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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Digital Turbine Inc | NASDAQ:APPS | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.08 | 3.96% | 2.10 | 1.95 | 2.15 | 2.19 | 1.99 | 2.10 | 1,136,633 | 05:00:05 |
ý
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
22-2267658
|
(State or Other Jurisdiction of
Incorporation or Organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
110 San Antonio Street, Suite 160, Austin TX, 78701
|
|
78701
|
(Address of Principal Executive Offices)
|
|
(Zip Code)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, Par Value $0.0001 Per Share
|
APPS
|
The Nasdaq Stock Market LLC
|
|
|
(NASDAQ Capital Market)
|
Large Accelerated Filer
|
¨
|
Accelerated Filer
|
ý
|
|
|
|
|
Non-accelerated Filer
|
¨
|
Smaller Reporting Company
|
¨
|
|
|
|
|
Emerging Growth Company
|
¨
|
|
|
|
|
|
|
|
|
Item 1.
|
|
|
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
|
|
|
|
|
|
Item 1.
|
||
|
|
|
Item 1A.
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
Item 5.
|
||
|
|
|
Item 6.
|
||
|
|
|
|
|
|
September 30, 2019
|
|
March 31, 2019
|
||||
|
|
(Unaudited)
|
|
|
||||
ASSETS
|
|
|
|
|
||||
Current assets
|
|
|
|
|
||||
Cash
|
|
$
|
25,154
|
|
|
$
|
10,894
|
|
Restricted cash
|
|
165
|
|
|
165
|
|
||
Accounts receivable, net of allowances of $1,053 and $895, respectively
|
|
25,303
|
|
|
22,707
|
|
||
Prepaid expenses and other current assets
|
|
1,434
|
|
|
1,331
|
|
||
Current assets held for disposal
|
|
1,474
|
|
|
2,026
|
|
||
Total current assets
|
|
53,530
|
|
|
37,123
|
|
||
Property and equipment, net
|
|
4,278
|
|
|
3,430
|
|
||
Right-of-use assets
|
|
2,133
|
|
|
—
|
|
||
Deferred tax assets
|
|
13
|
|
|
40
|
|
||
Goodwill
|
|
42,268
|
|
|
42,268
|
|
||
TOTAL ASSETS
|
|
$
|
102,222
|
|
|
$
|
82,861
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
||||
Current liabilities
|
|
|
|
|
||||
Accounts payable
|
|
$
|
22,314
|
|
|
$
|
14,912
|
|
Accrued license fees and revenue share
|
|
11,631
|
|
|
16,205
|
|
||
Accrued compensation
|
|
2,460
|
|
|
2,441
|
|
||
Warrant liability
|
|
8,375
|
|
|
—
|
|
||
Other current liabilities
|
|
3,249
|
|
|
826
|
|
||
Current liabilities held for disposal
|
|
3,516
|
|
|
3,924
|
|
||
Total current liabilities
|
|
51,545
|
|
|
38,308
|
|
||
Warrant liability
|
|
—
|
|
|
8,013
|
|
||
Other non-current liabilities
|
|
2,110
|
|
|
182
|
|
||
Total liabilities
|
|
53,655
|
|
|
46,503
|
|
||
Stockholders' equity
|
|
|
|
|
||||
Preferred stock
|
|
|
|
|
||||
Series A convertible preferred stock at $0.0001 par value; 2,000,000 shares authorized, 100,000 issued and outstanding (liquidation preference of $1,000)
|
|
100
|
|
|
100
|
|
||
Common stock
|
|
|
|
|
||||
$0.0001 par value: 200,000,000 shares authorized; 85,981,427 issued and 85,246,971 outstanding at September 30, 2019; 82,354,940 issued and 81,620,485 outstanding at March 31, 2019
|
|
10
|
|
|
10
|
|
||
Additional paid-in capital
|
|
348,566
|
|
|
332,793
|
|
||
Treasury stock (754,599 shares at September 30, 2019 and March 31, 2019)
|
|
(71
|
)
|
|
(71
|
)
|
||
Accumulated other comprehensive loss
|
|
(676
|
)
|
|
(356
|
)
|
||
Accumulated deficit
|
|
(299,362
|
)
|
|
(296,118
|
)
|
||
Total stockholders' equity
|
|
48,567
|
|
|
36,358
|
|
||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
$
|
102,222
|
|
|
$
|
82,861
|
|
|
|
Three months ended September 30,
|
|
Six months ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net revenues
|
|
$
|
32,795
|
|
|
$
|
23,854
|
|
|
$
|
63,348
|
|
|
$
|
45,966
|
|
Cost of revenues
|
|
|
|
|
|
|
|
|
||||||||
License fees and revenue share
|
|
20,146
|
|
|
15,802
|
|
|
38,421
|
|
|
31,018
|
|
||||
Other direct costs of revenues
|
|
344
|
|
|
508
|
|
|
622
|
|
|
1,015
|
|
||||
Total cost of revenues
|
|
20,490
|
|
|
16,310
|
|
|
39,043
|
|
|
32,033
|
|
||||
Gross profit
|
|
12,305
|
|
|
7,544
|
|
|
24,305
|
|
|
13,933
|
|
||||
Operating expenses
|
|
|
|
|
|
|
|
|
||||||||
Product development
|
|
2,735
|
|
|
2,637
|
|
|
5,529
|
|
|
5,746
|
|
||||
Sales and marketing
|
|
2,441
|
|
|
1,913
|
|
|
4,719
|
|
|
3,749
|
|
||||
