We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Pareteum Corporation | NASDAQ:TEUM | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0.279 | 0.283 | 0.2998 | 0 | 01:00:00 |
|
Delaware
|
| |
4819
|
| |
95-4557538
|
|
|
(State or other jurisdiction of
incorporation or organization) |
| |
(Primary Standard Industrial
Classification Code Number) |
| |
(IRS Employer
Identification No.) |
|
| | | | | ||||
|
Darrin Ocasio
Avital Perlman Sichenzia Ross Ference LLP 1185 Avenue of the Americas, 37 th Floor New York, New York 10036 Telephone: (212) 930-9700 Fax Number: (212) 930-9725 |
| |
Gary Griffiths
iPass Inc. 3800 Bridge Parkway Suite 200 Redwood Shores, CA 94065 Telephone: (650) 232-4100 |
| |
Timothy Moore
Brett White Cooley LLP 3175 Hanover Street Palo Alto, CA 94304 Telephone: (650) 843-5000 Fax Number: (650) 849-7400 |
|
|
Large Accelerated filer
☐
|
| |
Accelerated filer
☐
|
|
|
Non-Accelerated filer
☒
|
| |
Smaller reporting company
☒
|
|
| | | |
Emerging growth company
☐
|
|
| | |
Page
|
| |||
| | | | 1 | | | |
| | | | 2 | | | |
| | | | 2 | | | |
| | | | 2 | | | |
| | | | 2 | | | |
| | | | 3 | | | |
| | | | 3 | | | |
| | | | 3 | | | |
| | | | 3 | | | |
| | | | 3 | | | |
| | | | 4 | | | |
| | | | 4 | | | |
| | | | 5 | | | |
| | | | 5 | | | |
| | | | 5 | | | |
| | | | 6 | | | |
| | | | 6 | | | |
| | | | 6 | | | |
| | | | 6 | | | |
| | | | 6 | | | |
SUMMARY | | | | | 7 | | |
| | | | 7 | | | |
| | | | 7 | | | |
| | | | 7 | | | |
| | | | 7 | | | |
| | | | 7 | | | |
| | | | 8 | | | |
| | | | 9 | | | |
| | | | 10 | | | |
| | | | 10 | | | |
| | | | 10 | | | |
| | | | 10 | | | |
| | | | 10 | | | |
| | | | 11 | | | |
| | | | 11 | | | |
| | | | 11 | | | |
| | | | 11 | | | |
| | | | 12 | | | |
| | | | 12 | | |
| | |
Page
|
| |||
| | | | 15 | | | |
| | | | 16 | | | |
| | | | 25 | | | |
| | | | 27 | | | |
| | | | 27 | | | |
| | | | 27 | | | |
| | | | 27 | | | |
| | | | 27 | | | |
| | | | 27 | | | |
| | | | 32 | | | |
| | | | 48 | | | |
| | | | 49 | | | |
| | | | 50 | | | |
| | | | 50 | | | |
| | | | 50 | | | |
| | | | 55 | | | |
| | | | 57 | | | |
| | | | 60 | | | |
| | | | 67 | | | |
| | | | 69 | | | |
| | | | 70 | | | |
| | | | 70 | | | |
| | | | 70 | | | |
| | | | 74 | | | |
| | | | 74 | | | |
| | | | 75 | | | |
| | | | 75 | | | |
| | | | 75 | | | |
| | | | 76 | | | |
| | | | 76 | | | |
| | | | 76 | | | |
| | | | 76 | | | |
| | | | 77 | | | |
| | | | 77 | | | |
| | | | 78 | | | |
| | | | 79 | | | |
| | | | 79 | | | |
| | | | 80 | | | |
| | | | 80 | | |
| | |
Page
|
| |||
| | | | 80 | | | |
| | | | 80 | | | |
| | | | 81 | | | |
| | | | 81 | | | |
| | | | 81 | | | |
| | | | 82 | | | |
| | | | 82 | | | |
| | | | 82 | | | |
| | | | 83 | | | |
| | | | 83 | | | |
| | | | 83 | | | |
| | | | 84 | | | |
| | | | 84 | | | |
| | | | 85 | | | |
| | | | 86 | | | |
| | | | 86 | | | |
| | | | 86 | | | |
| | | | 87 | | | |
| | | | 92 | | | |
| | | | 94 | | | |
| | | | 94 | | | |
| | | | 94 | | | |
| | | | 95 | | | |
| | | | 96 | | | |
| | | | 99 | | | |
| | | | 99 | | | |
| | | | 100 | | | |
| | | | 100 | | | |
| | | | 102 | | | |
| | | | 102 | | | |
| | | | 104 | | | |
| | | | 105 | | | |
| | | | 105 | | | |
| | | | 105 | | | |
| | | | 106 | | | |
| | | | 107 | | | |
| | | | 107 | | | |
| | | | 107 | | |
| | |
Page
|
| |||
| | | | 108 | | | |
| | | | 118 | | | |
| | | | 118 | | | |
| | | | 120 | | | |
| | | | 121 | | | |
| | | | 122 | | | |
| | | | 122 | | | |
| | | | 122 | | | |
| | | | 122 | | | |
| | | | 124 | | | |
| | | | 125 | | | |
| | | | 129 | | | |
EXPERTS | | | | | 129 | | |
| | | | 129 | | | |
| | | | 130 | | | |
| | | | F-1 | | | |
| | | | A-1 | | | |
| | | | B-1 | | | |
| | | | C-1 | | |
| | |
Per-Share iPass
Closing Price |
| |
Per-Share Pareteum
Closing Price |
| |
Implied Transaction
Value of iPass Share |
| |||||||||
November 9, 2018
|
| | | $ | 1.48 | | | | | $ | 2.22 | | | | | $ | 2.60 | | |
January 10, 2019
|
| | | $ | 2.33 | | | | | $ | 2.15 | | | | | $ | 2.52 | | |
| |
|
| |
| |
509 Madison Avenue
Suite 1608 New York, NY 10022 Stockholders Call Toll Free: (800) 662-5200 E-mail: ipass@morrowsodali.com |
| |
|
Overview
|
| | Discussion of iPass’s business | |
|
Business Highlights
|
| | Discussion of iPass’s Assets | |
|
Business Portfolio and iPass’s strategy
|
| | Description of iPass’s business and strategy | |
|
Significant Trends and Events
|
| | Operating, financial and other material trends and events that affect iPass and may reflect iPass’s performance | |
|
Key Operating Metrics
|
| | Discussion of key operating metrics that iPass uses to evaluate its operating performance | |
|
Critical Accounting Policies and Estimates
|
| | Accounting policies and estimates that iPass believes are most important to understanding the assumptions and judgments incorporated in iPass’s reported financial results | |
|
Results of Operations
|
| | An analysis of iPass’s financial results comparing the three and nine months ended September 30, 2018 and September 30, 2017, and years ended December 31, 2017 and 2016. | |
|
Liquidity and Capital Resources
|
| | An analysis of changes in iPass’s balance sheet and cash flows, and discussion of iPass’s financial condition, potential sources of liquidity and other required disclosures | |
| | |
For the Quarter Ended
|
| |||||||||||||||||||||||||||
| | |
September 30,
2018 |
| |
June 30,
2018 |
| |
March 31,
2018 |
| |
December 31,
2017 |
| |
September 30,
2017 |
| |||||||||||||||
| | |
(in thousands except percentages and TB)
|
| |||||||||||||||||||||||||||
ACV (1) : | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Gross ACV
|
| | | $ | 535 | | | | | $ | 3,462 | | | | | $ | 1,663 | | | | | $ | 1,564 | | | | | $ | 933 | | |
ACV reversals
|
| | | | (224 ) | | | | | | — | | | | | | (40 ) | | | | | | (381 ) | | | | | | — | | |
Net ACV
|
| | | $ | 311 | | | | | $ | 3,462 | | | | | $ | 1,623 | | | | | $ | 1,183 | | | | | $ | 933 | | |
Short-term and long-term deferred revenue
|
| | | $ | 3,566 | | | | | $ | 4,853 | | | | | $ | 3,062 | | | | | $ | 3,825 | | | | | $ | 2,822 | | |
NAC: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Committed purchase capacity
(2)
|
| | | | 55 % | | | | | | 54 % | | | | | | 63 % | | | | | | 88 % | | | | | | 84 % | | |
Total purchased capacity (TB)
(3)
|
| | | | 73 | | | | | | 75 | | | | | | 79 | | | | | | 90 | | | | | | 89 | | |
Capacity consumed
(4)
|
| | | | 31 % | | | | | | 32 % | | | | | | 35 % | | | | | | 36 % | | | | | | 40 % | | |
Gross Margin
(5)
|
| | | | 24.4 % | | | | | | 26.7 % | | | | | | 28.0 % | | | | | | 20.9 % | | | | | | 10.9 % | | |
Network Hours Consumed (6) : | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unlimited and strategic partnerships
|
| | | | 332 | | | | | | 328 | | | | | | 371 | | | | | | 500 | | | | | | 645 | | |
Other pricing plans
|
| | | | 148 | | | | | | 194 | | | | | | 208 | | | | | | 270 | | | | | | 298 | | |
Total Network Hours Consumed
|
| | | | 480 | | | | | | 522 | | | | | | 579 | | | | | | 770 | | | | | | 943 | | |
Wi-Fi Network Users (7) : | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Enterprise
|
| | | | 62 | | | | | | 87 | | | | | | 88 | | | | | | 94 | | | | | | 91 | | |
Strategic partnerships
|
| | | | 55 | | | | | | 48 | | | | | | 62 | | | | | | 71 | | | | | | 83 | | |
Total Wi-Fi Network Users
|
| | | | 117 | | | | | | 135 | | | | | | 150 | | | | | | 165 | | | | | | 174 | | |
|
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2018
|
| |
2017
|
| |
2018
|
| |
2017
|
| ||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||
Mobile Connectivity Services
|
| | | $ | 9,275 | | | | | $ | 13,399 | | | | | $ | 31,237 | | | | | $ | 41,159 | | |
Enterprise
|
| | | | 7,036 | | | | | | 10,136 | | | | | | 24,612 | | | | | | 33,007 | | |
Unlimited Customers
|
| | | | 2,400 | | | | | | 2,729 | | | | | | 7,619 | | | | | | 7,113 | | |
Other Pricing Plan Customers
|
| | | | 4,636 | | | | | | 7,407 | | | | | | 16,993 | | | | | | 25,894 | | |
Strategic Partnerships
|
| | | | 2,239 | | | | | | 3,263 | | | | | | 6,625 | | | | | | 8,152 | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2018
|
| |
2017
|
| |
2018
|
| |
2017
|
| ||||||||||||
| | |
(Dollars in thousands)
|
| |||||||||||||||||||||
Network access costs
|
| | | $ | 5,720 | | | | | $ | 10,312 | | | | | $ | 18,903 | | | | | $ | 29,469 | | |
As a percentage of total revenue
|
| | | | 61.7 % | | | | | | 77.0 % | | | | | | 60.5 % | | | | | | 71.6 % | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2018
|
| |
2017
|
| |
2018
|
| |
2017
|
| ||||||||||||
| | |
(Dollars in thousands)
|
| |||||||||||||||||||||
Network operations costs
|
| | | $ | 1,294 | | | | | $ | 1,629 | | | | | $ | 4,057 | | | | | $ | 4,835 | | |
As a percentage of total revenue
|
| | | | 14.0 % | | | | | | 12.2 % | | | | | | 13.0 % | | | | | | 11.7 % | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2018
|
| |
2017
|
| |
2018
|
| |
2017
|
| ||||||||||||
| | |
(Dollars in thousands)
|
| |||||||||||||||||||||
Research and development expense
|
| | | $ | 1,825 | | | | | $ | 1,948 | | | | | $ | 5,745 | | | | | $ | 6,059 | | |
As a percentage of total revenue
|
| | | | 19.7 % | | | | | | 14.5 % | | | | | | 18.4 % | | | | | | 14.7 % | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2018
|
| |
2017
|
| |
2018
|
| |
2017
|
| ||||||||||||
| | |
(Dollars in thousands)
|
| |||||||||||||||||||||
Sales and marketing expense
|
| | | $ | 2,760 | | | | | $ | 2,520 | | | | | $ | 7,668 | | | | | $ | 7,588 | | |
As a percentage of total revenue
|
| | | | 29.8 % | | | | | | 18.8 % | | | | | | 24.5 % | | | | | | 18.4 % | | |
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2018
|
| |
2017
|
| |
2018
|
| |
2017
|
| ||||||||||||
| | |
(Dollars in thousands)
|
| |||||||||||||||||||||
General and administrative expense
|
| | | $ | 2,426 | | | | | $ | 3,427 | | | | | $ | 7,995 | | | | | $ | 8,746 | | |
As a percentage of total revenue
|
| | | | 26.2 % | | | | | | 25.6 % | | | | | | 25.6 % | | | | | | 21.2 % | | |
| | |
For the Year Ended December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(in thousands)
|
| |||||||||
Mobile Connectivity Services
|
| | | $ | 54,401 | | | | | $ | 63,222 | | |
Enterprise
|
| | | | 41,760 | | | | | | 49,090 | | |
Unlimited Customers
|
| | | | 10,085 | | | | | | 5,567 | | |
Other Pricing Plan Customers
|
| | | | 31,675 | | | | | | 43,523 | | |
Strategic Partnerships
|
| | | | 10,958 | | | | | | 11,925 | | |
Legacy iPC
|
| | | | 1,683 | | | | | | 2,207 | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Gross Margin (%)
|
| | | | 17.7 % | | | | | | 35.8 % | | |
| | |
Year Ended
December 31, |
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(Dollars in thousands)
|
| |||||||||
Network access costs
|
| | | $ | 38,548 | | | | | $ | 33,150 | | |
As a percentage of revenue
|
| | | | 70.9 % | | | | | | 52.4 % | | |
| | |
Year Ended
December 31, |
| | | |||||||||||||
| | |
2017
|
| |
2016
|
| | | ||||||||||
| | |
(Dollars in thousands)
|
| |||||||||||||||
Network operations expense
|
| | | $ | 6,235 | | | | | $ | 7,411 | | | | | ||||
As a percentage of revenue
|
| | | | 11.5 % | | | | | | 11.7 % | | | | |
| | |
Year Ended
December 31, |
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(Dollars in thousands)
|
| |||||||||
Research and development expenses
|
| | | $ | 7,953 | | | | | $ | 7,276 | | |
As a percentage of revenue
|
| | | | 14.6 % | | | | | | 11.5 % | | |
| | |
Year Ended
December 31, |
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(Dollars in thousands)
|
| |||||||||
Sales and marketing expenses
|
| | | $ | 10,245 | | | | | $ | 11,154 | | |
As a percentage of revenue
|
| | | | 18.8 % | | | | | | 17.6 % | | |
| | |
Year Ended
December 31, |
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(Dollars in thousands)
|
| |||||||||
General and administrative expenses
|
| | | $ | 11,482 | | | | | $ | 10,792 | | |
As a percentage of revenue
|
| | | | 21.1 % | | | | | | 17.1 % | | |
| | |
Year Ended
December 31, |
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(Dollars in thousands)
|
| |||||||||
Restructuring charges and related adjustments
|
| | | $ | — | | | | | $ | 788 | | |
As a percentage of revenue
|
| | | | — % | | | | | | 1.2 % | | |
| | |
Nine months ended
September 30, |
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Cash Flows | | | | | | | | | | | | | |
Net cash used in operating activities
|
| | | $ | (12,280 ) | | | | | $ | (8,542 ) | | |
Net cash used in investing activities
|
| | | | (192 ) | | | | | | (737 ) | | |
Net cash provided by financing activities
|
| | | | 12,225 | | | | | | 264 | | |
Net decrease in cash and cash equivalents
|
| | | $ | (247 ) | | | | | $ | (9,015 ) | | |
|
| | |
Twelve months ended
December 31, |
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Cash Flows | | | | | | | | | | | | | |
Net cash used in operating activities
|
| | | $ | (11,546 ) | | | | | $ | (5,482 ) | | |
Net cash used in investing activities
|
| | | | (813 ) | | | | | | (581 ) | | |
Net cash provided by financing activities
|
| | | | 1,446 | | | | | | 1,841 | | |
Net decrease in cash and cash equivalents
|
| | | $ | (10,913 ) | | | | | $ | (4,222 ) | | |
|
Enterprise Value/Revenue
|
| ||||||||||||||||||
| | |
LTM
|
| |
CY 2018E
|
| |
CY 2019E
|
| |||||||||
Aviat Networks, Inc.
