þ
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
|
SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended June 30, 2010
|
OR
|
o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
|
SECURITIES EXCHANGE ACT OF 1934
|
For the transition period from ________________ to ________________
|
Nevada
|
86-0879433
|
|
(State or other jurisdiction of
|
(I.R.S. Employer
|
|
incorporation or organization)
|
Identification No.)
|
324 Datura Street, Ste. 114
West Palm Beach, FL
|
33401
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Large accelerated filer | o | Accelerated filer | o |
Non-accelerated filer
(Do not check if a smaller reporting company)
|
o | Smaller reporting company | þ |
Class
|
Outstanding at August 6, 2010
|
|
Common Stock, $0.001 par value per share
|
13,125,211 shares
|
For the Three Months Ended
|
For the Six Months Ended
|
|||||||||||||||
June 30,
2010
|
2009
|
June 30,
2010
|
2009
|
|||||||||||||
REVENUES
|
$ | 1,156,116 | $ | 76,032 | $ | 1,478,086 | $ | 145,191 | ||||||||
OPERATING COSTS AND EXPENSES:
|
||||||||||||||||
Sales and marketing
|
207,198 | 124,098 | 380,894 | 243,337 | ||||||||||||
Product development and content
|
850,353 | 697,743 | 1,613,852 | 1,456,466 | ||||||||||||
General and administrative
|
1,743,147 | 1,485,178 | 3,538,518 | 2,965,704 | ||||||||||||
Depreciation and amortization
|
85,183 | 132,263 | 192,843 | 263,503 | ||||||||||||
TOTAL OPERATING COSTS AND EXPENSES
|
2,885,881 | 2,439,282 | 5,726,107 | 4,929,010 | ||||||||||||
LOSS FROM OPERATIONS
|
(1,729,765 | ) | (2,363,250 | ) | (4,248,021 | ) | (4,783,819 | ) | ||||||||
OTHER INCOME (EXPENSE):
|
||||||||||||||||
Interest income
|
57 | 14,689 | 402 | 25,923 | ||||||||||||
Interest expense
|
(150,700 | ) | (150,702 | ) | (300,604 | ) | (300,606 | ) | ||||||||
Other income
|
534 | 5,860 | 1,059 | 11,299 | ||||||||||||
TOTAL OTHER INCOME (EXPENSE)
|
(150,109 | ) | (130,153 | ) | (299,143 | ) | (263,384 | ) | ||||||||
LOSS BEFORE INCOME TAXES
|
(1,879,874 | ) | (2,493,403 | ) | (4,547,164 | ) | (5,047,203 | ) | ||||||||
Income taxes
|
- | - | - | - | ||||||||||||
NET LOSS
|
$ | (1,879,874 | ) | $ | (2,493,403 | ) | $ | (4,547,164 | ) | $ | (5,047,203 | ) | ||||
Preferred stock dividends
|
(27,875 | ) | (27,875 | ) | (55,750 | ) | (55,750 | ) | ||||||||
NET LOSS ALLOCABLE TO COMMON SHAREHOLDERS
|
$ | (1,907,749 | ) | $ | (2,521,278 | ) | $ | (4,602,914 | ) | $ | (5,102,953 | ) | ||||
NET LOSS PER COMMON SHARE ALLOCABLE TO
|
||||||||||||||||
COMMON SHAREHOLDERS
|
||||||||||||||||
BASIC AND DILUTED
|
$ | (0.15 | ) | $ | (0.20 | ) | $ | (0.36 | ) | $ | (0.40 | ) | ||||
WEIGHTED AVERAGE NUMBER OF SHARES
|
||||||||||||||||
OUTSTANDING:
|
||||||||||||||||
BASIC AND DILUTED
|
12,963,227 | 12,722,336 | 12,881,396 | 12,718,912 | ||||||||||||
NET LOSS
|
$ | (1,879,874 | ) | $ | (2,493,403 | ) | $ | (4,547,164 | ) | $ | (5,047,203 | ) | ||||
Foreign currency translation adjustment
|
