Company Quick10K Filing
Streamline Health Solutions
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$0.00 21 $25
10-Q 2020-01-07 Quarter: 2019-10-31
10-Q 2019-09-12 Quarter: 2019-07-31
10-Q 2019-06-13 Quarter: 2019-04-30
10-K 2019-04-22 Annual: 2019-01-31
10-Q 2018-12-14 Quarter: 2018-10-31
10-Q 2018-09-12 Quarter: 2018-07-31
10-Q 2018-06-13 Quarter: 2018-04-30
10-K 2018-04-25 Annual: 2018-01-31
10-Q 2017-12-12 Quarter: 2017-10-31
10-Q 2017-09-13 Quarter: 2017-07-31
10-Q 2017-06-12 Quarter: 2017-04-30
10-K 2017-04-10 Annual: 2017-01-31
10-Q 2016-12-07 Quarter: 2016-10-31
10-Q 2016-09-07 Quarter: 2016-07-31
10-Q 2016-06-08 Quarter: 2016-04-30
10-K 2016-04-20 Annual: 2016-01-31
10-Q 2015-12-10 Quarter: 2015-10-31
10-Q 2015-09-03 Quarter: 2015-07-31
10-Q 2015-06-09 Quarter: 2015-04-30
10-K 2015-04-16 Annual: 2015-01-31
10-Q 2014-12-09 Quarter: 2014-10-31
10-Q 2014-09-15 Quarter: 2014-07-31
10-Q 2014-07-24 Quarter: 2014-04-30
10-K 2014-06-13 Annual: 2014-01-31
10-Q 2013-12-17 Quarter: 2013-10-31
10-Q 2013-06-14 Quarter: 2013-04-30
10-K 2013-04-26 Annual: 2013-01-31
10-Q 2012-12-14 Quarter: 2012-10-31
10-Q 2012-09-14 Quarter: 2012-07-31
10-Q 2012-06-08 Quarter: 2012-04-30
10-K 2012-04-25 Annual: 2012-01-31
10-Q 2011-12-06 Quarter: 2011-10-31
10-Q 2011-09-13 Quarter: 2011-07-31
10-Q 2011-06-08 Quarter: 2011-04-30
10-K 2011-04-13 Annual: 2011-01-31
10-Q 2010-12-09 Quarter: 2010-10-31
10-Q 2010-09-09 Quarter: 2010-07-31
10-Q 2010-06-09 Quarter: 2010-04-30
10-K 2010-04-16 Annual: 2010-01-31
8-K 2020-01-13 Officers
8-K 2020-01-08 Earnings, Exhibits
8-K 2019-12-24 Earnings, Exhibits
8-K 2019-12-17 Enter Agreement, Exhibits
8-K 2019-12-11 Enter Agreement, Leave Agreement, Off-BS Arrangement, Exhibits
8-K 2019-12-10 Officers, Exhibits
8-K 2019-12-09 Earnings, Exhibits
8-K 2019-10-08 Enter Agreement, Sale of Shares, Officers, Exhibits
8-K 2019-09-11 Earnings, Exhibits
8-K 2019-08-01 Officers, Exhibits
8-K 2019-07-28 Officers, Exhibits
8-K 2019-06-12 Earnings, Exhibits
8-K 2019-05-22 Shareholder Vote, Exhibits
8-K 2019-04-22 Earnings, Exhibits
8-K 2019-04-18 Accountant, Exhibits
8-K 2019-03-12 Other Events
8-K 2019-01-29 Shareholder Vote, Other Events
8-K 2019-01-03 Officers
8-K 2018-12-10 Earnings, Exhibits
8-K 2018-11-20 Enter Agreement, Exhibits
8-K 2018-11-13 Other Events
8-K 2018-09-11 Earnings, Exhibits
8-K 2018-08-17 Officers, Exhibits
8-K 2018-08-06 Officers, Exhibits
8-K 2018-06-15 Officers
8-K 2018-06-06 Earnings, Officers, Exhibits
8-K 2018-05-11 Officers
8-K 2018-04-25 Earnings, Exhibits
8-K 2018-01-18 Officers
STRM 2019-10-31
Part I. Financial Information
Item 1. Financial Statements
Note 1 — Basis of Presentation
Note 2 — Summary of Significant Accounting Policies
Note 3 — Leases
Note 4 — Debt
Note 5 — Convertible Preferred Stock
Note 6 — Income Taxes
Note 7 — Commitments and Contingencies
Note 8 — Related Party Transactions
Note 9 — Subsequent Events
Item 2. Management’S Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Issuer Purchases of Equity Securities
Item 5. Other Information
Item 6. Exhibits
EX-10.5 strm-20191031ex105dac1df.htm
EX-10.6 strm-20191031ex1065e3af2.htm
EX-31.1 strm-20191031ex311b81ba5.htm
EX-31.2 strm-20191031ex3123b85b9.htm
EX-32.1 strm-20191031ex321ccddab.htm
EX-32.2 strm-20191031ex32255cfe2.htm

Streamline Health Solutions Earnings 2019-10-31

STRM 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Comparables ($MM TTM)
Ticker M Cap Assets Liab Rev G Profit Net Inc EBITDA EV G Margin EV/EBITDA ROA
INOD 33 53 23 56 0 -0 4 25 0% 6.0 -1%
PERI 31 256 108 0 0 0 0 -10 0%
WYY 26 54 29 90 16 -0 1 21 18% 34.1 -1%
STRM 25 32 17 16 0 -4 -3 29 0% -10.3 -13%
MTEC 22 59 54 0 0 0 0 22 134.9 0%
NETE 18 23 17 65 5 -6 -3 24 8% -9.2 -27%
MRIN 16 49 26 55 31 -32 -27 5 56% -0.2 -66%
IPAS 14 16 24 44 16 -18 -18 16 37% -0.9 -114%
EVOL 11 27 16 20 14 -24 -21 6 68% -0.3 -88%
TSRI 11 13 6 63 10 -1 -2 7 16% -4.6 -10%

10-Q 1 strm-20191031x10q.htm 10-Q strm_Current_Folio_10Q

 

 

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 


 

FORM 10-Q

 

 

 

(Mark One)

 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended October 31, 2019

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to

Commission File Number: 000‑28132


 

STREAMLINE HEALTH SOLUTIONS, INC.

