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x
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ANNUAL REPORT PURSUANT TO SECTION
13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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¨
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TRANSITION REPORT UNDER SECTION
13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF
1934
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Nevada
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85-0206668
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(State
or Other Jurisdiction of Incorporation or
Organization) |
(IRS
Employer Identification No.)
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2490
East Sunset Road, Suite 100
Las
Vegas, Nevada
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89120
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(Address
of principal executive offices)
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(Zip
Code)
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Large
accelerated filer o
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Accelerated
filer o
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Non-accelerated
filer o (Do
not check if a smaller reporting company)
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Smaller
reporting company x
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Item
9B.
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Other Information
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63
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§
|
Website
URL acquisition services whereby we obtain website address names on behalf
of our small business clients;
|
|
§
|
Website
development and deployment services where we create, house and manage
websites on behalf of our small business
clients;
|
|
§
|
Website
traffic and audience development services which provides sophisticated
search engine marketing techniques, access to our own websites,
partnerships with other websites and other techniques to generate traffic
to our customers’ websites, whether created and housed by us or
not;
|
|
§
|
Website
analytics and performance reports that generate information for our
customers about activities on their websites and lead activities for their
businesses based on Internet
activities;
|
|
§
|
Directory
services whereby we provide both basic and enhanced directory listings for
our customers on our own directory and on partner
directories:
|
|
·
|
Larger
font.
|
|
·
|
Bolded business
name.
|
|
·
|
A “tagline” whereby the
advertiser can differentiate itself from its
competitors.
|
|
·
|
Submission of location to search
engines.
|
|
·
|
Map
directions.
|
|
·
|
A link to the advertiser’s own
webpage and email address.
|
|
·
|
Additional distribution network
for preferred listings. This feature gives additional exposure to our IAP
advertisers by placing their preferred listing on several online directory
systems. There currently is no charge to the IAP advertiser for
these additional channels of
distribution.
|
|
§
|
Website
acquisition whereby we obtain website address names on behalf of our small
business clients;
|
|
§
|
Website
development and deployment services where we create, house and manage
websites on behalf of our small business
clients;
|
|
§
|
Website
traffic and audience development whereby we provide sophisticated search
engine marketing techniques, access to our own websites, partnerships with
other websites and other techniques to generate traffic to our customers’
websites, whether created and housed by us or
not;
|
|
§
|
Website
analytics and performance reports which generate information for our
customers about activities on their websites and lead activities for their
businesses based on Internet activities;
and
|
|
§
|
Directory
services that provide both basic and enhanced directory listings for our
customers on our own directory and on partner
directories.
|
|
·
|
More current and extensive
listing information;
|
|
·
|
Immediate access to business
listings across the nation from any location;
|
|
·
|
Broad accessibility via computers
and hand-held devices, such as mobile phones and personal digital
assistants
|
|
·
|
Features such as mapping, direct
calling to the advertiser, and e-mail at the click of a button also may be
available;
|
|
·
|
Linear scaling architecture using
low cost commodity hardware;
|
|
·
|
An architecture based on
redundancy for scalable quick user responses;
|
|
·
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Proven search technology which
scales for large volumes;
|
|
·
|
Enhanced security using HTTPS,
Encryption, and data obfuscation;
and
|
|
·
|
Internationalized Architecture
for quick localization.
|
|
·
|
We
have cross-marketing arrangements with reciprocal linking of websites
without any compensation to either party. These arrangements increase the
page views for our advertisers’ listings by being listed on the linked
websites. These co-promotional arrangements typically are terminable with
one month’s notice.
|
|
We
have an agreement with Google, Inc. designating us as an Authorized
Reseller of the Google AdWords advertising system, which also provides us
with access to Google training and services that we can then utilize on
behalf of our small business
clients.
|
|
·
|
We have an agreement with Yahoo!
Search Services to provide visibility to our website so that we can
provide traffic to our advertisers. In exchange for monthly fees, Yahoo!
