ý
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
Quepasa Corporation | ||
(Exact name of registrant as specified in its charter) | ||
Nevada
|
86-0879433
|
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
|
incorporation
or organization)
|
Identification
No.)
|
324
Datura Street, Ste. 114
West
Palm Beach, FL
|
33401
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Large accelerated filer | o | Accelerated filer | o |
Non-accelerated filer | o (Do not check if a smaller reporting company) | Smaller reporting company | þ |
Class
|
Outstanding
at May 13, 2010
|
|
Common
Stock, $0.001 par value per share
|
12,960,211 shares
|
|
Page
|
||||
PART I. FINANCIAL INFORMATION | |||||
Item 1 |
Financial
Statements
|
1 | |||
Balance
Sheets as of March 31, 2010 (Unaudited) and December 31,
2009
|
1 | ||||
Statements
of Operations and Comprehensive Income (Loss) for the Three months Ended
March 31, 2010 and 2009 (Unaudited)
|
2 | ||||
Statement
of Changes in Stockholders’ Equity (Deficit) for the Three months Ended
March 31, 2010 (Unaudited)
|
3 | ||||
Statements
of Cash Flows for the Three months Ended March 31, 2010 and
2009 (Unaudited)
|
4 | ||||
Notes
to Unaudited Condensed Consolidated Financial Statements
|
5 | ||||
Item 2 |
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
15 | |||
Item 3 |
Quantitative
and Qualitative Disclosures about Market Risk
|
23 | |||
Item 4 |
Controls
and Procedures
|
23 | |||
Item 4T |
Controls
and Procedures
|
23 | |||
PART II. OTHER INFORMATION | |||||
Item 1 |
Legal
Proceedings
|
24 | |||
Item 1A |
Risk
Factors
|
24 | |||
Item 2 |
Unregistered
Sales of Equity Securities and Use of Proceeds
|
24 | |||
Item 3 |
Defaults
Upon Senior Securities
|
25 | |||
Item 4 |
(Removed
and Reserved)
|
25 | |||
Item 5 |
Other
Information
|
25 | |||
Item 6 |
Exhibits
|
25 | |||
SIGNATURES | 26 | ||||
INDEX TO EXHIBITS | 26 |
March
31,
|
December
31,
|
|||||||
2010
|
2009
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
CURRENT
ASSETS:
|
||||||||
Cash
and cash equivalents
|
$ | 639,186 | $ | 1,028,267 | ||||
Accounts
receivable, net of allowance of $37,000 and $37,000,
respectively
|
308,346 | 310,781 | ||||||
Other
current assets
|
141,659 | 190,513 | ||||||
Total
current assets
|
1,089,191 | 1,529,561 | ||||||
Property
and equipment, net
|
413,051 | 422,548 | ||||||
Note
receivable
|
250,000 | 250,000 | ||||||
Other
assets
|
48,779 | 48,282 | ||||||
Total
assets
|
$ | 1,801,021 | $ | 2,250,391 | ||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY (DEFICIT)
|
||||||||
CURRENT
LIABILITIES:
|
||||||||
Accounts
payable
|
$ | 67,051 | $ | 118,001 | ||||
Accrued
expenses
|
182,911 | 180,288 | ||||||
Deferred
revenue
|
250,000 | - | ||||||
Accrued
dividends
|
195,125 | 167,250 | ||||||
Unearned
grant income
|
13,962 | 13,810 | ||||||
Total
current liabilities
|
709,049 | 479,349 | ||||||
Notes
payable, net of unamortized discount of $1,859,206 and $1,929,885,
respectively
|
5,822,431 | 5,673,702 | ||||||
Total
liabilities
|
6,531,480 | 6,153,051 | ||||||
