Revenue Grows 158% Year-over-Year and 51% Sequentially in Q4
Operating and Scale Efficiencies Lead to Record EBITDA
NEW YORK, Feb. 24, 2010 (GLOBE NEWSWIRE) -- interCLICK, Inc. (Nasdaq:ICLK), the leading ad network in data and inventory transparency, announced today its results for the quarter and year ended December 31, 2009.
| Summary Results | ||||||
| $ in millions (except per share amounts); Unaudited | ||||||
| Q4 2009 | Q4 2008 | Growth | FY 2009 | FY 2008 | Growth | |
| Revenue | $ 21.8 | $ 8.5 | 158% | $ 55.3 | $ 22.5 | 146% |
| Gross profit | $ 9.2 | $ 3.2 | 192% | $ 25.2 | $ 6.8 | 269% |
| Gross margin | 42.3% | 37.3% | 45.6% | 30.4% | ||
| EBITDA | $ 2.1 | $ 0.2 | 1237% | $ 4.6 | $ (4.0) | nm |
| Operating income (loss) | $ 0.5 | $ (0.5) | nm | $ 0.7 | $ (6.6) | nm |
| Net income/(loss) | $ 2.3 | $ (0.7) | nm | $ 1.5 | $ (12.0) | nm |
| EPS - diluted | $ 0.10 | $ (0.03) | nm | $ 0.07 | $ (0.65) | nm |
| See reconciliation of GAAP to non-GAAP measures on attached financial tables. | ||||||
Revenue was $21.8 million in Q4 2009, up 158% year-over-year and 51% sequentially, an acceleration from 35% sequential growth in the prior period. Growth was driven primarily by increased demand from existing advertisers, strong penetration into new key accounts, and 4th quarter seasonal strength. The Company previously indicated that revenue would exceed $21 million.
Gross profit margin was 42.3% in Q4 2009, 5 percentage points higher than the year-ago-period and 8.1 percentage points lower sequentially. Gross margins were impacted primarily by higher inventory costs caused by strong demand, and to a modest degree higher 3rd party data costs as the Company continued to advance its competitive position in supply chain management.
EBITDA, a non-GAAP measure, was $2.1 million in Q4 2009, compared to $0.2 million in the year-ago period, and up 50% sequentially compared to $1.4 million. Growth was driven by improved operating and scale efficiencies leading to a reduction in operating expenses as a percentage of revenue versus the prior year and prior quarter periods.
Operating income was $0.5 million in Q4 2009, net income was $2.3 million, and diluted earnings per share was $0.10, compared to an operating loss of $(0.5) million, net loss of $(0.7) million, and diluted loss per share of $(0.03) in the year-ago period. The prior year included a $(1.7) million loss from discontinued operations.
"Effective supply chain management and client performance is what continues to propel our financial results and differentiate us in the marketplace," said Michael Mathews, interCLICK's CEO. "This allowed interCLICK to finish 2009 with significant business momentum and the strongest balance sheet in our young history."
For the year ended December 31, 2009, interCLICK had revenue of $55.3 million, an increase of 146% compared to revenue of $22.5 million in 2008. The Company generated gross profit of $25.2 million, an increase of 269% compared to $6.8 million in the previous year. EBITDA was $4.6 million, compared to an EBITDA loss of $(4.0) million in 2008. interCLICK recorded net income of $1.5 million, or $0.07 per diluted share, compared to a net loss of $(12.0) million, or $(0.65) per diluted share in 2008. Net income in Q4 2009 was favorably impacted by a tax benefit of $3.1 million, compared to a $1.7 million tax benefit in the year-ago period.
The Company ended the year with cash and cash equivalents of $12.7 million. During the fourth quarter, the Company sold 2,875,000 shares of common stock in a registered direct offering at a price of $4.50 per share. Net proceeds to interCLICK, net of offering costs, were $11.5 million.
As of December 31, 2009, the Company had 23.6 million shares outstanding and 30.0 million fully-diluted shares outstanding. Dilutive securities included 5.1 million stock options at an average exercise price of $2.69, and 1.3 million warrants at an average exercise price of $3.50.
