For the three months ended September 30, For the nine months ended September 30,
2009 2008 2009 2008
REVENUE:
Services $ 7,011,285 $ 4,235,803 $ 15,184,707 $ 11,935,127
Related party services 531,142 527,272 1,567,211 1,741,596
Reimbursable expenses 410,470 186,158 855,427 498,407
Other 108,345 37,540 126,905 152,238
8,061,242 4,986,773 17,734,250 14,327,368
COST OF REVENUE:
Services 4,214,161 2,980,122 10,692,230 8,758,582
Related party services 465,555 505,805 1,408,607 1,631,099
Consultant expenses 434,546 219,158 961,518 618,985
5,114,262 3,705,085 13,062,355 11,008,666
GROSS PROFIT 2,946,980 1,281,688 4,671,895 3,318,702
OPERATING EXPENSES
Selling and marketing 728,847 898,149 2,287,269 2,587,481
General and administrative 724,337 936,650 1,977,774 3,045,078
Goodwill impairment - 3,255,879 - 4,636,266
Depreciation and amortization 25,108 62,405 81,512 224,074
1,478,292 5,153,083 4,346,555 10,492,899
INCOME (LOSS) FROM OPERATIONS 1,468,688 (3,871,395 ) 325,340 (7,174,197 )
OTHER INCOME (EXPENSE)
Equity in (losses) earnings from investments - (110 ) (103,298 ) 12,876
Loss on extinguishment of debt - - - (553,846 )
Interest income (expense), net (176,070 ) (340,267 ) (663,546 ) (682,447 )
(176,070 ) (340,377 ) (766,844 ) (1,223,417 )
INCOME (LOSS) BEFORE INCOME TAXES 1,292,618 (4,211,772 ) (441,504 ) (8,397,614 )
INCOME TAXES - - - -
NET INCOME (LOSS) 1,292,618 (4,211,772 ) (441,504 ) (8,397,614 )
Accretion of issuance costs associated with convertible preferred stock (95,000 ) (95,000 ) (285,000 ) (285,000 )
Dividends on convertible preferred stock (45,000 ) (54,078 ) (135,000 ) (167,779 )
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS $ 1,152,618 $ (4,360,850 ) $ (861,504 ) $ (8,850,393 )
Earnings per share:
Basic $ 0.01 $ (0.04 ) $ (0.01 ) $ (0.08 )
Diluted $ 0.01 $ (0.04 ) $ (0.01 ) $ (0.08 )
Shares used in calculation of earnings per share:
Basic 119,895,174 117,909,029 119,813,903 114,348,981
Diluted 133,651,512 117,909,029 119,813,903 114,348,981
