Delaware
|
58-1972600
|
(State
or Other Jurisdiction
|
(I.R.S.
Employer Identification No.)
|
of
Incorporation or Organization)
|
|
One
Landmark Square, Stamford, Connecticut
|
06901
|
(Address
of Principal Executive Offices)
|
(Zip
Code)
|
Title
of each class
|
Name
of each exchange on which registered
|
None
|
Not
applicable
|
PAGE
|
||
PART
I
|
||
ITEM
1.
|
BUSINESS
|
1
|
ITEM
1A.
|
RISK
FACTORS
|
4
|
ITEM
1B.
|
UNRESOLVED
STAFF COMMENTS
|
10
|
ITEM
2.
|
PROPERTIES
|
10
|
ITEM
3.
|
LEGAL
PROCEEDINGS
|
10
|
ITEM
4.
|
(REMOVED
AND RESERVED)
|
10
|
PART
II
|
|
|
ITEM
5.
|
MARKET
FOR REGISTRANT’S COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS AND ISSUER PURCHASES OF EQUITY
SECURITIES
|
11
|
ITEM
6.
|
SELECTED
FINANCIAL DATA
|
14
|
ITEM
7.
|
MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
|
15
|
ITEM
7A.
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
21
|
ITEM
8.
|
FINANCIAL
STATEMENTS AND SUPPLEMENTAL DATA
|
22
|
ITEM
9.
|
CHANGES
IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
|
41
|
ITEM
9A.
|
CONTROLS
AND PROCEDURES
|
41
|
ITEM
9B
|
OTHER
INFORMATION
|
41
|
|
||
PART
III
|
||
ITEM
10.
|
DIRECTORS
AND EXECUTIVE OFFICERS OF THE REGISTRANT
|
42
|
ITEM
11.
|
EXECUTIVE
COMPENSATION
|
42
|
ITEM
12.
|
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
|
42
|
ITEM
13.
|
CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS
|
42
|
ITEM
14.
|
PRINCIPAL
ACCOUNTANT FEES AND SERVICES
|
42
|
PART
IV
|
||
ITEM
15.
|
EXHIBITS,
FINANCIAL STATEMENT SCHEDULES
|
43
|
SIGNATURES
|
45
|
|
EXHIBIT
INDEX
|
48
|
High
|
Low
|
|||||||
Calendar
Year 2010
|
||||||||
First
Quarter (through March 5, 2010)
|
$ | 4.55 | $ | 4.20 | ||||
Year
ended December 31, 2009
|
||||||||
First
Quarter
|
$ | 4.34 | $ | 3.85 | ||||
Second
Quarter
|
$ | 4.29 | $ | 3.79 | ||||
Third
Quarter
|
$ | 4.40 | $ | 3.90 | ||||
Fourth
Quarter
|
$ | 4.60 | $ | 4.21 | ||||
Year
ended December 31, 2008
|
||||||||
First
Quarter
|
$ | 6.47 | $ | 5.60 | ||||
Second
Quarter
|
$ | 6.42 | $ | 5.55 | ||||
Third
Quarter
|
$ | 5.85 | $ | 5.01 | ||||
Fourth
Quarter
|
$ | 5.20 | $ | 4.02 |
12/31/04
|
12/31/05
|
12/31/06
|
12/31/07
|
12/31/08
|
12/31/09
|
|||||||||||||||||||
CLARUS
CORPORATION
|
$ | 100.00 | $ | 92.78 | $ | 78.33 | $ | 65.56 | $ | 47.22 | $ | 47.22 | ||||||||||||
NASDAQ
NATIONAL MARKET
COMPOSITE
|
$ | 100.00 | $ | 101.38 | $ | 111.03 | $ | 121.92 | $ | 72.49 | $ | 104.31 | ||||||||||||
THE
RUSSELL 2000 INDEX
|
$ | 100.00 | $ | 103.32 | $ | 120.89 | $ | 117.57 | $ | 76.65 | $ | 95.98 |
Plan Category
|
(A)
Number of
securities to be
issued upon
exercise of
outstanding
options, warrants
and rights
|
(B)
Weighted-
average exercise
price of
outstanding
options, warrants
and rights
|
(C)
Number of securities remaining
available for future issuance under
equity compensation plans
(excluding securities reflected in
column (A))
|
|||||||||
Equity
compensation plans approved by security holders (1)
|
1,368,750 | $ | 5.76 | 4,977,437 | ||||||||
Equity
compensation plans not approved by security holders (2) (3)
(4)
|
1,100,000 | $ | 7.83 | — | ||||||||
Total
|
2,468,750 | $ | 6.68 | 4,977,437 |
Years
ended December 31,
|
||||||||||||||||||||
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||
(in
thousands, except per share data)
|
||||||||||||||||||||
Statement
of Operations Data:
|
||||||||||||||||||||
Operating
expenses:
|
||||||||||||||||||||
General
and administrative
|
3,597 | 4,517 | 3,767 | 3,530 | 3,504 | |||||||||||||||
Transaction
expense
|
1,613 | — | (13 | ) | 1,431 | (59 | ) | |||||||||||||
Depreciation
|
342 | 356 | 359 | 346 | 334 | |||||||||||||||
Total
Operating Expenses
|
5,552 | 4,873 | 4,113 | 5,307 | 3,779 | |||||||||||||||
Operating
Loss
|
(5,552 | ) | (4,873 | ) | (4,113 | ) | (5,307 | ) | (3,779 | ) | ||||||||||
Other
(expense) income
|
— | (2 | ) | (6 | ) | — | (2 | ) | ||||||||||||
Interest
income
|
701 | 2,473 | 4,239 | 4,016 | 2,490 | |||||||||||||||
Net
(Loss) Income Before Income Tax
|
$ | (4,851 | ) | $ | (2,402 | ) | $ | 120 | $ | (1,291 | ) | $ | (1,291 | ) | ||||||