|
| | | | 0.24x | | | | | | N/A | | | | | | N/A | | |
ClearOne, Inc.
|
| | | | 0.22x | | | | | | N/A | | | | | | N/A | | |
Communications Systems, Inc.
|
| | | | 0.24x | | | | | | N/A | | | | | | N/A | | |
Lantronix, Inc.
|
| | | | 1.48x | | | | | | 1.46x | | | | | | 1.35x | | |
PCTEL, Inc.
|
| | | | 0.49x | | | | | | 0.54x | | | | | | 0.49x | | |
Qumu Corporation
|
| | | | 0.77x | | | | | | 0.79x | | | | | | 0.72x | | |
Redline Communications Group Inc.
|
| | | | 0.56x | | | | | | 0.52x | | | | | | 0.44x | | |
SeaChange International, Inc.
|
| | | | 0.47x | | | | | | 0.50x | | | | | | 0.47x | | |
Synacor, Inc.
|
| | | | 0.32x | | | | | | 0.32x | | | | | | 0.30x | | |
Westell Technologies, Inc.
|
| | | | 0.11x | | | | | | 0.12x | | | | | | N/A | | |
Wireless Telecom Group, Inc.
|
| | | | 0.80x | | | | | | N/A | | | | | | N/A | | |
xG Technology, Inc.
|
| | | | 0.26x | | | | | | N/A | | | | | | N/A | | |
Third Quartile
|
| | | | 0.61x | | | | | | 0.66x | | | | | | 0.66x | | |
Mean | | | | | 0.50x | | | | | | 0.61x | | | | | | 0.63x | | |
Median | | | | | 0.40x | | | | | | 0.52x | | | | | | 0.48x | | |
First Quartile
|
| | | | 0.24x | | | | | | 0.41x | | | | | | 0.45x | | |
iPass Implied by the Per Share Amount
|
| | | | 0.66x | | | | | | 0.68x | | | | | | 0.51x | | |
| | |
Enterprise Value/Revenue
|
| |||||||||||||||
| | |
LTM
|
| |
CY 2018E
|
| |
CY 2019E
|
| |||||||||
Third Quartile
|
| | | | 0.61x | | | | | | 0.66x | | | | | | 0.66x | | |
Mean
|
| | | | 0.50x | | | | | | 0.61x | | | | | | 0.63x | | |
Median
|
| | | | 0.40x | | | | | | 0.52x | | | | | | 0.48x | | |
First Quartile
|
| | | | 0.24x | | | | | | 0.41x | | | | | | 0.45x | | |
iPass Implied by the Per Share Amount
|
| | | | 0.66x | | | | | | 0.68x | | | | | | 0.51x | | |
| | |
Enterprise Value/Revenue
|
| |||||||||||||||
| | |
LTM
|
| |
CY 2018E
|
| |
CY 2019E
|
| |||||||||
Third Quartile
|
| | | $ | 2.33 | | | | | $ | 2.52 | | | | | $ | 3.65 | | |
Mean
|
| | | $ | 1.72 | | | | | $ | 2.23 | | | | | $ | 3.43 | | |
Median
|
| | | $ | 1.19 | | | | | $ | 1.78 | | | | | $ | 2.42 | | |
First Quartile
|
| | | $ | 0.38 | | | | | $ | 1.22 | | | | | $ | 2.19 | | |
Per Share Amount
|
| | | $ | 2.60 | | | | | $ | 2.60 | | | | | $ | 2.60 | | |
| | | | | |
Enterprise Value/Revenue
|
| |||||||||
Acquiror
|
| |
Target
|
| |
LTM
|
| |
NTM
|
| ||||||
Reliance Industries Limited
|
| | Radisys Corporation | | | | | 1.07x | | | | | | 1.08x | | |
ADVA Optical Networking SE
|
| | MRV Communications, Inc. | | | | | 0.58x | | | | | | 0.52x | | |
Fortinet, Inc.
|
| | Meru Networks, Inc. | | | | | 0.39x | | | | | | 0.40x | | |
| | | | | |
Enterprise Value/Revenue
|
| |||||||||
Acquiror
|
| |
Target
|
| |
LTM
|
| |
NTM
|
| ||||||
Marlin Equity III, L.P.
|
| | Sycamore Networks, Inc. | | | | | 0.33x | | | | | | 0.38x | | |
Sonus Networks, Inc.
|
| |
Network Equipment Technologies, Inc.
|
| | | | 1.39x | | | | | | 1.29x | | |
ARRIS Group, Inc.
|
| | BigBand Networks, Inc. | | | | | 0.61x | | | | | | 0.60x | | |
Platinum Equity Advisors, LLC
|
| | Ulticome, Inc. | | | | | 0.40x | | | | | | 0.40x | | |
Francisco Partners II, L.P.
|
| | EF Johnson Technologies, Inc. | | | | | 0.37x | | | | | | 0.32x | | |
Third Quartile
|
| | | | | | | 0.95x | | | | | | 0.96x | | |
Mean | | | | | | | | 0.64x | | | | | | 0.62x | | |
Median | | | | | | | | 0.49x | | | | | | 0.46x | | |
First Quartile
|
| | | | | | | 0.38x | | | | | | 0.39x | | |
iPass Implied by the Per Share Amount
|
| | | | | | | 0.66x | | | | | | 0.68x | | |
| | |
Implied Equity Price Per Share
|
| |||||||||
| | |
LTM
|
| |
NTM
|
| ||||||
Third Quartile
|
| | | $ | 4.14 | | | | | $ | 5.28 | | |
Mean | | | | $ | 2.49 | | | | | $ | 3.14 | | |
Median | | | | $ | 1.68 | | | | | $ | 2.10 | | |
First Quartile
|
| | | $ | 1.10 | | | | | $ | 1.62 | | |
iPass Implied by the Per Share Amount
|
| | | $ | 2.60 | | | | | $ | 2.60 | | |
| | |
Equity Value/
Per Share |
| |||
Minimum
|
| | | $ | 2.36 | | |
Maximum
|
| | | $ | 3.76 | | |
Per Share Amount
|
| | | $ | 2.60 | | |
| | |
Q4 2018
|
| |
CY 2018
|
| |
CY 2019
|
| |
CY 2020
|
| |
CY 2021
|
| |||||||||||||||
Total Revenue
|
| | | $ | 12.1 | | | | | $ | 43.4 | | | | | $ | 58.1 | | | | | $ | 61.8 | | | | | $ | 63.9 | | |
Total CoGS
|
| | | $ | 7.2 | | | | | $ | 30.1 | | | | | $ | 29.1 | | | | | $ | 27.8 | | | | | $ | 26.1 | | |
Gross Profit
|
| | | $ | 4.9 | | | | | $ | 13.2 | | | | | $ | 29.0 | | | | | $ | 34.0 | | | | | $ | 37.9 | | |
% Gross Margin
|
| | | | 40.7 % | | | | | | 30.5 % | | | | | | 49.9 % | | | | | | 55.0 % | | | | | | 59.2 % | | |
OPEX | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
R&D
|
| | | $ | 1.8 | | | | | $ | 7.5 | | | | | $ | 7.2 | | | | | $ | 7.7 | | | | | $ | 8.5 | | |
S&M
|
| | | | 2.7 | | | | | | 10.3 | | | | | | 9.4 | | | | | | 9.4 | | | | | | 10.3 | | |
G&A
|
| | | | 2.4 | | | | | | 10.4 | | | | | | 9.8 | | | | | | 10.0 | | | | | | 10.5 | | |
Total OPEX (GAAP Basis)
|
| | | $ | 6.9 | | | | | $ | 28.2 | | | | | $ | 26.4 | | | | | $ | 27.0 | | | | | $ | 29.3 | | |
Operating Loss
|
| | | $ | (2.0 ) | | | | | $ | (15.0 ) | | | | | $ | 2.6 | | | | | $ | 6.9 | | | | | $ | 8.6 | | |
Interest Expense
|
| | | | 0.6 | | | | | | 1.4 | | | | | | 2.4 | | | | | | 2.4 | | | | | | 2.4 | | |
Tax Provision
|
| | | | 0.1 | | | | | | 0.3 | | | | | | 0.4 | | | | | | 0.4 | | | | | | 0.4 | | |
Net Income (Loss)
|
| | | $ | (2.7 ) | | | | | $ | (16.7 ) | | | | | $ | (0.2 ) | | | | | $ | 4.1 | | | | | $ | 5.8 | | |
Adjustments | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Stock Based Comp/Depreciation
|
| | | $ | 0.5 | | | | | $ | 1.9 | | | | | $ | 1.4 | | | | | $ | 2.0 | | | | | $ | 2.4 | | |
Non-recurring Legal and financing
|
| | | | — | | | | | | 0.2 | | | | | | — | | | | | | — | | | | | | — | | |
Income Tax Expense
|
| | | | 0.1 | | | | | | 0.3 | | | | | | 0.4 | | | | | | 0.4 | | | | | | 0.4 | | |
Interest Expense
|
| | | | (0.6 ) | | | | | | (1.4 ) | | | | | | (2.4 ) | | | | | | (2.4 ) | | | | | | (2.4 ) | | |
ADJ EBITDA
|
| | | $ | (1.5 ) | | | | | $ | (12.9 ) | | | | | $ | 4.0 | | | | | $ | 8.9 | | | | | $ | 11.0 | | |
% Adj. EBITDA Margin
|
| | | | (12.5 )% | | | | | | (29.7 )% | | | | | | 6.9 % | | | | | | 14.5 % | | | | | | 17.1 % | | |
Less: Cash Taxes
|
| | | | — | | | | | | — | | | | | | (0.6 ) | | | | | | (1.7 ) | | | | | | (2.1 ) | | |
Less: Increase in Net Working Capital
|
| | | | (0.4 ) | | | | | | 0.3 | | | | | | 1.6 | | | | | | (0.4 ) | | | | | | (0.2 ) | | |
Less: Capital Expenditures
|
| | | | (0.2 ) | | | | | | (0.4 ) | | | | | | (0.8 ) | | | | | | (1.5 ) | | | | | | (3.0 ) | | |
Unlevered Free Cash Flow (FCF)
|
| | | $ | (2.1 ) | | | | | $ | (12.8 ) | | | | | $ | 4.2 | | | | | $ | 5.3 | | | | | $ | 5.7 | | |
| | |
Number of Shares
Subject to iPass RSAs |
| |
Total Payment With
Respect to iPass RSAs |
| ||||||||||||
Non-Employee Directors
|
| |
iPass Shares
|
| |
Pareteum Shares
|
| |
Value
|
| |||||||||
Michael Tedesco
|
| | | | 10,587 | | | | | | 12,387 | | | | | $ | 24,625 | | |
David Panos
|
| | | | 10,587 | | | | | | 12,387 | | | | | $ | 24,625 | | |
Justin Spencer
|
| | | | 10,920 | | | | | | 12,776 | | | | | $ | 25,399 | | |
Neal Goldman
|
| | | | 21,876 | | | | | | 25,595 | | | | | $ | 50,883 | | |
Gary Griffiths
|
| | | | 50,000 | | | | | | 58,500 | | | | | $ | 116,298 | | |
Patricia Hume
|
| | | | 50,000 | | | | | | 58,500 | | | | | $ | 116,298 | | |
Darin Vickery
|
| | | | 50,000 | | | | | | 58,500 | | | | | $ | 116,298 | | |
Named Executive Officers
(4)
|
| |
Cash
(1)
|
| |
Equity
(2)
|
| |
Perquisites/
Benefits (3) |
| |
Total
|
| ||||||||||||
Gary Griffiths
|
| | | $ | 585,000 | | | | | $ | 116,298 | | | | | $ | 61,991 | | | | | $ | 763,289 | | |
Patricia Hume
|
| | | $ | 585,000 | | | | | $ | 116,298 | | | | | $ | 40,454 | | | | | $ | 741,752 | | |
Darin Vickery
|
| | | $ | 360,000 | | | | | $ | 116,298 | | | | | $ | 62,925 | | | | | $ | 539,223 | | |
| | |
Per-Share iPass
Closing Price |
| |
Per-Share Pareteum
Closing Price |
| |
Implied Transaction Value
of iPass Share |
| |||||||||
November 9, 2018
|
| | | $ | 1.48 | | | | | $ | 2.22 | | | | | $ | 2.60 | | |
January 10, 2019
|
| | | $ | 2.33 | | | | | $ | 2.15 | | | | | $ | 2.52 | | |
| | |
Historical
Pareteum |
| |
Artilium
|
| |
iPass
|
| |
Pro Forma
Adjustments [Note 1] |
| |
Pro Forma
Condensed Combined |
| |||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash, cash equivalents and restricted cash
|
| | | $ | 13,737,675 | | | | | $ | 3,499,113 | | | | | $ | 5,159,000 | | | | | $ | (18,467,248 ) | | | | | $ | 3,928,540 | | |
Accounts receivable, net
|
| | | | 2,058,284 | | | | | | 3,643,330 | | | | | | 8,717,000 | | | | | | — | | | | | | 14,418,614 | | |
Prepaid expenses and other current assets
|
| | | | 900,369 | | | | | | 134,312 | | | | | | 2,353,000 | | | | | | — | | | | | | 3,387,681 | | |
Total current assets
|
| | | | 16,696,328 | | | | | | 7,276,755 | | | | | | 16,229,000 | | | | | | (18,467,248 ) | | | | | | 21,734,835 | | |
Investments
|
| | | | 3,230,208 | | | | | | 6,596,487 | | | | | | — | | | | | | (9,826,695 ) | | | | | | — | | |
Property and equipment, net
|
| | | | 4,713,710 | | | | | | 545,494 | | | | | | 1,334,000 | | | | | | — | | | | | | 6,593,204 | | |
Note receivable
|
| | | | 594,520 | | | | | | — | | | | | | — | | | | | | — | | | | | | 594,520 | | |
Intangible assets
|
| | | | — | | | | | | 3,749,141 | | | | | | — | | | | | | — | | | | | | 3,749,141 | | |
Other assets
|
| | | | 91,267 | | | | | | — | | | | | | 840,000 | | | | | | — | | | | | | 931,267 | | |
Goodwill
|
| | | | — | | | | | | 20,549,865 | | | | | | — | | | | | | 102,443,693 | | | | | | 122,993,558 | | |
TOTAL ASSETS
|
| | | $ | 25,326,033 | | | | | $ | 38,717,742 | | | | | $ | 18,403,000 | | | | | $ | 74,149,750 | | | | | $ | 156,596,525 | | |
