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FingerMotion Provides Supplemental Corporate Update

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CEO outlines current business profit centers and corporate infrastructure advancements

NEW YORK, Aug. 13, 2019 (GLOBE NEWSWIRE) — FingerMotion, Inc. (OTC QB: FNGR), a US FinTech company with mobile payment and recharge platform operations in China, today provided a supplemental corporate update in a letter from its CEO Martin Shen to its shareholders.

To Our Shareholders

The China Unicom Portal Partnership
The China Unicom (NYSE: CHU) deal was an extremely positive step for our company. Because of this agreement, we were able to onboard companies such as Pinduoduo (NASDAQ: PDD), JD.com (NYSE: JD), and Alibaba’s Tmall to our platform.  We believe that this agreement validates our business model of targeting top-tiered e-commerce platforms and showcases our capability to handle our e-commerce partner’s significant user base.  These e-commerce sites would likely not have allowed us to interface with their platforms unless they were convinced we had the capability to process over a billion transactions per month.

The partnership agreement between FingerMotion and China Unicom allows FingerMotion to have direct access to users for their top-up fulfillment, and also allows FingerMotion to sell any and all mobile phone products available from China Unicom through the China Unicom brand portals.  China Unicom will remain responsible for all inventory and fulfilment costs of physical products, meaning FingerMotion will have very limited capital costs in handing all revenues coming through the portals. This partnership allows FingerMotion to share profits with the second largest telecommunications company in China.  The expected rollout of the China Unicom portals should begin before November 2019.

SMS Business
The SMS business through China Unicom is now in full operation. While the overall size of the top-up market will continue to grow organically, we believe that growth in the SMS market will accelerate.

In the past, SPAM has been a major problem plaguing the SMS industry as there was an oversaturation of messages that were not being policed.  Recently, the government of China instituted a policy of oversight, which curbed and eventually stopped SPAM messages.  Since the government essentially reviews all messages before they are sent, SMS in China is now essentially SPAM-free with respect to legitimate users, and we are poised to take advantage of this new landscape. 

Our business model relies on clients who regularly send messages to their retail customer base.  We buy our messages at bulk wholesale prices, then immediately sell the messages to our retail partners, allowing them to share, in part, in the discounted rates.  This allows us to generate revenue and increase our margins with little risk of inventory.  Unlike our portal business with China Unicom, we grant our customers 30-day payment terms, so this business requires us to invest in carrying client receivables.

Big Data Insights
Our previous press release mentioned Big Data.  Big Data means all the metadata that FingerMotion can aggregate from the massive China Unicom user bases of the top-tiered e-commerce platforms.  While we will not own the data, we are responsible for collecting, storing, and securing this data, and we will be given access to analyze and potentially formulate powerful conclusions from the accessed information. Our analytics team has already begun gathering the information.  We predict that using Big Data could represent a major growth driver and become a business multiplier for us. However, to ensure adequate development, we predict that we are at least 6 months to a year away from formally introducing this business unit.

We are well aware of the obligations we have to consumers to keep their information private and safe. We will only use data we accumulate with each individual consumer’s permission and we will explain what information we wish to obtain, and how we will use this information to save money for the consumer.

Capital Requirements
Almost all rapidly growing e-commerce companies need money for marketing.  Our need for working capital arises from the structuring of the top-up transactions from e-commerce companies. The e-commerce company top-ups require us to have funds on account with the telecommunications companies.  The SMS business is also capital intensive because we need to buy the messages at least 30 days in advance of payment.  However, we do not need marketing money to increase our user-base, unlike most FinTech companies, which spend massive amounts of money to capture and retain users.  Therefore, we continue to be committed in pursuing financing options.

Corporate Governance and Transparency
We want to reiterate that we are a US company with operations in China.  Most of our e-commerce competitors in China, if not all of them, are foreign filers.  Therefore, as a US filer, we believe we offer a greater level of transparency and oversight.  As a company, we are working to become Sarbanes-Oxley compliant, and we have been actively working to finalize our Corporate Governance and Code of Conduct policies.

In line with future planning, we have hired an in-house investor relations representative to assist in answering investors’ questions.  In addition, we plan to update our website and keep the information up-to-date and current.  We hope you appreciate our efforts in this regard as we move to establish a better rapport with our investors. 

Our focus is on sustainable profitability. Like other e-commerce FinTech companies, we are focused on customer acquisition and growing our Gross Transaction Volume (GTV).  But our strategic relationships also give us unprecedented access to users and the ability to sell a wide array of products and services to this expansive user base.  We believe our inflection point to profitability is only months away, and we hope that our investors appreciate the progress we have made this year and can see the future direction of our company as we do.

