
)
 

 
1,785

(Increase) / decrease in assets:
 
 
 
 
 
 
 
 
Accounts receivable
 

 
(7,094
)
 
23

 
(7,071
)
Deposits
 
(34
)
 
8

 
(4
)
 
(30
)
Deferred tax assets
 
(244
)
 

 

 
(244
)
Prepaid expenses and other current assets
 
(85
)
 
(209
)
 
(12
)
 
(306
)
Increase / (decrease) in liabilities:
 
 
 
 
 
 
 
 
Accounts payable
 
8

 
8,092

 
8

 
8,108

Accrued license fees and revenue share
 

 
5,010

 
211

 
5,221

Accrued compensation
 
2,252

 
173

 
20

 
2,445

Accrued interest
 
(26
)
 

 

 
(26
)
Other current liabilities
 
6,078

 
(5,381
)
 
(619
)
 
78

Other non-current liabilities
 
(679
)
 
(16
)
 

 
(695
)
Net cash provided by / (used in) operating activities - continuing operations
 
(1,286
)
 
9,255

 
(679
)
 
7,290

Net cash provided by / (used in) operating activities - discontinued operations
 

 
(873
)
 
549

 
(324
)
Net cash used in operating activities
 
(1,286
)
 
8,382

 
(130
)
 
6,966

 
 
 
 
 
 
 
 
 
Cash flows from investing activities
 
 
 
 
 
 
 
 
Capital expenditures
 
(213
)
 
(1,770
)
 
(9
)
 
(1,992
)
Net cash provided by / (used in) investing activities - continuing operations
 
(213
)
 
(1,770
)
 
(9
)
 
(1,992
)
Net cash provided by / (used in) investing activities - discontinued operations
 

 
(142
)
 

 
(142
)
Net cash used in investing activities
 
(213
)
 
(1,912
)
 
(9
)
 
(2,134
)
 
 
 
 
 
 
 
 
 
Cash flows from financing activities
 
 
 
 
 
 
 
 
Proceeds from short-term borrowings
 
2,500

 

 

 
2,500

Repayment of debt obligations
 
(1,098
)
 

 

 
(1,098
)
Payment for debt issuance costs
 
(346
)
 

 

 
(346
)
Options exercised
 
337

 

 

 
337

Warrant exercised
 
350

 

 

 
350

Net cash provided in financing activities
 
1,743

 

 

 
1,743

 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash
 

 
(5
)
 
1

 
(4
)
 
 
 
 
 
 
 
 
 
Net change in cash
 
244

 
6,465

 
(138
)
 
6,571

 
 
 
 
 
 
 
 
 
Cash, beginning of period
 
257

 
5,335

 
557

 
6,149

 
 
 
 
 
 
 
 
 
Cash, end of period
 
501

 
11,800

 
419

 
12,720


Consolidated Statement of Cash Flows
For the year ended March 31, 2017
(Unaudited)
 
 
 
 
 
 
 
 
 
(dollars in thousands)
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Consolidated Total
Cash flows from operating activities
 
 
 
 
 
 
 
 
Net loss
 
(11,996
)
 
(7,092
)
 
(50
)
 
(19,138
)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
 
 
 
 
 
Depreciation and amortization
 
14

 
663

 
1,929

 
2,606

Change in allowance for doubtful accounts
 

 
33

 
15

 
48

Amortization of debt discount and debt issuance costs
 
1,256

 

 

 
1,256

Stock-based compensation
 
3,748

 
(386
)
 

 
3,362

Stock-based compensation for services rendered
 
398

 

 

 
398

Impairment of intangible assets
 

 

 
757

 
757

Change in fair value of convertible note embedded derivative liability
 
(475
)
 

 

 
(475
)
Change in fair value of warrant liability
 
(147
)
 

 

 
(147
)
Loss on extinguishment of debt
 

 
293

 

 
293

(Increase) / decrease in assets:
 
 
 
 
 
 
 
 
Restricted cash transferred to / (from) operating cash
 
(156
)
 
(177
)
 
2

 
(331
)
Accounts receivable
 
25

 
(3,076
)
 
(831
)
 
(3,882
)
Deposits
 

 
(57
)
 
80

 
23

Deferred tax assets
 
148

 

 

 
148

Prepaid expenses and other current assets
 
(80
)
 
150

 
11

 
81

Increase / (decrease) in liabilities:
 
 
 
 
 
 
 
 
Accounts payable
 
(233
)
 
4,701

 
(34
)
 
4,434

Accrued license fees and revenue share
 

 
(21
)
 