Search Services assists in helping us to be one of the highest placed
sites when Yellow Pages searches are done on major search engines, such as
MSN and Yahoo!.
|
|
·
|
We began featuring Yelp’s 1.8 million
customer reviews on our Yellow Pages platforms, giving LiveDeal users an
enormous wealth of user-generated content about local area
businesses.
|
|
·
|
some competitors have longer
operating histories and greater financial and other resources than we have
and are in better financial condition than we
are;
|
|
·
|
some competitors have better name
recognition, as well as larger, more established, and more extensive
marketing, customer service, and customer support capabilities than we
have;
|
|
·
|
some competitors may supply a
broader range of services, enabling them to serve more or all of their
customers’ needs;
|
|
·
|
some competitors may be able to
better adapt to changing market conditions and customer demand;
and
|
|
·
|
barriers to entry are not
significant. As a result, other companies that are not
currently involved in the online marketing business may enter the market
or develop technology that reduces the need for our
services.
|
|
·
|
fluctuating demand for our
services, which may depend on a number of factors including:
|
|
o
|
changes in economic conditions
and our IAP advertisers’
profitability,
|
o
|
IAP advertiser refunds or
cancellations, and
|
|
o
|
our ability to continue to bill
through existing means;
|
|
·
|
market acceptance of new or
enhanced versions of our services or
products;
|
|
·
|
price competition or pricing
changes by us or our
competitors;
|
|
·
|
new product offerings or other
actions by our competitors;
|
|
·
|
the ability of our check
processing service providers to continue to process and provide billing
information regarding our solicitation
checks;
|
|
·
|
the amount and timing of
expenditures for expansion of our operations, including the hiring of new
employees, capital expenditures, and related
costs;
|
|
·
|
technical difficulties or
failures affecting our systems or the Internet in
general;
|
|
·
|
a decline in Internet traffic at
our website; and
|
|
·
|
the fixed nature of a significant
amount of our operating
expenses.
|
|
·
|
the pace of expansion of our
operations;
|
|
·
|
our need to respond to
competitive pressures; and
|
|
·
|
future acquisitions of
complementary products, technologies or
businesses.
|
|
·
|
cease selling or using any of our
products that incorporate the challenged intellectual property, which
would adversely affect our
revenue;
|
|
·
|
obtain a license from the holder
of the intellectual property right alleged to have been infringed, which
license may not be available on reasonable terms, if at all;
and
|
|
·
|
redesign or, in the case of
trademark claims, rename our products or services to avoid infringing the
intellectual property rights of third parties, which may not be possible
and in any event could be costly and
time-consuming.
|
|
·
|
exposure
to unanticipated liabilities of an acquired company (or acquired
assets);
|
|
·
|
the
potential loss of key customers or key personnel in connection with, or as
the result of, a transaction;
|
|
·
|
the
recording of goodwill and intangible assets that will be subject to
impairment testing on a regular basis and potential periodic impairment
charges;
|
|
·
|
the
diversion of the attention of our management team from other business
concerns, including the day-to-day management of our Company and/or the
internal growth strategies that they are currently implementing;
and
|
|
·
|
the
risk of entering into markets or producing products where we have limited
or no experience, including the integration of the purchased technologies
and products with our technologies and
products.
|
|
·
|
rapid technological
change;
|
|
·
|
changes in advertiser and user
requirements and
preferences;
|
|
·
|
frequent new product and service
introductions embodying new technologies;
and
|
|
·
|
the emergence of new industry
standards and practices that could render our existing service offerings,
technology, and hardware and software infrastructure
obsolete.
|
|
·
|
enhance our existing services and
develop new services and technology that address the increasingly
sophisticated and varied needs of our prospective or current IAP
advertisers;
|
|
·
|
license, develop or acquire
technologies useful in our business on a timely basis;
and
|
|
·
|
respond to technological advances
and emerging industry standards and practices on a cost-effective and
timely basis.
|
|
·
|
decreased demand in the Internet
services sector;
|
|
·
|
variations in our operating
results;
|
|
·
|
announcements of technological
innovations or new services by us or our
competitors;
|
|
·
|
changes in expectations of our
future financial performance, including financial estimates by securities
analysts and investors;
|
|
·
|
our failure to meet analysts’
expectations;
|
|
·
|
changes in operating and stock
price performance of other technology companies similar to
us;
|
|
·
|
conditions or trends in the
technology industry;
|
|
·
|
additions or departures of key
personnel; and
|
|
·
|
future sales of our common
stock.
