AutoWeb, Inc. - Quarter Report: 2021 March (Form 10-Q)

Delaware		33-0711569
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)

Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, par value $0.001 per share	AUTO	The Nasdaq Capital Market

Large accelerated filer  ☐	Accelerated filer  ☐
Non-accelerated filer  ☐	Smaller reporting company  ☒
	Emerging growth company  ☐

	INDEX
			Page
	PART I. FINANCIAL INFORMATION
ITEM 1.	Financial Statements
	Unaudited Condensed Consolidated Balance Sheets as of March 31, 2021, and December 31, 2020		3
	Unaudited Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2021 and 2020		4
	Unaudited Condensed Consolidated Statements of Stockholders’ Equity for the Three Months Ended March 31, 2021 and 2020		5
	Unaudited Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2021 and 2020		6
	Notes to Unaudited Condensed Consolidated Financial Statements		7
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		17
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk		21
ITEM 4.	Controls and Procedures		21
	PART II. OTHER INFORMATION
ITEM 1A.	Risk Factors		22
ITEM 6.	Exhibits		23
	Signatures		24

	March 31, 2021	December 31, 2020
Assets
Current assets:
Cash and cash equivalents	$11,218	$10,803
Restricted cash	4,307	4,304
Accounts receivable, net of allowances for bad debts and customer credits of $307 and $406 at March 31, 2021 and December 31, 2020, respectively	13,916	13,955
Prepaid expenses and other current assets	690	847
Total current assets	30,131	29,909
Property and equipment, net	3,080	2,953
Right-of-use assets	2,668	2,892
Intangible assets, net	4,331	4,733
Other assets	551	642
Total assets	$40,761	$41,129
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$8,131	$7,233
Borrowings under revolving credit facility	10,207	10,185
Accrued employee-related benefits	1,568	2,123
Other accrued expenses and other current liabilities	511	538
Current portion of the PPP Loan	—	1,384
Current portion of lease liabilities	1,020	1,015
Current portion of financing debt	66	65
Total current liabilities	21,503	22,543
Lease liabilities, net of current portion	1,944	2,191
Financing debt, net of current portion	44	60
Total liabilities	23,491	24,794
Commitments and contingencies (Note 9)
Stockholders’ equity:
Preferred stock, $0.001 par value, 11,445,187 shares authorized
Series A Preferred stock, 2,000,000 shares authorized, none issued and outstanding at March 31, 2021 and December 31, 2020, respectively.	—	—
Common stock, $0.001 par value; 55,000,000 shares authorized, 13,443,909 and 13,169,204 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively	13	13
Additional paid-in capital	366,712	366,087
Accumulated deficit	(349,455)	(349,765)
Total stockholders’ equity	17,270	16,335
Total liabilities and stockholders’ equity	$40,761	$41,129

	Three Months Ended March 31,
	2021	2020
Revenues:
Lead generation	$14,186	$18,460
Digital advertising	3,694	6,012
Total revenues	17,880	24,472
Cost of revenues	12,071	19,115
Gross profit	5,809	5,357
Operating expenses:
Sales and marketing	2,200	2,132
Technology support	1,367	1,857
General and administrative	3,132	3,943
Depreciation and amortization	204	722
Total operating expenses	6,903	8,654
Operating loss	(1,094)	(3,297)
Interest and other (expense) income:
Interest (expense) income, net	(251)	(832)
Other income (expense)	1,655	68
Total interest and other (expense) income	1,404	(4,061)
Net income (loss)	$310	$(4,061)
Basic income (loss) per common share	$0.02	$(0.31)
Diluted income (loss) per common share	$0.02	$(0.31)

Three Months Ended March 31, 2021
	Common Stock		Preferred Stock
	Number of Shares	Amount	Number of Shares	Amount	Additional Paid-In Capital	Accumulated Deficit	Total
Balance at December 31, 2020	13,169,204	$13	—	$—	$366,087	$(349,765)	$16,335
Share-based compensation	—	—	—	—	499	—	499
Issuance of common stock upon exercise of stock options	54,705	—	—	—	126	—	126
Issuance of restricted stock	220,000	—	—	—	—	—	—
Net income	—	—	—	—	—	310	310
Balance at March 31, 2021	13,443,909	$13	—	$—	$366,712	$(349,455)	$17,270

