| DELAWARE | 000-31321 | 81-0503640 | ||
|
(State or Other Jurisdiction
of Incorporation) |
(Commission
File Number) |
(IRS Employer
Identification No.) |
| 136 ENTERPRISE BOULEVARD, BOZEMAN, MT | 59718 | |
| (Address of Principal Executive Offices) | (Zip Code) |
| o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| (a) | Financial statements of business acquired. | ||
| The financial statements of HiveLive, Inc. required by this Item 9.01(a) are attached hereto as Exhibits 99.2 and 99.3 and are incorporated herein by reference. | |||
| (b) | Pro forma financial information. | ||
| The pro forma financial information required by this Item 9.01(b) is attached hereto as Exhibit 99.4 and is incorporated herein by reference. | |||
| (c) | Shell company transactions. | ||
| Not applicable | |||
| (d) | Exhibits. | ||
| 23.1 | Consent of Gordon, Hughes and Banks, LLP, independent auditors for HiveLive, Inc. | ||
| 23.2 | Consent of Ehrhardt Keefe Steiner and Hottman PC, independent auditors for HiveLive, Inc. | ||
| 99.1 | Press release dated September 16, 2009 announcing RightNow Technologies, Inc.s completed acquisition of HiveLive, Inc. (previously furnished but not filed pursuant to Item 7.01 of the Initial Form 8-K). | ||
| 99.2 | Audited consolidated financial statements of HiveLive, Inc. for the years ending December 31, 2008 and 2007. | ||
| 99.3 | Unaudited interim consolidated financial statements of HiveLive, Inc. for the six month period ending June 30, 2009 and the comparative period June 30, 2008. | ||
| 99.4 | Unaudited pro forma condensed combined balance sheet as of June 30, 2009 and the unaudited pro forma condensed combined statement of operations for the year ended December 31, 2008 and the six month period ended June 30, 2009. |
RIGHTNOW TECHNOLOGIES, INC.
(Registrant)
Dated: November 4, 2009
/s/ Jeffrey C. Davison
Jeffrey C. Davison
Chief Financial Officer, Vice President and
Treasurer
| Page | ||||
|
Independent Auditors Report
|
1 | |||
|
|
||||
|
Financial Statements
|
||||
|
|
||||
|
Balance Sheets
|
2 | |||
|
|
||||
|
Statements of Operations
|
3 | |||
|
|
||||
|
Statement of Changes in Stockholders Equity
|
4 | |||
|
|
||||
|
Statements of Cash Flows
|
5 | |||
|
|
||||
|
Notes to Financial Statements
|
7 | |||
| December 31, | ||||||||
| 2008 | 2007 | |||||||
|
Assets
|
||||||||
|
Current assets
|
||||||||
|
Cash and cash equivalents
|
$ | 3,116,235 | $ | 491,454 | ||||
|
Restricted cash
|
50,000 | | ||||||
|
Accounts receivable
|
125,408 | 21,450 | ||||||
|
Deferred direct costs of revenue
|
138,724 | | ||||||
|
Other assets
|
57,676 | 4,572 | ||||||
|
|
||||||||
|
Total current assets
|
3,488,043 | 517,476 | ||||||
|
|
||||||||
|
|
||||||||
|
Non-current assets
|
||||||||
|
Property and equipment, net
|
220,922 | 37,166 | ||||||
|
Deferred direct costs of revenue, net of current portion
|
82,393 | | ||||||
|
Deposits
|
23,906 | 10,479 | ||||||
|
|
||||||||
|
Total non-current assets
|
327,221 | 47,645 | ||||||
|
|
||||||||
|
|
||||||||
|
Total assets
|
$ | 3,815,264 | $ | 565,121 | ||||
|
|