General and administrative
|
|
4,014
|
|
|
2,679
|
|
|
7,902
|
|
|
5,383
|
|
||||
Total operating expenses
|
|
9,190
|
|
|
7,229
|
|
|
18,150
|
|
|
14,878
|
|
||||
Income / (loss) from operations
|
|
3,115
|
|
|
315
|
|
|
6,155
|
|
|
(945
|
)
|
||||
Interest and other income / (expense), net
|
|
|
|
|
|
|
|
|
||||||||
Interest income / (expense), net
|
|
41
|
|
|
(135
|
)
|
|
59
|
|
|
(454
|
)
|
||||
Change in fair value of convertible note embedded derivative liability
|
|
—
|
|
|
952
|
|
|
—
|
|
|
2,572
|
|
||||
Change in fair value of warrant liability
|
|
(4,505
|
)
|
|
926
|
|
|
(9,731
|
)
|
|
2,496
|
|
||||
Other income / (expense)
|
|
84
|
|
|
(13
|
)
|
|
474
|
|
|
(132
|
)
|
||||
Total interest and other income / (expense), net
|
|
(4,380
|
)
|
|
1,730
|
|
|
(9,198
|
)
|
|
4,482
|
|
||||
Income / (loss) from continuing operations before income taxes
|
|
(1,265
|
)
|
|
2,045
|
|
|
(3,043
|
)
|
|
3,537
|
|
||||
Income tax provision / (benefit)
|
|
72
|
|
|
(23
|
)
|
|
(35
|
)
|
|
(59
|
)
|
||||
Income / (loss) from continuing operations, net of taxes
|
|
(1,337
|
)
|
|
2,068
|
|
|
(3,008
|
)
|
|
3,596
|
|
||||
Loss from discontinued operations
|
|
(88
|
)
|
|
(356
|
)
|
|
(236
|
)
|
|
(1,400
|
)
|
||||
Net loss from discontinued operations, net of taxes
|
|
(88
|
)
|
|
(356
|
)
|
|
(236
|
)
|
|
(1,400
|
)
|
||||
Net income / (loss)
|
|
$
|
(1,425
|
)
|
|
$
|
1,712
|
|
|
$
|
(3,244
|
)
|
|
$
|
2,196
|
|
Other comprehensive loss
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustment
|
|
(418
|
)
|
|
2
|
|
|
(320
|
)
|
|
2
|
|
||||
Comprehensive income / (loss)
|
|
$
|
(1,843
|
)
|
|
$
|
1,714
|
|
|
$
|
(3,564
|
)
|
|
$
|
2,198
|
|
Basic and diluted net income / (loss) per common share
|
|
|
|
|
|
|
|
|
||||||||
Continuing operations
|
|
$
|
(0.02
|
)
|
|
$
|
0.03
|
|
|
$
|
(0.04
|
)
|
|
$
|
0.05
|
|
Discontinued operations
|
|
—
|
|
|
(0.01
|
)
|
|
—
|
|
|
(0.02
|
)
|
||||
Net income / (loss)
|
|
$
|
(0.02
|
)
|
|
$
|
0.02
|
|
|
$
|
(0.04
|
)
|
|
$
|
0.03
|
|
Weighted-average common shares outstanding, basic
|
|
83,909
|
|
|
77,193
|
|
|
82,860
|
|
|
76,644
|
|
||||
Weighted-average common shares outstanding, diluted
|
|
83,909
|
|
|
78,780
|
|
|
82,860
|
|
|
79,019
|
|
|
|
Six months ended September 30,
|
||||||
|
|
2019
|
|
2018
|
||||
Cash flows from operating activities
|
|
|
|
|
|
|
||
Net income / (loss) from continuing operations, net of taxes
|
|
$
|
(3,008
|
)
|
|
$
|
3,596
|
|
Adjustments to reconcile net income / (loss) from continuing operations to net cash provided by / (used in) operating activities:
|
|
|
|
|
||||
Depreciation and amortization
|
|
944
|
|
|
1,436
|
|
||
Loss on disposal of fixed assets
|
|
8
|
|
|
—
|
|
||
Change in allowance for doubtful accounts
|
|
158
|
|
|
354
|
|
||
Non-cash interest expense
|
|
—
|
|
|
188
|
|
||
Stock-based compensation
|
|
1,300
|
|
|
942
|
|
||
Stock-based compensation for services rendered
|
|
297
|
|
|
208
|
|
||
Change in fair value of convertible note embedded derivative liability
|
|
—
|
|
|
(2,572
|
)
|
||
Change in fair value of warrant liability
|
|
9,731
|
|
|
(2,496
|
)
|
||
Loss on extinguishment of debt
|
|
—
|
|
|
15
|
|
||
(Increase) / decrease in assets:
|
|
|
|
|
||||
Accounts receivable
|
|
(2,754
|
)
|
|
(4,166
|
)
|
||
Deferred tax assets
|
|
33
|
|
|
(59
|
)
|
||
Prepaid expenses and other current assets
|
|
(86
|
)
|
|
33
|
|
||
Right-of-use assets
|
|
(2,133
|
)
|
|
—
|
|
||
Increase / (decrease) in liabilities:
|
|
|
|
|
||||
Accounts payable
|
|
7,401
|
|
|
6,857
|
|
||
Accrued license fees and revenue share
|
|
(4,575
|
)
|
|
(2,515
|
)
|
||
Accrued compensation
|
|
(34
|
)
|
|
(2,378
|
)
|
||
Other current liabilities
|
|
2,554
|
|
|
411
|
|
||
Other non-current liabilities
|
|
1,928
|
|
|
(11
|
)
|
||
Net cash provided by / (used in) operating activities - continuing operations
|
|
11,764
|
|
|
(157
|
)
|
||
Net cash used in operating activities - discontinued operations
|
|
(192
|
)
|
|
(3,098
|
)
|
||
Net cash provided by / (used in) operating activities
|
|
11,572
|
|
|
(3,255
|
)
|
||
|
|
|
|
|
||||
Cash flows from investing activities
|
|
|
|
|
|
|
||
