Net Element (NETE) Zach's Small-Cap Research Report

Zacks Investment Research Page 7 scr.zacks.com BALANCE SHEET Sept 30, 2020 June 30, 2020 Current assets: Cash $2,119,628 $865,812 Accounts receivable, net 5,252,882 5,855,538 Due from Mullen Technologies 641,000 0 Prepaid expenses and other assets 1,156,689 1,530,625 Total current assets 9,170,199 8,251,975 Equipment, net 0 0 Intangible assets, net 4,131,500 4,703,406 Goodwill 7,681,186 7,681,186 Operating lease right-of-use asset 834,089 316,118 Other long term 755,593 730,185 Qtr-Qtr % Change Sept 30, 2019 Yr- Yr % Change 43% $492,656 27% 46% 5,545,309 -22% NM 0 NM 18% 1,367,083 -9% 39% 7,405,048 -16% 0% 9,550 -100% -12% 5,951,219 -16% 0% 9,007,752 -15% -9% 411,996 -26% 11% 655,702 0% Total assets 22,572,567 21,682,870 Current liabilities: Accounts payable $5,460,746 $5,360,103 Deferred revenue 854,436 1,291,703 Accrued expenses 2,402,869 2,121,161 Notes payable (current portion) 27,305 936,391 Operating lease liability (current portion) 32,628 68,859 Due to related parties 222,398 81,591 Total current liabilities 9,000,382 9,859,808 Operating lease liability (net of current) 801,594 247,259 Notes payable (non-current portion) 9,906,134 8,986,881 Total liabilities 19,708,110 19,093,948 9% 23,441,267 -15% 19% $5,350,538 -15% -35% 944,283 106% 128% 1,637,549 -66% 3% 114,160 175% -32% 31,010 13% 8% 135,311 -72% 16% 8,212,851 -12% 0% 380,986 -35% 8% 7,982,730 40% 11% 16,576,567 7% STOCKHOLDERS' DEFICIT Common stock 483 419 Paid in capital 188,116,981 185,496,940 2% 411 7% 0% 185,282,062 1% Accumulated other comp income (loss) (2,211,449) (2,209,363) Accumulated deficit (182,771,691) (180,442,122) Noncontrolling interest (269,867) (256,952) Total stockholders' deficit 2,864,457 2,588,922 Total liabilities and stockholders' deficit 22,572,567 21,682,870 Net Cash 1,869,925 (152,170) Current and Quick Ratio 1.0 0.8 Working Capital 169,817 (1,607,833) Total Debt 10,155,837 10,004,863 Debt/TA 45% 46% DSO 28.7 38.9 3% (2,247,888) -5% 0% (175,961,173) 4% 6% (208,712) 74% -9% 6,864,700 -62% 9% 23,441,267 -15% -125% 492,656 27% 20% 0.9 -4% -38% (807,803) -3% 7% 8,232,201 42% -1% 35% 68% 68% 30.0 -25%