||||||||
|
|
||||||||
|
Liabilities and Stockholders Equity
|
||||||||
|
Current liabilities
|
||||||||
|
Accounts payable and accrued liabilities
|
$ | 172,590 | $ | 92,921 | ||||
|
Deferred revenue
|
229,001 | 8,235 | ||||||
|
Current portion of long-term debt
|
166,667 | | ||||||
|
|
||||||||
|
Total current liabilities
|
568,258 | 101,156 | ||||||
|
|
||||||||
|
Non-current liabilities
|
||||||||
|
Long-term debt, net of current portion
|
822,426 | | ||||||
|
|
||||||||
|
Total liabilities
|
1,390,684 | 101,156 | ||||||
|
|
||||||||
|
|
||||||||
|
Stockholders equity
|
||||||||
|
Preferred Series A stock, $0.001 par value. Authorized
13,392,034 and 20,528,948 shares; 13,241,920 and
12,695,506 shares issued and outstanding as of December
31, 2008 and 2007, respectively
|
2,171,984 | 2,082,877 | ||||||
|
Preferred Series B stock, $0.001 par value. Authorized
18,240,693 and 0 shares; 17,009,495 and 0 shares issued
and outstanding as of December 31, 2008 and 2007,
respectively
|
5,526,617 | | ||||||
|
Common stock, $0.001 par value. Authorized 50,000,000
and 34,038,948 shares; 11,510,000 shares issued and
outstanding at December 31, 2008 and 2007, respectively
|
11,510 | 11,510 | ||||||
|
Additional paid-in capital
|
41,065 | 20,184 | ||||||
|
Deficit accumulated during the development stage
|
(5,326,596 | ) | (1,650,606 | ) | ||||
|
|
||||||||
|
Total stockholders equity
|
2,424,580 | 463,965 | ||||||
|
|
||||||||
|
|
||||||||
|
Total liabilities and stockholders equity
|
$ | 3,815,264 | $ | 565,121 | ||||
|
|
||||||||
- 2 -
| For the | ||||||||||||
| Cumulative | ||||||||||||
| Period | ||||||||||||
| November 30, | ||||||||||||
| 2005 | ||||||||||||
| For the Years Ended | (Inception) to | |||||||||||
| December 31, | December 31, | |||||||||||
| 2008 | 2007 | 2008 | ||||||||||
|
Revenues
|
$ | 364,408 | $ | 89,266 | $ | 468,674 | ||||||
|
|
||||||||||||
|
|
||||||||||||
|
Operating expenses
|
||||||||||||
|
Sales and marketing
|
2,183,864 | 370,199 | 2,554,063 | |||||||||
|
Direct costs and expenses
|
92,851 | 14,127 | 114,936 | |||||||||
|
Product development
|
870,295 | 619,667 | 1,501,906 | |||||||||
|
General and administrative
|
923,749 | 475,283 | 1,656,353 | |||||||||
|
|
||||||||||||
|
Total operating expenses
|
4,070,759 | 1,479,276 | 5,827,258 | |||||||||
|
|
||||||||||||
|
|
||||||||||||
|
Loss from operations
|
(3,706,351 | ) | (1,390,010 | ) | (5,358,584 | ) | ||||||
|
|
||||||||||||
|
|
||||||||||||
|
Other income (expense)
|
||||||||||||
|
Interest income
|
40,833 | 25,689 | 66,522 | |||||||||
|
Interest expense
|
(10,472 | ) | (164 | ) | (34,534 | ) | ||||||
|
|
||||||||||||
|
Total other income
|
30,361 | 25,525 | 31,988 | |||||||||
|
|
||||||||||||
|
|
||||||||||||
|
Net loss
|
$ | (3,675,990 | ) | $ | (1,364,485 | ) | $ | (5,326,596 | ) | |||
|
|
||||||||||||
- 3 -
| Accumulated | ||||||||||||||||||||||||||||||||||||
| Deficit During | ||||||||||||||||||||||||||||||||||||
| Convertible Redeemable Preferred Stock | Additional | the | Total | |||||||||||||||||||||||||||||||||