Capital expenditures
|
|
(1,805
|
)
|
|
(1,085
|
)
|
||
Net cash used in investing activities - continuing operations
|
|
(1,805
|
)
|
|
(1,085
|
)
|
||
Net cash used in investing activities - discontinued operations
|
|
—
|
|
|
(41
|
)
|
||
Net cash used in investing activities
|
|
(1,805
|
)
|
|
(1,126
|
)
|
||
|
|
|
|
|
||||
Cash flows from financing activities
|
|
|
|
|
|
|
||
Options and warrants exercised
|
|
4,813
|
|
|
160
|
|
||
Repayment of debt obligations
|
|
—
|
|
|
(50
|
)
|
||
Net cash provided by financing activities
|
|
4,813
|
|
|
110
|
|
||
|
|
|
|
|
||||
Effect of exchange rate changes on cash
|
|
(320
|
)
|
|
—
|
|
||
|
|
|
|
|
||||
Net change in cash
|
|
14,260
|
|
|
(4,271
|
)
|
||
|
|
|
|
|
||||
Cash and restricted cash, beginning of period
|
|
11,059
|
|
|
13,051
|
|
||
|
|
|
|
|
||||
Cash and restricted cash, end of period
|
|
$
|
25,319
|
|
|
$
|
8,780
|
|
|
|
|
|
|
||||
Supplemental disclosure of cash flow information
|
|
|
|
|
|
|
||
Interest paid
|
|
$
|
—
|
|
|
$
|
264
|
|
Supplemental disclosure of non-cash financing activities
|
|
|
|
|
||||
Contingency earn out on acquisition of subsidiary, net of discount
|
|
$
|
—
|
|
|
$
|
—
|
|
Common stock of the Company issued for extinguishment of debt
|
|
$
|
—
|
|
|
$
|
948
|
|
Cashless exercise of warrants to purchase common stock of the Company
|
|
$
|
662
|
|
|
$
|
—
|
|
|
|
Common Stock
Shares |
|
Amount
|
|
Preferred Stock
Shares |
|
Amount
|
|
Treasury Stock
Shares |
|
Amount
|
|
Additional
Paid-In Capital |
|
Accumulated
Other Comprehensive Income / (Loss) |
|
Accumulated
Deficit |
|
Total
|
|||||||||||||||||
Balance at March 31, 2018
|
|
76,108,823
|
|
|
$
|
10
|
|
|
100,000
|
|
|
$
|
100
|
|
|
754,599
|
|
|
$
|
(71
|
)
|
|
$
|
318,066
|
|
|
$
|
(325
|
)
|
|
$
|
(290,108
|
)
|
|
$
|
27,672
|
|
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
484
|
|
|
484
|
|
|||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
500
|
|
|
—
|
|
|
—
|
|
|
500
|
|
|||||||
Stock-based compensation for services rendered
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
85
|
|
|
—
|
|
|
—
|
|
|
85
|
|
|||||||
Options exercised
|
|
50,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|
—
|
|
|
—
|
|
|
39
|
|
|||||||
Balance at June 30, 2018
|
|
76,158,823
|
|
|
10
|
|
|
100,000
|
|
|
100
|
|
|
754,599
|
|
|
(71
|
)
|
|
318,690
|
|
|
(325
|
)
|
|
(289,624
|
)
|
|
28,780
|
|
|||||||
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,712
|
|
|
1,712
|
|
|||||||
Foreign currency translation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|||||||
Conversion of convertible notes to equity
|
|
670,878
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
948
|
|
|
—
|
|
|
—
|
|
|
948
|
|
|||||||
Stock-based compensation
|
|
306,656
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
602
|
|
|
—
|
|
|
—
|
|
|
602
|
|
|||||||
Options exercised
|
|
111,200
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
121
|
|
|
—
|
|
|
—
|
|
|
121
|
|
|||||||
Balance at September 30, 2018
|
|
77,247,557
|
|
|
$
|
10
|
|
|
100,000
|
|
|
$
|
100
|
|
|
754,599
|
|
|
$
|
(71
|
)
|
|
$
|
320,361
|
|
|
$
|
(323
|
)
|
|
$
|
(287,912
|
)
|
|
$
|
32,165
|
|
|
|
Common Stock
Shares |
|
Amount
|
|
Preferred Stock
Shares |
|
Amount
|
|
Treasury Stock
Shares |
|
Amount
|
|
Additional
Paid-In Capital |
|
Accumulated
Other Comprehensive Income / (Loss) |
|
Accumulated
Deficit |
|
Total
|
|||||||||||||||||
Balance at March 31, 2019
|
|
81,620,485
|
|
|
$
|
10
|
|
|
100,000
|
|
|
$
|
100
|
|
|
754,599
|
|
|
$
|
(71
|
)
|
|
$
|
332,793
|
|
|
$
|
(356
|
)
|
|
$
|
(296,118
|
)
|
|
$
|
36,358
|
|
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,819
|
)
|
|
(1,819
|
)
|
|||||||
Foreign currency translation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
98
|
|
|
—
|
|
|
98
|
|
|||||||
Settlement of warrant derivative liability
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
715
|
|
|
—
|
|
|
—
|
|
|
715
|
|
|||||||
Stock-based compensation
|
|
38,759
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
560
|
|
|
—
|
|
|
—
|
|
|
560
|
|
|||||||
Stock-based compensation for services rendered
