# Digital Turbine, Inc.: Form 10-Q for the period ended Dec 31, 2011

- Company: [Digital Turbine, Inc.](/companies/apps.md) (CIK 317788)
- Form: 10-Q
- Filed: 2012-02-24
- Accepted by EDGAR: Feb 24, 2012, 16:54 ET
- Period: 2011-12-31
- Accession: 0001144204-12-010879
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/317788/000114420412010879/v303090_10q.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/317788/000114420412010879/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2011-12-31.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2011-10-01 to 2011-12-31 | $2.0m | us-gaap:Revenues |
| Revenue | 9 months, 2011-04-01 to 2011-12-31 | $5.8m | us-gaap:Revenues |
| Cost of revenue | 3 months, 2011-10-01 to 2011-12-31 | $790.0k | us-gaap:CostOfRevenue |
| Cost of revenue | 9 months, 2011-04-01 to 2011-12-31 | $2.1m | us-gaap:CostOfRevenue |
| Gross profit | 3 months, 2011-10-01 to 2011-12-31 | $1.2m | us-gaap:GrossProfit |
| Gross profit | 9 months, 2011-04-01 to 2011-12-31 | $3.7m | us-gaap:GrossProfit |
| Research and development | 3 months, 2011-10-01 to 2011-12-31 | $430.0k | us-gaap:ResearchAndDevelopmentExpense |
| Research and development | 9 months, 2011-04-01 to 2011-12-31 | $1.6m | us-gaap:ResearchAndDevelopmentExpense |
| Operating income | 3 months, 2011-10-01 to 2011-12-31 | −$6.1m | us-gaap:OperatingIncomeLoss |
| Operating income | 9 months, 2011-04-01 to 2011-12-31 | −$7.3m | us-gaap:OperatingIncomeLoss |
| Interest expense | 3 months, 2011-10-01 to 2011-12-31 | $1.7m | us-gaap:InterestExpense |
| Interest expense | 9 months, 2011-04-01 to 2011-12-31 | $2.4m | us-gaap:InterestExpense |
| Income tax | 3 months, 2011-10-01 to 2011-12-31 | $32.0k | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 9 months, 2011-04-01 to 2011-12-31 | $64.0k | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2011-10-01 to 2011-12-31 | −$6.9m | us-gaap:NetIncomeLoss |
| Net income | 9 months, 2011-04-01 to 2011-12-31 | −$8.6m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2011-10-01 to 2011-12-31 | −$0.02 | us-gaap:EarningsPerShareBasicAndDiluted |
| Diluted EPS | 9 months, 2011-04-01 to 2011-12-31 | −$0.21 | us-gaap:EarningsPerShareBasicAndDiluted |
| Operating cash flow | 9 months, 2011-04-01 to 2011-12-31 | −$487.0k | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Cash and equivalents | at 2011-12-31 | $7.4m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2011-12-31 | $9.7m | us-gaap:AssetsCurrent |
| Total assets | at 2011-12-31 | $19.8m | us-gaap:Assets |
| Current liabilities | at 2011-12-31 | $20.5m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2011-12-31 | $37.3m | us-gaap:Liabilities |
| Long-term debt | at 2011-12-31 | $5.7m | us-gaap:LongTermDebtNoncurrent |
| Current portion of debt | at 2011-12-31 | $169.0k | us-gaap:LongTermDebtCurrent |
| Shareholders' equity | at 2011-12-31 | −$17.5m | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 52,773 characters.

The following discussion should be read in conjunction with, and is qualified in its entirety by, the Financial Statements and the Notes thereto included in this report. This discussion contains certain forward-looking statements that involve substantial risks and uncertainties. When used in this Quarterly Report on Form 10-Q, the words “anticipate,” “believe,” “estimate,” “expect” and similar expressions, as they relate to our management or us, are intended to identify such forward-looking statements. Our actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements as a result of a variety of factors including those set forth under “Risk Factors” in our Annual Report on Form 10-K, as amended, for the year ended March 31, 2011. Historical operating results are not necessarily indicative of the trends in operating results for any future period.

Unless the context otherwise indicates, the use of the terms “we,” “our”, “us”, “Mandalay Digital” or the “Company” refer to the business and operations of Mandalay Digital Group, Inc. through its operating and wholly-owned subsidiary, Twistbox Entertainment, Inc. (“Twistbox”).

### Historical Operations of Mandalay Digital Group, Inc.

Mandalay Digital Group, Inc., formerly known as NeuMedia, Inc., was originally incorporated in the State of Delaware on November 6, 1998 under the name eB2B Commerce, Inc. On April 27, 2000, the company merged into DynamicWeb Enterprises Inc., a New Jersey corporation, and changed its name to eB2B Commerce, Inc. On April 13, 2005, the company changed its name to Mediavest, Inc. On November 7, 2007, through a merger, the Company reincorporated in the State of Delaware under the name Mandalay Media, Inc. On May 11, 2010, the Company merged with a wholly-owned, newly formed subsidiary, changing its name to NeuMedia, Inc.

On February 6, 2012, the Company merged with a wholly-owned, newly formed subsidiary, changing its name to Mandalay Digital Group, Inc.

On October 27, 2004, and as amended on December 17, 2004, Mandalay Digital filed a plan for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York (the “Plan of Reorganization”). Under the Plan of Reorganization, as completed on January 26, 2005: (1) Mandalay Digital’s net operating assets and liabilities were transferred to the holders of the secured notes in satisfaction of the principal and accrued interest thereon; (2) $400,000 was transferred to a liquidation trust and used to pay administrative costs and certain preferred creditors; (3) $100,000 was retained by Mandalay Digital to fund the expenses of remaining public; (4) 3.5% of the new common stock of Mandalay Digital (140,000 shares) was issued to the holders of record of Mandalay Digital’s preferred stock in settlement of their liquidation preferences; (5) 3.5% of the new common stock of Mandalay Digital (140,000 shares) was issued to common stockholders of record as of January 26, 2005 in exchange for all of the outstanding shares of the common stock of the company; and (6) 93% of the new common stock of Mandalay Digital (3,720,000 shares) was issued to the sponsor of the Plan of Reorganization in exchange for $500,000 in cash. Through January 26, 2005, Mandalay Digital and its subsidiaries were engaged in providing business-to-business transaction management services designed to simplify trading between buyers and suppliers.

