|
·
|
Increased year over year revenue by 105%.
|
|
·
|
Revenue for the fourth quarter of 2010 increased by 53% as compared to the same period of 2009.
|
|
·
|
Non-GAAP net income increased by 27% during the year ended December 31, 2010 as compared to the same period of 2009.
|
|
·
|
More than tripled cash reserves for the period ended December 31, 2010 as compared to December 31, 2009.
|
|
·
|
In the fourth quarter of 2010, the company received signed contracts for XBRL related services for the 2011 reporting year of approximately $475,000.
|
|
December 31,
|
||||||||
|
2010
|
2009
|
|||||||
|
ASSETS
|
||||||||
|
Current assets:
|
||||||||
|
Cash and cash equivalents
|
$ | 504,713 | $ | 146,043 | ||||
|
Accounts receivable (net of allowance for doubtful accounts of $56,024 and $16,785, respectively)
|
175,336 | 152,069 | ||||||
|
Security deposits -current
|
- | 6,242 | ||||||
|
Deferred income tax asset – current
|
102,400 | - | ||||||
|
Other current assets
|
16,581 | 19,201 | ||||||
|
Total current assets
|
799,030 | 323,555 | ||||||
|
Furniture, equipment and improvements, net
|
53,375 | 21,087 | ||||||
|
Deferred income tax asset – noncurrent
|
118,400 | - | ||||||
|
Other long-term assets
|
15,576 | - | ||||||
|
Intangible assets (net of accumulated amortization of $55,166 and $67,833, respectively)
|
93,029 | 120,363 | ||||||
|
Total assets
|
$ | 1,079,410 | $ | 465,005 | ||||
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
|
Current liabilities:
|
||||||||
|
Accounts payable - trade
|
$ | 65,570 | $ | 51,715 | ||||
|
Accrued expenses
|
34,918 | 59,810 | ||||||
|
Deferred revenue
|
51,382 | - | ||||||
|
Notes payable – related party
|
- | 73,525 | ||||||
|
Total current liabilities
|
151,870 | 185,050 | ||||||
|
Other long term liabilities
|
19,810 | - | ||||||
|
Total liabilities
|
171,680 | 185,050 | ||||||
|
Commitments (see Note 8)*
|
||||||||
|
Stockholders' equity:
|
||||||||
|
Preferred stock, $1.00 par value, 30,000,000 shares authorized Series A, 60 shares designated, 0 and 5 shares issued and outstanding, respectively
|
- | 5 | ||||||
|
Series B, 476,200 shares designated; no shares issued and outstanding
|
- | - | ||||||
|
Common stock $0.001 par value, 100,000,000 shares authorized, 17,685,312 and 16,826,342 shares issued and outstanding, respectively
|
17,685 | 16,826 | ||||||
|
Additional paid-in capital
|
1,661,212 | 1,463,697 | ||||||
|
Accumulated deficit
|
(771,167 | ) | (1,200,573 | ) | ||||
|
Total stockholders' equity
|
907,730 | 279,955 | ||||||
|
Total liabilities and stockholders’ equity
|
$ | 1,079,410 | $ | 465,005 | ||||
|
For the Years Ended
December 31,
|
||||||||
|
2010
|
2009
|
|||||||
|
Revenues
|
$ | 3,860,513 | $ | 1,885,232 | ||||
|
Cost of services
|
2,509,416 | 786,633 | ||||||
|
Gross profit
|
1,351,097 | 1,098,599 | ||||||
|
Operating costs and expenses:
|
||||||||
|
General and administrative
|
742,173 | 537,604 | ||||||
|
Sales and marketing
|
337,848 | 247,887 | ||||||
|
Impairment charges
|
4,000 | - | ||||||
|
Depreciation and amortization
|
39,172 | 38,246 | ||||||
|
Total operating costs and expenses
|
1,123,193 | 823,737 | ||||||
|
Operating income
|
227,904 | 274,862 | ||||||
|
Other income (expense):
|
||||||||
|
Interest expense, net
|
(19,298 | ) | (688 | ) | ||||
|
Total other income (expense)
|
(19,298 | ) | (688 | ) | ||||
|
Net income before taxes
|
208,606 | 274,174 | ||||||
|
Income tax benefit
|
220,800 | - | ||||||
|
Net income
|
$ | 429,406 | $ | 274,174 | ||||
|
Income per share – basic and diluted
|
$ | 0.02 | $ | 0.02 | ||||
|
Weighted average number of common shres outstanding – basic
|
17,407,097 | 17,014,713 | ||||||
|
Weighted average number of common shares outstanding – diluted
|
17,603,391 | 17,061,729 | ||||||
|
For the Years ended
December 31,
|
||||||||
|
2010
|
