IDI, Inc. Reports Second Quarter 2015 Results
On
Key highlights for the second quarter of 2015 include:
- Rapid development of next-generation data fusion technology, with expected release of idiCORE™ in Q4 2015.
- Acquired billions of additional consumer data points to further fuel current and new offerings.
- Launched first information offering, idiBASIC™, an early-stage product aimed to address immediate location and verification needs of multiple industries.
- 168% increase in customer onboarding in Q2 as compared to Q1.
- Appointed new VP Sales and Marketing with extensive direct industry experience.
- Strengthened Board of Directors with several new appointments and added additional key personnel in Sales and Marketing, Information Security, and additional supporting technology areas.
- Inclusion in the Russell Microcap Index®.
- Made the strategic decision to devote all resources to significant opportunity in data fusion industry; discontinued all Chinese operations.
-
Appointed
Grant Thornton LLP as the Company’s principal independent registered public accounting firm. -
Additionally, the Company’s
July 2015 raise of$10.0 million provides a surplus to the capital needed to develop and launch the Company’s next-generation data fusion technology.
Mr.
IDI is currently developing its full investigative system, idiCORE™, which is expected to launch in Q4 2015.
About
RELATED LINKS http://ididata.com/
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 transform the
Company into a leading information solutions provider in the data fusion
industry, whether we can deliver the next level of information
technology that will be able to far surpass what currently exists in the
market today and whether idiCORE will be launched in the 2015 fourth
quarter, as well as other non-historical statements about our
expectations, beliefs or intentions regarding our business, technologies
and products, financial condition, strategies or prospects. Readers 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 and
are advised to consider the factors listed above together with the
additional factors under the heading "Forward-Looking Statements" and
"Risk Factors" in the Company's Annual Report on Form 10-K, as may be
supplemented or amended by the Company's Quarterly Reports on Form 10-Q
and other
|
IDI, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share data) (unaudited) |
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June 30, 2015 |
December 31, 2014 | |||||||
|
ASSETS |
||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 3,080 | $ | 5,996 | ||||
| Accounts receivable, net | 551 | 295 | ||||||
| Prepaid expenses and other current assets | 902 | 190 | ||||||
| Deferred tax assets, current | - | 95 | ||||||
| Assets held for sale | 592 | - | ||||||
| Total current assets | 5,125 | 6,576 | ||||||
| NON-CURRENT ASSETS | ||||||||
| Property and equipment, net | 790 | 302 | ||||||
| Intangible assets, net | 2,217 | 796 | ||||||
| Goodwill | 5,227 | 5,226 | ||||||
| Other assets | 38 | 38 | ||||||
| Deferred tax assets, non-current | - | 275 | ||||||
| Total non-current assets | 8,272 | 6,637 | ||||||
| Total assets | $ | 13,397 | $ | 13,213 | ||||
|
LIABILITIES & SHAREHOLDERS’ EQUITY |
||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable and accrued expenses | $ | 1,330 | $ | 890 | ||||
| Amounts due to related parties | 48 | 52 | ||||||
| Deferred revenue | 147 | 164 | ||||||
| Liabilities held for sale | 1,198 | - | ||||||
| Total current liabilities | 2,723 | 1,106 | ||||||
| Total liabilities | 2,723 | 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 June 30, 2015 and December 31, 2014, respectively | - | - | ||||||
| Common Shares—$0.0005 par value 200,000,000 shares authorized, 13,926,076 and 6,597,155 shares issued and outstanding on June 30, 2015 and December 31, 2014, respectively | 7 | 3 | ||||||
| Additional paid-in capital | 59,384 | 12,714 | ||||||
| Accumulated other comprehensive loss | (130 | ) | - | |||||
| Accumulated deficit | (47,717 | ) | (610 | ) | ||||
| Total IDI shareholders’ equity | 11,544 | 12,107 | ||||||
| Non-controlling interests | (870 | ) | - | |||||
| Total shareholders’ equity | 10,674 | 12,107 | ||||||
| Total liabilities and shareholders’ equity | $ | 13,397 | $ | 13,213 | ||||
|
