(Mark One) |
DELAWARE
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48-1100390
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(State
or other jurisdiction of incorporation or
organization)
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(IRS
employer identification number)
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Six
Concourse Parkway, Suite 1900
Atlanta,
Georgia
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30328
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(Address
of principal executive offices)
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(Zip
Code)
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Registrant’s
telephone number, including area code:
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(678)
987-1700
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Title
of Each Class
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Number
of Shares Outstanding
at
August 1, 2005
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Common
Stock, $0.01 Par Value
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28,507,763
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Form
10-Q Item
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Page
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3
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3
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4
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5
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6
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11
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16
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17
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17
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17
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17
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17
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17
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17
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17
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18
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June
30,
2005
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December
31,
2004
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|||||
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|||||
Assets:
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|||||||
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|||||||
Current
assets:
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|||||||
Cash
and cash equivalents
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$
|
61,903
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$
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12,942
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|||
Restricted cash
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684
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3,196
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|||||
Accounts
receivable, net of allowance of $181 and $197,
respectively
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7,025
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9,542
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|||||
Other receivables
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1,955
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43
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|||||
Inventory
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10,711
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8,155
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|||||
Prepaid
expenses
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605
|
426
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|||||
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|||||||
Total
current assets
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82,883
|
34,304
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|||||
|
|||||||
Property
and equipment, net
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6,212
|
2,678
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|||||
Developed
technology, net of accumulated amortization of $897 and
$493
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7,173
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7,577
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|||||
Goodwill
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5,934
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5,808
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|||||
Other
assets
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445
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389
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|||||
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|||||||
Total
assets
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$
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102,647
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$
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50,756
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|||
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|||||||
Liabilities
and Stockholders' Equity:
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|||||||
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|||||||
Current
liabilities:
|
|||||||
Accounts
payable
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$
|
6,306
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$
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8,401
|
|||
Other
payables
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1,445
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1,445
|
|||||
Accrued
expenses
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2,150
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3,135
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|||||
Deferred
revenue
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299
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1,338
|
|||||
Accrued
warranty and upgrade costs
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3,345
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2,586
|
|||||
Other
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247
|
—
|
|||||
|
|||||||
Total
current liabilities
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13,792
|
16,905
|
|||||
|
|||||||
Other
liabilities
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1,657
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72
|
|||||
Total
liabilities
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15,449
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16,977
|
|||||
|
|||||||
Commitments
and contingencies
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|||||||
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|||||||
Stockholders'
equity:
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|||||||
Preferred
stock, $1 par value, authorized 5,000,000 shares, 0 shares
issued
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—
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—
|
|||||
Preferred
membership units exchangeable for shares of TurboChef common
stock
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967
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6,351
|
|||||
Common
stock, $.01 par value, authorized 100,000,000 shares,
issued
28,506,763 and 24,313,158 shares at June 30, 2005 and
December
31, 2004, respectively
