For the quarterly period ended | Commission file number 000-26460 |
Delaware | 95-4484725 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
100 Canal Pointe Boulevard, Suite 108, Princeton, New Jersey | 08540 | |
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Name of Each Exchange on Which Registered | |
N/A | N/A |
Large accelerated filer ☐ | Accelerated filer ☐ |
Non-accelerated filer ☐ | Smaller reporting company ☑ |
Emerging growth company ☑ |
Page | ||
PART I - FINANCIAL INFORMATION | ||
3 | ||
3 | ||
4 | ||
5 | ||
6 | ||
PART II - OTHER INFORMATION | 26 | |
March 31, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | |||||||||||||
Assets | Assets | Assets | ||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 1,812,600 | $ | 1,379,887 | $ | 844,104 | $ | 1,379,887 | ||||||||
Accounts receivable | 9,590,446 | 8,059,910 | 9,167,088 | 8,059,910 | ||||||||||||
Investments | 82,908 | 82,908 | 82,908 | 82,908 | ||||||||||||
Other current assets | 866,505 | 542,237 | 1,321,334 | 542,237 | ||||||||||||
Total current assets | 12,352,459 | 10,064,942 | 11,415,434 | 10,064,942 | ||||||||||||
Other assets: | ||||||||||||||||
Property and equipment, net | 113,505 | 100,241 | 92,870 | 100,241 | ||||||||||||
Intangible assets, net | 11,845,910 | 8,764,704 | 10,253,381 | 8,764,704 | ||||||||||||
Acquired goodwill | 21,879,572 | 17,089,076 | 21,886,567 | 17,089,076 | ||||||||||||
Deferred income tax assets, net | 3,488,960 | 3,488,960 | 3,488,960 | 3,488,960 | ||||||||||||
Total other assets | 37,327,947 | 29,442,981 | 35,721,778 | 29,442,981 | ||||||||||||
Total assets | $ | 49,680,406 | $ | 39,507,923 | $ | 47,137,212 | $ | 39,507,923 | ||||||||
Current liabilities: | ||||||||||||||||
Line of credit | 3,956,494 | 3,088,890 | $ | 3,765,391 | 3,088,890 | |||||||||||
Accounts payable | 4,468,533 | 5,130,817 | 4,126,323 | 5,130,817 | ||||||||||||
Other accrued expenses | 3,147,210 | 2,165,088 | 3,947,293 | 2,165,088 | ||||||||||||
Bank Term Loan | 399,996 | 405,376 | ||||||||||||||
Consideration payable – Cash | 4,199,238 | 1,854,397 | ||||||||||||||
Consideration payable – Equity | 596,763 | 64,384 | ||||||||||||||
Dividend Payable | 499,965 | - | ||||||||||||||
Bank term loan | 406,156 | 405,376 | ||||||||||||||
Consideration payable – cash | 7,129,238 | 1,854,397 | ||||||||||||||
Consideration payable – equity | 11,589,973 | 64,384 | ||||||||||||||
Dividend payable | 527,979 | - | ||||||||||||||
Total current liabilities | 17,268,199 | 12,708,952 | 31,492,353 | 12,708,952 | ||||||||||||
Long term liabilities: | ||||||||||||||||
Long- term Liabilities: | ||||||||||||||||
Convertible notes | 1,250,000 | - | 1,250,000 | - | ||||||||||||
Bank Term Loan – Net of Current Portion | 1,023,474 | 1,536,191 | ||||||||||||||
Consideration payable – Cash | 3,375,000 | 2,711,717 | ||||||||||||||
Consideration payable – Equity | 11,993,723 | 10,887,360 | ||||||||||||||
Total Long-term Liabilities | 17,642,197 | 15,135,268 | ||||||||||||||
Bank term loan | 1,575,206 | 1,536,191 | ||||||||||||||
Consideration payable – cash | - | 2,711,717 | ||||||||||||||
Consideration payable – equity | 600,000 | 10,887,360 | ||||||||||||||
Total long-term liabilities | 3,425,206 | 15,135,268 | ||||||||||||||
Total liabilities | 34,910,396 | 27,844,220 | 34,917,559 | 27,844,220 | ||||||||||||
Stockholders' equity: | ||||||||||||||||
Preferred stock, $0.01 par value; 1,000,000 authorized, 363,611 issued and outstanding as of March 31, 2017 and as of December 31, 2016 | 3,636 | 3,636 | ||||||||||||||
Common stock, $0.01 par value; 100,000,000 shares authorized, 14,579,417 and 13,885,972 issued and outstanding as of March 31, 2017 and December 31, 2016 respectively. | 145,794 | 138,860 | ||||||||||||||
Stockholders’ equity: | ||||||||||||||||