|
|
·
|
the authority of our board to
issue up to 5,000,000 shares of serial preferred stock and to
determine the price, rights, preferences, and privileges of these shares,
without stockholder
approval;
|
|
·
|
all stockholder actions must be
effected at a duly called meeting of stockholders and not by written
consent unless such action or proposal is first approved by our board of
directors;
|
|
·
|
special
meetings of the stockholders may be called only by the Chairman of the
Board, the Chief Executive Officer, or the President of our company;
and
|
|
·
|
cumulative voting is not allowed
in the election of our
directors.
|
Fiscal Year
|
Quarter Ended
|
High
|
Low
|
|||||||||
2008
|
December 31, 2007
|
$ | 7.00 | $ | 3.30 | |||||||
March 31, 2008
|
$ | 5.70 | $ | 3.18 | ||||||||
June 30, 2008
|
$ | 3.94 | $ | 2.35 | ||||||||
September 30, 2008
|
$ | 2.59 | $ | 1.40 | ||||||||
2009
|
December 31, 2008
|
$ | 2.00 | $ | 1.02 | |||||||
March 31, 2009
|
$ | 2.20 | $ | 1.24 | ||||||||
June 30, 2009
|
$ | 2.10 | $ | 1.00 | ||||||||
September 30, 2009
|
$ | 1.70 | $ | 1.01 |
9/30/2004
|
9/30/2005
|
9/30/2006
|
9/30/2007
|
9/30/2008
|
9/30/2009
|
|||||||||||||||||||
LiveDeal,
Inc.
|
$ | 100.00 | $ | 83.06 | $ | 86.87 | $ | 63.10 | $ | 14.32 | $ | 15.27 | ||||||||||||
Wilshire
5000 Index
|
$ | 100.00 | $ | 112.79 | $ | 122.49 | $ | 140.99 | $ | 108.99 | $ | 100.15 | ||||||||||||
Dow
Jones Internet Services Index
|
$ | 100.00 | $ | 126.26 | $ | 155.70 | $ | 182.75 | $ | 151.33 | $ | 173.07 |
|
§
|
Website
URL acquisition services whereby we obtain website address names on behalf
of our small business clients;
|
|
§
|
Website
development and deployment services where we create, house and manage
websites on behalf of our small business
clients;
|
|
§
|
Website
traffic and audience development services which provides sophisticated
search engine marketing techniques, access to our own websites,
partnerships with other websites and other techniques to generate traffic
to our customers’ websites, whether created and housed by us or
not;
|
|
§
|
Website
analytics and performance reports that generate information for our
customers about activities on their websites and lead activities for their
businesses based on Internet activities;
and
|
|
§
|
Directory
services whereby we provide both basic and enhanced directory listings for
our customers on our own directory and on partner
directories.
|
|
·
|
The
current effects of the recession and general economic
downturn;
|
|
·
|
Our
perception that the general economic downturn could lead our business
customers to seek lower-cost customer acquisition methods, primarily
through the Internet;
|
|
·
|
The
sale of our “www.yp.com” domain name in the first quarter of fiscal 2009,
which domain name was associated with our traditional
business;
|
|
·
|
The
reconstitution of our management team with additional capability in
Internet-based technologies;
|
|
·
|
The
termination of certain significant directory business contracts related to
the traditional business;
|
|
·
|
The
sale of certain of our traditional business assets including certain of
our customer lists; and
|
|
·
|
Continuing
losses in our classifieds
business.
|
|
·
|
Impairment
charges of $16,111,494 were recorded related to the write-down of our
goodwill and other intangible
assets;
|
|
·
|
We
commenced a plan to discontinue our classifieds business and initiated
shutdown activities;
|
|
·
|
We
sold our a customer list associated with its directory services business
and recorded a gain of $3,040,952;
and
|
|
·
|
We
established a valuation allowance of $10,586,854 related to our deferred
tax assets.
|
|
·
|
Rajeev
Seshadri replaced Gary Perschbacher as Chief Financial Officer effective
January 20, 2009; and
|
|
·
|
John
Raven submitted his resignation as President and Chief Operating Officer
effective February 15, 2009.
|
|
·
|
The
goodwill acquired in our acquisition of LiveDeal, Inc., the business focus
of which was online classified
advertising;
|
|
·
|
The
goodwill acquired in our acquisition of a Philippines call-center, OnCall
Subscriber Management, the business focus of which was providing
telemarketing services to acquire customers for our directory
services business;
|
|
·
|
Assets
related to our call-center operations and non-compete agreements that were
effectively made obsolete by the sale of a portion of our customer list
associated with our directory services business;
and
|
|
·
|
Intangible
assets related to our directory services business, including URLs,
internally developed software, and other miscellaneous intangible
assets.