LIABILITIES AND
STOCKHOLDER’S EQUITY |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable and customer
deposits |
| | | $ | 1,978,726 | | | | | $ | 2,561,518 | | | | | $ | 9,044,000 | | | | | $ | — | | | | | $ | 13,584,244 | | |
Other current liabilities
|
| | | | 5,250,130 | | | | | | 119,986 | | | | | | 3,734,000 | | | | | | — | | | | | | 9,104,116 | | |
Deferred revenue – current
|
| | | | 242,986 | | | | | | 1,974,840 | | | | | | 3,723,000 | | | | | | — | | | | | | 5,940,826 | | |
Convertible notes
|
| | | | 66,000 | | | | | | — | | | | | | — | | | | | | — | | | | | | 66,000 | | |
Loans payable
|
| | | | — | | | | | | 11,999 | | | | | | — | | | | | | — | | | | | | 11,999 | | |
Total current liabilities
|
| | | | 7,537,842 | | | | | | 4,668,343 | | | | | | 16,501,000 | | | | | | — | | | | | | 28,707,185 | | |
Long-term liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative liabilities
|
| | | | 1,597,647 | | | | | | — | | | | | | — | | | | | | — | | | | | | 1,597,647 | | |
Deferred tax liabilities
|
| | | | — | | | | | | 314,282 | | | | | | — | | | | | | — | | | | | | 314,282 | | |
Deferred revenue – long-term
|
| | | | — | | | | | | 3,736,098 | | | | | | 102,000 | | | | | | — | | | | | | 3,838,098 | | |
Other long term liabilities
|
| | | | 769,011 | | | | | | 835,715 | | | | | | 1,009,000 | | | | | | — | | | | | | 2,613,726 | | |
Total current and long-term liabilities
|
| | | | 9,904,500 | | | | | | 9,554,438 | | | | | | 17,612,000 | | | | | | — | | | | | | 37,070,938 | | |
Stockholder’s equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Preferred shares
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Common stock
|
| | | | 321,271,437 | | | | | | 23,484,192 | | | | | | 71,000 | | | | | | 90,352,062 | | | | | | 435,178,691 | | |
Additional paid in capital
|
| | | | — | | | | | | 62,201,296 | | | | | | 226,490,000 | | | | | | (288,691,296 ) | | | | | | — | | |
Treasury stock
|
| | | | — | | | | | | (2,458,068 ) | | | | | | — | | | | | | 2,458,068 | | | | | | — | | |
Accumulated other comprehensive loss
|
| | | | (6,306,691 ) | | | | | | 3,141,281 | | | | | | — | | | | | | (3,141,281 ) | | | | | | (6,306,691 ) | | |
Accumulated deficit
|
| | | | (299,543,213 ) | | | | | | (57,205,397 ) | | | | | | (225,770,000 ) | | | | | | 273,172,197 | | | | | | (309,346,413 ) | | |
Total stockholder’s equity
|
| | | | 15,421,533 | | | | | | 29,163,304 | | | | | | 791,000 | | | | | | 74,149,750 | | | | | | 119,525,587 | | |
TOTAL LIABILITIES AND
EQUITY |
| | | $ | 25,326,033 | | | | | $ | 38,717,742 | | | | | $ | 18,403,000 | | | | | $ | 74,149,750 | | | | | $ | 156,596,525 | | |
|
|
Common stock
|
| | | | 23,484,192 | | | | | | | | |
|
Additional paid-in capital
|
| | | | 62,201,296 | | | | | | | | |
|
Treasury stock
|
| | | | | | | | | | 2,458,068 | | |
|
Accumulated other comprehensive gain (loss)
|
| | | | 3,141,281 | | | | | | | | |
|
Accumulated deficit
|
| | | | | | | | | | 57,205,397 | | |
|
Goodwill
|
| | | | 85,314,916 | | | | | | | | |
|
Professional Fees – M&A
|
| | | | 6,803,300 | | | | | | | | |
|
Cash
|
| | | | | | | | | | 8,864,348 | | |
|
Cash – M&A Costs
|
| | | | | | | | | | 6,602,900 | | |
|
Investments
|
| | | | | | | | | | 9,826,695 | | |
|
Common Stock
|
| | | | | | | | | | 95,787,177 | | |
|
Common Stock – M&A Fees
|
| | | | | | | | | | 200,400 | | |
|
Common stock
|
| | | | 71,000 | | | | | | | | |
|
Additional paid-in capital
|
| | | | 226,490,000 | | | | | | | | |
|
Accumulated deficit
|
| | | | | | | | | | 225,770,000 | | |
|
Goodwill
|
| | | | | | | | | | 791,000 | | |
|
Professional Fees – M&A
|
| | | | 3,000,000 | | | | | | | | |
|
Goodwill
|
| | | | 17,919,677 | | | | | | | | |
|
Common Stock
|
| | | | | | | | | | 17,919,677 | | |
|
Cash – M&A Costs
|
| | | | | | | | | | 3,000,000 | | |
| | |
Historical
Pareteum |
| |
Artilium
|
| |
iPass
|
| |
Pro Forma
Adjustments [Note 2] |
| |
Pro Forma
Condensed Combined |
| |||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Cash, cash equivalents and restricted cash
|
| | | $ | 18,864,352 | | | | | $ | 825,425 | | | | | $ | 4,912,000 | | | | | $ | (18,467,248 ) | | | | | $ | 6,134,529 | | |
Accounts receivable, net
|
| | | | 7,200,014 | | | | | | 3,407,809 | | | | | | 7,944,000 | | | | | | (2,000,000 ) | | | | | | 16,551,823 | | |
Prepaid expenses and other current assets
|
| | | | 943,224 | | | | | | 78,966 | | | | | | 1,449,000 | | | | | | — | | | | | | 2,471,190 | | |
Total current assets
|
| | | | 27,007,590 | | | | | | 4,312,200 | | | | | | 14,305,000 | | | | | | (20,467,248 ) | | | | | | 25,157,542 | | |
Investments
|
| | | | 3,230,208 | | | | | | 9,613,182 | | | | | | — | | | | | | (12,843,390 ) | | | | | | — | | |
Property and equipment, net
|
| | | | 3,944,659 | | | | | | 418,275 | | | | | | 1,009,000 | | | | | | (962,708 ) | | | | | | 4,409,226 | | |
Note receivable
|
| | | | 587,695 | | | | | | — | | | | | | — | | | | | | — | | | | | | 587,695 | | |
Intangible assets
|
| | | | — | | | | | | 5,498,615 | | | | | | — | | | | | | — | | | | | | 5,498,615 | | |
Other assets
|
| | | | 39,067 | | | | | | — | | | | | | 859,000 | | | | | | — | | | | | | 898,067 | | |
Goodwill
|
| | | | — | | | | | | 21,498,589 | | | | | | — | | | | | | 127,073,093 | | | | | | 146,908,084 | | |
TOTAL ASSETS
|
| | | $ | 34,809,219 | | | | | $ | 41,340,861 | | | | | $ | 16,173,000 | | | | | $ | 92,799,747 | | | | | $ | 183,459,229 | | |
LIABILITIES AND
STOCKHOLDER’S EQUITY |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Accounts payable and customer
deposits |
| | | $ | 2,795,981 | | | | | $ | 3,695,118 | | | | | $ | 8,145,000 | | | | | $ | — | | | | | $ | 14,636,099 | | |
Other current liabilities
|
| | | | 3,891,454 | | | | | | 3,402,152 | | | | | | 3,708,000 | | | | | | — | | | | | | 11,001,606 | | |
Deferred revenue – current
|
| | | | 122,906 | | | | | | 2,153,926 | | | | | | 3,541,000 | | | | | | (1,222,000 ) | | | | | | 4,595,832 | | |
Convertible notes
|
| | | | 90,308 | | | | | | — | | | | | | — | | | | | | — | | | | | | 90,308 | | |
Loans payable
|
| | | | — | | | | | | 154,275 | | | | | | — | | | | | | — | | | | | | 154,275 | | |
Total current liabilities
|
| | | | 6,900,649 | | | | | | 9,405,471 | | | | | | 15,394,000 | | | | | | (1,222,000 ) | | | | | | 30,478,120 | | |
Long-term liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deferred tax liabilities
|
| | | | — | | | | | | 886,903 | | | | | | — | | | | | | — | | | | | | 886,903 | | |
Deferred revenue – long-term
|
| | | | — | | | | | | 3,086,054 | | | | | | 25,000 | | | | | | — | | | | | | 3,111,054 | | |
Other long term liabilities
|
| | | | 94,999 | | | | | | 406,375 | | | | | | 8,292,000 | | | | | | — | | | | | | 8,793,374 | | |
Total current and long-term liabilities
|
| | | | 6,995,648 | | | | | | 13,784,803 | | | | | | 23,711,000 | | | | | | (1,222,000 ) | | | | | | 43,269,451 | | |
Stockholder’s equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Preferred shares
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Common stock
|
| | | | 341,157,837 | | | | | | 24,494,655 | | | | | | 82,000 | | | | | | 101,007,158 | | | | | | 465,077,952 | | |
Additional paid in capital
|
| | | | — | | | | | | 63,915,591 | | | | | | 232,144,000 | | | | | | (296,059,591 ) | | | | | | — | | |
Treasury stock
|
| | | | — | | | | | | (2,458,068 ) | | | | | | — | | | | | | 2,458,068 | | | | | | — | | |
Accumulated other comprehensive loss
|
| | | | (6,303,005 ) | | | | | | (138,637 ) | | | | | | — | | | | | | 138,637 | | | | | | (6,303,005 ) | | |
Accumulated deficit
|
| | | | (307,041,261 ) | | | | | | (58,257,483 ) | | | | | | (239,764,000 ) | | | | | | 286,477,575 | | | | | | (318,585,169 ) | | |
Total stockholder’s equity
|
| | | | 27,813,571 | | | | | | 27,556,058 | | | | | | (7,538,000 ) | | | | | | 94,021,747 | | | | | | 140,189,778 | | |
TOTAL LIABILITIES AND
EQUITY |
| | | $ | 34,809,219 | | | | | $ | 41,340,861 | | | | | $ | 16,173,000 | | | | | $ | 92,799,747 | | | | | $ | 183,459,229 | | |
|
|
Common stock
|
| | | | 24,494,655 | | | | | | | | |
|
Additional paid-in capital
|
| | | | 63,915,591 | | | | | | | | |
|
Treasury stock
|
| | | | | | | | | | 2,458,068 | | |
|
Accumulated other comprehensive gain (loss)
|
| | | | | | | | | | 138,637 | | |
|
Accumulated deficit
|
| | | | | | | | | | 58,257,483 | | |
|
Goodwill
|
| | | | 89,938,957 | | | | | | | | |
|
Professional Fees – M&A
|
| | | | 6,803,200 | | | | | | | | |
|
Cash
|
| | | | | | | | | | 8,864,348 | | |
|
Cash – M&A Costs
|
| | | | | | | | | | 6,602,900 | | |
|
Investments
|
| | | | | | | | | | 12,843,390 | | |
|
Common Stock
|
| | | | | | | | | | 95,787,177 | | |
|
Common Stock – M&A Fees
|
| | | | | | | | | | 200,400 | | |
|
Common stock
|
| | | | 82,000 | | | | | | | | |
|
Additional paid-in capital
|
| | | | 232,144,000 | | | | | | | | |
|
Accumulated deficit
|
| | | | | | | | | | 239,764,000 | | |
|
Goodwill
|
| | | | 7,538,000 | | | | | | | | |
|
Professional Fees – M&A
|
| | | | 3,000,000 | | | | | | | | |
|
Goodwill
|
| | | | 29,596,236 | | | | | | | | |
|
Common Stock
|
| | | | | | | | | | 29,596,236 | | |
|
Cash – M&A Costs
|
| | | | | | | | | | 3,000,000 | | |
|
Revenue
|
| | | | 1,778,000 | | | | | | | | |
|
Deferred revenue
|
| | | | 1,222,000 | | | | | | | | |
|
Accumulated depreciation and amortization expense
|
| | | | 37,292 | | | | | | | | |
|
Accounts receivable
|
| | | | | | | | | | 2,000,000 | | |
|
Capitalized software
|
| | | | | | | | | | 1,000,000 | | |
|
Amortization expense
|
| | | | | | | | | | 37,292 | | |
| | |
Historical
Pareteum |
| |
Artilium
|
| |
iPass
|
| |
Pro Forma
Adjustments [Note1] |
| |
Pro Forma
Condensed Combined |
| |||||||||||||||
Revenue
|
