Welcome!

Microsoft Cloud Authors: Kevin Benedict, Pat Romanski, Liz McMillan, Lori MacVittie, Elizabeth White

News Feed Item

CORRECTING and REPLACING Bitzio Reports Third Quarter 2012 Results

SAN FRANCISCO, CALIFORNIA -- (Marketwire) -- 11/19/12 -- This document corrects and replaces the press release that was issued on November 14, 2012 at 4:05 p.m. Eastern time. Bitzio's auditors identified a technical accounting correction in the application of the complex accounting rules for the company's convertible debenture issued in the third quarter of 2012. Therefore, the accounting change decreased the company's total liabilities by $125,000, increased stockholders' equity by $375,000 and increased non-cash interest expense by $250,000 in Q3 2012. The company apologizes for any inconvenience.

The corrected release reads:

Bitzio, Inc. (OTCQB:BTZO), a leading mobile media and app company, reported results for the third quarter ended September 30, 2012.

Q3 2012 Operational Highlights

--  Partnered with ROAR, a leading talent management company, to develop
    mobile apps for the world's most popular entertainment properties and
    talent, including actors, celebrities, musicians and athletes. 
--  Secured a licensing partnership with The NFL Players, a subsidiary of
    the National Football League Players Association (NFLPA), to jointly
    develop and market a football trivia app for the more than 180 million
    fans of the NFL. 
--  Bitzio's in-house software and animation studio advanced the development
    of "Pigskins Football Player Trivia Game," the first app to be produced
    from the new NFL Players partnership. The highly engaging app features
    the NFL's Top 50 players, along with in-app purchase options and social
    media features that enhance and expand game-play. The app is now set for
    release in December 2012, downloadable for free from Apple's App Store
    and the Android Marketplace. 
--  Strengthened the executive management team with the addition of Peter
    Henricsson as the company's new president and CEO. Prior to Bitzio,
    Henricsson was the founder, chairman and CEO of CellPoint, a European
    leader in location-based technologies for mobile operators. Under
    Henricsson's leadership, CellPoint listed on the NASDAQ Stock Market and
    achieved a market cap of $1 billion. 
--  Completed $598,000 convertible note financing to support the company's
    growth initiatives. An entity controlled by Henricsson contributed
    $300,000 to the raise. 
--  Divested the company's non-core Info-Products division, including the
    app developer training series, and thereby eliminating $667,000 in
    liabilities. The divestiture has allowed Bitzio to focus on developing
    and monetizing mobile apps for the sports and entertainment marketplace.

Management Commentary

"During the third quarter of 2012, we greatly improved our operational platform and set course on our new business model designed to tap the tremendous opportunities for mobile apps in the sports and entertainment markets," said Peter Henricsson, president and CEO of Bitzio. "In fact, we achieved several milestones in the quarter, including divesting non-core assets, strengthening our balance sheet and executive team, and forming major strategic partnerships.

"Our new license agreement with The NFL Players demonstrated our ability to secure the media rights of large, existing fan bases, as well as establish a co-marketing and revenue-sharing partnership that requires no up-front fees. We have been working closely with The NFL Players to develop the first app, which is now set to launch next month. Given their marketing support, we are confident the trivia app will be well received and widely downloaded by the millions of NFL fans across the country.

"Our partnership with The NFL Players also serves an ideal showcase of Bitzio's capabilities, and represents a springboard toward greater opportunities across a number of verticals, including other sports communities, entertainment properties and major consumer brands. We are now well positioned to capitalize on the tremendous opportunities in delivering apps to the fan-based communities of some of world's largest sports clubs and entertainment brands. We plan to leverage our deep industry relationships and marketing partnerships to secure new licensing agreements during the coming months, and roll out a number of new and highly-engaging mobile apps."

Q3 2012 Financial Summary

During the third quarter, Bitzio divested non-core assets and operations to focus on developing and monetizing fan-based apps in the sports and entertainment markets. The company generated nominal revenues from it legacy software and mobile applications in the third quarter, totaling $154,000 compared to marginal revenues in the same year-ago quarter.

Operating expenses in the third quarter of 2012 were $1.4 million, a significant improvement from $8.1 million in the same year-ago quarter. The year-over-year improvement was primarily due to a significant decrease in stock-based compensation, as well as a $2.3 million goodwill impairment charge recognized in Q3 2011.

Net loss from continuing operations in the third quarter of 2012 totaled $1.4 million or $(0.02) per share, as compared to a net loss of $8.1 million or $(0.22) per share in the same year-ago quarter.

Q3 2012 net loss included $1.9 million in non-cash items, comprised of $61,000 of amortization and depreciation, $558,000 related to losses on assets, $185,000 of derivative liability gain, $308,000 of amortization of debt discounts and $1.1 million of stock-based compensation. This compares to $2,000 of non-cash items in Q3 2011, which were comprised of $300 of amortization and depreciation and $1,500 of stock-based compensation.

