Attached files
| file | filename |
|---|---|
| EX-99.2 - Bright Mountain Media, Inc. | ex99-2.htm |
| 8-K - Bright Mountain Media, Inc. | form8-k.htm |
Exhibit 99.1
Bright Mountain Media Reports First Quarter 2020 Financial Results
Company Expects Fiscal 2020 Revenues to Increase at Least 214% to at Least $22M
Company to Host Virtual Investor Webinar Tomorrow, Wednesday, July 1st at 11:30 a.m. Eastern Time
Boca Raton, FL, June 30, 2020 — Bright Mountain Media, Inc. (OTCQB: BMTM), an end-to-end digital media and advertising services platform, has provided its financial results for the first quarter ended March 31, 2020.
Management Commentary
“The first quarter of 2020 built upon our successes in 2019, where we successfully initiated our efforts to launch a fully integrated, end-to-end digital media and advertising services platform,” said Kip Speyer, Chairman and Chief Executive Officer of Bright Mountain Media. “In the quarter, we saw advertisers hesitate in deploying ad dollars due to COVID related uncertainty. Despite these headwinds, Bright Mountain was able to grow revenues by 109% to $2.3 million in the first quarter of 2020, and in time, we expect these challenges to subside as we enter a more normalized environment in the back half of 2020.
“As we continue to capture more of the ad-dollar within the value chain, we create more value than the sum of our parts, allowing incredibly efficient demographic targeting with unique ad syndication capabilities. Most notably in June, we successfully acquired Wild Sky Media, an interactive media company that according to Google analytics reaches approximately 30 million monthly unique visitors through its hyper-engaging content, further strengthening our platform model. We seek to enable their robust, complimentary portfolio of websites to more efficiently create value from their niche, diverse audiences leveraging our proprietary content and ad delivery technologies.
“On the capital markets front, I am pleased to have started the process to uplist to a national exchange, which we believe will broaden our potential investor base and grow our brand reach, resulting in greater liquidity for our shareholders. We will continue to work closely with the national exchanges to execute upon this incredible milestone for our combined company.
“As we move into 2020, I am confident in our ability to execute upon the business opportunity facing us today. In fact, we expect revenues in fiscal 2020 of $22 million, an increase of 214% over fiscal 2019 revenues. I look forward to continued progress in the years ahead, creating sustainable long-term value for our shareholders,” concluded Speyer.
First Quarter 2020 Financial Summary
| ● | Total revenue for the first quarter of 2020, was $2.3 million, compared to revenue of $1.1 million in the same year-ago quarter. The increase in revenue was due to an increase in advertising revenue resulting from the acquisitions of Oceanside Media and MediaHouse, in spite of the negative influence of Covid-19 on the digital advertising market. | |
| ● | Selling, general and administrative expenses for the first quarter of 2020 were $4.0 million, compared to $0.9 million in the same year-ago quarter. The increase in selling, general and administrative expenses included $1.0 million of non-cash amortization of intangible assets, $0.4 million in non-cash expenses associated with an equity raise and $0.3 million of acquisition related audit and consulting fees. | |
| ● | Net loss for the first quarter of 2020 was $3.5 million, compared to a net loss of $0.7 million in the same year-ago quarter. The increase in net loss was primarily related to aforementioned non-cash operating expenses. | |
| ● | Cash and cash equivalents and short-term deposits were $1.3 million as of March 31, 2020, compared with $1.0 million as of March 31, 2019. | |
| ● | Cash used in operations for the first quarter of 2020 was $1.4 million, compared with cash used in operations of $0.6 million in the same year-ago quarter. |
Financial Guidance
Management expects revenues in fiscal 2020 to be at least $22.0 million, representing an increase of at least 214% when compared to revenues of $7.0 million in fiscal 2019.
Virtual Roadshow Webinar
The Company will host a virtual roadshow webinar tomorrow, July 1st, 2020 at 11:30 a.m. Eastern time, where Greg Peters, President and Chief Operating Officer of Bright Mountain Media, will present an overview of the business model and discuss recent growth initiatives, including the recent acquisition of Wild Sky Media. The webinar will be accompanied by a presentation and followed by a question and answer session, which can be accessed via the webcast link or dial-in numbers below.
To access the webinar, please use the following information:
Date: Wednesday, July 1st, 2020
Time: 8:30 a.m. Pacific time (11:30 a.m. Eastern time)
Dial-in: 1-888-204-4368
International Dial-in: 1-323-994-2093
Conference Code: 4978335
Webcast: http://public.viavid.com/index.php?id=140018
A telephone replay will be available approximately two hours after the call and will run through October 1st, 2020 by dialing 1-844-512-2921 from the U.S., or 1-412-317-6671 from international locations, and entering replay pin number: 4978335. The replay can also be viewed through the webinar webcast link above.