Preferred stock, $0.01 par value; 1,000,000 authorized, 383,985 issued and outstanding as of September 30, 2017 and 363,611 as of December 31, 2016 | 3,840 | 3,636 | ||||||||||||||
Common stock, $0.01 par value; 100,000,000 shares authorized, 15,856,249 and 13,885,972 issued and outstanding as of September 30, 2017 and December 31, 2016, respectively | 158,561 | 138,860 | ||||||||||||||
Additional paid-in capital | 19,850,002 | 15,358,839 | 25,487,970 | 15,358,839 | ||||||||||||
Accumulated deficit | (5,226,646 | ) | (3,833,588 | ) | (13,430,711 | ) | (3,833,588 | ) | ||||||||
Accumulated other comprehensive income (loss) | 740 | (7,426 | ) | (18,511 | ) | (7,426 | ) | |||||||||
Non-Controlling Interest | (3,516 | ) | 3,382 | |||||||||||||
Total stockholders' equity | 14,770,010 | 11,663,703 | ||||||||||||||
Total liabilities and stockholders' equity | $ | 49,680,406 | $ | 39,507,923 | ||||||||||||
Non-controlling interest | 18,504 | 3,382 | ||||||||||||||
Total stockholders’ equity | 12,219,653 | 11,663,703 | ||||||||||||||
Total liabilities and stockholders’ equity | $ | 47,137,212 | $ | 39,507,923 |
Three Months Ended March 31, | ||||||||
2017 | 2016 | |||||||
Net revenue | $ | 12,340,927 | $ | 7,012,964 | ||||
Cost of revenue | 9,039,577 | 5,365,561 | ||||||
Gross profit | 3,301,350 | 1,647,403 | ||||||
Operating expenses: | ||||||||
Selling and marketing | 332,310 | 31,350 | ||||||
General and administration | 2,701,145 | 2,110,336 | ||||||
Acquisition related expenses | 209,344 | 375,405 | ||||||
Depreciation and amortization | 689,100 | 111,628 | ||||||
Operating expenses | 3,931,899 | 2,628,719 | ||||||
Operating income (loss): | (630,549 | ) | (981,316 | ) | ||||
Interest expense | (90,806 | ) | (113,746 | ) | ||||
Interest income/other income | - | 2,005 | ||||||
Other expense | (4,149 | ) | (2,304 | ) | ||||
Total other income (expenses) | (94,955 | ) | (114, 045 | ) | ||||
Income (loss) before income taxes | (725,504 | ) | (1,095,361 | ) | ||||
Income tax benefit (provision) | (2,020 | ) | ||||||
Net income (loss) after tax | (725,504 | ) | (1,097,381 | ) | ||||
Dividend on Preference Shares | (499,965 | ) | - | |||||
Net income (loss) attributable to the Company | (1,225,469 | ) | (1,097,381 | ) | ||||
Non-Controlling Interest | 3,516 | |||||||
Foreign exchange translation adjustment | 5,335 | (62,890 | ) | |||||
Net income (loss) | $ | (1,216,618 | ) | (1,160,271 | ) | |||
Basic income (loss) per share attributable to the Company | $ | (0.09 | ) | $ | (0.09 | ) | ||
Diluted income (loss) per share attributable to the Company | $ | (0.09 | ) | $ | (0.09 | ) | ||
Basic weighted average number of shares | 14,094,536 | 11,874,361 | ||||||
Diluted weighted average number of shares | 14,094,536 | 11,874,361 |
Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 | Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | |||||||||||||
Revenue | $ | 12,529,928 | $ | 10,058,558 | $ | 37,139,114 | $ | 23,758,460 | ||||||||
Cost of revenue | 9,966,490 | 8,361,960 | 28,941,535 | 18,897,059 | ||||||||||||
Gross profit | 2,563,438 | 1,696,598 | 8,197,579 | 4,861,401 | ||||||||||||
Operating expenses | ||||||||||||||||
Selling and marketing | 402,846 | 137,024 | 1,170,051 | 401,487 | ||||||||||||
General and administration | 5,283,059 | 1,326,327 | 12,389,581 | 5,316,390 | ||||||||||||
Acquisition related expenses | 5,694 | 1,015,558 | 390,174 | 1,630,778 | ||||||||||||
Depreciation and amortization | 817,284 | 509,377 | 2,332,041 | 722,390 | ||||||||||||
Operating expenses | 6,508,883 | 2,988,286 | 16,281,847 | 8,071,045 | ||||||||||||
Operating income (loss) | (3,945,445 | ) | (1,291,688 | ) | (8,084,268 | ) | (3,209,644 | ) | ||||||||
Interest expenses | (132,973 | ) | (290,423 | ) | (388,122 | ) | (674,683 | ) | ||||||||
Changes in estimates | - | - | 400,000 | - | ||||||||||||
Others, net | 17,446 | (195,518 | ) | 21,921 | (197,679 | ) | ||||||||||
