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September 7, 2016

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Reprints Desk Parent Company Reports Preliminary Financial Results for Fiscal Fourth Quarter and Full Year 2016

On a Preliminary Basis, Total Article Galaxy Revenue Increased by 13% to a Record $24.1 Million in Fiscal 2016, with 59 Article Galaxy SaaS Platform Deployments at Year End

ENCINO, Calif. – September 6, 2016 – Research Solutions, Inc. (OTCQB: RSSS), a pioneer in providing on-demand access to scientific, technical and medical (STM) information for life science companies, academic institutions, and other research-intensive organizations, reported preliminary results for its fiscal fourth quarter and full year ended June 30, 2016. All quarterly comparisons are to the same year-ago quarter.

Beginning this quarter, the company has begun to report its Article Galaxy’s subscriptions and transactions results separately: Article Galaxy SaaS Platforms represent customer deployments that provide premium access to Article Galaxy on a subscription basis, and Article Galaxy Transactions that represent all customer transactions conducted via both premium and standard access.

Fiscal Fourth Quarter 2016 Highlights

  • Total revenue was up 10% to 8.3 million, with adjusted EBITDA up 61% to $162,000.
  • Active Article Galaxy Transaction customer accounts increased 12% to 909.
  • Article Galaxy transactions increased 17% to a 192,000, increasing related revenue by 12% to $6.0 Million and gross profit up 8% to $1.3 million. (See definitions of transactions and active customer accounts in the section, “About Transactions and Active Customer Accounts,” below.)

Fiscal Full Year 2016 Highlights

  • Total revenue was up 8% to a $34.4 million, with adjusted EBITDA lower by 37% to $389,000.
  • Number of Article Galaxy SaaS Platform deployments increased 210% to 59, increasing related revenue by 127% to $402,000, and subscription-based annual billing run-rate by 146% to $581,000.
  • Article Galaxy transactions increased 23% to 742,000, driving related revenue up 12% to a record $23.7 Million and gross profit up 4% to $5.3 million.
  • Active Article Galaxy Transaction customer accounts increased 14% to 873, with corporate customers up 9% to 733, and academic customers up 48% to 140.
  • Cash and equivalents at June 30, 2016 totaled $6.1 million versus $1.4 million at June 30, 2015

Management Commentary

“Throughout fiscal 2016, Article Galaxy platform deployments and transactions continued to gain momentum,” said Research Solutions President and CEO, Peter Derycz. “These strong results reflect our increasing focus on our newer line of higher margin, subscription-based Article Galaxy SaaS Platform deployments that provide premium features and functionality for our customers.

“In fact, by year end, we had 59 premium platform deployments, or nearly three times more than last year, which were generating an annual run rate of $581,000 in subscription-based revenue. We have previously combined Article Galaxy Transactions and SaaS Platforms into one line, but now given this significant amount of subscription revenue and the difference in gross margin, it seemed appropriate to begin breaking it out.

“Further, we’re very excited about how this new business line is developing. While revenue from Article Galaxy Transactions is still many times greater than revenue from Article Galaxy SaaS Platforms, Article Galaxy SaaS Platforms gross margin has been at 82%, or about four times Article Galaxy Transactions at 22%. Further, while Article Galaxy Transactions represent repeat revenue, Article Galaxy SaaS Platforms generate more predicable recurring revenue and reflects the strengthening leverage in our business model.” 

Preliminary Fiscal Fourth Quarter and Full Year 2016 Financial Summary Tables

The following financial summary tables are preliminary and may be updated with the filing of the company’s upcoming Annual Report on Form 10-K for the year ended June 30, 2016. The company plans to release on Tuesday, September, 20, 2016 its complete financial results for the year ended June 30, 2016, which will be available in the investor relations section of the company’s website at www.researchsolutions.com.

 

 

 

Quarter Ended June 30,

 

 

 

2016

2015

Change

% Change

 

Revenue:

 

 

 

 

 

 

Article Galaxy SaaS Platforms

$       129,963

$         32,000

$         97,963

306.1%

 

 

Article Galaxy Transactions

       6,025,972

       5,382,124

         643,848

12.0%

 

 

Reprints and ePrints

       2,141,466

       2,166,382

           (24,916)

-1.2%

 

Total Revenue

       8,297,401

       7,580,506

         716,895

9.5%

 

Gross profit:

 

 

 

 

 

 

Article Galaxy SaaS Platforms

         106,537

             24,256

 

0.0%

 

 

