Quarterly report pursuant to Section 13 or 15(d)

Guarantor and Non-Guarantor Financial Statements

v3.10.0.1
Guarantor and Non-Guarantor Financial Statements
9 Months Ended
Dec. 31, 2018
Condensed Financial Information 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, as amended and supplemented to date, between Digital Turbine, Inc., US Bank National Association, as trustee, and certain wholly-owned subsidiaries of the Company, specifically DT USA, DT Media, DT EMEA, 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, 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 includes:
(1) Consolidated balance sheets as of December 31, 2018 and March 31, 2018; consolidated statements of operations for the three and nine months ended December 31, 2018 and 2017; and consolidated statements of cash flows for the nine months ended December 31, 2018 and 2017 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 three and nine months ended December 31, 2018 or 2017.

Consolidated Balance Sheet
as of December 31, 2018 (Unaudited)
(in thousands, except par value and share amounts)
 
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Consolidated Total
ASSETS
 
 
 
 
 
 
 
 
Current assets
 
 
 
 
 
 
 
 
Cash
 
$
216

 
$
9,777

 
$
107

 
$
10,100

Restricted cash
 
256

 
175

 

 
431

Accounts receivable, net of allowance of $937
 

 
24,069

 
152

 
24,221

Deposits
 
34

 
113

 
14

 
161

Prepaid expenses and other current assets
 
357

 
815

 
142

 
1,314

Current assets held for disposal
 

 
3,435

 
(1
)
 
3,434

Total current assets
 
863

 
38,384

 
414

 
39,661

Property and equipment, net
 
764

 
2,531

 
5

 
3,300

Deferred tax assets
 
439

 

 

 
439

Intangible assets, net
 
1

 
225

 

 
226

Goodwill
 
1,065

 
40,201

 
1,000

 
42,266

TOTAL ASSETS
 
$
3,132

 
$
81,341

 
$
1,419

 
$
85,892

INTERCOMPANY
 
 
 
 
 
 
 
 
Intercompany payable / (receivable), net
 
111,398

 
(94,427
)
 
(16,971
)
 

LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
 
 
Accounts payable
 
$
674

 
$
21,866

 
$
12

 
$
22,552

Accrued license fees and revenue share
 

 
11,369

 
122

 
11,491

Accrued compensation
 
954

 
628

 
32

 
1,614

Short-term debt, net of debt issuance costs and discounts of $78
 
1,522

 

 

 
1,522

Other current liabilities
 
1,076

 
684

 
42

 
1,802

Current liabilities held for disposal
 

 
5,264

 
166

 
5,430

Total current liabilities
 
4,226

 
39,811

 
374

 
44,411

Convertible notes, net of debt issuance costs and discounts of $1,402
 
3,298

 

 

 
3,298

Convertible note embedded derivative liability
 
3,113

 

 

 
3,113

Warrant liability
 
3,135

 

 

 
3,135

Other non-current liabilities
 
182

 

 

 
182

Total liabilities
 
13,954

 
39,811

 
374

 
54,139

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; 78,459,070 issued and 77,704,471 outstanding at December 31, 2018
 
10

 

 

 
10

Additional paid-in capital
 
321,297

 

 

 
321,297

Treasury stock (754,599 shares at December 31, 2018)
 
(71
)
 

 

 
(71
)
Accumulated other comprehensive loss
 
30

 
(1,489
)
 
1,136

 
(323
)
Accumulated deficit
 
(220,790
)
 
(51,408
)
 
(17,062
)
 
(289,260
)
Total stockholders' equity
 
100,576

 
(52,897
)
 
(15,926
)
 
31,753

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 
$
114,530

 
$
(13,086
)
 
$
(15,552
)
 
$
85,892


Consolidated Balance Sheet
as of March 31, 2018
(in thousands, except par value and share amounts)
 
 
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

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 March 31, 2018)
 
(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 Statement of Operations and Comprehensive Loss
for the three months ended December 31, 2018 (Unaudited)
(in thousands, except par value and share amounts)
 
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Elimination
 
Consolidated Total
Net revenues
 
$

 
$
54,843

 
$
248

 
$
(24,680
)
 
$
30,411

Cost of revenues
 
 
 
 
 
 
 
 
 
 
License fees and revenue share
 

 
44,050

 
(175
)
 
(24,680
)
 
