Note 16 - Unaudited Pro-Forma Operating Income for the Nine Months Ended September 30, 2014 and 2013
 9 Months Ended
Sep. 30, 2014
Disclosure Text Block Supplement [Abstract]  
Subsequent Event, Pro Forma Business Combinations or Disposals [Text Block]

16. Unaudited Pro- Forma Operating Income for the Nine Months Ended September 30, 2014 and 2013


The following table presents Unaudited Pro-Forma Operating Income (Loss) for the Company for the nine months ended September 30, 2014 and 2013 based on the assumption that both RMG and Symon had been acquired on January 1, 2012. These results are not, however, intended to reflect actual operations of the Company had the acquisitions occurred on January 1, 2012. Operating expenses do not included any acquisition related expenses. In addition, Revenue has been adjusted to reflect the reclassification of certain charges (reductions) of Revenue that were required under GAAP. These reductions of Revenue have been reclassified as Cost of Revenue in order to more accurately reflect Revenue, Cost of Revenue, and Gross Margin. This reclassification does not affect Gross Profit or Operating Income (Loss). The analysis includes the effect of the following entries required under GAAP purchase accounting guidelines:


 

●

Amortization expense includes amortization of the fair value Intangible Assets that were acquired.


 

●

Revenues have been reduced due to an adjustment of deferred revenue existing at the acquisition date to market value at the acquisition date.


   

Nine Months

Ended

September 30,

2014

   

Nine Months

Ended

September 30,

2013

 

Revenue

  $ 43,094,284     $ 49,932,797  

Cost of Revenue

    27,422,458       26,668,082  

Gross Profit

    15,671,826       23,264,715  

Operating Expenses

    61,086,182       33,083,865  

Operating Income (Loss)

    (45,414,356 )     (9,819,150 )

During the nine months ended September 30, 2014, Cost of Revenue includes a charge of $3,443,267 related to a loss recorded on a long-term contract and Operating Expenses include a charge of $24,421,849 related to the impairment of intangible assets and goodwill. Amounts shown for 2013 have been updated to include the financial results of the holding company which were previously excluded. The financial results of the holding company are included in the amounts shown for 2014.