nFusz To Provide Second Quarter 2018 Results and Business Update
August 14 2018 - 04:05PM
HOLLYWOOD, Calif., Aug. 14, 2018 (GLOBE NEWSWIRE) -- nFusz,
Inc. (OTCQB:FUSZ), the interactive video technology company,
provided a company update and reported financial results for the
quarter ended June 30, 2018.
“It’s a very exciting time for nFusz stockholders,”
stated nFusz CEO Rory J. Cutaia. “I’m delighted to share the
details of our ongoing efforts to build real stockholder
value. We’ve had a very productive second quarter during
which we’ve expanded our relationships with our distribution
partners, cultivated new ones, and developed and launched several
updates to our flagship product, notifiCRM. More recently,
we’ve unveiled our new notifiMED application, an interactive
video-based diagnostic reporting tool for physicians and other
health care practitioners, and announced the development of a new
consumer version of our notifiLIVE application, allowing users to
add interactive links to the live video streams they broadcast from
their mobile devices.
“In addition, as part of our plan to accelerate
growth, we are currently evaluating a potential new acquisition
that could expand our reach into the network and affiliate
marketing sector. We’ve also made progress with our plan to list
our securities on NASDAQ, among many other value creation
initiatives,” concluded Cutaia.
Company Video
The video, featuring nFusz CEO Rory J. Cutaia, will be broadcast
through the company’s website at 5:00 p.m. EST today, August
14th.
Financial Commentary
While revenue was approximately $8,000 for second quarter 2018,
income from operations was $393,000, reflecting a contra stock
compensation expense of $1.2 million attributed to the revaluation
of consultants’ unvested restricted stock and stock options. This
compared to no revenue and an operating loss of $1.4 million in the
second quarter of 2017. The company recorded a $1.4 million gain
related to the change in fair value of derivative liability in
second quarter 2018, versus a $527,000 charge for debt
extinguishment in second quarter 2017. Net income was $1.8 million,
or $0.01, in the second quarter of 2018, compared to net loss of
$2.1 million, or $0.02 in second quarter 2017. At June 30, 2018,
cash and cash equivalents were $1.4 million.
Today, the company filed Forms 10-Q and an S-1 with
SEC.
About nFusz, Inc.
nFusz, Inc. (FUSZ) is the recognized leader in business-focused
interactive video. Our proprietary next-generation interactive
video technology is the core of our cloud, Software-as-a-Service
(SaaS) products. Our flagship product, notifiCRM, is a Customer
Relationship Management (CRM), sales/lead generation, and social
engagement platform, accessible on all mobile and desktop devices –
and no download of any kind is required. With notifiCRM, anyone can
create, distribute, and post interactive videos that do the selling
for you, effectively eliminating friction and sales skill from the
sales process. Prospects and customers can respond to your
call to action right in the video, while the video is playing and
while their interest level is piqued. Our users report
significant increases in engagement and conversion rates. Our
platform can accommodate any size campaign or sales organization,
and it is enterprise-class scalable to meet the needs of today’s
global organizations. Our products give business
professionals the tools they need to compete effectively in today’s
video-centric business and social media environment. For more
information on nFusz, Inc., visit www.nFusz.com.