IDI, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Amounts in thousands, except share and per share data) (unaudited) |
|||||||||
| Three Months Ended | Six Months Ended | ||||||||
| June 30, 2015 (1) | June 30, 2015 (1) | ||||||||
| Revenue from data fusion operations | $ | 994 | $ | 2,252 | |||||
| Cost of revenues | (424 | ) | (978 | ) | |||||
| Gross profit | 570 | 1,274 | |||||||
| Operating expenses | |||||||||
| Sales and marketing expenses | (472 | ) | (1,005 | ) | |||||
| General and administrative expenses | (3,814 | ) | (5,548 | ) | |||||
| Loss from operations | (3,716 | ) | (5,279 | ) | |||||
| Other income/(expense) | |||||||||
| Interest income | - | - | |||||||
| Other expense, net | - | - | |||||||
| Total other income | - | - | |||||||
| Loss from continuing operations before income taxes | (3,716 | ) | (5,279 | ) | |||||
| Income taxes | (265 | ) | (265 | ) | |||||
| Net loss from continuing operations | (3,981 | ) | (5,544 | ) | |||||
| Discontinued operations | |||||||||
| Pretax loss from operations of discontinued operations | (1,171 | ) | (1,262 | ) | |||||
| Pretax loss on disposal of discontinued operations | (41,471 | ) | (41,471 | ) | |||||
| Income tax expenses | (127 | ) | (127 | ) | |||||
| Less: Non-controlling interests | (1,280 | ) | (1,297 | ) | |||||
| Net loss from discontinued operations | (41,489 | ) | (41,563 | ) | |||||
| Net loss | $ | (45,470 | ) | $ | (47,107 | ) | |||
| Loss per share | |||||||||
| Basic and Diluted | |||||||||
| Continuing operations | $ | (0.29 | ) | $ | (0.52 | ) | |||
| Discontinued operations | (2.99 | ) | (3.88 | ) | |||||
| $ | (3.28 | ) | $ | (4.40 | ) | ||||
| Weighted average number of shares outstanding - | |||||||||
| Basic and diluted | 13,896,948 | 10,710,334 | |||||||
|
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| Comprehensive loss: | |||||||||
| Net loss | $ | (45,470 | ) | $ | (47,107 | ) | |||
| Foreign currency translation adjustment | (136 | ) | (130 | ) | |||||
| Net comprehensive loss | $ | (45,606 | ) | $ | (47,237 | ) | |||
(1) As
|
IDI, INC. CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Amounts in thousands, except share data) (unaudited) |
||||
| Six Months Ended | ||||
| June 30, 2015 (1) | ||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||
| Net loss | $ | (47,107 | ) | |
| Less: Loss from discontinued operations, net of tax | (41,563 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||
| Depreciation and amortization | 76 | |||
| Share-based compensation | 1,971 | |||
| Change in allowance for doubtful accounts | (84 | ) | ||
| Deferred income tax expenses | 265 | |||
| Changes in assets and liabilities of continuing operations, net of the effects of acquisition: | ||||
| Accounts receivable | (172 | ) | ||
| Prepaid expenses and other current assets | (554 | ) | ||
| Accounts payable and accrued expenses | (95 | ) | ||
| Amounts due to related parties | (18 | ) | ||
| Deferred revenue | (17 | ) | ||
| Cash used in operating activities from continuing operations | (4,172 | ) | ||
| Cash used in operating activities from discontinued operations | (337 | ) | ||
| Net cash used in operating activities | (4,509 | ) | ||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||
| Purchase of property and equipment | (536 | ) | ||
| Capitalized costs of intangible assets | (1,319 | ) | ||
| Proceeds from acquisition | 3,569 | |||
| Cash provided by investing activities from continuing operations | 1,714 | |||
| Cash used in investing activities from discontinued operations | (121 | ) | ||
| Net cash provided by investing activities | 1,593 | |||
| CASH FLOWS FROM FINANCING ACTIVITIES | ||||
| Net cash provided by financing activities | - | |||
| Net decrease in cash and cash equivalents | $ | (2,916 | ) | |
| Cash and cash equivalents at beginning of period | 5,996 | |||
| Cash and cash equivalents at end of period | $ | 3,080 | ||
| SUPPLEMENTAL DISCLOSURE INFORMATION | ||||
| Cash paid for interest | $ | - | ||
| Cash paid for income taxes | $ | - | ||
| Share-based compensation expenses capitalized as intangible assets | $ | 131 | ||
(1) As
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Source:
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Andrew Haag, 866-976-4784
Managing Partner
idi@irthcommunications.com