Delaware
|
84-1108035
|
|
(State
or other jurisdiction
|
(I.R.S.
Employer
|
|
of
incorporation)
|
Identification
No.)
|
|
Item
1.
|
Consolidated
Financial Statements
|
1
-
18
|
Item
2.
|
Management’s
Discussion and Analysis or Plan of Operation
|
19
|
Item
3.
|
Controls
and Procedures
|
21
|
|
||
Part
II—Other Information
|
||
|
||
Item
1.
|
Legal
Proceedings
|
22
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
22
|
Item
3.
|
Defaults
Upon Senior Securities
|
22
|
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
22
|
Item
5.
|
Other
Information
|
22
|
Item
6.
|
Exhibits
|
23
|
|
||
Signatures
|
24
|
ITEM
1.
|
FINANCIAL
STATEMENTS
|
December
31,
2006
|
||||
ASSETS
|
||||
CURRENT
ASSETS
|
||||
Cash
|
$
|
767
|
||
Accounts
receivable, net of allowance of $286
|
5,580
|
|||
Note
receivable
|
950
|
|||
Inventories
|
561
|
|||
Amount
due from parent company
|
304
|
|||
Other
|
776
|
|||
Total
Current Assets
|
8,938
|
|||
Property
and equipment, net
|
327
|
|||
OTHER
ASSETS
|
||||
Goodwill
|
22,966
|
|||
Amortizable
intangible assets, net
|
7,502
|
|||
Software
development costs, net
|
1,292
|
|||
Other
long-term assets
|
34
|
|||
Total
Other Assets
|
31,794
|
|||
TOTAL
ASSETS
|
$
|
41,059
|
||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||
CURRENT
LIABILITIES
|
||||
Accounts
payable
|
$
|
2,697
|
||
Accrued
expenses
|
2,045
|
|||
Accrued
legal expenses
|
1,895
|
|||
Payroll
and other taxes
|
988
|
|||
Current
portion of long-term debt
|
892
|
|||
Deferred
revenue
|
2,521
|
|||
Taxes
payable
|
1,030
|
|||
Total
Current Liabilities
|
12,068
|
|||
LONG-TERM
LIABILITIES
|
||||
Deferred
revenue
|
772
|
|||
Deferred
income taxes
|
880
|
|||
Long-term
debt
|
6
|
|||
Total
Liabilities
|
13,726
|
|||
Commitments
and contingencies
|
||||
STOCKHOLDERS'
EQUITY
|
||||
Preferred
stock, par value $0.0001 per share, 10,000,000 shares authorized,
none
issued and outstanding
|
-
|
|||
Common
stock, par value $0.0001 per share, 100,000,000 shares authorized,
63,071,167 shares issued and outstanding
|
6
|
|||
Additional
paid-in capital
|
24,528
|
|||
Accumulated
other comprehensive loss
|
(258
|
)
|
||
Retained
earnings
|
3,057
|
|||
Total
Stockholders’ Equity
|
27,333
|
|||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
41,059
|
For
the Three Months Ended
|
For
the Six Months Ended
|
||||||||||||
December
31,
2006
|
December
31,
2005
|
December
31,
2006
|
December
31,
2005
|
||||||||||
Revenues
|
$
|
6,788
|
$
|
4,845
|
$
|
12,639
|
$
|
9,624
|
|||||
Cost
of revenues
|
2,676
|
2,290
|
5,317
|
4,729
|
|||||||||
Gross
profit
|
4,112
|
2,555
|
7,322
|
4,895
|
|||||||||
Operating
expenses
|
|||||||||||||
Research
and development
|
853
|
763
|
1,628
|
1,536
|
|||||||||
Sales
and marketing
|
591
|
487
|
1,111
|
966
|
|||||||||
General
