[August 11, 2015] |
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Resonant Inc. Reports Second Quarter 2015 Financial Results and Provides Business Update
Resonant Inc. (NASDAQ: RESN), a creator of innovative filter designs for
radio frequency front-ends (RFFEs) for the mobile device industry, today
announced financial results for the second quarter ended June 30, 2015
and provided a business update.
Chief Executive of Resonant Terry Lingren stated, "During the quarter,
we made meaningful progress across our product portfolio. For our first
design, not only are we proceeding with the qualification process and
licensing agreement with our partnering filter manufacturer, but we also
are in ongoing discussions with a number of other prospective customers.
We look to capitalize on the industry's filter production and supply
challenges by evaluating several other single band projects thereby
increasing the potential for multiple revenue streams in the future.
"Importantly, the White Paper (News - Alert) we published in June showcases the power
of our team, tools and technology. The duplexer detailed in the White
Paper, while smaller, has comparable, and in some cases better,
performance than the best available duplexers in this Band. In addition,
and as anticipated, we have been able to significantly accelerate our
design cycle time since completing our first-generation design. While we
have published only the performance of our first generation duplexer for
Band 3, we have progressed very rapidly on our work to shrink the size
and are now working on a third generation that is smaller still. This
most recent and accelerated progress highlights how our capabilities can
rapidly create and improve designs. Looking ahead, we plan to deliver
more single-band products as well as tunable filters that reduce costs
and create new opportunities for manufacturers, the OEMs and ultimately,
the end phone consumer," concluded Mr. Lingren.
Business Update
During the quarter and subsequent weeks, the Company made progress in
several key areas:
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Published a white paper titled, "Radically
Reducing the Cost and Size of Cellphone RF Filters to Fuel the Mobile
Revolution," that for the first time publicly documented
Resonant's advantages validated on large volumes of real parts. It
explains how Resonant's Infinite (News - Alert) Synthesized Networks™ (ISN™)
technology can be used to design Surface Acoustic Wave (SAW) filters
that equal or exceed the performance of more expensive Bulk Acoustic
Wave (BAW) designs while also reducing the size.
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Product 1: Using Resonant's ISN tools and technology, the Company
commenced work on a third-generation Band 3 duplexer, fabricated with
TC-SAW resonators while maintaining BAW-like performance and measuring
1.6x1.2mm. This is a significant size reduction from the 1.8x1.4mm
TC-SAW described in Resonant's White Paper published on June 30, 2015
and the second-generation 1.7x1.3mm duplexer, which provided even
better performance than the first generation. Both generations of the
Band 3 design are being marketed by the Company and a partnering
filter manufacturer (also known as a fabrication facility, or Fab).
Concurrently, the filter manufacturer has started their qualification
process, which is required prior to design acceptance.
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Product 2: Resonant has received first parts from its second product
design, which it plans to complete no later than the first quarter of
2016. This design is being developed with a second Fab for sale
directly into their existing channel of RFFE manufacturers and mobile
device OEMs. The Fab has the option to license the final design, which
uses its existing manufacturing techniques. Terms for a license have
not been finalized. While the aspects of the project remain
confidential, the design is intended to replace a BAW filter with a
SAW filter for another hard band which, like Band 3, is one of the
large worldwide bands.
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Tunable filter: Resonant remains on track to complete a tunable RF
filter prototype by the end of 2015. The design in development is
based on discussions with several prospective customers and receipt of
specifications from two of them. Following completion of the
prototype, Resonant will seek to license tunable designs to
integrators and fabricators.
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Added industry veteran Thomas R. Joseph, PhD, to Resonant's Board of
Directors. Having performed some of the earliest work on SAW
resonators, and completing a career that included working most
recently at RFMD (News - Alert) (now Qorvo), Dr. Joseph has successfully developed
technologies and grown product lines in the cellular products industry
and has worked with all major SAW and BAW manufacturers.
Financial Results for the Second Quarter1
and Year to Date
-
Ended the Second Quarter with $9.2 million in working capital compared
with $13.2 million of working capital at December 31, 2014. Management
believes it has sufficient cash to support planned operations through
the first half of 2016.
