Authentidate Holding Corp. and its subsidiaries are engaged in themanufacture and distribution of document imaging systems, the sale of computer systems and related peripheral equipment, components and accessories, network and internet services and the development and sale of software-based authentication services. Authentidate Holding Corp. has a market cap of $47.33 million; its shares were traded at around $1.38 with and P/S ratio of 6.88. Authentidate Holding Corp. had an annual average earning growth of 0.4% over the past 10 years. Highlight of Business Operations: Cost of revenues increased to $870,000 for the quarter ended September 30, 2009, compared to $735,000 for the same period in the prior year. This increase is due primarily to higher license, maintenance and data center expenses as well as additional hardware expenses for certain projects.
Product development expenses were $507,000 for the quarter ended September 30, 2009, compared to $423,000 for the prior year period. Product development spending fluctuates period to period based on the amounts capitalized. Total spending for the quarter, including capitalized amounts, was $546,000 compared to $604,000 for the prior year period reflecting cost management activities and lower share based compensation expense for the period.
Net loss for the quarter ended September 30, 2009 was $2,113,000, or $0.06 per share, compared to $2,446,000, or $0.07 per share for the prior year period. The decrease in net loss for the year reflects the revenue growth, cost management activities and other matters discussed above.
At September 30, 2009, cash, cash equivalents and marketable securities amounted to approximately $3,757,000 and total assets at that date were $21,206,000. These amounts have decreased since June 30, 2009 by $2,807,000 and $1,064,000, respectively, as we utilized cash principally to fund operating losses, product development activities, joint venture investments, and changes in working capital during the period ended September 30, 2009. Cash used for the period includes investments in joint venture inventory and operations of approximately $226,000 and $113,000, respectively, a transfer of $220,000 to restricted cash to support certain projects in Germany and the prepayment of certain insurance premiums. We expect to continue to use cash to fund operating losses, product development activities, joint venture investments and capital expenditures for the foreseeable future.
We entered into the lease agreement for our executive offices on July 11, 2005. The lease is for a term of ten years and four months, with a commencement date of October 1, 2005 and covers approximately 19,700 total rentable square feet. The annual rent in the first year was $324,000 increasing to $512,000 in year 2 and increasing at regular intervals until year 10 when the annual rent will be approximately $561,000. The lease also provides us with a one-time option to renew the lease for a term of five years at the then-current market rate. We also have an option to terminate the lease five years and four months after the commencement date upon 12 months prior notice to the Landlord. If we exercise this option, we would be required to pay an early termination fee of approximately $568,000. As part of the lease agreement, we posted a letter of credit securing our lease payments of approximately $512,000.
At September 30, 2009, our unrestricted cash and marketable securities, totaled approximately $3,757,000, of which approximately $2,992,000 was invested in money market investments. The remainder of our cash was in non-interest bearing checking accounts used to pay operating expenses. For more information on our investments see Note 5 of Notes to our Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.
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