Three Months Ended March 31, 2020
	Common Stock		Preferred Stock
	Number of Shares	Amount	Number of Shares	Amount	Additional Paid-In-Capital	Accumulated Deficit	Total
Balance at December 31, 2019	13,146,831	$13	—	$—	$364,028	$(342,945)	$21,096
Share-based compensation	—	—	—	—	509	—	509
Net loss	—	—	—	—	—	(4,061)	(4,061)
Balance at March 31, 2020	13,146,831	$13	—	$—	$364,537	$(347,006)	$17,544

	Three Months Ended March 31,
	2021	2020
Cash flows from operating activities:
Net income (loss)	$310	$(4,061)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	641	1,212
Provision for bad debts, net of recoveries	(177)	12
Provision for customer credits	137	92
Forgiveness of the PPP Loan	(1,384)	—
Share-based compensation	499	509
Amortization of right-of-use assets	224	396
Changes in assets and liabilities:
Accounts receivable	79	3,127
Prepaid expenses and other current assets	157	97
Other assets	91	(103)
Accounts payable	598	(1,273)
Accrued expenses and other current liabilities	(583)	(560)
Lease liabilities	(242)	(402)
Net cash provided by (used in) operating activities	350	(954)
Cash flows from investing activities:
Purchases of property and equipment	(66)	(103)
Net cash used in investing activities	(66)	(103)
Cash flows from financing activities:
Borrowings under PNC credit facility	—	28,564
Payments under PNC credit facility	—	(32,308)
Borrowings under CNC credit facility	18,144	8,001
Payments under CNC credit facility	(18,121)	(1,290)
Proceeds from exercise of stock options	126	—
Payments under financing agreement	(15)	—
Net cash provided by financing activities	134	2,967
Net increase in cash and cash equivalents and restricted cash	418	1,910
Cash and cash equivalents and restricted cash, beginning of period	15,107	5,946
Cash and cash equivalents and restricted cash, end of period	$15,525	$7,856
Reconciliation of cash and cash equivalents and restricted cash
Cash and cash equivalents at beginning of period	$10,803	$892
Restricted cash at beginning of period	4,304	5,054
Cash and cash equivalents and restricted cash at beginning of period	$15,107	$5,946
Cash and cash equivalents at end of period	$11,218	$7,354
Restricted cash at end of period	4,307	502
Cash and cash equivalents and restricted cash at end of period	$15,525	$7,856
Supplemental disclosure of cash flow information:
Cash refunds for income taxes	$—	$381
Cash paid for interest	$215	$323
Supplemental disclosure of non-cash financing activities:
Right-of-use assets obtained in exchange for operating lease liabilities	$—	$1,501
Purchases on account related to capitalized software	$300	$—

In early 2020 and continuing as of the date of this Quarterly Report on Form 10-Q, the outbreak of coronavirus has led to quarantines and stay-at-home/work-from-home orders in a number of countries, states, cities and regions and the closure or limited access to public and private offices, businesses and facilities, worldwide, causing widespread disruptions to travel, economic activity and financial markets. The pandemic has led the Company’s Manufacturer and Dealer customers to experience disruptions in the (i) supply of vehicle and parts inventories, (ii) ability and willingness of consumers to visit automotive dealerships to purchase or lease vehicles, and (iii) overall health, safety and availability of their labor force. Manufacturers have also shut down assembly plants, adversely impacting inventories of new vehicles. Volatility in the financial markets, concerns about exposure to the virus, governmental quarantines, stay-at-home/work-from-home orders, business closures and employment furloughs and layoffs have also impacted consumer confidence and willingness to visit dealerships and to purchase or lease vehicles. High unemployment rates and lower consumer confidence may continue even after stay-at-home/work-from-home orders and business closures have ended. These disruptions have impacted the willingness or desire of the Company’s customers to acquire vehicle Leads or other digital marketing services from the Company. The Company is also experiencing direct disruptions in the Company’s operations due to the overall health and safety of, and concerns for, the Company’s labor force and as a result of governmental “social distancing” programs, quarantines, travel restrictions and stay-at-home/work-from-home orders, leading to office closures, operating from employee homes and restrictions on the Company’s employees traveling to the Company’s various offices.