Prior to February 12, 2008, Mandalay Digital was a public shell company with no operations, and controlled by its significant stockholder, Trinad Capital Master Fund, L.P.

### SUMMARY OF THE TWISTBOX MERGER

Mandalay Digital entered into an Agreement and Plan of Merger on December 31, 2007, as subsequently amended by the Amendment to Agreement and Plan of Merger dated February 12, 2008 (the “Merger Agreement”), with Twistbox Acquisition, Inc., a Delaware corporation and a wholly-owned subsidiary of Mandalay Digital (“Merger Sub”), Twistbox Entertainment, Inc. (“Twistbox”), and Adi McAbian and Spark Capital, L.P., as representatives of the stockholders of Twistbox, pursuant to which Merger Sub would merge with and into Twistbox, with Twistbox as the surviving corporation (the “Merger”). The Merger was completed on February 12, 2008.

Pursuant to the Merger Agreement, upon the completion of the Merger, each outstanding share of Twistbox common stock, $0.001 par value per share, on a fully-converted basis, with the conversion on a one-for-one basis of all issued and outstanding shares of the Series A Convertible Preferred Stock of Twistbox and the Series B Convertible Preferred Stock of Twistbox, each $0.01 par value per share (the “Twistbox Preferred Stock”), converted automatically into and became exchangeable for Mandalay Digital common stock in accordance with certain exchange ratios set forth in the Merger Agreement. In addition, by virtue of the Merger, each outstanding Twistbox option to purchase Twistbox common stock issued pursuant to the Twistbox 2006 Stock Incentive Plan (the “Plan”) was assumed by Mandalay Digital, subject to the same terms and conditions as were applicable under such Plan immediately prior to the Merger, except that (a) the number of shares of Mandalay Digital common stock issuable upon exercise of each Twistbox option was determined by multiplying the number of shares of Twistbox common stock that were subject to such Twistbox option immediately prior to the Merger by 0.72967 (the “Option Conversion Ratio”), rounded down to the nearest whole number; and (b) the per share exercise price for the shares of Mandalay Digital common stock issuable upon exercise of each Twistbox option was determined by dividing the per share exercise price of Twistbox common stock subject to such Twistbox option, as in effect prior to the Merger, by the Option Conversion Ratio, subject to any adjustments required by the Internal Revenue Code. As part of the Merger, Mandalay Digital also assumed all unvested Twistbox options. The Merger consideration consisted of an aggregate of up to 12,325,000 shares of Mandalay Digital common stock, which included the conversion of all shares of Twistbox capital stock and the reservation of 2,144,700 shares of Mandalay Digital common stock required for assumption of the vested Twistbox options. Mandalay Digital reserved an additional 318,772 shares of Mandalay Digital common stock required for the assumption of the unvested Twistbox options. All warrants to purchase shares of Twistbox common stock outstanding at the time of the Merger were terminated on or before the effective time of the Merger.

Upon the completion of the Merger, all shares of the Twistbox capital stock were no longer outstanding and were automatically canceled and ceased to exist, and each holder of a certificate representing any such shares ceased to have any rights with respect thereto, except the right to receive the applicable merger consideration. Additionally, each share of the Twistbox capital stock held by Twistbox or owned by Merger Sub, Mandalay Digital or any subsidiary of Twistbox or Mandalay Digital immediately prior to the Merger, was canceled and extinguished as of the completion of the Merger without any conversion or payment in respect thereof. Each share of common stock, $0.001 par value per share, of Merger Sub issued and outstanding immediately prior to the Merger was converted upon completion of the Merger into one validly issued, fully paid and non-assessable share of common stock, $0.001 par value per share, of the surviving corporation.

As part of the Merger, Mandalay Digital agreed to guarantee up to $8,250,000 of Twistbox’s outstanding debt to ValueAct SmallCap Master Fund L.P. (“ValueAct” or “VAC”), with certain amendments. On July 30, 2007, Twistbox had entered into a Securities Purchase Agreement by and among Twistbox, the Subsidiary Guarantors (as defined therein) and ValueAct, pursuant to which ValueAct purchased a note in the amount of $16,500,000 (the “ValueAct Note” or the “VAC Note”) and a warrant which entitled ValueAct to purchase from Twistbox up to a total of 2,401,747 shares of Twistbox’s common stock (the “Warrant”). Twistbox and ValueAct - also entered into a Guarantee and Security Agreement by and among Twistbox, each of the subsidiaries of Twistbox, the Investors, as defined therein, and ValueAct, as collateral agent, pursuant to which the parties agreed that the ValueAct Note would be secured by substantially all of the assets of Twistbox and its subsidiaries (the “VAC Note Security Agreement”). In connection with the Merger, the Warrant was terminated and we issued two warrants in place thereof to ValueAct to purchase shares of our common stock. One of such warrants entitled ValueAct to purchase up to a total of 1,092,622 shares of our common stock at an exercise price of $7.55 per share. The other warrant entitled ValueAct to purchase up to a total of 1,092,621 shares of our common stock at an initial exercise price of $5.00 per share, which, if not exercised in full by February 12, 2009, would have been permanently increased to an exercise price of $7.55 per share. Both warrants were scheduled to expire on July 30, 2011. The warrants were subsequently modified on October 23, 2008 and cancelled on June 21, 2010, as set forth below. We also entered into a Guaranty (the “ValueAct Note Guaranty”) with ValueAct whereby Mandalay Digital agreed to guarantee Twistbox’s payment to ValueAct of up to $8,250,000 of principal under the ValueAct Note in accordance with the terms, conditions and limitations contained in the ValueAct Note, which was subsequently amended as set forth below. The financial covenants of the ValueAct Note were also amended, pursuant to which Twistbox was required to maintain a cash balance of not less than $2,500,000 at all times and Mandalay Digital is required to maintain a cash balance of not less than $4,000,000 at all times. The ValueAct Note was subsequently amended and restated as set forth below.

