Liquid Holdings Group, Inc. (LIQDQ) SEC Filing 10-K Annual report for the fiscal year ending Tuesday, December 31, 2013

Liquid Holdings Group Reports Fourth Quarter 2013 Results

Annual Contract Value Grows 43% and Customer Base Grows 60% Sequentially

New York, New York – February 27, 2014 – Liquid Holdings Group, Inc. (NASDAQ: LIQD) (“Liquid” or the “Company”), a provider of cloud-based order and execution management, risk and reporting software solutions for the financial services community, today reported results for the fourth quarter ended December 31, 2013.

Financial Highlights for the Fourth Quarter of 2013

“Liquid delivered a strong fourth quarter performance marked by the continued market acceptance of our cloud-based platform. During the quarter, we signed a significant contract for our risk management platform, LiquidMetrics^®; substantially increased our client base; and commenced strategic partnerships with Global Prime Partners and an investment advisory firm to further accelerate the distribution of our platform. We expanded our sales and client services organization to support our growing client base, and introduced additional features and functional enhancements on our OERMS platform” said Brian Storms, CEO of Liquid Holdings. “Moreover, our risk technology innovations and leadership were recognized by Hedgeweek magazine’s readership of industry practitioners, who voted Liquid the Best Risk Management Software Firm in 2014.”

Fourth Quarter 2013 Results

Software services revenue increased during the fourth quarter of 2013 to $909,000, or 24%, from $732,000 in the third quarter of 2013. GAAP net loss for the fourth quarter of 2013 declined to $7.6 million, or $0.31 per basic and diluted share, compared to a net loss of $12.2 million, or $0.52 per basic and diluted share, in the third quarter of 2013. The net loss for the fourth quarter was due primarily to compensation expense of $4.0 million, depreciation and amortization of $1.9 million and professional fees of $1.4 million. Compensation expense included $2.0 million of share-based compensation. Depreciation and amortization was predominantly for amortization of acquisition-related intangible assets. Professional fees included an increase in costs associated with Liquid now being a publicly traded company.

Excluding share-based compensation and amortization of acquisition-related intangible assets, both of which are non-cash expenses, as well as the related income tax effect of each, on a non-GAAP basis, adjusted net loss for the fourth quarter of 2013 was $3.8 million, or $0.16 per basic and diluted share, compared to an adjusted net loss of $4.3 million, or $0.18 per basic and diluted share, in the third quarter of 2013.