| Series A | Series B | Common Stock | Paid-in | Development | Stockholders | |||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Shares | Amount | Capital | Stage | Equity | ||||||||||||||||||||||||||||
|
Balance November 30, 2005 (Inception)
|
| $ | | | $ | | | $ | | $ | | $ | | $ | | |||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
Issuance of preferred stock, net of offering costs of $17,009
|
9,307,070 | 1,532,990 | | | | | | | 1,532,990 | |||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
Conversion of promissory note to preferred stock
|
632,347 | 105,312 | | | | | | | 105,312 | |||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
Issuance of Series A warrants upon conversion of promissory
note to preferred stock
|
| | | | | | 18,411 | | 18,411 | |||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
Sale of common stock for cash
|
| | | | 1,310,000 | 1,310 | | | 1,310 | |||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
Common stock issued for services
|
| | | | 4,216,667 | 4,217 | | | 4,217 | |||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
Net loss
|
| | | | | | | (286,121 | ) | (286,121 | ) | |||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
Balance December 31, 2006
|
9,939,417 | 1,638,302 | | | 5,526,667 | 5,527 | 18,411 | (286,121 | ) | 1,376,119 | ||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
Issuance of preferred stock, net of offering costs of $14,425
|
2,756,089 | 444,575 | | | | | | | 444,575 | |||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
Common stock issued for services
|
| | | | 5,983,333 | 5,983 | | | 5,983 | |||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
Stock-based compensation
|
1,773 | 1,773 | ||||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
Net loss
|
| | | | | | | (1,364,485 | ) | (1,364,485 | ) | |||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
Balance December 31, 2007
|
12,695,506 | 2,082,877 | | | 11,510,000 | 11,510 | 20,184 | (1,650,606 | ) | 463,965 | ||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
Issuance of preferred stock, net of offering costs of $1,893
|
546,414 | 89,107 | | | | | | | 89,107 | |||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
Issuance of preferred stock, net of offering costs of $68,316
|
| | 17,009,495 | 5,526,617 | | | | | 5,526,617 | |||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
Issuance of Series B warrants in conjunction with debt issuance
|
| | | | | | 12,107 | | 12,107 | |||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
Stock-based compensation
|
| | | | | | 8,774 | | 8,774 | |||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
Net loss
|
| | | | | | | (3,675,990 | ) | (3,675,990 | ) | |||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
|
Balance December 31, 2008
|
13,241,920 | $ | 2,171,984 | 17,009,495 | $ | 5,526,617 | 11,510,000 | $ | 11,510 | $ | 41,065 | $ | (5,326,596 | ) | $ | 2,424,580 | ||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||
- 4 -
| For the | ||||||||||||
| Cumulative | ||||||||||||
| Period | ||||||||||||
| November 30, | ||||||||||||