| | | $ | 13,547,507 | | | | | $ | 12,246,485 | | | | | $ | 54,401,000 | | | | | $ | — | | | | | $ | 80,194,992 | | |
Cost of revenue
|
| | | | 3,683,609 | | | | | | 2,943,919 | | | | | | 44,783,000 | | | | | | — | | | | | | 51,410,528 | | |
Gross profit
|
| | | | 9,863,898 | | | | | | 9,302,566 | | | | | | 9,618,000 | | | | | | — | | | | | | 28,784,464 | | |
Operating expenses
|
| | | | 18,651,084 | | | | | | 10,729,398 | | | | | | 29,680,000 | | | | | | 9,803,200 | | | | | | 68,863,682 | | |
Loss before other income/(expenses)
|
| | | | (8,787,186 ) | | | | | | (1,426,832 ) | | | | | | (20,062,000 ) | | | | | | (9,803,200 ) | | | | | | (40,079,218 ) | | |
Interest income/(expense)
|
| | | | (4,890,900 ) | | | | | | (243,605 ) | | | | | | 67,000 | | | | | | — | | | | | | (5,067,505 ) | | |
Changes in derivative liabilities
|
| | | | 794,691 | | | | | | — | | | | | | — | | | | | | — | | | | | | 794,691 | | |
Other income/(expense)
|
| | | | 705,140 | | | | | | — | | | | | | (366,000 ) | | | | | | — | | | | | | 339,140 | | |
Amortization of debt discount and
deferred financing costs |
| | | | (177,519 ) | | | | | | — | | | | | | — | | | | | | — | | | | | | (177,519 ) | | |
Net loss before income tax
|
| | | | (12,355,774 ) | | | | | | (1,670,437 ) | | | | | | (20,361,000 ) | | | | | | (9,803,200 ) | | | | | | (44,190,411 ) | | |
Provision/(benefit) for income
taxes |
| | | | 107,205 | | | | | | (301,008 ) | | | | | | 194,000 | | | | | | — | | | | | | 197 | | |
Net Loss
|
| | | | (12,462,979 ) | | | | | | (1,369,429 ) | | | | | | (20,555,000 ) | | | | | | (9,803,200 ) | | | | | | (44,190,608 ) | | |
Foreign currency translation gain/(loss)
|
| | | | (1,219,782 ) | | | | | | 810,157 | | | | | | — | | | | | | — | | | | | | (409,625 ) | | |
Change in fair value of available for
sale securities |
| | | | — | | | | | | 2,331,124 | | | | | | — | | | | | | — | | | | | | 2,331,124 | | |
Comprehensive Income/(Loss)
|
| | | $ | (13,682,761 ) | | | | | $ | 1,771,852 | | | | | $ | (20,555,000 ) | | | | | $ | (9,803,200 ) | | | | | $ | (42,269,109 ) | | |
Net (loss) per common share from continuing operations:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted
|
| | | $ | (0.76 ) | | | | | $ | (0.00 ) | | | | | $ | (0.31 ) | | | | | $ | (0.26 ) | | | | | $ | (0.10 ) | | |
Weight average common share outstanding:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted
|
| | | | 16,338,156 | | | | | | 316,418,000 | | | | | | 66,060,470 | | | | | | 37,852,076 | | | | | | 436,668,702 | | |
|
| | |
Historical
Pareteum |
| |
Artilium
|
| |
iPass
|
| |
Pro Forma
Adjustments [Note 2,3] |
| |
Pro Forma
Condensed Combined |
| |||||||||||||||
Revenue
|
| | | $ | 18,123,484 | | | | | $ | 18,028,012 | | | | | $ | 31,237,000 | | | | | | (1,778,000 ) | | | | | $ | 65,610,496 | | |
Cost of revenue
|
| | | | 5,103,088 | | | | | | 9,779,848 | | | | | | 22,960,000 | | | | | | — | | | | | | 37,842,936 | | |
Gross profit
|
| | | | 13,020,396 | | | | | | 8,248,164 | | | | | | 8,277,000 | | | | | | (1,778,000 ) | | | | | | 27,767,560 | | |
Operating expenses
|
| | | | 22,101,756 | | | | | | 15,199,587 | | | | | | 21,408,000 | | | | | | 9,765,908 | | | | | | 68,475,251 | | |
Loss before other income/(expenses)
|
| | | | (9,081,360 ) | | | | | | (6,951,423 ) | | | | | | (13,131,000 ) | | | | | | (11,544,008 ) | | | | | | (40,707,791 ) | | |
Interest expense
|
| | | | (314,193 ) | | | | | | (139,795 ) | | | | | | (608,000 ) | | | | | | — | | | | | | (1,061,988 ) | | |
Changes in derivative liabilities
|
| | | | 1,283,914 | | | | | | — | | | | | | (179,000 ) | | | | | | — | | | | | | 1,104,914 | | |
Other income (expense)
|
| | | | 672,706 | | | | | | 3,341,931 | | | | | | (80,000 ) | | | | | | (3,341,931 ) | | | | | | 592,706 | | |
Amortization of deferred financing
costs |
| | | | (21,108 ) | | | | | | — | | | | | | — | | | | | | — | | | | | | (21,108 ) | | |
Net loss before income tax
|
| | | | (7,460,041 ) | | | | | | (3,749,287 ) | | | | | | (13,998,000 ) | | | | | | (14,885,939 ) | | | | | | (40,093,267 ) | | |
Provision (benefit) for income
taxes |
| | | | 38,007 | | | | | | (321,285 ) | | | | | | 170,000 | | | | | | — | | | | | | (113,278 ) | | |
Net Loss
|
| | | | (7,498,048 ) | | | | | | (3,428,002 ) | | | | | | (14,168,000 ) | | | | | | (14,885,939 ) | | | | | | (39,979,989 ) | | |
Foreign currency translation gain (loss)
|
| | | | 3,686 | | | | | | — | | | | | | — | | | | | | — | | | | | | 3,686 | | |
Change in fair value of available for
sale securities |
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Comprehensive Loss
|
| | | $ | (7,494,362 ) | | | | | $ | (3,428,002 ) | | | | | $ | (14,168,000 ) | | | | | $ | (14,885,939 ) | | | | | $ | (39,976,303 ) | | |
Net (loss) per common share from continuing operations:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted
|
| | | $ | (0.14 ) | | | | | $ | (0.01 ) | | | | | $ | (1.90 ) | | | | | $ | (0.43 ) | | | | | $ | (0.09 ) | | |
Weight average common share outstanding:
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Basic and diluted
|
| | | | 54,275,784 | | | | | | 354,179,091 | | | | | | 7,458,098 | | | | | | 34,311,115 | | | | | | 450,224,088 | | |
|
|
Available for sale reserve
|
| | | | 3,341,931 | | | | | | | | |
|
Other income
|
| | | | | | | | | | 3,341,931 | | |
| | |
Pareteum
|
| |
iPass
|
| |
Synergies
(1)
|
| |
Pro Forma
Combined |
| ||||||||||||
Revenue
|
| | | $ | 52.0 | | | | | $ | 42.0 | | | | | | | | | | | $ | 94.0 | | |
COGS
|
| | | | (19.0 ) | | | | | | (30.0 ) | | | | | | 5.5 | | | | | | (43.5 ) | | |
Gross Profit
|
| | | | 33.0 | | | | | | 12.0 | | | | | | 5.5 | | | | | | 50.5 | | |
Operating Exp.
|
| | | | (33.9 ) | | | | | | (29.0 ) | | | | | | 13.5 | | | | | | (49.4 ) | | |
Non-Operating Exp.
|
| | | | (0.1 ) | | | | | | (1.5 ) | | | | | | 0.0 | | | | | | (1.5 ) | | |
Net Income
|
| | | $ | (1.0 ) | | | | | $ | (18.5 ) | | | | | $ | 19.0 | | | | | $ | (0.5 ) | | |
Adjusted EBITDA
|
| | | $ | 13.2 | | | | | $ | (14.0 ) | | | | | $ | 19.0 | | | | | $ | 18.2 | | |
|
| | |
2018
|
| |
Timing
|
| |||
Network Access Costs
|
| | | $ | 5.5 | | | |
Achieved by end of Q2 2019 ($4.0 million prior to close)
|
|
Payroll and Benefits
|
| | | | 8.0 | | | |
Achieved by end of Q3 2019 ($7.5 million prior to close)
|
|
Office Lease
|
| | | | 1.1 | | | | Fully achieved by end of 2019. | |
Insurance | | | | | 0.7 | | | | Fully achieved at close | |
Legal Costs
|
| | | | 2.0 | | | | Fully achieved at close | |
Public Company Expenses
|
| | | | 0.9 | | | | Fully achieved at close | |
Consulting Fees
|
| | | | 0.8 | | | | Fully achieved at close | |
Total | | | | $ | 19.0 | | | | | |
| | |
2018
|
| |
Timing
|
| |||
Network Access Costs
|
| | | $ | 5.5 | | | |
Achieved by end of Q2 2019 ($4.0 million prior to close)
|
|
Payroll and Benefits
|
| | | | 8.0 | | | |
Achieved by end of Q3 2019 ($7.5 million prior to close)
|
|
Office Lease
|
| | | | 1.1 | | | | Fully achieved by end of 2019. | |
Insurance | | | | | 0.7 | | | | Fully achieved at close | |
Legal Costs
|
| | | | 2.0 | | | | Fully achieved at close | |
Public Company Expenses
|
| | | | 0.9 | | | | Fully achieved at close | |
Consulting Fees
|
| | | | 0.8 | | | | Fully achieved at close | |
Total | | | | $ | 19.0 | | | | | |
|
IPASS INC.
|
| |
PARETEUM CORPORATION
|
|
|
Authorized Capital Stock
|
| |||
| The certificate of incorporation of iPass, as amended (the “certificate of incorporation”), authorizes iPass to issue a total of fifty million (50,000,000) shares of capital stock, divided into two classes: twenty five million (25,000,000) shares of common stock, par value $.001 per share, and twenty-five million (25,000,000) shares of preferred stock, par value $.001 per share. | | | The certificate of incorporation of Pareteum, as amended (the “certificate of incorporation”), authorizes Pareteum to issue 550,000,000 shares of its capital stock, divided into two classes: 500,000,000 shares of common stock, par value $0.00001 per share, and 50,000,000 shares of preferred stock, par value $0.00001 per share. | |
| iPass preferred stock may be issued from time to time in one or more series. | | | Pareteum preferred stock may be issued from time to time in one or more series. | |
| As of January 9, 2019, there were 8,431,625 shares of iPass common stock issued and outstanding and no shares of common stock held in treasury, and no shares of preferred stock issued or outstanding. | | | As of January 9, 2019, there were 97,852,911 shares of Pareteum common stock outstanding and no shares of common stock held in treasury, and no shares of preferred stock issued or outstanding. | |
|
Dividends
|
| |||
| iPass’s bylaws provide that dividends may be declared by iPass’s board of directors pursuant to law and its certificate of incorporation. Further, iPass’s credit agreement with Fortress prohibits iPass from paying cash dividends. | | | Pareteum’s bylaws provide that dividends may be declared by Pareteum’s board of directors pursuant to law and its certificate of incorporation at any regular or special meeting. | |
|
Liquidation Rights
|
| |||
| Pursuant to Section 281 of the DGCL, subject to any preferential rights of any then outstanding preferred stock, in the event of iPass’s liquidation, dissolution or winding up, holders of iPass’s common stock are entitled to share the funds and assets of iPass that may be legally distributed to its stockholders. | | | Pursuant to Section 281 of the DGCL, subject to any preferential rights of any then outstanding preferred stock, in the event of Pareteum’s liquidation, dissolution or winding up, holders of Pareteum’s common stock are entitled to the funds and assets of Pareteum that may be legally distributed to its stockholders. | |
|
IPASS INC.
