VIEWCAST COM INC

CIK:0000921313|SEC Filings

Earnings Per Share Data

6 Months Ended

Jun. 30, 2013

11. Earnings Per Share Data

Basic earnings per share is calculated by dividing net income or loss applicable to common stockholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is calculated by using the weighted-average number of common shares outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the dilutive potential shares of common stock had been issued. Dilutive potential shares of common stock include convertible preferred stock, options and warrants. The potential dilution for options and warrants is based on the average market price during the period. The average market price of the common stock was $0.06 during the six months ended June 30, 2013. For periods presented, the computation of diluted loss per share excludes the portion of convertible preferred stock, options and warrants that are anti-dilutive.

The following table sets forth the computation of basic and diluted earnings per share:

	Three Months Ended June 30,
	2012				2013				2012				2013
	(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Loss from continuing operations	$	(581,844	)	$		(1,145,630	)	$		(905,356	)	$		(1,603,427	)
Net loss from discontinued operations		—				—				(81,594	)			—
Net loss applicable to common stockholders - numerator for basic and diluted loss per share	$	(581,844	)	$		(1,145,630	)	$		(986,950	)	$		(1,603,427	)
Weighted - average common shares and dilutive potential common shares outstanding - denominator for diluted earning per share		62,355,462				62,386,490				61,881,237				62,386,490

Net loss per common share (basic and diluted):
Continuing operations	$	(0.01	)	$		(0.02	)			(0.01	)	$		(0.03	)
Discontinued operations	$	—		$		—				(0.00	)	$		—
Net loss	$	(0.01	)	$		(0.02	)			(0.02	)	$		(0.03	)

Anti-dilutive securities excluded from diluted earnings per share:
Stock options	4,235,835	5,076,750	4,298,335	4,561,195
Private warrants	6,618,068	6,618,068	5,670,515	6,618,068
Convertible preferred stock - Series E	16,000,000	13,333,333	16,000,000	13,333,333

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Operating activities:
Net loss	$ (1,603,427)	$ (986,950)
Net loss from discontinued operations		(81,594)
Net loss from continuing operations	(1,603,427)	(905,356)
Adjustments to reconcile net loss to net cash used in operating activities:
Bad debt expense	20,031	5,968
Depreciation of property and equipment	58,318	97,662
Amortization of software and intangible assets	86,786	113,280
Stock based compensation expense	51,407	56,544
Loss on sale of assets		2,047
Changes in operating assets and liabilities:
Accounts receivable	902,117	184,881
Inventories	(21,391)	143,717
Prepaid expenses	77,677	(32,002)
Deposits	(121)	54,731
Assets and liabilities held for sale, net	27,322	9,283
Accounts payable	496,316	(94,350)
Accrued expenses and other current liabilities	136,159	16,572
Deferred revenue	47,595	(155,894)
Net cash provided by (used in) operating activities	278,789	(584,511)
Investing activities:
Capitalized software development costs and patents	(70,001)	(10,538)
Purchase of property and equipment		(64,787)
Proceeds from sale of assets		47,026
Net cash used in investing activities	(70,001)	(28,299)
Financing activities:
Proceeds from sale of common stock and warrants		321,245
Net proceeds (payment) from (to) line of credit	(570,378)	175,137
Net proceeds (payment) from (to) long-term debt	538,037	(22,957)
Net cash provided by (used in) financing activities	(32,341)	473,425
Net increase (decrease) in cash and cash equivalents	176,447	(139,385)
Cash and cash equivalents, beginning of period	258,259	319,908
Cash and cash equivalents, end of period	$ 434,706	$ 180,523

Condensed Consolidated Balance Sheets (USD $)	Jun. 30, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents	$ 434,706	$ 258,259
Accounts receivable, less allowance for doubtful accounts of $39,018 and $59,049 at December 31, 2012 and June 30, 2013, respectively	1,392,476	2,314,624
Inventories, net	2,144,770	2,123,379
Prepaid expenses	46,181	123,858
Total current assets	4,018,133	4,820,120
Property and equipment, net	76,894	135,212
Capitalized software development costs, net	324,124	329,532
Earn-out receivable	99,740	127,062
Intangible assets, net	73,316	84,693
Deposits	30,165	30,044
Total assets	4,622,372	5,526,663
Current liabilities:
Line of credit	573,542	1,143,920
Accounts payable	1,500,642	1,004,326
Accrued expenses and other current liabilities	859,230	723,071
Deferred revenue	352,622	305,027
Current maturities of long-term debt and stockholder notes payable	275,056	150,870
Total current liabilities	3,561,092	3,327,214
Long-term debt, less current maturities	2,205	9,820
Stockholder notes payable, less current maturities	5,962,914	5,541,448
Total liabilities	9,526,211	8,878,482
Preferred stock, $0.0001 par value, authorized 5,000,000 shares:
Common stock, $.0001 par value, authorized 200,000,000 shares; issued shares - 62,647,987 at December 31, 2012 and June 30, 2013, respectively	6,265	6,265
Additional paid-in capital	73,660,690	73,609,283
Accumulated deficit	(78,558,896)	(76,955,469)
Treasury stock, 261,497 shares at cost	(11,906)	(11,906)
Total stockholders’ deficit	(4,903,839)	(3,351,819)
Total liabilities and stockholders’ deficit	4,622,372	5,526,663
Series E Convertible Preferred Stock
Preferred stock, $0.0001 par value, authorized 5,000,000 shares:
Series E convertible - issued and outstanding shares - 80,000 - liquidation value of $107 per share as of December 31, 2012 and June 30, 2013, respectively	$ 8	$ 8