WILMINGTON, Mass., Sept. 29, 2014 /PRNewswire/ -- Implant
Sciences Corporation (OTCQB: IMSC), a high technology supplier
of systems and sensors for the homeland security market and related
industries, today announced financial results for the three months
and fiscal year ended June 30,
2014.
Revenues for the three months ended June
30, 2014 decreased 36%, to $1.5
million, from $2.4 million for
the comparable prior year period. Our net loss for the three
months ended June 30, 2014 was
$5.7 million as compared with a net
loss of $5.5 million for the
comparable prior year period, an increase of $0.2 million. The increase in the net loss
is primarily due to lower sales and gross margin, increased
operating expenses and increased interest expense in the three
months ended June 30, 2014, partially
offset by a $1.3 million decrease in
stock-based compensation recorded on the September 2012 officer and director option
grants.
Revenues for the fiscal year ended June
30, 2014 decreased 29%, to $8.6
million, from $12.0 million
for the comparable prior year period. Our net loss for the
fiscal year ended June 30, 2014 was
$21.0 million as compared with a net
loss of $27.3 million for the
comparable prior year period, a decrease of $6.3 million. The decrease in the net loss
is primarily due to an $11.3 million
decrease in stock-based compensation recorded in the fiscal year
ended June 30, 2014 on option grants
to our directors and officers in September
2012, offset partially by lower sales and gross margin,
increased operating expenses and increased interest expense.
Earnings before interest, taxes, depreciation, stock-based
compensation, warrants issued to non-employees and common stock
issued to consultants ("Adjusted EBITDA"), which is reconciled to
net loss in this press release, were a loss of $3,152,000 in the three months ended June 30, 2014, compared to a loss of $1,928,000 in the comparable prior year period
and, for the fiscal year ended June 30,
2014, a loss of $10,048,000,
compared to a loss of $6,948,000 in
the comparable prior year period.
Glenn D. Bolduc, President and
CEO of Implant Sciences, commented, "During our recently concluded
quarter and fiscal year we continued to progress through several
regulatory approval processes, most notably we achieved TSA
qualification for both air cargo and checkpoint screening, STAC
certification and approvals in China and Germany, all of which are important strategic
achievements that we believe position the Company for consistent
and sustainable growth. We have taken important steps to broaden
the markets we serve, increase our revenue opportunities, and
improve our financial stability." The following summarizes several
strategic accomplishments during this recently concluded fiscal
year:
- On September 30, 2013, our
QS-B220 Desktop Trace Detector was certified by the Service
Technique de l'Aviation Civile ("STAC"), the French civil aviation
authority, for passenger and cargo screening, at airports
throughout France, French
territories and several European Union member nations.
- On October 18, 2013, the QS-B220
was accepted into the "Qualified" section of the TSA's Air Cargo
Screening Technology List from which the TSA encourages regulated
air cargo screening facilities to purchase security solutions.
- In March 2014, we entered into a
second Cooperative Research and Development Agreement ("CRADA")
with the U.S. Department of Homeland Security's Transportation
Security Laboratory ("TSL") for our QS-B220 explosives trace
detector ("ETD") which will be used as a gold standard ETD by the
TSL.
- Our QS-B220 ETD received regulatory approval from the German
Federal Ministry of the Interior for aviation security applications
at German airports in March
2014.
- We successfully completed the final registration audits for
registration to ISO 9001:2008 and ISO 14001:2004 standards and
received the registration certificates on May 13, 2014.
- On March 19, 2014, we completed a
$20,000,000 refinancing with an
institutional investor group and extended the maturity of our
credit agreements with DMRJ Group LLC through March 31, 2015.
- On August 28, 2014, the QS-B220
successfully completed and passed testing requirements for the
TSA's qualification test for aviation checkpoint and checked
baggage and has been placed on the TSA's Qualified Product List
("QPL"). The QS-B220 is the first ETD with a non-radioactive source
to be approved by the TSA for use in U.S. airports for passenger
and baggage screening.
