Form 6-K GIGAMEDIA Ltd For: Mar 24
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15D-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of March, 2016
Commission File Number: 000-30540
GIGAMEDIA LIMITED
8F, No. 22, Lane 407, Section 2, Tiding Boulevard
Neihu District
Taipei, Taiwan (R.O.C.)
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F x Form 40-F ¨
(Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
Yes ¨ No x
(If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b) :82- .)
GIGAMEDIA LIMITED is submitting under cover of Form 6-K:
1. | GigaMedia Announces Fourth-Quarter and Full-Year 2015 Financial Results (attached hereto as Exhibit 99.1) |
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
GigaMedia Limited | ||
(Registrant) | ||
Date: March 24, 2016 | By: /s/ HUANG, SHIH-CHIN | |
(Signature) | ||
Name: HUANG, SHIH-CHIN | ||
Title: Head of Finance Department |
Exhibit 99.1
FOR IMMEDIATE RELEASE | For further information contact: | |
Annie Sun | ||
Investor Relations Services | ||
Country/City Code 8862 Tel: 2656-8096 | ||
[email protected] |
GigaMedia Announces Fourth-Quarter
and Full-Year 2015 Financial Results
TAIPEI, Taiwan, March 24, 2016 GigaMedia Limited (NASDAQ: GIGM) today announced its fourth-quarter and full-year 2015 unaudited financial results.
Message from Management
Fourth quarter was crucial for our company as we completed the restructuring of the organization. Both the management and the board agreed to remain the Company in good financial health. Therefore, in 2015, the Company endeavored to clean up the underperforming business and investment assets, and streamline the mobile game business.
In the fourth quarter, the operating revenues generated from the online and mobile game business were $2.2 million, and its gross profit was $1.1 million and gross margin accounted for about 50%, of which improved adequately compared with 28% of gross margin in 1Q15.
In 2015, the annual operating revenues were $10.3 million, up by 4.8% from $9.8 million of 2014. However, the Company recognized $4.3 million of impairment losses in 2015 mainly for prepaid license and royalty fees of ArcheAge as a result of an evaluation of its possible profitability upon release. The short-term borrowings decreased from $18.6 million in 2014 to $6.1 million in 2015; besides, given the market volatility, the Company disposed most of its marketable securities and realized a capital gain at the amount of approximately $20 million.
At the end of September last year, the Company launched a new mobile game namely Yume100 licensed from Japan. With this game, the Company started to find a niche market, targeting female players in the age range of 20 to 40. Up to now, its been six months upon its release in Taiwan and its revenue generation continues to be consistent. As of the end of 2015, the sales revenues generated by Yume100 were about $1 million. Due to the success of Yume100 launch in Taiwan, more and more well-known developers get to approach us for cooperation.
Looking forward to 2016, the Company plans to penetrate the female niche market and meanwhile, expects for collaboration with more renowned game developers aiming at publishing more popular games with good quality and good monetization. Besides, while the Company continues to look for investment opportunities, the management still remains conservative views on the global economic outlook, and carefully evaluates the investment potential.
Consolidated Financial Results
GigaMedia Limited is a diversified provider of online games and cloud computing services. GigaMedias online game business, FunTown, develops and operates a suite of games in Taiwan and Hong Kong, with focus on browser/mobile games and social casino games. GigaMedias cloud computing business, GigaCloud, was launched in early April 2013 and is focused on providing small and medium-sized enterprises in Greater China with critical communications services and IT solutions that increase flexibility, efficiency and competitiveness.
Unaudited consolidated results of GigaMedia are summarized in the table below.