### SUMMARY OF THE AMV ACQUISITION

On October 23, 2008, Mandalay Digital consummated the acquisition of 100% of the issued and outstanding share capital of AMV Holding Limited, a United Kingdom private limited company (“AMV”) and 80% of the issued and outstanding share capital of Fierce Media Limited, United Kingdom private limited company (collectively the “Shares”). The acquisition of AMV is referred to herein as the “AMV Acquisition”. The aggregate purchase price (subject to adjustments as provided in the stock purchase agreement) for the Shares consisted of (i) $5,375,000 in cash; (ii) 4,500,000 shares of common stock, par value $0.0001 per share; (iii) a secured promissory note in the aggregate principal amount of $5,375,000 (the “AMV Note”); and (iv) additional earn-out amounts, if any, based on certain targeted earnings as set forth in the stock purchase agreement. The AMV Note was scheduled to mature on July 31, 2010, and bore interest at an initial rate of 5% per annum, subject to adjustment as provided therein.

In addition, also on October 23, 2008, in connection with the AMV Acquisition, Mandalay Digital, Twistbox and ValueAct entered into a Second Amendment to the ValueAct Note, which among other things, provided for a payment-in-kind election at the option of Twistbox, modified the financial covenants set forth in the ValueAct Note to require that Mandalay Digital and Twistbox maintain certain minimum combined cash balances and provided for certain covenants with respect to the indebtedness of Mandalay Digital and its subsidiaries. Also on October 23, 2008, AMV granted to ValueAct a security interest in its assets to secure the obligations under the ValueAct Note. In addition, Mandalay Digital and ValueAct entered into an allonge to each of those certain warrants issued to ValueAct in connection with the Merger, which, among other things, amended the exercise price of each of the warrants to $4.00 per share.

In addition, also on October 23, 2008, Mandalay Digital entered into a Securities Purchase Agreement with certain investors identified therein (the “Investors”), pursuant to which Mandalay Digital agreed to sell to the Investors in a private offering an aggregate of 1,685,394 shares of common stock and warrants to purchase 842,697 shares of common stock for gross proceeds to Mandalay Digital of $4,500,000. The warrants have a five year term and an exercise price of $2.67 per share. The funds were held in an escrow account pursuant to an Escrow Agreement, dated October 23, 2008 and were released to Mandalay Digital on or about November 8, 2008.

On August 14, 2009, the Company and ValueAct entered into a Second Allonge to Warrant to Purchase 1,092,621 shares of common stock (the “Second Allonge”), which amended that certain warrant to purchase 1,092,621 shares of the Company’s common stock, issued to ValueAct on February 12, 2008, as amended (the “ValueAct Warrant”). Pursuant to the Second Allonge, the exercise price of the ValueAct Warrant decreased from $4.00 per share to the lesser of $1.25 per share, or the exercise price per share for any warrant to purchase shares of the Company’s common stock issued by the Company to certain other parties. In addition, also on August 14, 2009, Mandalay Digital, Twistbox and ValueAct entered into a Third Amendment to the ValueAct Note. Pursuant to the Third Amendment, the maturity date was changed to July 31, 2010 and the interest rate of the ValueAct Note increased from 10% to 12.5%.

On January 25, 2010, Mandalay Digital, Twistbox and ValueAct entered into a Waiver to Senior Secured Note (the “Waiver”), pursuant to which ValueAct agreed to waive certain provisions of the ValueAct Note. Pursuant to the Waiver, subject to Twistbox’s compliance with certain conditions set forth in the Waiver, certain rights to prepay the ValueAct Note were extended from January 31, 2010 to March 1, 2010. In addition, subject to Twistbox’s compliance with certain conditions set forth in the Waiver, the timing obligation of Mandalay Digital and Twistbox to comply with the cash covenant set forth in the ValueAct Note was extended to March 1, 2010 and the minimum cash balance by which Twistbox and Mandalay Digital must maintain was increased to $1,600,000.

On February 25, 2010, Twistbox received a letter (the “Letter”) from ValueAct alleging certain events of default with respect to the ValueAct Note. The Letter claimed that an event of default had occurred and was continuing under the ValueAct Note as result of certain alleged defaults, including the failure to provide weekly evidence of compliance with certain of Twistbox’s and Mandalay Digital’s covenants under the ValueAct Note, the failure to comply with limitations on certain payments by Mandalay Digital and each of its subsidiaries, and the failure of Twistbox and Mandalay Digital to maintain minimum cash balances in deposit accounts of each of Twistbox and Mandalay Digital. The Letter also claimed that the Waiver had ceased to be effective as a result of the alleged failure of Mandalay Digital to comply with the conditions set forth in the Waiver. On May 10, 2010, Twistbox received from ValueAct a Notice of Event of Default and Acceleration (“Notice”) in which ValueAct stated that an event of default had occurred under the ValueAct Note as a result of Twistbox’s and Mandalay Digital’s failure to comply with the cash balance covenant under the ValueAct Note and, therefore, ValueAct accelerated all outstanding amounts payable by Twistbox under the ValueAct Note. In connection with the Notice, ValueAct instituted an administration proceeding in the United Kingdom against AMV.

On June 21, 2010, Mandalay Digital sold all of the operating subsidiaries of AMV to an entity controlled by ValueAct and certain of AMV’s founders in exchange for the release of $23,231,000 of secured indebtedness, comprising of a release of all amounts due and payable under the AMV Note and all amounts due and payable under the VAC Note except for $3,500,000 in principal (the “Restructure”). In connection with the Restructure, the ValueAct Note (as amended and restated, the “Amended ValueAct Note”), the Value Act Security Agreement and the Value Act Guaranty were amended and restated in their entirety. In addition, all warrants and common stock of Mandalay Digital held by ValueAct were cancelled and all warrants and common stock of Mandalay Digital held by AMV founders Nate MacLeitch and Jonathan Cresswell were repurchased by Mandalay Digital for a price of $0.02 per share.