Mr. Bolduc concluded, "We believe that achieving two TSA
qualifications establishes our credibility as the next generation
explosives technology in the competitive global trace explosives
industry. The growth in sales of our QS-B220 recognized in the just
concluded fiscal year is attributable to being accepted into the
"Qualified" section of the TSA's Air Cargo Screening Technology
List. We remain confident about our future prospects."
Details for the three months and fiscal year ended June 30, 2014 follow below.
Three months Ended June 30,
2014 vs. June 30, 2013
- Revenues for the three months ended June
30, 2014 were $1,529,000 as
compared with $2,402,000 for the
comparable prior year period, a decrease of $873,000, or 36.3%. The decrease in revenue
is due primarily to: a 40.0% decrease in the number of QS-B220
desktop units sold in the three months ended June 30, 2014, due to decreased shipments to
Africa, Europe, the Middle
East and U.S. air cargo screening facilities, which resulted
in a 40.0% decrease in QS-B220 revenues; a 20.8% decrease in the
number of QS-H150 handheld units sold in the three months ended
June 30, 2014, primarily due to
decreased shipments of QS-H150 handheld units in Latin America which resulted in a 27.5%
decrease in QS-H150 revenues; and, to a lesser extent, decreased
sales of parts and supplies in the three months ended June 30, 2014, as compared to the comparable
prior year period; and, an 8.3% decrease in average unit sell
prices on sales of QS-H150 handheld units.
- Gross loss for the three months ended June 30, 2014 was $135,000 or 8.8% of revenues as compared with
gross margin of $697,000 or 29.0% of
revenues for the comparable prior year period. The decrease
in gross margin as a percent of revenues is due to decreased
manufacturing overhead absorption. Manufacturing overhead
expenses increased $280,000 due to
increases in manufacturing personnel costs and increased occupancy
costs, as compared to the prior year period and a $160,000 increase in our provision for obsolete
inventory, the 8.3% decrease in the average unit sell prices on
sales of QS-H150 handheld units, offset partially by a $112,000 decrease in stock-based compensation
recorded on stock option grants to officers and directors in
September 2012.
- Research and development expense for the three months ended
June 30, 2014 was $1,186,000 as compared with $1,233,000 for the comparable prior year period,
a decrease of $47,000 or 3.8%.
The decrease in research and development expense is due primarily a
$139,000 decrease in stock-based
compensation recorded on the September
2012 officer and director option grants, an $11,000 decrease in travel expenses, offset
partially by a $65,000 increase in
occupancy costs and a $34,000
increase in prototype expense.
- Selling, general and administrative expenses for the three
months ended June 30, 2014 were
$2,449,000 as compared with
$3,515,000 for the comparable prior
year period, a decrease of $1,066,000, or 30.3%. The decrease in selling,
general and administrative expenses is due primarily to a
$1,071,000 decrease in stock-based
compensation recorded on the September
2012 officer and director option grants, a
$43,000 decrease in variable sales
expenses due to lower revenues, a $45,000 decrease in payroll and travel expenses,
partially offset by a $148,000
increase in occupancy costs, due to the relocation of our corporate
offices, and a $33,000 increase in
stock-based compensation on non-employee warrants.
- For the three months ended June 30,
2014, other expense was $1,899,000 as compared with other expense of
$1,493,000, for the comparable prior
year period, an increase of $406,000.
The increase is due to increased interest expense on higher
borrowings under our credit facilities.
- Our net loss for the three months ended June 30, 2014 was $5,669,000 as compared with a net loss of
$5,544,000 for the comparable prior
year period, an increase of $125,000,
or 2.3%. The increase in the net loss is primarily due to
lower sales and gross margin, increased operating expenses and
increased interest expense, partially offset by decreased
stock-based compensation recorded on the September 2012 officer and director option grants
in the three months ended June 30,
2014.