Conference Call
The Company will host a conference call to discuss its fourth quarter financial results and business outlook on Wednesday, February 24, 2010, at 4:30 p.m. (EST). The conference call can be accessed by dialing toll-free (877) 303-6501 (U.S.) or (720) 545-0015 (international). A live audiocast of the conference call can be accessed from the Company's website at http://ir.interclick.com/eventdetail.cfm?eventid=77974. A replay of the audiocast will be available through February 24, 2011.
Reclassifications
Certain amounts in the accompanying financial tables relating to prior periods have been reclassified to conform to the fourth quarter 2009 presentation.
Non-GAAP Financial Measure
The Company uses a non-GAAP financial measure in evaluating its financial and operational decision making and as a means to evaluate period-to period comparison. Company management believes that the non-GAAP financial measure provides meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures that may not be indicative of the performance of our core cash operations. The Company believes that both management and investors benefit from referring to this non-GAAP financial measure in assessing our performance and when planning, forecasting and analyzing future periods. The Company believes this non-GAAP financial measure is useful to investors because they allow for greater transparency with respect to key metrics used by management.
EBITDA. As is common in the industry, the Company uses EBITDA as a measure of performance to demonstrate operating income exclusive of interest, taxes, depreciation, and amortization (including stock-based compensation). The Company, in its daily management of its business affairs and analysis of its monthly, quarterly and annual performance, makes certain of its decisions based on EBITDA. Since an outside investor may base its evaluation of the Company's performance on the Company's net income or loss, there is a limitation to the EBITDA measurement. EBITDA is not, and should not be considered, an alternative to net income or loss, income or loss from operations or any other measure for determining operating performance of liquidity, as determined under GAAP.
To comply with Regulation G of the Securities and Exchange Commission, interCLICK, Inc. attaches to this press release and will post to the Company's website (www.interclick.com&index=1">www.interclick.com) any reconciliations of certain non-GAAP measures to the nearest comparable GAAP measures that are presented in this press release.
About interCLICK
interCLICK, Inc. (Nasdaq:ICLK) provides a transparent platform enabling digital advertisers and agencies to maximize return on investment at unprecedented scale. interCLICK's platform applies traditional supply chain methodologies leveraging premium publisher inventory and third party data sources to maximize the effectiveness along the online advertising value chain. For more information about the interCLICK Network, visit http://www.interclick.com.
Safe Harbor
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act") including significant business momentum. Additionally, words such as "seek," "intend," "believe," "plan," "estimate," "expect," "anticipate" and other similar expressions are forward-looking statements within the meaning of the Act. Some or all of the events or results anticipated by these forward-looking statements may not occur. Factors that could cause or contribute to such differences include the impact of intense competition, the continuation or worsening of current economic conditions including unemployment, the impact of anticipated higher tax rates on online spending and the condition of the domestic and global credit and capital markets. Further information on interCLICK's risk factors is contained in its filings with the Securities and Exchange Commission, including the prospectus supplement dated December 16, 2009. interCLICK does not undertake any duty nor does it intend to update the results of these forward-looking statements.
