IDI, Inc. Reports First Quarter 2015 Results

BOCA RATON, Fla.--()--IDI, Inc. (NYSE MKT: IDI), an information solutions provider and multi-platform media company, today announced its financial and operating results for the first quarter of 2015 ending March 31, 2015.

Following the merger of Tiger Media, Inc. and The Best One, Inc. (TBO), completed on March 21, 2015, TBO was named the accounting acquirer. As a result, IDI, Inc.’s first quarter financial results reflect TBO and its wholly owned subsidiary, Interactive Data, LLC, and Tiger Media’s results of operations only during the period from March 22, 2015 to March 31, 2015 and deemed insignificant. In addition, as IDI Holdings, LLC (f/k/a The Best One, Inc.) was formed on September 22, 2014, no comparative figures during the corresponding period in 2014 are presented.

Key highlights for the first quarter of 2015 include:

  • Completion of the acquisition of TBO and creation of the new data fusion division to drive future growth.
  • Completion of the Seattle-based technology team and the initial development of new data products.
  • Total Revenue of $1.3 million, which was driven by the new data fusion division.
  • Net loss was $1.7 million due to increased personnel and development costs.
  • Cash and cash equivalents as of March 31, 2015 were $7.3 million, compared to $4.2 million at 2014 fiscal year end.

Mr. Derek Dubner, Co-CEO of IDI, Inc. stated, “We are pleased to report that we have entered 2015 with a team and infrastructure that we believe can drive an entirely new level of growth opportunities for our Company. The strategic acquisition of TBO enabled us to successfully transition our business into the multi-billion dollar data fusion market where we can immediately begin defining IDI as a leading player. We believe that the collective experience of our management team, our established information technology platform and our ability to deliver unparalleled data analytics and linking technology to a number of diverse markets offers an incredible opportunity for growth in the months ahead.”

IDI, Inc. will maintain an advertising services division for established business and new opportunities within the out-of-home advertising industry but will focus future growth on its data fusion division. It has already carved a niche within the Accounts Receivable Management (“ARM”) industry and will now target the entirety of the risk management market to serve today’s growing data fusion needs.

About IDI, Inc.

IDI, Inc. is an information solutions provider focused on the multi-billion dollar data-fusion market. IDI delivers otherwise unattainable insight into the ever-expanding universe of consumer and business centric data. Through proprietary linking technology, advanced systems architecture, and a massive data repository, IDI will address the rapidly growing need for actionable intelligence to support the entirety of the risk management industry, for purposes including due diligence, risk assessment, fraud detection and prevention, authentication and verification, and more. Additionally, IDI's cross-functional core systems and processes are designed to deliver an unrivaled level of clarity into consumer data to support advanced marketing analytics. IDI also operates a multi-platform media company operating in China, which provides advertising services in the out-of-home advertising industry, including iScreen Outdoor LCD screens and billboards.

FORWARD-LOOKING STATEMENTS

This press release contains "forward-looking statements," as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), which statements may be identified by words such as "expects," "plans," "projects," "will," "may," "anticipate," "believes," "should," "intends," "estimates," and other words of similar meaning. Such forward looking statements include statements about whether we can drive a new level of growth opportunities for the Company, and whether our management, platforms and ability to deliver unparalleled data analytics to a number of diverse markets offers an incredible opportunity for growth, as well as other non-historical statements about our expectations, beliefs or intentions regarding our business, technologies and products, financial condition, strategies or prospects. There are a number of important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including: the risk that the transaction between IDI, Inc. (f/k/a Tiger Media, Inc.) and IDI Holdings, LLC (f/k/a The Best One, Inc.) may involve unexpected costs or unexpected liabilities; and the other risks set forth in IDI’s Annual Report on 10-K, filed with the SEC on April 15, 2015, as well as the other factors described in the filings that IDI makes with the SEC from time to time. You are cautioned not to place undue reliance on these forward looking statements, which are based on our expectations as of the date of this press release and speak only as of the date of this press release. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

 
IDI, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)

(unaudited)

     
 
March 31, 2015   December 31, 2014

ASSETS

CURRENT ASSETS
Cash and cash equivalents $ 7,296 $ 5,996
Accounts receivable, net 2,251 295
Prepaid expenses and other current assets 762 190
Deferred tax assets, current 203   95  
 
