NEW YORK--(BUSINESS WIRE)--Atrinsic, Inc., (NASDAQ: ATRN), marketer of the Kazaa digital music service, and an Internet search marketing agency, Atrinsic Interactive, announced second quarter 2011 results today.
During the second quarter Atrinsic appointed Stuart Goldfarb as its President and Chief Executive Officer. Goldfarb has over 20 years’ experience leading operational and strategic change in subscription, direct marketing, ecommerce and media companies. He has dedicated his career to building successful organizations and shaping innovative business models. Goldfarb has been a member of Atrinsic’s board since January 2010. Also in the second quarter, Atrinsic announced that Sharon Siegel was named as its Chief Marketing Officer. Siegel has been a direct marketing leader for over a decade, with experience building some of the largest direct marketing and subscription based businesses in the world.
Results of Operations
Revenues for the second quarter of 2011 were $6.3 million compared with $10.8 million for the second quarter of 2010, a decrease of 42%. Our Subscription revenue, which is dominated by revenue generated from our core Kazaa digital music subscription service, decreased by $1.5 million, or 29%, to $3.5 million for the second quarter 2011, compared to $5.0 million for the second quarter 2010. This decrease in Subscription revenue was due to a reduction in total subscribers compared to the year-ago period, with most of the decrease coming from our legacy products, reflecting our primary focus on Kazaa and the reduction or de-emphasis of our non-core legacy subscription products. Additionally, Transactional Services revenue decreased by $3.0 million, or 53%, to $2.8 million for the second quarter 2011, compared to $5.8 million for the second quarter 2010. This decrease in Transactional revenue was due to lower sales volume from existing clients. The Transactional Services sales decline, on a year-over-year basis, was also due to our proactive elimination of unprofitable revenue lines and elimination of certain lead generation activities during 2010 – which has had the effect of reducing Transaction revenue, but has also resulted in an improvement in gross margins for this segment.
Operating expenses for the second quarter of 2011 were $11.3 million, compared with $15.3 million for the second quarter of 2010, a decrease of $4.0 million. The decrease is primarily attributable to a decrease in cost of third party media expense, which in turn was mostly due to lower Transactional Services revenue. Transactional Services Cost of Media moves proportionately to Transactional Services revenue. As a result of our efforts to continue to streamline and eliminate certain activities, we also achieved a 21% reduction in general, administrative and other operating expense compared to the year ago period, which contributed to the decrease in overall operating expenses in the second quarter of 2011.
Adjusted EBITDA for the second quarter of 2011 was a loss of ($4.8) million compared with a loss of ($3.9) million for the second quarter of 2010. Adjusted EBITDA is a non-GAAP measure – see Supplemental Disclosure regarding Non-GAAP Measures below.
Net loss for the second quarter of 2011 was ($6.2) million, or ($0.97) loss per basic and diluted share, compared with net loss of ($4.5) million for the second quarter of 2010, or ($0.86) loss per basic and diluted share.
As of June 30, 2011, we had $2.3 million of cash and cash equivalents, compared to $6.3 million as of December 31, 2010, a decrease of $4.0 million. For the six months ended June 30, 2011, we experienced a net loss of $9.7 million, which was offset by non cash interest expense of $1.2 million and non cash depreciation, amortization and stock compensation expense of $0.7 million. Year to date, we spent $0.7 million on capitalized application and software development for Kazaa and Atrinsic Interactive. This is in addition to approximately $2.2 million of Kazaa product development expenditure incurred since the beginning of the year. In May, we issued $5.8 million of 12-month original issue discount convertible notes, along with warrants, at conversion or strike prices between $2.90 and $2.97, subject to adjustment under certain conditions. This offering generated proceeds before financing costs and adjustments, of $5.3 million.
Atrinsic Interactive
Atrinsic Interactive is a leading search agency offering advertisers an integrated service offering across paid search, SEO, display, affiliate marketing, business intelligence and brand protection services. Transactional Services gross margin (revenue after Cost of Media – 3rd party) continues to show significant improvement on a year-over-year basis – for both the three and six month periods. Gross margin improved to 35% of Transactional Services revenue for the second quarter of 2011 from 19% of Transactional Services revenue, for the second quarter of 2010. As discussed above, this improvement reflects efforts to eliminate unprofitable or marginally profitable revenue lines. Transactional Services operating loss also improved on a year-over-year basis, for the same reasons, improving the segment operating loss to $0.5 million for the second quarter of 2011, compared to an operating loss of $1.2 million for the second quarter of 2010.