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
122
|
|
|
—
|
|
|
—
|
|
|
122
|
|
|||||||
Options exercised
|
|
616,208
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
910
|
|
|
—
|
|
|
—
|
|
|
910
|
|
|||||||
Warrants exercised
|
|
212,250
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
289
|
|
|
—
|
|
|
—
|
|
|
289
|
|
|||||||
Balance at June 30, 2019
|
|
82,487,702
|
|
|
10
|
|
|
100,000
|
|
|
100
|
|
|
754,599
|
|
|
(71
|
)
|
|
335,389
|
|
|
(258
|
)
|
|
(297,937
|
)
|
|
37,233
|
|
|||||||
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,425
|
)
|
|
(1,425
|
)
|
|||||||
Foreign currency translation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(418
|
)
|
|
—
|
|
|
(418
|
)
|
|||||||
Settlement of warrant derivative liability
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,648
|
|
|
—
|
|
|
—
|
|
|
8,648
|
|
|||||||
Stock-based compensation
|
|
9,690
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
740
|
|
|
—
|
|
|
—
|
|
|
740
|
|
|||||||
Stock-based compensation for services rendered
|
|
75,494
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
175
|
|
|
—
|
|
|
—
|
|
|
175
|
|
|||||||
Options exercised
|
|
1,006,792
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,891
|
|
|
—
|
|
|
—
|
|
|
1,891
|
|
|||||||
Warrants exercised
|
|
1,667,293
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,723
|
|
|
—
|
|
|
—
|
|
|
1,723
|
|
|||||||
Balance at September 30, 2019
|
|
85,246,971
|
|
|
$
|
10
|
|
|
100,000
|
|
|
$
|
100
|
|
|
754,599
|
|
|
$
|
(71
|
)
|
|
$
|
348,566
|
|
|
$
|
(676
|
)
|
|
$
|
(299,362
|
)
|
|
$
|
48,567
|
|
•
|
Ignite™ ("Ignite"), a software platform with targeted media delivery and management capabilities, and
|
•
|
Other recurring and life-cycle products, features, and professional services delivered on the Ignite platform.
|
•
|
Ignite, a mobile application management software that enables mobile operators and OEMs to control, manage, and monetize applications installed at the time of activation and over the life of a mobile device. Ignite allows mobile operators and OEMs to personalize the application activation experience for customers and monetize their home screens via Cost-Per-Install or CPI arrangements, Cost-Per-Placement or CPP arrangements, and/or Cost-Per-Action or CPA arrangements with third party advertisers. There are several different delivery methods available to operators and OEMs on first boot of the device: Wizard, Silent, or Software Development Kit ("SDK"). Optional notification features are available throughout the life-cycle of the device, providing operators and OEMs additional opportunity for advertising revenue streams.
|
•
|
Other products and professional services directly related to the Ignite platform.
|
|
|
Three months ended September 30,
|
|
Six months ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net revenues
|
|
$
|
—
|
|
|
$
|
7
|
|
|
$
|
—
|
|
|
$
|
3,877
|
|
Total cost of revenues
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
3,070
|
|
||||
Gross profit
|
|
—
|
|
|
11
|
|
|
—
|
|
|
807
|
|
||||
Product development
|
|
29
|
|
|
95
|
|
|
62
|
|
|
666
|
|
||||
Sales and marketing
|
|
—
|
|
|
116
|
|
|
—
|
|
|
343
|
|
||||
General and administrative
|
|
23
|
|
|
142
|
|
|
85
|
|
|
1,052
|
|
||||
Loss from operations
|
|
(52
|
)
|
|
(342
|
)
|
|
(147
|
)
|
|
(1,254
|
)
|
||||
Interest and other income / (expense), net
|
|
(36
|
)
|
|
(14
|
)
|
|
(89
|
)
|
|
(146
|
)
|
||||
Loss from discontinued operations before income taxes
|
|
(88
|
)
|
|
(356
|
)
|
|
(236
|
)
|
|
(1,400
|
)
|
||||
Loss from discontinued operations, net of taxes
|
|
(88
|
)
|
|
(356
|
)
|
|
(236
|
)
|
|
(1,400
|
)
|
||||
Comprehensive loss
|
|
$
|
(88
|
)
|
|
$
|
(356
|
)
|
|
$
|
(236
|
)
|
|
$
|
(1,400
|
)
|
Basic and diluted net loss per common share
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(0.02
|
)
|
Weighted-average common shares outstanding, basic and diluted
|
|
83,909
|
|
|
77,193
|
|
|
82,860
|
|
|
76,644
|
|
|
|
Six months ended September 30,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
(Unaudited)
|
|
(Unaudited)
|
||||
Cash flows from operating activities
