Revenues up to $3.2M 2012 vs. 2M 2011...Weighted Average Number of Common Shares
Outstanding - Basic and Diluted 2012 97,765,439
2011 52,737,927
Rackwise, Inc. and Subsidiary
Consolidated Statements of Operations
For The Years Ended
December 31,
2012 2011
Revenues $ 3,253,436 $ 2,020,048
Direct cost of revenues 575,956 216,682
Gross Profit 2,677,480 1,803,366
Operating Expenses
Sales and marketing 4,639,283 1,936,524
Research and development 2,407,818 1,057,768
Transaction expenses - 1,264,688
General and administrative 4,285,233 5,653,656
Total Operating Expenses 11,332,334 9,912,636
Loss From Operations (8,654,854 ) (8,109,270 )
Other Income (Expense)
Interest (97,118 ) (333,726 )
Amortization of debt discount (604,605 ) (632,380 )
Amortization of deferred financing costs (49,662 ) (347,632 )
Induced note conversion (76,736 )
Gain on change in fair value of derivative liabilities - 542,283
Loss on extinguishment (113,925 ) -
Other income, net 3,215 -
Total Other Expense (938,831 ) (771,455 )
Net Loss $ (9,593,685 ) $ (8,880,725 )
Net Loss Per Common Share - Basic and Diluted $ (0.10 ) $ (0.17 )
Weighted Average Number of Common Shares
Outstanding - Basic and Diluted 97,765,439 52,737,927
See Notes to these Consolidated Financial Statements
F- 3
