|
·
|
Total revenue recognized for fiscal third quarter of 2014 grew 61% as compared to the third quarter of 2013, from $979,000 to $1,575,000 respectively;
|
|
·
|
Direct sales bookings increased for the fifth consecutive quarter to $512,000 representing a 241% increase over $150,000 recorded in the third quarter of 2013;
|
|
·
|
Completed merger with the National Association of Professional Women (“NAPW”), on September 24, 2014. Post-merger achievements include:
|
|
o
|
The Company exceeded its goal of targeted cost savings resulting from the merger and now anticipates company-wide expense reductions of $3 million. The Company believes these savings will not have an adverse effect on future revenues;
|
|
o
|
Consolidation contributes to anticipated October year over year booked revenue increase over 2013; and
|
|
o
|
Integration plan proceeding on schedule including the anticipated soon to be released new online NAPW Networking Platform, Membership Management System and increasing NAPW Networking Events from one national event in 2014 to 18 national and regional events in 2015.
|
Date:
|
Friday, November 14, 2014
|
Time:
|
4:30PM Eastern / 1:30PM Pacific
|
Participant Dial-In:
|
877-407-9205 (Toll Free), 201-689-8054 (International)
|
Three Months Ended
September 30,
|
||||||||
2014
|
2013
|
|||||||
Revenues
|
||||||||
Recruitment services
|
$ | 712,728 | $ | 601,539 | ||||
Consumer advertising and consumer marketing solutions revenue
|
448,860 | 377,750 | ||||||
Membership fees and related services
|
402,397 | - | ||||||
Product sales and other revenue
|
11,395 | - | ||||||
Total revenues
|
1,575,380 | 979,289 | ||||||
Costs and expenses:
|
||||||||
Cost of sales and services
|
388,084 | 235,304 | ||||||
Sales and marketing
|
991,785 | 606,606 | ||||||
General and administrative
|
648,218 | 529,806 | ||||||
Depreciation and amortization
|
130,065 | 66,412 | ||||||
Gain on sale of property and equipment
|
- | 576 | ||||||
Total costs and expenses
|
2,158,152 | 1,438,704 | ||||||
Loss from operations
|
(582,772 | ) | (459,415 | ) | ||||
Other income (expense)
|
||||||||
Interest expense
|
(377 | ) | - | |||||
Interest and other income
|
27,791 | 5,717 | ||||||
Acquisition related costs
|
(968,839 | ) | - | |||||
Loss on sale of marketable securities
|
- | (7,640 | ) | |||||
Other income (expense), net
|
(941,425 | ) | (1,923 | ) | ||||
Change in fair value of warrant liability
|
(34,547 | ) | 4,456 | |||||
Loss before income taxes
|
(1,558,744 | ) | (456,882 | ) | ||||
Income tax (benefit) expense
|
(617,717 | ) | (185,382 | ) | ||||
Net loss
|
$ | (941,027 | ) | $ | (271,500 | ) | ||
Other comprehensive (loss) income:
|
||||||||
Net loss
|
$ | (941,027 | ) | $ | (271,500 | ) | ||
Unrealized gains on marketable securities
|
- | (3,782 | ) | |||||
Reclassification adjustments for losses on
marketable securities included in net income |
- | 7,640 | ||||||
Comprehensive loss
|
$ | (941,027 | ) | $ | (267,642 | ) | ||
Net loss per common share, basic and diluted
|
$ | (0.14 | ) | $ | (0.04 | ) | ||
Shares used in computing pro forma net loss per
common share: |
||||||||
Basic and diluted
|
6,721,357 | 6,318,227 | ||||||
Pro-forma computation related to conversion to a C
corporation upon completion of initial public offering:
|
||||||||
Historical pre-tax net loss before taxes
|
$ | (1,558,744 | ) | $ | (456,882 | ) | ||
Pro-forma tax benefit
|
(617,717 | ) | (185,382 | ) | ||||
Pro-forma net loss
|
$ | (941,027 | ) | $ | (271,500 | ) | ||
Pro-forma loss per share - basic and diluted
|
||||||||
Unaudited pro-forma loss per share
|
$ | (0.14 | ) | $ | (0.04 | ) | ||
Weighted average number of shares outstanding
|
6,721,357 | 6,318,227 |
September 30,
|
December 31,
|
|||||||
2014
|
2013
|
|||||||
Current Assets:
|
||||||||
Cash and cash equivalents
|
$ | 1,821,818 | $ | 18,736,495 | ||||
Accounts receivable
|
1,203,323 | 1,218,112 | ||||||
Short-term investments
|
9,237,513 | - | ||||||
Incremental direct costs
|
966,297 | - | ||||||
Prepaid license fee
|
393,750 | - | ||||||
Prepaid expenses and other current assets
|
613,759 | 99,094 | ||||||
Total current assets
|
14,236,460 | 20,053,701 | ||||||
Property and equipment, net
|
844,485 | 54,781 | ||||||
Capitalized technology, net
|
559,055 | 692,511 | ||||||
Goodwill
|
45,353,016 | 735,328 | ||||||
Intangible assets, net
|
14,428,742 | 90,400 | ||||||
Merchant reserve
|
1,532,116 | - | ||||||
Deferred tax asset
|
51,574 | 380,832 | ||||||
Security deposits
|
354,835 | 12,644 | ||||||
Other assets
|
10,000 | - | ||||||
Total assets
|
$ | 77,370,283 | $ | 22,020,197 | ||||
Current Liabilities:
|
||||||||
Accounts payable
|
$ | 5,658,458 | $ | 222,961 | ||||
Accrued expenses
|
1,590,250 | 188,462 | ||||||
Deferred revenue
|
9,699,756 | 1,024,420 | ||||||
Customer deposits
|
393,750 | - | ||||||
Note payable - related party acquisition financing
|
434,582 | - | ||||||
Warrant liability
|
106,236 | 85,221 | ||||||
Capital lease obligations
|
17,093 | - | ||||||
Total current liabilities
|
17,900,125 | 1,521,064 | ||||||
Deferred tax liability
|
4,376,686 | - | ||||||
Total liabilities
|
22,276,811 | 1,521,064 | ||||||
Commitments and contingencies
|
||||||||
Stockholders' Equity
|
||||||||
Common stock, $0.01 par value, 25,000,000 shares
authorized, 12,628,072 shares and 6,318,227 shares issued as of September 30, 2014 and December 31, 2013, respectively, and 12,619,690 and 6,316,027 shares outstanding as of September 30, 2014 and December 31, 2013, respectively |
126,280 | 63,182 | ||||||
Additional paid in capital
|
58,132,426 | 21,883,593 | ||||||
Accumulated deficit
|
(3,128,117 | ) | (1,436,387 | ) | ||||
Treasury stock, at cost; 8,382 shares at September 30, 2014
and 2,200 shares at December 31, 2013 |
(37,117 | ) | (11,255 | ) | ||||
Total stockholders' equity
|
55,093,472 | 20,499,133 | ||||||
Total liabilities and stockholders' equity
|
$ | 77,370,283 | $ | 22,020,197 |