Atrinsic Interactive is also announcing today that it added a significant new search marketing client, DirectBuy. Atrinsic Interactive is now DirectBuy’s exclusive search marketing agency and will assist DirectBuy in expanding its online presence, while guarding its brand with Atrinsic Interactive’s proprietary Brandlock technology. This new client is expected to have a significant and positive impact on Atrinsic’s top line revenue growth in the second half of 2011.
Kazaa
Atrinsic’s branded digital music service, Kazaa, is the company’s principal operational focus. Stuart Goldfarb, Atrinsic’s President and Chief Executive Officer, commented, “I believe that the opportunity for our Kazaa music service has never been more promising. Atrinsic, through its relationship with Brilliant Digital Entertainment, Inc., is one of only a handful of companies – just a handful - that has license agreements with the record labels, allowing it to take advantage of this massive opportunity in the delivery of streaming music.” Goldfarb continued, “We are bringing to the Kazaa music service a world class team that brings years of demonstrable experience in building mass market subscription businesses – particularly in the music and entertainment areas. We intend to replicate that success at Atrinsic. In particular, Sharon Siegel, our Chief Marketing Officer, and her marketing group, have a long standing and consistent track record of profitably acquiring and retaining millions of new subscribers year after year.”
At Atrinsic, the development of the Kazaa digital music service is a process of continuous improvement. In addition to regular update releases at Kazaa.com, we expect to shortly be able to announce the release of our iPhone application, available in Apple’s App Store. We are also developing a best-of-breed Android App. These development initiatives are in addition to our current mobile web browser functionality – already available to iPhone, Android and other smartphone users.
Other initiatives which we expect to be able to elaborate on over the coming months, include the addition of music from thousands of independent labels – giving our subscribers access to millions of tracks, matching or exceeding offerings from our competitors. We are also engaged in adding and integrating rich social media into our Kazaa music service, including utilization of Facebook's, and other well distributed social media tools and platforms.
Our Kazaa music service has now moved to a $9.99 price point, a highly competitive value proposition for prospective subscribers. We are extremely focused on analytically-driven customer acquisition activities and in acquiring long term customers who will provide the company with a predictable return on investment. We have extraordinary experience in this area. As of June 30, 2011, the Company has approximately 71,000 Kazaa subscribers, compared to approximately 86,000 as of June 30, 2010 and 77,000 at December 31, 2010. We expect that we will experience a modest decline in our subscriber base over the next several months as we reset our marketing activities.
Liquidity and Financing
As of June 30, 2011, the Company had $2.3 million of cash and cash equivalents and a $6.7 million working capital deficit. In order to fund operations and grow our business, we must raise additional capital. We are focused on raising debt or equity capital to fund our immediate cash needs and to finance our longer term growth to further develop the Kazaa business and grow its subscriber base.
Departure of Chief Financial Officer
Today Atrinsic announced the departure of Thomas Plotts from his position as Chief Financial Officer, effective as of August 16, 2011. “I am leaving to pursue other opportunities closer to my family,” said Thomas Plotts. “With the recent appointment of Stuart Goldfarb as CEO and other steps we have taken to reinvent Atrinsic, I believe that the Company, and its Kazaa-branded digital music service, are poised for a promising future.” Plotts continued, “I have been with the Company for four and half years, and am thankful for the support and friendship from many of Atrinsic’s employees during that time.” Plotts will transition his responsibilities at Atrinsic over the next several weeks.