CONTACT INFORMATION
LHA Investor Relations, Kirsten Chapman/Moriah Shilton 415-433-3777
nfusz@lhai.com
nFÜSZ, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
June 30, 2018 |
|
|
December 31, 2017 |
|
|
|
(Unaudited) |
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets: |
|
|
|
|
|
|
|
|
Cash |
|
$ |
1,420,798 |
|
|
$ |
10,560 |
|
Prepaid
expenses |
|
|
47,646 |
|
|
|
40,909 |
|
Total current
assets |
|
|
1,468,444 |
|
|
|
51,469 |
|
Property and equipment,
net |
|
|
20,060 |
|
|
|
30,554 |
|
Other assets |
|
|
16,811 |
|
|
|
8,780 |
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
1,505,315 |
|
|
$ |
90,803 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ DEFICIT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
|
|
Accounts
payable and accrued expenses |
|
$ |
547,908 |
|
|
$ |
663,506 |
|
Accrued
interest (including $34,656 and $99,425 payable to related
parties) |
|
|
34,656 |
|
|
|
248,120 |
|
Accrued
officers’ salary |
|
|
124,250 |
|
|
|
607,333 |
|
Note
payable |
|
|
- |
|
|
|
125,000 |
|
Notes
payable - related party |
|
|
1,964,985 |
|
|
|
1,964,985 |
|
Convertible notes payable, net of discount of $0 and $675,443,
respectively |
|
|
- |
|
|
|
1,020,315 |
|
Derivative liability |
|
|
1,014,227 |
|
|
|
1,250,581 |
|
Total current
liabilities |
|
|
3,686,026 |
|
|
|
5,879,840 |
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’
deficit |
|
|
|
|
|
|
|
|
Preferred
stock, $0.0001 par value, 15,000,000 shares authorized, none issued
or outstanding |
|
|
- |
|
|
|
- |
|
Common
stock, $0.0001 par value, 200,000,000 shares authorized,
153,698,043 and 119,118,513 shares issued and outstanding as of
June 30, 2018 and December 31, 2017 |
|
|
15,370 |
|
|
|
11,912 |
|
Additional paid-in capital |
|
|
33,066,404 |
|
|
|
22,738,574 |
|
Common
stock issuable, 4,500,000 shares |
|
|
- |
|
|
|
430 |
|
Accumulated deficit |
|
|
(35,262,485) |
|
|
|
(28,539,953) |
|
|
|
|
|
|
|
|
|
|
Total
stockholders’ deficit |
|
|
(2,180,711) |
|
|
|
(5,789,037) |
|
|
|
|
|
|
|
|
|
|
Total
liabilities and stockholders’ deficit |
|
$ |
1,505,315 |
|
|
$ |
90,803 |
|
|
|
|
|
|
|
|
|
|
nFÜSZ, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
|
|
For the Three Months Ended |
|
|
For the Six Months Ended |
|
|
|
June 30, 2018 |
|
|
June 30, 2017 |
|
|
June 30, 2018 |
|
|
June 30, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales |
|
$ |
8,239 |
|
|
$ |
- |
|
|
$ |
16,242 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research
and development |
|
|
105,733 |
|
|
|
92,240 |
|
|
|
235,733 |
|
|
|
181,840 |
|
General
and administrative |
|
|
(490,145) |
|
|
|
1,352,028 |
|
|
|
4,779,429 |
|
|
|
1,970,028 |
|
Total operating
expenses |
|
|
384,412 |
|
|
|
(1,444,268) |
|
|
|
(5,015,162) |
|
|
|
(2,151,868) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income / (Loss) from
operations |
|
|
392,651 |
|
|
|
(1,444,268) |
|
|
|
(4,998,920) |
|
|
|
(2,151,868) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Income / (Expense) |
|
|
(6,141) |
|
|
|
- |
|
|
|
(12,380) |
|
|
|
- |
|
Change in
fair value of derivative liability |
|
|
1,444,164 |
|
|
|
- |
|
|
|
(1,180,723) |
|
|
|
- |
|
Financing
costs |
|
|
- |
|
|
|
- |
|
|
|
(171,739) |
|
|
|
- |
|
Interest
expense (including $58,788 and $58,788 to related parties for three
months and $116,930 and $116,930 to related parties for six
months) |
|
|
(58,788) |
|
|
|
(86,816) |
|
|
|
(262,721) |
|
|
|
(170,822) |
|
Interest
expense - amortization of debt discount |
|
|
- |
|
|
|
(53,346) |
|
|
|
(747,623) |
|
|
|
(93,024) |
|
Gain on
debt extinguishment, net |
|
|
- |
|
|
|
(526,871) |
|
|
|
651,574 |
|
|
|
(552,871) |
|
Total other
expense |
|
|
1,379,235 |
|
|
|
(667,033) |
|
|
|
(1,723,612) |
|
|
|
(816,717) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income /
(Loss) |
|
$ |
1,771,886 |
|
|
$ |
(2,111,301) |
|
|
$ |
(6,722,532) |
|
|
$ |
(2,968,585) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income / loss
per share - basic and diluted |
|
$ |
0.01 |
|
|
$ |
(0.02) |
|
|
$ |
(0.05) |
|
|
$ |
(0.03) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of common shares outstanding - basic and
diluted |
|
|
152,539,980 |
|
|
|
102,734,185 |
|
|
|
142,335,253 |
|
|
|
99,184,826 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
nFÜSZ,
INC.