Sincerely

Martin Shen
CEO, FingerMotion Inc.

About FingerMotion Inc.

FingerMotion is an evolving technology company located in China with a core competency in mobile payment and recharge platform solutions.  It is one of five companies in China with access to wholesale rechargeable minutes through top-up credits on the mobile phone.  As the primary business continues to grow its user base, the company is developing value added technologies to market to its users.  The vision of the company is to rapidly grow the user base through organic means and have this growth develop into an ecosystem of users with high engagement rates utilizing its innovative applications. Developing a highly engaged ecosystem of users would strategically position the company to onboard larger customer bases.  FingerMotion eventually hopes to serve over 1 billion users in the China market and eventually expand the model to other regional markets.

Safe Harbor Statement

This release contains certain “forward-looking statements” relating to the business of the Company. All statements, other than statements of historical fact included herein are “forward-looking statements” including statements regarding: the continued growth of the e-commerce market and the ability of the Company to continue its expansion into that market; the ability of the Company to attract customers and partners and generate revenues; the ability of the Company to successfully execute its business plan; the business strategy, plans, and objectives of the Company; and any other statements of non-historical information. These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects,” “predicts,” “should,” “will” or similar expressions and involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks, and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this news release. The Company’s actual results could differ materially from those anticipated or implied in these forward-looking statements as a result of a variety of factors, including those discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume any duty to update these forward-looking statements.

For further information e-mail: info@fingermotion.com

 

GlobeNewswire is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.

IT

ShiftPixy, Inc. Reports Fiscal 2019 Results

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IRVINE, Calif., Dec. 13, 2019 (GLOBE NEWSWIRE) — ShiftPixy, Inc. (NASDAQ: PIXY), a California-based staffing enterprise that designs, manages, and sells access to a disruptive, revolutionary platform that facilitates employment in the rapidly growing Gig Economy, today announced operating results for the year ended August 31, 2019 (“2019”).

2019 Financial Highlights

  • Earnings per share improved to $0.57 in 2019 compared to $0.58 for 2018.
  • Gross billings grew 59% to $353 million, compared to $222 million for 2018.  Q4 billings exceeded $100 million for the first quarter in our history at $105 million for an exit annualized billings rate of over $420 million.  
  • Revenues increased 53% to $53 million, compared to $35 million for 2018.
  • Gross profit was $12.4 million, increasing 125% over 2018 gross profit of $5.5 million due to improving margins and workers compensation cost savings.  Gross profit per worksite employee improved to $1,200 for 2019 from $800 for 2018.
  • Loss from Operations improved to $9.7 million from $11.6 million in 2018. 
  • EBITDAS Loss (Operating Loss excluding depreciation and share-based compensation) improved to $8.3 million for 2019 from $11.0 million for 2018 due to improved margins and reduced spending on our mobile application, offset by increased operations costs.
  • Investment in our mobile application and technology solution deployment decreased to $4.9 million in 2019 from $7.5 million in 2018 due to reduced costs relating to movement to our new in-sourced development team.  Total Human Resource Information System (HRIS) and mobile application investment is $15.5 million to date.

2019 Operational highlights

  • The number of employees billed during the year and retained in our employee HRIS exceeded 25,000.
  • The active number of worksite employees billed increased to 13,100 at August 31, 2019, a 54% increase, from 8,500 at August 31, 2018.
  • Average gross billings per worksite employee increased by 4.3% to $33,600 in 2019 from $32,200 in 2018
  • Average operating support costs per billed worksite employee improved in 2019.  We have staffed to manage up to 50,000 active worksite employees with our current corporate overhead.
  • Our dispute with our outsourced software development partner delayed our HRIS and mobile application launch in 2019 and necessitated our move towards in-house development. 

“We continue to see strong growth in our legacy business which has driven top line expansion and improvement in our operating metrics, including gross billings and gross profits for 2019,” stated Chief Executive Officer, Scott Absher.  ”Delays in the launch of our mobile application solution are now behind us and the project is now back on track and well received by our initial launch customers.  We believe it will support revenue growth in 2020 from both significantly higher worksite employee counts and added technology features.  The reception from our target customers has been phenomenal and we expect to see a significant increase in our business activity levels as we move into calendar 2020 and continue our focus on creating long-term shareholder value.”

