Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. VIDAROO Corp (1418826) 10-Q published on Feb 21, 2013 at 3:16 pm
Reporting Period: Dec 30, 2012
Effective January 1, 2013, Vidaroo appointed Thomas Moreland as Chairman of the Board and Chief Executive Officer, in addition to his pre-existing duties as Chief Financial Officer, Secretary and Treasurer. Concurrent with this appointment, Vidaroo accepted the resignation of Mark Argenti as Chairman and Chief Executive Officer, Micheal Morgan as President and Chief Technology Officer and Ian McDaniel as Production President.
Vidaroo is a video technology company. The Entity licenses its Online Video Platform, and performs professional video production. Vidaroo’s Online Video Platform (“OVP”) is licensed under a Software-as-a-Service (“SaaS”) model. The SaaS model allows the Company to generate monthly recurring revenue that is scalable and stable. The OVP’s functionality allows both users and representatives or affiliates of the Entity to use or promote the OVP based on automated interfaces independent of personal contact with the Entity. Our Production capabilities include creation and support of video imagery for top line names in the entertainment business. We also provide support of video production for traditional media and corporate presentations, as well as in-house production of content.
Revenue decreased by $168,205 to $248,339 and $227,623 to $497,211 in the three and six months ended December 31, 2012 as compared to 2011, respectively. The decrease in revenue for both the quarter and six months was driven by production services, which fell by $163,025 and $232,157, respectively. SaaS revenue for the three and six months ended December 31, 2012 was $125,067 and $251,588, respectively, growing by $3,625 and $10,945, respectively over 2011. This growth was largely due to low cost web-based promotional activities, direct sales from the Entity’s affiliates without the use of external capital or resources to leverage marketing initiatives.
Selling General and Administrative costs generally consist of salaries, including stock-based compensation, professional fees, office expenses and other administrative costs. These costs decreased by $108,427 to $287,294 and $147,380 to $592,945 for the three and six months ended December 31, 2012, respectively, in comparison to 2011. The reduction relates primarily to stock based compensation and professional fees. Stock based compensation decreased by $45,380 and $66,102 for the three and six month periods, respectively, as a direct result of the contracting with Executive Officers completed in prior years. Professional fees decreased by $39,409 and $48,929 for the three and six months, respectively, which was a result of the litigation outstanding in the prior year, which has since been resolved.
Unrealized gain on adjustment to the fair market value of financial instruments increased by $199,819 to $316,220 for the three months while decreasing by $370,070 to $290,908 for the six months ended December 31, 2012 in comparison to 2011. For the three months ended December 31, 2012, the increase relates to the further evaluation of certain accrued expenses by using Level 3 inputs for valuation where Level 1 inputs were used previously. The decrease for the six months ended December 31, 2012 relates to the nature of the troubled debt restructuring. While ongoing negotiations caused the larger gain in the prior year, the significant reduction in the outstanding balance of our debt during the year ended June 30, 2012 caused the current year adjustment to be much lower.