In connection with the proposed acquisition by Atrinsic of the Kazaa music subscription assets from Brilliant Digital, the Company plans to file with the SEC a Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934. The Proxy Statement will be mailed to stockholders of Atrinsic. Investors and security holders are urged to read the proxy statement and other documents filed with the SEC carefully in their entirety when they become available because they will contain important information about the transaction. Investors and security holders will be able to obtain free copies of the Proxy Statement (when available) and other documents filed with the SEC by the Company through the web site maintained by the SEC at http://www.sec.gov/. Free copies of the Proxy Statement (when available) and other documents filed with the SEC can also be obtained by directing a request to Sharon Siegel, Chief Marketing Officer, Atrinsic, Inc. at 212-716-1977.
All non-GAAP amounts have been adjusted from comparable GAAP measures. A description of all adjustments and reconciliations to comparable GAAP measures for all periods presented are included within this communication.
About Atrinsic and Kazaa
Our business is focused on two segments: (1) the Kazaa digital music subscription business, and (2) Search and affiliate marketing, built around the Atrinsic Interactive brand.
Built around a recurring-revenue business model, our subscription service is focused on digital music in the rapidly growing mobile space, and our lead offering, the Kazaa digital music service, is a relevant and recognizable brand in such a space. Our core strategic focus for Kazaa is to build and sustain a large and profitable subscriber base, to provide a clear, simple and competitive user experence to an engaged audience and to deliver entertainment content to our customers anywhere, anytime and on any device.
The Kazaa music service gives users unlimited access to millions of high-quality digital tracks. For a monthly fee users can stream unlimited music files and play those files on multiple devices. Subscribers can also save songs, albums and playlists and access them even when they are offline or don’t have a phone signal. Customers can discover new music through custom radio and recommendations based upon our exclusive technology. Unlike other music services that charge you every time a song is downloaded, the Kazaa music service allows users to listen to and explore as much music as they want for one low monthly fee, without having to pay for every track or album. Consumers are billed for this service via credit card, or billed directly to their AT&T mobile phone. Royalties are paid to the rights’ holders’ for licenses to the music utilized by this digital service. Atrinsic and Brilliant Digital, Inc. jointly offer the Kazaa digital music service pursuant to a Marketing Services Agreement and a Master Services Agreement between the two companies.
Atrinsic Interactive, our affiliate network and search marketing agency, is a leading search agency and a top-tier affiliate network. We offer advertisers an integrated service offering across paid search, or search engine marketing, search engine optimization, display advertising, affiliate marketing, as well as offering business intelligence and brand protection services to our clients. Our core strategic focus for Atrinsic Interactive is to build a leading independent search marketing agency and a top-five affiliate network.
Forward-Looking Statements
This press release contains “forward-looking” statements based on management’s current expectations as of the date of this release. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward looking statements include Atrinsic’s belief that its new search marketing client, DirectBuy, will have a significant and positive impact on Atrinsic’s top line revenue growth in the second half of 2011, as well as the Company’s discussion relating to management’s current strategic priorities and its planned initiatives for the coming months. Because such statements inherently involve risks and uncertainties, actual results may differ materially from those expressed or implied by such forward looking statements. Such risks include, among others, the Company’s ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of the Company’s liquidity and financial strength to support growth, and other information that may be detailed from time to time in the Company’s filings with the United States Securities and Exchange Commission. All information in this release is as of the date of this release. The Company does not undertake any obligation to update or revise these forward-looking statements to conform to actual results or changes in the Company’s expectations.
Supplemental Disclosure regarding Non-GAAP Measures
EBITDA and Adjusted EBITDA
The following tables set forth the Company’s EBITDA and Adjusted EBITDA for the three month periods ending on June 30, 2011 and 2010, respectively. The Company defines “EBITDA” and “Adjusted EBITDA” as net income adjusted to exclude the following line items presented in its Statement of Operations: Income taxes, interest expense, interest and dividend income, net, depreciation and amortization, and in the case of Adjusted EBITDA, non-cash equity based compensation, equity in (loss) income of investee, and other (income) expense. While this non-Generally Accepted Accounting Principles (“GAAP”) measure has been relabeled to more accurately describe in the title the method of calculation of the measure, the actual method of calculating the measure is presented below.