COMMITMENTS
AND CONTINGENCIES (see Note 5)
|
||||||||
STOCKHOLDERS’
EQUITY (DEFICIT):
|
||||||||
Preferred
stock, $.001 par value; authorized - 5,000,000 shares; 25,000
shares
|
||||||||
issued
and outstanding at March 31, 2010
|
25 | 25 | ||||||
Common
stock, $.001 par value; authorized - 50,000,000 shares;
12,949,711
|
||||||||
shares
issued and outstanding at March 31, 2010 and 12,743,111 shares issued and
outstanding at December 31, 2009
|
12,950 | 12,743 | ||||||
Additional
paid-in capital
|
157,292,939 | 155,425,366 | ||||||
Accumulated
deficit
|
(162,029,904 | ) | (159,334,739 | ) | ||||
Accumulated
other comprehensive income (loss)
|
(6,469 | ) | (6,055 | ) | ||||
Total
stockholders’ equity (deficit)
|
(4,730,459 | ) | (3,902,660 | ) | ||||
Total
liabilities and stockholders’ equity (deficit)
|
$ | 1,801,021 | $ | 2,250,391 |
For
the Three Months Ended
March 31, |
||||||||
2010 | 2009 | |||||||
REVENUES
|
$ | 321,970 | $ | 69,159 | ||||
OPERATING
COSTS AND EXPENSES:
|
||||||||
Sales
and marketing
|
173,696 | 119,239 | ||||||
Product
development and content
|
763,499 | 758,723 | ||||||
General
and administrative
|
1,795,371 | 1,480,526 | ||||||
Depreciation
and amortization
|
107,660 | 131,240 | ||||||
TOTAL
OPERATING COSTS AND EXPENSES
|
2,840,226 | 2,489,728 | ||||||
LOSS
FROM OPERATIONS
|
(2,518,256 | ) | (2,420,569 | ) | ||||
OTHER
INCOME (EXPENSE):
|
||||||||
Interest
income
|
345 | 11,234 | ||||||
Interest
expense
|
(149,904 | ) | (149,904 | ) | ||||
Other
income
|
525 | 5,439 | ||||||
TOTAL
OTHER INCOME (EXPENSE)
|
(149,034 | ) | (133,231 | ) | ||||
LOSS
BEFORE INCOME TAXES
|
(2,667,290 | ) | (2,553,800 | ) | ||||
Income
taxes
|
- | - | ||||||
NET
LOSS
|
$ | (2,667,290 | ) | $ | (2,553,800 | ) | ||
Preferred
stock dividends
|
(27,875 | ) | (27,875 | ) | ||||
NET
LOSS ALLOCABLE TO COMMON SHAREHOLDERS
|
$ | (2,695,165 | ) | $ | (2,581,675 | ) | ||
NET
LOSS PER COMMON SHARE ALLOCABLE TO
|
||||||||
COMMON
SHAREHOLDERS, BASIC AND DILUTED
|
$ | (0.21 | ) | $ | (0.20 | ) | ||
WEIGHTED
AVERAGE NUMBER OF SHARES
|
||||||||
OUTSTANDING,
BASIC AND DILUTED:
|
12,797,725 | 12,715,411 | ||||||
NET
LOSS
|
$ | (2,667,290 | ) | $ | (2,553,800 | ) | ||
Foreign
currency translation adjustment
|
(414 | ) | (1,256 | ) | ||||
COMPREHENSIVE
LOSS
|
$ | (2,667,704 | ) | $ | (2,555,056 | ) |
|
Accumulated
|
|
||||||||||||||||||||||||||||||
|
|
Additional
|
|
Other
|
Total
|
|||||||||||||||||||||||||||
Preferred Stock | Common Stock | Paid-in | Accumulated | Comprehensive | Stockholders' | |||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Deficit
|
Income
(Loss)
|
Equity
(Deficit)
|
|||||||||||||||||||||||||
Balance—December 31, 2009 | 25,000 | $ | 25 | 12,743,111 | $ | 12,743 | $ | 155,425,366 | $ | (159,334,739 | ) | $ | (6,055 | ) | $ | (3,902,660 | ) | |||||||||||||||
Vesting
of stock options
|
||||||||||||||||||||||||||||||||
for
compensation
|
1,433,633 | 1,433,633 | ||||||||||||||||||||||||||||||
Re-pricing
of warrants
|
147,813 | 147,813 | ||||||||||||||||||||||||||||||