For the Fourth Quarter
GIGAMEDIA 4Q15 UNAUDITED CONSOLIDATED FINANCIAL RESULTS | ||||||||||||||||||||||||
(unaudited, all figures in US$ thousands, except per share amounts) |
4Q15 | 3Q15 | Change (%) |
4Q15 | 4Q14 | Change (%) |
||||||||||||||||||
Revenues |
2,356 | 2,006 | 17.4 | % | 2,356 | 2,660 | -11.4 | % | ||||||||||||||||
Gross Profit |
1,005 | -598 | 268.1 | % | 1,005 | -94 | 1169.1 | % | ||||||||||||||||
Loss from Operations |
-5,478 | -5,240 | -4.5 | % | -5,478 | -4,330 | -26.5 | % | ||||||||||||||||
Net Income (Loss) Attributable to GigaMedia |
-8,903 | -301 | - 2857.8 | % | -8,903 | 5,437 | -263.8 | % | ||||||||||||||||
Net Income (Loss) Per Share Attributable to GigaMedia, Diluted |
-0.81 | -0.03 | - 2600.0 | % | -0.81 | 0.49 | -265.3 | % | ||||||||||||||||
EBITDA (A) |
-8,815 | -207 | - 4258.5 | % | -8,815 | 5,675 | -255.3 | % | ||||||||||||||||
Cash and Marketable Securities-Current |
71,436 | 74,824 | -4.5 | % | 71,436 | 79,980 | -10.7 | % |
(A) | EBITDA (earnings before interest, taxes, depreciation, and amortization) is provided as a supplement to results provided in accordance with U.S. generally accepted accounting principles (GAAP). (See, Use of Non-GAAP Measures, for more details.) |
Fourth-Quarter Financial Results
| Consolidated revenues were $2.4 million, grew by 17.4% quarter-on-quarter primarily due to the growth of mobile gaming business with the revenues of $2.2 million in 4Q15, up from $1.7 million in 3Q15. The revenues were down by 11.4% quarter-over-quarter as the Company was restructuring its cloud computing business in 4Q15 and its contribution dwindled. |
| Consolidated operating expenses were $6.5 million, up from $4.6 million in 3Q15 (+39.7% quarter-on-quarter) mainly resulting from the impairment losses of $3.1 million. |
| Impairment losses were approximately $3.1 million recognized mainly for the prepaid license and royalty fees of ArcheAge, for which the game license agreement was signed in October 2010. |
| Net loss was $8.9 million in 4Q15 mostly due to $2 million consideration paid to Strawberry Cosmetics for the termination of the proposed acquisition and the impairment losses recognized for ArcheAge and the investment of other games. |
Financial Position
GigaMedia maintained its solid financial position with cash and cash equivalents, marketable securities-current and restricted cash accounted for $72.4 million as of December 31, 2015, or approximately $6.55 per share. In consideration of short-term borrowings, its net cash was estimated at $66.3 million as of December 31, 2015, or approximately $5.91 per share.
For the Full Year 2015
( all figures in US$ thousands, except per share amounts) |
FY15 (unaudited) | FY14 (audited) | Change (%) | |||||||||
Revenues |
10,251 | 9,779 | 4.8 | % | ||||||||
Gross Profit |
1,362 | 1,944 | -29.9 | % | ||||||||
Loss from Operations |
-17,935 | -13,473 | -33.1 | % | ||||||||
Net Loss Attributable to GigaMedia |
-2,588 | -5,155 | 49.8 | % | ||||||||
Net Loss Per Share Attributable to GigaMedia, Diluted |
-0.23 | -0.48 | 52.1 | % | ||||||||
EBITDA (A) |
-2,223 | -4,168 | 46.7 | % |
Consolidated revenues increased to $10.3 million in 2015 from $9.8 million in 2014, up by 4.8% mainly due to the growth of overall business.
Consolidated gross profit decreased to $1.4 million in 2015 from $1.9 million in 2014 (-29.9% year-over-year) attributable to an increase in operating costs and lowered operating leverage. The gross margin dropped to 13.3% in 2015, down from 19.9% in 2014.
Consolidated loss from operations for 2015 was $17.9 million, up from $13.5 million in 2014 as a result of the impairment losses for ArcheAge and the expenses accrued for the restructuring of the Companys underperforming business units in 4Q15.
Consolidated net loss attributable to the shareholders of the Company amounts to $2.6 million in 2015 compared to a loss of $5.2 million in 2014.
Use of Non-GAAP Measures
To supplement GigaMedias consolidated financial statements presented in accordance with US GAAP, the company uses the following measure defined as non-GAAP by the SEC: EBITDA. Management believes that EBITDA (earnings before interest, taxes, depreciation, and amortization) is a useful supplemental measure of performance because it excludes certain non-cash items such as depreciation and amortization and that EBITDA is a measure of performance used by some investors, equity analysts and others to make informed investment decisions. EBITDA is not a recognized earnings measure under GAAP and does not have a standardized meaning. Non-GAAP measures such as EBITDA should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, other financial measures prepared in accordance with GAAP. A limitation of using EBITDA is that it does not include all items that impact the companys net income for the period. Reconciliations to the GAAP equivalents of the non-GAAP financial measures are provided on the attached unaudited financial statements.
