Nevada | 333-167960 | 37-1530765 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
480 N. Orlando Avenue, Suite 200 Winter Park, Florida | 32789 | |
(Address of principal executive offices) | (Zip Code) |
Item 2.02. | Results of Operations and Financial Condition. |
Item 9.01. | Financial Statements and Exhibits |
Exhibit No. | Description |
99.1 | Financial Results Press Release issued by IZEA, Inc. on May 14, 2015. |
IZEA, INC. | ||
Date: May 19, 2015 | By:/s/ Edward H. (Ted) Murphy Edward H. (Ted) Murphy President and Chief Executive Officer |
• | Revenue for the quarter increased 111% to a record $4.1 million compared to Q1 2014. |
• | Sponsored Social represented $2.7 million in revenue, a 48% year-over-year increase. |
• | Content represented $1.4 million in revenue or 33% of total revenue. |
• | Bookings for the quarter grew 155% year-over-year to a record $4.3 million, up from $1.7 million in 2014. |
• | New opportunity pipeline for the quarter increased 77% year-over-year to $19.4 million. |
• | Completed acquisition of Ebyline, Inc. and added Content revenue stream. |
• | IZEAx aggregate network reach increased to 2.7 billion fans and followers at the end of the quarter, up 17% compared with Q4 2014 and 486% year-over-year. |
• | IZEAx registered users increased 83% to 446,000 compared to 243,0000 in Q4 2014, an increase of 792% year-over-year. |
• | Announced 3 new IZEAx partners, including Meredith Studios, Frederator and Bent Pixels |
• | 103 team members compared to 60 one year ago. |
March 31, 2015 | December 31, 2014 | ||||||
(Unaudited) | |||||||
Assets | |||||||
Current: | |||||||
Cash and cash equivalents | $ | 3,960,219 | $ | 6,521,930 | |||
Accounts receivable | 2,525,961 | 2,156,378 | |||||
Prepaid expenses | 305,341 | 190,604 | |||||
Other current assets | 12,056 | 61,424 | |||||
Total current assets | 6,803,577 | 8,930,336 | |||||
Property and equipment, net of accumulated depreciation of $287,287 and $239,521 | 597,332 | 588,919 | |||||
Goodwill | 2,826,540 | — | |||||
Intangible assets, net of accumulated amortization of $98,833 and $0 | 2,271,167 | — | |||||
Software development costs, net of accumulated amortization of $113,775 and $85,331 | 455,100 | 483,544 | |||||
Security deposits | 119,194 | 100,641 | |||||
Total assets | $ | 13,072,910 | $ | 10,103,440 |
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 836,823 | $ | 310,611 | |||
Accrued expenses | 481,355 | 394,617 | |||||
Unearned revenue | 1,619,427 | 1,767,074 | |||||
Deferred rent | 2,994 | — | |||||
Current portion of capital lease obligations | 47,075 | 54,376 | |||||
Current portion of acquisition costs payable | 1,055,489 | — | |||||
Total current liabilities | 4,043,163 | 2,526,678 | |||||
Deferred rent | 113,985 | 106,531 | |||||
Capital lease obligations, less current portion | — | 7,291 | |||||
Acquisition costs payable, less current portion | 3,062,588 | — | |||||
Warrant liability | 5,709,416 | 3,203,465 | |||||
Total liabilities | 12,929,152 | 5,843,965 | |||||
Stockholders’ equity: | |||||||
Common stock, $.0001 par value; 200,000,000 shares authorized; 57,697,666 issued and outstanding | 5,770 | 5,770 | |||||
Additional paid-in capital | 27,350,250 | 27,195,055 | |||||
Accumulated deficit | (27,212,262 | ) | (22,941,350 | ) | |||
Total stockholders’ equity | 143,758 | 4,259,475 | |||||
Total liabilities and stockholders’ equity | $ | 13,072,910 | $ | 10,103,440 |
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Revenue | $ | 4,135,494 | $ | 1,957,040 | |||
Cost of sales | 2,441,491 | 649,533 | |||||
Gross profit | 1,694,003 | 1,307,507 | |||||
Operating expenses: | |||||||
General and administrative | 1,860,514 | 1,092,221 | |||||