Article Galaxy Transactions

       1,323,080

       1,220,826

         102,254

8.4%

 

 

Reprints and ePrints

         155,385

         218,095

           (62,710)

-28.8%

 

Total Gross profit

       1,585,002

       1,463,177

             39,544

2.7%

 

Gross profit as a % of revenue:

 

 

 

 

 

 

Article Galaxy SaaS Platforms

82.0%

75.8%

6.2%

 

 

 

Article Galaxy Transactions

22.0%

22.7%

-0.7%

 

 

 

Reprints and ePrints

7.3%

10.1%

-2.8%

 

 

Total Gross profit

19.1%

19.3%

-0.2%

 

 

  General and Administrative Expenses

1,423,069

1,362,790

(60,279)

-4.4%

 

  Depreciation and Amortization

             29,702

             16,934

           (12,768)

-75.4%

 

  Stock-based Compensation

         162,192

         506,634

         344,442

68.0%

 

  Foreign Currency Translation Loss

                 994

               4,004

              3,010

75.2%

 

Total Operating Expenses

       1,615,957

       1,890,362

         274,405

14.5%

 

 

Income (loss) from operations

           (30,955)

         (427,185)

         396,230

92.8%

 

 

Net (loss) from continuing operations

          (52,989)

         (439,257)

         386,268

87.9%

 

Net income from discontinued operations

                     -  

         163,453

         (163,453)

-100.0%

 

Net income (loss)

(52,989)

         (275,804)

         222,815

80.8%

 

 

Adjusted EBITDA (a Non-GAAP term, see definition and discussion, below)

         161,933

         100,387

             61,546

61.3%

 

Article Galaxy Transactions:

 

 

 

 

 

 

Transaction Count

$       191,376

$       163,137

$        28,239

17.3%

 

 

Corporate Customers

                 756

                 704

                   52

7.4%

 

 

Academic Customers

                 153

                 107

                   46

43.0%

 

 

Total Customers

                 909

                 811

                   98

12.1%

 

 

 

 

Year Ended June 30,

 

 

 

2016

2015

Change

% Change

 

Revenue:

 

 

 

 

 

 

Article Galaxy SaaS Platforms

$       402,038

$       176,873

$       225,165

127.3%

 

 

Article Galaxy Transactions

     23,690,073

     21,200,101

       2,489,972

11.7%

 

 

Reprints and ePrints

     10,271,834

     10,523,169

         (251,335)

-2.4%

 

Total Revenue

     34,363,945

     31,900,143

       2,463,802

7.7%

 

Gross profit:

 

 

 

 

 

 

Article Galaxy SaaS Platforms

         328,116

         140,296

         187,820

133.9%

 

 

Article Galaxy Transactions

       5,306,527

       5,088,938

         217,589

4.3%

 

 

Reprints and ePrints

         866,022

          946,967

           (80,945)

-8.5%

 

Total Gross profit

       6,500,665

       6,176,201

         324,464

5.3%

 

Gross profit as a % of revenue:

 

 

 

 

 

 

Article Galaxy SaaS Platforms

81.6%

79.3%

2.3%

 

 

 

Article Galaxy Transactions

22.4%

24.0%

-1.6%

 

 

 

Reprints and ePrints

8.4%

9.0%

-0.6%

 

 

Total Gross profit

18.9%

19.4%

-0.4%

 

 

  General and Administrative Expenses

6,111,345

5,563,040

(548,305)

-9.9%

 

  Depreciation and Amortization

             90,846

         174,819

             83,973

48.0%

 

  Stock-based Compensation

         713,890

         834,672

         120,782

14.5%

 

  Foreign Currency Translation Loss

               5,287

             98,122

             92,835

94.6%

 

Total Operating Expenses

       6,921,368

       6,670,653

         (250,715)

-3.8%

 

 

Income (loss) from operations

         (420,703)

         (494,452)

             73,749

14.9%

 

 

Net (loss) from continuing operations

         (497,858)

        (542,185)

             44,327

8.2%

 

Net income from discontinued operations

                     -  

       1,316,404

     (1,316,404)

-100.0%

 

Net income (loss)

       (497,858)

         774,219

     (1,272,077)

-164.3%

 

 

Adjusted EBITDA (a non-GAAP term)

         389,320

         613,161

         (223,841)

-36.5%

 

Article Galaxy SaaS Platforms:

     

 

 

 

Annual License Billing Run Rate

$       580,902

$       236,424

$       344,478

146%

 

 

Deployments

                  59

                   19

                   40

211%

 

Article Galaxy Transactions:

 

 

 

 

 

 

Transaction Count

$       741,849

$       602,413

$       139,436

23.1%

 

 

Corporate Customers

                 733

                 673

                   60

8.9%

 

 

Academic Customers

                 140

                   95

                   46

48.0%

 

 

Total Customers

                 873

                 768

                 106

13.8%

 

Conference Call

Research Solutions President and CEO, Peter Derycz, and CFO Alan Urban will host an investor conference call on September 20, 2016 to discuss the company’s results and the outlook, followed by a question and answer period. Complete financial results will be issued in a press release prior to the call.