Total current assets 10,512 6,576
NON-CURRENT ASSETS
Property and equipment, net 1,821 302
Long-term deferred expenses 580 -
Intangible assets, net 5,062 796
Goodwill 40,698 5,226
Other assets 38 38
Deferred tax assets, non-current 294   275  
Total non-current assets 48,493   6,637  
 
Total assets 59,005   13,213  
 

LIABILITIES & SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES
Accounts payable 1,884 890
Accrued expenses and other payables 1,118 -
Acquisition consideration payable 460 -
Amounts due to related parties 178 52
Deferred revenue   264     164  
 
Total current liabilities   3,904     1,106  
 
Total liabilities   3,904     1,106  
 
SHAREHOLDERS’ EQUITY
Preferred Shares—$0.0001 par value 10,000,000 shares authorized, 4,965,302 and 4,965,302 shares issued and outstanding on March 31, 2015 and December 31, 2014, respectively - -
Common Shares—$0.0005 par value 200,000,000 shares authorized, 13,888,454 and 6,597,155 shares issued and outstanding on March 31, 2015 and December 31, 2014, respectively 7 3
Additional paid-in capital 56,926 12,714
Accumulated other comprehensive loss 6 -
Accumulated deficit   (2,246 )   (610 )
 
Total IDI shareholders’ equity 54,693 12,107
Non-controlling interests   408     -  
Total shareholders’ equity   55,101     12,107  
 
Total liabilities and shareholders’ equity $ 59,005   $ 13,213  
 
 
IDI, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Amounts in thousands, except share data)
(unaudited)
     
Three Months Ended
March 31, 2015 (1)
Revenue $ 1,268
Cost of revenues (618 )
 
Gross profit 650
Operating expenses
Sales and marketing expenses (561 )
General and administrative expenses (1,748 )
 
Loss from operations (1,659 )
Other income/(expense)
Interest income 7
Other expense, net (2 )
 
Total other income 5  
Loss before income taxes (1,654 )
Income taxes -  
 
Net loss $ (1,654 )
Less: net loss attributable to non-controlling interests (17 )
Net loss attributable to shareholders $ (1,637 )
 
Loss per share
Basic and Diluted $ (0.22 )
 
Weighted average number of shares outstanding -
Basic and diluted 7,488,314
Comprehensive loss:
Net loss $ (1,654 )
Foreign currency translation adjustment 6  
 
Net comprehensive loss $ (1,648 )
 

(1) As IDI Holdings, LLC, the accounting acquirer of the merger consummated effective as of March 21, 2015, was incorporated on September 22, 2014, no comparative figures for the corresponding period in 2014 are presented.

 
IDI, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands, except share data)
(unaudited)
     

Three Months
Ended

March 31,
2015 (1)

CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (1,654 )
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation of property and equipment 32
Amortization of intangible assets 29
Amortization of long-term deferred expenses 7
Share-based compensation 102
Change in allowance for doubtful accounts 21
(Increase) / decrease in assets:
Accounts receivable (167 )
Prepaid expenses and other current assets (377 )
Amounts due from related parties 4
Increase / (decrease) in liabilities:
Accounts payable (527 )
Accrued expenses and other payables 379
Amounts due to related parties 2
Deferred revenue   20  
 
Net cash used in operating activities   (2,129 )
 
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment (130 )
Purchase of intangible assets (13 )
Proceeds from acquisition   3,569  
 
Net cash provided by investing activities   3,426  
 
CASH FLOWS FROM FINANCING ACTIVITIES
Net cash provided by financing activities   -  
 

Effect of foreign exchange rate changes on cash and cash equivalents

  3  
 
Net increase in cash and cash equivalents $ 1,300
Cash and cash equivalents at beginning of period   5,996  
 
Cash and cash equivalents at end of period $ 7,296  
 
SUPPLEMENTAL DISCLOSURE INFORMATION
Cash paid for interest
Cash paid for income taxes
 

(1) As IDI Holdings, LLC, the accounting acquirer of the merger consummated effective as of March 21, 2015, was incorporated on September 22, 2014, no comparative figures for the corresponding period in 2014 are presented.

Contacts

For IDI, Inc.
MDM Worldwide Solutions
David Zazoff, 646-403-3554

Contacts

For IDI, Inc.
MDM Worldwide Solutions
David Zazoff, 646-403-3554