825 | (5,334 | ) | 411 | (6,590 | ) | ||||||||||
COMPREHENSIVE LOSS
|
$ | (1,879,049 | ) | $ | (2,498,737 | ) | $ | (4,546,753 | ) | $ | (5,053,793 | ) |
Accumulated
|
Total | |||||||||||||||||||||||||||||||
Additional
|
Other
|
Stockholders'
|
||||||||||||||||||||||||||||||
Preferred Stock
|
Common Stock
|
Paid-in
|
Accumulated
|
Comprehensive
|
Equity
|
|||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Deficit
|
Income (Loss)
|
(Deficit)
|
|||||||||||||||||||||||||
Balance—December 31,
2009
|
25,000 | $ | 25 | 12,743,111 | $ | 12,743 | $ | 155,425,366 | $ | (159,334,739 | ) | $ | (6,055 | ) | $ | (3,902,660 | ) | |||||||||||||||
Vesting of stock options
|
||||||||||||||||||||||||||||||||
for compensation
|
2,949,956 | 2,949,956 | ||||||||||||||||||||||||||||||
Re-pricing of warrants
|
147,813 | 147,813 | ||||||||||||||||||||||||||||||
Exercise of stock options
|
223,000 | 223 | 282,777 | 283,000 | ||||||||||||||||||||||||||||
Issuance of common stock
|
||||||||||||||||||||||||||||||||
for professional services
|
6,600 | 7 | 26,327 | 26,334 | ||||||||||||||||||||||||||||
Preferred stock dividends
|
(55,750 | ) | (55,750 | ) | ||||||||||||||||||||||||||||
Foreign currency
|
||||||||||||||||||||||||||||||||
translation adjustment
|
411 | 411 | ||||||||||||||||||||||||||||||
Net loss
|
(4,547,164 | ) | (4,547,164 | ) | ||||||||||||||||||||||||||||
Balance—June 30,
2010
|
25,000 | $ | 25 | 12,972,711 | $ | 12,973 | $ | 158,832,239 | $ | (163,937,653 | ) | $ | (5,644 | ) | $ | (5,098,060 | ) |
For the Six Months Ended
June 30,
|
||||||||
2010
|
2009
|
|||||||
Cash flows from operating activities:
|
||||||||
Net loss
|
$ | (4,547,164 | ) | $ | (5,047,203 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
Depreciation and amortization
|
192,843 | 263,503 | ||||||
Repricing of warrants
|
147,813 | - | ||||||
Vesting of stock options for compensation
|
2,949,956 | 2,388,250 | ||||||
Issuance of common stock to directors for compensation
|
- | 11,497 | ||||||
Issuance/ (cancellation) of common stock and stock options for professional services
|
26,334 | (20,471 | ) | |||||
Grant income
|
(828 | ) | (10,600 | ) | ||||
Bad debt expense
|
(18,669 | ) | 18,081 | |||||
Non-cash interest related to notes receivable
|
- | (16,837 | ) | |||||
Non-cash interest related to notes payable
|
156,100 | 156,100 | ||||||
Amortization of discounts on notes payable and debt issuance costs
|
144,504 | 144,506 | ||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(50,346 | ) | (56,205 | ) | ||||
Other current assets and other assets
|
90,314 | 294,481 | ||||||
Accounts payable and accrued expenses
|
(43,289 | ) | (83,679 | ) | ||||
Deferred revenue
|
297,679 | - | ||||||
Net cash used in operating activities
|
(654,753 | ) | (1,958,577 | ) | ||||
Cash flows from investing activities:
|
||||||||
Purchase of property and equipment
|
(140,011 | ) | (17,903 | ) | ||||
Net cash used in investing activities
|