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Research and development (R&D) expenses totaled approximately $1.1
million in the Second Quarter compared with $969,000 a year ago, due
to increased costs associated with increased headcount and a greater
number of projects in development. Year to date, R&D expense totaled
$2.1 million, up from $1.4 million a year ago.
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General and administrative (G&A) expenses totaled approximately
$943,000 in the Second Quarter, compared with $455,000 a year ago,
which was the first quarter of operations as a public company. Year to
date, G&A expenses were $2.1 million, compared with $1.0 million in
the first six months of 2014.
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Operating loss increased to $2.2 million for the Second Quarter, from
$1.5 million a year ago. The increased loss primarily reflected
increased R&D activities and G&A expenses consistent with planned
growth and being a public company. Year to date, the operating loss
totaled approximately $4.4 million, up from $2.5 million a year ago.
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The net loss totaled approximately $2.1 million, or $0.31 per fully
diluted share, for the Second Quarter, based on 7.2 million shares
outstanding. This compared with a net loss in the same quarter last
year of $2.2 million, or $0.69 per fully diluted share, based on 3.1
million shares outstanding. Year to date, the net loss totaled $4.4
million, or $0.63 per share, on 7.1 million shares outstanding,
compared with a net loss of $6.1 million, or $2.95 per share, on 2.1
million shares outstanding, for the 2014 six month period.
_______________ 1 Financial data is for the second
quarter (Second Quarter) and year to date ended June 30, 2015.
Comparisons are to the comparable periods in 2014.
Conference Call
Resonant will host a conference call today at 2:00 p.m. Pacific/5:00
p.m. Eastern time. Investors interested in participating in the live
call can dial 1-877-407-3982 from the U.S. and 1-201-493-6780 from
outside the U.S. A user-directed presentation will accompany the call
and can be downloaded at: https://pgi.webcasts.com/starthere.jsp?ei=1071918
and will be available for 60 days.
A telephone replay will also be available approximately two hours after
the call concludes through August 18 by dialing 1-877-870-5176 from the
U.S., or 1-858-384-5517 from international locations, and entering
Replay Pin Number: 13615282. The replay will also be posted to the IR
section of the Resonant website at: http://ir.resonant.com/ir-calendar.
About Resonant Inc.
Resonant (NASDAQ: RESN) is a late-stage development company creating
innovative filter designs for radio frequency front-ends (RFFEs) for the
mobile device industry. The RFFE is the circuitry in a mobile device
responsible for analog signal processing and is located between the
device's antenna and its digital baseband. Filters are a critical
component of the RF front-end that select the desired radio frequency
signals and rejects unwanted signals.
Using a patented, fundamentally new technology called Infinite
Synthesized Networks™ (ISN), Resonant has developed a new method of
designing RF filters that can displace conventional filters by providing
significant cost and size reductions, fewer components and improved
performance. ISN can improve Surface Acoustic Wave (SAW) filters to work
in difficult, Bulk Acoustic Wave (BAW) bands with performance that is
competitive with best in class products that exist on the market today.
These capabilities will also allow Resonant to create filter designs
that tune to multiple bands. Resonant plans to market these tunable
designs which would replace several existing filters while significantly
reducing the overall size and cost of the RFFE. For more information,
please visit www.resonant.com.
Safe Harbor for Forward-Looking Statements
This press release contains forward-looking statements that include the
following subjects, among others: the status of filter designs under
development, the prospects for licensing filter designs upon completion
of development, plans for other filter designs not currently in
development, potential customers for Resonant's designs, the timing and
amount of future royalty streams, the expected duration of Resonant's
capital resources, hiring plans, the impact of Resonant's designs on the
mobile device market, and its business strategy. Forward-looking
statements are made as of the date of this document and are inherently
subject to risks and uncertainties which could cause actual results to
differ materially from those in the forward-looking statements,
including, without limitation, the following: Resonant's limited
operating history (particularly as a new public company); Resonant's
ability to complete designs that meet customer specifications; the
ability of its customers (or their manufacturers) to fabricate our
designs in commercial quantities; dependence on a small number of
customers; the ability of Resonant's designs to significantly lower
costs compared to other designs and solutions; the risk that the intense
competition and rapid technological change in our industry renders
Resonant's designs less useful or obsolete; Resonant's ability to find,
recruit and retain the highly skilled personnel required for the design
process in sufficient numbers to support growth; the ability to manage
growth; and general market, economic and business conditions. Additional
factors that could cause actual results to differ materially from those
anticipated by Resonant's forward-looking statements are under the
captions "Risk Factors" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" in Resonant's most recent
Annual Report (Form 10-K) or Quarterly Report (Form 10-Q) filed with the
Securities and Exchange Commission. Forward-looking statements are made
as of the date of this release, and the Company expressly disclaims any
obligation or undertaking to update forward-looking statements.