|
| |
PARETEUM CORPORATION
|
|
|
Special Meetings of Stockholders
|
| |||
| iPass’s bylaws provide that special meetings of the stockholders may be called for any proper purposes for stockholder actions by i) the chairman of the board of directors, ii) the CEO, iii) the board of directors pursuant to a resolution adopted by a majority of the directors, or iv) if iPass is subject to Section 2115(b) of the California Corporations Code, stockholders holding five percent (5%) or more of the outstanding shares. | | | Pareteum’s bylaws provide that special meetings of the stockholders may be called for any proper purposes for stockholder actions under Delaware law by i) the chairman of the board of directors, ii) the CEO, or iii) the board of directors pursuant to a resolution adopted by a majority of the directors. | |
|
Stockholder Proposals and Nominations for Candidates for Election
|
| |||
| iPass’s bylaws provide that nominations for directors and the proposals of business to be considered by the stockholders may be made at a stockholder meeting i) pursuant to the notice of the stockholder meeting, ii) at the direction of the board of directors, or iii) by any stockholder of iPass who was a stockholder of record at the time of the stockholder notice who has given timely notice in accordance with the iPass bylaws. To be timely, a stockholder’s notice shall be delivered to the Secretary at the principal executive offices of iPass not later than the close of business on the ninetieth (90 th ) day nor earlier than the close of business on the one hundred twentieth (120 th ) day prior to the first anniversary of the preceding year’s annual meeting; provided, however, that in the event that the date of the annual meeting is advanced more than thirty (30) days prior to or delayed by more than thirty (30) days after the anniversary of the preceding year’s annual meeting, notice by the stockholder to be timely must be so delivered not earlier than the close of business on the one hundred twentieth (120 th ) day prior to such annual meeting and not later than the close of business on the later of the ninetieth (90 th ) day prior to such annual meeting or the tenth (10 th ) day following the day on which public announcement of the date of such meeting is first made.. | | | Pareteum’s bylaw provide that nominations for directors and the proposals of business to be considered by the stockholders may be made at a stockholder meeting i) pursuant to the notice of the stockholder meeting, ii) brought by the board of directors, or iii) by any stockholder of Pareteum who was a stockholder of record at the time of the stockholder notice. | |
|
Amendment of Certificate of Incorporation and Bylaws
|
| |||
| iPass’s certificate of incorporation provides that iPass reserves its right to amend or repeal the certificate of incorporation in a manner prescribed by the statutes of Delaware, except that the holders of at least 66- 2 ∕ 3 % of the voting power of all of the then outstanding shares of the voting stock, voting together as a single class, shall be required to alter, amend or repeal Articles V, VI and VII of the certificate of incorporation. iPass’s certificate of incorporation provides that the bylaws of iPass may be altered or amended by the affirmative vote of at least 66- 2 ∕ 3 % of the voting power of all of the then outstanding shares of the voting stock entitled to vote. | | | Pareteum’s certificate of incorporation provides that Pareteum reserves its right to amend or repeal the certificate of incorporation in a manner prescribed by the statutes of Delaware. Pareteum’s bylaws provide that the board of directors is expressly empowered to adopt, amend or repeal the bylaws of Pareteum pursuant to resolutions adopted by the majority of the board of directors. | |
|
Shareholder Rights Plan
|
| |||
| iPass does not currently have a shareholder rights plan in place. | | | Pareteum does not currently have a shareholder rights plan in place. | |
|
IPASS INC.
|
| |
PARETEUM CORPORATION
|
|
|
Business Combination Statute
|
| |||
| iPass has not opted out of Section 203 of the DGCL. For a summary of Section 203 of the DGCL, see “Description of Pareteum Capital Stock — Potential Anti-Takeover Effects of Various Provisions of Delaware Law and Pareteum’s Charter and Bylaws — Delaware Law.” | | | Pareteum has not opted out of Section 203 of the DGCL. For a summary of Section 203 of the DGCL, see “Description of Pareteum Capital Stock — Potential Anti-Takeover Effects of Various Provisions of Delaware Law and Pareteum’s Certificate of Incorporation and Bylaws — Delaware Law.” | |
|
Exclusive Forum
|
| |||
| iPass’s bylaws provide that, unless iPass consents in writing to the selection of an alternative forum, the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of iPass, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director or officer or other employee of iPass to iPass or iPass’s stockholders, (iii) any action asserting a claim against iPass or any director or officer or other employee of iPass arising pursuant to any provision of the DGCL or iPass’s certificate of incorporation or bylaws, or (iv) any action asserting a claim against iPass or any director or officer or other employee of iPass governed by the internal affairs doctrine, shall be a state court located within the State of Delaware (or, if no state court located within the State of Delaware has jurisdiction, the federal district court for the District of Delaware). Any person or entity purchasing or otherwise acquiring any interest in shares of capital stock of iPass shall be deemed to have notice of and to have consented to the provisions of this article of iPass’s bylaws. | | | None | |
| | |
September 30,
2018 |
| |
December 31,
2017 |
| ||||||
ASSETS | | | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 4,912 | | | | | $ | 5,159 | | |
Accounts receivable, net of allowance for doubtful accounts of $63 and $151,
respectively |
| | | | 7,944 | | | | | | 8,717 | | |
Prepaid expenses
|
| | | | 1,032 | | | | | | 1,641 | | |
Other current assets
|
| | | | 417 | | | | | | 712 | | |
Total current assets
|
| | | | 14,305 | | | | | | 16,229 | | |
Property and equipment, net
|
| | | | 1,009 | | | | | | 1,334 | | |
Other assets
|
| | | | 859 | | | | | | 840 | | |
Total assets
|
| | | $ | 16,173 | | | | | $ | 18,403 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT) | | | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 8,145 | | | | | $ | 9,044 | | |
Accrued liabilities
|
| | | | 3,708 | | | | | | 3,734 | | |
Deferred revenue, short-term
|
| | | | 3,541 | | | | | | 3,723 | | |
Total current liabilities
|
| | | | 15,394 | | | | | | 16,501 | | |
Debt, long-term
|
| | | | 7,098 | | | | | | — | | |
Deferred revenue, long-term
|
| | | | 25 | | | | | | 102 | | |
Other long-term liabilities
|
| | | | 1,194 | | | | | | 1,009 | | |
Total liabilities
|
| | | | 23,711 | | | | | | 17,612 | | |
Stockholders’ equity (deficit): | | | | | | | | | | | | | |
Common stock
|
| | | | 82 | | | | | | 71 | | |
Additional paid-in capital
|
| | | | 232,144 | | | | | | 226,490 | | |
Accumulated deficit
|
| | | | (239,764 ) | | | | | | (225,770 ) | | |
Total stockholders’ equity (deficit)
|
| | | | (7,538 ) | | | | | | 791 | | |
Total liabilities and stockholders’ equity (deficit)
|
| | | $ | 16,173 | | | | | $ | 18,403 | | |
|
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2018
|
| |
2017
|
| |
2018
|
| |
2017
|
| ||||||||||||
Revenue
|
| | | $ | 9,275 | | | | | $ | 13,399 | | | | | $ | 31,237 | | | | | $ | 41,159 | | |
Cost of revenue and operating expenses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Network access costs
|
| | | | 5,720 | | | | | | 10,312 | | | | | | 18,903 | | | | | | 29,469 | | |
Network operations
|
| | | | 1,294 | | | | | | 1,629 | | | | | | 4,057 | | | | | | 4,835 | | |
Research and development
|
| | | | 1,825 | | | | | | 1,948 | | | | | | 5,745 | | | | | | 6,059 | | |
Sales and marketing
|
| | | | 2,760 | | | | | | 2,520 | | | | | | 7,668 | | | | | | 7,588 | | |
General and administrative
|
| | | | 2,426 | | | | | | 3,427 | | | | | | 7,995 | | | | | | 8,746 | | |
Total cost of revenue and operating expenses
|
| | | | 14,025 | | | | | | 19,836 | | | | | | 44,368 | | | | | | 56,697 | | |
Operating loss
|
| | | | (4,750 ) | | | | | | (6,437 ) | | | | | | (13,131 ) | | | | | | (15,538 ) | | |
Other income (expense): | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income (expense), net
|
| | | | (572 ) | | | | | | 8 | | | | | | (608 ) | | | | | | 36 | | |
Foreign exchange loss
|
| | | | (87 ) | | | | | | (173 ) | | | | | | (80 ) | | | | | | (351 ) | | |
Change in fair value of derivative
|
| | | | (179 ) | | | | | | — | | | | | | (179 ) | | | | | | — | | |
Total other income (expense)
|
| | | | (838 ) | | | | | | (165 ) | | | | | | (867 ) | | | | | | (315 ) | | |
Loss before provision for income taxes
|
| | | | (5,588 ) | | | | | | (6,602 ) | | | | | | (13,998 ) | | | | | | (15,853 ) | | |
Provision for income taxes
|
| | | | 44 | | | | | | 56 | | | | | | 170 | | | | | | 389 | | |
Net loss
|
| | | $ | (5,632 ) | | | | | $ | (6,658 ) | | | | | $ | (14,168 ) | | | | | $ | (16,242 ) | | |
Comprehensive loss
|
| | | $ | (5,632 ) | | | | | $ | (6,658 ) | | | | | $ | (14,168 ) | | | | | $ | (16,242 ) | | |
Net loss per share – basic and diluted
(1)
|
| | | $ | (0.71 ) | | | | | $ | (1.01 ) | | | | | $ | (1.90 ) | | | | | $ | (2.47 ) | | |
Weighted average shares outstanding – basic and diluted
(1)
|
| | | | 7,927,663 | | | | | | 6,587,841 | | | | | | 7,458,098 | | | | | | 6,568,324 | | |
| | |
Nine Months Ended
September 30, |
| |||||||||
| | |
2018
|
| |
2017
|
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (14,168 ) | | | | | $ | (16,242 ) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Stock-based compensation expense
|
| | | | 969 | | | | | | 1,041 | | |
Depreciation and amortization
|
| | | | 502 | | | | | | 1,144 | | |
Provision for doubtful accounts
|
| | | | 30 | | | | | | 146 | | |
Amortization of debt discount
|
| | | | 254 | | | | | | — | | |
Change in fair value of derivative
|
| | | | 179 | | | | | | — | | |
Changes in operating assets and liabilities: | | | | | | | | | | | | | |
Accounts receivable
|
| | | | 743 | | | | | | 2,639 | | |
Prepaid expenses and other current assets
|
| | | | 1,059 | | | | | | (160 ) | | |
Other assets
|
| | | | 94 | | | | | | (20 ) | | |
Accounts payable
|
| | | | (899 ) | | | | | | 3,033 | | |
Accrued liabilities
|
| | | | (26 ) | | | | | | (362 ) | | |
Deferred revenue
|
| | | | (338 ) | | | | | | 343 | | |
Other liabilities
|
| | | | (679 ) | | | | | | (104 ) | | |
Net cash used in operating activities
|
| | | | (12,280 ) | | | | | | (8,542 ) | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | | | (192 ) | | | | | | (737 ) | | |
Net cash used in investing activities
|
| | | | (192 ) | | | | | | (737 ) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds from debt financing
|
| | | | 10,000 | | | | | | — | | |
Issuance cost of debt financing
|
| | | | (1,628 ) | | | | | | — | | |
Net proceeds from issuance of common stock
|
| | | | — | | | | | | 264 | | |
Proceeds from common stock purchase agreement