(140,011 | ) | (17,903 | ) | ||||
Cash flows from financing activities:
|
||||||||
Proceeds from exercise of stock options and warrants
|
283,000 | - | ||||||
Net cash provided by financing activities
|
283,000 | - | ||||||
Effect of foreign currency exchange rate on cash
|
411 | (6,590 | ) | |||||
Net decrease in cash and cash equivalents
|
(511,353 | ) | (1,983,070 | ) | ||||
Cash and cash equivalents at beginning of period
|
1,028,267 | 4,932,629 | ||||||
Cash and cash equivalents at end of period
|
$ | 516,914 | $ | 2,949,559 | ||||
Supplemental Disclosure of Cash Flow Information:
|
||||||||
Cash paid for interest
|
$ | - | $ | - | ||||
Cash paid for income taxes
|
$ | - | $ | - | ||||
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
|
||||||||
Reduction in exercise prices of outstanding warrants recorded as additional paid-in capital
|
$ | - | $ | 1,605,382 | ||||
Preferred stock dividends accrued and charged to accumulated deficit
|
$ | 55,750 | $ | 55,750 | ||||
June 30,
|
||||||||
|
2010
|
2009
|
||||||
Stock options
|
7,326,780 | 6,440,187 | ||||||
Warrants
|
4,200,000 | 4,432,500 | ||||||
Totals
|
11,526,780 | 10,872,687 |
June 30,
2010
|
December 31,
2009 |
|||||||
Computer equipment
|
$ | 1,931,181 | $ | 1,796,197 | ||||
Vehicles
|
17,614 | 17,340 | ||||||
Office furniture and equipment
|
130,944 | 123,256 | ||||||
Other equipment
|
9,209 | 9,065 | ||||||
2,088,948 | 1,945,858 | |||||||
Less accumulated depreciation
|
(1,719,232 | ) | (1,523,310 | ) | ||||
Property and equipment—net
|
$ | 369,716 | $ | 422,548 | ||||
MATT
|
RSI
|
Total
|
||||||||||
Notes Payable, face amount
|
$ | 5,000,000 | $ | 2,000,000 | $ | 7,000,000 | ||||||
Discounts on Notes:
|
||||||||||||
Revaluation of Warrants
|
(1,341,692 | ) | (263,690 | ) | (1,605,382 | ) | ||||||
Termination of Jet Rights
|
(878,942 | ) | - | (878,942 | ) | |||||||
Accumulated Amortization
|
618,041 | 78,540 | 696,581 | |||||||||
Total Discounts
|
(1,602,593 | ) | (185,150 | ) | (1,787,743 | ) | ||||||
Accrued Interest
|
542,633 | 217,054 | 759,687 | |||||||||
Notes Payable, net
|
$ | 3,940,040 | $ | 2,031,904 | $ | 5,971,944 |
Remainder of 2010
|
$ | 54,474 | ||
2011
|
94,971 | |||
2012
|
67,734 | |||
$ | 217,179 |
Weighted
|
|||||||||||
Average
|
|||||||||||
Number of
|
Weighted-
|
Remaining
|
Aggregate | ||||||||
Stock
|
Average
|
Contractual
|
Intrinsic | ||||||||
Options
|
Options
|
Exercise Price
|
Life
|
Value | |||||||
Outstanding at December 31, 2009 (1)
|
105,000 | $ | 1.48 | ||||||||
Granted
|
- | $ | - | ||||||||
Exercised
|
(100,000 | ) | $ | 1.50 | |||||||
Forfeited or expired
|
- | $ | - | ||||||||
Outstanding at June 30, 2010
|
5,000 | $ | 1.00 |
5.9
|
$ |
14,300
|
|||||
Exercisable at June 30, 2010
|
5,000 | $ | 1.00 |
5.9
|
$ |
14,300
|
(1)
|
Includes 100,000 outstanding and exercisable options to purchase common stock at a weighted average exercise price of $1.50 per share being held by consultants.
