Specialty social media and gaming network CrowdGather, Inc. (OTCQB:CRWG)
today announced financial results for the fiscal year ended April 30,
2015.
For the fiscal year ended April 30, 2015, the Company reported revenues
of $2,399,842, compared to revenues of $1,537,051 reported for fiscal
2014. Gross profit for the fiscal year ended April 30, 2015, was
$1,847,207, an increase of 20% from the $1,533,071 reported for fiscal
2014. Net loss for the 2015 fiscal year was $7,149,564 or $.06 per
share, down 7.5% from a net loss of $7,725,770 or $.13 for the fiscal
year ended April 30, 2014.
The Company also announced that it believes revenues will continue to
increase in the current fiscal year and that those increases, combined
with recent restructuring efforts finalizing the integration of its
Plaor, Inc. subsidiary, have the Company striving to achieve positive
operating cash flow in the current fiscal year.
“We believe the online social casino’s steadily improving monetization
performance continues to reinforce our belief in the effectiveness of
bringing high quality and engaging slot machine games from some of the
top slot designers in the industry to a social casino setting,” said
Richard Corredera, CrowdGather’s Chief Operating Officer. “As the online
social casino has set new performance records in most of our key metrics
each quarter we believe the product is ready to scale out to a larger
audience and we are looking forward to building the brand further.”
The Company generated approximately $670,000 in total bookings during
the quarter, of which approximately $510,000 were from social gaming.
Bookings is a non-GAAP financial measure the Company uses in evaluating
its business health and performance. It should be considered
supplemental in nature and is not meant as a substitute for revenue
recognized in accordance with US GAAP.
The Company reported total assets of $9,901,540 as of the end of the
fiscal year with $4,048,014 in current liabilities resulting in
$5,853,526 of shareholders’ equity. Intangibles and intellectual
property related to its internet domain names, online communities, and
its highly rated social casino comprise the largest portion of the
Company’s asset base with a book value per share of $.05.
The Company also reported additional non-GAAP performance metrics on its
social gaming segment including an ABPU (“Average Bookings per User”) of
$.31, up 63% from the fiscal year’s first quarter ABPU of $.19. Average
daily bookings reported as $6,363 with an average DAU (“Daily Active
Users”) of 20,203, up 38% and down 15% from $4,605 and 23,783,
respectively. The average annual ABPU was also reported to be $.25 with
consistent growth achieved in each successive quarter of the fiscal year.
“In a little over a year since our acquisition of Plaor, we have seen
the revenues of its flagship Mega Fame Social Casino double while almost
every meaningful operating metric has increased in a positive manner,”
said Sanjay Sabnani, CrowdGather’s Chairman and CEO. “Overall our
company has cut costs dramatically and operating expenses are down
significantly, especially in the current fiscal first quarter where the
benefit of many of these reductions has just been achieved.”
Sabnani continued, “Despite the growth and success, we are still trying
to navigate out of our current convertible debt obligations so that we
can pursue more consistent and affordable growth financing. With some
nominal restructuring and modest infusion of working capital, we believe
CrowdGather could achieve profitability very quickly. As it stands, we
are already managing to run at almost breakeven on an operating basis
during these resource constrained times. With the right financing, we
will continue to grow our existing digital media businesses while we
launch our crowdfunding portal in 2016 in a shift towards increasing our
exposure to digital cannabis assets.”
About CrowdGather, Inc.
With its portfolio of special interest forums and enthusiast message
board communities, CrowdGather (www.crowdgather.com)
has created a centralized network to benefit forum members, forum
owners, and forum advertisers. CrowdGather provides a highly interactive
and informational social network for members, a management and
revenue-sharing resource for third-party forum owners, and a largely
untapped advertising network for marketers worldwide.
CrowdGather subsidiary Plaor,
a company that specializes in developing highly scalable multi-platform
games, is located in the heart of Boston's fast growing Innovation
District. Plaor produces Mega
Fame Casino, an innovative and highly rated social casino available
on iOS, Android & desktop. With a dedicated team of 7 employees, the
Plaor team is a highly skilled group of skilled artists, designers,
engineers, and analysts.
This press release contains forward-looking statements (as defined in
Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act of 1934, as amended) concerning future
events and the Company’s growth and business strategy. Words such
as “expects,” “will,” “intends,” “plans,” “believes,” “anticipates,”
“hopes,” “estimates,” and variations on such words and similar
expressions are intended to identify forward-looking statements.