and administrative
|
1,033
|
699
|
1,853
|
1,559
|
|||||||||
Depreciation
and amortization
|
532
|
265
|
915
|
544
|
|||||||||
Total
operating expenses
|
3,009
|
2,214
|
5,507
|
4,605
|
|||||||||
Operating
income
|
1,103
|
341
|
1,815
|
290
|
|||||||||
Other
income (expense)
|
|||||||||||||
Interest
expense
|
(36
|
)
|
(26
|
)
|
(59
|
)
|
(58
|
)
|
|||||
Interest
income
|
1
|
-
|
3
|
-
|
|||||||||
Gain
(loss) on sale of property and equipment
|
-
|
304
|
(4
|
)
|
304
|
||||||||
Other,
net
|
4
|
17
|
500
|
18
|
|||||||||
Total
other income (expense)
|
(31
|
)
|
295
|
440
|
264
|
||||||||
Income
from operations
|
1,072
|
636
|
2,255
|
554
|
|||||||||
Provision
for income taxes
|
134
|
104
|
378
|
185
|
|||||||||
Net
income
|
938
|
532
|
1,877
|
369
|
|||||||||
Foreign
currency translation gain (loss)
|
58
|
(44
|
)
|
130
|
(57
|
)
|
|||||||
Total
comprehensive income
|
$
|
996
|
$
|
488
|
$
|
2,007
|
$
|
312
|
|||||
Earnings
per share attributed to common stockholders - basic and
diluted
|
$
|
0.01
|
$
|
0.02
|
$
|
0.03
|
$
|
0.01
|
|||||
Weighted
average number of shares of common stock outstanding - basic
and
diluted
|
63,071,167
|
34,101,167
|
54,657,167
|
34,101,167
|
For
the Six Months Ended
|
|||||||
December
31,
2006
|
December
31,
2005
|
||||||
Cash
flows from operating activities:
|
|||||||
Net
income
|
$
|
1,877
|
$
|
369
|
|||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
|||||||
Depreciation
and amortization
|
915
|
544
|
|||||
Release
of provisions relating to discontinued operations
|
(487
|
)
|
-
|
||||
Loss
(gain) on sale of property and equipment
|
4
|
(304
|
)
|
||||
Changes
in operating assets and liabilities (net of the effect of
acquisition):
|
|||||||
Accounts
receivable
|
(1,680
|
)
|
(588
|
)
|
|||
Inventories
|
(308
|
)
|
(90
|
)
|
|||
Prepaid
expenses and other assets
|
50
|
(16
|
)
|
||||
Accounts
payable
|
791
|
(113
|
)
|
||||
Accrued
expenses and other liabilities
|
(218
|
)
|
578
|
||||
Deferred
revenue
|
(289
|
)
|
(348
|
)
|
|||
Taxes
payable
|
53
|
185
|
|||||
Net
cash provided by operating activities
|
708
|
217
|
|||||
Cash
flows from investing activities:
|
|||||||
Cash
acquired in acquisition
|
105
|
-
|
|||||
Purchase
of property and equipment
|
(99
|
)
|
(34
|
)
|
|||
Proceeds
from the sale of property and equipment
|
-
|
304
|
|||||
Capitalized
software development costs
|
(370
|
)
|
(164
|
)
|
|||
Net
cash provided by (used in) investing activities
|
(364
|
)
|
106
|
||||
Cash
flows from financing activities:
|
|||||||
Proceeds
from related party advances
|
-
|
327
|
|||||
Payments
on long-term debt
|
(10
|
)
|
(467
|
)
|
|||
Payments
on related party advances
|
(120
|
)
|
(208
|
)
|
|||
Net
cash used in financing activities
|
(130
|
)
|
(348
|
)
|
|||
Effect
of exchange rate changes
|
130
|
