Business Context and Reporting Period
This Form 8-K is a current report filed by Snap Interactive, Inc. on November 14, 2012. The filing addresses two primary matters: a regulatory disclosure regarding a corporate ranking and a notification of a late filing for the quarterly report ended September 30, 2012.
Key Financial Metrics
The filing does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. The document explicitly states that the company cannot reasonably estimate the magnitude of potential financial adjustments at this time.
Material Changes and Accounting Review
The company is evaluating the accounting treatment for common stock warrants issued in January 2011. This review may necessitate a restatement of previously issued audited financial statements for the year ended December 31, 2011, and unaudited statements for the quarters ended March 31, 2012, and June 30, 2012. Management notes that any resulting adjustments would be non-cash and non-operating, meaning they would not affect revenue, operating expenses, or liquidity.
Guidance, Outlook, and Risks
- Deloitte Ranking: The company was ranked as the 36th fastest-growing company in North America on Deloitte's 2012 Technology Fast 500 list.
- Filing Delay: The Form 10-Q for the quarter ended September 30, 2012, will not be filed within the standard five-day extension period. The company expects to file shortly after the extension expires, but no later than November 26, 2012.
- Risks: Risks include potential adjustments to financial statements, the impact of such adjustments on results of operations, and unexpected delays in the preparation of the Form 10-Q.
Investor Verification Checklist
- Verify the final filing date of the Form 10-Q for the quarter ended September 30, 2012.
- Monitor for any subsequent announcements regarding the restatement of 2011 and 2012 financial periods.
- Confirm the specific accounting treatment determined for the January 2011 common stock warrants.
- Review the attached press release (Exhibit 99.1) for details on the Deloitte ranking methodology.