BEIJING, Nov. 13, 2020 (GLOBE NEWSWIRE) — ZW Data Action Technologies Inc. (Nasdaq: CNET) (the “Company”), an integrated online advertising, precision marketing, data analytics and other value-added services provider serving enterprise clients, today announced its unaudited financial results for the three and nine months ended September 30, 2020.
Third
Q
uarter
of
20
20
Financial
Highlights
| For the Three Months Ended September 30, | |||||||||
| ($ millions, except per share data) |
2020 |
2019 |
% Change | ||||||
| Revenues | $12.30 | $15.51 | -20.7% | ||||||
| Gross profit (loss) | ($0.64) | $0.89 | -171.9% | ||||||
| Gross margin | -5.2% | 5.8% | -11pp* | ||||||
| Loss from operations | ($1.40) | ($0.28) | -410.5% | ||||||
| Operating loss margin | -11.4% | -1.8% | -9.6pp | ||||||
| Net loss attributable to CNET | ($1.33) | ($0.39) | -243.6% | ||||||
| Loss per share | ($0.06) | ($0.02) | -200.0% | ||||||
| *pp: percent points | |||||||||
- Revenues decreased by 20.7% to $12.30 million for the third quarter of 2020, primarily due to the decrease in revenues from our Internet advertising and distribution of the right to use search engine marketing service business categories, as a result of the slow recovery after the COVID-19 outbreak.
- Gross loss was $0.64 million with a gross loss margin of 5.2% for the third quarter of 2020.
- Loss from operations was $1.40 million for the third quarter of 2020, compared to $0.28 million for the same period of last year, primarily attributable to the decrease in gross profit, which was partially offset by the decrease in operating expenses.
- Net loss attributable to CNET was $1.33 million, or loss per share of $0.06, for the third quarter of 2020, compared to net loss of $0.39 million, or loss per share of $0.02, for the same period of last year.
“Despite continued decrease on a year-over-year basis, our third quarter revenues increased 18% sequentially and almost tripled from the trough level in the first quarter, highlighting the continuing post-pandemic recovery trend. Looking ahead, with restoring growth and profitability remaining a challenge for us in the near-term, we are actively pursuing new initiatives, opportunities, and strategic alternatives to right the ship,” said Mr. Handong Cheng, Chairman and Chief Executive Officer of ZW Data Action Technologies.
Third
Q
uarter
20
20
Financial Results
Revenues
| For the Three Months Ended September 30, | |||||||
| 2020 | 2019 | % Change | |||||
| – Internet advertising and related data service | 2,429 | 3,949 | -38.5% | ||||
| – Distribution of the right to use search engine marketing service | 8,706 | 11,554 | -24.6% | ||||
| – Data and technical services | 300 | 5 | NM | ||||
| Internet advertising and related services | 11,435 | 15,508 | -26.3% | ||||
| Ecommerce O2O advertisement and marketing services | 269 | 0 | NM | ||||
| Technical solution services | 600 | 0 | NM | ||||
| Total revenues | 12,304 | 15,508 |
-20.7 % |
||||
For the third quarter of 2020, revenues decreased by $3.20 million, or 20.7%, to $12.30 million from $15.51 million for the same period of last year. The decrease in revenues was primarily attributable to the decrease in revenues from the Internet advertising and distribution of the right to use search engine marketing service business categories, as a result of slow business recovery after the COVID-19 outbreak during the first quarter of 2020.
Cost of revenues
| For the Three Months Ended September 30, | ||||||
| 2020 | 2019 | % Change | ||||
| – Internet advertising and related data service | 1,998 | 3,669 | -45.5% | |||
| – Distribution of the right to use search engine marketing service | 9,731 | 10,947 | -11.1% | |||
| – Data and technical services | 265 | 0 | NM | |||
| Internet advertising and related services | 11,994 | 14,616 | -17.9% | |||
| Ecommerce O2O advertisement and marketing services | 375 | 0 | NM | |||
| Technical solution services | 576 | 0 | NM | |||
| Total cost of revenues | 12,945 | 14,616 |
-11.4 % |
|||
Total cost of revenues decreased by $1.67 million, or 11.4%, to $12.95 million for the third quarter of 2020 from $14.62 million for the same period of last year. The decrease in cost of revenues was primary attributable to the decrease in costs associated with the distribution of the right to use search engine marketing service we purchased from key search engines and cost related to providing Internet advertising services on our ad portals, which was in line with the decrease in the related revenues as discussed above.