| 2005 (Inception) | ||||||||||||
| For the Years Ended | to | |||||||||||
| December 31, | December 31, | |||||||||||
| 2008 | 2007 | 2008 | ||||||||||
|
Cash flows from operating activities
|
||||||||||||
|
Net loss
|
$ | (3,675,990 | ) | $ | (1,364,485 | ) | $ | (5,326,596 | ) | |||
|
Adjustments to reconcile net loss to net cash
used in operating activities
|
||||||||||||
|
Depreciation expense
|
48,065 | 13,517 | 64,404 | |||||||||
|
Common stock issued for services
|
| 5,983 | 10,200 | |||||||||
|
Stock-based compensation
|
8,774 | 1,773 | 10,547 | |||||||||
|
Value of warrants issued upon debt conversion
|
| | 18,411 | |||||||||
|
Amortization of debt discount
|
1,200 | | 1,200 | |||||||||
|
Changes in operating assets and liabilities
|
||||||||||||
|
Accounts receivable
|
(103,958 | ) | (21,450 | ) | (125,408 | ) | ||||||
|
Prepaid commissions
|
(221,117 | ) | | (221,117 | ) | |||||||
|
Other assets
|
(53,104 | ) | 879 | (57,676 | ) | |||||||
|
Deposits
|
(13,427 | ) | (200 | ) | (23,906 | ) | ||||||
|
Accounts payable and accrued liabilities
|
79,669 | 40,063 | 177,902 | |||||||||
|
Deferred revenue
|
220,766 | 3,235 | 229,001 | |||||||||
|
|
||||||||||||
|
Net cash used in operating activities
|
(3,709,122 | ) | (1,320,685 | ) | (5,243,038 | ) | ||||||
|
|
||||||||||||
|
|
||||||||||||
|
Cash flows from investing activities
|
||||||||||||
|
Purchase of property and equipment
|
(231,821 | ) | (41,158 | ) | (285,326 | ) | ||||||
|
Restricted cash
|
(50,000 | ) | | (50,000 | ) | |||||||
|
|
||||||||||||
|
Net cash used in investing activities
|
(281,821 | ) | (41,158 | ) | (335,326 | ) | ||||||
|
|
||||||||||||
|
|
||||||||||||
|
Cash flows from financing activities
|
||||||||||||
|
Proceeds from issuance of preferred stock
|
5,685,933 | 444,575 | 7,694,932 | |||||||||
|
Equity offering costs
|
(70,209 | ) | | (101,643 | ) | |||||||
|
Proceeds from convertible note payable
|
| | 100,000 | |||||||||
|
Proceeds from note payable
|
1,000,000 | | 1,000,000 | |||||||||
|
Proceeds from the issuance of common stock
|
| | 1,310 | |||||||||
|
|
||||||||||||
|
Net cash provided by financing activities
|
6,615,724 | 444,575 | 8,694,599 | |||||||||
|
|
||||||||||||
|
|
||||||||||||
|
Net increase (decrease) in cash and cash equivalents
|
2,624,781 | (917,268 | ) | 3,116,235 | ||||||||
|
|
||||||||||||
|
Cash and cash equivalents beginning of year
|
491,454 | 1,408,722 | | |||||||||
|
|
||||||||||||
|
|
||||||||||||
|
Cash and cash equivalents end of year
|
$ | 3,116,235 | $ | 491,454 | $ | 3,116,235 | ||||||
|
|
||||||||||||
- 5 -
| For the | ||||||||||||
| Cumulative | ||||||||||||
| Period | ||||||||||||
| November 30, | ||||||||||||
| 2005 | ||||||||||||
| For the Years Ended | (Inception) to | |||||||||||
| December 31, | December 31, | |||||||||||
| 2008 | 2007 | 2008 | ||||||||||
|
Cash paid for interest
|
$ | 9,274 | $ | 164 | $ | 9,477 | ||||||
|
|
||||||||||||
|
|
||||||||||||
|
Conversion of promissory
note and accrued interest
to Series A preferred stock
|
$ | | $ | | $ | 105,312 | ||||||
|
|
||||||||||||
|
|
