Click here to close now.


Microsoft Cloud Authors: Jayaram Krishnaswamy, Elizabeth White, Andreas Grabner, Jim Kaskade, Pat Romanski

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 To learn more about Bitzio, connect on Twitter ( and Facebook (

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 or 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 
                                               --------------  -------------
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.                                
                             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 
                          -----------  -----------  -----------  -----------
                          -----------  -----------  -----------  -----------

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.

@ThingsExpo Stories
The IoT market is on track to hit $7.1 trillion in 2020. The reality is that only a handful of companies are ready for this massive demand. There are a lot of barriers, paint points, traps, and hidden roadblocks. How can we deal with these issues and challenges? The paradigm has changed. Old-style ad-hoc trial-and-error ways will certainly lead you to the dead end. What is mandatory is an overarching and adaptive approach to effectively handle the rapid changes and exponential growth.
Today’s connected world is moving from devices towards things, what this means is that by using increasingly low cost sensors embedded in devices we can create many new use cases. These span across use cases in cities, vehicles, home, offices, factories, retail environments, worksites, health, logistics, and health. These use cases rely on ubiquitous connectivity and generate massive amounts of data at scale. These technologies enable new business opportunities, ways to optimize and automate, along with new ways to engage with users.
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new data-driven world, marketplaces reign supreme while interoperability, APIs and applications deliver un...
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data shows "less than 10 percent of IoT developers are making enough to support a reasonably sized team....
You have your devices and your data, but what about the rest of your Internet of Things story? Two popular classes of technologies that nicely handle the Big Data analytics for Internet of Things are Apache Hadoop and NoSQL. Hadoop is designed for parallelizing analytical work across many servers and is ideal for the massive data volumes you create with IoT devices. NoSQL databases such as Apache HBase are ideal for storing and retrieving IoT data as “time series data.”
Clearly the way forward is to move to cloud be it bare metal, VMs or containers. One aspect of the current public clouds that is slowing this cloud migration is cloud lock-in. Every cloud vendor is trying to make it very difficult to move out once a customer has chosen their cloud. In his session at 17th Cloud Expo, Naveen Nimmu, CEO of Clouber, Inc., will advocate that making the inter-cloud migration as simple as changing airlines would help the entire industry to quickly adopt the cloud without worrying about any lock-in fears. In fact by having standard APIs for IaaS would help PaaS expl...
There are so many tools and techniques for data analytics that even for a data scientist the choices, possible systems, and even the types of data can be daunting. In his session at @ThingsExpo, Chris Harrold, Global CTO for Big Data Solutions for EMC Corporation, will show how to perform a simple, but meaningful analysis of social sentiment data using freely available tools that take only minutes to download and install. Participants will get the download information, scripts, and complete end-to-end walkthrough of the analysis from start to finish. Participants will also be given the pract...
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Valley. The program, to be aired during the peak viewership season of the year, will have a major impac...
SYS-CON Events announced today that ProfitBricks, the provider of painless cloud infrastructure, will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. ProfitBricks is the IaaS provider that offers a painless cloud experience for all IT users, with no learning curve. ProfitBricks boasts flexible cloud servers and networking, an integrated Data Center Designer tool for visual control over the cloud and the best price/performance value available. ProfitBricks was named one of the coolest Clo...
Organizations already struggle with the simple collection of data resulting from the proliferation of IoT, lacking the right infrastructure to manage it. They can't only rely on the cloud to collect and utilize this data because many applications still require dedicated infrastructure for security, redundancy, performance, etc. In his session at 17th Cloud Expo, Emil Sayegh, CEO of Codero Hosting, will discuss how in order to resolve the inherent issues, companies need to combine dedicated and cloud solutions through hybrid hosting – a sustainable solution for the data required to manage I...
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Bradley Holt, Developer Advocate at IBM Cloud Data Services, will demonstrate techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user experience, both offline and online. The focus of this talk will be on IBM Cloudant, Apa...
WebRTC is about the data channel as much as about video and audio conferencing. However, basically all commercial WebRTC applications have been built with a focus on audio and video. The handling of “data” has been limited to text chat and file download – all other data sharing seems to end with screensharing. What is holding back a more intensive use of peer-to-peer data? In her session at @ThingsExpo, Dr Silvia Pfeiffer, WebRTC Applications Team Lead at National ICT Australia, will look at different existing uses of peer-to-peer data sharing and how it can become useful in a live session to...
As a company adopts a DevOps approach to software development, what are key things that both the Dev and Ops side of the business must keep in mind to ensure effective continuous delivery? In his session at DevOps Summit, Mark Hydar, Head of DevOps, Ericsson TV Platforms, will share best practices and provide helpful tips for Ops teams to adopt an open line of communication with the development side of the house to ensure success between the two sides.
SYS-CON Events announced today that IBM Cloud Data Services has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IBM Cloud Data Services offers a portfolio of integrated, best-of-breed cloud data services for developers focused on mobile computing and analytics use cases.
"Matrix is an ambitious open standard and implementation that's set up to break down the fragmentation problems that exist in IP messaging and VoIP communication," explained John Woolf, Technical Evangelist at Matrix, in this interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
Nowadays, a large number of sensors and devices are connected to the network. Leading-edge IoT technologies integrate various types of sensor data to create a new value for several business decision scenarios. The transparent cloud is a model of a new IoT emergence service platform. Many service providers store and access various types of sensor data in order to create and find out new business values by integrating such data.
The broad selection of hardware, the rapid evolution of operating systems and the time-to-market for mobile apps has been so rapid that new challenges for developers and engineers arise every day. Security, testing, hosting, and other metrics have to be considered through the process. In his session at Big Data Expo, Walter Maguire, Chief Field Technologist, HP Big Data Group, at Hewlett-Packard, will discuss the challenges faced by developers and a composite Big Data applications builder, focusing on how to help solve the problems that developers are continuously battling.
Developing software for the Internet of Things (IoT) comes with its own set of challenges. Security, privacy, and unified standards are a few key issues. In addition, each IoT product is comprised of at least three separate application components: the software embedded in the device, the backend big-data service, and the mobile application for the end user's controls. Each component is developed by a different team, using different technologies and practices, and deployed to a different stack/target - this makes the integration of these separate pipelines and the coordination of software upd...
Who are you? How do you introduce yourself? Do you use a name, or do you greet a friend by the last four digits of his social security number? Assuming you don’t, why are we content to associate our identity with 10 random digits assigned by our phone company? Identity is an issue that affects everyone, but as individuals we don’t spend a lot of time thinking about it. In his session at @ThingsExpo, Ben Klang, Founder & President of Mojo Lingo, will discuss the impact of technology on identity. Should we federate, or not? How should identity be secured? Who owns the identity? How is identity ...