Also on June 21, 2010, for purposes of capitalizing Mandalay Digital, Mandalay Digital sold and issued $2,500,000 of Senior Secured Convertible Notes due June 21, 2013 (the “New Senior Secured Notes” or the “Senior Debt”) to certain significant stockholders. The New Senior Secured Notes have a three year term and bear interest at a rate of 10% per annum payable in arrears semi-annually. Notwithstanding the foregoing, at any time on or prior to the 18th month following the original issue date of the New Senior Secured Notes, Mandalay Digital - may, at its option, in lieu of making any cash payment of interest, elect that the amount of any interest due and payable on any interest payment date on or prior to the 18th month following the original issue date of the New Senior Secured Notes be added to the principal due under the New Senior Secured Notes. The accrued and unpaid principal and interest due on the New Senior Secured Notes are convertible at any time at the election of the holder into shares of common stock of Mandalay Digital at a conversion price of US$0.15 per share, subject to adjustment. The New Senior Secured Notes are secured by a first lien on substantially all of the assets of Mandalay Digital and its subsidiaries. The Amended ValueAct Note is subordinated to the New Senior Secured Notes.

Each purchaser of a New Senior Secured Note also received a warrant (“Warrant”) to purchase shares of common stock of Mandalay Digital at an exercise price of $0.25 per share, subject to adjustment. For each $1 of New Senior Secured Notes purchased, the purchaser received a Warrant to purchase 3.33 shares of common stock of Mandalay Digital. Each Warrant has a five year term.

On December 16, 2011 the Amended ValueAct Note was purchased by Taja, LLC (“Taja”) and immediately amended to remove certain negative covenants (as amended, the “Taja Note”). The purchase of the ValueAct Note was independent of the Company, and the Company did not receive or pay out any cash related to this transaction.

### Overview

From February 12, 2008 to October 23, 2008, our sole operations were those of our wholly-owned subsidiary, Twistbox. In October 2008, we acquired AMV Holding Limited, a mobile media and marketing company. On June 21, 2010, we sold all of the operating subsidiaries of AMV.

Twistbox is a global, mobile data services company primarily focused on enabling and optimizing the development, distribution and billing of content and applications across mobile networks. Operating since 2003, Twistbox publishes content in over 28 countries with distribution representing more than five hundred million subscribers. Twistbox has developed an intellectual property portfolio that includes worldwide or territory exclusive mobile rights to content, a proprietary publishing platform that includes tools to automate device management and billing of content and applications; a mobile games development and distribution platform that automates the porting of mobile games and applications to over 1,500 handsets; a content standards and ratings system globally adopted by major wireless carriers to assist with the responsible deployment of age-verified programming and services; a suite of value added billing technologies that allow for in-application billing, and Digital Rights Management (DRM) solutions. Twistbox has leveraged its intellectual property and carrier-class technology to secure direct distribution and/or enabling agreements with leading mobile operators throughout Europe, North America and Latin America, including, among others, Vodafone, Telefonica, Orange, Hutchison’s 3, and SFR.

Twistbox maintains a global distribution agreement with Vodafone. Through this relationship, in certain markets Twistbox serves as one of Vodafone’s exclusive category portal managers. Twistbox has similar exclusive agreements with other operators in selected territories.

In addition to its carrier publishing and enabling business, Twistbox operates a mobile ad network and suite of direct to consumer services that are promoted through advertising, as well as from other mobile publishers. Payments for the Company’s direct to consumer services are processed through integration with the Company’s own mobile billing solutions, 3rd party mobile billing aggregators, and credit card processing companies.

Twistbox target customers are the lucrative, tech-savvy 18 to 40 year old demographic. This group is a leading consumer of new mobile handsets and represents more than 50% of mobile content consumption revenue globally. In addition, this group is very focused on consumer lifestyle brands and is much sought after by advertisers.

During the quarter, the Company purchased the assets of Digital Turbine. With the acquisition and integration of the assets of Digital Turbine, the Company will be able to provide a modular platform to new and existing carrier customers and original equipment manufacturers (OEMs). The platform can be integrated with different mobile operating systems to provide a more organized and unified experience for end-users of mobile content across search, discovery, billing, and delivery. Innovative aspects of the Digital Turbine platform include the Magnet toolbar, which allows carriers and OEMs to control the data presented to their users while giving them a more efficient way of finding and purchasing content.

### RESULTS OF OPERATIONS

|  | 3 months ended December 31, 2011 | 3 months ended December 31, 2010 | 9 Months Ended December 31, 2011 | 9 Months Ended December 31, 2010 | Year ended March 31, 2011 |
| --- | ---: | ---: | ---: | ---: | ---: |
| Revenues | $1,957 | $2,048 | $5,788 | $6,983 | $9,186 |
| Cost of revenues | 790 | 1,258 | 2,057 | 3,006 | 3,210 |
| Gross profit | 1,167 | 790 | 3,731 | 3,977 | 5,976 |
| SG&A | 7,281 | 2,844 | 11,002 | 8,976 | 11,368 |
| Amortization of intangible assets | - | 18 | - | 54 | 54 |
| Impairment of goodwill | - | 6,028 | - | 6,028 | 6,028 |
| Operating loss | (6,114) | (8,100) | (7,271) | (11,081) | (11,474) |
| Interest expense, net | (1,693) | (358) | (2,438) | (1,397) | (1,761) |
| Other income / (expenses) | 961 | 12 | 1,193 | (499) | (949) |
| Loss before income taxes | (6,846) | (8,446) | (8,516) | (12,977) | (14,184) |
| Income tax provision | (32) | (45) | (64) | (178) | (224) |
| Loss from continuing operations | (6,878) | (8,491) | (8,580) | (13,155) | (14,408) |
| Profit from discontinued operations, net of taxes | - | - | - | 709 | 809 |
| Gain on disposal of discontinued operations, net of taxes | - | - | - | 4,315 | 4,215 |
| Net (loss) income | $(6,878) | $(8,491) | $(8,580) | $(8,131) | $(9,384) |
| Basic and Diluted net income / (loss) per common share: |  |  |  |  |  |
| Continuing operations | $(0.16) | $(0.23) | $(0.21) | $(0.35) | $(0.38) |
| Discontinued operations | $- | $- | $- | $0.14 | $0.13 |
| Net loss | $(0.16) | $(0.23) | $(0.21) | $(0.22) | $(0.25) |
| Basic and Diluted weighted average shares outstanding | 41,978 | 36,174 | 41,812 | 37,159 | 37,664 |