Exercise
of stock options
|
200,000 | 200 | 259,800 | 260,000 | ||||||||||||||||||||||||||||
Issuance
of common stock
|
||||||||||||||||||||||||||||||||
for
professional services
|
6,600 | 7 | 26,327 | 26,334 | ||||||||||||||||||||||||||||
Preferred
stock dividends
|
(27,875 | ) | (27,875 | ) | ||||||||||||||||||||||||||||
Foreign
currency
|
||||||||||||||||||||||||||||||||
translation
adjustment
|
(414 | ) | (414 | ) | ||||||||||||||||||||||||||||
Net
loss
|
(2,667,290 | ) | (2,667,290 | ) | ||||||||||||||||||||||||||||
Balance—March 31, 2010 | 25,000 | $ | 25 | 12,949,711 | $ | 12,950 | $ | 157,292,939 | $ | (162,029,904 | ) | $ | (6,469 | ) | $ | (4,730,459 | ) |
For
the Three Months Ended March 31, |
||||||||
2010 | 2009 | |||||||
Cash
flows from operating activities:
|
||||||||
Net
loss
|
$ | (2,667,290 | ) | $ | (2,553,800 | ) | ||
Adjustments
to reconcile net loss to net cash used in operating
activities:
|
||||||||
Depreciation
and amortization
|
107,660 | 131,240 | ||||||
Repricing
of warrants
|
147,813 | - | ||||||
Vesting
of stock options for compensation
|
1,433,633 | 1,216,559 | ||||||
Issuance/
(cancellation) of common stock and stock options for professional
services
|
26,334 | (20,471 | ) | |||||
Loss
/ (Gain) on disposal of property and equipment
|
- | 4,334 | ||||||
Grant
income
|
152 | (6,763 | ) | |||||
Bad
debt expense
|
160 | 10,649 | ||||||
Non-cash
interest related to notes receivable
|
- | (8,247 | ) | |||||
Non-cash
interest related to notes payable
|
78,050 | 78,050 | ||||||
Amortization
of discounts on notes payable and debt issuance costs
|
71,854 | 71,854 | ||||||
Changes
in operating assets and liabilities:
|
||||||||
Accounts
receivable
|
2,275 | (42,656 | ) | |||||
Other
current assets and other assets
|
47,182 | 123,723 | ||||||
Accounts
payable and accrued expenses
|
(48,327 | ) | (77,589 | ) | ||||
Deferred
revenue
|
250,000 | - | ||||||
Net
cash used in operating activities
|
(550,504 | ) | (1,073,117 | ) | ||||
Cash
flows from investing activities:
|
||||||||
Purchase
of property and equipment
|
(98,163 | ) | - | |||||
Net
cash used in investing activities
|
(98,163 | ) | - | |||||
Cash
flows from financing activities:
|
||||||||
Proceeds
from exercise of stock options and warrants
|
260,000 | - | ||||||
Net
cash provided by financing activities
|
260,000 | - | ||||||
Effect
of foreign currency exchange rate on cash
|
(414 | ) | (1,256 | ) | ||||
Net
decrease in cash and cash equivalents
|
(389,081 | ) | (1,074,373 | ) | ||||
Cash
and cash equivalents at beginning of period
|
1,028,267 | 4,932,629 | ||||||
Cash
and cash equivalents at end of period
|
$ | 639,186 | $ | 3,858,256 | ||||
Supplemental
Disclosure of Cash Flow Information:
|
||||||||
Cash
paid for interest
|
$ | - | $ | - | ||||
Cash
paid for income taxes
|
$ | - | $ | - | ||||
Supplemental
Disclosure of Non-Cash Investing and Financing Activities:
|
||||||||
Reduction
in exercise prices of outstanding warrants recorded as additional paid-in
capital
|
$ | - | $ | 1,605,382 | ||||