|
Weighted
|
||||||||||||
Average
|
||||||||||||
|
Number of
|
Weighted-
|
Remaining
|
Aggregate | ||||||||
|
Stock
|
Average
|
Contractual
|
Intrinsic | ||||||||
Options
|
Options
|
Exercise Price
|
Life
|
Value | ||||||||
Outstanding at December 31, 2009 (1) (2)
|
6,765,187 | $ | 1.18 | |||||||||
Granted (3)
|
274,597 | $ | 3.15 | |||||||||
Exercised (4)
|
(113,000 | ) | $ | 1.00 | ||||||||
Forfeited or expired (5)
|
(48,042 | ) | $ | 3.43 | ||||||||
Outstanding at June 30, 2010 (6)
|
6,878,742 | $ | 1.25 |
7.8
|
$ |
18,052,835
|
||||||
Exercisable at June 30, 2010 (7)
|
5,215,822 | $ | 1.20 |
7.6
|
$ |
13,976,917
|
(1)
|
Includes 516,000 outstanding options to purchase common stock at a weighted average exercise price of $2.03 per share being held by consultants.
|
(2)
|
Includes 1,649,000 performance-based options, of which 1,007,040 have been expensed.
|
(3)
|
Includes 20,097 outstanding options to purchase common stock at a weighted average exercise price of $3.15 per share being held by consultants.
|
(4)
|
Includes 35,000 options to purchase common stock at a weighted average exercise price of $1.00 per share being held by consultants.
|
(5)
|
Includes 29,167 options to purchase common stock at a weighted average exercise price of $2.49 per share being held by consultants.
|
(6)
|
Includes 471,930 outstanding options to purchase common stock at a weighted average exercise price of $2.17 per share being held by consultants.
|
(7)
|
Includes 381,930 exercisable options to purchase common stock at a weighted average exercise price of $2.31 per share being held by consultants.
|
For the Six Months Ended
|
||||||||
|
June 30,
|
|||||||
|
2010
|
2009
|
||||||
Risk-free interest rate:
|
2.61 | % | 1.81 | % | ||||
Expected term:
|
5.7 Years
|
5.7 Years
|
||||||
Expected dividend yield:
|
- | - | ||||||
Expected volatility:
|
92 | % | 128 | % |
Weighted
|
||||||||||||
Average
|
||||||||||||
|
Number of
|
Weighted-
|
Remaining
|
Aggregate | ||||||||
|
Stock
|
Average
|
Contractual
|
Intrinsic | ||||||||
Options
|
Options
|
Exercise Price
|
Life
|
Value | ||||||||
Outstanding at December 31, 2009 (1)
|
463,038 | $ | 1.39 | |||||||||
Granted
|
- | $ | - | |||||||||
Exercised (2)
|
(10,000 | ) | $ | 2.00 | ||||||||
Forfeited or expired (3)
|
(10,000 | ) | $ | 3.00 | ||||||||
Outstanding at June 30, 2010
|
443,038 | $ | 1.34 |
0.6
|
$ |
1,116,456
|
||||||
Exercisable at June 30, 2010
|
295,359 | $ | 1.34 |
0.5
|
$ |
744,304
|
|
(1)
|
Includes 20,000 outstanding options to purchase common stock at a weighted average exercise price of $2.50 per share being held by consultants.
|
|
(2)
|
Includes 10,000 options to purchase common stock at a weighted average exercise price of $2.00 per share being held by consultants.
|
|
(3)
|
Includes 10,000 options to purchase common stock at a weighted average exercise price of $3.00 per share being held by consultants.
|
|
|
Weighted-Average
|
||||||
|
Shares
|
Share Price
|
||||||
Unvested at January 1, 2010
|
- | $ | - | |||||
Granted
|
6,600 | $ | 3.99 | |||||
Vested during period
|
(6,600 | ) | $ | 3.99 | ||||
Cancelled during period
|
- | $ | - | |||||
Unvested at June 30, 2010
|
- | $ | - |
Risk-free interest rate:
|
4.68
|
%
|
||
Expected term:
|
5 years
|
|||
Expected dividend yield:
|
0.00
|
%
|
||
Expected volatility:
|
163.73
|
%
|
Risk-free interest rate:
|
2.81 | % | ||
Expected term:
|
4.08 years
|
|||
Expected dividend yield:
|
— | |||
Expected volatility:
|
105.68 | % |
Risk-free interest rate:
|
3.24 | % | ||
Expected term:
|
6.08 years
|
|||
Expected dividend yield:
|
— | |||
Expected volatility:
|
105.68 | % |
Risk-free interest rate:
|
2.81 | % | ||
Expected term:
|
4.36 years
|
|||
Expected dividend yield:
|
— | |||
Expected volatility:
|
103.55 | % |
Outstanding at December 31, 2009
|
4,200,000 | |||
Issued
|
— | |||
Exercised
|
— | |||
Expired
|
— | |||
Outstanding at June 30, 2010
|
4,200,000 |
|
●
|
$572,321 of DSM revenue for the first six months of 2010; and
|
|
●
|
$227,679 of Deferred Revenue as of June 30, 2010 for future services rendered which under GAAP is treated as liability.