(Exact name of registrant as specified in its charter)

 

Delaware

    

31‑1455414

(State or other jurisdiction of
incorporation or organization)

 

(I.R.S. Employer
Identification No.)

 

1175 Peachtree Street, NE, 10th Floor

Atlanta, GA 30361

(Address of principal executive offices) (Zip Code)

(888) 997‑8732

(Registrant’s telephone number, including area code)

 


Securities registered pursuant to Section 12(b) of the Act:

 

 

 

 

 

 

 

 

 

 

 

Title of each class

Trading Symbol

Name of each exchange on which registered

Common Stock, $0.01 par value

STRM

The NASDAQ Capital Market

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b‑2 of the Exchange Act.

 

 

 

 

Large accelerated filer 

Accelerated filer

Non-accelerated filer ☒

Smaller reporting company ☒

 

 

 

 

Emerging growth company 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b‑2 of the Exchange Act).   Yes         No ☒

The number of shares outstanding of the Registrant’s Common Stock, $0.01 par value, as of January 2, 2020: 30,744,847

 

 

 

 

 

TABLE OF CONTENTS

 

 

 

 

 

Page

Part I. 

FINANCIAL INFORMATION

2

Item 1. 

Financial Statements

2

 

Condensed Consolidated Balance Sheets at October 31, 2019 and January 31, 2019

2

 

Condensed Consolidated Statements of Operations for the three and nine months ended October 31, 2019 and 2018

4

 

Condensed Consolidated Statements of Stockholders’ Equity for the three and nine months ended October 31, 2019 and 2018

5

 

Condensed Consolidated Statements of Cash Flows for the three and nine months ended October 31, 2019 and 2018

7

 

Notes to Condensed Consolidated Financial Statements

8

Item 2. 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

21

Item 3. 

Quantitative and Qualitative Disclosures About Market Risk

33

Item 4. 

Controls and Procedures

33

Part II. 

OTHER INFORMATION

34

Item 1. 

Legal Proceedings

34

Item 1A. 

Risk Factors

35

Item 2. 

Issuer Purchases of Equity Securities

47

Item 5. 

Other Information

47

Item 6. 

Exhibits

47

 

Signatures

49

 

 

 

 

PART I. FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

STREAMLINE HEALTH SOLUTIONS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

(rounded to the nearest thousand dollars, except share and per share information)

(Unaudited)

 

 

 

 

 

 

 

 

 

As of

 

    

October 31, 2019

    

January 31, 2019

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,220,000

 

$

2,376,000

Accounts receivable, net of allowance for doubtful accounts of $98,000 and $345,000, respectively

 

 

2,214,000

 

 

2,933,000

Contract receivables

 

 

704,000

 

 

1,263,000

Prepaid and other current assets

 

 

1,285,000

 

 

1,235,000

Total current assets

 

 

5,423,000

 

 

7,807,000

Non-current assets:

 

 

  

 

 

  

Property and equipment, net of accumulated amortization of $1,587,000 and $1,516,000, respectively

 

 

175,000

 

 

237,000

Contract receivables, less current portion

 

 

355,000

 

 

407,000

Capitalized software development costs, net of accumulated amortization of $20,544,000 and $19,689,000, respectively

 

 

7,785,000

 

 

5,698,000

Intangible assets, net of accumulated amortization of $4,282,000 and $3,858,000, respectively

 

 

1,245,000

 

 

1,669,000

Goodwill

 

 

15,537,000

 

 

15,537,000

Other

 

 

756,000

 

 

385,000

Total non-current assets

 

 

25,853,000

 

 

23,933,000

Total assets

 

$

31,276,000

 

$

31,740,000

 

See accompanying notes to condensed consolidated financial statements.

2

STREAMLINE HEALTH SOLUTIONS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

(rounded to the nearest thousand dollars, except share and per share information)

(Unaudited)

 

 

 

 

 

 

 

 

 

As of

 

    

October 31, 2019

    

January 31, 2019

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

  

 

 

  

Accounts payable

 

$

629,000

 

$

1,280,000

Accrued expenses

 

 

1,407,000

 

 

1,814,000

Current portion of term loan, net of deferred financing costs

 

 

3,472,000

 

 

597,000

Deferred revenues

 

 

6,310,000

 

 

8,338,000

Royalty liability

 

 

953,000

 

 

 —

Other

 

 

94,000

 

 

94,000

Total current liabilities

 

 

12,865,000

 

 

12,123,000

Non-current liabilities:

 

 

  

 

 

  

Term loan, net of current portion and deferred financing costs

 

 

 —

 

 

3,351,000

Royalty liability

 

 

 —

 

 

905,000

Deferred revenues, less current portion

 

 

123,000

 

 

432,000

Other

 

 

19,000

 

 

41,000

Total non-current liabilities

 

 

142,000

 

 

4,729,000

Total liabilities

 

 

13,007,000

 

 

16,852,000

Series A 0% Convertible Redeemable Preferred Stock, $0.01 par value per share, 5,000,000 shares authorized, no and 2,895,464 shares issued and outstanding, respectively

 

 

 —

 

 

8,686,000

Stockholders’ equity:

 

 

  

 

 

  

Common stock, $0.01 par value per share, 45,000,000 shares authorized; 30,767,439 and 20,767,708 shares issued and outstanding, respectively

 

 

308,000

 

 

208,000

Additional paid in capital

 

 

94,970,000

 

 

82,544,000

Accumulated deficit

 

 

(77,009,000)

 

 

(76,550,000)

Total stockholders’ equity

 

 

18,269,000

 

 

6,202,000

Total liabilities and stockholders' equity

 

$

31,276,000

 

$

31,740,000

 

See accompanying notes to condensed consolidated financial statements.

