Press Release Source: Command Center, Inc. On Friday January 15, 2010, 10:39 am EST
POST FALLS, Idaho--(BUSINESS WIRE)--Command Center, Inc. (an emerging provider of on-demand, reliable labor solutions, today announced its results for the third quarter of 2009.
For the thirteen weeks ended September 25, 2009, total revenue was $13.2 million, compared to $21.9 million for the thirteen weeks ended September 26, 2008. For the period, the Company reported a net loss of $249,776, or ($0.01) per share, based on 37,041,172 weighted average common shares outstanding, compared to a net loss of $115,820, or ($0.00) per share, based on 36,097,086 weighted average common shares outstanding in the like year-ago quarter.
For the thirty-nine week period ended September 25, 2009, Command Center reported total revenue of $38.4 million, compared to $63.1 million in the thirty-nine week period ended September 26, 2008. The net loss for the nine months was $3.8 million, or ($0.10) per share, compared to a loss of $4.1 million, or ($0.11) per share, in the same period last year.
“Despite the challenges imposed by current economic conditions,” said Glenn Welstad, Command Center Chairman and CEO, “branch consolidation, enhanced sales efforts throughout the entire organization, and the maintenance of strict cost controls resulted in a third-quarter operating loss from operations of less than $50,000. At the same time, expense for workers’ compensation coverage decreased to $463,401 from the $1.13 million recorded in the third quarter of 2008.”
For the thirteen weeks ended September 25, 2009, the Company reported cost of services of $9.47 million and gross profit margin of 28.2 percent, compared to cost of services of $15.86 million and gross profit margin of 27.5 percent in the like year-ago quarter. SG&A expenses for the period were $3.77 million, or 28.6 percent of revenue, compared to $5.82 million, or 26.6 percent of revenue, for the same period last year.
For the thirty-nine week period ending September 25, 2009, the Company reported cost of services of $28.58 million and gross profit margin of 25.6 percent, compared to cost of services of $46.75 million and gross profit margin of 25.8 percent in the like year-ago period. SG&A expenses for the period were $13.1 million, or 34.1 percent of revenue, compared to $19.8 million, or 31.4 percent of revenue, for the same period last year.
Mr. Welstad noted that the current outlook for the staffing industry and for Command Center is very positive. “We are encouraged by the increasing number of new business opportunities. Many of our best customers are expanding their activities, and customers who have not used our services during the last 12 months are beginning to place orders for our temporary workers. We believe that Command Center is now positioned to return to a solid growth path with improved revenue and profitability during 2010.”
A copy of the Form 10-Q is available in the investor relations section of the Company’s website, www.commandonline.com.
About Command Center, Inc.
The Company provides on-demand employment solutions to businesses in the United States, primarily in the areas of light industrial, hospitality and event services, as well as other assignments. Additional information on Command Center is available at www.commandonline.com.
This news release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These statements are subject to uncertainties and risks including, but not limited to, the severity and duration of the general economic downturn, the availability of worker's compensation insurance coverage, the availability of capital and suitable financing for the Company's activities, the ability to attract, develop and retain qualified store managers and other personnel, product and service demand and acceptance, changes in technology, the impact of competition and pricing, government regulation, and other risks set forth in the Form 10KSB filed with the Securities and Exchange Commission on April 9, 2009 and in other statements filed from time to time with the Securities and Exchange Commission. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the Company, are expressly qualified by these cautionary statements and any other cautionary statements which may accompany the forward-looking statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.
| Command Center, Inc. |
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| Balance Sheet |
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| Assets |
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September 25, 2009 |
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December 26, 2008 |
| CURRENT ASSETS: |
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Unaudited |
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Cash |
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$ |
146,707 |
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$ |
2,174,960 |
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Accounts receivable trade, net of allowance for bad debts of $500,000
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at September 25, 2009 and December 26, 2008
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5,023,415 |
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5,223,113 |
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Prepaid expenses, deposits, and other current assets |
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965,248 |
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1,260,153 |
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Current portion of workers' compensation risk pool deposits |
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1,300,000 |
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1,500,000 |
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Total current assets |
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7,435,370 |
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10,158,226 |
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| PROPERTY AND EQUIPMENT, NET |
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2,041,561 |
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2,589,201 |
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| OTHER ASSETS: |
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Workers' compensation risk pool deposits |
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2,533,784 |
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2,729,587 |
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Goodwill |
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2,500,000 |
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2,500,000 |
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Intangible assets - net |
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368,854 |
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503,606 |
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Total other assets |
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5,402,638 |
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5,733,193 |
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$ |
14,879,569 |
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$ |
18,480,620 |
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| Liabilities and Stockholders' Equity |
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| CURRENT LIABILITIES: |
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Accounts payable |
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$ |
1,873,304 |
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$ |
1,080,735 |
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Line of credit facility |
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3,012,144 |
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2,579,313 |
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Accrued wages and benefits |
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583,783 |
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981,293 |
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Other current liabilities |
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284,880 |
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195,566 |
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Current portion of note payable |
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9,520 |
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9,520 |
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Short-term note payable, net of discount |
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1,025,000 |
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1,868,748 |
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Workers' compensation and risk pool deposits payable |
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668,518 |
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531,062 |
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Warrant liability |
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336,000 |
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-- |
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Current portion of workers' compensation claims liability |
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1,300,000 |
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1,500,000 |
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Total current liabilities |
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9,093,149 |
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8,746,237 |
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| LONG-TERM LIABILITIES: |
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Note payable, less current portion |
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71,447 |
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76,135 |
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Finance obligation |
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1,125,000 |
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1,125,000 |
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Workers' compensation claims liability, less current portion |
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2,800,000 |
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2,986,372 |
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Total long-term liabilities |
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3,996,447 |
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4,187,507 |
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| COMMITMENTS AND CONTINGENCIES (NOTE 10) |
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- |
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- |
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| STOCKHOLDERS' EQUITY: |
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Preferred stock - 5,000,000 shares, $0.001 par value, authorized;
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no shares issued and outstanding
