SANTA MONICA, Calif.,
March 10, 2015 /PRNewswire/ --
Rightscorp (OTCQB: RIHT), the leading provider of monetization
services for artists and holders of copyrighted Intellectual
Property (IP), today announced its financial results for the fourth
quarter and full year 2014 ended December
31, 2014.
Financial Highlights:
- Company increased revenues due to growth in copyrights, ISP
participation, and settlements closed;
- 187% increase in revenues to $930,729 for the year ended December 31, 2014, from $324,016 for the full year ended December 31, 2013;
- 56% increase in revenues to $241,928 for the fourth quarter period ended
December 31, 2014, from $155,381 for the fourth quarter period ended
December 31, 2013;
- Balance sheet improvements include a material increase in cash
and cash equivalents of $1,666,914 on
December 31, 2014.
Operational Highlights:
- Company recently reported an increase in Internet Service
Providers (ISPs) participation to over 233, up 466% from last 12
months, representing an estimated 15% of homes in the U.S.;
- On March 4, 2014, Rightscorp
reported 180,000 copyright infringement cases closed including more
than 1,000 cases closed on Comcast and Google Fiber;
- Signed two new contracts to represent an additional 250,000
additional copyrights;
- Appointed industry veteran Gregory
Noveck, Senior Vice President, Production for SYFY Films to
Rightscorp's Board of Advisors;
- Selected as a Top Company in EContent's 14th Annual EContent
100, a list of Top 100 Companies in the Digital Content Industry.
Rightscorp was selected in the "Content Creation" category. Other
notable companies chosen in the EContent 100 include Adobe, Amazon,
Apple, Facebook, Google, and Netflix.
Robert Steele, Rightscorp
President and COO commented, "We recorded our strongest year yet
with an astounding 187% year-over-year growth. This was driven by
an increase in the number of copyrights ingested into our system
from approximately 30,000 on December 31,
2013 to approximately 230,000 on December 31, 2014. Moving into 2015, we have
already announced some great progress on all of our operating
metrics. We are confident that by focusing on these growth metrics,
we will be able to capture significant growth ahead."
Rightscorp CEO Christopher Sabec,
added, "Our commitment to provide our customers with effective
technology to identify, monitor, and monetize peer-to-peer
copyright infringements has delivered excellent results for 2014.
We recently reported on seven major feature films that suffered
from piracy while still in their theatrical window, demonstrating
the detrimental effect it has on the movie industry. During
the second and third quarter of the year, our management efforts
were centered on securing financing. As a result, our last quarter
was focused on technological upgrades and process implementations
to support growth that will allow us to fully capitalize on the
sustainable growth trend ahead. We have grown our reputation for
having the most effective solution in combating illegal file
sharing which addresses the multi-billion dollar piracy
dilemma."
Fourth Quarter Financial Summary
Revenues for the fourth quarter ended December 31, 2014 were $241,928, up 56% from $155,381 in the same period last year. The growth
in revenues were driven by the Company's ability to increase the
amount of active copyrights ingested in the Rightscorp's automated
system. This directly correlates to the Company's ability to
collect payment for copyright infringement.
Full Year 2014 ended December 31,
2014
For the twelve months ended December 31,
2014, Rightscorp reported $930,729 in revenues, an increase of 187% over
revenues from $324,016 for the full
year 2013. This increase in revenue was driven by an increase in
the number of copyrights ingested into the system for which the
Company has contracts to monitor for infringements, from
approximately 30,000 on December 31,
2013 to approximately 230,000 on December 31, 2014.
Rightscorp incurred operating expenses of $4,329,602 during the twelve months ended
December 31, 2014, as compared to
$2,134,843 for the twelve months
ended December 31, 2013. This
increase was due to increased payroll expenses and fees paid to
copyright holders in the period. General and administrative
expenses were $3,661,575 for the year
ended December 31, 2014, compared to
$1,663,921 for the year ended
December 31, 2013, an increase of
$1,997,654 due to increased wages
expenses, professional and investment banking fees, and travel and
other expenses related to securing financing.
Sales and marketing costs were $139,175 for the year ended December 31, 2014 compared to $275,616 for the year ended December 31, 2013, a decrease of $136,441.
Depreciation and amortization expenses were $63,488 during the year ended December 31, 2014, an increase of $30,050, as compared to $33,438 for the year ended December 31, 2013.
Net loss attributable to common shareholders was $2,852,705, or $(0.04) compared to $2,042,779 or $(0.05) for the twelve months ended December 31, 2013.
At December 31, 2014, the Company
had cash and cash equivalents of $1,666,914.
Conference call information:
Date: Tuesday, March 10, 2015
Time: 4:15 P.M. Eastern Time (ET)
Dial in Number for U.S. & Canadian Callers: 1-877-407-9129
Dial in Number for International Callers (Outside of the U.S. &
Canada): 1-201-493-6753
Participating on the call will be Rightscorp Chief Executive
Officer Christopher Sabec and Chief Operating Officer Robert Steele, who will discuss operational and
financial highlights for the fourth quarter and full year of
2014.
To join the live conference call, please dial into the above
referenced telephone numbers five to ten minutes prior to the
scheduled conference call time. A live webcast and archive of the
call will also be available on Rightscorp's website at:
http://rightscorp.equisolvewebcast.com/q4-2014.
A replay will be available for 14 days starting on March 10, 2015 at approximately 8:00 P.M. (ET). To access the replay, please dial
1-877-660-6853 in the U.S. and 1-201-612-7415 for international
callers. The conference ID# is 418309.
About Rightscorp, Inc.