About Bright Mountain Media
Bright Mountain Media, Inc. (OTCQB: BMTM) is an end-to-end digital media and advertising services platform, efficiently connecting brands with targeted consumer demographics. Through the removal of middlemen in the advertising services process, Bright Mountain Media efficiently connects brands with targeted consumer demographics while maximizing revenue to publishers. Bright Mountain Media’s assets include the Bright Mountain Media ad network, MediaHouse (f/k/a NDN), Oceanside (f/k/a S&W Media), CL Media Holdings (d/b/a/ Wild Sky Media) and 24 owned and/or managed websites. For more information, please visit brightmountainmedia.com.
Forward-Looking Statements for Bright Mountain Media, Inc.
This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties. Such forward-looking statements can be identified by the use of words such as “should,” “may,” “intends,” “anticipates,” “believes,” “estimates,” “projects,” “forecasts,” “expects,” “plans,” and “proposes,” and similar words. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including, without limitation, statements made with respect to expectations of our ability to close the proposed acquisition of Inform, Inc., any the realization of any expected benefits from such transaction if closed. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading “Risk Factors” in Bright Mountain Media, Inc.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 as filed with the Securities and Exchange Commission on May 14, 2020 and our other filings with the SEC. Bright Mountain Media, Inc. does not undertake any duty to update any forward-looking statements except as may be required by law.
Investor Contact:
Greg Falesnik or Luke Zimmerman
MZ Group - MZ North America
949-259-4987
BMTM@mzgroup.us
www.mzgroup.us
BRIGHT MOUNTAIN MEDIA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
| March 31, 2020 | December 31, 2019 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 1,270,023 | $ | 957,013 | ||||
| Accounts receivable, net | 3,207,560 | 3,997,475 | ||||||
| Note receivable, net | 38,329 | 63,812 | ||||||
| Prepaid expenses and other current assets | 485,074 | 752,975 | ||||||
| Current assets - discontinued operations | - | 1,705 | ||||||
| Total Current Assets | 5,000,986 | 5,772,980 | ||||||
| Property and equipment, net | 25,413 | 30,666 | ||||||
| Website acquisition assets, net | 35,316 | 48,928 | ||||||
| Intangible assets, net | 18,671,791 | 19,610,801 | ||||||
| Goodwill | 53,646,856 | 53,646,856 | ||||||
| Prepaid services/consulting agreements - long term | 775,000 | 913,182 | ||||||
| Right of use asset | 348,721 | 397,912 | ||||||
| Other assets | 94,672 | 35,823 | ||||||
| Total Assets | $ | 78,598,755 | $ | 80,457,148 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | $ | 8,152,462 | $ | 8,358,442 | ||||
| Accrued expenses | 893,540 | 3,228,328 | ||||||
| Accrued interest to related party | 8,652 | 6,629 | ||||||
| Premium finance loan payable | 125,453 | 179,844 | ||||||
| Deferred revenues | 18,609 | 6,651 | ||||||
| Long term debt, current portion | 165,163 | 165,163 | ||||||
| Operating lease liability, current portion | 215,004 | 211,744 | ||||||
| Current liabilities - discontinued operations | - | 591 | ||||||
| Total Current Liabilities | 9,578,883 | 12,157,392 | ||||||
| Long term debt to related parties, net | 29,179 | 25,689 | ||||||
| Deferred tax liability | 516,941 | 581,440 | ||||||
| Operating lease liability, net of current portion | 130,979 | 198,232 | ||||||
| Total Liabilities | 10,255,982 | 12,962,753 | ||||||
| Commitments and Contingencies | ||||||||
| Shareholders’ Equity | ||||||||
| Convertible preferred stock, par value $0.01, 20,000,000 shares authorized, | ||||||||
| Series A-1, 2,000,000 shares designated, 1,200,000 and 1,200,000 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 12,000 | 12,000 | ||||||
| Series B-1, 6,000,000 shares designated, 0 and 0 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively | - | - | ||||||
| Series E, 2,500,000 shares designated, issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 25,000 | 25,000 | ||||||
| Series F, 4,344,017 shares designated, issued and outstanding at March 31, 2020 and December 31, 2019, respectively | 43,440 | 43,440 | ||||||
| Common stock, par value $0.01, 324,000,000 shares authorized, 106,732,860 and 100,244,312 issued and 84,491,031 and 78,063,531 outstanding at March 31, 2020 and December 31, 2019, respectively | 1,067,329 | 1,002,444 | ||||||
| Additional paid-in capital | 91,099,013 | 86,856,500 | ||||||
| Accumulated deficit | (23,904,009 | ) | (20,444,989 | ) | ||||
| Total shareholders’ equity | 68,342,773 | 67,494,395 | ||||||