About the Numbers in This Release
Full-year and quarterly results
All 2015 quarterly and full-year figures and all 2014 quarterly results referred to in the text, tables and attachments to this release are unaudited; all full-year 2014 amounts are audited. The financial statements from which the financial results reported in this press release are derived have been prepared in accordance with U.S. GAAP, unless otherwise noted as non-GAAP, and are presented in U.S. dollars.
Webcast
Management will not hold an investor conference call and webcast for a discussion about the financial results of the fourth quarter and full year 2015 as the release dates of the financial results of the first quarter 2016 and the 2015 annual report are close. However, investors may still send the questions via email to [email protected].tw, and the responses will be replied individually.
An announcement for the next webcast will be made along with the release of the financial results of the first quarter of 2016.
About GigaMedia
Headquartered in Taipei, Taiwan, GigaMedia Limited (Singapore registration number: 199905474H) is a diversified provider of online games and cloud computing services. GigaMedias online games business develops and operates a suite of games in Taiwan and Hong Kong, with focus on browser/mobile games and social casino games. The companys cloud computing business is focused on providing SMEs in Greater China with critical communications services and IT solutions that increase flexibility, efficiency and competitiveness. More information on GigaMedia can be obtained from www.gigamedia.com.
The statements included above and elsewhere in this press release that are not historical in nature are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding expected financial performance (as described without limitation in the Business Outlook section and in quotations from management in this press release) and GigaMedias strategic and operational plans. These statements are based on managements current expectations and are subject to risks and uncertainties and changes in circumstances. There are important factors that could cause actual results to differ materially from those anticipated in the forward looking statements, including but not limited to, our ability to license, develop or acquire additional online games that are appealing to users, our ability to retain existing online game players and attract new players, and our ability to launch online games in a timely manner and pursuant to our anticipated schedule. Further information on risks or other factors that could cause results to differ is detailed in GigaMedias Annual Report on Form 20-F filed in April 2015 and its other filings with the United States Securities and Exchange Commission.
# # #
(Tables to follow)
GIGAMEDIA LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended | Twelve months ended | |||||||||||||||||||
12/31/2015 | 9/30/2015 | 12/31/2014 | 12/31/2015 | 12/31/2014 | ||||||||||||||||
unaudited | unaudited | unaudited | unaudited | audited | ||||||||||||||||
USD | USD | USD | USD | USD | ||||||||||||||||
Operating revenues |
||||||||||||||||||||
Asian online game and service revenues |
2,151,598 | 1,660,013 | 1,739,623 | 8,544,926 | 8,199,393 | |||||||||||||||
Other revenues |
204,215 | 345,516 | 920,732 | 1,706,069 | 1,579,551 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
2,355,813 | 2,005,529 | 2,660,355 | 10,250,995 | 9,778,944 | ||||||||||||||||
|
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|
|||||||||||
Operating costs |
||||||||||||||||||||
Cost of Asian online game and service revenues |
1,043,327 | 2,230,148 | 1,833,963 | 7,017,451 | 6,010,149 | |||||||||||||||
Cost of other revenues |
307,688 | 373,245 | 920,471 | 1,871,227 | 1,824,573 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
1,351,015 | 2,603,393 | 2,754,434 | 8,888,678 | 7,834,722 | ||||||||||||||||
|
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|
|
|
|
|
|
|
|
|||||||||||
Gross profit (loss) |
1,004,798 | (597,864 | ) | (94,079 | ) | 1,362,317 | 1,944,222 | |||||||||||||
|
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|
|
|
|
|
|