Excluding these non-cash items, net loss before discontinued operations in Q3 2012 was $102,000 compared to $257,000 in the same year-ago period.

About Bitzio, Inc.

Founded in 2011, Bitzio is a leading mobile media and app development company focused on connecting fans of large entertainment and sports properties with the players, celebrities and teams they love. Powering these apps is the Bitzio Engine, which captures valuable user data and drives increased user monetization. What makes Bitzio really different is its approach to capturing users. Most app companies build first and hope the audience will come. Bitzio licenses media rights of sports and entertainment properties with millions of existing fans. Bitzio uses these rights to create mobile apps and web experiences for these existing fan bases. For more information, visit www.bitzio.com. To learn more about Bitzio, connect on Twitter (www.twitter.com/bitzio) and Facebook (www.facebook.com/bitzioinc).

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws, including statements relating to expectations the 2012 fiscal year; The terms and phrases "goal," "commitment," "guidance," "expects," "would," "will," "continuing," "drive," "believes," "indicate," "look forward," "grow," "outlook," "forecasts," and similar terms and phrases are intended to identify these forward-looking statements.

Forward-looking statements are based on estimates and assumptions made by Bitzio in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that Bitzio believes are appropriate in the circumstances, including but not limited to general economic conditions, Bitzio's expectations regarding its business, strategy and prospects, and Bitzio's confidence in the cash flow generation of its business. Many factors could cause Bitzio's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements, including, without limitation: risks related to competition; Bitzio's reliance on key personnel; Bitzio's ability to maintain and enhance its brand; and difficulties in forecasting Bitzio's financial results, particularly over longer periods given the rapid technological changes, competition and short product life cycles that characterize the mobile application industry. These risk factors and others relating to Bitzio that may cause actual results to differ are set forth Bitzio's periodic filings with the U.S. Securities and Exchange Commission (copies of which filings may be obtained at www.sedar.com or www.sec.gov). These factors should be considered carefully, and readers should not place undue reliance on Bitzio's forward-looking statements. Bitzio has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

                                BITZIO, INC.                                
                   CONDENSED CONSOLIDATED BALANCE SHEETS                    
                                                                            
                                                                            
                                               September 30,   December 31, 
                                                        2012           2011 
                                               --------------  -------------
                                                 (Unaudited)                
                    ASSETS                                                  
                                                                            
CURRENT ASSETS                                                              
  Cash                                        $      199,759  $     181,725 
  Accounts receivable, net                           138,397         92,232 
  Prepaid expenses and other current assets          138,677        337,508 
  Due from related parties                                 -        228,980 
  Prepaid acquisition costs                                -        713,150 
                                               --------------  -------------
                                                                            
    Total current assets                             476,833      1,553,595 
                                               --------------  -------------
                                                                            
OTHER ASSETS                                                                
  Property and equipment, net                         63,693              - 
  Intangible assets, net                             614,050        582,424 
  Goodwill                                           774,047        627,134 
                                               --------------  -------------
                                                                            
    Total other assets                             1,451,790      1,209,558 
                                               --------------  -------------
                                                                            
    TOTAL ASSETS                              $    1,928,623  $   2,763,153 
                                               --------------  -------------
                                               --------------  -------------
                                                                            
                    LIABILITIES AND STOCKHOLDERS' EQUITY                    
                                                                            
CURRENT LIABILITIES                                                         
  Accounts payable and accrued expenses       $      432,953  $     253,976 
  Deferred revenue                                         -         77,433 
  Notes payable, related parties                     351,870        426,870 
  Convertible notes, net of discount                 157,125         70,745 
  Derivative liability                               277,460              - 
                                               --------------  -------------
                                                                            
    TOTAL CURRENT LIABILITIES                      1,219,408        829,024 
                                               --------------  -------------
                                                                            
STOCKHOLDERS' EQUITY                                                        
  Preferred stock, $0.001 par value;                                        
   25,000,000 shares authorized; 5,343,120                                  
   and -0- shares issued and outstanding,                                   
   respectively                                        5,343              - 
  Common stock, $0.001 par value; 250,000,000                               
   shares authorized; 66,538,869 and                                        
   50,018,625 shares issued and outstanding,                                
   respectively                                       66,539         50,019 
  Stock subscriptions payable                              -        186,000 
  Additional paid-in capital                      19,521,586     11,800,050 
  Accumulated other comprehensive income              (1,998)             - 
  Accumulated deficit                            (18,882,255)   (10,101,940)
                                               --------------  -------------
                                                                            
    Total stockholders' equity                       709,215      1,934,129 
                                               --------------  -------------
                                                                            
      TOTAL LIABILITIES AND STOCKHOLDERS'                                   
       EQUITY                                 $    1,928,623  $   2,763,153 
                                               --------------  -------------
                                               --------------  -------------
                                                                            
                                                                            
                                                                            