Income
Tax (Benefit) Provision
|
(6 | ) | — | 3 | — | — | ||||||||||||||
Net
(Loss) Income
|
$ | (4,845 | ) | $ | (2,402 | ) | $ | 117 | $ | (1,291 | ) | $ | (1,291 | ) | ||||||
(Loss)
Income Per Share
|
||||||||||||||||||||
Basic
|
$ | (0.29 | ) | $ | (0.14 | ) | $ | 0.01 | $ | (0.08 | ) | $ | (0.08 | ) | ||||||
Diluted
|
$ | (0.29 | ) | $ | (0.14 | ) | $ | 0.01 | $ | (0.08 | ) | $ | (0.08 | ) | ||||||
Weighted
Average Common Shares Outstanding
|
||||||||||||||||||||
Basic
|
16,867 | 16,867 | 16,658 | 16,613 | 16,329 | |||||||||||||||
Diluted
|
16,867 | 16,867 | 17,051 | 16,613 | 16,329 |
As of December 31,
|
||||||||||||||||||||
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||
Balance
Sheet Data:
|
||||||||||||||||||||
Cash
and cash equivalents
|
$ | 58,363 | $ | 19,342 | $ | 41,886 | $ | 1,731 | $ | 23,270 | ||||||||||
Marketable
securities
|
$ | 24,059 | $ | 66,670 | $ | 45,223 | $ | 82,634 | $ | 61,601 | ||||||||||
Total
assets
|
$ | 83,791 | $ | 87,177 | $ | 88,680 | $ | 86,673 | $ | 88,278 | ||||||||||
Total
stockholders' equity
|
$ | 81,632 | $ | 86,384 | $ | 87,719 | $ | 85,716 | $ | 86,609 |
Options Granted
|
May 28, 2009
|
June 18, 2009
|
||||||
Option
Vesting Period
|
Immediate
|
One
year
|
||||||
Grant
Price
|
$ | 4.06 | $ | 4.00 | ||||
Dividend
Yield
|
0.00 | % | 0.00 | % | ||||
Expected
volatility
|
33.83 | % | 31.51 | % | ||||
Risk-free
interest rate
|
0.97 | % | 2.86 | % | ||||
Expected
life
|
1.50
years
|
5.31
years
|
||||||
Weighted
average fair value
|
$ | 0.69 | $ | 1.36 |
Options Vesting Period
|
1 year
|
|||
Dividend
Yield
|
0.00 | % | ||
Expected
volatility
|
28.95 | % | ||
Risk-free
interest rate
|
2.98 | % | ||
Expected
life
|
5.31
years
|
|||
Weighted
average fair value
|
$ | 1.61 |
Options Vesting Period
|
1 year
|
4 years
|
||||||
Dividend
Yield
|
0.00 | % | 0.00 | % | ||||
Expected
volatility
|
31.8 | % | 40.9 | % | ||||
Risk-free
interest rate
|
3.54 | % | 3.80 | % | ||||
Expected
life
|
5.75
years
|
6.25
years
|
||||||
Weighted
average fair value
|
$ | 2.22 | $ | 2.77 |
Net Operating
Loss
|
||||
Expiration Dates
December 31
|
Amount
(000’s)
|
|||
2010
|
$ | 7,417 | ||
2011
|
7,520 | |||
2012
|
5,157 | |||
2020
|
29,533 | |||
2021
|
50,430 | |||
2022
|
115,000 | |||
2023
|
5,712 | |||
2024
|
3,566 | |||
2025
|
1,707 | |||
2026
|
476 | |||
2028
|
1,360 | |||
2029
|
4,073 | |||
Total
|
231,951 | |||
Section 382 limitation
|
(3,631 | ) | ||
After
Limitations
|
$ | 228,320 |
Payment Due By Period
|
||||||||||||||||||||
Contractual
Obligations
|
Less
Than
|
More
Than
|
||||||||||||||||||
(in thousands)
|
Total
|
1 Year
|
1-3 Years
|
3-5 Years
|
5 Years
|
|||||||||||||||
Operating
Lease Obligations
|
$ | 1,579 | $ | 451 | $ | 1,128 | $ | — | $ | — | ||||||||||
Total
|
$ | 1,579 | $ | 451 | $ | 1,128 | $ | — | $ | — |
2009
|
||||||||||||||||
First
|
Second
|
Third
|
Fourth
|
|||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
|||||||||||||
Operating
loss
|
$ | (1,012 | ) | $ | (1,118 | ) | $ | (906 | ) | $ | (2,516 | ) | ||||
Net
loss before taxes
|
$ | (601 | ) | $ | (921 | ) | $ | (850 | ) | $ | (2,479 | ) | ||||
Net
loss
|
$ | (601 | ) | $ | (921 | ) | $ | (850 | ) | $ | (2,473 | ) | ||||
Net
loss per share:
|
||||||||||||||||
Basic
|
$ | (0.04 | ) | $ | (0.05 | ) | $ | (0.05 | ) | $ | (0.15 | ) | ||||
Diluted
|
$ | (0.04 | ) | $ | (0.05 | ) | $ | (0.05 | ) | $ | (0.15 | ) |
2008
|
||||||||||||||||
First
|
Second
|
Third
|
Fourth
|
|||||||||||||
Quarter
|
Quarter
|
Quarter
|
Quarter
|
|||||||||||||
Operating
loss
|
$ | (1,239 | ) | $ | (1,342 | ) | $ | (1,249 | ) | $ | (1,043 | ) | ||||
Net
loss before taxes
|
$ | (417 | ) | $ | (783 | ) | $ | (715 | ) | $ | (487 | ) | ||||
Net
loss
|
$ | (417 | ) | $ | (783 | ) | $ | (715 | ) | $ | (487 | ) | ||||
Net
loss per share:
|
||||||||||||||||
Basic
|
$ | (0.02 | ) | $ | (0.05 | ) | $ | (0.04 | ) | $ | (0.03 | ) | ||||
Diluted
|
$ | (0.02 | ) | $ | (0.05 | ) | $ | (0.04 | ) | $ | (0.03 | ) |
Page
|
|
Report