|
Continuing
Operations
|
Discontinued
Operations
|
Total
Impairment
|
||||||||||
Goodwill
|
$ | 4,350,041 | $ | 7,356,365 | $ | 11,706,406 | ||||||
Domain
name and marketing related intangibles
|
1,879,054 | - | 1,879,054 | |||||||||
Assets
related to customer list
|
1,259,680 | - | 1,259,680 | |||||||||
Website
and technology related intangibles
|
377,334 | 889,020 | 1,266,354 | |||||||||
$ | 7,866,109 | $ | 8,245,385 | $ | 16,111,494 |
|
·
|
Fulfillment
and Marketing Agreement dated October 10, 2007, by and between the Company
and Sharednet.
|
|
·
|
Fulfillment
and Marketing Agreement dated October 16, 2007, by and between the Company
and OneSource Web Hosting.
|
|
·
|
Fulfillment
and Marketing Agreement dated October 10,2007, by and between the Company
and Blabb1e Networks.
|
Year Ended
September 30,
|
Net
Revenues
|
Change from
Prior Year
|
Percent Change
from Prior Year
|
||||||||||
2009
|
$ | 13,438,655 | $ | (9,982,003 | ) | (42.6 | )% | ||||||
2008
|
$ | 23,420,658 |
Year Ended
September 30,
|
Cost of
Services
|
Change from
Prior Year
|
Percent Change
from Prior Year
|
||||||||||
2009
|
$ | 6,391,778 | $ | 2,050,524 | 47.2 | % | |||||||
2008
|
$ | 4,341,254 |
Year Ended
September 30,
|
Gross
Profit
|
Change from
Prior Year
|
Percent Change
from Prior Year
|
||||||||||
2009
|
$ | 7,046,877 | $ | (12,032,527 | ) | (63.1 | )% | ||||||
2008
|
$ | 19,079,404 |
Year ended September 30,
|
||||||||
2009
|
2008
|
|||||||
Customer
acquisition services -
|
||||||||
Gross
profit
|
$ | 1,339,997 | $ | 93,759 | ||||
Gross
margin
|
32.6 | % | 14.6 | % | ||||
Directory
services -
|
||||||||
Gross
profit
|
$ | 5,706,880 | $ | 18,985,644 | ||||
Gross
margin
|
61.2 | % | 83.3 | % |
Year Ended
September 30,
|
General &
Administrative
Expenses
|
Change from
Prior Year
|
Percent Change
from Prior Year
|
||||||||||
2009
|
$ | 15,179,981 | $ | (415,190 | ) | (2.7 | )% | ||||||
2008
|
$ | 15,595,171 |
|
·
|
A
decrease in depreciation and amortization expense of approximately
$542,000 due primarily to the effects of the impairment of depreciable
intangible assets that occurred in the second quarter of fiscal
2009;
|
|
·
|
A
decrease in investor relations expenses of approximately $245,000 stemming
from cost containment initiatives;
|
|
·
|
A
decrease in customer related expenses of approximately $106,000 due to the
decline in business activities associated with our directory services
business as a result of our change in business
strategy;
|
|
·
|
A
decrease in rent and office expenses of approximately $234,000 as a result
of the closure of our Santa Clara facility and other cost-containment
initiatives;
|
|
·
|
A
decrease in compensation expense of approximately $20,000 which was
comprised of a decrease of $915,000 of stock based compensation resulting
from the effects of true-ups of our estimated forfeiture rate and a
reduction in the use of stock awards as part of our compensation,
partially offset by an increase of $895,000 of compensation, payroll and
benefits expenses associated with additional staffing in sales and
technology development to support our change in business
strategy;
|
|
·
|
A
decrease of other G&A expenses of approximately $118,000, partially
offset by
|
|
·
|
An
increase in software expense of approximately $427,000 representing
non-capitalizable costs associated with our new product offerings in our
customer acquisition services
segment;
|
|
·
|
An
increase in professional and consulting fees of approximately $423,000
attributable to legal costs incurred to defend the Company against certain
claims in fiscal 2009.