3

STREAMLINE HEALTH SOLUTIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

(rounded to the nearest thousand dollars, except share and per share information)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended October 31, 

 

Nine Months Ended October 31, 

 

    

2019

    

2018

    

2019

    

2018

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

System sales

 

$

668,000

 

$

309,000

 

$

1,046,000

 

$

1,827,000

Professional services

 

 

626,000

 

 

577,000

 

 

1,615,000

 

 

1,086,000

Audit services

 

 

517,000

 

 

234,000

 

 

1,266,000

 

 

841,000

Maintenance and support

 

 

2,827,000

 

 

3,051,000

 

 

8,537,000

 

 

9,577,000

Software as a service

 

 

1,150,000

 

 

1,198,000

 

 

3,474,000

 

 

3,570,000

Total revenues

 

 

5,788,000

 

 

5,369,000

 

 

15,938,000

 

 

16,901,000

Operating expenses:

 

 

  

 

 

  

 

 

  

 

 

  

Cost of system sales

 

 

135,000

 

 

223,000

 

 

391,000

 

 

763,000

Cost of professional services

 

 

493,000

 

 

675,000

 

 

1,616,000

 

 

2,079,000

Cost of audit services

 

 

325,000

 

 

323,000

 

 

949,000

 

 

1,017,000

Cost of maintenance and support

 

 

453,000

 

 

506,000

 

 

1,275,000

 

 

1,720,000

Cost of software as a service

 

 

356,000

 

 

207,000

 

 

936,000

 

 

805,000

Selling, general and administrative expense

 

 

2,800,000

 

 

2,392,000

 

 

7,745,000

 

 

8,160,000

Research and development

 

 

726,000

 

 

1,026,000

 

 

2,385,000

 

 

3,302,000

Executive transition cost

 

 

481,000

 

 

 —

 

 

621,000

 

 

 —

Loss on exit of operating lease

 

 

 —

 

 

562,000

 

 

 —

 

 

1,368,000

Total operating expenses

 

 

5,769,000

 

 

5,914,000

 

 

15,918,000

 

 

19,214,000

Operating income (loss)

 

 

19,000

 

 

(545,000)

 

 

20,000

 

 

(2,313,000)

Other expense:

 

 

  

 

 

  

 

 

  

 

 

  

Interest expense

 

 

(91,000)

 

 

(106,000)

 

 

(239,000)

 

 

(332,000)

Miscellaneous expense

 

 

(80,000)

 

 

(25,000)

 

 

(224,000)

 

 

(118,000)

Loss before income taxes

 

 

(152,000)

 

 

(676,000)

 

 

(443,000)

 

 

(2,763,000)

Income tax expense

 

 

(12,000)

 

 

(2,000)

 

 

(16,000)

 

 

(5,000)

Net loss

 

$

(164,000)

 

$

(678,000)

 

$

(459,000)

 

$

(2,768,000)

Add: Redemption of Series A Preferred Stock

 

 

4,894,000

 

 

 —

 

 

4,894,000

 

 

 —

Net income (loss) attributable to common shareholders

 

 

4,730,000

 

 

(678,000)

 

 

4,435,000

 

 

(2,768,000)

Net income (loss) per common share - basic

 

$

0.22

 

$

(0.03)

 

$

0.22

 

$

(0.14)

Weighted average number of common shares - basic

 

 

21,598,146

 

 

19,655,882

 

 

20,435,055

 

 

19,495,745

Net loss per common share - diluted

 

$

(0.01)

 

$

(0.03)

 

$

(0.02)

 

$

(0.14)

Weighted average number of common shares - diluted

 

 

21,598,146

 

 

19,655,882

 

 

20,435,055

 

 

19,495,745

 

See accompanying notes to condensed consolidated financial statements.

 

 

4

STREAMLINE HEALTH SOLUTIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

 

(rounded to the nearest thousand dollars, except share information)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

    

 

    

Additional

    

 

 

    

 

 

 

 

Common

 

Common

 

paid in

 

Accumulated

 

Total

 

 

stock shares

 

stock

 

capital

 

deficit

 

stockholders’ equity

Balance at January 31, 2018

 

20,005,977

 

$

200,000

 

$

81,777,000

 

$

(72,125,000)

 

$

9,852,000

Cumulative effect of ASC 606 implementation

 

 —

 

 

 —

 

 

 —

 

 

1,440,000

 

 

1,440,000

Surrender of stock

 

(26,062)

 

 

 —

 

 

(47,000)

 

 

 —

 

 

(47,000)

Conversion of Series A Preferred Stock

 

54,531

 

 

1,000

 

 

163,000

 

 

 —

 

 

164,000

Share-based compensation expense

 

 —

 

 

 —

 

 

222,000

 

 

 —

 

 

222,000

Net loss

 

 

 

 —

 

 

 —

 

 

(569,000)

 

 

(569,000)

Balance at April 30, 2018

 

20,034,446

 

$

201,000

 

$

82,115,000

 

$

(71,254,000)

 

$

11,062,000

Stock issued

 

35,277

 

 

 —

 

 

35,000

 

 

 —

 

 

35,000

Surrender of stock

 

(7,330)