Fiscal year Ended June 30, 2014
vs. June 30,
2013
- Revenues for the year ended June 30,
2014 were $8,552,000 as
compared with $12,017,000 for the
comparable prior year period, a decrease of $3,465,000, or 28.8%. The decrease in
revenue is due primarily to a 55.4% decrease in the number of
QS-H150 handheld units sold in the year ended June 30, 2014, primarily due to the shipment of
QS-H150 handheld units under our contract with the India Ministry
of Defence in the year ended June 30,
2013, which resulted in a 57.5% decrease in QS-H150
revenues, and, to a lesser extent, decreased sales of parts and
supplies in the year ended June 30,
2014, as compared to the comparable prior year period, and a
4.7% decrease in the average unit sell prices on sales of our
QS-H150 handheld units, partially offset by a 210.3% increase in
the number of QS-B220 desktop units sold in the year ended
June 30, 2014, due to increased
shipments to U.S. air cargo screening facilities, increased
shipments into Latin America,
Europe and agencies of the U.S.
government, which resulted in a 207.6% increase in QS-B220
revenues.
- Gross margin for the year ended June 30,
2014 was $2,054,000 or 24.0%
of revenues as compared with $3,429,000 or 28.5% of revenues for the
comparable prior year period. The decrease in gross margin as
a percent of revenues is primarily the result of increased
manufacturing overhead due to a $796,000 increase in manufacturing personnel
costs and increased occupancy costs, a $160,000 increase in our provision for obsolete
inventory, partially offset by the $664,000 decrease in stock-based compensation
recorded on stock option grants to officers and directors in
September 2012, as compared to the
prior year period.
- Research and development expense for the year ended
June 30, 2014 was $4,787,000 as compared with $4,754,000 for the comparable prior year period,
an increase of $33,000 or 0.7%.
The increase in research and development expense is due primarily
to a $360,000 increase in payroll and
related benefit costs, a $194,000
increase in occupancy costs, a $54,000 increase in government testing fees and a
$82,000 increase in prototype
expense, offset partially by a $626,000 decrease in stock-based compensation
recorded on the September 2012
officer and director option grants and a $32,000 decrease in material costs.
- Selling, general and administrative expenses for the year ended
June 30, 2014 were $11,388,000 as compared with $20,630,000 for the comparable prior year period,
a decrease of $9,242,000, or 44.8%.
The decrease in selling, general and administrative expenses is due
primarily to a $9,969,000 decrease in
stock-based compensation recorded on the September 2012 officer and director option
grants, the imposition of liquidated damages of $298,000 under our contract with the India
Ministry of Defence in the prior year period, a $174,000 decrease in bank charges, a $261,000 decrease in legal expenses, offset
partially by a $399,000 increase in
payroll, related benefit costs and travel expense resulting from
the addition of sales personnel, a $649,000 increase in occupancy costs, due to the
relocation of our corporate offices, the $295,000 benefit recognized as a result of the
litigation settlement with Fulong in the prior year period, a
$297,000 increase in stock-based
compensation on non-employee warrants, a $62,000 increase in variable selling expenses due
to increased non-employee sales commissions, a $191,000 increase in selling expenses due to the
opening of our Shanghai
representative office, increased participation at industry trade
shows and an increase in demonstration units provided to our sales
force and a $64,000 increase in
depreciation expense.
- For the year ended June 30, 2014,
other expense was $6,889,000 as
compared with other expense of $5,399,000, for the comparable prior year period,
an increase of $1,490,000. The
increase is due to increased interest expense on higher borrowings
under our credit facilities.
- Our net loss for the year ended June 30,
2014 was $21,010,000 as
compared with a net loss of $27,354,000 for the comparable prior year period,
a decrease of $6,344,000, or
23.2%. The decrease in the net loss is primarily due to the
decrease in stock-based compensation recorded on the September 2012 officer and director option grants
in the year ended June 30, 2014,
partially offset by increased operating expenses and increased
interest expense.