(57
|
)
|
||||
Net
increase (decrease) in cash and cash equivalents
|
344
|
(82
|
)
|
||||
Cash,
beginning of period
|
423
|
194
|
|||||
Cash,
end of period
|
$
|
767
|
$
|
112
|
|||
For
the Six Months
Ended
December
31,
2006
|
For
the Six Months
Ended
December
31,
2005
|
||||||
Supplemental
disclosures of cash flow information
|
|||||||
Cash
paid during the year for:
|
|||||||
Interest
|
$
|
59
|
$
|
58
|
|||
Income
taxes
|
$
|
164
|
$
|
0
|
|||
Non-cash
investing and financing transactions during the period
for:
|
|||||||
Shares
issued to ADN, Inc. for EXP Dealer Software Limited:
|
|||||||
Cash
|
$
|
105
|
|||||
Accounts
receivable
|
491
|
||||||
Other
current assets
|
788
|
||||||
Property
and equipment
|
153
|
||||||
Accounts
payable and accrued expenses
|
(945
|
)
|
|||||
Deferred
revenue
|
(1,292
|
)
|
|||||
Amortizable
intangible assets
|
2,363
|
||||||
Goodwill
|
905
|
||||||
Book
value of EXP Dealer Software Limited
|
$
|
2,568
|
|||||
For
the Three
Months Ended |
For
the Six Months Ended
|
|||||||||
December
31, 2005
|
December
31, 2006
|
December
31, 2005
|
||||||||
Revenues
|
$
|
6,112
|
$
|
13,202
|
$
|
11,817
|
||||
Cost
of revenues
|
2,753
|
5,398
|
5,340
|
|||||||
Gross
profit
|
3,359
|
7,804
|
6,477
|
|||||||
Operating
expenses
|
||||||||||
Research
and development
|
951
|
1,707
|
1,836
|
|||||||
Sales
and marketing
|
584
|
1,154
|
1,134
|
|||||||
General
and administrative
|
997
|
2,154
|
3,200
|
|||||||
Depreciation
and amortization
|
378
|
988
|
767
|
|||||||
Total
operating expenses
|
2,910
|
6,003
|
6,937
|
|||||||
Operating
income (loss)
|
449
|
1,801
|
(460
|
)
|
||||||
Other
income (expense)
|
||||||||||
Interest
expense
|
(32
|
)
|
(62
|
)
|
(70
|
)
|
||||
Interest
income
|
-
|
3
|
-
|
|||||||
Gain
(loss) on sale of property and equipment
|
304
|
(4
|
)
|
304
|
||||||
Other,
net
|
14
|
505
|
14
|
|||||||
Total
other income (expense)
|
286
|
442
|
248
|
|||||||
Income
(loss) from operations
|
735
|
2,243
|
(212
|
)
|
||||||
Provision
for income taxes
|
154
|
392
|
279
|
|||||||
Net
income (loss)
|
581
|
1,851
|
(491
|
)
|
||||||
Foreign
currency translation gain (loss)
|
(59
|
)
|
109
|
(54
|
)
|
|||||
Total
comprehensive income (loss)
|
$
|
522
|
$
|
1,960
|
$
|
(545
|
)
|
|||
Earnings
(loss) per share attributed to common stockholders - basic and
diluted
|
$
|
(0.01
|
)
|
$
|
0.03
|
$
|
(0.01
|
)
|
||
Weighted
average number of shares of common stock outstanding -
basic and diluted
|
62,101,167
|
63,071,167
|
62,101,167
|
For
the Six Months Ended
|
|||||||
December
31, 2006
|
December
31, 2005
|
||||||
Cash
flows from operating activities:
|
|||||||
Net
income (loss)
|
$
|
1,851
|
$
|
(491
|
)
|
||
Adjustments
to reconcile net income (loss) to net cash provided by (used in)
operating
activities:
|
|||||||
