PR Newswire
LOS ANGELES, April 2, 2018
LOS ANGELES, April 2, 2018 /PRNewswire/ -- Social Reality, Inc. (Nasdaq: SRAX), a digital marketing and consumer data management and distribution technology platform company, reported GAAP net income of $178,000, $0.02 per share, and Adjusted EBITDA gain of $1.2 million for the fourth quarter 2017.
SRAX's CEO and Chairman Christopher Miglino, stated, "Our focus on high margin revenue for the past year culminated in a very strong fourth quarter with a positive bottom line and substantial annual improvements. In 2017, gross margin reached 60%, increasing from 35%, and Adjusted EBITDA improved over $750,000, both when compared to 2016. To broaden our growth opportunities, we also invested in sales talent, including in our consumer-packaged goods vertical, and engineering resources in the past year. Now, we are well positioned to leverage our successful healthcare vertical, both as a model to grow other verticals and as an asset to be monetized. In fact, we are now in the final phase of this process. While we cannot discuss more until a definitive agreement has been signed, we are happy with our progress."
"Additionally, we are excited to be in the next development phase of our consumer data management and distribution system with the Alpha release of our BIG platform. This is particularly relevant since consumers are increasingly realizing the true value of their data as they see large companies monetarily benefiting from their information. We believe our BIG platform will markedly expand the digital data ecosystem by providing consumers the ability to own, verify and sell access to their data, and by improving the quality of enriched data available to advertisers and marketing companies. Overall, we believe 2018 will be a year of strategic change and growth for our verticals and BIG platform."
Financial Results: Fourth Quarter 2017 Compared to Fourth Quarter 2016
Adjusted EBITDA is defined as earnings before interest, taxes, depreciation and amortization, and certain additional one-time expenses. It is not intended to represent a measure of performance in accordance with accounting principles generally accepted in the United States (GAAP). A detailed description and reconciliation of EBITDA and management's reasons for using this measure is set forth at the end of this press release.
2017 Financial Results:
Other Recent Corporate Highlights:
As the company is evaluating strategic alternatives for SRAXmd, management has elected not to provide financial guidance at this time.
Conference Call
Management will review the results on a conference call with a live question and answer session today, April 2, 2018, at 1:30 p.m. ET. To access the call, please use passcode 3536327:
About SRAX
Social Reality, Inc. (NASDAQ: SRAX) is a digital marketing and consumer data management and distribution technology platform company. SRAX's technology delivers the tools to unlock data to reveal brands and content owners' core consumers and their characteristics across marketing channels. Through its blockchain identification graph technology platform, BIG (www.bigtoken.com), SRAX is developing a consumer-powered data marketplace where people will own and sell access to their data thereby providing everyone in the Internet ecosystem transparency, choice and compensation. SRAX's technology and tools deliver a digital competitive advantage for brands in the healthcare, CPG, automotive, sports and lifestyle verticals by integrating all aspects of the advertising experience, including verified consumer participation, into one platform. For more information on SRAX, visit www.srax.com.
Safe Harbor Statement
This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words or expressions such as "anticipate," "plan," "will," "intend," "believe" or "expect'" or variations of such words and similar expressions are intended to identify such forward-looking statements. 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 increase our revenues, satisfy our obligations as they become due, report profitable operations, the ultimate outcome of any proposed transaction with SRAXmd, and other risks and uncertainties, all as set forth in our Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the Securities and Exchange Commission. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are generally outside the control of Social Reality and are difficult to predict. Social Reality undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
Statements contained in this press release also reference the auction process with regards to SRAXmd. Although management is optimistic regarding the successful completion of the auction process, there can be no assurances that the process will be completed, will be successful, or that if such process is completed, that it will be on terms favorable to us.
Contact Information:
Kirsten Chapman, LHA Investor Relations, +1 415 433 3777, srax@lhai.com
SOCIAL REALITY, INC. | |||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||
(unaudited) | |||
| |||
| December 31, | | December 31, |
| 2017 | | 2016 |
Assets | | | |
Current assets: | | | |
Cash and cash equivalents | $ 1,017,299 | | $ 1,048,762 |
Accounts receivable, net | 4,348,305 | | 8,411,019 |
Prepaid expenses | 468,336 | | 332,503 |
Other current assets | 300,898 | | 6,488 |
Total current assets | 6,134,838 | | 9,798,772 |
| | | |
Property and equipment, net of accumulated depreciation | 154,546 | | 55,492 |
Goodwill | 15,644,957 | | 15,644,957 |
Intangibles - net | 1,642,760 | | 1,365,241 |
Other assets | 28,598 | | 34,659 |
| | | |
Total assets | $ 23,605,699 | | $ 26,899,121 |
| | | |
Liabilities and stockholders' equity | | | |
Current liabilities: | | | |
Accounts payable and accrued expenses | $ 5,010,815 | | $ 13,156,083 |
Note payable, net of unamortized costs | - | | 3,418,788 |
Unearned revenue | - | | - |
Put warrant liability | - | | - |
Debenture warrant liability | - | | |
Leapfrog warrant liability | - | | |
Debenture conversion liability | - | | |
Put liability | - | | 1,500,000 |
Total current liabilities | 5,010,815 | | 18,074,871 |
| | | |
Secured convertible debentures, net | 671,146 | | - |
Total liabilities | 5,681,961 | | 18,074,871 |
| | | |
Stockholders' equity | | | |
Preferred stock, authorized 50,000,000 shares, $0.001 par value, no shares issued or outstanding at December 31, 2017 and December 31, 2016, respectively | - | | - |
Class A common stock, authorized 250,000,000 shares, $0.001 par value, 9,910,565 and 6,951,077 shares issued and outstanding at December 31, 2017 and December 31, 2016, respectively | 9,911 | | 6,951 |
Class B common stock, authorized 9,000,000 shares, $0.001 par value, no shares issued or outstanding at December 31, 2017 and December 31, 2016, respectively | - | | - |
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