1. Description of Business Overview Bridgeline Digital, The Digital Engagement Company (the Company), helps customers maximize the performance of their full digital experience from websites and intranets to online stores and campaigns and integrates Web Content Management, eCommerce, Marketing Automation, Site Search, Authenticated Portals, Social Media Management, Translation and Web Analytics to help organizations deliver digital experiences. The Bridgeline Unbound platform is delivered through a cloud-based SaaS (Software as a Service) multi-tenant business model, providing maintenance, daily technical operation and support; or via a traditional perpetual licensing business model, in which the software resides on a dedicated server in either the customers facility or hosted by Bridgeline via a cloud-based hosted services model. OrchestraCMS, delivered through a cloud-based SaaS, is the only content and digital experience platform built 100% native on Salesforce and helps customers create compelling digital experiences for their customers, partners, and employees; uniquely combining content with business data, processes and applications across any channel or device, including Salesforce Communities, social media, portals, intranets, websites, applications and services. Celebros Search, delivered through a cloud-based SaaS, is a commerce oriented, site search product that provides for Natural Language Processing with artificial intelligence to present very relevant search results based on long-tail keyword searches in seven languages. The Company was incorporated under the laws of the State of Delaware on August 28, 2000. Locations The Companys corporate office is located in Burlington, Massachusetts. The Company maintains regional field offices serving the following geographical locations: Boston, Massachusetts; Chicago, Illinois; New York, New York; and Ontario, Canada. The Company has three wholly-owned subsidiaries: Bridgeline Digital Pvt. Ltd. located in Bangalore, India, Bridgeline Digital Canada, Inc. located in Ontario, Canada, and Stantive Technologies Pty. Ltd. located in Australia. Increase in Authorized Shares and Reverse Stock Split On April 26, 2019, the Companys Shareholders and the Board of Directors approved an amendment to the Companys Amended and Restated Certificate of Incorporation to increase the total number of shares of Common Stock, par value $0.001 per share ( Common Stock ), authorized for issuance thereunder from 50 million shares to 2.5 billion shares (the  Increase in Authorized ). On the same date the Companys Shareholders and the Board of Directors also approved an amendment to the Companys Amended and Restated Certificate of Incorporation to effect a reverse stock split of both its issued and outstanding and authorized shares of Common Stock, par value $0.001 per share, at a ratio of one ( 1 ) share of Common Stock for every fifty ( 50 ) shares of Common Stockat any time prior to December 31, 2019 ( the Reverse Split) pursuant to which all classes of the Companys issued and outstanding shares of Common Stock at the close of business on such date were combined and reconstituted into a smaller number of shares of Common Stock in a ratio of one ( 1 ) share of Common Stock for every fifty ( 50 ) shares of Common Stock ( 1 -for- 50 reverse stock split). The 1 -for- 50 reverse stock split was effective as of close of business on May 1, 2019 ( the Effective Date) and the Companys stock began trading on a split-adjusted basis on May 2, 2019. The reverse stock split reduced the number of shares of the Companys Common Stock authorized from 2.5 billion shares to 50 million shares. Proportional adjustments have been made to the conversion and exercise prices of the Companys outstanding convertible preferred stock, warrants, restricted stock awards, and stock options, and to the number of shares issued and issuable under the Companys Stock Incentive Plans. The Company did not issue any fractional shares in connection with the reverse stock split. Instead, any stockholder who would otherwise be entitled to receive a fractional share of Common Stock as a result of the reverse stock split was entitled to receive a cash payment in lieu thereof based on the average of the closing sales prices of a share of the Companys Common Stock on the Nasdaq Capital Market during regular trading hours for the five consecutive trading days immediately preceding the Effective Date. The reverse stock split does not modify the rights or preferences of the Common Stock. The number of authorized shares of the Companys Common Stock is 50 million shares and the par value remains $0.001. The accompanying unaudited interim condensed consolidated financial statements for the three months ended December 31, 2018 and footnotes have been retroactively adjusted to reflect the effects of the 1 -for- 50 reverse stock split which occurred during the Companys fiscal 2019 third quarter. All other periods presented were previously reported having given effect to the 1 -for- 50 reverse stock split. Going Concern The Company has incurred operating losses and used cash in its operating activities for the past several years. Cash was used to fund operations, develop new products, and build infrastructure. During the prior fiscal years and continuing into the current fiscal year, the Company has executed a restructuring plan that included a reduction of workforce and office space, which significantly reduced operating expenses. The Company is continuing to maintain tight control over discretionary spending in the current fiscal year. The Company has zero debt at December 31, 2019. While the Company believes that future revenues and cash flows, as acquisitions completed in the fiscal 2019 second quarter continue to be integrated and a full year of operations occurs, will supplement its working capital and it has an appropriate cost structure to support future revenue growth, based upon its current working capital and projected cash flows in the next twelve months, the Company will need additional sources of financing in place in order to ensure its operations are adequately funded. No definitive agreements for additional financing are in place as of the issuance date of this Form 10 -Q and there can be no assurances that additional sources of financing could be obtained on terms that are favorable or acceptable to us and that revenue growth and improvement in cash flows can be achieved. Accordingly, management believes that there is substantial doubt about the Companys ability to continue as a going concern for at least twelve months following the issuance date of this Form 10 -Q. No adjustments have been made to the accompanying condensed consolidated financial statements as a result of this uncertainty.