Outdoor Holding第四財季收入增一成虧損收窄 經調整EBITDA升至770萬美元

EX-99.1
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ex99-1.htm
EX-99.1

 

 

Exhibit
99.1

 

 

Outdoor
Holding Company Reports Fourth Quarter and Fiscal Year 2026 Financial Results

 

Atlanta,
Ga., June 22, 2026 (GLOBE NEWSWIRE) — Outdoor Holding Company (Nasdaq: POWW, POWWP) (“OHC,” “we,” “us,”
“our” or the “Company”), the owner of GunBroker.com, the largest online marketplace dedicated to firearms, hunting,
shooting, and related products, today reported its financial results for its fourth fiscal quarter and year ended March 31, 2026.

 

Fourth
Quarter Fiscal 2026 vs. Fourth Quarter Fiscal 2025

 

-Revenue
 increased 10.1% to $13.9 million from $12.6 million

-Gross
 profit rose to $12.2 million from $11.0 million

-Gross
 profit margin increased slightly to 87.6% from 87.5%

-Operating
 expenses decreased to $15.1 million from $38.0 million

-Loss
 from continuing operations of $(2.7) million, compared to last year’s loss from continuing
 operations of $(27.0) million

-Net
 loss attributable to common shareholders of $(1.5) million improved from $(78.3) million

-Adjusted
 EBITDA (1) increased to $7.7 million compared to $2.9 million in the same period
 last year

-Grew
 gross merchandise value (“GMV”) 11.8% year-over-year to approximately $229 million
 from approximately $205 million

 

Fiscal
2026 vs. Fiscal 2025

 

-Net
 revenues increased 3.5% over the year to $51.1 million from $49.4 million

-Gross
 profit rose to $44.6 million from $42.9 million

-Gross
 profit margin on the year increased to 87.2% from 86.9%

-Operating
 expenses decreased to $50.9 million from $102.6 million

-Loss
 from continuing operations of $(4.9) million, compared to last year’s loss from continuing
 operations of $(65.2) million

-Net
 loss attributable to common shareholders of $(6.6) million improved from $(133.9) million

-Adjusted
 EBITDA(1) increased to $22.3 million compared to $15.3 million in the prior fiscal
 year

 

Operational
Highlights

 

-Positive
 cash flow from operations for the fiscal year

-Overhauled
 and strengthened financial reporting infrastructure and successfully remediated all previously
 identified material weaknesses in internal controls over financial reporting

-Began
 executing on the Company’s stock repurchase program, purchasing a little over 500,000
 shares for over $1 million during the fourth quarter

-Continued
 cost-reduction initiatives, reducing ordinary-course operating expenses by approximately
 $5.4 million, including reductions in headcount, legal spend and facilities costs, while
 maintaining investment in core platform initiatives

-Completed
 the integration with MasterFFL to streamline the transfer of products subject to federal
 firearms license (“FFL”) regulations

-Resolved
 significant legacy legal matters, including the $4.4 million payment to settle the Digital
 Cash Processing (“DCP”) matter, to avoid additional litigation and trial costs

-Continued
 to invest in platform enhancements and AI initiatives, including hiring a Director of AI
 Strategy, deploying an AI-powered listing tool in March, and continuing to identify additional
 areas of investment to improve customer experience

 

  

  

 

 

(1)
Adjusted EBITDA is a non-GAAP financial measure. See the discussion and the reconciliations at the end of this release for additional
information.

 

“Our
fiscal fourth quarter capped a year of remarkable improvement across the organization,” said Steve Urvan, Chairman and CEO of Outdoor
Holding Company. “We sustained operating momentum, grew profitability, and continued to generate positive cash flow by reducing
costs, resolving legacy matters, and investing in GunBroker.com platform features. We continue to deliver consistent profitability and
balance-sheet strength. Adjusted EBITDA improved sequentially each quarter throughout the year. Our quarterly annualized EBITDA run-rate
in both the third and fourth fiscal quarters exceeded the $25 million run-rate target I set last August, well ahead of schedule. Fiscal
2026 demonstrated the strength of our asset-light operating model, and we believe the actions taken and investments made over the past
several quarters have positioned the Company for continued operating efficiency, improved profitability and long-term shareholder value
creation in fiscal 2027 and beyond.”