Depreciation
and amortization
|
988
|
767
|
|||||
Release
of provisions relating to discontinued operations
|
(487
|
)
|
-
|
||||
Loss
(gain) on sale of property and equipment
|
4
|
(304
|
)
|
||||
Changes
in operating assets and liabilities (net of the effect of
acquisition):
|
|||||||
Accounts
receivable
|
(1,113
|
)
|
(1,028
|
)
|
|||
Inventories
|
(298
|
)
|
(160
|
)
|
|||
Prepaid
expenses and other assets
|
(274
|
)
|
(60
|
)
|
|||
Accounts
payable
|
859
|
(42
|
)
|
||||
Accrued
expenses and other liabilities
|
(366
|
)
|
873
|
||||
Deferred
revenue
|
(414
|
)
|
(93
|
)
|
|||
Taxes
payable
|
156
|
267
|
|||||
Net
cash provided by (used in) operating activities
|
906
|
(271
|
)
|
||||
Cash
flows from investing activities:
|
|||||||
Purchase
of property and equipment
|
(113
|
)
|
(58
|
)
|
|||
Proceeds
from the sale of property and equipment
|
-
|
304
|
|||||
Capitalized
software development costs
|
(370
|
)
|
(164
|
)
|
|||
Net
cash provided by (used in) investing activities
|
(483
|
)
|
82
|
||||
Cash
flows from financing activities:
|
|||||||
Proceeds
from related party advances
|
-
|
887
|
|||||
Payments
on long-term debt
|
(10
|
)
|
(467
|
)
|
|||
Payments
on related party advances
|
(212
|
)
|
(208
|
)
|
|||
Net
cash provided by (used in) financing activities
|
(222
|
)
|
212
|
||||
Effect
of exchange rate changes
|
109
|
(54
|
)
|
||||
Net
increase (decrease) in cash and cash equivalents
|
310
|
(31
|
)
|
||||
Cash,
beginning of period
|
457
|
257
|
|||||
Cash,
end of period
|
$
|
767
|
$
|
226
|
For
the Six Months
Ended
December
31,
2006
|
For
the Six Months
Ended
December
31,
2005
|
||||||
Supplemental
disclosures of cash flow information
|
|||||||
Cash
paid during the year for:
|
|||||||
Interest
|
$
|
62
|
$
|
70
|
|||
Income
taxes
|
$
|
164
|
$
|
0
|
|||
Non-cash
investing and financing transactions during the period
for:
|
|||||||
Shares
issued to ADN, Inc. for EXP Dealer Software Limited:
|
|||||||
Cash
|
$
|
105
|
|||||
Accounts
receivable
|
491
|
||||||
Other
current assets
|
788
|
||||||
Property
and equipment
|
153
|
||||||
Accounts
payable and accrued expenses
|
(945
|
)
|
|||||
Deferred
revenue
|
(1,292
|
)
|
|||||
Amortizable
intangible assets
|
2,363
|
||||||
Goodwill
|
905
|
||||||
Book
value of EXP Dealer Software Limited
|
$
|
2,568
|
|||||
NOTE
1.
|
MANAGEMENT'S
REPRESENTATION
|
NOTE
2.
|
NATURE
OF BUSINESS
|
NOTE
3.
|
NOTE
RECEIVABLE
|
NOTE
4.
|
TRANSACTIONS
WITH PARENT COMPANY
|
NOTE
5.
|
ACQUISITION
|
Cash
|
$
|
105
|
|||
Accounts
receivable
|
491
|
||||
Other
current assets
|
788
|
||||
Property
and equipment
|
153
|
||||
Accounts
payable and accrued expenses
|
(945
|
)
|
|||
Deferred
revenue
|
(1,292
|
)
|
|||
Amortizable
intangible assets
|
2,363
|
||||
Goodwill
|
905
|
||||
$
|
2,568
|
||||
NOTE
6.