Gross profit
(loss)
and gross
profit (loss)
margin
Gross loss was $0.64 million for the third quarter of 2020, compared to gross profit of $0.89 million for the same period of last year, which was primarily due to gross loss incurred from our main revenue stream, the distribution of the right to use search engine marketing service business category, as a result of the slow recovery of economy after the COVID-19 outbreak during the first quarter of 2020, which was partially offset by the increase in gross profit generated from Internet advertising business. Gross loss margin was 5.2% for third quarter of 2020, compared to gross profit margin of 5.8% for the same period of last year.
Operating expenses
Sales and marketing expenses decreased by $0.05 million, or 47.7%, to $0.06 million for the third quarter of 2020 from $0.11 million for the same period of last year. The decrease in sales and marketing expenses was mainly attributable to the decrease in performance based salary and bonus expenses, due to the decrease in revenues.
General and administrative expenses decreased by $0.23 million, or 27.5%, to $0.59 million for the third quarter of 2020 from $0.82 million for the same period of last year. The decrease in general and administrative expenses was mainly attributable to the decrease in general departmental expenses, as a result of cost reduction plan executed by management after the COVID-19 outbreak.
Research and development expenses decreased by $0.13 million, or 52.7%, to $0.11 million for the third quarter of 2020 from $0.24 million for the same period of last year. Research and development expenses accounted for 0.9% of total revenues for the third quarter of 2020, compared to 1.5% for the same period of last year.
Operating
loss
Loss from operations was $1.40 million for the third quarter of 2020, compared to $0.28 million for the same period of last year. Operating loss margin was 11.4% for the third quarter of 2020, compared to 1.8% for the same period of last year.
O
ther income
(expense)
, net
Total other expenses decreased to $0.08 million for the third quarter of 2020, compared to $0.13 million for the same period of last year, which was primarily related to change in fair value of warrant liabilities.
Net lossattributable to CNET and loss per share
Net loss attributable to CNET was $1.33 million, or loss per share of $0.06, for the third quarter of 2020. This compared to net loss attributable to CNET of $0.39 million, or loss per share of $0.02, for the same period of last year.
First
N
ine
M
onths
2020 Financial Results
| For the Nine Months Ended September 30, | |||||||||||
| ($ millions, except per share data) | 2020 |
2019 |
% Change | ||||||||
| Revenues | $27.10 | $39.53 | -31.4% | ||||||||
| Gross profit | $0.56 | $1.70 | -67.3% | ||||||||
| Gross margin | 2.1% | 4.3% | -2.2 pp* | ||||||||
| Loss from operations | ($4.70) | ($2.24) | -110.3% | ||||||||
| Operating loss margin | -17.3% | -5.7% | -11.7 pp | ||||||||
| Net loss attributable to CNET | ($4.61) | ($1.91) | -142.0% | ||||||||
| Loss per share | ($0.22) | ($0.12) | -83.3% | ||||||||
| *pp: percent points | |||||||||||
Revenues
| For the Nine Months Ended September 30, | |||||||
| 2020 | 2019 | % Change | |||||
| – Internet advertising and related data service | 5,679 | 9,384 | -39.5 | % | |||
| – Distribution of the right to use search engine marketing service | 18,004 | 30,134 | -40.3 | % | |||
| – Data and technical services | 900 | 10 | NM | ||||
| Internet advertising and related services | 24,583 | 39,528 | -37.8 | % | |||
| Ecommerce O2O advertisement and marketing services | 1,276 | 0 | NM | ||||
| Technical solution services | 1,245 | 0 | NM | ||||
| Total revenues | 27,104 | 39,528 | -31.4 | % | |||
For the first nine months of 2020, revenues decreased by $12.42 million, or 31.4%, to $27.10 million from $39.53 million for the same period of last year. The decrease in revenues was primarily attributable to the decrease in revenues from our Internet advertising and distribution of the right to use search engine marketing service business categories, as a result of the COVID-19 outbreak during the first fiscal quarter and the slow recovery in the second and third quarters of 2020.