|
|
●
|
$434,167 of DSM revenue and $337,500 of Website Development revenue for the first six months of 2010; and
|
|
●
|
$70,000 of Deferred Revenue as of June 30, 2010 for future services rendered (GAAP liability).
|
|
●
|
Quepasa DSM – Launched in December 2009, this is a new tool that allows advertisers and brands to deliver their brand message through a viral contest engine that is shared and spread by the users across the most popular social media sites. We believe this is a highly effective ad product that allows brands to market their products to the broader Latino demographic, without requiring the advertiser to have to decide how to allocate its budget amongst numerous websites. With Quepasa DSM, brands can target Latinos across all social media properties, leveraging the user’s use of viral widgets and sharing tools to spread the brand message. In the first half of 2010, we signed contracts totaling $5.2 million and generated $1,006,488 in DSM revenue.
|
|
●
|
Website Development - In the first half of 2010, we signed contracts totaling $1.3 million in website development revenue.
|
|
●
|
We partnered with Moblyng & Viximo to offer a portfolio of social games to the website.
|
|
●
|
A new community was launched devoted to the Ultimate Fighting Championship (“UFC”). The community features a UFC themed contest.
|
|
●
|
We received from AHMSA, which owns MATT Inc., a $3.5 million contract to develop a website and a series of environmental campaigns using our DSM Technology and a $3.0 million contract to develop a website and a legislative campaign using our DSM Technology. These contracts are the ones described in DSM and website development revenue above.
|
|
●
|
We partnered with and launched the Zoosk online dating service for Latin America.
|
|
●
|
Product Development and Content Expenses:
Product development and content expenses consist of personnel costs associated with the development, testing and upgrading of our website and systems, content fees, and purchases of specific technology, particularly software and hardware related to our infrastructure upgrade.
|
|
●
|
Sales and Marketing Expenses:
Sales and marketing expenses consist primarily of salaries and expenses of marketing and sales personnel, and other marketing-related expenses including our mass media-based branding and advertising.
|
|
●
|
General and Administrative Expenses:
General and administrative expenses consist primarily of costs related to corporate personnel, occupancy costs, general operating costs and corporate professional fees, such as legal and accounting fees.
|
|
●
|
Depreciation and Amortization Expenses:
Our depreciation and amortization are non-cash expenses which have consisted primarily of depreciation related to our property and equipment.
|
|
●
|
Other Income (Expense):
Other income (expense) consists primarily of interest earned, interest expense and earned grant income. We have invested our cash in AAA rated, fully liquid instruments. Interest expense relates to our Note Purchase Agreements. Earned grant income represents the amortized portion of a cash grant received in 2006 from the Mexican government for approved capital expenditures. The grant is being recognized on a straight-line basis over the useful lives of the purchased assets.
