UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): | November 10, 2009 |
Cumberland Pharmaceuticals Inc.
__________________________________________
(Exact name of registrant as specified in its charter)
Tennessee | 001-33637 | 62-1765329 |
_____________________ (State or other jurisdiction |
_____________ (Commission |
______________ (I.R.S. Employer |
of incorporation) | File Number) | Identification No.) |
2525 West End Avenue, Suite 950, Nashville, Tennessee | 37203 | |
_________________________________ (Address of principal executive offices) |
___________ (Zip Code) |
Registrants telephone number, including area code: | (615) 255-0068 |
Not Applicable
______________________________________________
Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 2.02 Results of Operations and Financial Condition.
On November 10, 2009, Cumberland Pharmaceuticals Inc. (the "Company") issued a press release announcing the operating results for the three and nine months ended September 30, 2009. A copy of the press release is furnished as Exhibit 99.1.
This information is furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, unless specifically incorporated by reference in a document filed under the Securities Act of 1933, as amended, or the Exchange Act. By filing this report on Form 8-K and furnishing this information, the Company makes no admission as to the materiality of any information in this report that is required to be disclosed solely by Item 2.02.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
99.1 Press release dated November 10, 2009
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Cumberland Pharmaceuticals Inc. | ||||
November 10, 2009 | By: |
/s/ David L. Lowrance
|
||
|
||||
Name: David L. Lowrance | ||||
Title: Chief Financial Officer |
Exhibit Index
Exhibit No. | Description | |
|
|
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99.1
|
Press release dated November 10, 2009 |
CUMBERLAND PHARMACEUTICALS REPORTS 58% INCREASE IN NET
REVENUE WITH THIRD QUARTER 2009 FINANCIAL RESULTS
- CaldolorÒ begins generating revenue
20% increase in revenue for AcetadoteÒ and KristaloseÒ
- Profitability maintained through CaldolorÒ launch
NASHVILLE, TN, November 10, 2009 Cumberland Pharmaceuticals Inc. (Nasdaq: CPIX), a specialty pharmaceutical company focused on the hospital acute care and gastroenterology markets, today announced third quarter 2009 financial results.
With an earlier-than-anticipated Caldolor launch, we were able to dramatically exceed our earnings expectations in the third quarter, said A.J. Kazimi, Chief Executive Officer of Cumberland Pharmaceuticals. Additionally, the completion of our initial public offering in August provides us with the strongest balance sheet in the history of the Company. We intend to put that capital to good use not only by supporting the Caldolor launch, but also by adding select new products to our portfolio that can benefit patients and enhance shareholder value.
Net Revenue: For the three months ended September 30, 2009, net revenue was $13.6 million, up 58% from the corresponding period in 2008. This growth was attributable to initial revenue from CaldolorÒ (ibuprofen) Injection, the Companys recently approved IV treatment for pain and fever, as well as an increase in volume for AcetadoteÒ (acetylcysteine) Injection, Cumberlands treatment for acetaminophen overdose. Net revenue for the nine months ended September 30, 2009, was $32.8 million, up 30% from $25.3 million for the same period in 2008, also primarily due to the Caldolor launch and Acetadote sales growth.
Operating Expenses: Total operating expenses for the three months ended September 30, 2009, were $11.2 million, compared to $6.5 million for the same period in 2008. This increase was due primarily to sales and marketing expense associated with the Caldolor launch, higher cost of products sold resulting from sales growth and a change in product mix, as well as a significant, non-recurring payroll tax expense of $1.0 million related to the exercise of non-qualified options. For the nine-month period ended September 30, 2009, total operating expenses were $27.7 million, compared with $19.5 million for the corresponding period in 2008. This increase primarily reflected Caldolor milestone obligations related to FDA approval, the aforementioned payroll tax expense, costs incurred in connection with the Companys hospital sales force expansion, and increased marketing and advertising costs associated with the Caldolor launch.
Net Income: Net income for the three months ended September 30, 2009, grew to $1.3 million, or $0.07 per diluted share, compared to $1.2 million, or $0.07 per diluted share, for the same period in 2008. Excluding the non-recurring payroll tax expense, net income for the three months ended September 30, 2009, would have increased 54% to $1.9 million, or $0.10 per diluted share.
