$CRWG big earnings news!CrowdGather, Inc. Announces First Quarter Fiscal 2016 Earnings
Fueled by Gaming, Revenues Increased 74% and Gross Profit by 84% From Year Ago
CALABASAS, CA--(Marketwired - Sep 17, 2015) - Specialty social media and gaming network, CrowdGather, Inc. (OTCQB: CRWG), today announced financial results for the first quarter ended July 31, 2015.
The Company reported revenues of $709,151 for the first quarter of fiscal 2016, an increase of 74% from the $406,590 reported for the first quarter of fiscal 2015. Gross profit for the first quarter of fiscal 2016 was $551,858 an increase of 84% from the $299,121 reported for the same period in fiscal 2015.
Net loss for the first quarter of fiscal 2016 was $943,985 for a loss of $.01 per share, versus a net loss of $3,236,446 for a loss of $.03 per share for the first quarter of fiscal 2015.
"On an operating basis, there is no question that the growth in revenues from our Mega Fame Casino has helped improve our performance significantly since last year," said Sanjay Sabnani, CrowdGather's Chairman and CEO. "Lack of sufficient low cost capital is still something that limits our ability to grow even more rapidly. Through the efforts of dedicated stakeholders and my own contributions, we have invested $1.2 million into cleaning up CrowdGather's balance sheet to free it from convertible debt, but there is still some work to be done. The good news is that the business has shown us that it has the capability of scaling rapidly when capital is procured.
"We remain committed to generating a return for our shareholders as we use our expertise in social media and social gaming to pivot our company squarely into a leadership position in the nascent field of cannabis media and crowdfunding," Sabnani concluded.
CROWDGATHER, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
JULY 31, 2015 (UNAUDITED) APRIL 30, 2015
ASSETS
Current assets
Cash $ 169,881 $ 73,801
Accounts receivable 179,592 214,255
Investments 21,480 21,480
Inventory 31,674 31,744
Prepaid expenses and deposits 46,022 37,389
Total current assets 448,649 378,669
Property and equipment, net of accumulated depreciation of $633,983 and $625,097, respectively 32,258 41,143
Intangible and other assets, net of accumulated amortization of $999,419 and $812,846, respectively 7,461,635 7,664,328
Goodwill 1,817,400 1,817,400
Total assets $ 9,759,942 $ 9,901,540
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 185,009 $ 184,113
Line of credit 459,415 449,760
Deferred revenue 378,067 278,982
Accrued vacation 101,791 96,564
Other accrued liabilities 266,878 243,821
Convertible notes payable, net of discount 388,891 223,316
Derivative liabilities 576,685 819,240
Notes payable, net of discount 2,216,056 1,455,859
Notes payable to related parties, net of discount 299,336 296,359
Total current liabilities 4,872,128 4,048,014
Stockholders' equity
Common stock, $0.001 par value, 975,000,000 shares authorized, 117,283,509 and 117,283,509 issued and outstanding, respectively 117,284 117,284
Convertible Preferred Series B stock, $0.001 par value1,000,000 shares authorized, 0 shares issued and outstanding - -
Additional paid-in capital 36,310,765 35,657,048
Accumulated deficit (31,511,715 ) (29,892,286 )
Accumulated other comprehensive loss (28,520 ) (28,520 )
Total stockholders' equity 4,887,814 5,853,526
Total liabilities and stockholders' equity $ 9,759,942 $ 9,901,540
See accompanying notes to financial statements.
CROWDGATHER, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JULY 31, 2015 AND 2014
UNAUDITED
2015 2014
Revenue $ 709,151 $ 406,590
Cost of revenue 157,293 107,469
Gross profit 551,858 299,121
Operating expenses
Payroll and related expenses 354,194 673,042
Stock based compensation 61,000 99,000
General and administrative 737,463 1,233,704
Loss on disposal of assets - 1,529,262
Total operating expenses 1,152,657 3,535,008
Loss from operations (600,799 ) (3,235,887 )
Other income (expense), net
Stated interest and issuance (expense) (95,943 ) -
Debt discount (expense), net fair value adjustment (186,028 ) -
Gain (Loss) on notes payable (59,627 ) -
Other interest (expense) (788 ) 241
Total Other income (expense), net (342,386 ) 241
Net loss before provision for income taxes (943,185 ) (3,235,646 )
Provision for income taxes 800 800
Net loss $ (943,985 ) $ (3,236,446 )
Weighted average shares outstanding- basic and diluted 117,283,509 105,359,158
Net loss per share - basic and diluted $ (0.01 ) $ (0.03 )
See accompanying notes to financial statements.
About CrowdGather, Inc.
CrowdGather, Inc. is an investor, acquirer, operator and owner of digital assets in the consumer and cannabis sectors. In 2016, CrowdGather intends to launch a crowdfunding portal at CrowdGather to assist cannabis and digital startups in procuring financing. The Company's online publishing network is anchored by DIY community builder, Yuku while its cannabis holdings include long standing online communities WeedTracker and RapMusic.
CrowdGather subsidiary, Plaor, a company that specializes in developing highly scalable multi-platform games, is located in Boston's Innovation District. Plaor produces Mega Fame Casino, an innovative and highly rated social casino available on iOS, Android & desktop.
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company's growth and business strategy. Words such as "expects,""will," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations on such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, changes in the Company's business; general economic, industry and market sector conditions; the ability to generate increased revenues from the Company's forums and Plaor's social casino; the ability to obtain additional financing; the ability to manage the Company's growth; the ability to develop and market new technologies to respond to rapid technological changes; competitive factors in the market(s) in which the Company operates; and other events, factors and risks disclosed from time to time in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
For additional information, please contact:
Investor Contact:
Sanjay Sabnani
Phone: 818-435-2472 x 101
Email: sanjay@crowdgather.com
Fueled by Gaming, Revenues Increased 74% and Gross Profit by 84% From Year Ago
CALABASAS, CA--(Marketwired - Sep 17, 2015) - Specialty social media and gaming network, CrowdGather, Inc. (OTCQB: CRWG), today announced financial results for the first quarter ended July 31, 2015.