 

 

 —

 

 

(11,000)

 

 

 —

 

 

(11,000)

Restricted stock issued

 

100,000

 

 

1,000

 

 

(1,000)

 

 

 —

 

 

 —

Restricted stock forfeited

 

(122,500)

 

 

(1,000)

 

 

1,000

 

 

 —

 

 

 —

Share-based compensation expense

 

 —

 

 

 —

 

 

145,000

 

 

 —

 

 

145,000

Net loss

 

 

 

 

 

 

 

 

 

 

(1,521,000)

 

 

(1,521,000)

Balance at July 31, 2018

 

20,039,893

 

$

201,000

 

$

82,284,000

 

$

(72,775,000)

 

$

9,710,000

Surrender of stock

 

(3,857)

 

 

 —

 

 

(4,000)

 

 

 —

 

 

(4,000)

Restricted stock issued

 

100,000

 

 

1,000

 

 

(1,000)

 

 

 —

 

 

 —

Restricted stock forfeited

 

(8,333)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

Share-based compensation expense

 

 —

 

 

 —

 

 

125,000

 

 

 —

 

 

125,000

Net loss

 

 

 

 

 

 

 

 

 

 

(678,000)

 

 

(678,000)

Balance at October 31, 2018

 

20,127,703

 

$

202,000

 

$

82,404,000

 

$

(73,453,000)

 

$

9,153,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to condensed consolidated financial statements.

5

STREAMLINE HEALTH SOLUTIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

 

(rounded to the nearest thousand dollars, except share information)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

    

Additional

    

 

 

    

 

 

 

 

Common

 

Common

 

paid in

 

Accumulated

 

Total

 

 

stock shares

 

stock

 

capital

 

deficit

 

stockholders’ equity

Balance at January 31, 2019

 

20,767,708

 

$

208,000

 

$

82,544,000

 

$

(76,550,000)

 

$

6,202,000

Restricted stock issued

 

140,000

 

 

1,000

 

 

(1,000)

 

 

 —

 

 

 —

Restricted stock forfeited

 

(5,367)

 

 

 —

 

 

 —

 

 

 —

 

 

 —

Share-based compensation expense

 

 —

 

 

 —

 

 

269,000

 

 

 —

 

 

269,000

Net income

 

 

 

 —

 

 

 —

 

 

313,000

 

 

313,000

Balance at April 30, 2019

 

20,902,341

 

$

209,000

 

$

82,812,000

 

$

(76,237,000)

 

 

6,784,000

Stock issued

 

5,072

 

 

 —

 

 

4,000

 

 

 —

 

 

4,000

Restricted stock issued

 

222,518

 

 

2,000

 

 

(2,000)

 

 

 —

 

 

 —

Restricted stock forfeited

 

(318,750)

 

 

(3,000)

 

 

3,000

 

 

 —

 

 

 —

Surrender of stock

 

(21,708)

 

 

 —

 

 

(31,000)

 

 

 —

 

 

(31,000)

Share-based compensation expense

 

 —

 

 

 —

 

 

160,000

 

 

 —

 

 

160,000

Capital contribution

 

 —

 

 

 —

 

 

16,000

 

 

 —

 

 

16,000

Net loss

 

 

 

 —

 

 

 —

 

 

(608,000)

 

 

(608,000)

Balance at July 31, 2019

 

20,789,473

 

$

208,000

 

$

82,962,000

 

$

(76,845,000)

 

$

6,325,000

Restricted stock issued

 

550,000

 

 

5,000

 

 

(6,000)

 

 

 —

 

 

(1,000)

Restricted stock forfeited

 

(32,060)

 

 

 —

 

 

1,000

 

 

 —

 

 

1,000

Issuance of common stock, net of $681,000 directly attributable offering expenses

 

9,473,691

 

 

95,000

 

 

8,887,000

 

 

 —

 

 

8,982,000

Redemption of Series A Preferred Stock

 

 —

 

 

 —

 

 

2,873,000

 

 

 —

 

 

2,873,000

Surrender of stock

 

(13,665)

 

 

 —

 

 

(37,000)

 

 

 —

 

 

(37,000)

Share-based compensation expense

 

 —

 

 

 —

 

 

290,000

 

 

 —

 

 

290,000

Net loss

 

 

 

 —

 

 

 —

 

 

(164,000)

 

 

(164,000)

Balance at October 31, 2019

 

30,767,439

 

$

308,000

 

$

94,970,000

 

$

(77,009,000)

 

$

18,269,000

 

See accompanying notes to condensed consolidated financial statements.

 

6

STREAMLINE HEALTH SOLUTIONS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(rounded to the nearest thousand dollars) 

(Unaudited)

 

 

 

 

 

 

 

 

 

Nine Months Ended October 31, 

 

    

2019

    

2018

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

$

(459,000)

 

$

(2,768,000)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

  

 

 

  

Depreciation

 

 

113,000

 

 

411,000

Amortization of capitalized software development costs

 

 

644,000

 

 

895,000

Amortization of intangible assets

 

 

424,000

 

 

705,000

Amortization of other deferred costs

 

 

208,000

 

 

347,000

Valuation adjustments

 

 

48,000

 

 

71,000

Loss on exit of operating lease

 

 

 —

 

 

1,368,000

Gain on disposal of fixed assets

 

 

 —

 

 

5,000

Share-based compensation expense

 

 

719,000

 

 

492,000

Provision for accounts receivable

 

 

(125,000)

 

 

(24,000)

Changes in assets and liabilities:

 

 

  

 

 

  

Accounts and contract receivables

 

 

1,455,000

 

 

591,000

Other assets

 

 

(572,000)

 

 

272,000

Accounts payable

 

 

(651,000)

 

 