Company Webcast and Conference Call
The Company will host a webcast and conference call on
Monday, September 29, 2014 at
4:15 PM Eastern time to review
financial results for the quarter and fiscal year ended
June 30, 2014. Following the
Company's prepared remarks there will be a Q&A
session. The call can be accessed by dialing:
800-798-2864 within the U.S. or 617-614-6206 outside the U.S. and
entering passcode 77821278. Participants are asked to
call the assigned number approximately 5 minutes before the
conference call begins. A replay of the conference call
will be available approximately two hours after the call for one
month by dialing: 888-286-8010 within the U.S. or 617-801-6888
outside the U.S. and entering passcode 70417507. The
conference call will also be available live over the Internet at
the "Webcasts" page of the Investor Relations section of Implant
Sciences' website at www.implantsciences.com. A replay
of the webcast will be available for one month after the call.
About Implant Sciences
Implant Sciences is the leader in next generation
Explosives Trace Detection ("ETD") technology. In October
2013, the Company became the third ETD manufacturer, and the sole
American-owned company, to currently have product qualification
from the US Transportation Security Administration. Implant
Sciences develops, manufactures and sells sophisticated sensors and
systems for Security, Safety, and Defense ("SS&D") markets. The
Company has developed proprietary technologies used in its
commercial explosives and narcotics trace detection systems, which
ship to a growing number of locations domestically and
internationally. Implant Sciences' QS-H150 portable explosives
trace detector has received Qualified Anti-Terrorism Technology
Designation and, in addition to receiving TSA qualification for
aviation checkpoint and checked baggage and air cargo screening,
certification by Service Technique de l'Aviation Civile in
France for passenger and air cargo
screening, the Company's QS-B220 has also received Qualified
Anti-Terrorism Technology Designation by the U.S. Department of
Homeland Security under the Support Anti-terrorism by Fostering
Effective Technology Act of 2002 ("the SAFETY Act"). For further
details on the Company and its products, please visit the Company's
website at www.implantsciences.com.
Safe Harbor Statement
This press release may contain certain "forward-looking
statements," as that term is defined in the Private Securities
Litigation Reform Act of 1995. Such statements are based on
management's current expectations and are subject to risks and
uncertainties that could cause the Company's actual results to
differ materially from the forward-looking statements. Such risks
and uncertainties include, but are not limited to, the risks that
we will be required to repay all of our indebtedness to our secured
lenders, DMRJ Group, LLC and certain lenders for which BAM
Administrative Services LLC serves as agent, by March 31, 2015; if we are unable to satisfy these
obligations and to raise additional capital to fund operations, BAM
or DMRJ may seize our assets and our business may fail; we continue
to incur substantial operating losses and may never be profitable;
our independent registered public accounting firm has expressed
substantial doubt as to our ability to continue as a going concern;
there is no guaranty that the Transportation Security
Administration (TSA) or any other U.S. or foreign governments, law
enforcement agencies or commercial consumers will purchase any of
our explosives detection products or that any new products we may
develop will be accepted by the TSA or by such other governments,
agencies or consumers; economic, political and other risks
associated with international sales and operations could adversely
affect our sales; liability claims related to our products or our
handling of hazardous materials could damage our reputation and
have a material adverse effect on our financial results; our
business is subject to intense competition; our markets are subject
to rapid technology change and our success will depend on our
ability to develop and introduce new products; we may not be able
to retain our management and key employees or identify, hire and
retain additional personnel as needed; we may not be able to
enforce our patent and other intellectual property rights or
operate without infringing on the proprietary rights of others: and
other risks and uncertainties described in our filings with the
Securities and Exchange Commission, including our most recent Forms
10-K, 10-Q and 8-K. Such statements are based on management's
current expectations and assumptions which could differ materially
from the forward-looking statements.