|
|
|
|
|
||||
Net loss from discontinued operations, net of taxes
|
|
$
|
(236
|
)
|
|
$
|
(1,400
|
)
|
Adjustments to reconcile net loss to net cash used in operating activities:
|
|
|
|
|
||||
Depreciation and amortization
|
|
19
|
|
|
214
|
|
||
Change in allowance for doubtful accounts
|
|
(99
|
)
|
|
(369
|
)
|
||
Loss on disposal of fixed assets
|
|
104
|
|
|
—
|
|
||
Stock-based compensation
|
|
—
|
|
|
37
|
|
||
(Increase) / decrease in assets:
|
|
|
|
|
||||
Accounts receivable
|
|
510
|
|
|
5,328
|
|
||
Goodwill
|
|
—
|
|
|
309
|
|
||
Prepaid expenses and other current assets
|
|
—
|
|
|
(406
|
)
|
||
Increase / (decrease) in liabilities:
|
|
|
|
|
||||
Accounts payable
|
|
(289
|
)
|
|
(4,357
|
)
|
||
Accrued license fees and revenue share
|
|
(84
|
)
|
|
(1,935
|
)
|
||
Accrued compensation
|
|
(32
|
)
|
|
(230
|
)
|
||
Other current liabilities
|
|
(85
|
)
|
|
(289
|
)
|
||
Cash used in operating activities
|
|
(192
|
)
|
|
(3,098
|
)
|
||
|
|
|
|
|
||||
Cash flows from investing activities
|
|
|
|
|
||||
Capital expenditures
|
|
—
|
|
|
(41
|
)
|
||
Cash used in investing activities
|
|
—
|
|
|
(41
|
)
|
||
|
|
|
|
|
||||
Effect of exchange rate changes on cash and cash equivalents
|
|
—
|
|
|
—
|
|
||
|
|
|
|
|
||||
Cash used in discontinued operations
|
|
$
|
(192
|
)
|
|
$
|
(3,139
|
)
|
|
|
September 30, 2019
|
|
March 31, 2019
|
||||
|
|
(Unaudited)
|
|
|
||||
Billed
|
|
$
|
15,196
|
|
|
$
|
11,833
|
|
Unbilled
|
|
11,160
|
|
|
11,769
|
|
||
Allowance for doubtful accounts
|
|
(1,053
|
)
|
|
(895
|
)
|
||
Accounts receivable, net
|
|
$
|
25,303
|
|
|
$
|
22,707
|
|
|
|
September 30, 2019
|
|
March 31, 2019
|
||||
|
|
(Unaudited)
|
|
|
||||
Computer-related equipment
|
|
$
|
8,409
|
|
|
$
|
7,077
|
|
Furniture and fixtures
|
|
320
|
|
|
223
|
|
||
Leasehold improvements
|
|
622
|
|
|
558
|
|
||
Property and equipment, gross
|
|
9,351
|
|
|
7,858
|
|
||
Accumulated depreciation
|
|
(5,073
|
)
|
|
(4,428
|
)
|
||
Property and equipment, net
|
|
$
|
4,278
|
|
|
$
|
3,430
|
|
|
|
September 30, 2019
|
||
|
|
(Unaudited)
|
||
Remainder of fiscal year 2020
|
|
$
|
338
|
|
Fiscal year 2021
|
|
688
|
|
|
Fiscal year 2022
|
|
705
|
|
|
Fiscal year 2023
|
|
723
|
|
|
Fiscal year 2024
|
|
520
|
|
|
Thereafter
|
|
203
|
|
|
Total undiscounted cash flows
|
|
3,177
|
|
|
(Less imputed interest)
|
|
(409
|
)
|
|
Present value of lease liabilities
|
|
$
|
2,768
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Balance as of September 30, 2019
|
||||||||
|
|
|
|
|
|
|
|
(Unaudited)
|
||||||||
Financial Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Warrant liability
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,375
|
|
|
$
|
8,375
|
|
Total
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,375
|
|
|
$
|
8,375
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Balance as of March 31, 2019
|
||||||||
Financial Liabilities
|
|
|
|
|
|
|
|
|
||||||||
Warrant liability
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,013
|
|
|
$
|
8,013
|
|
Total
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,013
|
|
|
$
|
8,013
|
|
|
|
Level 3
|
||
Balance at March 31, 2019
|
|
$
|
8,013
|
|
Change in fair value of warrant liability
|
|
9,731
|
|
|
De-recognition on exercises
|
|
(9,369
|
)
|
|
Balance at September 30, 2019
|
|
$
|
8,375
|
|
|
|
Number of
Shares |
|
Weighted Average
Exercise Price (per share) |
|
Weighted Average
Remaining Contractual Life (in years) |
|
Aggregate Intrinsic
Value (in thousands) |
|||||
Options Outstanding, March 31, 2019
|
|
9,128,885
|
|
|
$
|
1.80
|
|
|
7.31
|
|
$
|
16,347
|
|
Granted
|
|
1,603,750
|
|
|
4.07
|
|
|
|
|
|
|||
Forfeited / Cancelled
|
|
(384,827
|
)
|
|
1.75
|
|
|
|
|
|
|||
Exercised
|
|
(1,623,000
|
)
|
|
1.73
|
|
|
|
|
|
|||
Options Outstanding, September 30, 2019
|
|
8,724,808
|
|
|
2.24
|
|
|
7.28
|
|
36,707
|
|
||
Vested and expected to vest (net of estimated forfeitures) at September 30, 2019 (a)
|
|
7,663,942
|
|
|
2.19
|
|
|
7.08
|
|
32,623
|
|
||
Exercisable, September 30, 2019
|
|
4,879,562
|
|
|
$
|
2.15
|
|
|
6.38
|
|
$
|
20,978
|
|
|
|
Options Outstanding
|
|
Options Exercisable