|
| | | | 3,891 | | | | | | — | | |
Issuance cost of common stock purchase agreement
|
| | | | (38 ) | | | | | | — | | |
Net cash provided by financing activities
|
| | | | 12,225 | | | | | | 264 | | |
Net decrease in cash and cash equivalents
|
| | | | (247 ) | | | | | | (9,015 ) | | |
Cash and cash equivalents at beginning of period
|
| | | | 5,159 | | | | | | 16,072 | | |
Cash and cash equivalents at end of period
|
| | | $ | 4,912 | | | | | $ | 7,057 | | |
Supplemental Cash Flow Disclosure: | | | | | | | | | | | | | |
Net cash paid for taxes
|
| | | $ | 130 | | | | | $ | 180 | | |
Net cash paid for interest
|
| | | $ | 385 | | | | | $ | 2 | | |
Supplemental Non-cash Disclosure: | | | | | | | | | | | | | |
Fair value of warrants issued in connection with debt financing
|
| | | $ | 843 | | | | | $ | — | | |
Fair value of derivative liability in connection with debt financing
|
| | | $ | 864 | | | | | $ | — | | |
| | |
As of September 30, 2018
|
| |
As of December 31, 2017
|
| ||||||||||||||||||||||||||||||||||||||||||
| | |
Fair Value
Measured Using |
| |
Total
Balance |
| |
Fair Value
Measured Using |
| |
Total
Balance |
| ||||||||||||||||||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||||||||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||||||||||||||||||||
Financial assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Money market funds
(1)
|
| | | $ | 4,622 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,622 | | | | | $ | 4,175 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,175 | | |
Total financial assets
|
| | | $ | 4,622 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,622 | | | | | $ | 4,175 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,175 | | |
Financial liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Derivative liability
(2)
|
| | | $ | — | | | | | $ | — | | | | | $ | 864 | | | | | $ | 864 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Total financial liabilities
|
| | | $ | — | | | | | $ | — | | | | | $ | 864 | | | | | $ | 864 | | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
|
| | |
Derivative
Liability |
| |||
Balance at December 31, 2017
|
| | | $ | — | | |
Initial fair value of derivative liability at June 30, 2018
|
| | | | 685 | | |
Change in fair value at September 30, 2018
|
| | | | 179 | | |
Balance at September 30, 2018
|
| | | $ | 864 | | |
|
| | |
September 30,
2018 |
| |
December 31,
2017 |
| ||||||
| | |
(In thousands)
|
| |||||||||
Equipment
|
| | | $ | 10,884 | | | | | $ | 10,698 | | |
Furniture and fixtures
|
| | | | 246 | | | | | | 246 | | |
Computer software
|
| | | | 10,727 | | | | | | 10,723 | | |
Construction in progress
|
| | | | — | | | | | | 36 | | |
Leasehold improvements
|
| | | | 483 | | | | | | 483 | | |
| | | | | 22,340 | | | | | | 22,186 | | |
Less: Accumulated depreciation and amortization
|
| | | | (21,331 ) | | | | | | (20,852 ) | | |
Property and equipment, net
|
| | | $ | 1,009 | | | | | $ | 1,334 | | |
|
| | |
September 30,
2018 |
| |
December 31,
2017 |
| ||||||
| | |
(In thousands)
|
| |||||||||
Deposits
|
| | | $ | 479 | | | | | $ | 503 | | |
Long-term deferred tax asset, net
|
| | | | 209 | | | | | | 209 | | |
Long-term tax receivable
|
| | | | 128 | | | | | | 128 | | |
Deferred commissions, long-term
|
| | | | 43 | | | | | | — | | |
| | | | $ | 859 | | | | | $ | 840 | | |
|
| | |
September 30,
2018 |
| |
December 31,
2017 |
| ||||||
| | |
(In thousands)
|
| |||||||||
Accrued tax liabilities
|
| | | $ | 862 | | | | | $ | 886 | | |
Accrued bonus, commissions and other employee benefits
|
| | | | 499 | | | | | | 522 | | |
Amounts due to customers
|
| | | | 820 | | | | | | 962 | | |
Legal fee accruals
|
| | | | 434 | | | | | | 492 | | |
Sales tax liability
|
| | | | 284 | | | | | | — | | |
Other accrued liabilities
|
| | | | 809 | | | | | | 872 | | |
| | | | $ | 3,708 | | | | | $ | 3,734 | | |
|
| | |
September 30,
2018 |
| |
December 31,
2017 |
| ||||||
| | |
(In thousands)
|
| |||||||||
Other long-term liabilities
|
| | | $ | 330 | | | | | $ | 1,009 | | |
Derivative liability
|
| | | | 864 | | | | | | — | | |
| | | | $ | 1,194 | | | | | $ | 1,009 | | |
|
Year ended December 31,
|
| |
(In thousands)
|
| |||
Remainder of 2018 (three months)
|
| | | $ | — | | |
2019
|
| | | | 333 | | |
2020
|
| | | | 4,000 | | |
2021
|
| | | | 4,000 | | |
2022
|
| | | | 2,167 | | |
Future principal payments
|
| | | $ | 10,500 | | |
|
Year
|
| |
Operating
Leases |
| |||
| | |
(In thousands)
|
| |||
Remainder of 2018 (three months)
|
| | | $ | 412 | | |
2019
|
| | | | 1,216 | | |
2020
|
| | | | 926 | | |
| | | | $ | 2,554 | | |
|
Year
|
| |
Minimum
Purchase Commitments |
| |||
| | |
(In thousands)
|
| |||
Remainder of 2018 (three months)
|
| | | $ | 3,291 | | |
2019
|
| | | | 1,672 | | |
| | | | $ | 4,963 | | |
|
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2018
|
| |
2017
|
| |
2018
|
| |
2017
|
| ||||||||||||
Options to purchase common stock
|
| | | | 937,690 | | | | | | 925,462 | | | | | | 930,853 | | | | | | 629,998 | | |
Warrants to purchase common stock
|
| | | | 278,493 | | | | | | — | | | | | | 278,493 | | | | | | — | | |
Restricted stock awards, including participating securities
|
| | | | 32,094 | | | | | | 20,250 | | | | | | 19,905 | | | | | | 21,583 | | |
Total
|
| | | | 1,248,277 | | | | | | 945,712 | | | | | | 1,229,251 | | | | | | 651,581 | | |
|
| | |
Three Months Ended
September 30, |
| |
Nine Months Ended
September 30, |
| ||||||||||||||||||
| | |
2018
|
| |
2017
|
| |
2018
|
| |
2017
|
| ||||||||||||
United States
|
| | | | 54 % | | | | | | 48 % | | | | | | 51 % | | | | | | 46 % | | |
Europe, Middle East and Africa
|
| | | | 38 % | | | | | | 44 % | | | | | | 41 % | | | | | | 44 % | | |
Asia Pacific
|
| | | | 4 % | | | | | | 4 % | | | | | | 4 % | | | | | | 6 % | | |
Rest of the World
|
| | | | 4 % | | | | | | 4 % | | | | | | 4 % | | | | | | 4 % | | |
| | |
As of December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
ASSETS
|
| | | | | | | | | | | | |
Current assets: | | | | | | | | | | | | | |
Cash and cash equivalents
|
| | | $ | 5,159 | | | | | $ | 16,072 | | |
Accounts receivable, net of allowance for doubtful accounts of $151 and $142, respectively
|
| | | | 8,717 | | | | | | 12,361 | | |
Prepaid expenses
|
| | | | 1,641 | | | | | | 1,344 | | |
Other current assets
|
| | | | 712 | | | | | | 225 | | |
Total current assets
|
| | | | 16,229 | | | | | | 30,002 | | |
Property and equipment, net
|
| | | | 1,334 | | | | | | 2,485 | | |
Other assets
|
| | | | 840 | | | | | | 688 | | |
Total assets
|
| | | $ | 18,403 | | | | | $ | 33,175 | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
| | | | | | | | | | | | |
Current liabilities: | | | | | | | | | | | | | |
Accounts payable
|
| | | $ | 9,044 | | | | | $ | 7,069 | | |
Accrued liabilities
|
| | | | 3,734 | | | | | | 3,874 | | |
Deferred revenue, short-term
|
| | | | 3,723 | | | | | | 2,412 | | |
Total current liabilities
|
| | | | 16,501 | | | | | | 13,355 | | |
Deferred revenue, long-term
|
| | | | 102 | | | | | | 67 | | |
Other long-term liabilities
|
| | | | 1,009 | | | | | | 1,123 | | |
Total liabilities
|
| | | | 17,612 | | | | | | 14,545 | | |
Commitments and contingencies (Note 11) | | | | | | | | | | | | | |
Stockholders’ equity: | | | | | | | | | | | | | |
Common stock, $0.001 par value (25,000,000 shares authorized; 6,925,028 and 6,577,661 shares issued and outstanding, respectively)
(1)
|
| | | | 71 | | | | | | 68 | | |
Additional paid-in capital
|
| | | | 226,490 | | | | | | 223,777 | | |
Accumulated deficit
|
| | | | (225,770 ) | | | | | | (205,215 ) | | |
Total stockholders’ equity
|
| | | | 791 | | | | | | 18,630 | | |
Total liabilities and stockholders’ equity
|
| | | $ | 18,403 | | | | | $ | 33,175 | | |
|
| | |
2017
|
| |
2016
|
| ||||||
Revenues
|
| | | $ | 54,401 | | | | | $ | 63,222 | | |
Cost of revenues and operating expenses: | | | | | | | | | | | | | |
Network access costs
|
| | | | 38,548 | | | | | | 33,150 | | |
Network operations
|
| | | | 6,235 | | | | | | 7,411 | | |
Research and development
|
| | | | 7,953 | | | | | | 7,276 | | |
Sales and marketing
|
| | | | 10,245 | | | | | | 11,154 | | |
General and administrative
|
| | | | 11,482 | | | | | | 10,792 | | |
Restructuring charges and related adjustments
|
| | | | — | | | | | | 788 | | |
Total cost of revenues and operating expenses
|
| | | | 74,463 | | | | | | 70,571 | | |
Operating loss
|
| | | | (20,062 ) | | | | | | (7,349 ) | | |
Interest income, net
|
| | | | 67 | | | | | | 36 | | |
Foreign exchange losses
|
| | | | (378 ) | | | | | | (234 ) | | |
Other income (expenses), net
|
| | | | 12 | | | | | | — | | |
Loss from operations before income taxes
|
| | | | (20,361 ) | | | | | | (7,547 ) | | |
Provision for income taxes
|
| | | | 194 | | | | | | 223 | | |
Net loss
|
| | | $ | (20,555 ) | | | | | $ | (7,770 ) | | |
Comprehensive loss
|
| | | $ | (20,555 ) | | | | | $ | (7,770 ) | | |
Net loss per share – basic and diluted
(1)
|
| | | $ | (3.10 ) | | | | | $ | (1.20 ) | | |
Weighted average shares outstanding – basic and diluted
(1)
|
| | | | 6,606,047 | | | | | | 6,434,494 | | |
| | |
Common Stock
|
| |
Additional
Paid-In Capital |
| |
Accumulated
Comprehensive Income (Loss) |
| |
Accumulated
Deficit |
| |
Total
Stockholders’ Equity |
| |||||||||||||||||||||
| | |
Shares
(1)
|
| |
Amount
|
| ||||||||||||||||||||||||||||||
Balances, December 31, 2015
|
| | | | 6,338 | | | | | $ | 65 | | | | | $ | 219,981 | | | | | $ | — | | | | | $ | (197,445 ) | | | | | $ | 22,601 | | |
Exercise of stock options – common stock issued
|
| | | | 265 | | | | | | 3 | | | | | | 3,000 | | | | | | — | | | | | | — | | | | | | 3,003 | | |
Restricted stock granted
|
| | | | 6 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Restricted stock canceled
|
| | | | (3 ) | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Employee stock purchase plan – common stock issued
|
| | | | 5 | | | | | | — | | | | | | 37 | | | | | | — | | | | | | — | | | | | | 37 | | |
Repurchased common stock
|
| | | | (34 ) | | | | | | — | | | | | | (345 ) | | | | | | — | | | | | | — | | | | | | (345 ) | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | 1,104 | | | | | | — | | | | | | — | | | | | | 1,104 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (7,770 ) | | | | | | (7,770 ) | | |
Balances, December 31, 2016
|
| | | | 6,577 | | | | | $ | 68 | | | | | $ | 223,777 | | | | | $ | — | | | | | $ | (205,215 ) | | | | | $ | 18,630 | | |
Exercise of stock options – common stock issued
|
| | | | 18 | | | | | | | | | | | | 181 | | | | | | — | | | | | | — | | | | | | 181 | | |
Restricted stock granted
|
| | | | 5 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
Employee stock purchase plan – common stock issued
|
| | | | 14 | | | | | | — | | | | | | 115 | | | | | | — | | | | | | — | | | | | | 115 | | |
Proceeds from common stock
purchase agreement, net issuance cost of $138 |
| | | | 311 | | | | | | 3 | | | | | | 1,063 | | | | | | | | | | | | | | | | | | 1,066 | | |
Stock-based compensation
|
| | | | — | | | | | | — | | | | | | 1,354 | | | | | | — | | | | | | — | | | | | | 1,354 | | |
Net loss
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (20,555 ) | | | | | | (20,555 ) | | |
