MGT Capital Reports Financial Results for the First Quarter ending March 31, 2016
41 minutes ago - DJNF
Company Currently has over $2.5 Million in Cash and Securities
HARRISON, N.Y., May 23, 2016 /PRNewswire/ -- MGT Capital Investments, Inc. (NYSE MKT: MGT) reported financial results and operational developments for the fiscal first quarter ended March 31, 2016. Developments during the quarter and recent weeks subsequent to quarter end are as follows:
-- MGT entered into a definitive asset purchase agreement to acquire certain
technology and assets from D-Vasive Inc., a provider of leading edge
anti-spy software. MGT also entered into a consulting agreement
with Future Tense Secure Systems Inc., a technology incubator.
-- In conjunction with the acquisition, MGT announced the proposed
appointment of John McAfee as Executive Chairman and Chief Executive
Officer. Mr. McAfee is the visionary pioneer of internet security whose
anti-virus company was acquired by Intel for $7.7 billion. He is
actively involved in the development of new measures to protect
individual freedoms and privacy.
-- Closing of the acquisition is contingent on customary conditions
including approval by MGT's stockholders. The Company plans to issue a
Preliminary Proxy Statement shortly.
-- Adjusted for recent warrant exercises, MGT currently has 23.8 million
common shares outstanding, and has cash of $2.0 million plus marketable
securities of approximately $500,000. Moreover, MGT carries zero debt or
preferred stock.
-- In addition, the Company expects to continue to monetize certain
securities it owns issued by DraftDay Fantasy Sports. Inc., and expects
further warrant exercises. These potential sources of cash would add
about $1.5 million to the Company's cash reserves. Pro--forma, following
the closing of the D-Vasive acquisition, the company will have
approximately 50 million shares outstanding, about half of which would be
subject to resale restrictions.
-- Cash used in operations was $376,000 in the first quarter of 2016, down
49% sequentially from the December 2015 quarter, and down 41% from the
first quarter of 2015. Having significantly streamlined MGT's operational
structure and minimized corporate overhead, the Company continues to
exercise discipline with respect to its burn rate.
Financial Results follow; per GAAP requirements, the operations of DraftDay.com are treated as discontinued operations. For further information, please refer to MGT's Form 10-Q filed this morning with the SEC, and available at the Company's corporate website or at www.sec.gov.
About MGT Capital Investments, Inc.
MGT and its subsidiaries are principally engaged in the business of acquiring, developing and monetizing intellectual property assets. MGT's portfolio currently includes social casino and gaming platforms, and ownership stakes in DraftDay.com, a top daily fantasy sports wagering platform and DraftDay Fantasy Sports, Inc. operator of an online entertainment marketing and rewards platform.
MGT also recently announced the acquisition of certain technology and assets from D-Vasive Inc., a provider of leading edge anti-spy software. In conjunction with the acquisition, The Company also announced the proposed appointment of John McAfee as Executive Chairman and Chief Executive Officer. Further, MGT Capital also intends to change its corporate name to John McAfee Global Technologies, Inc. Closing of the acquisition is contingent on customary conditions including approval by MGT's stockholders.
Forward--looking Statements
This press release contains forward--looking statements. The words or phrases "would be," "will allow," "intends to," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," or similar expressions are intended to identify "forward--looking statements." MGT's financial and operational results reflected above should not be construed by any means as representative of the current or future value of its common stock. All information set forth in this news release, except historical and factual information, represents forward--looking statements. This includes all statements about the Company's plans, beliefs, estimates and expectations. These statements are based on current estimates and projections, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward--looking statements. These risks and uncertainties include issues related to: rapidly changing technology and evolving standards in the industries in which the Company and its subsidiaries operate; the ability to obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, license and sign new agreements; the unpredictable nature of consumer preferences; and other factors set forth in the Company's most recently filed annual report and registration statement. Readers are cautioned not to place undue reliance on these forward--looking statements, which reflect management's analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward--looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review the risks and uncertainties described in other documents that the Company files from time to time with the U.S. Securities and Exchange Commission.