Cost of revenues
| For the Nine Months Ended September 30, | |||||||
| 2020 | 2019 | % Change | |||||
| – Internet advertising and related data service | 4,904 | 8,887 | -44.8 | % | |||
| – Distribution of the right to use search engine marketing service | 19,147 | 28,936 | -33.8 | % | |||
| – Data and technical services | 796 | 5 | NM | ||||
| Internet advertising and related services | 24,847 | 37,828 | -34.3 | % | |||
| Ecommerce O2O advertisement and marketing services | 1,125 | 0 | NM | ||||
| Technical solution services | 576 | 0 | NM | ||||
| Total cost of revenues | 26,548 | 37,828 | -29.8 | % | |||
For the first nine months of 2020, cost of revenues decreased by $11.28 million, or 29.8%, to $26.55 million from $37.83 million for the same period of last year, which was primarily due to the decrease in costs associated with the distribution of the right to use search engine marketing service we purchased from key search engines and cost related to providing Internet advertising services on our ad portals, which was in line with the decrease in the related revenues.
Gross profit and gross margin
Gross profit decreased by $1.14 million, or 67.3%, to $0.56 million for the first nine months of 2020 from $1.70 million for the same period of last year, as a result of the gross loss of our distribution of the right to use search engine marketing service and partially offset by and the increase in gross profit generated from our Internet advertising service, Ecommerce O2O advertising and marketing services and technical solution services during the first nine months of 2020.
Overall gross margin was 2.1% for first nine months of 2020, compared to 4.3% for the same period of last year.
Operating expenses
Sales and marketing expenses decreased by $0.17 million, or 36.4%, to $0.29 million for the first nine months of 2020 from $0.46 million for the same period of last year. The changes in sales and marketing expenses was mainly attributable to the following reasons: (1) staff salary and benefit expenses and general departmental expenses decreased by $0.29 million, due to office shutdown during the first fiscal quarter of 2020, resulted from the COVID-19 outbreak during the period and related epidemic control measures imposed by the local governments where we operate, and slow recovery of business performance after the outbreak in the following quarters; and (2) the increase in share-based compensation expenses of $0.12 million, related to restricted shares granted and issued to our sales staff during the first fiscal quarter of 2020.
General and administrative expenses increased by $1.65 million, or 57.2%, to $4.52 million for the first nine months of 2020 from $2.88 million for the same period of last year. The increases in general and administrative expenses was mainly attributable to the following reasons: (1) the increase in share-based compensation expenses of $1.49 million, due to restricted shares granted and issued in the first fiscal quarter of 2020; and (2) the increase in allowance for doubtful accounts of $0.31 million.
Research and development expenses decreased by $0.16 million, or 26.0%, to $0.44 million for the first nine months of 2020 from $0.60 million for the same period of last year. Research and development expenses accounted for 1.6% of total revenues for the first nine months of 2020, compared to 1.5% for the same period of last year.
Operating
loss
Loss from operations increased by $2.47 million, or 110.3%, to $4.70 million for the first nine months of 2020 from $2.24 million for the same period of last year. Operating loss margin was 17.3% for the first nine months of 2020, compared to 5.7% for the same period of last year.
Other income (expense), net
Total other income was $nil for the first nine months of 2020, compared to $0.31 million for the same period of last year, which was primarily related to change in fair value of warrant liabilities.
Net lossattributable to CNET and loss per share
As a result of the foregoing, net loss attributable to CNET was $4.61 million, or loss per share of $0.22, for the first nine months of 2020. This compared to net loss attributable to CNET of $1.91 million, or loss per share of $0.12, for the same period of last year.
Financial Condition
As of September 30, 2020, the Company had cash and cash equivalents of $0.50 million, compared to $1.60 million as of December 31, 2019. Accounts receivable, net was $2.28 million as of September 30, 2020, compared to $3.26 million as of December 31, 2019. Working capital was $2.35 million as of September 30, 2020, compared to $4.92 million as of December 31, 2019.