Income (loss) before income taxes | (4,060,972 | ) | (1,777,629 | ) | (8,050,469 | ) | (4,082,006 | ) | ||||||||
Tax benefit / (provision) | - | - | - | - | ||||||||||||
Income after income taxes | (4,060,972 | ) | (1,777,629 | ) | (8,050,469 | ) | (4,082,006 | ) | ||||||||
Net income attributable to non-controlling interest | (6,632 | ) | - | (18,504 | ) | - | ||||||||||
Net income (loss) attributable to the Company | (4,067,604 | ) | (1,777,629 | ) | (8,068,973 | ) | (4,082,006 | ) | ||||||||
Dividend on preferred stock | (541,864 | ) | - | (1,546,655 | ) | - | ||||||||||
Net loss attributable to common stock holders | (4,609,468 | ) | (1,777,629 | ) | (9,615,628 | ) | (4,082,006 | ) | ||||||||
Other comprehensive income (loss), net of tax | - | - | - | - | ||||||||||||
Foreign exchange translation | (14,234 | ) | 59,079 | (11,084 | ) | (6,619 | ) | |||||||||
Comprehensive income/(loss) | $ | (4,623,702 | ) | $ | (1,718,550 | ) | $ | (9,626,712 | ) | $ | (4,088,625 | ) | ||||
Comprehensive income/(loss) attributable to the Company | (4,617,070 | ) | (1,718,550 | ) | (9,608,208 | ) | (4,088,625 | ) | ||||||||
Comprehensive income/(loss) attributable to the non-controlling interest | (6,632 | ) | - | (18,504 | ) | - | ||||||||||
$ | (4,623,702 | ) | $ | (1,718,550 | ) | $ | (9,626,712 | ) | $ | (4,088,625 | ) | |||||
Basic income (loss) per share | $ | (0.31 | ) | $ | (0.13 | ) | $ | (0.66 | ) | $ | (0.32 | ) | ||||
Diluted income (loss) per share | $ | (0.31 | ) | $ | (0.13 | ) | $ | (0.66 | ) | $ | (0.32 | ) | ||||
Basic weighted average number of common shares outstanding | 14,715,947 | 13,653,586 | 14,472,322 | 12,794,149 | ||||||||||||
Diluted weighted average number of common shares outstanding | 14,715,947 | 13,653,586 | 14,472,322 | 12,794,149 |
Three Months Ended March 31, | Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
Cash flow from operating activities | ||||||||||||||||
Net income/(loss) | $ | (1,216,618 | ) | $ | (1,160,271 | ) | ||||||||||
Adjustment to reconcile income/(loss) to net cash used in operating activities | ||||||||||||||||
Comprehensive income/(loss) | $ | (9,626,712 | ) | $ | (4,088,625 | ) | ||||||||||
Adjustment to reconcile comprehensive income/(loss) to net cash used in operating activities | ||||||||||||||||
Depreciation and amortization | 689,100 | 111,628 | 2,332,041 | 722,390 | ||||||||||||
Provision for Preference dividend | 499,965 | - | 1,546,655 | - | ||||||||||||
Changes in estimate of contingent consideration | (400,000 | ) | - | |||||||||||||
Stock, option, restricted stock unit and warrant expense | 566,427 | 101,677 | 5,167,358 | 945,959 | ||||||||||||
Foreign exchange translation adjustment | 5,335 | (62,890 | ) | 11,085 | - | |||||||||||
Changes in assets and liabilities: | ||||||||||||||||
Increase (decrease) in: | ||||||||||||||||
Accounts receivable | (1,530,536 | ) | (57,216 | ) | (1,107,178 | ) | (2,852,778 | ) | ||||||||
Other current assets | (324,267 | ) | 24,983 | (779,097 | ) | (285,831 | ) | |||||||||
Increase (decrease) in: | ||||||||||||||||
Accounts payable and accrued expenses | 472,661 | 1,195,226 | 1,056,277 | 2,561,321 | ||||||||||||
Net cash provided by (used in) operating activities | (837,933 | ) | 153,137 | (1,799,571 | ) | (2,997,564 | ) | |||||||||
Cash flow from investing activities | ||||||||||||||||
Acquisition of intangible and fixed assets | (10,493 | ) | (131,580 | ) | ||||||||||||
Acquisition consideration payable | (311,470 | ) | (1,718,777 | ) | ||||||||||||
Purchase of fixed assets | (7,797 | ) | 3,261,617 | |||||||||||||
Acquisition consideration | (694,711 | ) | (8,779,040 | ) | ||||||||||||
Investments | - | 82,908 | - | 82,908 | ||||||||||||
Net cash used in investing activities | (321,963 | ) | (1,767,449 | ) | (702,508 | ) | (5,434,515 | ) | ||||||||
