|
| [April 11, 2012] |
 |
Innovaro, Inc. Reports Financial Results for Year Ended December 31, 2011
TAMPA, Fla. --(Business Wire)--
Innovaro, Inc. (NYSE Amex: INV) today announced financial results for
the fiscal year ended December 31, 2011.
Year Ended 2011 Financial Results
Revenue was $14.9 million for the year ended December 31, 2011 as
compared to $13.1 million for the year ended December 31, 2010. Net loss
was $4.9 million for the year ended December 31, 2011 and 19.1 million
for the year ended December 31, 2010.
Some of the highlights from 2011 include:
-
Total revenue for the year ended December 31, 2011 increased by 13%
over year ended December 31, 2010;
-
Strategic services revenue for the year ended December 31, 2011
increased by 26% over year ended December 31, 2010;
-
Technology services revenue for the year ended December 31, 2011
decreased by 25% over year ended December 31, 2010;
-
Incurred innovation management software platform R&D costs of $752,000
for the year ended December 31, 2011.
Financial Condition
Our total assets were $20.8 million at December 31, 2011 compared to
$24.7 million at December 31, 2010. At December 31, 2011, we had
$268,000 in cash, $1.3 million in accounts receivable and contracts in
progress, $2.5 million in accounts payable and accrued expenses and $5.6
million in debt outstanding. At December 31, 2010, we had $263,000 in
cash and cash equivalents, $2.0 million in accounts receivable, $1.5
million in accounts payable and accrued expenses and $5.8 million in
debt outstanding.
Going Concern
Innovaro's annual report on 10-K for 2011 filed with the SEC (News - Alert) included an
audit opinion containing a going concern qualification. This
announcement is being made in compliance with Section 401(h) and Section
610(b) of the NYSE Amex Company Guide which require a NYSE Amex listed
issuer receiving an audit opinion with a going concern qualification to
make a public announcement to that effect.
Previously Announced Restatement Completed
Today, we filed with the SEC amended Quarterly Reports on Form 10-Q/A
for the quarters ended March 31, 2011, June 30, 2011 and September 31,
2011, which together contain all of the financial statements that were
restated as a result of our previously announced determination that we
should not have recorded a derivative liability related to certain
warrants issued by us. As a result, our periodic filings with the SEC
are now current.
Asa Lanum, Innovaro's CEO stated, "I am pleased with our continuing
improvement in financial performance. We continued to grow revenue for
2011 over 2010. We further reduced our controllable expenses, which
include salaries and wages, professional fees, sales and marketing, and
general and administrative costs for 2011 over 2010. Although our total
sales in Intelligence and Insights decreased, individual sales
productivity and average sales price has increased. We have seen the
successful completion of one technology transfer and two licensing
agreements and have a number of searches and partnering agreements in
process. We are seeing a strengthening in the pipeline for Strategos
since year end 2011. We are pleased with the progress we are making thus
far in 2012. Our focus is to continue to execute against our vision of
being The Innovation Solutions Company."
|
Innovaro, Inc.