1,049,000

Accrued expenses

 

 

(442,000)

 

 

54,000

Deferred revenues

 

 

(2,337,000)

 

 

(4,176,000)

Net cash provided by operating activities

 

 

(975,000)

 

 

(708,000)

Cash flows from investing activities:

 

 

  

 

 

  

Purchases of property and equipment

 

 

(51,000)

 

 

(21,000)

Proceeds from sales of property and equipment

 

 

 —

 

 

20,000

Capitalization of software development costs

 

 

(2,730,000)

 

 

(2,288,000)

Net cash used in investing activities

 

 

(2,781,000)

 

 

(2,289,000)

Cash flows from financing activities:

 

 

  

 

 

  

Proceeds from issuance of common stock

 

 

9,663,000

 

 

 —

Payments for costs directly attributable to the issuance of common stock

 

 

(681,000)

 

 

 —

Principal payments on term loan

 

 

(448,000)

 

 

(448,000)

Payments related to settlement of employee shared-based awards

 

 

(50,000)

 

 

(62,000)

Redemption of Series A Convertible Preferred Stock

 

 

(5,791,000)

 

 

 —

Fees paid for redemption of Series A Convertible Preferred Stock

 

 

(22,000)

 

 

 —

Payment of deferred financing costs

 

 

(73,000)

 

 

 —

Other

 

 

2,000

 

 

31,000

Net cash provided by (used in) financing activities

 

 

2,600,000

 

 

(479,000)

Net decrease in cash and cash equivalents

 

 

(1,156,000)

 

 

(3,476,000)

Cash and cash equivalents at beginning of period

 

 

2,376,000

 

 

4,620,000

Cash and cash equivalents at end of period

 

$

1,220,000

 

$

1,144,000

 

See accompanying notes to condensed consolidated financial statements.

 

 

7

STREAMLINE HEALTH SOLUTIONS, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE 1 — BASIS OF PRESENTATION

The accompanying condensed consolidated balance sheet as of January 31, 2019, which has been derived from audited financial statements, and the unaudited interim condensed consolidated financial statements have been prepared by Streamline Health Solutions, Inc. (“we”, “us”, “our”, “Streamline”, or the “Company”), pursuant to the rules and regulations applicable to quarterly reports on Form 10‑Q of the U.S. Securities and Exchange Commission the “SEC”. Certain information and note disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, although we believe that the disclosures made are adequate to make the information not misleading. The condensed consolidated financial statements include the accounts of Streamline Health Solutions, Inc. and its wholly-owned subsidiary, Streamline Health, Inc. In the opinion of our management, the accompanying unaudited interim condensed consolidated financial statements reflect all adjustments considered necessary to present fairly the Company’s financial position at October 31, 2019, and the results of its operations for the three and nine month months ended October 31, 2019 and October 31, 2018, and its cash flows for the nine months ended October 31, 2019 and 2018. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our most recent annual report on Form 10‑K, Commission File Number 0‑28132. Operating results for the nine months ended October 31, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending January 31, 2020.

 

The Company determined that it has one operating segment and one reporting unit due to the singular nature of our products, product development and distribution process, and customer base as a provider of computer software-based solutions and services for healthcare providers.

 

All amounts in the condensed consolidated financial statements, notes and tables have been rounded to the nearest thousand dollars, except share and per share amounts, unless otherwise indicated. Certain amounts in the condensed consolidated financial statements and notes thereto have been reclassified to conform to current period presentation.

 

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Our significant accounting policies are presented in “Note 2 – Significant Accounting Policies” in the fiscal year 2018 Annual Report on Form 10‑K. Users of financial information for interim periods are encouraged to refer to the footnotes to the consolidated financial statements contained in the Annual Report on Form 10‑K when reviewing interim financial results.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Immaterial Correction of Errors

In connection with the preparation of the Company’s financial statements for the third quarter ended October 31, 2019, the Company discovered certain errors in “Capitalized software development costs” and related amortization expense for previous periods.  The errors resulted from (i) assets that did not begin to be amortized timely, and (ii) an incorrect method of amortizing the assets. 

The assets that did not begin amortizing timely resulted from an administrative error, while the incorrect method of amortization was related to a misapplication of GAAP.  Certain general release documentation was not prepared timely, and distributed, and, accordingly, the Company did not place certain enhancements into service and begin amortization. 

8

Further, the Company has corrected its underlying financial records to utilize the “carry-over” method for amortizing capitalized software development cost.  Under the “carry-over” method, the costs of the enhancements are added to the unamortized costs of the previous version of the product and the combined amount is amortized over the remaining useful life of the product. Including unamortized cost of the original product with the cost of the enhancement for purposes of applying the net realizable value test and amortization provisions is consistent with accounting guidance for software companies that improve their software and discontinue selling or marketing the older versions.  While this method reduced amortization of the underlying assets, the Company’s evaluation of  the net book value of the underlying software development assets in relation to  net realizable value and future cash flows each period ensured the carrying value was not in excess of the net realizable value of a solution for any period. Further, in accordance with guidance for software companies under ASC 985, the Company ensures that amortization is the greater of (i) the ratio of the software product’s current gross revenues to the total of current and expected gross revenues or (ii) straight-line over the remaining economic useful life of the software. The Company continues to monitor its estimated useful life on the underlying products, taking into consideration the product, the market and the industry.

The two corrections relating to the amortization of capitalized software development costs off-set one another in certain previous periods.  Additionally, the differences between (i) the amounts calculated, as adjusted for these corrections, and (ii) the amount recorded in previous periods substantially self-corrected by the end of the third quarter, October 31, 2019. 