of Independent Registered Public Accounting Firm on Consolidated Financial
Statements and Internal Control Over Financial Reporting
|
23
|
Consolidated
Balance Sheets -December 31, 2009 and 2008
|
24
|
Consolidated
Statements of Operations -Years Ended December 31, 2009, 2008 and
2007
|
25
|
Consolidated
Statements of Stockholders' Equity and Comprehensive Loss -Years Ended
December 31, 2009, 2008 and 2007
|
26 |
Consolidated
Statements of Cash Flows -Years Ended December 31, 2009, 2008 and
2007
|
28
|
Notes
to Consolidated Financial Statements
|
29
|
/s/ KPMG LLP
|
|
Stamford,
Connecticut
|
|
March
15, 2010
|
2009
|
2008
|
|||||||
ASSETS
|
||||||||
CURRENT
ASSETS:
|
||||||||
Cash
and cash equivalents
|
$ | 58,363 | $ | 19,342 | ||||
Marketable
securities
|
24,059 | 66,670 | ||||||
Interest
receivable
|
6 | 24 | ||||||
Prepaids
and other current assets
|
667 | 109 | ||||||
Total
current assets
|
83,095 | 86,145 | ||||||
PROPERTY
AND EQUIPMENT, NET
|
696 | 1,032 | ||||||
Total
assets
|
$ | 83,791 | $ | 87,177 | ||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
CURRENT
LIABILITIES:
|
||||||||
Accounts
payable and accrued liabilities
|
$ | 1,713 | $ | 383 | ||||
Total
current liabilities
|
1,713 | 383 | ||||||
Deferred
rent
|
446 | 410 | ||||||
Total
liabilities
|
2,159 | 793 | ||||||
COMMITMENTS
AND CONTINGENCIES (Note 7)
|
||||||||
STOCKHOLDERS'
EQUITY:
|
||||||||
Preferred
stock, $.0001 par value; 5,000,000 shares authorized; none
issued
|
— | — | ||||||
Common
stock, $.0001 par value; 100,000,000 shares authorized;
|
||||||||
17,441,747
and 17,441,747 shares issued; and 17,366,747 and 17,366,747 outstanding in
2009 and 2008, respectively
|
2 | 2 | ||||||
Additional
paid-in capital
|
370,994 | 370,504 | ||||||
Accumulated
deficit
|
(289,368 | ) | (284,523 | ) | ||||
Less
treasury stock, 75,000 shares at cost
|
(2 | ) | (2 | ) | ||||
Accumulated
other comprehensive income
|
6 | 403 | ||||||
Total
stockholders' equity
|
81,632 | 86,384 | ||||||
Total
liabilities and stockholders' equity
|
$ | 83,791 | $ | 87,177 |
2009
|
2008
|
2007
|
||||||||||
OPERATING
EXPENSES:
|
||||||||||||
General
and administrative
|
3,597 | 4,517 | 3,767 | |||||||||
Transaction
expense
|
1,613 | — | (13 | ) | ||||||||
Depreciation
|
342 | 356 | 359 | |||||||||
Total
operating expenses
|
5,552 | 4,873 | 4,113 | |||||||||
OPERATING
LOSS
|
(5,552 | ) | (4,873 | ) | (4,113 | ) | ||||||
OTHER
EXPENSE
|
— | (2 | ) | (6 | ) | |||||||
INTEREST
INCOME
|
701 | 2,473 | 4,239 | |||||||||
NET
(LOSS) INCOME BEFORE TAXES
|
(4,851 | ) | (2,402 | ) | 120 | |||||||
INCOME
TAX (BENEFIT) PROVISION
|
(6 | ) | — | 3 | ||||||||
NET
(LOSS) INCOME
|
$ | (4,845 | ) | $ | (2,402 | ) | $ | 117 | ||||
NET
(LOSS) INCOME PER SHARE
|
||||||||||||
Basic
|
$ | (0.29 | ) | $ | (0.14 | ) | $ | 0.01 | ||||
Diluted
|
$ | (0.29 | ) | $ | (0.14 | ) | $ | 0.01 | ||||
WEIGHTED
AVERAGE COMMON SHARES OUTSTANDING
|
||||||||||||
Basic
|
16,867 | 16,867 | 16,658 | |||||||||
Diluted
|
16,867 | 16,867 | 17,051 |
Accumulated
|
||||||||||||||||||||||||||||
Additional
|
Treasury
|
Other
|
||||||||||||||||||||||||||
Common Stock
|
Paid-In
|
Accumulated
|
Stock
|
Comprehensive
|
||||||||||||||||||||||||
Shares
|
Amount
|
Capital
|
Deficit
|
Shares
|
Amount
|
Income
|
||||||||||||||||||||||
BALANCES,
December 31, 2006
|
17,188 | $ | 2 | $ | 367,945 | $ | (282,238 | ) | (75 | ) | $ | (2 | ) | $ | 9 | |||||||||||||
Exercise
of stock options
|
247 | — | 1,438 | — | — | — | — | |||||||||||||||||||||
Issuance
of restricted shares, net of amortization
|
7 | — | 444 | — | — | — | — | |||||||||||||||||||||
Net
income
|
— | — | — | 117 | — | — | — | |||||||||||||||||||||
Increase
in unrealized gain on marketable securities
|
— | — | — | — | — | — | 4 | |||||||||||||||||||||
BALANCES,
December 31, 2007
|
17,442 | 2 | 369,827 | (282,121 | ) | (75 | ) | (2 | ) | 13 | ||||||||||||||||||
Exercise
of stock options
|
— | — | — | — | — | — | — | |||||||||||||||||||||
Equity
compensation
|
— | — | 677 | — | — | — | — | |||||||||||||||||||||
Net
