Without the change in Liabilites of 3.311 million - Local Corp reduced his Liablities 3.311 million - the Total Cash Flow From Operating Activities in the 3. quarter of negative 2.266 million would be near flat (only negative with 164,000) . A second part of this math was the changes in Accounts Receivables, which decreased 1.209 million, too
I subtract Changes In Accounts Receivables of 1.209 (decresae) million from Changes In Liabilities (decrease) of 3.311 million = 2.102 million. In the next step I subtract this 2.102 million from Total Cash Flow From Operating Activities = only a negative amount of 164,000.
And additional get Local Corp $3,510,000 from the Sale of Rovion this year and additional $390,000 in 2013
On October 19, 2012, Local Corporation (the "Registrant") issued a press release announcing that it had completed its divestiture of its Rovion technology platform to Rovion, LLC (the "Buyer"), a subsidiary of Point Roll, Inc. ("Point Roll") in accordance with the terms of that certain Asset Purchase Agreement dated October 19, 2012 (the "Agreement") by and among the Registrant, Buyer and Point Roll. A copy of the press release is attached hereto as Exhibit 99.1. The description of the Agreement contained herein is qualified in its entirety by reference to the full text of the Agreement, a copy of which is attached hereto as Exhibit 10.1. Total consideration for the assets sold is $3.9 million, subject to balance sheet adjustments and subsequent claims against escrow, if any. The Registrant received consideration of $3,510,000 in cash at the closing of the transaction. An additional $390,000 is being held in escrow for a period of eighteen months in the event certain indemnification claims or final balance sheet adjustments are asserted against the Registrant. The assets sold include a self-service, rich media advertising platform and related toolset. Additionally the Buyer will be assuming certain assets and liabilities related to the assets sold, including accounts receivable, certain personnel and lease obligations related to the Rovion business. |