Cash flow from financing activities | ||||||||||||||||
Proceeds from bank and convertible notes | 1,599,507 | 241,451 | ||||||||||||||
Non-Controlling Interests | (6,898 | ) | ||||||||||||||
Proceeds from bank loan and convertible notes, net | 1,966,296 | 4,467,879 | ||||||||||||||
Additional stock issued | - | 5,000,000 | ||||||||||||||
Net cash provided by financing activities | 1,592,609 | 241,451 | 1,966,296 | 9,467,879 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 432,713 | (1,372,861 | ) | (535,783 | ) | 1,035,800 | ||||||||||
Cash and cash equivalents as at beginning of the period | 1,379,887 | 1,878,034 | 1,379,887 | 1,878,034 | ||||||||||||
Cash at the end of the period | $ | 1,812,600 | $ | 505,173 | $ | 844,104 | $ | 2,913,834 |
NOTE 1. | ORGANIZATION: |
NOTE 2. | BASIS OF PRESENTATION: |
NOTE 3. | BUSINESS COMBINATIONS: |
(a) | A cash payment in the amount of $3,000,000, which was paid at closing; |
(b) | 235,295 shares of our common stock issued at closing; |
(c) | $250,000 quarterly cash payments paid on the last day of each calendar quarter of 2016; |
(d) | A $1,000,000 cash reimbursement paid 5 days following closing to compensate Ameri Georgia for a portion of its approximate cash balance as of September 1, 2015; |
(e) | Approximately $2,910,817 paid within 30 days of closing in connection with the excess of Ameri Georgia’s accounts receivable over its accounts payable as of September 1, 2015; and |
(f) | Earn-out payments of approximately $500,000 a year for 2016 and 2017, if earned through the achievement of annual revenue and earnings before interest taxes, depreciation and amortization (“EBITDA”) targets specified in the purchase agreement, subject to downward or upward adjustment depending on actual results. |
(a) | A cash payment in the amount of $340,000, which was due within 90 days of closing and was paid on September 22, 2016; |
(b) | Warrants for the purchase of 51,000 shares of our common stock (valued at approximately $250,000 based on the $6.51 closing price of our common stock on the closing date of the acquisition), with such warrants exercisable for two years; and |
(c) | $255,000, which may become payable in cash earn-outs to the sellers of Bigtech, if Bigtech achieves certain pre-determined |
(a) | A cash payment in the amount of $675,000, which was due within 90 days of closing and was paid on October 21, 2016; |
(b) | 101,250 shares of our common stock at |
(c) | Earn-out payments in cash and stock of $450,000 and approximately $560,807, respectively, to be paid, if earned, through the achievement of annual revenue and gross margin targets in 2017, 2018 and 2019. Out of the total contingent consideration of approximately $1,000,000, we only considered 50% of the earn-out in the purchase price, mainly due to the reorganization of Virtuoso. |
(a) | A cash payment in the amount of $3,000,000 at closing; |
(b) | 1,600,000 shares of our common stock (valued at approximately $10.4 million based on the $6.51 closing price of our common stock on the closing date of the acquisition), which are to be issued on July 29, 2018 or upon a change of control of our company (whichever occurs earlier); and |
(c) | Earn-out payments of $1,500,000 payable in cash each year to be paid, if earned, through the achievement of annual revenue and gross margin in 2017 and 2018. |
(a) | 576,923 shares of our common |
(b) | Unsecured promissory notes issued to |
(c) | Earn-out payments in shares of our common stock (up to an aggregate value of $1,200,000 worth of shares) to be paid, if earned, in each of 2018 and |
(d) | An additional cash payment of $55,687 for cash that was left in |
Asset Component | Ameri Georgia | Bigtech | Virtuoso | Ameri Arizona | Ameri California | |||||||||||||||
Intangible Assets | 1.8 | 0.6 | 0.9 | 5.4 | 3.8 | |||||||||||||||