For further information, you are encouraged to review Implant
Sciences' filings with the Securities and Exchange Commission,
including its Annual Report on Form 10-K, for the period ended
June 30, 2014. The Company assumes no
obligation to update the information contained in this press
release.
For further information contact:
Implant Sciences
Corporation
Glenn Bolduc, President and
CEO
(978) 752-1700
or
Investor Contact:
Laurel Moody
646-810-0608
Implant Sciences
Corporation
|
Consolidated
Balance Sheets
|
(In thousand
except share and per share amounts)
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
June
30,
|
|
2014
|
|
2013
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
391
|
|
$
80
|
Restricted cash and
investments
|
312
|
|
433
|
Accounts
receivable-trade, net
|
545
|
|
1,216
|
Inventories,
net
|
2,868
|
|
2,145
|
Prepaid expenses and
other current assets
|
315
|
|
395
|
Total current
assets
|
4,431
|
|
4,269
|
Property and
equipment, net
|
619
|
|
395
|
Restricted cash and
investments
|
312
|
|
312
|
Other non-current
assets
|
117
|
|
122
|
Total
assets
|
$
5,479
|
|
$
5,098
|
LIABILITIES AND
STOCKHOLDERS' DEFICIT
|
|
|
|
Current
liabilities:
|
|
|
|
Senior secured
promissory note - BAM
|
$
20,000
|
|
$
-
|
Senior secured
convertible promissory note
|
3,184
|
|
3,184
|
Senior secured
promissory note - DMRJ
|
1,000
|
|
1,000
|
Second senior secured
convertible promissory note
|
12,000
|
|
12,000
|
Third senior secured
convertible promissory note
|
12,000
|
|
12,000
|
Line of
credit
|
2,995
|
|
12,403
|
Current maturities of
obligations under capital lease
|
45
|
|
62
|
Accrued
expenses
|
11,094
|
|
6,754
|
Accounts
payable
|
3,675
|
|
2,045
|
Deferred
revenue
|
483
|
|
109
|
Total current
liabilities
|
66,476
|
|
49,557
|
Long-term
liabilities:
|
|
|
|
Long-term obligations
under capital lease, net of current maturities
|
66
|
|
89
|
Deferred revenue, net
of current
|
142
|
|
-
|
Total long-term
liabilities
|
208
|
|
89
|
Total
liabilities
|
66,684
|
|
49,646
|
Commitments and
contingencies
|
|
|
|
Stockholders'
deficit:
|
|
|
|
Common stock; $0.001
par value; 200,000,000 shares authorized; 63,634,171 and
63,623,626
shares issued and outstanding at June 30, 2014
and 200,000,000 shares authorized;
57,655,594
|
|
|
|
and 57,645,049 issued and outstanding at June 30, 2013
|
64
|
|
58
|
Preferred stock; no
stated value; 5,000,000 shares authorized
|
|
|
|
Series G Convertible
Preferred Stock, no stated value; 650,000 shares authorized,
no
|
|
|
|
shares issued and
outstanding at June 30, 2014 and 16,167 shares issued and
outstanding
|
|
|
|
at June 30, 2013,
(liquidation value $0 and $129,000, respectively)
|
-
|
|
27
|
Series H Convertible
Preferred Stock, no stated value; 15,000 shares
authorized,
|
|
|
|
no shares issued and
outstanding
|
-
|
|
-
|
Series I Convertible
Preferred Stock, no stated value; 15,000 shares
authorized,
|
|
|
|
no shares issued and
outstanding
|
-
|
|
-
|
Series J Convertible
Preferred Stock, no stated value; 6,000 shares
authorized,
|
|
|
|
no shares issued and
outstanding
|
-
|
|
-
|
Additional paid-in
capital
|
107,055
|
|
103,937
|
Accumulated
deficit
|
(167,886)
|
|
(146,876)
|
Deferred
compensation