Preferred
stock dividends accrued and charged to accumulated deficit
|
$ | 27,875 | $ | 27,875 |
March
31,
|
||||||||
|
2010
|
2009
|
||||||
Stock
options
|
7,372,822 | 6,723,020 | ||||||
Warrants
|
4,200,000 | 4,432,500 | ||||||
Total
|
11,572,822 | 11,155,520 |
March
31,
2010 |
December
31,
2009 |
|||||||
Computer
equipment
|
$ | 1,900,650 | $ | 1,796,197 | ||||
Vehicles
|
18,211 | 17,340 | ||||||
Office
furniture and equipment
|
126,042 | 123,256 | ||||||
Other
equipment
|
9,520 | 9,065 | ||||||
2,054,423 | 1,945,858 | |||||||
Less
accumulated depreciation
|
(1,641,372 | ) | (1,523,310 | ) | ||||
Property
and equipment—net
|
$ | 413,051 | $ | 422,548 |
MATT
|
RSI
|
Total
|
||||||||||||||
Notes
Payable, face amount
|
$ | 5,000,000 | $ | 2,000,000 | $ | 7,000,000 | ||||||||||
Discounts
on Notes:
|
||||||||||||||||
Revaluation
of Warrants
|
(1,341,692 | ) | (263,690 | ) | (1,605,382 | ) | ||||||||||
Termination
of Jet Rights
|
(878,942 | ) | - | (878,942 | ) | |||||||||||
Accumulated
Amortization
|
554,635 | 70,483 | 625,118 | |||||||||||||
Total
Discounts
|
(1,665,999 | ) | (193,207 | ) | (1,859,206 | ) | ||||||||||
Accrued
Interest
|
486,883 | 194,754 | 681,637 | |||||||||||||
Notes
Payable, net
|
$ | 3,820,884 | $ | 2,001,547 | $ | 5,822,431 |
Remainder
of 2010
|
$ | 84,006 | ||
2011
|
98,030 | |||
2012
|
70,028 | |||
$ | 252,064 |
Weighted
|
||||||||||||||||
Average
|
||||||||||||||||
Number of
|
Weighted-
|
Remaining
|
Aggregate
|
|||||||||||||
Stock
|
Average
|
Contractual
|
Intrinsic
|
|||||||||||||
Options
|
Options
|
Exercise Price
|
Life
|
Value
|
||||||||||||
Outstanding at December 31, 2009
(1)
|
105,000 | $ | 1.48 | |||||||||||||
Granted
|
- | $ | - | |||||||||||||
Exercised
|
(100,000 | ) | $ | 1.50 | ||||||||||||
Forfeited or expired
|
- | $ | - | |||||||||||||
Outstanding at March 31,
2010
|
5,000 | $ | 1.00 | 6.2 | $ | 13,750 | ||||||||||
Exercisable at March 31,
2010
|
5,000 | $ | 1.00 | 6.2 | $ | 13,750 |
(1)
|
Includes
100,000 outstanding and exercisable options to purchase common stock at a
weighted average exercise price of $1.50 per share being held by
consultants.
|
Weighted
|
||||||||||||||||
Average
|
||||||||||||||||
Number
of
|
Weighted-
|
Remaining
|
Aggregate
|
|||||||||||||
Stock
|
Average
|
Contractual
|
Intrinsic
|
|||||||||||||
Options
|
Options
|
Exercise
Price
|
Life
|
Value
|
||||||||||||
Outstanding
at December 31, 2009 (1) (2)
|
6,765,187 | $ | 1.18 | |||||||||||||
Granted
|
254,597 | $ | 3.07 | |||||||||||||
Exercised
|
(90,000 | ) | $ | 1.00 | ||||||||||||
Forfeited
or expired
|
(5,000 | ) | $ | 10.00 | ||||||||||||
Outstanding
at March 31, 2010 (3)
|
6,924,784 | $ | 1.24 | 7.9 | $ | 17,409,737 | ||||||||||
Exercisable
at March 31, 2010 (4)
|
4,817,879 | $ | 1.18 | 7.7 | $ | 12,472,849 |
(1)
|
Includes
516,000 outstanding options to purchase common stock at a weighted average
exercise price of $2.03 per share being held by
consultants.
|
(2)
|
Includes
1,649,000 performance-based options, of which 1,007,040 have been
expensed.