Net income for the nine months ended September 30, 2009, was $2.8 million, or $0.16 per diluted share, compared to $3.7 million, or $0.22 per diluted share, for the corresponding period in 2008. The decrease is due primarily to milestone obligations triggered by FDA approval of Caldolor in the second quarter of 2009, as well as the aforementioned sales force expansion and option-related payroll tax. Excluding Caldolor milestone payments and the non-recurring payroll tax expense, net income for the nine months ended September 30, 2009, would have grown 25% to $4.6 million, or $0.27 per diluted share.
Cash and Cash Equivalents: As of September 30, 2009, Cumberland had $79.5 million in cash and cash equivalents, a $67.7 million increase from June 30, 2009. The increase was largely due to the Companys initial public offering in August. At quarters end, Cumberland had total debt of $19.8 million, including $4.5 million in current liabilities. The Company had net accounts receivable and inventories of $7.3 million and $1.7 million, respectively, at September 30, 2009.
Third Quarter Highlights
Caldolor Launch
In September 2009, Cumberland successfully launched Caldolor in the U.S, and the Companys hospital and field sales forces comprised of 113 experienced sales professionals are now promoting the product. Caldolor is fully stocked at wholesalers serving hospitals nationwide, and is available in both 400 mg and 800 mg vials. The Company is working to introduce Caldolor and secure formulary approval nationally. The product is now stocked in a number of medical facilities across the country. In addition to personal sales promotion Cumberland is supporting the product through a multi-faceted campaign, including internet and media advertising, medical society and convention presence, journal publications, and its medical information call center, among other initiatives.
Initial Public Offering
In August 2009, Cumberland completed its initial public offering of 5,000,000 shares of common stock at a price to the public of $17.00 per share, raising $85.0 million in gross proceeds. Net proceeds to the Company were $74.8 million after commissions and offering expenses. The proceeds from this offering are being used primarily for potential acquisitions, the launch of Caldolor, expansion of the Companys hospital sales force, product development, debt repayment and general corporate purposes. Cumberlands common stock began trading on the NASDAQ Global Select Market on August 11, 2009, under the trading symbol CPIX.
Recent Events
International Markets
In October 2009, the Company announced that it has entered into an exclusive agreement with Phebra Pty Ltd., an Australian-based specialty pharmaceutical company, for the commercialization of Caldolor in Australia and New Zealand. Phebra will be responsible for obtaining any regulatory approval for the product, and for handling ongoing regulatory requirements, product marketing, distribution and sales in the territories. Cumberland will maintain responsibility for product formulation, development and manufacturing, and will provide finished product to Phebra. Under the terms of the agreement, Cumberland will receive upfront and milestone payments as well as a transfer price, and will also receive royalties on any future sales of Caldolor in those territories.
New Intellectual Property Initiative for Caldolor
In addition to Cumberlands issued patent for Caldolor, the Company has filed the first of several expected new patent applications for the product. Cumberlands clinical research uncovered several new product-related discoveries, for which the Company filed several provisional patent applications. Part of an ongoing initiative to protect the Companys intellectual property, this new patent application addresses Cumberlands proprietary method of dosing intravenous ibuprofen.
Supplemental Financial Information
The following tables provide a reconciliation of Cumberlands reported (GAAP) statements of income to adjusted (non-GAAP) statements of income for the three- and nine-month periods ended September 30, 2009. The adjusted statements exclude certain non-recurring items, and are provided by management to assist investors in evaluating Cumberlands operating results. The adjusted statements should not be considered a substitute for Cumberlands reported statements of income.