Goodwill | 3.5 | 0.3 | 0.9 | 10.4 | 5.0 | |||||||||||||||
Working Capital | ||||||||||||||||||||
Current Assets | ||||||||||||||||||||
Cash | 1.4 | - | - | - | - | |||||||||||||||
Accounts Receivable | 5.6 | - | - | - | - | |||||||||||||||
Other Assets | 0.2 | - | - | - | - | |||||||||||||||
7.3 | - | - | - | - | ||||||||||||||||
Current Liabilities | ||||||||||||||||||||
Accounts Payable | 1.3 | - | - | - | - | |||||||||||||||
Accrued Expenses & Other Current Liabilities | 1.3 | - | - | - | - | |||||||||||||||
2.7 | - | - | - | - | ||||||||||||||||
Net Working Capital Acquired | 4.6 | - | - | - | - | |||||||||||||||
Total Purchase Price | 9.9 | 0.9 | 1.8 | 15.8 | 8.8 |
NOTE 4. | REVENUE RECOGNITION: |
NOTE 5. | SHARE-BASED COMPENSATION: |
NOTE 6. | INTANGIBLE ASSETS: |
March 31, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | |||||||||||||
Capitalized intangible assets | $ | 12,513,206 | $ | 10,074,546 | $ | 12,517,628 | $ | 10,074,546 | ||||||||
Accumulated amortization | 667,296 | 1,309,842 | 2,264,247 | 1,309,842 | ||||||||||||
Total intangible assets | $ | 11,845,910 | $ | 8,764,704 | $ | 10,253,381 | $ | 8,764,704 |
Years ending December 31, | Amount | Amount | ||||||
2017 | $ | 2,258,388 | $ | 665,859 | ||||
2018 | 2,955,873 | 2,955,873 | ||||||
2019 | 2,727,968 | 2,727,968 | ||||||
2020 | 2,652,000 | 2,652,000 | ||||||
2021 | 1,251,681 | 1,251,681 | ||||||
Total | $ | 11,845,910 | $ | 10,253,381 |
NOTE 7. | GOODWILL: |
March 31, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | |||||||||||||
Virtuoso | $ | 939,881 | $ | 939,881 | $ | 939,881 | $ | 939,881 | ||||||||
DCM | 10,416,000 | 10,416,000 | ||||||||||||||
Ameri Arizona | 10,416,000 | 10,416,000 | ||||||||||||||
Bigtech | 292,808 | 314,555 | 299,803 | 314,555 | ||||||||||||
Ameri Consulting Service Pvt. Ltd. | 1,948,118 | 1,948,118 | 1,948,118 | 1,948,118 | ||||||||||||
Ameri Georgia | 3,470,522 | 3,470,522 | 3,470,522 | 3,470,522 | ||||||||||||
ATCG | 4,812,243 | - | ||||||||||||||
Ameri California | 4,812,243 | - | ||||||||||||||
Total | $ | 21,879,572 | $ | 17,089,076 | $ | 21,886,567 | $ | 17,089,076 |
NOTE 8. | EARNINGS (LOSS) PER SHARE: |
Three Months Ended March 31, | ||||||||
2017 | 2016 | |||||||
Net income (loss) attributable to the Company | $ | (1,225,469 | ) | $ | (1,097,381 | ) | ||
Weighted average common shares outstanding | 14,094,536 | 11,874,361 | ||||||
Basic net income (loss) per share of common stock | $ | (0.09 | ) | $ | (0.09 | ) | ||
Diluted net income (loss) per share of common stock | $ | (0.09 | ) | $ | (0.09 | ) |
Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | |||||||
Net income (loss) attributable to common stock holders | $ | (9,615,628 | ) | $ | (4,082,006 | ) | ||
Weighted average common shares outstanding | 14,472,322 | 12,794,149 | ||||||
Basic net income (loss) per share of common stock | $ | (0.66 | ) | $ | (0.32 | ) | ||
Diluted net income (loss) per share of common stock | $ | (0.66 | ) | $ | (0.32 | ) |
NOTE 9. | OTHER ITEMS: |
NOTE 10. | BANK DEBT: |
(a) | in the case of Revolving Loans, a rate per annum equal to the sum of (i) the Wall Street Journal Prime Rate plus (ii) 2.00%; |
(b) | in the case of the Term Loan, a rate per annum equal to the sum of (i) the Wall Street Journal Prime Rate plus (ii) 3.75%; and |
(c) | in the case of other obligations of the Borrowers, a rate per annum equal to the sum of (i) the greater of (A) 3.25% or (B) Wall Street Journal Prime Rate plus (ii) 3.75%. |
NOTE 11. | CONVERTIBLE NOTES: |
NOTE 12. | COMMITMENTS AND CONTINGENCIES: |
Year ending December 31, | Amount | |||
2017 | $ | 68,360 | ||
2018 | 189,428 | |||
2019 | 123,083 | |||
2020 | 70,333 | |||
2021 | 7,371 | |||
Total | $ | 458,575 |
NOTE 13. | FAIR VALUE MEASUREMENT: |
September 30, 2017 | December 31, 2016 | |||||||
Level 3 | ||||||||
Contingent consideration | $ | 5,346,688 | $ | 5,266,488 |
Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2017 | |||||||
Opening balance | 5,346,688 | 5,266,488 | ||||||
Additions during the period | $ | - | $ | 1,200,000 | ||||
Paid/settlements | - | (719,800 | ) | |||||
Total gains recognized in Statement of Operations | - | (400,000 | ) | |||||
Closing balance | 5,346,688 | 5,346,688 |
Note 14. | NON-CONTROLLING INTEREST: |
NOTE 15. | RESTRUCTURING AND STREAMLINING COSTS: |
ITEM 2. |
· | Our ability to enter into additional technology-management and consulting agreements, to diversify our client base and to expand the geographic areas we serve; |
· | Our ability to attract competent, skilled professionals and on-demand technology partners for our operations at acceptable prices to manage our overhead; |
· | Our ability to acquire other technology services companies and integrate them with our existing business; |
· | Our ability to raise additional |
· | Our ability to control our costs of operation as we expand our organization and capabilities. |
Three Months Ended March 31, | ||||||||
2017 | 2016 | |||||||
Net revenue | $ | 12,340,927 | $ | 7,012,964 | ||||
Cost of revenue | 9,039,577 | 5,365,561 | ||||||
Gross profit | 3,301,350 | 1,647,403 | ||||||
Operating expenses: | ||||||||
Selling and marketing | 332,310 | 31,350 | ||||||
General and administration | 2,701,145 | 2,110,336 | ||||||
Acquisition related expenses | 209,344 | 375,405 | ||||||
Depreciation and amortization | 689,100 | 111,628 | ||||||
Operating expenses | 3,931,899 | 2,628,719 | ||||||
Operating income (loss): | (630,549 | ) | (981,316 | ) | ||||
Interest expense | (90,806 | ) | (113,746 | ) | ||||
Interest income/other income | - | 2,005 | ||||||
Other expense | (4,149 | ) | (2,304 | ) | ||||
Total other income (expenses) | (94,955 | ) | (114, 045 | ) | ||||
Income (loss) before income taxes | (725,504 | ) | (1,095,361 | ) | ||||
Income tax benefit (provision) | (2,020 | ) | ||||||
Net income (loss) after tax | (725,504 | ) | (1,097,381 | ) | ||||
Dividend on Preference Shares | (499,965 | ) | - | |||||
Net income (loss) attributable to the Company | (1,225,469 | ) | (1,097,381 | ) | ||||
Non-Controlling Interest | 3,516 | |||||||
Foreign exchange translation adjustment | 5,335 | (62,890 | ) | |||||
Net income (loss) | $ | (1,216,618 | ) | (1,160,271 | ) | |||
Basic income (loss) per share attributable to the Company | $ | (0.09 | ) | $ | (0.09 | ) | ||
Diluted income (loss) per share attributable to the Company | $ | (0.09 | ) | $ | (0.09 | ) | ||
Basic weighted average number of shares | 14,094,536 | 11,874,361 | ||||||
Diluted weighted average number of shares | 14,094,536 | 11,874,361 |
Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 | Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | |||||||||||||
Revenue | $ | 12,529,928 | $ | 10,058,558 | $ | 37,139,114 | 23,758,460 | |||||||||
Cost of revenue | 9,966,490 | 8,361,960 | 28,941,535 | 18,897,059 | ||||||||||||
Gross profit | 2,563,438 | 1,696,598 | 8,197,579 | 4,861,401 | ||||||||||||
Operating expenses | ||||||||||||||||
Selling and marketing | 402,846 | 137,024 | 1,170,051 | 401,487 | ||||||||||||
General and administration | 5,283,059 | 1,326,327 | 12,389,581 | 5,316,390 | ||||||||||||
Acquisition related expenses | 5,694 | 1,015,558 | 390,174 | 1,630,778 | ||||||||||||
Depreciation and amortization | 817,284 | 509,377 | 2,332,041 | 722,390 | ||||||||||||
Operating expenses | 6,508,883 | 2,988,286 | 16,281,847 | 8,071,045 | ||||||||||||
Operating income (loss) | (3,945,445 | ) | (1,291,688 | ) | (8,084,268 | ) | (3,209,644 | ) | ||||||||
Interest expenses | (132,973 | ) | (290,423 | ) | (388,122 | ) | (674,683 | ) | ||||||||
Changes in estimates | - | - | 400,000 | - | ||||||||||||
Others, net | 17,446 | (195,518 | ) | 21,921 | (197,679 | ) | ||||||||||