||||||||||||
|
Debt discount recognized
from issuance of debt with
warrants
|
$ | 12,107 | $ | | $ | 12,107 | ||||||
|
|
||||||||||||
- 6 -
- 7 -
| As of and for the | ||||||||||||||||||||||||
| Cumulative Period | ||||||||||||||||||||||||
| November 30, 2005 | ||||||||||||||||||||||||
| As of and for the Years Ended December 31, | (Inception) to | |||||||||||||||||||||||
| 2008 | 2007 | December 31, 2008 | ||||||||||||||||||||||
| Percentage | Customers | Percentage | Customers | Percentage | Customers | |||||||||||||||||||
|
Revenue
|
63 | % | 3 | 95 | % | 3 | 67 | % | 3 | |||||||||||||||
|
Accounts receivable
|
26 | % | 2 | 100 | % | 2 | 26 | % | 2 | |||||||||||||||
- 8 -
- 9 -
- 10 -
| December 31, | ||||||||
| 2008 | 2007 | |||||||
|
Computer equipment
|
$ | 146,251 | $ | 49,891 | ||||
|
Office equipment
|
123,951 | 3,614 | ||||||
|
Leasehold improvements
|
15,124 | | ||||||
|
|
||||||||
|
|
285,326 | 53,505 | ||||||
|
Less accumulated depreciation
|
(64,404 | ) | (16,339 | ) | ||||
|
|
||||||||
|
|
||||||||
|
|
$ | 220,922 | $ | 37,166 | ||||
|
|
||||||||
- 11 -
| Year Ending December 31, | ||||
|
2009
|
$ | 197,979 | ||
|
2010
|
159,239 | |||
|
2011
|
13,627 | |||
|
2012
|
| |||
|
2013
|
| |||
|
|
||||
|
|
||||
|
|
$ | 370,845 | ||
|
|
||||
- 12 -
- 13 -
- 14 -
- 15 -
| Weighted | ||||||||
| Incentive Stock | Average | |||||||
| Options | Exercise Price | |||||||
|
Outstanding, January 1, 2007
|
$ | | $ | | ||||
|
Granted
|
1,075,000 | 0.02 | ||||||
|
Exercised
|
| | ||||||
|
Forfeited
|
(95,000 | ) | 0.02 | |||||
|
|
||||||||
|
|
||||||||
|
Outstanding, December 31, 2007
|
980,000 | 0.02 | ||||||
|
Granted
|
2,753,500 | 0.04 | ||||||
|
Exercised
|
| | ||||||
|
Forfeited
|
(797,750 | ) | 0.03 | |||||
|
|
||||||||
|
|
||||||||
|
Outstanding, December 31, 2008
|
$ | 2,935,750 | $ | 0.04 | ||||
|
|
||||||||
- 16 -
|
Six Months Ended
June 30, |
||||||||
| 2009 | 2008 | |||||||
|
|
||||||||
|
Revenues
|
$ | 553,079 | $ | 195,525 | ||||
|
|
||||||||
|
Operating expenses
|
||||||||
|
Sales and marketing
|
1,300,329 | 721,262 | ||||||
|
Direct costs and expenses
|
73,061 | 31,843 | ||||||
|
Product development
|
523,579 | 335,027 | ||||||
|
General and administrative
|
647,761 | 367,975 | ||||||
|
|
||||||||
|
Total operating expenses
|
2,544,730 | 1,456,107 | ||||||
|
|
||||||||
|
|
||||||||
|
Loss from operations
|
(1,991,651 | ) | (1,260,582 | ) | ||||
|
|
||||||||
|
|
||||||||
|
Other income (expense)
|
||||||||
|
Interest income
|
12,827 | 140 | ||||||
|
Interest expense
|
(20,656 | ) | (410 | ) | ||||
|
|
||||||||
|
Total other income
|
(7,829 | ) | (270 | ) | ||||
|
|
||||||||
|
|
||||||||
|
Net loss
|
$ | (1,999,480 | ) | $ | (1,260,852 | ) | ||
|
|
||||||||
(a development stage company)
BALANCE SHEET
(unaudited)
June 30
2009
1,201,287
50,000
255,178
139,193
39,485
1,685,143
194,307
76,943
23,907
295,157
1,980,300
64,741
490,477
989,093
1,544,311
1,544,311
2,171,984
5,526,617
11,782
51,683
(7,326,077
)
435,989
1,980,300
(a development stage company)
Statements of Cash Flows
(unaudited)
Six Months Ended
June 30,
2009