|
Q4 2009 | Q3 2009 | Q2 2009 | Q1 2009 | Q4 2008 | Q3 2008 | Q2 2008 | Q1 2008 | |||||||||||||||||||||||||
Compensation
for employees, leased employees, officers and directors
|
$ | 2,054,709 | $ | 2,392,081 | $ | 2,311,056 | $ | 2,508,835 | $ | 1,810,383 | $ | 3,181,375 | $ | 2,377,412 | $ | 1,928,272 | ||||||||||||||||
Professional
fees
|
336,273 | 421,700 | 411,564 | 455,832 | 456,180 | 275,638 | 191,330 | 281,418 | ||||||||||||||||||||||||
Depreciation
and amortization
|
211,336 | 186,077 | 560,383 | 559,289 | 588,718 | 505,095 | 487,085 | 478,433 | ||||||||||||||||||||||||
Other
general and administrative costs
|
451,300 | 813,124 | 771,352 | 735,070 | 707,665 | 845,351 | 789,318 | 706,848 |
Year Ended
September 30,
|
Sales &
Marketing
Expenses
|
Change from
Prior Year
|
Percent Change
from Prior Year
|
||||||||||
2009
|
$ | 2,457,063 | $ | (2,777,086 | ) | (53.1 | )% | ||||||
2008
|
$ | 5,234,149 |
|
·
|
$2,980,000
of decreased telemarketing and other customer acquisition costs as we
began transitioning away from marketing activities geared toward our
directory services business; and
|
|
·
|
$252,000
of reduced branding, online advertising and other sales and marketing
expenses; partially offset by
|
|
·
|
$455,000
of increased expenditures for click traffic that we believe is more cost
effective than online advertising.
|
Year Ended
September 30,
|
Impairment of
Goodwill and Intangible
Assets
|
Change from
Prior Year
|
Percent Change
from Prior Year
|
||||||||||
2009
|
$ | 7,866,109 | $ | 7,866,109 | n/a | ||||||||
2008
|
$ | - |
Year Ended
September 30,
|
Operating
Loss
|
Change from
Prior Year
|
Percent Change
from Prior Year
|
||||||||||
2009
|
$ | (18,456,276 | ) | $ | (16,706,360 | ) | 954.7 | % | |||||
2008
|
$ | (1,749,916 | ) |
Year Ended
September 30,
|
Total Other Income
(Expense)
|
Change from
Prior Year
|
Percent Change
from Prior Year
|
||||||||||
2009
|
$ | 7,527,934 | $ | 7,405,544 | 6050.8 | % | |||||||
2008
|
$ | 122,390 |
Year
Ended
September
30,
|
Income
Tax
Provision
(Benefit)
|
Change
from
Prior
Year
|
Percent
Change
from
Prior Year
|
|||||||||
2009
|
$ | 3,393,515 | $ | 3,548,230 | 2293.4 | % | ||||||
2008
|
$ | (154,715 | ) |
Year
Ended
September
30,
|
Loss
from
Discontinued
Operations
|
Change
from
Prior
Year
|
Percent
Change
from
Prior Year
|
|||||||||
2009
|
$ | (8,269,443 | ) | $ | (8,213,482 | ) | 14677.2 | % | ||||
2008
|
$ | (55,961 | ) |
Year
Ended
September
30,
|
Net
Loss
|
Change
from
Prior
Year
|
Percent
Change
from
Prior Year
|
|||||||||
2009
|
$ | (22,591,300 | ) | $ | (21,062,528 | ) | 1377.7 | % | ||||
2008
|
$ | (1,528,772 | ) |
Payments
Due by Fiscal Year
|
||||||||||||||||||||||||||||
Total
|
2010
|
2011
|
2012
|
2013
|
2014
|
Thereafter
|
||||||||||||||||||||||
Operating
lease commitments
|
$ | 1,315,693 | $ | 497,117 | $ | 424,525 | $ | 315,331 | $ | 78,720 | $ | - | $ | - | ||||||||||||||
Capital
lease commitments
|
198,644 | 76,876 | 76,876 | 44,892 | - | - | - | |||||||||||||||||||||
Noncanceleable
service contracts
|
1,029,362 | 647,251 | 361,111 | 21,000 | - | - | - | |||||||||||||||||||||
$ | 2,543,699 | $ | 1,221,244 | $ | 862,512 | $ | 381,223 | $ | 78,720 | $ | - | $ | - |
Page
|
||
33
|
||
Consolidated