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- |
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- |
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Common stock - 100,000,000 shares, $0.001 par value, authorized;
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37,074,798 and 36,290,053 shares issued and outstanding, respectively
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37,075 |
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36,290 |
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Additional paid-in capital |
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51,432,762 |
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51,370,627 |
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Accumulated deficit |
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(49,679,865 |
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(45,860,041 |
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Total stockholders' equity |
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1,789,972 |
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5,546,876 |
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$ |
14,879,569 |
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$ |
18,480,620 |
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| See accompanying notes to unaudited financial statements. |
| Command Center, Inc. |
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| Statements of Operations (Unaudited) |
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Thirteen Weeks Ended |
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Thirty-nine Weeks Ended |
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September 25 |
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September 26 |
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September 25 |
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September 26 |
| REVENUE: |
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2009 |
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2008 |
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2009 |
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2008 |
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Revenue from services |
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$ |
13,173,084 |
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$ |
21,747,587 |
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$ |
38,331,742 |
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$ |
62,675,317 |
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Other income |
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13,855 |
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122,928 |
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69,874 |
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378,662 |
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13,186,939 |
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21,870,515 |
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38,401,616 |
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63,053,979 |
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| COST OF SERVICES: |
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Temporary worker costs |
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8,957,172 |
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14,475,694 |
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26,282,246 |
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41,385,881 |
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Workers' compensation costs |
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463,401 |
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1,129,315 |
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2,170,542 |
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4,898,238 |
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Other direct costs of services |
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47,620 |
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253,474 |
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131,254 |
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470,512 |
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9,468,193 |
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15,858,483 |
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28,584,042 |
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46,754,631 |
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| GROSS PROFIT |
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3,718,746 |
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6,012,032 |
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9,817,574 |
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16,299,348 |
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| SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES: |
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Personnel costs |
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1,860,868 |
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2,961,797 |
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6,039,755 |
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10,263,983 |
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Selling and marketing expenses |
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11,976 |
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74,204 |
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81,787 |
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598,302 |
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Transportation and travel |
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202,789 |
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609,216 |
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772,131 |
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1,945,799 |
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Office expenses |
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35,982 |
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98,403 |
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136,670 |
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324,429 |
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Legal, professional and consulting |
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168,900 |
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247,000 |
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583,276 |
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795,425 |
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Depreciation and amortization |
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194,050 |
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214,630 |
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609,598 |
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643,456 |
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Rents and leases |
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376,141 |
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623,747 |
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1,701,119 |
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1,916,955 |
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Other expenses |
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915,612 |
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988,558 |
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2,779,714 |
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3,314,338 |
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3,766,318 |
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5,817,555 |
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12,704,050 |
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19,802,687 |
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| INCOME (LOSS) FROM OPERATIONS |
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(47,572 |
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194,477 |
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(2,886,476 |
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(3,503,339 |
) |
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| OTHER INCOME (EXPENSE): |
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Interest expense |
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(148,490 |
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(286,285 |
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(482,807 |
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(578,354 |
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Loss on extinguishment of debt |
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- |
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- |
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(518,251 |
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- |
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Change in fair value of warrant liability |
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- |
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- |
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126,000 |
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- |
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Interest and other income (expense) |
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(53,714 |
) |
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(24,011 |
) |
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(58,290 |
) |
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(23,355 |
) |
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(202,204 |
) |
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(310,296 |
) |
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(933,348 |
) |
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(601,709 |
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| NET LOSS |
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$ |
(249,776 |
) |
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$ |
(115,819 |
) |
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$ |
(3,819,824 |
) |
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$ |
(4,105,048 |
) |
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| LOSS PER SHARE, BASIC AND DILUTED |
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$ |
(0.01 |
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$ |
(0.00 |
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$ |
(0.10 |
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$ |
(0.11 |
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| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING |
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37,041,172 |
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36,157,965 |
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36,660,036 |
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35,993,368 |
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| See accompanying notes to unaudited financial statements. |