|
||||||||||||
Exercise Price
|
|
Number of Shares
|
|
Weighted-Average Exercise Price
|
|
Weighted-Average Remaining Life (Years)
|
|
Number of Shares
|
|
Weighted-Average Exercise Price
|
||||||
$0.00 - 0.50
|
|
6,204
|
|
|
$
|
0.24
|
|
|
0.48
|
|
6,204
|
|
|
$
|
0.24
|
|
$0.51 - 1.00
|
|
1,722,307
|
|
|
$
|
0.73
|
|
|
7.09
|
|
856,800
|
|
|
$
|
0.72
|
|
$1.01 - 1.50
|
|
2,108,209
|
|
|
$
|
1.28
|
|
|
6.72
|
|
1,532,564
|
|
|
$
|
1.26
|
|
$1.51 - 2.00
|
|
1,074,723
|
|
|
$
|
1.66
|
|
|
8.48
|
|
446,746
|
|
|
$
|
1.65
|
|
$2.01 - 2.50
|
|
568,851
|
|
|
$
|
2.22
|
|
|
8.52
|
|
211,287
|
|
|
$
|
2.21
|
|
$2.51 - 3.00
|
|
540,000
|
|
|
$
|
2.59
|
|
|
4.60
|
|
540,000
|
|
|
$
|
2.59
|
|
$3.51 - 4.00
|
|
1,897,514
|
|
|
$
|
3.89
|
|
|
8.31
|
|
665,627
|
|
|
$
|
3.94
|
|
$4.01 - 4.50
|
|
505,000
|
|
|
$
|
4.14
|
|
|
5.06
|
|
505,000
|
|
|
$
|
4.14
|
|
$4.51 - 5.00
|
|
60,000
|
|
|
$
|
4.65
|
|
|
3.49
|
|
60,000
|
|
|
$
|
4.65
|
|
$5.01 and over
|
|
242,000
|
|
|
$
|
5.64
|
|
|
8.83
|
|
55,334
|
|
|
$
|
5.86
|
|
|
|
8,724,808
|
|
|
2.24
|
|
|
7.28
|
|
4,879,562
|
|
|
2.15
|
|
|
|
September 30,
|
||||||
|
|
2019
|
|
2018
|
||||
Total fair value of options vested
|
|
$
|
953
|
|
|
$
|
855
|
|
Total intrinsic value of options exercised (a)
|
|
$
|
6,881
|
|
|
$
|
162
|
|
|
|
September 30, 2019
|
Risk-free interest rate
|
|
1.67% to 2.25%
|
Expected life of the options
|
|
5.35 to 9.64 years
|
Expected volatility
|
|
65% to 66%
|
Expected dividend yield
|
|
—%
|
Expected forfeitures
|
|
27% to 29%
|
|
|
Number of Warrants Outstanding
|
|
Weighted-Average Exercise Price
|
|||
Outstanding as of March 31, 2019
|
|
3,639,100
|
|
|
$
|
1.37
|
|
Exercised
|
|
(1,975,450
|
)
|
|
1.36
|
|
|
Outstanding as of September 30, 2019
|
|
1,663,650
|
|
|
$
|
1.37
|
|
|
|
Number of Shares
|
|
Weighted-Average Grant Date Fair Value
|
|||
Unvested restricted stock outstanding as of March 31, 2019
|
|
153,328
|
|
|
$
|
1.39
|
|
Granted
|
|
75,494
|
|
|
5.58
|
|
|
Vested
|
|
(153,328
|
)
|
|
1.39
|
|
|
Unvested restricted stock outstanding as of September 30, 2019
|
|
75,494
|
|
|
$
|
5.58
|
|
|
|
Three months ended September 30,
|
|
Six months ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Income / (loss) from continuing operations, net of taxes
|
|
$
|
(1,337
|
)
|
|
$
|
2,068
|
|
|
$
|
(3,008
|
)
|
|
$
|
3,596
|
|
Weighted-average common shares outstanding, basic
|
|
83,909
|
|
|
77,193
|
|
|
82,860
|
|
|
76,644
|
|
||||
Weighted-average common shares outstanding, diluted
|
|
83,909
|
|
|
78,780
|
|
|
82,860
|
|
|
79,019
|
|
||||
Basic and diluted net income / (loss) per common share
|
|
$
|
(0.02
|
)
|
|
$
|
0.03
|
|
|
$
|
(0.04
|
)
|
|
$
|
0.05
|
|
Common stock equivalents included in net income per diluted share
|
|
—
|
|
|
1,587
|
|
|
—
|
|
|
2,375
|
|
||||
Common stock equivalents excluded from net loss per diluted share because their effect would have been anti-dilutive
|
|
6,893
|
|
|
—
|
|
|
6,170
|
|
|
—
|
|
|
|
Three months ended September 30,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
(Unaudited)
|
||||||
Net revenues
|
|
|
|
|
||||
United States and Canada
|
|
$
|
22,216
|
|
|
$
|
17,141
|
|
Europe, Middle East, and Africa
|
|
7,829
|
|
|
3,246
|
|
||
Asia Pacific and China
|
|
2,504
|
|
|
2,393
|
|
||
Mexico, Central America, and South America
|
|
246
|
|
|
1,074
|
|
||
Consolidated net revenues
|
|
$
|
32,795
|
|
|
$
|
23,854
|
|
|
|
|
|
|
||||
|
|
Six months ended September 30,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
(Unaudited)
|
||||||
Net revenues
|
|
|
|
|
||||
United States and Canada
|
|
$
|
43,571
|
|
|
$
|
32,919
|
|
Europe, Middle East, and Africa
|
|
14,924
|
|
|
7,084
|
|
||
Asia Pacific and China
|
|
4,406
|
|
|
4,397
|
|
||
Mexico, Central America, and South America
|
|
447
|
|
|
1,566
|
|
||
Consolidated net revenues
|
|
$
|
63,348
|
|
|
$
|
45,966
|
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
|
Ignite™ ("Ignite"), a software platform with targeted media delivery and management capabilities, and
|
•
|
Other recurring and life-cycle products, features, and professional services delivered on the Ignite platform.