|
PRO
FORMA PRESENTATION
|
Six
Months Ended December 31, 2006
|
||||||||||
Aftersoft
Group Consolidation
|
EXP
Dealer Software Ltd. Prior to Date of Acquisition
|
PRO
FORMA
Aftersoft
Group Consolidation
|
||||||||
Revenues
|
$
|
12,639
|
$
|
563
|
$
|
13,202
|
||||
Cost
of revenues
|
5,317
|
81
|
5,398
|
|||||||
Gross
profit
|
7,322
|
482
|
7,804
|
|||||||
Operating
expenses
|
||||||||||
Research
and development
|
1,628
|
79
|
1,707
|
|||||||
Sales
and marketing
|
1,111
|
43
|
1,154
|
|||||||
General
and administrative
|
1,853
|
301
|
2,154
|
|||||||
Depreciation
and amortization
|
915
|
73
|
988
|
|||||||
Total
operating expenses
|
5,507
|
496
|
6,003
|
|||||||
Operating
income (loss)
|
1,815
|
(14
|
)
|
1,801
|
||||||
Other
income (expense)
|
||||||||||
Interest
expense
|
(59
|
)
|
(3
|
)
|
(62
|
)
|
||||
Interest
income
|
3
|
-
|
3
|
|||||||
Gain
(loss) on sale of property and equipment
|
(4
|
)
|
-
|
(4
|
)
|
|||||
Other,
net
|
500
|
5
|
505
|
|||||||
Total
other income (expense)
|
440
|
2
|
442
|
|||||||
Income
(loss\0 from operations
|
2,255
|
(12
|
)
|
2,243
|
||||||
Provision
for income taxes
|
378
|
14
|
392
|
|||||||
Net
income (loss)
|
1,877
|
(26
|
)
|
1,851
|
||||||
Foreign
currency translation gain (loss)
|
130
|
(21
|
)
|
109
|
||||||
Total
comprehensive income (loss)
|
$
|
2,007
|
$
|
(47
|
)
|
$
|
1,960
|
|||
Earnings
per share attributed to common stockholders - basic and
diluted
|
$
|
0.03
|
$
|
(0.00
|
)
|
$
|
0.03
|
|||
Weighted
average number of shares of common stock outstanding - basic and
diluted
|
54,657,167
|
8,414,000
|
63,071,167
|
Six
Months Ended December 31, 2006
|
|||||||||||||
Aftersoft
Group
Consolidation
|
EXP
Dealer Software Ltd. Prior to date of Acquisition
|
Adjustments
|
PRO
FORMA Aftersoft Group Consolidation
|
||||||||||
Cash
flows from operating activities:
|
|||||||||||||
Net
income (loss)
|
$
|
1,877
|
$
|
(26
|
)
|
$
|
-
|
$
|
1,851
|
||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
|||||||||||||
Depreciation
and amortization
|
915
|
73
|
-
|
988
|
|||||||||
Release
of provisions relating to discontinued operations
|
(487
|
)
|
-
|
-
|
(487
|
)
|
|||||||
Loss
on sale of property and equipment
|
4
|
-
|
-
|
4
|
|||||||||
Changes
in operating assets and liabilities (net of the effect of
acquisition):
|
|||||||||||||
Accounts
receivable
|
(1,680
|
)
|
567
|
-
|
(1,113
|
)
|
|||||||
Inventories
|
(308
|
)
|
10
|
-
|
(298
|
)
|
|||||||
Prepaid
expenses and other assets
|
50
|
(324
|
)
|
-
|
(274
|
)
|
|||||||
Accounts
payable
|
791
|
68
|
-
|
859
|
|||||||||
Accrued
expenses and other liabilities
|
(218
|
)
|
(148
|
)
|
-
|
(366
|
)
|
||||||
Deferred
revenue
|
(289
|
)
|
(125
|
)
|
-
|
(414
|
)
|
||||||
Taxes
payable
|
53
|
103
|
-
|
156
|
|||||||||
Net
cash provided by operating activities
|
708
|
198
|
-
|
906
|
|||||||||
Cash
flows from investing activities:
|
|||||||||||||
Cash
acquired in acquisition
|
105
|
-
|
(105
|
)
|
-
|
||||||||
Purchase
of property and equipment
|
(99
|
)
|
(14
|
)
|
-
|
(113
|
)
|
||||||
Capitalized