Net cash provided by operating activities was $0.60 million for the first nine months of 2020, compared to net cash used in operating activities of $4.06 million for the same period of last year. Net cash used in investing activities was $1.27 million for the first nine months of 2020, compared to $0.80 million for the same period of last year. Net cash used in financing activities was $0.43 million for the first nine months of 2020, compared to net cash provided by financing activities of $1.96 million for the same period of last year.
Recent Developments
Effective October 14, 2020, the Company changed its corporate name change from “ChinaNet Online Holdings, Inc.” to “ZW Data Action Technologies Inc.”
On August 7, 2020, the Company appointed Mr. Charles Chiu to the position of the Company’s Chief Operating Officer and Mr. Mark Li, the current Chief Financial Officer of the Company, to serve as Secretary of the Company. On the same date, Mr. George Chu resigned from the roles of Chief Operating Officer and Secretary of the Company due to personal reasons. Mr. Chu continued to serve as a director of the Board of Directors of the Company.
About
ZW Data Action Technologies Inc.
Established in 2003 and headquartered in Beijing, China, ZW Data Action Technologies Inc. (the “Company”) offers online advertising, precision marketing, data analytics and other value-added services for enterprise clients. Leveraging its fully integrated services platform, proprietary database, and cutting-edge algorithms, ZW Data Action Technologies delivers customized, result-driven business solutions for small and medium-sized enterprise clients in China. The Company also develops blockchain and artificial intelligence enabled web/mobile applications and software solutions for general public, enterprise clients, and government agencies. More information about the Company can be found at: http://www.zdat.com/.
Safe Harbor Statement
This release contains certain “forward-looking statements” relating to the business of
ZW Data Action Technologies Inc.
, which can be identified by the use of forward-looking terminology such as “believes,” “expects,” “anticipates,” “estimates” or similar expressions. Such forward-looking statements involve known and unknown risks and uncertainties, including business uncertainties relating to government regulation of our industry, market demand, reliance on key personnel, future capital requirements, competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the Securities and Exchange Commission. These forward-looking statements are based
on
ZW Data Action Technologies
current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting
ZW Data Action Technologies
will be those anticipated by
ZW Data Action Technologies
. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the Company) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by such forward-looking statements.
ZW Data Action Technologies
undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
For more information, please contact:
Sherry Zheng
Weitian Group LLC
Email: [email protected]
Phone: +1 718-213-7386
|
ZW DATA ACTION TECHNOLOGIES INC. CONDENSED CONSOLIDATED BALANCE SHEET S (In thousands, except for number of shares and per share data) |
||||||
|
September 30, 20 20 |
December 31, 201 9 |
|||||
| (US $) | (US $) | |||||
| (Unaudited) | ||||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 500 | $ | 1,603 | ||
| Accounts receivable, net of allowance for doubtful accounts of $3,996 and | ||||||
| $3,148, respectively | 2,282 | 3,260 | ||||
| Prepayment and deposit to suppliers | 6,301 | 6,980 | ||||
| Due from related parties, net | 58 | 81 | ||||
| Other current assets, net | 961 | 11 | ||||
| Total current assets | 10,102 | 11,935 | ||||