### Comparison of the Three and Nine Months Ended December 31, 2011 and 2010

### Revenues

*(In thousands)*

*(In thousands)*

| Revenues by type: | Three Months Ended December 31, 2011 | 2010 | Nine Months Ended December 31, 2011 | 2010 |
| --- | ---: | ---: | ---: | ---: |
| Services | $461 | $149 | $930 | $974 |
| Content - Games | 76 | 242 | 391 | 842 |
| Content - Other | 904 | 1,285 | 3,273 | 4,253 |
| Advertising | 516 | 372 | 1,194 | 915 |
| Total | $1,957 | $2,048 | $5,788 | $6,983 |

Revenue has been analyzed based on the primary revenue drivers for the Company’s businesses, as follows:

“Services” includes carrier platform management, content aggregation services and development fees derived primarily as an outsourced extended services contract basis. Services revenue tends to be project-based, often resulting in significant variances from period to period, dependent on the timing of customers’ projects. The increase in Services revenue in the quarter ended December 31, 2011 is primarily the result of the completion of development projects completed by our technology and development team in the quarter.

“Content – Games” includes both licensed and internally developed games for use on mobile phones. The decline in revenue largely reflects a strategic decision to curtail investment in the development of games for on-deck carrier sales. We intend to focus on enabling this category of publishers and developers with sophisticated technologies that allow for more flexible business models and advanced application interaction. Games sales through our games platform in Germany have declined in the period, as a result of both our refocused strategy and an overall shift within the market ecosystem toward off-deck application storefronts.

“Content – Other” includes a broad range of licensed and internally developed products such as WAP, Video, Wallpaper, and Mobile TV. The decline in revenue year over year is attributable to several factors, but primarily due to the market shift away from on-deck discovery to off-deck discovery. The Company has invested and focused its efforts over the last year on re-engineering its products and marketing capabilities to address this market shift.

“Advertising” includes revenues derived from the sale of advertising inventory within our affiliate partners, internal mobile sites, and from the direct monetization and mediation of traffic through all of the aforementioned.

### Cost of Revenues

*(In thousands)*

*(In thousands)*

| Cost of revenues: | Three Months Ended December 31, 2011 | 2010 | Nine Months Ended December 31, 2011 | 2010 |
| --- | ---: | ---: | ---: | ---: |
| License fees | $733 | $1,172 | $1,885 | $2,747 |
| Other direct cost of revenues | 57 | 86 | 172 | 259 |
| Total cost of revenues | $790 | $1,258 | $2,057 | $3,006 |
| Revenues | $1,957 | $2,048 | $5,788 | $6,983 |
| Gross margin | 59.6% | 38.5% | 64.5% | 57.0% |

License fees represent costs payable to content providers for use of their brands and intellectual property in products sold. Our licensing agreements are mainly on a revenue-share basis. Margins in the current quarter are lower than the same quarter in the prior year. In the current year quarter, the Company improved margins through better optimization of content properties across its network of sites and distribution channels.

### Operating Expenses

*(In thousands)*

*(In thousands)*

|  | Three Months Ended December 31, 2011 | 2010 | Nine Months Ended December 31, 2011 | 2010 |
| --- | ---: | ---: | ---: | ---: |
| Product development expenses | $430 | $929 | $1,578 | $3,063 |
| Sales and marketing expenses | 204 | 597 | 660 | 1,647 |
| General and administrative expenses | 6,648 | 1,318 | 8,764 | 4,266 |
| Amortization of intangible assets | - | 18 | - | 54 |
| Impairment of goodwill and intangible assets | - | 6,028 | - | 6,028 |

Product development expenses include the costs to build, edit and optimize content formats for consumption on a mobile phone. Expenses in this area are primarily driven by personnel costs. Due to strategic changes in the focus of the development business as well as the consolidation of the device operating systems within the marketplace, headcount has been reduced from period to period. In the three months ended December 31, 2011, product development expenses included $31 that relates to an acquisition of an asset that was determined to be comprised of research and development expense.

Sales and marketing expenses represent the costs of sales and marketing personnel, and advertising and marketing campaigns. Selling costs, including headcount have been reduced from period to period in an effort to streamline the business.

General and administrative expenses represent management and support personnel costs in each of the subsidiary companies and related expenses, as well as professional and consulting costs, and other costs such as stock based compensation, depreciation and bad debt expenses. While salaries and related expenses decreased in the quarter, this was more than offset by the increase in consulting and professional fees, mainly incurred through stock compensation.

Amortization of intangibles represents amortization of the intangibles identified as part of the purchase price accounting related to the Twistbox acquisition and attributed to operating expenses. The reduction in amortization expense is the result of reduced basis following the impairment write down in the last fiscal year.

### Other Income and Expenses

*(In thousands)*

*(In thousands)*

|  | Three Months Ended December 31, 2011 | 2010 | Nine Months Ended December 31, 2011 | 2010 |
| --- | ---: | ---: | ---: | ---: |
| Interest and other (expense) | $(732) | $(346) | $(1,245) | $(1,896) |
| Profit from discontinued operations, net of taxes | $- | $- | $- | $709 |
| Gain on disposal of discontinued operations, net of taxes | $- | $- | $- | $4,315 |

Interest and other income/(expense) includes interest income on invested funds, interest expense related to the Taja Note and the Senior Secured Note, as well as financing costs related to the new short term debt, foreign exchange transaction losses, and the loss resulting from the change in fair value measurement of derivative liabilities. Interest costs are lower due to the significant reduction in debt that occurred in the first quarter of last year. Other income was the result of the settlement of debt with a service provider.

### Financial Condition

### Assets

Our current assets related to continuing operations totaled $9.7 million and $3.8 million at December 31, 2011 and March 31, 2011, respectively. Total assets related to continuing operations were $19.8 million and $14.2 million at December 31, 2011 and March 31, 2011, respectively. The decrease in both current and total assets is primarily due to lower cash and receivables balances.

### Liabilities and Working Capital

At December 31, 2011, our total liabilities were $37.0 million, compared to $11.6 million at March 31, 2011. The Company had negative working capital of $17.5 million at December 31, 2011 and positive working capital of $2.6 million at March 31, 2011. The change reflects an increase in cash offset by an increase in derivative liabilities of $26.1 million, and there was a decrease in accounts payable and other liabilities of $1.3 million.