loss
|
— | — | — | (2,402 | ) | — | — | — | ||||||||||||||||||||
Increase
in unrealized gain on marketable securities
|
— | — | — | — | — | — | 390 | |||||||||||||||||||||
BALANCES,
December 31, 2008
|
17,442 | 2 | 370,504 | (284,523 | ) | (75 | ) | (2 | ) | 403 | ||||||||||||||||||
Exercise
of stock options
|
— | — | — | — | — | — | — | |||||||||||||||||||||
Equity
compensation
|
— | — | 490 | — | — | — | — | |||||||||||||||||||||
Net
loss
|
— | — | — | (4,845 | ) | — | — | — | ||||||||||||||||||||
Decrease
in unrealized gain on marketable securities
|
— | — | — | — | — | — | (397 | ) | ||||||||||||||||||||
BALANCES,
December 31, 2009
|
17,442 | $ | 2 | $ | 370,994 | $ | (289,368 | ) | (75 | ) | $ | (2 | ) | $ | 6 |
Total
Stockholders'
Equity
|
Comprehensive
Income (Loss)
|
|||||||
BALANCES,
December 31, 2006
|
$ | 85,716 | — | |||||
Exercise
of stock options
|
1,438 | — | ||||||
Issuance
of restricted shares, net of amortization
|
444 | — | ||||||
Net
income
|
117 | 117 | ||||||
Increase
in unrealized gain on marketable securities
|
4 | 4 | ||||||
Total
comprehensive income
|
$ | 121 | ||||||
BALANCES,
December 31, 2007
|
87,719 | — | ||||||
Exercise
of stock options
|
— | — | ||||||
Equity
compensation
|
677 | — | ||||||
Net
loss
|
(2,402 | ) | (2,402 | ) | ||||
Increase
in unrealized gain on marketable securities
|
390 | 390 | ||||||
Total
comprehensive loss
|
$ | (2,012 | ) | |||||
BALANCES,
December 31, 2008
|
86,384 | — | ||||||
Exercise
of stock options
|
— | — | ||||||
Equity
compensation
|
490 | — | ||||||
Net
loss
|
(4,845 | ) | (4,845 | ) | ||||
Decrease
in unrealized gain on marketable securities
|
(397 | ) | (397 | ) | ||||
Total
comprehensive loss
|
$ | (5,242 | ) | |||||
BALANCES,
December 31, 2009
|
$ | 81,632 |
2009
|
2008
|
2007
|
||||||||||
OPERATING
ACTIVITIES:
|
||||||||||||
Net
(loss) income
|
$ | (4,845 | ) | $ | (2,402 | ) | $ | 117 | ||||
Adjustments
to reconcile net (loss) income to net cash used in operating
activities:
|
||||||||||||
Depreciation
of property and equipment
|
342 | 356 | 359 | |||||||||
Amortization
of discount on securities, net
|
(466 | ) | (1,945 | ) | (2,929 | ) | ||||||
Equity
compensation
|
490 | 677 | 444 | |||||||||
Non-cash
reductions to property and equipment
|
1 | — | — | |||||||||
Changes
in operating assets and liabilities:
|
||||||||||||
(Increase)
decrease in interest receivable, prepaids and other current
assets
|
(540 | ) | 57 | 419 | ||||||||
Increase
(decrease) in accounts payable and accrued liabilities
|
1,330 | (235 | ) | (62 | ) | |||||||
Increase
in deferred rent
|
36 | 67 | 66 | |||||||||
Net
cash used in operating activities
|
(3,652 | ) | (3,425 | ) | (1,586 | ) | ||||||
INVESTING
ACTIVITIES:
|
||||||||||||
Purchase
of marketable securities
|
(48,943 | ) | (110,105 | ) | (150,803 | ) | ||||||
Proceeds
from the sale and maturity of marketable securities
|
91,623 | 90,993 | 191,147 | |||||||||
Purchase
of property and equipment
|
(7 | ) | (7 | ) | (48 | ) | ||||||
Disposal
of property and equipment
|
— | — | 7 | |||||||||
Net
cash provided by (used in) investing activities
|
42,673 | (19,119 | ) | 40,303 | ||||||||
FINANCING
ACTIVITIES:
|
||||||||||||
Proceeds
from the exercise of stock options
|
— | — | 1,438 | |||||||||
Net
cash provided by financing activities
|
— | — | 1,438 | |||||||||
CHANGE
IN CASH AND CASH EQUIVALENTS
|
39,021 | (22,544 | ) | 40,155 | ||||||||
CASH
AND CASH EQUIVALENTS, beginning of year
|
19,342 | 41,886 | 1,731 | |||||||||
CASH
AND CASH EQUIVALENTS, end of year
|
$ | 58,363 | $ | 19,342 | $ | 41,886 | ||||||
SUPPLEMENTAL
DISCLOSURE:
|
||||||||||||
Cash
paid for franchise and property taxes
|
$ | 332 | $ | 458 | $ | 456 |
Level 1 - | Quoted prices identical instruments in active markets | |
|
Level
2 -
|
Quoted
prices for similar instruments in active markets; quoted prices for
identical or similar instruments in markets that are not active; and
model-derived valuations whose inputs are observable or whose significant
value drivers are observable.