| Long-term investments | 64 | 35 | ||||
| Operating lease right-of-use assets | 4 | 12 | ||||
| Property and equipment, net | 74 | 78 | ||||
| Intangible assets, net | 1,288 | 1,899 | ||||
| Blockchain platform applications development costs | 4,189 | 3,879 | ||||
| Long-term prepayments | 474 | – | ||||
| Deferred tax assets, net | 815 | 713 | ||||
| Total Assets | $ | 17,010 | $ | 18,551 | ||
| Liabilities and Equity | ||||||
| Current liabilities: | ||||||
| Short-term bank loan | $ | – | $ | 430 | ||
| Accounts payable | 552 | 408 | ||||
| Advance from customers | 2,822 | 2,006 | ||||
| Accrued payroll and other accruals | 442 | 491 | ||||
| Taxes payable | 3,290 | 3,214 | ||||
| Lease payment liability related to short-term leases | 222 | 136 | ||||
| Other current liabilities | 325 | 221 | ||||
| Warrant liabilities | 103 | 107 | ||||
| Total current liabilities | 7,756 | 7,013 | ||||
|
Long-term liabilities : |
||||||||
| Long-term borrowing from a director | 129 | 125 | ||||||
| Total Liabilities | 7,885 | 7,138 | ||||||
| Commitments and contingencies | ||||||||
| Equity: | ||||||||
| ZW Data Action Technologies Inc.’s stockholders’ equity | ||||||||
| Common stock (US$0.001 par value; authorized 50,000,000 shares; issued and | ||||||||
| outstanding 21,741,926 shares and 19,629,403 shares at September 30, 2020 and December 31, 2019, respectively) |
22 | 20 | ||||||
| Additional paid-in capital | 45,569 | 43,111 | ||||||
| Statutory reserves | 2,607 | 2,607 | ||||||
| Accumulated deficit | (40,384 | ) | (35,773 | ) | ||||
| Accumulated other comprehensive income | 1,371 | 1,505 | ||||||
| Total ZW Data Action Technologies Inc.’s stockholders’ equity | 9,185 | 11,470 | ||||||
| Noncontrolling interests | (60 | ) | (57 | ) | ||||
| Total equity | 9,125 |
1 1,413 |
||||||
| Total Liabilities and Equity | $ | 17,010 | $ | 18,551 | ||||
|
ZW DATA ACTION TECHNOLOGIES INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (In thousands, except for number of shares and per share data) |
||||||||||||||||
| Nine Months Ended September 30, | Three Months Ended September 30, | |||||||||||||||
|
20 20 |
201 9 |
20 20 |
20 19 |
|||||||||||||
| (US $) | (US $) | (US $) | (US $) | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Revenues | ||||||||||||||||
| From unrelated parties | $ | 27,086 | $ | 39,025 | $ | 12,300 | $ | 15,113 | ||||||||
| From a related party | 18 | 503 | 4 | 395 | ||||||||||||
| Total revenues | 27,104 | 39,528 | 12,304 | 15,508 | ||||||||||||
| Cost of revenues | 26,548 | 37,828 | 12,945 | 14,616 | ||||||||||||
| Gross profit/(loss) | 556 | 1,700 | (641 | ) | 892 | |||||||||||
| Operating expenses | ||||||||||||||||
| Sales and marketing expenses | 293 | 461 | 58 | 111 | ||||||||||||
| General and administrative expenses | 4,520 | 2,875 | 592 | 817 | ||||||||||||
| Research and development expenses | 443 | 599 | 113 | 239 | ||||||||||||
| Total operating expenses | 5,256 | 3,935 | 763 | 1,167 | ||||||||||||
| Loss from operations |
( 4,700 |
) | (2,235 | ) |
( 1,404 |
) |
( 275 |
) | ||||||||
| Other income (expenses) | ||||||||||||||||
| Interest expense, net | – | (33 | ) | 1 | (10 | ) | ||||||||||
| Other expenses | (4 | ) | (6 | ) | (21 | ) | (2 | ) | ||||||||
| Change in fair value of warrant liabilities | 4 | 351 | (64 | ) | (120 | ) | ||||||||||
| Total other income | – | 312 | (84 | ) | (132 | ) | ||||||||||
| Loss before income tax benefit and noncontrolling interests |
( 4,700 |
) |
( 1,923 |
) |
( 1,488 |
) |
( 407 |
) | ||||||||
| Income tax benefit | 87 | 10 | 155 | 16 | ||||||||||||
| Net loss |
( 4,613 |
) |
( 1,913 |
) |
( 1,333 |
) | (391 | ) | ||||||||
| Net loss attributable to noncontrolling interests | 2 | 8 | – | 3 | ||||||||||||
| Net loss attributable to ZW Data Action Technologies Inc. | $ |
