Annual report pursuant to Section 13 and 15(d)

Supplemental Consolidated Financial Information

v3.19.1
Supplemental Consolidated Financial Information
 12 Months Ended
Mar. 31, 2019
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 2019 and 2018. 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 this 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, 2019
 
December 31, 2018
 
September 30, 2018
 
June 30, 2018
 
March 31, 2018
 
December 31, 2017
 
September 30, 2017
 
June 30, 2017
 

Net revenues
 
$
27,192

 
$
30,411

 
$
23,854

 
$
22,112

 
$
20,961

 
$
22,732

 
$
15,905

 
$
15,153

License fees and revenue share
 
15,768

 
19,195

 
15,802

 
15,216

 
13,623

 
14,887

 
9,865

 
9,592

Other direct cost of revenues
 
470

 
538

 
508

 
507

 
453

 
437

 
430

 
409

Gross profit
 
10,954

 
10,678

 
7,544

 
6,389

 
6,885

 
7,408

 
5,610

 
5,152

Total operating expenses
 
9,020

 
8,222

 
7,229

 
7,649

 
8,224

 
8,895

 
7,076

 
6,669

Loss from operations
 
1,934

 
2,456

 
315

 
(1,260
)
 
(1,339
)
 
(1,487
)
 
(1,466
)
 
(1,517
)
Interest income / (expense), net
 
(472
)
 
(194
)
 
(135
)
 
(319
)
 
(252
)
 
(446
)
 
(662
)
 
(707
)
Foreign exchange transaction gain / (loss)
 
(4
)
 
(2
)
 
1

 
8

 
(87
)
 
49

 
(47
)
 
(63
)
Change in fair value of convertible note embedded derivative liability
 
(2,104
)
 
(1,476
)
 
952

 
1,620

 
(1,249
)
 
(1,658
)
 
(3,344
)
 
(1,308
)
Change in fair value of convertible note embedded derivative liability
 
(5,720
)
 
(1,651
)
 
926

 
1,570

 
(682
)
 
(898
)
 
(1,164
)
 
(464
)
Loss on extinguishment of debt
 
(406
)
 
(10
)
 
(15
)
 
—

 
(619
)
 
(285
)
 
(882
)
 
—

Other income / (expense)
 
322

 
(43
)
 
1

 
(127
)
 
2

 
(154
)
 
78

 
3

Income / (loss) from operations before income taxes
 
(6,450
)
 
(920
)
 
2,045

 
1,492

 
(4,226
)
 
(4,879
)
 
(7,487
)
 
(4,056
)
Income tax provision
 
312

 
216

 
(23
)
 
(36
)
 
(14
)
 
(84
)
 
(884
)
 
31

Net loss from operations, net of taxes
 
(6,762
)
 
(1,136
)
 
2,068

 
1,528

 
(4,212
)
 
(4,795
)
 
(6,603
)
 
(4,087
)
Basic and diluted net income / (loss) per common share from continuing operations
 
$
(0.09
)
 
$
(0.01
)
 
$
0.03

 
$
0.02

 
$
(0.06
)
 
$
(0.07
)
 
$
(0.10
)
 
$
(0.06
)
Weighted-average common shares outstanding, basic and diluted
 
79,404

 
77,645

 
77,193

 
77,645

 
75,160

 
72,148

 
66,846

 
66,599

Weighted-average common shares outstanding, diluted
 
79,404

 
77,645

 
78,780

 
77,645

 
75,160

 
75,442

 
66,846

 
66,599


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
 
 
 
 
 
 
 
 
 
 
2019
 
Allowance for doubtful accounts
 
$
512

 
$
300

 
$
(83
)
 
$
895

2018
 
Allowance for doubtful accounts
 
228

 
530

 
246

 
512

2017
 
Allowance for doubtful accounts
 
203

 
294

 
269

 
228