| interCLICK, Inc. | For the Three | For the Three | For the Three | For the Three |
| Quarterly Consolidated Statements of Operations: Q1 '08 to Q4 '09 | Months Ended | Months Ended | Months Ended | Months Ended |
| Unaudited | Dec. 31, 2009 | Sept. 30, 2009 | June 30, 2009 | March 31, 2009 |
| Revenues | $ 21,791,490 | $ 14,395,236 | $ 10,648,686 | $ 8,423,291 |
| Cost of revenue | 12,573,767 | 7,141,926 | 5,882,655 | 4,474,279 |
| Gross profit | 9,217,723 | 7,253,310 | 4,766,031 | 3,949,012 |
| Operating expenses: | ||||
| Sales and marketing | 3,311,541 | 2,311,734 | 1,735,122 | 1,416,522 |
| General and administrative | 4,318,198 | 3,367,557 | 2,895,412 | 1,677,665 |
| Technology support | 1,014,364 | 852,332 | 797,656 | 584,331 |
| Amortization of intangible assets | 39,500 | 49,760 | 49,760 | 49,760 |
| Total operating expenses | 8,683,603 | 6,581,383 | 5,477,950 | 3,728,278 |
| Operating income (loss) from continuing operations | 534,120 | 671,927 | (711,919) | 220,734 |
| Other income (expense): | ||||
| Interest income | 1,041 | -- | -- | 12 |
| Loss on settlement of debt | -- | -- | -- | -- |
| Loss on sale of available-for-sale securities | (18,884) | -- | (36,349) | -- |
| Other than temporary impairment of available-for-sale securities | (1,042,470) | -- | -- | -- |
| Loss on disposal of fixed assets | -- | -- | -- | -- |
| Loss on change in warrant derivative liability | (158,904) | (274,725) | (159,294) | (72,767) |
| Interest expense | (103,498) | (245,854) | (126,681) | (113,592) |
| Total other income (expense) | (1,322,715) | (520,579) | (322,324) | (186,347) |
| Income (loss) from continuing operations before income taxes | (788,595) | 151,348 | (1,034,243) | 34,387 |
| Income tax benefit | 3,107,752 | -- | -- | -- |
| Equity in investee's loss, net of taxes | -- | -- | -- | -- |
| Income/(loss) from continuing operations | 2,319,157 | 151,348 | (1,034,243) | 34,387 |
| Net income (loss) from discontinued operations | 514 | -- | -- | (1,220) |
| Net income (loss) | 2,319,671 | 151,348 | (1,034,243) | 33,167 |
| Other comprehensive loss: | ||||
| Loss on sale of available-for-sale securities | -- | -- | -- | -- |
| Comprehensive income (loss) | $ 2,319,671 | $ 151,348 | $ (1,034,243) | $ 33,167 |
| Basic earnings (loss) per share: | ||||
| Continuing operations | $ 0.11 | $ 0.01 | $ (0.05) | $ -- |
| Discontinued operations | $ -- | $ -- | $ -- | $ -- |
| Net income (loss) | $ 0.11 | $ 0.01 | $ (0.05) | $ -- |
| Diluted earnings (loss) per share: | ||||
| Continuing operations | $ 0.10 | $ 0.01 | $ (0.05) | $ -- |
| Discontinued operations | $ -- | $ -- | $ -- | $ -- |
| Net income (loss) | $ 0.10 | $ 0.01 | $ (0.05) | $ -- |
| Weighted average shares: | ||||
| Basic | 21,055,046 | 20,628,033 | 19,164,938 | 18,922,584 |
| Diluted | 23,825,669 | 22,399,838 | 19,164,938 | 18,969,631 |
|
Reconciliation of non-GAAP measure to nearest comparable GAAP measure: |
||||
| Operating income (loss) from continuing operations | $ 534,120 | $ 671,927 | $ (711,919) | $ 220,734 |
| Stock-based compensation | 1,440,415 | 600,141 | 777,173 | 576,570 |
| Amortization of intangible assets | 39,500 | 49,760 | 49,760 | 49,760 |
| Depreciation | 89,517 | 77,917 | 74,978 | 72,386 |