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Resonant Inc.
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Condensed Consolidated Statements of Operations
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(Unaudited)
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Three Months Ended June 30,
2015
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Three Months Ended June 30,
2014
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Six Months Ended June 30,
2015
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Six Months Ended June 30,
2014
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REVENUE
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OPERATING EXPENSES
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R&D expenses
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$
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1,094,000
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$
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969,000
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$
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2,091,000
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$
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1,404,000
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G&A expenses
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943,000
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455,000
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2,070,000
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977,000
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Depreciation and amortization
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116,000
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62,000
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227,000
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75,000
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TOTAL OPERATING EXPENSES
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2,153,000
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1,486,000
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4,388,000
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2,456,000
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OPERATING LOSS
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(2,153,000
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)
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(1,486,000
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)
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(4,388,000
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)
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(2,456,000
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)
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OTHER INCOME (EXPENSE)
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Interest income
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8,000
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2,000
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16,000
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2,000
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Interest expense
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0
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(2,099,000
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)
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0
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(2,808,000
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)
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Fair value adjustments to warrant and derivative liabilities
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0
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252,000
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0
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(2,015,000
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)
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Other income
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0
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1,164,000
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0
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1,164,000
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TOTAL OTHER INCOME (EXPENSE)
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8,000
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(681,000
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16,000
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(3,657,000
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)
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LOSS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
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(2,145,000
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)
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(2,167,000
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)
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(4,372,000
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)
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(6,113,000
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)
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Provision for income taxes
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-
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0
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(1,000
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)
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(1,000
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)
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NET (News - Alert) LOSS
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$
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(2,145,000
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)
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$
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(2,167,000
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)
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$
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(4,373,000
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)
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$
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(6,114,000
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)
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NET LOSS PER SHARE - BASIC AND DILUTED
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$
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(0.31
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)
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$
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(0.69
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)
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$
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(0.63
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)
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$
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(2.95
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)
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Weighted average shares outstanding - basic and diluted
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7,160,890
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3,136,955
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7,119,569
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2,074,380
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Resonant Inc.
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Condensed Consolidated Balance Sheets
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June 30, 2015
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December 31, 2014
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(Unaudited)
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(Audited)
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ASSETS
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Cash and cash equivalents
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$
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1,782,000
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$
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5,803,000
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Investments held-to-maturity
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8,000,000
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7,999,000
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TOTAL CURRENT ASSETS
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10,003,000
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13,908,000
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PROPERTY AND EQUIPMENT, NET
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993,000
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1,041,000
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TOTAL NONCURRENT ASSETS
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768,000
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515,000
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TOTAL ASSETS
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$
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11,764,000
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$
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15,464,000
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LIABILITIES AND STOCKHOLDERS' EQUITY
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TOTAL CURRENT LIABILITIES
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$
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775,000
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$
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720,000
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TOTAL LONG-TERM LIABILITIES
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37,000
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54,000
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STOCKHOLDERS' EQUITY
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Common stock
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7,000
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7,000
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Additional paid-in capital
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36,515,000
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35,880,000
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Accumulated deficit
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(25,570,000
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)
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(21,197,000
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)
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TOTAL STOCKHOLDERS' EQUITY
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10,952,000
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14,690,000
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
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$
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11,764,000
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$
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15,464,000
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View source version on businesswire.com: http://www.businesswire.com/news/home/20150811006320/en/
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