|
|
Level
3 -
|
Significant
inputs to the valuation model are
unobservable.
|
December 31,
|
Useful Life
|
|||||||||||
2009
|
2008
|
(in years)
|
||||||||||
Computers
and equipment
|
$ | 265 | $ | 265 | 1 - 5 | |||||||
Furniture
and fixtures
|
453 | 488 | 7 | |||||||||
Leasehold
improvements
|
1,893 | 1,893 | 8 | |||||||||
2,611 | 2,646 | |||||||||||
Less:
accumulated depreciation
|
(1,915 | ) | (1,614 | ) | ||||||||
Property
and equipment, net
|
$ | 696 | $ | 1,032 |
2009
|
2008
|
|||||||
Accounts
payable
|
$ | 561 | $ | 20 | ||||
Accrued
bonuses
|
— | 125 | ||||||
Accrued
professional services
|
998 | 156 | ||||||
Accrued
taxes
|
104 | 69 | ||||||
Other
|
50 | 13 | ||||||
$ | 1,713 | $ | 383 |
2009
|
2008
|
2007
|
||||||||||
Weighted
average common shares – basic
|
16,867 | 16,867 | 16,658 | |||||||||
Effect
of dilutive stock options
|
— | — | 148 | |||||||||
Effect
of dilutive restricted stock
|
— | — | 245 | |||||||||
Total
effect of potential incremental shares
|
— | — | 393 | |||||||||
Weighted
average common shares – diluted
|
16,867 | 16,867 | 17,051 | |||||||||
Net
income (loss) per share:
|
||||||||||||
Basic
|
$ | (0.29 | ) | $ | (0.14 | ) | $ | 0.01 | ||||
Diluted
|
$ | (0.29 | ) | $ | (0.14 | ) | $ | 0.01 |
YEARS
ENDED
DECEMBER 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Pre-Tax
Income (loss):
|
||||||||||||
Domestic
|
$ | (4,851 | ) | $ | (2,402 | ) | $ | 120 | ||||
Foreign
|
— | — | — | |||||||||
$ | (4,851 | ) | $ | (2,402 | ) | $ | 120 |
YEARS
ENDED
DECEMBER 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Current:
|
||||||||||||
Federal
|
$ | — | $ | — | $ | 3 | ||||||
State
|
— | — | — | |||||||||
Foreign
|
— | — | — | |||||||||
Total
current income for provision
|
$ | — | $ | — | $ | 3 |
YEARS
ENDED
DECEMBER 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Deferred:
|
||||||||||||
Federal
|
(894 | ) | (273 | ) | 3,850 | |||||||
State
|
(299 | ) | 16 | 1,218 | ||||||||
Foreign
|
— | — | — | |||||||||
(1,193 | ) | (256 | ) | 5,068 | ||||||||
Increase
(decrease) in valuation allowance for deferred income
taxes
|
1,193 | 256 | (5,068 | ) | ||||||||
Total
deferred income tax for provision
|
— | — | — | |||||||||
Total
income tax provision
|
$ | — | $ | — | $ | 3 |
2009
|
2008
|
2007
|
||||||||||
Income
(loss) from operations
|
$ | 1,193 | $ | 256 | $ | (5,068 | ) | |||||
Stockholders’
equity
|
155 | (152 | ) | (1 | ) | |||||||
Total
|
$ | 1,348 | $ | 104 | $ | (5,069 | ) |
YEARS
ENDED
DECEMBER 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Computed
"expected" income tax expense (benefit)
|
(34.0 | )% | (34.0 | )% | 34.0 | % | ||||||
Increase
(decrease) in income taxes resulting from:
|
||||||||||||
State
income taxes, net of federal income taxes
|
(4.9 | ) | (1.6 | ) | 514.4 | |||||||
NOL
adjustments
|
13.4 | 2.1 | 152.3 | |||||||||
Capital
loss carryforward adjustment
|
— | 22.7 | 3,506.2 | |||||||||
Non-cash
stock compensation
|
— | — | (9.5 | ) | ||||||||
Other
|
1.0 | 0.2 | 8.2 | |||||||||
Increase
(decrease) in valuation allowance and other items
|
24.5 | 10.6 | (4,202.8 | ) | ||||||||
Income
tax expense (benefit)
|
— | % | — | % | 2.8 | % |
YEARS
ENDED
DECEMBER 31,
|
||||||||
2009
|
2008
|
|||||||
Deferred
income tax assets (liabilities):
|
||||||||
Net
operating loss, capital loss amount and research & experimentation
credit carryforwards
|
$ | 85,724 | $ | 84,830 | ||||
Charitable
contribution carryforward
|
4 | 5 | ||||||
Depreciation
|
73 | (33 | ) | |||||
Unrealized
gain on marketable securities
|
(2 | ) | (157 | ) | ||||
Non-cash
compensation
|
1,179 | 988 | ||||||
Accrued
liabilities
|
162 | 159 | ||||||
Reserves