| EBITDA | $ 2,103,552 | $ 1,399,745 | $ 189,992 | $ 919,450 |
| interCLICK, Inc. | For the Three | For the Three | For the Three | For the Three |
| Quarterly Consolidated Statements of Operations: Q1 '08 to Q4 '09 | Months Ended | Months Ended | Months Ended | Months Ended |
| Unaudited | Dec. 31, 2008 | Sept. 30, 2008 | June 30, 2008 | March 31, 2008 |
| Revenues | $ 8,460,030 | $ 5,756,707 | $ 4,673,629 | $ 3,561,967 |
| Cost of revenue | 5,304,078 | 4,011,020 | 3,488,190 | 2,830,807 |
| Gross profit | 3,155,952 | 1,745,687 | 1,185,439 | 731,160 |
| Operating expenses: | ||||
| Sales and marketing | 892,187 | 886,511 | 1,127,515 | 429,749 |
| General and administrative | 2,366,567 | 1,881,513 | 2,010,278 | 2,221,568 |
| Technology support | 336,836 | 294,559 | 246,769 | 298,252 |
| Amortization of intangible assets | 104,570 | 104,571 | 104,630 | 104,738 |
| Total operating expenses | 3,700,160 | 3,167,153 | 3,489,192 | 3,054,308 |
| Operating income (loss) from continuing operations | (544,208) | (1,421,466) | (2,303,753) | (2,323,148) |
| Other income (expense): | ||||
| Interest income | 2,192 | 8,140 | 3,329 | 3,433 |
| Loss on settlement of debt | -- | -- | (20,121) | -- |
| Loss on sale of available-for-sale securities | -- | (116,454) | -- | -- |
| Other than temporary impairment of available-for-sale securities | -- | -- | -- | -- |
| Loss on disposal of fixed assets | 1,750 | (15,385) | -- | -- |
| Loss on change in warrant derivative liability | -- | -- | -- | -- |
| Interest expense | (103,413) | (189,382) | (534,887) | (698,616) |
| Total other income (expense) | (99,471) | (313,081) | (551,679) | (695,183) |
| Income (loss) from continuing operations before income taxes | (643,679) | (1,734,547) | (2,855,432) | (3,018,331) |
| Income tax benefit | 1,687,305 | -- | -- | -- |
| Equity in investee's loss, net of taxes | -- | (404,103) | (249,128) | -- |
| Income/(loss) from continuing operations | 1,043,626 | (2,138,650) | (3,104,560) | (3,018,331) |
| Net income (loss) from discontinued operations | (1,695,855) | (1,551,613) | (843,168) | (716,986) |
| Net income (loss) | (652,229) | (3,690,263) | (3,947,728) | (3,735,317) |
| Other comprehensive loss: | ||||
| Loss on sale of available-for-sale securities | -- | (197,704) | -- | -- |
| Comprehensive income (loss) | $ (652,229) | $ (3,887,967) | $ (3,947,728) | $ (3,735,317) |
| Basic earnings (loss) per share: | ||||
| Continuing operations | $ 0.06 | $ (0.11) | $ (0.17) | $ (0.17) |
| Discontinued operations | $ (0.09) | $ (0.08) | $ (0.05) | $ (0.04) |
| Net income (loss) | $ (0.03) | $ (0.20) | $ (0.21) | $ (0.21) |
| Diluted earnings (loss) per share: | ||||
| Continuing operations | $ 0.06 | $ (0.11) | $ (0.17) | $ (0.17) |
| Discontinued operations | $ (0.09) | $ (0.08) | $ (0.05) | $ (0.04) |
| Net income (loss) | $ (0.03) | $ (0.20) | $ (0.21) | $ (0.21) |
| Weighted average shares: | ||||
| Basic | 18,922,596 | 18,904,109 | 18,470,345 | 17,973,167 |
| Diluted | 18,922,596 | 18,904,109 | 18,470,345 | 17,973,167 |
|
Reconciliation of non-GAAP measure to nearest comparable GAAP measure: |
||||
| Operating income (loss) from continuing operations | $ (544,208) | $ (1,421,466) | $ (2,303,753) | $ (2,323,148) |
| Stock-based compensation | 524,160 | 439,768 | 503,090 | 474,173 |
| Amortization of intangible assets | 104,570 | 104,571 | 104,630 | 104,738 |
| Depreciation | 72,817 | 66,448 | 49,476 | 56,747 |
| EBITDA | $ 157,339 | $ (810,679) | $ (1,646,556) | $ (1,687,490) |
| interCLICK, Inc. | ||||
| Consolidated Balance Sheet: Q1 '08 to Q4 '09 | ||||
| Unaudited | Dec. 31, 2009 | Sept. 30, 2009 | Jun. 30, 2009 | Mar. 31, 2009 |