### Liquidity and Capital Resources

*(In thousands)*

*(In thousands)*

| Consolidated Statement of Cash Flows Data: | Three Months Ended December 31, 2011 | 2010 | Nine Months Ended December 31, 2011 | 2010 |
| --- | ---: | ---: | ---: | ---: |
| Capital expenditures | $(10) | $(60) | $(10) | $(60) |
| Cash flows used in operating activities | (803) | (1,477) | (487) | (1,119) |
| Cash flows used in investing activities | (4) | (3,214) | - | (1,547) |
| Cash flows provided by financing activities | 6,989 | - | 6,989 | 2,500 |

The Company has incurred losses and negative annual cash flows since inception, although the operating loss narrowed from $13.1 million in fiscal year 2011 and continued to narrow to $8.6 million as of December 31, 2011.

The consolidated financial statements included in this Form 10-Q have been prepared assuming that the Company will continue as a going concern. This basis of accounting contemplates the ability of the Company to stem negative cash flows and achieve profitable operations, while undertaking the satisfaction of its liabilities in the normal course of business. The Company has significantly reduced personnel and other overhead costs over the last year to address a decline in revenues and margins, and to bring costs in line with revenues in order to achieve profitability.

The primary sources of liquidity have historically been issuance of common and preferred stock, and borrowings under credit facilities. This quarter the Company raised $7 million through convertible debt and in the future, we anticipate that our primary sources of liquidity will be cash generated by our operating activities, further borrowings or further capital raises. Assuming there are no further changes in expected sales and expense trends subsequent to December 31, 2011, the Company believes that its cash position will be sufficient to continue operations for the foreseeable future.

### Operating Activities

In the period ended December 31, 2011, we used $0.49 million of net cash, flowing from the overall loss of $8.6 million (offset by non-cash charges of $8.7 million that include depreciation, amortization, stock based compensation, debt discount, fair value of warrants and conversion options issued for financing costs, and other comprehensive income of $0.69 million). While items generating cash included decreases in accounts receivable of $0.8 million, the Company decreased accounts payable, accrued compensation and other liabilities by $1.3 million. The decrease in accounts payable and other liabilities was due mainly to a settlement with a supplier.

As of December 31, 2011, the Company had approximately $7.4 million of cash. We may require additional cash resources for working capital, or due to changed business conditions or other future developments, including any investments or acquisitions we may decide to pursue. If these sources are insufficient to satisfy our cash requirements, we may seek to sell additional debt securities or additional equity securities or to obtain a credit facility. The sale of convertible debt securities or additional equity securities could result in additional dilution to our stockholders. The incurrence of increased indebtedness would result in additional debt service obligations and could result in additional operating and financial covenants that would restrict our operations. In addition, there can be no assurance that any additional financing will be available on acceptable terms, if at all.

Debt obligations include interest payments under the Senior Debt facility, and also under the Amended Taja Note. Under the Senior Debt facility the Company may elect to add interest to the principal, until December 21, 2011, with the full amount payable at the end of the term. Under the Amended Taja Note, the Company may elect to add interest to the principal until June 21, 2013.

### Off-Balance Sheet Arrangements

We do not have any relationships with unconsolidated entities or financial partners, such as entities often referred to as structured finance or special purpose entities, which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. In addition, we do not have any undisclosed borrowings or debt, and we have not entered into any synthetic leases. We are, therefore, not materially exposed to any financing, liquidity, market or credit risk that could arise if we had engaged in such relationships.

### Stock Sales and Liquidity

In April 2011, the Company issued an aggregate of 497,244 shares of the Company’s common stock in private placements (1) to two former employees of a subsidiary of the Company as a severance payment, and (2) a consultant for services.

In April 2011, the Company issued warrants to purchase 75,000 shares of the Company’s common stock at an exercise price of $0.25 per share to a service provider of the Company as payment for past services to the Company.

In May 2011, the Company issued 150,000 shares of the Company’s common stock to a service provider to the Company as payment for past services to the Company.

In June 2011, the Company issued options to purchase an aggregate of 300,000 shares of the Company’s common stock at an exercise price of $0.47 per share to two advisory board members for consulting services.

In June 2011, the Company issued 150,000 shares of the Company’s common stock to an advisory board member for consulting services.

In December 2011, the Company issued 50,000 shares of the Company’s common stock in exchange for the assets of Digital Turbine Group, LLC.

In December 2011, in connection with the acquisition of assets from Digital Turbine Group, LLC, the Company issued 4,150,000 shares of the Company’s common stock to consultants as payment for services.

In December 2011, the Company issued an aggregate 10,000,000 of shares of the Company’s common stock to directors of the Company.

### Revenues

The discussion herein regarding our future operations pertain to the results and operations of Twistbox. Twistbox has historically generated and expects to continue to generate the majority of its revenues from mobile phone carriers that market, distribute and/or bill for content. These carriers generally charge a one-time purchase fee or a subscription fee on their subscribers’ phone bills when the subscribers download content published or enabled by Twistbox technology to their mobile phones. The carriers and 3rd party billing aggregators perform the billing and collection functions and generally remit to Twistbox a contractual percentage of their collected fee for each transaction. Twistbox recognizes as revenues the percentage of the fees due to it from the carrier. End users may also initiate the purchase of Twistbox’s content through other delivery mechanisms, with carriers or third parties being responsible for billing, collecting and remitting to Twistbox a portion of their fees. To date, Twistbox’s international revenues have been much more significant than its domestic revenues.