About ShiftPixy
ShiftPixy is a disruptive human capital services enterprise, revolutionizing employment in the Gig Economy by delivering a next-gen platform for workforce management that helps businesses with shift-based employees navigate regulatory mandates, minimize administrative burdens and better connect with a ready-for-hire workforce.  With expertise rooted in management’s nearly 25 years of workers’ compensation and compliance programs experience, ShiftPixy adds a needed layer for addressing compliance and continued demands for equitable employment practices in the growing Gig Economy. ShiftPixy’s complete HCM ecosystem is designed to manage regulatory requirements and compliance in such required areas as paid time off (PTO) laws, insurance and workers’ compensation, minimum wage increases, and the Affordable Care Act (ACA) compliance.

ShiftPixy Cautionary Statement
The information provided in this release includes forward-looking statements, the achievement or success of which involves risks, uncertainties, and assumptions. Although such forward-looking statements are based upon what management of the Company believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate. If any of the risks or uncertainties, including those set forth below, materialize or if any of the assumptions proves incorrect, the results of ShiftPixy, Inc., could differ materially from the results expressed or implied by the forward-looking statements we make.  The risks and uncertainties include, but are not limited to, risks associated with the nature of our business model; our ability to execute the Company’s vision and growth strategy; our ability to attract and retain clients; our ability to assess and manage risks; changes in the law that affect our business and our ability to respond to such changes and incorporate them into our business model, as necessary; our ability to insure against and otherwise effectively manage risks that affect our business; competition; reliance on third-party systems and software; our ability to protect and maintain our intellectual property; and general developments in the economy and financial markets.  Statements made in connection with any guidance may refer to financial statements that have not been reviewed or audited.  The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change, except as required by applicable securities laws.  The information in this press release shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, and will not be deemed an admission as to the materiality of any information that is required to be disclosed solely by Regulation FD.  Further information on these and other factors that could affect the financial results of ShiftPixy, Inc., is included in the filings on Forms 1-A and 10-Q and in other filings we make with the Securities and Exchange Commission from time to time. These documents are available on the “SEC Filings” subsection of the “Investor Information” section of our website at https://ir.shiftpixy.com/financial-information/sec-filings.

Consistent with the SEC’s April 2013 guidance on using social media outlets like Facebook and Twitter to make corporate disclosures and announce key information in compliance with Regulation FD, ShiftPixy is alerting investors and other members of the general public that ShiftPixy will provide updates on operations and progress required to be disclosed under Regulation FD through its social media on Facebook, Twitter, LinkedIn and YouTube. Investors, potential investors, shareholders and individuals interested in our Company are encouraged to keep informed by following us on Facebook, Twitter, LinkedIn and YouTube.

INVESTOR CONTACT:

InvestorRelations@shiftpixy.com
800.475.3655

ShiftPixy Inc.
Consolidated Balance Sheets

    August 31,
2019
    August 31,
2018
 
ASSETS  
Current assets            
Cash   $ 1,561,000     $ 1,650,000  
Accounts receivable     272,000       111,000  
Unbilled accounts receivable     9,478,000       6,193,000  
Deposits-workers’ compensation     1,957,000       1,672,000  
Prepaid expenses     519,000       563,000  
Other current assets     244,000       259,000  
Total current assets     14,031,000       10,447,000  
                 
Fixed assets, net     3,360,000       3,032,000  
Deposits- workers’ compensation     6,281,000       2,202,000  
Deposits and other assets     124,000       121,000  
Total assets   $ 23,796,000     $ 15,802,000  
                 
LIABILITIES AND STOCKHOLDERS’ DEFICIT
Current liabilities                
Accounts payable   $ 3,061,000     $ 1,246,000  
Accrued payroll and related liabilities     16,412,000       9,477,000  
Convertible Notes, Net     3,351,000       6,171,000  
Derivative liability     3,756,000        
Accrued workers’ compensation costs     1,957,000       305,000  
Default penalties accrual     1,800,000       3,500,000  
Other current liabilities     1,850,000       1,956,000  
Total current liabilities     32,187,000       22,656,000  
Noncurrent liabilities                
Accrued workers’ compensation costs     4,379,000       901,000  
Total liabilities     36,566,000       23,557,000  
Commitments and contingencies                
Stockholders’ deficit                
Preferred stock, 50,000,000 authorized shares; $0.0001 par value; no shares issued and outstanding            
Common stock, 750,000,000 authorized shares; $0.0001 par value; 36,281,894 and 28,851,787 shares issued as of August 31, 2019 and 2018, respectively     4,000       3,000  
Additional paid-in capital     32,501,000       18,465,000  
Treasury stock, at cost – 558,132 shares and no shares as of August 31, 2019 and 2018, respectively     (325,000 )      
Accumulated deficit     (44,950,000 )     (26,223,000 )
Total stockholders’ deficit     (12,770,000 )     (7,755,000 )
Total liabilities and stockholders’ deficit   $ 23,796,000     $ 15,802,000  