19,195

Other direct cost of revenues
 

 
538

 

 

 
538

Total cost of revenues
 

 
44,588

 
(175
)
 
(24,680
)
 
19,733

Gross profit
 

 
10,255

 
423

 

 
10,678

Operating expenses
 
 
 
 
 
 
 
 
 
 
Product development
 
84

 
2,233

 
111

 

 
2,428

Sales and marketing
 
121

 
1,635

 
206

 

 
1,962

General and administrative
 
3,126

 
706

 

 

 
3,832

Total operating expenses
 
3,331

 
4,574

 
317

 

 
8,222

Income / (loss) from operations
 
(3,331
)
 
5,681

 
106

 

 
2,456

Interest and other income / (expense), net
 
 
 
 
 
 
 
 
 
 
Interest expense
 
(118
)
 
(76
)
 

 

 
(194
)
Foreign exchange transaction gain / (loss)
 
1

 
2

 
(5
)
 

 
(2
)
Change in fair value of convertible note embedded derivative liability
 
(1,476
)
 

 

 

 
(1,476
)
Change in fair value of warrant liability
 
(1,651
)
 

 

 

 
(1,651
)
Loss on extinguishment of debt
 
(10
)
 

 

 

 
(10
)
Other expense
 
(76
)
 
34

 
(1
)
 

 
(43
)
Total interest and other income / (expense), net
 
(3,330
)
 
(40
)
 
(6
)
 

 
(3,376
)
Income / (loss) from continuing operations before income taxes
 
(6,661
)
 
5,641

 
100

 

 
(920
)
Income tax provision
 
216

 

 

 

 
216

Net income / (loss) from continuing operations, net of taxes
 
(6,877
)
 
5,641

 
100

 

 
(1,136
)
Loss from discontinued operations
 

 
(212
)
 

 

 
(212
)
Net loss from discontinued operations, net of taxes
 

 
(212
)
 

 

 
(212
)
Net income / (loss)
 
$
(6,877
)
 
$
5,429

 
$
100

 
$

 
$
(1,348
)
Other comprehensive loss
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustment
 

 
(5
)
 

 

 
(5
)
Comprehensive income / (loss)
 
$
(6,877
)
 
$
5,424

 
$
100

 
$

 
$
(1,353
)
Consolidated Statement of Operations and Comprehensive Loss
for the nine months ended December 31, 2018 (Unaudited)
(in thousands, except par value and share amounts)
 
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Elimination
 
Consolidated Total
Net revenues
 
$

 
$
139,536

 
$
632

 
$
(63,791
)
 
$
76,377

Cost of revenues
 
 
 
 
 
 
 
 
 
 
License fees and revenue share
 

 
113,999

 
5

 
(63,791
)
 
50,213

Other direct cost of revenues
 

 
1,553

 

 

 
1,553

Total cost of revenues
 

 
115,552

 
5

 
(63,791
)
 
51,766

Gross profit
 

 
23,984

 
627

 

 
24,611

Operating expenses
 
 
 
 
 
 
 
 
 
 
Product development
 
256

 
7,572

 
346

 

 
8,174

Sales and marketing
 
479

 
4,626

 
606

 

 
5,711

General and administrative
 
5,540

 
3,541

 
134

 

 
9,215

Total operating expenses
 
6,275

 
15,739

 
1,086

 

 
23,100

Income / (loss) from operations
 
(6,275
)
 
8,245

 
(459
)
 

 
1,511

Interest and other income / (expense), net
 
 
 
 
 
 
 
 
 
 
Interest expense
 
(572
)
 
(76
)
 

 

 
(648
)
Foreign exchange transaction gain / (loss)
 
1

 
27

 
(21
)
 

 
7

Change in fair value of convertible note embedded derivative liability
 
1,096

 

 

 

 
1,096

Change in fair value of warrant liability
 
845

 

 

 

 
845

Loss on extinguishment of debt
 
(25
)
 

 

 

 
(25
)
Other expense
 
842

 
(1,006
)
 
(5
)
 

 
(169
)
Total interest and other income / (expense), net
 
2,187

 
(1,055
)
 
(26
)
 

 
1,106

Income / (loss) from continuing operations before income taxes
 
(4,088
)
 
7,190

 
(485
)
 

 
2,617

Income tax provision
 
157

 

 

 