|
|
|
Three months ended September 30,
|
|
|
|
Six months ended September 30,
|
|
|
||||||||||||||
|
|
2019
|
|
2018
|
|
% of Change
|
|
2019
|
|
2018
|
|
% of Change
|
||||||||||
|
|
(in thousands, except per share amounts)
|
|
|
|
(in thousands, except per share amounts)
|
|
|
||||||||||||||
Net revenues
|
|
$
|
32,795
|
|
|
$
|
23,854
|
|
|
37.5
|
%
|
|
$
|
63,348
|
|
|
$
|
45,966
|
|
|
37.8
|
%
|
License fees and revenue share
|
|
20,146
|
|
|
15,802
|
|
|
27.5
|
%
|
|
38,421
|
|
|
31,018
|
|
|
23.9
|
%
|
||||
Other direct costs of revenues
|
|
344
|
|
|
508
|
|
|
(32.3
|
)%
|
|
622
|
|
|
1,015
|
|
|
(38.7
|
)%
|
||||
Gross profit
|
|
12,305
|
|
|
7,544
|
|
|
63.1
|
%
|
|
24,305
|
|
|
13,933
|
|
|
74.4
|
%
|
||||
Total operating expenses
|
|
9,190
|
|
|
7,229
|
|
|
27.1
|
%
|
|
18,150
|
|
|
14,878
|
|
|
22.0
|
%
|
||||
Income / (loss) from operations
|
|
3,115
|
|
|
315
|
|
|
888.9
|
%
|
|
6,155
|
|
|
(945
|
)
|
|
(751.3
|
)%
|
||||
Interest income / (expense), net
|
|
41
|
|
|
(135
|
)
|
|
(130.4
|
)%
|
|
59
|
|
|
(454
|
)
|
|
(113.0
|
)%
|
||||
Change in fair value of convertible note embedded derivative liability
|
|
—
|
|
|
952
|
|
|
(100.0
|
)%
|
|
—
|
|
|
2,572
|
|
|
(100.0
|
)%
|
||||
Change in fair value of warrant liability
|
|
(4,505
|
)
|
|
926
|
|
|
(586.5
|
)%
|
|
(9,731
|
)
|
|
2,496
|
|
|
(489.9
|
)%
|
||||
Other income / (expense)
|
|
84
|
|
|
(13
|
)
|
|
(746.2
|
)%
|
|
474
|
|
|
(132
|
)
|
|
(459.1
|
)%
|
||||
Income / (loss) from continuing operations before income taxes
|
|
(1,265
|
)
|
|
2,045
|
|
|
(161.9
|
)%
|
|
(3,043
|
)
|
|
3,537
|
|
|
(186.0
|
)%
|
||||
Income tax provision / (benefit)
|
|
72
|
|
|
(23
|
)
|
|
(413.0
|
)%
|
|
(35
|
)
|
|
(59
|
)
|
|
(40.7
|
)%
|
||||
Income / (loss) from continuing operations, net of taxes
|
|
(1,337
|
)
|
|
2,068
|
|
|
(164.7
|
)%
|
|
(3,008
|
)
|
|
3,596
|
|
|
(183.6
|
)%
|
||||
Net income / (loss)
|
|
$
|
(1,425
|
)
|
|
$
|
1,712
|
|
|
(183.2
|
)%
|
|
$
|
(3,244
|
)
|
|
$
|
2,196
|
|
|
(247.7
|
)%
|
Basic and diluted net income / (loss) per common share
|
|
$
|
(0.02
|
)
|
|
$
|
0.03
|
|
|
(166.7
|
)%
|
|
$
|
(0.04
|
)
|
|
$
|
0.03
|
|
|
(233.3
|
)%
|
Weighted-average common shares outstanding, basic
|
|
83,909
|
|
|
77,193
|
|
|
8.7
|
%
|
|
82,860
|
|
|
76,644
|
|
|
8.1
|
%
|
||||
Weighted-average common shares outstanding, diluted
|
|
83,909
|
|
|
78,780
|
|
|
6.5
|
%
|
|
82,860
|
|
|
79,019
|
|
|
4.9
|
%
|
|
|
Three months ended September 30,
|
|
|
|
Six months ended September 30,
|
|
|
||||||||||||||
|
|
2019
|
|
2018
|
|
% of Change
|
|
2019
|
|
2018
|
|
% of Change
|
||||||||||
|
|
(in thousands)
|
|
|
|
(in thousands)
|
|
|
||||||||||||||
Gross margin $
|
|
$
|
12,305
|
|
|
$
|
7,544
|
|
|
63.1
|
%
|
|
$
|
24,305
|
|
|
$
|
13,933
|
|
|
74.4
|
%
|
Gross margin %
|
|
37.5
|
%
|
|
31.6
|
%
|
|
18.7
|
%
|
|
38.4
|
%
|
|
30.3
|
%
|
|
26.7
|
%
|
|
|
Three months ended September 30,
|
|
|
|
Six months ended September 30,
|
|
|
||||||||||||||
|
|
2019
|
|
2018
|
|
% of Change
|
|
2019
|
|
2018
|
|
% of Change
|
||||||||||
|
|
(in thousands)
|
|
|
|
(in thousands)
|
|
|
||||||||||||||
Product development
|
|
$
|
2,735
|
|
|
$
|
2,637
|
|
|
3.7
|
%
|
|
$
|
5,529
|
|
|
$
|
5,746
|
|
|
(3.8
|
)%
|
Sales and marketing
|
|
2,441
|
|
|
1,913
|
|
|
27.6
|
%
|
|
4,719
|
|
|
3,749
|
|
|
25.9
|
%
|
||||
General and administrative
|
|
4,014
|
|
|
2,679
|
|
|
49.8
|
%
|
|
7,902
|
|
|
5,383
|
|
|
46.8
|
%
|
||||
Total operating expenses
|
|
$
|
9,190
|
|
|
$
|
7,229
|
|
|
27.1
|
%
|
|
$
|
18,150
|
|
|
$
|
14,878
|
|
|
22.0
|
%
|
|
|
Three months ended September 30,
|
|
|
|
Six months ended September 30,
|
|
|
||||||||||||||
|
|
2019
|
|
2018
|
|
