About NeuLion
NeuLion, Inc. (TSX: NLN) offers the true end-to-end solution for delivering live and on-demand content to Internet-enabled devices. NeuLion enables content owners and distributors, cable operators and telecommunications companies to capitalize on the massive consumer demand for viewing video content on PCs, smartphones, iPads and other similar devices. NeuLion's customers include major entertainment, sports, global content and news companies. NeuLion is based in Plainview, NY. For more information about NeuLion, visit www.neulion.com.
Forward-Looking Statements
Certain statements herein are forward-looking statements and represent NeuLion's current intentions in respect of future activities. Forward-looking statements can be identified by the use of the words "will," "expect," "seek," "anticipate," "believe," "plan," "estimate," "expect," and "intend" and statements that an event or result "may," "will," "can,""should," "could," or "might" occur or be achieved and other similar expressions. These statements, in addressing future events and conditions, involve inherent risks and uncertainties. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this release are based upon what management believes to be reasonable assumptions, NeuLion cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this release and NeuLion assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law. Many factors could cause NeuLion's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including: our ability to realize some or all of the anticipated benefits of our partnerships; general economic and market segment conditions; our customers' subscriber levels and financial health; our ability to pursue and consummate acquisitions in a timely manner; our continued relationships with our customers; our ability to negotiate favorable terms for contract renewals; competitor activity; product capability and acceptance rates; technology changes; regulatory changes; foreign exchange risk; interest rate risk; and credit risk. A more detailed assessment of the risks that could cause actual results to materially differ from current expectations is contained in the "Risk Factors" section of NeuLion's Annual Report on Form 10-K for the fiscal year ended December 31, 2012, which is available on www.sec.gov and filed on www.sedar.com.
NEULION, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Expressed in U.S. dollars, unless otherwise noted) March 31, December 31, 2013 2012 (unaudited) $ $ ------------ ------------ASSETSCurrentCash and cash equivalents 15,209,659 11,108,107Accounts receivable, net of allowance for doubtful accounts of $85,592 and $85,882, respectively 4,442,647 4,193,949Other receivables 346,563 348,891Inventory 550,340 416,541Prepaid expenses and deposits 936,531 1,185,051Due from related parties 773,672 899,967 ------------ ------------Total current assets 22,259,412 18,152,506Property, plant and equipment, net 3,396,864 3,446,648Intangible assets, net 3,366,195 4,015,301Goodwill 11,327,626 11,327,626Other assets 88,873 161,913 ------------ ------------Total assets 40,438,970 37,103,994 ============ ============LIABILITIES AND EQUITYCurrentAccounts payable 13,055,780 9,813,237Accrued liabilities 4,854,975 4,766,668Due to related parties 12,829 12,282Deferred revenue 5,875,222 5,715,102Convertible note, net of discount 406,554 320,560 ------------ ------------Total current liabilities 24,205,360 20,627,849Long-term deferred revenue 1,056,894 1,134,075Other long-term liabilities 335,811 357,852Deferred tax liability 929,422 911,978 ------------ ------------Total liabilities 26,527,487 23,031,754 ------------ ------------Redeemable preferred stock, net (par value: $0.01; authorized: 50,000,000; issuedand outstanding: 28,089,083) Class 3 Preference Shares (par value: $0.01; authorized: 17,176,818; issued and outstanding: 17,176,818) 10,000,000 10,000,000 Class 4 Preference Shares (par value: $0.01; authorized; 10,912,265; issued and outstanding: 10,912,265) 4,902,206 4,894,683 ------------ ------------Total redeemable preferred stock 14,902,206 14,894,683 ------------ ------------Stockholders' deficitCommon stock (par value: $0.01; authorized: 300,000,000; issued and outstanding: 164,207,147) 1,642,072 1,642,072Additional paid-in capital 83,252,723 83,138,137Promissory notes receivable (209,250) (209,250)Accumulated deficit (85,676,268) (85,393,402) ------------ ------------Total stockholders' deficit (990,723) (822,443) ------------ ------------Total liabilities and stockholders' deficit 40,438,970 37,103,994 ============ ============ NEULION, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (unaudited) (Expressed in U.S. dollars, unless otherwise noted) Three months ended March 31, -------------------------- 2013 2012 $ $ ------------ ------------Revenue Services revenue 11,674,356 9,831,354 Equipment revenue 225,592 537,162 ------------ ------------ 11,899,948 10,368,516 ------------ ------------Costs and Expenses Cost of services revenue, exclusive of depreciation and amortization 3,250,293 4,047,543 Cost of equipment revenue 165,494 466,693 Selling, general and administrative, including stock-based compensation 5,929,039 6,464,858 Research and development 1,699,366 1,556,550 Depreciation and amortization 1,025,142 1,238,600 ------------ ------------ 12,069,334 13,774,244 ------------ ------------Operating loss (169,386) (3,405,728) ------------ ------------Other income (expense) Foreign exchange (13,810) (13,881) Interest (4,304) 2,246 Discount on convertible note (77,922) - ------------ ------------ (96,036) (11,635) ------------ ------------Net and comprehensive loss before income taxes (265,422) (3,417,363) Income tax provision (17,444) (127,000) ------------ ------------Net and comprehensive loss (282,866) (3,544,363) ============ ============Net loss per weighted average number of shares of common stock outstanding - basic and diluted $ (0.00) $ (0.03) ============ ============Weighted average number of shares of common stock outstanding - basic and diluted 164,207,147 140,173,684 ============ ============ NEULION, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (Expressed in U.S. dollars, unless otherwise noted) Three months ended March 31, ------------------------ 2013 2012 $ $ ----------- -----------OPERATING ACTIVITIESNet loss (282,866) (3,544,363)Adjustments to reconcile net loss to cash provided by (used in) operating activities Depreciation and amortization 1,025,142 1,238,600 Discount on convertible note 77,922 - Stock-based compensation 121,626 233,424 Income taxes 17,444 127,000Changes in operating assets and liabilities Accounts receivable (248,698) 632,472 Inventory (133,799) (94,492) Prepaid expenses, deposits and other assets 321,560 176,035 Other receivables 2,328 34,309 Due from related parties 134,367 (203,509) Accounts payable 3,242,543 (75,059) Accrued liabilities 88,790 509,328 Deferred revenue 82,939 (1,708,311) Long-term liabilities (22,041) (20,034) Due to related parties 547 2,958 ----------- -----------Cash provided by (used in) operating activities 4,427,804 (2,691,642) ----------- -----------INVESTING ACTIVITIESPurchase of property, plant and equipment (326,252) (322,047) ----------- -----------Cash used in investing activities (326,252) (322,047) ----------- -----------Net increase (decrease) in cash and cash equivalents during the period 4,101,552 (3,013,689)Cash and cash equivalents, beginning of period 11,108,107 12,346,882 ----------- -----------Cash and cash equivalents, end of period 15,209,659 9,333,193 =========== ===========