|
|
|||||||||||
Operating expenses |
||||||||||||||||||||
Product development and engineering expenses |
190,547 | 151,621 | 220,748 | 687,961 | 892,331 | |||||||||||||||
Selling and marketing expenses |
2,057,035 | 1,649,356 | 1,697,665 | 8,655,713 | 6,707,346 | |||||||||||||||
General and administrative expenses |
1,152,772 | 1,997,787 | 915,407 | 5,701,793 | 6,415,549 | |||||||||||||||
Impairment losses |
3,446,056 | 805,746 | 1,401,667 | 4,251,803 | 1,401,667 | |||||||||||||||
Other |
(363,885 | ) | 37,291 | 0 | 0 | 0 | ||||||||||||||
|
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|
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|
|||||||||||
6,482,525 | 4,641,801 | 4,235,487 | 19,297,270 | 15,416,893 | ||||||||||||||||
|
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|
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|
|
|
|||||||||||
Loss from operations |
(5,477,727 | ) | (5,239,665 | ) | (4,329,566 | ) | (17,934,953 | ) | (13,472,671 | ) | ||||||||||
|
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|
|||||||||||
Non-operating income (expense) |
||||||||||||||||||||
Interest income |
62,201 | 62,153 | 146,579 | 333,207 | 682,163 | |||||||||||||||
(Loss) gain on sales of marketable securities |
(812 | ) | 5,844,306 | 6,011,518 | 20,020,057 | 8,620,875 | ||||||||||||||
Interest expense |
(27,413 | ) | (24,142 | ) | (80,344 | ) | (181,892 | ) | (243,037 | ) | ||||||||||
Foreign exchange loss - net |
(17,113 | ) | (346,248 | ) | (244,306 | ) | (397,259 | ) | (556,061 | ) | ||||||||||
Equity in net (loss) earnings on equity method investments |
(52,011 | ) | (615,990 | ) | 3,538,522 | (604,947 | ) | (530,801 | ) | |||||||||||
Changes in the fair value of an instrument recognized at fair value |
699 | 637 | 74,213 | (70,853 | ) | 74,213 | ||||||||||||||
(Loss) gain on disposal of investments |
(365 | ) | 37,364 | 0 | 37,000 | 0 | ||||||||||||||
Impairment loss on marketable securities and investments |
(1,289,779 | ) | 0 | 0 | (1,289,779 | ) | 0 | |||||||||||||
Other |
(2,100,315 | ) | 33,477 | 263,660 | (2,557,390 | ) | 362,055 | |||||||||||||
|
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|||||||||||
(3,424,908 | ) | 4,991,557 | 9,709,842 | 15,288,144 | 8,409,407 | |||||||||||||||
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|
|||||||||||
(Loss) Income from continuing operations before income taxes |
(8,902,635 | ) | (248,108 | ) | 5,380,276 | (2,646,809 | ) | (5,063,264 | ) | |||||||||||
Income tax benefit (expense) |
429 | (125 | ) | 13,005 | 13,824 | 73,258 | ||||||||||||||
|
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|
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|
|||||||||||
(Loss) Income from continuing operations |
(8,902,206 | ) | (248,233 | ) | 5,393,281 | (2,632,985 | ) | (4,990,006 | ) | |||||||||||
|
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|
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|||||||||||
Net (loss) income |
(8,902,206 | ) | (248,233 | ) | 5,393,281 | (2,632,985 | ) | (4,990,006 | ) | |||||||||||
Less: Net (income) loss attributable to noncontrolling interest |
(445 | ) | (53,111 | ) | 43,639 | 45,100 | (164,780 | ) | ||||||||||||
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|||||||||||
Net (loss) income attributable to shareholders of GigaMedia |
(8,902,651 | ) | (301,344 | ) | 5,436,920 | (2,587,885 | ) | (5,154,786 | ) | |||||||||||
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(Loss) earnings per share attributable to GigaMedia |
||||||||||||||||||||
Basic: |
||||||||||||||||||||
(Loss) income from continuing operations |
(0.81 | ) | (0.03 | ) | 0.49 | (0.23 | ) | (0.48 | ) | |||||||||||
Loss from discontinued operations |
0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||
|
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|
|||||||||||
(0.81 | ) | (0.03 | ) | 0.49 | (0.23 | ) | (0.48 | ) | ||||||||||||
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Diluted: |
||||||||||||||||||||
(Loss) income from continuing operations |
(0.81 | ) | (0.03 | ) | 0.49 | (0.23 | ) | (0.48 | ) | |||||||||||
Loss from discontinued operations |
0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||||||
