OTC Bulletin Board S & P Company Insight for SMART ONLINE INC
Profile
	Business Summary: Smart Online, Inc. develops and markets Software-as-a-Service (SaaS) products and services.   Address   2530 Meridian Parkway   2nd Floor   Durham , NC 27713   Phone: 919-765-5000   Fax: 919-765-5020   Website: http://www.smartonline.com Auditor   CHERRY, BEKAERT & HOLLAND, L.L.P. Transfer Agent   Continental Stock Transfer & Trust Co. Employees:  28 ShareHolders:  198 Founded:  1993 Domicile:  Delaware
Background
	Smart Online, Inc. develops and markets Software-as-a-Service (SaaS) products and services. It provides SaaS applications, such as e-commerce applications designed to give customers the ability to conduct their transactions online; and inventory query, shopping cart, financial transactions, shipping, domain name registration, and business to business communication for small businesses, as well as consulting services, such as Website design and launch. The company also offers sales force automation/customer relationship management application to create standardized processes to define their sales approach, create marketing plans, and monitor and guide sales activities; business dashboard application that provides a snapshot of real-time business data in a single view; accounting application, which is targeted for end users to create and maintain their accounting records online in a secure fashion; human resource center application that enables companies to manage their daily human resource needs; calendar application, a full function online calendar; and contacts application that provides users with an online business contact management system. In addition, it provides business consulting, graphics design, Website content syndication, specialized compensation calculations, online order management, domain name registration, personalized e-mail creation, and warehouse order fulfillment. The company sells its products and services primarily through private label marketing partners. Smart Online, Inc. was founded in 1993 and is headquartered in Durham, North Carolina. History:  INCORPORATED in Delaware Aug. 10, 1993, as American Institute for Financial Research, Inc.; and on Dec. 22, 1995, merged Kinetics Inc., a North Carolina corporation. Name changed to Smart Online, Inc. Dec. 14, 1998.   Subsidiaries: Smart Commerce, Inc. Smart CRM, Inc.     Capital Expenditures, thousand. US Dollars   Year   Amount   2007   77   2006   8   2005   379
Management
	Management Officers Position  Dror  Zoreff Chairman, President & Chief Executive Officer  Thaddeus J. Shalek Chief Financial Officer  James W. Gayton General Counsel  Bob  Dieterle SR VP  Scott  Whitaker Controller  David K. Waldman Investor Relations Contact Directors  Amir  Elbaz  Shlomo  Elia  Dror  Zoreff
Annual Report
	Annual Report   Income Statement   2009 2008 REVENUES License Fees 45,000 26,250 Hosting Fees 156,053 259,675 Subscription Fees 756,233 1,587,942 Professional Services Fees 335,079 1,859,154 Other Revenues 127,137 146,158 Total Revenues 1,419,502 3,879,179 EXPENSES Cost of Revenues (1,544,861) (2,021,489) Sales and Marketing (887,999) (1,736,064) General and Administrative (4,554,435) (4,315,901) Research and Development (586,254) (1,951,562) Loss on Impairment of Intangible Assets (626,685) (3,702,141) Interest Income/expense-net (643,349) (633,014) Other Income/expense - 17,133 Gain on Disposal of Assets-net 22,574 - Loss on Legal Settlement (2,139,364) - Gain on Legal Settlement, Net - 411,710 Earnings before Taxes (9,540,871) (10,052,150) TAXES AND OTHER EXPENSES Net Income (Loss) (9,540,871) (10,052,150) SUPPLEMENTARY INFO Gross Profit/loss (125,359) 1,857,690 Operating Income (Loss) (8,897,522) (9,847,978) Basic & Diluted EPS - Continuing Operations (0.52) (0.55)   Balance Sheet   