Three Months Ended September 30, 2009 | As | As | ||||||||||||||
reported | Adjustments | adjusted | ||||||||||||||
Net revenues |
$ | 13,597,760 | | $ | 13,597,760 | |||||||||||
Costs and expenses: |
||||||||||||||||
Cost of products sold |
1,761,069 | | 1,761,069 | |||||||||||||
Selling and marketing |
6,087,807 | | 6,087,807 | |||||||||||||
Research and development |
640,877 | | 640,877 | |||||||||||||
General and administrative |
2,537,627 | (977,258 | ) | (1 | ) | 1,560,369 | ||||||||||
Amortization of product license right |
171,726 | | 171,726 | |||||||||||||
Other |
26,595 | | 26,595 | |||||||||||||
Total costs and expenses |
11,225,701 | (977,258 | ) | 10,248,443 | ||||||||||||
Operating income |
2,372,059 | 977,258 | 3,349,317 | |||||||||||||
Interest income |
14,285 | | 14,285 | |||||||||||||
Interest expense |
(248,272 | ) | | (248,272 | ) | |||||||||||
Net income before income taxes |
2,138,072 | 977,258 | 3,115,330 | |||||||||||||
Income tax expense |
(855,660 | ) | (403,608 | ) | (1 | ) | (1,259,268 | ) | ||||||||
Net income |
1,282,412 | 573,650 | 1,856,062 | |||||||||||||
Net loss at subsidiary attributable to
noncontrolling interests |
5,725 | | 5,725 | |||||||||||||
Net income attributable to common shareholders |
$ | 1,288,137 | 573,650 | $ | 1,861,787 | |||||||||||
Weighted-average shares outstanding diluted |
19,183,606 | 19,183,606 | ||||||||||||||
Earnings per share diluted |
$ | 0.07 | $ | 0.10 | ||||||||||||
Notes to reconciliation of reported statement of income to adjusted statement of income: |
||||||||||||||||
1. To exclude payroll-related taxes and income tax benefit associated with the exercise of non-qualified options in 2009. |
Nine Months Ended September 30, 2009 | As | As | ||||||||||||||
reported | Adjustments | adjusted | ||||||||||||||
Net revenues |
$ | 32,822,972 | | $ | 32,822,972 | |||||||||||
Costs and expenses: |
||||||||||||||||
Cost of products sold |
3,271,363 | | 3,271,363 | |||||||||||||
Selling and marketing |
14,611,796 | | 14,611,796 | |||||||||||||
Research and development |
4,041,719 | (1,950,362 | ) | (1 | ) | 2,091,357 | ||||||||||
General and administrative |
5,218,925 | (1,093,464 | ) | (2 | ) | 4,125,461 | ||||||||||
Amortization of product license right |
515,178 | | 515,178 | |||||||||||||
Other |
80,791 | | 80,791 | |||||||||||||
Total costs and expenses |
27,739,772 | (3,043,826 | ) | 24,695,946 | ||||||||||||
Operating income |
5,083,200 | 3,043,826 | 8,127,026 | |||||||||||||
Interest income |
42,041 | | 42,041 | |||||||||||||
Interest expense |
(430,207 | ) | | (430,207 | ) | |||||||||||
Net income before income taxes |
4,695,034 | 3,043,826 | 7,738,860 | |||||||||||||
Income tax expense |
(1,919,356 | ) | (1,257,100 | ) | (3 | ) | (3,176,456 | ) | ||||||||
Net income |
2,775,678 | 1,786,726 | 4,562,404 | |||||||||||||
Net loss at subsidiary attributable to noncontrolling interests |
26,420 | | 26,420 | |||||||||||||
Net income attributable to common shareholders |
$ | 2,802,098 | 1,786,726 | $ | 4,588,824 | |||||||||||
Weighted-average shares outstanding diluted |
17,143,348 | 17,143,348 | ||||||||||||||
Earnings per share diluted |
$ | 0.16 | $ | 0.27 | ||||||||||||
Notes to reconciliation of reported statement of income to adjusted statement of income: |
||||||||||||||||
1. To exclude milestone expenses associated with the FDA approval of Caldolor. |
||||||||||||||||
2. To exclude payroll-related taxes associated with the exercise of non-qualified options in 2009. |
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3. To include the tax impact of adjustments. |
Conference Call and Webcast
A conference call and live webcast will be held on Tuesday, November 10, 2009, at 10:00 a.m. Eastern Time to discuss the Companys third quarter 2009 financial results. To participate on the call, please dial 888-417-8462 (for U.S. callers) or 719-457-2552 (for international callers). A rebroadcast of the teleconference will be available for one week and can be accessed by dialing 888-203-1112 (for U.S. callers) or 719-457-0820 (for international callers). The passcode for the rebroadcast is 9695498. The live webcast and rebroadcast can be accessed via Cumberland Pharmaceuticals website at http://investor.shareholder.com/cpix/events.cfm.
About Cumberland Pharmaceuticals
Cumberland Pharmaceuticals Inc. is a Tennessee-based specialty pharmaceutical company focused on the acquisition, development and commercialization of branded prescription products. The Companys primary target markets include hospital acute care and gastroenterology. Cumberlands product portfolio includes Acetadote® (acetylcysteine) Injection for the treatment of acetaminophen poisoning and Kristalose® (lactulose) for Oral Solution, a prescription laxative. The Company also recently launched Caldolor® (ibuprofen) Injection, the first injectable treatment for pain and fever available in the United States. Cumberland is dedicated to providing innovative products which improve quality of care for patients. The Company completed the initial public offering of its common stock in August 2009. For more information on Cumberland Pharmaceuticals, please visit www.cumberlandpharma.com.