| Assets | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ 12,653,958 | $ 1,929,094 | $ 2,784,986 | $ 191,002 |
| Accounts receivable, gross | 22,014,492 | 14,734,371 | 10,434,167 | 8,651,433 |
| Allowance for doubtful accounts | (383,187) | (258,100) | (185,032) | (216,532) |
| Accounts receivable, net of allowance | 21,631,305 | 14,476,271 | 10,249,135 | 8,434,901 |
| Note receivable | -- | -- | -- | -- |
| Due from factor | 1,052,167 | 1,114,698 | 1,034,712 | 798,424 |
| Prepaid expenses and other current assets | 367,183 | 373,505 | 372,187 | 186,851 |
| Deferred tax asset - current portion | 1,089,294 | -- | -- | -- |
| Total current assets | 36,793,907 | 17,893,568 | 14,441,020 | 9,611,178 |
| Property and equipment, net | 988,899 | 458,483 | 523,432 | 543,790 |
| Intangible assets, net | 421,333 | 460,833 | 510,593 | 560,353 |
| Goodwill | 7,909,571 | 7,909,571 | 7,909,571 | 7,909,571 |
| Investment in available-for-sale securities | 715,608 | 728,572 | 728,572 | 1,650,000 |
| Deferred debt issue costs, net | 4,972 | 8,361 | 11,750 | 18,889 |
| Other assets | 192,179 | 192,179 | 191,664 | 191,664 |
| Assets held for sale - discontinued operations | -- | -- | -- | -- |
| Deferred tax asset - long-term portion | 3,237,705 | -- | -- | -- |
| Total assets | $ 50,264,174 | $ 27,651,567 | $ 24,316,602 | $ 20,485,445 |
| Liabilities and Stockholders' Equity (Deficit) | ||||
| Current liabilities: | ||||
| Accounts payable | $ 10,934,236 | $ 7,508,531 | $ 6,372,241 | $ 5,123,171 |
| Due to factor | 5,260,834 | 5,559,011 | 5,160,291 | 3,992,119 |
| Senior secured notes payable, net of debt discount | -- | -- | -- | -- |
| Note payable, current portion | -- | -- | 288,500 | 400,000 |
| Settlement payable | -- | -- | -- | -- |
| Accrued expenses | 3,164,044 | 1,688,013 | 603,501 | 599,915 |
| Warrant derivative liability | 69,258 | 267,789 | 143,578 | 492,781 |
| Deferred revenue | -- | 151,465 | 143,548 | 95,098 |
| Accrued interest expense | -- | 6,296 | 5,028 | 22,866 |
| Capital lease obligation, current portion | 161,940 | 10,239 | 10,098 | 9,959 |
| Deferred rent, current portion | 3,508 | 3,207 | 2,906 | 2,605 |
| Income taxes payable | 339,668 | |||
| Total current liabilities | 19,933,488 | 15,194,551 | 12,729,691 | 10,738,514 |
| Deferred rent | 83,823 | 83,062 | 81,047 | 79,033 |
| Capital lease obligation | 338,562 | 1,763 | 4,376 | 6,953 |
| Liabilities held for sale - discontinued operations | -- | -- | -- | -- |
| Total liabilities | 20,355,873 | 15,279,376 | 12,815,114 | 10,824,500 |
| Stockholders' equity (deficit) | ||||
| Common Stock, $0.001 par value | 23,612 | 20,645 | 20,611 | 18,923 |
| Additional paid-in capital | 42,229,313 | 28,076,682 | 27,357,362 | 23,620,613 |
| Accumulated other comprehensive loss | -- | (1,061,354) | (1,061,354) | (197,704) |
| Deferred equity-based expense | -- | -- | -- | -- |
| Accumulated deficit | (12,344,625) | (14,663,782) | (14,815,130) | (13,780,887) |
| Total stockholders' equity | 29,908,300 | 12,372,191 | 11,501,488 | 9,660,945 |
| Total liabilities and stockholders' equity | $ 50,264,173 | $ 27,651,567 | $ 24,316,602 | $ 20,485,445 |
| interCLICK, Inc. | ||||
| Consolidated Balance Sheet: Q1 '08 to Q4 '09 | ||||
| Unaudited | Dec. 31, 2008 | Sep. 30, 2008 | Jun. 30, 2008 | Mar. 31, 2008 |
| Assets | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ 183,871 | $ 611,189 | $ 448,024 | $ 1,142,369 |
| Accounts receivable, gross | 7,545,311 | 5,049,037 | 3,625,713 | 2,549,594 |
| Allowance for doubtful accounts | (425,000) | (345,208) | (201,248) | (150,000) |
| Accounts receivable, net of allowance | 7,120,311 | 4,703,829 | 3,424,465 | 2,399,594 |
