PIKSEL, INC.

CIK:0001076700|SEC Filings

Net income (loss) per share

6 Months Ended

Jun. 30, 2012

(4) Net income (loss) per share

Basic net income per share is computed using the weighted average number of common shares outstanding during the applicable period. Diluted net income per share is computed using the weighted average number of common shares outstanding during the period, plus the dilutive effect of potential common stock. Potential common stock consists of shares issuable pursuant to stock options, warrants and restricted stock awards (“RSAs”).

The following table sets forth the components used in the computation of basic and diluted net loss per common share (in thousands, except share and per share data):

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2012			2011			2012			2011
Numerator:
Net loss from continuing operations	$	(102,576	)	$	(18,981	)	$	(124,067	)	$	(30,889	)
Loss from discontinued operations		(48,506	)		(822	)		(51,894	)		(1,415	)
Net loss	$	(151,082	)	$	(19,803	)	$	(175,961	)	$	(32,304	)
Denominator:
Denominator for basic net loss per common share		51,418,613			40,063,874			48,513,809			38,316,369
Effect of dilutive securities:
Stock options		-			-			-			-
Warrants		-			-			-			-
RSAs		-			-			-			-
Denominator for diluted net income (loss) per common share		51,418,613			40,063,874			48,513,809			38,316,369
Basic net loss from continuing operations per common share	$	(1.99	)	$	(0.47	)	$	(2.56	)	$	(0.81	)
Basic net loss from discontinued operations per common share		(0.95	)		(0.02	)		(1.07	)		(0.03	)
Basic net loss per common share	$	(2.94	)	$	(0.49	)	$	(3.63	)	$	(0.84	)
Diluted net loss from continuing operations per common share	$	(1.99	)	$	(0.47	)	$	(2.56	)	$	(0.81	)
Diluted net loss from discontinued operations per common share		(0.95	)		(0.02	)		(1.07	)		(0.03	)
Diluted net loss per common share	$	(2.94	)	$	(0.49	)	$	(3.63	)	$	(0.84	)

All equivalent shares underlying stock options, warrants and RSAs were excluded from the calculation of diluted loss per share because we had net losses for all periods presented and therefore equivalent shares would have an anti-dilutive effect.

Potentially dilutive shares excluded as a result of the effects being anti-dilutive were as follows:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2012		*2011*		2012		*2011*
Stock options		136,370		225,857		1,891,738		281,761
Warrants		77,860		1,013,974		141,971		1,359,444
RSAs		273,432		91,927		273,433		91,927
Total dilutive shares		487,662		1,331,758		2,307,142		1,733,132

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified

6 Months Ended

Jun. 30, 2012

Jun. 30, 2011

Operating Activities:

Net loss

$ (175,961)

$ (32,304)

Adjustments to reconcile net loss to net cash used by operating activities:

Net loss from discontinued operations

51,894

1,415

Provision for doubtful accounts

7,029

131

Depreciation

2,875

2,780

Amortization of intangible assets

5,479

2,689

Amortization of deferred financing costs and debt discount

208

Loss on impairment of goodwill

55,718

Loss on impairment of notes receivable

6,474

Realized loss on investment

1,050

Loss on disposal of property plant and equipment

948

Derivative expense (income)

2,986

(3,042)

Less: merger and acquisition expenses

6,517

Non-cash stock based compensation

15,557

6,410

Non-cash warrants for services

530

1,559

Non-cash stock for services

Changes in assets and liabilities:

Accounts receivable

(800)

(2,904)

Unbilled revenue

(1,692)

523

Inventory

(149)

(268)

Other assets

(1,088)

(2,350)

Accounts payable

3,763

(37)

Accrued expenses

9,943

4,082

Income tax payable

300

(459)

Other liabilities

(2,133)

4,980

Total adjustments

158,942

22,120

Net cash used by operating activities- continuing operations

(17,020)

(10,184)

Net cash used by operating activities- discontinued operations

(8,116)

(1,075)

Net cash used by operating activities

(25,136)

(11,259)

Investing Activities:

Cash paid into investment

(149)

(307)

Cash paid in acquisitions

(5,810)

(120,591)

Cash received in acquisitions

16,860

Receipt of payment on notes receivable

877

Merger and acquisition expenses

(6,517)

Purchase of equipment

(1,824)

(2,266)

Net cash used by investing activities- Continuing operations

(7,783)

(111,944)

Net cash used by investing activities- Discontinued operations

(144)

(24)

Net cash used by investing activities

(7,927)

(111,968)

Financing Activities:

Proceeds from private placement, net

27,174

Proceeds from exercise of stock options

483

837

Payments made to restricted cash accounts and letters of credit

(3,495)

(143)

Proceeds from exercise of warrants

2,982

Proceeds from issuance of secured notes

15,000

Payments of secured notes

(2,889)

(751)

Repayments of notes payable

(2,225)

Payment on capital leases

(65)

(248)

Net cash from financing activities- Continuing operations

18,983

17,677

Net cash used by financing activities- Discontinued operations

Net cash from financing activities

18,983

17,761

Effect of exchange rate changes on cash

413

2,043

Net increase (decrease) in cash and cash equivalents

(13,667)

(103,423)

Cash and cash equivalents - beginning of period

44,229

^[1]

140,585

Cash and cash equivalents - end of period

30,562

37,162

Cash paid during the period for:

Income taxes

222

439

Interest

1,273

660

Non-cash investing and financing activities:

Non-cash issuances of stock for acquisitions (2,717,530 and 7,582,056 shares issued, respectively)

$ (15,273)

$ (76,218)

[1]	The Company has recasted its December 31, 2011 balance sheet as part of the Sezmi acquisition and certain assets and liabilities have been reclassified as part of Discontinued Operations. See Note 2.

CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, unless otherwise specified

Jun. 30, 2012

Dec. 31, 2011

Current assets:

Cash and cash equivalents

$ 30,562

$ 44,229

^[1]

Restricted cash

5,346

238

^[1]

Investments

1,015

1,915

^[1]

Accounts receivable, net

42,924

56,672

^[1]

Unbilled revenue

18,249

12,533

^[1]

Inventory, net

1,488

1,336

^[1]

Other receivable, current portion

1,690

2,756

^[1]

Deferred tax assets, current portion

399

^[1]

Other current assets

11,091

10,514

^[1]

Current assets held for sale

20,938

^[1]

Total current assets

112,764

151,530

^[1]

Property and equipment, net

9,096

11,071

^[1]

Other receivable, net of current

8,668

5,876

^[1]

Deferred tax assets, net of current

611

600

^[1]

Intangible assets

58,305

63,835

^[1]

Goodwill

167,619

206,101

^[1]

Long-term assets held for sale

34,168

^[1]

Total assets

357,063

473,181

^[1]

Current liabilities:

Capital lease and other obligations, current portion

127

169

^[1]

Secured notes payable, net of debt discount, current portion

7,298

6,406

^[1]

Notes payable

2,525

^[1]

Accounts payable

20,688

16,599

^[1]

Accrued expenses

15,973

6,387

^[1]

Deferred revenue

6,066

5,066

^[1]

Income tax payable

1,718

1,410

^[1]

Deferred tax liability, current portion

344

^[1]

Acquisition liabilities, current portion

17,032

8,648

^[1]

Derivative liability

28,388

557

^[1]

Other current liabilities

27,702

25,546

^[1]

Current liabilities held for sale

11,293

^[1]

Total current liabilities

125,336

84,950

^[1]

Capital lease and other obligations, net of current

^[1]

Secured notes payable, net of current

8,088

11,868

^[1]

Deferred tax liability, net of current

9,919

11,659

^[1]

Acquisition liabilities, net of current

3,438

8,004

^[1]

Long-term liabilities held for sale

2,939

^[1]

Total liabilities

146,851

119,511

^[1]

Stockholders' equity:

Common stock, $0.0001 par value: authorized 150,000,000 shares; issued and outstanding 56,622,201 and 46,342,851, respectively

^[1]

Additional paid-in capital

547,605

513,882

^[1]

Accumulated deficit

(332,287)

(156,326)

^[1]

Accumulated other comprehensive loss

(5,112)

(3,891)

^[1]

Total stockholders' equity

210,212

353,670

^[1]

Total liabilities and stockholders' equity

$ 357,063

$ 473,181

^[1]

[1]	The Company has recasted its December 31, 2011 balance sheet as part of the Sezmi acquisition and certain assets and liabilities have been reclassified as part of Discontinued Operations. See Note 2.