ELECTRIC CITY CORP

CIK:0001065860|SEC Filings

Condensed Consolidated Statement of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Condensed Consolidated Statement of Operations
Revenue	$ 25,721	$ 32,160	$ 69,884	$ 82,409
Cost of sales	16,998	21,125	47,979	55,003
Gross profit	8,723	11,035	21,905	27,406
Selling, general and administrative	8,724	9,352	28,931	24,571
Acquisition costs		529	407	1,467
Amortization of intangibles	335	285	1,005	594
Operating income (loss)	(336)	869	(8,438)	774
Other Income (Expense)
Interest income	111	43	260	114
Interest expense	(952)	(322)	(3,012)	(825)
Other income	186
Other expense			(814)
Extinguishment of debt - related party			(2,052)	(1,420)
Gain (loss) from change in derivative liability - related party	2,077	1,272	4,451	(814)
Total other income (expense)	1,422	993	(1,167)	(2,945)
Income (loss) from continuing operations before income taxes	1,086	1,862	(9,605)	(2,171)
Income tax (expense) benefit	(32)	(3)	(40)	1,165
Income (loss) from continuing operations	1,054	1,859	(9,645)	(1,006)
Discontinued Operations:
Income (loss) from operation of discontinued business	11	(46)	(36)	(267)
Net income (loss)	1,065	1,813	(9,681)	(1,273)
Preferred stock dividends	(378)	(336)	(1,083)	(956)
Net income (loss) available to common stockholders	$ 687	$ 1,477	$ (10,764)	$ (2,229)
Basic earnings (loss) per common share from
Continuing operations (in dollars per share)	$ 0.07	$ 0.15	$ (1.12)	$ (0.20)
Discontinued operations (in dollars per share)	0.00	0.00	0.00	(0.03)
Basic earnings ( loss ) per common share (in dollars per share)	$ 0.07	$ 0.15	$ (1.12)	$ (0.23)
Weighted-average common shares outstanding - basic (in shares)	9,679	9,564	9,646	9,539
Diluted (loss) earnings per common share from
Continuing operations (in dollars per share)	$ (0.03)	$ 0.05	$ (1.12)	$ (0.20)
Discontinued operations (in dollars per share)	0.00	0.00	0.00	(0.03)
Diluted (loss) earnings per common share (in dollars per share)	$ (0.03)	$ 0.05	$ (1.12)	$ (0.23)
Weighted-average common shares outstanding - diluted (in shares)	13,397	17,697	9,646	9,539

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash Flows From Operating Activities
Net Loss	$ (9,681)	$ (1,273)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Provision for bad debt	349	426
Share-based compensation	653	642
Depreciation and amortization	1,919	1,230
Amortization of deferred financing costs	81	39
Change in derivative liability - related party	(4,451)	814
Loss on extinguishment of debt - related party	2,052	1,420
Deferred income tax benefit		(1,246)
Interest on Sub Notes added to principal - related party	2,651	28
Amortization of original issue discount - related party	275	98
Changes in assets and liabilities:
Release (establishment) of restricted funds to release Letter of Credit	1,300	(1,300)
Release of restricted funds		500
Accounts receivable	143	(4,706)
Inventories	711	239
Unbilled accounts receivable	(367)	(1,646)
Prepaid expenses and other	491	(767)
Assets of discontinued operations	58	312
Accounts payable	(1,180)	5,266
Accrued expenses	2,110	1,843
Unearned revenue	(125)	639
Customer deposits and other current liabilities	(178)	64
Liabilities of discontinued operations	(5)	(671)
Net cash (used in) provided by operating activities	(3,194)	1,951
Cash Flows From Investing Activities
Acquisition of EnerPath		(11,000)
Capitalization of product software		(153)
Purchases of property and equipment	(1,245)	(777)
Net cash used in investing activities	(1,245)	(11,930)
Cash Flows From Financing Activities
Proceeds from issuance of convertible notes - related party		11,750
Payments on vehicle financing	(15)	(8)
Deferred financing costs	(56)	(480)
Net cash (used in) provided by financing activities	(71)	11,262
Net (Decrease) Increase in Cash and Cash Equivalents	(4,510)	1,283
Cash and Cash Equivalents, at beginning of period	5,389	5,473
Cash and Cash Equivalents, at end of period	879	6,756
Cash paid during the period for interest:
Continuing operations	24	651
Noncash financing and investing activities:
Warrants issued for deferred financing fees		$ 31
Financed vehicle purchases	54
Accrued dividends	1,083
Shares issued for benefit plans	$ 83

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current Assets
Cash and cash equivalents	$ 879	$ 5,389
Restricted cash		1,300
Accounts receivable, net of allowance for doubtful accounts at September 30, 2016 and December 31, 2015 of $1,371 and $1,636, respectively	23,262	23,641
Inventories	1,791	2,502
Unbilled accounts receivable	6,818	6,451
Prepaid expenses and other	809	1,300
Current assets of discontinued operations	32	90
Total Current Assets	33,591	40,673
Net Property and Equipment	3,036	2,651
Long-Term Receivables	1,111	1,224
Intangible Assets, net	3,711	4,716
Deferred Financing Costs, net	104	129
Goodwill	8,173	8,173
Total Assets	49,726	57,566
Current Liabilities
Accounts payable	21,243	22,423
Accrued expenses	4,935	2,909
Unearned revenue	1,188	1,313
Customer deposits	293	471
Other current liabilities	11	11
Current portion of long-term liabilities	25	16
Current liabilities of discontinued operations	133	138
Total Current Liabilities	27,828	27,281
Long-Term Debt, less current maturities	90	60
Long-Term Debt - Related Party	12,732	7,753
Derivative Liability - Related Party	2,220	6,671
Total Liabilities	42,870	41,765
Commitments and Contingencies
Contingently redeemable Series C Preferred stock, $0.01 par value: 10,000 shares authorized, issued and outstanding (includes accrued dividends)	11,786	10,703
Stockholders' Equity
Common stock, $0.0001 par value; 50,000,000 shares authorized 9,680,472 and 9,570,398 issued and outstanding as of September 30, 2016 and December 31, 2015, respectively	1	1
Additional paid-in capital	208,256	208,603
Accumulated deficit	(213,187)	(203,506)
Total Stockholders' Equity (Deficiency)	(4,930)	5,098
Total Liabilities and Stockholders' Equity (Deficiency)	$ 49,726	$ 57,566