| Note receivable | -- | -- | 1,000,000 | -- |
| Due from factor | 637,705 | -- | -- | -- |
| Prepaid expenses and other current assets | 94,164 | 205,796 | 43,291 | 78,329 |
| Deferred tax asset - current portion | -- | -- | -- | -- |
| Total current assets | 8,036,051 | 5,520,814 | 4,915,780 | 3,620,292 |
| Property and equipment, net | 596,913 | 633,523 | 570,799 | 583,845 |
| Intangible assets, net | 610,113 | 714,683 | 819,254 | 923,883 |
| Goodwill | 7,909,571 | 7,909,571 | 7,909,571 | 7,909,571 |
| Investment in available-for-sale securities | 1,650,000 | 1,694,000 | 3,500,872 | -- |
| Deferred debt issue costs, net | 33,333 | -- | -- | 30,478 |
| Other assets | 191,664 | 211,943 | 105,602 | 66,937 |
| Assets held for sale - discontinued operations | -- | -- | -- | 8,302,381 |
| Deferred tax asset - long-term portion | -- | -- | -- | -- |
| Total assets | $ 19,027,645 | $ 16,684,534 | $ 17,821,878 | $ 21,437,387 |
| Liabilities and Stockholders' Equity (Deficit) | ||||
| Current liabilities: | ||||
| Accounts payable | $ 5,288,807 | $ 3,937,095 | $ 2,711,468 | $ 2,434,127 |
| Due to factor | 3,188,425 | -- | -- | -- |
| Senior secured notes payable, net of debt discount | -- | -- | 1,652,754 | 4,549,164 |
| Note payable, current portion | 400,000 | 1,300,000 | -- | -- |
| Settlement payable | 248,780 | 1,090,230 | -- | -- |
| Accrued expenses | 310,685 | 610,390 | 1,602,154 | 1,137,981 |
| Warrant derivative liability | -- | -- | -- | -- |
| Deferred revenue | 9,972 | 100,935 | 83 | -- |
| Accrued interest expense | 16,948 | 1,068 | 121,964 | 101,470 |
| Capital lease obligation, current portion | 10,615 | 10,319 | 10,319 | 9,290 |
| Deferred rent, current portion | -- | -- | -- | -- |
| Income taxes payable | ||||
| Total current liabilities | 9,474,232 | 7,050,037 | 6,098,742 | 8,232,032 |
| Deferred rent | -- | -- | -- | -- |
| Capital lease obligation | 82,191 | 10,286 | 14,474 | 17,791 |
| Liabilities held for sale - discontinued operations | -- | -- | -- | 768,631 |
| Total liabilities | 9,556,423 | 7,060,323 | 6,113,216 | 9,018,454 |
| Stockholders' equity (deficit) | ||||
| Common Stock, $0.001 par value | 18,923 | 18,923 | 18,823 | 18,090 |
| Additional paid-in capital | 24,908,509 | 24,409,269 | 22,756,772 | 19,468,803 |
| Accumulated other comprehensive loss | (197,704) | (197,704) | -- | -- |
| Deferred equity-based expense | -- | -- | (150,919) | (99,676) |
| Accumulated deficit | (15,258,506) | (14,606,277) | (10,916,014) | (6,968,284) |
| Total stockholders' equity | 9,471,222 | 9,624,211 | 11,708,662 | 12,418,933 |
| Total liabilities and stockholders' equity | $ 19,027,645 | $ 16,684,534 | $ 17,821,878 | $ 21,437,387 |
| interCLICK, Inc. | ||||
| Consolidated Statement of Cash Flows: Q1 '08 to Q4 '09 |
For the Year Ended |
For the Nine Months Ended |
For the Six Months Ended |
For the Three Months Ended |
| Unaudited | Dec. 31, 2009 | Sept. 30, 2009 | Jun. 30. 2009 | Mar. 31, 2009 |
| Cash flows from operating activities: | ||||
| Net income (loss) | $ 1,469,944 | $ (699,214) | $ (1,001,076) | $ 33,167 |
| Add back loss from discontinued operations | 706 | 1,220 | 1,220 | 1,220 |
| Income (loss) from continuing operations | 1,470,650 | (697,994) | (999,856) | 34,387 |
|
Adjustments to reconcile income (loss) from continuing operations to net cash used in operating activities: |
||||
| Deferred taxes | (3,107,752) | -- | -- | -- |
| Other than temporary impairment of available-for-sale securities | 1,042,470 | -- | -- | -- |
| Stock-based compensation | 3,394,299 | 1,953,884 | 1,353,743 | 576,570 |
| Change in fair value of warrant derivative liability | 665,690 | 356,272 | 232,061 | 72,767 |