Financial Statements:
|
||
34
|
||
35
|
||
36
|
||
37
|
||
38
|
September
30,
|
||||||||
2009
|
2008
|
|||||||
(as
restated,
|
||||||||
see
Note 3)
|
||||||||
Assets
|
||||||||
Cash
and cash equivalents
|
$ | 7,568,030 | $ | 4,639,787 | ||||
Certificates
of deposit
|
100,000 | - | ||||||
Accounts
receivable, net
|
1,478,183 | 6,326,272 | ||||||
Prepaid
expenses and other current assets
|
326,442 | 792,309 | ||||||
Customer
acquisition costs, net
|
- | 642,220 | ||||||
Income
taxes receivable
|
1,490,835 | 487,532 | ||||||
Deferred
tax asset, net of valuation allowance
|
- | 949,121 | ||||||
Total
current assets
|
10,963,490 | 13,837,241 | ||||||
Accounts
receivable, long term portion, net
|
1,039,403 | 2,011,143 | ||||||
Property
and equipment, net
|
615,906 | 959,854 | ||||||
Deposits
and other assets
|
81,212 | 83,547 | ||||||
Intangible
assets, net
|
2,336,714 | 6,736,078 | ||||||
Goodwill
|
- | 11,706,406 | ||||||
Deferred
tax asset, long term, net of valuation allowance
|
- | 3,863,502 | ||||||
Total
assets
|
$ | 15,036,725 | $ | 39,197,771 | ||||
Liabilities
and Stockholders' Equity
|
||||||||
Liabilities:
|
||||||||
Accounts
payable
|
$ | 549,681 | $ | 1,078,712 | ||||
Accrued
liabilities
|
1,092,811 | 1,437,149 | ||||||
Current
portion of capital lease obligation
|
69,612 | 61,149 | ||||||
Total
current liabilities
|
1,712,104 | 2,577,010 | ||||||
Long
term portion of capital lease obligation
|
117,073 | 170,838 | ||||||
Total
liabilities
|
1,829,177 | 2,747,848 | ||||||
Commitments
and contingencies
|
||||||||
Stockholders'
equity:
|
||||||||
Series
E convertible preferred stock, $0.001 par value, 200,000 shares
authorized,
|
||||||||
127,840
issued and outstanding, liquidation preference $38,202
|
10,866 | 10,866 | ||||||
Common
stock, $0.001 par value, 100,000,000 shares authorized, 6,133,433 issued
and
|
||||||||
6,104,327
outstanding at September 30, 2009 and 6,513,687 issued and
|
||||||||
outstanding
at September 30, 2008
|
6,133 | 6,514 | ||||||
Treasury
stock (29,106 and 0 shares carried at cost) at September 30, 2009
and
|
(45,041 | ) | - | |||||
2008,
respectively
|
||||||||
Paid
in capital
|
20,280,377 | 20,884,112 | ||||||
Retained
earnings (accumulated deficit)
|
(7,044,787 | ) | 15,548,431 | |||||
Total
stockholders' equity
|
13,207,548 | 36,449,923 | ||||||
Total
liabilities and stockholders' equity
|
$ | 15,036,725 | $ | 39,197,771 |
Year
ended September 30,
|
||||||||
2009
|
2008
|
|||||||
Net
revenues
|
$ | 13,438,655 | $ | 23,420,658 | ||||
Cost
of services
|
6,391,778 | 4,341,254 | ||||||
Gross
profit
|
7,046,877 | 19,079,404 | ||||||
Operating
expenses:
|
||||||||
General
and administrative expenses
|
15,179,981 | 15,595,171 | ||||||
Impairment
of goodwill
|
4,350,041 | - | ||||||
Impairment
of intangible assets
|
3,516,068 | - | ||||||
Sales
and marketing expenses
|
2,457,063 | 5,234,149 | ||||||
Total
operating expenses
|
25,503,153 | 20,829,320 | ||||||
Operating
loss
|
(18,456,276 | ) | (1,749,916 | ) | ||||
Other
income (expense):
|
||||||||
Interest
income, net
|
37,686 | 134,694 | ||||||
Other
income (expense)
|
7,490,248 | (12,304 | ) | |||||
Total
other income (expense)
|
7,527,934 | 122,390 | ||||||
Loss
before income taxes
|