Sales and marketing | 1,581,487 | 912,786 | |||||
Total operating expenses | 3,442,001 | 2,005,007 | |||||
Loss from operations | (1,747,998 | ) | (697,500 | ) | |||
Other income (expense): | |||||||
Interest expense | (18,770 | ) | (9,017 | ) | |||
Change in fair value of derivatives, net | (2,505,951 | ) | 135,601 | ||||
Other income (expense), net | 1,807 | 1,605 | |||||
Total other income (expense) | (2,522,914 | ) | 128,189 | ||||
Net loss | $ | (4,270,912 | ) | $ | (569,311 | ) | |
Weighted average common shares outstanding – basic | 57,697,666 | 37,135,738 | |||||
Basic loss per common share | $ | (0.07 | ) | $ | (0.02 | ) | |
Weighted average common shares outstanding – diluted | 57,697,666 | 37,135,738 | |||||
Diluted loss per common share | $ | (0.07 | ) | $ | (0.02 | ) |
Three Months Ended March 31, | |||||||
2015 | 2014 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (4,270,912 | ) | $ | (569,311 | ) | |
Adjustments to reconcile net loss to net cash used for operating activities: | |||||||
Depreciation | 47,019 | 17,867 | |||||
Amortization of software development costs and other intangible assets | 127,277 | 5,842 | |||||
Stock-based compensation | 142,331 | 115,338 | |||||
Stock issued or to be issued for payment of services | 35,050 | 58,360 | |||||
Change in fair value of derivatives, net | 2,505,951 | (135,601 | ) | ||||
Cash provided by (used for): | |||||||
Accounts receivable | 34,698 | 730,048 | |||||
Prepaid expenses and other current assets | (23,845 | ) | 6,590 | ||||
Accounts payable | 4,949 | (9,549 | ) | ||||
Accrued expenses | 50,363 | (41,870 | ) | ||||
Unearned revenue | (181,541 | ) | (242,361 | ) | |||
Deferred rent | 548 | 42,536 | |||||
Net cash used for operating activities | (1,528,112 | ) | (22,111 | ) | |||
Cash flows from investing activities: | |||||||
Purchase of equipment | (28,985 | ) | (9,563 | ) | |||
Increase in software development costs | — | (206,529 | ) | ||||
Acquisition, net of cash acquired | (995,286 | ) | — | ||||
Security deposits | — | (4,242 | ) | ||||
Net cash used for investing activities | (1,024,271 | ) | (220,334 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from issuance of common stock and warrants, net | — | 10,982,169 | |||||
Proceeds from stock purchase plan subscriptions & issuance of warrants | 5,264 | — | |||||
Payments on notes payable and capital leases | (14,592 | ) | (19,845 | ) | |||
Net cash provided by (used for) financing activities | (9,328 | ) | 10,962,324 | ||||
Net increase (decrease) in cash and cash equivalents | (2,561,711 | ) | 10,719,879 | ||||
Cash and cash equivalents, beginning of year | 6,521,930 | 530,052 | |||||
Cash and cash equivalents, end of period | $ | 3,960,219 | $ | 11,249,931 | |||
Supplemental cash flow information: | |||||||
Cash paid during period for interest | $ | 2,362 | $ | 3,175 | |||
Non-cash financing and investing activities: | |||||||
Fair value of warrants issued | $ | — | $ | 12,382,216 | |||
Acquisition costs payable for assets acquired | $ | 5,537,064 | $ | — | |||
Acquisition of assets through capital lease | $ | — | $ | 41,339 |
Reconciliation of Net Loss to Operating EBITDA: | |||||||
Three Months Ended | |||||||
March 31, 2015 | March 31, 2014 | ||||||
Net loss | $ | (4,270,912 | ) | $ | (569,311 | ) | |
Non-cash stock-based compensation | 142,331 | 115,338 | |||||
Non-cash stock issued for payment of services | 35,050 | 58,360 | |||||
Change in the fair value of derivatives | 2,505,951 | (135,601 | ) | ||||
Interest expense | 18,770 | 9,017 | |||||
Depreciation & amortization | 174,296 | 17,867 | |||||
Operating EBITDA | $ | (1,394,514 | ) | $ | (504,330 | ) |