ShiftPixy Inc.
Consolidated Statements of Operations

    For the Years Ended  
    August 31,
2019
    August 31,
2018
 
             
Revenues (gross billings of $352.6 million and $222.4 million (unaudited)  less worksite employee payroll cost of $299.2 million and $187.5 million, (unaudited) respectively)   $ 53,436,000     $ 34,959,000  
                 
Cost of revenue     41,046,000       29,458,000  
Gross profit     12,390,000       5,500,000  
Operating expenses:                
Salaries, wages and payroll taxes     7,702,000       5,383,000  
Share-based compensation – general and administrative     632,000       363,000  
Commissions     2,732,000       1,594,000  
Professional fees     3,918,000       2,078,000  
Software development     1,209,000       3,828,000  
Marketing and advertising     1,208,000       547,000  
General and administrative     3,823,000       3,005,000  
Depreciation and amortization     839,000       274,000  
Total operating expenses     22,063,000       17,072,000  
Operating Loss     (9,673,000 )     (11,572,000 )
Other income (expense)                
Interest expense     (8,507,000 )     (1,751,000 )
Loss on debt extinguishment     (3,927,000 )      
Change in fair value of derivative     2,569,000        
Gain (Loss) associated with note defaults, net     811,000       (3,500,000 )
Total Other income (expense)     (9,054,000 )     (5,251,000 )
                 
Net Loss   $ (18,727,000 )   $ (16,823,000 )
                 
Net loss per common share                
Basic and diluted   $ (0.57 )   $ (0.58 )
                 
Weighted average number of common shares                
Basic and diluted     32,708,800       28,810,103  

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IT

BrewBilt Merger with Vet Online: Chairman Statement

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KELSEYVILLE, CA, Dec. 13, 2019 (GLOBE NEWSWIRE) — via NEWMEDIAWIRE – Vet Online Supply, Inc. (OTC PINK:VTNL) (“Vet Online Supply” or the “Company”), BrewBilt Manufacturing, LLC (a California Limited Liability Corporation) CEO and Chairman, Jef Lewis, states the following:

“On November 22, 2019, we entered into a Merger Agreement between BrewBilt Manufacturing and the Company. Pursuant the 8K Filing on November 22, 2019, the Merger with BrewBilt brings a growing business with revenue of $2M+ and assets to the company and to our shareholders. With new purchase orders of over $1M in process, BrewBilt has been manufacturing quality beer brewing systems since 2014, and manufacturing cannabis systems used for extraction of hemp and CBD during the same period. The global industrial hemp market size is estimated at USD 3.9 billion in 2017, expanding at a CAGR of 14.0% over the forecast period. Growing demand for hemp-based food products including cooking oil, dairy alternatives, flour, and salad dressings is expected to drive market growth. In addition, rising demand for bakery products such as bread and cookies is expected to drive the market.

“Our objective in being a publicly owned company at this time is to broaden our scope of value over the next 5 years as we grow and enter the world market for supplying the growing beer industry and cannabis extraction industry. Our business is not a start-up, and we continue to be recognized as the quality manufacturer for restaurants and small breweries, and for cannabis growers seeking extraction systems for processing hemp and CBD.

“Our auditing firm and accounting firm are preparing the required Super-8K filing consisting of our financials. The audited 10K for the period ending 12/31/2019 will be filed on or before 3/15/2019. The company plans to change its name to ‘BrewBilt Manufacturing’ and receive new trading symbols. The Pet Product business will be spun-off before the end of 2020.

“The future outlook over the next 5 years for our company, based upon our growth rate since 2014, is promising since the hemp seeds segment is likely to expand at a CAGR of 17.1% during the forecast period, in terms of revenue. This growth is attributed to the rising demand for oil, seedcakes, and various food and nutraceutical items. Nutraceutical products are known for their high fatty acid content and nutritional value. Seeds comprise about 35.0% oil, which contains roughly 80.0% essential fatty acids and 20.0% crude protein. BrewBilt manufactures the highest quality products for this industry.”