 

In addition to the continued impact of the coronavirus pandemic on supply chains and vehicle inventories and sales, Manufacturers have also experienced significant disruption in the supply of semiconductor chips required for new vehicles due to a worldwide shortage of these chips. As a result, the ability of Manufacturers to maintain regular production output of certain vehicles, and the corresponding reduction in available new vehicle inventories, have adversely impacted vehicle sales. Further disrupting the automotive industry and the number of vehicles available for sale or lease are disruptions in the supply of seat foam and rubber, which is a key material used in tires as well as other components of new vehicles.

 

The Company is unable to predict the continuing extent, duration and impact of the pandemic and supply chain disruptions on the automotive industry in general, and on the Company’ business and operations specifically. Vehicle sales have declined, and the Company continues to experience cancellations or suspensions of purchases of Leads and other digital marketing services by the Company’s customers, which could materially and adversely affect the Company’s future business, results of operations, financial condition, earnings per share, cash flow or the trading price of our stock (individually and collectively referred to as the Company’s“financial performance”).  In light of the impact of the pandemic and supply chain disruptions, the Company has taken steps to reduce the Company’s overall lead and click generation efforts and corresponding costs to better align the Company’s volumes with industry demand and consumer intent and ability to purchase or lease vehicles. The Company will continue to evaluate these and other cost reduction measures, and explore all options available to the Company, in order to minimize the impact of these events on the Company.

	Three Months Ended March 31,
	2021	2020
Lead generation	$14,186	$18,460
Digital advertising
Clicks	2,932	5,349
Display and other advertising	762	663
Total digital advertising	3,694	6,012
Total revenues	$17,880	$24,472

	Three Months Ended March 31,
	2021	2020
Basic Shares:
Weighted average common shares outstanding	13,253,050	13,146,831
Weighted average unvested restricted stock	(75,944)	(13,333)
Basic Shares	13,177,106	13,133,498
Diluted Shares:
Basic shares	13,177,106	13,133,498
Weighted average dilutive securities	140,281	—
Diluted Shares	13,317,387	13,133,498

	Three Months Ended March 31,
	2021	2020
Share-based compensation expense:
Sales and marketing	$30	$32
Technology support	11	27
General and administrative	458	450
Share-based compensation costs	499	509
Total share-based compensation costs	$499	$509

	Three Months Ended March 31,
	2021	2020
Number of service-based options granted	765,000	460,000
Weighted average grant date fair value	$1.82	$1.09
Weighted average exercise price	$2.60	$2.00

	Three Months Ended March 31,
	2021	2020
Dividend yield	—	—
Volatility	94.4%	68%
Risk-free interest rate	0.7%	1.1%
Expected life (years)	4.8	4.5

	Three Months Ended March 31,
	2021	2020
Number of stock options exercised	54,705	—
Weighted average exercise price	$2.30	$—

	March 31, 2021	December 31, 2020
Computer software and hardware	$4,938	$4,940
Capitalized internal use software	7,390	7,391
Furniture and equipment	1,105	935
Leasehold improvements	883	884
Construction in progress	1,001	805
	15,317	14,955
Less—Accumulated depreciation and amortization	(12,237)	(12,002)
Property and Equipment, net	$3,080	$2,953

		March 31, 2021			December 31, 2020
Definite-Lived Intangible Asset	Estimated Useful Life	Gross	Accumulated Amortization	Net	Gross	Accumulated Amortization	Net
Trademarks/trade names/licenses/ domains	3 – 7 years	$16,589	$(16,091)	$498	$16,589	$(15,961)	$628
Customer relationships	2 – 5 years	19,563	(19,563)	—	19,563	(19,563)	—
Developed technology	5 – 7 years	8,955	(7,322)	1,633	8,955	(7,050)	1,905
		$45,107	$(42,976)	$2,131	$45,107	$(42,574)	$2,533

		March 31, 2021			December 31, 2020
Indefinite-Lived Intangible Asset	Estimated Useful Life	Gross	Accumulated Amortization	Net	Gross	Accumulated Amortization	Net
Domain	Indefinite	$2,200	$—	$2,200	$2,200	$—	$2,200