 

The
Company delivered improved financial and operational performance in the fourth quarter of fiscal 2026. Year over year, net revenues increased
10% to $13.9 million. Total operating expenses declined $22.9 million, underscoring the impact of resolved legal disputes and continued
cost discipline while recurring, ordinary-course operating expenses declined approximately $5.4 million, driven primarily by reductions
in headcount, legal spend, and facilities costs. The Company maintained a strong gross margin of 87.6% while continuing to make strategic
investments in the platform. Adjusted EBITDA increased to $7.7 million compared to $2.9 million in the same period last year.

 

GunBroker.com
delivered solid performance during the fourth fiscal quarter, reflecting continued engagement from both buyers and sellers and the benefits
of recent platform investments.

 

 
  
 ●
 Firearm
 unit sales increased over 8.7% year-over-year, outpacing the 1.6% increase in adjusted NICS checks and reflecting a 40 basis
 point increase in the Company’s share of adjusted NICS

 
  
 ●
 Total
 GMV for the quarter increased 10.1% year-over-year to approximately $229 million

 
  
 ●
 Take
 rate (net revenue as a percentage of GMV) remained relatively stable at a little over 6%

 
  
 ●
 Average
 order value grew by 6.5%

 
 

During
the quarter, the Company continued to introduce platform enhancements designed to improve marketplace efficiency and user experience.
These updates included improved search relevance and filtering, expanded seller analytics and promotional capabilities, and refined buyer
personalization algorithms. The Company also completed its integration with MasterFFL to streamline the transfer of products subject
to FFL regulations, and deployed an AI-powered listing tool to generate standardized, marketplace-optimized product descriptions to increase
conversion rates and maintain compliance. The Company continues to explore ways to reduce transaction friction and improve the experience
for buyers and sellers alike.

 

Balance
Sheet and Liquidity

 

The
Company ended the quarter and fiscal year with $68.1 million in cash and cash equivalents, a substantial increase from $30.2 million
at the end of fiscal 2025. Even after funding the $4.4 million DCP settlement, effecting $1 million of share repurchases, and incurring
other legal expenses, the cash balance at the end of the quarter only declined $1.8 million. The strengthened balance sheet and liquidity
position provide significant flexibility to support ongoing platform investments, pursue selective strategic opportunities, and return
value to shareholders through the share repurchase program. With reduced leverage, lower fixed costs, and more consistent profitability,
the Company is well-positioned to fund organic growth initiatives while maintaining a disciplined approach to capital allocation and
shareholder value creation.

 

Strategy
and Key Initiatives

 

The
Company’s post-divestiture strategy is focused on driving sustainable growth through operational efficiency and continuous platform
innovation. Key initiatives for fiscal 2027 include expanding premium seller offerings, enhancing pricing, promotional tools and data
analytics, implementing universal payments, and improving buyer engagement. Management intends to harness the power of AI and leverage
the capital allocation flexibility achieved by disciplined cost management to help deliver on these initiatives, in an effort to position
the Company to capture incremental market share and deliver durable profitability over time.

 

Discontinued
Operations 

 

As
previously disclosed, in April 2025, the Company completed the sale of all assets of its business of designing, manufacturing, marketing,
distributing and selling ammunition and ammunition components, along with certain related assets and liabilities (the “Transaction”),
which previously comprised the Company’s Ammunition segment. Following the Transaction, the Company continues to operate its online
e-commerce marketplace business GunBroker.com.

 

For
the purposes of this earnings release and the financial information provided herein, the results of the Ammunition segment are presented
as discontinued operations in the consolidated statements of operations for all periods presented. Prior periods have been adjusted to
conform to the current presentation. The assets and liabilities of the Ammunition segment have been reflected as assets and liabilities
of discontinued operations in the consolidated balance sheets for all periods presented.

 

  

  

 

 

Conference
Call

 

Management
will host a conference call at 9:00 AM ET on June 22, 2026 to review financial results and provide an update on corporate developments.
Following management’s formal remarks there will be a question-and-answer session.