About Caldolor
Caldolor is indicated for the management of mild to moderate pain and management of moderate to severe pain as an adjunct to opioid analgesics, as well as the reduction of fever in adults. It is the first FDA-approved intravenous therapy for fever. Caldolor is contraindicated in patients with known hypersensitivity to ibuprofen or other NSAIDs, patients with asthma, urticaria, or allergic type reactions after taking aspirin or other NSAIDs. Caldolor is contraindicated for use during the peri-operative period in the setting of coronary artery bypass graft (CABG) surgery. Caldolor should be used with caution in patients with prior history of ulcer disease or GI bleeding, in patients with fluid retention or heart failure, in the elderly, those with renal impairment, heart failure, liver impairment, and those taking diuretics or ACE inhibitors. Blood pressure should be monitored during treatment with Caldolor. For full prescribing information, including boxed warning, visit www.caldolor.com.
About Acetadote
Acetadote is used in the emergency department to prevent or lessen potential liver damage resulting from an overdose of acetaminophen, a common ingredient in many over-the-counter painkillers. It is the only approved injectable product in the United States for the treatment of acetaminophen overdose, the leading cause of poisonings presenting in emergency departments in the country1. Acetadote is contraindicated in patients with hypersensitivity or previous anaphylactoid reactions to acetylcysteine or any components of the preparation. Serious anaphylactoid reactions, including death in a patient with asthma, have been reported in patients administered acetylcysteine intravenously. Acetadote should be used with caution in patients with asthma, or where there is a history of bronchospasm. The total volume administered should be adjusted for patients less than 40 kg and for those requiring fluid restriction. To avoid fluid overload, the volume of diluent should be reduced as needed. If volume is not adjusted, fluid overload can occur, potentially resulting in hyponatremia, seizure, and death. For full prescribing information, visit www.acetadote.net.
1 National Poison Data System, American Association of Poison Control Centers
About Kristalose
Kristalose is indicated for the treatment of acute and chronic constipation. It is a unique, proprietary, crystalline form of lactulose, with no restrictions on length of therapy or patient age. Initial dosing may produce flatulence and intestinal cramps, which are usually transient. Excessive dosage can lead to diarrhea with potential complications such as loss of fluids, hypokalemia and hypernatremia. Nausea and vomiting have been reported. Use with caution in diabetics. Kristalose is contraindicated in patients who require a low-galactose diet. Elderly, debilitated patients who receive lactulose for more than six months should have serum electrolytes (potassium, chloride, carbon dioxide) measured periodically. For full prescribing information, visit www.kristalose.com.
Forward Looking Statements
This press release contains forward-looking statements, including statements regarding estimated results of operations in future periods. These statements are subject to the finalization of Cumberlands quarterly financial and accounting procedures and reflect Cumberlands current views with respect to future events, based on what it believes are reasonable assumptions. No assurance can be given that these events will occur. As with any business, all phases of Cumberlands operations are subject to influences outside its control. Any one or a combination of these factors could materially affect the results of Cumberlands operations. These factors include, among other things, market conditions, commercialization of Caldolor, competition from existing and new products, which could diminish the commercial potential of Cumberlands products, an inability of manufacturers to produce Cumberlands products on a timely basis or a failure of manufacturers to comply with stringent regulations applicable to pharmaceutical manufacturers, maintaining and building an effective sales and marketing infrastructure, Cumberlands ability to identify and acquire rights to products, government regulation, the possibility that Cumberlands marketing exclusivity and patent rights may provide limited protection from competition, and other factors discussed in the Companys Registration Statement declared effective by the SEC on August 10, 2009. There can be no assurance that the results or developments anticipated by the Company will be realized or, even if substantially realized, that they will have the expected effects on the Companys business and operations. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company does not undertake any obligation to release publicly any revisions to these statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
SOURCE: Cumberland Pharmaceuticals Inc.