Year	Amortization Expense
2021	$1,097
2022	902
2023	86
2024	46
	$2,131

	March 31, 2021	December 31, 2020
Accrued employee-related benefits	$1,568	$2,123
Other accrued expenses and other current liabilities:
Other accrued expenses	101	143
Amounts due to customers	82	94
Other current liabilities	328	301
Total other accrued expenses and other current liabilities	511	538
Total accrued expenses and other current liabilities	$2,079	$2,661

	March 31, 2021	December 31, 2020
Current portion of lease liabilities	$1,020	$1,015
Long-term lease liabilities, net of current portion	1,944	2,191
Total lease liabilities	$2,964	$3,206

Year
2021 (remaining 9 months)	$895
2022	881
2023	797
2024	528
2025	197
Total minimum lease payments	3,298
Less imputed interest	(334)
Total lease liabilities	$2,964

The interest rates per annum applicable to borrowings under the PNC Credit Agreement were, at the Company’s option (subject to certain conditions), equal to either a domestic rate (“Domestic Rate Loans”) or a LIBOR rate for one, two, or three-month interest periods chosen by the Company (“LIBOR Rate Loans”), plus the applicable margin percentage of 2% for Domestic Rate Loans and 3% for LIBOR Rate Loans. The domestic rate for Domestic Rate Loans would be the highest of (i) the base commercial lending rate of the lender, (ii) the overnight bank funding rate plus 0.50%, or (iii) the LIBOR rate plus 1.00% so long as the daily LIBOR rate is offered, ascertainable and not unlawful. The PNC Credit Agreement also provided for commitment fees ranging from 0.5% to 1.5% applied to unused funds (with the applicable fee based on quarterly average borrowings) but with the fees fixed at 1.5% until September 30, 2019. Fees for letters of credit were to be equal to 3% for LIBOR Rate Loans, with a fronting fee for each Letter of Credit in an amount equal to 0.5% of the daily average aggregate undrawn amount of all letters of credit outstanding. The Company was required to maintain a $5.0 million pledged interest-bearing deposit account with the lender until the Company’s consolidated EBITDA is greater than $10.0 million.

On March 26, 2020, the Company fully paid the PNC Credit Agreement, at which time it was terminated, and in conjunction with the termination of the PNC Credit Agreement, on March 26, 2020, the Company entered into a $20.0 million Loan, Security and Guarantee Agreement (“CNC Credit Agreement”) with CIT Northbridge Credit LLC, as agent (the “Agent”), and the Company’s U.S. subsidiaries. The CNC Credit Agreement provides for a $20.0 million revolving credit facility with borrowings subject to availability based primarily on limits of 85% of eligible billed accounts receivable and 75% against eligible unbilled accounts receivable. The obligations under the CNC Credit Agreement are guaranteed by the Company’s U.S. subsidiaries and secured by a first priority lien on all of the Company’s and the Company’s U.S. subsidiaries’ tangible and intangible assets. The CNC Credit Agreement has an average minimum borrowing usage requirement of an average of $10,000,000.

As of March 31, 2021, the Company had $10.2 million outstanding under the CNC Credit Agreement and approximately $1.2 million of net availability. To increase the borrowing base sufficient enough to meet the minimum borrowing usage requirement, the Company on June 29, 2020, placed $3.0 million into a restricted cash account that provided for greater availability under the CNC Credit Agreement. The Company placed an additional $1.0 million into the same restricted cash account in December 2020. The Company can borrow up to 97.5% of the total restricted cash amount. The restricted cash accrues interest at a variable rate currently averaging 0.25% per annum.  

Financing costs related to the CNC Credit Agreement, net of accumulated amortization, of approximately $0.3 million, have been deferred over the initial term of the loan and are included in other assets as of March 31, 2021. The interest rate per annum applicable to borrowings under the CNC Credit Agreement is the LIBO plus 5.5%. The LIBO Rate is equal to the greater of (i) 1.75%, and (ii) the rate determined by the Agent to be equal to the quotient obtained by dividing (1) the LIBO Base Rate (i.e., the rate per annum determined by Agent to be the offered rate that appears on the applicable Bloomberg page) for the applicable LIBOR Loan for the applicable interest period by (2) one minus the Eurodollar Reserve Percentage (i.e., the reserve percentage in effect under regulations issued from time to time by the Board of Governors of the Federal Reserve System for determining the maximum reserve requirement with respect to Eurocurrency funding for the applicable LIBOR Loan for the applicable interest period). If adequate and reasonable means do not exist for ascertaining or the LIBOR rate is no longer available, the Company and the Agent may amend the CNC Credit Agreement to replace LIBOR with an alternate benchmark rate. If no LIBOR successor rate is determined, the obligation of the lenders to make or maintain LIBOR loans will be suspended and the LIBO Base Rate component will no longer be utilized in determining the base rate.