                                BITZIO, INC.                                
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS               
                                (Unaudited)                                 
                                                                            
                             For the Three Months       For the Nine Months 
                                            Ended                     Ended 
                                    September 30,             September 30, 
                          ------------------------  ------------------------
                                2012         2011         2012         2011 
                          -----------  -----------  -----------  -----------
                                                                            
REVENUES                 $   154,384  $     3,104  $   519,591  $     3,104 
                                                                            
OPERATING EXPENSES                                                          
                                                                            
  Professional fees        1,296,105       43,294    3,329,505       62,422 
  Executive compensation           -    1,141,576      127,500    1,141,576 
  General and                                                               
   administrative            120,593    4,568,268      418,151    4,591,474 
  Impairment of goodwill           -    2,350,800    3,981,508    2,350,800 
                          -----------  -----------  -----------  -----------
    Total Operating                                                         
     Expenses              1,416,698    8,103,938    7,856,664    8,146,272 
                          -----------  -----------  -----------  -----------
                                                                            
LOSS FROM OPERATIONS      (1,262,314)  (8,100,834)  (7,337,073)  (8,143,168)
                          -----------  -----------  -----------  -----------
                                                                            
OTHER EXPENSES                                                              
  Finance costs and                                                         
   amortization             (320,983)        (500)    (478,837)        (746)
  Gain on derivative                                                        
   liability                 185,118            -      185,118            - 
                          -----------  -----------  -----------  -----------
                                                                            
    Total Other Expenses    (135,865)        (500)    (293,719)        (746)
                          -----------  -----------  -----------  -----------
                                                                            
LOSS BEFORE INCOME TAXES  (1,398,179)  (8,101,334)  (7,630,792)  (8,143,914)
PROVISION FOR INCOME                                                        
 TAXES                             -            -            -            - 
                          -----------  -----------  -----------  -----------
                                                                            
NET LOSS FROM CONTINUING                                                    
 OPERATIONS              $(1,398,179) $(8,101,334) $(7,630,792) $(8,143,914)
                                                                            
  Loss from discontinued                                                    
   operations               (150,681)           -     (591,236)           - 
  Loss on disposal of                                                       
   subsidiary               (558,287)           -     (558,287)           - 
                                                                            
  Loss from Discontinued                                                    
   Operations, net of                                                       
   income taxes             (708,968)           -   (1,149,523)           - 
                                                                            
NET LOSS                 $(2,107,147) $(8,101,334) $(8,780,315) $(8,143,914)
                          -----------  -----------  -----------  -----------
                          -----------  -----------  -----------  -----------
                                                                            
BASIC AND DILUTED LOSS                                                      
 PER SHARE FROM                                                             
 CONTINUING OPERATIONS   $     (0.02) $     (0.22) $     (0.13) $     (0.24)
                          -----------  -----------  -----------  -----------
                          -----------  -----------  -----------  -----------
                                                                            
BASIC AND DILUTED LOSS                                                      
 PER SHARE FROM                                                             
 DISCONTINUED OPERATIONS $     (0.01) $         -  $     (0.02) $         - 
                          -----------  -----------  -----------  -----------
                          -----------  -----------  -----------  -----------
                                                                            
BASIC AND DILUTED                                                           
 WEIGHTED AVERAGE NUMBER                                                    
 OF SHARES OUTSTANDING    62,441,151   37,557,473   57,152,841   34,566,071 
                          -----------  -----------  -----------  -----------
                          -----------  -----------  -----------  -----------

Contacts:
Investor Relations:
Liolios Group, Inc.
Matt Glover or Michael Koehler
(949) 574-3860
[email protected]

Media Relations:
Innova Communications
Amy Chilla
(949) 573-7830
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

IoT & Smart Cities Stories
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
Founded in 2000, Chetu Inc. is a global provider of customized software development solutions and IT staff augmentation services for software technology providers. By providing clients with unparalleled niche technology expertise and industry experience, Chetu has become the premiere long-term, back-end software development partner for start-ups, SMBs, and Fortune 500 companies. Chetu is headquartered in Plantation, Florida, with thirteen offices throughout the U.S. and abroad.
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
SYS-CON Events announced today that DatacenterDynamics has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to great conferences, helping you discover new conferences and increase your return on investment.
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER gives detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPOalso offers sp...
Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or per...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
@DevOpsSummit at Cloud Expo, taking place November 12-13 in New York City, NY, is co-located with 22nd international CloudEXPO | first international DXWorldEXPO and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time t...
When talking IoT we often focus on the devices, the sensors, the hardware itself. The new smart appliances, the new smart or self-driving cars (which are amalgamations of many ‘things'). When we are looking at the world of IoT, we should take a step back, look at the big picture. What value are these devices providing. IoT is not about the devices, its about the data consumed and generated. The devices are tools, mechanisms, conduits. This paper discusses the considerations when dealing with the...