Annual report pursuant to Section 13 and 15(d)

Supplemental Consolidated Financial Information

v3.5.0.1
Supplemental Consolidated Financial Information
 12 Months Ended
Mar. 31, 2016
Quarterly Financial Information Disclosure [Abstract]  
Supplementary Consolidated Financial Information
Supplemental Consolidated Financial Information

Unaudited Quarterly Results
The following tables set forth our quarterly consolidated statements of operations in dollars for each quarter of fiscal 2016 and 2015. We have prepared the quarterly consolidated statements of operations data on a basis consistent with the audited consolidated financial statements included in Part II, Item 8 of this Annual Report on Form 10-K. In the opinion of management, the financial information in these tables reflects all adjustments, consisting only of normal recurring adjustments that management considers necessary for a fair presentation of this data. This information should be read in conjunction with the audited consolidated financial statements and related notes included in Part II, Item 8 of this Annual Report on Form 10-K. The results of historical periods are not necessarily indicative of the results for any future period.
 
 
Three Months Ended
 
March 31, 2016
 
December 31, 2015
 
September 30, 2015
 
June 30, 2015
 
March 31, 2015
 
December 31, 2014
 
September 30, 2014
 
June 30, 2014
 
(in thousands, except per share amounts)
Net revenues
 
$
23,032

 
$
24,089

 
$
20,734

 
$
18,686

 
$
10,230

 
$
7,006

 
$
5,462

 
$
5,554

License fees and revenue share
 
17,296

 
18,569

 
16,099

 
14,221

 
8,389

 
4,609

 
3,316

 
3,796

Other direct cost of revenues
 
2,084

 
1,704

 
4,558

 
2,191

 
908

 
413

 
345

 
344

Gross profit
 
3,652

 
3,816

 
77

 
2,274

 
933

 
1,984

 
1,801

 
1,414

Total operating expenses
 
9,028

 
9,081

 
8,221

 
9,425

 
9,954

 
7,375

 
6,446

 
6,094

Loss from operations
 
(5,376
)
 
(5,265
)
 
(8,144
)
 
(7,151
)
 
(9,021
)
 
(5,391
)
 
(4,645
)
 
(4,680
)
Interest income/(expense), net
 
(449
)
 
(471
)
 
(405
)
 
(491
)
 
(111
)
 
5

 
(131
)
 
3

Foreign exchange transaction gain/(loss)
 
(9
)
 
(8
)
 
(13
)
 
1

 
—

 
39

 
(1
)
 
(6
)
Change in fair value of warrant derivative liabilities loss
 
 
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Loss on extinguishment of debt
 
 
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Gain/(loss) on settlement of debt
 
 
 
—

 
—

 
—

 
—

 
1

 
—

 
(10
)
Gain/(loss) on disposal of fixed assets
 
(6
)
 
(8
)
 
—

 
(23
)
 
—

 
—

 
—

 
2

Gain on change in valuation of long-term contingent liability
 
 
 
—

 
—

 
—

 
—

 
—

 
—

 
—

Other income/(expense)
 
(20
)
 
(8
)
 
11

 
17

 
59

 
(25
)
 
3

 
9

Loss from operations before income taxes
 
(5,860
)
 
(5,760
)
 
(8,551
)
 
(7,647
)
 
(9,073
)
 
(5,371
)
 
(4,774
)
 
(4,682
)
Income tax provision
 
(32
)
 
3

 
(229
)
 
472

 
278

 
114

 
427

 
(72
)
Net loss from continuing operations, net of taxes
 
(5,828
)
 
(5,763
)
 
(8,322
)
 
(8,119
)
 
(9,351
)
 
(5,485
)
 
(5,201
)
 
(4,610
)
Basic and diluted net loss per common share
 
$
(0.09
)
 
$
(0.09
)
 
$
(0.14
)
 
$
(0.14
)
 
$
(0.22
)
 
$
(0.15
)
 
$
(0.14
)
 
$
(0.12
)
Weighted-average common shares outstanding, basic and diluted
 
66,278

 
65,979

 
57,274

 
57,388

 
43,219

 
37,799

 
37,504

 
37,424


Quarterly Trends and Seasonality
Our overall operating results fluctuate from quarter to quarter as a result of a variety of factors, some of which are outside our control. We have experienced rapid growth since the acquisition of Appia, Inc. on March 6, 2015, which has resulted in a substantial increase in our revenue and a corresponding increase in our operating expenses to support our growth. We are continuously working on enhancing our technology and our operational abilities. This rapid growth has also led to uneven overall operating results due to changes in our investment in sales and marketing and research and development from quarter to quarter and increases in employee headcount. Our historical results should not be considered a reliable indicator of our future results of operations.
Many advertisers spend the largest portion of their advertising budgets during the third quarter, to coincide with the holiday shopping season. As a result, typically the third quarter of each calendar year historically represents the largest percentage of our revenue for the year, and the first quarter of each year represents the smallest percentage.
Valuation and Qualifying Accounts
Fiscal Year
 
Description
 
Balance at Beginning of Period
 
Charged to Income Statement
 
Charged to Allowance
 
Balance at End of Period
 
 
 
 
(in thousands)
Trade receivables
 
 
 
 
 
 
 
 
 
 
2016
 
Allowance for doubtful accounts
 
$
698

 
$
132

 
$
366

 
$
464

2015
 
Allowance for doubtful accounts
 
—

 
505

 
(193
)
 
$
698

2014
 
Allowance for doubtful accounts
 
108

 
13

 
121

 
$
—