BrewBilt Video Link: https://www.brewbilt.com/about-1

ABOUT BREWBILT:  (www.brewbilt.com)

Located in the Sierra Foothills of Northern California, BrewBilt is one of the only California companies that custom designs, hand crafts, and integrates processing, fermentation and distillation processing systems for the craft beer, cannabis and hemp industries using “Best in Class” American made components integrated with stainless steel processing vessels using only American made steel. Founded in 2014, the company began in a backyard shop by Jef Lewis with a vision of creating a profitable company in “Rural America”. BrewBilt has built a solid foundation by having strong relationships with local suppliers of raw materials, equipment and services in California, an aggressive referral network of satisfied customers nationwide, and an Advisory Board consisting of successful business leaders that provide valuable product feedback and business expertise to management. The craft brewing & spirits industries continue to grow worldwide. California is where craft brewing began and now has over 900 operating breweries – being centrally located in this booming market was a large draw for BrewBilt to locate its manufacturing facility in the Sierra foothills. All BrewBilt products are designed and fabricated as “food grade” quality which enables the company to build vessels for food & beverage processing. More important, the company has been building systems that are pharmaceutical grade for clients involved in distillation for the cannabis and hemp industries over the past 36 months, thus making the revenue potential much greater. 

Safe Harbor for Forward-Looking Statements: This news release includes forward-looking statements. While these statements are made to convey to the public the company’s progress, business opportunities and growth prospects, readers are cautioned that such forward-looking statements represent management’s opinion. Whereas management believes such representations to be true and accurate based on information and data available to the company at this time, actual results may differ materially from those described. The Company’s operations and business prospects are always subject to risk and uncertainties. Important factors that may cause actual results to differ are and will be set forth in the company’s periodic filings with the U.S. Securities and Exchange Commission.

Contact:
Meridian Consulting
415-756-4057

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IT

Ziyen Energy Announces the Acquisition of Non-Producing Minerals in Saxet Field, Nueces County, Texas in Exchange for 930,000 ZiyenCoins

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SAN DIEGO, Dec. 13, 2019 (GLOBE NEWSWIRE) — Ziyen Energy has announced they have acquired the minerals at the Douglas Prospect, Saxet Field in Nueces County, Texas in exchange for 930,000 ZiyenCoins.

The Douglas Prospect, covers 83.19 gross acres, 15.6 mineral acres, and includes a recently drilled shut in oil well.  The Douglas Prospect is in the Saxet Oil Field which has produced over 100,000,000 barrels of oil from approximately 40 separate reservoirs. The field was developed in the late 1930’s producing an approximate 17,000 barrels of oil per day.

Alastair Caithness, CEO, stated

“This is our third transaction in ZiyenCoin, and the first acquisition in owning the mineral rights.  This will provide Ziyen Energy with a long-term asset for the company, as unlike leasing the property the company now owns the minerals indefinitely in a Texas oil field which has produced over 100 million barrels of oil.  As we make every new transaction in ZiyenCoin we are starting to set a precedence on the pricing of each oil asset with our digital energy token.”

Learn more about Ziyen Inc. and ZiyenCoin by reading our 2019 Ziyen Inc. Corporate Overview.

If you would like a copy of ZiyenCoin’s Security Token Offering (STO), then please email support@ziyen.com or visit www.ziyen.com for more information.

About Ziyen Energy:

Ziyen Energy. is a technology-driven energy company incorporated in the State of Wyoming, U.S.A. in April 2016. Originally formed as a software company providing information on the oil, gas, power and energy sectors, Ziyen specializes on business information, contracts, news and information by developing cutting edge procurement and supply chain software to provide clients with intelligence on industry specific government and private contracts. In addition, Ziyen Energy currently owns interests in oil assets based in Texas and the Illinois Basin, which covers Illinois, Indiana and Kentucky. The equity of Ziyen Energy has been tokenized and issued as ZiyenCoin which is offered for sale as a Security Token pursuant to SEC Rule 506(c) of Regulation D.

For more information visit www.ziyen.com

Forward Looking Statements:

Certain statements in this press release including, but not limited to, statements related to anticipated commencement of commercial production, targeted pricing, performance goals, and statements that otherwise relate to future periods are forward-looking statements. These statements involve risks and uncertainties, which are described in more detail in reports filed with the SEC. Forward-looking statements are made and based on information available to the company on the date of this press release. Ziyen Inc. assumes no obligation to update the information in this press release.

Contact:

Alastair Caithness

Media Relations

mediarelations@ziyen.com

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