The Company uses Adjusted EBITDA, among other things, and possibly with additional adjustments, to evaluate the Company’s operating performance, to value prospective acquisitions, and as one of several components of incentive compensation targets for certain management personnel, and this measure is among the primary measures used by management for planning and forecasting of future periods. This measure is an important indicator of the Company’s operational strength and performance of its business because it provides one of several links between profitability and operating cash flow. The Company believes the presentation of this measure is relevant and useful for investors because it allows investors to view performance in a manner similar to the method used by the Company’s management, helps improve their ability to understand the Company’s operating performance and makes it easier to compare the Company’s results with other companies that have different financing and capital structures or tax rates. In addition, it is our understanding that this measure is also among the primary measures used externally by the Company’s investors, analysts and peers in its industry for purposes of valuation and comparing the operating performance of the Company to other companies in its industry. The Company has elected to not adjust EBITDA for the impact of the adoption of ASC 718 (formerly FAS No.123R) and the Company has provided what it believes to be relevant supplemental information in this communication for analysis by others to fit their particular needs.
Since EBITDA and Adjusted EBITDA are not measures of performance calculated in accordance with GAAP, it should not be considered in isolation of, or as a substitute for, net income as an indicator of operating performance. EBITDA and Adjusted EBITDA, as the Company calculates it, may not be comparable to similarly titled measures employed by other companies. In addition, this measure does not necessarily represent funds available for discretionary use, and is not necessarily a measure of the Company’s ability to fund its cash needs. As EBITDA and Adjusted EBITDA exclude certain financial information compared with net income, the most directly comparable GAAP financial measure, users of this financial information should consider what information is excluded. As required by the SEC, the Company provides below a reconciliation of EBITDA and Adjusted EBITDA to net income, the most directly comparable amount reported under GAAP.
| Reconciliation of Reported Net Income (Loss) | |||||||||||||||
| To EBITDA and Adjusted EBITDA | |||||||||||||||
| (Dollars in thousands, except per share data) | |||||||||||||||
| (UNAUDITED) | |||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||
| June 30, | June 30, | June 30, | June 30, | ||||||||||||
| 2011 | 2010 | 2011 | 2010 | ||||||||||||
| Net loss attributable to Atrinsic, Inc. | $ | (6,153 | ) | $ | (4,492 | ) | $ | (9,667 | ) | $ | (7,926 | ) | |||
| Reconciliation Items: | |||||||||||||||
| Income taxes | 26 | 109 | 63 | 173 | |||||||||||
| Interest (income) expense and dividends, net | 1,168 | (2 | ) | 1,167 | (3 | ) | |||||||||
| Depreciation and amortization | 192 | 324 | 407 | 647 | |||||||||||
| EBITDA | (4,767 | ) | (4,061 | ) | (8,030 | ) | (7,109 | ) | |||||||
| Non-cash equity based compensation | 80 | 305 | 252 | 635 | |||||||||||
| Equity in (loss) income of Investee | (67 | ) | (50 | ) | (56 | ) | 60 | ||||||||
| Other (income) expense | 3 | (53 | ) | (384 | ) | (10 | ) | ||||||||
| Adjusted EBITDA | $ | (4,751 | ) | $ | (3,859 | ) | $ | (8,218 | ) | $ | (6,424 | ) | |||
| Diluted Adjusted EBITDA | |||||||||||||||