MGT CAPITAL INVESTMENTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per--share amounts, unaudited)
March 31,
2016 December 31, 2015
Assets
Current assets
Cash and cash equivalents $189 $ 359
Prepaid expenses and other current
assets 3 61
Investments available for sale 880 444
Notes receivable 640 1,575
Total current assets 1,712 2,439
Non--current assets
Restricted cash -- 39
Property and equipment, at cost,
net 30 35
Intangible assets, net 673 730
Goodwill 1,496 1,496
Note receivable, net 30 --
Investments, at cost 1,380 1,380
Total assets $5,321 $ 6,119
Liabilities and equity
Current liabilities
Accounts payable $122 $ 63
Accrued expenses 37 15
Other payables 12 1
Total current liabilities 171 79
Total liabilities 171 79
Commitments and contingencies
Redeemable convertible preferred
stock-- Temporary equity
Preferred stock, Series A
convertible preferred, $0.001 par
value, 1,500,000 shares authorized
at March 31, 2016 and December 31,
2015; 10,768 and 10,608 shares
outstanding at March 31, 2016 and
December 31, 2015, respectively -- --
Stockholders' equity
Undesignated preferred stock,
$0.001 par value, 8,583,840 shares
authorized at March 31, 2016 and
December 31, 2015. No shares
issued and outstanding at March
31, 2016 and December 31, 2015 -- --
Common Stock, $0.001 par value;
75,000,000 shares authorized;
18,088,221 and 17,928,221 shares
issued and outstanding at March
31, 2016 and December 31, 2015,
respectively 18 18
Additional paid--in capital 311,207 311,167
Accumulated other comprehensive
loss (776) (1,206)
Accumulated deficit (305,281) (303,944)
Total stockholders' equity 5,168 6,035
Non--controlling interests (18) 5
Total equity 5,150 6,040
Total equity, liabilities,
redeemable convertible preferred
stock and non--controlling
interest $5,321 $ 6,119
MGT CAPITAL INVESTMENTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except share and per--share amounts, unaudited)
Three months ended March 31,
2016 2015
Operating expenses
General and administrative 654 1,065
Operating loss (654) (1,065)
Other non--operating income /
(expense)
Interest and other income /
(expense) 25 (41)
Loss on sale of investments (731) --
(706) (41)
Net loss from continuing
operations (1,360) (1,106)
Net loss from discontinued
operations -- DraftDay.com -- (275)
Net loss (1,360) (1,381)
Net loss attributable to
non--controlling interest 23 87
Net loss attributable to common
stockholders $ (1,337) $(1,294)
Other comprehensive loss
Reclassification adjustment for
loss included in net income 678 --
Unrealized holding loss (248) --
Comprehensive loss $ (907) $(1,294)
Per--share data
Basic and diluted loss per share
-- continuing operations $ (0.07) $(0.09)
Basic and diluted loss per share
-- discontinued operations -- (0.02)
Basic and diluted loss per share $ (0.07) $(0.11)
Weighted average number of common
shares outstanding 18,002,617 11,260,174
MGT CAPITAL INVESTMENTS, INC. AND SUBSIDIARIES
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May 23, 2016 08:30 ET (12:30 GMT)
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41 minutes ago - DJNF
Company Currently has over $2.5 Million in Cash and Securities
HARRISON, N.Y., May 23, 2016 /PRNewswire/ -- MGT Capital Investments, Inc. (NYSE MKT: MGT) reported financial results and operational developments for the fiscal first quarter ended March 31, 2016. Developments during the quarter and recent weeks subsequent to quarter end are as follows:
-- MGT entered into a definitive asset purchase agreement to acquire certain
technology and assets from D-Vasive Inc., a provider of leading edge
anti-spy software. MGT also entered into a consulting agreement
with Future Tense Secure Systems Inc., a technology incubator.
-- In conjunction with the acquisition, MGT announced the proposed
appointment of John McAfee as Executive Chairman and Chief Executive
Officer. Mr. McAfee is the visionary pioneer of internet security whose
anti-virus company was acquired by Intel for $7.7 billion. He is
actively involved in the development of new measures to protect
individual freedoms and privacy.
-- Closing of the acquisition is contingent on customary conditions
including approval by MGT's stockholders. The Company plans to issue a
Preliminary Proxy Statement shortly.
-- Adjusted for recent warrant exercises, MGT currently has 23.8 million
common shares outstanding, and has cash of $2.0 million plus marketable
securities of approximately $500,000. Moreover, MGT carries zero debt or
preferred stock.
-- In addition, the Company expects to continue to monetize certain
securities it owns issued by DraftDay Fantasy Sports. Inc., and expects
further warrant exercises. These potential sources of cash would add
about $1.5 million to the Company's cash reserves. Pro--forma, following
the closing of the D-Vasive acquisition, the company will have
approximately 50 million shares outstanding, about half of which would be
subject to resale restrictions.
-- Cash used in operations was $376,000 in the first quarter of 2016, down
49% sequentially from the December 2015 quarter, and down 41% from the
first quarter of 2015. Having significantly streamlined MGT's operational
structure and minimized corporate overhead, the Company continues to
exercise discipline with respect to its burn rate.
Financial Results follow; per GAAP requirements, the operations of DraftDay.com are treated as discontinued operations. For further information, please refer to MGT's Form 10-Q filed this morning with the SEC, and available at the Company's corporate website or at www.sec.gov.
About MGT Capital Investments, Inc.
MGT and its subsidiaries are principally engaged in the business of acquiring, developing and monetizing intellectual property assets. MGT's portfolio currently includes social casino and gaming platforms, and ownership stakes in DraftDay.com, a top daily fantasy sports wagering platform and DraftDay Fantasy Sports, Inc. operator of an online entertainment marketing and rewards platform.