(10,928,342 | ) | (1,627,526 | ) | ||||
Income
tax provision (benefit)
|
3,393,515 | (154,715 | ) | |||||
Loss
from continuing operations
|
(14,321,857 | ) | (1,472,811 | ) | ||||
Discontinued
operations
|
||||||||
Loss
from discontinued component, including disposal costs
|
(8,329,470 | ) | (89,337 | ) | ||||
Income
tax benefit
|
(60,027 | ) | (33,376 | ) | ||||
Loss
from discontinued operations
|
(8,269,443 | ) | (55,961 | ) | ||||
Net
loss
|
$ | (22,591,300 | ) | $ | (1,528,772 | ) | ||
Earnings
per share - Basic:
|
||||||||
Loss
from continuing operations
|
$ | (2.38 | ) | $ | (0.24 | ) | ||
Discontinued
operations
|
(1.38 | ) | (0.01 | ) | ||||
Net
loss
|
$ | (3.76 | ) | $ | (0.25 | ) | ||
Earnings
per share - Diluted:
|
||||||||
Loss
from continuing operations
|
$ | (2.38 | ) | $ | (0.24 | ) | ||
Discontinued
operations
|
(1.38 | ) | (0.01 | ) | ||||
Net
loss
|
$ | (3.76 | ) | $ | (0.25 | ) | ||
Weighted
average common shares outstanding:
|
||||||||
Basic
|
6,005,664 | 6,231,610 | ||||||
Diluted
|
6,005,664 | 6,231,610 |
|
Common
Stock
|
Preferred
Stock
|
Treasury
|
Paid-In
|
Retained
|
|||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Stock
|
Capital
|
Earnings
|
Total
|
|||||||||||||||||||||||||
Balance,
September 30, 2007
|
6,693,676 | $ | 6,694 | 127,840 | $ | 10,866 | $ | (2,714,698 | ) | $ | 23,325,888 | $ | 17,079,121 | $ | 37,707,871 | |||||||||||||||||
Series
E preferred stock dividends
|
- | - | - | - | - | - | (1,918 | ) | (1,918 | ) | ||||||||||||||||||||||
Common
stock issued in restricted stock plan
|
53,000 | 53 | - | - | - | (53 | ) | - | - | |||||||||||||||||||||||
Stock
based compensation - stock options
|
- | - | - | - | - | 10,155 | - | 10,155 | ||||||||||||||||||||||||
Restricted
stock cancellations
|
(84,169 | ) | (84 | ) | - | - | - | 84 | - | - | ||||||||||||||||||||||
Amortization
of deferred stock compensation
|
- | - | - | - | - | 788,431 | - | 788,431 | ||||||||||||||||||||||||
Treasury
stock purchases
|
(148,820 | ) | (149 | ) | - | - | (525,844 | ) | 149 | - | (525,844 | ) | ||||||||||||||||||||
Treasury
stock retired
|
- | - | - | - | 3,240,542 | (3,240,542 | ) | - | - | |||||||||||||||||||||||
Net
income (loss)
|
- | - | - | - | - | - | (1,528,772 | ) | (1,528,772 | ) | ||||||||||||||||||||||
Balance,
September 30, 2008
|
6,513,687 | 6,514 | 127,840 | 10,866 | - | 20,884,112 | 15,548,431 | 36,449,923 | ||||||||||||||||||||||||
Series
E preferred stock dividends
|
- | - | - | - | - | - | (1,918 | ) | (1,918 | ) | ||||||||||||||||||||||
Common
stock issued in restricted stock plan
|
20,000 | 20 | - | - | - | (20 | ) | - | - | |||||||||||||||||||||||
Stock
based compensation - stock options
|
- | - | - | - | - | 82,036 | - | 82,036 | ||||||||||||||||||||||||
Restricted
stock cancellations
|
(83,250 | ) | (84 | ) | - | - | - | 84 | - | - | ||||||||||||||||||||||
Amortization
of deferred stock compensation
|
- | - | - | - | - | (198,672 | ) | - | (198,672 | ) | ||||||||||||||||||||||
Treasury
stock purchases
|
- | - | - | - | (532,521 | ) | - | - | (532,521 | ) | ||||||||||||||||||||||
Treasury
stock retired
|
(317,004 | ) | (317 | ) | - | - | 487,480 | (487,163 | ) | - | - | |||||||||||||||||||||
Net
income (loss)
|
- | - | - | - |