UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 14, 2019
| HELIX TCS, INC. | ||
| (Exact name of registrant as specified in its charter) |
| Delaware | 000-55722 | 81-4046024 | ||
| (State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer ID Number) |
|
10200 E. Girard Avenue, Suite B420 Denver, CO 80231 |
| (Address of principal executive offices) |
Registrant’s telephone number, including area code (720) 328-5372
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock | HLIX | OTCQB |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 7.01. | Regulation FD Disclosure. |
On November 14, 2019, Helix TCS, Inc. (the “Company”) issued a press release regarding its results of operations and financial condition for the third quarter ended September 30, 2019. On November 14, 2019 at 4:30pm Eastern Time, the Company will host a conference call to discuss these financial results and provide other corporate updates. The press release is attached hereto as Exhibit 99.1. The information set forth in Exhibit 99.1, including the forward-looking statement disclaimer therein, is incorporated by reference into this Item 7.01 of this Current Report on Form 8-K.
The information contained in this Item 7.01 and Exhibit 99.1 attached hereto is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that Section, nor shall it be deemed incorporated by reference into any registration statement or other filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
| Item 9.01. | Financial Statements and Exhibits. |
| (d) | Exhibits |
|
Exhibit No. |
Description | |
| 99.1 | Press Release dated November 14, 2019 | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| HELIX TCS, INC. | |
| Date: November 14, 2019 | /s/ Scott Ogur |
| Scott Ogur | |
| Chief Financial Officer |
2
Exhibit 99.1
Helix TCS Announces Third Quarter Results, Reports 80% increase in Revenue, 39% Improvement in Cash Flow from Operations.
Denver, CO, Nov. 14, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Helix TCS, Inc. (OTCQB:HLIX) (the “Company”) today reported its results for the third quarter of 2019. The Company will be hosting an earnings call today, November 14, 2019, at 4:30pm Eastern time. Call info can be found at the bottom of this release.
“Q3 has seen the company continue to meet its goals on key operational initiatives and our overarching strategy. Strategic acquisitions, a strong customer focus, and targeted internal improvements continue to drive growth and shareholder value” said Zachary L. Venegas, Helix TCS Executive Chairman and CEO. “While we firmly believe that the market does not view Helix TCS correctly, the company itself is stronger than ever. We clearly anticipated the tightening in capital markets, and took appropriate steps months in advance to prepare for it, and we are on track in improving our cash from operations, cutting costs, and closing in on profitability even as we continue to grow our market share and add new product and service lines. Doing this all simultaneously while requiring minimal capital is solid proof of the operational results that we deliver for investors.”
Highlights of the third quarter and first nine months of 2019 include:
| • | Q3 2019 revenue of $3.74MM, an increase of 20% compared to the same quarter YoY | |
| • | Gross profit for the quarter was $1.5 million, a 41% blended gross margin; software gross margin was 62+% | |
| • | In the first 9 months of 2019, the Company generated revenues of $11MM, an increase of 80% from the same period in 2018 | |
| • | Cash flows from operations improved in Q3 by 39%, compared to Q3 2018 | |
| • | BioTrackTHC added 306 new licenses, a 50% increase in new users from Q2 | |
| • | BioTrack Recurring Commercial Revenues increased 10% from Q2 to Q3 2019 | |
| • | BioTrack commercial bookings increased 27% to $489K | |
| • | Closed acquisition of Amercanex, the world’s only fully compliant online Cannabis and Hemp wholesale marketplace | |
| • | Remained dominant in Cannabis POS Market Share |
The 3rd quarter saw accelerated growth for the BioTrack business line driven by strong sales in emerging markets as well as expanding existing contracts. The SaaS platform continues to grow, and expansion by major clients is creating a more stable user base across the country. This trend helped reduce churn to <2% in Q3. We also made significant progress on multiple development initiatives, with next generation products expected to begin generating revenue in Q4.
Conference Call Info:
We recommend calling in approximately 10 minutes prior to the start of the call. There will be live Q&A on the call as well, questions can also be submitted ahead of time or during the call to ir@helixtcs.com.
Interested parties can participate in the call using the following information:
| • | Attendee Dial In: 866-831-8616 | |
| • | Passcode or ID: 10256 |
Sign up for Helix TCS Investor Updates here.
About Helix TCS, Inc.
Helix TCS, Inc. (OTCQB: HLIX) is a leading provider of critical infrastructure services, helping owners and operators of licensed cannabis businesses stay competitive and compliant while mitigating risk. Through its proprietary technology suite and security services, Helix TCS provides comprehensive supply chain management, compliance tools, and asset protection for any license type in any regulated cannabis market. While Helix provides services to the Cannabis and Hemp Industries, the Company does not deal directly with the plant or any derivative products. Helix TCS’ products reach over 2,000 customer locations in 38 states and 6 countries and has processed over $20 billion in cannabis sales. For more information on Helix TCS and to sign up for investor updates, visit us at www.helixtcs.com.
Forward-Looking Statements
Except for historical information, all of the statements, expectations, and assumptions contained in this press release are forward-looking statements. Actual results might differ materially from those explicit or implicit in the forward-looking statements. Important factors that could cause actual results to differ materially include: our ability to fund our operations and pay any outstanding debt; fluctuations in our financial results; general economic risks; the volatile nature of the market for our products and services and other factors that could impact our anticipated growth; our ability to manage our growth; changes in laws and regulations regarding the cannabis industry and service providers in the cannabis industry; reliance on key personnel; our ability to compete effectively; security and other risks associated with our business; intellectual property risks; and other risk factors set forth from time to time in our SEC filings. Helix TCS assumes no obligation and does not intend to update these forward-looking statements, except as required by law.
Media Contact:
Colt Peterson
Helix TCS, Inc.
303-324-1022
press@helixtcs.com
IR Contact:
Scott Ogur
Helix TCS, Inc.
ir@helixtcs.com