Income (loss) before income taxes | (4,060,972 | ) | (1,777,629 | ) | (8,050,469 | ) | (4,082,006 | ) | ||||||||
Tax benefit / (provision) | - | - | - | - | ||||||||||||
Income after income taxes | (4,060,972 | ) | (1,777,629 | ) | (8,050,469 | ) | (4,082,006 | ) | ||||||||
Net income attributable to non-controlling interest | (6,632 | ) | - | (18,504 | ) | - | ||||||||||
Net income (loss) attributable to the Company | (4,067,604 | ) | (1,777,629 | ) | (8,068,973 | ) | (4,082,006 | ) | ||||||||
Dividend on preferred stock | (541,864 | ) | - | (1,546,655 | ) | - | ||||||||||
Net loss attributable to common stock holders | (4,609,468 | ) | (1,777,629 | ) | (9,615,628 | ) | (4,082,006 | ) | ||||||||
Other comprehensive income (loss), net of tax | - | - | - | - | ||||||||||||
Foreign exchange translation | (14,234 | ) | 59,079 | (11,084 | ) | (6,619 | ) | |||||||||
Comprehensive income/(loss) | $ | (4,623,702 | ) | $ | (1,718,550 | ) | $ | (9,626,712 | ) | $ | (4,088,625 | ) | ||||
Comprehensive income/(loss) attributable to the Company | (4,617,070 | ) | (1,718,550 | ) | (9,608,208 | ) | (4,088,625 | ) | ||||||||
Comprehensive income/(loss) attributable to the non-controlling interest | (6,632 | ) | - | (18,504 | ) | - | ||||||||||
$ | (4,623,702 | ) | $ | (1,718,550 | ) | $ | (9,626,712 | ) | $ | (4,088,625 | ) | |||||
Basic income (loss) per share | $ | (0.31 | ) | $ | (0.13 | ) | $ | (0.66 | ) | $ | (0.32 | ) | ||||
Diluted income (loss) per share | $ | (0.31 | ) | $ | (0.13 | ) | $ | (0.66 | ) | $ | (0.32 | ) | ||||
Basic weighted average number of common shares outstanding | 14,715,947 | 13,653,586 | 14,472,322 | 12,794,149 | ||||||||||||
Diluted weighted average number of common shares outstanding | 14,715,947 | 13,653,586 | 14,472,322 | 12,794,149 |
Three Months Ended September 30, 2017 | Three Months Ended September 30, 2016 | Increase (Decrease) | |||||
Ameri & Partners | 1.41 | 2.07 | (0.66) | ||||
Ameri Georgia | 4.64 | 4.38 | 0.26 | ||||
Bigtech | 0.31 | 0.31 | 0.00 | ||||
Ameri Arizona | 3.09 | 3.28 | (0.19) | ||||
Ameri California | 3.07 | - | 3.07 | ||||
Total | 12.53 | 10.06 | 2.47 |
Nine Months Ended September 30, 2017 | Nine Months Ended September 30, 2016 | Increase (Decrease) | |||||
Ameri & Partners | 4.77 | 5.53 | (0.76) | ||||
Ameri Georgia | 14.82 | 14.62 | 0.20 | ||||
Bigtech | 0.82 | 0.31 | 0.51 | ||||
Ameri Arizona | 10.12 | 3.28 | 6.84 | ||||
Ameri California | 6.60 | - | 6.60 | ||||
Total | 37.14 | 23.76 | 13.38 |
(a) | in the case of Revolving Loans, a rate per annum equal to the sum of (i) the Wall Street Journal Prime Rate plus (ii) 2.00%; |
(b) | in the case of the Term Loan, a rate per annum equal to the sum of (i) the Wall Street Journal Prime Rate plus (ii) 3.75%; and |
(c) | in the case of other obligations of the Borrowers, a rate per annum equal to the sum of (i) the greater of (A) 3.25% or (B) Wall Street Journal Prime Rate plus (ii) 3.75%. |
Exhibit | Description | |
2.1 | Agreement of Merger and Plan of Reorganization, dated as of May 26, 2015, among Spatializer Audio Laboratories, Inc., Ameri100 Acquisition, Inc. and Ameri and Partners Inc. (filed as Exhibit 2.1 to AMERI Holdings, Inc. | |
2.2 | Stock Purchase Agreement by and between Ameri Holdings, Inc. and the shareholders of Ameri Consulting Service Private Limited. (filed as Exhibit 10.3 to Ameri Holdings, Inc. | |
2.3 | Share Purchase Agreement, dated as of November 20, 2015, by and among Ameri Holdings, Inc., Bellsoft, Inc., and all of the shareholders of Bellsoft, Inc. (filed as Exhibit 10.1 to Ameri Holdings, Inc. | |
2.4 | Agreement of Merger and Plan of Reorganization, dated as of July 22, 2016, by and among Ameri Holdings, Inc., Virtuoso Acquisition Inc., Ameri100 Virtuoso Inc., Virtuoso, L.L.C. and the sole member of Virtuoso, L.L.C. (filed as Exhibit 2.1 to Ameri Holdings, Inc. | |