Consolidated Balance Sheet
|
|
|
|
|
|
|
|
|
|
December 31,
2011
|
|
December 31,
2010
|
|
ASSETS
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
Cash
|
|
$
|
268,170
|
|
|
$
|
262,619
|
|
|
Accounts receivable, net
|
|
|
799,235
|
|
|
|
1,796,454
|
|
|
Contracts in process
|
|
|
513,040
|
|
|
|
214,734
|
|
|
Available-for-sale securities
|
|
|
55,038
|
|
|
|
171,139
|
|
|
Prepaid expenses and other assets
|
|
|
294,625
|
|
|
|
791,432
|
|
|
Note receivable and accrued interest
|
|
|
1,804,000
|
|
|
|
-
|
|
|
Total current assets
|
|
|
3,734,108
|
|
|
|
3,236,378
|
|
|
Cost method investments
|
|
|
86,784
|
|
|
|
95,589
|
|
|
Equity method investments
|
|
|
92,148
|
|
|
|
303,454
|
|
|
Note receivable and accrued interest
|
|
|
-
|
|
|
|
1,700,000
|
|
|
Fixed assets, net
|
|
|
5,632,757
|
|
|
|
6,736,567
|
|
|
Goodwill
|
|
|
6,130,152
|
|
|
|
6,407,640
|
|
|
Intangible assets, net
|
|
|
5,090,316
|
|
|
|
6,174,792
|
|
|
Total assets
|
|
$
|
20,766,265
|
|
|
$
|
24,654,420
|
|
|
LIABILITIES
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Accounts payable
|
|
$
|
549,431
|
|
|
$
|
1,078,088
|
|
|
Accrued expenses
|
|
|
475,348
|
|
|
|
420,707
|
|
|
Accrued bonus pool
|
|
|
1,444,955
|
|
|
|
-
|
|
|
Deferred revenue
|
|
|
856,222
|
|
|
|
987,624
|
|
|
Current maturities of long-term debt
|
|
|
1,644,664
|
|
|
|
433,964
|
|
|
Total current liabilities
|
|
|
4,970,620
|
|
|
|
2,920,383
|
|
|
Long-term debt, less current maturities
|
|
|
3,997,775
|
|
|
|
5,358,173
|
|
|
Derivative liabilities
|
|
|
-
|
|
|
|
1,140,005
|
|
|
Deferred tax liability
|
|
|
990,542
|
|
|
|
1,220,687
|
|
|
Total liabilities
|
|
|
9,958,937
|
|
|
|
10,639,248
|
|
|
Commitments and contingencies
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
Innovaro stockholders' equity:
|
|
|
|
|
|
Preferred stock, $.01 par value, 1,000,000 shares authorized; none
|
|
|
|
|
|
|
|
|
|
issued and outstanding
|
|
|
-
|
|
|
|
-
|
|
|
Common stock, $.01 par value, 29,000,000 shares authorized;
|
|
|
|
|
|
|
|
|
|
15,159,544 and 14,631,950 shares issued; 15,039,544 and 14,585,261
|
|
|
|
|
|
|
|
|
|
shares outstanding at December 31, 2011 and 2010, respectively
|
|
|
150,396
|
|
|
|
145,853
|
|
|
Additional paid-in capital
|
|
|
86,820,437
|
|
|
|
85,024,704
|
|
|
Accumulated deficit
|
|
|
(76,453,214
|
)
|
|
|
(71,829,344
|
)
|
|
Accumulated other comprehensive income
|
|
|
53,939
|
|
|
|
147,922
|
|
|
Total Innovaro stockholders' equity
|
|
|
10,571,558
|
|
|
|
13,489,135
|
|
|
Noncontrolling interest
|
|
|
235,770
|
|
|
|
526,037
|
|
|
Total equity
|
|
|
10,807,328
|
|
|
|
14,015,172
|
|
|
Total liabilities and equity
|
|
$
|
20,766,265
|
|
|
$
|
24,654,420
|
|
|
|
|
|
|
|
|
|
|
|
|
Innovaro, Inc.
