Financials

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 11,937,009	$ 3,611,438
Accounts receivable, net	8,957,459	13,005,718
Other prepaid expenses	526,770	374,380
Assets from discontinued operations		10,596
Total current assets	21,421,238	17,002,132
Property and equipment, net	451,970	449,949
Other assets
Capitalized software development costs, net	1,320,638	1,485,285
Intangible assets:
Patents	678,758	742,574
Other intangible assets, net	1,100,257	1,168,007
Goodwill	6,444,225	6,444,225
Other assets	106,745	92,420
Total other assets	9,650,623	9,932,511
Total assets	31,523,831	27,384,592
Current liabilities
Accounts payable	3,988,230	6,506,902
Accrued expenses	6,607,997	9,911,540
Deferred revenue	57,857
Current obligations under capital lease	5,682	2,756
Warrant liability	898,172	1,539,388
Liabilities from discontinued operations		210,789
Total current liabilities	11,557,938	18,171,375
Long-term liabilities
Obligations under capital lease	10,328
Total long-term liabilities	10,328
Total liabilities	11,568,266	18,171,375
Commitments and contingencies - See notes 16
Stockholders' Equity
Preferred stock, $.0001 par value, 5,000,000 shares authorized; none outstanding
Common stock, $.001 par value; 100,000,000 shares authorized, 25,115,570 shares issued and outstanding as of March 31, 2018; and 22,039,529 shares issued and outstanding as of December 31, 2017	25,114	22,038
Additional paid-in capital	180,995,931	165,008,928
Accumulated deficit	(161,065,480)	(155,817,749)
Total stockholders' equity	19,955,565	9,213,216
Total liabilities and stockholders' equity	$ 31,523,831	$ 27,384,592

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Revenue
Media placement	$ 11,144,652	$ 6,522,132
Licensing and royalties		30,616
Total revenue	11,144,652	6,552,748
Cost of Revenue
Cost of revenue	6,697,876	3,395,061
Gross profit	4,446,776	3,157,687
Operating Expenses
Sales and marketing	5,260,251	3,476,911
General and administrative	4,949,383	2,330,454
Depreciation and amortization	184,757	161,764
Total operating expenses	10,394,391	5,969,129
Loss from operations	(5,947,615)	(2,811,442)
Other Income (Expense)
Earnings from joint venture		92,213
Gain on revaluation of warrant liability	641,216
Other income	86,079
Interest income (expense), net	3,974	(391,614)
Net loss before income taxes	(5,216,346)	(3,110,843)
Income tax expense	(31,385)
Net loss from continuing operations	(5,247,731)	(3,110,843)
Discontinued Operations
Income from operations of discontinued component		51,376
Net income from discontinued operations		51,376
Net loss	$ (5,247,731)	$ (3,059,467)
Basic and diluted net (loss) per share
Continuing operations	$ (0.22)	$ (0.15)
Discontinued operations		0
Basic and diluted net (loss) per share	$ (0.22)	$ (0.15)
Basic and diluted weighted average shares outstanding	23,724,307	20,681,047

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash Flows from Operating Activities
Net loss	$ (5,247,731)	$ (3,059,467)
Less: income from discontinued operations, net of tax		51,376
Net loss from continuing operations	(5,247,731)	(3,110,843)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense	40,544	41,418
Amortization expense - software development costs	208,554	212,483
Amortization expense - patents	76,463	52,597
Amortization expense - discount of debt		186,184
Amortization expense - deferred costs		8,828
Amortization expense - intangible assets	67,750	67,750
Provision for bad debt		39,945
Loss on disposition of assets	5,871	6,024
Gain on revaluation of warrant liability	(641,216)
Stock option compensation expense	1,137,246	341,260
Restricted stock compensation expense	952,082
Changes in operating assets and liabilities:
Decrease in accounts receivable, net	4,048,259	1,184,039
(Increase) in prepaid expenses	(152,390)	(57,269)
(Increase) decrease in other assets	(10,680)	29,567
(Decrease) in accounts payable	(2,663,396)	(135,157)
(Decrease) increase in accrued expenses	(3,309,912)	302,355
(Decrease) in deferred revenue	(1,839)	(10,086)
Increase in accrued interest		7,952
Net cash used in operating activities - continuing operations	(5,490,395)	(832,953)
Net cash provided by operating activities - discontinued operations		46,626
Net cash used in operating activities	(5,490,395)	(786,327)
Cash Flows from Investing Activities
Patents and patent applications costs	(12,647)	(33,759)
Purchase of property and equipment	(41,486)	(167,856)
Proceeds from sale of property and equipment		27,000
Capitalized software development costs	(43,906)	(318,780)
Net cash used in investing activities - continuing operations	(98,039)	(493,395)
Net cash provided by investing activities - discontinued operations		312,591
Net cash used in investing activities	(98,039)	(180,804)
Cash Flows from Financing Activities
Proceeds from issuance of common stock	14,842,750
Proceeds from exercise of stock options	116,251
Stock issuance costs	(1,058,249)
Principal reduction on obligation under capital lease	13,253	(838)
Principal reduction on repayment of debt		(825,000)
Net cash provided by (used in) financing activities - continuing operations	13,914,005	(825,838)
Net cash provided by financing activities - discontinued operations
Net cash provided by (used in) financing activities	13,914,005	(825,838)
Net increase (decrease) in cash and cash equivalents	8,325,571	(1,792,969)
Cash and cash equivalents - beginning of period	3,611,438	8,744,545
Cash and cash equivalents - ending of period	11,937,009	6,951,576
Supplemental Information:
Interest expense paid	51	190,363
Income taxes paid	$ 31,625

Single Touch Interactive, Inc.

Financials