|
For the the three months ended June 30,
|
||||||||||||||||
2010
|
2009
|
Change ($)
|
Change (%)
|
|||||||||||||
REVENUES
|
$ | 1,156,116 | $ | 76,032 | $ | 1,080,084 | 1421 | % | ||||||||
OPERATING EXPENSES
|
||||||||||||||||
Sales and marketing
|
207,198 | 124,098 | 83,100 | 67 | % | |||||||||||
Product development and content
|
850,353 | 697,743 | 152,610 | 22 | % | |||||||||||
General and administrative
|
1,743,147 | 1,485,178 | 257,969 | 17 | % | |||||||||||
Depreciation and amortization
|
85,183 | 132,263 | (47,080 | ) | -36 | % | ||||||||||
Operating Expenses
|
2,885,881 | 2,439,282 | 446,599 | 18 | % | |||||||||||
LOSS FROM OPERATIONS
|
(1,729,765 | ) | (2,363,250 | ) | 633,485 | -27 | % | |||||||||
OTHER INCOME (EXPENSE):
|
||||||||||||||||
Interest income
|
57 | 14,689 | (14,632 | ) | -100 | % | ||||||||||
Interest expense
|
(150,700 | ) | (150,702 | ) | 2 | -100 | % | |||||||||
Other income
|
534 | 5,860 | (5,326 | ) | -91 | % | ||||||||||
TOTAL OTHER INCOME (EXPENSE)
|
(150,109 | ) | (130,153 | ) | (19,956 | ) | 15 | % | ||||||||
NET LOSS
|
$ | (1,879,874 | ) | $ | (2,493,403 | ) | $ | 613,529 | -25 | % |
For the three months ended June 30,
|
||||||||
2010
|
2009
|
|||||||
Sales and marketing
|
81,497 | 24,742 | ||||||
Product and content development
|
194,850 | 194,253 | ||||||
General and administrative
|
1,239,975 | 1,009,690 | ||||||
Total Stock Based Compensation
|
1,516,322 | 1,228,685 |
For the three months ended
June 30,
|
||||||||
2,010 | 2009 | |||||||
Vesting of stock options
|
$ | 1,516,322 | $ | 1,171,692 | ||||
Issuance of common stock to directors for compensation
|
- | 11,495 | ||||||
Amortization of prepaid expenses
|
- | 45,498 | ||||||
Total Stock Based Compensation
|
$ | 1,516,322 | $ | 1,228,685 |
For the the six months ended June 30,
|
||||||||||||||||
2010
|
2009
|
Change ($)
|
Change (%)
|
|||||||||||||
REVENUES
|
$ | 1,478,086 | $ | 145,191 | $ | 1,332,895 | 918 | % | ||||||||
Sales and marketing
|
380,894 | 243,337 | 137,557 | 57 | % | |||||||||||
Product development and content
|
1,613,852 | 1,456,466 | 157,386 | 11 | % | |||||||||||
General and administrative
|
3,538,518 | 2,965,704 | 572,814 | 19 | % | |||||||||||
Depreciation and amortization
|
192,843 | 263,503 | (70,660 | ) | -27 | % | ||||||||||
Operating Expenses
|
5,726,107 | 4,929,010 | 797,097 | 16 | % | |||||||||||
LOSS FROM OPERATIONS
|
(4,248,021 | ) | (4,783,819 | ) | 535,798 | -11 | % | |||||||||
OTHER INCOME (EXPENSE):
|
||||||||||||||||
Interest income
|
402 | 25,923 | (25,521 | ) | -98 | % | ||||||||||
Interest expense
|
(300,604 | ) | (300,606 | ) | 2 | -100 | % | |||||||||
Other income
|
1,059 | 11,299 | (10,240 | ) | -91 | % | ||||||||||
TOTAL OTHER INCOME (EXPENSE)
|
(299,143 | ) | (263,384 | ) | (35,759 | ) | 14 | % | ||||||||
NET LOSS
|
$ | (4,547,164 | ) | $ | (5,047,203 | ) | $ | 500,039 | -10 | % |
For the six months ended
June 30, |
||||||||
2010
|
2009
|
|||||||
Sales and marketing
|
152,357 | 64,340 | ||||||
Product and content development
|
379,578 | 418,688 | ||||||
General and administrative
|
2,592,167 | 2,055,826 | ||||||
Total Stock Based Compensation
|
3,124,102 | 2,538,854 |
For the six months ended
June 30, |
||||||||
2,010 | 2009 | |||||||
Vesting of stock options
|
$ | 2,949,955 | $ | 2,388,250 | ||||