 

The
conference call will primarily be available through a live webcast at the following link: https://events.q4inc.com/attendee/339194298,
which is also available through the Company’s website. The recording of the webcast will be posted on the Company’s website
after the call is completed.

 

Those
without internet access may dial in by calling (855) 761-5600 (domestic) or 1(646) 307-1097 (international). Please join at least 5-10
minutes prior to the scheduled start and follow the operator’s instructions. When requested, please ask for the “Outdoor
Holding Company Conference Call” or reference Conference ID #: 2981188.

 

About
Outdoor Holding Company

 

Outdoor
Holding Company is the publicly traded parent and operator of GunBroker.com, the largest online marketplace dedicated to firearms, hunting,
shooting and related products. Third-party sellers list items on the site and federal and state laws govern the sale of firearms and
other restricted items. Ownership policies and regulations are followed by using licensed firearms dealers as transfer agents. Launched
in 1999, the GunBroker.com website is an informative, secure and safe way to buy and sell firearms, ammunition, shooting accessories
and outdoor gear online. GunBroker promotes responsible ownership of guns and firearms. For more information, visit: www.gunbroker.com.

 

Cautionary
Statement Concerning Forward-Looking Statements

 

Statements
contained or incorporated by reference in this press release that are not historical are considered “forward-looking statements”
within the meaning of the federal securities laws and are presented pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “target,” “believe,”
“expect,” “will,” “may,” “anticipate,” “estimate,” “would,” “positioned,”
“future,” and other similar expressions that predict or indicate future events or trends or that are not statements of historical
matters. These forward-looking statements include, among others, statements about the Company’s ability to unlock post-divestiture
efficiencies, the Company’s expected legal and other professional services expenses, the Company’s business strategy, plans,
objectives, expectations and intentions, the Company’s anticipated future operating results and operating expenses, cash flow,
capital resources, dividends and liquidity, the Company’s future expansion or growth plans and potential for future growth, including
its plan to expand its e-commerce platform, the Company’s ability to attract new customers, the Company’s ongoing evaluation
of strategic opportunities, and other statements that are not historical facts. Instead, they are based only on Company management’s
current beliefs, expectations and assumptions. Because forward-looking statements relate to the future, they are subject to inherent
uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company’s
control. Important factors that could cause actual results to differ materially from those described in forward-looking statements include,
but are not limited to, the Company’s ability to maintain and expand its e-commerce business, the Company’s ability to introduce
new features on its e-commerce platform that match consumer preferences, the Company’s ability to retain and grow its customer
base, the impact of lawsuits, including securities class action lawsuits, stockholder derivative suits and enforcement actions by regulatory
authorities, the impact of adverse economic market conditions, including from social and political factors, and the occurrence of any
other event, change or other circumstances that could give rise to impacts on operating results. Therefore, investors should not rely
on any of these forward-looking statements and should review the risks and uncertainties described under the caption “Risk Factors”
in the Company’s Annual Report on Form 10-K for the year ended March 31, 2026, filed with the Securities and Exchange Commission
(“SEC”) on June 22, 2026, and additional disclosures the Company makes in its other filings with the SEC, which are available
on the SEC’s website at www.sec.gov. Forward-looking statements are made as of the date of this press release, and except
as required by law, the Company expressly disclaims any obligation or undertaking to publicly release any updates or revisions to any
forward-looking statements contained herein to reflect any change in its expectations or any change in events, conditions or circumstances
on which any such statement is based.

 

Contacts

 

For
investors:

Darrow
Associates
Phone: (917) 886-9071

[email protected]

 

Source:
Outdoor Holding Company

 

  

  

 

 

OUTDOOR
HOLDING COMPANY

NON-GAAP
FINANCIAL MEASURES (Unaudited)

 