| per Common Share (1) | $ | (0.75 | ) | $ | (0.74 | ) | $ | (1.30 | ) | $ | (1.23 | ) | |||
| (1) All outstanding per share amounts have been retroactively restated to reflect the | |||||||||||||||
|
December 2010 1-for-4 reverse stock split. |
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| ATRINSIC, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (Dollars in thousands, except per share data) | ||||||||
| As of | As of | |||||||
| June 30, | December 31, | |||||||
| 2011 | 2010 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 2,309 | $ | 6,319 | ||||
| Accounts receivable, net of allowance for doubtful accounts of $1,199 and $1,168 | 4,082 | 4,994 | ||||||
| Income tax receivable | 395 | 437 | ||||||
| Asset held for sale | 787 | - | ||||||
| Prepaid expenses and other current assets | 1,006 | 565 | ||||||
| Total Current Assets | 8,579 | 12,315 | ||||||
| PROPERTY AND EQUIPMENT, net of accumulated depreciation of $2,005 and $1,813 | 2,406 | 2,692 | ||||||
| INTANGIBLE ASSETS, net of accumulated amortization of $ 2,941 and $3,813 | 2,887 | 3,083 | ||||||
| DEFERRED TAX ASSET | 275 | 276 | ||||||
| INVESTMENTS, ADVANCES AND OTHER ASSETS | 878 | 976 | ||||||
| TOTAL ASSETS | $ | 15,025 | $ | 19,342 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | $ | 2,787 | $ | 4,470 | ||||
| Accrued expenses | 5,023 | 5,172 | ||||||
| Convertible notes | 3,202 | - | ||||||
| Derivative liability | 3,257 | - | ||||||
| Deferred tax liability | 347 | 347 | ||||||
| Deferred revenues and other current liabilities | 617 | 274 | ||||||
| Total Current Liabilities | 15,233 | 10,263 | ||||||
| OTHER LONG TERM LIABILITIES | 906 | 907 | ||||||
| TOTAL LIABILITIES | 16,139 | 11,170 | ||||||
| COMMITMENTS AND CONTINGENCIES (See Note 15) | - | - | ||||||
| STOCKHOLDERS' EQUITY | ||||||||
| Common stock - par value $0.01, 100,000,000 shares authorized, 7,010,412 and 6,964,125 | ||||||||
| shares issued at June 30, 2011 and December 31, 2010, respectively; and, 6,328,903 and | ||||||||
| 6,282,616 shares outstanding at June 30, 2011 and December 31, 2010, respectively. | 70 | 70 | ||||||
| Additional paid-in capital | 181,430 | 181,087 | ||||||
| Accumulated other comprehensive income | 80 | 42 | ||||||
| Common stock, held in treasury, at cost, 681,509 shares at June 30, 2011 and December 31, | ||||||||
| 2010. | (4,981 | ) | (4,981 | ) | ||||
| Accumulated deficit | (177,713 | ) | (168,046 | ) | ||||
|
Total Stockholders' Equity |
(1,114 | ) | 8,172 | |||||
| TOTAL LIABILITIES AND EQUITY | $ | 15,025 | $ | 19,342 | ||||
|
|
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All outstanding share and per share amounts have been retroactively restated to reflect the December 2010 1-for-4 reverse stock split |
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| ATRINSIC, INC. AND SUBSIDIARIES | ||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (UNAUDITED) | ||||||||||||||||
| (Dollars in thousands, except per share data) | ||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Subscriptions | $ | 3,519 | $ | 4,991 | $ | 6,999 | $ | 10,973 | ||||||||
| Transactional services | 2,751 | 5,822 | 6,327 | 12,040 | ||||||||||||
| NET REVENUE | 6,270 | 10,813 | 13,326 | 23,013 | ||||||||||||
| OPERATING EXPENSES | ||||||||||||||||
| Cost of media – 3rd party | 2,951 | 6,009 | 6,911 | 13,353 | ||||||||||||
| Content costs | 2,298 | 1,946 | 4,213 | 3,858 | ||||||||||||
| Product and distribution | 2,818 | 3,182 | 4,729 | 5,631 | ||||||||||||
| Selling and marketing | 1,075 | 1,337 | 2,116 | 2,287 | ||||||||||||
| General, administrative and other operating | 1,959 | 2,503 | 3,827 | 4,943 | ||||||||||||