|
285
|
243
|
|||||
Additional
paid-in capital
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142,568
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79,508
|
|||||
Accumulated
deficit
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(56,622
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)
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(52,277
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)
|
|||
Notes
receivable for stock issuances
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—
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(46
|
)
|
||||
|
|||||||
Total
stockholders' equity
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87,198
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33,779
|
|||||
|
|||||||
Total
liabilities and stockholders' equity
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$
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102,647
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$
|
50,756
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
Revenues:
|
|||||||||||||
Product
sales
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$
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10,233
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$
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2,109
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$
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29,953
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$
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3,055
|
|||||
Royalties
and services
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517
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311
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1,200
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311
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|||||||||
Total
revenues
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10,750
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2,420
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31,153
|
3,366
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|||||||||
|
|||||||||||||
Costs
and expenses:
|
|||||||||||||
Cost
of product sales
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9,530
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1,174
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22,021
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1,621
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|||||||||
Research
and development expenses
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1,123
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197
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2,172
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508
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|||||||||
Selling,
general and administrative expenses
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6,265
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3,312
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11,849
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5,477
|
|||||||||
Total
costs and expenses
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16,918
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4,683
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36,042
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7,606
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|||||||||
|
|||||||||||||
Operating
loss
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(6,168
|
)
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(2,263
|
)
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(4,889
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)
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(4,240
|
)
|
|||||
|
|||||||||||||
Other
income (expense):
|
|||||||||||||
Interest
income
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406
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5
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669
|
40
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|||||||||
Interest
expense and other
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(104
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)
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(3
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)
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(125
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)
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(7
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)
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|||||
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302
|
2
|
544
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33
|
|||||||||
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Net
loss
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$
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(5,866
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)
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$
|
(2,261
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)
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$
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(4,345
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)
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$
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(4,207
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)
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Per
share data:
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|||||||||||||
Net
loss per share - basic and diluted
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$
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(0.21
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)
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$
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(0.24
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)
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$
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(0.16
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)
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$
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(0.47
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)
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Weighted
average number of common shares outstanding - basic and
diluted:
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28,193,611
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9,258,823
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27,412,638
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8,937,240
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|||||||||
Six
Months Ended June 30,
|
|||||||
|
2005
|
2004
|
|||||
Cash
flows from operating activities:
|
|||||||
Net
loss
|
$
|
(4,345
|
)
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$
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(4,207
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)
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Adjustments
to reconcile net loss to net cash used in operating
activities:
|
|||||||
Depreciation
and amortization
|
1,027
|
261
|
|||||
Amortization
of deferred loan costs
|
58
|
—
|
|||||
Non-cash
compensation expense
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100
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113
|
|||||
Provision
for doubtful accounts
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53
