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Contact:
Bruce
Widener, CEO
502-657-3507
investors@askbeacon.com
Porter,
LeVay & Rose, Inc.
Marlon
Nurse, V.P. – Investor Relations
212-564-4700
Geralyn
DeBusk, President or Hala Elsherbini, COO
Halliburton
Investor Relations
972-458-8000
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·
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Net
sales from continuing operations increased 39% to $14.0 million compared
with $10.1 million in fiscal 2009;
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·
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Net
sales from discontinued operations totaled an additional $17 million in
fiscal 2010 and an additional $1 million in fiscal
2009;
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·
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Gross
profit for fiscal 2010 was $5.9 million, more than double the $2.8 million
reported last year;
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North
American gross profit margin was 37% compared with 28% in the fiscal
2009;
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·
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Blended
North American and European gross profit margins were
42%;
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Adjusted
EBITDA for the year was negative $2.1 million compared to negative $3.4
million in 2009; and
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·
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Loss
from continuing operations for the year was $10.4 million, which included
a $4.4 million non-cash charge, compared with a loss from continuing
operations of $6.8 million in fiscal
2009.
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September 30,
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September 30,
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|||||||
2010
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2009
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|||||||
ASSETS
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||||||||
Current
assets:
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||||||||
Cash
and cash equivalents
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$ | 246 | $ | 227 | ||||
Accounts
receivable, net
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4,535 | 3,069 | ||||||
Inventory,
net
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557 | 605 | ||||||
Prepaid
expenses and other current assets
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357 | 388 | ||||||
Current
assets of discontinued operations
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133 | 958 | ||||||
Total
current assets
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5,828 | 5,247 | ||||||
Property
and equipment, net
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420 | 336 | ||||||
Goodwill
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2,792 | 2,792 | ||||||
Other
intangible assets, net
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3,011 | 3,342 | ||||||
Other
assets
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20 | 117 | ||||||
Assets
of discontinued operations
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- | 980 | ||||||
Total
assets
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$ | 12,071 | $ | 12,814 | ||||
LIABILITIES
AND STOCKHOLDERS' EQUITY (DEFICIENCY)
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Current
liabilities:
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||||||||
Short
term credit obligations
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$ | - | $ | 550 | ||||
Convertible
notes payable
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- | 298 | ||||||
Bridge
notes (net of $0 and $33 discounts)
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100 | 167 | ||||||
Current
portion of long-term debt
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379 | 475 | ||||||
Accounts
payable
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2,971 | 2,074 | ||||||
Accrued
expenses
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880 | 2,626 | ||||||
Current
liabilities of discontinued operations
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8,558 | 525 | ||||||
Total
current liabilities
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12,888 | 6,715 | ||||||
Non-current
Line of Credit - related party
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630 | - | ||||||
Long-term
debt, less current portion
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403 | 802 | ||||||
Deferred
tax liability
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153 | 103 | ||||||
Total
liabilities
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14,074 | 7,620 | ||||||
Stockholders'
equity (deficiency)
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||||||||
Preferred
Stock: $0.01 par value, 5,000,000 shares authorized, 1,041 and 3,436
shares outstanding in the following classes:
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Series
A convertible preferred stock, $1,000 stated value, 4,500 shares
authorized, 30 and 1,984 shares issued and outstanding at June 30, 2010
and September 30, 2009, respectively, (liquidation preference
$93)
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30 | 1,984 | ||||||
Series
A-1 convertible preferred stock, $1,000 stated value, 1,000 shares
authorized, 311 and 752 shares issued and outstanding, at September 30,
2010 and 2009, respectively (liquidation preference $432)
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311 | 752 | ||||||
Series
B convertible preferred stock, $1,000 stated value, 4,000 shares
authorized, 700 shares issued and outstanding atSeptember 30, 2010 and
2009, respectively (liquidation preference $967)
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700 | 700 | ||||||
Common
stock, $0.001 par value 70,000,000 shares authorized, 37,376,396 and
24,655,990 shares issued and outstanding at September 30, 2010 and 2009,
respectively.