| Depreciation and amortization | 192 | 324 | 407 | 647 | ||||||||||||
| 11,293 | 15,301 | 22,203 | 30,719 | |||||||||||||
| LOSS FROM OPERATIONS | (5,023 | ) | (4,488 | ) | (8,877 | ) | (7,706 | ) | ||||||||
| OTHER (INCOME) EXPENSE | ||||||||||||||||
| Interest income and dividends | (1 | ) | (2 | ) | (2 | ) | (4 | ) | ||||||||
| Interest expense | 1,169 | - | 1,169 | 1 | ||||||||||||
| Other expense (income) | 3 | (53 | ) | (384 | ) | (10 | ) | |||||||||
| 1,171 | (55 | ) | 783 | (13 | ) | |||||||||||
| LOSS BEFORE TAXES AND EQUITY IN (EARNINGS) LOSS OF INVESTEE | (6,194 | ) | (4,433 | ) | (9,660 | ) | (7,693 | ) | ||||||||
| INCOME TAXES | 26 | 109 | 63 | 173 | ||||||||||||
| EQUITY IN (EARNINGS) LOSS OF INVESTEE, AFTER TAX | (67 | ) | (50 | ) | (56 | ) | 60 | |||||||||
| NET LOSS ATTRIBUTABLE TO ATRINSIC, INC. | $ | (6,153 | ) | $ | (4,492 | ) | $ | (9,667 | ) | $ | (7,926 | ) | ||||
| NET LOSS PER SHARE ATTRIBUTABLE TO ATRINSIC COMMON | ||||||||||||||||
| STOCKHOLDERS | ||||||||||||||||
| Basic | $ | (0.97 | ) | $ | (0.86 | ) | $ | (1.53 | ) | $ | (1.52 | ) | ||||
| Diluted | $ | (0.97 | ) | $ | (0.86 | ) | $ | (1.53 | ) | $ | (1.52 | ) | ||||
| WEIGHTED AVERAGE SHARES OUTSTANDING: | ||||||||||||||||
| Basic | 6,318,601 | 5,217,303 | 6,306,275 | 5,214,184 | ||||||||||||
| Diluted | 6,318,601 | 5,217,303 | 6,306,275 | 5,214,184 | ||||||||||||
| ATRINSIC, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (UNAUDITED) | ||||||||
| (Dollars in thousands, except per share data) | ||||||||
| Six Months Ended | ||||||||
| June 30, | ||||||||
| 2011 | 2010 | |||||||
| Cash Flows From Operating Activities | ||||||||
| Net loss | $ | (9,667 | ) | $ | (7,926 | ) | ||
| Adjustments to reconcile net loss to net cash | ||||||||
| used in operating activities: | ||||||||
| Allowance for doubtful accounts | 31 | (25 | ) | |||||
| Depreciation and amortization | 407 | 647 | ||||||
| Stock-based compensation expense | 252 | 635 | ||||||
| Deferred income taxes | - | 21 | ||||||
| Equity in loss (earnings) of investee | (56 | ) | 60 | |||||
| Interest expense relating to debt discount and derivative liability losses | 1,168 | - | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 881 | (924 | ) | |||||
| Prepaid income tax | 62 | 856 | ||||||
| Prepaid expenses and other assets | 165 | 1,684 | ||||||
| Accounts payable | (1,682 | ) | (1,734 | ) | ||||
| Deferred revenue | 214 | - | ||||||
| Other, principally accrued expenses | 549 | (2,887 | ) | |||||
| Net cash used in operating activities | (7,676 | ) | (9,593 | ) | ||||
| Cash Flows From Investing Activities | ||||||||
| Capital expenditures | (691 | ) | (38 | ) | ||||
| Net cash used in investing activities | (691 | ) | (38 | ) | ||||
| Cash Flows From Financing Activities | ||||||||
| Proceeds from issuance of convertible notes and warrants | 4,716 | - | ||||||
| Financing costs for the convertible notes and warrants | (446 | ) | - | |||||
| Proceeds from exercise of stock options | 91 | - | ||||||
| Purchase of common stock held in treasury | - | (9 | ) | |||||
| Net cash provided by (used in) financing activities | 4,361 | (9 | ) | |||||
| Effect of exchange rate changes on cash and cash equivalents | (4 | ) | (5 | ) | ||||
| Net Decrease In Cash and Cash Equivalents | (4,010 | ) | (9,645 | ) | ||||
| Cash and Cash Equivalents at Beginning of Year | 6,319 | 16,913 | ||||||
| Cash and Cash Equivalents at End of Period | $ | 2,309 | $ | 7,268 | ||||
| SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||||||||
| Cash refunded (paid) for taxes | $ | - | $ | 705 | ||||
| Reduction of proceeds from issuance of convertible notes | $ | 535 | $ | - | ||||
| Non-cash financing costs | $ | 51 | $ | - | ||||