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Maui software firm Code Rebel Corp. reported Thursday that it had a $3.6 million financial loss last year, up roughly fivefold from a $679,942 loss the year before.
The company said the increased loss was primarily due to providing one board member with a big compensation award and incurring higher legal and professional expenses for being a company with publicly traded stock.
Code Rebel recorded a $2 million expense for issuing company stock as compensation mainly for board member James Canton, a think tank founder, who received a vested stock award last year valued at $1.2 million.
Code Rebel was founded in 2007 and became publicly traded last year after an initial public stock offering. The company initially focused on developing software that connects PC and Mac computer systems, but shortly after the stock sale it bought a Houston-based management and technology consulting firm called ThinOps Resources LLC, which now accounts for most Code Rebel revenue.
Revenue last year totaled $526,399 compared with $223,453. The gain was all from ThinOps. Sales of Code Rebel software actually dropped last year to $173,758 from $223,453 the year before.
Code Rebel last month agreed to another acquisition by which a Denver company essentially would acquire control of Code Rebel. This deal involves Aegis Identity Software Inc. receiving 60 percent of Code Rebel stock and replacing Code Rebel’s CEO, president and chief financial officer with Aegis executives.
Aegis was founded in 2011 and produces software to manage user identities and digital access for technology in the education field.
Shares of Code Rebel stock closed Thursday at $2.85 before the earnings report was published. The company’s stock debuted at $5 a share in May, soared to $38.80 in June and then tumbled to a low of $1.53 in February.
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