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H2R

11/02/17 4:41 PM

#10857 RE: H2R #10856

Overall Financial Results:

- Revenue increased 52% to $3.0 million and 58% to $8.6 million for the three and nine-month periods ended September 30, 2017, respectively, compared with the same periods in the prior year.
- Gross margin for the three- and nine-month periods ended September 30, 2017 was 54% and 49%, respectively, compared to 40% for both in same three- and nine-month periods in the prior year. Gross margin improvements were driven by increased business volume, pricing adjustments and efficiencies of scale.
- As a result of investments in the build out of our infrastructure for the future, which includes adding new competencies, new and additional inventories, and new services, our operating costs and expenses increased by $637,000 and $950,000 for the three- and nine- month periods ended September 30, 2017, respectively.
- GAAP net loss for the three and nine-month periods ended September 30, 2017 was $2 million and $5.6 million, respectively, which reflected improvements of 9% and 36% compared to $2.2 million and $8.8 million in the same three- and nine-month periods in the prior year. GAAP net loss attributable to common stockholders for the three- and nine-month periods ended September 30, 2017 was $2 million, or $0.08 per share, and $5.6 million, or $0.25 per share, compared with $2.2 million, or $0.14 per share, and $8.9 million, or $0.67 per share, in the same three- and nine-month periods in the prior year.
-Adjusted EBITDA for the three- and nine-month periods ended September 30, 2017 was ($831,000) and ($2.6 million), respectively, reflecting improvements of 34% and 38% compared to ($1.3 million) and ($4.2 million) in the same three- and nine-month periods in the prior year.
-The Company has no debt and reported $15.4 million in cash and cash equivalents as of September 30, 2017, compared to $4.5 million as of Fiscal Year ended December 31, 2016. The increase in cash and cash equivalents includes net proceeds of $11.4 million received from an underwritten public offering on March 31, 2017 and net proceeds of $3.8 million from the exercise of warrants and stock options during the nine months ended September 30, 2017.

ConstitutionNow

11/02/17 4:43 PM

#10858 RE: H2R #10856

Yep, similar wording as the last dozen quarterly reports. Im just hopeful the market continues to appreciate the potential future we have. Not saying its all bad, the numbers just dont feel like they improve enough for how much the stock has appreciated.