| Amortization of debt discount | 12,000 | 12,000 | 500 | -- |
| Equity method pick up from investment | -- | -- | -- | -- |
| Amortization of intangible assets | 188,780 | 149,280 | 99,520 | 49,760 |
| Provision for bad debts | 193,752 | (87,084) | (160,392) | (207,767) |
| Depreciation | 314,798 | 225,282 | 147,364 | 72,386 |
| Loss on sale of marketable securities | 55,233 | 36,349 | 36,349 | -- |
| Write off of deferred acquisition costs | -- | -- | -- | -- |
| Amortization of debt issue costs | 28,361 | 24,972 | 21,583 | 14,444 |
| Loss on settlement of debt | -- | -- | -- | -- |
| Loss on disposal of property and equipment | -- | -- | -- | -- |
| Changes in operating assets and liabilities: | ||||
| Accounts receivable | (14,704,746) | (7,268,876) | (2,968,432) | (1,106,823) |
| Prepaid expenses and other current assets | (273,019) | (155,341) | (107,523) | (92,687) |
| Other assets | (515) | (515) | -- | -- |
| Accounts payable | 5,645,429 | 2,219,724 | 1,083,434 | (165,636) |
| Accrued expenses | 2,843,387 | 1,518,821 | 426,392 | 374,356 |
| Accrued interest | (3,682) | 2,614 | 1,346 | 5,918 |
| Deferred rent | 14,635 | 13,573 | 11,257 | 8,942 |
| Net cash used in operating activities | (2,220,230) | (1,697,039) | (822,654) | (363,383) |
| Cash flows from investing activities: | ||||
| Purchases of property & equipment | (215,777) | (86,852) | (73,883) | (19,263) |
| Proceeds from sales of property & equipment | -- | -- | -- | |
| Proceeds from sales of marketable securities | 34,393 | 21,429 | 21,429 | -- |
| Deferred acquisition costs | -- | -- | -- | |
| Net cash provided by investing activities | (181,384) | (65,423) | (52,454) | (19,263) |
| Cash flows from financing activities: | ||||
| Proceeds from issuance of notes payable | -- | -- | -- | |
| Principal payments on notes payable | (400,000) | (400,000) | (100,000) | -- |
| Proceeds from common stock and warrants issued for cash | 2,257,000 | 2,257,000 | 2,257,000 | -- |
| Proceeds from public offering, net of offering costs | 11,519,669 | |||
| Proceeds from line of credit, net | 1,657,947 | 1,893,593 | 1,574,859 | 642,975 |
| Proceeds from exercise of options and warrants | 97,700 | 15,200 | -- | -- |
| Principal payments on capital leases | (10,615) | (8,108) | (5,636) | (3,198) |
| Net cash provided by financing activities | 15,121,701 | 3,757,685 | 3,726,223 | 639,777 |
| Cash flows from discontinued operations: | ||||
| Cash flows from operating activities | -- | -- | -- | |
| Cash flows from investing activities-acquisition | -- | -- | -- | |
| Cash flows from investing activities-divestiture | (250,000) | (250,000) | (250,000) | (250,000) |
| Net cash used in discontinued operations | (250,000) | (250,000) | (250,000) | (250,000) |
| Net (decrease) increase in cash and cash equivalents | 12,470,087 | 1,745,223 | 2,601,115 | 7,131 |
| Cash and cash equivalents at beginning of period | 183,871 | 183,871 | 183,871 | 183,871 |
| Cash and cash equivalents at end of period | $ 12,653,958 | $ 1,929,094 | $ 2,784,986 | $ 191,002 |
| interCLICK, Inc. | ||||
| Consolidated Statement of Cash Flows: Q1 '08 to Q4 '09 |
For the Year Ended |
For the Nine Months Ended |
For the Six Months Ended |
For the Three Months Ended |
| Unaudited | Dec. 31, 2008 | Sep. 30, 2008 | Jun. 30, 2008 | Mar. 31, 2008 |
| Cash flows from operating activities: | ||||
| Net income (loss) | $ (12,025,539) | $ (11,373,310) | $ (7,683,047) | $ (3,735,317) |
| Add back loss from discontinued operations | 4,807,622 | 3,111,767 | 1,560,154 | 716,986 |
| Income (loss) from continuing operations | (7,217,917) | (8,261,543) | (6,122,893) | (3,018,331) |