Date:                                           Tuesday, September 20, 2016

Time:                                           4:30 p.m. Eastern time (1:30 p.m. Pacific time)

Toll-free dial-in number:              1-855-327-6837

International dial-in number:       1-631-891-4304

Conference ID:                            10001638

Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. 

The conference call will be broadcast live and available for replay here, as well via the investor relations section of the company’s website at www.researchsolutions.com.  

A replay of the conference call will be available after 8:00 p.m. Eastern time on the same day through October 14, 2016.

Toll-free replay number:              1-877-870-5176

International replay number:       1-858-384-5517

Replay ID:                                   10001638

About Article Galaxy SaaS Platform

Article Galaxy is cloud-based SaaS solution that consists of proprietary software and Internet-based interfaces that allow customers to initiate orders, manage transactions, obtain reporting, automate authentication, improve seamless connectivity to corporate intranets, and enhance the information resources they already own, or have access to via subscriptions or internal libraries, as well as organize workgroups to collaborate around scientific information.

As a cloud-based SaaS solution, Article Galaxy is deployed as a single system across the company’s entire customer base. Customers access Article Galaxy securely through online web interfaces and via web service APIs, which enable customers to leverage Article Galaxy features and functionality from within proprietary and other 3rd party software systems. Article Galaxy can also be configured to satisfy a customer’s individual preferences in areas such as user experience, business processes, and spend management. As a SaaS solution, Article Galaxy benefits from efficiencies in scalability, stability and development costs, resulting in significant advantages versus multiple instance or installed desktop software alternatives. The company leverages these technical efficiencies to fuel rapid innovation and competitive advantage.

About Article Galaxy Transactions and Active Customer Accounts

The company defines a transaction as an order for a unit of copyrighted content fulfilled or managed in Article Galaxy. Active Customer Accounts are defined as the sum of the average whole and partial customers for the respective quarter or year. A whole customer is one with at least one Article Galaxy transaction in every month of the respective quarter or year. A partial customer is one with at least one Article Galaxy transaction in one or more months, but not every month of the respective quarter or year.

For example, if a customer has at least one transaction in every month of the quarter, they are counted as a whole customer. However, if they have at least one transaction in only one of the three months of the quarter, they are counted as a partial customer (one third of a customer).

On an annual basis, if a customer has at least one transaction in every month of the year, they are counted as a whole customer. However, if they have at least one transaction in only six of the 12 months of the year, they are counted as a partial customer (one half of a customer).

Use of Non-GAAP Measure – Adjusted EBITDA

Research Solutions’ management evaluates and makes operating decisions using various financial metrics. In addition to our GAAP results, management also considers the non-GAAP measure of Adjusted EBITDA. Management believes that this non-GAAP measure provides useful information about our operating results.

The attached tables provide a reconciliation of this non-GAAP financial measure with the most directly comparable GAAP financial measure. Adjusted EBITDA is defined as net income (loss), plus interest expense, other income (expense), foreign currency transaction loss, provision for income taxes, depreciation and amortization, stock-based compensation, income (loss) from discontinued operations, and other potential adjustments that may arise.

On a preliminary basis, set forth below is a reconciliation of Adjusted EBITDA to net income (loss):

 

Quarter Ended June 30,

 

Year Ended June 30,

 

 

 

2016

2015

 

2016

2015

Net Income (loss)

$       (52,989)

$     (275,804)

 

$       (497,858)

$         774,219

 

Add (deduct):

 

 

 

 

 

 

 

Interest expense

             3,000

             6,390

 

             17,382

             18,056

 

 

Other (income) expense

           13,382

               (317)

 

             31,611

             (1,215)

 

 

Foreign currency translation loss

               994

             4,004

 

               5,287

             98,122

 

 

Provision for income taxes

            5,652

             5,999

 

             28,162

             30,892

 

 