To
supplement the Company’s financial information presented in accordance with generally accepted accounting principles in the United
States (“GAAP”), we present a non-GAAP financial measure in this press release, Adjusted EBITDA. We analyze operational and
financial data to evaluate our business, allocate our resources, and assess our performance. In addition to total net sales, net loss,
and other results under GAAP, the following information includes key operating metrics and non-GAAP financial measures that we use to
evaluate our business. We believe that these measures are useful for period-to-period comparisons of the Company’s performance.
We have included these non-GAAP financial measures in this press release because they are key measures management uses to evaluate our
operational performance, produce future strategies for our operations, and make strategic decisions, including those relating to operating
expenses and the allocation of our resources. Accordingly, we believe that these measures provide useful information to investors and
others in understanding and evaluating our operating results in the same manner as our management and Board of Directors. The Adjusted
EBITDA reconciliation presented below begins with loss from continuing operations, which the Company believes is the most directly comparable
GAAP financial measure. This reconciliation is consistent with the presentation in the Company’s first and second quarter fiscal
2026 earnings releases. In the third quarter fiscal 2026 earnings release, the Company presented the reconciliation beginning with net
loss before discontinued operations and included the preferred stock dividend as a reconciling item. The Company has reverted to the
prior presentation for clarity and consistency, as the preferred stock dividend does not impact Adjusted EBITDA under any period’s
calculation. The definition of Adjusted EBITDA has not changed.

 

Adjusted
EBITDA

 

 
   
 For the Three Months Ended

 March 31,
  
 For the Year Ended

 March 31,
 

 
   
 2026  
 2025  
 2026  
 2025 

 
 Reconciliation of GAAP net loss from continuing operations to Adjusted EBITDA 
     
     
     
    

 
 Net loss from continuing operations 
 $(2,717,977) 
 $(26,961,518) 
 $(4,945,592) 
 $(65,221,463)

 
 Provision for income taxes 
  49,537  
  317,891  
  49,537  
  6,286,305 

 
 Depreciation and amortization 
  3,677,479  
  3,457,661  
  14,396,813  
  13,589,698 

 
 Interest expense, net 
  245,865  
  (54,229) 
  1,769,656  
  82,173 

 
 Stock based compensation 
  249,806  
  811,070  
  1,507,266  
  4,474,516 

 
 Other income (expense), net 
  (531,992) 
  (243,503) 
  (2,364,142) 
  (860,293)

 
 Acquisition and divestitures 
  —  
  1,194,763  
  108,748  
  1,493,069 

 
 Special Committee Investigation and restatement 
  (20,000) 
  3,090,806  
  1,517,158  
  8,639,147 

 
 SEC Investigation 
  1,247,379  
  1,629,455  
  74,782  
  9,923,892 

 
 Delaware Litigation legal and professional fees 
  —  
  1,609,575  
  1,641,915  
  4,480,193 

 
 Delaware Litigation settlement contingency 
  —  
  18,076,226  
  —  
  29,067,229 

 
 Corporate restructuring costs 
  903,884  
  —  
  2,995,460  
  — 

 
 Gain on extinguishment of debt 
  —  
  —  
  (801,894) 
  — 

 
 Other nonrecurring expenses¹ 
  4,600,000  
  —  
  6,350,000  
  3,298,399 

 
 Adjusted EBITDA 
 $7,703,981  
 $2,928,197  
 $22,299,707  
 $15,252,865 

 

 

 1
 For the three months ended
 March 31, 2026, other nonrecurring expenses consisted of $4.4 a million settlement to DCP and a $0.2 million settlement contingency
 with a separate vendor as part of the sale of our ammunition manufacturing business. For the year ended March 31, 2026, other nonrecurring
 expenses consisted of a $4.4 million settlement to DCP, a $1.75 million settlement with a vendor as part of our sale of the ammunition
 manufacturing business and a $0.2 million settlement contingency with a separate vendor as part of the sale of our ammunition manufacturing
 business. For the year ended March 31, 2025, other nonrecurring expenses consisted of a $3.2 million expense related to the previously
 disclosed settlement with Triton Value Partners, LLC.