|
30
|
|||||
Other
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45
|
—
|
|||||
Changes
in operating assets and liabilities, net of effects of
acquisition:
|
|||||||
Restricted
cash
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2,512
|
—
|
|||||
Accounts
receivable
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2,530
|
(1,687
|
)
|
||||
Inventories
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(2,824
|
)
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(4,513
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)
|
|||
Prepaid
expenses and other assets
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(2,186
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)
|
(230
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)
|
|||
Accounts
payable
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(2,140
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)
|
1,575
|
||||
Accrued
expenses and warranty
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(226
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)
|
1,207
|
||||
Deferred
revenue
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(1,039
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)
|
(31
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)
|
|||
Net
cash used in operating activities
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(6,435
|
)
|
(7,482
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)
|
|||
|
|||||||
Cash
flows from investing activities:
|
|||||||
Acquisition
of business, net of cash acquired
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(192
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)
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(7,140
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)
|
|||
Purchases
of property and equipment, net
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(2,039
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)
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(1,932
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)
|
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Other
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119
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(75
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)
|
||||
Net
cash used in investing activities
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(2,112
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)
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(9,147
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)
|
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|||||||
Cash
flows from financing activities:
|
|||||||
Issuance
of common stock, net
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54,839
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10,007
|
|||||
Proceeds
from the exercise of stock options and warrants
|
2,782
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660
|
|||||
Proceeds
from notes receivable for stock issuances
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46
|
—
|
|||||
Payment
of deferred loan costs
|
(156
|
)
|
—
|
||||
Payment
of notes payable
|
—
|
(380
|
)
|
||||
Other
|
(3
|
)
|
3
|
||||
Net
cash provided by financing activities
|
57,508
|
10,290
|
|||||
|
|||||||
Net
increase (decrease) in cash and cash equivalents
|
48,961
|
(6,339
|
)
|
||||
Cash
and cash equivalents at beginning of period
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12,942
|
8,890
|
|||||
Cash
and cash equivalents at end of period
|
$
|
61,903
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$
|
2,551
|
|||
|
|||||||
NON
CASH INVESTING AND FINANCING ACTIVITIES:
|
|||||||
|
|||||||
Landlord
funded leasehold improvements
|
$
|
1,832
|
$
|
—
|
|||
Issuance
of preferred membership units exchangeable for TurboChef
common stock in connection with Enersyst acquisition |
—
|
6,351
|
|||||
Issuance
of common stock in exchange for Enersyst preferred membership
units
|
5,384
|
—
|
|||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | |||||||
Cash
paid for income taxes
|
$
|
201
|
$
|
—
|
|||
Cash
paid for interest
|
20
|
—
|
|
|
Three
Months Ended
June
30,
|
|
Six
Months Ended
June
30,
|
|
||||||||
|
|
2005
|
|
2004
|
|
2005
|
|
2004
|
|
||||
Net
loss:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
reported
|
|
$
|
(5,866
|
)
|
$
|
(2,261
|
)
|
$
|
(4,345
|
)
|
$
|
(4,207
|
)
|
Total
stock-based compensation expense
|
|
|
(1,297
|
)
|
|
(976
|
)
|
|
(2,345
|
)
|
|
(1,760
|
)
|
Pro
forma
|
|
$
|
(7,163
|
)
|
$
|
(3,237
|
)
|
$
|
(6,690
|
)
|
$
|
(5,967
|
)
|
Net
loss per share - basic and diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
reported
|
|
$
|
(0.21
|
)
|
$
|
(0.24
|
)
|
$
|
(0.16
|
)
|
$
|
(0.47
|
)
|
Pro
forma
|
|
|
(0.25
|
)
|
|
(0.36
|
)
|
|
(0.24
|
)
|
|
(0.65
|
)
|
|
|
|
June
30,
2005
|
|
|
December 31,
2004
|
|
|
|
|
|
|
|
|
|
Parts
inventory, net
|
|
$
|
7,079
|
|
$
|
4,349
|
|
Finished
goods - ovens
|
|
|
3,330
|
|
|
3,547
|
|
Demonstration
inventory, net
|
|
|
302
|
|
|
259
|
|
|
|
|
|
|
|
|
|
|
|
$
|
10,711
|
|
$
|
8,155
|
|
|
|
|
|
June
30,
2005
|
|
December
31,
2004
|
|
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|
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Estimated
Useful Lives
(Years)
|
|
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|
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Tooling
and equipment
|
|
|
3-7
|
|
$
|
2,739
|
|
$
|
2,299
|
|
Furniture
and fixtures
|
|
|
5
|
|
|
1,341
|
|
|
579
|
|
Leasehold
improvements
|
|
|
5-7.5
|
|
|
2,806
|
|
|
222
|
|
|
|
|
|
|
|
6,886
|
|
|
3,100
|
|
Less
accumulated depreciation
|
|
|
|
|
|
(674
|
)
|
|
(422
|
)
|
|
|
|
|
|
$
|
6,212
|
|
$
|
2,678
|
|
Three
Months Ended
June
30,
|
Six
Months Ended
June
30,
|
||||||||||||
|
|
2005
|
|
|
2004
|
|
2005
|
|
|
2004
|
|
||
|
|
|
|
|
|
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|
||||||
Balance
at beginning of period
|
$
|
2,818
|
$
|
878
|
$
|
2,586
|
|
$
|
928
|
|
|||
Provision
for warranties
|
|
917
|
94
|
|
2,596
|
|
|
152
|
|
||||
Warranty
expenditures
|
|
(3,162
|
)
|
(54
|
)
|
|
(4,609
|
)
|
|
(101
|
)
|
||
Other
adjustments to provision for warranties
|
|
2,772
|
—
|
|
2,772
|
|
|
(79
|
)
|
||||
Currency
fluctuations
|
|
—
|
(6
|
)
|
|
—
|
|
|
12
|
|
|||
|
|
|
|
|
|
|
|||||||
Balance
at end of period
|
$
|
3,345
|
$
|
912
|
$
|
3,345
|
|
$
|
912
|
|
REGION
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
North
America
|
$
|
8,007
|
$
|
1,820
|
$
|
24,022
|
$
|
2,312
|
|||||
Europe
and Asia
|
2,743
|
600
|
7,131
|
1,054
|
|||||||||
Totals
|
$
|
10,750
|
$
|
2,420
|
$
|
31,153
|
$
|
3,366
|
|
|
|
|
Payments
Due By Period
|
|
|||||||||||||||||||||||||||
|
|
|
|
Total
|
|
July
-
December
2005
|
|
2006
|
|
2007
|
|
2008
|
|
2009
|
|
Thereafter
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Leases
|
|
|
|
$
|
6,568
|
|
|
$
|
589
|
|
|
$
|
1,105
|
|
|
$
|
1,063
|
|
|
$
|
1,017
|
|
|
$
|
927
|
|
|
$
|
1,867
|
|
|
|
|
31.1
|
Certification
of Principal Executive Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002
|
|
|
31.2
|
Certification
of Principal Financial Officer pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002
|
|
|
32
|
Certification
of Principal Executive Officer and Principal Financial Officer
pursuant to
Section 906 of the Sarbanes-Oxley Act of
2002
|
|
|
|
|
TURBOCHEF
TECHNOLOGIES, INC.
|
|
|
|
|
|
By:
|
/s/
James A. Cochran
|
|
James A. Cochran Chief
Financial Officer
(Duly
Authorized Officer and
Principal
Financial Officer)
|