The Company reported revenues of $709,151 for the first quarter of fiscal 2016, an increase of 74% from the $406,590 reported for the first quarter of fiscal 2015. Gross profit for the first quarter of fiscal 2016 was $551,858 an increase of 84% from the $299,121 reported for the same period in fiscal 2015.
Net loss for the first quarter of fiscal 2016 was $943,985 for a loss of $.01 per share, versus a net loss of $3,236,446 for a loss of $.03 per share for the first quarter of fiscal 2015.
"On an operating basis, there is no question that the growth in revenues from our Mega Fame Casino has helped improve our performance significantly since last year," said Sanjay Sabnani, CrowdGather's Chairman and CEO. "Lack of sufficient low cost capital is still something that limits our ability to grow even more rapidly. Through the efforts of dedicated stakeholders and my own contributions, we have invested $1.2 million into cleaning up CrowdGather's balance sheet to free it from convertible debt, but there is still some work to be done. The good news is that the business has shown us that it has the capability of scaling rapidly when capital is procured.
"We remain committed to generating a return for our shareholders as we use our expertise in social media and social gaming to pivot our company squarely into a leadership position in the nascent field of cannabis media and crowdfunding," Sabnani concluded.
CROWDGATHER, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
JULY 31, 2015 (UNAUDITED) APRIL 30, 2015
ASSETS
Current assets
Cash $ 169,881 $ 73,801
Accounts receivable 179,592 214,255
Investments 21,480 21,480
Inventory 31,674 31,744
Prepaid expenses and deposits 46,022 37,389
Total current assets 448,649 378,669
Property and equipment, net of accumulated depreciation of $633,983 and $625,097, respectively 32,258 41,143
Intangible and other assets, net of accumulated amortization of $999,419 and $812,846, respectively 7,461,635 7,664,328
Goodwill 1,817,400 1,817,400
Total assets $ 9,759,942 $ 9,901,540
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 185,009 $ 184,113
Line of credit 459,415 449,760
Deferred revenue 378,067 278,982
Accrued vacation 101,791 96,564
Other accrued liabilities 266,878 243,821
Convertible notes payable, net of discount 388,891 223,316
Derivative liabilities 576,685 819,240
Notes payable, net of discount 2,216,056 1,455,859
Notes payable to related parties, net of discount 299,336 296,359
Total current liabilities 4,872,128 4,048,014
Stockholders' equity
Common stock, $0.001 par value, 975,000,000 shares authorized, 117,283,509 and 117,283,509 issued and outstanding, respectively 117,284 117,284
Convertible Preferred Series B stock, $0.001 par value1,000,000 shares authorized, 0 shares issued and outstanding - -
Additional paid-in capital 36,310,765 35,657,048
Accumulated deficit (31,511,715 ) (29,892,286 )
Accumulated other comprehensive loss (28,520 ) (28,520 )
Total stockholders' equity 4,887,814 5,853,526
Total liabilities and stockholders' equity $ 9,759,942 $ 9,901,540
See accompanying notes to financial statements.
CROWDGATHER, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED JULY 31, 2015 AND 2014
UNAUDITED
2015 2014
Revenue $ 709,151 $ 406,590
Cost of revenue 157,293 107,469
Gross profit 551,858 299,121
Operating expenses
Payroll and related expenses 354,194 673,042
Stock based compensation 61,000 99,000
General and administrative 737,463 1,233,704
Loss on disposal of assets - 1,529,262
Total operating expenses 1,152,657 3,535,008
Loss from operations (600,799 ) (3,235,887 )
Other income (expense), net
Stated interest and issuance (expense) (95,943 ) -
Debt discount (expense), net fair value adjustment (186,028 ) -
Gain (Loss) on notes payable (59,627 ) -
Other interest (expense) (788 ) 241
Total Other income (expense), net (342,386 ) 241
Net loss before provision for income taxes (943,185 ) (3,235,646 )
Provision for income taxes 800 800
Net loss $ (943,985 ) $ (3,236,446 )
Weighted average shares outstanding- basic and diluted 117,283,509 105,359,158
Net loss per share - basic and diluted $ (0.01 ) $ (0.03 )
See accompanying notes to financial statements.
About CrowdGather, Inc.
CrowdGather, Inc. is an investor, acquirer, operator and owner of digital assets in the consumer and cannabis sectors. In 2016, CrowdGather intends to launch a crowdfunding portal at CrowdGather to assist cannabis and digital startups in procuring financing. The Company's online publishing network is anchored by DIY community builder, Yuku while its cannabis holdings include long standing online communities WeedTracker and RapMusic.
CrowdGather subsidiary, Plaor, a company that specializes in developing highly scalable multi-platform games, is located in Boston's Innovation District. Plaor produces Mega Fame Casino, an innovative and highly rated social casino available on iOS, Android & desktop.
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company's growth and business strategy. Words such as "expects,""will," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations on such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, changes in the Company's business; general economic, industry and market sector conditions; the ability to generate increased revenues from the Company's forums and Plaor's social casino; the ability to obtain additional financing; the ability to manage the Company's growth; the ability to develop and market new technologies to respond to rapid technological changes; competitive factors in the market(s) in which the Company operates; and other events, factors and risks disclosed from time to time in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
For additional information, please contact:
Investor Contact:
Sanjay Sabnani
Phone: 818-435-2472 x 101
Email: sanjay@crowdgather.com