|
Adjustments to reconcile income (loss) from continuing operations to net cash used in operating activities: |
||||
| Deferred taxes | -- | -- | -- | -- |
| Other than temporary impairment of available-for-sale securities | -- | -- | -- | -- |
| Stock-based compensation | 1,941,191 | 1,441,240 | 976,553 | 474,174 |
| Change in fair value of warrant derivative liability | -- | -- | -- | -- |
| Amortization of debt discount | 1,239,061 | 1,239,061 | 1,118,242 | 676,248 |
| Equity method pick up from investment | 653,231 | 653,231 | 249,128 | -- |
| Amortization of intangible assets | 418,508 | 313,938 | 209,367 | 104,738 |
| Provision for bad debts | 414,737 | 252,236 | 102,236 | 4,800 |
| Depreciation | 245,489 | 172,671 | 106,223 | 53,461 |
| Loss on sale of marketable securities | 116,454 | 116,454 | -- | -- |
| Write off of deferred acquisition costs | 96,954 | 96,954 | 96,954 | 96,954 |
| Amortization of debt issue costs | 44,172 | 77,505 | 77,505 | 47,027 |
| Loss on settlement of debt | 20,121 | 20,121 | 20,121 | -- |
| Loss on disposal of property and equipment | 13,635 | 15,385 | -- | -- |
| Changes in operating assets and liabilities: | ||||
| Accounts receivable | (4,144,746) | (1,565,763) | (136,399) | 985,908 |
| Prepaid expenses and other current assets | (38,414) | (150,046) | 12,459 | (22,579) |
| Other assets | (124,727) | (145,006) | (38,665) | -- |
| Accounts payable | 2,843,814 | 1,492,102 | 211,864 | (65,477) |
| Accrued expenses | (726,062) | (335,394) | 54,072 | (188,441) |
| Accrued interest | (19,225) | (35,105) | 85,791 | 65,297 |
| Deferred rent | 72,696 | -- | -- | -- |
| Net cash used in operating activities | (4,151,028) | (4,601,959) | (2,977,442) | (786,221) |
| Cash flows from investing activities: | ||||
| Purchases of property & equipment | (357,006) | (322,548) | (177,991) | (138,275) |
| Proceeds from sales of property & equipment | 13,000 | 13,000 | 13,000 | 13,000 |
| Proceeds from sales of marketable securities | 1,078,000 | 1,034,000 | -- | -- |
| Deferred acquisition costs | (10,619) | (10,619) | (10,619) | (10,619) |
| Net cash provided by investing activities | 723,375 | 713,833 | (175,610) | (135,894) |
| Cash flows from financing activities: | ||||
| Proceeds from issuance of notes payable | 1,300,000 | 1,300,000 | -- | -- |
| Principal payments on notes payable | (5,423,573) | (4,523,573) | (2,750,000) | -- |
| Proceeds from common stock and warrants issued for cash | 2,912,500 | 2,912,500 | 2,536,500 | 475,000 |
| Proceeds from public offering, net of offering costs | ||||
| Proceeds from line of credit, net | 2,550,720 | -- | -- | -- |
| Proceeds from exercise of options and warrants | -- | -- | -- | -- |
| Principal payments on capital leases | (8,497) | (8,002) | (3,814) | (1,526) |
| Net cash provided by financing activities | 1,331,150 | (319,075) | (217,314) | 473,474 |
| Cash flows from discontinued operations: | ||||
| Cash flows from operating activities | (811,564) | (1,563,145) | (1,251,172) | (435,553) |
| Cash flows from investing activities-acquisition | (1,885,624) | (1,885,624) | (1,605,921) | (1,648,920) |
| Cash flows from investing activities-divestiture | 1,302,079 | 4,591,676 | 3,000,000 | -- |
| Net cash used in discontinued operations | (1,395,109) | 1,142,907 | 142,907 | (2,084,473) |
| Net (decrease) increase in cash and cash equivalents | (3,491,612) | (3,064,294) | (3,227,459) | (2,533,114) |
| Cash and cash equivalents at beginning of period | 3,675,483 | 3,675,483 | 3,675,483 | 3,675,483 |
| Cash and cash equivalents at end of period | $ 183,871 | $ 611,189 | $ 448,024 | $ 1,142,369 |