17

 
(4
)
Accrued compensation
 
575

 
(94
)
 
(96
)
 
385

Accrued interest
 
133

 
(97
)
 

 
36

Other current liabilities
 
(1,091
)
 
270

 
(502
)
 
(1,323
)
Other non-current liabilities
 
(31
)
 
(85
)
 

 
(116
)
Intercompany movement of cash
 
(15,146
)
 
16,684

 
(1,538
)
 

Net cash provided by / (used in) operating activities - continuing operations
 
(23,058
)
 
11,709

 
(240
)
 
(11,589
)
Net cash provided by / (used in) operating activities - discontinued operations
 

 
4,067

 
527

 
4,594

Net cash used in operating activities
 
(23,058
)
 
15,776

 
287

 
(6,995
)
 
 
 
 
 
 
 
 
 
Cash flows from investing activities
 
 
 
 
 
 
 
 
Capital expenditures
 

 
(1,418
)
 

 
(1,418
)
Proceeds from sale of cost method investment in Sift
 
999

 

 

 
999

Net cash provided by / (used in) investing activities - continuing operations
 
999

 
(1,418
)
 

 
(419
)
Net cash provided by / (used in) investing activities - discontinued operations
 

 
(177
)
 

 
(177
)
Net cash used in investing activities
 
999

 
(1,595
)
 

 
(596
)
 
 
 
 
 
 
 
 
 
Cash flows from financing activities
 
 
 
 
 
 
 
 
Cash received from issuance of convertible notes
 
16,000

 

 

 
16,000

Repayment of debt obligations
 

 
(11,000
)
 

 
(11,000
)
Payment for debt issuance costs
 
(407
)
 
(1,976
)
 

 
(2,383
)
Options exercised
 
11

 

 

 
11

Net cash provided in financing activities
 
15,604

 
(12,976
)
 

 
2,628

 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash
 

 
(336
)
 
217

 
(119
)
 
 
 
 
 
 
 
 
 
Net change in cash
 
(6,455
)
 
869

 
504

 
(5,082
)
 
 
 
 
 
 
 
 
 
Cash, beginning of period
 
6,712

 
4,466

 
53

 
11,231

 
 
 
 
 
 
 
 
 
Cash, end of period
 
257

 
5,335

 
557

 
6,149

Consolidated Statement of Cash Flows
For the year ended March 31, 2016
(Unaudited)
 
 
 
 
 
 
 
 
 
(dollars in thousands)
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Consolidated Total
Cash flows from operating activities
 
 
 
 
 
 
 
 
Net loss
 
(11,038
)
 
(14,640
)
 
1,186

 
(24,492
)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
 
 
 
 
 
 
Depreciation and amortization
 
9

 
9,707

 
(1,843
)
 
7,873

Change in allowance for doubtful accounts
 

 
(495
)
 

 
(495
)
Amortization of debt discount and debt issuance costs
 
470

 

 

 
470

Stock-based compensation
 
5,095

 

 

 
5,095

Stock-based compensation for services rendered
 
867

 

 

 
867

Stock issued for settlement of liability
 
283

 

 

 
283

(Increase) / decrease in assets:
 
 
 
 
 
 
 
 
Restricted cash transferred to / (from) operating cash
 
200

 

 

 
200

Accounts receivable
 
(24
)
 
(4,988
)
 
(85
)
 
(5,097
)
Deposits
 
9

 
74

 
(118
)
 
(35
)
Deferred tax assets
 
(418
)
 

 

 
(418
)
Prepaid expenses and other current assets
 
(171
)
 
111

 
39

 
(21
)
Increase / (decrease) in liabilities:
 
 
 
 
 
 
 
 
Accounts payable
 
(797
)
 
7,821

 
(3,644
)
 
3,380

Accrued license fees and revenue share
 

 
2,743

 
(30
)
 
2,713

Accrued compensation
 
(1,070
)
 
1,316

 
(1,346
)
 
(1,100
)
Accrued interest
 

 
12

 

 
12

Other current liabilities
 
(398
)
 
262

 
(670
)
 
(806
)
Intercompany movement of cash
 
(4,014
)
 
(2,475
)
 
6,489

 

Net cash provided by / (used in) operating activities - continuing operations
 
(10,997
)
 
(552
)
 
(22
)
 
(11,571
)
Net cash provided by / (used in) operating activities - discontinued operations
 

 
4,515

 
(13
)
 
4,502

Net cash used in operating activities
 
(10,997
)
 
3,963

 
(35
)
 
(7,069