PAID Inc. (OTCBB: PAYD) has been focused on growing revenue,
driving efficiencies and bringing the company to profitability.
PAID reported Record total revenue of $7,093,500 and $10,661,100
for the third quarter of 2012 and for the nine months respectively.
This compares with revenue of $1,620,400 and $4,006,200 for the
same periods last year.
"PAID is having its best revenue year ever and we expect
progress to continue," said Austin Lewis, PAID Inc. CEO. "The
company is focusing on growing our VIP Experiences, streamlining
costs, while continuing to provide excellent service and value to
our clients and fans. New business prospects and other activities
currently in the new business pipeline are making us feel
comfortable that 2013 should be another strong year."
Proforma Results:
"The true operating results have been overshadowed by certain
accounting treatments, specifically option compensation and stock
price guarantees which are non-cash and non-operating charges,"
said Christopher Culross, PAID Inc. CFO. We have been very focused
on cutting excess overhead and streamlining the operational
processes so that we can achieve profitability. The results of our
initial efforts which included salary and headcount reductions,
reductions in legacy IT costs, and reductions in general
administrative costs, produced a profit from operations in the
third quarter of 2012 of $318,600 on a proforma basis.
Three Months Ended
----------------------------
September 30, September 30,
2012 2011
------------- -------------
Revenues $ 7,093,500 $ 1,620,400
Cost of revenues 5,509,100 1,010,500
------------- -------------
Gross profit 1,584,400 609,900
Operating expenses 1,265,800 1,299,400
------------- -------------
Income (loss) from operations 318,600 (689,500)
------------- -------------
Reconciliation of non cash expenses to
reported results
Option compensation 352,300 113,000
Stock price guarantee 231,100 -
Reported loss from operations $ (264,800) $ (802,500)
============= =============
Operating Cash Flows "Positive cash flow
continues to be a high priority for us," said Lewis. "We have moved
our reliance off of issuing stock options for payment of services
and compensation, and have moved our focus to reducing costs, and
as a result, operating cash flows in the third quarter of 2012
increased $406,400."
Nine Months
Ended Six Months
September 30, Ended June
2012 30, 2012
------------- -------------
Net loss $ (3,586,000) $ (2,674,700)
Depreciation and amortization 56,000 33,700
Unrealized gain on investment 24,400 51,600
Share based compensation 532,500 180,000
Amortization of prepaid facility costs 227,800 -
Change in fair value of stock price guarantee 919,500 236,200
Fair value of stock options awarded
in payment of outside services and
compensation 2,166,800 2,070,900
Deferred revenues, net of prepaid royalties (100,700) (870,500)
Changes in current assets and liabilities (523,900) 282,600
------------- -------------
Net cash provided by (used in) operating
activities $ (283,600) $ (690,000)
============= =============
Management's Plan PAID, Inc. will continue
to streamline its operations with a focus on core revenue
generating activities. PAID, Inc. is a leader in custom developed
VIP experience programs. "PAID's new client acquisition strategy is
centered on the plan to hone its competitive edge by taking VIP
experience programs to the next level with expanded
direct-to-consumer reach and engagement via mobile and wireless
communications channels, the addition of higher-margin travel
package services and VIP programs designed to support celebrity
client charitable fundraising and awareness campaigns," said Keith
Garde, President of PAID Inc. celebrity services. PAID, Inc. will
be reaching beyond its celebrity clients' consumer-level fan bases
and increasing the volume of VIP experience package sales by
targeting corporate and institutional demand for VIP experience and
travel packages.
Patent Update We continue to work with our
legal counsel and believe we are making progress in our efforts to
maximize the value of PAID's intellectual property on behalf of
shareholders.
About PAID Inc.: PAID Inc. is a one-stop
brand management and marketing resource to music, entertainment and
sports personalities and organizations, and offers AuctionInc™
online shipping calculation and shopping cart software employing
its patented technology to streamline ecommerce. Known for quality
and customer service, PAID offers turnkey online, mobile, social
media and traditional marketing campaigns, as well as award-winning
video & film production, VIP ticketing, web site design,
merchandising, ecommerce and fan community management programs.
More details are available at www.paid.com.
Safe Harbor statement under the Private
Securities Litigation Reform Act of 1995: Statements in this
news release looking forward in time involve risks and
uncertainties, including the risks associated with the effect of
changing economic conditions, trends in the markets, variations in
the company's cash flow, competition, celebrity programs, business
development efforts, technology availability and cost of materials
and other risk factors. Factors that could cause actual results to
differ materially are discussed in the Company's most recent
filings with the Securities and Exchange Commission.
CONTACT: Austin Lewis 617-861-6050 Email Contact
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