2008
(1,999,480
)
(1,260,852
)
40,646
14,138
(129,770
)
(97,252
)
4,981
18,190
(24,562
)
(6,977
)
(107,850
)
(20,834
)
261,476
39,100
(1,911,807
)
(1,357,239
)
(14,031
)
(90,303
)
(14,031
)
(90,303
)
5,615,724
10,890
10,890
5,615,724
(1,914,948
)
4,168,182
3,116,235
491,454
1,201,287
4,659,636
| RightNow | HiveLive | |||||||||||||||
| June 30, | June 30, | Pro Forma | Pro Forma | |||||||||||||
| 2009 | 2009 | Adjustments | Combined | |||||||||||||
|
Assets
|
||||||||||||||||
|
Cash and cash equivalents
|
$ | 46,987 | $ | 1,251 | $ | (5,906 | ) A | $ | 42,332 | |||||||
|
Short-term investments
|
42,808 | | 42,808 | |||||||||||||
|
Accounts receivable
|
31,670 | 255 | 31,925 | |||||||||||||
|
Term receivables, current
|
4,107 | | 4,107 | |||||||||||||
|
Allowance for doubtful accounts
|
(1,910 | ) | | (1,910 | ) | |||||||||||
|
|
||||||||||||||||
|
Receivables, net
|
33,867 | 255 | 34,122 | |||||||||||||
|
Deferred commissions
|
5,663 | 139 | (82 | ) B | 5,720 | |||||||||||
|
Prepaid and other current assets
|
2,152 | 40 | 2,192 | |||||||||||||
|
|
||||||||||||||||
|
Total current assets
|
131,477 | 1,685 | (5,988 | ) | 127,174 | |||||||||||
|
Long-term investments
|
4,792 | | 4,792 | |||||||||||||
|
Property and equipment, net
|
9,775 | 194 | 9,969 | |||||||||||||
|
Term receivables, non-current
|
2,159 | | 2,159 | |||||||||||||
|
Intangible assets, net
|
1,380 | | 2,100 | C | 3,480 | |||||||||||
|
Goodwill
|
4,358 | | 3,208 | C | 7,566 | |||||||||||
|
Deferred commissions, non-current
|
2,830 | 77 | (45 | ) B | 2,862 | |||||||||||
|
Other
|
811 | 24 | 835 | |||||||||||||
|
|
||||||||||||||||
|
Total Assets
|
$ | 157,582 | $ | 1,980 | $ | (725 | ) | $ | 158,837 | |||||||
|
|
||||||||||||||||
|
|
||||||||||||||||
|
Liabilities and Stockholders Equity
|
||||||||||||||||
|
Accounts payable
|
$ | 5,952 | $ | 65 | $ | 6,017 | ||||||||||
|
Commissions and bonuses payable
|
4,958 | | 4,958 | |||||||||||||
|
Other accrued liabilities
|
11,895 | | 11,895 | |||||||||||||
|
Current portion of long-term debt
|
45 | 989 | 1,034 | |||||||||||||
|
Current portion of deferred revenue
|
75,972 | 490 | (289 | ) B | 76,173 | |||||||||||
|
|
||||||||||||||||
|
Total current liabilities
|
98,822 | 1,544 | (289 | ) | 100,077 | |||||||||||
|
Long-term debt, less current portion
|
| | | |||||||||||||
|
Deferred revenue, net of current portion
|
28,112 | | 28,112 | |||||||||||||
|
Stockholders equity:
|
||||||||||||||||
|
Preferred Series A Stock
|
| 2,172 | (2,172 | ) A | | |||||||||||
|
Preferred Series B Stock
|
| 5,527 | (5,527 | ) A | | |||||||||||
|
Common Stock
|
34 | 12 | (12 | ) A | 34 | |||||||||||
|
Additional paid-in capital
|
107,282 | 51 | (51 | ) D | 107,282 | |||||||||||
|
Treasury stock
|
(15,007 | ) | | (15,007 | ) | |||||||||||
|
Accumulated other comprehensive income
|
1,260 | | 1,260 | |||||||||||||
|
Accumulated deficit
|
(62,921 | ) | (7,326 | ) | 7,326 | D | (62,921 | ) | ||||||||
|
|
||||||||||||||||
|
Total Stockholders Equity
|
30,648 | 436 | (436 | ) | 30,648 | |||||||||||
|
|
||||||||||||||||
|
Total Liabilities and Stockholders Equity
