WOODLAND HILLS, Calif.--(BUSINESS WIRE)--Specialty social media and gaming network CrowdGather, Inc. (OTCQB:CRWG) today announced financial results for the fiscal year ended April 30, 2015.
For the fiscal year ended April 30, 2015, the Company reported revenues of $2,399,842, compared to revenues of $1,537,051 reported for fiscal 2014. Gross profit for the fiscal year ended April 30, 2015, was $1,847,207, an increase of 20% from the $1,533,071 reported for fiscal 2014. Net loss for the 2015 fiscal year was $7,149,564 or $.06 per share, down 7.5% from a net loss of $7,725,770 or $.13 for the fiscal year ended April 30, 2014.
The Company also announced that it believes revenues will continue to increase in the current fiscal year and that those increases, combined with recent restructuring efforts finalizing the integration of its Plaor, Inc. subsidiary, have the Company striving to achieve positive operating cash flow in the current fiscal year.
“We believe the online social casino’s steadily improving monetization performance continues to reinforce our belief in the effectiveness of bringing high quality and engaging slot machine games from some of the top slot designers in the industry to a social casino setting,” said Richard Corredera, CrowdGather’s Chief Operating Officer. “As the online social casino has set new performance records in most of our key metrics each quarter we believe the product is ready to scale out to a larger audience and we are looking forward to building the brand further.”
The Company generated approximately $670,000 in total bookings during the quarter, of which approximately $510,000 were from social gaming. Bookings is a non-GAAP financial measure the Company uses in evaluating its business health and performance. It should be considered supplemental in nature and is not meant as a substitute for revenue recognized in accordance with US GAAP.
The Company reported total assets of $9,901,540 as of the end of the fiscal year with $4,048,014 in current liabilities resulting in $5,853,526 of shareholders’ equity. Intangibles and intellectual property related to its internet domain names, online communities, and its highly rated social casino comprise the largest portion of the Company’s asset base with a book value per share of $.05.
The Company also reported additional non-GAAP performance metrics on its social gaming segment including an ABPU (“Average Bookings per User”) of $.31, up 63% from the fiscal year’s first quarter ABPU of $.19. Average daily bookings reported as $6,363 with an average DAU (“Daily Active Users”) of 20,203, up 38% and down 15% from $4,605 and 23,783, respectively. The average annual ABPU was also reported to be $.25 with consistent growth achieved in each successive quarter of the fiscal year.
“In a little over a year since our acquisition of Plaor, we have seen the revenues of its flagship Mega Fame Social Casino double while almost every meaningful operating metric has increased in a positive manner,” said Sanjay Sabnani, CrowdGather’s Chairman and CEO. “Overall our company has cut costs dramatically and operating expenses are down significantly, especially in the current fiscal first quarter where the benefit of many of these reductions has just been achieved.”
Sabnani continued, “Despite the growth and success, we are still trying to navigate out of our current convertible debt obligations so that we can pursue more consistent and affordable growth financing. With some nominal restructuring and modest infusion of working capital, we believe CrowdGather could achieve profitability very quickly. As it stands, we are already managing to run at almost breakeven on an operating basis during these resource constrained times. With the right financing, we will continue to grow our existing digital media businesses while we launch our crowdfunding portal in 2016 in a shift towards increasing our exposure to digital cannabis assets.”
About CrowdGather, Inc.
With its portfolio of special interest forums and enthusiast message board communities, CrowdGather (www.crowdgather.com) has created a centralized network to benefit forum members, forum owners, and forum advertisers. CrowdGather provides a highly interactive and informational social network for members, a management and revenue-sharing resource for third-party forum owners, and a largely untapped advertising network for marketers worldwide.
CrowdGather subsidiary Plaor, a company that specializes in developing highly scalable multi-platform games, is located in the heart of Boston's fast growing Innovation District. Plaor produces Mega Fame Casino, an innovative and highly rated social casino available on iOS, Android & desktop. With a dedicated team of 7 employees, the Plaor team is a highly skilled group of skilled artists, designers, engineers, and analysts.
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company’s growth and business strategy. Words such as “expects,” “will,” “intends,” “plans,” “believes,” “anticipates,” “hopes,” “estimates,” and variations on such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, changes in the Company’s business; general economic, industry and market sector conditions; the ability to generate increased revenues from the Company’s forums and Plaor’s social casino; the ability to obtain additional financing; the ability to manage the Company's growth; the ability to develop and market new technologies to respond to rapid technological changes; competitive factors in the market(s) in which the Company operates; and other events, factors and risks disclosed from time to time in the Company’s filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
CONSOLIDATED BALANCE SHEETS
APRIL 30, 2015 AND 2014
|Prepaid expenses and deposits||37,389||48,652|
|Total current assets||378,669||778,912|
Property and equipment, net of accumulated depreciation of $625,097 and $493,887, respectively
Intangible and other assets, net of accumulated amortization of $812,846 and $0, respectively
LIABILITIES AND STOCKHOLDERS’ EQUITY
|Line of credit||449,760||---|
|Other accrued liabilities||243,821||154,746|
|Convertible note payable, net of discount||223,316||---|
|Notes payable, net of discount||1,455,859||
|Notes payable to related parties, net of discount||296,359||
|Total current liabilities||4,048,014||206,824|
Convertible Preferred Series B stock, $0.001 par value, 1,000,000 shares authorized, 0 and 1,000,000 shares issued and outstanding, respectively
Common stock, $0.001 par value, 975,000,000 shares authorized, 117,283,509 and 61,657,708 issued and outstanding, respectively
|Additional paid-in capital||35,657,048||29,748,961|
|Accumulated other comprehensive loss||(28,520||)||(28,520||)|
|Total stockholders’ equity||5,853,526||8,039,377|
|Total liabilities and stockholders’ equity||$||9,901,540||$||8,246,201|
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED APRIL 30, 2015 AND 2014
|Cost of revenue||552,635||3,980|
|Payroll and related expenses||2,330,539||1,189,810|
|Stock based compensation||374,000||661,400|
|General and administrative||3,387,789||1,363,389|
|Depreciation and amortization||927,267||128,879|
|Impairment of goodwill and intangibles||---||4,500,202|
|Loss on disposal of assets||1,529,262||1,408,985|
|Total operating expenses||8,548,857||9,252,665|
|Loss from operations||(6,701,650||)||(7,719,594||)|
|Other income (expense), net|
|Interest expense, net||(514,686||)||(5,376||)|
|Change in fair value of derivative liabilities||(61,716||)||---|
|Gain on extinguishment of debt||5,088||---|
|Legal settlements, net||125,000||---|
|Total other income (expense), net||(446,314||)||(5,376||)|
|Net loss before provision for income taxes||(7,147,964||)||(7,724,970||)|
|Provision for income taxes||1,600||800|
|Weighted average shares outstanding- basic and diluted||117,200,176||60,082,803|
|Net loss per share – basic and diluted||$||(0.06||)||$||(0.13||)|