 

Adjusted
EBITDA is a non-GAAP financial measure that displays our net loss from continuing operations (the most directly comparable financial
measure prepared in accordance with GAAP), adjusted to eliminate the effect of certain items described below. We defined Adjusted EBITDA
as net income (loss) from continuing operations excluding (i) provision or benefit for income taxes, (ii) depreciation and amortization,
(iii) interest expense, (iv) stock-based compensation expenses relating to stock awards and common stock purchase options, (v) interest
and other income, (vi) expenses related to acquisition and divestitures, (vii) gain on extinguishment of debt, (viii) professional service
and legal fees related to an investigation conducted by a special committee of the Board of Directors (the “Special Committee Investigation”),
an investigation by the SEC (“the SEC Investigation”) and the now-settled lawsuit related to the GunBroker acquisition (the
“Delaware Litigation”) and (ix) other nonrecurring expenses, such as contingencies associated with litigation or settlements
and corporate restructuring costs related to headcount reductions, severance, and expense consolidation.

 

We
believe that it is useful to exclude these expenses because the amount of such expenses in any specific period may not directly correlate
to the underlying performance of our business operations. Non-GAAP financial measures have limitations, should be considered as supplemental
in nature and are not meant as a substitute for the related financial information prepared in accordance with GAAP. These limitations
include the following:

 

●stock-based
 compensation expense has been, and will continue to be for the foreseeable future, a significant
 recurring expense for the Company and an important part of our compensation strategy;

●the
 assets being depreciated or amortized may have to be replaced in the future, and the non-GAAP
 financial measures do not reflect cash capital expenditure requirements for such replacements
 or for new capital expenditures or other capital commitments;

●non-GAAP
 measures do not reflect changes in, or cash requirements for, our working capital needs;
 and

●other
 companies, including companies in our industry, may calculate their non-GAAP financial measures
 differently or not at all, which reduces their usefulness as comparative measures.

 

Because
of these limitations, you should consider the non-GAAP financial measures alongside other financial performance measures, including our
net income (loss) from continuing operations and our other financial results presented in accordance with GAAP.

 

  

  

 

 

OUTDOOR
HOLDING COMPANY

ADJUSTED
EBITDA PER SHARE (Unaudited)

 

 
   
 For the Three Months Ended

 March 31,
  
 For the Year Ended

 March 31,
 

 
   
 2026  
 2025  
 2026  
 2025 

 
   
 (Unaudited)  
 (Unaudited)  
 (Unaudited)  
 (Unaudited) 

 
 Reconciliation of GAAP loss from continuing operations to Adjusted EBITDA 
     
     
     
    

 
 Net loss from continuing operations 
 $(0.02) 
 $(0.23) 
 $(0.04) 
 $(0.55)

 
 Provision for income taxes 
  0.00  
  0.00  
  0.00  
  0.05 

 
 Depreciation and amortization 
  0.03  
  0.03  
  0.12  
  0.12 

 
 Interest expense, net 
  0.00  
  (0.00) 
  0.02  
  0.00 

 
 Stock based compensation 
  0.00  
  0.01  
  0.01  
  0.04 

 
 Other income (expense), net 
  (0.00) 
  (0.00) 
  (0.02) 
  (0.01)

 
 Acquisitions and divestitures 
  —  
  0.01  
  0.00  
  0.01 

 
 Special Committee Investigation and restatement 
  (0.00) 
  0.03  
  0.01  
  0.07 

 
 SEC Investigation 
  0.01  
  0.01  
  0.00  
  0.08 

 
 Delaware Litigation legal and professional fees 
  —  
  0.01  
  0.01  
  0.04 

 
 Delaware Litigation settlement contingency 
  —  
  0.16  
  —  
  0.25 

 
 Corporate restructuring costs 
  0.01  
  —  
  0.03  
  — 

 
 Gain on extinguishment of debt 
  —  
  —  
  (0.01) 
  — 

 
 Other nonrecurring expenses 
  0.04  
  —  
  0.05  
  0.03 

 
 Adjusted EBITDA 
 $0.07  
 $0.03  
 $0.19  
 $0.13 

 

 

Diluted
Loss Per Share — Continuing Operations

 

 
   
 For the Three Months Ended

 March 31,
  
 For the Year Ended

 March 31,
 

 
   
 2026  
 2025  
 2026  
 2025 

 
 Total diluted loss before discontinued operations, net of tax 
 $(0.03) 
 $(0.24) 
 $(0.06) 
 $(0.58)

 
 Preferred stock dividend 
  (0.01) 
  (0.01) 
  (0.02) 
  (0.03)