|
$ | 157,582 | $ | 1,980 | $ | (725 | ) | $ | 158,837 | |||||||
|
|
||||||||||||||||
| RightNow | HiveLive | ||||||||||||||||
| Six Months | Six Months | ||||||||||||||||
| Ended | Ended | ||||||||||||||||
| June 30, | June 30, | Pro Forma | Pro Forma | ||||||||||||||
| 2009 | 2009 | Adjustments | Combined | ||||||||||||||
|
Revenue:
|
|||||||||||||||||
|
Software, hosting and support
|
$ | 53,469 | $ | 553 | B | $ | 54,022 | ||||||||||
|
Professional services
|
18,908 | | 18,908 | ||||||||||||||
|
|
|||||||||||||||||
|
Total revenue
|
72,377 | 553 | 72,930 | ||||||||||||||
|
Cost of revenue:
|
|||||||||||||||||
|
Software, hosting and support
|
9,903 | | 225 | A | 10,128 | ||||||||||||
|
Professional services
|
13,354 | | 13,354 | ||||||||||||||
|
|
|||||||||||||||||
|
Total cost of revenue
|
23,257 | | 225 | 23,482 | |||||||||||||
|
|
|||||||||||||||||
|
Gross Profit
|
$ | 49,120 | $ | 553 | (225 | ) | $ | 49,448 | |||||||||
|
Operating Expenses:
|
|||||||||||||||||
|
Sales and marketing
|
30,871 | 1,300 | 32,171 | ||||||||||||||
|
Direct costs and expenses
|
| 73 | 73 | ||||||||||||||
|
Research and development
|
9,807 | 524 | 10,331 | ||||||||||||||
|
General and administrative
|
7,653 | 648 | 8,301 | ||||||||||||||
|
Amortization of intangible assets
|
| | 50 | A | 50 | ||||||||||||
|
|
|||||||||||||||||
|
Total operating expenses
|
48,331 | 2,545 | 50 | 50,926 | |||||||||||||
|
|
|||||||||||||||||
|
Income (loss) from operations
|
789 | (1,992 | ) | (275 | ) | (1,478 | ) | ||||||||||
|
Interest and other income, net
|
752 | (7 | ) | 745 | |||||||||||||
|
|
|||||||||||||||||
|
Income (loss) before income taxes
|
1,541 | (1,999 | ) | (275 | ) | (733 | ) | ||||||||||
|
(Provision) benefit for income taxes
|
(242 | ) | | (242 | ) | ||||||||||||
|
|
|||||||||||||||||
|
Net income (loss)
|
$ | 1,299 | $ | (1,999 | ) | $ | (275 | ) | $ | (975 | ) | ||||||
|
|
|||||||||||||||||
|
Net income (loss) per share
|
|||||||||||||||||
|
Basic
|
$ | 0.04 | $ | (0.03 | ) | ||||||||||||
|
Diluted
|
$ | 0.04 | $ | (0.03 | ) | ||||||||||||
|
Shares used in the computation:
|
|||||||||||||||||
|
Basic
|
31,730 | 31,730 | |||||||||||||||
|
Diluted
|
32,207 | 31,730 | |||||||||||||||
| RightNow | HiveLive | |||||||||||||||
| Year Ended | Year Ended | |||||||||||||||
| December | December | Pro Forma | Pro Forma | |||||||||||||
| 31, 2008 | 31, 2008 | Adjustments | Combined | |||||||||||||
|
Revenue:
|
||||||||||||||||
|
Software, hosting and support
|
$ | 102,576 | $ | 364 | B | $ | 102,940 | |||||||||
|
Professional services
|
37,859 | | 37,859 | |||||||||||||
|
|
||||||||||||||||
|
Total revenue
|
140,435 | 364 | 140,799 | |||||||||||||
|
Cost of revenue:
|
||||||||||||||||
|
Software, hosting and support
|
20,397 | | 450 | A | 20,847 | |||||||||||
|
Professional services
|
30,440 | | 30,440 | |||||||||||||
|
|
||||||||||||||||
|
Total cost of revenue
|
50,837 | | 450 | 51,287 | ||||||||||||
|
|
||||||||||||||||
|
Gross Profit
|
$ | 89,598 | $ | 364 | (450 | ) | $ | 89,512 | ||||||||
|
Operating Expenses:
|
||||||||||||||||
