Click here to close now.




















Welcome!

Microsoft Cloud Authors: Liz McMillan, Greg O'Connor, Aleksei Gavrilenko, Elizabeth White, 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 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 
                          -----------  -----------  -----------  -----------
                          -----------  -----------  -----------  -----------

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
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world and it starts with business models and monetization strategies.
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect their organization.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, discussed IoE and the enormous opportunities it provides to public and private firms alike. She will share what businesses must do to thrive in the IoE economy, citing examples from several industry sectors.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
Akana has released Envision, an enhanced API analytics platform that helps enterprises mine critical insights across their digital eco-systems, understand their customers and partners and offer value-added personalized services. “In today’s digital economy, data-driven insights are proving to be a key differentiator for businesses. Understanding the data that is being tunneled through their APIs and how it can be used to optimize their business and operations is of paramount importance,” said Alistair Farquharson, CTO of Akana.
Business as usual for IT is evolving into a "Make or Buy" decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud business applications and services across multiple cloud delivery models.
The enterprise market will drive IoT device adoption over the next five years. In his session at @ThingsExpo, John Greenough, an analyst at BI Intelligence, division of Business Insider, analyzed how companies will adopt IoT products and the associated cost of adopting those products. John Greenough is the lead analyst covering the Internet of Things for BI Intelligence- Business Insider’s paid research service. Numerous IoT companies have cited his analysis of the IoT. Prior to joining BI Intelligence, he worked analyzing bank technology for Corporate Insight and The Clearing House Payment...
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.
"Optimal Design is a technology integration and product development firm that specializes in connecting devices to the cloud," stated Joe Wascow, Co-Founder & CMO of Optimal Design, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of 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. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular Information Management® solutions for high-performance data protection, universal availability and simplified management of data on complex storage networks. CommVault's exclusive single-platform architecture gives companies unp...
Electric Cloud and Arynga have announced a product integration partnership that will bring Continuous Delivery solutions to the automotive Internet-of-Things (IoT) market. The joint solution will help automotive manufacturers, OEMs and system integrators adopt DevOps automation and Continuous Delivery practices that reduce software build and release cycle times within the complex and specific parameters of embedded and IoT software systems.
"ciqada is a combined platform of hardware modules and server products that lets people take their existing devices or new devices and lets them be accessible over the Internet for their users," noted Geoff Engelstein of ciqada, a division of Mars International, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.
SYS-CON Events announced today that Dyn, the worldwide leader in Internet Performance, 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. Dyn is a cloud-based Internet Performance company. Dyn helps companies monitor, control, and optimize online infrastructure for an exceptional end-user experience. Through a world-class network and unrivaled, objective intelligence into Internet conditions, Dyn ensures traffic gets delivered faster, safer, and more reliably than ever.