Although the Company believes that the expectations reflected in such
forward-looking statements are reasonable, no assurance can be given
that such expectations will prove to have been correct. These statements
involve known and unknown risks and are based upon a number of
assumptions and estimates that are inherently subject to significant
uncertainties and contingencies, many of which are beyond the control of
the Company. Actual results may differ materially from those expressed
or implied by such forward-looking statements. Factors that could
cause actual results to differ materially include, but are not limited
to, changes in the Company’s business; general economic, industry and
market sector conditions; the ability to generate increased revenues
from the Company’s forums and Plaor’s social casino; the ability to
obtain additional financing; the ability to manage the Company's growth;
the ability to develop and market new technologies to respond to rapid
technological changes; competitive factors in the market(s) in
which the Company operates; and other events, factors and risks
disclosed from time to time in the Company’s filings with the Securities
and Exchange Commission. The Company expressly disclaims any obligations
or undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change in the
Company’s expectations with respect thereto or any change in events,
conditions or circumstances on which any statement is based.
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CROWDGATHER, INC.
CONSOLIDATED BALANCE SHEETS
APRIL 30, 2015 AND 2014
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2015
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2014
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ASSETS
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Current assets
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Cash
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$
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73,801
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$
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546,158
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Accounts receivable
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214,255
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130,709
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Investments
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21,480
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21,480
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Inventory
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31,744
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31,913
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Prepaid expenses and deposits
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37,389
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48,652
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Total current assets
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378,669
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778,912
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Property and equipment, net of accumulated depreciation of
$625,097 and $493,887, respectively
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41,143
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130,518
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Intangible and other assets, net of accumulated amortization of
$812,846 and $0, respectively
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7,664,328
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7,336,771
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Goodwill
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1,817,400
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---
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Total assets
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$
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9,901,540
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$
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8,246,201
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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Current liabilities
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Accounts payable
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$
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184,113
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$
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8,000
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Line of credit
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449,760
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---
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Accrued vacation
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96,564
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44,078
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Deferred revenue
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278,982
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---
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Other accrued liabilities
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243,821
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154,746
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Convertible note payable, net of discount
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223,316
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---
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Derivative liabilities
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819,240
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---
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Notes payable, net of discount
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1,455,859
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---
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Notes payable to related parties, net of discount
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296,359
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---
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Total current liabilities
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4,048,014
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206,824
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Stockholders’ equity
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Convertible Preferred Series B stock, $0.001 par value, 1,000,000
shares authorized, 0 and 1,000,000 shares issued and outstanding,
respectively
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---
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1,000,000
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Common stock, $0.001 par value, 975,000,000 shares authorized,
117,283,509 and 61,657,708 issued and outstanding, respectively
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117,284
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61,658
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Additional paid-in capital
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35,657,048
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29,748,961
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Accumulated deficit
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(29,892,286
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)
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(22,742,722
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Accumulated other comprehensive loss
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(28,520
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(28,520
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Total stockholders’ equity
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5,853,526
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8,039,377
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Total liabilities and stockholders’ equity
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$
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9,901,540
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$
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8,246,201
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CROWDGATHER, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED APRIL 30, 2015 AND 2014
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2015
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2014
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Revenue
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$
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2,399,842
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$
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1,537,051
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Cost of revenue
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552,635
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3,980
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Gross profit
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1,847,207
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1,533,071
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Operating expenses
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Payroll and related expenses
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2,330,539
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1,189,810
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Stock based compensation
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374,000
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661,400
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General and administrative
|
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3,387,789
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1,363,389
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Depreciation and amortization
|
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927,267
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128,879
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Impairment of goodwill and intangibles
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---
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4,500,202
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Loss on disposal of assets
|
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1,529,262
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1,408,985
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Total operating expenses
|
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8,548,857
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9,252,665
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Loss from operations
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(6,701,650
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(7,719,594
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Other income (expense), net
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Interest expense, net
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(514,686
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(5,376
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)
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Change in fair value of derivative liabilities
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(61,716
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)
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---
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Gain on extinguishment of debt
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5,088
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---
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Legal settlements, net
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125,000
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---
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Total other income (expense), net
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(446,314
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)
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(5,376
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)
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Net loss before provision for income taxes
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(7,147,964
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(7,724,970
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)
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Provision for income taxes
|
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1,600
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800
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|
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Net loss
|
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$
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(7,149,564
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)
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$
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(7,725,770
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)
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Weighted average shares outstanding- basic and diluted
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117,200,176
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60,082,803
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Net loss per share – basic and diluted
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$
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(0.06
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)
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$
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(0.13
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)
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View source version on businesswire.com: http://www.businesswire.com/news/home/20150706005242/en/
Copyright Business Wire 2015