 
157

Net income / (loss) from continuing operations, net of taxes
 
(4,245
)
 
7,190

 
(485
)
 

 
2,460

Income / (loss) from discontinued operations
 
(37
)
 
(1,584
)
 
9

 

 
(1,612
)
Net income / (loss) from discontinued operations, net of taxes
 
(37
)
 
(1,584
)
 
9

 

 
(1,612
)
Net income / (loss)
 
$
(4,282
)
 
$
5,606

 
$
(476
)
 
$

 
$
848

Other comprehensive loss
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustment
 

 
(5
)
 

 

 
(5
)
Comprehensive income / (loss)
 
$
(4,282
)
 
$
5,601

 
$
(476
)
 
$

 
$
843








Consolidated Statement of Operations and Comprehensive Loss
for the three months ended December 31, 2017 (Unaudited)
(in thousands, except par value and share amounts)
 
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Elimination
 
Consolidated Total
Net revenues
 
$

 
$
41,679

 
$
222

 
$
(19,169
)
 
$
22,732

Cost of revenues
 
 
 
 
 
 
 
 
 
 
License fees and revenue share
 

 
33,995

 
61

 
(19,169
)
 
14,887

Other direct cost of revenues
 

 
437

 

 

 
437

Total cost of revenues
 

 
34,432

 
61

 
(19,169
)
 
15,324

Gross profit
 

 
7,247

 
161

 

 
7,408

Operating expenses
 
 
 
 
 
 
 
 
 
 
Product development
 
2

 
3,057

 
61

 

 
3,120

Sales and marketing
 
75

 
1,441

 
107

 

 
1,623

General and administrative
 
3,682

 
347

 
123

 

 
4,152

Total operating expenses
 
3,759

 
4,845

 
291

 

 
8,895

Income / (loss) from operations
 
(3,759
)
 
2,402

 
(130
)
 

 
(1,487
)
Interest and other income / (expense), net
 
 
 
 
 
 
 
 
 
 
Interest expense
 
(446
)
 

 

 

 
(446
)
Foreign exchange transaction loss
 

 
48

 
1

 

 
49

Change in fair value of convertible note embedded derivative liability
 
(1,658
)
 

 

 

 
(1,658
)
Change in fair value of warrant liability
 
(898
)
 

 

 

 
(898
)
Loss on extinguishment of debt
 
(285
)
 

 

 

 
(285
)
Other income
 
28

 
(182
)
 

 

 
(154
)
Total interest and other income / (expense), net
 
(3,259
)
 
(134
)
 
1

 

 
(3,392
)
Income / (loss) from continuing operations before income taxes
 
(7,018
)
 
2,268

 
(129
)
 

 
(4,879
)
Income tax provision
 
(88
)
 
6

 
(2
)
 

 
(84
)
Net income / (loss) from continuing operations, net of taxes
 
(6,930
)
 
2,262

 
(127
)
 

 
(4,795
)
Income / (loss) from discontinued operations
 
(87
)
 
1,278

 
(195
)
 

 
996

Net income / (loss) from discontinued operations, net of taxes
 
(87
)
 
1,278

 
(195
)
 

 
996

Net income / (loss)
 
$
(7,017
)
 
$
3,540

 
$
(322
)
 
$

 
$
(3,799
)
Comprehensive income / (loss)
 
$
(7,017
)
 
$
3,540

 
$
(322
)
 
$

 
$
(3,799
)

Consolidated Statement of Operations and Comprehensive Loss
for the nine months ended December 31, 2017 (Unaudited)
(in thousands, except par value and share amounts)
 
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Elimination
 
Consolidated Total
Net revenues
 

 
97,772

 
739

 
(44,721
)
 
53,790

Cost of revenues
 
 
 
 
 
 
 
 
 
 
License fees and revenue share
 

 
78,899

 
166

 
(44,721
)
 
34,344

Other direct cost of revenues
 

 
1,276

 

 
 
 
1,276

Total cost of revenues
 

 
80,175

 
166

 
(44,721
)
 
35,620

Gross profit
 

 
17,597

 
573

 

 
18,170

Operating expenses
 
 
 
 
 
 
 
 
 
 
Product development
 
14

 
7,430

 
91

 

 
7,535

Sales and marketing
 
249

 
3,566

 
229

 

 
4,044

General and administrative
 
8,327

 
2,417

 
317

 

