HIPCRICKET, INC.

CIK:0001137204|SEC Filings

STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		6 Months Ended
STATEMENTS OF OPERATIONS (USD $)	Aug. 31, 2014	Aug. 31, 2013	Aug. 31, 2014	Aug. 31, 2013
Borrowing base
REVENUE	$ 7,009,631	$ 7,592,735	$ 14,340,431	$ 13,458,299
COST OF REVENUES	3,163,095	3,381,299	6,800,839	5,983,802
OPERATING EXPENSES:
Selling and marketing	2,941,684	2,824,362	6,023,268	6,161,495
Technology and development	1,373,434	1,370,120	3,142,735	3,358,349
General and administrative	3,127,568	2,099,201	6,073,647	4,776,113
Depreciation and amortization	1,040,908	1,278,120	2,329,225	2,553,310
Impairment of intangible assets	6,089,294		6,089,294
Goodwill impairment	35,060,183		35,060,183
Total operating expenses	49,633,071	7,571,803	58,718,352	16,849,267
LOSS FROM OPERATIONS	(45,786,535)	(3,360,367)	(51,178,760)	(9,374,770)
OTHER EXPENSE:
Interest expense, net	(143,468)	(13,888)	(171,973)	(14,689)
NET LOSS BEFORE INCOME TAXES	(45,930,003)	(3,374,255)	(51,350,733)	(9,389,459)
Income tax benefit
NET LOSS	$ (45,930,003)	$ (3,374,255)	$ (51,350,733)	$ (9,389,459)
NET LOSS PER SHARE - Basic and diluted	$ (0.30)	$ (0.03)	$ (0.33)	$ (0.07)
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic and diluted	154,786,916	130,164,694	154,769,253	129,880,120

STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
STATEMENTS OF CASH FLOWS (USD $)	Aug. 31, 2014	Aug. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (51,350,733)	$ (9,389,459)
Depreciation and amortization	2,329,225	2,553,310
Bad debt expense and other	101,976	23,615
Common stock issued for services		271,167
Common stock issued for settlement	35,000
Share-based payments	1,277,011	1,878,715
Impairment of intangible assets	6,089,294
Goodwill impairment	35,060,183
Changes in operating assets and liabilities:
Accounts receivable	(282,893)	(107,597)
Prepaid expenses and other current assets	(106,025)	266,264
Deposits	3,300	(23,111)
Accounts payable and accrued liabilities	4,342,865	(521,806)
Deferred revenue	(391,105)	(252,151)
Long-term liabilities and other	184,924	(34,034)
NET CASH USED IN OPERATING ACTIVITIES	(2,911,978)	(5,335,087)
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash paid for purchase of patents		(43,540)
Cash paid for patent defense costs	(3,429)	(231,068)
Additions to property and equipment	(70,854)
Cash paid for long-term investment		(54,667)
NET CASH USED IN INVESTING ACTIVITIES	(74,283)	(329,275)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds received from line of credit	798,241	1,669,377
Proceeds received from the exercise of stock options and warrants, net		2,500
NET CASH PROVIDED BY FINANCING ACTIVITIES	798,241	1,671,877
NET CHANGE IN CASH AND CASH EQUIVALENTS	(2,188,020)	(3,992,485)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	3,002,442	4,352,691
CASH AND CASH EQUIVALENTS, END OF PERIOD	814,422	360,206
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid	$ 172,103	$ 14,804

BALANCE SHEETS (USD $)	Aug. 31, 2014	Feb. 28, 2014
ASSETS
Cash and cash equivalents	$ 814,422	$ 3,002,442
Restricted cash	419,859	214,751
Accounts receivable, net	6,989,318	6,808,401
Prepaid expenses and other current assets	521,532	415,507
Total current assets	8,745,131	10,441,101
Property and equipment, net	315,632	322,628
Goodwill		35,060,183
Intangible assets, net	12,865,841	21,203,081
Deposits	159,255	162,555
TOTAL ASSETS	22,085,859	67,189,548
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	7,728,319	4,411,606
Accrued liabilities	3,654,787	2,628,635
Deferred revenue	416,493	807,598
Line of credit	3,008,286	2,210,045
Total current liabilities	14,807,885	10,057,884
Deferred income tax liability, net	3,376,383	3,376,383
Accrued liabilities	240,091	55,059
TOTAL LIABILITIES	18,424,359	13,489,326
STOCKHOLDERS' EQUITY:
Common stock, $.0001 par value; 250,000,000 shares authorized; 154,786,916 and 154,661,916 shares issued and outstanding, respectively.	15,479	15,466
Additional paid-in capital	188,645,087	187,333,089
Accumulated deficit	(184,999,066)	(133,648,333)
Total stockholders' equity	3,661,500	53,700,222
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 22,085,859	$ 67,189,548