|
(367)
|
|
(1,621)
|
Other comprehensive
income
|
2
|
|
-
|
Treasury stock,
10,545 common shares, at cost
|
(73)
|
|
(73)
|
Total stockholders'
deficit
|
(61,205)
|
|
(44,548)
|
Total liabilities and
stockholders' deficit
|
$
5,479
|
|
$
5,098
|
Implant Sciences
Corporation
|
Consolidated
Statements of Operations and Comprehensive Loss
|
(In thousands
except share and per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Fiscal
Years Ended
|
|
June
30,
|
|
June
30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Revenues
|
$
1,529
|
|
$
2,402
|
|
$
8,552
|
|
$
12,017
|
Cost of
revenues
|
1,664
|
|
1,705
|
|
6,498
|
|
8,588
|
Gross (loss)
margin
|
(135)
|
|
697
|
|
2,054
|
|
3,429
|
Operating
expenses:
|
|
|
|
|
|
|
|
Research and
development
|
1,186
|
|
1,233
|
|
4,787
|
|
4,754
|
Selling, general and
administrative
|
2,449
|
|
3,515
|
|
11,388
|
|
20,630
|
Total operating
expenses
|
3,635
|
|
4,748
|
|
16,175
|
|
25,384
|
Loss from
operations
|
(3,770)
|
|
(4,051)
|
|
(14,121)
|
|
(21,955)
|
Other income
(expense):
|
|
|
|
|
|
|
|
Interest
income
|
-
|
|
-
|
|
1
|
|
2
|
Interest
expense
|
(1,899)
|
|
(1,493)
|
|
(6,890)
|
|
(5,401)
|
Total other income
(expense)
|
(1,899)
|
|
(1,493)
|
|
(6,889)
|
|
(5,399)
|
Net
loss
|
(5,669)
|
|
(5,544)
|
|
(21,010)
|
|
(27,354)
|
Other comprehensive
income, net of tax:
|
|
|
|
|
|
|
|
Foreign currency
translation adjustments
|
(1)
|
|
-
|
|
2
|
|
-
|
Other comprehensive
(loss) income
|
(1)
|
|
-
|
|
2
|
|
-
|
Comprehensive
loss
|
$
(5,670)
|
|
$
(5,544)
|
|
$
(21,008)
|
|
$
(27,354)
|
|
|
|
|
|
|
|
|
Net loss per share,
basic and diluted
|
$
(0.09)
|
|
$
(0.10)
|
|
$
(0.35)
|
|
$
(0.56)
|
Weighted average
shares used in computing net loss
|
|
|
|
|
|
|
|
per common share,
basic and diluted
|
63,599,293
|
|
56,306,327
|
|
60,753,054
|
|
49,124,942
|
|
|
|
|
|
|
|
|
Implant Sciences
Corporation
|
|
|
Consolidated Sales
by Product
|
|
|
(In
thousands)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Three
Months Ended
|
|
|
|
June 30,
2014
|
|
June 30,
2013
|
|
|
|
Amount
|
|
Mix
|
|
Amount
|
|
Mix
|
|
Change
%
|
|
|
|
|
|
|
|
|
|
|
QS-H150
|
$
794
|
|
51.9%
|
|
$
1,095
|
|
45.6%
|
|
-27.5%
|
QS-B220
|
575
|
|
37.6%
|
|
963
|
|
40.1%
|
|
-40.3%
|
Parts &
supplies
|
160
|
|
10.5%
|
|
344
|
|
14.3%
|
|
-53.5%
|
|
$
1,529
|
|
100.0%
|
|
$
2,402
|
|
100.0%
|
|
-36.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year
Ended
|
|
For the Year
Ended
|
|
|
|
June 30,
2014
|
|
June 30,
2013
|
|
|
|
Amount
|
|
Mix
|
|
Amount
|
|
Mix
|
|
Change
%
|
|
|
|
|
|
|
|
|
|
|
QS-H150
|
$
4,060
|
|
47.5%
|
|
$
9,561
|
|
79.6%
|
|
-57.5%
|
QS-B220
|
3,907
|
|
45.7%
|
|
1,270
|
|
10.6%
|
|
207.6%
|
Parts &
supplies
|
585
|
|
6.8%
|
|
1,186
|
|
9.8%
|
|
-50.7%
|
|
$
8,552
|
|
100.0%
|
|
$
12,017
|
|
100.0%
|
|
-28.8%
|
|
|
|
|
|
|
|
|
|
|
Implant Sciences
Corporation
|
Earnings Before
Interest, Taxes, Depreciation and Stock-Based Compensation
("Adjusted EBITDA")
|
(In thousands
except share and per share amounts)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Fiscal
Years Ended
|
|
June
30,
|
|
June
30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Net
loss
|
$
(5,669)
|
|
$
(5,544)
|
|
$
(21,010)
|
|
$