Consolidated Statements of Operations
|
|
|
|
|
|
|
|
Year Ended December 31
|
|
|
|
2011
|
|
2010
|
|
Revenue:
|
|
|
|
|
|
Strategic services
|
|
$
|
12,373,822
|
|
|
$
|
9,783,318
|
|
|
Intelligence and Insights services
|
|
|
2,485,565
|
|
|
|
3,312,808
|
|
|
|
|
|
14,859,387
|
|
|
|
13,096,126
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
Direct costs of revenue - Strategic services
|
|
|
10,638,652
|
|
|
|
8,453,549
|
|
|
Direct costs of revenue - Intelligence and Insights services
|
|
|
1,317,306
|
|
|
|
1,492,396
|
|
|
Salaries and wages
|
|
|
1,742,132
|
|
|
|
2,636,166
|
|
|
Professional fees
|
|
|
343,245
|
|
|
|
608,591
|
|
|
Research and development
|
|
|
751,775
|
|
|
|
1,230,671
|
|
|
Sales and marketing
|
|
|
289,098
|
|
|
|
544,307
|
|
|
General and administrative
|
|
|
1,892,087
|
|
|
|
2,254,324
|
|
|
Depreciation and amortization
|
|
|
1,271,966
|
|
|
|
1,527,344
|
|
|
Impairment loss
|
|
|
1,443,622
|
|
|
|
11,770,708
|
|
|
|
|
|
19,689,883
|
|
|
|
30,518,056
|
|
|
|
|
|
|
|
|
Other (income) and expense:
|
|
|
|
|
|
Other (income) expense
|
|
|
(113,132
|
)
|
|
|
1,149,798
|
|
|
Interest expense, net
|
|
|
433,502
|
|
|
|
621,371
|
|
|
|
|
|
320,370
|
|
|
|
1,771,169
|
|
|
|
|
|
|
|
|
Loss before income taxes
|
|
|
(5,150,866
|
)
|
|
|
(19,193,099
|
)
|
|
Provision for income tax benefit
|
|
|
(230,143
|
)
|
|
|
(55,581
|
)
|
|
Net loss
|
|
|
(4,920,723
|
)
|
|
|
(19,137,518
|
)
|
|
|
|
|
|
|
|
Net loss attributable to noncontrolling interest
|
|
|
(296,853
|
)
|
|
|
(6,095
|
)
|
|
Net loss attributable to Innovaro stockholders
|
|
$
|
(4,623,870
|
)
|
|
$
|
(19,131,423
|
)
|
|
|
|
|
|
|
|
Net loss attributable to Innovaro stockholders per share: Basic and
diluted
|
|
$
|
(0.31
|
)
|
|
$
|
(1.44
|
)
|
|
|
|
|
|
|
|
Weighted average shares outstanding: Basic and diluted
|
|
|
15,013,299
|
|
|
|
13,288,179
|
|
|
|
|
|
|
|
|
|
|
|
|
Innovaro, Inc.
|
|
Consolidated Statements of Cash Flows
|
|
|
|
|
|
Year Ended December 31
|
|
|
|
2011
|
|
2010
|
|
Operating Activities:
|
|
|
|
|
|
Net loss attributable to Innovaro stockholders
|
|
$
|
(4,623,870
|
)
|
|
$
|
(19,131,423
|
)
|
|
Adjustments to reconcile net loss attributable to Innovaro
stockholders to net cash flows from
|
|
|
|
|
|
operating activities:
|
|
|
|
|
|
Net loss attributable to noncontrolling interest
|
|
|
(296,853
|
)
|
|
|
(6,095
|
)
|
|
Depreciation and amortization
|
|
|
1,271,966
|
|
|
|
1,527,344
|
|
|
Amortization of debt discount from investor warrants
|
|
|
132,138
|
|
|
|
280,558
|
|
|
Goodwill and intangible asset impairment
|
|
|
543,622
|
|
|
|
10,332,628
|
|
|
Fixed asset impairment
|
|
|
900,000
|
|
|
|
1,438,080
|
|
|
Loss on sale and impairment of investments
|
|
|
201,441
|
|
|
|
1,605,817
|
|
|
Loss (gain) on derivative liability
|
|
|
150,825
|
|
|
|
(186,203
|
)
|
|
Stock-based compensation
|
|
|
509,463
|
|
|
|
288,305
|
|
|
Compensation paid out in escrowed shares
|
|
|
-
|
|
|
|
146,825
|
|
|
Deferred income taxes
|
|
|
(230,143
|
)
|
|
|
(55,581
|
)
|
|
Other
|
|
|
15,865
|
|
|
|
(19,156
|
)
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
Accounts receivable and contracts in process
|
|
|
697,846
|
|
|
|
(495,260
|
)
|
|
Prepaid expenses and other assets
|
|
|
532,438
|
|
|