2009 2008 CURRENT ASSETS Cash and Cash Equivalents 119,796 18,602 Unbilled Receivables - 60,000 Accounts Receivable, Net 13,056 184,930 Prepaid Expenses 240,840 289,372 Total Current Assets 373,692 552,904 NON CURRENT ASSETS Property, Plant and Equipment, Net 258,450 365,993 Unbilled Receivables-non-current - 372,317 Intangible Assets, Net 150,000 1,180,245 Capitalized Software-net 450,782 261,221 Other Assets 2,496 1,736 Prepaid Expenses, Non-current 110,700 258,301 Total Assets 1,346,120 2,992,717 CURRENT LIABILITIES Accounts Payable 518,309 398,237 Accrued Liabilities -nouri 1,802,379 - Accrued Liabilities 2,623,959 478,917 Current Portion of Notes Payable 1,964,281 2,341,177 Deferred Revenue 40,115 323,976 Total Current Liabilities 6,949,043 3,542,307 NON CURRENT LIABILITIES Notes Payable 9,785,255 5,327,211 Deferred Revenue 5,601 67,353 SHAREHOLDERS' EQUITY Common Stock - Par Value 18,333 18,334 Additional Paid in Capital 67,036,840 66,945,590 Accumulated Deficit (82,448,940) (72,908,080) Total Shareholders Equity (15,393,780) (5,944,154) Total Liabilities & Shareholders Equity 1,346,120 2,992,717
Interim Report
	Interim Report      Data Not Available
Pro Forma Report
	Pro Forma Report      Data Not Available
Quarterly Report
	Quarterly Report Information      Quarterly Revenue, US$ Year Quarter Revenue   2010   1 360,000   2009   1 710,000   2009   2 830,000   2009   3 1,040,000   2009   4 (1,170,000)   2009   Full Year 1,420,000   2008   1 1,420,000   2008   2 1,730,000   2008   3 1,590,000   2008   4 140,000   2008   Full Year 4,870,000   2007   1 940,000   2007   2 1,200,000   2007   3 1,430,000   2007   4 1,360,000   2007   Full Year 4,940,000   2006   1 1,900,000   2006   2 1,330,000   2006   3 750,000   2006   4 700,000   2006   Full Year 3,650,000   2005   1 250,000   2005   2 410,000   2005   3 340,000   2005   4 1,700,000   2005   Full Year 2,700,000     Quarterly Net Income, US$ Year Quarter Revenue   2010   1 (920,000)   2009   1 (1,590,000)   2009   2 (1,730,000)   2009   3 (2,870,000)   2009   4 (3,350,000)   2009   Full Year (9,540,000)   2008   1 (1,830,000)   2008   2 (1,300,000)   2008   3 (1,390,000)   2008   4 (5,300,000)   2008   Full Year (9,820,000)   2007   1 (1,290,000)   2007   2 (1,210,000)   2007   3 (1,560,000)   2007   4 (1,420,000)   2007   Full Year (5,510,000)   2006   1 (1,600,000)   2006   2 (30,000)   2006   3 430,000   2006   Full Year (2,498,100)   2005   1 (290,000)   2005   2 (860,000)   2005   3 (2,180,000)   2005   4 (12,250,000)   2005   Full Year (15,590,600)     Quarterly EPS, US$ Year Quarter Revenue   2010   1 (.05)   2009   1 (.09)   2009   2 (.09)   2009   3 (.16)   2009   4 (.18)   2009   Full Year (.52)   2008   1 (.10)   2008   2 (.07)   2008   3 (.08)   2008   4 (.29)   2008   Full Year (.54)   2007   1 (.08)   2007   2 (.07)   2007   3 (.09)   2007   4 (.08)   2007   Full Year (.32)   2006   1 (.11)   2006   2 Nil   2006   3 .03   2006   4 (.10)   2006   Full Year (.16)   2005   1 (.02)   2005   2 (.07)   2005   3 (.17)   2005   4 (.84)   2005   Full Year (1.20)
Stock Data
	Capitalization as of 03/31/2010:     Authorized Shares Outstanding Shares Common $0.001 par 45,000,000 18,342,542 Preferred $0.001 par 5,000,000 None   LONG TERM DEBT: $10,279,790.   Common $0.001 par   Stockholders:  04/14/2010, 198. PRINCIPAL STOCKHOLDER: April 20, 2010, Atlas Capital SA owned or controlled 39.6% of the Common and Doron Roethler 13.2%.   Transfer Agent:  Continental Stock Transfer & Trust Co.   New York , NY   OTC Bulletin Board( Primary): SOLN   Exchange Year High Low OTC Bulletin Board 2009 2.6000 0.4000 OTC Bulletin Board 2008 3.4000 1.3200 OTC Bulletin Board 2007 3.0000 0.5500 OTC Bulletin Board 2006 10.0000 0.9000 OTC Bulletin Board 2005 11.5000 0.0500   DIVIDENDS: Common $0.001 par: No cash.