StreamTrack Announces Cancellation of Potential $2.5 Million Royalty Liability
September 05 2013 - 9:00AM
Marketwired
StreamTrack, Inc. (OTCQB: STTK) ("StreamTrack" or the "Company"), a
digital media technology services company operating within the
internet radio and streaming media sectors, today announced the
Company has executed a settlement agreement with Lenco Mobile, Inc
("Lenco"), the former owner of the Company's proprietary
Radioloyalty™ music streaming and internet radio monetization
platform. The following is a summary of the key attributes of the
transaction.
1. StreamTrack's liability to Lenco for any earn-out
consideration associated with the assets the Company purchased from
Lenco in December 2011 is cancelled in full. StreamTrack will write
off the current full value of the contingent royalty payable of
approximately $820,000.
2. StreamTrack will waive its claim to collect on approximately
$130,000 in accounts receivable owed from Lenco, of which an
$80,000 reserve was previously recorded against.
3. StreamTrack will transfer to Lenco certain assets included in
the December 2011 transaction that have remained dormant and not
utilized by the Company since December 2011. The assets were
previously recorded on StreamTrack's books with no value.
Michael Hill, Chief Executive Officer of StreamTrack, stated,
"The settlement with Lenco removes a significant liability from our
balance sheet that could have ultimately totaled $2,500,000. The
assets we relinquished have little value to our core business but
have particular value to Lenco. We are pleased to move forward with
our business without the overhang of this large potential royalty
liability."
About StreamTrack, Inc. StreamTrack, Inc.
(the "Company") is a digital media and technology services company.
The Company provides audio and video streaming and advertising
services through its RadioLoyalty™ Platform (the "Platform") to
over 5,000 internet and terrestrial radio stations and other
broadcast content providers. The Platform consists of a web-based
and mobile player that manages streaming audio and video content,
social media engagement, display and video ad serving within the
web player and is also capable of replacing audio ads with video
ads within the web player in a live or on-demand environment. The
Company offers the Platform directly to its broadcasters and
integrates or white labels its technologies with web-based internet
radio guides and other web-based content providers. The Company is
also continuing development of WatchThis™, a patent-pending
technology to provide web, mobile and IP television streaming
services that are e-commerce enabled within streamed content.
For more information visit: http://www.streamtrack.com or
http://www.radioloyalty.com
Forward-Looking Statements Certain
statements contained herein constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements are based on current
expectations, estimates and projections about StreamTrack's
industry, management's beliefs and certain assumptions made by
management. Readers are cautioned that any such forward-looking
statements are not guarantees of future performance and are subject
to certain risks, uncertainties and assumptions that are difficult
to predict. Because such statements involve risks and
uncertainties, the actual results and performance of the Company
may differ materially from the results expressed or implied by such
forward-looking statements. Given these uncertainties, readers are
cautioned not to place undue reliance on such forward-looking
statements. Unless otherwise required by law, the Company also
disclaims any obligation to update its view of any such risks or
uncertainties or to announce publicly the result of any revisions
to the forward-looking statements made here. Readers should review
carefully reports or documents the Company files periodically with
the Securities and Exchange Commission.