HOOPER HOLMES INC

CIK:0000741815|SEC Filings

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Revenues	$ 10,275	$ 8,883	$ 21,610	$ 16,484
Cost of operations	8,149	7,206	16,816	13,115
Gross profit	2,126	1,677	4,794	3,369
Selling, general and administrative expenses	6,433	5,281	13,284	8,760
Transaction costs	77	1,595	203	2,277
Operating loss from continuing operations	(4,384)	(5,199)	(8,693)	(7,668)
Interest expense and other income	779	693	1,664	1,461
Loss from continuing operations before income tax (benefit) expense	(5,163)	(5,892)	(10,357)	(9,129)
Income tax (benefit) expense	(86)	12	(86)	17
Loss from continuing operations	(5,077)	(5,904)	(10,271)	(9,146)
Discontinued operations:
Gain (loss) from discontinued operations	0	21	(35)	134
Net loss	$ (5,077)	$ (5,883)	$ (10,306)	$ (9,012)
Continuing operations
Basic and Diluted (in dollars per share)	$ (0.19)	$ (0.28)	$ (0.38)	$ (0.57)
Discontinued operations
Basic and Diluted (in dollars per share)	0.00	0.00	0.00	0.01
Net loss
Basic and Diluted (in dollars per share)	$ (0.19)	$ (0.28)	$ (0.38)	$ (0.56)
Weighted Average number of shares:
Basic and Diluted (in shares)	26,768,498	21,336,209	26,768,498	16,104,369

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net loss	$ (10,306)	$ (9,012)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	1,827	1,497
Other debt related costs included in interest expense	428	820
Provision for bad debt expense	257	30
Share-based compensation expense	95	162
Expense for issuance of warrant to SWK in connection with debt amendment	0	361
Issuance of warrant to Century in connection with the Merger	0	152
Expense for common stock issuance - payment of transaction costs for the Merger	0	364
Expense for common stock issuance - payment of transaction costs for LPC Equity Line	(23)	0
Change in assets and liabilities:
Accounts receivable	7,752	125
Inventories	308	6
Other assets	(134)	149
Accounts payable, accrued expenses and other liabilities	489	(1,335)
Net cash provided by (used in) operating activities	693	(6,681)
Cash flows from investing activities:
Capital expenditures	(5)	(130)
Cash acquired from Merger with PHS	0	1,936
Net cash (used in) provided by investing activities	(5)	1,806
Cash flows from financing activities:
Principal payments on Term Loan	(250)	0
Proceeds from amendments of Term Loan	3,610	2,824
Issuance of common stock and warrants, net of issuance costs	0	3,414
Payments on capital lease obligations	(85)	(53)
Debt issuance costs	(15)	0
Net cash (used in) provided by financing activities	(990)	4,259
Net decrease in cash and cash equivalents	(302)	(616)
Cash and cash equivalents at beginning of period	884	1,866
Cash and cash equivalents at end of period	582	1,250
Supplemental disclosure of non-cash investing and financing activities:
Fixed assets vouchered but not paid	133	198
Fair value of common stock issued as Merger consideration	0	6,792
Fair value of debt assumed in the Merger	0	7,110
Supplemental disclosure of cash paid during period for:
Income taxes	43	25
Interest	672	488
2016 Credit and Security Agreement
Cash flows from financing activities:
Borrowings under credit facilities	23,738	18,856
Payments under credit facilities	(27,988)	(18,098)
Seasonal Facility
Cash flows from financing activities:
Borrowings under credit facilities	0	2,000
Provant
Cash flows from financing activities:
Payments under credit facilities	$ 0	$ (4,684)

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 582	$ 884
Accounts receivable, net of allowance for doubtful accounts of $629 and $260 at June 30, 2018 and December 31, 2017, respectively	8,753	16,762
Inventories	696	1,004
Other current assets	794	998
Total current assets	10,825	19,648
Property, plant and equipment, net	1,175	1,752
Intangible assets, net	8,398	9,644
Goodwill	8,852	8,759
Other assets	982	397
Total assets	30,232	40,200
Current liabilities:
Accounts payable	15,945	12,690
Accrued expenses	8,091	9,255
Short-term debt	18,583	19,314
Other current liabilities	4,220	5,529
Total current liabilities	46,839	46,788
Other long-term liabilities	149	268
Commitments and contingencies	0	0
Stockholders' deficit:
Common stock, par value $0.04 per share; Authorized: 240,000,000 shares; Issued and Outstanding: 26,768,498 shares at June 30, 2018, and December 31, 2017	1,071	1,071
Additional paid-in capital	177,469	177,397
Accumulated deficit	(195,296)	(185,324)
Total stockholders' deficit	(16,756)	(6,856)
Total liabilities and stockholders' deficit	$ 30,232	$ 40,200