IMPLANT SCIENCES CORP

CIK:0001068874|SEC Filings

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Income Statement
Revenues	$ 206	$ 10,923	$ 16,893	$ 35,608
Cost of revenues	166	7,691	11,476	22,266
Gross margin	40	3,232	5,417	13,342
Operating expenses:
Research and development	36	1,040	1,892	3,024
Selling, general and administrative	5,534	3,811	16,809	11,067
Income from sale of assets	(104,791)		(104,791)
Total operating expenses	(99,221)	4,851	(86,090)	14,091
(Loss) income from operations	99,261	(1,619)	91,507	(749)
Other income (expense), net:
Interest expense	(2,823)	(2,477)	(34,199)	(7,571)
Derivative mark-to-market warrant	362		13,899
Total other income (expense), net	(2,461)	(2,477)	(20,300)	(7,571)
Net income (loss) before provision for income taxes	96,800	(4,096)	71,207	(8,320)
Provision for income taxes	2,000		2,000
Net income (loss)	94,800	(4,096)	69,207	(8,320)
Preferred dividends	(263)		(660)
Net income (loss) applicable to common shareholders	94,537	(4,096)	68,547	(8,320)
Other comprehensive loss, net of tax - foreign currency translation adjustments		(9)		(19)
Comprehensive income (loss)	$ 94,537	$ (4,105)	$ 68,547	$ (8,339)
Net income (loss) per share, basic	$ 1.19	$ (0.05)	$ 0.87	$ (0.11)
Net income (loss) per share, diluted	1.19	(0.05)	0.87	(0.11)
Net income (loss) per share applicable to common stockholders, basic	1.18	(0.05)	0.87	(0.11)
Net income (loss) per share applicable to common stockholders, diluted	$ 1.18	$ (0.05)	$ 0.87	$ (0.11)
Weighted average shares used in computing net income (loss) per common share, basic	79,886,165	78,878,953	79,814,516	77,871,509
Weighted average shares used in computing net income (loss) per common share, diluted	79,886,165	78,878,953	79,767,294	77,871,509

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net income (loss)	$ 69,207	$ (8,320)
Adjustments to reconcile net loss to net cash flows used in activities:
Depreciation and amortization	79	153
Bad debt expense (recoveries)	34	(6)
Stock-based compensation expense	592	982
Warrants issued to non-employees	15	58
Common stock issued to consultants	429	579
Non-cash interest expense	24,920
Executive severance expense	16
Change in fair value of warrant derivative liability	(13,899)
(Gain) loss on sale of assets and liabilities	(104,791)	3
Changes in assets and liabilities:
(Increase) decrease in accounts receivable	3,363	(5,590)
(Increase) decrease in inventories	(6,187)	(737)
(Increase) decrease in restricted cash	(367)	356
(Increase) decrease in prepaid expenses and other current assets	(560)
(Increase) decrease in operating cash and equivalents	(3,712)
(Increase) decrease in security deposits	(98)
Increase (decrease) in accounts payable	1,371	2,122
Increase (decrease) in accrued expenses	7,088	9,880
Increase (decrease) in deferred revenue	563	(2,087)
Net cash used in operating activities	(21,937)	(2,607)
Cash flows from investing activities:
Purchases of property and equipment	(21)	(117)
Proceeds from sale of assets and liabilities	113,447
Net cash used in investing activities	113,426	(117)
Cash flows from financing activities:
Proceeds from common stock issued in connection with exercise of stock options		37
Principal repayments of long-term debt and capital lease obligations	(20,053)	(36)
Net borrowings on line of credit		1,000
Net cash provided by financing activities	(20,053)	1,001
Effect of exchange rate changes on cash and cash equivalents	(22)	18
Net change in cash and cash equivalents	71,414	(1,705)
Cash and cash equivalents at beginning of period	1,338	1,985
Cash and cash equivalents at end of period	$ 72,752	$ 280

Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands

Mar. 31, 2017

Jun. 30, 2016

Current assets:

Cash and cash equivalents

$ 72,752

$ 1,338

Restricted cash and investments

367

Accounts receivable-trade, net

^[1]

7,123

^[2]

Inventories, net

4,681

Prepaid expenses and other current assets

464

Total current assets

73,216

13,973

Property and equipment, net

874

Other non-current assets

Total assets

73,216

14,945

Current liabilities:

Senior secured promissory note

1,000

21,000

Senior secured convertible promissory notes

34,777

^[3]

41,777

^[4]

Line of credit

17,662

Current maturities of obligations under capital lease

Accrued expenses

13,934

15,181

Accounts payable

2,499

4,655

Income taxes payable

2,000

Deferred revenue

406

Total current liabilities

71,872

100,699

Long-term liabilities:

Long-term obligations under capital lease, net of current maturities

Deferred revenue, net of current

479

Total long-term liabilities

514

Total liabilities

71,872

101,213

Commitments and contingencies

Stockholders' deficit:

Common stock

^[5]

^[6]

Preferred stock

^[7]

^[8]

Series G, H, I and J Convertible Preferred Stock

7,000

^[9]

^[10]

Additional paid-in capital

125,883

114,255

Accumulated deficit

(131,538)

(200,084)

Deferred compensation

(8)

(467)

Other comprehensive income

Treasury stock

(73)

^[11]

(73)

^[12]

Total stockholders' deficit

1,344

(86,268)

Total liabilities and stockholders' deficit

$ 73,216

$ 14,945

[1]	Allowance for doubtful accounts of $0 at March 31, 2017.
[2]	Allowance for doubtful accounts of $7 at June 30, 2016.
[3]	Senior secured convertible promissory notes (the "Note") as of March 31, 2017 composed of i) first Note of $5,284; ii) second Note of $11,970;and, iii) third Note of $17,523.
[4]	Senior secured convertible promissory notes (the "Note") as of June 30, 2016 composed of i) first Note of $5,284; ii) second Note of $18,970;and, iii) third Note of $17,523.
[5]	$0.001 par value; 250,000,000 shares authorized; 79,886,165 issued and 79,875,620 outstanding at March 31, 2017.
[6]	$0.001 par value; 200,000,000 shares authorized; 79,396,165 issued and 79,385,620 outstanding at June 30, 2016.
[7]	no stated value; 5,000,000 shares authorized at March 31, 2017.
[8]	no stated value; 5,000,000 shares authorized at June 30, 2016.
[9]	no par value; Series G, I and J - 650,000 shares, 21,000 shares and 6,500 shares authorized and 0 shares, 0 shares and 0 shares issued and outstanding, respectively, at March 31, 2017. Series H - 22,500 shares authorized and 7,000 shares issued and outstanding as of March 31, 2017.
[10]	no par value; Series G, H, I and J - 650,000 shares, 22,500 shares, 21,000 shares and 6,500 shares authorized and 0 shares, 0 shares, 0 shares and 0 shares issued and outstanding, respectively, at June 30, 2016.
[11]	10,545 common shares, at cost, at March 31, 2017.
[12]	10,545 common shares, at cost, at June 30, 2016.