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| 8-K - Fraud Protection Network, Inc. | f2sfpni8k081318.htm |
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2500 E Hallandale Beach Blvd · Suite 404 · Hallandale Beach, FL 33009 · (855) 203-0683 |
Fraud Protection Network, Inc. Reports 2018 Second Quarter Financial Results
HALLANDALE BEACH, FL, August 13, 2018. (GLOBENEWSWIRE) – Fraud Protection Network, Inc. (the "Company" or "Fraud Protection Network"), which offers consumer credit and identity solutions both direct-to-consumers as well as to enterprise customers, today announced financial results for its second quarter ended June 30, 2018.
Second Quarter 2018 Financial Highlights
- Revenues were $475,238 compared to $67,543 for the comparative 2017 quarter, an increase of 604%.
- Loss from operations was $576,413 compared to $398,470 for the comparative 2017 quarter.
- Net loss was $643,973 compared to $440,798 for the comparative 2017 quarter.
Edward Margolin, Chief Executive Officer of Fraud Protection Network, stated, “I am very proud of our team at Fraud Protection Network in achieving these second quarter results and pleased to announce record revenues on a quarterly basis. We are extremely excited about the prospects for future growth.”
The tables below are derived from the Company’s unaudited, condensed financial statements included in its Quarterly Report on Form 10-Q filed today with the Securities and Exchange Commission. Please refer to the Form 10-Q for complete financial statements and further information regarding the Company’s results of operations for the period ended June 30, 2018.
Note Regarding Forward-Looking Statements
This press release contains certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 including statements regarding expectations and potential for the Company’s future. The Company has tried to identify these forward-looking statements by using words such as “may”, “should,” “expect,” “hope,” “anticipate,” “believe,” “intend,” “plan,” “estimate” and similar expressions. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties and other factors that could cause its actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks include the inability to expand our customer base, pricing pressures, lack of success of new sales people and any unanticipated issues. No assurance can be given that the actual results will be consistent with the forward-looking statements. Investors should read carefully the factors described in the “Risk Factors” section of the Company’s filings with the SEC, including the Company’s annual financial statements for the year ended December 31, 2017 included in Form S-1, as amended, for information regarding risk factors that could affect the Company’s results. Except as otherwise required by federal securities laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.
About Fraud Protection Network, Inc.
Fraud Protection Network, headquartered in Hallandale Beach, Florida, provides consumer credit and identity solutions, both direct-to-consumers as well as to enterprise customers. A commitment to technology enables the Company to deliver innovative, customized solutions designed to meet its customers’ specific needs. The Company’s consumer platforms include the subscription-based combination of identity theft protection services and on-time rental reporting as well as peer-to-peer tenant screening. The Company’s enterprise solutions include Credit PreScreening, Loan PreQualification, software development, and EI3PA hosting services.
Company Contact:
Fraud
Protection Network, Inc.
Janette Rodriguez, Marketing
Tel: (855) 203-0683
Email: pr@fraudprotectionnetwork.com
Investor Relations Contact:
First
Apex International
Email: admin@firstapexinternational.com
FRAUD PROTECTION NETWORK, INC.
CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| Net revenues | $ | 475,238 | $ | 67,543 | $ | 803,113 | $ | 84,398 | ||||||||
| Operating expenses: | ||||||||||||||||
| Sales and marketing | 166,368 | 11,111 | 294,981 | 14,989 | ||||||||||||
| Data | 269,071 | 107,203 | 414,261 | 146,815 | ||||||||||||
| Technology and software maintenance | 51,534 | 49,047 | 97,046 | 79,265 | ||||||||||||
| General and administrative | 537,856 | 276,554 | 853,044 | 477,975 | ||||||||||||
| Depreciation and amortization | 26,822 | 22,098 | 53,729 | 36,158 | ||||||||||||
| Total operating expenses | 1,051,651 | 466,013 | 1,713,061 | 755,202 | ||||||||||||
| Operating loss | (576,413 | ) | (398,470 | ) | (909,948 | ) | (670,804 | ) | ||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 574 | — | 574 | — | ||||||||||||
| Interest expense | (68,134 | ) | (42,328 | ) | (114,816 | ) | (71,945 | ) | ||||||||
| Total other expense, net | (67,560 | ) | (42,328 | ) | (114,242 | ) | (71,945 | ) | ||||||||
| Loss before income taxes | (643,973 | ) | (440,798 | ) | (1,024,190 | ) | (742,749 | ) | ||||||||
| Provision for income taxes | — | — | — | — | ||||||||||||
| Net loss | $ | (643,973 | ) | $ | (440,798 | ) | $ | (1,024,190 | ) | $ | (742,749 | ) | ||||
| Loss per share: | ||||||||||||||||
| Basic and diluted | $ | (0.06 | ) | $ | (0.05 | ) | $ | (0.10 | ) | $ | (0.08 | ) | ||||
| Weighted average number of common | ||||||||||||||||
| shares outstanding: | ||||||||||||||||
| Basic and diluted | 10,074,118 | 9,524,549 | 10,037,264 | 9,682,619 | ||||||||||||
FRAUD PROTECTION NETWORK, INC.
CONDENSED BALANCE SHEETS
| June 30, | December 31, | |||||||
| 2018 | 2017* | |||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash | $ | 61,024 | $ | 179,675 | ||||
| Accounts receivable | 168,633 | 32,069 | ||||||
| Deferred costs | 17,080 | 12,276 | ||||||
| Prepaid expenses and other current assets | 45,072 | 37,594 | ||||||
| Total current assets | 291,809 | 261,614 | ||||||
| Property and equipment, net | 107,596 | 120,921 | ||||||
| Software development costs, net | 261,169 | 195,251 | ||||||
| Investment in joint venture | 115,734 | 116,463 | ||||||
| Other assets | 2,430 | 2,430 | ||||||
| Total assets | $ | 778,738 | $ | 696,679 | ||||
| Liabilities and shareholders' deficit | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 404,739 | $ | 145,523 | ||||
| Accrued expenses and other current liabilities | 71,514 | 112,663 | ||||||
| Deferred revenues | 78,839 | 48,816 | ||||||
| Convertible notes payable, current | 1,285,000 | 1,430,000 | ||||||
| Total current liabilities | 1,840,092 | 1,737,002 | ||||||
| Long-term liabilities: | ||||||||
| Convertible notes payable, non-current (net of unamortized debt discount | ||||||||
| of $72,207) | 427,793 | — | ||||||
| Total liabilities | 2,267,885 | 1,737,002 | ||||||
| Commitments and contingencies - See Note 8 | ||||||||
| Shareholders' deficit: | ||||||||
| Preferred stock, par value $0.001 per share; 1,000,000 shares authorized; | ||||||||
| 1,000,000 shares issued and outstanding | 5,000 | 5,000 | ||||||
| Common stock, par value $0.001 per share; 50,000,000 shares authorized; | ||||||||
| 10,289,567 and 10,000,000 shares issued and outstanding | ||||||||
| at June 30, 2018 and December 31, 2017, respectively | 10,290 | 10,000 | ||||||
| Additional paid-in capital | 5,093,990 | 4,518,914 | ||||||
| Accumulated deficit | (6,598,427 | ) | (5,574,237 | ) | ||||
| Total shareholders' deficit | (1,489,147 | ) | (1,040,323 | ) | ||||
| Total liabilities and shareholders' deficit | $ | 778,738 | $ | 696,679 | ||||
*Restated for adoption of ASC 606.