|
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|
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|
|||||||||||
(0.81 | ) | (0.03 | ) | 0.49 | (0.23 | ) | (0.48 | ) | ||||||||||||
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|||||||||||
Weighted average shares outstanding: |
||||||||||||||||||||
Basic |
11,052,332 | 11,052,332 | 11,052,332 | 11,052,332 | 10,785,393 | |||||||||||||||
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Diluted |
11,052,332 | 11,052,332 | 11,056,966 | 11,052,332 | 10,785,393 | |||||||||||||||
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GIGAMEDIA LIMITED
CONSOLIDATED BALANCE SHEETS
12/31/2015 | 9/30/2015 | 12/31/2014 | ||||||||||
unaudited | unaudited | audited | ||||||||||
USD | USD | USD | ||||||||||
Assets |
||||||||||||
Current assets |
||||||||||||
Cash and cash equivalents |
71,432,293 | 74,818,341 | 50,640,355 | |||||||||
Marketable securities - current |
3,830 | 5,307 | 29,339,926 | |||||||||
Accounts receivable - net |
1,246,371 | 982,186 | 1,297,785 | |||||||||
Prepaid expenses |
545,200 | 420,918 | 564,080 | |||||||||
Restricted cash |
1,000,000 | 1,000,000 | 8,990,666 | |||||||||
Other receivables |
112,993 | 74,327 | 129,126 | |||||||||
Other current assets |
225,086 | 258,117 | 195,998 | |||||||||
|
|
|
|
|
|
|||||||
Total current assets |
74,565,773 | 77,559,196 | 91,157,936 | |||||||||
Marketable securities - noncurrent |
0 | 0 | 4,744,000 | |||||||||
Investments |
4,519,147 | 5,798,904 | 5,780,778 | |||||||||
Property, plant & equipment-net |
1,390,711 | 1,502,697 | 1,663,424 | |||||||||
Intangible assets-net |
87,710 | 137,532 | 221,630 | |||||||||
Prepaid licensing and royalty fees |
238,611 | 3,150,519 | 4,382,772 | |||||||||
Other assets |
388,193 | 333,006 | 353,258 | |||||||||
|
|
|
|
|
|
|||||||
Total assets |
81,190,145 | 88,481,854 | 108,303,798 | |||||||||
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|
|||||||
Liabilities and equity |
||||||||||||
Short-term borrowings |
6,092,917 | 5,780,347 | 18,641,390 | |||||||||
Accounts payable |
319,601 | 280,738 | 770,965 | |||||||||
Accrued compensation |
759,260 | 672,966 | 795,431 | |||||||||
Accrued expenses |
2,978,563 | 2,233,313 | 3,464,652 | |||||||||
Unearned revenue |
1,750,253 | 1,591,386 | 1,945,945 | |||||||||
Other current liabilities |
1,701,754 | 1,632,963 | 1,718,709 | |||||||||
|
|
|
|
|
|
|||||||
Total current liabilities |
13,602,348 | 12,191,713 | 27,337,092 | |||||||||
Other liabilities |
1,937,878 | 1,937,864 | 1,938,256 | |||||||||
|
|
|
|
|
|
|||||||
Total liabilities |
15,540,226 | 14,129,577 | 29,275,348 | |||||||||
|
|
|
|
|
|
|||||||
GigaMedias shareholders equity |
65,649,919 | 74,352,277 | 79,017,995 | |||||||||
Noncontrolling interest |
0 | 0 | 10,455 | |||||||||
|
|
|
|
|
|
|||||||
Total equity |
65,649,919 | 74,352,277 | 79,028,450 | |||||||||
|
|
|
|
|
|
|||||||
Total liabilities and equity |
81,190,145 | 88,481,854 | 108,303,798 | |||||||||
|
|
|
|
|
|
GIGAMEDIA LIMITED
Reconciliations of Non-GAAP Results of Operations
Three months ended | Twelve months ended | |||||||||||||||||||
12/31/2015 | 9/30/2015 | 12/31/2014 | 12/31/2015 | 12/31/2014 | ||||||||||||||||
unaudited | unaudited | audited | unaudited | audited | ||||||||||||||||
USD | USD | USD | USD | USD | ||||||||||||||||
Reconciliation of Net (Loss) Income to EBITDA |
||||||||||||||||||||
Net (loss) income attributable to GigaMedia |
(8,902,651 | ) | (301,344 | ) | 5,436,920 | (2,587,885 | ) | (5,154,786 | ) | |||||||||||
Depreciation |
66,455 | 73,079 | 76,309 | 294,042 | 305,779 | |||||||||||||||
Amortization |
56,793 | 59,838 | 241,060 | 236,076 | 1,192,629 | |||||||||||||||
Interest income |
(62,201 | ) | (62,153 | ) | (146,450 | ) | (333,186 | ) | (681,833 | ) | ||||||||||
Interest expense |
27,418 | 23,934 | 80,344 | 181,429 | 243,037 | |||||||||||||||
Income tax (benefit) expense |
(429 | ) | 125 | (13,005 | ) | (13,824 | ) | (73,258 | ) | |||||||||||
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EBITDA |
(8,814,615 | ) | (206,521 | ) | 5,675,178 | (2,223,348 | ) | (4,168,432 | ) | |||||||||||
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