The Company, in consultation with the Audit Committee of the Board of Directors, evaluated the effect of these adjustments on the Company’s financial statements under Accounting Standards Codification (“ASC”) 250: Accounting Changes and Error Corrections and Staff Accounting Bulletin No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements and determined it was not necessary to restate its previously issued financial statements, or unaudited interim period financial statements, because the errors did not materially misstate any previously issued financial statements and the correction of the errors in the current fiscal year is also not material. The Company looked at both quantitative and qualitative characteristics of the required corrections.  

The net impact of these errors resulted in a $214,000 and $532,000 understatement of amortization expense for capitalized software development costs for the three- and nine-month periods ended October 31, 2019, respectively. The Company’s previously reported amortization expense for capitalized software development costs was misstated by the following amounts: 

 

 

 

 

 

 

 

Overstatement /

 

 

 

(Understatement) of

Period

 

 

Amortization Expense

Prior to fiscal year ended January 31, 2019

 

$

532,000

Three months ended April 30, 2019

 

$

(153,000)

Three months ended July 31, 2019

 

$

(165,000)

9

 

Capitalized Software Development Costs

Software development costs for software to be sold, leased, or marketed are accounted for in accordance with ASC 985‑20, Software — Costs of Software to be Sold, Leased or Marketed. Costs associated with the planning and design phase of software development are classified as research and development costs and are expensed as incurred. Once technological feasibility has been established, a portion of the costs incurred in development, including coding, testing and quality assurance, are capitalized until available for general release to clients, and subsequently reported at the lower of unamortized cost or net realizable value. Amortization is calculated on a solution-by-solution basis and is included in Cost of system sales on the Condensed Consolidated Statements of Operations. Annual amortization is measured at the greater of a) the ratio of the software product’s current gross revenues to the total of current and expected gross revenues or b) straight-line over the remaining economic life of the software (typically three to five years).  Unamortized capitalized costs determined to be in excess of the net realizable value of a solution are expensed at the date of such determination.  Capitalized software development costs for software to be sold, leased, or marketed, net of accumulated amortization, totaled $3,470,000 and $2,921,000 as of October 31, 2019 and January 31, 2019, respectively. 

Internal-use software development costs are accounted for in accordance with ASC 350-40, Internal-Use Software.  The costs incurred in the preliminary stages of development are expensed as research and development costs as incurred. Once an application has reached the development stage, internal and external costs incurred to develop internal-use software are capitalized and amortized on a straight-line basis over the estimated useful life of the software (typically three to five years). Maintenance and enhancement costs, including those costs in the post-implementation stages, are typically expensed as incurred, unless such costs relate to substantial upgrades and enhancements to the software that result in added functionality, in which case the costs are capitalized and amortized on a straight-line basis over the estimated useful life of the software. The Company reviews the carrying value for impairment whenever facts and circumstances exist that would suggest that assets might be impaired or that the useful lives should be modified. Amortization expense related to capitalized internal-use software development costs is included in Cost of software as a service on the Condensed Consolidated Statements of Operations.  Capitalized software development costs for internal-use software, net of accumulated amortization, totaled $4,153,000 and $2,565,000 as of October 31, 2019 and January 31, 2019, respectively.

The estimated useful lives of software (including software to be sold and internal-use software) are reviewed frequently and adjusted as appropriate to reflect upcoming development activities that may include significant upgrades and/or enhancements to the existing functionality.  The Company reviews, on an on-going basis, the carrying value of its capitalized software development expenditures, net of accumulated amortization.

Fair Value of Financial Instruments

The Financial Accounting Standards Board’s (“FASB”) authoritative guidance on fair value measurements establishes a framework for measuring fair value. This guidance enables the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values. Under this guidance, assets and liabilities carried at fair value must be classified and disclosed in one of the following three categories:

Level 1: Quoted market prices in active markets for identical assets or liabilities.

Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data.

Level 3: Unobservable inputs that are not corroborated by market data.

The carrying amounts of cash and cash equivalents, accounts receivable, accounts payable and accrued expenses approximate fair value based on the short-term maturity of these instruments. Cash and cash equivalents are classified as Level 1. The carrying amount of our long-term debt approximates fair value since the variable interest rates being paid

10

on the amounts approximate the market interest rate. Long-term debt is classified as Level 2. There were no transfers of assets or liabilities between Levels 1, 2, or 3 as of October 31, 2019 or January 31, 2019.

The table below provides information on our liabilities that are measured at fair value on a recurring basis:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

    

Quoted Prices in

    

Significant Other

    

Significant

 

 

Total Fair

 

Active Markets

 

Observable Inputs

 

Unobservable Inputs

 

 

Value

 

(Level 1)

 

 (Level 2)

 

(Level 3)

At October 31, 2019

 

 

  

 

 

  

 

 

  

 

 

  

Royalty liability (1)

 

$

953,000

 

$

 —

 

$

 —

 

$

953,000

 

 

 

 

 

 

 

 

 

 

 

 

 

At January 31, 2019

 

 

  

 

 

  

 

 

  

 

 

  

Royalty liability (1)

 

$

905,000

 

$

 —

 

$

 —

 

$

905,000


(1)

The fair value of the royalty liability was determined based on discounting the portion of the modified royalty commitment payable in cash (refer to Note 7 – Commitments and Contingencies for additional information on our royalty liability). Fair value adjustments are included within miscellaneous expense in the condensed consolidated statements of operations.

Revenue Recognition

We derive revenue from the sale of internally-developed software, either by licensing for local installation or by a software as a service (“SaaS”) delivery model, through our direct sales force or through third-party resellers. Licensed, locally-installed clients on a perpetual model utilize our support and maintenance services for a separate fee, whereas term-based locally installed license fees and SaaS fees include support and maintenance. We also derive revenue from professional services that support the implementation, configuration, training and optimization of the applications, as well as audit services provided to help clients review their internal coding audit processes. Additional revenues are also derived from reselling third-party software and hardware components.