We believe that the improving quality and greater availability of smartphones is in turn encouraging consumer awareness and demand for high quality content with more flexible purchase options via their mobile devices. At the same time, carriers and major publishers are focusing on a small group of experienced enablers that have the ability to provide high-quality mobile content services consistently and cost-effectively with the ability to enable mobile billing across a wide variety of handsets and countries. Additionally, 3rd party platforms and publishers are seeking enablers that have the ability to distribute content and solutions globally through trusted relationships with carriers. We believe Twistbox has created the requisite development, distribution and billing technology and has achieved the scale to operate at a level few companies are capable of. We also believe that leveraging carrier and publisher relationships will allow us to grow our revenues without corresponding percentage growth in our infrastructure and operating costs. Our revenue growth rate will depend significantly on continued growth in the mobile content market, our ability to leverage our distribution and content relationships, and continued expansion of our ability to bill for content in new regional markets. Our ability to attain profitability will be affected by the extent to which we must incur additional expenses to expand our sales, marketing, development, and general and administrative capabilities to grow our business. The largest component of our expenses is personnel costs. Personnel costs consist of salaries, benefits and incentive compensation, including bonuses and stock-based compensation, for our employees. Our operating expenses will continue to grow in absolute dollars, assuming our revenues continue to grow. As a percentage of revenues, we expect these expenses to decrease.

Because many new mobile handset models are released in the fourth calendar quarter to coincide with the holiday shopping season, and because many end users download content soon after they purchase new handsets, we may experience seasonal sales increases based on this key holiday selling period. However, due to the time between handset purchases and content purchases, much of this holiday impact may occur in our March quarter. For a variety of reasons, we may experience seasonal sales decreases during the summer, particularly in Europe, which is predominantly reflected in our September quarter. In addition to these possible seasonal patterns, our revenues may be impacted by declines in users visiting carrier portals, new or changed carrier deals, and by changes in the manner that our major carrier partners market our content on their deck. Initial spikes in revenues as a result of successful launches or campaigns may create further aberrations in our revenue patterns.

### Cost of Revenues

Twistbox’s cost of revenues historically, and our cost of revenues going forward, consists primarily of royalties that we pay to content owners from which we license brands and other intellectual property. In addition, certain other direct costs such as platform and 3rd party delivery charges are included in cost of revenues. Our cost of revenues also includes noncash expenses—amortization of certain acquired intangible assets, and any impairment of guarantees. We generally do not pay advance royalties to licensors. Where we acquire rights in perpetuity or for a specific time period without revenue share or additional fees, we record the payments made to content owners as prepaid royalties on our balance sheet when payment is made to the licensor. We recognize royalties in cost of revenues based upon the revenues derived from the relevant product sold multiplied by the applicable royalty rate. If applicable, we will record an impairment of prepaid royalties or accrue for future guaranteed royalties that are in excess of anticipated recoupment. At each balance sheet date, we perform a detailed review of prepaid royalties and guarantees that considers multiple factors, including forecasted demand, anticipated share for specific content providers, development and launch plans, and current and anticipated sales levels. We expense the costs for development of our content prior to technological feasibility as we incur them throughout the development process, and we include these costs in product development expenses.

### Gross Margin

Our gross margin going forward will be determined principally by the mix of content that we deliver, and the costs of distribution. Our games based on licensed intellectual property require us to pay royalties to the licensor and the royalty rates in our licenses vary significantly. Our own in-house developed games or applications, which are based on our own intellectual property, require no royalty payments to licensors. Branded content requires royalty payment to the licensors, generally on a revenue share basis, while for acquired content we amortize the cost against revenues, and this will generally result in a lower cost associated with it. There are multiple internal and external factors that affect the mix of revenues between games and non-game content such as videos and mobile TV, and among licensed, developed and acquired content within those categories, including the overall number of licensed games and developed games available for sale during a particular period, the extent of our and our carriers’ marketing efforts for each type of content, and the deck placement of content on our carriers’ mobile handsets. We believe the success of any individual game during a particular period is affected by the recognizability of the title, its quality, its marketing and media exposure, its overall acceptance by end users and the availability of competitive games. For other content, we believe that success is driven by the carrier’s deck placement, the popularity of the content, by quality and by brand recognition. If our product mix shifts more to licensed content with higher royalty rates, our gross margin would decline. For other content as we increase scale, we believe that we will have the opportunity to move the mix towards higher margin acquired product. Our gross margin is also affected by direct costs such as platform and 3rd party delivery charges, and by periodic charges for impairment of intangible assets and of prepaid royalties and guarantees. These charges can cause gross margin variations, particularly from quarter to quarter.

### Operating Expenses

Our operating expenses going forward will primarily include product development expenses, sales and marketing expenses and general and administrative expenses. Our product development expenses consist primarily of salaries and benefits for employees working on creating, developing, editing, programming, porting, quality assurance, carrier certification and deployment of our content, on technologies related to interoperating with our various mobile phone carriers and on our internal platforms, payments to third parties for developing our content, and allocated facilities costs. We devote substantial resources to the development, supporting technologies, porting and quality assurance of our content. For acquired content, typically we will receive content from our licensors which must be edited for use on mobile phones, combined with other appropriate content, and packaged for end consumers. The process is made more complex by the need to deliver content on multiple carriers platforms and across a large number of different handsets.

***Sales and Marketing.*** Sales and marketing expenses historically, and our sales and marketing expenses going forward, will consist primarily of salaries, benefits and incentive compensation for sales, business development, project management and marketing personnel, expenses for advertising, trade shows, public relations and other promotional and marketing activities, expenses for general business development activities, travel and entertainment expenses and allocated facilities costs. We expect sales and marketing expenses to increase in absolute terms with the growth of our business and as we further promote our content and expand our business.

***General and Administrative.*** Our general and administrative expenses historically, and going forward, will consist primarily of salaries and benefits for general and administrative personnel, consulting fees, legal, accounting and other professional fees, information technology costs and allocated facilities costs. We expect that general and administrative expenses will increase in absolute terms as we hire additional personnel and incur costs related to the anticipated growth of our business and our operation as a public company. We also expect that these expenses will increase because of the additional costs to comply with the Sarbanes-Oxley Act and related regulation, our efforts to expand our operations and, in the near term, additional accounting costs related to our operation as a public company.

**A*****mortization of Intangible Assets.*** We will record amortization of acquired intangible assets that are directly related to revenue-generating activities as part of our cost of revenues and amortization of the remaining acquired intangible assets, such as customer lists and platform, as part of our operating expenses. We will record intangible assets on our balance sheet based upon their fair value at the time they are acquired. We will determine the fair value of the intangible assets using a contribution approach. We will amortize the amortizable intangible assets using the straight-line method over their estimated useful lives of three to five years.

