DRAGONWAVE INC

CIK:0001178946|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
Hardware and other	$ 32,742	$ 70,491
Services	11,174	15,804
REVENUE	43,916	86,295
COST OF SALES
Hardware and other	25,672	58,991
Services	5,477	8,917
Inventory provision	953	4,416
Total Cost of Sales	32,102	72,324
Gross profit	11,814	13,971
EXPENSES
Research and development	7,825	13,406
Selling and marketing	7,363	10,572
General and administrative	12,734	13,798
Total Expenses	27,922	37,776
Loss before other items	(16,108)	(23,805)
Goodwill impairment		(11,927)
Restructuring costs		(1,549)
Amortization of deferred financing cost	(442)
Amortization of intangible assets	(369)	(577)
Accretion expense	(102)	(205)
Interest expense	(1,464)	(2,014)
Warrant issuance expenses	(561)
Change in fair value of warrant liability	4,242	1,119
Foreign exchange loss	(110)	(331)
Loss before income taxes	(14,914)	(39,289)
Income tax expense	783	2,275
Net loss and comprehensive loss	(15,697)	(41,564)
Net income attributable to non-controlling interest	(191)	(740)
Net loss and comprehensive loss attributable to shareholders	$ (15,888)	$ (42,304)
Net loss and comprehensive loss per share
Basic and diluted	$ (3.26)	$ (14.01)
Weighted average shares outstanding
Basic and diluted	4,879,738	3,019,259

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Feb. 28, 2017	Feb. 29, 2016
Operating activities
Net loss	$ (15,697)	$ (41,564)
Items not affecting cash
Goodwill impairment		11,927
Amortization of deferred financing cost	442
Amortization of property and equipment	1,791	1,931
Amortization of intangible assets	369	577
Accretion expense	102	205
Change in fair value of warrant liability	(4,242)	(1,119)
Stock-based compensation	750	988
Unrealized foreign exchange loss	114	485
Deferred income tax expense	(146)	1,841
Net cash used in operating activities before adjusting non-cash working capital items	(16,517)	(24,729)
Changes in non-cash working capital items	9,344	18,236
Net Cash Used in Operating Activities	(7,173)	(6,493)
Investing activities
Acquisition of property and equipment	(606)	(1,311)
Acquisition of intangible assets	(82)	(406)
Net Cash Used in Investing Activities	(688)	(1,717)
Financing activities
Repayments on capital lease obligation	(55)	(507)
Proceeds from debt facility		1,300
Repayment of debt facility	(5,122)	(11,548)
Dividend paid to non-controlling interest in DW-HFCL	(1,105)
Issuance of warrants	5,809
Issuance of common shares, net	8,244	35
Net Cash (Used in) Provided by Financing Activities	7,771	(10,720)
Effect of foreign exchange on cash and cash equivalents	(114)	(485)
Net decrease in cash and cash equivalents	(204)	(19,415)
Cash and cash equivalents at beginning of period	4,277	23,692
Cash and cash equivalents at end of period	4,073	4,277
Cash paid during the period for interest	1,320	2,335
Cash paid during the period for taxes	$ 1,061	$ 522

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Feb. 28, 2017	Feb. 29, 2016
Current Assets
Cash and cash equivalents	$ 4,073	$ 4,277
Trade receivables	11,876	18,986
Inventory	21,415	22,702
Other current assets	1,791	2,777
Total Current Assets	39,155	48,742
Long-term Assets
Property and equipment	2,517	3,702
Intangible assets	336	623
Total Long Term Assets	2,853	4,325
Total Assets	42,008	53,067
Current Liabilities
Debt facility	17,030	22,152
Accounts payable and accrued liabilities	25,206	23,832
Deferred revenue	539	1,944
Deferred tax liability	148	294
Warrant liability		117
Total Current Liabilities	42,923	48,339
Long-term Liabilities
Deferred revenue	435	498
Warrant liability	1,090	3
Total Long Term Liabilities	1,525	501
Commitments and contingencies
Shareholders' Equity (Deficiency)
Capital stock	229,995	221,128
Contributed surplus	10,503	9,235
Deficit	(234,113)	(218,225)
Accumulated other comprehensive loss	(9,618)	(9,618)
Total Shareholders' Equity (Deficiency)	(3,233)	2,520
Non-controlling interest	793	1,707
Total Equity (Deficiency)	(2,440)	4,227
Total Liabilities and Equity (Deficiency)	$ 42,008	$ 53,067
Shares issued and outstanding	7,305,219	3,020,069