We recognize revenue in accordance with ASC 606, Revenue from Contracts with Customers (“ASC 606”). The core principle of ASC 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

We commence revenue recognition (Step 5 below) in accordance with that core principle after applying the following steps:

·

Step 1: Identify the contract(s) with a customer

·

Step 2: Identify the performance obligations in the contract

·

Step 3: Determine the transaction price

·

Step 4: Allocate the transaction price to the performance obligations in the contract

·

Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation

We follow the accounting revenue guidance under ASC 606 to determine whether contracts contain more than one performance obligation. Performance obligations are the unit of accounting for revenue recognition and generally represent the distinct goods or services that are promised to the customer. Revenue is recognized net of any taxes collected from customers and subsequently remitted to governmental authorities.

If we determine that we have not satisfied a performance obligation, we will defer recognition of the revenue until the performance obligation is deemed to be satisfied. Maintenance and support and SaaS agreements are generally non-

11

cancelable or contain significant penalties for early cancellation, although clients typically have the right to terminate their contracts for cause if we fail to perform material obligations. However, if non-standard acceptance periods, non-standard performance criteria, or cancellation or right of refund terms are required, revenue is recognized upon the satisfaction of such criteria.

Significant judgment is required to determine the standalone selling price (“SSP”) for each performance obligation, the amount allocated to each performance obligation and whether it depicts the amount that the Company expects to receive in exchange for the related product and/or service. As the selling prices of the Company’s software licenses are highly variable, the Company estimates SSP of its software licenses using the residual approach when the software license is sold with other services and observable SSPs exist for the other services. The Company estimates the SSP for maintenance, professional services, and audit services based on observable standalone sales.

Contract Combination

The Company may execute more than one contract or agreement with a single customer. The Company evaluates whether the agreements were negotiated as a package with a single objective, whether the amount of consideration to be paid in one agreement depends on the price and/or performance of another agreement, or whether the good or services promised in the agreements represent a single performance obligation. The conclusions reached can impact the allocation of the transaction price to each performance obligation and the timing of revenue recognition related to those arrangements.

Systems Sales

The Company’s software license arrangements provide the customer with the right to use functional intellectual property. Implementation, support, and other services are typically considered distinct performance obligations when sold with a software license unless these services are determined to significantly modify the software. Revenue is recognized at a point in time. Typically, this is upon shipment of components or electronic download of software.

Maintenance and Support Services

Our maintenance and support obligations include multiple discrete performance obligations, with the two largest being unspecified product upgrades or enhancements, and technical support, which can be offered at various points during a contract period. We believe that the multiple discrete performance obligations within our overall maintenance and support obligations can be viewed as a single performance obligation since both the unspecified upgrades and technical support are activities to fulfill the maintenance performance obligation and are rendered concurrently. Maintenance and support agreements entitle clients to technology support, version upgrades, bug fixes and service packs. We recognize maintenance and support revenue ratably over the contract term as this best depicts the access to unspecified upgrades and support provided over time.

Software-Based Solution Professional Services

The Company provides various professional services to customers with software licenses. These include project management, software implementation and software modification services. Revenues from arrangements to provide professional services are generally distinct from the other promises in the contract and are recognized as the related services are performed. Consideration payable under these arrangements is either fixed fee or on a time-and-materials basis.

Software as a Service

SaaS-based contracts include use of the Company’s platform, implementation, support and other services which represent a single promise to provide continuous access to its software solutions. The Company recognizes revenue ratably over the contract term.

12

We defer the direct costs, which include salaries, benefits and contractor fees, for professional services related to SaaS contracts. These deferred costs will be amortized ratably over the identical term as the associated revenues. As of October 31, 2019, and January 31, 2019, we had deferred costs of $210,000 and $251,000, respectively, net of accumulated amortization of $244,000 and $399,000, respectively. Amortization expense of these costs was $45,000 and $91,000 for the three months ended October 31, 2019 and 2018, respectively, and $150,000 and $193,000 for the nine months ended October 31, 2019 and 2018, respectively.

Audit Services

Audit services are a separate performance obligation. We recognize revenue over time as the services are performed.

Disaggregation of Revenue

The following table provides information about disaggregated revenue by type and nature of revenue stream:

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended October 31, 2019

 

    

Recurring Revenue

    

Non-recurring Revenue

    

Total

Systems sales

 

$

27,000

 

$

1,019,000

 

$

1,046,000

Professional services

 

 

 —

 

 

1,615,000

 

 

1,615,000

Audit services

 

 

 —

 

 

1,266,000

 

 

1,266,000

Maintenance and support

 

 

8,537,000

 

 

 —

 

 

8,537,000

Software as a service

 

 

3,474,000

 

 

 —

 

 

3,474,000

Total revenue:

 

$

12,038,000

 

$

3,900,000

 

$

15,938,000

 

Contract Receivables and Deferred Revenues

The Company receives payments from customers based upon contractual billing schedules. Contract receivables include amounts related to the Company’s contractual right to consideration for completed performance obligations not yet invoiced. Deferred revenues include payments received in advance of performance under the contract. Our contract receivables and deferred revenue are reported on an individual contract basis at the end of each reporting period. Contract receivables are classified as current or noncurrent based on the timing of when we expect to bill the customer. Deferred revenue is classified as current or noncurrent based on the timing of when we expect to recognize revenue. In the nine-month period ended October 31, 2019 we recognized $6,244,000 in revenue from deferred revenues outstanding as of January 31, 2019.

Transaction price allocated to the remaining performance obligations

Revenue allocated to remaining performance obligations represents contracted revenue that will be recognized in future periods, which is comprised of deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. Revenue allocated to remaining performance obligations was $24 million as of October 31, 2019, of which the Company expects to recognize approximately 70% over the next 12 months and the remainder thereafter.