 
11,061

Total operating expenses
 
8,590

 
13,413

 
637

 

 
22,640

Income / (loss) from operations
 
(8,590
)
 
4,184

 
(64
)
 

 
(4,470
)
Interest and other income / (expense), net
 
 
 
 
 
 
 
 
 
 
Interest expense
 
(1,815
)
 

 

 

 
(1,815
)
Foreign exchange transaction loss
 

 
(62
)
 
1

 

 
(61
)
Change in fair value of convertible note embedded derivative liability
 
(6,310
)
 

 

 

 
(6,310
)
Change in fair value of warrant liability
 
(2,526
)
 

 

 

 
(2,526
)
Loss on extinguishment of debt
 
(1,167
)
 

 

 

 
(1,167
)
Other income
 
7

 
(80
)
 

 

 
(73
)
Total interest and other income / (expense), net
 
(11,811
)
 
(142
)
 
1

 

 
(11,952
)
Income / (loss) from continuing operations before income taxes
 
(20,401
)
 
4,042

 
(63
)
 

 
(16,422
)
Income tax provision
 
(941
)
 
6

 
(2
)
 

 
(937
)
Net income / (loss) from continuing operations, net of taxes
 
(19,460
)
 
4,036

 
(61
)
 

 
(15,485
)
Income / (loss) from discontinued operations
 
(160
)
 
1,854

 
(641
)
 

 
1,053

Net income / (loss) from discontinued operations, net of taxes
 
(160
)
 
1,854

 
(641
)
 

 
1,053

Net income / (loss)
 
(19,620
)
 
5,890

 
(702
)
 

 
(14,432
)
Other comprehensive income / (loss)
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustment
 

 
(5
)
 

 

 
(5
)
Comprehensive income / (loss)
 
(19,620
)
 
5,885

 
(702
)
 

 
(14,437
)








Consolidated Statement of Cash Flows
for the nine months ended December 31, 2018 (Unaudited)
(in thousands, except par value and share amounts)
 
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Consolidated Total
Cash flows from operating activities
 
 
 
 
 
 
 
 
Net income / (loss) from continuing operations, net of taxes
 
$
(4,245
)
 
$
7,190

 
$
(485
)
 
$
2,460

Adjustments to reconcile net income / (loss) from continuing operations to net cash used in operating activities:
 
 
 
 
 
 
 
 
Depreciation and amortization
 
26

 
2,114

 
5

 
2,145

Change in allowance for doubtful accounts
 

 
390

 
35

 
425

Amortization of debt discount and debt issuance costs
 
251

 

 

 
251

Stock-based compensation
 
1,416

 

 

 
1,416

Stock-based compensation for services rendered
 
365

 

 

 
365

Change in fair value of convertible note embedded derivative liability
 
(1,096
)
 

 

 
(1,096
)
Change in fair value of warrant liability
 
(845
)
 

 

 
(845
)
Loss on extinguishment of debt
 
25

 

 

 
25

(Increase) / decrease in assets:
 
 
 
 
 
 
 
 
Accounts receivable
 

 
(8,184
)
 
558

 
(7,626
)
Deposits
 

 

 
(10
)
 
(10
)
Deferred tax assets
 
157

 

 

 
157

Prepaid expenses and other current assets
 
(27
)
 
(396
)
 
(128
)
 
(551
)
Increase / (decrease) in liabilities:
 
 
 
 
 
 
 
 
Accounts payable
 
(356
)
 
3,258

 
(245
)
 
2,657

Accrued license fees and revenue share
 

 
3,419

 
(161
)
 
3,258

Accrued compensation
 
(1,331
)
 
(26
)
 
12

 
(1,345
)
Accrued interest
 
107

 

 

 
107

Other current liabilities
 
5,612

 
(5,399
)
 
468

 
681

Other non-current liabilities
 
116

 
(61
)
 

 
55

Cash provided by operating activities - continuing operations
 
175

 
2,305

 
49

 
2,529

Cash used in operating activities - discontinued operations
 

 
(3,075
)
 
(361
)
 
(3,436
)
Net cash provided by / (used in) operating activities
 
175

 
(770
)
 
(312
)
 
(907
)
 
 
 
 
 
 
 
 
 
Cash flows from investing activities
 
 
 
 
 
 
 
 
Capital expenditures
 
(533
)
 
(1,248
)
 