| Total Liabilities and Shareholders’ Equity | $ | 78,598,755 | $ | 80,457,148 | ||||
BRIGHT MOUNTAIN MEDIA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
| For the Three Months Ended March 31, | ||||||||
| 2020 | 2019 | |||||||
| Revenues | ||||||||
| Advertising | $ | 2,270,186 | $ | 1,085,456 | ||||
| Cost of revenue | ||||||||
| Advertising | 1,823,082 | 885,696 | ||||||
| Gross profit | 447,104 | 199,760 | ||||||
| Selling, general and administrative expenses | 3,979,378 | 915,954 | ||||||
| Loss from continuing operations | (3,532,274 | ) | (716,194 | ) | ||||
| Other income (expense) | ||||||||
| Interest income | 10,993 | 6,006 | ||||||
| Gain on settlement of liability | - | 122,500 | ||||||
| Other expense | (215 | ) | - | |||||
| Interest expense | - | (909 | ) | |||||
| Interest expense - related party | (2,023 | ) | (6,201 | ) | ||||
| Total other income | 8,755 | 121,396 | ||||||
| Net loss from continuing operations before tax | (3,523,519 | ) | (594,798 | ) | ||||
| Loss from discontinued operations | - | (115,464 | ) | |||||
| Net loss before tax | (3,523,519 | ) | (710,262 | ) | ||||
| Income tax benefit | 64,499 | - | ||||||
| Net loss | (3,459,020 | ) | (710,262 | ) | ||||
| Preferred stock dividends | ||||||||
| Series A-1, Series E, and Series F preferred stock | (118,252 | ) | (74,171 | ) | ||||
| Net loss attributable to common shareholders | $ | (3,577,272 | ) | $ | (784,433 | ) | ||
| Basic and diluted net loss from continuing operations per share | $ | (0.03 | ) | $ | (0.01 | ) | ||
| Basic and diluted net loss from discontinued operations per share | $ | 0.00 | $ | (0.00 | ) | |||
| Basic and diluted net loss per share | $ | (0.03 | ) | $ | (0.01 | ) | ||
| Weighted average shares outstanding - basic and diluted | 106,098,560 | 62,900,662 | ||||||
BRIGHT MOUNTAIN MEDIA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
March 31, 2020
(Unaudited)
| For the Three Months Ended March 31, | ||||||||
| 2020 | 2019 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (3,459,020 | ) | $ | (710,262 | ) | ||
| Add back: loss attributable to discontinued operations | - | 115,464 | ||||||
| Adjustments to reconcile net loss to net cash used in operations: | ||||||||
| Depreciation | 5,253 | 2,352 | ||||||
| Amortization of debt discount | 3,490 | 3,452 | ||||||
| Amortization | 952,622 | 35,813 | ||||||
| Gain on settlement of liability | - | (122,500 | ) | |||||
| Stock option compensation expense | 36,595 | 3,213 | ||||||
| Stock issued for services rendered | 91,718 | - | ||||||
| Non-cash acquisition fee | 275,000 | - | ||||||
| Change in deferred taxes | (64,499 | ) | - | |||||
| Provision for bad debt | - | 4,034 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 789,915 | (375,928 | ) | |||||
| Prepaid expenses and other current assets | 314,015 | 29,361 | ||||||
| Prepaid services/consulting agreements | 93,182 | 127,500 | ||||||
| Other assets | (58,849 | ) | (4,703 | ) | ||||
| Right of use asset and lease liability | (14,802 | ) | - | |||||
| Accounts payable | (205,980 | ) | 360,393 | |||||
| Accrued expenses | (141,893 | ) | (26,538 | ) | ||||
| Accrued interest – related party | 2,023 | - | ||||||
| Deferred revenues | 11,958 | 2,485 | ||||||
| Net cash (used in) continuing operations for operating activities | (1,369,272 | ) | (555,864 | ) | ||||
| Net cash (used in) discontinued operations | - | (73,589 | ) | |||||
| Net cash (used in) operating activities | (1,369,272 | ) | (629,453 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Cash paid for website acquisition | - | (8,000 | ) | |||||
| Net cash (used in) investing activities | - | (8,000 | ) | |||||
| Cash flows from financing activities: | ||||||||
| Proceeds from issuance of common stock, net | 1,734,937 | 873,950 | ||||||
| Payments of premium finance loan payable | (54,391 | ) | (32,331 | ) | ||||
| Dividend payments | (23,747 | ) | (74,171 | ) | ||||
| Principal payments received (funded) for notes receivable | 25,483 | (64,681 | ) | |||||
| Note receivable funded | - | (375,303 | ) | |||||
| Net cash provided by financing activities | 1,682,282 | 327,464 | ||||||
| Net increase (decrease) in cash and cash equivalents including cash and cash equivalents classified within assets related to continuing operations | 313,010 | (309,989 | ) | |||||
| Net decrease in cash and cash equivalents classified within assets related to discontinued operations | - | (4,943 | ) | |||||
| Net increase (decrease) in cash and cash equivalents | 313,010 | (314,932 | ) | |||||
| Cash and cash equivalents at the beginning of period | 957,013 | 1,042,457 | ||||||
| Cash and cash equivalents at end of period | $ | 1,270,023 | $ | 727,525 | ||||