Investor Contacts:
Angela Novak
Corporate Relations
(615) 255-0068
anovak@cumberlandpharma.com
Kathy Waller
Financial Relations Board
(312) 543-6708
Media Contacts:
Paula Lovell
Lovell Communications
(615)297-7766
CUMBERLAND PHARMACEUTICALS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
December 31, | September 30, | |||||||
2008 | 2009 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 11,829,551 | $ | 79,541,274 | ||||
Accounts receivable, net of allowances |
3,129,347 | 7,282,371 | ||||||
Inventories |
1,762,776 | 1,687,591 | ||||||
Prepaid and other current assets |
481,312 | 2,536,202 | ||||||
Deferred tax assets |
507,212 | 505,617 | ||||||
Total current assets |
17,710,198 | 91,553,055 | ||||||
Property and equipment, net |
432,413 | 597,238 | ||||||
Intangible assets, net |
8,528,732 | 8,099,612 | ||||||
Deferred tax assets |
1,000,031 | 990,661 | ||||||
Other assets |
3,447,813 | 415,170 | ||||||
Total assets |
$ | 31,119,187 | $ | 101,655,736 | ||||
LIABILITIES AND EQUITY |
||||||||
Current liabilities: |
||||||||
Current portion of long-term debt |
$ | 1,250,000 | $ | 4,500,000 | ||||
Current portion of other long-term obligations |
457,915 | 204,027 | ||||||
Accounts payable |
3,257,164 | 5,797,596 | ||||||
Other accrued liabilities |
2,640,855 | 3,056,915 | ||||||
Total current liabilities |
7,605,934 | 13,558,538 | ||||||
Revolving line of credit |
1,825,951 | 1,825,951 | ||||||
Long-term debt, excluding current portion |
3,750,000 | 13,500,000 | ||||||
Other long-term obligations, excluding current portion |
382,487 | 180,652 | ||||||
Total liabilities |
13,564,372 | 29,065,141 | ||||||
Commitments and contingencies |
||||||||
Redeemable common stock |
| 1,930,000 | ||||||
Shareholders equity: |
||||||||
Cumberland Pharmaceuticals Inc. shareholders equity: |
||||||||
Convertible preferred stock no par value; 3,000,000 shares |
||||||||
authorized; 812,749 and 0 shares issued and outstanding |
2,604,070 | | ||||||
as of December 31, 2008 and September 30, 2009, respectively |
||||||||
Common stock no par value; 100,000,000 shares authorized; |
||||||||
9,903,047 and 20,129,791(1) shares issued and outstanding |
||||||||
as of December 31, 2008 and September 30, 2009, respectively |
13,500,034 | 66,434,206 | ||||||
Retained earnings |
1,450,711 | 4,252,809 | ||||||
Total shareholders equity |
17,554,815 | 70,687,015 | ||||||
Noncontrolling interests |
| (26,420 | ) | |||||
Total equity |
17,554,815 | 70,660,595 | ||||||
Total liabilities and equity |
$ | 31,119,187 | $ | 101,655,736 | ||||
_________________ |
||||||||
(1) Number of shares issued and outstanding represents total shares of common stock regardless of |
||||||||
classification on the consolidated balance sheet. The number of shares of redeemable common stock at September |
||||||||
30, 2009 was 119,209. |
CUMBERLAND PHARMACEUTICALS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2008 | 2009 | 2008 | 2009 | |||||||||||||
Net revenues |
$ | 8,602,709 | $ | 13,597,760 | $ | 25,264,068 | $ | 32,822,972 | ||||||||
Costs and expenses: |
||||||||||||||||
Cost of products sold |
735,492 | 1,761,069 | 2,228,213 | 3,271,363 | ||||||||||||
Selling and marketing |
3,620,243 | 6,087,807 | 10,629,045 | 14,611,796 | ||||||||||||
Research and development |
730,640 | 640,877 | 2,759,042 | 4,041,719 | ||||||||||||
General and administrative |
1,167,687 | 2,537,627 | 3,272,420 | 5,218,925 | ||||||||||||
Amortization of product license right |
171,726 | 171,726 | 515,178 | 515,178 | ||||||||||||
Other |
26,413 | 26,595 | 77,635 | 80,791 | ||||||||||||
Total costs and expenses |
6,452,201 | 11,225,701 | 19,481,533 | 27,739,772 | ||||||||||||
Operating income |
2,150,508 | 2,372,059 | 5,782,535 | 5,083,200 | ||||||||||||
Interest income |