% of Change
|
|
2019
|
|
2018
|
|
% of Change
|
||||||||||
|
|
(in thousands)
|
|
|
|
(in thousands)
|
|
|
||||||||||||||
Interest income / (expense), net
|
|
$
|
41
|
|
|
$
|
(135
|
)
|
|
(130.4
|
)%
|
|
$
|
59
|
|
|
$
|
(454
|
)
|
|
(113.0
|
)%
|
Change in fair value of convertible note embedded derivative liability
|
|
—
|
|
|
952
|
|
|
(100.0
|
)%
|
|
—
|
|
|
2,572
|
|
|
(100.0
|
)%
|
||||
Change in fair value of warrant liability
|
|
(4,505
|
)
|
|
926
|
|
|
(586.5
|
)%
|
|
(9,731
|
)
|
|
2,496
|
|
|
(489.9
|
)%
|
||||
Other income / (expense)
|
|
84
|
|
|
(13
|
)
|
|
(746.2
|
)%
|
|
474
|
|
|
(132
|
)
|
|
(459.1
|
)%
|
||||
Total interest and other income / (expense), net
|
|
$
|
(4,380
|
)
|
|
$
|
1,730
|
|
|
(353.2
|
)%
|
|
$
|
(9,198
|
)
|
|
$
|
4,482
|
|
|
(305.2
|
)%
|
|
|
Six months ended September 30,
|
|
|
|||||||
|
|
2019
|
|
2018
|
|
% of Change
|
|||||
|
|
(in thousands)
|
|
|
|||||||
Consolidated statement of cash flows data:
|
|
|
|
|
|
|
|||||
Net cash provided by / (used in) operating activities - continuing operations
|
|
$
|
11,764
|
|
|
$
|
(157
|
)
|
|
7,593.0
|
%
|
Capital expenditures
|
|
(1,805
|
)
|
|
(1,085
|
)
|
|
(66.4
|
)%
|
||
Options and warrants exercised
|
|
4,813
|
|
|
160
|
|
|
2,908.1
|
%
|
||
Repayment of debt obligations
|
|
—
|
|
|
(50
|
)
|
|
100.0
|
%
|
||
Effect of exchange rate changes on cash
|
|
(320
|
)
|
|
—
|
|
|
(100.0
|
)%
|
|
|
Payments Due by Period
|
||||||||||||||||||
|
|
Total
|
|
Within the Next 12 Months
|
|
2 to 3 Years
|
|
4 to 5 Years
|
|
More Than 5 Years
|
||||||||||
Contractual cash obligations
|
|
(in thousands)
|
||||||||||||||||||
Operating leases (a)
|
|
$
|
4,242
|
|
|
$
|
943
|
|
|
$
|
1,826
|
|
|
$
|
1,392
|
|
|
$
|
81
|
|
Interest and bank fees
|
|
41
|
|
|
41
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Uncertain tax positions (b)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total contractual cash obligations
|
|
$
|
4,283
|
|
|
$
|
984
|
|
|
$
|
1,826
|
|
|
$
|
1,392
|
|
|
$
|
81
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
|
||
|
|
|
101
|
|
INS XBRL Instance Document.*
|
|
|
|
101
|
|
SCH XBRL Schema Document.*
|
|
|
|
101
|
|
CAL XBRL Taxonomy Extension Calculation Linkbase Document.*
|
|
|
|
101
|
|
DEF XBRL Taxonomy Extension Definition Linkbase Document.*
|
|
|
|
101
|
|
LAB XBRL Taxonomy Extension Label Linkbase Document.*
|
|
|
|
101
|
|
PRE XBRL Taxonomy Extension Presentation Linkbase Document.*
|
*
|
Filed herewith.
|
+
|
In accordance with SEC Release No. 33-8212, these exhibits are being furnished, and are not being filed, as part of the Report on Form 10-Q or as a separate disclosure document, and are not being incorporated by reference into any Securities Act registration statement.
|
|
|
Digital Turbine, Inc.
|
||
Dated: November 4, 2019
|
|
|
||
|
|
By:
|
|
/s/ William Stone
|
|
|
|
|
William Stone
|
|
|
|
|
Chief Executive Officer
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(Principal Executive Officer)
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Digital Turbine, Inc.
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Dated: November 4, 2019
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By:
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/s/ Barrett Garrison
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Barrett Garrison
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Chief Financial Officer
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(Principal Financial Officer)
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1 Year Digital Turbine Chart |
1 Month Digital Turbine Chart |
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