Depreciation and amortization

           29,702

           16,934

 

             90,846

           174,819

 

 

Stock-based compensation

         162,192

         506,634

 

         713,890

           834,672

 

 

(Income) loss from discontinued operations

                   -  

       (163,453)

 

                     -  

     (1,316,404)

 

Adjusted EBITDA

$       161,933

$       100,387

 

$         389,320

$         613,161

 

About Research Solutions

Research Solutions, Inc. (RSSS) is a pioneer in providing on-demand access to scientific, technical, and medical (STM) information for life science companies, academic institutions and other research-intensive organizations. More than 70 percent of the top 25 pharmaceutical companies in the world rely on services powered by Research Solutions’ wholly owned subsidiary, Reprints Desk, Inc. Article Galaxy, the company's cloud-based solution, gives customers access to the over one million newly published articles each year in addition to tens of millions of articles previously published, helping them to create and speed discoveries, save time and money, and remain copyright-compliant. Research Solutions has arrangements with numerous STM content publishers that allow electronic access and distribution of their content. In addition to serving end users of content, the company also serves STM publishers by facilitating compliance with applicable copyright laws. For more information about Research Solutions, visit www.researchsolutions.com.

About Reprints Desk

Reprints Desk improves how journal articles and clinical reprints are accessed, procured, and legally used in evidence-based promotions, medical affairs, and scientific, technical, and medical (STM) research. Organizations fueled by intellectual property choose Reprints Desk because of its collaborative business approach, efficient article supply system and services, and commitment to quality post-sales support. Reprints Desk has ranked #1 in every Document Delivery Vendor Scorecard from industry analyst and advisory firm Outsell Inc. since 2008. For more information about Reprints Desk, visit www.reprintsdesk.com.

Cautionary Note Regarding Forward-Looking Statements               

Certain matters discussed in this press release may be forward-looking statements. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions; general competitive factors; acceptance of the Company's products in the market; the Company's success in obtaining new customers; the Company's success in technology and product development; the Company's ability to execute its business model and strategic plans; the Company's success in integrating acquired entities and assets, and all the risks and related information described from time to time in the Company's filings with the Securities and Exchange Commission ("SEC"), including the financial statements and related information contained in the Company's Annual Report on Form 10-K and interim Quarterly Reports on Form 10-Q. The Company assumes no obligation to update the cautionary information in this release.

Research Solutions, Inc. and Subsidiaries

Preliminary Consolidated Balance Sheets

 

 

Preliminary

 

Audited

 

 

June 30, 2016

 

June 30, 2015

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

6,076,875

 

$

1,354,158

Accounts receivable, net of allowance of $52,084 and $69,731, respectively

 

 

5,761,860

 

 

5,162,184

Prepaid expenses and other current assets

 

 

164,610

 

 

70,195

Prepaid royalties

 

 

173,665

 

 

372,581

Total current assets

 

 

12,177,010

 

 

6,959,118

Other assets:

 

 

 

 

 

 

Property and equipment, net of accumulated depreciation of $642,051 and $585,410, respectively

 

 

82,207

 

 

83,238

Intangible assets, net of accumulated amortization of $546,679 and $513,605, respectively

  

 

104,848

 

 

-

Deposits and other assets

 

 

7,594

 

 

9,471

Total assets

 

$

12,371,659

 

$

7,051,827

Liabilities and Stockholders’ Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$

5,690,768

 

$

5,611,453

Deferred revenue

 

 

639,834

 

 

347,558

Total current liabilities

 

 

6,330,602

 

 

5,959,011

Commitments and contingencies

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

Preferred stock; $0.001 par value; 20,000,000 shares authorized; no shares issued and outstanding

 

 

 

 

Common stock; $0.001 par value; 100,000,000 shares authorized; 23,809,593 and 18,242,125 shares issued and outstanding, respectively

 

 

23,810

 

 

18,242

Additional paid-in capital

 

 

21,642,763

 

 

16,188,358

Accumulated deficit

 

 

(15,582,295)

 

 

(15,084,437)

Accumulated other comprehensive loss

 

 

(43,221)

 

 

(29,347)

Total stockholders’ equity

 

 

6,041,057

 

 

1,092,816

Total liabilities and stockholders’ equity

 

$

12,371,659

 

$

7,051,827

 

Research Solutions, Inc. and Subsidiaries

Preliminary Consolidated Statements of Operations and Other Comprehensive Income (Loss)

 

 

Preliminary

Year Ended June 30, 2016

 