( 4,611 |
) | $ |
( 1,905 |
) | $ |
( 1,333 |
) | $ |
( 388 |
) | ||||
| Net loss | $ | (4,613 | ) | $ | (1,913 | ) | $ | (1,333 | ) | $ | (391 | ) | ||||
| Foreign currency translation (loss)/gain | (135 | ) | 97 | (203 | ) | 73 | ||||||||||
| Comprehensive loss | $ |
( 4,748 |
) | $ |
( 1,816 |
) | $ |
( 1,536 |
) | $ |
( 318 |
) | ||||
| Comprehensive loss attributable to noncontrolling interests | 3 | 6 | 2 | 1 | ||||||||||||
| Comprehensive loss attributable to ZW Data Action Technologies Inc. | $ | (4,745 | ) | $ | (1,810 | ) | $ | (1,534 | ) | $ | (317 | ) | ||||
| Loss per share | ||||||||||||||||
| Loss per common share | ||||||||||||||||
| Basic and diluted | $ | (0.22 | ) | $ | (0.12 | ) | $ | (0.06 | ) | $ | (0.02 | ) | ||||
| Weighted average number of common shares outstanding: | ||||||||||||||||
| Basic and diluted | 21,271,301 | 16,447,233 | 21,720,259 | 16,517,440 | ||||||||||||
|
ZW DATA ACTION TECHNOLOGIES INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) |
|||||||||
|
Nine Months Ended September 30, |
|||||||||
|
2020 |
2019 |
||||||||
|
(US $) |
(US $) |
||||||||
|
(Unaudited) |
(Unaudited) |
||||||||
| Cash flows from operating activities | |||||||||
| Net loss | $ | (4,613 | ) | $ | (1,913 | ) | |||
|
Adjustments to reconcile net loss to net cash provided by /( used in) operating activities |
|||||||||
| Depreciation and amortization | 622 | 66 | |||||||
| Amortization of operating lease right-of-use assets | 7 | – | 88 | ||||||
| Share-based compensation expenses | 2,066 | 307 | |||||||
| Provision for allowances for doubtful accounts | 751 | 445 | |||||||
| Deferred taxes | (87 | ) | (10 | ) | |||||
| Change in fair value of warrant liabilities | (4 | ) | (351 | ) | |||||
| Changes in operating assets and liabilities | |||||||||
| Accounts receivable | 254 | (289 | ) | ||||||
| Prepayment and deposit to suppliers | 1,077 | (5,191 | ) | ||||||
| Due from related parties | 24 | 226 | |||||||
| Other current assets | (5 | ) | 11 | ||||||
| Long-term prepayments | (375 | ) | – | ||||||
| Accounts payable | 137 | (1,946 | ) | ||||||
| Advance from customers | 754 | 4,151 | |||||||
| Advance from a customer, related | – | 9 | |||||||
| Accrued payroll and other accruals | (55 | ) | (242 | ) | |||||
| Lease payment liability related to short-term leases | 81 | 180 | |||||||
| Other current liabilities | (38 | ) | 291 | ||||||
| Taxes payable | 8 | 123 | |||||||
| Prepaid lease payment | (9 | ) | (10 | ) | |||||
|
Net cash provided by /( used in) operating activities |
5 9 5 |
(4,055 | ) | ||||||
| Cash flows from investing activities | |||||||||
| Investment to investee entities | (27 | ) | (36 | ) | |||||
| Short-term loan to an unrelated party | (944 | ) | – | ||||||
| Payment for blockchain platform applications development costs | (302 | ) | – | ||||||
| Prepayment for software system development | – | (760 | ) | ||||||
|
Net cash used in investing activities |
(1,273 | ) | (796 | ) | |||||
| Cash flows from financing activities | |||||||||
| Proceeds from issuance of common stock (net of cash offering cost of US$8) | – | 2,393 | |||||||
| Proceeds from short-term bank loan | – | 438 | |||||||
| Repayment of short-term bank loan | (429 | ) | (875 | ) | |||||
|
Net cash ( used in)/provided by financing activities |
(429 | ) | 1,956 | ||||||
| Effect of exchange rate fluctuation | 4 | (10 | ) | ||||||
| Net decrease in cash and cash equivalents |
(1, 10 3 |
) | (2,905 | ) | |||||
| Cash and cash equivalents at beginning of the period | 1,603 | 3,742 | |||||||
| Cash and cash equivalents at end of the period | $ | 500 | $ | 837 | |||||
| Supplemental disclosure of cash flow information | |||||||||
| Income taxes paid | $ | – | $ | – | |||||
| Interest expense paid | $ | 2 | $ | 36 | |||||