BLUEFLY INC

CIK:0001030896|SEC Filings

Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Net sales	$ 19,794,000	$ 24,266,000
Cost of sales	15,813,000	20,521,000
Gross profit	3,981,000	3,745,000
Selling and fulfillment expenses	4,708,000	5,458,000
Marketing expenses	1,231,000	2,578,000
General and administrative expenses	2,035,000	3,541,000
Total operating expenses	7,974,000	11,577,000
Operating loss	(3,993,000)	(7,832,000)
Interest expense to related-party stockholders	(222,000)
Other interest expense and other income, net	(225,000)	(72,000)
Net loss	(4,440,000)	(7,904,000)
Less: Net loss attributable to non-controlling interest in Eyefly LLC		(34,000)
Net loss attributable to Bluefly, Inc. stockholders	$ (4,440,000)	$ (7,870,000)
Basic and diluted net loss per common share attributable to Bluefly, Inc. stockholders (in Dollars per share)	$ (0.16)	$ (0.28)
Weighted average common shares outstanding (basic and diluted) (in Shares)	28,576,612	28,523,237

Consolidated Statements Of Cash Flows (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Cash flows from operating activities:
Net loss	$ (4,440,000)	$ (7,904,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization expenses	820,000	667,000
Provisions for returns	(381,000)	381,000
Bad debt expense	96,000	129,000
Reserve for inventory obsolescence	(300,000)	(562,000)
Stock-based compensation expense	253,000	975,000
Deferred rent expense	7,000	12,000
Amortization expense related to warrants issued to third-party		150,000
Amortization of discount on notes payable to related-party stockholders	212,000
Change in fair value of embedded derivative financial liability to related-party stockholders	(129,000)
(Increase) decrease in:
Accounts receivable	642,000	411,000
Inventories	4,618,000	5,186,000
Prepaid expenses and other current assets	319,000	1,562,000
Other assets		220,000
Accounts payable	627,000	(68,000)
Accrued expenses and other current liabilities	(1,114,000)	(1,481,000)
Interest payable to related-party stockholders	50,000
Deferred revenue	(1,531,000)	(405,000)
Net cash used in operating activities	(251,000)	(727,000)
Cash flows from investing activities:
Purchases of property and equipment	(272,000)	(1,166,000)
Net cash used in investing activities	(272,000)	(1,166,000)
Cash flows from financing activities:
Borrowings under revolving credit facility	17,555,000
Repayments under revolving credit facility	(18,315,000)
Net cash provided by financing activities	(760,000)
Net decrease in cash and cash equivalents	(1,283,000)	(1,893,000)
Cash and cash equivalents – beginning of period	1,283,000	4,413,000
Cash and cash equivalents – end of period		2,520,000
Supplemental disclosure of cash flow information:
Cash paid during the year for interest expense	171,000	65,000
Supplemental disclosure of non-cash financing disclosure of cash flow information:
Issuance of common stock for asset acquisition		600,000
Related Party Stockholders [Member]
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of discount on notes payable to related-party stockholders	212,000
Supplemental disclosure of cash flow information:
Cash paid during the year for interest expense	$ 58,000

Consolidated Balance Sheets (March 31, 2013 Unaudited) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Current assets:
Cash and cash equivalents		$ 1,283,000
Restricted cash securing letters of credit	4,635,000	4,635,000
Accounts receivable, net	1,695,000	2,433,000
Inventories, net	16,203,000	20,521,000
Prepaid expenses and other current assets	1,061,000	1,412,000
Total current assets	23,594,000	30,284,000
Property and equipment, net	5,235,000	5,714,000
Other assets, net	508,000	545,000
Total assets	29,337,000	36,543,000
Current liabilities:
Revolving credit facility, expiring November 2015	4,551,000	5,311,000
Accounts payable	14,349,000	13,722,000
Allowance for sales returns	1,700,000	2,081,000
Accrued expenses and other current liabilities	1,606,000	2,720,000
Deferred revenue	2,850,000	4,381,000
Embedded derivative financial liability to related party stockholders	250,000	379,000
Notes and interest payables to related party stockholders, net of discount	2,861,000	2,599,000
Total current liabilities	28,167,000	31,193,000
Deferred rent liability	420,000	413,000
Total liabilities	28,587,000	31,606,000
Bluefly, Inc. stockholders’ equity:
Preferred stock - $0.01 par value; 1,000,000 shares authorize and none issued or outstanding
Common stock– $.01 par value; 50,000,000 shares authorized as of March 31, 2013 and December 31, 2012, respectively; 28,937,311 and 28,598,933 shares issued and outstanding as of March 31, 2013 and December 31, 2012, respectively	286,000	286,000
Treasury stock	(1,824,000)	(1,824,000)
Additional paid-in capital	193,827,000	193,574,000
Accumulated deficit	(191,539,000)	(187,099,000)
Total stockholders’ equity	750,000	4,937,000
Total liabilities and stockholders’ equity	$ 29,337,000	$ 36,543,000