(27,354)
|
Interest expense,
net
|
1,899
|
|
1,493
|
|
6,889
|
|
5,399
|
Income
taxes
|
-
|
|
-
|
|
-
|
|
-
|
Depreciation
|
40
|
|
26
|
|
154
|
|
84
|
Stock-based
compensation
|
260
|
|
1,583
|
|
2,649
|
|
13,908
|
Warrants issued to
non-employees
|
318
|
|
214
|
|
1,058
|
|
696
|
Common stock issued
to consultants
|
-
|
|
300
|
|
212
|
|
319
|
Adjusted EBITDA
(1)
|
$
(3,152)
|
|
$
(1,928)
|
|
$
(10,048)
|
|
$
(6,948)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjusted EBITDA
is defined as net loss plus interest expense, net of interest
income, income taxes, depreciation, stock-based compensation, fair
value of warrants issued to non-employees and the fair value of
common stock issued to consultants. EBITDA is commonly used
in the technology industry, and we present Adjusted EBITDA to
enhance your understanding of our financial performance. We
use Adjusted EBITDA as an internal performance measurement and
believe that it provides investors and analysts with a measure of
operating results unaffected by differences in capital structures
and capital investment among otherwise comparable companies and
improves comparability of results of operations. Management uses
this supplemental measure to evaluate performance over a period of
time and to analyze underlying trends in the Company's business and
to establish operational goals and forecast that are used in
allocating resources. We expect to compute our non-GAAP
financial measure, using the same consistent method from quarter to
quarter and year to
year.
|
|
|
While we believe that
Adjusted EBITDA is a useful measure for investors, it is not a
measurement presented in accordance with United States generally
accepted accounting principles, or GAAP. You should not
consider Adjusted EBITDA in isolation or as a substitute for net
income, cash flows from operations, or any other performance
measures calculated in accordance with GAAP. In addition,
Adjusted EBITDA has inherent material limitations as a performance
measure. It does not include interest expense, but because we
have borrowed money, interest expense is a necessary element of our
costs. In addition, Adjusted EBITDA does not include
depreciation. Since we have capital assets, depreciation
expense is a necessary element of our costs. Adjusted EBITDA
does not include stock-based compensation, which is a necessary
element of our costs since we issue stock awards to employees as an
important incentive to maximize overall company performance and as
a benefit of employment with the company. Adjusted EBITDA
does not include the fair value of warrants issued to
non-employees, which is a necessary element of our costs since we
have issued warrants to non-employees and as part of our financing
strategy. Finally, Adjusted EBITDA does not include the fair value
of common stock issued to consultants, which is a necessary element
of our costs since we have issued shares of our common stock in
lieu of cash payments to consultants we have retained. Because not
all companies use identical calculations, our presentation of
Adjusted EDITDA may not be comparable to other similarly titled
measures of other companies.
|
|
|
SOURCE Implant Sciences Corporation