|
(3)
|
Includes
481,097 outstanding options to purchase common stock at a weighted average
exercise price of $2.11 per share being held by
consultants.
|
(4)
|
Includes
311,930 exercisable options to purchase common stock at a weighted average
exercise price of $2.33 per share being held by
consultants.
|
For
the Three Months Ended
|
||||||||
March
31,
|
||||||||
2010
|
2009
|
|||||||
Risk-free
interest rate:
|
2.62% | 1.70% | ||||||
Expected
term:
|
5.7
Years
|
6
Years
|
||||||
Expected
dividend yield:
|
- | - | ||||||
Expected
volatility:
|
93% | 142% |
Weighted
|
||||||||||||||||
Average
|
||||||||||||||||
Number
of
|
Weighted-
|
Remaining
|
Aggregate
|
|||||||||||||
Stock
|
Average
|
Contractual
|
Intrinsic
|
|||||||||||||
Options
|
Options
|
Exercise
Price
|
Life
|
Value
|
||||||||||||
Outstanding
at December 31, 2009 (1)
|
463,038 | $ | 1.39 | |||||||||||||
Granted
|
- | $ | - | |||||||||||||
Exercised
(2)
|
(10,000 | ) | $ | 2.00 | ||||||||||||
Forfeited
or expired (3)
|
(10,000 | ) | $ | 3.00 | ||||||||||||
Outstanding
at March 31, 2010
|
443,038 | $ | 1.34 | 0.6 | $ | 1,067,722 | ||||||||||
Exercisable
at March 31, 2010
|
184,599 | $ | 1.34 | 0.4 | $ | 444,884 |
(1)
|
Includes
20,000 outstanding options to purchase common stock at a weighted average
exercise price of $2.50 per share being held by
consultants.
|
(2)
|
Includes
10,000 options to purchase common stock at a weighted average exercise
price of $2.00 per share being held by
consultants.
|
(3)
|
Includes
10,000 options to purchase common stock at a weighted average exercise
price of $3.00 per share being held by
consultants.
|
Weighted-Average
|
||||||||
Shares
|
Share
Price
|
|||||||
Unvested
at January 1, 2010
|
- | $ | - | |||||
Granted
|
6,600 | $ | 3.99 | |||||
Vested
during period
|
(6,600 | ) | $ | 3.99 | ||||
Cancelled
during period
|
- | $ | - | |||||
Unvested
at March 31, 2010
|
- | $ | - |
Risk-free
interest rate:
|
4.68
|
%
|
||
Expected
term:
|
5
years
|
|||
Expected
dividend yield:
|
0.00
|
%
|
||
Expected
volatility:
|
163.73
|
%
|
Risk-free
interest rate:
|
2.81 | % | ||
Expected
term:
|
4.08
years
|
|||
Expected
dividend yield:
|
— | |||
Expected
volatility:
|
105.68 | % |
Risk-free
interest rate:
|
3.24 | % | ||
Expected
term:
|
6.08
years
|
|||
Expected
dividend yield:
|
— | |||
Expected
volatility:
|
105.68 | % |
Risk-free
interest rate:
|
2.81 | % | ||
Expected
term:
|
4.36
years
|
|||
Expected
dividend yield:
|
— | |||
Expected
volatility:
|
103.55 | % |
Outstanding
at December 31, 2009
|
4,200,000 | |||
Issued
|
— | |||
Exercised
|
— | |||
Expired
|
— | |||
Outstanding
at March 31, 2010
|
4,200,000 |
·
|
Quepasa
DSM – Launched in December 2009, this is a new tool that allows
advertisers and brands to deliver their brand message through a viral
contest engine that is shared and spread by the users across the most
popular social media sites. We believe this is a highly
effective ad product that allows brands to market their products to the
broader Latino demographic, without requiring the advertiser to have to
decide how to allocate its budget amongst numerous
websites. With Quepasa DSM, brands can target Latinos across
all social media properties, leveraging the user’s use of viral widgets
and sharing tools to spread the brand message. In the first
quarter of 2010, we generated $250,000 in DSM
revenue.