2.5 | Membership Interest Purchase Agreement, dated as of July 29, 2016, by and among Ameri Holdings, Inc., DC&M Partners, L.L.C., all of the members of | |
2.6 | Share Purchase Agreement, dated as of March 10, 2017, by and among Ameri Holdings, Inc., ATCG Technology Solutions, Inc., all of the stockholders of ATCG Technology Solutions, Inc., and the | |
3.1 | Amended and Restated Certificate of Incorporation of Ameri Holdings, Inc. (filed as Exhibit 3.1 to Ameri Holdings, Inc. | |
3.2 | Certificate of Designation of Rights and Preferences of 9.00% Series A Cumulative Preferred Stock (filed as Exhibit 3.1 to Ameri Holdings, Inc. | |
3.3 | Corrected Certificate of Designation of Rights and Preferences of 9.00% Series A Cumulative Preferred Stock (filed as Exhibit 3.3 to Ameri Holdings, Inc.’s Registration Statement on Form S-1, Amendment No. 1, filed with the SEC on April 18, 2017 and incorporated herein by reference). | |
3.4 | Amended and Restated Bylaws of Ameri Holdings, Inc. (filed as Exhibit 3.2 to Ameri Holdings, Inc. | |
4.1 | Form of Certificate Representing Shares of common stock of Registrant (filed as Exhibit 4.1 to Ameri Holdings, Inc. | |
4.2 | Form of common stock Purchase Warrant issued by Ameri Holdings, Inc. to Lone Star Value Investors, LP, dated May 26, 2015 (filed as Exhibit 4.1 to Ameri Holdings, Inc. |
4.3 | Common Stock Purchase Warrant, dated May 12, 2016, issued by Ameri Holdings, Inc. to Lone Star Value Investors, LP, dated May 12, 2016 (filed as Exhibit 4.3 to Ameri Holdings, Inc. | |
4.4 | Amended and Restated Registration Rights Agreement, dated May 12, 2016, by and between Ameri Holdings, Inc. and Lone Star Value Investors, LP (filed as Exhibit 10.3 to Ameri Holdings, Inc. | |
4.5 | Form of 8% Convertible Unsecured Promissory Note due March 2020 (filed as Exhibit 10.2 to Ameri Holdings, Inc. | |
4.6 | Form of Registration Rights Agreement for 2017 Notes Investors (filed as Exhibit 10.3 to Ameri Holdings, Inc. | |
4.7 | Form of 6% Unsecured Promissory Note (filed as Exhibit 10.1 to Ameri Holdings, Inc. | |
10.1 | Employment Agreement, dated as of May 26, 2015, between Giri Devanur and Ameri Holdings, Inc. (filed as Exhibit 10.4 to Ameri Holdings, Inc. |
10.2 | Employment Agreement, dated as of May 26, 2015, between Srinidhi | |
10.3 | Employment Letter, dated April 24, 2016, between Ameri and Partners Inc and Viraj Patel (filed as Exhibit 10.1 to Ameri Holdings, Inc. | |
10.4 | Form of Securities Purchase Agreement for 2017 Notes Investors (filed as Exhibit 10.1 to Ameri Holdings, Inc. | |
10.5 | Exchange Agreement, dated as of December 30, 2016, between Ameri Holdings, Inc. and Lone Star Value Investors, LP (filed as Exhibit 10.1 to Ameri Holdings, Inc. | |
10.6 | Loan and Security Agreement, dated as of July 1, 2016, by and among Ameri and Partners Inc, Bellsoft, Inc., Ameri Holdings, Inc., Linear Logics, Corp., Winhire Inc, Giri Devanur, the lenders which become a party to the Loan and Security Agreement, and Sterling National Bank, N.A. (a lender and as agent for the lenders) (filed as Exhibit 10.1 to Ameri Holdings, Inc. | |
Section 302 Certification of Principal Executive Officer | ||
Section 302 Certification of Principal Financial and Accounting Officer | ||
Section 906 Certification of Principal Executive Officer | ||
Section 906 Certification of Principal Financial and Accounting Officer | ||
101** | The following materials from Ameri Holdings, Inc. |
* | Furnished herewith. |
** | In accordance with Item 601of Regulation S-K, this Exhibit is hereby furnished to the SEC as an accompanying document and is not deemed |
AMERI Holdings, Inc. | ||
By: | /s/ Giri Devanur | |
Giri Devanur | ||
President and Chief Executive Officer (Principal Executive Officer) | ||
By: | /s/ Viraj Patel | |
Viraj Patel | ||
Chief Financial Officer (Principal Accounting Officer) |