Press release from Marketwire
VoodooVox Inc. Reports Q2 2012 Financial Results
Wednesday, August 15, 2012
VoodooVox Inc. Reports Q2 2012 Financial Results07:30 EDT Wednesday, August 15, 2012TORONTO, ONTARIO--(Marketwire - Aug. 15, 2012) - VoodooVox Inc. ("VoodooVox" or the "Company") (TSX:VVX), a leading provider of mobile advertising solutions, today announced its financial results for the three and six months ended June 30, 2012.SECOND QUARTER RESULTSRevenues recognized of $1.3 million compares to $2.1 million for the second quarter of 2011. Revenue from mobile advertising was $1.0 million in 2012 compared to $0.1 million in 2011. Operating loss of $1.4 million compares to an operating profit of $0.2 million for the second quarter of 2011. Q2 2012 expenses included the additional staff costs from its recent acquisitions. Net loss for the quarter ended June 30, 2012 was $1.8 million ($0.1 per share) compared to $0.3 million for the same period in 2011 ($0.00 per share). Q2 2012 interest expense on debentures was $0.5 million compared to $0.7 million for the same period in 2011 primarily due to the debenture conversion program implemented by the Company in December of 2011. YEAR TO DATE RESULTSRevenues recognized of $2.3 million compares to $3.2 million for the first six months of 2011. Revenue from mobile advertising was $1.6 million in 2012 compared to $0.2 million in 2011. Operating loss of $3.4 million compares to $0.7 million for the first six months of 2011. 2012 expenses included the additional staff costs from its recent acquisitions. Net loss for the six months ended June 30, 2012 was $4.3 million ($0.2 per share) compared to $2.0 million net loss for the same period in 2012 ($0.02 per share). 2012 interest expense on debentures was $1.0 million compared to $1.5 million for the same period in 2011 primarily due to the debenture conversion program implemented by the Company in December of 2011. At June 30, 2012, the Company had a cash balance of $0.1 million compared to $0.4 million at December 31, 2011. The Company had a working capital deficit of $7.0 million that included $5.0 million of debentures scheduled to mature prior to June 30, 2013. FINANCING ACTIVITIESIn June, 2012, the Company completed a non-brokered private placement of 815 Units. Each Unit, in denominations of one thousand dollars, consisted of 1) a non-convertible debenture with a principal value of $918.33; and 2) 3,000 common shares of the Company valued at $81.67. The debentures bear interest at a rate of 17.5% and mature on June 27, 2014. On August 13, 2012, the Company completed a brokered private placement for $1.8 million. The Company distributed 1,837 debentures each with a domination of one thousand dollars. The debentures bear interest at a rate of 12% and mature on August 13, 2015. Each debenture also entitled the holder to receive 3,000 common share warrants to acquire 3,000 common shares of the Company at an exercise price of $0.02 per common share. The warrants expire on August 13, 2015. On August 13, 2012, the Company redeemed $0.03 million of the $1.2 million of debentures that matured on August 13, 2012. The Company has reached agreement with the remaining debenture holders to defer repayment of the maturity value for up to two months while additional financing activities continue. OUTLOOKThe Company's future operations remain dependent upon its ability to: 1) raise additional funds; 2) realize transaction revenues from existing customer relationships; or 3) secure new customer relationships that provide the Company with adequate funds to cover expenditures projected for the balance of 2012 (or a combination of the foregoing). In recent years, the Corporation has relied upon external debt financing to provide it with the working capital required to support ongoing operations. Michael Durance, CEO of the Company, remarked, "We are pleased with the integration of our recent acquisition and our progress in the high growth Mobile Advertising market. Further, our new Analytics solution is generating significant interest with our installed base of customers and we expect this solution to be a key part of our portfolio going forward."On July 10, 2012, the Company received a letter from the TSX initiating a review of Company's ability to meet its continuous listing requirements. If the Company cannot demonstrate it meets these requirements prior to September 12, 2012, the Company will be delisted from the TSX on October 12, 2012. Accordingly, while VoodooVox is working on its response to the TSX it also intends to explore a possible listing on the TSX Venture Exchange.VoodooVox also announces that Nick Fader has resigned as Director of the Company. The Company extends its gratitude to Mr. Fader for his contributions over the years.This news release should be read in conjunction with VoodooVox's interim consolidated financial statements and the accompanying notes as at and for the three months and six months ended June 30, 2012 and the related Management Discussion and Analysis. These have been filed with certain securities regulatory authorities in Canada and are available on SEDAR (www.sedar.com) and on the VoodooVox website at www.voodoovox.com.About VoodooVox Inc.VoodooVox uses consumer analytics to provide smarter mobile advertising services via the cloud to publishers, advertisers and operators. VoodooVox, which represents the combined assets and knowledge base of three companies, namely Call Genie Inc., UpSnap Services, LLC and VoodooVox, now processes billions of advertising transactions for a marquee list of global clients and partners. Currently, VoodooVox solutions are deployed in 11 countries around the world. www.voodoovox.com. FOR FURTHER INFORMATION PLEASE CONTACT: Alex BlodgettVoodooVox Inc.firstname.lastname@example.orgThe TSX Exchange has neither approved nor disapproved the contents of this news release.