 
(1,781
)
Net cash used in investing activities
 
(533
)
 
(1,248
)
 

 
(1,781
)
 
 
 
 
 
 
 
 
 
Cash flows from financing activities
 
 
 
 
 
 
 
 
Options exercised
 
223

 

 

 
223

Repayment of debt obligations
 
(50
)
 

 

 
(50
)
Net cash provided by financing activities
 
173

 

 

 
173

 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash
 

 
(5
)
 

 
(5
)
 
 
 
 
 
 
 
 
 
Net change in cash
 
(185
)
 
(2,023
)
 
(312
)
 
(2,520
)
 
 
 
 
 
 
 
 
 
Cash and restricted cash, beginning of period
 
657

 
11,975

 
419

 
13,051

 
 
 
 
 
 
 
 
 
Cash and restricted cash, end of period
 
$
472

 
$
9,952

 
$
107

 
$
10,531

Consolidated Statement of Cash Flows
for the nine months ended December 31, 2017 (Unaudited)
(in thousands, except par value and share amounts)
 
 
Parent
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Consolidated Total
Cash flows from operating activities
 
 
 
 
 
 
 
 
Net income / (loss) from continuing operations, net of taxes
 
$
(19,460
)
 
$
4,036

 
$
(61
)
 
$
(15,485
)
Adjustments to reconcile net income / (loss) from continuing operations to net cash used in operating activities:
 
 
 
 
 
 
 
 
Depreciation and amortization
 

 
1,344

 
614

 
1,958

Amortization of debt discount and debt issuance costs
 
875

 

 

 
875

Change in allowance for doubtful accounts
 

 
246

 
(15
)
 
231

Stock-based compensation
 
2,136

 

 

 
2,136

Stock-based compensation for services rendered
 
223

 

 

 
223

Change in fair value of convertible note embedded derivative liability
 
6,310

 

 

 
6,310

Change in fair value of warrant liability
 
2,526

 

 

 
2,526

Loss on extinguishment of debt
 
1,167

 

 

 
1,167

(Increase) / decrease in assets:
 
 
 
 
 
 
 
 
Accounts receivable
 

 
(12,951
)
 
244

 
(12,707
)
Deposits
 
(34
)
 
4

 
(4
)
 
(34
)
Deferred tax assets
 
(241
)
 
(3
)
 

 
(244
)
Prepaid expenses and other current assets
 
(50
)
 
8

 
(11
)
 
(53
)
Increase / (decrease) in liabilities:
 
 
 
 
 
 
 
 
Accounts payable
 
(232
)
 
7,284

 
(19
)
 
7,033

Accrued license fees and revenue share
 

 
3,525

 
149

 
3,674

Accrued compensation
 
2,026

 
325

 
4

 
2,355

Accrued interest
 
165

 

 

 
165

Other current liabilities
 
3,630

 
(3,047
)
 
(450
)
 
133

Other non-current liabilities
 
(674
)
 
46

 

 
(628
)
Cash provided by / (used in) operating activities - continuing operations
 
(1,633
)
 
817

 
451

 
(365
)
Cash provided by / (used in) operating activities - discontinued operations
 

 
1,243

 
(392
)
 
851

Net cash provided by / (used in) operating activities
 
(1,633
)
 
2,060

 
59

 
486

 
 
 
 
 
 
 
 
 
Cash flows from investing activities
 
 
 
 
 
 
 
 
Capital expenditures
 
(13
)
 
(1,202
)
 
(5
)
 
(1,220
)
Cash used in investing activities - continuing operations
 
(13
)
 
(1,202
)
 
(5
)
 
(1,220
)
Cash used in investing activities - discontinued operations
 

 
(92
)
 

 
(92
)
Net cash used in investing activities
 
(13
)
 
(1,294
)
 
(5
)
 
(1,312
)
 
 
 
 
 
 
 
 
 
Cash flows from financing activities
 
 
 
 
 
 
 
 
Proceeds from short-term borrowings
 
2,500

 

 

 
2,500

Payment of debt issuance costs
 
(346
)
 

 

 
(346
)
Options exercised
 
259

 

 

 
259

Repayment of debt obligations
 
(848
)
 

 

 
(848
)
Net cash provided by financing activities
 
1,565

 

 

 
1,565

 
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash
 
(1
)
 
(5
)
 
1