 
 Total diluted loss from continuing operations 
 $(0.02) 
 $(0.23) 
 $(0.04) 
 $(0.55)

 

 

Weighted
Average Shares Outstanding

 
   
 For the Three Months Ended

 March 31,
  
 For the Year Ended

 March 31,
 

 
   
 2026  
 2025  
 2026  
 2025 

 
 Weighted average number of shares outstanding 
     
     
     
    

 
 Basic 
  117,229,844  
  116,511,247  
  117,095,850  
  117,642,232 

 
 Diluted 
  117,229,844  
  116,511,247  
  117,095,850  
  117,642,232 

 

 

  

  

 

 

OUTDOOR
HOLDING COMPANY

CONSOLIDATED
BALANCE SHEETS

 

 
   
 March 31, 2026  
 March 31, 2025 

 
 ASSETS 
     
    

 
 Current Assets: 
     
    

 
 Cash and cash equivalents 
 $68,103,395  
 $30,227,796 

 
 Accounts receivable, net of allowance for credit losses of $2,362,847 in 2026 and $3,805,488 in 2025 
  10,361,158  
  10,189,011 

 
 Prepaid expenses and other current assets 
  3,523,921  
  1,233,611 

 
 Current assets held for sale 
  —  
  30,497,720 

 
 Total Current Assets 
  81,988,474  
  72,148,138 

 
   
     
    

 
 Property and equipment, net 
  6,927,868  
  6,477,684 

 
   
     
    

 
 Other Assets: 
     
    

 
 Other noncurrent assets 
  465,247  
  83,278 

 
 Other intangible assets, net 
  86,890,053  
  98,891,767 

 
 Goodwill 
  90,870,094  
  90,870,094 

 
 Right of use assets - operating leases 
  342,034  
  1,466,026 

 
 Noncurrent assets held for sale 
  —  
  27,392,642 

 
 TOTAL ASSETS 
 $267,483,770  
 $297,329,629 

 
   
     
    

 
 LIABILITIES AND SHAREHOLDERS’ EQUITY 
     
    

 
 Current Liabilities: 
     
    

 
 Accounts payable 
 $15,743,606  
 $18,079,577 

 
 Accrued liabilities 
  4,241,349  
  37,413,636 

 
 Current portion of operating lease liability 
  515,579  
  519,522 

 
 Note payable - related parties, current maturities 
  220,000  
  — 

 
 Current liabilities held for sale 
  —  
  6,080,182 

 
 Total Current Liabilities 
  20,720,534  
  62,092,917 

 
   
     
    

 
 Long-term Liabilities: 
     
    

 
 Notes payable - related parties, net of $1,963,771 of debt discounts as of March 31, 2026 
  9,816,229  
  — 

 
 Income tax payable 
  —  
  1,609,520 

 
 Operating lease liability, net of current portion 
  616,904  
  1,035,813 

 
 Other noncurrent liabilities 
  1,375,000  
  — 

 
 Noncurrent liabilities held for sale 
  —  
  10,564,816 

 
 Total Liabilities 
  32,528,667  
  75,303,066 

 
   
     
    

 
 Contingencies (Note 14) 
     
    

 
   
     
    

 
 Shareholders’ Equity: 
     
    

 
 Series A cumulative perpetual preferred stock 8.75%, ($25.00 per share, $0.001 par value) 1,400,000 shares issued and outstanding as of March 31, 2026 and 2025 
  1,400  
  1,400 

 
 Common stock, $0.001 par value, 200,000,000 shares authorized 119,346,452 and 118,744,093 shares issued and 116,902,624 and 116,814,190 outstanding as of March 31, 2026 and 2025, respectively 
  116,905  
  116,816 

 
 Additional paid-in capital 
  454,877,083  
  434,335,782 

 
 Accumulated deficit 
  (210,453,668) 
  (203,862,034)

 
 Treasury stock, at cost 
  (9,586,617) 
  (8,565,401)

 
 Total Shareholders’ Equity 
  234,955,103  
  222,026,563 

 
 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 
 $267,483,770  
 $297,329,629 

 

 

  

  

 

 

OUTDOOR
HOLDING COMPANY

CONSOLIDATED
STATEMENTS OF OPERATIONS

 