for investments
|
1,728 | 1,728 | ||||||
Net
deferred income tax assets before valuation allowance
|
88,868 | 87,520 | ||||||
Valuation
allowance for deferred income tax assets
|
(88,868 | ) | (87,520 | ) | ||||
Net
deferred income tax assets
|
$ | — | $ | — |
Net
Operating
Loss
|
||||
Expiration
Dates
December
31
|
Amount
(000’s)
|
|||
2010
|
$ | 7,417 | ||
2011
|
7,520 | |||
2012
|
5,157 | |||
2020
|
29,533 | |||
2021
|
50,430 | |||
2022
|
115,000 | |||
2023
|
5,712 | |||
2024
|
3,566 | |||
2025
|
1,707 | |||
2026
|
476 | |||
2028
|
1,360 | |||
2029
|
4,073 | |||
Total
|
231,951 | |||
Section
382 limitation
|
(3,631 | ) | ||
After
Limitations
|
$ | 228,320 |
Options Granted
|
May 28, 2009
|
June 18, 2009
|
||||||
Option
Vesting Period
|
Immediate
|
One
year
|
||||||
Grant
Price
|
$ | 4.06 | $ | 4.00 | ||||
Dividend
Yield
|
0.00 | % | 0.00 | % | ||||
Expected
volatility
|
33.83 | % | 31.51 | % | ||||
Risk-free
interest rate
|
0.97 | % | 2.86 | % | ||||
Expected
life
|
1.50
years
|
5.31
years
|
||||||
Weighted
average fair value
|
$ | 0.69 | $ | 1.36 |
Options Vesting Period
|
1 year
|
|||
Dividend
Yield
|
0.00 | % | ||
Expected
volatility
|
28.95 | % | ||
Risk-free
interest rate
|
2.98 | % | ||
Expected
life
|
5.31
years
|
|||
Weighted
average fair value
|
$ | 1.61 |
Options Vesting Period
|
1 year
|
4 years
|
||||||
Dividend
Yield
|
0.00 | % | 0.00 | % | ||||
Expected
volatility
|
31.8 | % | 40.9 | % | ||||
Risk-free
interest rate
|
3.54 | % | 3.80 | % | ||||
Expected
life
|
5.75
years
|
6.25
years
|
||||||
Weighted
average fair value
|
$ | 2.22 | $ | 2.77 |
Weighted
|
||||||||||||
Range
of
|
Average
|
|||||||||||
Exercise
|
Exercise
|
|||||||||||
Shares
|
Prices
|
Price
|
||||||||||
December
31, 2006
|
1,673,750 | $ | 5.35-$10.00 | $ | 7.36 | |||||||
Granted
|
430,000 | $ | 5.98 | $ | 5.98 | |||||||
Forfeited
|
(7,757 | ) | $ | 7.40-$8.60 | $ | 8.17 | ||||||
Expired
|
— | |||||||||||
Exercised
|
(247,243 | ) | $ | 5.35-$8.60 | $ | 5.81 | ||||||
December
31, 2007
|
1,848,750 | $ | 5.35-$10.00 | $ | 7.24 | |||||||
Granted
|
60,000 | $ | 5.01 | $ | 5.01 | |||||||
Forfeited
|
— | |||||||||||
Expired
|
— | |||||||||||
Exercised
|
— | |||||||||||
December
31, 2008
|
1,908,750 | $ | 5.01-$10.00 | $ | 7.17 | |||||||
Granted
|
123,750 | $ | 4.00-$ 4.06 | $ | 4.03 | |||||||
Forfeited
|
— | |||||||||||
Expired
|
(63,750 | ) | $ | 5.99 | $ | 5.99 | ||||||
Exercised
|
— | |||||||||||
December
31, 2009
|
1,968,750 | $ | 4.00-$10.00 | $ | 7.01 | |||||||
Vested
and exercisable at December 31, 2009
|
1,863,750 | $ | 7.09 | |||||||||
Vested
and exercisable at December 31, 2008
|
1,668,750 | $ | 7.36 | |||||||||
Vested
and exercisable at December 31, 2007
|
1,493,750 | $ | 7.54 |
Outstanding
|
Exercisable
|
|||||||||||||||||||
Weighted
|
||||||||||||||||||||
Number
|
Weighted
|
Average
|
Number
|
Weighted
|
||||||||||||||||
Exercise
|
of Shares
|
Average
|
Remaining
|
of Shares
|
Average
|
|||||||||||||||
Price
|
Outstanding at
|
Exercise
|
Contractual
|
Exercisable at
|
Exercise
|
|||||||||||||||
Range
|
December 31, 2009
|
Price
|
Life (Years)
|
December 31, 2009
|
Price
|
|||||||||||||||
$
4.00 - $ 4.19
|
123,750 | $ | 4.03 | 5.9 | 108,750 | $ | 4.04 | |||||||||||||
$
4.20 - $10.00
|
1,845,000 | $ | 7.21 | 5.5 | 1,755,000 | $ | 7.28 | |||||||||||||
1,968,750 | $ | 7.01 | 5.6 | 1,863,750 | $ | 7.09 |
Gross
Rental
|
Co-Tenant
|
|||||||
Obligations
|
Payment
|
|||||||
Year
ending December 31,
|
||||||||
2010
|
451 | 113 | ||||||
2011
|
1,128 | 282 | ||||||
2012
|
— | — | ||||||
2013
|
— | — | ||||||
Thereafter
|
— | — | ||||||
Total
|
$ | 1,579 | $ | 395 |
Page
|
|
Report