|
(248,010
|
)
|
|
Deferred revenue
|
|
|
(131,402
|
)
|
|
|
(646,472
|
)
|
|
Accounts payable, accrued expenses and accrued bonus
|
|
|
977,525
|
|
|
|
255,084
|
|
|
Net cash flows from operating activities
|
|
|
650,861
|
|
|
|
(4,913,559
|
)
|
|
|
|
|
|
|
|
Investing Activities:
|
|
|
|
|
|
Capital expenditures
|
|
|
(39,218
|
)
|
|
|
(80,063
|
)
|
|
Capitalization of software development costs
|
|
|
(225,172
|
)
|
|
|
-
|
|
|
Proceeds from sale of available-for-sale securities
|
|
|
42,870
|
|
|
|
341,997
|
|
|
Proceeds from redemption of certificates of deposit
|
|
|
-
|
|
|
|
492,246
|
|
|
Net cash flows from investing activities
|
|
|
(221,520
|
)
|
|
|
754,180
|
|
|
|
|
|
|
|
|
Financing Activities:
|
|
|
|
|
|
Net repayments on bank line of credit
|
|
|
-
|
|
|
|
(250,000
|
)
|
|
Proceeds from related party and other debt
|
|
|
200,000
|
|
|
|
200,000
|
|
|
Payments on long-term debt
|
|
|
(621,467
|
)
|
|
|
(845,266
|
)
|
|
Gross proceeds from registered equity securities offering
|
|
|
-
|
|
|
|
3,799,999
|
|
|
Offering costs paid from registered equity securities offering
|
|
|
-
|
|
|
|
(593,440
|
)
|
|
Net cash flows from financing activities
|
|
|
(421,467
|
)
|
|
|
2,311,293
|
|
|
|
|
|
|
|
|
Effect of foreign exchange rates on cash
|
|
|
(2,323
|
)
|
|
|
(8,265
|
)
|
|
|
|
|
|
|
|
Increase (decrease) in cash
|
|
|
5,551
|
|
|
|
(1,856,351
|
)
|
|
Cash at beginning of year
|
|
|
262,619
|
|
|
|
2,118,970
|
|
|
Cash at end of year
|
|
$
|
268,170
|
|
|
$
|
262,619
|
|
|
|
|
|
|
|
|
|
|
|
Conference Call Information
We will host a live conference call at 4:30 p.m. ET today to discuss the
results. Investors and analysts are invited to attend the conference
call.
Investors and analysts can participate in the call by dialing:
|
US & Canada: 866-240-5139
|
|
UK: 0-800-368-0590
|
|
Other International Callers: 713-481-0091
|
About Innovaro, Inc.
Innovaro is The Innovation Solutions Company. The focus of our business
is to help clients innovate and grow. Innovaro offers a comprehensive
set of services and software to assure the success of any innovation
project, regardless of the size or intent. The Company's unique
combination of consulting services provide innovation expertise, its new
LaunchPad software product provides an integrated innovation
environment, and technology services provide any business with the
innovation support they need to drive success. For more information
about Innovaro, please visit our website at www.innovaro.com.
Forward-Looking Statements
Certain matters discussed in this press release are "forward-looking
statements." These forward-looking statements can generally be
identified as such because the context of the statement will include
words such as "expects," "should," "believes," "anticipates" or words of
similar import. Certain factors could cause actual results to differ
materially from those projected in these forward-looking statements and
these factors are identified from time to time in our filings with the
Securities and Exchange Commission. We undertake no obligation to
publicly update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. This press
release is available at www.innovaro.com.
[ Back To Mobile Security Homepage's Homepage ]
|
Follow Us