Deferred commissions costs (contract acquisition costs)

Contract acquisition costs, which consist of sales commissions paid or payable, are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions for initial and renewal contracts are deferred and then amortized on a straight-line basis over the contract term. As a practical expedient, we expense sales commissions as incurred when the amortization period of related deferred commission costs would have been one year or less.

Deferred commissions costs paid and payable, which are included on the condensed consolidated balance sheets within prepaid and other current assets and other non-current assets totaled $155,000 and $319,000, respectively, as of October 31, 2019. For the three- and nine-month periods ended October 31, 2019, $95,000 and $150,000, respectively,

13

in amortization expense associated with sales commissions was included in selling, general and administrative expenses on the condensed consolidated statements of operations. There were no impairment losses for these capitalized costs for the three- and nine-months ended October 31, 2019 and 2018.

Equity Awards

We account for share-based payments based on the grant-date fair value of the awards with compensation cost recognized as expense over the requisite vesting period. We incurred total compensation expense related to stock-based awards of $290,000 and $125,000 for the three months ended October 31, 2019 and 2018, respectively, and $719,000 and $492,000 for the nine months ended October 31, 2019 and 2018, respectively.

The fair value of the stock options granted is estimated at the date of grant using a Black-Scholes option pricing model. The option pricing model inputs (such as expected term, expected volatility, and risk-free interest rate) impact the fair value estimate. Further, the forfeiture rate impacts the amount of aggregate compensation. These assumptions are subjective and are generally derived from external (such as risk-free rate of interest) and historical (such as volatility factor, expected term, and forfeiture rates) data. Future grants of equity awards accounted for as stock-based compensation could have a material impact on reported expenses depending upon the number, value, and vesting period of future awards.

We periodically issue restricted stock awards in the form of our common stock. The fair value of these awards is based on the market closing price per share on the date of grant. We expense the compensation cost of these awards as the restriction period lapses, which is typically a one- to four-year service period to the Company. During the third quarter ended October 31, 2019, the Company awarded 50,000 shares of restricted stock to its President and Chief Executive Officer that vested immediately, in addition to a performance award of 100,000 shares of restricted stock that will vest based upon the fulfillment of certain predetermined revenue growth percentage targets that will be assessed at July 31, 2020.

Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and for tax credit and loss carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. In assessing net deferred tax assets, we consider whether it is more likely than not that some or all of the deferred tax assets will not be realized. We establish a valuation allowance when it is more likely than not that all or a portion of deferred tax assets will not be realized. The Company maintains a full valuation allowance against its deferred tax assets.

We provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether certain tax positions are more likely than not to be sustained upon examination by tax authorities. We believe we have appropriately accounted for any uncertain tax positions. The Company has recorded $296,000 and $275,000 in reserves for uncertain tax positions and corresponding interest and penalties as of October 31, 2019 and January 31, 2019, respectively.

The Company and its subsidiary are subject to U.S. federal income tax as well as income taxes in multiple state and local jurisdictions. The Company has concluded all U.S. federal tax matters for years through January 31, 2015. All material state and local income tax matters have been concluded for years through January 31, 2014. The Company is no longer subject to IRS examination for periods prior to the tax year ended January 31, 2016; however, carryforward losses that were generated prior to the tax year ended January 31, 2016 may still be adjusted by the IRS if they are used in a future period. 

14

Net Earnings (Loss) Per Common Share

The Company presents basic and diluted earnings per share (“EPS”) data for our common stock. Our Series A Convertible Preferred Stock are considered participating securities under ASC 260, Earnings Per Share (“ASC 260”) which means the security may participate in undistributed earnings with common stock. The holders of the Series A Convertible Preferred Stock would be entitled to share in dividends, on an as-converted basis, if the holders of common stock were to receive dividends, other than dividends in the form of common stock. In accordance with ASC 260, the Company is required to use the two-class method when computing EPS. The two-class method is an earnings allocation formula that determines EPS for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. In determining the amount of net earnings to allocate to common stockholders, earnings are allocated to both common and participating securities based on their respective weighted-average shares outstanding for the period (with the exception of the gain on the redemption of our Series A Convertible Preferred Stock, which was allocated in its entirety to the common stock).

Our unvested restricted stock awards are considered non-participating securities because holders are not entitled to non-forfeitable rights to dividends or dividend equivalents during the vesting term. In accordance with ASC 260, securities are deemed not to be participating in losses if there is no obligation to fund such losses. The Series A Convertible Preferred Stock does not participate in losses, and as a result, the Company does not allocate losses to these securities in periods of loss. Diluted EPS for our common stock is computed using the more dilutive of the two-class method or the “if-converted” and treasury stock methods. See Note 5 for further discussion of the redemption of our Series A Convertible Preferred Stock.

The following is the calculation of the basic and diluted net loss per share of common stock:

 

 

 

 

 

 

 

 

 

Three Months Ended

 

    

October 31, 2019

    

October 31, 2018

Net loss

 

$

(164,000)

 

$

(678,000)

Add: redemption of Series A Convertible Preferred Stock

 

 

4,894,000

 

 

 —

Net income (loss) attributable to common shareholders

 

 

4,730,000

 

 

(678,000)

Weighted average shares outstanding - Basic (1)

 

 

21,598,146

 

 

19,655,882

Effect of dilutive securities - Stock options, Restricted stock and Series A Convertible Preferred Stock (2)

 

 

 —

 

 

 —

Weighted average shares outstanding - Diluted

 

 

21,598,146

 

 

19,655,882

Basic net income (loss) per share of common stock

 

$

0.22

 

$