of Independent Registered Public Accounting Firm on Consolidated Financial
Statements and Internal Control over Financial
Reporting
|
23
|
Consolidated
Balance Sheets - December 31, 2009 and 2008
|
24
|
Consolidated
Statements of Operations -Years Ended December 31, 2009, 2008 and
2007
|
25
|
Consolidated
Statements of Stockholders' Equity and Comprehensive Loss -Years Ended
December 31, 2009, 2008 and 2007
|
26
|
Consolidated
Statements of Cash Flows -Years Ended December 31, 2009, 2008 and
2007
|
28
|
Notes
to Consolidated Financial Statements
|
29
|
(2)
The following additional financial statement schedule and report of
independent registered public accounting firm are furnished
herewith pursuant to the requirements of Form 10-K:
|
|
Schedule
II Valuation and Qualifying Accounts
|
47
|
(3) The
following Exhibits are hereby filed as part of this Annual Report on Form
10-K:
|
Exhibit
|
||
Number
|
Exhibit
|
|
3.1
|
Amended
and Restated Certificate of Incorporation of the Company (incorporated
herein by reference to Appendix C of the Company’s Definitive Proxy
Statement filed with the Securities and Exchange Commission on November 6,
2002).
|
|
3.2
|
Amendment
to Amended and Restated Certificate of Incorporation of the Company
(incorporated herein by reference to Exhibit 3.1 of the Company's
Current Report on Form 8-K, filed with the Securities and Exchange
Commission on July 31, 2003).
|
|
3.3
|
Amended
and Restated Bylaws of the Company (incorporated herein by reference to
Appendix D of the Company's Definitive Proxy Statement filed with the
Securities and Exchange Commission on November 6,
2002).
|
|
3.4
|
Amendment
No. 1 to the Amended and Restated Bylaws of the Company (incorporated
herein by reference to Exhibit 3.4 of the Company's Annual
Report on Form 10-K, filed with the Securities and Exchange
Commission on March 31, 2003).
|
|
3.5
|
Form
of Certificate of Designation of Series A Junior Participating Preferred
Stock (incorporated herein by reference to Exhibit 3.1 of the Company's
Form 8-K, filed with the Securities and Exchange Commission on February
13, 2008).
|
|
4.1
|
See
Exhibits 3.1, 3.2, 3.3, 3.4, and 3.5 for provisions of the Amended
and Restated Certificate of Incorporation and Amended and Restated Bylaws
of the Company defining rights of the holders of Common Stock of the
Company.
|
|
4.2
|
Specimen
Stock Certificate (incorporated herein by reference to Exhibit 4.2 of the
Company's Registration Statement on Form S-1 filed with the
Securities and Exchange Commission on May 26, 1998 (File No.
333-46685)).
|
|
4.3
|
Restricted
Stock Agreement, dated as of April 11, 2003, between the Company and
Warren B. Kanders (incorporated herein by reference to Exhibit 4.1 of the
Company's Form 10-Q filed with the Securities and Exchange Commission
on May 15, 2003). *
|
|
4.4
|
Rights
Agreement, dated as of February 12, 2008, by and between Clarus
Corporation and American Stock Transfer & Trust Company (incorporated
herein by reference to Exhibit 4.2 of the Company’s Form 8-K filed with
the Securities and Exchange Commission on February 13,
2008).
|
4.5
|
Form
of Rights Certificate (incorporated herein by reference to Exhibit 4.1 of
the Company’s Form 8-K filed with the Securities and Exchange Commission
on February 13, 2008).
|
|
10.1
|
Form
of Indemnification Agreement for Directors and Executive Officers of the
Company (incorporated herein by reference to Exhibit 10.1 of the
Company's Form 8-K filed with the Securities and Exchange Commission on
December 23, 2002).
|
|
10.2
|
Employment
Agreement, dated as of December 6, 2002, between the Company and Warren B.