Audited

Year Ended June 30, 2015

Revenue

 

$

34,363,945

 

$

31,900,143

Cost of revenue

 

 

27,863,280

 

 

25,723,942

Gross profit

 

 

6,500,665

 

 

6,176,201

Operating expenses:

 

 

 

 

 

 

Selling, general and administrative

 

 

6,830,522

 

 

6,495,834

Depreciation and amortization

 

 

90,846

 

 

174,819

Total operating expenses

 

 

6,921,368

 

 

6,670,653

Loss from operations

 

 

(420,703)

 

 

(494,452)

Other expenses:

 

 

 

 

 

 

Interest expense

 

 

(17,382)

 

 

(18,056)

Other income (expense)

 

 

(31,611)

 

 

1,215

Total other expenses

 

 

(48,993)

 

 

(16,841)

Loss from continuing operations before provision for income taxes

 

 

(469,696)

 

 

(511,293)

Provision for income taxes

 

 

(28,162)

 

 

(30,892)

Loss from continuing operations

 

 

(497,858)

 

 

(542,185)

Discontinued operations:

 

 

 

 

 

 

Loss from discontinued operations

 

 

-

 

 

(395,344)

Gain from deconsolidation of former French subsidiary

 

 

-

 

 

1,711,748

Income from discontinued operations

 

 

-

 

 

1,316,404

Net income (loss)

 

 

(497,858)

 

 

774,219

Other comprehensive income (loss):

Foreign currency translation

 

 

(13,874)

 

 

(10,764)

Comprehensive income (loss)

 

$

(511,732)

 

$

763,455

Basic income (loss) per common share:

 

 

 

 

 

 

Loss per share from continuing operations

 

$

(0.03)

 

$

(0.03)

Income (loss) per share from discontinued operations

 

$

-

 

$

0.07

Net income (loss) per share

 

$

(0.03)

 

$

0.04

Basic weighted average common shares outstanding

 

 

17,769,827

 

 

17,445,812

Diluted income (loss) per common share:

 

 

 

 

 

 

Loss per share from continuing operations

 

(0.03)

 

(0.03)

Income (loss) per share from discontinued operations

 

$

-

 

$

0.07

Net income (loss) per share

 

$

(0.03)

 

$

0.04

Diluted weighted average common shares outstanding

 

 

17,769,827

 

 

17,962,157

 

Research Solutions, Inc. and Subsidiaries

Preliminary Consolidated Statement of Stockholders' Equity

For the Years Ended June 30, 2016 and 2015

   

 

 

 

Additional

 

 

 

Other

 

Total

 

 

Common Stock

 

Paid-in

 

Accumulated

 

Comprehensive

 

Stockholders'

 

 

    Shares       Amount

 

Capital

 

Deficit

 

Income

 

Equity

Balance, July 1, 2014

 

 

17,600,242

 

 

 

17,600

 

 

15,406,033

 

 

(15,858,656)

 

 

16,097

 

 

(418,926)

Fair value of vested stock options

 

 

-

 

 

 

-

 

 

488,437

 

 

-

 

 

-

 

 

488,437

Fair value of common stock issued for services

 

 

50,000

 

 

 

50

 

 

52,450

 

 

-

 

 

-

 

 

52,500

Fair value of vested restricted common stock

 

 

647,353

 

 

 

647

 

 

239,456

 

 

 

 

 

 

 

 

240,103

Repurchase of common stock

 

 

(55,470)

 

 

 

(55)

 

 

(51,650)

 

 

-

 

 

-

 

 

(51,705)

Modification cost of warrants issued to directors

 

 

-

 

 

 

-

 

 

53,632

 

 

-

 

 

-

 

 

53,632

Elimination of cumulative translation adjustment upon deconsolidation of former French subsidiary

 

 

-

 

 

 

-

 

 

-

 

 

-

 

 

(34,680)

 

 

(34,680)

Net loss

 

 

-

 

 

 

-

 

 

-

 

 

774,219

 

 

-

 

 

774,219

Foreign currency translation

 

 

 -

 

 

 

-

 

 

-

 

 

-

 

 

(10,764)

 

 

(10,764)

Balance, June 30, 2015

 

 

18,242,125

 

 

 

18,242

 

 

16,188,358

 

 

(15,084,437)

 

 

(29,347)

 

 

1,092,816

Fair value of vested stock options

 

 

-

 

 

 

-

 

 

305,734

 

 

-

 

 

-

 

 

305,734

Common stock issued for cash

 