MGT also recently announced the acquisition of certain technology and assets from D-Vasive Inc., a provider of leading edge anti-spy software. In conjunction with the acquisition, The Company also announced the proposed appointment of John McAfee as Executive Chairman and Chief Executive Officer. Further, MGT Capital also intends to change its corporate name to John McAfee Global Technologies, Inc. Closing of the acquisition is contingent on customary conditions including approval by MGT's stockholders.
Forward--looking Statements
This press release contains forward--looking statements. The words or phrases "would be," "will allow," "intends to," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," or similar expressions are intended to identify "forward--looking statements." MGT's financial and operational results reflected above should not be construed by any means as representative of the current or future value of its common stock. All information set forth in this news release, except historical and factual information, represents forward--looking statements. This includes all statements about the Company's plans, beliefs, estimates and expectations. These statements are based on current estimates and projections, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward--looking statements. These risks and uncertainties include issues related to: rapidly changing technology and evolving standards in the industries in which the Company and its subsidiaries operate; the ability to obtain sufficient funding to continue operations, maintain adequate cash flow, profitably exploit new business, license and sign new agreements; the unpredictable nature of consumer preferences; and other factors set forth in the Company's most recently filed annual report and registration statement. Readers are cautioned not to place undue reliance on these forward--looking statements, which reflect management's analysis only as of the date hereof. The Company undertakes no obligation to publicly revise these forward--looking statements to reflect events or circumstances that arise after the date hereof. Readers should carefully review the risks and uncertainties described in other documents that the Company files from time to time with the U.S. Securities and Exchange Commission.
MGT CAPITAL INVESTMENTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per--share amounts, unaudited)
March 31,
2016 December 31, 2015
Assets
Current assets
Cash and cash equivalents $189 $ 359
Prepaid expenses and other current
assets 3 61
Investments available for sale 880 444
Notes receivable 640 1,575
Total current assets 1,712 2,439
Non--current assets
Restricted cash -- 39
Property and equipment, at cost,
net 30 35
Intangible assets, net 673 730
Goodwill 1,496 1,496
Note receivable, net 30 --
Investments, at cost 1,380 1,380
Total assets $5,321 $ 6,119
Liabilities and equity
Current liabilities
Accounts payable $122 $ 63
Accrued expenses 37 15
Other payables 12 1
Total current liabilities 171 79
Total liabilities 171 79
Commitments and contingencies
Redeemable convertible preferred
stock-- Temporary equity
Preferred stock, Series A
convertible preferred, $0.001 par
value, 1,500,000 shares authorized
at March 31, 2016 and December 31,
2015; 10,768 and 10,608 shares
outstanding at March 31, 2016 and
December 31, 2015, respectively -- --
Stockholders' equity
Undesignated preferred stock,
$0.001 par value, 8,583,840 shares
authorized at March 31, 2016 and
December 31, 2015. No shares
issued and outstanding at March
31, 2016 and December 31, 2015 -- --
Common Stock, $0.001 par value;
75,000,000 shares authorized;
18,088,221 and 17,928,221 shares
issued and outstanding at March
31, 2016 and December 31, 2015,
respectively 18 18
Additional paid--in capital 311,207 311,167
Accumulated other comprehensive
loss (776) (1,206)
Accumulated deficit (305,281) (303,944)
Total stockholders' equity 5,168 6,035
Non--controlling interests (18) 5
Total equity 5,150 6,040
Total equity, liabilities,
redeemable convertible preferred
stock and non--controlling
interest $5,321 $ 6,119
MGT CAPITAL INVESTMENTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(In thousands, except share and per--share amounts, unaudited)
Three months ended March 31,
2016 2015
Operating expenses
General and administrative 654 1,065
Operating loss (654) (1,065)
Other non--operating income /
(expense)
Interest and other income /
(expense) 25 (41)
Loss on sale of investments (731) --
(706) (41)
Net loss from continuing
operations (1,360) (1,106)
Net loss from discontinued
operations -- DraftDay.com -- (275)
Net loss (1,360) (1,381)
Net loss attributable to
non--controlling interest 23 87
Net loss attributable to common
stockholders $ (1,337) $(1,294)
Other comprehensive loss
Reclassification adjustment for
loss included in net income 678 --
Unrealized holding loss (248) --
Comprehensive loss $ (907) $(1,294)
Per--share data
Basic and diluted loss per share
-- continuing operations $ (0.07) $(0.09)
Basic and diluted loss per share
-- discontinued operations -- (0.02)
Basic and diluted loss per share $ (0.07) $(0.11)
Weighted average number of common
shares outstanding 18,002,617 11,260,174
MGT CAPITAL INVESTMENTS, INC. AND SUBSIDIARIES
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May 23, 2016 08:30 ET (12:30 GMT)
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NASDAQ DIP and RIP
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Intuitive;
means having the ability to understand or know something without any direct evidence or reasoning process.
I was born with it, I'm truly blessed!
Alway's searching for winners'
NASDAQ DIP and RIP
Here is the best word that describes what i do here.
Intuitive;
means having the ability to understand or know something without any direct evidence or reasoning process.
I was born with it, I'm truly blessed!
Alway's searching for winners'