software development costs
|
(370
|
)
|
-
|
-
|
(370
|
)
|
|||||||
Net
cash used in investing activities
|
(364
|
)
|
(14
|
)
|
(105
|
)
|
(483
|
)
|
|||||
Cash
flows from financing activities:
|
|||||||||||||
Payments
on long-term debt
|
(10
|
)
|
-
|
-
|
(10
|
)
|
|||||||
Payments
on related party advances
|
(120
|
)
|
(92
|
)
|
-
|
(212
|
)
|
||||||
Net
cash used in financing activities
|
(130
|
)
|
(92
|
)
|
-
|
(222
|
)
|
||||||
Effect
of exchange rate changes
|
130
|
(21
|
)
|
-
|
109
|
||||||||
Net
increase (decrease) in cash and cash equivalents
|
344
|
71
|
(105
|
)
|
310
|
||||||||
Cash,
beginning of period
|
423
|
34
|
-
|
457
|
|||||||||
Cash,
end of period
|
$
|
767
|
$
|
105
|
$
|
(105
|
)
|
$
|
767
|
||||
Three
Months Ended December 31, 2005
|
Six
Months Ended December 31, 2005
|
||||||||||||||||||
Aftersoft
Group Consolidation
|
EXP
Dealer Software Ltd.
|
PRO
FORMA
Aftersoft
Group Consolidation
|
Aftersoft
Group Consolidation
|
EXP
Dealer Software Ltd.
|
PRO
FORMA
Aftersoft
Group Consolidation
|
||||||||||||||
Revenues
|
$
|
4,845
|
$
|
1,267
|
$
|
6,112
|
$
|
9,624
|
$
|
2,193
|
$
|
11,817
|
|||||||
Cost
of revenues
|
2,290
|
463
|
2,753
|
4,729
|
611
|
5,340
|
|||||||||||||
Gross
profit
|
2,555
|
804
|
3,359
|
4,895
|
1,582
|
6,477
|
|||||||||||||
Operating
expenses
|
|||||||||||||||||||
Research
and development
|
763
|
189
|
951
|
1,536
|
300
|
1,836
|
|||||||||||||
Sales
and marketing
|
487
|
97
|
584
|
966
|
168
|
1,134
|
|||||||||||||
General
and administrative
|
699
|
298
|
997
|
1,559
|
1,641
|
3,200
|
|||||||||||||
Depreciation
and amortization
|
265
|
112
|
378
|
544
|
223
|
767
|
|||||||||||||
Total
operating expenses
|
2,214
|
696
|
2,910
|
4,605
|
2,332
|
6,937
|
|||||||||||||
Operating
income (loss)
|
341
|
108
|
449
|
290
|
(750
|
)
|
(460
|
)
|
|||||||||||
Other
income (expense)
|
|||||||||||||||||||
Interest
expense
|
(26
|
)
|
(6
|
)
|
(32
|
)
|
(58
|
)
|
(12
|
)
|
(70
|
)
|
|||||||
Gain
on sale of property and equipment
|
304
|
-
|
304
|
304
|
-
|
304
|
|||||||||||||
Other,
net
|
17
|
(3
|
)
|
14
|
18
|
(4
|
)
|
14
|
|||||||||||
Total
other income (expense)
|
295
|
(9
|
)
|
286
|
264
|
(16
|
)
|
248
|
|||||||||||
Income
(loss) from operations
|
636
|
99
|
735
|
554
|
(766
|
)
|
(212
|
)
|
|||||||||||
Provision
for income taxes
|
104
|
50
|
154
|
185
|
94
|
279
|
|||||||||||||
Net
income (loss)
|
532
|
49
|
581
|
369
|
(860
|
)
|
(491
|
)
|
|||||||||||
Foreign
currency translation gain (loss)
|
(44
|
)
|
(15
|
)
|
(59
|
)
|
(57
|
)
|
3
|
(54
|
)
|
||||||||
Total
comprehensive income (loss)
|
$
|
488
|
$
|
34
|
$
|
522
|
$
|
312
|
$
|
(857
|
)
|
$
|
(545
|
)
|
|||||
Earnings
(loss) per share attributed to common stockholders - basic and
diluted
|
$
|
0.02
|
$
|
0.00
|
$
|
0.01
|
$
|
0.01
|
$
|
(0.03
|
)
|
$
|
(0.01
|
)
|
|||||
Weighted
average number of shares of common stock outstanding - basic and
diluted
|
34,101,167
|
28,000,000
|
62,101,167
|
34,101,167
|
28,000,000
|
62,101,167
|
Six
Months Ended December 31, 2005
|
||||||||||
Aftersoft
Group, Inc.