 

5,200,000

 

 

 

5,200

 

 

4,778,630

 

 

-

 

 

-

 

 

4,783,830

Fair value of vested restricted common stock

 

 

414,366

 

 

 

415

 

 

377,926

 

 

 

 

 

 

 

 

378,341

Repurchase of common stock

 

 

(46,898)

 

 

 

(47)

 

 

(37,700)

 

 

-

 

 

-

 

 

(37,747)

Modification cost of options issued to directors

 

 

-

 

 

 

-

 

 

29,815

 

 

-

 

 

-

 

 

29,815

Net loss

 

 

-

 

 

 

-

 

 

-

 

 

(497,858)

 

 

-

 

 

(497,858)

Foreign currency translation

 

 

-

 

 

 

-

 

 

-

 

 

-

 

 

(13,874)

 

 

(13,874)

Balance, June 30, 2016

 

 

23,809,593

 

 

$

23,810

 

$

21,642,763

 

$

(15,582,295)

 

$

(43,221)

 

$

6,041,057

 

Research Solutions, Inc. and Subsidiaries

Preliminary Consolidated Statements of Cash Flows

 

 

Preliminary

Year Ended June 30, 2016

 

 

Audited

Year Ended June 30, 2015

Cash flow from operating activities:

 

 

 

 

 

Net income (loss)

 

$

(497,858)

 

 

$

774,219

Adjustment to reconcile net income (loss) to net cash provided by (used in) operating activities of continuing operations:

 

 

 

 

 

 

 

Loss from discontinued operations

 

 

-

 

 

 

395,344

Gain from deconsolidation of former French subsidiary

 

 

-

 

 

 

(1,711,748)

Depreciation and amortization

 

 

90,846

 

 

 

174,819

Fair value of vested stock options

 

 

305,734

 

 

 

488,437

Fair value of common stock issued for services

 

 

-

 

 

 

52,500

Fair value of vested restricted common stock

 

 

378,341

 

 

 

240,103

Modification cost of warrants issued to directors

 

 

-

 

 

 

53,632

Modification cost of options issued to directors

 

 

29,815

 

 

 

-

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

 

(599,676)

 

 

 

(894,950)

Prepaid expenses and other current assets

 

 

(94,415)

 

 

 

12,836

Prepaid royalties

 

 

198,916

 

 

 

180,108

Deposits and other assets

 

 

1,877

 

 

 

238

Accounts payable and accrued expenses

 

 

79,315

 

 

 

(138,241)

Deferred revenue

 

 

292,276

 

 

 

75,311

Net cash provided by (used in) operating activities from continuing operations

 

 

185,171

 

 

 

(297,392)

Net cash used in operating activities of discontinued operations

 

 

 -

 

 

 

 (34,503)

Net cash provided by (used in) operating activities

 

 

185,171

 

 

 

(331,895)

 

 

 

 

 

 

 

 

Cash flow from investing activities:

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

(58,376)

 

 

 

(67,555)

Purchase of intangible assets

 

 

(137,922)

 

 

 

(27,666)

Net cash used in investing activities from continuing operations

 

 

(196,298)

 

 

 

(95,221)

Cash flow from financing activities:

 

 

 

 

 

 

 

Common stock issued for cash

 

 

4,783,830

 

 

 

-

Advance under line of credit

 

 

1,000,000

 

 

 

2,000,000

Payment under line of credit

 

 

(1,000,000)

 

 

 

(2,000,000)

Common stock repurchase and retirement

 

 

(37,747)

 

 

 

(51,705)

Net cash provided by (used in) financing activities of continuing operations

 

 

4,746,083

 

 

 

(51,705)

Net cash used in financing activities of discontinued operations

 

 

-

 

 

 

(67,515)

Net cash provided by (used in) financing activities

 

 

4,746,083

 

 

 

(119,220)

Effect of exchange rate changes

 

 

(12,239)

 

 

 

15,827

Net increase (decrease) in cash and cash equivalents

 

 

4,722,717

 

 

 

(530,509)

Cash and cash equivalents, beginning of period

 

 

1,354,158

 

 

 

1,884,667

Cash and cash equivalents, end of period

 

$

6,076,875

 

 

$

1,354,158

Supplemental disclosures of cash flow information:

 

 

 

 

 

 

 

 

Cash paid for income taxes

 

$

28,162

 

 

$

30,892

 

Cash paid for interest

 

$

17,382

 

 

$

18,056

 

 

Source: Research Solutions