 
   
 For the Three Months

 Ended March 31,
  
 For the Year Ended

 March 31,
 

 
   
 2026  
 2025  
 2026  
 2025 

 
 Net revenues 
 $13,889,393  
 $12,614,668  
 $51,125,398  
 $49,401,547 

 
 Cost of revenues 
  1,728,199  
  1,582,159  
  6,524,437  
  6,468,031 

 
 Gross Profit 
  12,161,194  
  11,032,509  
  44,600,961  
  42,933,516 

 
   
     
     
     
    

 
 Operating Expenses 
     
     
     
    

 
 Selling and marketing 
  401,559  
  370,557  
  550,333  
  610,926 

 
 Corporate general and administrative 
  9,305,905  
  29,700,218  
  22,674,572  
  70,594,542 

 
 Employee salaries and related expenses 
  1,730,818  
  4,445,432  
  13,271,678  
  17,851,628 

 
 Depreciation and amortization expense 
  3,677,479  
  3,457,661  
  14,396,813  
  13,589,698 

 
 Total operating expenses 
  15,115,761  
  37,973,868  
  50,893,396  
  102,646,794 

 
 Loss from operations 
  (2,954,567) 
  (26,941,359) 
  (6,292,435) 
  (59,713,278)

 
   
     
     
     
    

 
 Other Income (Expense) 
     
     
     
    

 
 Interest and other income 
  531,992  
  243,503  
  2,364,142  
  860,293 

 
 Gain on extinguishment of debt 
  —  
  —  
  801,894  
  — 

 
 Interest expense 
  (245,865) 
  54,229  
  (1,769,656) 
  (82,173)

 
 Total other income, net 
  286,127  
  297,732  
  1,396,380  
  778,120 

 
   
     
     
     
    

 
 Loss before income taxes from continuing operations 
  (2,668,440) 
  (26,643,627) 
  (4,896,055) 
  (58,935,158)

 
   
     
     
     
    

 
 Provision for income taxes 
  49,537  
  317,891  
  49,537  
  6,286,305 

 
   
     
     
     
    

 
 Loss from continuing operations 
  (2,717,977) 
  (26,961,518) 
  (4,945,592) 
  (65,221,463)

 
   
     
     
     
    

 
 Preferred stock dividend 
  (765,625) 
  (765,625) 
  (3,053,993) 
  (3,105,036)

 
   
     
     
     
    

 
 Net loss before discontinued operations, net of tax 
  (3,483,602) 
  (27,727,143) 
  (7,999,585) 
  (68,326,499)

 
   
     
     
     
    

 
 Income (loss) from discontinued operations, net of tax 
  2,003,585  
  (50,555,212) 
  1,407,951  
  (65,612,137)

 
   
     
     
     
    

 
 Net loss attributable to common stock shareholders 
 $(1,480,017) 
 $(78,282,355) 
 $(6,591,634) 
 $(133,938,636)

 
   
     
     
     
    

 
 Basic income (loss) per share of common stock: 
     
     
     
    

 
 Continuing operations 
 $(0.03) 
 $(0.24) 
 $(0.06) 
 $(0.58)

 
 Discontinued operations 
  0.02  
  (0.43) 
  0.01  
  (0.56)

 
 Total basic loss per share of common stock 
 $(0.01) 
 $(0.67) 
 $(0.05) 
 $(1.14)

 
   
     
     
     
    

 
 Diluted income (loss) per share of common stock: 
     
     
     
    

 
 Continuing operations 
 $(0.03) 
 $(0.24) 
 $(0.06) 
 $(0.58)

 
 Discontinued operations 
  0.02  
  (0.43) 
  0.01  
  (0.56)

 
 Total diluted loss per share of common stock 
 $(0.01) 
 $(0.67) 
 $(0.05) 
 $(1.14)

 
   
     
     
     
    

 
 Weighted average number of shares outstanding: 
     
     
     
    

 
 Basic 
  117,229,844  
  116,511,247  
  117,095,850  
  117,642,232 

 
 Diluted 
  117,229,844  
  116,511,247  
  117,095,850  
  117,642,232