|
·
|
We
partnered with Moblyng & Viximo to offer a portfolio of social games
to the website and members’ mobile
phones.
|
·
|
A new
community was launched devoted to the Ultimate Fighting Championship
(“UFC”). The community features a UFC themed
contest.
|
•
|
Product Development and
Content Expenses: Product development and content expenses consist
of personnel costs associated with the development, testing and upgrading
of our website and systems, content fees, and purchases of specific
technology, particularly software and hardware related to our
infrastructure upgrade.
|
•
|
Sales and Marketing Expenses:
Sales and marketing expenses consist primarily of salaries and
expenses of marketing and sales personnel, and other marketing-related
expenses including our mass media-based branding and
advertising.
|
•
|
General and Administrative
Expenses: General and administrative expenses consist primarily of
costs related to corporate personnel, occupancy costs, general operating
costs and corporate professional fees, such as legal and accounting
fees.
|
•
|
Depreciation and Amortization
Expenses: Our depreciation and amortization are non-cash expenses
which have consisted primarily of depreciation related to our property and
equipment and the amortization pertaining to jet rights acquired in 2006
and disposed in 2008.
|
•
|
Other Income (Expense):
Other income (expense) consists primarily of interest earned,
interest expense and earned grant income. We have invested our
cash in AAA rated, fully liquid instruments. Interest expense relates to
our Note Purchase Agreements. Earned grant income represents
the amortized portion of a cash grant received from the Mexican government
for approved capital expenditures. The grant is being
recognized on a straight-line basis over the useful lives of the purchased
assets.
|
For
the the three months ended March 31,
|
||||||||||||||||
2010
|
2009
|
Change
($)
|
Change
(%)
|
|||||||||||||
REVENUES
|
$ | 321,970 | $ | 69,159 | $ | 252,811 | 366 | % | ||||||||
Sales
and marketing
|
173,696 | 119,239 | 54,457 | 46 | % | |||||||||||
Product
development and content
|
763,499 | 758,723 | 4,776 | 1 | % | |||||||||||
General
and administrative
|
1,795,371 | 1,480,526 | 314,845 | 21 | % | |||||||||||
Depreciation
and amortization
|
107,660 | 131,240 | (23,580 | ) | -18 | % | ||||||||||
Operating
Expenses
|
2,840,226 | 2,489,728 | 350,498 | 14 | % | |||||||||||
LOSS
FROM OPERATIONS
|
(2,518,256 | ) | (2,420,569 | ) | (97,687 | ) | 4 | % | ||||||||
OTHER
INCOME (EXPENSE):
|
||||||||||||||||
Interest
income
|
345 | 11,234 | (10,889 | ) | -97 | % | ||||||||||
Interest
expense
|
(149,904 | ) | (149,904 | ) | - | -100 | % | |||||||||
Other
income
|
525 | 5,439 | (4,914 | ) | -90 | % | ||||||||||
TOTAL
OTHER INCOME (EXPENSE)
|
(149,034 | ) | (133,231 | ) | (15,803 | ) | 12 | % | ||||||||
NET
LOSS
|
$ | (2,667,290 | ) | $ | (2,553,800 | ) | $ | (113,490 | ) | 4 | % |
For
the three months ended March 31,
|
||||||||
2010
|
2009
|
|||||||
Sales
and marketing
|
70,860 | 39,598 | ||||||
Product
and content development
|
184,728 | 224,435 | ||||||
General
and administrative
|
1,352,192 | 1,046,136 | ||||||
Total
Stock Based Compensation
|
1,607,780 | 1,310,169 |
For
the three months ended
March
31,
|
||||||||
2010 | 2009 | |||||||
Vesting
of stock options
|
$ | 1,433,633 | $ | 1,216,558 | ||||
Re-pricing
of warrants
|
147,813 | - | ||||||