RECONCILIATION OF NET INCOME (LOSS) TO
MODIFIED EBITDA
(Unaudited)
Modified EBITDA
In addition to our GAAP results, we present
Modified EBITDA as a supplemental measure of our performance.
However, Modified EBITDA is not a recognized measurement under GAAP
and should not be considered as an alternative to net income,
income from operations or any other performance measure derived in
accordance with GAAP or as an alternative to cash flow from
operating activities as a measure of liquidity. We define Modified
EBITDA as net income (loss), plus interest expense, depreciation
and amortization, stock-based compensation, financing costs and
changes in fair value of derivative liability.
Management considers our core operating performance
to be that which our managers can affect in any particular period
through their management of the resources that affect our
underlying revenue and profit generating operations that period.
Non-GAAP adjustments to our results prepared in accordance with
GAAP are itemized below. Readers are encouraged to evaluate these
adjustments and the reasons we consider them appropriate for
supplemental analysis. In evaluating Modified EBITDA, readers
should be aware that in the future we may incur expenses that are
the same as or similar to some of the adjustments in this
presentation. Our presentation of Modified EBITDA should not be
construed as an inference that our future results will be
unaffected by unusual or non-recurring items.
|
|
|
|
|
|
|
|
|
For the Three months Ended |
|
|
For the Six months Ended |
|
|
|
June 30, 2018 |
|
|
June 30, 2017 |
|
|
June 30, 2018 |
|
|
June 30, 2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
1,771,886 |
|
|
$ |
(2,111,765) |
|
|
$ |
(6,722,532) |
|
|
$ |
(2,968,585) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock Compensation
Expense |
|
|
(1,154,361) |
|
|
|
942,463 |
|
|
|
3,456,593 |
|
|
|
1,206,737 |
|
Change in fair value of
derivative liability |
|
|
(1,444,164) |
|
|
|
- |
|
|
|
1,180,723 |
|
|
|
- |
|
Amortization of debt
discount |
|
|
- |
|
|
|
53,346 |
|
|
|
747,623 |
|
|
|
93,024 |
|
Interest expense |
|
|
58,788 |
|
|
|
86,817 |
|
|
|
262,721 |
|
|
|
170,822 |
|
Financing costs |
|
|
- |
|
|
|
- |
|
|
|
171,739 |
|
|
|
- |
|
Depreciation |
|
|
5,189 |
|
|
|
5,363 |
|
|
|
10,494 |
|
|
|
10,668 |
|
Gain on debt
extinguishment, net |
|
|
- |
|
|
|
526,871 |
|
|
|
(651,574) |
|
|
|
552,871 |
|
Total
EBITDA adjustments |
|
|
(2,534,548) |
|
|
|
1,614,860 |
|
|
|
5,178,319 |
|
|
|
2,034,122 |
|
Modified
EBITDA |
|
$ |
(762,662) |
|
|
$ |
(496,905) |
|
|
$ |
(1,544,213) |
|
|
$ |
(934,463) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|