If, due to any circumstance affecting the London interbank market, the Agent determines that adequate and fair means do not exist for ascertaining the LIBO Rate on any applicable date (and such circumstances that are identified in the next two paragraphs below are not covered or governed by such provisions below), then until the Agent determines that such circumstance no longer exists, the obligation of lenders to make LIBOR Loans will be suspended and, if requested by the Agent, the Company must promptly, at its option, either (i) pay all such affected LIBOR Loans or (ii) convert such affected LIBOR Loans into loans that bear reference to the Base Rate plus the Applicable Margin.

However, if Agent determines that (i) adequate and reasonable means do not exist for ascertaining LIBOR for any requested interest period and such circumstances are unlikely to be temporary; (ii) the administrator of the LIBOR screen rate or a governmental authority having jurisdiction over the Agent has made a public statement identifying a specific date after which LIBOR or the LIBOR screen rate shall no longer be made available, or used for determining the interest rate of loans (“Scheduled Unavailability Date”); or (iii) syndicated loans currently being executed, or that include language similar to that contained in this paragraph are being executed or amended to incorporate or adopt a new benchmark interest rate to replace LIBOR, then Agent and the Company may amend the CNC Credit Agreement to replace LIBOR with an alternate benchmark rate (“LIBOR Successor Rate”) and any such amendment will become effective unless lenders holding more than 50% in value of the loans or commitments under the CNC Credit Agreement do not accept such amendment. If no LIBOR Successor Rate has been determined and the circumstances under clause (i) above exist or the Scheduled Unavailability Date has occurred, (x) the obligation of lenders to make or maintain LIBOR Loans will be suspended (to the extent of the affected LIBOR Loans or interest periods), and (y) the LIBO Base Rate component will no longer be utilized in determining the Base Rate.  The Base Rate for any day is a fluctuating rate per annum equal to the highest of: (i) the Federal Funds Rate plus 1/2 of 1%; (ii) the rate of interest in effect for such day as publicly announced from time to time by JPMorgan Chase Bank, N.A. as its “prime rate” in effect for such day; or (iii) the most recently available LIBO Base Rate (as adjusted by any minimum LIBO Rate floor) plus 1%. The Applicable Margin is equal to 5.50%. The CNC Credit Agreement expires on March 26, 2023.

On April 16, 2020, the Company received a PPP Loan in the amount of approximately $1.38 million from PNC pursuant to the PPP administered by the United States Small Business Administration (“SBA”) under the CARES Act. 

On January 13, 2021, the Company received a notice from PNC Bank regarding forgiveness of the loan in the principal amount of approximately $1.38 million that was made to the Company pursuant to the SBA PPP under the CARES Act of 2020. The notice states that SBA has remitted to PNC a loan forgiveness payment equal to $1.39 million, which constitutes full payment and forgiveness of the principal amount of the PPP loan and all accrued interest. In January 2021, the Company recognized the forgiveness of the PPP Loan on its Unaudited Condensed Consolidated Statement of Operations.

Year
2021 (remaining 9 months)	47
2022	63
Total financing debt	$110

Our lead and click generation products have historically operated with limited visibility due to short sales cycles and a high rate of customer churn as clients are able to join and leave our platform with limited notice.  Our advertising business is also subject to seasonal trends, with the first quarter of the calendar year typically showing sequential decline versus the fourth quarter. These factors have historically contributed to volatility in our revenues, cost of revenues, gross profit, and gross profit margin. We anticipate these trends will continue throughout 2021.