Kanders (incorporated herein by reference to Exhibit 10.2 of the Company's
Form 8-K filed with the Securities and Exchange Commission on
December 23, 2002).*
|
|
10.3
|
Amended
and Restated Stock Incentive Plan (incorporated herein by reference to
Exhibit 10.2 of the Company's Form 10-Q filed with the Securities and
Exchange Commission on August 14, 2000). *
|
|
10.4
|
Form
of Nonqualified Stock Option Agreement (incorporated herein by reference
to Exhibit 10.5 of the Company's Form 10-Q filed with the Securities and
Exchange Commission on August 14, 2000). *
|
|
10.5
|
Lease,
dated as of September 23, 2003, between Reckson Operating Partnership,
L.P., the Company and Kanders & Company, Inc. (incorporated herein by
reference to Exhibit 10.1 of the Company's 10-Q filed with the Securities
and Exchange Commission on November 12, 2003).
|
|
10.6
|
Transportation
Services Agreement, dated as of December 18, 2003, between Kanders
Aviation, LLC and the Company (incorporated herein by reference to
Exhibit 10.23 of the Company's 10-K filed with the Securities and
Exchange Commission on March 11, 2004).
|
|
10.7
|
Clarus
Corporation 2005 Stock Incentive Plan (incorporated herein by reference to
Appendix A of the Company's Definitive Proxy Statement filed
with the Securities and Exchange Commission on May 2, 2005).
*
|
|
10.8
|
Form
of Stock Option Agreement for the Clarus Corporation 2005 Stock Incentive
Plan (incorporated herein by reference to Exhibit 10.1 of the
Company's Form 10-Q filed with the Securities and Exchange Commission
on November 3, 2005). *
|
|
10.9
|
Amendment
to the form of Stock Option Agreement for the Clarus Corporation 2005
Stock Incentive Plan (incorporated herein by reference to Exhibit 10.1 of
the Company's Form 8- K filed with the Securities and Exchange
Commission on January 6, 2006). *
|
|
10.10
|
Stock
Option Agreement, dated December 23, 2002, between the Company and Warren
B. Kanders (incorporated herein by reference to Exhibit 4.6 of the
Company's Registration Statement Form S-8 filed with the Securities and
Exchange Commission on August 19, 2005). *
|
|
10.11
|
Extension
Agreement, dated as of May 1, 2006, to the Employment Agreement, dated as
of December 6, 2002, between the Company and Warren B. Kanders
(incorporated herein by reference to Exhibit 10.2 of the Company’s Form
8-K filed with the Securities and Exchange Commission on May 4,
2006).*
|
|
10.12
|
Resignation
and Severance Agreement and General Release, dated as of December 11,
2006, between the Company and Nigel P. Ekern (incorporated herein by
reference to Exhibit 10.1 of the Company’s Form 8-K filed with the
Securities and Exchange Commission on December 12,
2006).*
|
|
23.1
|
Consent
of Independent Registered Public Accounting Firm.**
|
|
31.1
|
Certification
of Principal Executive Officer, as required by Rule 13a-14(a) of the
Securities Exchange Act of 1934.**
|
|
31.2
|
Certification
of Principal Financial Officer, as required by Rule 13a-14(a) of the
Securities Exchange Act of 1934.**
|
|
32.1
|
Certification
of Principal Executive Officer, as required by Rule 13a-14(b) of the
Securities Exchange Act of 1934.**
|
|
32.2
|
Certification
of Principal Financial Officer, as required by Rule 13a-14(b) of the
Securities Exchange Act of 1934.**
|
Date: March
15, 2010
|
||
By:/s/
Philip A. Baratelli
|
||
Philip
A. Baratelli
|
||
Chief
Financial Officer
|
Signature
|
Title
|
Date
|
||
/s/ Warren B. Kanders
|
Executive
Chairman of the
|
March
15, 2010
|
||
Warren
B. Kanders
|
Board
of Directors
|
|||
(principal
executive officer)
|
||||
/s/
Philip A. Baratelli
|
Chief
Financial Officer
|
March
15, 2010
|
||
Philip
A. Baratelli
|
(principal
financial officer and principal accounting officer)
|
|||
/s/ Donald L. House
|
Director
|
March
15, 2010
|
||
Donald
L. House
|
||||
/s/
Burtt R. Ehrlich
|
Director
|
March
15, 2010
|
||
Burtt
R. Ehrlich
|
||||
/s/ Nicholas
Sokolow
|
Director
|
March
15, 2010
|
||
Nicholas
Sokolow
|
/s/ KPMG LLP
|
Stamford,
Connecticut
|
March
15, 2010
|
Charged
|
||||||||||||||||
Balance
at
|
(Credited)
to
|
Balance
at
|
||||||||||||||
Beginning
of
|
Costs
and
|
End
of
|
||||||||||||||
Period
|
Expenses
|
Deductions (a)
|
Period
|
|||||||||||||
Valuation
Allowance for Deferred Income Tax Assets
|
||||||||||||||||
2007
|
$ | 92,485,000 | $ | (5,069,000 | ) | $ | — | $ | 87,416,000 | |||||||
2008
|
87,416,000 | 256,000 | (152,000 | ) | 87,520,000 | |||||||||||
2009
|
$ | 87,520,000 | $ | 1,193,000 | $ | 155,000 | $ | 88,868,000 |
Number
|
Exhibit
|
|
23.1
|
Consent
of Independent Registered Public Accounting Firm.
|
|
31.1
|
Certification
of Principal Executive Officer, as required by Rule 13a-14(a) of the
Securities Exchange Act of 1934.
|
|
31.2
|
Certification
of Principal Financial Officer, as required by Rule 13a-14(a) of the
Securities Exchange Act of 1934.
|
|
32.1
|
Certification
of Principal Executive Officer, as required by Rule 13a-14(b) of the
Securities Exchange Act of 1934.
|
|
32.2
|
Certification
of Principal Financial Officer, as required by Rule 13a-14(b) of the
Securities Exchange Act of 1934
|