Balances, December 31, 2017
|
| | | | 6,925 | | | | | $ | 71 | | | | | $ | 226,490 | | | | | $ | — | | | | | $ | (225,770 ) | | | | | $ | 791 | | |
|
| | |
2017
|
| |
2016
|
| ||||||
Cash flows from operating activities: | | | | | | | | | | | | | |
Net loss
|
| | | $ | (20,555 ) | | | | | $ | (7,770 ) | | |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | | | | | | |
Stock-based compensation expense
|
| | | | 1,354 | | | | | | 1,104 | | |
Depreciation and amortization
|
| | | | 1,591 | | | | | | 2,469 | | |
Deferred income taxes
|
| | | | — | | | | | | — | | |
Loss on disposal of property and equipment
|
| | | | — | | | | | | — | | |
Provision for doubtful accounts
|
| | | | 210 | | | | | | 11 | | |
Changes in operating assets and liabilities:
|
| | | | | | | | | | | | |
Accounts receivable
|
| | | | 3,434 | | | | | | (2,626 ) | | |
Prepaid expenses and other current assets
|
| | | | (784 ) | | | | | | 1,535 | | |
Other assets
|
| | | | (152 ) | | | | | | 2 | | |
Accounts payable
|
| | | | 2,348 | | | | | | 414 | | |
Accrued liabilities
|
| | | | (224 ) | | | | | | (628 ) | | |
Deferred revenue
|
| | | | 1,346 | | | | | | (73 ) | | |
Other liabilities
|
| | | | (114 ) | | | | | | 80 | | |
Net cash used in operating activities
|
| | | | (11,546 ) | | | | | | (5,482 ) | | |
Cash flows from investing activities: | | | | | | | | | | | | | |
Purchases of property and equipment
|
| | | | (813 ) | | | | | | (581 ) | | |
Change in restricted cash
|
| | | | — | | | | | | — | | |
Net cash used in investing activities
|
| | | | (813 ) | | | | | | (581 ) | | |
Cash flows from financing activities: | | | | | | | | | | | | | |
Proceeds from common stock purchase agreement
|
| | | | 1,204 | | | | | | — | | |
Issuance cost of common stock purchase agreement
|
| | | | (54 ) | | | | | | — | | |
Net proceeds from issuance of common stock and disgorgement of profit
|
| | | | 296 | | | | | | 3,040 | | |
Principal payments for vendor financed property and equipment
|
| | | | — | | | | | | (854 ) | | |
Stock repurchase
|
| | | | — | | | | | | (345 ) | | |
Net cash provided by financing activities
|
| | | | 1,446 | | | | | | 1,841 | | |
Net decrease in cash and cash equivalents
|
| | | | (10,913 ) | | | | | | (4,222 ) | | |
Cash and cash equivalents at beginning of year
|
| | | | 16,072 | | | | | | 20,294 | | |
Cash and cash equivalents at end of year
|
| | | $ | 5,159 | | | | | $ | 16,072 | | |
Supplemental disclosures of cash flow information: | | | | | | | | | | | | | |
Net cash paid for taxes
|
| | | $ | 235 | | | | | $ | 242 | | |
Accrued amounts for acquisition of property and equipment
|
| | | | — | | | | | | 373 | | |
Accrued issuance cost of common stock purchase agreement
|
| | | | 84 | | | | | | — | | |
Value of commitment shares issued with the common stock purchase agreement
|
| | | | 450 | | | | | | — | | |
| | |
As of December 31, 2017
|
| |
As of December 31, 2016
|
| ||||||||||||||||||||||||||||||||||||||||||
| | |
Fair Value
Measured Using |
| |
Total
Balance |
| |
Fair Value
Measured Using |
| |
Total
Balance |
| ||||||||||||||||||||||||||||||||||||
| | |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| ||||||||||||||||||||||||||||||
| | |
(In thousands)
|
| |||||||||||||||||||||||||||||||||||||||||||||
Financial assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Money market funds
(1)
|
| | | $ | 4,175 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,175 | | | | | $ | 14,083 | | | | | $ | — | | | | | $ | — | | | | | $ | 14,083 | | |
Total financial assets
|
| | | $ | 4,175 | | | | | $ | — | | | | | $ | — | | | | | $ | 4,175 | | | | | $ | 14,083 | | | | | $ | — | | | | | $ | — | | | | | $ | 14,083 | | |
|
| | |
As of December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Equipment
|
| | | $ | 10,698 | | | | | $ | 10,492 | | |
Furniture and fixtures
|
| | | | 246 | | | | | | 378 | | |
Computer software
|
| | | | 10,723 | | | | | | 10,431 | | |
Construction in progress
|
| | | | 36 | | | | | | 303 | | |
Leasehold improvements
|
| | | | 483 | | | | | | 536 | | |
| | | | | 22,186 | | | | | | 22,140 | | |
Less: Accumulated depreciation and amortization
|
| | | | (20,852 ) | | | | | | (19,655 ) | | |
Property and equipment, net
|
| | | $ | 1,334 | | | | | $ | 2,485 | | |
|
| | |
As of December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Deposits
|
| | | $ | 503 | | | | | $ | 480 | | |
Long-term deferred tax asset, net
|
| | | | 209 | | | | | | 208 | | |
Long-term tax receivable
|
| | | | 128 | | | | | | — | | |
| | | | $ | 840 | | | | | $ | 688 | | |
|
| | |
As of December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Tax liabilities
|
| | | $ | 886 | | | | | $ | 927 | | |
Accrued bonus, commissions and other employee benefits
|
| | | | 522 | | | | | | 808 | | |
Accrued property and equipment
|
| | | | — | | | | | | 373 | | |
Amounts due to customers
|
| | | | 962 | | | | | | 869 | | |
Legal fee accruals
|
| | | | 492 | | | | | | 34 | | |
Other accrued liabilities
|
| | | | 872 | | | | | | 863 | | |
| | | | $ | 3,734 | | | | | $ | 3,874 | | |
|
| | |
As of December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Beginning balance
|
| | | $ | — | | | | | $ | 250 | | |
Restructuring charges and related adjustments
|
| | | | — | | | | | | 788 | | |
Payments and adjustments
|
| | | | — | | | | | | (1,038 ) | | |
Ending balance
|
| | | $ | — | | | | | $ | — | | |
|
| | |
Year Ended December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands)
|
| |||||||||
U.S source loss
|
| | | $ | (21,336 ) | | | | | $ | (8,167 ) | | |
Foreign source income
|
| | | | 975 | | | | | | 620 | | |
Loss before income taxes
|
| | | $ | (20,361 ) | | | | | $ | (7,547 ) | | |
|
| | |
Year Ended December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Current: | | | | | | | | | | | | | |
U.S. federal
|
| | | $ | (238 ) | | | | | $ | — | | |
State
|
| | | | 7 | | | | | | 9 | | |
Foreign
|
| | | | 426 | | | | | | 200 | | |
| | | | $ | 195 | | | | | $ | 209 | | |
Deferred: | | | | | | | | | | | | | |
U.S. federal
|
| | | | — | | | | | | — | | |
State
|
| | | | — | | | | | | — | | |
Foreign
|
| | | | (1 ) | | | | | | 14 | | |
| | | | | (1 ) | | | | | | 14 | | |
Provision for income taxes
|
| | | $ | 194 | | | | | $ | 223 | | |
|
| | |
Year Ended December 31,
|
||||||||
| | |
2017
|
| |
2016
|
|||||
| | |
(In thousands)
|
||||||||
Deferred tax assets: | | | | | | | | | | | |
Net operating loss carry forwards
|
| | | $ | 25,309 | | | | | $ | 30,243 |
Reserves and accruals
|
| | | | 1,392 | | | | | | 1,507 |
Research and other tax credits
|
| | | | 7,099 | | | | | | 6,255 |
Share based compensation
|
| | | | 1,687 | | | | | | 2,456 |
Property and equipment
|
| | | | 1,336 | | | | | | 2,493 |
Total deferred tax assets
|
| | | $ | 36,823 | | | | | $ | 42,954 |
Valuation allowance
|
| | | | (36,177 ) | | | | | | (41,788 ) |
Net deferred tax assets
|
| | | | 646 | | | | | | 1,166 |
Deferred tax liabilities: | | | | | | | | | | | |
Property and equipment
|
| | | | (437 ) | | | | | | (958 ) |
Total net deferred tax assets
|
| | | $ | 209 | | | | | $ | 208 |
|
| | |
Year Ended December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Federal statutory rate
|
| | | | (35 )% | | | | | | (35 )% | | |
State taxes, net of federal benefit
|
| | | | (1 ) | | | | | | (1 ) | | |
Amortization of stock-based compensation
|
| | | | 1 | | | | | | 6 | | |
Research and development benefit
|
| | | | (2 ) | | | | | | (2 ) | | |
Deemed repatriated foreign earnings
|
| | | | 1 | | | | | | 1 | | |
Tax Cuts and Jobs Act of 2017
|
| | | | 4 | | | | | | — | | |
Other
|
| | | | — | | | | | | 1 | | |
Rate differential impact on Tax Cuts and Jobs Act
|
| | | | 74 | | | | | | — | | |
Valuation allowance
|
| | | | (41 ) | | | | | | 33 | | |
Provision for income taxes
|
| | | | 1 % | | | | | | 3 % | | |
|
|
Balance at December 31, 2015
|
| | | $ | 7,446 | | |
|
Increases for positions taken in prior years
|
| | | | — | | |
|
Increases for positions related to the current year
|
| | | | 149 | | |
|
Decreases for positions taken in prior years
|
| | | | (1,359 ) | | |
|
Decreases for statutes lapsing
|
| | | | (21 ) | | |
|
FX impact
|
| | | | (7 ) | | |
|
Balance at December 31, 2016
|
| | | | 6,208 | | |
|
Increases for positions taken in prior years
|
| | | | — | | |
|
Increases for positions related to the current year
|
| | | | 170 | | |
|
Decreases for positions taken in prior years
|
| | | | (608 ) | | |
|
Decreases for statutes lapsing
|
| | | | (23 ) | | |
|
FX impact
|
| | | | 18 | | |
|
Balance at December 31, 2017
|
| | | $ | 5,765 | | |
|
| | |
Shares
Available for Future Grant |
| |
Number of
Options Outstanding |
| |
Weighted
Average Exercise Price per Share |
| |
Weighted
Average Grant Date Fair Value per Share |
| |
Number of
Restricted Stock Awards and Units Outstanding |
| |
Weighted
Average Grant Date Fair Value per Share |
| ||||||||||||||||||
Balance at December 31, 2015
|
| | | | 2,748,353 | | | | | | 911,794 | | | | | $ | 12.9 | | | | | | | | | | | | 147,916 | | | | | $ | 9.8 | | |
Authorized
|
| | | | 322,922 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Granted
|
| | | | (419,700 ) | | | | | | 413,700 | | | | | $ | 12.4 | | | | | $ | 6.2 | | | | | | 6,000 | | | | | $ | 12.1 | | |
Options Exercised
|
| | | | | | | | | | (265,001 ) | | | | | $ | 11.3 | | | | | | | | | | | | | | | | | | | | |
Restricted Stock Vested
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | (9,333 ) | | | | | $ | 10.8 | | |
Terminated/canceled/forfeited
|
| | | | 255,465 | | | | | | (192,465 ) | | | | | $ | 19.1 | | | | | | | | | | | | (63,000 ) | | | | | $ | 9.2 | | |
Reduce Evergreen Shares
(1)
|
| | | | (1,500,000 ) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance at December 31, 2016
|
| | | | 1,407,040 | | | | | | 868,028 | | | | | $ | 11.8 | | | | | | | | | | | | 81,583 | | | | | $ | 10.3 | | |
Authorized
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Granted
|
| | | | (169,600 ) | | | | | | 164,600 | | | | | $ | 12.2 | | | | | $ | 6.3 | | | | | | 5,000 | | | | | $ | 14.0 | | |
Options Exercised
|
| | | | | | | | | | (17,592 ) | | | | | $ | 10.3 | | | | | | | | | | | | | | | | | | | | |
Restricted Stock Vested
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | (6,666 ) | | | | | $ | 12.0 | | |
Terminated/cancelled/forfeited
|
| | | | 167,587 | | | | | | (107,587 ) | | | | | $ | 14.3 | | | | | | | | | | | | (60,000 ) | | | | | | 9.0 | | |
Balance at December 31, 2017
|
| | | | 1,405,027 | | | | | | 907,449 | | | | | $ | 11.6 | | | | | | | | | | | | 19,919 | | | | | $ | 10.4 | | |
|
| | |
Options Outstanding
|
| |
Options Exercisable
|
| ||||||||||||||||||||||||
Range of Exercise Prices
|
| |
Number
Outstanding |
| |
Weighted-
Average Remaining Contractual Life (in Years) |
| |
Weighted-
Average Exercise Price per Share |
| |
Number
Exercisable |
| |
Weighted-
Average Exercise Price per Share |
| |||||||||||||||
$6.2 – $9.4
|
| | | | 313,588 | | | | | | 7.47 | | | | | $ | 8.8 | | | | | | 187,570 | | | | | $ | 9.0 | | |
9.5 – 11.8
|
| | | | 305,329 | | | | | | 7.62 | | | | | | 11.4 | | | | | | 164,315 | | | | | | 11.2 | | |
11.9 – 24.8
|
| | | | 288,531 | | | | | | 8.13 | | | | | | 15.0 | | | | | | 109,959 | | | | | | 16.4 | | |