Although we are not able at this time to provide any specific guidance regarding our full year 2021 financial performance with detail or accuracy, many industry analysts have forecast improvement in new vehicle unit sales seasonally adjusted annual rate from 14.5 million units in 2020 to a range of 15.5-16.4 million units in 2021, or 7-13% growth. We anticipate that our remaining 2021 financial condition may be adversely impacted when compared to 2020 by (i) the continuing impact of the coronavirus pandemic on vehicle sales and on demand for our products and services; (ii) increased competitive pressure on cost of audience acquisition that may limit how much volume we will be able to profitably source and distribute to our customers; (iii) the costs and revenue impact associated with our efforts to optimize our clicks product; and (iv) the decision to shift our focus to our core leads, clicks and email products and services and away from non-core product and services.

In early 2020 and continuing as of the date of this Quarterly Report on Form 10-Q, the outbreak of coronavirus has led to quarantines and stay-at-home/work-from-home orders in a number of countries, states, cities and regions and the closure or limited access to public and private offices, businesses and facilities, worldwide, causing widespread disruptions to travel, economic activity and financial markets. The pandemic has led our Manufacturer and Dealer customers to experience disruptions in the (i) supply of vehicle and parts inventories, (ii) ability and willingness of consumers to visit automotive dealerships to purchase or lease vehicles, and (iii) overall health, safety and availability of their labor force. Manufacturers have also shut down assembly plants, adversely impacting inventories of new vehicles. Volatility in the financial markets, concerns about exposure to the virus, governmental quarantines, stay-at-home/work-from-home orders, business closures and employment furloughs and layoffs have also impacted consumer confidence and willingness to visit dealerships and to purchase or lease vehicles. High unemployment rates and lower consumer confidence may continue even after stay-at-home/work-from-home orders and business closures have ended. These disruptions have impacted the willingness or desire of our customers to acquire vehicle Leads or other digital marketing services from us. We are also experiencing direct disruptions in our operations due to the overall health and safety of, and concerns for, our labor force and as a result of governmental “social distancing” programs, quarantines, travel restrictions and stay-at-home/work-from-home orders, leading to office closures, operating from employee homes and restrictions on our employees traveling to our various offices.

 

In addition to the continued impact of the coronavirus pandemic on supply chains and vehicle inventories and sales, Manufacturers have also experienced significant disruption in the supply of semiconductor chips required for new vehicles due to a worldwide shortage of these chips. As a result, the ability of Manufacturers to maintain regular production output of certain vehicles, and the corresponding reduction in available new vehicle inventories, have adversely impacted vehicle sales. Further disrupting the automotive industry and the number of vehicles available for sale or lease are disruptions in the supply of seat foam and rubber, which is a key material used in tires as well as other components of new vehicles.

 

We are unable to predict the continuing extent, duration and impact of the pandemic and supply chain disruptions on the automotive industry in general, and on our business and operations specifically. Vehicle sales have declined, and we continue to experience cancellations or suspensions of purchases of Leads and other digital marketing services by our customers, which could materially and adversely affect our financial performance. In light of the impact of the pandemic and supply chain disruptions, we have taken steps to reduce our overall lead and click generation efforts and corresponding costs to better align our volumes with industry demand and consumer intent and ability to purchase or lease vehicles. We will continue to evaluate these and other cost reduction measures, and explore all options available to us, in order to minimize the impact of these events on us.

	2021	% of total revenues	2020	% of total revenues	$ Change	% Change
	(Dollar amounts in thousands)
Revenues:
Lead generation	$14,186	79%	$18,460	75%	$(4,274)	(23)%
Digital advertising	3,694	21	6,012	25	(2,318)	(39)
Total revenues	17,880	100	24,472	100	(6,592)	(27)
Cost of revenues	12,071	68	19,115	78	(7,044)	(37)
Gross profit	5,809	32	5,357	22	452	8
Operating expenses:
Sales and marketing	2,200	12	2,132	9	68	3
Technology support	1,367	8	1,857	8	(490)	(26)
General and administrative	3,132	18	3,943	16	(811)	(21)
Depreciation and amortization	204	1	722	3	(518)	(72)
Total operating expenses	6,903	39	8,654	36	(1,751)	(20)
Operating loss	(1,094)	(6)	(3,297)	(14)	2,203	(67)
Interest and other income (expense), net	1,404	8	(764)	(3)	2,168	(284)
Loss before income tax provision	310		(4,061)	(17)	4,371	(108)
Income tax provision	—	—	—	—	—	—
Net income (loss)	$310	2%	$(4,061)	(17)%	$4,371	(108)%