### Estimates and Assumptions

The preparation of our financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

### Income Taxes

We provide for deferred income taxes using the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and the tax effect of net operating loss carry-forwards. A valuation allowance has been provided as it is more likely than not that the deferred assets will not be realized.

### Recent Accounting Pronouncements

#### Adopted Accounting Pronouncements

In December 2010, the FASB issued updated guidance on when and how to perform certain steps of the periodic goodwill impairment test for public entities that may have reporting units with zero or negative carrying amounts. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2010, with early adoption prohibited. It is applicable to the Company’s fiscal year beginning April 1, 2011. The Company evaluated this guidance, and determined it doesn’t have a material effect on its consolidated financial statements.

In December 2010, the FASB also issued guidance to clarify the reporting of pro forma financial information related to business combinations of public entities and to expand certain supplemental pro forma disclosures. This guidance is effective prospectively for business combinations that occur on or after the beginning of the fiscal year beginning on or after December 15, 2010, with early adoption permitted. It is applicable to the Company’s fiscal year beginning April 1, 2011. The Company evaluated this guidance, and determined it doesn’t have a material effect on its consolidated financial statements.

#### Recently Issued Accounting Pronouncements

In May 2011, the FASB issued guidance to amend certain measurement and disclosure requirements related to fair value measurements to improve consistency with international reporting standards. This guidance is effective prospectively for public entities for interim and annual reporting periods beginning after December 15, 2011, with early adoption by public entities prohibited, and is applicable to the Company’s fiscal quarter beginning January 1, 2012. The Company is currently evaluating this guidance, but does not expect its adoption will have a material effect on its consolidated financial statements.

In June 2011, the FASB issued new guidance on the presentation of comprehensive income that will require a company to present components of net income and other comprehensive income in one continuous statement or in two separate, but consecutive statements. There are no changes to the components that are recognized in net income or other comprehensive income under current GAAP. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2011, with early adoption permitted. It is applicable to the Company’s fiscal year beginning April 1, 2012. The Company is currently evaluating this guidance, but does not expect its adoption will have a material effect on its consolidated financial statements.

In September 2011, the Financial Accounting Standards Board (FASB) issued amended accounting guidance related to goodwill impairment testing. The new guidance provides the option to perform a qualitative assessment by applying a more likely than not scenario to determine whether the fair value of a reporting unit is less than its carrying amount, which may then allow a company to skip the annual two-step quantitative goodwill impairment test depending on the determination. The amended guidance is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Earlier adoption is permitted. Management does not expect the adoption of the amended guidance to have a material impact on the Company’s consolidated financial statements.

Other recent authoritative guidance issued by the FASB (including technical corrections to the FASB Accounting Standards Codification), the American Institute of Certified Public Accountants, and the Securities and Exchange Commission (“SEC”) did not, or are not expected to have a material effect on the Company’s consolidated financial statements.

## Market risk

As filed, 3,046 characters.

### Interest Rate and Credit Risk

Our current operations have exposure to interest rate risk that relates primarily to our investment portfolio. All of our current investments are classified as cash equivalents or short-term investments and carried at cost, which approximates market value. We do not currently use or plan to use derivative financial instruments in our investment portfolio. The risk associated with fluctuating interest rates is limited to our investment portfolio, and we do not believe that a change in interest rates would have a significant impact on our interest income, operating results or liquidity.

Currently, our cash and cash equivalents are maintained by financial institutions in the United States, Germany, the United Kingdom, Poland, Argentina and Brazil and our current deposits are likely in excess of insured limits. We believe that the financial institutions that hold our investments are financially sound and, accordingly, minimal credit risk exists with respect to these investments. Our accounts receivable primarily relate to revenues earned from domestic and international mobile phone carriers. We perform ongoing credit evaluations of our carriers’ financial condition but generally require no collateral from them. As of December 31, 2011, our largest customer (in multiple territories) represented approximately 49% of our gross accounts receivable outstanding.

### Foreign Currency Risk

The functional currencies of our United States and German operations are the United States Dollar, or USD, and the Euro, respectively. A significant portion of our business is conducted in currencies other than the USD or the Euro. Our revenues are usually denominated in the functional currency of the carrier. Operating expenses are usually in the local currency of the operating unit, which mitigates a portion of the exposure related to currency fluctuations. Intercompany transactions between our domestic and foreign operations are denominated in either the USD or the Euro. At month-end, foreign currency-denominated accounts receivable and intercompany balances are marked to market and unrealized gains and losses are included in other income (expense), net. Our foreign currency exchange gains and losses have been generated primarily from fluctuations in the Euro and pound sterling versus the USD and in the Euro versus the pound sterling. In the future, we may experience foreign currency exchange losses on our accounts receivable and intercompany receivables and payables. Foreign currency exchange losses could have a material adverse effect on our business, operating results and financial condition.

### Inflation

We do not believe that inflation has had a material effect on our business, financial condition or results of operations. If our costs were to become subject to significant inflationary pressures, we might not be able to offset these higher costs fully through price increases. Our inability or failure to do so could harm our business, operating results and financial condition.

## Controls and procedures

As filed, 1,481 characters.

### Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our principal executive officer and principal financial officer, evaluated the effectiveness, as of the end of the period covered by this report, of our disclosure controls and procedures, as such term is defined in Securities Exchange Act of 1934, as amended (“Exchange Act”), Rule 13a-15(e). Based on this evaluation, our principal executive officer and principal financial officer concluded that, as of such date, the Company’s disclosure controls and procedures were effective.

Disclosure controls and procedures are designed to ensure that information required to be disclosed by us in our Exchange Act reports is recorded, processed, summarized, and reported, within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

### Changes in Controls and Procedures

There were no changes in our internal control over financial reporting or in other factors identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13(a)-15 and 15(d)-15 that occurred during the third quarter ended December 30, 2011 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

## Risk factors

As filed, 223 characters.

There have been no material changes in our risk factors from those disclosed in our Annual Report on Form 10-K for the year ended March 31, 2011 and our Quarterly Report on Form 10-Q for the period ended September 30, 2011.

Filed Feb 24, 2012.
Source: SEC EDGAR, the filing index for accession 0001144204-12-010879. Last ingested by Listed: Nov 10, 2026, 03:21 ET. No prices; not investment advice.