|
EXP
Dealer Software Ltd.
|
Pro
Forma
December 31, 2005 |
||||||||
Cash
flows from operating activities:
|
||||||||||
Net
income (loss)
|
$
|
369
|
$
|
(860
|
)
|
$
|
(491
|
)
|
||
Adjustments
to reconcile net income to net cash
provided
by (used in) operating activities:
|
||||||||||
Depreciation
and amortization
|
544
|
223
|
767
|
|||||||
Gain
on sale of property and equipment
|
(304
|
)
|
-
|
(304
|
)
|
|||||
Changes
in operating assets and liabilities (net of
the
effect of acquisition):
|
||||||||||
Accounts
receivable
|
(588
|
)
|
(440
|
)
|
(1,028
|
)
|
||||
Inventories
|
(90
|
)
|
(70
|
)
|
(160
|
)
|
||||
Prepaid
expenses and other assets
|
(16
|
)
|
(44
|
)
|
(60
|
)
|
||||
Accounts
payable
|
(113
|
)
|
71
|
(42
|
)
|
|||||
Accrued
expenses and other liabilities
|
578
|
295
|
873
|
|||||||
Deferred
revenue
|
(348
|
)
|
255
|
(93
|
)
|
|||||
Taxes
payable
|
185
|
82
|
267
|
|||||||
Net
cash provided by (used in) operating activities
|
217
|
(488
|
)
|
(271
|
)
|
|||||
Cash
flows from investing activities:
|
||||||||||
Purchase
of property and equipment
|
(34
|
)
|
(24
|
)
|
(58
|
)
|
||||
Proceeds
from the sale of property and equipment
|
304
|
-
|
304
|
|||||||
Capitalized
software development costs
|
(164
|
)
|
-
|
(164
|
)
|
|||||
Net
cash provided by (used in) investing activities
|
106
|
(24
|
)
|
82
|
||||||
Cash
flows from financing activities:
|
||||||||||
Proceeds
from related party advances
|
327
|
560
|
887
|
|||||||
Payments
on long-term debt
|
(467
|
)
|
-
|
(467
|
)
|
|||||
Payments
on related party advances
|
(208
|
)
|
-
|
(208
|
)
|
|||||
Net
cash provided by (used in) financing activities
|
(348
|
)
|
560
|
212
|
||||||
Effect
of exchange rate changes
|
(57
|
)
|
3
|
(54
|
)
|
|||||
Net
increase (decrease) in cash and cash equivalents
|
(82
|
)
|
51
|
(31
|
)
|
|||||
Cash,
beginning of period
|
194
|
63
|
257
|
|||||||
Cash,
end of period
|
$
|
112
|
$
|
114
|
$
|
226
|
NOTE
7.
|
COMMITMENTS
AND CONTINGENCIES
|
NOTE
8.
|
SUBSEQUENT
EVENTS
|
ITEM
2.