Total
|
| | | | 907,448 | | | | | | 7.73 | | | | | | 11.6 | | | | | | 461,844 | | | | | | 11.5 | | |
|
| | |
Shares
|
| |
Weighted
Average Exercise Price per Share |
| |
Weighted
Average Remaining Contractual Term (Years) |
| |
Aggregate
Intrinsic Value |
| ||||||||||||
| | | | | | | | | | | | | | | | | | | | |
(In thousands)
|
| |||
Options outstanding at December 31, 2017
|
| | | | 907,449 | | | | | $ | 11.6 | | | | | | 7.73 | | | | | $ | — | | |
Options vested and expected to vest at December 31, 2017
|
| | | | 852,119 | | | | | $ | 11.6 | | | | | | 7.73 | | | | | $ | — | | |
Options exercisable at December 31, 2017
|
| | | | 461,845 | | | | | $ | 11.5 | | | | | | 7.02 | | | | | $ | — | | |
| | |
Year Ended December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Network operations
|
| | | $ | 53 | | | | | $ | 33 | | |
Research and development
|
| | | | 183 | | | | | | 131 | | |
Sales and marketing
|
| | | | 212 | | | | | | 153 | | |
General and administrative
|
| | | | 906 | | | | | | 787 | | |
Total
|
| | | $ | 1,354 | | | | | $ | 1,104 | | |
|
| | |
Year Ended December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands)
|
| |||||||||
Stock options
|
| | | $ | 1,169 | | | | | $ | 906 | | |
Restricted stock
|
| | | | 122 | | | | | | 136 | | |
Employee stock purchase plan
|
| | | | 63 | | | | | | 62 | | |
Total
|
| | | $ | 1,354 | | | | | $ | 1,104 | | |
|
| | |
Year Ended December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Risk-free rate
|
| | | | 1.97 % | | | | | | 1.45 % | | |
Expected dividend yield
|
| | | | — % | | | | | | — % | | |
Expected volatility
|
| | | | 56 % | | | | | | 55 % | | |
Expected term
|
| |
5.7 years
|
| |
5.8 years
|
|
| | |
Year Ended December 31,
|
| |||
| | |
2017
|
| |
2016
|
|
Risk-free rate
|
| |
1.38%
|
| |
0.58%
|
|
Expected dividend yield
|
| |
—%
|
| |
—%
|
|
Expected volatility
|
| |
92%
|
| |
44%
|
|
Expected term
|
| |
0.5 to 1 year
|
| |
0.5 to 1 year
|
|
Year ending December 31:
|
| |
Operating
Leases |
| |||
| | |
(In thousands)
|
| |||
2018
|
| | | $ | 1,346 | | |
2019
|
| | | | 1,190 | | |
2020
|
| | | | 926 | | |
| | | | $ | 3,462 | | |
|
Year ending December 31:
|
| |
Minimum
Purchase Commitments |
| |||
| | |
(In thousands)
|
| |||
2018
|
| | | $ | 11,542 | | |
2019
|
| | | | 636 | | |
| | | | $ | 12,178 | | |
|
| | |
Year Ended December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
| | |
(In thousands, except per share amounts)
|
| |||||||||
Net loss
|
| | | $ | (20,555 ) | | | | | $ | (7,770 ) | | |
Weighted average shares outstanding – basic and diluted
|
| | | | 6,606,047 | | | | | | 6,434,494 | | |
Net loss per share
|
| | | $ | (3.10 ) | | | | | $ | (1.20 ) | | |
|
| | |
Year Ended December 31,
|
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
Options to purchase common stock
|
| | | | 892,834 | | | | | | 534,091 | | |
Restricted stock awards, including participating securities
|
| | | | 19,916 | | | | | | 26,583 | | |
Total
|
| | | | 912,751 | | | | | | 560,674 | | |
|
| | |
For the Year Ended
December 31, |
| |||||||||
| | |
2017
|
| |
2016
|
| ||||||
United States
|
| | | | 47 % | | | | | | 41 % | | |
Europe, Middle East and Africa
|
| | | | 45 % | | | | | | 49 % | | |
Asia Pacific
|
| | | | 5 % | | | | | | 9 % | | |
Rest of the world
|
| | | | 3 % | | | | | | 1 % | | |
| | |
Page
|
| |||
| | | | A-5 | | | |
| | | | A-5 | | | |
| | | | A-13 | | | |
| | | | A-13 | | | |
| | | | A-13 | | | |
| | | | A-15 | | | |
| | | | A-16 | | | |
| | | | A-16 | | | |
| | | | A-17 | | | |
| | | | A-17 | | | |
| | | | A-17 | | | |
| | | | A-17 | | | |
| | | | A-17 | | | |
| | | | A-17 | | | |
| | | | A-17 | | | |
| | | | A-18 | | | |
| | | | A-19 | | | |
| | | | A-20 | | | |
| | | | A-20 | | | |
| | | | A-21 | | | |
| | | | A-21 | | | |
| | | | A-21 | | | |
| | | | A-23 | | | |
| | | | A-23 | | | |
| | | | A-23 | | | |
| | | | A-25 | | | |
| | | | A-25 | | | |
| | | | A-25 | | | |
| | | | A-27 | | | |
| | | | A-29 | | | |
| | | | A-29 | | | |
| | | | A-29 | | | |
| | | | A-31 | | | |
| | | | A-32 | | | |
| | | | A-33 | | | |
| | | | A-33 | | | |
| | | | A-34 | | |
| | |
Page
|
| |||
| | | | A-34 | | | |
| | | | A-34 | | | |
| | | | A-34 | | | |
| | | | A-34 | | | |
| | | | A-34 | | | |
| | | | A-35 | | | |
| | | | A-35 | | | |
| | | | A-35 | | | |
| | | | A-35 | | | |
| | | | A-35 | | | |
| | | | A-36 | | | |
| | | | A-36 | | | |
| | | | A-36 | | | |
| | | | A-37 | | | |
| | | | A-37 | | | |
| | | | A-38 | | | |
| | | | A-38 | | | |
| | | | A-38 | | | |
| | | | A-38 | | | |
| | | | A-38 | | | |
| | | | A-38 | | | |
| | | | A-38 | | | |
| | | | A-39 | | | |
| | | | A-39 | | | |
| | | | A-39 | | | |
| | | | A-41 | | | |
| | | | A-42 | | | |
| | | | A-44 | | | |
| | | | A-45 | | | |
| | | | A-46 | | | |
| | | | A-47 | | | |
| | | | A-47 | | | |
| | | | A-48 | | | |
| | | | A-48 | | | |
| | | | A-48 | | | |
| | | | A-49 | | |
| | |
Page
|
| |||
| | | | A-49 | | | |
| | | | A-49 | | | |
| | | | A-49 | | | |
| | | | A-49 | | | |
| | | | A-51 | | | |
| | | | A-52 | | | |
| | | | A-52 | | | |
| | | | A-52 | | | |
| | | | A-52 | | | |
| | | | A-53 | | | |
| | | | A-53 | | | |
| | | | A-53 | | | |
| | | | A-53 | | | |
| | | | A-53 | | | |
| | | | A-54 | | | |
| | | | A-54 | | | |
| | | | A-54 | | | |
| | | | A-54 | | | |
| | | | A-54 | | | |
| | | | A-54 | | | |
| | | | A-54 | | | |
| | | | A-55 | | |
Term
|
| |
Section
|
| |||
Action
|
| | | | 1.1 | | |
Acquisition Proposal
|
| | | | 1.1 | | |
Acceptance Time
|
| | | | 2.1(f ) | | |
Additional Offer Period
|
| | | | 2.1(d ) | | |
Affiliate
|
| | | | 1.1 | | |
Agreement
|
| | | | Preamble | | |
Benefit Plans
|
| | | | 1.1 | | |
Board Recommendation
|
| | | | 5.22 | | |
Book Entry Shares
|
| | | | 1.1 | | |
Business Day
|
| | | | 1.1 | | |
Certificate of Merger
|
| | | | 3.2 | | |
Certificates
|
| | | | 4.1(c ) | | |
Change of Recommendation
|
| | | | 7.3(d ) | | |
Cleanup
|
| | | | 1.1 | | |
Closing
|
| | | | 3.3 | | |
Closing Date
|
| | | | 3.3 | | |
Code
|
| | | | 1.1 | | |
Company
|
| | | | Preamble | | |
Company Arrangements
|
| | | | 5.9(h ) | | |
Company Balance Sheet
|
| | | | 5.6 | | |
Company Balance Sheet Date
|
| | | | 1.1 | | |
Company Common Stock
|
| | | | 1.1 | | |
Company Compensation Committee
|
| | | | 5.9(h ) | | |
Company Disclosure Schedule
|
| | | | 1.1 | | |
Company Equity Plans
|
| | | | 1.1 | | |
Company Financial Advisor
|
| | | | 5.23 | | |
Company Financial Statements
|
| | | | 5.5(b ) | | |
Company License-In Agreements
|
| | | | 5.12(b ) | | |
Company License-Out Agreements
|
| | | | 5.12(c ) | | |
Company Material Adverse Effect
|
| | | | 1.1 | | |
Company Measurement Price
|
| | | | 1.1 | | |
Company Performance Restricted Stock Award
|
| | | | 1.1 | | |
Company Products
|
| | | | 1.1 | | |
Company Real Property
|
| | | | 5.14(a ) | | |
Company Related Party
|
| | | | 1.1 | | |
Company Restricted Stock Award
|
| | | | 1.1 | | |
Company SEC Reports
|
| | | | 5.5(a ) | | |
Company Stock Option
|
| | | | 1.1 | | |
Company Warrants
|
| | | | 1.1 | | |
Confidentiality Agreement
|
| | | | 1.1 | | |
Consideration Fund
|
| | | | 4.2(a ) | | |
Contract
|
| | | | 1.1 | | |
Converted PRSU
|
| | | | 4.3(d ) | | |
Converted RSUs
|
| | | | 4.3(b ) | | |
Term
|
| |
Section
|
| |||
Covered Securityholders
|
| | | | 5.9(h ) | | |
D&O Indemnitee
|
| | | | 7.6(a ) | | |
D&O Insurance
|
| | | | 7.6(b ) | | |
DGCL
|
| | | | 1.1 | | |
Disclosure Document
|
| | | | 1.1 | | |
Effective Time
|
| | | | 3.2 | | |
Employees
|
| | | | 7.4(a ) | | |
Environmental Claim
|
| | | | 1.1 | | |
Environmental Laws
|
| | | | 1.1 | | |
ERISA
|
| | | | 1.1 | | |
ERISA Affiliate
|
| | | | 1.1 | | |
ESPP
|
| | | | 1.1 | | |
Exchange Act
|
| | | | 1.1 | | |
Exchange Agent
|
| | | | 4.2(a ) | | |
Exchange Ratio
|
| | | | Recitals | | |
Expiration Date
|
| | | | 2.1(c ) | | |
FCPA
|
| | | | 1.1 | | |
Financing Cooperation Indemnity
|
| | | | 7.13(b ) | | |
Financing Indemnitees
|
| | | | 7.13(b ) | | |
Financing Sources
|
| | | | 1.1 | | |
Foreign Benefit Plan
|
| | | | 1.1 | | |
GAAP
|
| | | | 5.5(b ) | | |
Governmental Entity
|
| | | | 5.4 | | |
Hazardous Materials
|
| | | | 1.1 | | |
Indemnified Parties
|
| | | | 7.6(a ) | | |
Intellectual Property
|
| | | | 1.1 | | |
Intervening Event
|
| | | | 1.1 | | |
IRS
|
| | | | 1.1 | | |
Knowing and Intentional Breach
|
| | | | 1.1 | | |
Knowledge
|
| | | | 1.1 | | |
Law
|
| | | | 1.1 | | |
Lien
|
| | | | 1.1 | | |
Mandated Benefit Plan
|
| | | | 1.1 | | |
Material Contract
|
| | | | 5.8(a ) | | |
Maximum Amount
|
| | | | 7.6(b ) | | |
Merger
|
| | | | Recitals | | |
Merger Consideration
|
| | | | 4.1(c ) | | |
Minimum Condition
|
| | | | 2.1(b ) | | |
Nasdaq
|
| | | | 1.1 | | |
Nasdaq Rules
|
| | | | 1.1 | | |
New Exercise Date
|
| | | | 7.8 | | |
OFAC
|
| | | | 1.1 | | |
Offer
|
| | | | Recitals | | |
Offer Documents
|
| | | | 2.1(g ) | | |
Offering Period
|
| | | | 7.8 | | |
Owned Intellectual Property
|
| | | | 5.12(a ) | | |
Term
|
| |
Section
|
| |||
Parent
|
| | | | Preamble | | |
Parent Common Stock
|
| | | | 1.1 | | |
Parent Material Adverse Effect
|
| | | | 1.1 | | |
Parent Plans
|
| | | | 7.4(a ) | | |
Parent SEC Reports
|
| | | | 1.1 | | |
Parent Stock Exchange
|
| | | | 1.1 | | |
Parent Stock Option
|
| | | | 1.1 | | |
Parent Warrant
|
| | | | 1.1 | | |
Partnership
|
| | | | 1.1 | | |
Permits
|
| | | | 5.17 | | |
Permitted Liens
|
| | | | 1.1 | | |
Person
|
| | | | 1.1 | | |
Per Share Amount
|
| | | | Recitals | | |
Preliminary Prospectus
|
| | | | 2.1(g ) | | |
Prime Rate
|
| | | | 1.1 | | |
Principal Market
|
| | | | 1.1 | | |
Qualifying Transaction
|
| | | | 1.1 | | |
Real Property Lease
|
| | | | 5.14(a ) | | |
Registration Statement
|
| | | | 2.1(g ) | | |
Representatives
|
| | | | 7.2 | | |
Sarbanes-Oxley Act
|
| | | | 5.5(d ) | | |
SEC
|
| | | | 1.1 | | |
Securities Act
|
| | | | 1.1 | | |
Service Provider
|
| | | | 1.1 | | |
Schedule 14D-9
|
| | | | 2.2(b ) | | |
Significant Customer
|
| | | | 5.19(a ) | | |
Significant Supplier
|
| | | | 5.19(b ) | | |
Specified Contracts
|
| | | | 5.8(d ) | | |
Sub
|
| | | | Preamble | | |
Subsidiary
|
| | | | 1.1 | | |
Superior Proposal
|
| | | | 1.1 | | |
Surviving Corporation
|
| | | | 3.1 | | |
Tax Incentive
|
| | | | 5.13(k ) | | |
Tax Return
|
| | | | 1.1 | | |
Taxes
|
| | | | 1.1 | | |
Tender Offer Conditions
|
| | | | 2.1(b ) | | |
Termination Date
|
| | | | 9.1(b )(i) | | |
United States and U.S.
|
| | | | 1.1 | | |
Name
|
| |
Age
|
| |
Title
|
|
Robert H. Turner | | |
70
|
| | Executive Chairman of the Board | |
Yves van Sante | | |
58
|
| | Director | |
Luis Jimenez-Tuñon | | |
39
|
| | Director | |
Robert L. Lippert | | |
55
|
| | Director | |
Victor Bozzo | | |
50
|
| | Chief Executive Officer | |
Edward O’Donnell | | |
53
|
| | Chief Financial Officer | |
Denis McCarthy | | |
44
|
| | President | |
Name
|
| |
Age
|
| |
Title
|
|
Robert H. Turner | | |
68
|
| | President, Chief Executive Officer, Director | |
Yves van Sante | | |
56
|
| | Treasurer, Secretary, Director | |
| | | | PARETEUM CORPORATION | |
| | | |
By:
/s/ Robert H. Turner
Robert H. Turner
Executive Chairman (Principal Executive Officer) |
|
1 Year Pareteum Chart |
1 Month Pareteum Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions