MDU COMMUNICATIONS INTERNATIONAL INC

CIK:0001086139|SEC Filings

EARNINGS (LOSS) PER COMMON SHARE (Tables)

9 Months Ended

Jun. 30, 2013

Summary of Potentially Dilutive Common Shares

For the nine and three months ended June 30, 2013 and 2012, basic and diluted loss per share were the same, as the Company had net losses for these periods and the effect of the assumed exercise of options and warrants would be anti-dilutive. For the nine and three months ended June 30, 2013 and 2012, the Company had potentially dilutive common shares attributable to options and warrants that were exercisable (or potentially exercisable) into shares of common stock as presented in the following table:

	Nine and Three Months Ended June 30,
	2013		2012
Warrants		—		75,000
Options		121,280		200,780
Potentially dilutive common shares		121,280		275,780

Condensed Consolidated Statements of Cash Flows (USD $)	9 Months Ended
Condensed Consolidated Statements of Cash Flows (USD $)	Jun. 30, 2013	Jun. 30, 2012
OPERATING ACTIVITIES
Net loss	$ (2,927,230)	$ (5,613,759)
Adjustments to reconcile net loss to net cash used in operating activities:
Bad debt provision	394,110	222,874
Depreciation and amortization	3,593,159	4,895,143
Share-based compensation expense - employees	17,865	36,260
Charge to interest expense for amortization of deferred finance costs and debt discount	284,623	290,446
Compensation expense for issuance of common stock for employee bonuses	0	10,625
Compensation expense for issuance of restricted common stock for compensation	32,130	56,225
Compensation expense accrued to be settled through the issuance of restricted common stock	0	73,652
Gain on sale of customers and property and equipment	(1,800,963)	(250,566)
Loss on write-off of property and equipment	9,093	10,261
Changes in operating assets and liabilities:
Accounts and other receivables	(794,367)	375,733
Prepaid expenses and deposits	30,927	489,006
Accounts payable	251,283	(192,313)
Other accrued liabilities	(183,698)	(618,061)
Deferred revenue	809,012	(264,632)
Net cash used in operating activities	(284,056)	(479,106)
INVESTING ACTIVITIES
Purchase of property and equipment	(989,736)	(2,005,610)
Proceeds from the sale of customers and property and equipment	2,353,750	337,775
Net cash provided by (used in) investing activities	1,364,014	(1,667,835)
FINANCING ACTIVITIES
Net proceeds from (repayment of) credit line borrowing	(988,537)	2,366,290
Deferred financing costs	(69,178)	(200,000)
Net cash provided by (used in) financing activities	(1,057,715)	2,166,290
NET INCREASE IN CASH AND CASH EQUIVALENTS	22,243	19,349
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	104,124	84,747
CASH AND CASH EQUIVALENTS, END OF PERIOD	126,367	104,096
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Interest paid	2,149,526	2,361,184
Accrued Compensation
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Stock issued, Value	0	5,400
Restricted Stock \| Employee wages
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Stock issued, Value	$ 0	$ 53,224

Condensed Consolidated Balance Sheets (USD $)	Jun. 30, 2013	Sep. 30, 2012
CURRENT ASSETS
Cash and cash equivalents	$ 126,367	$ 104,124
Accounts and other receivables, net of an allowance of $2,122,524 and $1,731,441	1,749,480	1,349,223
Prepaid expenses and deposits	85,957	116,783
TOTAL CURRENT ASSETS	1,961,804	1,570,130
Telecommunications equipment inventory	354,525	567,649
Property and equipment, net of accumulated depreciation of $39,113,766 and $37,195,095	13,682,602	16,260,148
Intangible assets, net of accumulated amortization of $8,347,160 and $8,501,453	643,235	1,017,868
Deposits, net of current portion	66,786	66,887
Deferred finance costs, net of accumulated amortization of $1,842,627 and $1,591,222	0	182,227
TOTAL ASSETS	16,708,952	19,664,909
CURRENT LIABILITIES
Accounts payable	2,701,784	2,450,501
Other accrued liabilities	611,790	795,488
Credit line borrowing, net of debt discount	27,615,824	28,571,143
Current portion of deferred revenue	1,309,723	467,004
TOTAL CURRENT LIABILITIES	32,239,121	32,284,136
Deferred revenue, net of current portion	0	33,707
TOTAL LIABILITIES	32,239,121	32,317,843
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' DEFICIENCY
Preferred stock, par value $0.001; 5,000,000 shares authorized, none issued	0	0
Common stock, par value $0.001; 35,000,000 shares authorized, 5,717,262 and 5,690,262 shares issued and 5,699,820 and 5,672,820 shares outstanding	5,719	5,692
Additional paid-in capital	62,158,829	62,108,861
Accumulated deficit	(77,626,393)	(74,699,163)
Less: Treasury stock; 17,442 shares	(68,324)	(68,324)
TOTAL STOCKHOLDERS’ DEFICIENCY	(15,530,169)	(12,652,934)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIENCY	$ 16,708,952	$ 19,664,909