Rightscorp (RIHT) is a leading
provider of monetization services for artists and holders of
copyrighted Intellectual Property (IP). The Company's patent
pending digital loss prevention technology focuses on the
infringement of digital content such as music, movies, software,
books and games and ensures that owners and creators are rightfully
paid for their IP. Rightscorp implements existing laws to
solve copyright infringements by collecting payments from illegal
file sharing activities via notifications sent through Internet
Service Providers (ISPs). The Company's technology identifies
copyright infringers, who are offered a reasonable settlement
option when compared to the legal liability defined in the Digital
Millennium Copyrights Act (DMCA). Based on the fact that 22% of all
Internet traffic is used to distribute copyrighted content without
permission or compensation to the creators, Rightscorp is pursuing
an estimated $2.3 billion opportunity and has monetized major media
titles through relationships with industry leaders.
http://www.rightscorp.com/
Safe Harbor Statement
This press release may include
forward-looking statements. All statements other than statements of
historical fact included in this press release, including, without
limitation, statements regarding the Company's anticipated
financial position, business strategy and plans and objectives of
management of the Company for future operations, are
forward-looking statements. When used in this press release, words
such as "anticipate," "believe," "estimate," "expect," "intend,"
and similar expressions, as they relate to the Company or its
management, identify forward-looking statements. Such
forward-looking statements are based on the beliefs of the
Company's management as well as assumptions made by and information
currently available to the Company's management. Actual results
could differ materially from those contemplated by the
forward-looking statements as a result of certain factors not
limited to, general economic and business conditions, competitive
factors, changes in business strategy or development plans, the
ability to attract and retain qualified personnel, and changes in
legal and regulatory requirements. Such forward-looking statements
reflect the current views of the Company with respect to future
events and are subject to these and other risks, uncertainties and
assumptions relating to the operations, results of operations,
growth strategy and liquidity of the Company. All subsequent
written and oral forward-looking statements attributable to the
Company or persons acting on its behalf are expressly qualified in
their entirety by this paragraph.
For further investor and media information contact:
Andrew Haag
Managing Partner
IRTH Communications
riht@irthcommunications.com
1-866-976-4784
[Financial Tables to Follow]
Rightscorp,
Inc.
|
Consolidated
Statements of Operations
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Year Ended
|
|
Year Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2014
|
|
2013
|
Revenue
|
|
$930,729
|
|
$324,016
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
Copyright holder
fees
|
|
465,364
|
|
161,868
|
General and
administrative
|
|
3,661,575
|
|
1,663,921
|
Sales and
marketing
|
|
139,175
|
|
275,616
|
Depreciation and
amortization
|
|
63,488
|
|
33,438
|
Total operating
expenses
|
|
4,329,602
|
|
2,134,843
|
|
|
|
|
|
Loss from
operations
|
|
(3,398,873)
|
|
(1,810,827)
|
|
|
|
|
|
Other Income
(expenses):
|
|
|
|
|
Interest
expense
|
|
(26,600)
|
|
(298,077)
|
Other
expense
|
|
-
|
|
(185)
|
Gain on valuation of
derivative
|
|
550,985
|
|
-
|
Gain on extinguishment
of debt
|
|
21,783
|
|
66,310
|
Total other income
(expenses)
|
|
546,168
|
|
(231,952)
|
|
|
|
|
|
Loss from
operations before income taxes
|
|
(2,852,705)
|
|
(2,042,779)
|
|
|
|
|
|
Provision for income
taxes
|
|
-
|
|
-
|
|
|
|
|
|
Net
loss
|
|
$(2,852,705)
|
|
$(2,042,779)
|
|
|
|
|
|
Net loss per share
– basic and diluted
|
|
(0.04)
|
|
(0.05)
|
|
|
|
|
|
Weighted average
common shares – basic and diluted
|
|
71,002,182
|
|
38,191,898
|
Rightscorp,
Inc.
|
Consolidated Balance
Sheets
|
(Unaudited)
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
2014
|
|
2013
|
Assets
|
|
|
|
Cash
|
$1,666,914
|
|
$36,331
|
Prepaid
expenses
|
190,345
|
|
19,639
|
Total Current
Assets
|
1,857,259
|
|
55,970
|
Other
Assets
|
|
|
|
Fixed assets,
net
|
240,272
|
|
56,453
|
Intangible assets,
net
|
16,900
|
|
33,800
|
Total
Assets
|
$2,114,431
|
|
$146,223
|
|
|
|
|
Liabilities and
Stockholders' Deficit
|
|
|
|
Current
Liabilities:
|
|
|
|
Accounts payable and
accrued liabilities
|
$564,579
|
|
$928,304
|
Convertible notes
payable, net of discount of $0 and $10,891
|
10,000
|
|
202,609
|
Notes
payable
|
43,988
|
|
-
|
Derivative
liabilities
|
2,419,087
|
|
-
|
Total Current
Liabilities
|
3,037,654
|
|
1,130,913
|
Total
Liabilities
|
3,037,654
|
|
1,130,913
|
|
|
|
|
Stockholders'
Deficit:
|
|
|
|
Preferred stock, $.001
par value; 10,000,000 shares authorized; null shares issued and
outstanding
|
-
|
|
-
|
Common stock, $.001
par value; 250,000,000 shares authorized; 89,896,421 and 68,797,102
shares issued and outstanding, respectively
|
89,896
|
|
68,797
|
Common stock to be
issued
|
50,000
|
|
380,000
|
Additional paid in
capital
|
6,030,259
|
|
2,807,185
|
Accumulated
deficit
|
(7,093,377)
|
|
(4,240,672)
|
Total stockholders'
deficit
|
(923,222)
|
|
(984,690)
|
Total Liabilities
and Stockholders' Deficit
|
$2,114,431
|
|
$146,223
|
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visit:http://www.prnewswire.com/news-releases/rightscorp-announces-fourth-quarter-and-full-year-2014-financial-results-300048398.html
SOURCE Rightscorp, Inc.