Issuance
(cancellation) of common stock for professional services
|
26,334 | (20,471 | ) | |||||
Amortization
of prepaid expenses
|
- | 114,082 | ||||||
Total
Stock Based Compensation
|
$ | 1,607,780 | $ | 1,310,169 |
|
For
the Three Months Ended
March
31,
|
|||||||
|
2010
|
2009
|
||||||
Net
cash used in operating activities
|
$ | (550,504 | ) | $ | (1,073,117 | ) | ||
Net
cash used in investing activities
|
$ | (98,163 | ) | $ | - | |||
Net
cash provided by financing activities
|
$ | 260,000 | $ | - |
March 31,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
Cash
and cash equivalents
|
$ | 639,186 | $ | 1,028,267 | ||||
Total
assets
|
$ | 1,801,021 | $ | 2,250,391 | ||||
Percentage
of total assets
|
35 | % | 46 | % |
For
the three months ended
March 31, |
||||||||
2010
|
2009
|
|||||||
LOSS
FROM OPERATIONS
|
(2,518,256 | ) | (2,420,569 | ) | ||||
NON
CASH OPERATING EXPENSES
|
||||||||
Stock
based compensation expense
|
1,607,780 | 1,310,169 | ||||||
Depreciation
and amortization
|
107,660 | 131,240 | ||||||
TOTAL
NON CASH OPERATING EXPENSES
|
1,715,440 | 1,441,409 | ||||||
NET
CASH BURN
|
(802,816 | ) | (979,160 | ) | ||||
NET
MONTHLY CASH BURN RATE
|
(267,605 | ) | (326,387 | ) |
Name
or Class of Investor
|
Date
Sold
|
No. of
Securities
|
Consideration
|
Investor
relations
|
February
19, 2010
|
16,600
shares of common stock
|
Investor
Relation Services
|
Investor
|
February
19, 2010
|
1,000,000
warrants exercisable at $3.55 per share
|
Reduction
of exercise price of outstanding warrants
|
Employee
|
March
8, 2010
|
15,000
shares of common stock
|
Exercise
of stock options at an exercise price of $1.00 per
share
|
Employee
|
March
8, 2010
|
25,000
shares of common stock
|
Exercise
of stock options at an exercise price of $1.00 per
share
|
Consultant
|
March
12, 2010
|
10,000
shares of common stock
|
Exercise
of stock options at an exercise price of $2.00 per
share
|
Employee
|
March
16, 2010
|
50,000
shares of common stock
|
Exercise
of stock options at an exercise price of $1.00 per
share
|
Consultant
|
March
25, 2010
|
37,500
shares of common stock
|
Exercise
of stock options at an exercise price of $1.50 per
share
|
Consultant
|
March
30, 2010
|
50,000
shares of common stock
|
Exercise
of stock options at an exercise price of $1.50 per
share
|
Consultant
|
March
31, 2010
|
12,500
shares of common stock
|
Exercise
of stock options at an exercise price of $1.50 per
share
|
Quepasa
Corporation
|
||
May
17, 2010
|
|
/s/ John
Abbott
|
John
Abbott
|
||
Chief
Executive Officer
(Principal
Executive Officer)
|
||
|
||
May
17, 2010
|
/s/ Michael
Matte
|
|
Michael
Matte
|
||
Chief
Financial Officer
(Principal
Financial Officer)
|
Exhibit
|
Incorporated
by Reference
|
Filed
or Furnished
|
||||||||
No.
|
Exhibit
Description
|
Form
|
Date
|
Number
|
Herewith
|
|||||
3.1 |
Certificate
of Restated Articles of Incorporation
|
10-QSB
|
8/15/07
|
3.1
|
||||||
3.2 |
Certificate
of Designation
|
10-Q
|
7/25/08
|
3.2
|
||||||
3.3 |
Amended
and Restated Bylaws
|
8-K
|
7/3/07
|
3.3
|
||||||
3.4 | Amendment to the Amended and Restated Bylaws | 8-K | 5/14/10 | 3.1 | ||||||
31.1 |
Certification
of Principal Executive Officer (Section 302)
|
Filed
|
||||||||
31.2 |
Certification
of Principal Financial Officer (Section 302)
|
Filed
|
||||||||
32.1 |
Certification
of Principal Executive Officer and Principal Financial Officer
(Section 906)
|
Furnished
|