53,257 | 14,285 | 186,276 | 42,041 | ||||||||||||
Interest expense |
(48,647 | ) | (248,272 | ) | (172,628 | ) | (430,207 | ) | ||||||||
Net income before income taxes |
2,155,118 | 2,138,072 | 5,796,183 | 4,695,034 | ||||||||||||
Income tax expense |
(946,109 | ) | (855,660 | ) | (2,133,501 | ) | (1,919,356 | ) | ||||||||
Net income |
1,209,009 | 1,282,412 | 3,662,682 | 2,775,678 | ||||||||||||
Net loss at subsidiary attributable to
noncontrolling interests |
| 5,725 | | 26,420 | ||||||||||||
Net income attributable to common
shareholders |
$ | 1,209,009 | $ | 1,288,137 | $ | 3,662,682 | $ | 2,802,098 | ||||||||
Earnings per share attributable to
common shareholders basic |
$ | 0.12 | $ | 0.08 | $ | 0.36 | $ | 0.23 | ||||||||
Earnings per share attributable to
common shareholders diluted |
$ | 0.07 | $ | 0.07 | $ | 0.22 | $ | 0.16 | ||||||||
Weighted-average shares outstanding -
basic |
10,165,824 | 15,745,069 | 10,128,238 | 12,197,876 | ||||||||||||
Weighted-average shares outstanding -
diluted |
16,644,395 | 19,183,606 | 16,501,805 | 17,143,348 |
CUMBERLAND PHARMACEUTICALS INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Nine Months Ended September 30, | ||||||||
2008 | 2009 | |||||||
Cash flows from operating activities: |
||||||||
Net income |
$ | 3,662,682 | $ | 2,775,678 | ||||
Adjustments to reconcile net income to net cash flows from operating
activities: |
||||||||
Gain on early extinguishment of other long-term obligations |
(38,577 | ) | | |||||
Depreciation and amortization expense |
589,721 | 605,514 | ||||||
Nonemployee stock granted for services received |
104,716 | 205,693 | ||||||
Nonemployee stock option grant expense |
| 840,499 | ||||||
Stock-based compensation employee stock options |
274,584 | 455,502 | ||||||
Excess tax benefit derived from exercise of stock options |
(254,681 | ) | (2,842,825 | ) | ||||
Noncash interest expense |
67,523 | 83,420 | ||||||
Net changes in assets and liabilities affecting operating activities: |
||||||||
Accounts receivable |
(828,880 | ) | (4,054,710 | ) | ||||
Inventory |
(849,460 | ) | 75,185 | |||||
Prepaid, other current assets and other assets |
849,062 | 936,286 | ||||||
Accounts payable and other accrued liabilities |
613,983 | 3,299,235 | ||||||
Other long-term obligations |
48,681 | (455,723 | ) | |||||
Net cash provided by operating activities |
4,239,354 | 1,923,754 | ||||||
Cash flows from investing activities: |
||||||||
Additions to property and equipment |
(60,996 | ) | (199,312 | ) | ||||
Additions to patents |
(62,671 | ) | (71,358 | ) | ||||
Net cash used in investment activities |
(123,667 | ) | (270,670 | ) | ||||
Cash flows from financing activities: |
||||||||
Proceeds from initial public offering of common stock |
| 85,000,000 | ||||||
Costs of initial public offering |
(445,562 | ) | (7,385,124 | ) | ||||
Proceeds from borrowings on long-term debt |
| 18,000,000 | ||||||
Principal payments on note payable |
(1,375,002 | ) | (5,000,000 | ) | ||||
Net borrowings on line of credit |
500,000 | | ||||||
Payment of other long-term obligations |
(2,760,000 | ) | | |||||
Costs of financing for long-term debt and credit facility |
| (189,660 | ) | |||||
Proceeds from exercise of stock options |
59,097 | 64,275 | ||||||
Excess tax benefit derived from exercise of stock options |
254,681 | 2,842,825 | ||||||
Payments made in connection with repurchase of common shares |
| (27,273,677 | ) | |||||
Net cash (used in) provided by financing activities |
(3,766,786 | ) | 66,058,639 | |||||
Net increase in cash and cash equivalents |
348,901 | 67,711,723 | ||||||
Cash and cash equivalents at beginning of period |
10,814,518 | 11,829,551 | ||||||
Cash and cash equivalents at end of period |
$ | 11,163,419 | $ | 79,541,274 | ||||