Re-pricing of warrants
|
147,813 | - | ||||||
Issuance (cancellation) of common stock for professional services
|
26,334 | (20,471 | ) | |||||
Issuance of common stock to directors for compensation
|
- | 11,495 | ||||||
Amortization of prepaid expenses
|
- | 159,580 | ||||||
Total Stock Based Compensation
|
$ | 3,124,102 | $ | 2,538,854 |
|
For the Six Months Ended
June 30, |
|||||||
|
2010
|
2009
|
||||||
Net cash used in operating activities
|
$ | (654,753 | ) | $ | (1,958,577 | ) | ||
Net cash used in investing activities
|
$ | (140,011 | ) | $ | (17,093 | ) | ||
Net cash provided by financing activities
|
$ | 283,000 | $ | - |
June 30,
|
December 31,
|
|||||||
|
2010
|
2009
|
||||||
Cash and cash equivalents
|
$ | 516,914 | $ | 1,028,267 | ||||
Total assets
|
$ | 1,662,545 | $ | 2,250,391 | ||||
Percentage of total assets
|
31 | % | 46 | % |
For the six months ended
June 30, |
||||||||
2010
|
2009
|
|||||||
LOSS FROM OPERATIONS
|
(4,248,021 | ) | (4,783,819 | ) | ||||
NON CASH OPERATING EXPENSES
|
||||||||
Stock based compensation expense
|
3,124,102 | 2,538,855 | ||||||
Depreciation and amortization
|
192,843 | 263,503 | ||||||
TOTAL NON CASH OPERATING EXPENSES
|
3,316,945 | 2,802,358 | ||||||
NET CASH BURN
|
(931,076 | ) | (1,981,461 | ) | ||||
NET MONTHLY CASH BURN RATE
|
(155,179 | ) | (330,244 | ) |
Quepasa Corporation
|
||
August 9, 2010
|
/s/ John Abbott
|
|
John Abbott
|
||
Chief Executive Officer
(Principal Executive Officer)
|
||
|
||
August 9, 2010
|
/s/ Michael Matte
|
|
Michael Matte
|
||
Chief Financial Officer
(Principal Financial Officer)
|
|
Incorporated by Reference
|
Filed or Furnished
|
||||||||
Exhibit
No.
|
Exhibit Description
|
Form
|
Date
|
Number
|
Herewith
|
|||||
3.1
|
Certificate of Restated Articles of Incorporation
|
10-QSB
|
8/15/07
|
3.1
|
||||||
Certificate of Amendment – Officer Liability Protection
|
Filed
|
|||||||||
3.3
|
Certificate of Designation
|
10-Q
|
7/25/08
|
3.2
|
||||||
3.4
|
Amended and Restated Bylaws
|
8-K
|
7/3/07
|
3.3
|
||||||
3.5
|
Amendment to Restated Bylaws
|
8-K
|
5/14/10
|
3.1
|
||||||
Amended and Restated 2006 Stock Incentive Plan*
|
Filed
|
|||||||||
Certification of Principal Executive Officer (Section 302)
|
Filed
|
|||||||||
Certification of Principal Financial Officer (Section 302)
|
Filed
|
|||||||||
Certification of Principal Executive Officer and Principal Financial Officer (Section 906)
|
Furnished
|
Date: August 9, 2010 | ||||
/s/ John Abbott
|
|
|||
John Abbott
Chief Executive Officer
(Principal Executive Officer)
|
|
Date: August 9, 2010 | ||||
/s/ Michael Matte
|
|
|||
Michael Matte
Chief Financial Officer
(Principal Financial Officer)
|
|
|
1.
|
The quarterly report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and
|
|
2.
|
The information contained in the quarterly report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ John Abbott
|
|
|||
John Abbott
Chief Executive Officer
(Principal Executive Officer)
|
|
|||
Dated: August 9, 2010
|
|
|
1.
|
The quarterly report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and
|
|
2.
|
The information contained in the quarterly report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/s/ Michael Matte
|
|
|||
Michael Matte
Chief Financial Officer
(Principal Financial Officer)
|
|
|||
Dated: August 9, 2010
|
|