|
Sales and marketing
|
67,628 | 2,184 | 69,812 | |||||||||||||
|
Direct costs and expenses
|
| 93 | 93 | |||||||||||||
|
Research and development
|
18,292 | 870 | 19,162 | |||||||||||||
|
General and administrative
|
13,615 | 924 | 14,539 | |||||||||||||
|
Amortization of intangible assets
|
| | 100 | A | 100 | |||||||||||
|
|
||||||||||||||||
|
Total operating expenses
|
99,535 | 4,071 | 100 | 103,706 | ||||||||||||
|
|
||||||||||||||||
|
Income (loss) from operations
|
(9,937 | ) | (3,707 | ) | (550 | ) | (14,194 | ) | ||||||||
|
Interest and other income, net
|
2,696 | 31 | 2,727 | |||||||||||||
|
|
||||||||||||||||
|
Income (loss) before income taxes
|
(7,241 | ) | (3,676 | ) | (550 | ) | (11,467 | ) | ||||||||
|
(Provision) benefit for income taxes
|
(42 | ) | | (42 | ) | |||||||||||
|
|
||||||||||||||||
|
Net income (loss)
|
$ | (7,283 | ) | $ | (3,676 | ) | $ | (550 | ) | $ | (11,509 | ) | ||||
|
|
||||||||||||||||
|
Net income (loss) per share
|
||||||||||||||||
|
Basic and diluted
|
$ | (0.22 | ) | $ | (0.34 | ) | ||||||||||
|
Shares used in the computation:
|
||||||||||||||||
|
Basic and diluted
|
33,362 | 33,362 | ||||||||||||||
|
Purchase price:
|
||||||||
|
Cash consideration
|
$ | 5,906 | ||||||
|
|
||||||||
|
Total consideration
|
5,906 | |||||||
|
|
||||||||
|
Allocated to:
|
||||||||
|
Fair value of net assets acquired
|
189 | |||||||
|
|
||||||||
|
Allocated to:
|
||||||||
|
Identifiable intangibles assets:
|
||||||||
|
Developed technology
|
1,800 | |||||||
|
Customer relationships
|
200 | |||||||
|
Trade name and Trademarks
|
100 | 2,100 | ||||||
|
|
||||||||
|
Excess purchase price allocated to goodwill
|
$ | 3,617 | ||||||
| (A) | Adjustment to record the purchase of all of the outstanding stock of HiveLive. | ||
| (B) | Adjustment to record the fair value of deferred commissions and deferred revenue of HiveLive. The fair value of deferred revenue represents an amount equivalent to the estimated cost to fulfill the service obligation assumed plus an appropriate profit margin. | ||
| (C) | Adjustment to record the goodwill and estimated fair value of identifiable intangible assets acquired. Identifiable intangible assets consist of developed technology, customer relationships, and trade name and trademarks, which will be amortizable over their useful lives of four, four, and two years, respectively. The fair value and useful life estimates of these assets is preliminary and subject to change. |
| (D) | Adjustment to record the elimination of HiveLives equity. |
| (A) | Adjustment to record the amortization expense related to the identifiable assets acquired. Identifiable intangible assets consist of developed technology, customer relationships, and trade name and trademarks, which will be amortizable over their useful lives of four, four, and two years, respectively. The fair value and useful life estimates of these assets is preliminary and subject to change. |
| (B) | There are no adjustments to revenue recognized as the Company had no significant amounts of deferred revenue as of January 1, 2008. |