2009
|
|||||||
|
Cash flows from operating activities
|
||||||||
|
Net income
|
$ | 429,406 | $ | 274,174 | ||||
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
|
Bad debt expense
|
51,446 | 61,340 | ||||||
|
Depreciation and amortization
|
39,172 | 38,246 | ||||||
|
Deferred income taxes
|
(220,800 | ) | — | |||||
|
Impairment charges
|
4,000 | — | ||||||
|
Non-cash interest expense
|
34,178 | — | ||||||
|
Stock-based expenses
|
116,245 | 10,000 | ||||||
|
Changes in operating assets and liabilities:
|
||||||||
|
Decrease (increase) in accounts receivable
|
(74,713 | ) | (47,728 | ) | ||||
|
Decrease (increase) in deposits and prepaids
|
(6,714 | ) | (14,347 | ) | ||||
|
Increase (decrease) in accounts payable
|
13,856 | (91,844 | ) | |||||
|
Increase (decrease) in deferred revenue
|
51,382 | — | ||||||
|
Increase (decrease) in accrued expenses
|
8,839 | (43,240 | ) | |||||
|
Net cash provided by operating activities
|
446,297 | 186,601 | ||||||
|
Cash flows from investing activities
|
||||||||
|
Purchase of property and equipment
|
(48,127 | ) | (16,014 | ) | ||||
|
Net cash used by investing activities
|
(48,127 | ) | (16,014 | ) | ||||
|
Cash flows from financing activities
|
||||||||
|
Repurchase of common and preferred stock
|
(39,500 | ) | (10,083 | ) | ||||
|
Payments of notes payable
|
— | (64,828 | ) | |||||
|
Net cash used by financing activities
|
(39,500 | ) | (74,911 | ) | ||||
|
Net change in cash
|
358,670 | 95,676 | ||||||
|
Cash – beginning
|
146,043 | 50,367 | ||||||
|
Cash – ending
|
$ | 504,713 | $ | 146,043 | ||||
|
Supplemental disclosures:
|
||||||||
|
Cash paid for interest
|
$ | 518 | $ | 1,192 | ||||
|
Cash paid for income taxes
|
$ | — | $ | — | ||||
|
Non-cash investing and financing activities:
|
||||||||
|
Retirement of treasury shares
|
$ | — | $ | 10,083 | ||||
|
Cancellation of common shares
|
$ | — | $ | 4,236 | ||||
|
Issuance of common shares for redemption of preferred shares
|
$ | — | $ | 20 | ||||
|
Accrued expenses settled by issuance of common shares
|
$ | — | $ | 25,000 | ||||
|
Related party notes payable and accrued interest converted to common shares
|
$ | 59,666 | $ | — | ||||
|
Related party notes payable and accrued interest converted to preferred shares
|
$ | 27,780 | $ | — | ||||
|
Year Ended December 31,
|
||||||||||||||||
|
2010
|
2009
|
|||||||||||||||
|
Amount
|
Per diluted share
|
Amount
|
Per diluted share
|
|||||||||||||
|
Net income
|
$ | 429,406 | $ | 0.02 | $ | 274,174 | $ | 0.02 | ||||||||
|
Adjustments:
|
||||||||||||||||
|
Amortization of intangible assets and impairment charges (1)
|
27,333 | 0.00 | 27,333 | 0.00 | ||||||||||||
|
Stock based compensation (2)
|
116,245 | 0.01 | 10,000 | 0.00 | ||||||||||||
|
Moving expenses (3)
|
8,652 | 0.00 | - | - | ||||||||||||
|
Non-cash interest expense (4)
|
34,178 | 0.00 | - | - | ||||||||||||
|
Income tax benefit (5)
|
(220,800 | ) | (0.01 | ) | - | - | ||||||||||
|
Non-GAAP net income
|
$ | 395,014 | $ | 0.02 | $ | 311,507 | $ | 0.02 | ||||||||
|
(1)
|
The adjustments represent the amortization and impairment of intangible assets related to acquired companies.
|
|
(2)
|
The adjustments represent stock-based compensation expense recognized related to awards of stock options or common stock in exchange for services.
|
|
(3)
|
The adjustments represent moving expenses incurred related to the relocation to our new headquarters in September 2010.
|
|
(4)
|
The adjustments represent non-cash interest expense incurred upon the conversion of notes payable into shares of the company for the value of the shares received in excess of the carrying value of the notes payable and accrued interest.
|
|
(5)
|
The adjustment represents a deferred tax benefit recognized at the end of 2010 as we reduced the valuation allowance on our deferred tax asset.
|