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS OR PLAN OF
OPERATION
|
For
the Three Months
Ended December 31, |
|||||||||||||
2006
|
2005
|
Variance
$
|
Variance
%
|
||||||||||
Research
and development
|
$
|
853,000
|
$
|
763,000
|
$
|
90,000
|
11.8
|
%
|
|||||
Sales
and marketing
|
591,000
|
487,000
|
104,000
|
21.4
|
%
|
||||||||
General
and administrative
|
1,033,000
|
699,000
|
334,000
|
47.8
|
%
|
||||||||
Depreciation
and amortization
|
532,000
|
265,000
|
267,000
|
100.8
|
%
|
||||||||
Total
Operating Expenses
|
$
|
3,009,000
|
$
|
2,214,000
|
$
|
795,000
|
35.9
|
%
|
For
the Six Months
Ended December 31, |
|||||||||||||
2006
|
2005
|
Variance
$
|
Variance
%
|
||||||||||
Research
and development
|
$
|
1,628,000
|
$
|
1,536,000
|
$
|
92,000
|
6.0
|
%
|
|||||
Sales
and marketing
|
1,111,000
|
966,000
|
145,000
|
15.0
|
%
|
||||||||
General
and administrative
|
1,853,000
|
1,559,000
|
294,000
|
18.9
|
%
|
||||||||
Depreciation
and amortization
|
915,000
|
544,000
|
371,000
|
68.2
|
%
|
||||||||
Total
Operating Expenses
|
$
|
5,507,000
|
$
|
4,605,000
|
$
|
902,000
|
19.6
|
%
|
ITEM
3.
|
CONTROLS
AND PROCEDURES
|
(a) |
Evaluation
of Disclosure Controls and
Procedures
|
(b) |
Changes
in internal control over financial
reporting
|
ITEM
1.
|
LEGAL
PROCEEDINGS
|
ITEM
2.
|
UNREGISTERED
SALES OF EQUITY SECURITIES AND USE OF
PROCEEDS
|
ITEM
3.
|
DEFAULTS
UPON SENIOR SECURITIES
|
ITEM
4.
|
SUBMISSION
OF MATTERS TO A VOTE OF SECURITY
HOLDERS
|
ITEM
5.
|
OTHER
INFORMATION
|
ITEM
6.
|
EXHIBITS
|
Exhibit
|
||
Number
|
Description
|
|
10.1
|
Share
Sale Agreement relating to EXP Dealer Software Limited dated August
4,
2006 among Auto Data Network, Inc., Aftersoft Group, Inc. and Aftersoft
Dealer Software Limited (incorporated by reference to Exhibit 10.1
to
Aftersoft Group, Inc.’s Current Report on Form 8-K filed on August 31,
2006).
|
|
31.1
*
|
Certification
of Principal Executive Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
|
|
|
||
31.2
*
|
Certification
of Principal Financial Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
|
|
32.1
*
|
Certification
of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350,
as
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
|
32.2
*
|
Certification
of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350,
as
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
|
Aftersoft
Group, Inc.
|
||
Date
: February 14, 2007
|
By:
|
/s/
Ian Warwick
|
|
|
Ian
Warwick
|
||
|
Chief
Executive Officer
(Principal
Executive Officer)
|
||
|
|||
Date
: February 14, 2007
|
By:
|
/s/
Michael O’Driscoll
|
|
|
Michael
O’Driscoll
|
||
|
Chief
Financial Officer
(Principal
Financial Officer)
|
|
|
|
Exhibit
|
|
|
Number
|
|
Description
|
|
|
|
10.1
*
|
Share
Sale Agreement relating to EXP Dealer Software Limited dated August
4,
2006 among Auto Data Network, Inc., Aftersoft Group, Inc. and Aftersoft
Dealer Software Limited (incorporated by reference to Exhibit 10.1
to
Aftersoft Group, Inc.’s Current Report on Form 8-K filed on August 31,
2006).
|
|
31.1
|
|
Certification
of Principal Executive Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
|
|
|
|
31.2
|
|
Certification
of Principal Financial Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
|
|
||
32.1
|
Certification
of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350,
as
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
|
32.2
|
Certification
of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350,
as
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
*
|
Previously
provided or incorporated by
reference.
|