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37 | 25 | ||||||
Additional
paid in capital
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37,137 | 17,977 | ||||||
Accumulated
deficit
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(39,711 | ) | (16,254 | ) | ||||
Accumulated
other comprehensive (loss) income
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(507 | ) | 10 | |||||
Total
stockholders' equity (deficiency)
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(2,003 | ) | 5,194 | |||||
Total
liabilities and stockholders' equity (deficiency)
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$ | 12,071 | $ | 12,814 |
For the Three
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For the Three
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For the
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For the
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|||||||||||||
months ended
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months ended
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year to date
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year to date
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September 30,
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September 30,
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September 30,
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September 30,
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|||||||||||||
2010
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2009
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2010
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2009
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Net
sales
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$ | 4,309 | $ | 2,995 | $ | 13,996 | $ | 10,113 | ||||||||
Cost
of goods sold
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306 | 1,501 | 1,558 | 4,393 | ||||||||||||
Cost
of services
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2,798 | 971 | 6,522 | 2,905 | ||||||||||||
Gross
profit
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1,204 | 523 | 5,916 | 2,815 | ||||||||||||
Operating
expense
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||||||||||||||||
Salaries
and benefits
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1,472 | 1,265 | 6,036 | 4,373 | ||||||||||||
Selling,
general and administrative
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1,657 | 1,668 | 5,559 | 4,242 | ||||||||||||
Total
operating expense
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3,129 | 2,933 | 11,595 | 8,615 | ||||||||||||
Loss
from operations
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(1,925 | ) | (2,410 | ) | (5,679 | ) | (5,800 | ) | ||||||||
Other
(expenses) income
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Other
expense
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154 | (243 | ) | (259 | ) | (904 | ) | |||||||||
Change
in fair value of warrants
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- | - | (4,373 | ) | - | |||||||||||
Total
other expenses
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154 | (243 | ) | (4,632 | ) | (904 | ) | |||||||||
Net
(loss) before income taxes
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(1,771 | ) | (2,653 | ) | (10,311 | ) | (6,703 | ) | ||||||||
Income
tax benefit
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(106 | ) | (58 | ) | (63 | ) | (58 | ) | ||||||||
(Loss)
from continuing operations
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(1,877 | ) | (2,711 | ) | (10,374 | ) | (6,762 | ) | ||||||||
(Loss
from discontinued operations
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(1,002 | ) | 492 | (8,181 | ) | 492 | ||||||||||
Net
(loss)
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(2,878 | ) | (2,219 | ) | (18,555 | ) | (6,270 | ) | ||||||||
Series
A, A-1 and B Preferred Stock:
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Contractual
dividends
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(19 | ) | (136 | ) | (175 | ) | (548 | ) | ||||||||
Deemed
dividends related to beneficial conversion feature
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(6 | ) | (79 | ) | (99 | ) | (266 | ) | ||||||||
Net
(loss) available to common stockholders
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$ | (2,904 | ) | $ | (2,434 | ) | $ | (18,829 | ) | $ | (7,084 | ) | ||||
Net
loss per share to common stockholders - basic and diluted
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Net
loss per share from continuing operations
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(0.06 | ) | (0.14 | ) | (0.32 | ) | (0.41 | ) | ||||||||
Net
loss per share from discontinued operations
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(0.03 | ) | 0.02 | (0.25 | ) | 0.03 | ||||||||||
$ | (0.09 | ) | $ | (0.12 | ) | $ | (0.57 | ) | $ | (0.38 | ) | |||||
Weighted
average shares outstanding basic and diluted
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30,258,763 | 20,062,364 | 32,254,769 | 16,482,449 | ||||||||||||
Other
Comprehensive income, net of tax
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Net
Loss
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$ | (2,904 | ) | $ | (2,435 | ) | $ | (18,829 | ) | $ | (7,084 | ) | ||||
Foreign
currency translations adjustment
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20 | - | (28 | ) | - | |||||||||||
Comprehensive
loss
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$ | (2,884 | ) | $ | (2,435 | ) | $ | (18,857 | ) | $ | (7,084 | ) | ||||
Adjusted EBITDA
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Loss
from operations
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(1,925 | ) | (2,410 | ) | (5,679 | ) | (5,800 | ) | ||||||||
Investor
relations adjustments
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142 | 610 | 589 | 1,062 | ||||||||||||
Non-recurring
costs
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113 | - | 1,014 | - | ||||||||||||
Share
based payments
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250 | 267 | 1,381 | 722 | ||||||||||||
Depreciation
and Amortization
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62 | 158 | 589 | 613 | ||||||||||||
Adjusted
EBITDA
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(1,357 | ) | (1,375 | ) | (2,106 | ) | (3,403 | ) |